Cytosorbents (CTSO) 10-K 3 Mar 17 2016 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Feb. 28, 2017	Jun. 30, 2016
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
Entity Registrant Name	Cytosorbents Corp
Entity Central Index Key	1,175,151
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 102,000,000
Trading Symbol	CTSO
Entity Common Stock, Shares Outstanding		25,523,967

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Current Assets:
Cash and cash equivalents	$ 5,245,178	$ 5,316,851
Short-term investments	0	2,192,000
Grants and accounts receivable, net of allowance for doubtful accounts of accounts of $65,414 and $3,275 at December 31, 2016 and 2015, respectively	1,433,468	648,869
Inventories	833,976	1,190,681
Prepaid expenses and other current assets	315,802	511,927
Total current assets	7,828,424	9,860,328
Property and equipment - net	569,409	557,289
Other assets	1,296,011	836,749
Total Assets	9,693,844	11,254,366
Current Liabilities:
Accounts payable	1,330,072	684,633
Accrued expenses and other current liabilities	2,114,666	723,018
Current maturities of long-term debt, net of debt issuance costs	833,333	0
Warrant liability at fair value	1,811,547	1,636,128
Total current liabilities	6,089,618	3,043,779
Long-term debt, net of current maturities	4,078,314	0
Total liabilities	10,167,932	3,043,779
Commitments and contingencies (Note 9)
Stockholders’ Equity/(Deficit):
Common Stock, Par Value $0.001, 50,000,000 shares authorized; 25,483,966 and 25,397,056 shares issued and outstanding at December 31, 2016 and 2015, respectively	25,484	25,397
Additional paid-in capital	143,066,477	140,126,731
Accumulated other comprehensive income	898,684	584,317
Accumulated deficit	(144,464,733)	(132,525,858)
Total stockholders’ equity/(deficit)	(474,088)	8,210,587
Total Liabilities and Stockholders' Equity/(Deficit)	$ 9,693,844	$ 11,254,366

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Allowance for doubtful accounts	$ 65,414	$ 3,275
Common Stock, Par Value	$ 0.001	$ 0.001
Common Stock, shares authorized	50,000,000	50,000,000
Common Stock, shares issued	25,483,966	25,397,056
Common Stock, shares outstanding	25,483,966	25,397,056

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenue:
Sales	$ 8,206,036	$ 4,043,819	$ 3,135,387
Grant income	1,321,807	735,863	978,271
Other revenue	0	11,934	9,167
Total revenue	9,527,843	4,791,616	4,122,825
Cost of revenue	3,953,725	2,212,546	2,133,888
Gross profit	5,574,118	2,579,070	1,988,937
Operating expenses:
Research and development	4,783,491	3,871,069	2,431,759
Legal, financial and other consulting	1,184,788	1,089,145	896,847
Selling, general and administrative	11,097,964	6,922,515	5,553,167
Total operating expenses	17,066,243	11,882,729	8,881,773
Loss from operations	(11,492,125)	(9,303,659)	(6,892,836)
Other income (expense):
Interest income (expense), net	(231,805)	9,301	(310,024)
Loss on foreign currency transactions	(358,077)	(507,276)	(385,956)
Change in warrant liability	(175,418)	1,345,290	(2,118,498)
Total other income (expense), net	(765,300)	847,315	(2,814,478)
Loss before benefit from income taxes	(12,257,425)	(8,456,344)	(9,707,314)
Benefit from income taxes	318,550	324,606	385,642
Net loss	(11,938,875)	(8,131,738)	(9,321,672)
Preferred stock dividends	0	0	9,266,673
Net loss attributable to common shareholders	$ (11,938,875)	$ (8,131,738)	$ (18,588,345)
Basic and diluted net loss per common share	$ (0.47)	$ (0.33)	$ (1.29)
Weighted average number of shares of common stock outstanding	25,433,719	24,885,809	14,382,813
Comprehensive loss:
Net loss	$ (11,938,875)	$ (8,131,738)	$ (9,321,672)
Other comprehensive income:
Currency translation adjustment	314,367	356,616	283,688
Comprehensive loss	$ (11,624,508)	$ (7,775,122)	$ (9,037,984)

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY/(DEFICIT) - USD ($)	Total	Common Stock [Member]	Paid-In Capital [Member]	Accumulated Other Comprehensive Income [Member]	Accumulated Deficit [Member]	Series B Redeemable Convertible Preferred Stock [Member]	Preferred Stock A [Member]
Beginning Balance at Dec. 31, 2013	$ (14,265,547)	$ 10,053	$ 91,584,402	$ (55,987)	$ (105,805,775)	$ 15,246,350	$ 1,760
Beginning Balance (in shares) at Dec. 31, 2013		10,052,782				79,337	1,759,666
Stock based compensation - employees, consultants and directors	695,841	$ 0	695,841	0	0	$ 0	$ 0
Issuance of Series A Preferred Stock as dividends	0	$ 0	238,178	0	(238,313)	$ 0	$ 135
Issuance of Series A Preferred Stock as dividends (in shares)		0				0	135,303
Issuance of Series B Preferred Stock as dividends	(9,028,360)	$ 0	0	0	(9,028,360)	$ 9,028,360	$ 0
Issuance of Series B Preferred Stock as dividends (in shares)		0				14,500	0
Issuance of common stock for services rendered	180,100	$ 45	180,055	0	0	$ 0	$ 0
Issuance of common stock for services rendered (in shares)		44,922				0	0
Conversion of Series A and Series B Preferred into Common	24,274,708	$ 10,472	24,266,131	0	0	$ (24,274,710)	$ (1,895)
Conversion of Series A and Series B Preferred into Common (in shares)		10,472,062				(93,837)	(1,894,969)
Issuance of common stock for cash - offering	10,200,000	$ 1,632	10,198,368	0	0	$ 0	$ 0
Issuance of common stock for cash - offering (in shares)		1,632,000				0	0
Issuance of common stock for cash	300,000	$ 99	299,901	0	0	$ 0	$ 0
Issuance of common stock for cash (in shares)		99,336				0	0
Cost of raising capital	(748,545)	$ 0	(748,545)	0	0	$ 0	$ 0
Conversion of convertible notes to common	1,990,440	$ 702	1,989,738	0	0	$ 0	$ 0
Conversion of convertible notes to common (in shares)		701,309				0	0
Proceeds from exercise of warrants	156,250	$ 20	156,230	0	0	$ 0	$ 0
Proceeds from exercise of warrants (in shares)		20,000				0	0
Cashless exercise of warrants	0	$ 165	(165)	0	0	$ 0	$ 0
Cashless exercise of warrants (in shares)		165,435				0	0
Proceeds from exercise of stock options	109,200	$ 116	109,084	0	0	$ 0	$ 0
Proceeds from exercise of stock options (in shares)		115,652				0	0
Additional shares issued related to the round-up of fractional shares as a result of stock split		151				0	0
Cashless exercise of stock options	$ 0	$ 1	(1)	0	0	$ 0	$ 0
Cashless exercise of stock options (in shares)	117,252	991				0	0
Other comprehensive income foreign translation adjustment	$ 283,688	$ 0	0	283,688	0	$ 0	$ 0
Warrant Liability	(862,920)	0	(862,920)	0	0	0	0
Net loss	(9,321,672)	0	0	0	(9,321,672)	0	0
Ending Balance at Dec. 31, 2014	3,963,183	$ 23,305	128,106,297	227,701	(124,394,120)	$ 0	$ 0
Ending Balance (in shares) at Dec. 31, 2014		23,304,640				0	0
Stock based compensation - employees, consultants and directors	382,284	$ 0	382,284	0	0	$ 0	$ 0
Issuance of common stock for cash	9,524,083	$ 1,279	9,522,804	0	0		$ 0
Issuance of common stock for cash (in shares)		1,278,880					0
Proceeds from exercise of warrants	1,705,433	$ 447	1,704,986	0	0	$ 0	$ 0
Proceeds from exercise of warrants (in shares)		447,178				0	0
Cashless exercise of warrants	0	$ 52	(52)	0	0	$ 0	$ 0
Cashless exercise of warrants (in shares)		51,810				0	0
Proceeds from exercise of stock options	410,726	$ 291	410,435	0	0	$ 0	$ 0
Proceeds from exercise of stock options (in shares)		291,812				0	0
Cashless exercise of stock options	$ 0	$ 23	(23)	0	0	$ 0	$ 0
Cashless exercise of stock options (in shares)	339,621	22,736				0	0
Other comprehensive income foreign translation adjustment	$ 356,616	$ 0	0	356,616	0	$ 0	$ 0
Net loss	(8,131,738)	0	0	0	(8,131,738)	0	0
Ending Balance at Dec. 31, 2015	8,210,587	$ 25,397	140,126,731	584,317	(132,525,858)	$ 0	$ 0
Ending Balance (in shares) at Dec. 31, 2015		25,397,056				0	0
Stock based compensation - employees, consultants and directors	2,631,734	$ 0	2,631,734	0	0	$ 0	$ 0
Issuance of restricted stock units	125,059	$ 27	125,032	0	0	$ 0	$ 0
Issuance of restricted stock units (in shares)		26,665				0	0
Proceeds from exercise of warrants	65,000	$ 20	64,980	0	0	$ 0	$ 0
Proceeds from exercise of warrants (in shares)		20,000				0	0
Cashless exercise of warrants	0	$ 4	(4)	0	0	$ 0	$ 0
Cashless exercise of warrants (in shares)		4,045				0	0
Proceeds from exercise of stock options	$ 118,040	$ 36	118,004	0	0	$ 0	$ 0
Proceeds from exercise of stock options (in shares)		36,200				0	0
Cashless exercise of stock options (in shares)	36,200
Other comprehensive income foreign translation adjustment	$ 314,367	$ 0	0	314,367	0	$ 0	$ 0
Net loss	(11,938,875)	0	0	0	(11,938,875)	0	0
Ending Balance at Dec. 31, 2016	$ (474,088)	$ 25,484	$ 143,066,477	$ 898,684	$ (144,464,733)	$ 0	$ 0
Ending Balance (in shares) at Dec. 31, 2016		25,483,966				0	0

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net loss	$ (11,938,875)	$ (8,131,738)	$ (9,321,672)
Adjustments to reconcile net loss to net cash used by operating activities:
Issuance of common stock to consultants for services	0	0	180,100
Depreciation and amortization	161,613	112,969	65,547
Amortization of debt discount	0	0	198,644
Bad debt expense	65,378	0	4,106
Change in warrant liability	175,418	(1,345,290)	2,118,498
Foreign currency transaction losses	358,077	386,435	385,956
Stock-based compensation	2,756,793	382,284	695,841
Amortization of loan acquisition costs	30,480	0	0
Changes in operating assets and liabilities:
Grants and accounts receivable	(889,715)	131,970	(412,118)
Inventories	340,392	(671,348)	(308,779)
Prepaid expenses and other current assets	187,099	178,107	(108,153)
Other assets	(41,112)	(7,134)	(4,784)
Accounts payable and accrued expenses	2,063,485	(83,169)	497,453
Deferred revenue	0	(833)	(271,526)
Net cash used by operating activities	(6,730,967)	(9,047,747)	(6,280,887)
Cash flows from investing activities:
Purchases of property and equipment	(140,724)	(403,608)	(153,157)
Patent costs	(454,807)	(239,839)	(214,165)
Proceeds from sale of short-term investments	2,192,000	5,430,547	4,745,000
Purchases of short-term investments	0	(5,678,000)	(6,689,547)
Net cash provided/(used) by investing activities	1,596,469	(890,900)	(2,311,869)
Cash flows from financing activities:
Proceeds from long-term debt	5,000,000	0	0
Payment of loan acquisition costs	(118,833)	0	0
Equity contributions - net of fees incurred	0	9,524,083	9,751,456
Proceeds from exercise of stock options	118,040	410,726	109,200
Proceeds from exercise of warrants	65,000	1,705,433	156,250
Net cash provided by financing activities	5,064,207	11,640,242	10,016,906
Effect of exchange rates on cash	(1,382)	9,976	(1,900)
Net change in cash and cash equivalents	(71,673)	1,711,571	1,422,250
Cash and cash equivalents at beginning of year	5,316,851	3,605,280	2,183,030
Cash and cash equivalents at end of year	5,245,178	5,316,851	3,605,280
Supplemental disclosure of cash flow information:
Cash paid during the year for interest	175,897	0	0
Supplemental schedule of noncash financing activities:
Fair value of warrant liability upon issuance	0	0	862,920
Fair value of shares issued as costs of raising capital	0	0	7,137
Note payable principal and interest conversion to equity	0	0	1,990,440
Costs paid from proceeds in conjunction with issuance of common stock	0	1,019,207	748,545
Preferred stock dividends	$ 0	$ 0	$ 9,266,673

CONSOLIDATED STATEMENTS OF CAS7

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical)	12 Months Ended
	Dec. 31, 2014shares
Series B Preferred Stock [Member]
Preferred Shares converted into Common shares	93,836.50
Series A Convertible Preferred Stock [Member]
Preferred Shares converted into Common shares	103,332
Common Stock [Member] | Series B Preferred Stock [Member]
Preferred Shares converted into Common shares	10,244,450
Common Stock [Member] | Series A Convertible Preferred Stock [Member]
Preferred Shares converted into Common shares	1,894,969

BASIS OF PRESENTATION

BASIS OF PRESENTATION	12 Months Ended
	Dec. 31, 2016
BASIS OF PRESENTATION [Abstract]
BASIS OF PRESENTATION	1. BASIS OF PRESENTATION The accompanying consolidated financial statements include the results of CytoSorbents Corporation (the “Parent”), CytoSorbents Medical Inc., its wholly-owned operating subsidiary (the “Subsidiary”), and CytoSorbents Europe GmbH, its wholly-owned European subsidiary (the “European Subsidiary”). In addition, the financial statements include CytoSorbents Switzerland GmbH, a wholly-owned subsidiary of CytoSorbents Europe GmbH. These entities are collectively referred to as “the Company.” 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. Based on its projections, the Company believes it will have to raise additional capital to fund its planned operations over the next twelve month period. As of December 31, 2016, the Company had an accumulated deficit of $ 144,464,733 11,938,875 8,131,738 9,321,672

PRINCIPAL BUSINESS ACTIVITY AND

PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 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, conducts sales and marketing related operations for the CytoSorb device. In March 2016, the Company formed CytoSorbents Switzerland GmbH, a wholly-owned subsidiary of CytoSorbents Europe GmbH. This subsidiary, which began operations during the second quarter of 2016, provides marketing and direct sales services 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 1 10 The Company’s enacted a twenty-five-for-one 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 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 United States of America dollar, the foreign currency financial statements of the European subsidiary, for which the United States of America dollar is the functional currency, are included in operations. Foreign currency transaction losses included in net loss amounted to approximately $ 358,000 507,000 386,000 The Company considers all highly liquid instruments 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 both specific, where applicable, and general accruals for estimated bad debts which amounted to $ 65,414 3,275 Inventories are valued at the lower of cost or market. Cost is determined using a first-in first-out (“FIFO”) basis. At December 31, 2016 and December 31, 2015 the Company’s inventory was comprised of finished goods, which amounted to $ 307,483 382,099 467,663 758,562 58,830 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 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 Monte Carlo simulation 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 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. In the ordinary course of business, the Company is under no obligation to accept returns from its customers. Grant Revenue : Revenue from grant income is based on contractual agreements with United States government agencies. 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. All research and development costs, payments to laboratories, research consultants and costs related to clinical trials and studies are expensed when incurred. Advertising costs are charged to activities when incurred. Advertising expense amounted to approximately $ 173,000 282,000 142,000 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 the accounting standards associated with uncertain tax provisions. The Company had no unrecognized tax benefits at December 31, 2016 or 2015. The Company files tax returns in the U.S. federal and state jurisdictions. The Company utilizes the Technology Business Tax Certificate Transfer Program to sell a portion of its New Jersey Net Operating Loss tax carryforwards to an industrial company. CytoSorbents Europe GmbH and CytoSorbents Switzerland GmbH files an annual corporate tax return, a VAT return and a trade tax return in Germany and Switzerland, respectively. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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, valuation methods used to determine the fair value of the warrant liability and valuation methods used in determining any debt discount associated with the convertible securities. 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. A significant portion of our revenues are from product sales in Germany. Substantially all of our grant and other income are from grant agencies in the United States. 2016 2015 2014 Product Sales: United States $ – $ – $ – Germany 4,985,049 2,353,998 1,405,125 All other countries 3,220,987 1,689,821 1,730,262 Grant and other income: United States 1,321,807 735,863 987,438 Germany – 11,934 – All other countries – – – Total Revenue $ 9,527,843 $ 4,791,616 $ 4,122,825 As of December 31, 2016, one distributor and one government agency accounted for approximately 22 48 11 14 24 12 The carrying values of cash and cash equivalents, accounts receivable, accounts payable and other debt obligations approximate their fair values due to their short-term nature. Basic earnings per share is computed by dividing loss attributable 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 11). 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). ASU 2014-15 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 has adopted the provisions of ASU 2014-15 and has included the effects of this adoption in Note 1 to the financial statements. 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 has evaluated the impact of the updated guidance and has determined that the adoption of ASU 2014-09 is not expected to have a significant impact on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, “Interest-Imputation of Interest.” ASU 2015-03 requires that debt issuances costs be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability. The updated guidance is effective for the fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The Company has adopted the provisions of this ASU during the year ended 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. ASU 2015-11 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 has evaluated the impact of the updated guidance and has determined that the adoption of ASU 2015-11 is not expected to 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 has evaluated the impact of the updated guidance and has determined that the adoption of ASU 2016-02 is not expected to have a significant impact on its 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 has evaluated the impact of the updated guidance and has determined that the adoption of ASU 2016-08 is not expected to 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 has evaluated the impact of the updated guidance and has determined that the adoption of ASU 2016-09 is not expected to 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 has evaluated the impact of the updated guidance and has determined that the adoption of ASU 2016-10 is not expected to have a significant impact on its consolidated financial statements. In May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Topic 606), Narrow Scope Improvements and Practical Expedients.” The amendments in ASU 2016-12 affect only the narrow aspects of Topic 606 that are outlined in ASU 2016-12. 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 has evaluated the impact of the updated guidance and has determined that the adoption of ASU 2016-12 is not expected to have a significant impact on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force).” The amendments in this update relate to eight specific types of cash receipts and cash payments which current GAAP either is unclear or does not include specific guidance on the cash flow classification issues. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The Company will adopt the provisions of this ASU for its fiscal year beginning January 1, 2017. The adoption of ASU 2016-15 is not expected to 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 shipping and handling costs in Research and Development. Total freight costs amounted to approximately $ 167,000 145,000 103,000 Certain reclassifications have been made to the December 31, 2015 and 2014 financial statements in order to conform to 2016 financial statement presentation. There was no change in the reported amount of accumulated deficit as a result of these reclassifications.

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET	12 Months Ended
	Dec. 31, 2016
PROPERTY AND EQUIPMENT, NET [Abstract]
PROPERTY AND EQUIPMENT, NET	3. PROPERTY AND EQUIPMENT, NET: Depreciation/ Amortization December 31, 2016 2015 Period Furniture and fixtures $ 264,793 $ 205,019 7 years Equipment and computers 2,396,811 2,287,305 3 to 7 years Lesser of term of lease or Leasehold improvements 570,678 605,939 estimated useful life 3,232,282 3,098,263 Less accumulated depreciation and amortization 2,662,873 2,540,974 Property and Equipment, Net $ 569,409 $ 557,289 Depreciation expense for the years ended December 31, 2016, 2015 and 2014 amounted to $ 126,112 87,397 48,429

OTHER ASSETS

OTHER ASSETS	12 Months Ended
	Dec. 31, 2016
OTHER ASSETS [Abstract]
OTHER ASSETS	4. OTHER ASSETS: December 31, 2016 2015 Intangible assets, net $ 1,191,101 $ 771,795 Security deposits 104,910 64,954 Total $ 1,296,011 $ 836,749 December 31, 2016 2015 Gross Accumulated Gross Accumulated Amount Amortization Net Amount Amortization Net Patents $ 1,393,776 $ 202,675 $ 1,191,101 $ 938,969 $ 167,174 $ 771,795 Amortization expense amounted to $ 35,501 25,573 17,118 Amortization expense for the next five years will be approximately $ 40,500 32,500 32,500 31,600 30,300

ACCRUED EXPENSES AND OTHER CURR

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	12 Months Ended
	Dec. 31, 2016
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES [Abstract]
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	5. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES: 2016 2015 Accrued salaries and commissions $ 700,917 $ 141,606 Clinical Studies 556,170 -- Professional fees 249,945 150,121 Travel and entertainment 224,621 219,627 Accrued royalties 183,047 102,586 Sales, payroll and income taxes payable 96,159 22,592 Other 44,876 37,236 Interest 35,681 -- Board of Director fees 23,250 19,250 Customer Deposits -- 30,000 $ 2,114,666 $ 723,018

LONG-TERM DEBT, NET

LONG-TERM DEBT, NET	12 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
LONG-TERM DEBT, NET	6. LONG-TERM DEBT, NET Loan and Security Agreement: On June 30, 2016 (the ”Closing Date”), the Company and its wholly-owned subsidiary CytoSorbents Medical, Inc. (together, the “Borrower”), entered into a Loan and Security Agreement (the “Loan and Security Agreement”) with Bridge Bank, a division of Western Alliance Bank, (the “Bank”), pursuant to which the Bank agreed to loan up to an aggregate of $ 10 5 8.38 On the Closing Date, the Company was required to pay a non-refundable closing fee of $ 50,000 24,000 44,833 118,833 14,855 10.0 138,889 333,333 15,625 2.0 1.5 1.0 Events of default which may cause repayment of the Term Loans to be accelerated include, among other customary events of default, (1) non-payment of any obligation when due, (2) the failure to perform any obligation required under the Loan and Security Agreement and to cure such default within a reasonable time frame, (3) the occurrence of a Material Adverse Event (as defined in the Loan and Security Agreement), (4) the attachment or seizure of a material portion of the Borrower’s assets if such attachment or seizure is not released, discharged or rescinded within 10 days, and (5) if the Borrower becomes insolvent or starts an insolvency proceeding or if an insolvency proceeding is brought by a third party against the Borrower and such proceeding is not dismissed or stayed within 30 days. The Loan and Security Agreement includes customary loan conditions, Borrower representations and warranties, Borrower affirmative covenants and Borrower negative covenants for secured transactions of this type. The Company’s and CytoSorbents Medical, Inc.’s obligations under the Loan and Security Agreement are joint and severable. The obligations under the Loan and Security Agreement are secured by a first priority security interest in favor of the Bank with respect to the Company’s Shares and the Borrower’s Collateral, which definition excludes the Borrower’s intellectual property and other customary exceptions. Success Fee Letter: In connection with the Loan and Security Agreement, the Borrower simultaneously entered into a Success Fee Letter (the “Letter”) with the Bank. Pursuant to the Letter, the Borrower shall pay to the Bank a success fee in the amount equal to 6.37 8.00 If the Success Fee is due pursuant to a Liquidity Event described in clause (d) of the definition thereof, the Company may elect, in lieu of paying the Success Fee in cash, to issue and sell to the Bank, in exchange for the Success Fee, such number of shares of the Company’s Common Stock as would be equal to the quotient (calculated by rounding up the nearest whole number) obtained by dividing (a) the Success Fee by (b) the volume weighted average price per share of the Company’s Common Stock for the same five successive business days on which the closing price per share of the Company’s Common Stock caused the Success Fee to become payable. The Bank’s right to receive the Success Fee and the Borrower’s obligation to pay such Success Fee terminate on June 30, 2021, and shall survive the termination of the Loan and Security Agreement and any prepayment of the Term Loans. Principal amount $ 5,000,000 Less unamortized debt acquisition costs (103,978) Plus accrued final fee 15,625 Subtotal 4,911,647 Less Current maturities 833,333 Long-term debt net of current maturities $ 4,078,314 2017 $ 833,333 2018 1,666,667 2019 1,666,667 2020 833,333 5,000,000 Final fee- 2020 15,625 Total $ 5,015,625

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2016
INCOME TAXES [Abstract]
INCOME TAXES	7. INCOME TAXES: The Company accounts for income taxes under FASB ASC 740 ("ASC 740"). Deferred income tax assets and liabilities are determined based upon differences between financial reporting and tax bases of assets and liabilities, which are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Year Ended December 31, 2016 2015 2014 Domestic $ (9,475,461) $ (5,507,803) $ (6,481,821) Foreign (2,781,964) (2,948,541) (3,225,493) Total $ (12,257,425) $ (8,456,344) $ (9,707,314) Year Ended December 31, 2016 2015 2014 State Tax, including sale of New Jersey losses & credits $ 318,550 $ 324,606 $ 385,642 Foreign tax provision -- -- -- $ 318,550 $ 324,606 $ 385,642 As of December 31, 2016, the Company had federal net operating loss ("NOL") carry forwards of approximately $ 36,402,000 6,755,000 8,956,000 1,122,000 137,000 The NOL carry forwards are subject to review and possible adjustment by the Internal Revenue Service and state tax authorities. The NOLs may become subject to an annual limitation in the event of certain cumulative changes in the ownership interest of significant shareholders over a three-year period in excess of 50%, as defined under Section 382 of the Internal Revenue Code of 1986, as amended, as well as similar state tax provisions. This could limit the amount of NOLs that the Company can utilize annually to offset future taxable income or tax liabilities. The amount of the annual limitation, if any, will generally be determined based on the value of the Company immediately prior to the ownership change. Subsequent ownership changes may further affect the limitation in future years. Sale of Net Operating Losses (NOLs) The Company may be eligible, from time to time, to receive cash from the sale of its Net Operating Losses and R&D tax credits under the State of New Jersey Technology Business Tax Certificate Transfer Program. In December 2016, the Company received a net cash amount of $ 318,550 Year Ended December 31, 2016 2015 2014 Current and long term deferred tax assets: Net operating loss carry forward $ 15,227,562 $ 13,041,156 $ 11,073,004 Stock Options 498,287 486,726 -- Warrants 108,594 120,329 -- Research and development credit carryforward 1,121,722 1,113,151 -- Accruals and others 213,791 (12,065) -- Gross deferred tax assets 17,169,956 14,749,297 11,073,004 Less valuation allowance (17,152,066) (14,746,091) (11,073,004) 17,890 3,206 - Deferred tax liability: Fixed Assets (17,890) (3,206) -- Net deferred tax assets $ -- $ -- $ -- In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on this assessment, management has established a full valuation allowance against all of the deferred tax assets for each period because it is more likely than not that all of the deferred tax assets will not be realized. The increases in valuation allowance for the years ended December 31, 2016, 2015 and 2014 were $ 2,405,975 3,673,088 2,771,746 Year Ended December 31, 2016 2015 2014 Federal statutory rate 34.0 % 34.0 % 34.0 % State taxes, net of federal benefit (4.1) 3.1 -- Foreign rate differential (1.0) (1.5) -- Permanent items (8.4) 2.9 (1.0) Rate change and true-up (6.0) 5.1 -- Timing differences -- -- 1.0 Change in valuation allowance (13.7) (43.4) (34.0) R&D credit 1.8 3.6 -- Effective income tax rate 2.6 % 3.8 % -- %

WARRANT LIABILITY

WARRANT LIABILITY	12 Months Ended
	Dec. 31, 2016
WARRANT LIABILITY [Abstract]
WARRANT LIABILITY	8. 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 5.45 5.85 10.22 175,418 1,345,290 2,118,498 1,811,547 1,636,128 2016 2015 2014 Number of shares underlying the warrants 736,000 736,000 816,000 Exercise price $ 7.8125 $ 7.8125 $ 7.8125 Volatility 70.4 % 66.5 % 28.3 % Risk-free interest rate 0.36 % 1.35 % 1.43 % Expected dividend yield 0 0 0 Expected warrant life (years) 2.19 3.19 4.19 Stock price $ 5.45 $ 5.85 $ 10.22

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2016
COMMITMENTS AND CONTINGENCIES [Abstract]
COMMITMENTS AND CONTINGENCIES	9. COMMITMENTS AND CONTINGENCIES: The Company is obligated under non-cancelable operating leases for office space expiring at various dates through August 2021. Year ending December 31, 2017 $ 375,612 2018 276,588 2019 78,540 2020 78,540 2021 52,360 Total $ 861,640 The preceding data reflects existing leases through the date of this report and does not include replacements upon their expiration. In the normal course of business, operating leases are normally renewed or replaced by other leases. Rent expense for the years ended December 31, 2016, 2015 and 2014 amounted to approximately $ 473,000 411,000 328,000 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 became 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 in 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 3 243,000 118,000 93,000 License Agreements In an agreement dated September 1, 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 5 324,000 158,000 77,000

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2016
STOCKHOLDERS' EQUITY [Abstract]
STOCKHOLDERS' EQUITY	10. 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 after giving effect to the reverse stock split (see Note 2). The amended articles of incorporation authorize the issuance of up to 5,000,000 Conversion of Series A and Series B Preferred Stock into Common Stock. On October 9, 2014, the Company filed with the Nevada Secretary of State an Amendment (the "Series A Amendment”) to the Certificate of Designation, as amended (the "Series A Certificate of Designation") of the Series A Preferred Stock. The Series A Amendment, which became effective on October 9, 2014, (i) amended the Series A Certificate of Designation to allow the stockholders representing eighty percent ( 80 31.25 19.25 88 1,894,969 103,332 In addition, on October 9, 2014, the Company also filed with the Nevada Secretary of State an Amendment (the "Series B Amendment") to the Certificate of Designation (the "Series B Certificate of Designation") of the Series B Preferred Stock. The Series B Amendment, which became effective on October 9, 2014, amended the Series B Certificate of Designation to allow the holders of a majority of the Series B Preferred Stock, including NJTC Investment Fund, LP, to elect to convert all issued and outstanding shares of Series B Preferred Stock into Common Stock. Immediately following effectiveness of the Series B Amendment, the stockholders representing over 93 100.00 0.90 10 84,283.99 92,712.27 10,244,450 After giving effect to the conversions of the Series A Preferred Stock and Series B Preferred Stock described above, there are no shares of Preferred Stock of the Company issued and outstanding as of December 31, 2016, 2015 and 2014. During the year ended December 31, 2014, the Company issued 135,303 1.00 238,313 During the year ended December 31, 2014, the Company issued 14,499.96 shares of Series B Preferred Stock respectively as payment of stock dividends at the stated value of $ 100.00 9,028,360 Determination of Stock Dividend Fair Value The Company utilizes a five day volume weighted average price of actual closing market prices for the Company’s Common Stock as its basis for estimating the fair value of the preferred stock dividends. 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 of (b) the termination of the Sales Agreement by Cantor or the Company, as permitted therein. In the fourth quarter of 2015, 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 (the “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 U.S. Securities and Exchange Commission (the “SEC”) 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 (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 30,000 120 85,000 Stock Option Plans As of December 31, 2016, the Company had two Long Term Incentive Plans (the “2014 Plan” and the “2006 Plan”) to attract, retain, and provide incentives to employees, officers, directors, and consultants. The Plans generally provide for the granting of stock, stock options, stock appreciation rights, restricted shares, or any combination of the foregoing to eligible participants. A total of 2,400,000 2,400,000 158,000 129,000 401,000 The 2014 and 2006 Plans as well as grants issued outside of the Plan are administered by the Compensation Committee of the Board of Directors (the “Compensation Committee”). The Compensation Committee is authorized to select from among eligible employees, directors, advisors and consultants those individuals to whom incentives are to be granted and to determine the number of shares to be subject to, and the terms and conditions of the options. The Compensation Committee is also authorized to prescribe, amend and rescind terms relating to options granted under the Plans. Generally, the interpretation and construction of any provision of the Plans or any options granted hereunder is within the discretion of the Compensation Committee. The 2014 Plan provide that options may or may not be Incentive Stock Options (ISOs) within the meaning of Section 422 of the Internal Revenue Code. Only employees of the Company are eligible to receive ISOs, while employees and non-employee directors, advisors and consultants are eligible to receive options, which are not ISOs, i.e. “Non-Qualified Options.” Because the Company has not yet obtained shareholder approval of the 2006 Plan, all options granted thereunder to date are “Non-Qualified Options” and until such shareholder approval is obtained, all future options issued under the 2006 Plan will also be “Non-Qualified Options.” In December 2014, the Company’s received shareholder approval authorizing the Board of Directors to implement the form, terms and provisions of the 2014 Plan. Accordingly, any options issued to employees under the 2014 Plan will be ISOs within the meaning of Section 422 of the Internal Revenue Code. Stock-based Compensation Total share-based employee, director, and consultant compensation for the years ended December 31, 2016, 2015 and 2014 amounted to approximately $ 2,632,000 382,000 696,000 711,000 126,000 144,000 1,921,000 256,000 552,000 Weighted Weighted Average Average Remaining Exercise Contractual Shares per Share Life (Years) Outstanding January 1, 2014 1,916,951 $ 5.00 5.1 Granted 732,800 $ 5.02 8.7 Forfeited (227,810) $ 3.26 - Expired (2,502) $ 45.80 - Exercised (117,252) $ 0.97 - Outstanding, December 31, 2014 2,302,187 $ 5.37 6.1 Granted 681,000 $ 7.88 - Forfeited (166,287) $ 5.19 - Expired - $ - - Exercised (339,621) $ 1.74 3.2 Outstanding, December 31, 2015 2,477,279 $ 6.56 6.2 Granted 1,044,219 $ 4.68 - Forfeited (695,770) $ 7.12 - Expired (27,351) $ 114.33 - Exercised (36,200) $ 3.26 2.5 Outstanding, December 31, 2016 2,762,177 $ 4.69 6.0 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 6.47 10 66.8 68.7 0 1.24 1.85 5.45 Options Outstanding Number Weighted Weighted Range of Outstanding at Average Average Aggregate Exercise December 31, Exercise Remaining Intrinsic Price 2016 Price Life (Years) Value $0.88 - $47.50 2,762,177 $ 4.69 6.0 $ 3,604,766 Options Exercisable Number Weighted Exercisable at Average Aggregate December 31, Exercise Intrinsic 2016 Price Value 1,849,629 $ 4.63 $ 2,920,034 Weighted Average Grant Date Shares Fair Value Non-vested, January 1, 2016 794,708 $ 2.72 Granted 1,044,219 2.71 Forfeited (684,270) 3.14 Vested (242,110) 1.13 Non-vested, December 31, 2016 912,547 $ 2.55 As of December 31, 2016, the Company had approximately $ 309,000 On February 24, 2017, the Board of Directors granted options to purchase 953,200 3,165,000 On June 7, 2016, the Board of Directors granted options to purchase 900,100 2,437,000 716,480 1,940,000 In April 2015, the Board of Directors granted options to purchase 566,000 The grant date fair value of these unvested options amounted to approximately $ 1,388,000 72,400 241,000 In April 2015, the Board of Directors also granted 960,000 7,747,200 240,000 1,936,000 75,000 414,000 1,941,660 1,539,000 136,500 758,000 1,675,500 Performance Based Stock Awards: Pursuant to a review of the compensation of the senior management of the Company, on June 7, 2016, the Board of Directors granted 80,000 375,200 198,000 Weighted Average Grant Date Shares Fair Value Non-vested, January 1, 2016 - $ - Granted 80,000 4.69 Vested (26,665) 4.69 53,335 $ 4.69 Warrants: Number of Shares Warrant Exercise Warrant To be Purchased Price per Share Expiration Date 40,001 $ 4.375 February 10, 2017 113,600 $ 3.750 June 21, 2018 110,000 $ 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 1,078,561

NET LOSS PER SHARE

NET LOSS PER SHARE	12 Months Ended
	Dec. 31, 2016
NET LOSS PER SHARE [Abstract]
NET LOSS PER SHARE	11. NET LOSS PER SHARE Basic earnings per share and diluted earnings per share for the years ended December 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 5,433,073 3,592,000

RETIREMENT PLAN

RETIREMENT PLAN	12 Months Ended
	Dec. 31, 2016
RETIREMENT PLAN [Abstract]
RETIREMENT PLAN	12. RETIREMENT PLAN In June 2014, the Company formed the CytoSorbents 401(k) Plan. The plan is a defined contribution plan as described in section 401(k) of the Internal Revenue Code (“IRC”) covering substantially all full time employees. Employees are eligible to participate in the plan on the first day of the calendar quarter following three full months of employment. Participants may defer up to 100 twenty five 35,900 26,400 10,500

SUBSEQUENT EVENT

SUBSEQUENT EVENT	12 Months Ended
	Dec. 31, 2016
SUBSEQUENT EVENT [Abstract]
SUBSEQUENT EVENTS	13. SUBSEQUENT EVENT In January 2017, the Company was awarded a Phase II contract to continue development of CytoSorb for fungal mycotoxin blood purification. This program will focus on demonstrating the ability of CytoSorb to absorb mycotoxins in vivo 999,996 Pursuant to a review of the compensation of the senior management of the Company and managements performance in 2016, on February 24, 2017, the Board of Directors granted 125,000 700,000

QUARTERLY FINANCIAL RESULTS (UN

QUARTERLY FINANCIAL RESULTS (UNAUDITED)	12 Months Ended
	Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
QUARTERLY FINANCIAL RESULTS (UNAUDITED)	14. QUARTERLY FINANCIAL RESULTS (UNAUDITED): For the Quarters Ended March 31 June 30 September 30 December 31 2016: Total revenue $ 1,810,182 $ 2,222,338 $ 2,411,708 $ 3,083,615 Gross margin 990,683 1,349,072 1,447,827 1,786,536 Loss from operations (2,090,094) (2,687,371) (2,144,212) (4,570,448) Net loss attributable to common stockholders (1,836,302) (3,005,243) (2,682,715) (4,414,615) Net loss per share, basic and diluted (0.08) (0.12) (0.11) (0.16) 2015: Total revenue $ 723,074 $ 963,939 $ 1,343,625 $ 1,760,978 Gross margin 418,593 498,508 704,795 957,174 Loss from operations (2,711,629) (2,227,459) (2,150,296) (2,214,275) Net income ( loss) attributable to common stockholders (4,716,942) 1,434,318 (2,847,441) (2,001,674) Net loss per share, basic (0.19) 0.06 (0.11) (0.08) Net loss per share, diluted (0.19) 0.05 (0.11) (0.08) 2014: Total revenue 1,062,172 1,024,655 1,162,347 873,660 Gross margin 399,635 358,504 686,457 544,342 Loss from operations (1,154,194) (1,363,389) (1,483,553) (2,891,700) Net loss attributable to common stockholders (2,089,599) (3,227,847) (2,779,408) (10,491,491) Net loss per share, basic and diluted (0.20) (0.27) (0.22) (0.84)

PRINCIPAL BUSINESS ACTIVITY A22

PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 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, conducts sales and marketing related operations for the CytoSorb device. In March 2016, the Company formed CytoSorbents Switzerland GmbH, a wholly-owned subsidiary of CytoSorbents Europe GmbH. This subsidiary, which began operations during the second quarter of 2016, provides marketing and direct sales services 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 1 10
Reverse Stock Split	Reverse Stock Split The Company’s enacted a twenty-five-for-one
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 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 United States of America dollar, the foreign currency financial statements of the European subsidiary, for which the United States of America dollar is the functional currency, are included in operations. Foreign currency transaction losses included in net loss amounted to approximately $ 358,000 507,000 386,000
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid instruments 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 both specific, where applicable, and general accruals for estimated bad debts which amounted to $ 65,414 3,275
Inventories	Inventories Inventories are valued at the lower of cost or market. Cost is determined using a first-in first-out (“FIFO”) basis. At December 31, 2016 and December 31, 2015 the Company’s inventory was comprised of finished goods, which amounted to $ 307,483 382,099 467,663 758,562 58,830 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 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 Monte Carlo simulation 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 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. In the ordinary course of business, the Company is under no obligation to accept returns from its customers. Grant Revenue : Revenue from grant income is based on contractual agreements with United States government agencies. 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.
Research and Development	Research and Development All research and development costs, payments to laboratories, research consultants and costs related to clinical trials and studies are expensed when incurred.
Advertising Expenses	Advertising Expenses Advertising costs are charged to activities when incurred. Advertising expense amounted to approximately $ 173,000 282,000 142,000
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 the accounting standards associated with uncertain tax provisions. The Company had no unrecognized tax benefits at December 31, 2016 or 2015. The Company files tax returns in the U.S. federal and state jurisdictions. The Company utilizes the Technology Business Tax Certificate Transfer Program to sell a portion of its New Jersey Net Operating Loss tax carryforwards to an industrial company. CytoSorbents Europe GmbH and CytoSorbents Switzerland GmbH files an annual corporate tax return, a VAT return and a trade tax return in Germany and Switzerland, respectively.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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, valuation methods used to determine the fair value of the warrant liability and valuation methods used in determining any debt discount associated with the convertible securities.
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. A significant portion of our revenues are from product sales in Germany. Substantially all of our grant and other income are from grant agencies in the United States. 2016 2015 2014 Product Sales: United States $ – $ – $ – Germany 4,985,049 2,353,998 1,405,125 All other countries 3,220,987 1,689,821 1,730,262 Grant and other income: United States 1,321,807 735,863 987,438 Germany – 11,934 – All other countries – – – Total Revenue $ 9,527,843 $ 4,791,616 $ 4,122,825 As of December 31, 2016, one distributor and one government agency accounted for approximately 22 48 11 14 24 12
Financial Instruments	Financial Instruments The carrying values of cash and cash equivalents, accounts receivable, accounts 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 loss attributable 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 11).
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). ASU 2014-15 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 has adopted the provisions of ASU 2014-15 and has included the effects of this adoption in Note 1 to the financial statements. 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 has evaluated the impact of the updated guidance and has determined that the adoption of ASU 2014-09 is not expected to have a significant impact on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, “Interest-Imputation of Interest.” ASU 2015-03 requires that debt issuances costs be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability. The updated guidance is effective for the fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The Company has adopted the provisions of this ASU during the year ended 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. ASU 2015-11 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 has evaluated the impact of the updated guidance and has determined that the adoption of ASU 2015-11 is not expected to 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 has evaluated the impact of the updated guidance and has determined that the adoption of ASU 2016-02 is not expected to have a significant impact on its 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 has evaluated the impact of the updated guidance and has determined that the adoption of ASU 2016-08 is not expected to 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 has evaluated the impact of the updated guidance and has determined that the adoption of ASU 2016-09 is not expected to 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 has evaluated the impact of the updated guidance and has determined that the adoption of ASU 2016-10 is not expected to have a significant impact on its consolidated financial statements. In May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Topic 606), Narrow Scope Improvements and Practical Expedients.” The amendments in ASU 2016-12 affect only the narrow aspects of Topic 606 that are outlined in ASU 2016-12. 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 has evaluated the impact of the updated guidance and has determined that the adoption of ASU 2016-12 is not expected to have a significant impact on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force).” The amendments in this update relate to eight specific types of cash receipts and cash payments which current GAAP either is unclear or does not include specific guidance on the cash flow classification issues. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The Company will adopt the provisions of this ASU for its fiscal year beginning January 1, 2017. The adoption of ASU 2016-15 is not expected to 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 shipping and handling costs in Research and Development. Total freight costs amounted to approximately $ 167,000 145,000 103,000
Reclassifications	Reclassifications Certain reclassifications have been made to the December 31, 2015 and 2014 financial statements in order to conform to 2016 financial statement presentation. There was no change in the reported amount of accumulated deficit as a result of these reclassifications.

PRINCIPAL BUSINESS ACTIVITY A23

PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2016
PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Geographic summary of revenues	The following table provides a geographic summary of revenues: 2016 2015 2014 Product Sales: United States $ – $ – $ – Germany 4,985,049 2,353,998 1,405,125 All other countries 3,220,987 1,689,821 1,730,262 Grant and other income: United States 1,321,807 735,863 987,438 Germany – 11,934 – All other countries – – – Total Revenue $ 9,527,843 $ 4,791,616 $ 4,122,825

PROPERTY AND EQUIPMENT, NET (Ta

PROPERTY AND EQUIPMENT, NET (Tables)	12 Months Ended
	Dec. 31, 2016
PROPERTY AND EQUIPMENT, NET [Abstract]
Schedule of Property and Equipment, Net	Property and equipment - net, consists of the following: Depreciation/ Amortization December 31, 2016 2015 Period Furniture and fixtures $ 264,793 $ 205,019 7 years Equipment and computers 2,396,811 2,287,305 3 to 7 years Lesser of term of lease or Leasehold improvements 570,678 605,939 estimated useful life 3,232,282 3,098,263 Less accumulated depreciation and amortization 2,662,873 2,540,974 Property and Equipment, Net $ 569,409 $ 557,289

OTHER ASSETS (Tables)

OTHER ASSETS (Tables)	12 Months Ended
	Dec. 31, 2016
OTHER ASSETS [Abstract]
Schedule of Other Assets	December 31, 2016 2015 Intangible assets, net $ 1,191,101 $ 771,795 Security deposits 104,910 64,954 Total $ 1,296,011 $ 836,749
Schedule of Intangible Assets	Intangible assets, which are included as a component of other assets, consist of the following: December 31, 2016 2015 Gross Accumulated Gross Accumulated Amount Amortization Net Amount Amortization Net Patents $ 1,393,776 $ 202,675 $ 1,191,101 $ 938,969 $ 167,174 $ 771,795

ACCRUED EXPENSES AND OTHER CU26

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2016
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES [Abstract]
Schedule of accrued expenses and other current liabilities	2016 2015 Accrued salaries and commissions $ 700,917 $ 141,606 Clinical Studies 556,170 -- Professional fees 249,945 150,121 Travel and entertainment 224,621 219,627 Accrued royalties 183,047 102,586 Sales, payroll and income taxes payable 96,159 22,592 Other 44,876 37,236 Interest 35,681 -- Board of Director fees 23,250 19,250 Customer Deposits -- 30,000 $ 2,114,666 $ 723,018

LONG-TERM DEBT, NET (Tables)

LONG-TERM DEBT, NET (Tables)	12 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Schedule of Long-term Debt	Long-term debt consists of the following at December 31, 2016: Principal amount $ 5,000,000 Less unamortized debt acquisition costs (103,978) Plus accrued final fee 15,625 Subtotal 4,911,647 Less Current maturities 833,333 Long-term debt net of current maturities $ 4,078,314
Schedule of Principal payments of long-term debt	2017 $ 833,333 2018 1,666,667 2019 1,666,667 2020 833,333 5,000,000 Final fee- 2020 15,625 Total $ 5,015,625

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2016
INCOME TAXES [Abstract]
Schedule of Income before Income Tax, Domestic and Foreign	The Company's consolidated loss before income taxes for the years ended December 31, 2016, 2015 and 2014 is as follows: Year Ended December 31, 2016 2015 2014 Domestic $ (9,475,461) $ (5,507,803) $ (6,481,821) Foreign (2,781,964) (2,948,541) (3,225,493) Total $ (12,257,425) $ (8,456,344) $ (9,707,314)
Schedule of Components of Income Tax Expense (Benefit)	The benefit from income taxes consists of the following: Year Ended December 31, 2016 2015 2014 State Tax, including sale of New Jersey losses & credits $ 318,550 $ 324,606 $ 385,642 Foreign tax provision -- -- -- $ 318,550 $ 324,606 $ 385,642
Schedule of Deferred Tax Assets and Liabilities	The principal components of the Company's deferred tax assets and liabilities are as follows: Year Ended December 31, 2016 2015 2014 Current and long term deferred tax assets: Net operating loss carry forward $ 15,227,562 $ 13,041,156 $ 11,073,004 Stock Options 498,287 486,726 -- Warrants 108,594 120,329 -- Research and development credit carryforward 1,121,722 1,113,151 -- Accruals and others 213,791 (12,065) -- Gross deferred tax assets 17,169,956 14,749,297 11,073,004 Less valuation allowance (17,152,066) (14,746,091) (11,073,004) 17,890 3,206 - Deferred tax liability: Fixed Assets (17,890) (3,206) -- Net deferred tax assets $ -- $ -- $ --
Schedule of Effective Income Tax Rate Reconciliation	A reconciliation of income tax (expense) benefit at the statutory federal income tax rate and income taxes as reflected in the financial statements is as follows: Year Ended December 31, 2016 2015 2014 Federal statutory rate 34.0 % 34.0 % 34.0 % State taxes, net of federal benefit (4.1) 3.1 -- Foreign rate differential (1.0) (1.5) -- Permanent items (8.4) 2.9 (1.0) Rate change and true-up (6.0) 5.1 -- Timing differences -- -- 1.0 Change in valuation allowance (13.7) (43.4) (34.0) R&D credit 1.8 3.6 -- Effective income tax rate 2.6 % 3.8 % -- %

WARRANT LIABILITY (Tables)

WARRANT LIABILITY (Tables)	12 Months Ended
	Dec. 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 models were as follows: 2016 2015 2014 Number of shares underlying the warrants 736,000 736,000 816,000 Exercise price $ 7.8125 $ 7.8125 $ 7.8125 Volatility 70.4 % 66.5 % 28.3 % Risk-free interest rate 0.36 % 1.35 % 1.43 % Expected dividend yield 0 0 0 Expected warrant life (years) 2.19 3.19 4.19 Stock price $ 5.45 $ 5.85 $ 10.22

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2016
COMMITMENTS AND CONTINGENCIES [Abstract]
Schedule of Future Minimum Payments Under Operating Leases	The aggregate minimum future payments under these leases are approximately as follows: Year ending December 31, 2017 $ 375,612 2018 276,588 2019 78,540 2020 78,540 2021 52,360 Total $ 861,640

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	12 Months Ended
	Dec. 31, 2016
STOCKHOLDERS' EQUITY [Abstract]
Schedule Of Share Based Compensation Stock Options Activity	The summary of the stock option activity for the years ended December 31, 2016, 2015 and 2014 is as follows: Weighted Weighted Average Average Remaining Exercise Contractual Shares per Share Life (Years) Outstanding January 1, 2014 1,916,951 $ 5.00 5.1 Granted 732,800 $ 5.02 8.7 Forfeited (227,810) $ 3.26 - Expired (2,502) $ 45.80 - Exercised (117,252) $ 0.97 - Outstanding, December 31, 2014 2,302,187 $ 5.37 6.1 Granted 681,000 $ 7.88 - Forfeited (166,287) $ 5.19 - Expired - $ - - Exercised (339,621) $ 1.74 3.2 Outstanding, December 31, 2015 2,477,279 $ 6.56 6.2 Granted 1,044,219 $ 4.68 - Forfeited (695,770) $ 7.12 - Expired (27,351) $ 114.33 - Exercised (36,200) $ 3.26 2.5 Outstanding, December 31, 2016 2,762,177 $ 4.69 6.0
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 December 31, 2016 of $ 5.45 Options Outstanding Number Weighted Weighted Range of Outstanding at Average Average Aggregate Exercise December 31, Exercise Remaining Intrinsic Price 2016 Price Life (Years) Value $0.88 - $47.50 2,762,177 $ 4.69 6.0 $ 3,604,766 Options Exercisable Number Weighted Exercisable at Average Aggregate December 31, Exercise Intrinsic 2016 Price Value 1,849,629 $ 4.63 $ 2,920,034
Schedule Of Nonvested Share Activity	The summary of the status of the Company’s non-vested options for the year ended December 31, 2016 is as follows: Weighted Average Grant Date Shares Fair Value Non-vested, January 1, 2016 794,708 $ 2.72 Granted 1,044,219 2.71 Forfeited (684,270) 3.14 Vested (242,110) 1.13 Non-vested, December 31, 2016 912,547 $ 2.55
Schedule Of Restricted Stock Unit Activity	The following table outlines the restricted stock unit activity for the year ended December 31, 2016: Weighted Average Grant Date Shares Fair Value Non-vested, January 1, 2016 - $ - Granted 80,000 4.69 Vested (26,665) 4.69 53,335 $ 4.69
Schedule Of Stockholders Equity Note Warrants and Common Stock Activity	As of December 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 40,001 $ 4.375 February 10, 2017 113,600 $ 3.750 June 21, 2018 110,000 $ 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 1,078,561

QUARTERLY FINANCIAL RESULTS (32

QUARTERLY FINANCIAL RESULTS (UNAUDITED) (Tables)	12 Months Ended
	Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
Condensed Income Statement	Summarized quarterly data for 2016, 2015 and 2014 are as follows: For the Quarters Ended March 31 June 30 September 30 December 31 2016: Total revenue $ 1,810,182 $ 2,222,338 $ 2,411,708 $ 3,083,615 Gross margin 990,683 1,349,072 1,447,827 1,786,536 Loss from operations (2,090,094) (2,687,371) (2,144,212) (4,570,448) Net loss attributable to common stockholders (1,836,302) (3,005,243) (2,682,715) (4,414,615) Net loss per share, basic and diluted (0.08) (0.12) (0.11) (0.16) 2015: Total revenue $ 723,074 $ 963,939 $ 1,343,625 $ 1,760,978 Gross margin 418,593 498,508 704,795 957,174 Loss from operations (2,711,629) (2,227,459) (2,150,296) (2,214,275) Net income ( loss) attributable to common stockholders (4,716,942) 1,434,318 (2,847,441) (2,001,674) Net loss per share, basic (0.19) 0.06 (0.11) (0.08) Net loss per share, diluted (0.19) 0.05 (0.11) (0.08) 2014: Total revenue 1,062,172 1,024,655 1,162,347 873,660 Gross margin 399,635 358,504 686,457 544,342 Loss from operations (1,154,194) (1,363,389) (1,483,553) (2,891,700) Net loss attributable to common stockholders (2,089,599) (3,227,847) (2,779,408) (10,491,491) Net loss per share, basic and diluted (0.20) (0.27) (0.22) (0.84)

BASIS OF PRESENTATION (Details

BASIS OF PRESENTATION (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
BASIS OF PRESENTATION [Line Items]
Accumulated deficit	$ (144,464,733)	$ (132,525,858)
Net income (loss)	$ (11,938,875)	$ (8,131,738)	$ (9,321,672)

PRINCIPAL BUSINESS ACTIVITY A34

PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	3 Months Ended												12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Product Sales:
Sales Revenue, Goods, Net													$ 8,206,036	$ 4,043,819	$ 3,135,387
Grant and other income:
Other Revenue, Net													0	11,934	9,167
Total Revenue	$ 3,083,615	$ 2,411,708	$ 2,222,338	$ 1,810,182	$ 1,760,978	$ 1,343,625	$ 963,939	$ 723,074	$ 873,660	$ 1,162,347	$ 1,024,655	$ 1,062,172	9,527,843	4,791,616	4,122,825
United States [Member]
Product Sales:
Sales Revenue, Goods, Net													0	0	0
Grant and other income:
Other Revenue, Net													1,321,807	735,863	987,438
Germany [Member]
Product Sales:
Sales Revenue, Goods, Net													4,985,049	2,353,998	1,405,125
Grant and other income:
Other Revenue, Net													0	11,934	0
All other countries [Member]
Product Sales:
Sales Revenue, Goods, Net													3,220,987	1,689,821	1,730,262
Grant and other income:
Other Revenue, Net													$ 0	$ 0	$ 0

PRINCIPAL BUSINESS ACTIVITY A35

PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual)	Dec. 03, 2014	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Principal Business Activity and Summary of Significant Accounting Policies [Line Items]
Number of patents issued		32
Foreign Currency Transaction Gain (Loss), before Tax		$ (358,077)	$ (507,276)	$ (385,956)
Allowance For Doubtful Accounts Receivable		65,414	3,275
Inventory, Finished Goods, Gross		307,483	382,099
Inventory, Work in Process, Gross		467,663	758,562
Inventory, Raw Materials, Gross		58,830	50,020
Advertising Expense		173,000	282,000	142,000
Freight Costs		$ 167,000	$ 145,000	$ 103,000
Stockholders' Equity, Reverse Stock Split	twenty-five-for-one
Accounts Receivable [Member] | Distributor and United States Government Agency [Member]
Principal Business Activity and Summary of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage		22.00%
United States Government Agency [Member] | Accounts Receivable [Member] | Credit Concentration Risk [Member]
Principal Business Activity and Summary of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage			48.00%
United States Government Agency [Member] | Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member]
Principal Business Activity and Summary of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage			14.00%	24.00%
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				12.00%
One Direct Customer [Member] | Sales Revenue, Net [Member] | Credit Concentration Risk [Member]
Principal Business Activity and Summary of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage		11.00%
Minimum [Member] | Intellectual Property [Member]
Principal Business Activity and Summary of Significant Accounting Policies [Line Items]
Finite-Lived Intangible Asset, Useful Life		1 year
Maximum [Member] | Intellectual Property [Member]
Principal Business Activity and Summary of Significant Accounting Policies [Line Items]
Finite-Lived Intangible Asset, Useful Life		10 years

PROPERTY AND EQUIPMENT, NET (De

PROPERTY AND EQUIPMENT, NET (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment	$ 3,232,282	$ 3,098,263
Less accumulated depreciation and amortization	2,662,873	2,540,974
Property and Equipment, Net	569,409	557,289
Equipment and computers [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment	$ 2,396,811	2,287,305
Equipment and computers [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Equipment and computers [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	7 years
Furniture and fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment	$ 264,793	205,019
Property, Plant and Equipment, Useful Life	7 years
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment	$ 570,678	$ 605,939
Property Plant And Equipment Useful Life Description	Lesser of term of lease or estimated useful life

PROPERTY AND EQUIPMENT, NET (37

PROPERTY AND EQUIPMENT, NET (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Depreciation	$ 126,112	$ 87,397	$ 48,429

OTHER ASSETS (Details)

OTHER ASSETS (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Other Assets [Line Items]
Intangible assets, net	$ 1,191,101	$ 771,795
Security deposits	104,910	64,954
Total	$ 1,296,011	$ 836,749

OTHER ASSETS (Details 1)

OTHER ASSETS (Details 1) - Patents [Member] - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Gross Amount	$ 1,393,776	$ 938,969
Accumulated Amortization	202,675	167,174
Net	$ 1,191,101	$ 771,795

OTHER ASSETS (Details Textual)

OTHER ASSETS (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Other Assets [Line Items]
2,017	$ 40,500
2,018	32,500
2,019	32,500
2,020	31,600
2,021	30,300
Amortization expense	$ 35,501	$ 25,573	$ 17,118

ACCRUED EXPENSES AND OTHER CU41

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Accrued Expenses And Other Current Liabilities [Line Items]
Accrued salaries and commissions	$ 700,917	$ 141,606
Clinical Studies	556,170	0
Professional fees	249,945	150,121
Travel and entertainment	224,621	219,627
Accrued royalties	183,047	102,586
Sales, payroll and income taxes payable	96,159	22,592
Other	44,876	37,236
Interest	35,681	0
Board of Director fees	23,250	19,250
Customer Deposits	0	30,000
Accrued Expenses And Other Current Liabilities	$ 2,114,666	$ 723,018

LONG-TERM DEBT, NET (Details)

LONG-TERM DEBT, NET (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Principal amount	$ 5,000,000
Less unamortized debt acquisition costs	(103,978)
Plus accrued final fee	15,625
Subtotal	4,911,647
Less Current maturities	833,333	$ 0
Long-term debt net of current maturities	$ 4,078,314	$ 0

LONG-TERM DEBT, NET (Details 1)

LONG-TERM DEBT, NET (Details 1)	Dec. 31, 2016USD ($)
2,017	$ 833,333
2,018	1,666,667
2,019	1,666,667
2,020	833,333
Total	5,000,000
Final fee- 2020	15,625
Long-term Debt and Final Fee	$ 5,015,625

LONG-TERM DEBT, NET (Details Te

LONG-TERM DEBT, NET (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015	Dec. 31, 2014	Mar. 11, 2014
Debt Issuance Costs, Net	$ 103,978
Share Price	$ 5.45		$ 5.85	$ 10.22	$ 6
Term A Loan [Member]
Debt Instrument, Interest Rate, Effective Percentage		10.00%
Non-Refundable Closing Fee [Member]
Interest Expense, Debt	$ 14,855
Non-Refundable Final Fee [Member]
Interest Expense, Debt	$ 15,625
Western Alliance Bank [Member]
Debt Instrument, Face Amount		$ 10,000,000
Debt Instrument, Interest Rate, Stated Percentage	8.38%
Debt Issuance Costs, Net	$ 118,833
Percentage Of Success fee	6.37%
Share Price	$ 8
Western Alliance Bank [Member] | First Anniversary [Member]
Debt Instrument, Periodic Payment	$ 138,889
Percentage Of Prepayment Interest	2.00%
Western Alliance Bank [Member] | Second Anniversary [Member]
Percentage Of Prepayment Interest	1.50%
Western Alliance Bank [Member] | Third Anniversary [Member]
Percentage Of Prepayment Interest	1.00%
Western Alliance Bank [Member] | Closing Fee [Member]
Debt Issuance Costs, Net	$ 50,000
Western Alliance Bank [Member] | Bank related Expenses [Member]
Debt Issuance Costs, Net	24,000
Western Alliance Bank [Member] | Legal Expenses [Member]
Debt Issuance Costs, Net	44,833
Western Alliance Bank [Member] | Term A Loan [Member]
Debt Instrument, Face Amount		$ 5,000,000
Western Alliance Bank [Member] | Term B Loan [Member] | First Anniversary [Member]
Debt Instrument, Periodic Payment	$ 333,333

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Contingency [Line Items]
Domestic	$ (9,475,461)	$ (5,507,803)	$ (6,481,821)
Foreign	(2,781,964)	(2,948,541)	(3,225,493)
Total	$ (12,257,425)	$ (8,456,344)	$ (9,707,314)

INCOME TAXES (Details 1)

INCOME TAXES (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
State Tax, including sale of New Jersey losses & credits	$ 318,550	$ 324,606	$ 385,642
Foreign tax provision	0	0	0
Income Tax Expenase (Benefit), Total	$ 318,550	$ 324,606	$ 385,642

INCOME TAXES (Details 2)

INCOME TAXES (Details 2) - USD ($)	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Current and long term deferred tax assets:
Net operating loss carryforward	$ 15,227,562	$ 13,041,156	$ 11,073,004
Research and development credit carryforward	1,121,722	1,113,151	0
Accruals and others	213,791	(12,065)	0
Gross deferred tax assets	17,169,956	14,749,297	11,073,004
Less valuation allowance	(17,152,066)	(14,746,091)	(11,073,004)
Deferred Tax Assets, Net of Valuation Allowance	17,890	3,206	0
Deferred tax liability:
Fixed Assets	(17,890)	(3,206)	0
Net deferred tax assets	0	0	0
Stock Options [Member]
Current and long term deferred tax assets:
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Employee Compensation	498,287	486,726	0
Warrants [Member]
Current and long term deferred tax assets:
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Employee Compensation	$ 108,594	$ 120,329	$ 0

INCOME TAXES (Details 3)

INCOME TAXES (Details 3)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Holiday [Line Items]
Federal statutory rate	34.00%	34.00%	34.00%
State taxes, net of federal benefit	(4.10%)	3.10%	0.00%
Foreign rate differential	(1.00%)	(1.50%)	0.00%
Permanent items	(8.40%)	2.90%	(1.00%)
Rate change and true-up	(6.00%)	5.10%	0.00%
Timing differences	0.00%	0.00%	1.00%
Change in valuation allowance	(13.70%)	(43.40%)	(34.00%)
R&D credit	1.80%	3.60%	0.00%
Effective income tax rate	2.60%	3.80%	0.00%

INCOME TAXES (Details Textual)

INCOME TAXES (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Operating Loss Carryforwards [Line Items]
Proceeds from the sale of prior unused net operating loss carryovers	$ 318,550
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount	2,405,975	$ 3,673,088	$ 2,771,746
Federal [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carry forwards	36,402,000
Tax Credit Carryforward, Amount	1,122,000
State [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carry forwards	6,755,000
Tax Credit Carryforward, Amount	137,000
Foreign Tax Authority [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carry forwards	$ 8,956,000

WARRANT LIABILITY (Details)

WARRANT LIABILITY (Details) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Mar. 11, 2014
Product Warranty Liability [Line Items]
Number of shares underlying the warrants	736,000	736,000	816,000	816,000
Exercise price	$ 7.8125	$ 7.8125	$ 7.8125
Volatility	70.40%	66.50%	28.30%
Risk-free interest rate	0.36%	1.35%	1.43%
Expected dividend yield	0.00%	0.00%	0.00%
Expected warrant life (years)	2 years 2 months 8 days	3 years 2 months 8 days	4 years 2 months 8 days
Stock price	$ 5.45	$ 5.85	$ 10.22	$ 6

WARRANT LIABILITY (Details Text

WARRANT LIABILITY (Details Textual) - USD ($)	Mar. 11, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Class of Warrant or Right [Line Items]
Number of securities called by warrants	816,000	736,000	736,000	816,000
Stock price	$ 6	$ 5.45	$ 5.85	$ 10.22
Fair value of warrant liability upon issuance	$ 862,920	$ 0	$ 0	$ 862,920
Increase (decrease) in fair value of warrant liability		175,418	(1,345,290)	$ 2,118,498
Warrants and Rights Outstanding		$ 1,811,547	$ 1,636,128

COMMITMENTS AND CONTINGENCIES52

COMMITMENTS AND CONTINGENCIES (Details)	Dec. 31, 2016USD ($)
Product Liability Contingency [Line Items]
2,017	$ 375,612
2,018	276,588
2,019	78,540
2,020	78,540
2,021	52,360
Total	$ 861,640

COMMITMENTS AND CONTINGENCIES53

COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($)	Aug. 11, 2003	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Commitments and Contingencies Disclosure [Line Items]
Term of License Agreement		18 years
Rent expenses		$ 473,000	$ 411,000	$ 328,000
Royalty Agreements [Member]
Commitments and Contingencies Disclosure [Line Items]
Future royalty payment percentage on gross revenue	3.00%
Royalty cost		$ 243,000	118,000	93,000
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		$ 324,000	$ 158,000	$ 77,000

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Shares
Outstanding	2,477,279	2,302,187	1,916,951
Granted	1,044,219	681,000	732,800
Forfeited	(695,770)	(166,287)	(227,810)
Expired	(27,351)	0	(2,502)
Exercised	(36,200)	(339,621)	(117,252)
Outstanding	2,762,177	2,477,279	2,302,187	1,916,951
Weighted Average Exercise Price per Share
Outstanding	$ 6.56	$ 5.37	$ 5
Granted	4.68	7.88	5.02
Forfeited	7.12	5.19	3.26
Expired	114.33	0	45.80
Exercised	3.26	1.74	0.97
Outstanding	$ 4.69	$ 6.56	$ 5.37	$ 5
Weighted Average Remaining Contractual Life (Years)
Outstanding	6 years	6 years 2 months 12 days	6 years 1 month 6 days	5 years 1 month 6 days
Granted	0 years	0 years	8 years 8 months 12 days
Forfeited	0 years	0 years	0 years
Expired	0 years	0 years	0 years
Exercisable	2 years 6 months	3 years 2 months 12 days	0 years

STOCKHOLDERS' EQUITY (Details 1

STOCKHOLDERS' EQUITY (Details 1)	12 Months Ended
	Dec. 31, 2016USD ($)$ / sharesshares
Options Exercisable
Number Exercisable at December 31, 2016 | shares	1,849,629
Weighted Average Exercise Price	$ 4.63
Aggregate Intrinsic Value | $	$ 2,920,034
$0.88 - $47.50 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Price, Lower Range Limit	$ 0.88
Range of Exercise Price, Upper Range Limit	$ 47.50
Options Outstanding
Number Outstanding at December 31, 2016 | shares	2,762,177
Weighted Average Exercise Price	$ 4.69
Weighted Average Remaining Life (Years)	6 years
Aggregate Intrinsic Value | $	$ 3,604,766

STOCKHOLDERS' EQUITY (Details 2

STOCKHOLDERS' EQUITY (Details 2) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Shares
Non-vested, January 1, 2016	794,708
Granted	1,044,219	681,000	732,800
Forfeited	(684,270)
Vested	(242,110)
Non-vested, December 31, 2016	912,547	794,708
Weighted Average Grant Date Fair Value
Non-vested, January 1, 2016	$ 2.72
Granted	2.71
Forfeited	3.14
Vested	1.13
Non-vested, December 31, 2016	$ 2.55	$ 2.72

STOCKHOLDERS' EQUITY (Details 3

STOCKHOLDERS' EQUITY (Details 3) - Restricted Stock Units (RSUs) [Member]	12 Months Ended
	Dec. 31, 2016$ / sharesshares
Shares
Non-vested, January 1, 2016 | shares	0
Granted | shares	80,000
Vested | shares	(26,665)
Non-vested, December 31, 2016 | shares	53,335
Weighted Average Grant Date Fair Value
Non-vested, January 1, 2016 | $ / shares	$ 0
Granted | $ / shares	4.69
Vested | $ / shares	4.69
Non-vested, December 31, 2016 | $ / shares	$ 4.69

STOCKHOLDERS' EQUITY (Details 4

STOCKHOLDERS' EQUITY (Details 4)	12 Months Ended
	Dec. 31, 2016$ / sharesshares
Class of Warrant or Right [Line Items]
Number of Shares To be Purchased	1,078,561
Warrant 1
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 2
Class of Warrant or Right [Line Items]
Number of Shares To be Purchased	113,600
Warrant Exercise Price per Share | $ / shares	$ 3.750
Warrant Expiration Date	Jun. 21, 2018
Warrant 3
Class of Warrant or Right [Line Items]
Number of Shares To be Purchased	110,000
Warrant Exercise Price per Share | $ / shares	$ 3.125
Warrant Expiration Date	Sep. 30, 2018
Warrant 4
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 5
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 6
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 ($)	Jun. 07, 2016	Nov. 04, 2015	Jan. 14, 2015	Oct. 09, 2014	Feb. 28, 2017	Feb. 24, 2017	Jun. 30, 2016	Apr. 30, 2015	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Jan. 30, 2017	Jul. 29, 2015	Mar. 11, 2014	Dec. 31, 2013
Stockholders Equity [Line Items]
Conversion of Stock, Shares Converted				92,712.27
Share Price									$ 5.85	$ 5.45	$ 5.85	$ 10.22			$ 6
Stock Issued During Period Shares New Issues									28,880
Stock Issued During Period Value New Issues									$ 225,000		$ 9,524,083	$ 300,000
Class of Warrant or Right, Number of Securities Called by Warrants or Rights									736,000	736,000	736,000	816,000			816,000
Aggregate registered amount for offerings														$ 100,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price									$ 7.8125	$ 7.8125	$ 7.8125	$ 7.8125
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term										2 years 2 months 8 days	3 years 2 months 8 days	4 years 2 months 8 days
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number									2,477,279	2,762,177	2,477,279	2,302,187				1,916,951
Allocated Share-based Compensation Expense										$ 2,632,000	$ 382,000	$ 696,000
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate										70.40%	66.50%	28.30%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate										0.00%	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										1.85%
Share-based Compensation Arrangement by Share-based Payment Award, Options, Non-vested in Period, Fair Value	$ 2,437,000							$ 1,388,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options										$ 309,000
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period	900,100							566,000
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures, Total										$ 125,059
Sale of Stock, Price Per Share									$ 8.02		$ 8.02
Share Based Compensation, Option Vested And Expected To Vest	72,400
Employee Stock Option [Member]
Stockholders Equity [Line Items]
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number										401,000
Restricted Stock Units (RSUs) [Member]
Stockholders Equity [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number							1,539,000		0	53,335	0
Stock Issued During Period, Shares, Restricted Stock Award, Gross	80,000
Stock Issued During Period, Value, Restricted Stock Award, Gross	$ 375,200
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							414,000	960,000
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures, Total							$ 1,941,660	$ 7,747,200
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited								75,000
Research and Development Expense [Member]
Stockholders Equity [Line Items]
Allocated Share-based Compensation Expense										$ 711,000	$ 126,000	$ 144,000
General and Administrative Expense [Member]
Stockholders Equity [Line Items]
Allocated Share-based Compensation Expense										$ 1,921,000	$ 256,000	$ 552,000
2014 Stock Option Plan [Member]
Stockholders Equity [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance										2,400,000
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number										158,000
2006 Stock Option Plan [Member]
Stockholders Equity [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance										2,400,000
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number										129,000
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
January 14, 2015 Public Offering [Member] | Warrant [Member]
Stockholders Equity [Line Items]
Underwriters Discounts and Commissions as Percentage of Gross Proceeds of Shares Sold			6.00%
Exercise price as percentage of public offering price			120.00%
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
Maximum [Member]
Stockholders Equity [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate										68.70%
Stock or Unit Option Plan Expense										$ 1,940,000
Minimum [Member]
Stockholders Equity [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate										66.80%
Stock or Unit Option Plan Expense										$ 241,000
Minimum [Member] | Restricted Stock Units (RSUs) [Member]
Stockholders Equity [Line Items]
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures, Total										$ 198,000
Series A Preferred Stock [Member]
Stockholders Equity [Line Items]
Preferred Stock, Shares Authorized												5,000,000
Percent of Preferred Stock Holder who Elect to Convert into Common Stock				80.00%
Effectiveness Of Preferred Stock Series Amendment Preferred Stock Holder Percentage Who Are Elect To Convert In To Common Stock				88.00%
Conversion of Stock, Shares Converted				1,894,969								103,332
Conversion of Stock, Shares Issued				103,332
Preferred Stock Dividends, Shares												135,303
Preferred Stock, Par or Stated Value Per Share												$ 1
Dividends, Preferred Stock, Stock												$ 238,313
Stock Issued During Period Shares New Issues											0	0
Stock Issued During Period Value New Issues											$ 0	$ 0
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures, Total										0
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures, Total										$ 0
Series A Preferred Stock [Member] | Maximum [Member]
Stockholders Equity [Line Items]
Conversion of Stock, Conversion Price Per Share				$ 31.25
Series A Preferred Stock [Member] | Minimum [Member]
Stockholders Equity [Line Items]
Conversion of Stock, Conversion Price Per Share				19.25
Series B Preferred Stock [Member]
Stockholders Equity [Line Items]
Conversion of Stock, Conversion Price Per Share				$ 0.90
Effectiveness Of Preferred Stock Series Amendment Preferred Stock Holder Percentage Who Are Elect To Convert In To Common Stock				93.00%
Conversion of Stock, Shares Converted				84,283.99								93,836.50
Conversion of Stock, Shares Issued				10,244,450
Share Price				$ 100								$ 100
Preferred Stock, Dividend Rate, Percentage				10.00%
Preferred Stock Dividends, Shares												14,499.96
Dividends, Preferred Stock, Stock												$ 9,028,360
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										$ 6.47
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
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
Subsequent Event [Member]
Stockholders Equity [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Non-vested in Period, Fair Value						$ 3,165,000
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period						953,200
Share Based Compensation, Option Vested And Expected To Vest													716,480
Subsequent Event [Member] | Restricted Stock Units (RSUs) [Member]
Stockholders Equity [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number					1,675,500
Stock Issued During Period, Shares, Restricted Stock Award, Gross						125,000
Stock Issued During Period, Value, Restricted Stock Award, Gross						$ 700,000
Subsequent Event [Member] | Director [Member]
Stockholders Equity [Line Items]
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures, Total					$ 758,000
Subsequent Event [Member] | Employee [Member]
Stockholders Equity [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures, Total					136,500

NET LOSS PER SHARE (Details Tex

NET LOSS PER SHARE (Details Textual) - shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Stock Options and Warrants [Member]
Earnings Per Share Basic [Line Items]
Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount	5,433,073	3,592,000

RETIREMENT PLAN (Details Textua

RETIREMENT PLAN (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Defined Contribution Plan Disclosure [Line Items]
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent			100.00%
Defined Contribution Plan, Employer Matching Contribution, Percent of Match	20.00%
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay	5.00%
Defined Contribution Plan, Cost Recognized	$ 35,900	$ 26,400	$ 10,500

SUBSEQUENT EVENT (Details Textu

SUBSEQUENT EVENT (Details Textual) - USD ($)	Jun. 07, 2016	Feb. 24, 2017	Jan. 31, 2017	Dec. 31, 2016
Subsequent Event [Line Items]
Proceeds From Sale Of Net Operating Loss Carryforwards				$ 318,550
Restricted Stock Units (RSUs) [Member]
Subsequent Event [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Gross	80,000
Stock Issued During Period, Value, Restricted Stock Award, Gross	$ 375,200
Subsequent Event [Member]
Subsequent Event [Line Items]
Proceeds From Sale Of Net Operating Loss Carryforwards			$ 999,996
Subsequent Event [Member] | Restricted Stock Units (RSUs) [Member]
Subsequent Event [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Gross		125,000
Stock Issued During Period, Value, Restricted Stock Award, Gross		$ 700,000

QUARTERLY FINANCIAL RESULTS (63

QUARTERLY FINANCIAL RESULTS (UNAUDITED) (Details) - USD ($)	3 Months Ended												12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Condensed Income Statements, Captions [Line Items]
Total revenue	$ 3,083,615	$ 2,411,708	$ 2,222,338	$ 1,810,182	$ 1,760,978	$ 1,343,625	$ 963,939	$ 723,074	$ 873,660	$ 1,162,347	$ 1,024,655	$ 1,062,172	$ 9,527,843	$ 4,791,616	$ 4,122,825
Gross margin	1,786,536	1,447,827	1,349,072	990,683	957,174	704,795	498,508	418,593	544,342	686,457	358,504	399,635	5,574,118	2,579,070	1,988,937
Loss from operations	(4,570,448)	(2,144,212)	(2,687,371)	(2,090,094)	(2,214,275)	(2,150,296)	(2,227,459)	(2,711,629)	(2,891,700)	(1,483,553)	(1,363,389)	(1,154,194)	(11,492,125)	(9,303,659)	(6,892,836)
Net Income ( loss) available to common stockholders	$ (4,414,615)	$ (2,682,715)	$ (3,005,243)	$ (1,836,302)	$ (2,001,674)	$ (2,847,441)	$ 1,434,318	$ (4,716,942)	$ (10,491,491)	$ (2,779,408)	$ (3,227,847)	$ (2,089,599)	$ (11,938,875)	$ (8,131,738)	$ (18,588,345)
Net loss per share, basic					$ (0.08)	$ (0.11)	$ 0.06	$ (0.19)
Net loss per share, diluted					$ (0.08)	$ (0.11)	$ 0.05	$ (0.19)
Net loss per share, basic and diluted	$ (0.16)	$ (0.11)	$ (0.12)	$ (0.08)					$ (0.84)	$ (0.22)	$ (0.27)	$ (0.20)	$ (0.47)	$ (0.33)	$ (1.29)