22nd Century (XXII) 10-Q 10 May 16 2016 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 09, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Entity Registrant Name	22nd Century Group, Inc.
Entity Central Index Key	1,347,858
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Trading Symbol	XXII
Entity Common Stock, Shares Outstanding		76,015,273

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash	$ 6,051,593	$ 3,760,297
Accounts receivable, net	102,913	51,230
Inventory, net	2,920,883	2,706,330
Prepaid expenses and other assets	529,296	635,998
Total current assets	9,604,685	7,153,855
Machinery and equipment, net	2,476,716	2,555,793
Other assets:
Intangible assets, net	7,383,107	7,364,120
Equity investment	1,135,419	1,222,651
Total other assets	8,518,526	8,586,771
Total assets	20,599,927	18,296,419
Current liabilities:
Current portion of note payable	314,710	308,582
Accounts payable	1,729,129	1,283,346
Accrued expenses	1,222,697	1,349,438
Accrued severance	218,834	220,661
Total current liabilities	3,485,370	3,162,027
Long-term portion of note payable	307,938	307,938
Long-term portion of accrued severance	145,153	199,658
Warrant liability	17,231	2,898,296
Total liabilities	3,955,692	6,567,919
Commitments and contingencies (Note 11)	0	0
Shareholders' equity
Common shares value	760	710
Capital in excess of par value	86,452,952	78,284,815
Accumulated deficit	(69,809,477)	(66,557,025)
Total shareholders' equity	16,644,235	11,728,500
Total liabilities and shareholders' equity	$ 20,599,927	$ 18,296,419

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, par value	$ 0.00001	$ 0.00001
Common stock, shares authorized	300,000,000	300,000,000
Common stock, par value	$ 0.00001	$ 0.00001
Common stock, shares issued	76,015,273	71,006,844
Common stock, shares outstanding	76,015,273	71,006,844

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenue:
Sale of products	$ 3,019,056	$ 616,138
Cost of goods sold (exclusive of depreciation shown separately below):
Products	2,895,410	632,580
Gross profit (loss)	123,646	(16,442)
Operating expenses:
Research and development (including equity based compensation of $45,056 and $45,563, respectively)	597,391	158,469
General and administrative (including equity based compensation of $226,175 and $2,390,821, respectively)	1,846,607	3,651,721
Sales and marketing (including equity based compensation of $11,636 and $4,821, respectively)	702,614	115,229
Depreciation	80,597	78,810
Amortization	124,841	106,587
Total operating expenses	3,352,050	4,110,816
Operating loss	(3,228,404)	(4,127,258)
Other income (expense):
Warrant liability gain - net	71,065	59,213
Loss on equity investment	(87,232)	(50,981)
Interest income	2,493	7,795
Interest expense	(10,374)	(5,508)
Total other income (expense)	(24,048)	10,519
Loss before income taxes	(3,252,452)	(4,116,739)
Income taxes	0	0
Net loss	$ (3,252,452)	$ (4,116,739)
Loss per common share - basic and diluted (in dollars per share)	$ (0.04)	$ (0.06)
Common shares used in basic earnings per share calculation (in shares)	74,031,148	64,187,656

CONSOLIDATED STATEMENTS OF OPE5

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Research and Development Expense [Member]
Allocated Share-based Compensation Expense	$ 45,056	$ 45,563
General and Administrative Expense [Member]
Allocated Share-based Compensation Expense	226,175	2,390,821
Selling and Marketing Expense [Member]
Allocated Share-based Compensation Expense	$ 11,636	$ 4,821

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - 3 months ended Mar. 31, 2016 - USD ($)	Total	Common Stock [Member]	Contributed Capital [Member]	Accumulated Deficit [Member]
Beginning balance at Dec. 31, 2015	$ 11,728,500	$ 710	$ 78,284,815	$ (66,557,025)
Beginning balance, shares at Dec. 31, 2015		71,006,844
Common stock issued in February 2016 registered direct offering	5,091,791	$ 50	5,091,741	0
Common stock issued in February 2016 registered direct offering (in shares)		5,000,000
Reclassification of warrant liability to capital in excess of par (see Note 4)	2,810,000	$ 0	2,810,000	0
Stock based compensation	266,200	$ 0	266,200	0
Stock based compensation (in shares)		5,811
Stock issued in connection with warrant exercise	196	$ 0	196	0
Stock issued in connection with warrant exercise (in shares)		2,618
Net loss	(3,252,452)	$ 0	0	(3,252,452)
Ending balance at Mar. 31, 2016	$ 16,644,235	$ 760	$ 86,452,952	$ (69,809,477)
Ending balance, shares at Mar. 31, 2016		76,015,273

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net loss	$ (3,252,452)	$ (4,116,739)
Adjustments to reconcile net loss to cash used in operating activities:
Amortization and depreciation	180,932	160,891
Amortization of license fees	24,506	24,506
Loss on equity investment	87,232	50,981
Accretion of interest on note payable and accrued severance	10,374	0
Warrant liability gain	(71,065)	(59,213)
Equity based employee compensation expense	259,994	354,087
Equity based payments for outside services	22,873	2,087,118
Increase in inventory reserve	0	60,000
(Increase) decrease in assets:
Accounts receivable	(51,684)	(209,028)
Inventory	(214,553)	(558,537)
Prepaid expenses and other assets	90,036	(151,711)
Increase (decrease) in liabilities:
Accounts payable	301,955	316,746
Accrued expenses	(126,741)	(448,865)
Accrued severance	(60,578)	(30,856)
Net cash used in operating activities	(2,799,171)	(2,520,620)
Cash flows from investing activities:
Acquisition machinery and equipment	(1,520)	(3,720)
Net cash used in investing activities	(1,520)	(3,720)
Cash flows from financing activities:
Net proceeds from exercise of warrants	196	0
Net proceeds from February 2016 registered direct offering	5,091,791	0
Stock cancellation	0	(34,500)
Net cash provided by (used in) financing activities	5,091,987	(34,500)
Net increase (decrease) in cash	2,291,296	(2,558,840)
Cash - beginning of period	3,760,297	6,402,687
Cash - end of period	6,051,593	3,843,847
Net cash paid for:
Cash paid during the period for interest	10,374	5,508
Cash paid during the period for income taxes	0	0
Non-cash transactions:
Patent and trademark additions included in accounts payable	143,828	194,329
Machinery and equipment additions included in accounts payable	0	18,076
Reclassification of warrant liability to capital in excess of par due to voiding of exchange rights clause in Crede Tranche 1A warrant	2,810,000	0
Issuance of common stock in satisfaction of accrued expense	0	325,000
Issuance of common stock for services recorded as prepaid expense	$ 0	$ 91,667

NATURE OF BUSINESS AND SUMMARY

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1. - NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation - Operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. The balance sheet at December 31, 2015 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. These interim consolidated financial statements should be read in conjunction with the December 31, 2015 audited consolidated financial statements and the notes thereto. Principles of Consolidation - Nature of Business - is a plant biotechnology company specializing in technology that allows for the level of nicotine and other nicotinic alkaloids (e.g., nornicotine, anatabine and anabasine) in tobacco plants to be decreased or increased through genetic engineering and plant breeding. The Company currently owns or exclusively controls more than 200 issued patents and more than 50 pending patent applications around the world. Goodrich Tobacco and Hercules Pharma are business units for the Company’s (i) premium cigarettes and potential modified risk tobacco products and (ii) smoking cessation product, respectively. The Company acquired the membership interests of NASCO on August 29, 2014. NASCO is a federally licensed tobacco products manufacturer, a participating member of the tobacco Master Settlement Agreement (“MSA”) between the tobacco industry and the Settling States under the MSA, and operates the Company’s cigarette manufacturing business in North Carolina. Botanical Genetics is a wholly-owned subsidiary of 22nd Century Group, and was incorporated to facilitate an equity investment more fully described in Note 7. Reclassifications - Preferred stock authorized - Accounts receivable Inventory - March 31, 2016 December 31, 2015 Inventory - tobacco leaf $ 1,830,675 $ 1,816,857 Inventory - finished goods Cigarettes and filtered cigars 371,414 342,707 Inventory - raw materials Cigarette and filtered cigar components 829,417 657,389 3,031,506 2,816,953 Less: inventory reserve 110,623 110,623 $ 2,920,883 $ 2,706,330 Fixed assets - Intangible Assets March 31, December 31, Intangible assets, net Patent and trademark costs $ 5,290,387 $ 5,146,559 Less: accumulated amortization 1,704,228 1,603,893 Patent and trademark costs, net 3,586,159 3,542,666 License fees, net (see Note 11) 1,450,000 1,450,000 Less: accumulated amortization 155,052 130,546 License fees, net 1,294,948 1,319,454 MSA signatory costs 2,202,000 2,202,000 License fee for predicate cigarette brand 300,000 300,000 $ 7,383,107 $ 7,364,120 Amortization expense relating to the above intangible assets for the three months ended March 31, 2016 and 2015 amounted to $124,841 and $106,587, respectively. The estimated annual average amortization expense for the next five years is approximately $358,000 for patent costs and $98,000 for license fees. Impairment of Long-Lived Assets - Income Taxes In light of the Company’s history of cumulative net operating losses and the uncertainty of their future utilization, the Company has established a valuation allowance to fully offset its net deferred tax assets as of March 31, 2016 and December 31, 2015. The Company’s federal and state tax returns for the years ended December 31, 2012 to December 31, 2014 are currently open to audit under the statutes of limitations. There were no pending audits as of March 31, 2016. Stock Based Compensation - Revenue Recognition SPECTRUM MAGIC The Company was chosen to be a subcontractor for a 5-year government contract between RTI International (“RTI”) and the National Institute on Drug Abuse (“NIDA”) to supply NIDA with research cigarettes. These government research cigarettes are distributed under the Company’s mark SPECTRUM SPECTRUM Derivatives Research and Development Advertising Loss Per Common Share - Commitment and Contingency Accounting Use of Estimates Fair Value of Financial Instruments - Equity Investments - Accounting Pronouncements - In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern,” which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity will be required to provide certain disclosures if conditions of events raise substantial doubt about the entity’s ability to continue as a going concern. The ASU applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. We are currently evaluating the impact of the adoption of ASU 2014-15 on our consolidated financial statements and have not yet determined when we will adopt the standard. In February 2016, the FASB issued ASU 2016-02, “Leases,” which supersedes existing lease guidance under GAAP. Under the new guidance, lessees will be required to recognize leases as right of use assets and liabilities for leases with lease terms of more than twelve months. The guidance will apply for both finance and operating leases. The effective date for the ASU is for annual periods beginning after December 15, 2018 and interim periods therein. The Company is currently evaluating the impact of the ASU on its consolidated financial statements.

FEBRUARY 2016 REGISTERED DIRECT

FEBRUARY 2016 REGISTERED DIRECT OFFERING	3 Months Ended
	Mar. 31, 2016
FEBRUARY 2016 [Member]
Subsidiary, Sale of Stock [Line Items]
FEBRUARY 2016 REGISTERED DIRECT OFFERING	NOTE 2. - FEBRUARY 2016 REGISTERED DIRECT OFFERING On February 5, 2016, the Company closed a registered direct offering of common stock and warrants consisting of 5,000,000 2,500,000 1.21 are exercisable for a period of sixty-six (66) months after issuance, 1,940,000 1.10 5,091,791

JUNE 2015 REGISTERED DIRECT OFF

JUNE 2015 REGISTERED DIRECT OFFERING	3 Months Ended
	Mar. 31, 2016
JUNE 2015 [Member]
Subsidiary, Sale of Stock [Line Items]
JUNE 2015 REGISTERED DIRECT OFFERING	NOTE 3. - JUNE 2015 REGISTERED DIRECT OFFERING On June 2, 2015, the Company closed a registered direct offering of common stock and warrants consisting of 6,000,000 3,000,000 1.25 are exercisable for a period of sixty-six (66) months after issuance, 2,067,000 1.00 5,576,083

JOINT VENTURE, CONSULTING AGREE

JOINT VENTURE, CONSULTING AGREEMENT AND ASSOCIATED WARRANTS	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
JOINT VENTURE, CONSULTING AGREEMENT AND ASSOCIATED WARRANTS	NOTE 4. - JOINT VENTURE, CONSULTING AGREEMENT AND ASSOCIATED WARRANTS On June 22, 2015, the Company terminated its joint venture arrangement with Crede CG III, Ltd. (“Crede”) and a third-party due to non-performance and other breaches of the arrangement by Crede and its principals. The Company also notified Crede that the Company reserved and did not waive, any rights that the Company may have to assert any and all claims that it may have against Crede, its employees, agents, representatives or affiliates thereof, which are allowable by law or in equity, including claims for breach of the warrant agreements entered into with Crede. The six-month Consulting Agreement (the “Consulting Agreement”), entered into with Crede on September 29, 2014, expired on March 29, 2015. The value of the warrants issued in conjunction with the Consulting Agreement in the aggregate amount of $ 4,070,000 1,978,785 Four tranches of warrants were issued to Crede in conjunction with the Consulting Agreement as follows: Tranche 1A warrant to purchase 1,250,000 shares of Company common stocks 1,000,000 shares of Company common stock 1,000,000 shares of Company common stock 1,000,000 shares of Company common stock 2,810,000 The Tranche 2 and Tranche 3 warrants were not exercisable unless and until certain revenue milestones were attained, as defined in the prior joint venture agreement between Crede and the Company. As stated above, the Company terminated the joint venture agreement on

MANUFACTURING FACILITY

MANUFACTURING FACILITY	3 Months Ended
	Mar. 31, 2016
Other Operating Income And Expense [Line Items]
MANUFACTURING FACILITY	NOTE 5. - MANUFACTURING FACILITY The Company’s manufacturing operations at its North Carolina factory were not at full production capacity during the first quarter of 2016, but the Company continued manufacturing a third-party MSA cigarette brand, filtered cigars on a contract basis, and the Company’s own proprietary cigarette brand, RED SUN 135,267 131,518

MACHINERY AND EQUIPMENT

MACHINERY AND EQUIPMENT	3 Months Ended
	Mar. 31, 2016
Property, Plant and Equipment [Abstract]
MACHINERY AND EQUIPMENT	NOTE 6. - MACHINERY AND EQUIPMENT March 31, December 31, 2016 2015 Cigarette manufacturing equipment $ 3,016,246 $ 3,016,246 Office furniture, fixtures and equipment 96,881 95,361 3,113,127 3,111,607 Less: accumulated depreciation 636,411 555,814 Machinery and equipment, net $ 2,476,716 $ 2,555,793 Depreciation expense was $ 80,597 78,810

EQUITY INVESTMENT

EQUITY INVESTMENT	3 Months Ended
	Mar. 31, 2016
Equity Method Investments and Joint Ventures [Abstract]
EQUITY INVESTMENT	NOTE 7. - EQUITY INVESTMENT On April 11, 2014, the Company, through its wholly-owned subsidiary, Botanical Genetics, entered into an investment agreement (the “Agreement”) with Anandia Laboratories, Inc., a Canadian plant biotechnology company (“Anandia”). The Agreement provided for the Company to make an initial investment of $ 250,000 10 250,000 450,000 15 150,000 394,500 377,906 325,000 The Company uses the equity method of accounting to record its 25 1,135,419 1,222,651 1,199,000 14,412 72,820 36,569 25 87,232 50,981

NOTES PAYABLE AND PATENT ACQUIS

NOTES PAYABLE AND PATENT ACQUISITION	3 Months Ended
	Mar. 31, 2016
Notes Payable And Patent Acquisition [Abstract]
NOTE PAYABLE AND PATENT ACQUISITION	NOTE 8. - NOTES PAYABLE AND PATENT ACQUISITION On December 22, 2014, the Company entered into a Purchase Agreement (the “Agreement”) with the National Research Council of Canada (“NRC”) to acquire certain patent rights that the Company had previously licensed from NRC under a license agreement between the parties. The Purchase Agreement provided for payment by the Company to NRC for the NRC patent rights a total amount of $ 1,213,000 213,000 1,000,000 333,333 925,730 333,333 622,648 314,710 307,938 616,520 308,582 307,938 1,138,730

SEVERANCE LIABILITY

SEVERANCE LIABILITY	3 Months Ended
	Mar. 31, 2016
Severance Liability [Abstract]
SEVERANCE LIABILITY	NOTE 9. - SEVERANCE LIABILITY The Company recorded an accrual for severance during the fourth quarter of 2014 in the initial amount of $ 624,320 18,750 36 212,012 412,308 218,834 145,153 220,661 199,658 er 31, 2015).

WARRANTS FOR COMMON STOCK

WARRANTS FOR COMMON STOCK	3 Months Ended
	Mar. 31, 2016
Class of Stock [Line Items]
WARRANTS FOR COMMON STOCK	NOTE 10. - WARRANTS FOR COMMON STOCK At March 31, 2016, the Company had outstanding warrants to purchase 10,326,621 92,632 10,326,621 On January 25, 2016 warrants to purchase 67,042 2,618 On January 25, 2016, warrants to purchase 6,831,115 Pursuant to the registered direct offering that closed on February 5, 2016, and discussed in Note 2, the Company issued warrants to purchase 2,500,000 1.21 1,940,000 Pursuant to the registered direct offering that closed on June 2, 2015, and discussed in Note 3, the Company issued warrants to purchase 3,000,000 1.25 2,067,000 Number of Exercise Warrant Description Warrants Price Expiration December 2011 convertible NP warrants 172,730 $ 1.1984 February 8, 2017 December 2011 convertible NP warrants 802,215 $ 1.3816 February 6, 2018 May 2012 PPO warrants 401,700 $ 0.6000 May 15, 2017 November 2012 PPO warrants 925,100 $ 0.6000 November 9, 2017 August 2012 convertible NP warrants (1) 92,632 $ 0.9520 August 8, 2018 August 2012 convertible NP warrants 92,244 $ 0.9060 August 8, 2018 Crede Tranche 1A warrants 1,250,000 $ 3.3600 September 29, 2016 Crede Tranche 1B warrants 1,000,000 $ 2.5951 September 29, 2016 June 2015 registered direct offering warrants 3,000,000 $ 1.2500 December 2, 2020 February 2016 registered direct offering warrants 2,500,000 $ 1.2100 August 5, 2021 Total warrants outstanding (2),(3), (4) 10,236,621 (1) Includes anti-dilution features. (2) Includes warrants to purchase 533,000 5.2 (3) Includes warrants to purchase 312,730 3.1 (4) Excludes the Crede Tranche 2 and Tranche 3 warrants to purchase 2,000,000 The Company estimates the value of warrant liability upon issuance of the warrants and at each balance sheet date using the binomial lattice model to allocate total enterprise value to the warrants and other securities in the Company’s capital structure. Volatility was estimated based on historical observed equity volatilities and implied (forward) or expected volatilities for a sample group of guideline companies and consideration of recent market trends. As a result of the previously exercisable exchange rights contained in the Tranche 1A warrants, the financial instrument was previously considered a liability in accordance with FASB Accounting Standards Codification Topic 480 - “Distinguishing Liabilities from Equity” (“ASC 480”). More specifically, ASC 480 requires a financial instrument to be classified as a liability if such financial instrument contains a conditional obligation that the issuer must or may settle by issuing a variable number of its equity securities if, at inception, the monetary value of the obligation is based on a known fixed monetary amount. As a result of the actions by Crede that caused the exchange rights feature to be voided, the Company reclassified the Tranche 1A warrant liability to Capital in excess of par. Fair value at December 31, 2013 $ 3,779,522 Reclassification of warrant liability to equity resulting from Warrant Amendments - Q1 2014 (7,367,915) Cost of inducement from Warrant Amendments - Q1 2014 144,548 Fair value of warrant liability resulting from issuance of Crede Tranche 1A Warrants - Q3 2014 2,810,000 Loss as a result of change in fair value 3,676,691 Fair value at December 31, 2014 $ 3,042,846 Gain as a result of change in fair value (144,550) Fair value at December 31, 2015 $ 2,898,296 Reclassification of warrant liability to capital in excess of par (2,810,000) Gain as a result of change in fair value (71,065) Fair value at March 31, 2016 $ 17,231 The aggregate net gain as a result of the Company’s warrant liability for the three months ended March 31, 2016 and 2015 amounted to $ 71,065 59,213 FASB ASC 820 - “Fair Value Measurements and Disclosures” establishes a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows: ⋅ Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; ⋅ Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; and ⋅ Level 3 inputs are unobservable inputs based on the Company’s own assumptions used to measure assets and liabilities at fair value. A financial asset’s or a financial liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The warrant liability is measured at fair value using certain estimated factors such as volatility and probability which are classified within Level 3 of the valuation hierarchy. Significant unobservable inputs that are used in the fair value measurement of the Company’s derivative warrant liabilities include volatility. Significant increases (decreases) in the volatility input would result in a significantly higher (lower) fair value measurement. Number of Warrants outstanding at December 31, 2013 10,653,469 Warrants issued in conjunction with consulting agreement 4,250,000 Warrants exercised during 2014 (1,247,443) Additional warrants due to anti-dilution provisions 18,383 Warrants outstanding at December 31, 2014 13,674,409 Warrants issued in conjunction with registered direct offering 3,000,000 Warrants exercised during 2015 (40,000) Additional warrants due to anti-dilution provisions 369 Warrants outstanding at December 31, 2015 16,634,778 Warrants issued in conjunction with registered direct offering 2,500,000 Unexercisable warrants (1) (2,000,000) Warrants exercised during January 2016 (67,042) Warrants expired during January 2016 (6,831,115) Warrants outstanding at March 31, 2016 10,236,621 Composition of outstanding warrants: Warrants containing anti-dilution feature 92,632 Warrants without anti-dilution feature 10,143,989 10,236,621 (1) Crede Tranche 2 Warrants and Tranche 3 Warrants are not exercisable (see Note 4 for additional discussion).

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 11. - COMMITMENTS AND CONTINGENCIES License Agreements - On December 8, 2015, the Company entered into an additional license agreement (the “License”) with NCSU. Under the terms of the License, the Company paid NCSU a non-refundable, non-creditable lump sum license fee of $150,000. Additionally, the License calls for the Company to pay NCSU a non-refundable, non-creditable minimum annual royalties beginning on December 31, 2018 in the amount of $10,000. The minimum annual royalty payment increases to $15,000 in 2019, $25,000 in 2020 and 2021, and $50,000 per year thereafter for the remaining term of the License. The Company is also responsible for reimbursing NCSU for actual third-party patent costs incurred. During the three months ended March 31, 2016 and 2015, the aggregate costs incurred related to capitalized patent costs and patent maintenance expense amounted to $6,075 and $0, respectively. This License continues through the life of the last-to-expire patent, expected to be in 2036. On February 10, 2014, the Company entered into a sponsored research and development agreement (the “Agreement”) with NCSU. Under the terms of the Agreement, the Company paid NCSU $162,408 over the two-year term of the Agreement, which grants certain licensed rights to the Company. The Company has extended the Agreement through January 31, 2017 at an additional cost of $85,681. All payments made under the above referenced license agreements and the sponsored research and development agreement are initially recorded as a Prepaid expense on the Company’s Consolidated Balance Sheets and subsequently expensed on a straight-line basis over the applicable period and included in Research and development costs on the Company’s Consolidated Statements of Operations. The amounts expensed during the three months ended March 31, 2016 and 2015 were $114,797 and $39,051, respectively. On August 22, 2014, the Company entered into a Commercial License Agreement with Precision PlantSciences, Inc. (the “Precision License”). The Precision License grants the Company a non-exclusive, but fully paid up right and license to use technology and materials owned by Precision PlantSciences for a license fee of $1,250,000. An initial cash payment of $725,000 was made upon execution of the Precision License with an unconditional obligation to pay the remaining $525,000 in $25,000 increments as materials are provided to the Company. The remaining $525,000 was paid during December 2014. The Precision License continues through the life of the last-to-expire patent, which is expected to be in 2028. On August 27, 2014, the Company entered into an additional exclusive License Agreement (the “License Agreement”) with NCSU. Under the License Agreement, the Company paid NCSU a non-refundable, non-creditable lump sum license fee of $125,000. Additionally, the License Agreement calls for the Company to pay NCSU three non-refundable, non-creditable license maintenance fees in the amount of $15,000 per annum in each of December 2015, 2016 and 2017. Beginning in calendar year 2018, the Company is obligated to pay to NCSU an annual minimum royalty fee of $20,000 in 2018, $30,000 in 2019, and $50,000 per year thereafter for the remaining term of the License Agreement. The Company is also responsible for reimbursing NCSU for actual third-party patent costs incurred. During the three months ended March 31, 2016 and 2015, the aggregated costs incurred related to capitalized patent costs and patent maintenance expense amounted to $27,956 and $3,682, respectively. The License Agreement continues through the life of the last-to-expire patent, which is expected to be in 2034. On September 15, 2014, the Company entered into a Sublicense Agreement with Anandia Laboratories, Inc. (the “Anandia Sublicense”). Under the terms of the Anandia Sublicense, the Company was granted an exclusive sublicense in the United States and a co-exclusive sublicense in the remainder of the world, excluding Canada, to the licensed Intellectual Property (more fully discussed in Note 7). The Anandia Sublicense calls for an up-front fee of $75,000, an annual license fee of $10,000, the payment of patent filing and maintenance costs, and a running royalties on future net sales. The Anandia Sublicense continues through the life of the last-to-expire patent, which is expected to be in 2035. The Precision License, the License Agreement with NCSU and the Anandia Sublicense are included in Intangible assets, net in the Company’s Consolidated Balance Sheets and the applicable license fees will be amortized over the term of the agreements based on their last-to-expire patent date. Amortization amounted to $24,506 in each of the three months ended March 31, 2016 and 201 5, and was included in Amortization expense on the Company’s Consolidated Statements of Operations. On September 28, 2015, the Company’s wholly-owned subsidiary, Botanical Genetics, entered into a Sponsored Research Agreement (the “Agreement”) with Anandia Laboratories Inc. (“Anandia”). Pursuant to the Agreement, Anandia will conduct research on behalf of the Company relating to the cannabis plant. The Agreement has an initial term of twelve (12) months from the date of the Agreement and can be extended at the sole option of the Company for two (2) additional periods of twelve (12) months each. The Company will pay Anandia $379,800 over the initial term of the Agreement, of which $116,400 was paid in October 2015, and additional amounts of $95,000, $84,200 and $84,200 are due on January 1, 2016, April 1, 2016 and July 1, 2016, respectively. The $95,000 incurred during the first quarter of 2016 is included in Research and development costs on the Company’s Consolidated Statements of Operations. Under the terms of the Agreement, the Company will have co-exclusive worldwide rights with Anandia to all the intellectual property resulting from the sponsored research between the Company and Anandia. The party that commercializes such intellectual property in the future will pay royalties in varying amounts to the other party, with the amount of such royalties being dependent upon the type of products that are commercialized in the future. If either party sublicenses such intellectual property to a third-party, then the Company and Anandia will share equally in such sublicensing consideration. Lease Agreements Year ended December 31, 2016 - $ 110,000 Year ended December 31, 2017 - $ 156,000 Year ended December 31, 2018 - $ 169,000 Year ended December 31, 2019 - $ 169,000 Year ended December 31, 2020 - $ 169,000 Year ended December 31, 2021 - $ 141,000 The Company has a lease for its office space in Clarence, New York that expires on August 31, 2016, with the Company having the option to extend this lease for an additional one-year renewal period expiring on August 31, 2017. Future minimum lease payments for the years ended December 31, 2016 and 2017 are approximately $34,000 and $31,000, respectively, if the Company exercises the optional renewal period. On November 1, 2015, the Company entered into a one-year lease for 25,000 square feet of warehouse space in North Carolina to store the Company’s proprietary tobacco leaf. The lease calls for a monthly lease payment of $3,750 and contains a three-year renewal option after the initial one-year term. Future minimum lease payments for the years ended December 31, 2016, 2017, 2018 and 2019 are $33,750, $45,000, $45,000 and $37,500, respectively, if the Company exercises the optional renewal period. Litigation

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE	3 Months Ended
	Mar. 31, 2016
Earnings Per Common Share [Abstract]
EARNINGS PER COMMON SHARE	NOTE 12. - EARNINGS PER COMMON SHARE March 31, March 31, 2016 2015 Net loss attributed to common shareholders $ (3,252,452) $ (4,116,739) Denominator for basic earnings per share-weighted average shares outstanding 74,031,148 64,187,656 Effect of dilutive securities: Warrants, restricted stock and options outstanding - - Denominator for diluted earnings per common share-weighted average shares adjusted for dilutive securities 74,031,148 64,187,656 Loss per common share - basic and diluted $ (0.04) $ (0.06) March 31, March 31, 2016 2015 Warrants 10,236,621 13,674,409 Restricted stock - 250,000 Options 4,795,679 2,599,999 15,032,300 16,524,408

EQUITY BASED COMPENSATION

EQUITY BASED COMPENSATION	3 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK BASED COMPENSATION	NOTE 13. - EQUITY BASED COMPENSATION On October 21, 2010, the Company established the 2010 Equity Incentive Plan (“EIP”) for officers, employees, directors, consultants and advisors to the Company and its affiliates, which consisted of 4,250,000 850,000 On April 12, 2014, the stockholders of the Company approved the 22nd Century Group, Inc. 2014 Omnibus Incentive Plan (the “OIP”). The OIP allows for the granting of equity and cash incentive awards to eligible individuals over the life of the OIP, including the issuance of up to 5,000,000 During the three months ended March 31, 2016, the Company issued stock option awards from the OIP for 1,634,037 20,000 1,559,999 For the three months ended March 31, 2016 and 2015, the Company recorded compensation expense related to restricted stock and stock option awards granted under the EIP and OIP of $ 259,994 354,087 5,811 189,196 100,000 23,873 108,333 As of March 31, 2016, unrecognized compensation expense related to non-vested restricted shares and stock options amounted to approximately $ 1,429,000 571,000 344,000 253,000 42,000 Approximately 218,000 2016 2015 Risk-free interest rate (weighted average) 1.37 % 1.52 % Expected dividend yield 0 % 0 % Expected stock price volatility 90 % 90 % Expected life of options (weighted average) 4.98 years 5.17 years The Company estimated the expected volatility based on data used by a peer group of public companies. The expected term was estimated using the contract life of the option. The risk-free interest rate assumption was determined using yield of the equivalent U.S. Treasury bonds over the expected term. The Company has never paid any cash dividends and does not anticipate paying any cash dividends in the foreseeable future. Therefore, the Company assumed an expected dividend yield of zero. Number of Weighted Weighted Aggregate Outstanding at December 31, 2013 660,000 $ 0.74 Granted in 2014 300,000 $ 2.61 Exercised in 2014 (70,000) $ 0.69 Outstanding at December 31, 2014 890,000 $ 1.38 Reinstated in 2015 50,000 $ 0.69 Granted in 2015 2,221,642 $ 1.00 Outstanding at December 31, 2015 3,161,642 $ 1.10 Granted in 2016 1,634,037 $ 0.95 Outstanding at March 31, 2016 4,795,679 $ 1.05 7.9 years $ 67,100 Exercisable at March 31, 2016 2,349,999 $ 1.09 7.3 years $ 43,100 There were stock options granted during the three months ended March 31, 2016 and 2015, to purchase a total of 1,634,037 1,659,999 0.65 0.59 909,319

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 14. - SUBSEQUENT EVENTS On April 26, 2016, Crede CG III, LTD. (“Crede”) filed a complaint against us in the United States District Court for the Southern District of New York entitled Crede CG III, LTD. v 22nd Century Group, Inc.,

NATURE OF BUSINESS AND SUMMAR22

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation - Operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. The balance sheet at December 31, 2015 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. These interim consolidated financial statements should be read in conjunction with the December 31, 2015 audited consolidated financial statements and the notes thereto.
Principles of Consolidation	Principles of Consolidation -
Nature of Business	Nature of Business -
Reclassifications	Reclassifications -
Preferred stock authorized	Preferred stock authorized -
Accounts receivable	Accounts receivable 10,000
Inventory	Inventory - March 31, 2016 December 31, 2015 Inventory - tobacco leaf $ 1,830,675 $ 1,816,857 Inventory - finished goods Cigarettes and filtered cigars 371,414 342,707 Inventory - raw materials Cigarette and filtered cigar components 829,417 657,389 3,031,506 2,816,953 Less: inventory reserve 110,623 110,623 $ 2,920,883 $ 2,706,330
Fixed assets	Fixed assets - 3 10
Intangible Assets	Intangible Assets March 31, December 31, Intangible assets, net Patent and trademark costs $ 5,290,387 $ 5,146,559 Less: accumulated amortization 1,704,228 1,603,893 Patent and trademark costs, net 3,586,159 3,542,666 License fees, net (see Note 11) 1,450,000 1,450,000 Less: accumulated amortization 155,052 130,546 License fees, net 1,294,948 1,319,454 MSA signatory costs 2,202,000 2,202,000 License fee for predicate cigarette brand 300,000 300,000 $ 7,383,107 $ 7,364,120 Amortization expense relating to the above intangible assets for the three months ended March 31, 2016 and 2015 amounted to $ 124,841 106,587 The estimated annual average amortization expense for the next five years is approximately $ 358,000 98,000
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets -
Income Taxes	Income Taxes In light of the Company’s history of cumulative net operating losses and the uncertainty of their future utilization, the Company has established a valuation allowance to fully offset its net deferred tax assets as of March 31, 2016 and December 31, 2015. The Company’s federal and state tax returns for the years ended December 31, 2012 to December 31, 2014 are currently open to audit under the statutes of limitations. There were no pending audits as of March 31, 2016.
Stock Based Compensation	Stock Based Compensation -
Revenue Recognition	Revenue Recognition 1,735,000 325,000 SPECTRUM MAGIC The Company was chosen to be a subcontractor for a 5-year government contract between RTI International (“RTI”) and the National Institute on Drug Abuse (“NIDA”) to supply NIDA with research cigarettes. These government research cigarettes are distributed under the Company’s mark SPECTRUM 5.0 SPECTRUM 40 242,658 329,321
Derivatives	Derivatives
Research and Development	Research and Development
Advertising	Advertising 208,000 51,000
Loss Per Common Share	Loss Per Common Share -
Commitment and Contingency Accounting	Commitment and Contingency Accounting
Use of Estimates	Use of Estimates
Fair value of financial instruments	Fair Value of Financial Instruments -
Equity Investments	Equity Investments -
Accounting Pronouncements	Financial Accounting Standards Board (“ In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern,” which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity will be required to provide certain disclosures if conditions of events raise substantial doubt about the entity’s ability to continue as a going concern. The ASU applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. We are currently evaluating the impact of the adoption of ASU 2014-15 on our consolidated financial statements and have not yet determined when we will adopt the standard. In February 2016, the FASB issued ASU 2016-02, “Leases,” which supersedes existing lease guidance under GAAP. Under the new guidance, lessees will be required to recognize leases as right of use assets and liabilities for leases with lease terms of more than twelve months. The guidance will apply for both finance and operating leases. The effective date for the ASU is for annual periods beginning after December 15, 2018 and interim periods therein. The Company is currently evaluating the impact of the ASU on its consolidated financial statements.

NATURE OF BUSINESS AND SUMMAR23

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Inventory, Current	Inventories at March 31, 2016 and December 31, 2015 consisted of the following: March 31, 2016 December 31, 2015 Inventory - tobacco leaf $ 1,830,675 $ 1,816,857 Inventory - finished goods Cigarettes and filtered cigars 371,414 342,707 Inventory - raw materials Cigarette and filtered cigar components 829,417 657,389 3,031,506 2,816,953 Less: inventory reserve 110,623 110,623 $ 2,920,883 $ 2,706,330
Schedule of Intangible Assets and Goodwill	Total intangible assets at March 31, 2016 and December 31, 2015 consisted of the following: March 31, December 31, Intangible assets, net Patent and trademark costs $ 5,290,387 $ 5,146,559 Less: accumulated amortization 1,704,228 1,603,893 Patent and trademark costs, net 3,586,159 3,542,666 License fees, net (see Note 11) 1,450,000 1,450,000 Less: accumulated amortization 155,052 130,546 License fees, net 1,294,948 1,319,454 MSA signatory costs 2,202,000 2,202,000 License fee for predicate cigarette brand 300,000 300,000 $ 7,383,107 $ 7,364,120

MACHINERY AND EQUIPMENT (Tables

MACHINERY AND EQUIPMENT (Tables)	3 Months Ended
	Mar. 31, 2016
Property, Plant and Equipment [Abstract]
MACHINERY AND EQUIPMENT	Machinery and equipment at March 31, 2016 and December 31, 2015 consisted of the following: March 31, December 31, 2016 2015 Cigarette manufacturing equipment $ 3,016,246 $ 3,016,246 Office furniture, fixtures and equipment 96,881 95,361 3,113,127 3,111,607 Less: accumulated depreciation 636,411 555,814 Machinery and equipment, net $ 2,476,716 $ 2,555,793

WARRANTS FOR COMMON STOCK (Tabl

WARRANTS FOR COMMON STOCK (Tables)	3 Months Ended
	Mar. 31, 2016
Warrants For Common Stock [Abstract]
Schedule Of Warrants Outstanding	Outstanding warrants at March 31, 2016 consisted of the following: Number of Exercise Warrant Description Warrants Price Expiration December 2011 convertible NP warrants 172,730 $ 1.1984 February 8, 2017 December 2011 convertible NP warrants 802,215 $ 1.3816 February 6, 2018 May 2012 PPO warrants 401,700 $ 0.6000 May 15, 2017 November 2012 PPO warrants 925,100 $ 0.6000 November 9, 2017 August 2012 convertible NP warrants (1) 92,632 $ 0.9520 August 8, 2018 August 2012 convertible NP warrants 92,244 $ 0.9060 August 8, 2018 Crede Tranche 1A warrants 1,250,000 $ 3.3600 September 29, 2016 Crede Tranche 1B warrants 1,000,000 $ 2.5951 September 29, 2016 June 2015 registered direct offering warrants 3,000,000 $ 1.2500 December 2, 2020 February 2016 registered direct offering warrants 2,500,000 $ 1.2100 August 5, 2021 Total warrants outstanding (2),(3), (4) 10,236,621 (1) Includes anti-dilution features. (2) Includes warrants to purchase 533,000 5.2 (3) Includes warrants to purchase 312,730 3.1 (4) Excludes the Crede Tranche 2 and Tranche 3 warrants to purchase 2,000,000
Roll-Forward of Warrant Liability from Intitial Valuation	Fair value at December 31, 2013 $ 3,779,522 Reclassification of warrant liability to equity resulting from Warrant Amendments - Q1 2014 (7,367,915) Cost of inducement from Warrant Amendments - Q1 2014 144,548 Fair value of warrant liability resulting from issuance of Crede Tranche 1A Warrants - Q3 2014 2,810,000 Loss as a result of change in fair value 3,676,691 Fair value at December 31, 2014 $ 3,042,846 Gain as a result of change in fair value (144,550) Fair value at December 31, 2015 $ 2,898,296 Reclassification of warrant liability to capital in excess of par (2,810,000) Gain as a result of change in fair value (71,065) Fair value at March 31, 2016 $ 17,231
Warrant Activity	Number of Warrants outstanding at December 31, 2013 10,653,469 Warrants issued in conjunction with consulting agreement 4,250,000 Warrants exercised during 2014 (1,247,443) Additional warrants due to anti-dilution provisions 18,383 Warrants outstanding at December 31, 2014 13,674,409 Warrants issued in conjunction with registered direct offering 3,000,000 Warrants exercised during 2015 (40,000) Additional warrants due to anti-dilution provisions 369 Warrants outstanding at December 31, 2015 16,634,778 Warrants issued in conjunction with registered direct offering 2,500,000 Unexercisable warrants (1) (2,000,000) Warrants exercised during January 2016 (67,042) Warrants expired during January 2016 (6,831,115) Warrants outstanding at March 31, 2016 10,236,621 Composition of outstanding warrants: Warrants containing anti-dilution feature 92,632 Warrants without anti-dilution feature 10,143,989 10,236,621 (1) Crede Tranche 2 Warrants and Tranche 3 Warrants are not exercisable (see Note 4 for additional discussion).

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases	The future minimum lease payments if the Company exercises each of the additional extensions are approximately as follows: Year ended December 31, 2016 - $ 110,000 Year ended December 31, 2017 - $ 156,000 Year ended December 31, 2018 - $ 169,000 Year ended December 31, 2019 - $ 169,000 Year ended December 31, 2020 - $ 169,000 Year ended December 31, 2021 - $ 141,000

EARNINGS PER COMMON SHARE (Tabl

EARNINGS PER COMMON SHARE (Tables)	3 Months Ended
	Mar. 31, 2016
Earnings Per Common Share [Abstract]
Computation of Basic and Diluted Earnings Per Common Share	The following table sets forth the computation of basic and diluted earnings per common share for the three month periods ended March 31, 2016 and 2015: March 31, March 31, 2016 2015 Net loss attributed to common shareholders $ (3,252,452) $ (4,116,739) Denominator for basic earnings per share-weighted average shares outstanding 74,031,148 64,187,656 Effect of dilutive securities: Warrants, restricted stock and options outstanding - - Denominator for diluted earnings per common share-weighted average shares adjusted for dilutive securities 74,031,148 64,187,656 Loss per common share - basic and diluted $ (0.04) $ (0.06)
Schedule Outstanding Excluded from Computation Because they would have bee Anti-dilutive	Securities outstanding that were excluded from the computation because they would have been anti-dilutive are as follows: March 31, March 31, 2016 2015 Warrants 10,236,621 13,674,409 Restricted stock - 250,000 Options 4,795,679 2,599,999 15,032,300 16,524,408

EQUITY BASED COMPENSATION (Tabl

EQUITY BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Fair Value Assumptions	The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. The following assumptions were used for the three months ended March 31, 2016 and 2015: 2016 2015 Risk-free interest rate (weighted average) 1.37 % 1.52 % Expected dividend yield 0 % 0 % Expected stock price volatility 90 % 90 % Expected life of options (weighted average) 4.98 years 5.17 years
Summary of All Stock Option Activity	A summary of all stock option activity since December 31, 2013 is as follows: Number of Weighted Weighted Aggregate Outstanding at December 31, 2013 660,000 $ 0.74 Granted in 2014 300,000 $ 2.61 Exercised in 2014 (70,000) $ 0.69 Outstanding at December 31, 2014 890,000 $ 1.38 Reinstated in 2015 50,000 $ 0.69 Granted in 2015 2,221,642 $ 1.00 Outstanding at December 31, 2015 3,161,642 $ 1.10 Granted in 2016 1,634,037 $ 0.95 Outstanding at March 31, 2016 4,795,679 $ 1.05 7.9 years $ 67,100 Exercisable at March 31, 2016 2,349,999 $ 1.09 7.3 years $ 43,100

NATURE OF BUSINESS AND SUMMAR29

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) Cigarettes in Millions	1 Months Ended		3 Months Ended			12 Months Ended
	Jan. 31, 2016USD ($)	Sep. 30, 2015Cigarettes	Mar. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)
Condensed Financial Statements, Captions [Line Items]
Amortization of Intangible Assets			$ 124,841		$ 106,587
Sales Revenue, Goods, Net, Total	$ 329,321		3,019,056	$ 242,658	616,138
Allowance for Doubtful Accounts Receivable			10,000	$ 10,000		$ 10,000
Advertising Expense			208,000		51,000
Excise and Sales Taxes			1,735,000		$ 325,000
Percentage of Orders Shipped						40.00%
Patent and Trademarks [Member]
Condensed Financial Statements, Captions [Line Items]
Finite-Lived Intangible Assets, Amortization Expense, after Year Five			358,000
Licensing Agreements [Member]
Condensed Financial Statements, Captions [Line Items]
Finite-Lived Intangible Assets, Amortization Expense, after Year Five			$ 98,000
Maximum [Member]
Condensed Financial Statements, Captions [Line Items]
Property, Plant and Equipment, Estimated Useful Lives			3
Minimum [Member]
Condensed Financial Statements, Captions [Line Items]
Property, Plant and Equipment, Estimated Useful Lives			10
SPECTRUM Order [Member]
Condensed Financial Statements, Captions [Line Items]
Purchase Order Received During Period | Cigarettes		5

NATURE OF BUSINESS AND SUMMAR30

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Inventory [Line Items]
Inventory - tobacco leaf	$ 1,830,675	$ 1,816,857
Inventory - finished goods
Cigarettes and filtered cigars	371,414	342,707
Inventory - raw materials
Cigarette and filtered cigar components	829,417	657,389
Inventory - tobacco leaf, net	3,031,506	2,816,953
Less: inventory reserve	110,623	110,623
Inventory, Net	$ 2,920,883	$ 2,706,330

NATURE OF BUSINESS AND SUMMAR31

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Intangible assets, net
Intangible assets, net	$ 7,383,107	$ 7,364,120
MSA Signatory Costs [Member]
Intangible assets, net
License fee for predicate cigarette brand	2,202,000	2,202,000
License Fees, Net [Member]
Intangible assets, net
License fee for predicate cigarette brand	300,000	300,000
Patent and Trademark [Member]
Intangible assets, net
Patent and trademark costs	5,290,387	5,146,559
Less: accumulated amortization	1,704,228	1,603,893
Patent and trademark costs, net	3,586,159	3,542,666
Licensing Agreements [Member]
Intangible assets, net
Patent and trademark costs	1,450,000	1,450,000
Less: accumulated amortization	155,052	130,546
Patent and trademark costs, net	$ 1,294,948	$ 1,319,454

FEBRUARY 2016 REGISTERED DIRE32

FEBRUARY 2016 REGISTERED DIRECT OFFERING (Narrative) (Details) - USD ($)	Feb. 05, 2016	Jan. 25, 2016	Jun. 02, 2015	Mar. 31, 2016
Direct Offering [Line Items]
Stock Issued During Period, Shares, New Issues		2,618
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 1.21		$ 1.25
Stock Issued During Period, Value, New Issues			$ 5,576,083	$ 5,091,791
Warrants Expiration Period	66 months		66 months
Fair Value of Warrants			$ 2,067,000	$ 1,940,000
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	2,500,000		3,000,000
February Offering [Member]
Direct Offering [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 1.21
Stock Issued During Period, Value, New Issues	$ 5,091,791
Shares Issued, Price Per Share	$ 1.10
Fair Value of Warrants	$ 1,940,000
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	2,500,000
Common Stock [Member]
Direct Offering [Line Items]
Stock Issued During Period, Shares, New Issues			6,000,000	5,000,000
Stock Issued During Period, Value, New Issues				$ 50
Common Stock [Member] | February Offering [Member]
Direct Offering [Line Items]
Stock Issued During Period, Shares, New Issues	5,000,000

JUNE 2015 REGISTERED DIRECT O33

JUNE 2015 REGISTERED DIRECT OFFERING (Narrative) (Details) - USD ($)	Feb. 05, 2016	Jan. 25, 2016	Jun. 02, 2015	Mar. 31, 2016
Direct Offering [Line Items]
Stock Issued During Period, Shares, New Issues		2,618
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 1.21		$ 1.25
Stock Issued During Period, Value, New Issues			$ 5,576,083	$ 5,091,791
Warrants Expiration Period	66 months		66 months
Fair Value of Warrants			$ 2,067,000	$ 1,940,000
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	2,500,000		3,000,000
June Offering [Member]
Direct Offering [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights			$ 1.25
Stock Issued During Period, Value, New Issues			$ 5,576,083
Warrants Expiration Period			66 years
Shares Issued, Price Per Share			$ 1
Fair Value of Warrants			$ 2,067,000
Class of Warrant or Right, Number of Securities Called by Warrants or Rights			3,000,000
Common Stock [Member]
Direct Offering [Line Items]
Stock Issued During Period, Shares, New Issues			6,000,000	5,000,000
Stock Issued During Period, Value, New Issues				$ 50
Common Stock [Member] | June Offering [Member]
Direct Offering [Line Items]
Stock Issued During Period, Shares, New Issues			6,000,000

JOINT VENTURE, CONSULTING AGR34

JOINT VENTURE, CONSULTING AGREEMENT AND ASSOCIATED WARRANTS (Narrative) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Feb. 05, 2016	Jun. 02, 2015
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Issuance of Stock and Warrants for Services or Claims	$ 22,873	$ 2,087,118
Class of Warrant or Right, Number of Securities Called by Warrants or Rights			2,500,000	3,000,000
Warrant Exercisable Per Share	$ 3.36
Consulting Agreement [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Issuance of Stock and Warrants for Services or Claims	$ 4,070,000
Consulting Agreement [Member] | General and Administrative Expense [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Other Prepaid Expense, Current		$ 1,978,785
Consulting Agreement [Member] | Tranche 1A Warrants [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Issuance of Stock and Warrants for Services or Claims	$ 2,810,000
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	1,250,000
Consulting Agreement [Member] | Tranche 1B Warrants [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	1,000,000
Consulting Agreement [Member] | Tranche 2 Warrants [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	1,000,000
Consulting Agreement [Member] | Tranche 3 Warrants [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	1,000,000

MANUFACTURING FACILITY (Narrati

MANUFACTURING FACILITY (Narrative) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Manufacturing Facility [Line Items]
General and Administrative Expense, Total	$ 1,846,607	$ 3,651,721
North Carolina Manufacturing Facility [Member]
Manufacturing Facility [Line Items]
General and Administrative Expense, Total	$ 135,267	$ 131,518

MACHINERY AND EQUIPMENT (Narrat

MACHINERY AND EQUIPMENT (Narrative) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Property, Plant and Equipment [Line Items]
Depreciation, Total	$ 80,597	$ 78,810

MACHINERY AND EQUIPMENT (Detail

MACHINERY AND EQUIPMENT (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Cigarette manufacturing equipment	$ 3,016,246	$ 3,016,246
Office furniture, fixtures and equipment	96,881	95,361
Property, Plant and Equipment, Gross, Total	3,113,127	3,111,607
Less: accumulated depreciation	636,411	555,814
Machinery and equipment, net	$ 2,476,716	$ 2,555,793

EQUITY INVESTMENT (Narrative) (

EQUITY INVESTMENT (Narrative) (Details) - USD ($)	1 Months Ended		3 Months Ended
	Mar. 31, 2015	Sep. 15, 2014	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Dec. 31, 2014	Apr. 14, 2014	Apr. 11, 2014
Schedule of Equity Method Investments [Line Items]
Equity Method Investments			$ 1,135,419		$ 1,222,651		$ 250,000
Equity Method Investment, Realized Gain (Loss) on Disposal			$ (87,232)	$ (50,981)
Percentage of Net Loss			25.00%
Amortization of Intangible Assets			$ 124,841	106,587
Anandia Laboratories, Inc [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investments		$ 450,000				$ 1,199,000		$ 250,000
Equity Method Investment, Ownership Percentage			25.00%					10.00%
Sale of Stock, Number of Shares Issued in Transaction		394,500
Equity Method Investment, Realized Gain (Loss) on Disposal			$ 72,820	36,569
Amortization of Intangible Assets			$ 14,412	14,412
Common Stock [Member]
Schedule of Equity Method Investments [Line Items]
Sale of Stock, Number of Shares Issued in Transaction		150,000
Common Stock [Member] | Anandia Laboratories, Inc [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage		15.00%
Equity Method Investment Summarized Financial Information, Equity	$ 325,000			$ 325,000
Sale of Stock, Consideration Received on Transaction	$ 377,906

NOTES PAYABLE AND PATENT ACQU39

NOTES PAYABLE AND PATENT ACQUISITION (Narrative) (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2014	Dec. 31, 2015	Dec. 22, 2015	Dec. 23, 2014
Notes Payable And Patent Acquisition [Line Items]
Finite Lived Intangible Assets Acquired With Notes Payable		$ 925,730
Notes Payable, Current	$ 314,710		$ 308,582	$ 314,710
Notes Payable, Noncurrent	307,938		$ 307,938	307,938
Notes and Loans, Noncurrent, Total	616,520			$ 622,648
Patents [Member]
Notes Payable And Patent Acquisition [Line Items]
Other Commitment	1,213,000				$ 1,000,000
Other Commitment, Due in Second Year					213,000
Other Commitment, Due in Third Year					333,333
Other Commitment, Due in Fourth Year					333,333
Other Commitment, Due in Fifth Year					$ 333,333
Finite-lived Intangible Assets Acquired	$ 1,138,730

SEVERANCE LIABILITY (Narrative)

SEVERANCE LIABILITY (Narrative) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2014	Mar. 31, 2016	Dec. 31, 2015
Severance Liability [Line Items]
Severance Costs	$ 624,320
Severance Term	36 months
Accrued Severance Liabilities Current	$ 212,012	$ 218,834	$ 220,661
Accounts Payable and Accrued Liabilities, Noncurrent	412,308	$ 145,153	$ 199,658
Employee Severance [Member]
Severance Liability [Line Items]
Monthly Severance Cost	$ 18,750

WARRANTS FOR COMMON STOCK (Narr

WARRANTS FOR COMMON STOCK (Narrative) (Details) - USD ($)	Feb. 05, 2016	Jan. 25, 2016	Jun. 02, 2015	Mar. 31, 2016		Mar. 31, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Class of Warrant or Right [Line Items]
Warrants outstanding upon conversion of convertible notes				10,236,621	[1],[2],[3]		16,634,778	13,674,409	10,653,469
Derivative, Gain (Loss) on Derivative, Net, Total				$ 71,065		$ 59,213
Percentage of Warrants Outstanding				5.20%
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 1.21		$ 1.25
Warrants Expiration Period	66 months		66 months
Fair Value of Warrants			$ 2,067,000	$ 1,940,000
Class of Warrant or Right, Outstanding				10,236,621	[1],[2],[3]		16,634,778	13,674,409	10,653,469
Stock Issued During Period, Shares, New Issues		2,618
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	2,500,000		3,000,000
Number Of Warrants Exercised		67,042		67,042			40,000	1,247,443
Warrants Expired And Unexercised		6,831,115
Warrants Not Exercisable [Member]
Class of Warrant or Right [Line Items]
Warrants Expired And Unexercised				2,000,000
Officers And Directors [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights				533,000
Officers And Directors One [Member]
Class of Warrant or Right [Line Items]
Percentage of Warrants Outstanding				3.10%
Class of Warrant or Right, Number of Securities Called by Warrants or Rights				312,730
Warrants With Provision Of Anti Dilution [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights				92,632
[1]	Excludes the Crede Tranche 2 and Tranche 3 warrants to purchase 2,000,000 shares of common stock because the warrants will never be exercisable (see Note 4 for additional discussion).
[2]	Includes warrants to purchase 312,730 shares of common stock (3.1%) held by a former officer and director that have had the anti-dilution feature removed.
[3]	Includes warrants to purchase 533,000 shares of common stock (5.2%) held by officers and directors that have had the anti-dilution feature removed.

WARRANTS FOR COMMON STOCK (Deta

WARRANTS FOR COMMON STOCK (Details) - $ / shares		3 Months Ended
		Mar. 31, 2016		Feb. 05, 2016	Dec. 31, 2015	Jun. 02, 2015	Dec. 31, 2014	Dec. 31, 2013
Class of Warrant or Right [Line Items]
Number of warrants		10,236,621	[1],[2],[3]		16,634,778		13,674,409	10,653,469
Exercise Price				$ 1.21		$ 1.25
December 2011 Convertible Notes Payable Warrants One [Member]
Class of Warrant or Right [Line Items]
Number of warrants		172,730
Exercise Price		$ 1.1984
Expiration		Feb. 8, 2017
December 2011 Convertible Notes Payable Warrants Two [Member]
Class of Warrant or Right [Line Items]
Number of warrants		802,215
Exercise Price		$ 1.3816
Expiration		Feb. 6, 2018
May 2012 Private Placement Offering Warrants [Member]
Class of Warrant or Right [Line Items]
Number of warrants		401,700
Exercise Price		$ 0.6
Expiration		May 15, 2017
November 2012 Private Placement Offering Warrants [Member]
Class of Warrant or Right [Line Items]
Number of warrants		925,100
Exercise Price		$ 0.6
Expiration		Nov. 9, 2017
August 2012 Convertible Notes Payable Warrants One [Member]
Class of Warrant or Right [Line Items]
Number of warrants	[4]	92,632
Exercise Price	[4]	$ 0.952
Expiration	[4]	Aug. 8, 2018
August 2012 Convertible Notes Payable Warrants Two [Member]
Class of Warrant or Right [Line Items]
Number of warrants		92,244
Exercise Price		$ 0.906
Expiration		Aug. 8, 2018
Crede Tranche 1A warrants [Member]
Class of Warrant or Right [Line Items]
Number of warrants		1,250,000
Exercise Price		$ 3.36
Expiration		Sep. 29, 2016
Crede Tranche 1B warrants [Member]
Class of Warrant or Right [Line Items]
Number of warrants		1,000,000
Exercise Price		$ 2.5951
Expiration		Sep. 29, 2016
June 2015 registered direct offering warrants [Member]
Class of Warrant or Right [Line Items]
Number of warrants		3,000,000
Exercise Price		$ 1.2500
Expiration		Dec. 2, 2020
February 2016 registered direct offering warrants [Member]
Class of Warrant or Right [Line Items]
Number of warrants		2,500,000
Exercise Price		$ 1.2100
Expiration		Aug. 5, 2021
[1]	Excludes the Crede Tranche 2 and Tranche 3 warrants to purchase 2,000,000 shares of common stock because the warrants will never be exercisable (see Note 4 for additional discussion).
[2]	Includes warrants to purchase 312,730 shares of common stock (3.1%) held by a former officer and director that have had the anti-dilution feature removed.
[3]	Includes warrants to purchase 533,000 shares of common stock (5.2%) held by officers and directors that have had the anti-dilution feature removed.
[4]	Includes anti-dilution features.

WARRANTS FOR COMMON STOCK (Roll

WARRANTS FOR COMMON STOCK (Roll-Forward of Warrant Liability from Initial Valuation) (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Class of Warrant or Right [Line Items]
Fair value of warrant liability upon Issuance / conversion	$ 17,231	$ 2,898,296	$ 3,042,846	$ 3,779,522
Reclassification of Warrant liability to equity upon exercise of Warrants			(7,367,915)
Cost of inducement from Warrant Amendments and Warrant Exchange Program			144,548
Reclassification of warrant liability to capital in excess of par	(2,810,000)
Gain as a result of change in fair value	$ (71,065)	$ (144,550)
Derivative, Loss on Derivative			3,676,691
Crede Tranche 1A warrants [Member]
Class of Warrant or Right [Line Items]
Fair value of warrant liability upon Issuance / conversion			$ 2,810,000

WARRANTS FOR COMMON STOCK (Warr

WARRANTS FOR COMMON STOCK (Warrant Activity) (Details) - shares		1 Months Ended	3 Months Ended		12 Months Ended
		Jan. 25, 2016	Mar. 31, 2016		Dec. 31, 2015	Dec. 31, 2014
Class of Warrant or Right [Line Items]
Warrant outstanding beginning balance			16,634,778		13,674,409	10,653,469
Additional warrants due to anti-dilution provisions					369	18,383
Number Of Warrants Expired			(6,831,115)
Warrants exercised		(67,042)	(67,042)		(40,000)	(1,247,443)
Warrants issued in conjunction with consulting agreement (see Note 6)						4,250,000
Warrants issued in conjunction with registered direct offering			2,500,000		3,000,000
Warrant outstanding ending balance			10,236,621	[1],[2],[3]	16,634,778	13,674,409
Unexercisable warrants	[4]		(2,000,000)
Composition of outstanding warrants:
Warrants containing anti-dilution feature			92,632
Warrants without anti-dilution feature			10,143,989
Warrants Outstanding			10,236,621
[1]	Excludes the Crede Tranche 2 and Tranche 3 warrants to purchase 2,000,000 shares of common stock because the warrants will never be exercisable (see Note 4 for additional discussion).
[2]	Includes warrants to purchase 312,730 shares of common stock (3.1%) held by a former officer and director that have had the anti-dilution feature removed.
[3]	Includes warrants to purchase 533,000 shares of common stock (5.2%) held by officers and directors that have had the anti-dilution feature removed.
[4]	Crede Tranche 2 Warrants and Tranche 3 Warrants are not exercisable (see Note 4 for additional discussion).

COMMITMENTS AND CONTINGENCIES45

COMMITMENTS AND CONTINGENCIES (Narrative) (Details)

Dec. 08, 2015USD ($)

Nov. 01, 2015USD ($)a

Feb. 10, 2014USD ($)

Jul. 31, 2016USD ($)

Apr. 30, 2016USD ($)

Jan. 31, 2016USD ($)

Oct. 31, 2015USD ($)

Sep. 15, 2014USD ($)

Aug. 27, 2014USD ($)

Aug. 22, 2014USD ($)

Mar. 31, 2016USD ($)

Mar. 31, 2015USD ($)

Dec. 31, 2014USD ($)

Dec. 31, 2016USD ($)

Dec. 31, 2015USD ($)

Other Commitments [Line Items]

Annual minimum royalty payments

$ 75,000

Milestone payment upon approval of a product

$ 150,000

Research and Development Expense, Total

597,391

$ 158,469

License Costs

$ 150,000

$ 85,681

Amortization of Other Deferred Charges

124,841

106,587

Lease Payments

36,131

30,750

Operating Leases, Future Minimum Payments, Due in Two Years

156,000

Operating Leases, Future Minimum Payments, Due in Three Years

169,000

Research and Development Arrangement, Contract to Perform for Others, Description and Terms

12 months

Operating Leases, Future Minimum Payments, Due in Four Years

169,000

Operating Leases, Rent Expense, Minimum Rentals

$ 3,750

Land Subject to Ground Leases | a

25,000

Minimum Annual Royalties In Year Four

15,000

Minimum Annual Royalties In Year Five

25,000

Minimum Annual Royalties After Year Five

50,000

Minimum Annual Royalties In Year Three

10,000

Payment One [Member]

Other Commitments [Line Items]

Research and Development Arrangement, Contract to Perform for Others, Costs Incurred, Gross

$ 116,400

379,800

Payment Two [Member]

Other Commitments [Line Items]

Research and Development Arrangement, Contract to Perform for Others, Costs Incurred, Gross

$ 95,000

Office space in Clarence, New York [Member]

Other Commitments [Line Items]

Operating Leases, Future Minimum Payments, Due in Two Years

34,000

Operating Leases, Future Minimum Payments, Due in Three Years

31,000

Warehouse Space in North Carolina [Member]

Other Commitments [Line Items]

Operating Leases, Future Minimum Payments Due, Next Twelve Months

$ 33,750

Operating Leases, Future Minimum Payments, Due in Two Years

45,000

Operating Leases, Future Minimum Payments, Due in Three Years

45,000

Operating Leases, Future Minimum Payments, Due in Four Years

$ 37,500

Scenario, Forecast [Member]

Other Commitments [Line Items]

Annual minimum royalty payments

$ 225,000

Scenario, Forecast [Member] | Payment Three [Member]

Other Commitments [Line Items]

Research and Development Arrangement, Contract to Perform for Others, Costs Incurred, Gross

$ 84,200

Scenario, Forecast [Member] | Payment Four [Member]

Other Commitments [Line Items]

Research and Development Arrangement, Contract to Perform for Others, Costs Incurred, Gross

$ 84,200

Licensing Agreements One [Member]

Other Commitments [Line Items]

Research and Development Expense, Total

$ 162,408

114,797

39,051

License Costs

$ 125,000

License Maintenance Fees Due Current

15,000

License Maintenance Fees Due In Two Years

15,000

License Maintenance Fees Due In Three Years

15,000

Minimum Royalty Fee Payments Due In Year Five

30,000

Minimum Royalty Fee Payments Due Thereafter

50,000

Capitalized Patent Costs Gross

27,956

3,682

Minimum Royalty Fee Payments Due In Year Three

20,000

Patents [Member]

Other Commitments [Line Items]

Capitalized Patent Costs Gross

3,980

17,328

Precision License [Member]

Other Commitments [Line Items]

License Costs

$ 1,250,000

Finite-lived Intangible Assets Acquired

725,000

Obligation To Pay Remaining License Cost

525,000

$ 525,000

Amortization of Other Deferred Charges

24,506

24,506

Obligation To Pay Remaining License Cost In Increments

25,000

Anandia Sublicense [Member]

Other Commitments [Line Items]

License Costs

$ 10,000

Upfront Fee

$ 75,000

Licensing Agreements Two [Member]

Other Commitments [Line Items]

Capitalized Patent Costs Gross

$ 6,075

$ 0

COMMITMENTS AND CONTINGENCIES46

COMMITMENTS AND CONTINGENCIES (Future Minimum Lease Payments) (Details)	Mar. 31, 2016USD ($)
Other Commitments [Line Items]
Year ended December 31, 2016 -	$ 110,000
Year ended December 31, 2017 -	156,000
Year ended December 31, 2018 -	169,000
Year ended December 31, 2019 -	169,000
Year ended December 31, 2020 -	169,000
Year ended December 31, 2021 -	$ 141,000

EARNINGS PER COMMON SHARE (Comp

EARNINGS PER COMMON SHARE (Computation of Basic and Diluted Earnings Per Common Share) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net loss attributed to common shareholders	$ (3,252,452)	$ (4,116,739)
Denominator for basic earnings per share-weighted average shares outstanding	74,031,148	64,187,656
Effect of dilutive securities:
Warrants, restricted stock and options outstanding	0	0
Denominator for diluted earnings per common share-weighted average shares adjusted for dilutive securities	74,031,148	64,187,656
Loss per common share - basic and diluted	$ (0.04)	$ (0.06)

EARNINGS PER COMMON SHARE (Anti

EARNINGS PER COMMON SHARE (Anti-Dilutive Securities Outstanding Excluded from Computation) (Details) - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities outstanding but excluded from computation of earnings per share	15,032,300	16,524,408
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities outstanding but excluded from computation of earnings per share	10,236,621	13,674,409
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities outstanding but excluded from computation of earnings per share	0	250,000
Options [ Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities outstanding but excluded from computation of earnings per share	4,795,679	2,599,999

EQUITY BASED COMPENSATION (Narr

EQUITY BASED COMPENSATION (Narrative) (Details) - USD ($)	Apr. 12, 2014	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Oct. 21, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity based employee compensation expense		$ 259,994	$ 354,087
Unrecognized compensation expense related to non-vested restricted shares and stock option		$ 1,429,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value		$ 0.65	$ 0.59
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		1,634,037	1,659,999
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value		$ 909,319	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		0	0		70,000
IPO [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense related to non-vested restricted shares and stock option		$ 1,634,037
Omnibus Incentive Plan [Member] | Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	5,000,000
Scenario, Forecast [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense related to non-vested restricted shares and stock option						$ 42,000	$ 253,000	$ 344,000	$ 571,000
Third Party [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity based employee compensation expense		$ 23,873	$ 108,333
Restricted shares awarded vested immediately		5,811	100,000
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted shares awarded vested immediately			189,196
Restricted Stock [Member] | Omnibus Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Gross			20,000
Equity Incentive Plan 2010 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-Based Compensation Arrangement By Share-Based Payment Award, Number Of Shares Authorized										4,250,000
Stock Issued During Period, Shares, Restricted Stock Award, Gross				850,000
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense related to non-vested restricted shares and stock option		$ 218,000
Employee Stock Option [Member] | Omnibus Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Gross			1,559,999

EQUITY BASED COMPENSATION (Sche

EQUITY BASED COMPENSATION (Schedule of Fair Value Assumptions) (Details)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Risk-free interest rate	1.37%	1.52%
Expected dividend yield	0.00%	0.00%
Expected stock price volatility	90.00%	90.00%
Expected life of options	4 years 11 months 23 days	5 years 2 months 1 day

EQUITY BASED COMPENSATION (Summ

EQUITY BASED COMPENSATION (Summary of All Stock Option Activity) (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Dec. 31, 2014
Number of Options
Options Outstanding, Beginning of Period	3,161,642	890,000	890,000	660,000
Reinstated			50,000
Granted	1,634,037		2,221,642	300,000
Exercised	0	0		(70,000)
Options Outstanding, End of Period	4,795,679		3,161,642	890,000
Exercisable, End of Period	2,349,999
Weighted Average Exercise Price
Options Outstanding, Beginning of Period	$ 1.1	$ 1.38	$ 1.38	$ 0.74
Reinstated			0.69
Granted	0.95		1	2.61
Exercised				0.69
Options Outstanding, End of Period	1.05		$ 1.1	$ 1.38
Exercisable, End of Period	$ 1.09
Weighted Average Remaining Contractual Term
Options Outstanding, End of Period	7 years 10 months 24 days
Exercisable, End of Period	7 years 3 months 18 days
Aggregate Intrinsic Value
Options Outstanding, End of Period	$ 67,100
Exercisable, End of Period	$ 43,100