Cytosorbents (CTSO) 10-Q 9 May 16 2016 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 04, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Entity Registrant Name	Cytosorbents Corp
Entity Central Index Key	1,175,151
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Trading Symbol	CTSO
Entity Common Stock, Shares Outstanding		25,410,101

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Current Assets:
Cash and cash equivalents	$ 3,537,425	$ 5,316,851
Short-term investments	2,490,000	2,192,000
Grants and accounts receivable, net of allowance for doubtful accounts of $8,278 at March 31, 2016 and $3,275 at December 31, 2015	760,159	648,869
Inventories	1,059,628	1,190,681
Prepaid expenses and other current assets	194,093	511,927
Total current assets	8,041,305	9,860,328
Property and equipment, net	569,222	557,289
Other assets	901,625	836,749
Total long-term assets	1,470,847	1,394,038
Total Assets	9,512,152	11,254,366
Current Liabilities:
Accounts payable	860,692	684,633
Accrued expenses and other current liabilities	769,880	723,018
Warrant liability at fair value	1,617,834	1,636,128
Total current liabilities	3,248,406	3,043,779
Stockholders’ Equity:
Preferred Stock, 5,000,000 shares authorized; -0- shares issued and outstanding at March 31, 2016 and December 31, 2015	0	0
Common Stock, 50,000,000 shares authorized; 25,406,056 and 25,397,056 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively	25,406	25,397
Additional paid-in capital	140,261,680	140,126,731
Accumulated other comprehensive income	338,820	584,317
Accumulated deficit	(134,362,160)	(132,525,858)
Total stockholders' equity	6,263,746	8,210,587
Total Liabilities and Stockholders' Equity	$ 9,512,152	$ 11,254,366

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Allowance for doubtful accounts	$ 8,278	$ 3,275
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	25,406,056	25,397,056
Common Stock, shares outstanding	25,406,056	25,397,056

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenue:
Sales	$ 1,597,449	$ 703,658
Grant income	212,733	18,583
Other revenue	0	833
Total revenue	1,810,182	723,074
Cost of revenue	819,499	304,481
Gross margin	990,683	418,593
Other Expenses:
Research and development	856,122	951,028
Legal, financial and other consulting	254,551	215,518
Selling, general and administrative	1,970,104	1,515,167
Total expenses	3,080,777	2,681,713
Loss from operations	(2,090,094)	(2,263,120)
Other income/(expense):
Interest income/(expense), net	3,906	2,613
Gain (loss) on foreign currency transactions	231,592	(448,509)
Change in warrant liability	18,294	(2,007,926)
Total other income (expense), net	253,792	(2,453,822)
Loss before benefit from income taxes	(1,836,302)	(4,716,942)
Benefit from income taxes	0	0
Net Loss available to common shareholders	$ (1,836,302)	$ (4,716,942)
Basic and diluted net loss per common share (in dollars per share)	$ (0.08)	$ (0.19)
Weighted average number of shares of common stock outstanding (in shares)	24,401,167	24,394,474
Net loss	$ (1,836,302)	$ (4,716,942)
Other comprehensive income:
Currency translation adjustment	(245,496)	344,179
Comprehensive loss	$ (2,081,798)	$ (4,372,763)

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - 3 months ended Mar. 31, 2016 - USD ($)	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Accumulated Deficit [Member]
Balance at Dec. 31, 2015	$ 8,210,587	$ 25,397	$ 140,126,731	$ 584,317	$ (132,525,858)
Balance (in shares) at Dec. 31, 2015		25,397,056
Stock based compensation - employees, consultants and directors	107,083	$ 0	107,083	0	0
Other comprehensive income/(loss): foreign translation adjustment	(245,496)	0	0	(245,497)	0
Proceeds from exercise of stock options	2,875	$ 1	2,874	0	0
Proceeds from exercise of stock options (in shares)		1,000
Proceeds from exercise of warrants	25,000	$ 8	24,992	0	0
Proceeds from exercise of warrants (in shares)		8,000
Net loss	(1,836,302)				(1,836,302)
Balance at Mar. 31, 2016	$ 6,263,746	$ 25,406	$ 140,261,680	$ 338,820	$ (134,362,160)
Balance (in shares) at Mar. 31, 2016		25,406,056

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net loss	$ (1,836,302)	$ (4,716,942)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	32,406	21,125
Stock-based compensation	107,083	63,580
Change in warrant liability	(18,294)	2,007,926
Foreign currency translation (gain) loss	(231,592)	448,509
Changes in operating assets and liabilities:
Grants and accounts receivable	(95,116)	104,425
Inventories	249,137	(140,711)
Prepaid expenses and other current assets	320,373	543,085
Other assets	0	(7,134)
Accounts payable and accrued expenses	211,240	(283,500)
Deferred revenue	0	(833)
Net cash used by operating activities	(1,261,065)	(1,960,470)
Cash flows from investing activities:
Purchases of property and equipment	(35,811)	(104,005)
Patent costs	(71,108)	(36,167)
Proceeds from sales of short-term investments	0	1,246,547
Purchases of short-term investments	(298,000)	(2,241,000)
Net cash used by investing activities	(404,919)	(1,134,625)
Cash flows from financing activities:
Equity contributions - net of fees incurred	0	9,408,584
Proceeds from exercise of stock options	25,000	10,007
Proceeds from exercise of warrants	2,875	593,250
Net cash provided by financing activities	27,875	10,011,841
Effect of exchange rates on cash	(141,317)	(103,399)
Net change in cash and cash equivalents	(1,779,426)	6,813,347
Cash and cash equivalents - beginning of period	5,316,851	3,605,280
Cash and cash equivalents - end of period	3,537,425	10,418,627
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	0	0
Supplemental schedule of noncash investing and financing activities:
Costs paid from proceeds in conjunction with issuance of common stock	$ 0	$ 903,916

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2016
BASIS OF PRESENTATION [Abstract]
BASIS OF PRESENTATION	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, 2015 included in the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission on March 9, 2016. The results for the three months ended March 31, 2016 and 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. As of March 31, 2016, the Company had an accumulated deficit of $ 134,362,160 1,836,302 4,716,942

PRINCIPAL BUSINESS ACTIVITY AND

PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2016
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 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, CytoSorbents Europe GmbH, conducts sales and marketing related operations for the CytoSorb device. In March 2016, we formed CytoSorbents Switzerland GmbH, a wholly-owned subsidiary of CytoSorbents Europe GmbH. This subsidiary, which is expected to begin operations in the second quarter of 2016, will provide marketing and direct sales in Switzerland. CytoSorb , 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 approximately 1 to 10 years. Management believes that any expiring patents will not have a significant impact on our ongoing business 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. The consolidated financial statements include the accounts of the parent, CytoSorbents Corporation, and its wholly-owned subsidiaries, CytoSorbents Medical, Inc. and CytoSorbents Europe GmbH. In addition, the financial statements include also CytoSorbents Switzerland GmbH, a wholly owned subsidiary of 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 gains/(losses) included in net loss amounted to approximately $ 232,000 (449,000) The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. 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. The Company classifies these investments as held-to-maturity securities in accordance with the provisions of ASC-320-10. Grants receivable represent amounts due from U.S. government agencies and are included in Grants and Accounts Receivable. 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. The allowance for doubtful accounts contains a general accrual for estimated bad debts and amounted to $ 8,278 3,275 Inventories are valued at the lower of cost or market. At March 31, 2016 and December 31, 2015, the Company’s inventory was comprised of finished goods, which amounted to $ 227,664 382,099 776,771 758,562 55,193 50,020 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. 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. 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. 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. Product Sales : Revenues from sales of products are recognized at the time when title and risk of loss passes to the customer. Recognition of revenue also requires reasonable assurance of collection of sales proceeds and completion of all performance obligations. Grant Revenue : Revenue from grant income is based on contractual agreements. Certain agreements provide for reimbursement of costs, while other agreements provide for reimbursement of costs and an overhead margin. Revenues are recognized when milestones have been achieved and revenues have been earned. Costs are recorded as incurred. Costs subject to reimbursement by these grants have been reflected as costs of revenue. Deferred Revenue : The Company defers revenue that has been received but not yet earned on government contracts and product sales. This revenue will be recognized as income in the period in which the revenue is earned. All deferred revenue is expected to be earned within one year of the balance sheet date. All research and development costs, payments to laboratories and research consultants are expensed when incurred. Advertising expenses are charged to activities when incurred. Advertising expenses amounted to approximately $ 79,610 51,000 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 March 31, 2016 or December 31, 2015. The Company files tax returns in the U.S. federal and state jurisdictions. The Company currently has no open years prior to December 31, 2012 and has no income tax related penalties or interest for the periods presented in these financial statements. The Company utilizes the Technology Business Tax Certificate Transfer Program to sell a portion of its New Jersey Net Operating Loss carry forwards to an industrial company. The Company’s European subsidiary annually files a corporate tax return, VAT return and a trade tax return in Germany. 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, and valuation methods used to determine the fair value of the warrant liability. The Company maintains cash balances, at times, 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 March 31, 2016, one distributor and one government agency accounted for approximately 30 48 10 42 10 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. 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). 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. 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. The Company is currently evaluating the impact of the updated guidance, but the Company does not believe that the adoption of ASU 2014-09 will have a significant impact on its consolidated financial statements. 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. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. ASU 2016-02 outlines reporting requirements for Lessees to recognize a right-of-use asset and corresponding liability on the balance sheet for all leases covering a period of greater than 12 months. The liability is to be measured as the present value of the future minimum lease payments, plus any initial direct costs. The minimum payments are discounted using the rate implicit in the lease, or, if not known, the lessee’s incremental borrowing rate. The updated guidance is effective for public entities for fiscal years beginning after December 31, 2018. The Company is currently evaluating the impact of the updated guidance on the consolidated financial statements. In March 2016, the FASB issued ASU 2016-08 “Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net).” The amendments in this Update affect the guidance in Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606), which is discussed above and is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements of Update 2015-14, also discussed above. The Company is currently evaluating the impact of the updated guidance, but the Company does not believe that the adoption of ASU 2016-08 will have a significant impact on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” The areas for simplification in this Update involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The updated guidance is effective for public entities for fiscal years beginning after December 15, 2016. The Company is currently evaluating the impact of the updated guidance, but the Company does not believe that the adoption of ASU 2014-09 will have a significant impact on its consolidated financial statements. In April 2016, the FASB issued ASU 2016-10 “Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing.” The amendments in this Update affect entities with transactions included within the scope of Topic 606. The scope of that Topic includes entities that enter into contracts with customers to transfer goods or services (that are an output of the entity’s ordinary activities) in exchange for consideration. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements of Update 2015-14, which is discussed above. The Company is currently evaluating the impact of the updated guidance, but the Company does not believe that the adoption of ASU 2016-10 will have a significant impact on its consolidated financial statements. 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 $ 34,000 41,000 Certain reclassifications have been made to the March 31, 2015 financial statements in order to conform to the 2016 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	3 Months Ended
	Mar. 31, 2016
STOCKHOLDERS' EQUITY [Abstract]
STOCKHOLDERS' EQUITY	STOCKHOLDERS' EQUITY Preferred Stock In December 2014, the Company amended and restated its articles of incorporation to reduce the total number of authorized shares of preferred stock. The amended and restated articles of incorporation authorize the issuance of up to 5,000,000 Common Stock Shelf Registration 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 November 4, 2015 Controlled Equity Offering On November 4, 2015, the Company entered into a Controlled Equity Offering SM 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 and (b) the termination of the Sales Agreement by Cantor or the Company, as permitted therein. Since it was established on November 4, 2015 through March 31, 2016, the Company sold 28,880 8.02 225,000 The Company pays a commission rate of 3.0 50,000 The Company intends to use the net proceeds raised through “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. January 14, 2015 Public Offering On January 14, 2015, the Company closed an underwritten public offering (“Offering”) consisting of 1,250,000 8.25 10,312,500 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 on January 8, 2015. The Company filed a final prospectus on January 9, 2015, disclosing the final terms of the Offering. 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 (“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 30,000 120 85,000 Stock-Based Compensation Total share-based employee, director, and consultant compensation for the three months ended March 31, 2016 and 2015 amounted to approximately $ 107,000 64,000 29,000 16,000 78,000 48,000 Weighted Weighted Average Average Remaining Exercise Price Contractual Shares per Share Life (Years) Outstanding, December 31, 2015 2,477,279 $ 6.56 6.2 Granted 16,119 $ 5.09 9.1 Forfeited (4,550) $ 5.50 -- Expired (2,400) $ 31.25 -- Exercised (1,000) $ 2.88 -- Outstanding, March 31, 2016 2,485,448 $ 6.53 5.9 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 $ 3.67 5.63 10 66.8 0 1.24 1.81 3.92 Options Outstanding Number Weighted Weighted Range of Outstanding at Average Average Aggregate Exercise March 31, Exercise Remaining Intrinsic Price 2016 Price Life (Years) Value $0.88 - $166.00 2,485,448 $ 6.53 5.9 $ 1,126,246 Options Exercisable Number Weighted Exercisable at Average Aggregate March 31, Exercise Intrinsic 2016 Price Value 1,741,681 $ 6.11 $ 1,107,927 Weighted Average Grant Date Shares Fair Value Non-vested, January 1, 2016 794,708 $ 2.72 Granted 16,119 2.77 Forfeited (4,550) 1.64 Vested (62,510) 0.69 Non-vested, March 31, 2016 743,767 $ 2.89 As of March 31, 2016, the Company had approximately $ 333,000 0.96 566,000 The grant date fair value of these unvested options amounted to approximately $ 1,388,000 The Board of Directors is evaluating whether any of these predetermined performance milestones have been met and expects to make a decision during the second quarter of 2016. In April 2015, the Board of Directors also granted 960,000 7,747,200 240,000 1,936,000 Number of Shares Warrant Exercise Warrant To be Purchased Price per Share Expiration Date 9,605 $ 31.250 October 24, 2016 40,001 $ 4.375 February 10, 2017 117,600 $ 3.750 June 21, 2018 118,000 $ 3.125 September 30, 2018 48,960 $ 7.500 March 11, 2019 736,000 $ 7.8125 March 11, 2019 30,000 $ 9.900 January 14, 2020 1,100,166

WARRANT LIABILITY

WARRANT LIABILITY	3 Months Ended
	Mar. 31, 2016
WARRANT LIABILITY [Abstract]
WARRANT LIABILITY	4. WARRANT LIABILITY In connection with its March 11, 2014 offering, the Company issued warrants to purchase 816,000 The Company recognized an initial warrant liability for the warrants issued in connection with the offering completed in March 2014. The initial warrant liability recognized on the related warrants totaled $ 862,920 6.00 3.92 13.87 18,294 2,007,926 March 31, March 31, 2016 2015 Number of shares underlying the warrants 736,000 736,000 Exercise price $ 7.81 $ 7.81 Volatility 77.70 % 28.30 % Risk-free interest rate 0.86 % 1.12 % Expected dividend yield 0 0 Expected warrant life (years) 2.95 3.95 Stock Price $ 3.92 $ 13.87

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2016
COMMITMENTS AND CONTINGENCIES [Abstract]
COMMITMENTS AND CONTINGENCIES	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 years, and is retroactively effective as of January 1, 2015. These agreements provide for base salary and other customary benefits which include participation in group insurance plans, paid time off and reimbursement of certain business related expenses, including travel and continuing educational expenses, as well as bonus and/or equity awards at the discretion of the Board of Directors. In addition, the agreements provide for certain termination benefits in the event of termination without Cause or voluntary termination of employment for “Good Reason”, as defined in each agreement. The agreements also provide for certain benefits in the event of a Change in Control of the Company, as defined in each agreement. 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 47,000 20,000 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 63,000 28,000

NET LOSS PER SHARE

NET LOSS PER SHARE	3 Months Ended
	Mar. 31, 2016
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 three months ended March 31, 2016 and 2015 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 3,685,000 3,717,000

PRINCIPAL BUSINESS ACTIVITY A13

PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2016
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, CytoSorbents Europe GmbH, conducts sales and marketing related operations for the CytoSorb device. In March 2016, we formed CytoSorbents Switzerland GmbH, a wholly-owned subsidiary of CytoSorbents Europe GmbH. This subsidiary, which is expected to begin operations in the second quarter of 2016, will provide marketing and direct sales in Switzerland. CytoSorb , 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 approximately 1 to 10 years. Management believes that any expiring patents will not have a significant impact on our ongoing business
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. In addition, the financial statements include also CytoSorbents Switzerland GmbH, a wholly owned subsidiary of 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 gains/(losses) included in net loss amounted to approximately $ 232,000 (449,000)
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.
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. The Company classifies these investments as held-to-maturity securities in accordance with the provisions of ASC-320-10.
Grants and Accounts Receivable	Grants and Accounts Receivable Grants receivable represent amounts due from U.S. government agencies and are included in Grants and Accounts Receivable. 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. The allowance for doubtful accounts contains a general accrual for estimated bad debts and amounted to $ 8,278 3,275
Inventories	Inventories Inventories are valued at the lower of cost or market. At March 31, 2016 and December 31, 2015, the Company’s inventory was comprised of finished goods, which amounted to $ 227,664 382,099 776,771 758,562 55,193 50,020
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 : Revenues from sales of products are recognized at the time when title and risk of loss passes to the customer. Recognition of revenue also requires reasonable assurance of collection of sales proceeds and completion of all performance obligations. Grant Revenue : Revenue from grant income is based on contractual agreements. Certain agreements provide for reimbursement of costs, while other agreements provide for reimbursement of costs and an overhead margin. Revenues are recognized when milestones have been achieved and revenues have been earned. Costs are recorded as incurred. Costs subject to reimbursement by these grants have been reflected as costs of revenue. Deferred Revenue : The Company defers revenue that has been received but not yet earned on government contracts and product sales. This revenue will be recognized as income in the period in which the revenue is earned. All deferred revenue is expected to be earned within one year of the balance sheet date.
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 $ 79,610 51,000
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 March 31, 2016 or December 31, 2015. The Company files tax returns in the U.S. federal and state jurisdictions. The Company currently has no open years prior to December 31, 2012 and has no income tax related penalties or interest for the periods presented in these financial statements. The Company utilizes the Technology Business Tax Certificate Transfer Program to sell a portion of its New Jersey Net Operating Loss carry forwards to an industrial company. 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, and valuation methods used to determine the fair value of the warrant liability.
Concentration of Credit Risk	Concentration of Credit Risk The Company maintains cash balances, at times, 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 March 31, 2016, one distributor and one government agency accounted for approximately 30 48 10 42 10
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.
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. The Company is currently evaluating the impact of the updated guidance, but the Company does not believe that the adoption of ASU 2014-09 will have a significant impact on its consolidated financial statements. 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. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. ASU 2016-02 outlines reporting requirements for Lessees to recognize a right-of-use asset and corresponding liability on the balance sheet for all leases covering a period of greater than 12 months. The liability is to be measured as the present value of the future minimum lease payments, plus any initial direct costs. The minimum payments are discounted using the rate implicit in the lease, or, if not known, the lessee’s incremental borrowing rate. The updated guidance is effective for public entities for fiscal years beginning after December 31, 2018. The Company is currently evaluating the impact of the updated guidance on the consolidated financial statements. In March 2016, the FASB issued ASU 2016-08 “Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net).” The amendments in this Update affect the guidance in Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606), which is discussed above and is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements of Update 2015-14, also discussed above. The Company is currently evaluating the impact of the updated guidance, but the Company does not believe that the adoption of ASU 2016-08 will have a significant impact on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” The areas for simplification in this Update involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The updated guidance is effective for public entities for fiscal years beginning after December 15, 2016. The Company is currently evaluating the impact of the updated guidance, but the Company does not believe that the adoption of ASU 2014-09 will have a significant impact on its consolidated financial statements. In April 2016, the FASB issued ASU 2016-10 “Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing.” The amendments in this Update affect entities with transactions included within the scope of Topic 606. The scope of that Topic includes entities that enter into contracts with customers to transfer goods or services (that are an output of the entity’s ordinary activities) in exchange for consideration. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements of Update 2015-14, which is discussed above. The Company is currently evaluating the impact of the updated guidance, but the Company does not believe that the adoption of ASU 2016-10 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 $ 34,000 41,000
Reclassifications	Reclassifications Certain reclassifications have been made to the March 31, 2015 financial statements in order to conform to the 2016 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)	3 Months Ended
	Mar. 31, 2016
STOCKHOLDERS' EQUITY [Abstract]
Schedule Of Share Based Compensation Stock Options Activity	The summary of the stock option activity for the three months ended March 31, 2016 is as follows: Weighted Weighted Average Average Remaining Exercise Price Contractual Shares per Share Life (Years) Outstanding, December 31, 2015 2,477,279 $ 6.56 6.2 Granted 16,119 $ 5.09 9.1 Forfeited (4,550) $ 5.50 -- Expired (2,400) $ 31.25 -- Exercised (1,000) $ 2.88 -- Outstanding, March 31, 2016 2,485,448 $ 6.53 5.9
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range	The intrinsic value is calculated at the difference between the market value as of March 31, 2016 of $ 3.92 Options Outstanding Number Weighted Weighted Range of Outstanding at Average Average Aggregate Exercise March 31, Exercise Remaining Intrinsic Price 2016 Price Life (Years) Value $0.88 - $166.00 2,485,448 $ 6.53 5.9 $ 1,126,246 Options Exercisable Number Weighted Exercisable at Average Aggregate March 31, Exercise Intrinsic 2016 Price Value 1,741,681 $ 6.11 $ 1,107,927
Schedule Of Nonvested Share Activity	The summary of the status of the Company’s non-vested options for the three months ended March 31, 2016 is as follows: Weighted Average Grant Date Shares Fair Value Non-vested, January 1, 2016 794,708 $ 2.72 Granted 16,119 2.77 Forfeited (4,550) 1.64 Vested (62,510) 0.69 Non-vested, March 31, 2016 743,767 $ 2.89
Schedule Of Stockholders Equity Note Warrants and Common Stock Activity	As of March 31, 2016, 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 9,605 $ 31.250 October 24, 2016 40,001 $ 4.375 February 10, 2017 117,600 $ 3.750 June 21, 2018 118,000 $ 3.125 September 30, 2018 48,960 $ 7.500 March 11, 2019 736,000 $ 7.8125 March 11, 2019 30,000 $ 9.900 January 14, 2020 1,100,166

WARRANT LIABILITY (Tables)

WARRANT LIABILITY (Tables)	3 Months Ended
	Mar. 31, 2016
WARRANT LIABILITY [Abstract]
Schedule of Warrant Liability	The assumptions used in connection with the valuation of warrants issued utilizing the binomial lattice valuation model were as follows: March 31, March 31, 2016 2015 Number of shares underlying the warrants 736,000 736,000 Exercise price $ 7.81 $ 7.81 Volatility 77.70 % 28.30 % Risk-free interest rate 0.86 % 1.12 % Expected dividend yield 0 0 Expected warrant life (years) 2.95 3.95 Stock Price $ 3.92 $ 13.87

BASIS OF PRESENTATION (Details

BASIS OF PRESENTATION (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
BASIS OF PRESENTATION [Line Items]
Accumulated deficit	$ (134,362,160)		$ (132,525,858)
Net loss	$ (1,836,302)	$ (4,716,942)

PRINCIPAL BUSINESS ACTIVITY A17

PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual)	3 Months Ended		12 Months Ended
	Mar. 31, 2016USD ($)	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)
Principal Business Activity and Summary of Significant Accounting Policies [Line Items]
Number of countries in which entity's product marketed	32
Number of patents issued	32
Foreign Currency Transaction Gain (Loss), before Tax	$ 231,592	$ (448,509)
Allowance For Doubtful Accounts Receivable	8,278		$ 3,275
Inventory, Finished Goods, Gross	227,664		382,099
Inventory, Work in Process, Gross	776,771		758,562
Inventory, Raw Materials, Gross	55,193		$ 50,020
Advertising Expense	79,610	51,000
Freight Costs	$ 34,000	$ 41,000
Accounts Receivable [Member] | Two Distributors and One Government Agency [Member]
Principal Business Activity and Summary of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage	30.00%
Accounts Receivable [Member] | Three Distributors [Member]
Principal Business Activity and Summary of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage			48.00%
Sales Revenue, Goods, Net [Member] | Three Distributors [Member]
Principal Business Activity and Summary of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage	10.00%	42.00%
Distributor [Member] | Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member]
Principal Business Activity and Summary of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage		10.00%
Minimum [Member]
Principal Business Activity and Summary of Significant Accounting Policies [Line Items]
Amortization Period	1 year
Maximum [Member]
Principal Business Activity and Summary of Significant Accounting Policies [Line Items]
Amortization Period	10 years

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Shares
Outstanding, December 31, 2015	2,477,279
Granted	16,119
Forfeited	(4,550)
Expired	(2,400)
Exercised	(1,000)
Outstanding, March 31, 2016	2,485,448	2,477,279
Weighted Average Exercise Price per Share
Outstanding, December 31, 2015	$ 6.56
Granted	5.09
Forfeited	5.5
Expired	31.25
Exercised	2.88
Outstanding, March 31, 2016	$ 6.53	$ 6.56
Weighted Average Remaining Contractual Life (Years)
Outstanding	5 years 10 months 24 days	6 years 2 months 12 days
Granted	9 years 1 month 6 days
Forfeited	0 years
Expired	0 years
Exercised	0 years

STOCKHOLDERS' EQUITY (Details 1

STOCKHOLDERS' EQUITY (Details 1) - $0.88 - $166.00 [Member]	3 Months Ended
	Mar. 31, 2016USD ($)$ / sharesshares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Price, Lower Range Limit	$ 0.88
Exercise Price, Upper Range Limit	$ 166
Options Outstanding
Number Outstanding at March 31, 2016 | shares	2,485,448
Weighted Average Exercise Price	$ 6.53
Weighted Average Remaining Life (Years)	5 years 10 months 24 days
Aggregate Intrinsic Value | $	$ 1,126,246
Options Exercisable
Number Exercisable at March 31, 2016 | shares	1,741,681
Weighted Average Exercise Price	$ 6.11
Aggregate Intrinsic Value | $	$ 1,107,927

STOCKHOLDERS' EQUITY (Details 2

STOCKHOLDERS' EQUITY (Details 2)	3 Months Ended
	Mar. 31, 2016$ / sharesshares
Shares
Non-vested, January 1, 2016 | shares	794,708
Granted | shares	16,119
Forfeited | shares	(4,550)
Vested | shares	(62,510)
Non-vested, March 31, 2016 | shares	743,767
Weighted Average Grant Date Fair Value
Non-vested, January 1, 2016 | $ / shares	$ 2.72
Granted | $ / shares	2.77
Forfeited | $ / shares	1.64
Vested | $ / shares	0.69
Non-vested, March 31, 2016 | $ / shares	$ 2.89

STOCKHOLDERS' EQUITY (Details 3

STOCKHOLDERS' EQUITY (Details 3)	3 Months Ended
	Mar. 31, 2016$ / sharesshares
Class of Warrant or Right [Line Items]
Number of Shares To be Purchased	1,100,166
Warrant 1
Class of Warrant or Right [Line Items]
Number of Shares To be Purchased	9,605
Warrant Exercise Price per Share | $ / shares	$ 31.250
Warrant Expiration Date	Oct. 24, 2016
Warrant 2
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	Feb. 10, 2017
Warrant 3
Class of Warrant or Right [Line Items]
Number of Shares To be Purchased	117,600
Warrant Exercise Price per Share | $ / shares	$ 3.750
Warrant Expiration Date	Jun. 21, 2018
Warrant 4
Class of Warrant or Right [Line Items]
Number of Shares To be Purchased	118,000
Warrant Exercise Price per Share | $ / shares	$ 3.125
Warrant Expiration Date	Sep. 30, 2018
Warrant 5
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	Mar. 11, 2019
Warrant 6
Class of Warrant or Right [Line Items]
Number of Shares To be Purchased	736,000
Warrant Exercise Price per Share | $ / shares	$ 7.8125
Warrant Expiration Date	Mar. 11, 2019
Warrant 7
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	Jan. 14, 2020

STOCKHOLDERS' EQUITY (Details T

STOCKHOLDERS' EQUITY (Details Textual) - USD ($)	Nov. 04, 2015	Jan. 14, 2015	Apr. 30, 2015	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Dec. 31, 2015	Jul. 29, 2015	Dec. 31, 2014	Mar. 11, 2014
Stockholders Equity [Line Items]
Preferred Stock, Shares Authorized				5,000,000		5,000,000	5,000,000
Share Price				$ 3.92	$ 13.87	$ 3.92				$ 6
Stock Issued During Period Shares New Issues						28,880
Stock Issued During Period Value New Issues						$ 225,000
Class of Warrant or Right, Number of Securities Called by Warrants or Rights				736,000	736,000	736,000				816,000
Aggregate registered amount for offerings								$ 100,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price				$ 7.81	$ 7.81	$ 7.81
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term				2 years 11 months 12 days	3 years 11 months 12 days
Allocated Share-based Compensation Expense				$ 107,000	$ 64,000
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate				77.70%	28.30%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate				0.00%	0.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum				1.24%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum				1.81%
Share-based Compensation Arrangement by Share-based Payment Award, Options, Non-vested in Period, Fair Value			$ 1,388,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options				$ 333,000		$ 333,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition				11 months 16 days
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period			566,000
Sale of Stock, Price Per Share				$ 8.02		$ 8.02
Director [Member]
Stockholders Equity [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures, Total			240,000
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures, Total			$ 1,936,000
Employee [Member]
Stockholders Equity [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures, Total			960,000
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures, Total			$ 7,747,200
Research and Development Expense [Member]
Stockholders Equity [Line Items]
Allocated Share-based Compensation Expense				$ 29,000	$ 16,000
General and Administrative Expense [Member]
Stockholders Equity [Line Items]
Allocated Share-based Compensation Expense				$ 78,000	$ 48,000
January 14, 2015 Public Offering [Member]
Stockholders Equity [Line Items]
Share Price		$ 8.25
Stock Issued During Period Shares New Issues		1,250,000
Stock Issued During Period Value New Issues		$ 10,312,500
Proceeds From Issuance Of Common Stock		9,409,000
Out-of-pocket expenses		$ 85,000
Cantor Fitzgerald and Co. [Member]
Stockholders Equity [Line Items]
Commission Rate As Percentage Of Aggregate Gross Proceeds	3.00%
Maximum Amount To Be Reimbursed For Expenses In Connection With Agreement	$ 50,000
Aggregate Offering Price Maximum	$ 25,000,000
Warrant [Member] | January 14, 2015 Public Offering [Member]
Stockholders Equity [Line Items]
Underwriters Discounts and Commissions as Percentage of Gross Proceeds of Shares Sold		6.00%
Class of Warrant or Right Exercise Term		5 years
Exercise price as percentage of public offering price		120.00%
Series A Preferred Stock [Member]
Stockholders Equity [Line Items]
Preferred Stock, Shares Authorized									5,000,000
Exercise Price Range One [Member]
Stockholders Equity [Line Items]
Sale of Stock, Price Per Share				$ 3.92		3.92
Exercise Price Ranging From 3.67 to 5.63 [Member]
Stockholders Equity [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term				10 years
Exercise Price Ranging From 3.67 to 5.63 [Member] | Maximum [Member]
Stockholders Equity [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price				$ 5.63		5.63
Exercise Price Ranging From 3.67 to 5.63 [Member] | Minimum [Member]
Stockholders Equity [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price				$ 3.67		$ 3.67
Representatives' Warrants [Member] | January 14, 2015 Public Offering [Member]
Stockholders Equity [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights		30,000
Fair value of warrants		$ 30,000

WARRANT LIABILITY (Details)

WARRANT LIABILITY (Details) - $ / shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 11, 2014
Product Warranty Liability [Line Items]
Number of shares underlying the warrants	736,000	736,000	816,000
Exercise price	$ 7.81	$ 7.81
Volatility	77.70%	28.30%
Risk-free interest rate	0.86%	1.12%
Expected dividend yield	0.00%	0.00%
Expected warrant life (years)	2 years 11 months 12 days	3 years 11 months 12 days
Stock price	$ 3.92	$ 13.87	$ 6

WARRANT LIABILITY (Details Text

WARRANT LIABILITY (Details Textual) - USD ($)	Mar. 11, 2014	Mar. 31, 2016	Mar. 31, 2015
Class of Warrant or Right [Line Items]
Number of securities called by warrants	816,000	736,000	736,000
Stock Price	$ 6	$ 3.92	$ 13.87
Fair value of warrant liability upon issuance	$ 862,920
Increase (decrease) in fair value of warrant liability		$ (18,294)	$ 2,007,926

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($)	Aug. 11, 2013	Mar. 31, 2016	Mar. 31, 2015
Commitments and Contingencies Disclosure [Line Items]
Term of License Agreement		18 years
Royalty Agreements [Member]
Commitments and Contingencies Disclosure [Line Items]
Future royalty payment percentage on gross revenue	3.00%
Royalty cost		$ 47,000	$ 20,000
Equity investment by an existing investor	$ 4,000,000
License Agreement [Member]
Commitments and Contingencies Disclosure [Line Items]
Royalty rate, lower limit		2.50%
Royalty rate, upper limit		5.00%
Royalty cost		$ 63,000	$ 28,000

NET LOSS PER SHARE (Details Tex

NET LOSS PER SHARE (Details Textual) - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Stock Options and Warrants [Member]
Earnings Per Share Basic [Line Items]
Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount	3,685,000	3,717,000