BBHC (TRNX) 10-K 31 Mar 17 2016 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Mar. 28, 2017	Jun. 30, 2016
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
Entity Registrant Name	MAGNEGAS CORP
Entity Central Index Key	1,353,487
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	Smaller Reporting Company
Entity Public Float			$ 23,200,000
Trading Symbol	MNGA
Entity Common Stock, Shares Outstanding		59,597,531

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Current Assets
Cash	$ 1,616,410	$ 5,319,869
Accounts receivable, net of allowance for doubtful accounts of $145,931 and $109,568, respectively	442,555	373,006
Inventory, net	1,615,933	2,362,014
Prepaid and other current assets	226,305	320,431
Total Current Assets	3,901,203	8,375,320
Property, equipment and leasehold improvements, net of accumulated depreciation and amortization of $1,474,944 and $1,467,123, respectively	6,402,931	6,004,990
Intangible assets, net of accumulated amortization of $401,277 and $345,382, respectively	437,121	493,016
Investment in joint ventures, net	0	754,601
Security deposits	26,636	24,113
Goodwill	2,108,781	2,108,781
Total Assets	12,876,672	17,760,821
Current Liabilities
Accounts payable	416,247	425,294
Accrued expenses	276,612	504,855
Deferred revenue and customer deposits	25,000	412,500
Capital lease, current	9,328	7,891
Derivative liabilities	7,700,585	1,241,841
Total Current Liabilities	8,427,772	2,592,381
Note payable	520,000	520,000
Capital lease, net of current	25,317	32,177
Senior convertible debenture, net of debt discount of $811,000	75,000	0
Total Liabilities	9,048,089	3,144,558
Commitments and Contingencies
Stockholders' Equity
Preferred stock: $0.001 par; 10,000,000 authorized; 1,000,000 issued and outstanding	1,000	1,000
Common stock: $0.001 par; 90,000,000 authorized; 58,040,267 and 45,599,534 issued and outstanding, respectively	58,040	45,599
Additional paid-in capital	57,328,005	50,658,216
Accumulated deficit	(53,558,480)	(36,088,552)
Total Stockholders' Equity	3,828,565	14,616,263
Total Liabilities and Stockholders' Equity	$ 12,876,672	$ 17,760,821

Consolidated Balance Sheets _Pa

Consolidated Balance Sheets [Parenthetical] - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Allowance for doubtful accounts (in dollars)	$ 145,931	$ 109,568
Accumulated depreciation (in dollars)	1,474,944	1,467,123
Accumulated amortization (in dollars)	$ 401,277	$ 345,382
Preferred Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	1,000,000	1,000,000
Preferred Stock, Shares Outstanding	1,000,000	1,000,000
Common Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.001	$ 0.001
Common Stock, Shares Authorized	90,000,000	90,000,000
Common Stock, Shares, Issued	58,040,267	45,599,534
Common Stock, Shares, Outstanding	58,040,267	45,599,534
Debt Instrument, Unamortized Discount	$ 811,000	$ 811,000

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Revenues:	$ 3,552,245	$ 2,430,647
Cost of Revenues	2,018,453	1,474,361
Gross Profit	1,533,792	956,286
Operating Expenses:
Selling, general and administration	10,478,676	8,697,149
Research and development	678,546	342,350
Impairment of joint ventures	806,716	0
Loss on sale and disposal of property and equipment	1,049,305	483,630
Depreciation and amortization	650,887	558,131
Total Operating Expenses	13,664,130	10,081,260
Operating Loss	(12,130,338)	(9,124,974)
Other Income and (Expense):
Interest	(51,687)	(28,777)
Loss on modification of warrants	(2,897,291)	0
Excess fair value of warrants issued over related debt	(2,622,080)	0
Non-cash Interest, amortization of debt discount	(189,000)	0
Other income	49,842	12,253
Change in fair value of derivative liability	370,626	(729,666)
Total Other Expense	(5,339,590)	(746,190)
Net Loss	$ (17,469,928)	$ (9,871,164)
Net Loss per share:
Basic and diluted	$ (0.35)	$ (0.25)
Weighted average common shares:
Basic and diluted	49,687,704	39,947,837

Consolidated Statement of Chang

Consolidated Statement of Changes in Stockholders' Equity - USD ($)	Total	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]
Balance at Dec. 31, 2014	$ 16,181,884	$ 1,002	$ 36,692	$ 42,361,578	$ (26,217,388)
Balance (in shares) at Dec. 31, 2014		1,002,000	36,691,495
Common shares issued for services	1,201,241		$ 1,368	1,199,873
Common shares issued for services (in Shares)			1,369,483
Amortization of stock based compensation	508,570			508,570
Common shares issued for the exercise of warrants	6,672,207		$ 5,539	6,666,668
Common shares issued for the exercise of warrants (in shares)			5,538,556
Offering cost	(76,475)			(76,475)
Preferred shares converted to common stock	0	$ (2)	$ 2,000	(1,998)
Preferred shares converted to common stock (in shares)		(2,000)	2,000,000
Net loss	(9,871,164)				(9,871,164)
Balance at Dec. 31, 2015	14,616,263	$ 1,000	$ 45,599	50,658,216	(36,088,552)
Balance (in shares) at Dec. 31, 2015		1,000,000	45,599,534
Common stock and warrants issued for cash proceeds, net	2,785,287		$ 1,020	2,784,267
Common stock and warrants issued for cash proceeds, net (in shares)			1,020,408
Common shares issued for services	1,109,500		$ 1,649	1,107,851
Common shares issued for services (in Shares)			1,648,834
Amortization of stock based compensation	346,906			346,906
Prefunded warrants issued for cash, net	2,540,821			2,540,821
Reclassification of warrants to derivative liability due to tainting of warrants	(5,396,350)			(5,396,350)
Common shares issued for the exercise of warrants	95,715		$ 9,572	86,143
Common shares issued for the exercise of warrants (in shares)			9,571,491
Reclassification of derivative liability to equity from the exercise of warrants and issuance of shares for convertible debt	5,086,351			5,086,351
Common shares issued for the settlement of debt	114,000		$ 200	113,800
Common shares issued for the settlement of debt (in shares)			200,000
Net loss	(17,469,928)				(17,469,928)
Balance at Dec. 31, 2016	$ 3,828,565	$ 1,000	$ 58,040	$ 57,328,005	$ (53,558,480)
Balance (in shares) at Dec. 31, 2016		1,000,000	58,040,267

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Cash Flows from Operating Activities:
Net loss	$ (17,469,928)	$ (9,871,164)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	650,887	558,131
Stock based compensation	346,906	508,570
Stocks issued for services	1,109,500	1,201,241
Provision for bad debt	36,363	5,540
Provision for slow moving inventory	175,000	0
Loss on sale and disposal of property and equipment	1,049,305	483,630
Provision for impairment of investment in joint ventures	806,716	0
Loss on modification of warrants	2,897,291	0
Excess fair value of warrants over related debt	2,622,080	0
Non-cash interest, amortization of debt discount	189,000	0
Change in fair value of derivative liability	(370,626)	729,666
Changes in operating assets and liabilities:
Accounts receivable	(105,912)	(131,762)
Inventory	(45,752)	(86,342)
Prepaid and other current assets	94,126	(20,366)
Accounts payable	(9,047)	265,676
Accrued expenses	(228,225)	468,499
Deferred revenue and customer deposits	(387,500)	355,834
Net cash used in operating activities	(8,639,816)	(5,532,847)
Cash Flows from Investing Activities
Purchase of property and equipment	(1,445,855)	(1,157,113)
Security deposit	(2,523)	(2,466)
Investment in joint ventures	(52,115)	(85,588)
Proceeds from sale of property and equipment	20,450	400,410
Net cash used in investing activities	(1,480,043)	(844,757)
Cash Flows from Financing Activities
Principle payments on notes payable	0	40,067
Net proceeds from sale of stock, net	2,785,287	0
Cash paid for capital leases	(5,423)	0
Net proceeds from senior convertible debenture, net	1,000,000	0
Net proceeds from prefunded warrants, net	2,540,821	0
Cash proceeds from exercise of warrants	95,715	6,595,732
Net cash provided by financing activities	6,416,400	6,635,799
Net decrease in cash	(3,703,459)	258,195
Cash, beginning of year	5,319,869	5,061,674
Cash, end of year	1,616,410	5,319,869
Supplemental Disclosure of Non-Cash Investing and Financing Activities:
Issuance of common stock for the settlement of senior convertible debentures	114,000	0
Reclassification of equity instruments to derivative liabilities due to tainting of warrants	(5,396,350)
Reclassification of derivative liabilities to equity from the exercise of warrants and issuance of shares for convertible debt	5,086,351	0
Reclassification of inventory (work in progress) to property and equipment	631,833	0
Issuance of equity instruments attached to senior convertible debentures	$ 1,000,000	$ 0

ORGANIZATION AND DESCRIPTION OF

ORGANIZATION AND DESCRIPTION OF BUSINESS	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Business Description and Basis of Presentation [Text Block]	NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS MagneGas Corporation (the “Company”) was organized in the State of Delaware on December 9, 2005. The Company is an alternative energy company that creates a system that produces hydrogen based fuel through the gasification of liquid and liquid waste. Management has developed a process which gasifies various types of liquids and liquid wastes through a proprietary plasma arc system. A byproduct of this process is an alternative to natural gas currently sold in the metalworking market as a cutting fuel. The Company produces gas bottled in cylinders for the purpose of distribution to the metalworking market as an alternative to acetylene. Additionally, the Company markets for sale its proprietary plasma arc technology for the processing of liquid waste (the “Plasma Arc Flow” or “Plasma Arc Flow System”), is developing ancillary uses of its MagneGas2® fuel for co-combustion, and has a gas distribution company that sells various types of industrial fuels and supplies. Through the course of its business development, the Company has established a retail and wholesale platform to sell its fuel for use in the metalworking and manufacturing industries. The Company has also established a network of brokers to sell its Plasma Arc Flow equipment internationally.

GOING CONCERN AND MANAGEMENTS_

GOING CONCERN AND MANAGEMENTS’ PLAN	12 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Substantial Doubt about Going Concern [Text Block]	NOTE 2 - GOING CONCERN AND MANAGEMENTS’ PLAN As of December 31, 2016, the Company had cash of approximately $ 1,616,000 17.5 8.6 4.5 53.6 Historically, the Company has financed its operations through equity and debt financing transactions and expects to continue incurring operating losses for the foreseeable future. The Company’s plans and expectations for the next 12 months include raising additional capital to help fund commercial operations, including product development. The Company utilizes cash in its operations of approximately $ 670,000 775,000 If these sources do not provide the capital necessary to fund the Company’s operations during the next twelve months from the date of filing this report, the Company may need to curtail certain aspects of its operations or expansion activities, consider the sale of its assets, or consider other means of financing. The Company can give no assurance that it will be successful in implementing its business plan and obtaining financing on terms advantageous to the Company or that any such additional financing would be available to the Company.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Significant Accounting Policies [Text Block]	NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Use of Estimates The Company prepares its financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”). These principals require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during each of the reporting period. Actual results could differ from those estimates. The Company’s significant estimates include allowances for slow-moving inventory, fair value of its derivative financial instruments, accounting of joint ventures, valuation allowance for deferred tax assets, the allowance of doubtful accounts, stock based compensation and the impairment of long-lived assets, useful lives of property and equipment and goodwill. Principles of Consolidation The consolidated financial statements have been prepared using the accounting records of MagneGas and its wholly owned subsidiary Equipment Sales and Services, Inc. and all material intercompany balances and transactions have been eliminated. Cash and cash equivalents consist of cash, checking accounts, money market accounts and temporary investments with original maturities of three months or less when purchased. As of December 31, 2016 and 2015 the Company had no cash equivalents. Accounts receivable consist of amounts due for the delivery of MagneGas2® sales to customers with payment terms of generally 30 days. An allowance for doubtful accounts is established for any amounts that may not be recoverable, which is based on an analysis of the Company’s customer credit worthiness, historical estimates, and current economic trends. Receivables are determined to be past due, based on payment terms of original invoices. The Company does not typically charge interest on past due receivables. Inventory is stated at the lower of standard cost or market, which approximates actual cost. Cost is determined using the first-in, first-out method. Inventory is comprised of spare parts; consumables used in the production of gas, regulators and tips and work in process. Estimates of lower of cost or market are based upon economic conditions, historical sales quantities and patterns, and in some cases, the specific risk of loss on specifically identified inventories. The Company evaluates inventories on a regular basis to identify inventory on hand that may be slow moving. Inventory that is in excess of current and projected use is reduced by an allowance to the level that approximates its estimate of future demand. As of December 31, 2016, the Company has a reserve of $ 175,000 Property and equipment are recorded at cost less accumulated depreciation and amortization. The Company depreciates its property and equipment for financial reporting purposes using the straight-line method over estimated useful life of the asset ( 3 15 Intangible assets primarily consist of intellectual property which is amortized ratably over a life of the asset which ranges from 15 20 The Company records goodwill and other indefinite-lived assets in connection with business combinations. Goodwill, which represents the excess of acquisition cost over the fair value of the net tangible and intangible assets of acquired companies, is not amortized. Indefinite-lived assets are stated at fair value as of the date acquired in a business combination. The Company assesses the recoverability of goodwill and certain indefinite-lived intangible assets annually in the fourth quarter and between annual tests if an event occurs or circumstances change that would indicate the carrying amount may be impaired. Impairment testing for goodwill is done at a reporting unit level. Under Financial Accounting Standards Board (“FASB”) guidance for goodwill and intangible assets, a reporting unit is defined as an operating segment or one level below the operating segment, called a component. However, two or more components of an operating segment will be aggregated and deemed a single reporting unit if the components have similar economic characteristics. The Company operates as one reporting unit. Authoritative accounting guidance allows the Company to first assess qualitative factors to determine whether it is necessary to perform the more detailed two-step quantitative goodwill impairment test. The Company performs the quantitative test if its qualitative assessment determined it is more likely than not that a reporting unit’s fair value is less than its carrying amount. The Company may elect to bypass the qualitative assessment and proceed directly to the quantitative test for any reporting unit or asset. The quantitative goodwill impairment test, if necessary, is a two-step process. The first step is to identify the existence of a potential impairment by comparing the fair value of a reporting unit (the estimated fair value of a reporting unit is calculated using a discounted cash flow model) with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, the reporting unit’s goodwill is considered not to be impaired and performance of the second step of the quantitative goodwill impairment test is unnecessary. However, if the carrying amount of a reporting unit exceeds its fair value, the second step of the quantitative goodwill impairment test is performed to measure the amount of impairment loss to be recorded, if any. The second step of the quantitative goodwill impairment test compares the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill. If the carrying amount of the reporting unit’s goodwill exceeds its implied fair value, an impairment loss is recognized in an amount equal to that excess. The implied fair value of goodwill is determined using the same approach as employed when determining the amount of goodwill that would be recognized in a business combination. That is, the fair value of the reporting unit is allocated to all of its assets and liabilities as if the reporting unit had been acquired in a business combination and the fair value was the purchase price paid to acquire the reporting unit. For the 2016 annual goodwill and certain indefinite-lived intangible assets impairment tests, the Company elected to bypass the qualitative assessment and proceeded directly to the quantitative analysis using the market price of the stock and determined that no impairment was deemed to exist as of December 31, 2016. The Company assesses the recoverability of its long-lived assets, including property and equipment and intangible assets, annually and when there are indications that the assets might be impaired. When evaluating assets for potential impairment, the Company compares the carrying value of the asset to its estimated undiscounted future cash flows. If an asset’s carrying value exceeds such estimated cash flows (undiscounted and with interest charges), the Company records an impairment charge for the difference between the carrying value and the fair value of the asset. Based on its assessments, the Company did not incur an impairment for the year ended December 31, 2016 or 2015. The Company recognizes revenue upon shipment, provided that persuasive evidence of an arrangement exists, there are no uncertainties regarding customer acceptance, the sales price is fixed or determinable, and collectability is deemed probable. Revenues are generally derived from four revenue streams as follows: (1) the sale of its MagneGas2® fuel for metal cutting, (2) the sale equipment under MagneTote, and (3) the sale of its Plasma Arc Flow units. Additionally, the Company also recognizes revenue from territorial license arrangements, and through the sales of metal cutting gases and related products. The Company recognizes revenue ratably, based on the amounts paid or values received, over the term of the licensing agreement. The Company, on occasion, may recognize revenue under a bill-and-hold arrangement. Under a bill-and-hold arrangement revenue is recognized when the product is manufactured, completed, invoiced and segregated from the seller’s other inventory so that it is not subjected to being used to fill other orders. Upon invoicing under this arrangement, ownership has passed to the buyer with no right of return such that the earnings process is complete. The customer must request a bill-and-hold arrangement (preferably in writing), must commit to the purchase and the delivery date must be fixed. During the year ended December 31, 2016, the Company recognized $ 775,000 The Company also enters into sales transactions whereby customer orders contain multiple deliverables and reports its multiple deliverable arrangements under ASC 605-25 “Revenue Arrangements with Multiple Deliverables” (“ASC-605-25”). These multiple deliverable arrangements primarily consist of the following deliverables: the Company’s MagneGas units, design, configuration, installation and training services. In situations where the Company bundles all or a portion of the separate elements, Vendor Specific Objective Evidence (“VSOE”) is determined based on prices when sold separately. For the year ended December 31, 2016, multiple deliverable arrangements was immaterial. The Company accounts for options granted to employees by measuring the award of equity instruments based upon the fair value of the award on the date of grant. The fair value of that award is then ratably recognized as expense over the period during which the recipient is required to provide services in exchange for that award. Options and warrants granted to consultants and other non-employee are recorded at fair value as of the grand date and subsequently adjusted to fair value at the end of each reporting period until such options and warrants vest, and the fair value of such instruments, as adjusted, is expected over related vesting period. The Company incurred stock-based compensation charges of $ 346,906 508,570 The costs of advertising are expensed as incurred. Advertising expenses are included in the Company’s operating expenses. Advertising expense was $ 110,755 137,632 The Company expenses research and development costs when incurred. Research and development costs include engineering and laboratory testing of product and outputs. The Company accrues an estimate of their exposure to warranty claims based on both current and historical product sales data and warranty costs incurred. The majority of the Company’s products carry a 1 The Company accounts for income taxes under the liability method. Deferred tax assets and liabilities are recorded based on the differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purpose, referred to as temporary differences. Deferred tax assets and liabilities at the end of each period are determined using the currently enacted tax rates applied to taxable income in the periods in which the deferred tax assets and liabilities are expected to be settled or realized. The Company is subject to examination by U.S. tax authorities beginning with December 31, 2013. Basic earnings (loss) per share calculations are determined by dividing net income (loss) by the weighted average number of shares outstanding during the year. Diluted earnings (loss) per share calculations are determined by dividing net income (loss) by the weighted average number of shares. In periods of net loss, stock equivalents are excluded, as those shares would be anti-dilutive. December 31, 2016 2015 Options 4,681,000 4,100,000 Warrants 22,992,262 7,702,819 Convertible secured debentures 1,554,386 — Total common stock equivalents outstanding 29,227,648 11,802,819 For the year ended December 31, 2016, 793,708 The fair value of an embedded conversion option that is convertible into a variable amount of shares and warrants that include price protection reset provision features are deemed to be “down-round protection” and, therefore, do not meet the scope exception for treatment as a derivative under Accounting Standards Codification (“ASC”) ASC 815 “Derivatives and Hedging”, since “down-round protection” is not an input into the calculation of the fair value of the conversion option and warrants and cannot be considered “indexed to the Company’s own stock” which is a requirement for the scope exception as outlined under ASC 815. The accounting treatment of derivative financial instruments requires that the Company record the embedded conversion option and warrants at their fair values as of the inception date of the agreement and at fair value as of each subsequent balance sheet date. Any change in fair value is recorded as non-operating, non-cash income or expense for each reporting period at each balance sheet date. The Company reassesses the classification of its derivative instruments at each balance sheet date. If the classification changes as a result of events during the period, the contract is reclassified as of the date of the event that caused the reclassification. As a result of entering into a convertible credit facility for which such instruments contained a variable conversion feature with no floor, the Company has adopted a sequencing policy in accordance with ASC 815-40-35-12 whereby all future instruments may be classified as a derivative liability with the exception of instruments related to share-based compensation issued to employees. The Black-Scholes option valuation model was used to estimate the fair value of the warrants and conversion options. The model includes subjective input assumptions that can materially affect the fair value estimates. The Company determined the fair value of the Binomial Lattice Model and the Black-Scholes Valuation Model to be materially the same. The expected volatility is estimated based on the most recent historical period of time equal to the weighted average life of the warrants. Conversion options are recorded as debt discount and are amortized as interest expense over the life of the underlying debt instrument. Certain prior period amounts have been reclassified for comparative purposes to conform to the fiscal 2016 presentation. These reclassifications have no impact on the previously reported net loss. The Company evaluates events that have occurred after the balance sheet date but before the financial statements are issued. Based upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the consolidated financial statements, except as disclosed in Note 20. Recently Issued Accounting Standards. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). ASU 2014-09 supersedes the revenue recognition requirements in ASC Topic 605, “Revenue Recognition” and some cost guidance included in ASC Subtopic 605-35, “Revenue Recognition - Construction-Type and Production-Type Contracts.” The core principle of ASU 2014-09 is that revenue is recognized when the transfer of goods or services to customers occurs in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. ASU 2014-09 requires the disclosure of sufficient information to enable readers of the Company’s financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. ASU 2014-09 also requires disclosure of information regarding significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 provides two methods of retrospective application. The first method would require the Company to apply ASU 2014-09 to each prior reporting period presented. The second method would require the Company to retrospectively apply ASU 2014-09 with the cumulative effect recognized at the date of initial application. ASU 2014-09 will be effective for the Company beginning in fiscal 2019 as a result of ASU 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date,” which was issued by the FASB in August 2015 and extended the original effective date by one year. The Company is currently evaluating the impact of adopting the available methodologies of ASU 2014-09 and 2015-14 upon its financial statements in future reporting periods. The Company has not yet selected a transition method. The Company is in the process of evaluating the new standard against its existing accounting policies, including the timing of revenue recognition, and its contracts with customers to determine the effect the guidance will have on its consolidated financial statements and what changes to systems and controls may be warranted. There have been four new ASUs issued amending certain aspects of ASU 2014-09, ASU 2016-08, “Principal versus Agent Considerations (Reporting Revenue Gross Versus Net),” was issued in March, 2016 to clarify certain aspects of the principal versus agent guidance in ASU 2014-09. In addition, ASU 2016-10, “Identifying Performance Obligations and licensing,” issued in April 2016, amends other sections of ASU 2014-09 including clarifying guidance related to identifying performance obligations and licensing implementation. ASU 2016-12, “Revenue from Contracts with Customers - Narrow Scope Improvements and Practical Expedients” provides amendments and practical expedients to the guidance in ASU 2014-09 in the areas of assessing collectability, presentation of sales taxes received from customers, noncash consideration, contract modification and clarification of using the full retrospective approach to adopt ASU 2014-09. Finally, ASU 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers,” was issued in December 2016, and provides elections regarding the disclosures required for remaining performance obligations in certain cases and also makes other technical corrections and improvements to the standard. With its evaluation of the impact of ASU 2014-09, the Company will also consider the impact on its consolidated financial statements related to the updated guidance provided by these four new ASUs. In August 2014, the FASB issued ASU 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. ASU 2014-15 is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. For all entities, the ASU is effective for annual periods ending after December 15, 2016 and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted. The Company adopted this standard for the year ended December 31, 2016, which impacted the disclosure of the going concern. In February 2016, the FASB issued Accounting Standards Update 2016-02, “leases (Topic 842)” (“ASU 2016-02”). The standard requires a lessee to recognize assets and liabilities on the balance sheet for leases with lease terms greater than 12 months. The standard is effective for annual reporting periods beginning after December 15, 2018, which for the Company will commence with the year beginning January 1, 2019, with early application permitted. The adoption will require a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest period presented. The Company is currently evaluating the standard to determine the impact of the adoption on the consolidated financial statements. In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-07 “Investments - Equity Method and Joint Ventures (Topic 323), Simplifying the Transition to the Equity Method of Accounting” (“ASU 2016-07”). ASU 2016-07 which simplifies the accounting for equity method investments by eliminating the requirement that an entity retroactively adopt the equity method of accounting if an investment qualifies for use of the equity method as a result of an increase in the level of ownership or degree of influence. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting The amendments of this ASU are effective for reporting periods beginning after December 15, 2016, with early adoption permitted. The Company adopted this standard for the year ended December 31, 2016. The adoption of this pronouncement did not have a significant impact on the consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, “Compensation – Stock Compensation (Topic 718)” (“ASU 2016-09”). ASU 2016-09 requires an entity to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, with early adoption permitted. The adoption of this pronouncement did not have a significant impact on the consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” ASU No. 2016-15 clarifies and provides specific guidance on eight cash flow classification issues that are not currently addressed by current GAAP and thereby reduce the current diversity in practice. ASU No. 2016-15 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2017, with early application permitted. This guidance is applicable to the Company’s fiscal year beginning January 1, 2018. The Company does not anticipate that this guidance will have a material impact on its consolidated financial statements. In December 2016, the FASB issued ASU 2016-18 “Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force,” which clarifies the presentation requirements of restricted cash within the statement of cash flows. The changes in restricted cash and restricted cash equivalents during the period should be included in the beginning and ending cash and cash equivalents balance reconciliation on the statement of cash flows. When cash, cash equivalents, restricted cash or restricted cash equivalents are presented in more than one line item within the statement of financial position, an entity shall calculate a total cash amount in a narrative or tabular format that agrees to the amount shown on the statement of cash flows. Details on the nature and amounts of restricted cash should also be disclosed. This standard is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. The Company does not expect this new guidance to have a material impact on its financial position or results of operations. In January 2017, the FASB issued ASU 2017-01 “Business Combinations (Topic 805): Clarifying the Definition of a Business”, which clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The standard introduces a screen for determining when assets acquired are not a business and clarifies that a business must include, at a minimum, an input and a substantive process that contribute to an output to be considered a business. This standard is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. The Company is evaluating the impact this pronouncement will have on the consolidated financial statement and disclosures. In January 2017, the Financial Accounting Standard Board (the “FASB”) issued Accounting Standards Update (ASU) 2017-04: “Intangibles — Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”), which removes Step 2 from the goodwill impairment test. It is effective for annual and interim periods beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment test performed with a measurement date after January 1, 2017. The Company is currently evaluating the standard to determine the impact of its adoption on the consolidated financial statements. In July 2015, the FASB issued Accounting Standards Update No. 2015-11, “Simplifying the Measurement of Inventory” (“ASU 2015-11”). ASU 2015-11 requires an entity to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using last in, first-out (“LIFO”) or the retail inventory method. It is effective for annual reporting periods beginning after December 15, 2016. The amendments should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company has not yet determined the effect of the adoption of this standard on the Company’s consolidated financial position and results of operations. Except for rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal securities laws and a limited number of grandfathered standards, the FASB Accounting Standards Codification™ (“ASC”) is the sole source of authoritative GAAP literature recognized by the FASB and applicable to the Company. Management has reviewed the aforementioned rules and releases and believes any effect will not have a material impact on the Company's present or future consolidated financial statements.

INVENTORY, NET

INVENTORY, NET	12 Months Ended
	Dec. 31, 2016
Inventory Disclosure [Abstract]
Inventory Disclosure [Text Block]	NOTE 4 - INVENTORY, NET December 31, December 31, 2016 2015 Production materials consumables, spare parts, and accessories $ 937,133 $ 891,382 Work in process 853,800 1,470,632 Total at cost 1,709,933 2,362,014 Slow moving inventory reserve (175,000) — Inventory, net $ 1,615,933 $ 2,362,014

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment Disclosure [Text Block]	NOTE 5 - PROPERTY AND EQUIPMENT, NET December 31, 2016 2015 Machinery and equipment $ 400,106 $ 347,377 Furniture and office equipment 179,206 133,496 Transportation 303,826 262,995 Production units 4,757,896 4,744,649 Building 2,236,841 1,983,596 7,877,875 7,472,113 Less accumulated depreciation 1,474,944 1,467,123 Property and Equipment, Net $ 6,402,931 $ 6,004,990 Depreciation of property and equipment was $ 594,992 509,663 During the year ended December 31, 2016, the Company put in production one unit with an approximate cost of $ 631,000 During the year ended December 31, 2016, the Company moved its operational facilities and sold and disposed of property and equipment and recorded a charge of approximately $ 1,049,000

INVESTMENT IN JOINT VENTURES

INVESTMENT IN JOINT VENTURES	12 Months Ended
	Dec. 31, 2016
Equity Method Investments and Joint Ventures [Abstract]
Equity Method Investments and Joint Ventures Disclosure [Text Block]	NOTE 6 - INVESTMENT IN JOINT VENTURES As of December 31, 2016 the Company’s investments in its joint ventures consisted of the following: December 31, December 31, 2016 2015 Investment: a) MagneGas Europe $ — $ 23,750 b) MagneGas China — 466,660 c) Future Energy PTY, LTD — 229,840 d) Other — 34,351 $ — $ 754,601 a) On June 25, 2010, the Company entered into agreement with a Belgian company, whereby 250,000 shares of the Company’s common stock and territorial license rights were exchanged for a 20% interest in MagneGas Europe. The Company valued the shares issued at the fair value of the shares issued ($23,750). The Company determined it did not have effective or beneficial control of the European entity and the Company accounts for this investment using the equity method. Equity in earnings or loss from MagneGas Europe to date have not been material. The Company has not seen any development of the venture to support the carrying value of the investment and accordingly has recognized an impairment for the full carrying value of the investment. b) On June 28, 2010, the Company entered into an agreement with DDI Industries, a Chinese company, in contemplation of the formation of MagneGas China. The Company provided mechanical drawings (for complete construction), computer programs, license of patents (Greater China Region), trademarks, among other items of the Plasma Arc Flow Recyclers to the joint venture for a 20% interest in MagneGas China. The fair value of the consideration provided was $466,660. The Company determined it did not have effective or beneficial control over the joint entity and accounts for this investment under the equity method. In May of 2016, the original majority owner of the entity, DDI Industries, sold their interest to another entity, Paishi Environment Technologies, also a Chinese entity. Based on the sales price DDI Industries received in the transaction for its controlling interest and the lack of earnings in the joint venture to date, the Company determined the carrying value of the investment was fully impaired. c) On March 19, 2014, the Company signed a joint venture agreement with FutureEnergy Pty Ltd of Australia. Under the terms of the agreement, both parties will own 50% of a new company formed for the purpose of developing, licensing and commercializing new intellectual property for co-combustion of MagneGas fuels with hydrocarbon fuels to reduce emissions and increase energy. This agreement includes and extends beyond the existing partnership of coal co-combustion to include other current and future developments such as the combustion of MagneGas with diesel, heavy oil, aviation fuels, and liquid petroleum gas. The fair value of the Company’s investment was $254,840 and is accounted for under the equity method since day to day control rests with the other partners. This joint venture is a development stage company conducting research and development and research activity and has been minimal to date. During the year ended December 31, 2016 the Company had not seen the development of the venture to support the carrying value of the investment so the Company accordingly has recognized an impairment.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2016
Assets [Abstract]
Intangible Assets Disclosure [Text Block]	NOTE 7 – INTANGIBLE ASSETS Gross Carrying Amount Accumulated Amortization Net Carrying Value December 31, December 31, December 31, 2016 2015 2016 2015 2016 2015 Totals: $ 886,990 $ 886,990 $ 449,869 $ 393,974 $ 437,121 $ 493,016 Aggregate amortization expense for the years ended December 31, 2016 and 2015 was $ 55,895 48,468 Years ending December 31, Amount 2017 $ 55,895 2018 $ 55,895 2019 $ 55,895 2020 $ 55,895 2021 $ 55,895 2022 and thereafter $ 157,646 Total $ 437,121 The weighted average remaining amortization periods for the Company’s intangible assets of patents are 8.58

FAIR VALUE

FAIR VALUE	12 Months Ended
	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value, Measurement Inputs, Disclosure [Text Block]	NOTE 8 - FAIR VALUE ASC Topic 820 "Fair Value Measurements" ("ASC 820") requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. Categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value: Level 1: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2: Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quote prices for similar assets or liabilities in active markets; quoted prices for identical assets in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3: Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The Company’s assessment of the significance of particular inputs to these fair measurements requires judgment and considers factors specific to each asset or liability. Both observable and unobservable inputs may be used to determine the fair value of positions that are classified within the Level 3 category. As a result, the unrealized gains and losses for assets within the Level 3 category presented in the tables below may include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable (e.g., changes in historical company data) inputs. Impairment. The carrying value of the Company’s joint ventures and other long lived assets are tested for impairment annually, at the end of the fourth quarter of each fiscal year, and between annual tests if an event occurs or circumstances change that would indicate it is more likely than not that the carrying amount may be impaired. Additionally, the Company continually evaluates whether events or changes in circumstances might indicate that the remaining estimated useful life of long-lived assets may warrant revision, or that the remaining balance may not be recoverable. The factors used to determine fair value are subject to management’s judgement and expertise and include, but are not limited to, the present value of future cash flows, net of estimated operating costs, internal forecasts, anticipated capital expenditures and various discount rates commensurate with the risk and current market conditions associated with realizing the expected cash flows projected. These assumptions represent Level 3 inputs. Impairment of the Company’s joint ventures for the year ended December 31, 2016 was $806,719. There were no impairment charges during the year ended December 31, 2015. December 31, 2016 Quoted Prices In Active Significant Markets for Other Significant Identical Observable Unobservable Liabilities Inputs Inputs Total (Level 1) (Level 2) (Level 3) Warrant liability $ 7,195,617 — — $ 7,195,617 Embedded conversion liability $ 504,968 — — $ 504,968 Derivative liability – December 31, 2016 $ 7,700,585 — — $ 7,700,585 December 31, 2015 Quoted Prices In Active Significant Markets for Other Significant Identical Observable Unobservable Liabilities Inputs Inputs Total (Level 1) (Level 2) (Level 3) Warrant liability –December 31, 2015 $ 1,241,841 — — $ 1,241,841 Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. The Company’s Level 3 liabilities shown in the above table consist of warrants that contain a cashless exercise feature that provides for their net share settlement at the option of the holder. In addition, the convertible debt conversion feature has a price reset provision with no floor. The warrants also contain a fundamental transactions provision that permits their settlement in cash at fair value at the option of the holder upon the occurrence of a change in control. Such change in control events include tender offers or hostile takeovers, which are not within the sole control of the Company as the issuer of these warrants. Accordingly, the warrants are considered to have a cash settlement feature that precludes their classification as equity instruments. Settlement at fair value upon the occurrence of a fundamental transaction would be computed using the Black Scholes Option Pricing Model. For the years ended December 31, 2016 2015 Risk free interest rate 0.2%-2.25 % 0.33 % Expected term .25 to 7.25 years 1.0 years Volatility 51% to 123 % 93 % Dividends $ 0 $ 0 The risk-free interest rate was determined from the implied yields from U.S. Treasury zero-coupon bonds with a remaining term consistent with the expected term of the instrument being valued. The expected term used is the contractual life of the instrument being valued. Volatility was calculated using the Company’s historical common stock price over the expected term of the instruments valued. Dividends were deemed to be $ 0 Embedded Total Warrant Conversion Derivative Liability Liability Liabilities Balance – December 31, 2014 $ 512,175 $ 512,175 Change in fair value 729,666 729,666 Balance – December 31, 2015 $ 1,241,841 $ — $ 1,241,841 Change in fair value (386,182) 15,556 (370,626) Warrants issued in connection with debt transactions 446,588 553,412 1,000,000 Loss on modification of warrants 2,622,080 Excess fair value of warrants issued over related debt 2,879,291 — 5,591,371 Reclassification of equity instruments to derivative liabilities due to tainting of warrants 5,396,350 — 5,396,350 Reclassifications of derivative liabilities to equity from the exercise of warrants and issuance of shares for convertible debt (5,022,351) (64,000) (5,086,351) Balance – December 31, 2016 $ 7,195,617 $ 504,968 $ 7,700,585 The Company’s significant financial instruments such as cash and accounts payable were deemed to approximate fair value due to their short term nature. The carrying value of the debt approximates their fair value as such debt bears terms and maturities of comparable to market for obligations with similar terms and maturities.

RESTATEMENT OF 2015 FINANCIAL S

RESTATEMENT OF 2015 FINANCIAL STATEMENTS	12 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Reclassifications [Text Block]	NOTE 9 - RESTATEMENT OF 2015 FINANCIAL STATEMENTS Derivative Liability recognized on warrants issued prior to 2014 which is the basis for the restatement of the Company’s 2015 Financial Statements In 2011, 2012, and 2013, the Company issued warrants (the “Pre-2014 Warrants”). The Company accounts for the Pre-2014 Warrants in accordance with the guidance in ASC 815 Derivatives and Hedging. Accordingly, the Pre-2014 Warrants are considered to have a cash settlement feature that precludes their classification as equity instruments. Settlement at fair value upon the occurrence of a fundamental transaction would be computed using the Black Scholes Option Pricing Model. Under ASC 815-40-35, the Company adopted a sequencing policy that reclassifies contracts, with the exception of stock options, from equity to assets or liabilities for those with the latest inception date first. Future issuance of securities will be evaluated as to reclassification as a liability under our sequencing policy of latest inception date first until either all of the Pre-2014 Warrants are settled or expire. As Original As Restated Increase reported- 2015 2015 (decrease) Derivative Liability $ -- $ 1,241,841 $ 1,241,841 Net Loss $ (9,141,498) $ (9,871,164) $ 729,666 Total Stockholders’ Equity-December 31, 2015 $ 15,858,104 $ 14,616,263 $ (1,241,841) Accumulated Deficit-December 31, 2014 $ (25,705,213) $ (26,217,388) $ 512,175 Total Stockholders’ Equity-December 31, 2014 $ 16,694,059 $ 16,181,884 $ (512,175)

NOTE PAYABLE

NOTE PAYABLE	12 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Long-term Debt [Text Block]	NOTE 10 - NOTE PAYABLE As of December 31, 2016 and 2015 the Company has an outstanding note payable for $ 520,000 6.5 2,816

SENIOR CONVERTIBLE DEBENTURE

SENIOR CONVERTIBLE DEBENTURE	12 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Debt Disclosure [Text Block]	NOTE 11 - SENIOR CONVERTIBLE DEBENTURE On June 27, 2016, the Company issued and sold a senior convertible debenture that matures in June 2021 in the principal amount of $ 1,000,000 0.57 0.0 200,000 886,000 Number of Exercise Expiration Warrants Price Date 3,508,772 $ 1.05 December 23, 2023 1,754,386 $ 1.30 December 23, 2023 7,017,544 $ 1.01 90 days from shareholder approval 3,508,772 $ 1.05 December 27, 2023 1,754,386 $ 1.30 December 27, 2023 In addition the Company sold to the investor prefunded warrants to purchase 5,263,158 0.01 2,540,821 0.5 The Company also entered into a registration rights agreement whereby the Company is required to maintain an effective registration statement covering the entire common stock equivalent for the conversion of the note and for the common stock issuable for the exercise of the warrants. Under the terms of the registration statement rights agreement the Company is required to have registered shares available for the settlement of these instruments 60 days from the date of the transaction, in the event of a full review the date will be 100 days from the date of the transaction. Should the Company not meet this obligation the Company would be required to pay liquidating damages of 2 80,000 In addition, the Company’s wholly owned subsidiary signed a guarantee in connection with the issuance of the debenture and registration rights agreement. The Company has accounted for this transaction under ASC 815 “Derivatives and Hedging” whereby the conversion feature in the debenture was deemed to have a “down round” price protection features with no floor. This feature resulted in the determination that the Company would not have sufficient authorized shares available to settle its outstanding warrants and convertible instruments. Accordingly, the warrants and the embedded conversion option of the debenture are recorded as derivative liabilities at their fair market value and are required to be marked to market through earnings at the end of each reporting period. The fair value of the financial instruments was determined using the Black-Scholes valuation model which approximated the binomial lattice model. The gross proceeds of the prefunded warrant and the sale of the debenture was recorded net of a discount of $ 1,000.000 6,675,000 2,622,080 189,000

CAPITALIZED LEASES

CAPITALIZED LEASES	12 Months Ended
	Dec. 31, 2016
Leases [Abstract]
Capital Leases in Financial Statements of Lessee Disclosure [Text Block]	NOTE 12 - CAPITALIZED LEASES The Company has equipment under a capital lease expiring in July 2020. The assets and liabilities under the capital lease are recorded at the lower of the present value of the minimum lease payments or the fair value of the assets. The assets, with costs of approximately $ 34,645 11,036 2,442 For the year ending December 31, Amount 2017 $ 9,329 2018 9,329 2019 9,329 2020 9,126 Total minimum lease payments 37,113 Less amount representing interest 2,468 Present value of minimum lease payments 34,645 Less current portion of minimum lease 9,328 Long-term present value of minimum lease payment $ 25,317 The interest rate on the capitalized lease is approximately 4

DEFERRED REVENUE AND CUSTOMER D

DEFERRED REVENUE AND CUSTOMER DEPOSITS	12 Months Ended
	Dec. 31, 2016
Deferred Revenue And Customer Deposits [Abstract]
Deferred Revenue And Customer Deposits [Text Block]	NOTE 13 - DEFERRED REVENUE AND CUSTOMER DEPOSITS December 31, 2016 2015 South African deposit for future sale $ — $ 20,000 Deposit from Green Arc Supply — 392,500 BioMass Comp. 25,000 — Deferred Revenue and Customer Deposits $ 25,000 $ 412,500

INCOME TAX

INCOME TAX	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	NOTE 14 - INCOME TAX U.S. federal 2016 2015 Current: -- -- Deferred (3,900,000) (2,180,600) State and local Current -- Deferred (400,000) (259,300) Total (4,300,000) (3,439,900) Change in valuation allowance 4,300,000 3,439,900 Income Tax Provision - - 2016 2015 U.S. federal statutory rate 34.00 % 34.00 % State income taxes, net of federal benefit 2.41 % 3.45 % State rate change Other permanent items -10.41 % -3.50 % Other -1.46 -- % Change in valuation allowance -24.55 % -33.95 % Effective rate 0.00 % 0.00 % Deferred tax assets 2016 2015 Net Operating Loss carryover $ 16,000,000 $ 11,943,000 Stock-based compensation 900,000 324,000 Other 600,000 733,000 Total deferred tax asset 17,300,000 13,000,000 Less reserve for allowance 17,300,000 13,000,000 Total Deferred tax asset net of valuation allowance $ - $ - The Company files income tax returns in the U.S. federal and various state jurisdictions. As of December 31, 2016 and 2015, the Company has federal and state net operating loss carryforwards each of $ 42,374,000 31,616,000 4,300,0 As of December 31, 2016 and 2015, the Company has evaluated and concluded that there were no material uncertain tax positions requiring recognition in the Company’s financial statements. The Company’s policy is to classify assessments, if any, for tax related interest as income tax expenses. No interest or penalties were recorded during the years ended December 31, 2016 and 2015. The Company does not expect its unrecognized tax benefit position to change during the next twelve months.

COMMON STOCK AND PREFERRED STOC

COMMON STOCK AND PREFERRED STOCK	12 Months Ended
	Dec. 31, 2016
Stockholders' Equity Note [Abstract]
Stockholders' Equity Note Disclosure [Text Block]	NOTE 15 - COMMON STOCK AND PREFERRED STOCK As of December 31, 2016 and 2015 the Company has authorized 90,000,000 0.001 58,040,267 45,599,534 Common Stock Issued for Cash During the year ended December 31, 2016 the Company issued 1,020,408 793,708 2,785,287 1 0.01 Common Stock Issued for Services The Company issued 1,648,834 1,109,500 The Company issued 1,369,483 1,201,241 Common Stock Issued for Exercise of Options During the year ended December 31, 2015, a consultant exercised, via a cashless exercise, the option to purchase 50,000 1.17 47,500 During the year ended December 31, 2015, a non-executive employee exercised, via a cashless exercise, the option to purchase 10,000 0.75 4,565 Common Stock Issued for Exercise of Warrants During the year ended December 31, 2016 the Company issued 9,571,491 95,715 During the year ended December 31, 2015, there were 5,538,556 6,672,207 Common Stock Issued for the Settlement of Debt During the year ended December 31, 2016 the Company issued 200,000 114,000 Preferred Stock The Company is authorized to issue up to 10,000,000 0.001 Series A Preferred Stock As of December 31, 2016 and 2015, the Company has designated 1,000,000 1,000,000 100,000 Series B Convertible Preferred Stock As of December 31, 2016, the Company has designated 2,142 0.80 Series C Convertible Preferred Stock As of December 31, 2016, the Company has designated 2,200 1.45 Series D-1 Convertible Preferred Stock As of December 31, 2016, the Company has designated 1,060 1.00 During the year ended December 31, 2015, the Company issued 1,060,000 1,060 Series D-2 Convertible Preferred Stock As of December 31, 2016, the Company has designated 940 1.00 During the year ended December 31, 2015, the Company issued 940,000 940

OPTIONS

OPTIONS	12 Months Ended
	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	NOTE 16 - OPTIONS The Company has an outstanding stock option plan which provides for the granting of incentive and non-statutory common stock options and stock based incentive awards to employees, non-employee directors, consultants and independent contractors. The plan was amended and restated in May 2014. Incentive stock options are granted at exercise prices not less than 100 Unless terminated sooner by the Board of Directors, this plan will terminate on August 31, 2021 2,011,603 394,269 Weighted Weighted Average Average Options Exercise Remaining Intrinsic Outstanding Price Life (years) Value January 1, 2015 3,540,000 Granted 680,000 Exercised (60,000) Expired (60,000) December 31, 2015 4,100,000 $ 1.32 2.4 $ 968,000 Granted 581,000 $ 0.62 5.0 $ — Exercised — $ — $ — Forfeited — $ — $ — Expired — $ — $ — December 31, 2016 4,681,000 $ 1.37 1.23 $ — Exercisable at December 31, 2016 3,432,208 $ 1.44 1.23 $ — Exercisable at December 31, 2015 3,435,000 $ 1.32 2.4 $ 508,000 The following is additional information with respect to the Company’s options as of December 31, 2016: Weighted Average Remaining Average Number of Range of Contractual Life Exercise Currently Options Exercise Price (in years) Price Exercisable 986,000 $0.62 to $0.99 1.00 $ 1.45 3,069,919 3,695,000 $1.00 to $1.50 3.78 $ 0.62 362,289 4,681,000 3,432,208 During the year ended December 31, 2016 the Company granted 75,000 5 0.91 3 47,600 During the year ended December 31, 2016 the Company granted 506,000 5 0.62 3 175,700 As of December 31, 2016, the fair value of non-vested options totaled $ 971,417 2.8 In February 2015, the Board granted to three executive employees (including two members of the Board) the option to purchase, in the aggregate, 350,000 0.72 55 55 192,500 45 45 332,500 In June 2015, the Board granted to thirty six non-executive employees the option to purchase, in the aggregate, 250,000 1.16 50% on the year 1 grant anniversary; and 25% on each of the year 2 and year 3 grant anniversaries. In June 2015, the Board granted to one executive employee and one non-executive employee the option to purchase, in the aggregate, 80,000 1.16 50% on the year 1 grant anniversary; and 25% on each of the year 2 and year 3 grant anniversaries. For the years ended December 31, 2016 2015 Risk free interest rate 0.88%-1.01 % 1.07 % Expected term 4years 3-5 years Volatility 99%-117 % 55.6 % Dividends $ 0 $ 0 The expected stock price volatility for the Company’s stock options was determined by the historical volatilities of the Company’s stock price. The Company attributes the value of stock-based compensation to operations on the straight-line single option method. Risk free interest rates were obtained from U.S. Treasury rates for the applicable periods. The dividends assumptions was $0 as the Company historically has not declared any dividends and does not expect to. The expected term of the option was determined in accordance with SEC Staff Accounting Bulletin No. 107 guidance for “plain vanilla” options.

WARRANTS

WARRANTS	12 Months Ended
	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Schedule Of Warrants Outstanding [Text Block]	NOTE 17 - WARRANTS Weighted Weighted Average Average Warrants Exercise Remaining Outstanding Price Life in Years Balance – January 1, 2015 13,189,300 $ 1.85 3.4 Granted — $ Exercised (5,486,481) $ Forfeited — $ Balance -December 31, 2015 7,702,819 $ 1.33 2.4 Granted 27,909,059 $ 0.55 4.6 Exercised (9,571,491) $ 0.01 Forfeited — $ Expired (3,048,125) $ Balance- December 31, 2016 22,992,262 $ 0.91 5.8 Exercisable at December 31, 2016 22,992,262 $ 0.91 5.8 Exercisable at December 31, 2015 7,702,819 2.4 The weighted average remaining contractual life of warrants outstanding and exercisable at December 31, 2016 was 6.4 Number of Exercise Warrants Price 608,142 $ 1.35 1,896,552 $ 2.15 2,150,000 $ 1.31 3,508,772 $ 1.05 1,754,386 $ 1.30 7,017,544 $ 0.66 3,508,772 $ 0.90 1,754,386 $ 0.90 793,708 $ 0.01 22,992,262 During the year ended December 31, 2016 the Company modified 12,280,702 7.5 1.01 0.66 2,897,291

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2016
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	NOTE 18 - RELATED PARTY TRANSACTIONS The Company occupies 5,000 4,000 the holder of 1,000 shares of Series A Preferred Stock which, in turn, has 100,000 votes per share on any matters brought to a vote of the common stock shareholders. 48,000 The Company holds a 20 25,000

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Contingencies Disclosure [Text Block]	NOTE 19 - COMMITMENTS AND CONTINGENCIES Litigation Certain conditions may exist as of the date the consolidated financial statements are issued which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company, or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims, as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed, unless they involve guarantees, in which case the guarantees would be disclosed. There can be no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. On April 16, 2015, there was an accident at the Company’s facilities which occurred during the gas filling process. As a result of the accident, one employee was killed and one was injured but has recovered and has returned to work. Although the Company has Workers Compensation Insurance and General Liability Insurance, the financial impact of the accident is unknown at this time. No customers have terminated their relationship with the Company as a result of the accident. On October 14, 2015 the Company received their final report from the Occupational and Safety Hazard Administration (“OSHA”) related to the accident. The OSHA report included findings, many of which were already resolved and a proposed citation. The Company was not cited for any willful misconduct and no final determination was made as to the cause of the accident. The Company received citations related to various operational issues and received an initial fine of $ 52,000 The Company is still investigating the cause of the accident and there have been no conclusive findings as of this time. It is unknown whether the final cause of the accident will be determined and whether those findings will negatively impact Company operations or sales. The Company continues to be fully operational and transparent with all regulatory agencies. As of December 31, 2016 the Company has not accrued for any contingency. On November 18, 2016 a lawsuit was filed in District Court in Pinellas County, Florida by the Estate of Michael Sheppard seeking unspecified damages. The lawsuit alleges that the Company was negligent and grossly negligent in various aspects of its safety, training and overall work environment that led to the accident. The Company was not cited by OSHA for any willful misconduct nor did it receive any citations from the Department of Transportation. As of December 31, 2016 the Company has not accrued for any contingency. Operating leases The Company leases three facilities located in Florida for its office and warehousing requirements immaterial. 158,370 129,600 Minimum For the years ending December 31, Amount 2017 $ 118,200 2018 $ 119,000 2019 $ 87,100 2020 $ 20,400 2021 $ 11,900 Credit Risk and Concentrations Financial instruments that subject the Company to credit risk consist principally of trade accounts receivable and cash and cash equivalents. The Company performs certain credit evaluation procedures and does not require collateral for financial instruments subject to credit risk. The Company believes that credit risk is limited because the Company routinely assesses the financial strength of its customers and, based upon factors surrounding the credit risk of its customers, establishes an allowance for uncollectible accounts and, as a consequence, believes that its accounts receivable credit risk exposure beyond such allowances is limited. The Company grants credit to customers. In general, the Company does not require collateral for customer purchases and generally grants 30 day invoice terms to its customers. The Company records a provision for estimated sales returns and allowances on product sales in the same period as the related revenue is recorded. These provisions are based on known and estimated assumptions and historically customer returns have been immaterial. The Company maintains checking accounts in a financial institution. Accounts at each bank are insured by the Federal Deposit Insurance Corporation (“FDIC”). At times, cash and cash equivalents may be uninsured or in deposit accounts that exceed the FDIC insurance limit. Periodically, the Company evaluates the credit worthiness of the financial institutions and has not experienced any losses in such accounts. For the year ended December 31, 2016, one customer accounted for approximately 22 775,000

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2016
Subsequent Events [Abstract]
Subsequent Events [Text Block]	NOTE 20 - SUBSEQUENT EVENTS Subsequent to December 31, 2016, the Company issued 793,708 During the first quarter of 2017, the Company issued 412,500 31,056 220,000 On March 13, 2017, the holder of a convertible debenture issued by the Company converted a portion of the debenture into 100,000

SUMMARY OF SIGNIFICANT ACCOUN27

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Use of Estimates, Policy [Policy Text Block]	Basis of Presentation and Use of Estimates The Company prepares its financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”). These principals require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during each of the reporting period. Actual results could differ from those estimates. The Company’s significant estimates include allowances for slow-moving inventory, fair value of its derivative financial instruments, accounting of joint ventures, valuation allowance for deferred tax assets, the allowance of doubtful accounts, stock based compensation and the impairment of long-lived assets, useful lives of property and equipment and goodwill.
Principles of Consolidation, Policy [Policy Text Block]	Principles of Consolidation The consolidated financial statements have been prepared using the accounting records of MagneGas and its wholly owned subsidiary Equipment Sales and Services, Inc. and all material intercompany balances and transactions have been eliminated.
Cash and Cash Equivalents, Policy [Policy Text Block]	Cash and Cash Equivalents Cash and cash equivalents consist of cash, checking accounts, money market accounts and temporary investments with original maturities of three months or less when purchased. As of December 31, 2016 and 2015 the Company had no cash equivalents.
Accounts Receivable, Policy [Policy Text Block]	Accounts Receivable Accounts receivable consist of amounts due for the delivery of MagneGas2® sales to customers with payment terms of generally 30 days. An allowance for doubtful accounts is established for any amounts that may not be recoverable, which is based on an analysis of the Company’s customer credit worthiness, historical estimates, and current economic trends. Receivables are determined to be past due, based on payment terms of original invoices. The Company does not typically charge interest on past due receivables.
Inventory, net, Policy [Policy Text Block]	Inventory, net Inventory is stated at the lower of standard cost or market, which approximates actual cost. Cost is determined using the first-in, first-out method. Inventory is comprised of spare parts; consumables used in the production of gas, regulators and tips and work in process. Estimates of lower of cost or market are based upon economic conditions, historical sales quantities and patterns, and in some cases, the specific risk of loss on specifically identified inventories. The Company evaluates inventories on a regular basis to identify inventory on hand that may be slow moving. Inventory that is in excess of current and projected use is reduced by an allowance to the level that approximates its estimate of future demand. As of December 31, 2016, the Company has a reserve of $ 175,000
Property, Plant and Equipment, Policy [Policy Text Block]	Long-Lived Assets Property and equipment are recorded at cost less accumulated depreciation and amortization. The Company depreciates its property and equipment for financial reporting purposes using the straight-line method over estimated useful life of the asset ( 3 15
Intangible Assets, Policy [Policy Text Block]	Intangible Assets Intangible assets primarily consist of intellectual property which is amortized ratably over a life of the asset which ranges from 15 20
Goodwill, Policy [Policy Text Block]	The Company records goodwill and other indefinite-lived assets in connection with business combinations. Goodwill, which represents the excess of acquisition cost over the fair value of the net tangible and intangible assets of acquired companies, is not amortized. Indefinite-lived assets are stated at fair value as of the date acquired in a business combination. The Company assesses the recoverability of goodwill and certain indefinite-lived intangible assets annually in the fourth quarter and between annual tests if an event occurs or circumstances change that would indicate the carrying amount may be impaired. Impairment testing for goodwill is done at a reporting unit level. Under Financial Accounting Standards Board (“FASB”) guidance for goodwill and intangible assets, a reporting unit is defined as an operating segment or one level below the operating segment, called a component. However, two or more components of an operating segment will be aggregated and deemed a single reporting unit if the components have similar economic characteristics. The Company operates as one reporting unit. Authoritative accounting guidance allows the Company to first assess qualitative factors to determine whether it is necessary to perform the more detailed two-step quantitative goodwill impairment test. The Company performs the quantitative test if its qualitative assessment determined it is more likely than not that a reporting unit’s fair value is less than its carrying amount. The Company may elect to bypass the qualitative assessment and proceed directly to the quantitative test for any reporting unit or asset. The quantitative goodwill impairment test, if necessary, is a two-step process. The first step is to identify the existence of a potential impairment by comparing the fair value of a reporting unit (the estimated fair value of a reporting unit is calculated using a discounted cash flow model) with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, the reporting unit’s goodwill is considered not to be impaired and performance of the second step of the quantitative goodwill impairment test is unnecessary. However, if the carrying amount of a reporting unit exceeds its fair value, the second step of the quantitative goodwill impairment test is performed to measure the amount of impairment loss to be recorded, if any. The second step of the quantitative goodwill impairment test compares the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill. If the carrying amount of the reporting unit’s goodwill exceeds its implied fair value, an impairment loss is recognized in an amount equal to that excess. The implied fair value of goodwill is determined using the same approach as employed when determining the amount of goodwill that would be recognized in a business combination. That is, the fair value of the reporting unit is allocated to all of its assets and liabilities as if the reporting unit had been acquired in a business combination and the fair value was the purchase price paid to acquire the reporting unit. For the 2016 annual goodwill and certain indefinite-lived intangible assets impairment tests, the Company elected to bypass the qualitative assessment and proceeded directly to the quantitative analysis using the market price of the stock and determined that no impairment was deemed to exist as of December 31, 2016.
Impairment or Long-Lived Assets, Policy [Policy Text Block]	Impairment of Long-Lived Assets The Company assesses the recoverability of its long-lived assets, including property and equipment and intangible assets, annually and when there are indications that the assets might be impaired. When evaluating assets for potential impairment, the Company compares the carrying value of the asset to its estimated undiscounted future cash flows. If an asset’s carrying value exceeds such estimated cash flows (undiscounted and with interest charges), the Company records an impairment charge for the difference between the carrying value and the fair value of the asset. Based on its assessments, the Company did not incur an impairment for the year ended December 31, 2016 or 2015.
Revenue Recognition, Policy [Policy Text Block]	Revenue Recognition The Company recognizes revenue upon shipment, provided that persuasive evidence of an arrangement exists, there are no uncertainties regarding customer acceptance, the sales price is fixed or determinable, and collectability is deemed probable. Revenues are generally derived from four revenue streams as follows: (1) the sale of its MagneGas2® fuel for metal cutting, (2) the sale equipment under MagneTote, and (3) the sale of its Plasma Arc Flow units. Additionally, the Company also recognizes revenue from territorial license arrangements, and through the sales of metal cutting gases and related products. The Company recognizes revenue ratably, based on the amounts paid or values received, over the term of the licensing agreement. The Company, on occasion, may recognize revenue under a bill-and-hold arrangement. Under a bill-and-hold arrangement revenue is recognized when the product is manufactured, completed, invoiced and segregated from the seller’s other inventory so that it is not subjected to being used to fill other orders. Upon invoicing under this arrangement, ownership has passed to the buyer with no right of return such that the earnings process is complete. The customer must request a bill-and-hold arrangement (preferably in writing), must commit to the purchase and the delivery date must be fixed. During the year ended December 31, 2016, the Company recognized $ 775,000 The Company also enters into sales transactions whereby customer orders contain multiple deliverables and reports its multiple deliverable arrangements under ASC 605-25 “Revenue Arrangements with Multiple Deliverables” (“ASC-605-25”). These multiple deliverable arrangements primarily consist of the following deliverables: the Company’s MagneGas units, design, configuration, installation and training services. In situations where the Company bundles all or a portion of the separate elements, Vendor Specific Objective Evidence (“VSOE”) is determined based on prices when sold separately. For the year ended December 31, 2016, multiple deliverable arrangements was immaterial.
Compensation Related Costs, Policy [Policy Text Block]	Stock Based Compensation The Company accounts for options granted to employees by measuring the award of equity instruments based upon the fair value of the award on the date of grant. The fair value of that award is then ratably recognized as expense over the period during which the recipient is required to provide services in exchange for that award. Options and warrants granted to consultants and other non-employee are recorded at fair value as of the grand date and subsequently adjusted to fair value at the end of each reporting period until such options and warrants vest, and the fair value of such instruments, as adjusted, is expected over related vesting period. The Company incurred stock-based compensation charges of $ 346,906 508,570
Advertising Costs, Policy [Policy Text Block]	Advertising Costs The costs of advertising are expensed as incurred. Advertising expenses are included in the Company’s operating expenses. Advertising expense was $ 110,755 137,632
Research and Development Expense, Policy [Policy Text Block]	Research and Development The Company expenses research and development costs when incurred. Research and development costs include engineering and laboratory testing of product and outputs.
Standard Product Warranty, Policy [Policy Text Block]	The Company accrues an estimate of their exposure to warranty claims based on both current and historical product sales data and warranty costs incurred. The majority of the Company’s products carry a 1
Income Tax, Policy [Policy Text Block]	Income Taxes The Company accounts for income taxes under the liability method. Deferred tax assets and liabilities are recorded based on the differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purpose, referred to as temporary differences. Deferred tax assets and liabilities at the end of each period are determined using the currently enacted tax rates applied to taxable income in the periods in which the deferred tax assets and liabilities are expected to be settled or realized. The Company is subject to examination by U.S. tax authorities beginning with December 31, 2013.
Earnings (Loss) Per Share, Policy [Policy Text Block]	Basic earnings (loss) per share calculations are determined by dividing net income (loss) by the weighted average number of shares outstanding during the year. Diluted earnings (loss) per share calculations are determined by dividing net income (loss) by the weighted average number of shares. In periods of net loss, stock equivalents are excluded, as those shares would be anti-dilutive. December 31, 2016 2015 Options 4,681,000 4,100,000 Warrants 22,992,262 7,702,819 Convertible secured debentures 1,554,386 — Total common stock equivalents outstanding 29,227,648 11,802,819 For the year ended December 31, 2016, 793,708
Derivative Financial Instruments, Policy [Policy Text Block]	Derivative Financial Instruments The fair value of an embedded conversion option that is convertible into a variable amount of shares and warrants that include price protection reset provision features are deemed to be “down-round protection” and, therefore, do not meet the scope exception for treatment as a derivative under Accounting Standards Codification (“ASC”) ASC 815 “Derivatives and Hedging”, since “down-round protection” is not an input into the calculation of the fair value of the conversion option and warrants and cannot be considered “indexed to the Company’s own stock” which is a requirement for the scope exception as outlined under ASC 815. The accounting treatment of derivative financial instruments requires that the Company record the embedded conversion option and warrants at their fair values as of the inception date of the agreement and at fair value as of each subsequent balance sheet date. Any change in fair value is recorded as non-operating, non-cash income or expense for each reporting period at each balance sheet date. The Company reassesses the classification of its derivative instruments at each balance sheet date. If the classification changes as a result of events during the period, the contract is reclassified as of the date of the event that caused the reclassification. As a result of entering into a convertible credit facility for which such instruments contained a variable conversion feature with no floor, the Company has adopted a sequencing policy in accordance with ASC 815-40-35-12 whereby all future instruments may be classified as a derivative liability with the exception of instruments related to share-based compensation issued to employees. The Black-Scholes option valuation model was used to estimate the fair value of the warrants and conversion options. The model includes subjective input assumptions that can materially affect the fair value estimates. The Company determined the fair value of the Binomial Lattice Model and the Black-Scholes Valuation Model to be materially the same. The expected volatility is estimated based on the most recent historical period of time equal to the weighted average life of the warrants. Conversion options are recorded as debt discount and are amortized as interest expense over the life of the underlying debt instrument.
Reclassification, Policy [Policy Text Block]	Reclassifications Certain prior period amounts have been reclassified for comparative purposes to conform to the fiscal 2016 presentation. These reclassifications have no impact on the previously reported net loss.
Subsequent Events, Policy [Policy Text Block]	Subsequent Events The Company evaluates events that have occurred after the balance sheet date but before the financial statements are issued. Based upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the consolidated financial statements, except as disclosed in Note 20.
Recently Issued Accounting Pronouncements. Policy [Policy Text Block]	Recently Issued Accounting Standards. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). ASU 2014-09 supersedes the revenue recognition requirements in ASC Topic 605, “Revenue Recognition” and some cost guidance included in ASC Subtopic 605-35, “Revenue Recognition - Construction-Type and Production-Type Contracts.” The core principle of ASU 2014-09 is that revenue is recognized when the transfer of goods or services to customers occurs in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. ASU 2014-09 requires the disclosure of sufficient information to enable readers of the Company’s financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. ASU 2014-09 also requires disclosure of information regarding significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 provides two methods of retrospective application. The first method would require the Company to apply ASU 2014-09 to each prior reporting period presented. The second method would require the Company to retrospectively apply ASU 2014-09 with the cumulative effect recognized at the date of initial application. ASU 2014-09 will be effective for the Company beginning in fiscal 2019 as a result of ASU 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date,” which was issued by the FASB in August 2015 and extended the original effective date by one year. The Company is currently evaluating the impact of adopting the available methodologies of ASU 2014-09 and 2015-14 upon its financial statements in future reporting periods. The Company has not yet selected a transition method. The Company is in the process of evaluating the new standard against its existing accounting policies, including the timing of revenue recognition, and its contracts with customers to determine the effect the guidance will have on its consolidated financial statements and what changes to systems and controls may be warranted. There have been four new ASUs issued amending certain aspects of ASU 2014-09, ASU 2016-08, “Principal versus Agent Considerations (Reporting Revenue Gross Versus Net),” was issued in March, 2016 to clarify certain aspects of the principal versus agent guidance in ASU 2014-09. In addition, ASU 2016-10, “Identifying Performance Obligations and licensing,” issued in April 2016, amends other sections of ASU 2014-09 including clarifying guidance related to identifying performance obligations and licensing implementation. ASU 2016-12, “Revenue from Contracts with Customers - Narrow Scope Improvements and Practical Expedients” provides amendments and practical expedients to the guidance in ASU 2014-09 in the areas of assessing collectability, presentation of sales taxes received from customers, noncash consideration, contract modification and clarification of using the full retrospective approach to adopt ASU 2014-09. Finally, ASU 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers,” was issued in December 2016, and provides elections regarding the disclosures required for remaining performance obligations in certain cases and also makes other technical corrections and improvements to the standard. With its evaluation of the impact of ASU 2014-09, the Company will also consider the impact on its consolidated financial statements related to the updated guidance provided by these four new ASUs. In August 2014, the FASB issued ASU 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. ASU 2014-15 is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. For all entities, the ASU is effective for annual periods ending after December 15, 2016 and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted. The Company adopted this standard for the year ended December 31, 2016, which impacted the disclosure of the going concern. In February 2016, the FASB issued Accounting Standards Update 2016-02, “leases (Topic 842)” (“ASU 2016-02”). The standard requires a lessee to recognize assets and liabilities on the balance sheet for leases with lease terms greater than 12 months. The standard is effective for annual reporting periods beginning after December 15, 2018, which for the Company will commence with the year beginning January 1, 2019, with early application permitted. The adoption will require a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest period presented. The Company is currently evaluating the standard to determine the impact of the adoption on the consolidated financial statements. In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-07 “Investments - Equity Method and Joint Ventures (Topic 323), Simplifying the Transition to the Equity Method of Accounting” (“ASU 2016-07”). ASU 2016-07 which simplifies the accounting for equity method investments by eliminating the requirement that an entity retroactively adopt the equity method of accounting if an investment qualifies for use of the equity method as a result of an increase in the level of ownership or degree of influence. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting The amendments of this ASU are effective for reporting periods beginning after December 15, 2016, with early adoption permitted. The Company adopted this standard for the year ended December 31, 2016. The adoption of this pronouncement did not have a significant impact on the consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, “Compensation – Stock Compensation (Topic 718)” (“ASU 2016-09”). ASU 2016-09 requires an entity to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, with early adoption permitted. The adoption of this pronouncement did not have a significant impact on the consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” ASU No. 2016-15 clarifies and provides specific guidance on eight cash flow classification issues that are not currently addressed by current GAAP and thereby reduce the current diversity in practice. ASU No. 2016-15 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2017, with early application permitted. This guidance is applicable to the Company’s fiscal year beginning January 1, 2018. The Company does not anticipate that this guidance will have a material impact on its consolidated financial statements. In December 2016, the FASB issued ASU 2016-18 “Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force,” which clarifies the presentation requirements of restricted cash within the statement of cash flows. The changes in restricted cash and restricted cash equivalents during the period should be included in the beginning and ending cash and cash equivalents balance reconciliation on the statement of cash flows. When cash, cash equivalents, restricted cash or restricted cash equivalents are presented in more than one line item within the statement of financial position, an entity shall calculate a total cash amount in a narrative or tabular format that agrees to the amount shown on the statement of cash flows. Details on the nature and amounts of restricted cash should also be disclosed. This standard is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. The Company does not expect this new guidance to have a material impact on its financial position or results of operations. In January 2017, the FASB issued ASU 2017-01 “Business Combinations (Topic 805): Clarifying the Definition of a Business”, which clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The standard introduces a screen for determining when assets acquired are not a business and clarifies that a business must include, at a minimum, an input and a substantive process that contribute to an output to be considered a business. This standard is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. The Company is evaluating the impact this pronouncement will have on the consolidated financial statement and disclosures. In January 2017, the Financial Accounting Standard Board (the “FASB”) issued Accounting Standards Update (ASU) 2017-04: “Intangibles — Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”), which removes Step 2 from the goodwill impairment test. It is effective for annual and interim periods beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment test performed with a measurement date after January 1, 2017. The Company is currently evaluating the standard to determine the impact of its adoption on the consolidated financial statements. In July 2015, the FASB issued Accounting Standards Update No. 2015-11, “Simplifying the Measurement of Inventory” (“ASU 2015-11”). ASU 2015-11 requires an entity to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using last in, first-out (“LIFO”) or the retail inventory method. It is effective for annual reporting periods beginning after December 15, 2016. The amendments should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company has not yet determined the effect of the adoption of this standard on the Company’s consolidated financial position and results of operations. Except for rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal securities laws and a limited number of grandfathered standards, the FASB Accounting Standards Codification™ (“ASC”) is the sole source of authoritative GAAP literature recognized by the FASB and applicable to the Company. Management has reviewed the aforementioned rules and releases and believes any effect will not have a material impact on the Company's present or future consolidated financial statements.

SUMMARY OF SIGNIFICANT ACCOUN28

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	As of December 31, 2016 and 2015 the Company’s common stock equivalents outstanding. December 31, 2016 2015 Options 4,681,000 4,100,000 Warrants 22,992,262 7,702,819 Convertible secured debentures 1,554,386 — Total common stock equivalents outstanding 29,227,648 11,802,819

INVENTORY, NET (Tables)

INVENTORY, NET (Tables)	12 Months Ended
	Dec. 31, 2016
Inventory Disclosure [Abstract]
Schedule of Inventory, Current [Table Text Block]	Inventory primarily consists of: December 31, December 31, 2016 2015 Production materials consumables, spare parts, and accessories $ 937,133 $ 891,382 Work in process 853,800 1,470,632 Total at cost 1,709,933 2,362,014 Slow moving inventory reserve (175,000) — Inventory, net $ 1,615,933 $ 2,362,014

PROPERTY AND EQUIPMENT, NET (Ta

PROPERTY AND EQUIPMENT, NET (Tables)	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment [Table Text Block]	Property and equipment consists of: December 31, 2016 2015 Machinery and equipment $ 400,106 $ 347,377 Furniture and office equipment 179,206 133,496 Transportation 303,826 262,995 Production units 4,757,896 4,744,649 Building 2,236,841 1,983,596 7,877,875 7,472,113 Less accumulated depreciation 1,474,944 1,467,123 Property and Equipment, Net $ 6,402,931 $ 6,004,990

INVESTMENT IN JOINT VENTURES (T

INVESTMENT IN JOINT VENTURES (Tables)	12 Months Ended
	Dec. 31, 2016
Equity Method Investments and Joint Ventures [Abstract]
Schedule of Investments in and Advances to Affiliates, Schedule of Investments [Table Text Block]	As of December 31, 2016 the Company’s investments in its joint ventures consisted of the following: December 31, December 31, 2016 2015 Investment: a) MagneGas Europe $ — $ 23,750 b) MagneGas China — 466,660 c) Future Energy PTY, LTD — 229,840 d) Other — 34,351 $ — $ 754,601 a) On June 25, 2010, the Company entered into agreement with a Belgian company, whereby 250,000 shares of the Company’s common stock and territorial license rights were exchanged for a 20% interest in MagneGas Europe. The Company valued the shares issued at the fair value of the shares issued ($23,750). The Company determined it did not have effective or beneficial control of the European entity and the Company accounts for this investment using the equity method. Equity in earnings or loss from MagneGas Europe to date have not been material. The Company has not seen any development of the venture to support the carrying value of the investment and accordingly has recognized an impairment for the full carrying value of the investment. b) On June 28, 2010, the Company entered into an agreement with DDI Industries, a Chinese company, in contemplation of the formation of MagneGas China. The Company provided mechanical drawings (for complete construction), computer programs, license of patents (Greater China Region), trademarks, among other items of the Plasma Arc Flow Recyclers to the joint venture for a 20% interest in MagneGas China. The fair value of the consideration provided was $466,660. The Company determined it did not have effective or beneficial control over the joint entity and accounts for this investment under the equity method. In May of 2016, the original majority owner of the entity, DDI Industries, sold their interest to another entity, Paishi Environment Technologies, also a Chinese entity. Based on the sales price DDI Industries received in the transaction for its controlling interest and the lack of earnings in the joint venture to date, the Company determined the carrying value of the investment was fully impaired. c) On March 19, 2014, the Company signed a joint venture agreement with FutureEnergy Pty Ltd of Australia. Under the terms of the agreement, both parties will own 50% of a new company formed for the purpose of developing, licensing and commercializing new intellectual property for co-combustion of MagneGas fuels with hydrocarbon fuels to reduce emissions and increase energy. This agreement includes and extends beyond the existing partnership of coal co-combustion to include other current and future developments such as the combustion of MagneGas with diesel, heavy oil, aviation fuels, and liquid petroleum gas. The fair value of the Company’s investment was $254,840 and is accounted for under the equity method since day to day control rests with the other partners. This joint venture is a development stage company conducting research and development and research activity and has been minimal to date. During the year ended December 31, 2016 the Company had not seen the development of the venture to support the carrying value of the investment so the Company accordingly has recognized an impairment.

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2016
Schedule of Finite-Lived Intangible Assets [Table Text Block]	Years ending December 31, Amount 2017 $ 55,895 2018 $ 55,895 2019 $ 55,895 2020 $ 55,895 2021 $ 55,895 2022 and thereafter $ 157,646 Total $ 437,121
Patents [Member]
Schedule of Finite-Lived Intangible Assets [Table Text Block]	Intangible assets at December 31, 2016 and 2015 consisted of Patents having a finite life as follows: Gross Carrying Amount Accumulated Amortization Net Carrying Value December 31, December 31, December 31, 2016 2015 2016 2015 2016 2015 Totals: $ 886,990 $ 886,990 $ 449,869 $ 393,974 $ 437,121 $ 493,016

FAIR VALUE (Tables)

FAIR VALUE (Tables)	12 Months Ended
	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Table Text Block]	December 31, 2016 Quoted Prices In Active Significant Markets for Other Significant Identical Observable Unobservable Liabilities Inputs Inputs Total (Level 1) (Level 2) (Level 3) Warrant liability $ 7,195,617 — — $ 7,195,617 Embedded conversion liability $ 504,968 — — $ 504,968 Derivative liability – December 31, 2016 $ 7,700,585 — — $ 7,700,585 December 31, 2015 Quoted Prices In Active Significant Markets for Other Significant Identical Observable Unobservable Liabilities Inputs Inputs Total (Level 1) (Level 2) (Level 3) Warrant liability –December 31, 2015 $ 1,241,841 — — $ 1,241,841
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]	Assumptions utilized in the valuation of Level 3 liabilities are described as follows: For the years ended December 31, 2016 2015 Risk free interest rate 0.2%-2.25 % 0.33 % Expected term .25 to 7.25 years 1.0 years Volatility 51% to 123 % 93 % Dividends $ 0 $ 0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]	Embedded Total Warrant Conversion Derivative Liability Liability Liabilities Balance – December 31, 2014 $ 512,175 $ 512,175 Change in fair value 729,666 729,666 Balance – December 31, 2015 $ 1,241,841 $ — $ 1,241,841 Change in fair value (386,182) 15,556 (370,626) Warrants issued in connection with debt transactions 446,588 553,412 1,000,000 Loss on modification of warrants 2,622,080 Excess fair value of warrants issued over related debt 2,879,291 — 5,591,371 Reclassification of equity instruments to derivative liabilities due to tainting of warrants 5,396,350 — 5,396,350 Reclassifications of derivative liabilities to equity from the exercise of warrants and issuance of shares for convertible debt (5,022,351) (64,000) (5,086,351) Balance – December 31, 2016 $ 7,195,617 $ 504,968 $ 7,700,585

RESTATEMENT OF 2015 FINANCIAL34

RESTATEMENT OF 2015 FINANCIAL STATEMENTS (Tables)	12 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Quantifying Prior Year Misstatements Corrected in Current Year Financial Statements [Table Text Block]	The overall impact was an immaterial reclassification from Stockholders’ equity to derivative liability and a non-cash increase in the Company’s net loss as follows: As Original As Restated Increase reported- 2015 2015 (decrease) Derivative Liability $ -- $ 1,241,841 $ 1,241,841 Net Loss $ (9,141,498) $ (9,871,164) $ 729,666 Total Stockholders’ Equity-December 31, 2015 $ 15,858,104 $ 14,616,263 $ (1,241,841) Accumulated Deficit-December 31, 2014 $ (25,705,213) $ (26,217,388) $ 512,175 Total Stockholders’ Equity-December 31, 2014 $ 16,694,059 $ 16,181,884 $ (512,175)

SENIOR CONVERTIBLE DEBENTURE (T

SENIOR CONVERTIBLE DEBENTURE (Tables)	12 Months Ended
	Dec. 31, 2016
Warrants and Rights Note Disclosure [Abstract]
Schedule of Warrants to Purchase Common Stock [Table Text Block]	In connection with the debenture the Company granted the following warrants to purchase common stock of the Company to the investor as follows: Number of Exercise Expiration Warrants Price Date 3,508,772 $ 1.05 December 23, 2023 1,754,386 $ 1.30 December 23, 2023 7,017,544 $ 1.01 90 days from shareholder approval 3,508,772 $ 1.05 December 27, 2023 1,754,386 $ 1.30 December 27, 2023

CAPITALIZED LEASES (Tables)

CAPITALIZED LEASES (Tables)	12 Months Ended
	Dec. 31, 2016
Leases [Abstract]
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block]	At December 31, 2016, annual minimum future lease payments under this capital lease are as follows: For the year ending December 31, Amount 2017 $ 9,329 2018 9,329 2019 9,329 2020 9,126 Total minimum lease payments 37,113 Less amount representing interest 2,468 Present value of minimum lease payments 34,645 Less current portion of minimum lease 9,328 Long-term present value of minimum lease payment $ 25,317

DEFERRED REVENUE AND CUSTOMER37

DEFERRED REVENUE AND CUSTOMER DEPOSITS (Tables)	12 Months Ended
	Dec. 31, 2016
Deferred Revenue And Customer Deposits [Abstract]
Deferred Revenue And Customer Deposits [Table Text Block]	The Company has received deposits on production units and fees for exclusive territorial license. The Company has deferred the associated revenues until such time that production order is placed and revenue recognition is met. December 31, 2016 2015 South African deposit for future sale $ — $ 20,000 Deposit from Green Arc Supply — 392,500 BioMass Comp. 25,000 — Deferred Revenue and Customer Deposits $ 25,000 $ 412,500

INCOME TAX (Tables)

INCOME TAX (Tables)	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]	Income tax expense (benefit) consist of the following for the years ended December 31, consist of the following: U.S. federal 2016 2015 Current: -- -- Deferred (3,900,000) (2,180,600) State and local Current -- Deferred (400,000) (259,300) Total (4,300,000) (3,439,900) Change in valuation allowance 4,300,000 3,439,900 Income Tax Provision - -
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]	The reconciliation between the U.S. statutory federal income tax rate and the Company’s effective rate for the years ended December 31, 2016 and 2015 is as follows: 2016 2015 U.S. federal statutory rate 34.00 % 34.00 % State income taxes, net of federal benefit 2.41 % 3.45 % State rate change Other permanent items -10.41 % -3.50 % Other -1.46 -- % Change in valuation allowance -24.55 % -33.95 % Effective rate 0.00 % 0.00 %
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]	As of December 31, 2016 and 2015, the Company’s deferred tax assets (liabilities) consisted of the effects of temporary differences attributable to the following: Deferred tax assets 2016 2015 Net Operating Loss carryover $ 16,000,000 $ 11,943,000 Stock-based compensation 900,000 324,000 Other 600,000 733,000 Total deferred tax asset 17,300,000 13,000,000 Less reserve for allowance 17,300,000 13,000,000 Total Deferred tax asset net of valuation allowance $ - $ -

OPTIONS (Tables)

OPTIONS (Tables)	12 Months Ended
	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block]	Weighted Weighted Average Average Options Exercise Remaining Intrinsic Outstanding Price Life (years) Value January 1, 2015 3,540,000 Granted 680,000 Exercised (60,000) Expired (60,000) December 31, 2015 4,100,000 $ 1.32 2.4 $ 968,000 Granted 581,000 $ 0.62 5.0 $ — Exercised — $ — $ — Forfeited — $ — $ — Expired — $ — $ — December 31, 2016 4,681,000 $ 1.37 1.23 $ — Exercisable at December 31, 2016 3,432,208 $ 1.44 1.23 $ — Exercisable at December 31, 2015 3,435,000 $ 1.32 2.4 $ 508,000 The following is additional information with respect to the Company’s options as of December 31, 2016: Weighted Average Remaining Average Number of Range of Contractual Life Exercise Currently Options Exercise Price (in years) Price Exercisable 986,000 $0.62 to $0.99 1.00 $ 1.45 3,069,919 3,695,000 $1.00 to $1.50 3.78 $ 0.62 362,289 4,681,000 3,432,208
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	The fair value of each employee option grant is estimated on the date of the grant using the Black-Scholes option-pricing model. Key weighted-average assumptions used to apply this pricing model during the years ended December 31, 2016 and 2015 were as follows: For the years ended December 31, 2016 2015 Risk free interest rate 0.88%-1.01 % 1.07 % Expected term 4years 3-5 years Volatility 99%-117 % 55.6 % Dividends $ 0 $ 0

WARRANTS (Tables)

WARRANTS (Tables)	12 Months Ended
	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Schedule of Share-based Compensation, warrants, Activity [Table Text Block]	The following table presents the Company’s common stock warrant activity for the years ended December 31, 2016 and 2015: Weighted Weighted Average Average Warrants Exercise Remaining Outstanding Price Life in Years Balance – January 1, 2015 13,189,300 $ 1.85 3.4 Granted — $ Exercised (5,486,481) $ Forfeited — $ Balance -December 31, 2015 7,702,819 $ 1.33 2.4 Granted 27,909,059 $ 0.55 4.6 Exercised (9,571,491) $ 0.01 Forfeited — $ Expired (3,048,125) $ Balance- December 31, 2016 22,992,262 $ 0.91 5.8 Exercisable at December 31, 2016 22,992,262 $ 0.91 5.8 Exercisable at December 31, 2015 7,702,819 2.4
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]	Number of Exercise Warrants Price 608,142 $ 1.35 1,896,552 $ 2.15 2,150,000 $ 1.31 3,508,772 $ 1.05 1,754,386 $ 1.30 7,017,544 $ 0.66 3,508,772 $ 0.90 1,754,386 $ 0.90 793,708 $ 0.01 22,992,262

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 [Table Text Block]	Future minimum lease payments under the above operating lease commitments at December 31, 2016 are as follows: Minimum For the years ending December 31, Amount 2017 $ 118,200 2018 $ 119,000 2019 $ 87,100 2020 $ 20,400 2021 $ 11,900

GOING CONCERN AND MANAGEMENTS'

GOING CONCERN AND MANAGEMENTS' PLAN (Details Textual) - USD ($)	1 Months Ended	12 Months Ended
	Nov. 30, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash		$ 1,616,410	$ 5,319,869	$ 5,061,674
Cash Burn Rate Amount		670,000
Net Income (Loss) Attributable to Parent, Total		(17,469,928)	(9,871,164)
Net Cash Provided by (Used in) Operating Activities, Continuing Operations		(8,639,816)	(5,532,847)
Working Capital Surplus Deficit		4,500,000
Retained Earnings (Accumulated Deficit)		$ (53,558,480)	$ (36,088,552)	$ (26,217,388)
Plasma Arc Gasification system [Member]
Sales Revenue, Goods, Net	$ 775,000

SUMMARY OF SIGNIFICANT ACCOUN43

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	29,227,648	11,802,819
Options Held [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	4,681,000	4,100,000
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	22,992,262	7,702,819
Convertible Debt Securities [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,554,386	0

SUMMARY OF SIGNIFICANT ACCOUN44

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Summary Of Significant Accounting Policies [Line Items]
Advertising Expense	$ 110,755	$ 137,632
Share-based Compensation	346,906	508,570
Inventory Valuation Reserves	$ 175,000	$ 0
Standard Product Warranty Period	1 year
Revenue From Bill-and-Hold Transaction	$ 775,000
Warrant [Member]
Summary Of Significant Accounting Policies [Line Items]
Weighted Average Number Diluted Shares Outstanding Adjustment	793,708
Maximum [Member]
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives	15 years
Finite-Lived Intangible Asset, Useful Life	20 years
Minimum [Member]
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives	3 years
Finite-Lived Intangible Asset, Useful Life	15 years

INVENTORY, NET (Details)

INVENTORY, NET (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Inventory [Line Items]
Production materials consumables, spare parts, and accessories	$ 937,133	$ 891,382
Work in process	853,800	1,470,632
Total at cost	1,709,933	2,362,014
Slow moving inventory reserve	(175,000)	0
Inventory, net	$ 1,615,933	$ 2,362,014

PROPERTY AND EQUIPMENT, NET (De

PROPERTY AND EQUIPMENT, NET (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Property and Equipment, Gross	$ 7,877,875	$ 7,472,113
Less accumulated depreciation	1,474,944	1,467,123
Property and Equipment, Net	6,402,931	6,004,990
Machinery and Equipment [Member]
Property and Equipment, Gross	400,106	347,377
Furniture and Fixtures [Member]
Property and Equipment, Gross	179,206	133,496
Transportation [Member]
Property and Equipment, Gross	303,826	262,995
Production Units [Member]
Property and Equipment, Gross	4,757,896	4,744,649
Building [Member]
Property and Equipment, Gross	$ 2,236,841	$ 1,983,596

PROPERTY AND EQUIPMENT, NET (47

PROPERTY AND EQUIPMENT, NET (Details Textual)	12 Months Ended
	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Depreciation	$ 594,992	$ 509,663
Number Of Demonstration Units	631,000
Loss on disposal of property and equipment	$ 1,049,305	$ 483,630

INVESTMENT IN JOINT VENTURES (D

INVESTMENT IN JOINT VENTURES (Details) - USD ($)		Dec. 31, 2016	Dec. 31, 2015
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures, Total		$ 0	$ 754,601
MagneGas Europe [Member]
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures, Total	[1]	0	23,750
MagneGas China [Member]
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures, Total	[2]	0	466,660
FutureEnergy Pty Ltd. [Member]
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures, Total	[3]	0	229,840
Other [Member]
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures, Total		$ 0	$ 34,351
[1]	On June 25, 2010, the Company entered into agreement with a Belgian company, whereby 250,000 shares of the Company’s common stock and territorial license rights were exchanged for a 20% interest in MagneGas Europe. The Company valued the shares issued at the fair value of the shares issued ($23,750). The Company determined it did not have effective or beneficial control of the European entity and the Company accounts for this investment using the equity method. Equity in earnings or loss from MagneGas Europe to date have not been material. The Company has not seen any development of the venture to support the carrying value of the investment and accordingly has recognized an impairment for the full carrying value of the investment.
[2]	On June 28, 2010, the Company entered into an agreement with DDI Industries, a Chinese company, in contemplation of the formation of MagneGas China. The Company provided mechanical drawings (for complete construction), computer programs, license of patents (Greater China Region), trademarks, among other items of the Plasma Arc Flow Recyclers to the joint venture for a 20% interest in MagneGas China. The fair value of the consideration provided was $466,660. The Company determined it did not have effective or beneficial control over the joint entity and accounts for this investment under the equity method. In May of 2016, the original majority owner of the entity, DDI Industries, sold their interest to another entity, Paishi Environment Technologies, also a Chinese entity. Based on the sales price DDI Industries received in the transaction for its controlling interest and the lack of earnings in the joint venture to date, the Company determined the carrying value of the investment was fully impaired.
[3]	On March 19, 2014, the Company signed a joint venture agreement with FutureEnergy Pty Ltd of Australia. Under the terms of the agreement, both parties will own 50% of a new company formed for the purpose of developing, licensing and commercializing new intellectual property for co-combustion of MagneGas fuels with hydrocarbon fuels to reduce emissions and increase energy. This agreement includes and extends beyond the existing partnership of coal co-combustion to include other current and future developments such as the combustion of MagneGas with diesel, heavy oil, aviation fuels, and liquid petroleum gas. The fair value of the Company’s investment was $254,840 and is accounted for under the equity method since day to day control rests with the other partners. This joint venture is a development stage company conducting research and development and research activity and has been minimal to date. During the year ended December 31, 2016 the Company had not seen the development of the venture to support the carrying value of the investment so the Company accordingly has recognized an impairment.

INVESTMENT IN JOINT VENTURES 49

INVESTMENT IN JOINT VENTURES (Details Textual) - USD ($)	1 Months Ended
	Mar. 19, 2014	Dec. 31, 2016	Jun. 28, 2010	Jun. 25, 2010
Options Outstanding, Forfeited
MagneGas Corporation's common stock exchanged to purchase the interest in MagneGas Europe				250,000
Ownership interest				20.00%
Company valued the investment in the Joint Venture at the fair market value of the shares issued				$ 23,750
Share of subsidiary given to party in addition to agreement exchange price			20.00%
Company's investment for technology license			$ 466,660
Debt Instrument, Description	Under the terms of the agreement, both parties will own 50%
Investment Of Company For Research And Development And Research Activity	$ 254,840
Investment in Joint Ventures [Member]
Options Outstanding, Forfeited
Ownership interest		20.00%
confidential partner [Member] | Investment in Joint Ventures [Member]
Options Outstanding, Forfeited
Ownership interest	50.00%

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Accumulated amortization (in dollars)	$ 401,277	$ 345,382
Net Carrying Value	437,121	493,016
Patents [Member]
Gross Carrying Amount	886,990	886,990
Accumulated amortization (in dollars)	449,869	393,974
Net Carrying Value	$ 437,121	$ 493,016

INTANGIBLE ASSETS (Details 1)

INTANGIBLE ASSETS (Details 1) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Years ending December 31,
2,017	$ 55,895
2,018	55,895
2,019	55,895
2,020	55,895
2,021	55,895
2022 and thereafter	157,646
Total	$ 437,121	$ 493,016

INTANGIBLE ASSETS (Details Text

INTANGIBLE ASSETS (Details Textual) - Patents [Member] - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Finite-Lived Intangible Asset, Useful Life	8 years 6 months 29 days
Amortization of Intangible Assets	$ 55,895	$ 48,468

FAIR VALUE (Details)

FAIR VALUE (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Derivative Liability	$ 7,700,585
Embedded Derivative Financial Instruments [Member]
Derivative Liability	504,968
Warrant [Member]
Derivative Liability	7,195,617	$ 1,241,841
Fair Value, Inputs, Level 1 [Member]
Derivative Liability	0
Fair Value, Inputs, Level 1 [Member] | Embedded Derivative Financial Instruments [Member]
Derivative Liability	0
Fair Value, Inputs, Level 1 [Member] | Warrant [Member]
Derivative Liability	0	0
Fair Value, Inputs, Level 2 [Member]
Derivative Liability	0
Fair Value, Inputs, Level 2 [Member] | Embedded Derivative Financial Instruments [Member]
Derivative Liability	0
Fair Value, Inputs, Level 2 [Member] | Warrant [Member]
Derivative Liability	0	0
Fair Value, Inputs, Level 3 [Member]
Derivative Liability	7,700,585
Fair Value, Inputs, Level 3 [Member] | Embedded Derivative Financial Instruments [Member]
Derivative Liability	504,968
Fair Value, Inputs, Level 3 [Member] | Warrant [Member]
Derivative Liability	$ 7,195,617	$ 1,241,841

FAIR VALUE (Details 1)

FAIR VALUE (Details 1) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Risk free interest rate		0.33%
Expected term		1 year
Volatility		93.00%
Dividends	$ 0	$ 0
Maximum [Member]
Risk free interest rate	2.25%
Expected term	7 years 3 months
Volatility	123.00%
Minimum [Member]
Risk free interest rate	0.20%
Expected term	3 months
Volatility	51.00%

FAIR VALUE (Details 2)

FAIR VALUE (Details 2) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Balance - Beginning	$ 1,241,841	$ 512,175
Change in fair value	(370,626)	729,666
Warrants issued in connection with debt transactions	1,000,000
Loss on modification of warrants
Excess fair value of warrants issued over related debt	5,591,371
Reclassification of equity instruments to derivative liabilities due to tainting of warrants	5,396,350
Reclassifications of derivative liabilities to equity from the exercise of warrants and issuance of shares for convertible debt	(5,086,351)
Balance - Ending	7,700,585	1,241,841
Warrant [Member]
Balance - Beginning	1,241,841	512,175
Change in fair value	(386,182)	729,666
Warrants issued in connection with debt transactions	446,588
Loss on modification of warrants	2,622,080
Excess fair value of warrants issued over related debt	2,879,291
Reclassification of equity instruments to derivative liabilities due to tainting of warrants	5,396,350
Reclassifications of derivative liabilities to equity from the exercise of warrants and issuance of shares for convertible debt	(5,022,351)
Balance - Ending	7,195,617	1,241,841
Embedded Derivative Financial Instruments [Member]
Balance - Beginning	0
Change in fair value	15,556
Warrants issued in connection with debt transactions	553,412
Loss on modification of warrants
Excess fair value of warrants issued over related debt	0
Reclassification of equity instruments to derivative liabilities due to tainting of warrants	0
Reclassifications of derivative liabilities to equity from the exercise of warrants and issuance of shares for convertible debt	(64,000)
Balance - Ending	$ 504,968	$ 0

FAIR VALUE (Details Textual)

FAIR VALUE (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Fair Value Assumptions, Expected Dividend Payments	$ 0	$ 0
Equity Method Investment, Other than Temporary Impairment	$ 806,716	$ 0

RESTATEMENT OF 2015 FINANCIAL57

RESTATEMENT OF 2015 FINANCIAL STATEMENTS (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Derivative Liability	$ 7,700,585	$ 1,241,841
Net Loss	(17,469,928)	(9,871,164)
Balance	3,828,565	14,616,263
Accumulated Deficit	(53,558,480)	(36,088,552)	$ (26,217,388)
Balance	14,616,263	16,181,884
Scenario, Previously Reported [Member]
Derivative Liability		0
Net Loss		(9,141,498)
Balance		15,858,104
Accumulated Deficit			(25,705,213)
Balance	15,858,104	16,694,059
Restatement Adjustment [Member]
Derivative Liability		1,241,841
Net Loss		729,666
Balance		(1,241,841)
Accumulated Deficit			$ 512,175
Balance	$ (1,241,841)	$ (512,175)

NOTE PAYABLE (Details Textual)

NOTE PAYABLE (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Notes Payable	$ 520,000	$ 520,000
Convertible Notes Payable [Member]
Debt Instrument, Interest Rate, Stated Percentage	6.50%
Debt Instrument, Periodic Payment, Interest	$ 2,816
Debt Instrument Maturity Year and Month	2024-10

SENIOR CONVERTIBLE DEBENTURE (D

SENIOR CONVERTIBLE DEBENTURE (Details)	12 Months Ended
	Dec. 31, 2016$ / sharesshares
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares	$ 0.01
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares	5,263,158
Warrant One [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares	$ 1.05
Warrants Expiration Date	Dec. 23, 2023
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares	3,508,772
Warrant Two [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares	$ 1.30
Warrants Expiration Date	Dec. 23, 2023
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares	1,754,386
Warrant Three [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares	$ 1.01
Class of Warrant or Right, Warrants Expiration Description	90 days from shareholder approval
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares	7,017,544
Warrant Four [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares	$ 1.05
Warrants Expiration Date	Dec. 27, 2023
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares	3,508,772
Warrant Five [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares	$ 1.30
Warrants Expiration Date	Dec. 27, 2023
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares	1,754,386

SENIOR CONVERTIBLE DEBENTURE 60

SENIOR CONVERTIBLE DEBENTURE (Details Textual) - USD ($)	1 Months Ended		12 Months Ended
	Oct. 31, 2016	Jun. 27, 2016	Dec. 31, 2016	Dec. 31, 2015
Debt Instrument, Face Amount	$ 886,000
Class of Warrant or Right, Number of Securities Called by Warrants or Rights			5,263,158
Class of Warrant or Right, Exercise Price of Warrants or Rights			$ 0.01
Proceeds from Issuance of Warrants			$ 2,540,821	$ 0
Loss Contingency, Estimate of Possible Loss			80,000
Embedded Derivative, Fair Value of Embedded Derivative Liability			6,675,000
Interest Expense, Debt			$ 2,622,080
Loss Contingency Estimate Of Possible Loss Percentage			2.00%
Discount On Issue Of Warrants And Debentures			$ 1,000
Warrants Expiration Term			6 months
Amortization of Debt Discount (Premium)			$ 189,000
Conversion of Stock, Shares Converted	200,000
Investor [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights			$ 0.01
Proceeds from Issuance of Warrants			$ 2,540,821
Senior Notes [Member]
Debt Instrument, Face Amount		$ 1,000,000
Debt Instrument, Convertible, Conversion Price		$ 0.57
Debt Instrument, Interest Rate, Stated Percentage		0.00%
Debt Instrument Maturity Period		June 2,021
Debt Instrument, Convertible, Terms of Conversion Feature		The holder of the debenture will not have the right to convert any portion of the debenture if the holder, together with its affiliates, would beneficially own in excess of 9.99% of the number of shares of the Companys common stock outstanding immediately after giving effect to such conversion.

CAPITALIZED LEASES (Details)

CAPITALIZED LEASES (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
2,017	$ 9,329
2,018	9,329
2,019	9,329
2,020	9,126
Total minimum lease payments	37,113
Less amount representing interest	2,468
Present value of minimum lease payments	34,645
Less current portion of minimum lease	9,328	$ 7,891
Long-term present value of minimum lease payment	$ 25,317	$ 32,177

CAPITALIZED LEASES (Details Tex

CAPITALIZED LEASES (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Capital Leases of Lessee, Contingent Rentals, Expiration Period	2020-07
Capital Leased Assets, Gross	$ 34,645	$ 34,645
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment, Excluding Capital Leased Assets	$ 11,036	$ 2,442
Capital Lease Obligation, Interest Rate	4.00%

DEFERRED REVENUE AND CUSTOMER63

DEFERRED REVENUE AND CUSTOMER DEPOSITS (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Deferred Revenue Arrangement [Line Items]
Deferred revenue and customer deposits	$ 25,000	$ 412,500
South African deposit for future sale [Member]
Deferred Revenue Arrangement [Line Items]
Deferred revenue and customer deposits, Gross	0	20,000
Deposit from Green Arc Supply to Be Recognized at Completion of Sale [Member]
Deferred Revenue Arrangement [Line Items]
Deferred revenue and customer deposits, Gross	0	392,500
BioMass Comp [Member]
Deferred Revenue Arrangement [Line Items]
Deferred revenue and customer deposits, Gross	$ 25,000	$ 0

INCOME TAX (Details)

INCOME TAX (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Current:
Deferred	$ (3,900,000)	$ (2,180,600)
Current
Deferred	(400,000)	(259,300)
Total	(4,300,000)	(3,439,900)
Change in valuation allowance	4,300,000	3,439,900
Income Tax Provision	$ 0	$ 0

INCOME TAX (Details 1)

INCOME TAX (Details 1)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
U.S. federal statutory rate	34.00%	34.00%
State income taxes, net of federal benefit	2.41%	3.45%
Other permanent items	(10.41%)	(3.50%)
Other	(1.46%)	0.00%
Change in valuation allowance	(24.55%)	(33.95%)
Effective rate	0.00%	0.00%

INCOME TAX (Details 2)

INCOME TAX (Details 2) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Deferred tax assets
Net Operating Loss carryover	$ 16,000,000	$ 11,943,000
Stock-based compensation	900,000	324,000
Other	600,000	733,000
Total deferred tax asset	17,300,000	13,000,000
Less reserve for allowance	17,300,000	13,000,000
Total Deferred tax asset net of valuation allowance	$ 0	$ 0

INCOME TAX (Details Textual)

INCOME TAX (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Operating Loss Carryforwards [Line Items]
Change in valuation allowance	$ 4,300,000	$ 3,439,900
Domestic Tax Authority [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	42,374,000	42,374,000
State and Local Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	$ 31,616,000	$ 31,616,000

COMMON STOCK AND PREFERRED ST68

COMMON STOCK AND PREFERRED STOCK (Details Textual) - USD ($)	1 Months Ended	12 Months Ended
	Oct. 31, 2016	Dec. 31, 2016	Dec. 31, 2015
Common Stock, Shares Authorized		90,000,000	90,000,000
Common Stock, Par or Stated Value Per Share		$ 0.001	$ 0.001
Common Stock, Shares, Issued		58,040,267	45,599,534
Common Stock, Shares, Outstanding		58,040,267	45,599,534
Proceeds from Issuance of Common Stock		$ 2,785,287	$ 0
Class of Warrant or Right, Expiration Period		1 year
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 0.01
Stock Issued During Period, Value, Issued for Services		$ 1,109,500	$ 1,201,241
Stock Issued During Period Shares, Warrants Exercised		9,571,491	5,538,556
Proceeds from Warrant Exercises		$ 95,715	$ 6,595,732
Stock Issued During Period, Value, Conversion of Convertible Securities		$ 114,000
Preferred Stock, Shares Authorized		10,000,000	10,000,000
Preferred Stock, Shares Issued		1,000,000	1,000,000
Preferred Stock, Shares Outstanding		1,000,000	1,000,000
Conversion of Stock, Shares Converted	200,000
Preferred Stock, Par or Stated Value Per Share		$ 0.001	$ 0.001
Consultant [Member]
Stock Issued During Period, Shares, Issued for Services		1,648,834	1,369,483
Stock Issued During Period, Value, Issued for Services		$ 1,109,500	$ 1,201,241
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period			50,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price			$ 1.17
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period			47,500
Non-executive employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period			10,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price			$ 0.75
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period			4,565
Common Stock [Member]
Stock Issued During Period, Shares, New Issues		1,020,408
Stock Issued During Period, Shares, Issued for Services		1,648,834	1,369,483
Stock Issued During Period, Value, Issued for Services		$ 1,649	$ 1,368
Stock Issued During Period, Value, Conversion of Convertible Securities		$ 200
Stock Issued During Period, Shares, Conversion of Convertible Securities		200,000
Warrant [Member]
Stock Issued During Period, Shares, New Issues		793,708
Series A Preferred Stock [Member]
Preferred Stock, Shares Authorized		1,000,000
Preferred Stock, Shares Issued		1,000,000	1,000,000
Preferred Stock, Shares Outstanding		1,000,000	1,000,000
Preferred Stock Voting Rights, Number		100,000	100,000
Series D 1 Preferred Stock [Member]
Conversion of Stock, Shares Issued			1,060,000
Conversion of Stock, Shares Converted			1,060
Series B Convertible Preferred Stock [Member]
Preferred Stock, Shares Authorized		2,142
Preferred Stock, Conversion Price Per Share		$ 0.80
Series C Convertible Preferred Stock [Member]
Preferred Stock, Shares Authorized		2,200
Preferred Stock, Conversion Price Per Share		$ 1.45
Series D-1 Convertible Preferred Stock [Member]
Preferred Stock, Shares Authorized		1,060
Preferred Stock, Conversion Price Per Share		$ 1
Series D-2 Convertible Preferred Stock [Member]
Preferred Stock, Shares Authorized		940
Conversion of Stock, Shares Converted			940
Preferred Stock, Conversion Price Per Share		$ 1
Convertible Preferred Stock, Shares Issued upon Conversion			940,000

OPTIONS (Details)

OPTIONS (Details) - Option And Warrant [Member] - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Summary Of Outstanding Options And Warrants [Line Items]
Options Outstanding, Beginning Balance	4,100,000	3,540,000
Options Outstanding, Granted	581,000	680,000
Options Outstanding, Exercised	0	(60,000)
Options Outstanding, Forfeited	0
Options Outstanding, Expired	0	(60,000)
Options Outstanding, Ending Balance	4,681,000	4,100,000
Options Outstanding, Exercisable	3,432,208	3,435,000
Weighted Average Exercise Price, Beginning Balance	$ 1.32	$ 0
Weighted Average Exercise Price, Granted	0.62	0
Weighted Average Exercise Price, Exercised	0
Weighted Average Exercise Price, Forfeited	0
Weighted Average Exercise Price, Expired	0
Weighted Average Exercise Price, Ending Balance	1.37	1.32
Weighted Average Exercise Price, Exercisable	$ 1.44	$ 1.32
Options outstanding, Weighted Average Remaining Term	1 year 2 months 23 days	2 years 4 months 24 days
Options Granted, Weighted Average Remaining Term	5 years
Exercisable, Weighted Average Remaining Term	1 year 2 months 23 days	2 years 4 months 24 days
Intrinsic Value, Balance		$ 0
Intrinsic Value, Outstanding	$ 0	$ 968,000
Intrinsic Value, Exercisable	$ 0	$ 508,000

OPTIONS (Details 1)

OPTIONS (Details 1)	12 Months Ended
	Dec. 31, 2016$ / sharesshares
Number of Options | shares	4,681,000
Currently Exercisable | shares	3,432,208
Range One [Member]
Number of Options | shares	986,000
Range of Exercise Price, Minimum | $ / shares	$ 0.62
Range of Exercise Price, Maximum | $ / shares	$ 0.99
Weighted Average Remaining Contractual Life (in years)	1 year
Average Exercise Price | $ / shares	$ 1.45
Currently Exercisable | shares	3,069,919
Range Two [Member]
Number of Options | shares	3,695,000
Range of Exercise Price, Minimum | $ / shares	$ 1
Range of Exercise Price, Maximum | $ / shares	$ 1.50
Weighted Average Remaining Contractual Life (in years)	3 years 9 months 11 days
Average Exercise Price | $ / shares	$ 0.62
Currently Exercisable | shares	362,289

OPTIONS (Details 2)

OPTIONS (Details 2)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Risk free interest rate		1.07%
Expected term	4 years
Volatility		55.60%
Dividends	0.00%	0.00%
Maximum [Member]
Risk free interest rate	1.01%
Expected term		5 years
Volatility	117.00%
Minimum [Member]
Risk free interest rate	0.88%
Expected term		3 years
Volatility	99.00%

OPTIONS (Details Textual)

OPTIONS (Details Textual) - USD ($)	1 Months Ended			12 Months Ended
	Feb. 29, 2016	Jun. 30, 2015	Feb. 28, 2015	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Options Outstanding, Nonvested, Weighted Average Grant Date Fair Value				$ 971,417
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Nonvested, Weighted Average Remaining Contractual Term				2 years 9 months 18 days
Stock Issued During Period, Value, Issued for Services				$ 1,109,500	$ 1,201,241
Three Executive Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			350,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price			$ 0.72
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	45.00%		55.00%
Percentage of Performance Criteria Achieved	45.00%		55.00%
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares	332,500		192,500
Thirty six non-executive employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		250,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price		$ 1.16
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights		50% on the year 1 grant anniversary; and 25% on each of the year 2 and year 3 grant anniversaries.
One Executive Employee And One Non Executive Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		80,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price		$ 1.16
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights		50% on the year 1 grant anniversary; and 25% on each of the year 2 and year 3 grant anniversaries.
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized				2,011,603
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period				0 years
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Description and Terms				Incentive stock options are granted at exercise prices not less than 100% of the estimated fair market value of the underlying common stock at date of grant.
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date				Aug. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant				394,269
Employee Stock Option [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period				0 years
Employee Stock Option [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date				Aug. 31, 2021
Employee Stock Option [Member] | Employees [Member]
Stock Issued During Period, Shares, Issued for Services				75,000
Consultant [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price				$ 0.62
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period				3 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross				506,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Life Term				5 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Granted in Period, Fair Value				$ 175,700
Consultant [Member] | Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price				$ 0.91
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period				3 years
Stock Issued During Period, Value, Issued for Services				$ 47,600
Share-based Compensation Arrangement by Share-based Payment Award, Options, Life Term				5 years

WARRANTS (Details)

WARRANTS (Details) - Warrant [Member] - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Warrants Outstanding, Beginning Balance	7,702,819	13,189,300
Warrants Outstanding, Granted	27,909,059	0
Warrants Outstanding, Exercised	(9,571,491)	(5,486,481)
Warrants Outstanding, Forfeited	0	0
Warrants Outstanding, Expired	(3,048,125)
Warrants Outstanding, Ending Balance	22,992,262	7,702,819	13,189,300
Warrants Outstanding, Exercisable	22,992,262	7,702,819
Weighted Average Exercise Price, Beginning Balance	$ 1.33	$ 1.85
Weighted Average Exercise Price, Granted	0.55	0
Weighted Average Exercise Price, Exercised	0.01	0
Weighted Average Exercise Price, Ending Balance	0.91	$ 1.33	$ 1.85
Weighted Average Exercise Price, Exercisable	$ 0.91
Weighted Average Remaining Life in Years, Granted	4 years 7 months 6 days	0 years
Weighted Average Remaining Life in Years	5 years 9 months 18 days	2 years 4 months 24 days	3 years 4 months 24 days
Weighted Average Remaining Life in Years, Exercisable	5 years 9 months 18 days	2 years 4 months 24 days

WARRANTS (Details 1)

WARRANTS (Details 1) - Warrant [Member]	Dec. 31, 2016$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Warrants	22,992,262
Warrant One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Warrants	608,142
Exercise Price | $ / shares	$ 1.35
Warrant Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Warrants	1,896,552
Exercise Price | $ / shares	$ 2.15
Warrant Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Warrants	2,150,000
Exercise Price | $ / shares	$ 1.31
Warrant Four [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Warrants	3,508,772
Exercise Price | $ / shares	$ 1.05
Warrant Five [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Warrants	1,754,386
Exercise Price | $ / shares	$ 1.30
Warrant Six [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Warrants	7,017,544
Exercise Price | $ / shares	$ 0.66
Warrant Seven [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Warrants	3,508,772
Exercise Price | $ / shares	$ 0.90
Warrant Eight [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Warrants	1,754,386
Exercise Price | $ / shares	$ 0.90
Warrant Nine [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Warrants	793,708
Exercise Price | $ / shares	$ 0.01

WARRANTS (Details Textual)

WARRANTS (Details Textual) - Warrant [Member] - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Class of Warrant or Right, Weighted Average Remaining Contractual Term	6 years 4 months 24 days
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Number of Warrants Modified	12,280,702
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other Than Options, Outstanding, Weighted Average Exercise Price	$ 0.91	$ 1.33	$ 1.85
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Incremental Compensation Cost	$ 2,897,291
Initial Expiration Period [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	3 months
Modified Expiration Period [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	7 years 6 months
Initial Exercise Price [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other Than Options, Outstanding, Weighted Average Exercise Price	$ 1.01
Modified Exercise Price [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other Than Options, Outstanding, Weighted Average Exercise Price	$ 0.66

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Textual)	12 Months Ended
	Dec. 31, 2016USD ($)ft²shares	Dec. 31, 2015USD ($)	Jun. 25, 2010
Related Party Transaction [Line Items]
Operating Leases, Rent Expense	$ 48,000	$ 48,000
Stock Issued During Period, Shares, Acquisitions | shares	25,000
Area of Land | ft²	5,000
Equity Method Investment, Ownership Percentage			20.00%
Investment in Joint Ventures [Member]
Related Party Transaction [Line Items]
Equity Method Investment, Ownership Percentage	20.00%
Director [Member] | EcoPlus, Inc [Member]
Related Party Transaction [Line Items]
Common Stock, Voting Rights	the holder of 1,000 shares of Series A Preferred Stock which, in turn, has 100,000 votes per share on any matters brought to a vote of the common stock shareholders.
Stockholders [Member]
Related Party Transaction [Line Items]
Operating Leases, Rent Expense	$ 4,000

COMMITMENTS AND CONTINGENCIES77

COMMITMENTS AND CONTINGENCIES (Details)	Dec. 31, 2016USD ($)
Loss Contingencies [Line Items]
2,017	$ 118,200
2,018	119,000
2,019	87,100
2,020	20,400
2,021	$ 11,900

COMMITMENTS AND CONTINGENCIES78

COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($)	1 Months Ended	12 Months Ended
	Apr. 16, 2015	Dec. 31, 2016	Dec. 31, 2015
Loss Contingencies [Line Items]
Litigation Settlement, Amount	$ 52,000
Operating Leases, Rent Expense, Net		$ 158,370	$ 129,600
Sales Revenue, Net [Member]
Loss Contingencies [Line Items]
Concentration Risk, Percentage		22.00%
Sales Revenue, Goods, Net		$ 775,000

SUBSEQUENT EVENTS (Details Text

SUBSEQUENT EVENTS (Details Textual) - shares	Mar. 13, 2017	Mar. 31, 2017	Dec. 31, 2016
Warrant [Member]
Subsequent Event [Line Items]
Stock Issued During Period, Shares, New Issues			793,708
Subsequent Event [Member] | Convertible Debenture [Member]
Subsequent Event [Line Items]
Debt Conversion, Converted Instrument, Shares Issued	100,000
Subsequent Event [Member] | Employees [Member] | Amended and Restated Equity Incentive Award Plan [Member]
Subsequent Event [Line Items]
Stock Issued During Period, Shares, New Issues		412,500
Subsequent Event [Member] | Consultants [Member] | Amended and Restated Equity Incentive Award Plan [Member]
Subsequent Event [Line Items]
Stock Issued During Period, Shares, New Issues		31,056
Stock Issued During Period, Shares, Issued for Services		220,000