22nd Century (XXII) 10-K 8 Mar 17 2016 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Mar. 08, 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	22nd Century Group, Inc.
Entity Central Index Key	1,347,858
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			$ 56.3
Trading Symbol	XXII
Entity Common Stock, Shares Outstanding		90,698,113

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Current assets:
Cash	$ 13,468,188	$ 3,760,297
Accounts receivable, net	40,992	51,230
Inventory, net	3,092,686	2,706,330
Prepaid expenses and other assets	195,569	710,091
Total current assets	16,797,435	7,227,948
Machinery and equipment, net	2,434,663	2,555,793
Other assets:
Intangible assets, net	7,389,946	7,364,120
Equity investment	1,020,313	1,222,651
Total other assets	8,410,259	8,586,771
Total assets	27,642,357	18,370,512
Current liabilities:
Current portion of note payable	307,938	308,582
Accounts payable	1,340,156	1,283,346
Accrued expenses	1,401,566	1,423,531
Accrued severance	199,657	220,661
Total current liabilities	3,249,317	3,236,120
Long-term portion of note payable	0	307,938
Long-term portion of accrued severance	0	199,658
Warrant liability	58,681	2,898,296
Total liabilities	3,307,998	6,642,012
Commitments and contingencies (Note 14)
Shareholders' equity
Common shares value	907	710
Capital in excess of par value	102,471,907	78,284,815
Accumulated deficit	(78,138,455)	(66,557,025)
Total shareholders' equity	24,334,359	11,728,500
Total liabilities and shareholders' equity	$ 27,642,357	$ 18,370,512

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 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	90,698,113	71,006,844
Common stock, shares outstanding	90,698,113	71,006,844

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenue:
Sale of products, net	$ 12,279,979	$ 8,521,998	$ 528,991
Cost of goods sold (exclusive of depreciation shown separately below):
Products	12,709,678	9,102,560	252,002
Royalties for licensing	0	0	246,434
Cost of Revenue	12,709,678	9,102,560	498,436
Gross (loss) profit	(429,699)	(580,562)	30,555
Operating expenses:
Research and development (including equity based compensation of $136,946, $167,837 and $331,467, respectively)	2,340,958	1,571,365	1,216,483
General and administrative (including equity based compensation of $718,610, $3,376,664 and $4,165,078, respectively)	6,193,269	7,760,127	8,823,534
Pre-manufacturing facility costs (including equity based compensation of $0, $0 and $27,923, respectively)	0	0	1,176,676
Sales and marketing costs (including equity based compensation of $55,826, $41,039 and $0, respectively)	1,581,741	1,357,518	85,930
Depreciation	326,124	319,699	230,012
Amortization	516,056	454,612	265,284
Total operating expenses	10,958,148	11,463,321	11,797,919
Operating loss	(11,387,847)	(12,043,883)	(11,767,364)
Other income (expense):
Warrant liability gain (loss) - net	29,615	144,550	(3,676,691)
Warrant amendment inducement expense	0	0	(144,548)
Settlement proceeds	0	1,000,000	0
(Loss) gain on the disposition and sale of machinery and equipment	0	(15,130)	71,121
Loss on equity investment	(202,338)	(95,684)	(101,165)
Interest income	16,885	31,198	30,383
Interest expense	(37,745)	(52,982)	(7,094)
Total other income (expense)	(193,583)	1,011,952	(3,827,994)
Loss before income taxes	(11,581,430)	(11,031,931)	(15,595,358)
Income taxes	0	0	0
Net loss	$ (11,581,430)	$ (11,031,931)	$ (15,595,358)
Loss per common share - basic and diluted	$ (0.15)	$ (0.16)	$ (0.26)
Common shares used in basic earnings per share calculation	79,842,773	68,143,284	59,993,413

CONSOLIDATED STATEMENTS OF OPE5

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Pre-Manufacturing Facility [Member]
Allocated Share-based Compensation Expense	$ 0	$ 0	$ 27,923
Research and Development Expense [Member]
Allocated Share-based Compensation Expense	136,946	167,837	331,467
General and Administrative Expense [Member]
Allocated Share-based Compensation Expense	718,610	3,376,664	4,165,078
Sales and Marketing Costs Expense [Member]
Allocated Share-based Compensation Expense	$ 55,826	$ 41,039	$ 0

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($)	Total	Common Stock [Member]	Contributed Capital [Member]	Accumulated Deficit [Member]
Beginning balance at Dec. 31, 2013	$ 7,522,888	$ 569	$ 47,452,055	$ (39,929,736)
Beginning balance, shares at Dec. 31, 2013		56,902,770
Stock based compensation	2,433,253	$ 13	2,433,240	0
Stock based compensation (in shares)		1,282,768
Warrants issued as compensation for services	1,260,000	$ 0	1,260,000	0
Exercise of warrants	486,951	$ 12	486,939	0
Exercise of warrants (in shares)		1,167,737
Exercise of options	$ 48,300	$ 1	48,299	0
Exercise of options (in shares)	70,000	70,000
Common stock issued in September 2014 private placement, net	$ 9,324,088	$ 39	9,324,049	0
Common stock issued in September 2014 private placement, net (in shares)		3,871,767
Stock issued in connection with acquisition of NASCO Products, LLC	1,952,000	$ 6	1,951,994	0
Stock issued in connection with acquisition of NASCO Products, LLC (in shares)		640,000
Stock issued in connection with equity investment	394,500	$ 1	394,499	0
Stock issued in connection with equity investment (in shares)		150,000
Other capital contribution	25,200	$ 0	25,200	0
Warrant amendments	7,367,915	0	7,367,915	0
Net loss	(15,595,358)	0	0	(15,595,358)
Ending balance at Dec. 31, 2014	15,219,737	$ 641	70,744,190	(55,525,094)
Ending balance (in shares) at Dec. 31, 2014		64,085,042
Stock based compensation	1,623,423	$ 6	1,623,417	0
Stock based compensation (in shares)		553,896
Exercise of warrants	50,688	$ 0	50,688	0
Exercise of warrants (in shares)		40,000
Stock issued in connection with acquisition of NASCO Products, LLC	0
Stock issued in connection with equity investment	325,000	$ 4	324,996	0
Stock issued in connection with equity investment (in shares)		377,906
Common stock issued in June 2015 registered direct offering, net	5,576,083	$ 60	5,576,023	0
Common stock issued in June 2015 registered direct offering, net (in shares)		6,000,000
Stock cancellation	(34,500)	$ (1)	(34,499)	0
Stock cancellation (in shares)		(50,000)
Net loss	(11,031,931)	$ 0	0	(11,031,931)
Ending balance at Dec. 31, 2015	11,728,500	$ 710	78,284,815	(66,557,025)
Ending balance (in shares) at Dec. 31, 2015		71,006,844
Stock based compensation	894,715	$ 0	894,715	0
Stock based compensation (in shares)		15,811
Stock issued in connection with acquisition of NASCO Products, LLC	0
Stock issued in connection with equity investment	0
Common stock issued in February 2016 registered direct offering, net	5,091,791	$ 50	5,091,741	0
Common stock issued in February 2016 registered direct offering, net (in shares)		5,000,000
Common stock issued in July 2016 registered direct offering, net	4,682,764	$ 62	4,682,702	0
Common stock issued in July 2016 registered direct offering, net (in shares)		6,172,840
Common stock issued in October 2016 registered direct offering, net	10,707,823	$ 85	10,707,738	0
Common stock issued in October 2016 registered direct offering, net (in shares)		8,500,000
Reclassification of warrant liability to capital in excess of par	2,810,000	$ 0	2,810,000	0
Stock issued in connection with warrant exercise	196	$ 0	196	0
Stock issued in connection with warrant exercise (in shares)		2,618
Net loss	(11,581,430)	$ 0	0	(11,581,430)
Ending balance at Dec. 31, 2016	$ 24,334,359	$ 907	$ 102,471,907	$ (78,138,455)
Ending balance (in shares) at Dec. 31, 2016		90,698,113

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	$ (11,581,430)	$ (11,031,931)	$ (15,595,358)
Adjustments to reconcile net loss to cash used in operating activities:
Amortization and depreciation	744,157	676,289	462,772
Amortization of license fees	98,022	98,022	32,524
Loss on equity investment	202,338	95,684	101,165
Accretion of interest on note payable and accrued severance	37,745	45,121	0
Loss (gain) on the disposition and sale of machinery and equipment	0	15,130	(71,121)
Warrant liability (gain) loss	(29,615)	(144,550)	3,676,691
Warrant amendment inducement expense	0	0	144,548
Equity based employee compensation expense	880,509	1,326,393	2,293,083
Equity based payments for outside services	30,873	2,259,147	2,231,385
Increase in inventory reserve	145,000	60,000	0
Increase in allowance for doubtful accounts	0	10,000	0
Severance expense	0	0	624,320
Decrease (increase) in assets:
Accounts receivable	10,238	(61,230)	0
Inventory	(531,356)	(701,534)	(620,660)
Prepaid expenses and other assets	497,856	(478,955)	(214,469)
Increase (decrease) in liabilities:
Accounts payable	(136,297)	86,332	625,389
Accrued expenses	(21,965)	649,271	(93,985)
Accrued severance	(233,655)	(225,000)	0
Deferred revenue	0	0	(179,014)
Net cash used in operating activities	(9,887,580)	(7,321,811)	(6,582,730)
Cash flows from investing activities:
Acquisition of patents and trademarks	(356,541)	(413,180)	(726,989)
Acquisition machinery and equipment	(197,229)	(37,481)	(212,487)
Payment of license fees	0	0	(1,450,000)
Acquisition of NASCO Products, LLC	0	0	(250,000)
Proceeds from the sale of machinery and equipment	0	0	631,484
Equity investment	0	0	(700,000)
Net cash used in investing activities	(553,770)	(450,661)	(2,707,992)
Cash flows from financing activities:
Proceeds from exercise of warrants	196	50,688	486,951
Proceeds from exercise of options	0	0	48,300
Payments on borrowings - demand bank loan	0	(174,925)	0
Payments on borrowings - note payable	(333,333)	(333,333)	0
Net proceeds from September 2014 registered direct offering	0	0	9,324,088
Net proceeds from June 2015 registered direct offering	0	5,576,083	0
Net proceeds from February 2016 registered direct offering	5,091,791	0	0
Net proceeds from July 2016 registered direct offering	4,682,764	0	0
Net proceeds from October 2016 registered direct offering	10,707,823	0	0
Stock cancellation	0	(34,500)	0
Net payments from (to) related party	0	46,069	(4,000)
Net advances from officers	0	0	7,471
Net cash provided by financing activities	20,149,241	5,130,082	9,862,810
Net increase (decrease) in cash	9,707,891	(2,642,390)	572,088
Cash - beginning of period	3,760,297	6,402,687	5,830,599
Cash - end of period	13,468,188	3,760,297	6,402,687
Net cash paid for:
Cash paid during the period for interest	37,745	7,600	7,094
Cash paid during the period for income taxes	0	0	0
Non-cash transactions:
Reclassification of derivative liability to equity due to warrant amendments	0	0	7,367,915
Patent and trademark additions included in accounts payable	185,341	310,078	193,454
Patent and trademark additions included in accrued expenses	0	17,715	0
Machinery and equipment additions included in accounts payable	7,765	2,525	10,904
Reclassification of machinery and equipment purchases to inventory	0	0	37,856
Issuance of common stock in connection with equity investment	0	325,000	394,500
Other capital contribution	0	0	25,200
License fee included in accrued expenses	0	0	300,000
Equity investment included in accrued expenses	0	0	325,000
Issuance of common stock for equity investment	0	0	394,500
Issuance of common stock for the acquisition of NASCO Products, LLC	0	0	1,952,000
Issuance of warrants as a derivative liability issued under a consulting agreement and included in prepaid consulting fees	0	0	2,810,000
Warrants issued under a consulting agreement resulting in an increase in capital and included in prepaid consulting fees	0	0	1,260,000
Patent additions acquired with note payable	0	0	925,730
Reclassification of warrant liability to capital in excess of par	$ 2,810,000	$ 0	$ 0

NATURE OF BUSINESS AND SUMMARY

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 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 Principles of Consolidation - Nature of Business - Reclassifications - Preferred stock authorized - Concentration of Credit Risk Accounts receivable Inventory - December 31, 2016 December 31, 2015 Inventory – tobacco leaf $ 1,936,039 $ 1,816,857 Inventory – finished goods Cigarettes and filtered cigars 340,523 342,707 Inventory – raw materials Cigarette and filtered cigar components 1,071,747 657,389 3,348,309 2,816,953 Less: inventory reserve 255,623 110,623 $ 3,092,686 $ 2,706,330 Fixed assets - Intangible Assets December 31, 2016 December 31, 2015 Intangible assets, net Patent and trademark costs $ 5,688,440 $ 5,146,559 Less: accumulated amortization 2,021,926 1,603,893 Patent and trademark costs, net 3,666,514 3,542,666 License fees, net (see Note 14) 1,450,000 1,450,000 Less: accumulated amortization 228,568 130,546 License fees, net 1,221,432 1,319,454 MSA signatory costs 2,202,000 2,202,000 License fee for predicate cigarette brand 300,000 300,000 $ 7,389,946 $ 7,364,120 Amortization expense relating to the above intangible assets for the years ended December 31, 2016, 2015 and 2014 amounted to $516,056, $454,612 and $265,284, respectively. The estimated annual average amortization expense for the next five years is approximately $353,000 for patent costs and $98,000 for license fees. Impairment of Long-Lived Assets Income Taxes Considering 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 December 31, 2016 and 2015. The Company’s federal and state tax returns for the years ended December 31, 2013 through December 31, 2015 are currently open to audit under the statutes of limitations. There are no pending audits as of December 31, 2016. Stock Based Compensation Revenue Recognition - SPECTRUM MAGIC In 2010, 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. The contract was renewed in 2015 for an additional 5 years. These government research cigarettes are distributed under the Company’s mark SPECTRUM 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 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.

OCTOBER 2016 REGISTERED DIRECT

OCTOBER 2016 REGISTERED DIRECT OFFERING	12 Months Ended
	Dec. 31, 2016
October 2016 [Member]
Subsidiary, Sale of Stock [Line Items]
OCTOBER 2016 REGISTERED DIRECT OFFERING	NOTE 2. – OCTOBER 2016 REGISTERED DIRECT OFFERING On October 19, 2016, the Company closed a registered direct offering with two institutional investors of units consisting of 8,500,000 4,250,000 1.45 3,380,000 The common stock and warrants were sold for $ 1.3425 10,707,823 .

JULY 2016 REGISTERED DIRECT OFF

JULY 2016 REGISTERED DIRECT OFFERING	12 Months Ended
	Dec. 31, 2016
JULY 2016 [Member]
Subsidiary, Sale of Stock [Line Items]
JULY 2016 REGISTERED DIRECT OFFERING	On July 27, 2016, the Company closed a registered direct offering of units consisting of 6,172,840 7,043,211 1.00 1,543,210 858,000 5,500,001 3,058,000 5.5 0.81 4,682,764 5.5 1.21 1.25

FEBRUARY 2016 REGISTERED DIRECT

FEBRUARY 2016 REGISTERED DIRECT OFFERING	12 Months Ended
	Dec. 31, 2016
FEBRUARY 2016 [Member]
Subsidiary, Sale of Stock [Line Items]
FEBRUARY 2016 REGISTERED DIRECT OFFERING	NOTE 4. - FEBRUARY 2016 REGISTERED DIRECT OFFERING On February 5, 2016, the Company closed a registered direct offering of units consisting of 5,000,000 2,500,000 1.21 1,940,000 1.10 5,091,791

JUNE 2015 REGISTERED DIRECT OFF

JUNE 2015 REGISTERED DIRECT OFFERING	12 Months Ended
	Dec. 31, 2016
JUNE 2015 [Member]
Subsidiary, Sale of Stock [Line Items]
JUNE 2015 REGISTERED DIRECT OFFERING	NOTE 5. - JUNE 2015 REGISTERED DIRECT OFFERING On June 2, 2015, the Company closed a registered direct offering of units consisting of 6,000,000 3,000,000 1.25 2,067,000 5,576,083

JOINT VENTURE, CONSULTING AGREE

JOINT VENTURE, CONSULTING AGREEMENT AND ASSOCIATED WARRANTS	12 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
JOINT VENTURE, CONSULTING AGREEMENT AND ASSOCIATED WARRANTS	NOTE 6. - 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 2,091,215 Four tranches of warrants were issued to Crede in conjunction with the Consulting Agreement as follows: Tranche 1A warrant to purchase 1,250,000 1,000,000 1,000,000 1,000,000 2,810,000 3.36 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 June 22, 2015. Accordingly, such revenue milestones will never be satisfied and the Tranche 2 and Tranche 3 warrants will never be exercisable.

MANUFACTURING FACILITY

MANUFACTURING FACILITY	12 Months Ended
	Dec. 31, 2016
Manufacturing Facility [Member]
Other Operating Income And Expense [Line Items]
MANUFACTURING FACILITY	NOTE 7. - MANUFACTURING FACILITY The Company’s manufacturing operations at its North Carolina factory were not at full production capacity during the years ended December 31, 2016 and 2015, 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 551,678 607,713 The Company’s manufacturing operations were primarily in a pre-manufacturing stage during the year ended December 31, 2014. During this period the Company incurred various expenses to prepare the facility for production. Pre-manufacturing expenses incurred during the year ended December 31, 2014 amounted to $1,176,676 and are reported as Pre-manufacturing facility costs on the Company’s Consolidated Statements of Operations.

MACHINERY AND EQUIPMENT

MACHINERY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
MACHINERY AND EQUIPMENT	NOTE 8. - MACHINERY AND EQUIPMENT December 31, 2016 December 31, 2015 Cigarette manufacturing equipment $ 3,193,580 $ 3,016,246 Office furniture, fixtures and equipment 103,945 95,361 Laboratory equipment 19,076 - 3,316,601 3,111,607 Less: accumulated depreciation 881,938 555,814 Machinery and equipment, net $ 2,434,663 $ 2,555,793 Depreciation expense was $ 326,124 319,699 230,012

EQUITY INVESTMENT AND ADVANCE

EQUITY INVESTMENT AND ADVANCE	12 Months Ended
	Dec. 31, 2016
Equity Method Investments and Joint Ventures [Abstract]
EQUITY INVESTMENT AND ADVANCE	NOTE 9. - EQUITY INVESTMENT AND ADVANCE On April 11, 2014, the Company, through its wholly-owned subsidiary, Botanical Genetics, LLC, 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 24.4 25 1,020,313 1,222,651 1,199,000 57,648 57,648 16,815 202,338 95,684 101,165

NOTES PAYABLE AND PATENT ACQUIS

NOTES PAYABLE AND PATENT ACQUISITION	12 Months Ended
	Dec. 31, 2016
Notes Payable And Patent Acquisition [Abstract]
NOTES PAYABLE AND PATENT ACQUISITION	NOTE 10. - NOTES PAYABLE AND PATENT ACQUISITION On December 22, 2014, the Company entered into a Purchase Agreement (the “Purchase 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 1,000,000 333,333 925,730 333,333 307,938 307,938 0 616,520 308,582 307,938 1,138,730 213,000

SEVERANCE LIABILITY

SEVERANCE LIABILITY	12 Months Ended
	Dec. 31, 2016
Severance Liability [Abstract]
SEVERANCE LIABILITY	NOTE 11. - SEVERANCE LIABILITY The Company recorded an accrual for severance during the fourth quarter of 2014 in the initial amount of $ 624,320 18,750 36 212,012 412,308 199,657 0 220,661 199,658

WARRANT EXCHANGE PROGRAM AND WA

WARRANT EXCHANGE PROGRAM AND WARRANTS FOR COMMON STOCK	12 Months Ended
	Dec. 31, 2016
Warrants For Common Stock [Abstract]
WARRANT EXCHANGE PROGRAM AND WARRANTS FOR COMMON STOCK	NOTE 12. - WARRANT EXCHANGE PROGRAM AND WARRANTS FOR COMMON STOCK On December 31, 2016, the Company had outstanding warrants to purchase 13,781,921 94,721 13,781,921 On January 25, 2016, warrants to purchase 67,042 2,618 6,831,115 Pursuant to the registered direct offering that closed on October 19, 2016, and discussed in Note 2, the Company issued warrants to purchase 4,250,000 shares of common stock with an exercise price of $ 1.45 3,380,000 Pursuant to the registered direct offering that closed on July 27, 2016, and discussed in Note 3, the Company issued warrants to purchase 7,043,211 1.00 1,543,210 858,000 5,500,001 3,058,000 5.5 5.5 1.21 1.25 Pursuant to the registered direct offering that closed on February 5, 2016, and discussed in Note 4, 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 5, the Company issued warrants to purchase 3,000,000 1.25 2,067,000 warrants at December 31 2016 consist of the following Warrant Description Number of Exercise 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) 94,721 $ 0.9310 August 8, 2018 August 2012 convertible NP warrants 92,244 $ 0.9060 August 8, 2018 July 2016 registered direct offering warrants 7,043,211 $ 1.0000 January 27, 2021 October 2016 registered direct offering warrants 4,250,000 $ 1.4500 April 19, 2022 Total warrants outstanding (2), (3) 13,781,921 (1) Includes anti-dilution features. (2) Includes warrants to purchase 533,000 3.9 (3) Includes warrants to purchase 312,730 2.3 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 (see Note 6 - Joint Venture, Consulting Agreement and Associated Warrants for additional information), the Company reclassified the Tranche 1A warrant liability to Capital in excess of par. The Tranche 1A warrant expired in September 2016 unexercised. 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 (29,615) Fair value at December 31, 2016 $ 58,681 The aggregate net gain (loss) as a result of the Company’s warrant liability for the years ended December 31, 2016, 2015 and 2014 amounted to $ 29,615 144,500 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) June 2015 registered direct offering warrants cancelled (3,000,000) February 2016 registered direct offering warrants cancelled (2,500,000) Warrants issued in conjunction with July 2016 registered direct offering 7,043,211 Additional warrants due to anti-dilution provisions 2,089 Warrants expired during September 2016 (2) (2,250,000) Warrants issued in conjunction with October 2016 registered direct offering 4,250,000 Warrants outstanding at December 31, 2016 13,781,921 Composition of outstanding warrants: Warrants containing anti-dilution feature 94,721 Warrants without anti-dilution feature 13,687,200 13,781,921 (1) Crede Tranche 2 Warrants and Tranche 3 Warrants are not exercisable (see Note 6 for additional information). (2) Crede Tranche 1A Warrants and Crede Tranche 1B Warrants expired unexercised on September 29, 2016.

RETIREMENT PLAN

RETIREMENT PLAN	12 Months Ended
	Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract]
RETIREMENT PLAN	NOTE 13. - RETIREMENT PLAN The Company sponsors a defined contribution plan under IRC Section 401(k). The plan covers all employees who meet the minimum eligibility requirements. Under the 401(k) plan eligible employees are allowed to make voluntary deferred salary contribution to the plan, subject to statutory limits. The Company has elected to make Safe Harbor Non-elective Contributions to the plan for eligible employees in the amount of three percent ( 3 84,499 56,208 27,485

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 14. - COMMITMENTS AND CONTINGENCIES License Agreements Under its exclusive worldwide license agreement with North Carolina State University (“NCSU”), the Company is required to pay minimum annual royalty payments, which are credited against running royalties on sales of licensed products. The minimum annual royalty for 2015 was $ 75,000 225,000 150,000 84,191 103,641 122,879 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 10,000 15,000 25,000 50,000 6,075 0 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 85,681 All payments made under the above referenced license agreement 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 years ended December 31, 2016, 2015 and 2014 were $ 447,808 156,204 149,437 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, Inc. for a license fee of $ 1,250,000 725,000 525,000 25,000 525,000 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 15,000 20,000 30,000 50,000 43,740 75,351 1,089 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 9). The Anandia Sublicense calls for an up-front fee of $ 75,000 10,000 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 expense during the years ended December 31, 2016, 2015 and 2014 amounted to $ 98,022 98,022 32,524 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 is currently in negotiations to exercise the first extension option that contains a potential annual budget of approximately $ 785,000 379,800 263,400 116,400 The Company had an R&D agreement with the University of Virginia (“UVA”) relating to nicotine biosynthesis in tobacco plants. The extended term of the R&D agreement with UVA expired on October 31, 2016. The Company incurred R&D expenses under the agreement in the amount $ 224,560 224,428 222,862 1,000,000 Lease Agreements - The Company leases a manufacturing facility and warehouse located in North Carolina on a triple net lease basis. The lease commenced on January 14, 2014, and had an initial term of twelve (12) months. The lease contains four (4) additional extensions; with one lease extension being for an additional one ( 1 October 31, 2017 amounted to approximately 146,000 127,000 98,000 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 and extended the lease for an additional one-year renewal period expiring on August 31, 2017 31,000 On November 1, 2015, the Company entered into a one-year lease for 25,000 3,750 In October of 2016, the Company exercised the three-year renewal option after the one-year term. 45,000 45,000 37,500 On May 1, 2016, the Company entered into a sublease for laboratory space in Buffalo, New York. The sublease calls for a monthly payment of $ 1,471 April 30, 2017 18,000 6,000 On September 1, 2016, the Company entered into a sublease for warehouse space in North Carolina to store and operate tobacco leaf processing equipment. The sublease calls for a monthly payment of $ 1,200 August 31, 2017 14,400 Litigation On April 26, 2016, Crede CG III, LTD. (“Crede”) filed a complaint against the Company in the United States District Court for the Southern District of New York (the “SDNY Court”) entitled Crede CG III, LTD. v. 22nd Century Group, Inc On May 19, 2016, Crede filed a motion for preliminary injunction, asking the SDNY Court to require the Company to issue 2,077,555 shares of its common stock to Crede under the exchange provision of the Tranche 1A warrant. After conducting an evidentiary hearing on this motion on June 14, 2016, the SDNY Court denied Crede’s motion and held, among other things, that Crede did not prove the potential for irreparable harm or a likelihood of success on its claim for such 2,077,555 Following such ruling, on July 11, 2016, the Company filed a motion to sever the Crede lawsuit into two separate cases, requesting all claims relating to the Tranche 1A warrant and the securities purchase agreement to stay in the SDNY Court and all claims relating to the China joint venture agreement to be transferred to the United States District Court for the Western District of New York (the “WDNY Court”), where the Company’s headquarters are located. On January 20, 2017, the SDNY Court granted the Company’s motion. On February 14, 2017, Crede voluntarily dismissed its lawsuit against the Company in the WDNY Court. On February 21, 2017, the SDNY Court granted the Company’s request to file a motion for summary judgment for the claims remaining in the SDNY Court, with all discovery in the case being deferred until after the SDNY Court conducts a hearing and issues its decision on the summary judgment motion to be filed by the Company. We believe that the claims are frivolous, meritless and that the Company has substantial legal and factual defenses to the claims. The Company has defended and intends to continue to defend against these claims vigorously.

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE	12 Months Ended
	Dec. 31, 2016
Earnings Per Common Share [Abstract]
EARNINGS PER COMMON SHARE	NOTE 15. - EARNINGS PER COMMON SHARE December 31, December 31, December 31, 2016 2015 2014 Net loss attributed to common shareholders $ (11,581,430) $ (11,031,931) $ (15,595,358) Denominator for basic earnings per share-weighted average shares outstanding 79,842,773 68,143,284 59,993,413 Effect of dilutive securities: Warrants, restricted stock and options outstanding - - - Denominator for diluted earnings per common share-weighted average shares adjusted for dilutive securities 79,842,773 68,143,284 59,993,413 Loss per common share - basic and diluted $ (0.15) $ (0.16) $ (0.26) December 31, December 31, December 31, 2016 2015 2014 Warrants 13,781,921 16,634,778 13,674,409 Restricted stock - - 250,000 Options 5,650,679 3,161,642 890,000 19,432,600 19,796,420 14,814,409

EQUITY BASED COMPENSATION

EQUITY BASED COMPENSATION	12 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
EQUITY BASED COMPENSATION	NOTE 16. - 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 year ended December 31, 2016, the Company issued stock option awards from the OIP for 2,389,037 1,821,642 20,000 For the years ended December 31, 2016, 2015 and 2014, the Company recorded compensation expense related to restricted stock and stock option awards granted under the EIP and OIP of $ 880,509 1,326,393 2,293,082 15,811 100,000 279,196 400,000 30,873 280,362 140,170 0 1,978,785 2,091,215 respectively As of December 31, 2016, unrecognized compensation expense related to non-vested restricted shares and stock options amounted to approximately $ 1,383,000 447,000 357,000 112,000 467,000 2016 2015 2014 Risk-free interest rate (weighted average) 1.31 % 1.60 % 1.80 % Expected dividend yield 0 % 0 % 0 % Expected stock price volatility 90 % 90 % 90 % Expected life of options (weighted average) 4.87 years 8.96 years 10 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. Weighted Weighted Aggregate Number of Average Contractual Intrinsic 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 2,489,037 $ 0.97 Outstanding at December 31, 2016 5,650,679 $ 1.04 7.4 years $ 875,845 Exercisable at December 31, 2016 2,711,642 $ 1.07 6.8 years $ 433,380 There were stock options granted during the years ended December 31, 2016, 2015 and 2014, to purchase a total of 2,489,037 2,221,642 300,000 0.66 0.58 2.07 1,242,110 206,500 103,250 70,000 48,300

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 17. - INCOME TAXES 2016 2015 2014 Current: Federal $ - $ - $ - State - - - Total current - - - Deferred: Federal (2,424,497) (3,372,964) (3,494,787) State 21,452 (155,352) 160,319 Total deferred (2,403,045) (3,528,316) (3,334,468) Change in valuation allowance 2,403,045 3,528,316 3,334,468 $ - $ - $ - 2016 2015 2014 Statutory federal rate (34.0) % (34.0) % (34.0) % Other items (0.2) 0.0 0.6 Derivative liability 11.9 (0.5) 8.4 Stock based compensation 1.5 3.1 2.5 State tax provision, net of federal benefit 0.1 (0.9) 1.1 Valuation allowance 20.7 32.3 21.4 Effective tax rate (benefit) provision 0.0 % 0.0 % 0.0 % 2016 2015 2014 Deferred tax assets: Net operating loss carry-forward $ 11,626,143 $ 7,745,734 $ 4,775,536 Accounts receivable reserve 3,499 3,499 - Inventory 96,934 38,707 17,713 Stock-based compensation 282,850 1,599,916 809,319 Start-up expenditures 477,917 514,680 388,130 Loss on equity investment 139,676 68,877 35,398 Severance liability 69,860 147,070 218,450 Other 21,423 9,272 6,561 12,718,302 10,127,755 6,251,107 Deferred tax liabilities: Fixed assets (316,232) (227,186) (80,251) Patents and trademarks (807,137) (767,044) (624,010) Other intangible assets (138,713) (80,349) (21,986) (1,262,082) (1,074,579) (726,247) Valuation allowance (11,456,220) (9,053,176) (5,524,860) Net deferred taxes $ - $ - $ - The Company has incurred a net operating loss (“NOL”) of approximately $ 33,700,000 ASC 740 provides guidance on the financial statement recognition and measurement for uncertain income tax positions that are taken or expected to be taken in a company’s income tax return. The Company has no uncertain tax positions as of December 31, 2016.

SELECTED QUARTERLY FINANCIAL DA

SELECTED QUARTERLY FINANCIAL DATA	12 Months Ended
	Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
SELECTED QUARTERLY FINANCIAL DATA	NOTE 18. - SELECTED QUARTERLY FINANCIAL DATA (unaudited) Three Months Ended March 31, June 30, September 30, December 31, 2016 2016 2016 2016 Revenue, net $ 3,019,056 $ 2,827,658 $ 3,097,648 $ 3,335,617 Gross (loss) profit $ 123,646 $ (140,913) $ (184,618) $ (227,814) Loss from operations $ (3,228,404) $ (2,830,830) $ (2,595,812) $ (2,732,801) Net loss $ (3,252,452) $ (2,902,354) $ (2,679,988) $ (2,746,636) Loss per common share - basic and diluted $ (0.04) $ (0.04) $ (0.03) $ (0.03) Three Months Ended March 31, June 30, September 30, December 31, 2015 2015 2015 2015 Revenue, net $ 616,138 $ 2,306,953 $ 2,667,506 $ 2,931,401 Gross (loss) profit $ (16,442) $ (293,493) $ (281,422) $ 10,795 Loss from operations $ (4,119,463) $ (2,346,736) $ (2,747,501) $ (2,830,183) Net loss $ (4,116,739) $ (1,288,703) $ (2,761,691) $ (2,864,798) Loss per common share - basic and diluted $ (0.06) $ (0.02) $ (0.04) $ (0.04)

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 19. - SUBSEQUENT EVENTS The Company’s Form S-3, universal shelf registration statement, was filed with the U.S. Securities and Exchange Commission (“SEC”) on December 30, 2016, and became effective on January 17, 2017. The universal shelf registration statement will allow, but not compel, the Company to raise up to $ 100 On January 20, 2017, the United States District Court for the Southern District of New York (the “SDNY Court”) granted the Company’s motion to sever the Crede lawsuit into two separate cases, requesting all claims relating to the Tranche 1A warrant and the securities purchase agreement to stay in the SDNY Court and all claims relating to the China joint venture agreement to be transferred to the United States District Court for the Western District of New York (the “WDNY Court”), where the Company’s headquarters are located. Additionally, on February 14, 2017, Crede voluntarily dismissed its lawsuit against the Company in the WDNY Court, determining not to pursue its claims against the Company related to the terminated China joint venture. Also, on February 21, 2017, the SDNY Court granted the Company’s request to file a motion for summary judgment for the claims remaining in the SDNY Court, with all discovery in the case being deferred until after the SDNY Court conducts a hearing and issues its decision on the summary judgment motion to be filed by the Company. Please see the Litigation section of Note 14 – Commitments and Contingencies for a detailed discussion of the Crede lawsuit.

NATURE OF BUSINESS AND SUMMAR27

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Principles of Consolidation	Principles of Consolidation -
Nature of Business	Nature of Business -
Reclassifications	Reclassifications -
Preferred stock authorized	Preferred stock authorized -
Concentration of Credit Risk	Concentration of Credit Risk
Accounts receivable	Accounts receivable 10,000
Inventory	Inventory - December 31, December 31, Inventory – tobacco leaf $ 1,936,039 $ 1,816,857 Inventory – finished goods Cigarettes and filtered cigars 340,523 342,707 Inventory – raw materials Cigarette and filtered cigar components 1,071,747 657,389 3,348,309 2,816,953 Less: inventory reserve 255,623 110,623 $ 3,092,686 $ 2,706,330
Fixed assets	Fixed assets - 3 10
Intangible Assets	Intangible Assets December 31, December 31, Intangible assets, net Patent and trademark costs $ 5,688,440 $ 5,146,559 Less: accumulated amortization 2,021,926 1,603,893 Patent and trademark costs, net 3,666,514 3,542,666 License fees, net (see Note 14) 1,450,000 1,450,000 Less: accumulated amortization 228,568 130,546 License fees, net 1,221,432 1,319,454 MSA signatory costs 2,202,000 2,202,000 License fee for predicate cigarette brand 300,000 300,000 $ 7,389,946 $ 7,364,120 Amortization expense relating to the above intangible assets for the years ended December 31, 2016, 2015 and 2014 amounted to $ 516,056 454,612 265,284 The estimated annual average amortization expense for the next five years is approximately $ 353,000 98,000
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets
Income Taxes	Income Taxes Considering 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 December 31, 2016 and 2015. The Company’s federal and state tax returns for the years ended December 31, 2013 through December 31, 2015 are currently open to audit under the statutes of limitations. There are no pending audits as of December 31, 2016.
Stock Based Compensation	Stock Based Compensation
Revenue Recognition	7,452,000 5,703,000 0 SPECTRUM MAGIC In 2010, 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. The contract was renewed in 2015 for an additional 5 years. These government research cigarettes are distributed under the Company’s mark SPECTRUM 5.0 SPECTRUM 40 242,658 329,321 SPECTRUM cigarettes delivered during the balance of 2016.
Derivatives	Derivatives
Research and Development	Research and Development
Advertising	Advertising 325,000 229,000 30,000
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	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 SUMMAR28

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Inventory, Current	Inventories at December 31, 2016 and December 31, 2015 consisted of the following: December 31, December 31, Inventory – tobacco leaf $ 1,936,039 $ 1,816,857 Inventory – finished goods Cigarettes and filtered cigars 340,523 342,707 Inventory – raw materials Cigarette and filtered cigar components 1,071,747 657,389 3,348,309 2,816,953 Less: inventory reserve 255,623 110,623 $ 3,092,686 $ 2,706,330
Schedule of Intangible Assets and Goodwill	Total intangible assets at December 31, 2016 and 2015 consist of the following: December 31, December 31, Intangible assets, net Patent and trademark costs $ 5,688,440 $ 5,146,559 Less: accumulated amortization 2,021,926 1,603,893 Patent and trademark costs, net 3,666,514 3,542,666 License fees, net (see Note 14) 1,450,000 1,450,000 Less: accumulated amortization 228,568 130,546 License fees, net 1,221,432 1,319,454 MSA signatory costs 2,202,000 2,202,000 License fee for predicate cigarette brand 300,000 300,000 $ 7,389,946 $ 7,364,120

MACHINERY AND EQUIPMENT (Tables

MACHINERY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
MACHINERY AND EQUIPMENT	Machinery and equipment at December 31, 2016 and 2015 consists of the following: December 31, 2016 December 31, 2015 Cigarette manufacturing equipment $ 3,193,580 $ 3,016,246 Office furniture, fixtures and equipment 103,945 95,361 Laboratory equipment 19,076 - 3,316,601 3,111,607 Less: accumulated depreciation 881,938 555,814 Machinery and equipment, net $ 2,434,663 $ 2,555,793

WARRANT EXCHANGE PROGRAM AND 30

WARRANT EXCHANGE PROGRAM AND WARRANTS FOR COMMON STOCK (Tables)	12 Months Ended
	Dec. 31, 2016
Warrants For Common Stock [Abstract]
Schedule Of Warrants Outstanding	Outstanding warrants at December 31 2016 consist of the following Warrant Description Number of Exercise 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) 94,721 $ 0.9310 August 8, 2018 August 2012 convertible NP warrants 92,244 $ 0.9060 August 8, 2018 July 2016 registered direct offering warrants 7,043,211 $ 1.0000 January 27, 2021 October 2016 registered direct offering warrants 4,250,000 $ 1.4500 April 19, 2022 Total warrants outstanding (2), (3) 13,781,921 (1) Includes anti-dilution features. (2) Includes warrants to purchase 533,000 3.9 (3) Includes warrants to purchase 312,730 2.3
Roll-Forward of Warrant Liability from Intitial Valuation	The following table is a roll-forward summary of the warrant liability: 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 (29,615) Fair value at December 31, 2016 $ 58,681
Warrant Activity	The following table summarizes the Company’s warrant activity since December 31, 2013: 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) June 2015 registered direct offering warrants cancelled (3,000,000) February 2016 registered direct offering warrants cancelled (2,500,000) Warrants issued in conjunction with July 2016 registered direct offering 7,043,211 Additional warrants due to anti-dilution provisions 2,089 Warrants expired during September 2016 (2) (2,250,000) Warrants issued in conjunction with October 2016 registered direct offering 4,250,000 Warrants outstanding at December 31, 2016 13,781,921 Composition of outstanding warrants: Warrants containing anti-dilution feature 94,721 Warrants without anti-dilution feature 13,687,200 13,781,921 (1) Crede Tranche 2 Warrants and Tranche 3 Warrants are not exercisable (see Note 6 for additional information). (2) Crede Tranche 1A Warrants and Crede Tranche 1B Warrants expired unexercised on September 29, 2016.

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 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, 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)	12 Months Ended
	Dec. 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 years ended December 31, 2016, 2015 and 2014: December 31, December 31, December 31, 2016 2015 2014 Net loss attributed to common shareholders $ (11,581,430) $ (11,031,931) $ (15,595,358) Denominator for basic earnings per share-weighted average shares outstanding 79,842,773 68,143,284 59,993,413 Effect of dilutive securities: Warrants, restricted stock and options outstanding - - - Denominator for diluted earnings per common share-weighted average shares adjusted for dilutive securities 79,842,773 68,143,284 59,993,413 Loss per common share - basic and diluted $ (0.15) $ (0.16) $ (0.26)
Schedule Outstanding Excluded from Computation Because they would have bee Anti-dilutive	Securities outstanding that were excluded from the computation of earnings per share for the years ended December 31, 2016, 2015 and 2014 because they would have been anti-dilutive are as follows: December 31, December 31, December 31, 2016 2015 2014 Warrants 13,781,921 16,634,778 13,674,409 Restricted stock - - 250,000 Options 5,650,679 3,161,642 890,000 19,432,600 19,796,420 14,814,409

EQUITY BASED COMPENSATION (Tabl

EQUITY BASED COMPENSATION (Tables)	12 Months Ended
	Dec. 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 years ended December 31 2016, 2015 and 2014: 2016 2015 2014 Risk-free interest rate (weighted average) 1.31 % 1.60 % 1.80 % Expected dividend yield 0 % 0 % 0 % Expected stock price volatility 90 % 90 % 90 % Expected life of options (weighted average) 4.87 years 8.96 years 10 years
Summary of All Stock Option Activity	A summary of all stock option activity since December 31, 2013 is as follows: Weighted Weighted Aggregate Number of Average Contractual Intrinsic 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 2,489,037 $ 0.97 Outstanding at December 31, 2016 5,650,679 $ 1.04 7.4 years $ 875,845 Exercisable at December 31, 2016 2,711,642 $ 1.07 6.8 years $ 433,380

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit)	The following is a summary of the components giving rise to the income tax provision (benefit) for the years ended December 31, 2016, 2015 and 2014. 2016 2015 2014 Current: Federal $ - $ - $ - State - - - Total current - - - Deferred: Federal (2,424,497) (3,372,964) (3,494,787) State 21,452 (155,352) 160,319 Total deferred (2,403,045) (3,528,316) (3,334,468) Change in valuation allowance 2,403,045 3,528,316 3,334,468 $ - $ - $ -
Schedule of Effective Income Tax Rate Reconciliation	The provision (benefit) for income tax varies from that which would be expected based on applying the statutory federal rate to pre-tax accounting loss as follows: 2016 2015 2014 Statutory federal rate (34.0) % (34.0) % (34.0) % Other items (0.2) 0.0 0.6 Derivative liability 11.9 (0.5) 8.4 Stock based compensation 1.5 3.1 2.5 State tax provision, net of federal benefit 0.1 (0.9) 1.1 Valuation allowance 20.7 32.3 21.4 Effective tax rate (benefit) provision 0.0 % 0.0 % 0.0 %
Schedule of Deferred Tax Assets and Liabilities	Individual components of deferred taxes consist of the following as of December 31: 2016 2015 2014 Deferred tax assets: Net operating loss carry-forward $ 11,626,143 $ 7,745,734 $ 4,775,536 Accounts receivable reserve 3,499 3,499 - Inventory 96,934 38,707 17,713 Stock-based compensation 282,850 1,599,916 809,319 Start-up expenditures 477,917 514,680 388,130 Loss on equity investment 139,676 68,877 35,398 Severance liability 69,860 147,070 218,450 Other 21,423 9,272 6,561 12,718,302 10,127,755 6,251,107 Deferred tax liabilities: Fixed assets (316,232) (227,186) (80,251) Patents and trademarks (807,137) (767,044) (624,010) Other intangible assets (138,713) (80,349) (21,986) (1,262,082) (1,074,579) (726,247) Valuation allowance (11,456,220) (9,053,176) (5,524,860) Net deferred taxes $ - $ - $ -

SELECTED QUARTERLY FINANCIAL 35

SELECTED QUARTERLY FINANCIAL DATA (Tables)	12 Months Ended
	Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
Quarterly Financial Information	Below is selected quarterly financial data for the years ended December 31, 2016 and 2015: Three Months Ended March 31, June 30, September 30, December 31, 2016 2016 2016 2016 Revenue, net $ 3,019,056 $ 2,827,658 $ 3,097,648 $ 3,335,617 Gross (loss) profit $ 123,646 $ (140,913) $ (184,618) $ (227,814) Loss from operations $ (3,228,404) $ (2,830,830) $ (2,595,812) $ (2,732,801) Net loss $ (3,252,452) $ (2,902,354) $ (2,679,988) $ (2,746,636) Loss per common share - basic and diluted $ (0.04) $ (0.04) $ (0.03) $ (0.03) Three Months Ended March 31, June 30, September 30, December 31, 2015 2015 2015 2015 Revenue, net $ 616,138 $ 2,306,953 $ 2,667,506 $ 2,931,401 Gross (loss) profit $ (16,442) $ (293,493) $ (281,422) $ 10,795 Loss from operations $ (4,119,463) $ (2,346,736) $ (2,747,501) $ (2,830,183) Net loss $ (4,116,739) $ (1,288,703) $ (2,761,691) $ (2,864,798) Loss per common share - basic and diluted $ (0.06) $ (0.02) $ (0.04) $ (0.04)

NATURE OF BUSINESS AND SUMMAR36

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 ($)	Sep. 30, 2015Cigarettes	Dec. 31, 2015USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Condensed Financial Statements, Captions [Line Items]
Amortization of Intangible Assets				$ 516,056	$ 454,612	$ 265,284
Sales Revenue, Goods, Net, Total	$ 329,321		$ 242,658	12,279,979	8,521,998	528,991
Allowance for Doubtful Accounts Receivable			$ 10,000	10,000	10,000
Advertising Expense				325,000	229,000	30,000
Excise and Sales Taxes				7,452,000	$ 5,703,000	$ 0
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				353,000
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				10
Minimum [Member]
Condensed Financial Statements, Captions [Line Items]
Property, Plant and Equipment, Estimated Useful Lives				3
SPECTRUM Order [Member]
Condensed Financial Statements, Captions [Line Items]
Purchase Order Received During Period | Cigarettes		5

NATURE OF BUSINESS AND SUMMAR37

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Inventory [Line Items]
Inventory - tobacco leaf	$ 1,936,039	$ 1,816,857
Inventory - finished goods
Cigarettes and filtered cigars	340,523	342,707
Inventory - raw materials
Cigarette and filtered cigar components	1,071,747	657,389
Inventory - tobacco leaf, net	3,348,309	2,816,953
Less: inventory reserve	255,623	110,623
Inventory, Net	$ 3,092,686	$ 2,706,330

NATURE OF BUSINESS AND SUMMAR38

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Intangible assets, net
Intangible assets, net	$ 7,389,946	$ 7,364,120
Patent and Trademark [Member]
Intangible assets, net
Patent and trademark costs	5,688,440	5,146,559
Less: accumulated amortization	2,021,926	1,603,893
Patent and trademark costs, net	3,666,514	3,542,666
Licensing Agreements [Member]
Intangible assets, net
Patent and trademark costs	1,450,000	1,450,000
Less: accumulated amortization	228,568	130,546
Patent and trademark costs, net	1,221,432	1,319,454
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

OCTOBER 2016 REGISTERED DIREC39

OCTOBER 2016 REGISTERED DIRECT OFFERING (Narrative) (Details) - USD ($)	1 Months Ended	12 Months Ended
	Oct. 19, 2016	Dec. 31, 2016	Dec. 31, 2015
Subsidiary, Sale of Stock [Line Items]
Stock Issued During Period, Value, New Issues			$ 5,576,083
Conversion Of Warrants Terms Of Conversion		The holders of the warrants will not have the right to exercise any portion of the warrants if the holders, together with its respective affiliates, would beneficially own in excess of 4.99% of the number of shares of the Company’s common stock (including securities convertible into common stock) outstanding immediately after the exercise; provided, however, that the holder may increase or decrease this limitation at any time, although any increase shall not be effective until the 61st day following the notice of increase and the holder may not increase this limitation in excess of 9.99%.
Common Stock [Member]
Subsidiary, Sale of Stock [Line Items]
Stock Issued During Period, Value, New Issues			$ 60
October Offering [Member]
Subsidiary, Sale of Stock [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 1.45
Fair Value of Warrants	$ 3,380,000
Warrant Expiration Term	66 months
Shares Issued, Price Per Share	$ 1.3425
Stock Issued During Period, Value, New Issues	$ 4,250,000
Proceeds from Issuance or Sale of Equity	10,707,823
October Offering [Member] | Common Stock [Member]
Subsidiary, Sale of Stock [Line Items]
Stock Issued During Period, Value, New Issues	$ 8,500,000

JULY 2016 REGISTERED DIRECT O40

JULY 2016 REGISTERED DIRECT OFFERING (Narrative) (Details) - USD ($)	1 Months Ended		12 Months Ended
	Jul. 27, 2016	Jan. 25, 2016	Dec. 31, 2015	Dec. 31, 2016	[1],[2]	Dec. 31, 2014	Dec. 31, 2013
Subsidiary, Sale of Stock [Line Items]
Stock Issued During Period, Shares, New Issues		2,618
Class of Warrant or Right, Outstanding			16,634,778	13,781,921		13,674,409	10,653,469
Common Stock [Member]
Subsidiary, Sale of Stock [Line Items]
Stock Issued During Period, Shares, New Issues			6,000,000
July Offering [Member]
Subsidiary, Sale of Stock [Line Items]
Stock Issued During Period, Shares, New Issues	7,043,211
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 1
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	1,543,210
Fair Value of Warrants	$ 858,000
Class of Warrant or Right, Outstanding	5,500,001
Class Of Warrants Or Right ,Terminated	5,500,000
Shares Issued, Price Per Share	$ 0.81
Proceeds from Issuance or Sale of Equity	$ 4,682,764
Warrant Expiration Term	5 years 6 months
July Offering [Member] | Minimum [Member]
Subsidiary, Sale of Stock [Line Items]
Class of Warrant or Right Terminated, Exercise Price	$ 1.21
July Offering [Member] | Maximum [Member]
Subsidiary, Sale of Stock [Line Items]
Class of Warrant or Right Terminated, Exercise Price	$ 1.25
July Offering [Member] | Common Stock [Member]
Subsidiary, Sale of Stock [Line Items]
Stock Issued During Period, Shares, New Issues	6,172,840
July Offering [Member] | Six Month Warrant [Member]
Subsidiary, Sale of Stock [Line Items]
Fair Value of Warrants	$ 3,058,000
[1]	Includes warrants to purchase 312,730 shares of common stock (2.3%) held by a former officer and director that have had the anti- dilution feature removed.
[2]	Includes warrants to purchase 533,000 shares of common stock (3.9%) held by officers and directors that have had the anti-dilution feature removed.

FEBRUARY 2016 REGISTERED DIRE41

FEBRUARY 2016 REGISTERED DIRECT OFFERING (Narrative) (Details) - USD ($)	Feb. 05, 2016	Jan. 25, 2016	Dec. 31, 2015
Direct Offering [Line Items]
Stock Issued During Period, Shares, New Issues		2,618
Stock Issued During Period, Value, New Issues			$ 5,576,083
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
Warrants Expiration Period	66 months
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
Stock Issued During Period, Value, New Issues			$ 60
Common Stock [Member] | February Offering [Member]
Direct Offering [Line Items]
Stock Issued During Period, Shares, New Issues	5,000,000

JUNE 2015 REGISTERED DIRECT O42

JUNE 2015 REGISTERED DIRECT OFFERING (Narrative) (Details) - USD ($)	1 Months Ended		12 Months Ended
	Jan. 25, 2016	Jun. 02, 2015	Dec. 31, 2015
Direct Offering [Line Items]
Stock Issued During Period, Shares, New Issues	2,618
Stock Issued During Period, Value, New Issues			$ 5,576,083
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 months
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
Stock Issued During Period, Value, New Issues			$ 60
Common Stock [Member] | June Offering [Member]
Direct Offering [Line Items]
Stock Issued During Period, Shares, New Issues		6,000,000

JOINT VENTURE, CONSULTING AGR43

JOINT VENTURE, CONSULTING AGREEMENT AND ASSOCIATED WARRANTS (Narrative) (Details) - USD ($)	1 Months Ended	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Issuance of Stock and Warrants for Services or Claims			$ 30,873	$ 2,259,147	$ 2,231,385
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
Other Prepaid Expense, Current				$ 1,978,785	$ 2,091,215
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 ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Manufacturing Facility [Line Items]
Other Cost and Expense, Operating	$ 0	$ 0	$ 1,176,676
General and Administrative Expense, Total	6,193,269	7,760,127	$ 8,823,534
North Carolina Manufacturing Facility [Member]
Manufacturing Facility [Line Items]
General and Administrative Expense, Total	$ 551,678	$ 607,713

MACHINERY AND EQUIPMENT (Narrat

MACHINERY AND EQUIPMENT (Narrative) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Depreciation, Total	$ 326,124	$ 319,699	$ 230,012

MACHINERY AND EQUIPMENT (Detail

MACHINERY AND EQUIPMENT (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Cigarette manufacturing equipment	$ 3,193,580	$ 3,016,246
Office furniture, fixtures and equipment	103,945	95,361
Laboratory equipment	19,076	0
Property, Plant and Equipment, Gross, Total	3,316,601	3,111,607
Less: accumulated depreciation	881,938	555,814
Machinery and equipment, net	$ 2,434,663	$ 2,555,793

EQUITY INVESTMENT AND ADVANCE (

EQUITY INVESTMENT AND ADVANCE (Narrative) (Details) - USD ($)	1 Months Ended		12 Months Ended
	Mar. 31, 2015	Sep. 15, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Sep. 08, 2016	Apr. 14, 2014	Apr. 11, 2014
Schedule of Equity Method Investments [Line Items]
Equity Method Investments			$ 1,020,313	$ 1,222,651			$ 250,000
Equity Method Investment, Realized Gain (Loss) on Disposal			(202,338)	(95,684)	$ (101,165)
Amortization of Intangible Assets			$ 516,056	454,612	265,284
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		15.00%	24.40%			25.00%		10.00%
Equity Method Investment, Realized Gain (Loss) on Disposal			$ 144,690	38,036	84,350
Amortization of Intangible Assets			$ 57,648	$ 57,648	$ 16,815
Common Stock [Member] | Anandia Laboratories, Inc [Member]
Schedule of Equity Method Investments [Line Items]
Sale of Stock, Number of Shares Issued in Transaction	377,906	150,000
Equity Method Investment Summarized Financial Information, Equity	$ 325,000	$ 394,500

NOTES PAYABLE AND PATENT ACQU48

NOTES PAYABLE AND PATENT ACQUISITION (Narrative) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 22, 2015	Dec. 23, 2014
Notes Payable And Patent Acquisition [Line Items]
Other Commitment					$ 1,213,000
Finite Lived Intangible Assets Acquired With Notes Payable	$ 0	$ 0	$ 925,730
Notes Payable, Current	307,938	308,582
Notes Payable, Noncurrent	0	307,938
Notes and Loans, Noncurrent, Total	307,938	$ 616,520
Patents [Member]
Notes Payable And Patent Acquisition [Line Items]
Other Commitment				$ 333,333	1,000,000
Other Commitment, Due in Second Year	213,000				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 ($)	3 Months Ended	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Severance Liability [Line Items]
Severance Costs	$ 624,320	$ 0	$ 0	$ 624,320
Severance Term	36 months
Accrued Severance Liabilities Current	$ 212,012	199,657	220,661	212,012
Accounts Payable and Accrued Liabilities, Noncurrent	412,308	$ 0	$ 199,658	$ 412,308
Employee Severance [Member]
Severance Liability [Line Items]
Monthly Severance Cost	$ 18,750

WARRANT EXCHANGE PROGRAM AND 50

WARRANT EXCHANGE PROGRAM AND WARRANTS FOR COMMON STOCK (Narrative) (Details) - USD ($)	Feb. 05, 2016	Oct. 19, 2016	Jul. 27, 2016	Jan. 25, 2016	Jun. 02, 2015	Dec. 31, 2016		Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Class of Warrant or Right [Line Items]
Derivative, Gain (Loss) on Derivative, Net, Total						$ 29,615		$ 144,500	$ (3,676,691)
Stock Issued During Period, Shares, New Issues				2,618
Number Of Warrants Exercised				67,042		67,042		40,000	1,247,443
Warrants Expired And Unexercised				6,831,115
Class of Warrant or Right, Outstanding						13,781,921	[1],[2]	16,634,778	13,674,409	10,653,469
Common Stock [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights						13,781,921
February Offering [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 1.21
Warrants Expiration Period	66 months
Fair Value of Warrants	$ 1,940,000
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	2,500,000
June Offering [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights					$ 1.25
Warrants Expiration Period					66 months
Fair Value of Warrants					$ 2,067,000
Class of Warrant or Right, Number of Securities Called by Warrants or Rights					3,000,000
October Offering [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 1.45
Warrants Expiration Period		66 months
Fair Value of Warrants		$ 3,380,000
Stock Issued During Period, Shares, New Issues		4,250,000
Class of Warrant or Right, Number of Securities Called by Warrants or Rights						13,781,921
July Offering [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights			$ 1
Warrants Expiration Period			5 years 6 months
Fair Value of Warrants			$ 858,000
Stock Issued During Period, Shares, New Issues			7,043,211
Class of Warrant or Right, Number of Securities Called by Warrants or Rights			1,543,210
Class of Warrant or Right, Outstanding			5,500,001
Class Of Warrants Or Right ,Terminated			5,500,000
July Offering [Member] | Minimum [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right Terminated, Exercise Price			$ 1.21
July Offering [Member] | Maximum [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right Terminated, Exercise Price			$ 1.25
July Offering [Member] | Six Month Warrant [Member]
Class of Warrant or Right [Line Items]
Fair Value of Warrants			$ 3,058,000
Officers And Directors [Member]
Class of Warrant or Right [Line Items]
Percentage of Warrants Outstanding						3.90%
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						2.30%
Class of Warrant or Right, Number of Securities Called by Warrants or Rights						312,730
Warrant [Member] | July Offering [Member]
Class of Warrant or Right [Line Items]
Stock Issued During Period, Shares, New Issues			7,043,211
Class of Warrant or Right, Number of Securities Called by Warrants or Rights			1,543,210
Class of Warrant or Right, Outstanding			5,500,001
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						94,721
[1]	Includes warrants to purchase 312,730 shares of common stock (2.3%) held by a former officer and director that have had the anti- dilution feature removed.
[2]	Includes warrants to purchase 533,000 shares of common stock (3.9%) held by officers and directors that have had the anti-dilution feature removed.

WARRANT EXCHANGE PROGRAM AND 51

WARRANT EXCHANGE PROGRAM AND WARRANTS FOR COMMON STOCK (Outstanding Warrants) (Details) - $ / shares		12 Months Ended
		Dec. 31, 2016		Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Class of Warrant or Right [Line Items]
Number of warrants		13,781,921	[1],[2]	16,634,778	13,674,409	10,653,469
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	[3]	94,721
Exercise Price	[3]	$ 0.931
Expiration	[3]	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
July 2016 Registered Direct Offering Warrants [Member]
Class of Warrant or Right [Line Items]
Number of warrants		7,043,211
Exercise Price		$ 1
Expiration		Jan. 27, 2021
October 2016 registered direct offering warrants [Member]
Class of Warrant or Right [Line Items]
Number of warrants		4,250,000
Exercise Price		$ 1.4500
Expiration		Apr. 19, 2022
[1]	Includes warrants to purchase 312,730 shares of common stock (2.3%) held by a former officer and director that have had the anti- dilution feature removed.
[2]	Includes warrants to purchase 533,000 shares of common stock (3.9%) held by officers and directors that have had the anti-dilution feature removed.
[3]	Includes anti-dilution features.

WARRANT EXCHANGE PROGRAM AND 52

WARRANT EXCHANGE PROGRAM AND WARRANTS FOR COMMON STOCK (Roll-Forward of Warrant Liability from Initial Valuation) (Details) - USD ($)	12 Months Ended
	Dec. 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	$ 58,681	$ 2,898,296	$ 3,042,846	$ 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
Reclassification of warrant liability to capital in excess of par	(2,810,000)
Gain as a result of change in fair value	$ (29,615)	$ (144,550)
Loss as a result of change in fair value			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

WARRANT EXCHANGE PROGRAM AND 53

WARRANT EXCHANGE PROGRAM AND WARRANTS FOR COMMON STOCK (Warrant Activity) (Details) - shares		1 Months Ended	12 Months Ended
		Jan. 25, 2016	Dec. 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
Warrants issued in conjunction with consulting agreement						4,250,000
Warrants issued in conjunction with registered direct offering			2,500,000		3,000,000
Unexercisable warrants	[1]		(2,000,000)
Warrants exercised		(67,042)	(67,042)		(40,000)	(1,247,443)
Warrants expired			(6,831,115)
Additional warrants due to anti-dilution provisions			2,089		369	18,383
Warrant outstanding ending balance			13,781,921	[2],[3]	16,634,778	13,674,409
Composition of outstanding warrants:
Warrants containing anti-dilution feature			94,721
Warrants without anti-dilution feature			13,687,200
Warrant outstanding and exercisable ending balance			13,781,921
June 2015 Offering [Member]
Composition of outstanding warrants:
Warrants Cancelled In Registered Direct Offering			(3,000,000)
February 2016 Offering [Member]
Composition of outstanding warrants:
Warrants Cancelled In Registered Direct Offering			(2,500,000)
July 2016 Offering [Member]
Class of Warrant or Right [Line Items]
Warrants issued in conjunction with registered direct offering			7,043,211
September 2016 Offering [Member]
Class of Warrant or Right [Line Items]
Number Of Warrants Exercised Two	[4]		(2,250,000)
October 2016 Offering [Member]
Class of Warrant or Right [Line Items]
Warrants issued in conjunction with registered direct offering			4,250,000
[1]	Crede Tranche 2 Warrants and Tranche 3 Warrants are not exercisable (see Note 6 for additional information).
[2]	Includes warrants to purchase 312,730 shares of common stock (2.3%) 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 (3.9%) held by officers and directors that have had the anti-dilution feature removed.
[4]	Crede Tranche 1A Warrants and Crede Tranche 1B Warrants expired unexercised on September 29, 2016.

RETIREMENT PLAN (Narrative) (De

RETIREMENT PLAN (Narrative) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Funded Percentage	3.00%
Defined Benefit Plan, Contributions by Employer	$ 84,499	$ 56,208	$ 27,485

COMMITMENTS AND CONTINGENCIES55

COMMITMENTS AND CONTINGENCIES (Narrative) (Details)	Dec. 08, 2015USD ($)	Nov. 01, 2015USD ($)ft²	Feb. 10, 2014USD ($)	Sep. 01, 2016USD ($)	May 01, 2016USD ($)	Sep. 28, 2015USD ($)	Sep. 15, 2014USD ($)	Aug. 27, 2014USD ($)	Aug. 22, 2014USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	May 19, 2016shares
Other Commitments [Line Items]
Annual minimum royalty payments										$ 225,000	$ 75,000
Milestone payment upon approval of a product										150,000
Research and Development Expense, Total										2,340,958	1,571,365	$ 1,216,483
License Costs			$ 85,681							0	0	246,434
Amortization of Other Deferred Charges										516,056	454,612	265,284
Lease Payments										146,000	127,000	98,000
Minimum Royalty Fee Payments Due In Year Four										15,000
Operating Leases, Future Minimum Payments Due, Next Twelve Months										156,000
Operating Leases, Future Minimum Payments, Due in Two Years										169,000
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, Rent Expense, Minimum Rentals		$ 3,750
Land Subject to Ground Leases | ft²		25,000
Lessee Leasing Arrangements, Operating Leases, Term of Contract										1 year
Minimum Annual Royalties In Year Five										$ 25,000
Minimum Annual Royalties After Year Five										$ 50,000
Minimum Annual Royalties In Year Three	$ 10,000
Litigation Settlement Shares To Be Issued | shares													2,077,555
Lease Expiration Date										Oct. 31, 2017
Research and Development Arrangement [Member]
Other Commitments [Line Items]
Long-term Purchase Commitment, Amount						$ 785,000
University of Virginia [Member]
Other Commitments [Line Items]
Research and Development Expense, Total										$ 224,560	224,428	222,862
Research and Development Arrangement, Investment Amount										1,000,000
Payment One [Member]
Other Commitments [Line Items]
Research and Development Arrangement, Contract to Perform for Others, Costs Incurred, Gross										379,800
Payment Two [Member]
Other Commitments [Line Items]
Research and Development Arrangement, Contract to Perform for Others, Costs Incurred, Gross										263,400	116,400
Office space in Clarence, New York [Member]
Other Commitments [Line Items]
Operating Leases, Future Minimum Payments, Due in Two Years										$ 31,000
Lease Expiration Date										Aug. 31, 2017
Warehouse Space in North Carolina [Member]
Other Commitments [Line Items]
Annual minimum royalty payments				$ 1,200
Operating Leases, Future Minimum Payments Due, Next Twelve Months		$ 45,000
Operating Leases, Future Minimum Payments, Due in Two Years		45,000
Operating Leases, Future Minimum Payments, Due in Three Years		$ 37,500
Operating Leases, Future Minimum Payments, Remainder of Fiscal Year				$ 14,400
Lease Expiration Date				Aug. 31, 2017
Laboratory space in Buffalo [Member]
Other Commitments [Line Items]
Annual minimum royalty payments					$ 1,471
Operating Leases, Future Minimum Payments Due, Next Twelve Months					18,000
Operating Leases, Future Minimum Payments, Due in Two Years					$ 6,000
Lease Expiration Date					Apr. 30, 2017
Licensing Agreements [Member]
Other Commitments [Line Items]
Research and Development Expense, Total			$ 162,408
Licensing Agreements One [Member]
Other Commitments [Line Items]
Research and Development Expense, Total										$ 447,808	156,204	149,437
License Costs	$ 150,000							$ 125,000
License Maintenance Fees Due Current										15,000
Minimum Royalty Fee Payments Due In Year Five										30,000
Minimum Royalty Fee Payments Due Thereafter										50,000
Capitalized Patent Costs Gross										43,740	75,351	1,089
Minimum Royalty Fee Payments Due In Year Three										20,000
Patents [Member]
Other Commitments [Line Items]
Capitalized Patent Costs Gross										84,191	103,641	122,879
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										98,022	98,022	$ 32,524
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 CONTINGENCIES56

COMMITMENTS AND CONTINGENCIES (Future Minimum Lease Payments) (Details)	Dec. 31, 2016USD ($)
Other Commitments [Line Items]
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								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net loss attributed to common shareholders	$ (2,746,636)	$ (2,679,988)	$ (2,902,354)	$ (3,252,452)	$ (2,864,798)	$ (2,761,691)	$ (1,288,703)	$ (4,116,739)	$ (11,581,430)	$ (11,031,931)	$ (15,595,358)
Denominator for basic earnings per share-weighted average shares outstanding									79,842,773	68,143,284	59,993,413
Effect of dilutive securities:
Warrants, restricted stock and options outstanding									0	0	0
Denominator for diluted earnings per common share-weighted average shares adjusted for dilutive securities									79,842,773	68,143,284	59,993,413
Loss per common share - basic and diluted	$ (0.03)	$ (0.03)	$ (0.04)	$ (0.04)	$ (0.04)	$ (0.04)	$ (0.02)	$ (0.06)	$ (0.15)	$ (0.16)	$ (0.26)

EARNINGS PER COMMON SHARE (Anti

EARNINGS PER COMMON SHARE (Anti-Dilutive Securities Outstanding Excluded from Computation) (Details) - shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities outstanding but excluded from computation of earnings per share	19,432,600	19,796,420	14,814,409
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities outstanding but excluded from computation of earnings per share	13,781,921	16,634,778	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	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	5,650,679	3,161,642	890,000

EQUITY BASED COMPENSATION (Narr

EQUITY BASED COMPENSATION (Narrative) (Details) - USD ($)	Apr. 12, 2014	Mar. 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Oct. 21, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity based employee compensation expense			$ 880,509	$ 1,326,393	$ 2,293,083
Unrecognized compensation expense related to non-vested restricted shares and stock option			$ 1,383,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value			$ 0.66	$ 0.58	$ 2.07
Proceeds from Stock Options Exercised			$ 0	$ 0	$ 48,300
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period					(70,000)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			2,489,037	2,221,642	300,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value			$ 1,242,110	$ 206,500	$ 103,250
Share-based Compensation, Total			880,509	1,326,393	2,293,083
Consulting Agreement [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity based employee compensation expense			0	1,978,785	2,091,215
Share-based Compensation, Total			$ 0	$ 1,978,785	$ 2,091,215
Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period					(70,000)
Omnibus Incentive Plan [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			2,389,037
Stock Issued During Period, Shares, Restricted Stock Award, Gross				1,821,642
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						$ 112,000	$ 357,000	$ 447,000
Third Party [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity based employee compensation expense			$ 30,873	$ 280,362	$ 140,170
Restricted shares awarded vested immediately			15,811	279,196
Share-based Compensation, Total			$ 30,873	$ 280,362	$ 140,170
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			$ 467,000
Employee Stock Option [Member] | Third Party [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted shares awarded vested immediately			100,000	400,000

EQUITY BASED COMPENSATION (Sche

EQUITY BASED COMPENSATION (Schedule of Fair Value Assumptions) (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Risk-free interest rate (weighted average)	1.31%	1.60%	1.80%
Expected dividend yield	0.00%	0.00%	0.00%
Expected stock price volatility	90.00%	90.00%	90.00%
Expected life of options (weighted average)	4 years 10 months 13 days	8 years 11 months 16 days	10 years

EQUITY BASED COMPENSATION (Summ

EQUITY BASED COMPENSATION (Summary of All Stock Option Activity) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Number of Options
Options Outstanding, Beginning of Period	3,161,642	890,000	660,000
Reinstated		50,000
Granted	2,489,037	2,221,642	300,000
Exercised			(70,000)
Options Outstanding, End of Period	5,650,679	3,161,642	890,000
Exercisable, End of Period	2,711,642
Weighted Average Exercise Price
Options Outstanding, Beginning of Period	$ 1.1	$ 1.38	$ 0.74
Reinstated		0.69
Granted	0.97	1	2.61
Exercised			0.69
Options Outstanding, End of Period	1.04	$ 1.1	$ 1.38
Exercisable, End of Period	$ 1.07
Weighted Average Remaining Contractual Term
Options Outstanding, End of Period	7 years 4 months 24 days
Exercisable, End of Period	6 years 9 months 18 days
Aggregate Intrinsic Value
Options Outstanding, End of Period	$ 875,845
Exercisable, End of Period	$ 433,380

INCOME TAXES (Narrative) (Detai

INCOME TAXES (Narrative) (Details)	Dec. 31, 2016USD ($)
Net operating loss carry forwards	$ 33,700,000

INCOME TAXES (Schedule of Provi

INCOME TAXES (Schedule of Provision (Benefit) for Income Taxes) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Current:
Federal	$ 0	$ 0	$ 0
State	0	0	0
Total current	0	0	0
Deferred:
Federal	(2,424,497)	(3,372,964)	(3,494,787)
State	21,452	(155,352)	160,319
Total deferred	(2,403,045)	(3,528,316)	(3,334,468)
Change in valuation allowance	2,403,045	3,528,316	3,334,468
Total income tax provision (benefit)	$ 0	$ 0	$ 0

INCOME TAXES (Schedule of statu

INCOME TAXES (Schedule of statutory federal rate to pre-tax accounting loss) (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Statutory federal rate	(34.00%)	(34.00%)	(34.00%)
Other items	(0.20%)	0.00%	0.60%
Derivative liability	11.90%	(0.50%)	8.40%
Stock based compensation	1.50%	3.10%	2.50%
State tax provision, net of federal benefit	0.10%	(0.90%)	1.10%
Valuation allowance	20.70%	32.30%	21.40%
Effective tax rate (benefit) provision	0.00%	0.00%	0.00%

INCOME TAXES (Schedule of Defer

INCOME TAXES (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Deferred tax assets:
Net operating loss carry-forward	$ 11,626,143	$ 7,745,734	$ 4,775,536
Accounts receivable reserve	3,499	3,499	0
Inventory	96,934	38,707	17,713
Stock-based compensation	282,850	1,599,916	809,319
Start-up expenditures	477,917	514,680	388,130
Loss on equity investment	139,676	68,877	35,398
Severance liability	69,860	147,070	218,450
Other	21,423	9,272	6,561
Total deferred tax assets	12,718,302	10,127,755	6,251,107
Deferred tax liabilities:
Fixed assets	(316,232)	(227,186)	(80,251)
Patents and trademarks	(807,137)	(767,044)	(624,010)
Other intangible assets	(138,713)	(80,349)	(21,986)
Total deferred tax liabilities	(1,262,082)	(1,074,579)	(726,247)
Valuation allowance	(11,456,220)	(9,053,176)	(5,524,860)
Net deferred taxes	$ 0	$ 0	$ 0

SELECTED QUARTERLY FINANCIAL 66

SELECTED QUARTERLY FINANCIAL DATA (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenue, net	$ 3,335,617	$ 3,097,648	$ 2,827,658	$ 3,019,056	$ 2,931,401	$ 2,667,506	$ 2,306,953	$ 616,138
Gross (loss) profit	(227,814)	(184,618)	(140,913)	123,646	10,795	(281,422)	(293,493)	(16,442)	$ (429,699)	$ (580,562)	$ 30,555
Loss from operations	(2,732,801)	(2,595,812)	(2,830,830)	(3,228,404)	(2,830,183)	(2,747,501)	(2,346,736)	(4,119,463)	(11,387,847)	(12,043,883)	(11,767,364)
Net loss	$ (2,746,636)	$ (2,679,988)	$ (2,902,354)	$ (3,252,452)	$ (2,864,798)	$ (2,761,691)	$ (1,288,703)	$ (4,116,739)	$ (11,581,430)	$ (11,031,931)	$ (15,595,358)
Loss per common share - basic and diluted	$ (0.03)	$ (0.03)	$ (0.04)	$ (0.04)	$ (0.04)	$ (0.04)	$ (0.02)	$ (0.06)	$ (0.15)	$ (0.16)	$ (0.26)

SUBSEQUENT EVENTS (Narrative) (

SUBSEQUENT EVENTS (Narrative) (Details) $ in Millions	Jan. 17, 2020USD ($)
Scenario, Forecast [Member]
Subsequent Event [Line Items]
Shares capital amount of Authorized	$ 100