Cellular Biomedicine (CBMG) 10-Q 6 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Oct. 31, 2018
Document And Entity Information
Entity Registrant Name	Cellular Biomedicine Group, Inc.
Entity Central Index Key	1,378,624
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity's Reporting Status Current	Yes
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding		18,396,503
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,018

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)		Sep. 30, 2018	Dec. 31, 2017
Assets
Cash and cash equivalents		$ 57,925,198	$ 21,568,422
Short-term investment		10,000,000	0
Accounts receivable, less allowance for doubtful amounts of $94,648 and $10,789 as of September 30, 2018 and December 31, 2017, respectively		37,592	202,887
Other receivables		249,771	170,842
Prepaid expenses		2,132,910	1,852,695
Total current assets		70,345,471	23,794,846
Long-term investments		240,000	269,424
Property, plant and equipment, net		14,313,801	12,973,342
Goodwill		7,678,789	7,678,789
Intangibles, net		8,153,428	12,419,692
Long-term prepaid expenses and other assets		5,683,464	4,026,203
Total assets	[1]	106,414,953	61,162,296
Liabilities:
Accounts payable		483,986	225,287
Accrued expenses		1,456,911	1,097,327
Taxes payable		28,875	28,875
Other current liabilities		3,960,765	2,324,632
Total current liabilities		5,930,537	3,676,121
Other non-current liabilities		441,093	183,649
Total liabilities	[1]	6,371,630	3,859,770
Commitments and Contingencies (note 11)
Stockholders' equity:
Preferred stock, par value $.001, 50,000,000 shares authorized; none issued and outstanding as of September 30, 2018 and December 31, 2017, respectively		0	0
Common stock, par value $.001, 300,000,000 shares authorized; 19,093,243 and 15,615,558 issued; and 18,532,475 and 15,188,764 outstanding, as of September 30, 2018 and December 31, 2017, respectively		19,093	15,616
Treasury stock at cost; 560,768 and 426,794 shares of common stock as of September 30, 2018 and December 31, 2017, respectively		(6,513,993)	(3,977,929)
Additional paid in capital		249,527,729	172,691,339
Accumulated deficit		(141,463,260)	(111,036,997)
Accumulated other comprehensive loss		(1,526,246)	(389,503)
Total stockholders' equity		100,043,323	57,302,526
Total liabilities and stockholders' equity		$ 106,414,953	$ 61,162,296
[1]	The Company's consolidated assets as of September 30, 2018 and December 31, 2017 included $25,103,395 and $21,775,087, respectively, of assets of variable interest entities, or VIEs, that can only be used to settle obligations of the VIEs. Each of the following amounts represent the balances as of September 30, 2018 and December 31, 2017, respectively. These assets include cash and cash equivalents of $3,444,121 and $2,337,173; other receivables of $65,530 and $61,735; prepaid expenses of $1,997,163 and $1,750,509; property, plant and equipment, net, of $13,407,165 and $12,477,315; intangibles of $1,314,833 and $1,516,449; and long-term prepaid expenses and other assets of $4,874,583 and $3,631,906 as of September 30, 2018 and December 31, 2017, respectively. The Company's consolidated liabilities as of September 30, 2018 and December 31, 2017 included $4,961,475 and $2,688,520, respectively, of liabilities of the VIEs whose creditors have no recourse to the Company. These liabilities include accounts payable of $311,348 and $181,231; other payables of $3,105,400 and $1,631,582; accrued payroll of $1,092,669 and $682,248, which mainly includes bonus accrual of $1,025,917 and $673,443; deferred income of $10,965 and $9,810; and other non-current liabilities of $441,093 and $183,649. See further description in Note 3, Variable Interest Entities.

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Allowance for doubtful amounts	$ 94,648	$ 10,789
Stockholders' equity:
Preferred stock par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, authorized	300,000,000	300,000,000
Common stock, issued	19,093,243	15,615,558
Common stock, outstanding	18,532,475	15,188,764
Treasury stock	560,768	426,794

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Condensed Consolidated Statements Of Operations And Comprehensive Loss
Net sales and revenue	$ 70,431	$ 106,787	$ 198,705	$ 268,126
Operating expenses:
Cost of sales	37,483	55,294	114,176	130,793
General and administrative	3,315,614	3,023,390	9,626,106	9,527,730
Selling and marketing	84,782	85,742	252,247	280,011
Research and development	6,545,490	4,076,186	17,985,997	10,469,820
Impairment on non-current assets	2,884,896	0	2,914,320	0
Total operating expenses	12,868,265	7,240,612	30,892,846	20,408,354
Operating loss	(12,797,834)	(7,133,825)	(30,694,141)	(20,140,228)
Other income:
Interest income	18,173	23,933	140,457	113,688
Other income	38,376	907,678	132,300	1,461,265
Total other income	56,549	931,611	272,757	1,574,953
Loss before taxes	(12,741,285)	(6,202,214)	(30,421,384)	(18,565,275)
Income taxes provision	(2,479)	0	(4,879)	(2,450)
Net loss	(12,743,764)	(6,202,214)	(30,426,263)	(18,567,725)
Other comprehensive income (loss):
Cumulative translation adjustment	(834,382)	291,665	(1,136,743)	637,786
Unrealized loss on investments, net of tax	0	0	0	(240,000)
Total other comprehensive income (loss)	(834,382)	291,665	(1,136,743)	397,786
Comprehensive loss	$ (13,578,146)	$ (5,910,549)	$ (31,563,006)	$ (18,169,939)
Net loss per share:
Basic and diluted	$ (0.72)	$ (0.43)	$ (1.76)	$ (1.30)
Weighted average common shares outstanding:
Basic and diluted	17,604,473	14,349,569	17,281,240	14,310,344

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (30,426,263)	$ (18,567,725)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	3,790,436	2,125,391
Loss on disposal of assets	4,593	317
Stock based compensation expense	3,748,082	4,240,822
Other than temporary impairment on long-term investments	29,424	0
Impairment on intangible assets	2,884,896	0
Allowance for doubtful account	83,992	0
Changes in operating assets and liabilities:
Accounts receivable	70,155	(103,701)
Other receivables	(81,892)	(496,229)
Prepaid expenses	(376,821)	(669,592)
Long-term prepaid expenses and other assets	(333,647)	(936,168)
Accounts payable	41,791	1,012,693
Accrued expenses	396,639	(475,274)
Deferred income	(12,114)	510,419
Other current liabilities	541,074	(206,196)
Other non-current liabilities	280,319	(386,504)
Net cash used in operating activities	(19,359,336)	(13,951,747)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from disposal of assets	292	286
Putting six-month deposits with the banks	(10,000,000)	0
Purchases of intangibles	(33,495)	(23,562)
Purchases of assets	(4,438,135)	(6,978,348)
Net cash used in investing activities	(14,471,338)	(7,001,624)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from the issuance of common stock	70,383,181	0
Proceeds from exercise of stock options	2,708,603	232,910
Repurchase of treasury stock	(2,536,064)	(2,443,122)
Net cash provided by financing activities	70,555,720	(2,210,212)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	(368,270)	203,182
INCREASE IN CASH AND CASH EQUIVALENTS	36,356,776	(22,960,401)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	21,568,422	39,252,432
CASH AND CASH EQUIVALENTS, END OF PERIOD	57,925,198	16,292,031
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for income taxes	$ 4,879	$ 0

1. DESCRIPTION OF BUSINESS

1. DESCRIPTION OF BUSINESS	9 Months Ended
	Sep. 30, 2018
Description Of Business
1. DESCRIPTION OF BUSINESS	As used in this quarterly report, "we", "us", "our", "CBMG", "Company" or "our company" refers to Cellular Biomedicine Group, Inc. and, unless the context otherwise requires, all of its subsidiaries and variable interest entities. Overview Cellular Biomedicine Group, Inc. is a clinical stage biopharmaceutical company, principally engaged in the development of therapies for cancer and degenerative diseases utilizing proprietary cell-based technologies. Our technology includes two major platforms: (i) Immune cell therapy for treatment of a broad range of cancer indications comprised of technologies in Chimeric Antigen Receptor modified T cells ("CAR-T"), T-Cell Receptor ("TCR"), next generation neoantigen-reactive tumor infiltrating lymphocyte (“TIL”), and (ii) human adipose-derived mesenchymal progenitor cells ("haMPC") for treatment of joint diseases. CBMG’s Research & Development facilities are based in Gaithersburg, Maryland and Shanghai, China, and its manufacturing facilities are based in China in the cities of Shanghai, Wuxi, and Beijing. We are focused on developing and marketing safe and effective cell-based therapies based on our cellular platforms, to treat cancer and orthopedic diseases. We have developed proprietary technologies and know-how in our cell therapy platforms. We are conducting clinical studies in China with our stem cell based therapies to treat knee osteoarthritis (“KOA”). Prior to China’s December 2017 revised regulation we have completed a Phase IIb autologous haMPC KOA clinical study and published its promising results. Led by Shanghai Renji Hospital, one of the largest teaching hospitals in China, we have completed a Phase I clinical trial of our off-the-shelf allogeneic haMPC (AlloJoin™) therapy for treating KOA patients. We have completed and presented the Allojoin™ Phase I 48-week data in China and have met with the National Medical Products Administration (NMPA, renamed from China Food and Drug Administration (“CFDA”)) in a pre-IND meeting to discuss methods to potentially enhance development. Our primary target market is China. We believe that our cell-based therapies will be able to help patients with high unmet medical needs. We expect to carry out clinical studies leading to the eventual NMPA approval of our products through Biologics License Application ("BLA") filings and authorized clinical centers throughout Greater China. CBMG was developing its own anti-CD19 CAR-T cell therapy in B-cell non-Hodgkin lymphoma ("NHL")and adult acute lymphoblastic leukemia (“ALL”) and had already initiated IND applications in China. On September 25, 2018, we entered into a strategic licensing and collaboration agreement with Novartis to manufacture and supply their CAR-T cell therapy Kymriah (tisagenlecleucel) in China. As part of the deal, Novartis took approximately a 9% equity stake in CBMG, and CBMG is discontinuing development of its own anti-CD19 CAR-T cell therapy. This collaboration with Novartis reflects our shared commitment to bringing the first marketed CAR-T cell therapy product, Kymriah, currently approved in the US, EU and Canada for two difficult-to-treat cancers, to China where the number of patients remains the highest in the world. We continue to develop cell therapies other than CD19 on our own and Novartis has the first right of negotiation on these developments. The CBMG oncology pipeline includes CAR-T targeting CD20-, CD22- and B-cell maturation antigen (BCMA), AFP TCR-T and TIL. We are striving to build competitive research capabilities, a cutting edge translational medicine unit, along with a well-established cellular manufacturing capability and ample capacity, to support Kymriah in China and our development of cell therapy products. We expect to initiate first in-human multiple CAR-T and TCR-T therapies in coming quarters. Corporate History Headquartered in New York, the Company is a Delaware biopharmaceutical company focused on developing treatment for cancer and orthopedic diseases for patients in China. The Company started its regenerative medicine business in China in 2009 and expanded to CAR-T therapies in 2014.

2. BASIS OF PRESENTATION AND SI

2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”) for reporting on Form 10-Q. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete financial statements herein. The unaudited Condensed Consolidated Financial Statements herein should be read in conjunction with the historical consolidated financial statements of the Company for the years ended December 31, 2017 included in our Annual Report on Form 10-K for the year ended December 31, 2017. Operating results for the three and nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. Principles of Consolidation Our unaudited condensed consolidated financial statements reflect all adjustments, which are, in the opinion of management, necessary for a fair presentation of our financial position and results of operations. Such adjustments are of a normal recurring nature, unless otherwise noted. The balance sheet as of September 30, 2018 and the results of operations for the three and nine months ended September 30, 2018 are not necessarily indicative of the results to be expected for any future period. Our unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP. These accounting principles require us to make certain estimates, judgments and assumptions that affect the reported amounts if 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 the reporting period. We believe that the estimates, judgments and assumptions are reasonable, based on information available at the time they are made. Actual results could differ materially from those estimates. Recent Accounting Pronouncements Accounting pronouncements adopted during the nine months ended September 30, 2018 In May 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-09, “Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting” In February 2017, the FASB issued ASU No. 2017-05, “Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets” In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash” In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” Revenue from Contracts with Customers Accounting pronouncements not yet effective to adopt In June 2018, the FASB issued ASU 2018-07, which simplifies several aspects of the accounting for nonemployee share-based payment transactions resulting from expanding the scope of Topic 718, Compensation-Stock Compensation, to include share-based payment transactions for acquiring goods and services from non-employees. Some of the areas for simplification apply only to nonpublic entities. The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. Early adoption is permitted. We do not plan to early adopt this ASU. We are currently evaluating the potential impacts of this updated guidance, and do not expect the adoption of this guidance to have a material impact on our consolidated financial statements and related disclosures. In February 2018, the FASB issued ASU No. 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” In July 2017, the FASB issued ASU No. 2017-11, “Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Non-controlling Interests with a Scope Exception” In January 2017, the FASB issued ASU No. 2017-04, “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”

3. VARIABLE INTEREST ENTITIES

3. VARIABLE INTEREST ENTITIES	9 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
3. VARIABLE INTEREST ENTITIES	VIEs are those entities in which a company, through contractual arrangements, bears the risk of, and enjoys the rewards normally associated with ownership of the entity, and therefore the Company is the primary beneficiary of the entity. Cellular Biomedicine Group Ltd (Shanghai) (“CBMG Shanghai”) and its subsidiaries are variable interest entities (VIEs), through which the Company conducts immune therapy and stem cell research and clinical trials in China. The registered shareholders of CBMG Shanghai are Lu Junfeng and Chen Mingzhe, who together own 100% of the equity interests in CBMG Shanghai. Lu Junfeng and Chen Mingzhe are not Board members and do not participate in management of the Company. The initial capitalization and operating expenses of CBMG Shanghai are funded by our wholly foreign-owned enterprise (“WFOE”), Cellular Biomedicine Group Ltd. (Wuxi) (“CBMG Wuxi”). CBMG Shanghai was incorporated on October 19, 2011. Agreen Biotech Co. Ltd. (“AG”) was acquired by CBMG Shanghai in September 2014. AG was incorporated on April 27, 2011. In January 2017, CBMG Shanghai established two fully owned subsidiaries - For the period ended September 30, 2018 and 2017, 31% and 2% of the Company revenue is derived from VIEs respectively. As of September 30, 2018, CBMG Wuxi provided financing to CBMG Shanghai and its subsidiaries in the amount of $25,693,120 for working capital purposes. As of the same date CBMG Shanghai and its subsidiary provided technology services of $22,443,550 to CBMG Wuxi and CBMG Hong Kong and CBMG Wuxi purchased $27,407,693 of intellectual property from CBMG Shanghai. In conjunction with the provided financing, exclusive option agreements were executed granting CBMG Wuxi the irrevocable and exclusive right to convert the unpaid portion of the provided financing into equity interest of CBMG Shanghai at CBMG Wuxi’s sole and absolute discretion. CBMG Wuxi and CBMG Shanghai additionally executed a business cooperation agreement whereby CBMG Wuxi is to provide CBMG Shanghai with technical and business support, consulting services, and other commercial services. The shareholders of CBMG Shanghai pledged 100% of their equity interest in CBMG Shanghai as collateral in the event CBMG Shanghai does not perform its obligations under the business cooperation agreement. The Company has determined it is the primary beneficiary of CBMG Shanghai by reference to the power and benefits criterion under ASC Topic 810, Consolidation. This determination was reached after considering the financing provided by CBMG Wuxi to CBMG Shanghai is convertible into equity interest of CBMG Shanghai and the business cooperation agreement grants the Company and its officers the power to manage and make decisions that affect the operation of CBMG Shanghai. There are substantial uncertainties regarding the interpretation, application and enforcement of PRC laws and regulations, including but not limited to the laws and regulations governing our business or the enforcement and performance of our contractual arrangements. See Risk Factors below regarding “Risks Related to Our Structure”. As the primary beneficiary of CBMG Shanghai and its subsidiaries, the Company consolidates in its financial statements the financial position, results of operations, and cash flows of CBMG Shanghai and its subsidiaries, and all intercompany balances and transactions between the Company and CBMG Shanghai and its subsidiaries are eliminated in the consolidated financial statements. The Company has aggregated the financial information of CBMG Shanghai and its subsidiaries in the table below. The aggregate carrying value of assets and liabilities of CBMG Shanghai and its subsidiaries (after elimination of intercompany transactions and balances) in the Company’s condensed consolidated balance sheets as of September 30, 2018 and December 31, 2017 are as follows: September 30, December 31, 2018 2017 (note 16) Assets Cash $ 3,444,121 $ 2,337,173 Other receivables 65,530 61,735 Prepaid expenses 1,997,163 1,750,509 Total current assets 5,506,814 4,149,417 Property, plant and equipment, net 13,407,165 12,477,315 Intangibles 1,314,833 1,516,449 Long-term prepaid expenses and other assets 4,874,583 3,631,906 Total assets $ 25,103,395 $ 21,775,087 Liabilities Accounts payable $ 311,348 $ 181,231 Other payables 3,105,400 1,631,582 Accrued payroll * 1,092,669 682,248 Deferred income 10,965 9,810 Total current liabilities $ 4,520,382 $ 2,504,871 Other non-current liabilities 441,093 183,649 Total liabilities $ 4,961,475 $ 2,688,520 * Accrued payroll mainly includes bonus accrual of $1,025,917 and $673,443.

4. PROPERTY, PLANT AND EQUIPMEN

4. PROPERTY, PLANT AND EQUIPMENT	9 Months Ended
	Sep. 30, 2018
Property, Plant and Equipment [Abstract]
4. PROPERTY, PLANT AND EQUIPMENT	As of September 30, 2018 and December 31, 2017, property, plant and equipment, carried at cost, consisted of the following: September 30, 2018 December 31, 2017 Office equipment $ 101,876 $ 105,114 Manufacturing equipment 6,364,024 4,781,936 Computer equipment 402,831 233,539 Leasehold improvements 12,381,971 4,196,589 Construction work in process 1,006,753 7,498,272 20,257,455 16,815,450 Less: accumulated depreciation (5,943,654 ) (3,842,108 ) $ 14,313,801 $ 12,973,342 For the three and nine months ended September 30, 2018, depreciation expense was $857,768 and $2,445,470, respectively, as compared to $342,562 and $817,987 for the three and nine months ended September 30, 2017, respectively.

5. INVESTMENTS

5. INVESTMENTS	9 Months Ended
	Sep. 30, 2018
Investments in and Advances to Affiliates, Schedule of Investments [Abstract]
5. INVESTMENTS	Short-term Investment The Company’s short-term investments are held in several six-month bank deposits. Long-term Investments The Company’s investments represent the investment in equity securities listed in Over-The-Counter (“OTC”) markets of the United States of America: September 30, 2018 Cost Gross Unrealized Gains Gross Unrealized Losses more than 12 months Gross Unrealized Losses less than 12 months Market or Fair Value Equity position in Arem Pacific Corporation 480,000 - - (240,000 ) 240,000 Total $ 480,000 $ - $ - $ (240,000 ) $ 240,000 December 31, 2017 Cost Gross Unrealized Gains Gross Unrealized Losses more than 12 months Gross Unrealized Losses less than 12 months Market or Fair Value Equity position in Alpha Lujo, Inc. $ 251,388 $ - $ (221,964 ) $ - $ 29,424 Equity position in Arem Pacific Corporation 480,000 - - (240,000 ) 240,000 Total $ 731,388 $ - $ (221,964.00 ) $ (240,000 ) $ 269,424 The unrealized holding loss for the investments, net of tax that were recognized in other comprehensive income (loss) for the three and nine months ended September 30, 2018 was nil, as compared to nil and $(240,000) for the three and nine months ended September 30, 2017, respectively. The Company tracks each investment with an unrealized loss and evaluate them on an individual basis for other-than-temporary impairments, including obtaining corroborating opinions from third party sources, performing trend analysis and reviewing management’s future plans. When investments have declines determined by management to be other-than-temporary the Company recognizes write downs through earnings. Other-than-temporary impairment of investments for the three and nine months ended September 30, 2018 was nil and $29,424, as compared to nil for the three and nine months ended September 30, 2017. The Company provided full impairment of $29,424 for shares of Alpha Lujo, Inc. (“ALEV”) for the nine months ended September 30, 2018 as ALEV filed Form 15 (Certification and Notice of Termination of Registration under Section 12(g) of the Securities Exchange Act of 1934 or Suspension of Duty to File Reports) with the SEC and is no longer traded in the market in 2018.

6. FAIR VALUE ACCOUNTING

6. FAIR VALUE ACCOUNTING	9 Months Ended
	Sep. 30, 2018
Fair Value Disclosures [Abstract]
6. FAIR VALUE ACCOUNTING	The Company has adopted ASC Topic 820, Fair Value Measurement and Disclosure, which defines fair value, establishes a framework for measuring fair value in GAAP, and expands disclosures about fair value measurements. It does not require any new fair value measurements, but provides guidance on how to measure fair value by providing a fair value hierarchy used to classify the source of the information. It establishes a three-level valuation hierarchy of valuation techniques based on observable and unobservable inputs, which may be used to measure fair value and include the following: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement. The carrying value of financial items of the Company including cash and cash equivalents, accounts receivable, other receivables, accounts payable and accrued liabilities, approximate their fair values due to their short-term nature and are classified within Level 1 of the fair value hierarchy. The Company’s investments are classified within Level 2 of the fair value hierarchy because of the limited trading of such stocks, which are traded solely in OTC market. Assets measured at fair value within Level 2 on a recurring basis as of September 30, 2018 and December 31, 2017 are summarized as follows: As of September 30, 2018 Fair Value Measurements at Reporting Date Using: Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Assets: Equity position in Arem Pacific Corporation 240,000 - 240,000 - $ 240,000 $ - $ 240,000 $ - As of December 31, 2017 Fair Value Measurements at Reporting Date Using: Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Assets: Equity position in Alpha Lujo, Inc. $ 29,424 $ - $ 29,424 $ - Equity position in Arem Pacific Corporation 240,000 - 240,000 - $ 269,424 $ - $ 269,424 $ - No shares were acquired in the nine months ended September 30, 2018 and 2017. As of September 30, 2018 and December 31, 2017, the Company holds 8,000,000 shares in Arem Pacific Corporation (“ARPC”), 2,942,350 shares in ALEV and 2,057,131 shares in Wonder International Education and Investment Group Corporation (“Wonder”), respectively. Full impairment has been provided for shares of Wonder and ALEV as of September 30, 2018. All available-for-sale investments held by the Company at September 30, 2018 and December 31, 2017 have been valued based on level 2 inputs due to the illiquid nature of these non-reporting securities that cannot easily be sold or exchanged for cash.

7. INTANGIBLE ASSETS

7. INTANGIBLE ASSETS	9 Months Ended
	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
7. INTANGIBLE ASSETS	Intangible assets that are subject to amortization are reviewed for potential impairment whenever events or circumstances indicate that carrying amounts may not be recoverable. Assets not subject to amortization are tested for impairment at least annually. The Company evaluates the continuing value of the intangibles at each balance sheet date and records write-downs if the continuing value has become impaired. An impairment is determined to exist if the anticipated undiscounted future cash flow attributable to the asset is less than its carrying value. The asset is then reduced to the net present value of the anticipated future cash flow. As of September 30, 2018 and December 31, 2017, intangible assets, net consisted of the following: Patents & knowhow & license September 30, 2018 December 31, 2017 Cost basis $ 17,576,023 $ 17,674,431 Less: accumulated amortization (6,617,882 ) (5,325,113 ) Less: impairment (2,884,896 ) - $ 8,073,245 $ 12,349,318 Software September 30, 2017 December 31, 2016 Cost basis $ 182,167 $ 158,273 Less: accumulated amortization (101,984 ) (87,899 ) $ 80,183 $ 70,374 Total intangibles, net $ 8,153,428 $ 12,419,692 All software is provided by a third party vendor, is not internally developed, and has an estimated useful life of five years. Patents and knowhow are amortized using an estimated useful life of three to ten years. Amortization expense for the three and nine months ended September 30, 2018 was $446,523 and $1,344,966, respectively, and amortization expense for the three and nine months ended September 30, 2017 was $413,661 and $1,307,404, respectively. During the three months ended September 30, 2018, the Company reassessed its return on investment to develop GVAX for cancer therapies in the current competitive market and decided to terminate its GVAX program and its license agreements with the University of South Florida (“USF”) and the Moffitt Cancer Center (“Moffitt”). As a result the Company made a full impairment of $2,884,896 for the USF and Moffitt licenses. Estimated amortization expense for each of the ensuing years are as follows for the years ending September 30: Years ending September 30, Amount 2019 $ 1,351,076 2020 1,348,817 2021 1,343,661 2022 1,332,328 2023 and thereafter 2,777,546 $ 8,153,428

8. LEASES

8. LEASES	9 Months Ended
	Sep. 30, 2018
Leases [Abstract]
8. LEASES	The Company leases facilities under non-cancellable operating lease agreements. These facilities are located in the United States, Hong Kong and China. The Company recognizes rental expense on a straight-line basis over the life of the lease period. Rent expense under operating leases for the three and nine months ended September 30, 2018 was approximately $679,585 and $2,628,440, respectively, as compared to $1,264,995 and $3,049,940 for the three and nine months ended September 30, 2017, respectively. As of September 30, 2018, the Company has the following future minimum lease payments due under the foregoing lease agreements: Years ending September 30, Amount 2019 $ 2,856,546 2020 2,630,350 2021 2,498,662 2022 2,498,662 2023 and thereafter 10,033,593

9. RELATED PARTY TRANSACTIONS

9. RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2018
Related Party Transactions [Abstract]
9. RELATED PARTY TRANSACTIONS	As of September 30, 2018 and December 31, 2017, accrued expenses included unpaid director fees of nil and $25,882. From time to time, cash advance is offered to employees for business travel purposes. No interest is charged on the outstanding balances. As of September 30, 2018 and December 31, 2017, other receivables due from officers for business travel purposes was nil and $8,531, respectively.

10. EQUITY

10. EQUITY	9 Months Ended
	Sep. 30, 2018
Equity [Abstract]
10. EQUITY	ASC Topic 505 Equity On December 15, 2017, the Company entered into a Share Purchase Agreement with three of its executive officers, pursuant to which the Company agreed to sell, and the three executive officers agreed to purchase an aggregate of 41,667 shares of the Company’s common stock, par value $0.001 per share at $12.00 per share, for total gross proceeds of approximately $500,000. The transaction closed on December 22, 2017. On December 26, 2017, the Company entered into a Share Purchase Agreement with two investors, pursuant to which the Company agreed to sell and the two investors agreed to purchase from the Company, an aggregate of 1,166,667 shares of the Company’s common stock, par value $0.001 per share, at $12.00 per share, for total gross proceeds of approximately $14,000,000. The transaction closed on December 28, 2017. Together with a private placement with three of its executive officers on December 22, 2017, the Company raised an aggregate of approximately $14.5 million in the two private placements in December 2017. On January 30, 2018 and February 5, 2018, the Company entered into securities purchase agreements with certain investors pursuant to which the Company agreed to sell, and the investors agreed to purchase from the Company, an aggregate of 1,719,324 shares of the Company’s common stock, par value $0.001 per share, at $17.80 per share, for total gross proceeds of approximately $30.6 million. The transaction closed on February 5, 2018. On September 25, 2018, the Company entered into a share purchase agreement with Novartis Pharma AG (“Novartis”) pursuant to which the Company agreed to sell, and Novartis agreed to purchase from the Company, an aggregate of 1,458,257 shares of the Company’s common stock, par value $0.001 per share, at a purchase price of $27.43 per share, for total gross proceeds of approximately $40 million. The transaction closed on September 26, 2018. During the three and nine months ended September 30, 2018, the Company expensed $844,181 and $2,439,887 associated with unvested option awards and $426,287 and $1,308,195 associated with restricted common stock issuances, respectively. During the three and nine months ended September 30, 2017, the Company expensed $1,067,778 and $3,702,748 associated with unvested options awards and $270,931 and $538,074 associated with restricted common stock issuances, respectively. During the three and nine months ended September 30, 2018, options for 101,210 and 233,484 underlying shares were exercised on a cash basis, 101,210 and 233,484 shares of the Company’s common stock were issued accordingly. During the three and nine months ended September 30, 2017, options for 12,000 and 45,000 underlying shares were exercised on a cash basis, 12,000 and 45,000 shares of the Company’s common stock were issued accordingly. During the three and nine months ended September 30, 2018, 30,538 and 66,620 of the Company's restricted common stock were issued respectively. During the three and nine months ended September 30, 2017, 27,032 and 49,128 shares of the Company’s restricted common stock were issued respectively. The Company's Board of Directors approved a stock repurchase program granting the company authority to repurchase up to $10 million in common shares through open market purchases pursuant to a plan adopted in accordance with Rule 10b5-1 and 10b-18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and was announced on June 1, 2017. For the three and nine months ended September 30, 2018, the Company repurchased nil and 133,974 shares of its common stock with the total cost of nil and $2,536,064, respectively. Details are as follows: Total number of shares purchased Average price paid per share Treasury stock as of December 31, 2017 426,794 $ 9.32 Repurchased from January 1, 2018 to March 31, 2018 37,462 $ 19.10 Repurchased from April 1, 2018 to June 30, 2018 96,512 $ 18.86 Repurchased from July 1, 2018 to September 30, 2018 - $ - Treasury stock as of September 30, 2018 560,768 $ 11.62

11. COMMITMENTS AND CONTINGENCI

11. COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
11. COMMITMENTS AND CONTINGENCIES	Capital commitments As of September 30, 2018, the capital commitments of the Company are summarized as follows: September 30, 2018 Contracts for acquisition of plant and equipment being or to be executed $ 1,452,986

12. STOCK BASED COMPENSATION

12. STOCK BASED COMPENSATION	9 Months Ended
	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
12. STOCK BASED COMPENSATION	Our stock-based compensation arrangements include grants of stock options and restricted stock awards under its equity incentive plans (collectively, the “Plans”), and certain awards granted outside of these plans. The compensation cost that has been charged against income related to stock options for the three and nine months ended September 30, 2018 was $844,181 and $2,439,887, respectively, and for the three and nine months ended September 30, 2017 was $1,067,778 and $3,702,748, respectively. The compensation cost that has been charged against income related to restricted stock awards for the three and nine months ended September 30, 2018 was $426,287 and $1,308,195, respectively, and for the three and nine months ended September 30, 2017 was $270,931 and $538,074, respectively. As of September 30, 2018, there was $4,418,388 all unrecognized compensation cost related to an aggregate of 498,239 of non-vested stock option awards and $3,456,690 related to an aggregate of 265,918 of non-vested restricted stock awards. These costs are expected to be recognized over a weighted-average period of 1.86 years for the stock options awards and 1.49 years for the restricted stock awards. During the three months ended September 30, 2018, the Company issued options to purchase an aggregate of 16,000 shares of the Company’s common stock under the Plans. The grant date fair value of these options was $208,940 using Black-Scholes option valuation models with the following assumptions: exercise price equal to the grant date stock price or average selling prices over the 30-business day period preceding the date of grant ranging from $20.6 to $23.55, volatility ranging from 65.15% to 66.34%, expected life of 6.0 years, and risk-free rate ranging from 2.86% to 3.00%. The Company is expensing these options on a straight-line basis over the requisite service period. During the nine months ended September 30, 2018, the Company issued options to purchase an aggregate of 206,682 shares of the Company’s common stock to officers, directors and employees under the Plans. The grant date fair value of these options was $2,809,655 using Black-Scholes option valuation models with the following assumptions: exercise price equal to the grant date stock price or average selling prices over the 30-business day period preceding the date of grant ranging from $14.5 to $23.55, volatility ranging from 65.15% to 90.43%, expected life of 6.0 years, and risk-free rate ranging from 2.33% to 3.00%. The Company is expensing these options on a straight-line basis over the requisite service period. During the three months ended September 30, 2017, the Company issued options to purchase an aggregate of 12,000 shares of the Company’s common stock to officers, directors, employees and advisors under the Plans. The grant date fair value of these options was $76,655 using Black-Scholes option valuation models with the following assumptions: exercise price equal to the grant date stock price ranging from $8.55 to $8.75, volatility ranging from 87.77% to 88.68%, expected life 6.0 years, and risk-free rate ranging from 1.94% to 2.07%. The Company is expensing these options on a straight-line basis over the requisite service period. During the nine months ended September 30, 2017, the Company issued options to purchase an aggregate of 523,738 shares of the Company’s common stock to officers, directors, employees and advisors under the Plans. The grant date fair value of these options was $4,425,913 using Black-Scholes option valuation models with the following assumptions: exercise price equal to the grant date stock price ranging from $5.3 to $13.2, volatility ranging from 87.77% to 89.62%, expected life 6.0 years, and risk-free rate ranging from 1.86% to 2.29%. The Company is expensing these options on a straight-line basis over the requisite service period. The following table summarizes stock option activity as of September 30, 2018 and December 31, 2017 and for the nine months ended September 30, 2018: Number of Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding as of December 31, 2017 1,892,189 $ 11.54 7.0 $ 4,909,194 Grants 206,682 Forfeitures (57,324 ) Exercises (233,484 ) Outstanding as of September 30, 2018 1,808,063 $ 12.32 6.7 $ 12,194,007 Vested and exercisable as of September 30, 2018 1,309,824 $ 11.29 5.9 $ 9,412,456 Exercise Number of Options Price Outstanding Exercisable $ 3.00 - $4.95 185,547 185,547 $ 5.00 - $9.19 465,124 428,176 $ 9.20 - $15.00 525,070 303,467 $ 15.01 - $20.00 468,822 261,534 $ 20.10 + 163,500 131,100 1,808,063 1,309,824 The aggregate intrinsic value for stock options outstanding is defined as the positive difference between the fair market value of our common stock and the exercise price of the stock options. Cash received from option exercises under all share-based compensation arrangements for the three and nine months ended September 30, 2018 was $1,542,840 and $2,708,603, respectively, as compared to $159,131 and $232,910 for the three and nine months ended September 30, 2017, respectively. The proceeds were from non-executives.

13. NET LOSS PER SHARE

13. NET LOSS PER SHARE	9 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
13. NET LOSS PER SHARE	Basic and diluted net loss per common share is computed on the basis of our weighted average number of common shares outstanding, as determined by using the calculations outlined below: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Net loss $ (12,743,764 ) $ (6,202,214 ) $ (30,426,263 ) $ (18,567,725 ) Weighted average shares of common stock 17,604,473 14,349,569 17,281,240 14,310,344 Dilutive effect of stock options - - - - Restricted stock vested not issued - - - - Common stock and common stock equivalents 17,604,473 14,349,569 17,281,240 14,310,344 Net loss per basic and diluted share $ (0.72 ) $ (0.43 ) $ (1.76 ) $ (1.30 ) Basic and diluted net loss per share is calculated by dividing net loss by the weighted average number of common shares outstanding during the period, without consideration for common stock equivalents. The Company’s potentially dilutive shares, which include unvested restricted stock and options to purchase common stock, are considered to be common stock equivalents and are only included in the calculation of diluted net loss per share when their effect is dilutive.

14. INCOME TAXES

14. INCOME TAXES	9 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
14. INCOME TAXES	Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period during which such rates are enacted. The Company considers all available evidence to determine whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become realizable. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carry-forward periods), and projected taxable income in assessing the realizability of deferred tax assets. In making such judgments, significant weight is given to evidence that can be objectively verified. Based on all available evidence, in particular our three-year historical cumulative losses, recent operating losses and U.S. pre-tax loss for the three months ended September 30, 2018, we recorded a valuation allowance against our U.S. net deferred tax assets. In order to fully realize the U.S. deferred tax assets, we will need to generate sufficient taxable income in future periods before the expiration of the deferred tax assets governed by the tax code. In each of the reporting period since inception, the Company has recorded a valuation allowance for the full amount of net deferred tax assets, as the realization of deferred tax assets is uncertain. As a result, the Company has not recorded any federal or state income tax benefit in the consolidated statements of operations and comprehensive income (loss). Under the December 22, 2017 tax reform bill (Tax Cut and Jobs Act (H.R.1)), top corporate tax rate was reduced from 35% to 21% effective from January 1, 2018. Pursuant to this new Act, non-operating loss (“NOL”) carry back period is eliminated and an indefinite carry forward period is permitted. As of September 30, 2018, U.S. federal and California state NOL was $21.3 million and $15.6 million respectively. As of September 30, 2018, the Company had net operating loss carryforwards of $5 million and $19 million for Chinese income tax purposes, such losses are set to expire in 2028 (for advanced and new technology enterprises and small and middle technology enterprises) and 2023 (for other Chinese enterprises) for Chinese income tax purposes, respectively. All deferred income tax expense is offset by changes in the valuation allowance pertaining to the Company's existing net operating loss carryforwards due to the unpredictability of future profit streams prior to the expiration of the tax losses. The Company's effective tax rate differs from statutory rates of 21% for U.S. federal income tax purposes, 15%, 20% and 25% for Chinese income tax purpose and 16.5% for Hong Kong income tax purposes due to the effects of the valuation allowance and certain permanent differences as it pertains to book-tax differences in the value of client shares received for services. Pursuant to the PRC Corporate Income Tax Law, all of the Company’s PRC subsidiaries are liable to PRC Corporate Income Taxes (“CIT”) at a rate of 25% except for CBMG Shanghai” and AG. According to Guoshuihan 2009 No. 203, if an entity is certified as an “advanced and new technology enterprise”, it is entitled to a preferential income tax rate of 15%. CBMG Shanghai obtained the certificate of “advanced and new technology enterprise” dated October 30, 2015 with an effective period of three years and the provision for PRC corporate income tax for CBMG Shanghai is calculated by applying the income tax rate of 15% from 2015. The October 2015 issued certificate expires in October, 2018 and the Company is in the process of renewing the certificate for another three years. CBMG Shanghai is re-applying for the certificate of “advanced and new technology enterprise”. AG was certified as a “small and micro enterprise” in its 2017 annual tax filing and enjoys the preferential income tax rate of 20%. AG’s eligibility for the reduced tax rate will need to be verified annually.

15. SEGMENT INFORMATION

15. SEGMENT INFORMATION	9 Months Ended
	Sep. 30, 2018
Segment Reporting [Abstract]
15. SEGMENT INFORMATION	The Company is engaged in the development of new treatments for cancerous and degenerative diseases utilizing proprietary cell-based technologies, which have been organized as one reporting segment as they have substantially similar economic characteristic since they have similar nature and economic characteristics. The Company’s principle operating decision maker, the Chief Executive Officer, receives and reviews the result of the operation for all major cell platforms as a whole when making decisions about allocating resources and assessing performance of the Company. In accordance with FASB ASC 280-10, the Company is not required to report the segment information.

16. COMPARATIVE FIGURES

16. COMPARATIVE FIGURES	9 Months Ended
	Sep. 30, 2018
Subsequent Events [Abstract]
16. COMPARATIVE FIGURES	Lease deposits of $690,870 might be recovered over one year considering the lease term, the Company recorded it in other long-term assets. Comparative figures of $732,098 have been reclassified to conform with the current period’s presentation to facilitate comparison.

17. SUBSEQUENT EVENTS

17. SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2018
Subsequent Events [Abstract]
17. SUBSEQUENT EVENTS	On October 2, 2018, the Company entered into a non-exclusive license agreement (the “License Agreement”) with The U.S. Department of Health and Human Services, as represented by the National Cancer Institute (“NCI”), an Institute or Center (the “IC”) of the National Institutes of Health, pursuant to which the Company was granted rights to the worldwide development, manufacture and commercialization of autologous, tumor-reactive lymphocyte adoptive cell therapy products, isolated from tumor infiltrating lymphocytes as claimed in the IC licensed patent rights, for the treatment of non-small cell lung, stomach, esophagus, colorectal, and head and neck cancer(s) in humans. On October 10, 2018, the Company commenced a share repurchase program (the “2018 Share Repurchase Program”), pursuant to which the Company may, from time to time, purchase shares of its common stock for an aggregate purchase price not to exceed approximately $8.48 million. As previously reported on a Current Report on Form 8-K filed with the Securities and Exchange Commission on June 1, 2017, the Company authorized a stock repurchase program (“2017 Share Repurchase Program”), under which approximately $6.52 million in shares of common stock were repurchased. It is contemplated that total shares to be repurchased under the 2017 and 2018 Share Repurchase Programs shall not exceed $15 million in the aggregate. On October 17, 2018, the Company received a grant of $872,194 from Shanghai Zhangjiang government for the Company’s research and development establishment in Zhangjiang Hi-Tech Park. On October 29, 2018, after reassessing the return of investment to develop GVAX for cancer therapies in the current competitive market the Company notified USF and Moffitt to terminate its GVAX license agreements. On November 2, 2018 we relocated our principal executive offices from Cupertino, California to New York, New York.

2. BASIS OF PRESENTATION AND _2

2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Principles of Consolidation	Our unaudited condensed consolidated financial statements reflect all adjustments, which are, in the opinion of management, necessary for a fair presentation of our financial position and results of operations. Such adjustments are of a normal recurring nature, unless otherwise noted. The balance sheet as of September 30, 2018 and the results of operations for the three and nine months ended September 30, 2018 are not necessarily indicative of the results to be expected for any future period. Our unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP. These accounting principles require us to make certain estimates, judgments and assumptions that affect the reported amounts if 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 the reporting period. We believe that the estimates, judgments and assumptions are reasonable, based on information available at the time they are made. Actual results could differ materially from those estimates.
Recent Accounting Pronouncements	Accounting pronouncements adopted during the nine months ended September 30, 2018 In May 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-09, “Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting” In February 2017, the FASB issued ASU No. 2017-05, “Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets” In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash” In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” Revenue from Contracts with Customers Accounting pronouncements not yet effective to adopt In June 2018, the FASB issued ASU 2018-07, which simplifies several aspects of the accounting for nonemployee share-based payment transactions resulting from expanding the scope of Topic 718, Compensation-Stock Compensation, to include share-based payment transactions for acquiring goods and services from non-employees. Some of the areas for simplification apply only to nonpublic entities. The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. Early adoption is permitted. We do not plan to early adopt this ASU. We are currently evaluating the potential impacts of this updated guidance, and do not expect the adoption of this guidance to have a material impact on our consolidated financial statements and related disclosures. In February 2018, the FASB issued ASU No. 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” In July 2017, the FASB issued ASU No. 2017-11, “Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Non-controlling Interests with a Scope Exception” In January 2017, the FASB issued ASU No. 2017-04, “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”

3. VARIABLE INTEREST ENTITIES (

3. VARIABLE INTEREST ENTITIES (Tables)	9 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Aggregate carrying value of assets and liability	September 30, December 31, 2018 2017 (note 16) Assets Cash $ 3,444,121 $ 2,337,173 Other receivables 65,530 61,735 Prepaid expenses 1,997,163 1,750,509 Total current assets 5,506,814 4,149,417 Property, plant and equipment, net 13,407,165 12,477,315 Intangibles 1,314,833 1,516,449 Long-term prepaid expenses and other assets 4,874,583 3,631,906 Total assets $ 25,103,395 $ 21,775,087 Liabilities Accounts payable $ 311,348 $ 181,231 Other payables 3,105,400 1,631,582 Accrued payroll * 1,092,669 682,248 Deferred income 10,965 9,810 Total current liabilities $ 4,520,382 $ 2,504,871 Other non-current liabilities 441,093 183,649 Total liabilities $ 4,961,475 $ 2,688,520 * Accrued payroll mainly includes bonus accrual of $1,025,917 and $673,443.

4. PROPERTY, PLANT AND EQUIPM_2

4. PROPERTY, PLANT AND EQUIPMENT (Tables)	9 Months Ended
	Sep. 30, 2018
Property, Plant and Equipment [Abstract]
Property, plant and equipment, carried at cost	September 30, 2018 December 31, 2017 Office equipment $ 101,876 $ 105,114 Manufacturing equipment 6,364,024 4,781,936 Computer equipment 402,831 233,539 Leasehold improvements 12,381,971 4,196,589 Construction work in process 1,006,753 7,498,272 20,257,455 16,815,450 Less: accumulated depreciation (5,943,654 ) (3,842,108 ) $ 14,313,801 $ 12,973,342

5. INVESTMENTS (Tables)

5. INVESTMENTS (Tables)	9 Months Ended
	Sep. 30, 2018
Investments in and Advances to Affiliates, Schedule of Investments [Abstract]
Investments	September 30, 2018 Cost Gross Unrealized Gains Gross Unrealized Losses more than 12 months Gross Unrealized Losses less than 12 months Market or Fair Value Equity position in Arem Pacific Corporation 480,000 - - (240,000 ) 240,000 Total $ 480,000 $ - $ - $ (240,000 ) $ 240,000 December 31, 2017 Cost Gross Unrealized Gains Gross Unrealized Losses more than 12 months Gross Unrealized Losses less than 12 months Market or Fair Value Equity position in Alpha Lujo, Inc. $ 251,388 $ - $ (221,964 ) $ - $ 29,424 Equity position in Arem Pacific Corporation 480,000 - - (240,000 ) 240,000 Total $ 731,388 $ - $ (221,964.00 ) $ (240,000 ) $ 269,424

6. FAIR VALUE ACCOUNTING (Table

6. FAIR VALUE ACCOUNTING (Tables)	9 Months Ended
	Sep. 30, 2018
Fair Value Disclosures [Abstract]
Assets measured at fair value on a recurring basis	As of September 30, 2018 Fair Value Measurements at Reporting Date Using: Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Assets: Equity position in Arem Pacific Corporation 240,000 - 240,000 - $ 240,000 $ - $ 240,000 $ - As of December 31, 2017 Fair Value Measurements at Reporting Date Using: Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Assets: Equity position in Alpha Lujo, Inc. $ 29,424 $ - $ 29,424 $ - Equity position in Arem Pacific Corporation 240,000 - 240,000 - $ 269,424 $ - $ 269,424 $ -

7. INTANGIBLE ASSETS (Tables)

7. INTANGIBLE ASSETS (Tables)	9 Months Ended
	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets at cost	Patents & knowhow & license September 30, 2018 December 31, 2017 Cost basis $ 17,576,023 $ 17,674,431 Less: accumulated amortization (6,617,882 ) (5,325,113 ) Less: impairment (2,884,896 ) - $ 8,073,245 $ 12,349,318 Software September 30, 2017 December 31, 2016 Cost basis $ 182,167 $ 158,273 Less: accumulated amortization (101,984 ) (87,899 ) $ 80,183 $ 70,374 Total intangibles, net $ 8,153,428 $ 12,419,692
Estimated amortization expenses	Years ending September 30, Amount 2019 $ 1,351,076 2020 1,348,817 2021 1,343,661 2022 1,332,328 2023 and thereafter 2,777,546 $ 8,153,428

8. LEASES (Tables)

8. LEASES (Tables)	9 Months Ended
	Sep. 30, 2018
Leases [Abstract]
Future minimum lease payments due	Years ending September 30, Amount 2019 $ 2,856,546 2020 2,630,350 2021 2,498,662 2022 2,498,662 2023 and thereafter 10,033,593 $ 20,517,813

10. EQUITY (Tables)

10. EQUITY (Tables)	9 Months Ended
	Sep. 30, 2018
Equity [Abstract]
Stock purchases	Total number of shares purchased Average price paid per share Treasury stock as of December 31, 2017 426,794 $ 9.32 Repurchased from January 1, 2018 to March 31, 2018 37,462 $ 19.10 Repurchased from April 1, 2018 to June 30, 2018 96,512 $ 18.86 Repurchased from July 1, 2018 to September 30, 2018 - $ - Treasury stock as of September 30, 2018 560,768 $ 11.62

11. COMMITMENTS AND CONTINGEN_2

11. COMMITMENTS AND CONTINGENCIES (Tables)	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Capital commitments	September 30, 2018 Contracts for acquisition of plant and equipment being or to be executed $ 1,452,986

12. STOCK BASED COMPENSATION (T

12. STOCK BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Incentive stock option plan	Number of Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding as of December 31, 2017 1,892,189 $ 11.54 7.0 $ 4,909,194 Grants 206,682 Forfeitures (57,324 ) Exercises (233,484 ) Outstanding as of September 30, 2018 1,808,063 $ 12.32 6.7 $ 12,194,007 Vested and exercisable as of September 30, 2018 1,309,824 $ 11.29 5.9 $ 9,412,456
Outstanding stock options	Exercise Number of Options Price Outstanding Exercisable $ 3.00 - $4.95 185,547 185,547 $ 5.00 - $9.19 465,124 428,176 $ 9.20 - $15.00 525,070 303,467 $ 15.01 - $20.00 468,822 261,534 $ 20.10 + 163,500 131,100 1,808,063 1,309,824

13. NET LOSS PER SHARE (Tables)

13. NET LOSS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Schedule of basic and diluted earning per share	For the Three Months Ended For the Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Net loss $ (12,743,764 ) $ (6,202,214 ) $ (30,426,263 ) $ (18,567,725 ) Weighted average shares of common stock 17,604,473 14,349,569 17,281,240 14,310,344 Dilutive effect of stock options - - - - Restricted stock vested not issued - - - - Common stock and common stock equivalents 17,604,473 14,349,569 17,281,240 14,310,344 Net loss per basic and diluted share $ (0.72 ) $ (0.43 ) $ (1.76 ) $ (1.30 )

3. VARIABLE INTEREST ENTITY (De

3. VARIABLE INTEREST ENTITY (Details) - USD ($)		Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2016
Assets
Cash		$ 57,925,198	$ 21,568,422	$ 16,292,031	$ 39,252,432
Other receivables		249,771	170,842
Total current assets		70,345,471	23,794,846
Property, plant and equipment, net		14,313,801	12,973,342
Intangibles		8,153,428	12,419,692
Total assets	[1]	106,414,953	61,162,296
Liabilities
Accounts payable		483,986	225,287
Other payables		1,456,911	1,097,327
Total current liabilities		5,930,537	3,676,121
Other non-current liabilities		441,093	183,649
Total liabilities	[1]	6,371,630	3,859,770
CBMG Shanghai
Assets
Cash		3,444,121	2,337,173
Other receivables		65,530	61,735
Prepaid expenses		1,997,163	1,750,509
Total current assets		5,506,814	4,149,417
Property, plant and equipment, net		13,407,165	12,477,315
Intangibles		1,314,833	1,516,449
Long-term prepaid expenses and other assets		4,874,583	3,631,906
Total assets		25,103,395	21,775,087
Liabilities
Accounts payable		311,348	181,231
Other payables		3,105,400	1,631,582
Accrued payroll	[2]	1,092,669	682,248
Deferred income		10,965	9,810
Total current liabilities		4,520,382	2,504,871
Other non-current liabilities		441,093	183,649
Total liabilities		$ 4,961,475	$ 2,688,520
[1]	The Company's consolidated assets as of September 30, 2018 and December 31, 2017 included $25,103,395 and $21,775,087, respectively, of assets of variable interest entities, or VIEs, that can only be used to settle obligations of the VIEs. Each of the following amounts represent the balances as of September 30, 2018 and December 31, 2017, respectively. These assets include cash and cash equivalents of $3,444,121 and $2,337,173; other receivables of $65,530 and $61,735; prepaid expenses of $1,997,163 and $1,750,509; property, plant and equipment, net, of $13,407,165 and $12,477,315; intangibles of $1,314,833 and $1,516,449; and long-term prepaid expenses and other assets of $4,874,583 and $3,631,906 as of September 30, 2018 and December 31, 2017, respectively. The Company's consolidated liabilities as of September 30, 2018 and December 31, 2017 included $4,961,475 and $2,688,520, respectively, of liabilities of the VIEs whose creditors have no recourse to the Company. These liabilities include accounts payable of $311,348 and $181,231; other payables of $3,105,400 and $1,631,582; accrued payroll of $1,092,669 and $682,248, which mainly includes bonus accrual of $1,025,917 and $673,443; deferred income of $10,965 and $9,810; and other non-current liabilities of $441,093 and $183,649. See further description in Note 3, Variable Interest Entities.
[2]	Accrued payroll mainly includes bonus accrual of $1,025,917 and $673,443.

4. PROPERTY, PLANT AND EQUIPM_3

4. PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Gross Property plant and equipment	$ 20,257,455	$ 16,815,450
Less: accumulated depreciation	(5,943,654)	(3,842,108)
Net Property plant and equipment	14,313,801	12,973,342
Office equipment [Member]
Gross Property plant and equipment	101,876	105,114
Manufacturing equipment [Member]
Gross Property plant and equipment	6,364,024	4,781,936
Computer equipment [Member]
Gross Property plant and equipment	402,831	233,539
Leasehold improvements [Member]
Gross Property plant and equipment	12,381,971	4,196,589
Construction Work in Process [Member]
Gross Property plant and equipment	$ 1,006,753	$ 7,498,272

4. PROPERTY, PLANT AND EQUIPM_4

4. PROPERTY, PLANT AND EQUIPMENT (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 857,768	$ 342,562	$ 2,445,470	$ 817,987

5. INVESTMENTS (Details)

5. INVESTMENTS (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Cost	$ 480,000	$ 731,388
Gross Unrealized Gains/(losses)	0	0
Gross Unrealized Losses more than 12 months	0	(221,964)
Gross Unrealized Losses less than 12 months	(240,000)	(240,000)
Market or Fair Value	240,000	269,424
Equity position in Arem Pacific Corporation [Member]
Cost	480,000	480,000
Gross Unrealized Gains/(losses)	0	0
Gross Unrealized Losses more than 12 months	0	0
Gross Unrealized Losses less than 12 months	(240,000)	(240,000)
Market or Fair Value	$ 240,000	240,000
Equity position in Alpha Lujo, Inc [Member]
Cost		251,388
Gross Unrealized Gains/(losses)		0
Gross Unrealized Losses more than 12 months		(221,964)
Gross Unrealized Losses less than 12 months		0
Market or Fair Value		$ 29,424

6. FAIR VALUE ACCOUNTING (Detai

6. FAIR VALUE ACCOUNTING (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Equity position	$ 240,000	$ 269,424
Level 1 [Member]
Equity position	0	0
Level 2 [Member]
Equity position	240,000	269,424
Level 3 [Member]
Equity position	0	0
Equity position in Arem Pacific Corporation [Member]
Equity position	240,000	240,000
Equity position in Arem Pacific Corporation [Member] | Level 1 [Member]
Equity position	0	0
Equity position in Arem Pacific Corporation [Member] | Level 2 [Member]
Equity position	240,000	240,000
Equity position in Arem Pacific Corporation [Member] | Level 3 [Member]
Equity position	$ 0	0
Equity position in Alpha Lujo, Inc.[Member]
Equity position		29,424
Equity position in Alpha Lujo, Inc.[Member] | Level 1 [Member]
Equity position		0
Equity position in Alpha Lujo, Inc.[Member] | Level 2 [Member]
Equity position		29,424
Equity position in Alpha Lujo, Inc.[Member] | Level 3 [Member]
Equity position		$ 0

6. FAIR VALUE ACCOUNTING (Det_2

6. FAIR VALUE ACCOUNTING (Details Narrative) - shares	Sep. 30, 2018	Dec. 31, 2017
Equity position in Arem Pacific Corporation [Member]
Shares held by the company	8,000,000	8,000,000
Equity position in Alpha Lujo, Inc.[Member]
Shares held by the company	2,942,350	2,942,350
Equity position in Wonder International Education & Investment Group Corporation [Member]
Shares held by the company	2,057,131	2,057,131

7. INTANGIBLE ASSETS (Details)

7. INTANGIBLE ASSETS (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Total intangibles, net	$ 8,153,428	$ 12,419,692
Patents & knowhow & license [Member]
Cost basis	17,576,023	17,674,431
Less: accumulated amortization	(6,617,882)	(5,325,113)
Less: impairment	(2,884,896)	0
Total intangibles, net	8,073,245	12,349,318
Software [Member]
Cost basis	182,167	158,273
Less: accumulated amortization	(101,987)	(87,899)
Total intangibles, net	$ 80,183	$ 70,374

7. INTANGIBLE ASSETS (Details 1

7. INTANGIBLE ASSETS (Details 1) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
2,019	$ 1,351,076
2,020	1,348,817
2,021	1,343,661
2,022	1,332,328
2023 and thereafter	2,777,546
Total	$ 8,153,428	$ 12,419,692

7. INTANGIBLE ASSETS (Details N

7. INTANGIBLE ASSETS (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 446,523	$ 413,661	$ 1,344,966	$ 1,307,404

8. LEASES (Details)

8. LEASES (Details)	Sep. 30, 2018USD ($)
Leases [Abstract]
2,019	$ 2,856,546
2,020	2,630,350
2,021	2,498,662
2,022	2,498,662
2023 and thereafter	10,033,593
Total	$ 20,517,813

8. LEASES (Details Narrative)

8. LEASES (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Leases [Abstract]
Rent Expense	$ 679,585	$ 1,264,995	$ 2,628,440	$ 3,049,940

9. RELATED PARTY TRANSACTIONS (

9. RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Related Party Transactions [Abstract]
Due to independent director	$ 0	$ 8,531

10. EQUITY (Details)

10. EQUITY (Details) - $ / shares	Sep. 30, 2018	Dec. 31, 2017
Total number of shares purchased	560,768	426,794
Average price paid per share	$ 11.62	$ 9.32
January 1, 2018 to March 31, 2018
Total number of shares purchased	37,462
Average price paid per share	$ 19.10
April 1, 2018 to June 30, 2018
Total number of shares purchased	96,512
Average price paid per share	$ 18.86
July 1, 2018 to September 30, 2018
Total number of shares purchased	0
Average price paid per share	$ 0

10. EQUITY (Details Narrative)

10. EQUITY (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Equity [Abstract]
Unvested options awards expense	$ 8,441,881	$ 1,067,778	$ 2,439,887	$ 3,702,748
Unvested options awards restricted stock expense	$ 426,287	$ 270,931	$ 1,308,195	$ 538,074
Common stock issued	101,210	12,000	233,484	45,000
Restricted common stock issued	30,538	27,032	66,620	49,128
Common stock repurchased, amount	$ 0		$ 133,974
Common stock repurchased, shares	0		2,536,064

11. COMMITMENTS AND CONTINGEN_3

11. COMMITMENTS AND CONTINGENCIES (Details)	Sep. 30, 2018USD ($)
Commitments and Contingencies Disclosure [Abstract]
Contracts for acquisition of plant and equipment being or to be executed	$ 1,452,986

12. STOCK BASED COMPENSATION (D

12. STOCK BASED COMPENSATION (Details)	9 Months Ended
	Sep. 30, 2018USD ($)$ / sharesshares
Outstanding Ending Balance	1,808,063
Equity Option [Member]
Outstanding Begining Balance	1,892,189
Grants	206,682
Forfeitures	(57,324)
Exercises	(233,484)
Outstanding Ending Balance	1,808,063
Vested and exercisable	1,309,824
Weighted Average Exercise Price, Outstanding Begining Balance | $ / shares	$ 11.54
Weighted Average Exercise Price, Grants | $ / shares	.00
Weighted Average Exercise Price, Forfeitures | $ / shares	.00
Weighted Average Exercise Price, Exercises | $ / shares	.00
Weighted Average Exercise Price, Outstanding Ending Balance | $ / shares	12.32
Weighted Average Exercise Price, Vested and exercisable | $ / shares	$ 11.29
Weighted-Average Remaining Contractual Term, Outstanding Begining Balance	7 years
Weighted-Average Remaining Contractual Term, Outstanding Ending Balance	6 years 8 months 12 days
Weighted-Average Remaining Contractual Term, Vested and exercisable	5 years 10 months 24 days
Aggregate Intrinsic Value, Outstanding Begining Balance | $	$ 4,909,194
Aggregate Intrinsic Value, Outstanding Ending Balance | $	12,194,007
Aggregate Intrinsic Value, Vested and exercisable | $	$ 9,412,456

12. STOCK BASED COMPENSATION _2

12. STOCK BASED COMPENSATION (Details 1)	Sep. 30, 2018$ / sharesshares
Number of Options Outstanding	1,808,063
Number of Options Exercisable	1,309,824
Stock Option One Member [Member]
Number of Options Outstanding	185,547
Number of Options Exercisable	185,547
Stock Option One Member [Member] | Minimum [Member]
Number of Options Exercise Price | $ / shares	$ 3
Stock Option One Member [Member] | Maximum [Member]
Number of Options Exercise Price | $ / shares	$ 4.95
Stock Option Two Member [Member]
Number of Options Outstanding	465,124
Number of Options Exercisable	428,176
Stock Option Two Member [Member] | Minimum [Member]
Number of Options Exercise Price | $ / shares	$ 5
Stock Option Two Member [Member] | Maximum [Member]
Number of Options Exercise Price | $ / shares	$ 9.19
Stock Option Three Member [Member]
Number of Options Outstanding	525,070
Number of Options Exercisable	303,467
Stock Option Three Member [Member] | Minimum [Member]
Number of Options Exercise Price | $ / shares	$ 9.20
Stock Option Three Member [Member] | Maximum [Member]
Number of Options Exercise Price | $ / shares	$ 15
Stock Option Four Member [Member]
Number of Options Outstanding	468,822
Number of Options Exercisable	261,534
Stock Option Four Member [Member] | Minimum [Member]
Number of Options Exercise Price | $ / shares	$ 15.01
Stock Option Four Member [Member] | Maximum [Member]
Number of Options Exercise Price | $ / shares	$ 20
Stock Option Five Member [Member]
Number of Options Outstanding	163,500
Number of Options Exercisable	131,100
Stock Option Five Member [Member] | Minimum [Member]
Number of Options Exercise Price | $ / shares	$ 20.10

12. STOCK BASED COMPENSATION _3

12. STOCK BASED COMPENSATION (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Stock-based compensation	$ 844,181	$ 1,067,778	$ 2,439,887	$ 3,702,748
Compensation cost related to restricted stock grants	426,287	$ 270,931	1,308,195	$ 538,074
Unrecognized compensation cost related to non-vested stock option awards	$ 4,418,388		$ 4,418,388
Non-vested stock option awards	498,239		498,239
Unrecognized compensation cost related to non-vested restricted stock awards	$ 3,456,690		$ 3,456,690
Non-vested restricted stock	265,918		265,918
Weighted-average period for the stock option awards			1 year 10 months 10 days
Weighted-average period for the restricted stock awards			1 year 5 months 26 days
Shares issued under 2011, 2013 and 2014 Incentive Plan	16,000	12,000	206,682	523,738
Grant date fair value of options	$ 208,940	$ 76,655	$ 2,809,655	$ 4,425,913
Expected life	6 years	6 years	6 years	6 years
Proceeds from stock option exercises	$ 1,542,840	$ 159,131	$ 2,708,603	$ 232,910
Minimum [Member]
Stock exercise price	$ 20.60	$ 8.55	$ 14.50	$ 5.30
Volatility	65.15%	87.77%	65.15%	87.77%
Risk-free rate	2.86%	1.94%	2.33%	1.86%
Maximum [Member]
Stock exercise price	$ 23.55	$ 8.75	$ 23.55	$ 13.20
Volatility	66.34%	88.68%	90.43%	89.62%
Risk-free rate	3.00%	2.07%	3.00%	2.29%

13. NET INCOME (LOSS) PER SHARE

13. NET INCOME (LOSS) PER SHARE (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Earnings Per Share [Abstract]
Net loss	$ (12,743,764)	$ (6,202,214)	$ (30,426,263)	$ (18,567,725)
Weighted average shares of common stock	17,604,473	14,349,569	17,281,240	14,310,344
Dilutive effect of stock options	0	0	0	0
Restricted stock vested not issued	0	0	0	0
Common stock and common stock equivalents	17,604,473	14,349,569	17,281,240	14,310,344
Net loss per basic and diluted share	$ (0.72)	$ (0.43)	$ (1.76)	$ (1.30)

14. INCOME TAXES (Details Narra

14. INCOME TAXES (Details Narrative)	9 Months Ended
	Sep. 30, 2018USD ($)
U.S Federal [Member]
Net operating loss carryforwards	$ 21,300,000
Effective tax rate	21.00%
U.S. State [Member]
Net operating loss carryforwards	$ 15,600,000
Chinese [Member]
Net operating loss carryforwards	$ 5,000,000
Effective tax rate	25.00%
Hong Kong [Member]
Effective tax rate	16.50%