EMI Holding 10-K 16 Apr 18 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2017	Mar. 20, 2018	Jun. 30, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	EMMAUS LIFE SCIENCES, INC.
Entity Central Index Key	1,420,031
Document Type	10-K
Trading Symbol	EMMA
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 264,040,864
Entity Common Stock, Shares Outstanding		34,910,506
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,017

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2017	Dec. 31, 2016
CURRENT ASSETS
Cash and cash equivalents	$ 15,836,063	$ 1,317,340
Restricted cash	6,720,000
Accounts receivable	26,814	14,221
Inventories, net	625,299	166,209
Investment in marketable securities	99,836,397	10,917,301
Marke table securities, pledged to creditor	160,925	179,765
Prepaid expenses and other current assets	290,371	129,204
Total current assets	123,495,869	12,724,040
PROPERTY AND EQUIPMENT, NET	105,302	53,730
OTHER ASSETS
Long-term investment at cost	65,520
Intangibles, net	67,200
Deposits	111,581	214,808
Total other assets	244,301	214,808
Total assets	123,845,472	12,992,578
CURRENT LIABILITIES
Accounts payable and accrued expenses	5,695,310	3,201,154
Deferred rent	30,078	15,840
Other current liabilities	10,109
Warrant derivative liabilities	26,377,000
Notes payable, net	7,871,143	4,094,429
Notes payable to related parties, net	2,036,261	1,924,850
Convertible notes payable, net	7,025,002	9,205,007
Convertible notes payable to related parties, net	400,000	474,000
Total current liabilities	49,444,903	18,915,280
LONG-TERM LIABILITIES
Deferred rent	10,821	41,241
Other long-term liabilities	36,852,290
Warrant derivative liabilities	1,882,000	10,600,000
Conversion option liabilities	1,289,000
Convertible notes payable, net	20,075,780	997,957
Total long-term liabilities	60,109,891	11,639,198
Total liabilities	109,554,794	30,554,478
STOCKHOLDERS’ EQUITY (DEFICIT)
Preferred stock — par value $0.001 per share, 20,000,000 shares authorized, none issued and outstanding
Common stock — par value $0.001 per share, 100,000,000 shares authorized, 34,885,506 shares and 34,701,219 shares issued and outstanding at December 31, 2017 and December 31, 2016, respectively	34,886	34,701
Additional paid-in capital	113,111,745	92,614,801
Accumulated other comprehensive income (loss)	41,275,785	(3,450,746)
Accumulated deficit	(140,131,738)	(106,760,656)
Total stockholders’ equity (deficit)	14,290,678	(17,561,900)
Total liabilities & stockholders’ equity (deficit)	$ 123,845,472	$ 12,992,578

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2017	Dec. 31, 2016
Statement Of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized	20,000,000	20,000,000
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized	100,000,000	100,000,000
Common stock, issued	34,885,506	34,701,219
Common stock, outstanding	34,885,506	34,701,219

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Income Statement [Abstract]
SALES	$ 524,447	$ 461,591
SALES RETURN & ALLOWANCE	(11,000)
REVENUES, NET	513,447	461,591
COST OF GOODS SOLD
Cost of goods sold	221,095	221,250
Scrapped inventory	62,738
Total cost of goods sold	283,833	221,250
GROSS PROFIT	229,614	240,341
OPERATING EXPENSES
Research and development	2,815,106	1,987,966
Selling	1,233,013	438,242
General and administrative	15,071,360	9,342,635
Total operating expenses	19,119,479	11,768,843
LOSS FROM OPERATIONS	(18,889,865)	(11,528,502)
OTHER INCOME (EXPENSE)
Gain on debt extinguishment		1,019
Loss on debt settlement	0	(266,736)
Change in fair value of warrant derivative liabilities	(15,777,000)	(2,745,890)
Convertible note inducement expense		(1,444,863)
Interest and other income (loss)	(6,768)	1,538
Interest expense	(11,000,559)	(5,191,720)
Total other income expense	(26,784,327)	(9,646,652)
LOSS BEFORE INCOME TAXES	(45,674,192)	(21,175,154)
INCOME TAXES (BENEFIT)	(12,303,110)	3,693
NET LOSS	(33,371,082)	(21,178,847)
COMPONENTS OF OTHER COMPREHENSIVE INCOME (LOSS)
Unrealized holding gain (loss) on marketable securities	44,752,413	(3,121,949)
Unrealized loss in foreign translation	(25,882)	(10,473)
Other comprehensive income (loss), net of tax	44,726,531	(3,132,422)
COMPREHENSIVE INCOME (LOSS)	$ 11,355,449	$ (24,311,269)
NET LOSS PER COMMON SHARE	$ (0.96)	$ (0.70)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING	34,790,498	30,194,085

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - 12 months ended Dec. 31, 2017 - USD ($)	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Accumulated Deficit [Member]
Balance, beginning at Dec. 31, 2016	$ (17,561,900)	$ 34,701	$ 92,614,801	$ (3,450,746)	$ (106,760,656)
Balance, beginning (in shares) at Dec. 31, 2016		34,701,219
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beneficial conversion feature relating to convertible and promissory notes payable	14,093,612		14,093,612
Stock issued for cash	1,141,600	$ 145	1,141,455
Stock issued for cash (in shares)		144,750
Conversion of notes payable to common stock	210,079	$ 28	210,051
Conversion of notes payable to common stock (in shares)		27,642
Share-based compensation	5,051,838		5,051,838
Exercise of common stock options (cashless)		$ 12	(12)
Exercise of common stock options (cashless) (in shares)		11,895
Unrealized gain on marketable securities, net of tax	44,752,413			44,752,413
Foreign currency translation effect	(25,882)			(25,882)
Net loss	(33,371,082)				(33,371,082)
Balance, ending at Dec. 31, 2017	$ 14,290,678	$ 34,886	$ 113,111,745	$ 41,275,785	$ (140,131,738)
Balance, ending (in shares) at Dec. 31, 2017		34,885,506

CONSOLIDATED STATEMENT OF CHAN6

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (Parenthetical) - $ / shares	Dec. 31, 2017	Dec. 31, 2016
Statement Of Stockholders Equity [Abstract]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized	100,000,000	100,000,000

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (33,371,082)	$ (21,178,847)
Adjustments to reconcile net loss to net cash flows from operating activities
Depreciation and amortization	32,379	15,198
Cost of scrapped inventory written off	62,738
Amortization of discount of convertible notes	8,859,370	3,132,857
Foreign exchange adjustments on convertible notes and notes payable	78,969	57,563
Tax benefit recognized on unrealized gain on securities	(12,306,343)
Gain on debt extinguishment		(1,019)
Loss on debt settlement		266,736
Loss on disposal of property and equipment	6,358
Share-based compensation	5,051,838	3,328,400
Convertible note inducement expense		1,444,863
Change in fair value of warrant derivative liabilities	15,777,000	2,745,890
Net changes in operating assets and liabilities
Accounts receivable	(12,322)	92,590
Inventories	(517,073)	52,287
Prepaid expenses and other current assets	(141,746)	(3,400)
Deposits	104,971	61,557
Accounts payable and accrued expenses	3,724,412	43,672
Deferred rent	(16,197)	(2,929)
Other current liabilities	10,159	(88,331)
Other long-term liabilities	36,852,290
Net cash flows provided by (used in) operating activities	24,195,721	(10,032,913)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments towards intangible asset	(67,200)
Purchases of property and equipment	(90,059)	(10,369)
Purchase of marketable securities and investment at cost	(31,903,450)	(14,000,000)
Net cash flows used in investing activities	(32,060,709)	(14,010,369)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from notes payable issued	4,503,751	2,754,700
Proceeds from convertible notes payable issued, net of issuance cost and discount	25,069,654	4,640,904
Payments of notes payable	(794,339)	(3,639,971)
Payments of convertible notes	(804,105)	(1,202,852)
Proceeds from issuance of common stock	1,141,600	22,341,156
Net cash flows provided by financing activities	29,116,561	24,893,937
Effect of exchange rate changes on cash	(12,850)	(5,656)
Net increase in cash, cash equivalents and restricted cash	21,238,723	844,999
Cash, cash equivalents and restricted cash, beginning of period	1,317,340	472,341
Cash, cash equivalents and restricted cash, end of period	22,556,063	1,317,340
SUPPLEMENTAL DISCLOSURES OF CASH FLOW ACTIVITIES
Interest paid	825,241	683,038
Income taxes paid	3,233	3,693
Conversion of notes payable to common stock	200,000	4,600,930
Conversion of accrued interest payable to common stock	$ 10,079	$ 289,175

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	12 Months Ended
	Dec. 31, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS	NOTE 1—DESCRIPTION OF BUSINESS Organization —Emmaus Life Sciences, Inc. (the “Company” or “Emmaus”), which is engaged in the discovery, development, and commercialization of innovative treatments and therapies primarily for rare and orphan diseases, was incorporated in the state of Delaware on September 24, 2007. Pursuant to an Agreement and Plan of Merger, dated April 21, 2011 (the “Merger Agreement”), by and among the Company, AFH Merger Sub, Inc., a wholly‑owned subsidiary of the Company (“AFH Merger Sub”), AFH Holding and Advisory, LLC (“AFH Advisory”), and Emmaus Medical, Inc. (“Emmaus Medical”), Emmaus Medical merged with and into AFH Merger Sub with Emmaus Medical continuing as the surviving entity (the “Merger”). Upon the closing of the Merger, the Company changed its name from “AFH Acquisition IV, Inc.” to “Emmaus Holdings, Inc.” and became the parent company of Emmaus Medical. The Company changed its name from “Emmaus Holdings, Inc.” to “Emmaus Life Sciences, Inc.” on September 14, 2011. Emmaus Medical is a Delaware corporation originally incorporated on September 12, 2003. Emmaus Medical, LLC was organized on December 20, 2000. In October 2003, Emmaus Medical, LLC conducted a reorganization and merged with Emmaus Medical. As a result of the merger, Emmaus Medical acquired the exclusive patent rights for a treatment for sickle cell disease (“SCD”). In October 2010, the Company established Emmaus Medical Japan, Inc., a Japanese corporation (“EM Japan”) by funding 97% of the initial capital. EM Japan is engaged in the business of trading in nutritional supplements and other medical products and drugs. The results of EM Japan have been included in the consolidated financial statements of the Company since the date of formation. The aggregate formation cost was $52,500. Emmaus Medical acquired the additional 3% of the outstanding shares of EM Japan during the three months ended March 31, 2011 and is now the 100% owner of the outstanding share capital. In November 2011, the Company formed Emmaus Medical Europe, Ltd. (“EM Europe”), a wholly owned subsidiary of Emmaus Medical. EM Europe’s primary focus is expanding the business of Emmaus Medical in Europe. In December 2016, the Company formed Emmaus Life Sciences Korea Co. Ltd. (“ELSK”), a wholly owned subsidiary of Emmaus Medical. ELSK’s primary focus is expanding the business of Emmaus Medical in Korea. Emmaus, its wholly‑owned subsidiary, Emmaus Medical, and Emmaus Medical’s wholly‑owned subsidiaries, Newfield Nutrition Corporation (“Newfield Nutrition”), EM Japan, ELSK and EM Europe, are collectively referred to herein as the “Company.” Nature of Business —The Company has undertaken the business of developing and commercializing cost‑effective treatments and therapies for rare diseases. The Company’s primary business purpose is to commercialize its treatment for SCD. On July 7, 2017, the FDA has approved our lead product Endari (L-glutamine oral powder) to reduce the severe complications of sickle cell disease in adult and pediatric patients ages 5 and older. We are transitioning from developmental stage to our next phase as a commercial organization, and plan to launch Endari in the first quarter of 2018. In order to do so, we are building a targeted sales force of 15 to 30 sales representatives and a commercial organization including marketing, trade and distribution functions. To a lesser extent, the Company is also engaged in the marketing and sale of NutreStore, which has received approval from the FDA, as a treatment for short bowel syndrome (“SBS”) in patients receiving specialized nutritional support when used in conjunction with a recombinant human growth hormone that is approved for this indication. The Company’s indirect wholly‑owned subsidiary, Newfield Nutrition, sells nutritional supplements under the brand name AminoPure through retail stores in multiple states in the United States and via importers and distributors in Japan, Taiwan and South Korea. The Company also owns a minority interest of less than 1% in CellSeed, Inc., a Japanese company listed on the Tokyo Stock Exchange (“CellSeed”), which is engaged in research and development of regenerative medicine products and the manufacture and sale of temperature‑ responsive cell culture equipment. The Company also is involved in research focused on providing innovative solutions for tissue‑engineering through the development of novel cell harvest methods and three‑dimensional living tissue replacement products for “cell sheet therapy” and regenerative medicine and the future commercialization of such products.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation —The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) codified in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”). Certain prior period amounts have been reclassified to conform to the current period presentation. Going concern —The accompanying consolidated financial statements have been prepared on the basis that the Company will continue as a going concern. The Company had net losses of $33.4 million and $21.2 million for the years ended December 31, 2017 and 2016, respectively. In addition, the Company has a significant amount of notes payable and other obligations due within the next twelve months and is projecting that its operating losses and expected capital needs, including the expected costs relating to the commercialization of Endari, will exceed its existing cash balances and cash expected to be generated from operations for the foreseeable future. In order to meet the Company’s expected obligations, management intends to raise additional funds through equity and debt financings and partnership agreements. However, there can be no assurance that the Company will be able to complete any additional equity or debt financings or enter into partnership agreements. Therefore, due to the uncertainty of the Company’s ability to meet its current operating and capital expenses, there is substantial doubt about the Company’s ability to continue as a going concern, as the continuation and expansion of its business is dependent upon obtaining further financing, successful and sufficient market acceptance of its products, and achieving a profitable level of operations. The consolidated financial statements do not include any adjustments that might result from the outcome of these uncertainties. Principles of consolidation —The consolidated financial statements include the accounts of the Company (and its wholly‑owned subsidiary, Emmaus Medical, and Emmaus Medical’s wholly‑owned subsidiaries, Newfield Nutrition, EM Japan, ELSK and EM Europe). All significant intercompany transactions have been eliminated. Estimates —Financial statements prepared in accordance with GAAP require management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Among other things, management has estimated the useful lives of equipment and other assets, valuation of intangible assets, along with the variables used to calculate the valuation of stock options and warrants using the Black‑Scholes‑Merton option valuation model. The various warrants issued by the Company in (i) a private placement in September 2013, (ii) in connection with GPB debt transactions in December 2017 and (iii) replacement warrants issued in June 2014 contain non‑standard anti‑dilution protection and, consequently, are being accounted for as liabilities that are remeasured to fair market value at each reporting period (Note 6). In addition, the remaining initial private placement warrants may now utilize a cashless exercise feature since the shares associated with them were not registered by the one‑year anniversary of their issue. These warrants have now been reclassified from liability classified warrants to warrant derivative liabilities and to continue to be remeasured at fair value each reporting period. The initial value as well as the fair value of all such warrants were determined using a Binomial Monte‑Carlo Cliquet (aka Ratchet) Option Pricing Model. The model is similar to traditional Black‑Scholes‑type option pricing models except that the exercise price resets at certain dates in the future. Actual results could differ from those estimates. Cash and cash equivalents —Cash and cash equivalents include short‑term securities with original maturities of less than ninety days. The Company maintains its cash and cash equivalents at insured financial institutions, the balances of which may, at times, exceed federally insured limits. Management believes that the risk of loss due to the concentrations is minimal. Restricted Cash — Restricted cash includes funds that are held in escrow by the lender and restricted as to withdrawal until certain conditions are met. See Note 6 under “Purchase Agreement with GPB.” The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on our consolidated statements of cash flows as of December 31, 2017: At December 31, 2017 2016 Cash and cash equivalents $ 15,836,063 $ 1,317,340 Restricted cash 6,720,000 — Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows $ 22,556,063 $ 1,317,340 Inventories —Inventories are valued based on first‑in, first‑out and at the lesser of cost or market value. Work‑in‑process inventories consist of L‑glutamine for the Company’s Endari, AminoPure and NutreStore products that has not yet been packaged and labeled for sale. All of the raw material purchases during the years ended December 31, 2017 and 2016 were from one vendor. The below table presents inventory by category: As of December 31, Inventories by category 2017 2016 Raw materials and components $ — $ — Work-in-process 124,801 34,462 Finished goods 500,498 131,747 Total $ 625,299 $ 166,209 Prepaid expenses and other current assets —Prepaid expenses and other current assets consisted of the following at December 31, 2017 and 2016: December 31, 2017 2016 Prepaid insurance $ 132,387 $ 100,060 Other prepaid expenses and current assets 157,984 29,144 $ 290,371 $ 129,204 Deposits —Carrying value of amounts transferred to third parties for security purposes that are expected to be returned or applied towards payment after one year or beyond the operating cycle, if longer, are recorded as deposits. Deposit amounts consist of retainer payments for professional services and security deposits for its offices. Revenue recognition —Revenue is recognized when there is persuasive evidence that an arrangement exists, delivery has occurred, the price is fixed and determinable and collection is reasonably assured. With prior written approval of the Company, in certain situations, product is returnable only by its direct customers for a returned goods credit, for product that is expired, damaged in transit, or which is discontinued, withdrawn or recalled. The Company estimates its sales returns based upon its prior sales and return history and accrues a sales return allowance at the time of sale. Historically, sales returns have been immaterial. The Company pays royalties on an annual basis based on existing license arrangements. These royalties are recognized as cost of goods sold upon sale of the products. Allowance for doubtful accounts —The Company provides an allowance for uncollectible accounts based upon prior experience and management’s assessment of the collectability of existing specific accounts. Advertising cost —Advertising costs are expensed as incurred. Advertising costs for the years ended December 31, 2017 and 2016 were $59,045 and $35,622, respectively. Property and equipment —Furniture and fixtures are recorded at historical cost and amortized on a straight‑line basis over their estimated useful lives of 5 to 7 years. Leasehold improvements are recorded at historical cost and amortized on a straight‑line basis over the shorter of their estimated useful lives or the lease terms. Maintenance and repairs are expensed as incurred, while major additions and improvements are capitalized. Gains and losses on disposition are included in current operations. Intangibles —The Company’s intangible assets include license issue fees, patent costs relating to license agreements and website development costs. These intangible assets are amortized over a period of 3 to 7 years, the estimated legal life of the patents, economic life of the license agreements and website development costs. The intangible assets are assessed by management for potential impairment on an annual basis. No impairment existed as of December 31, 2017 and 2016. Impairment of long‑lived assets —The Company evaluates the carrying value of its long‑lived assets for impairment whenever events or changes in circumstances indicate that such carrying values may not be recoverable. The Company uses its best judgment based on the current facts and circumstances relating to its business when determining whether any significant impairment factors exist. If the Company determines that the carrying values of long‑lived assets may not be recoverable based upon the existence of one or more indicators of impairment, the Company performs an undiscounted cash flow analysis to determine if impairment exists. If impairment exists, the Company measures the impairment based on the difference between the asset’s carrying amount and its fair value, and the impairment is charged to the consolidated statement of comprehensive loss in the period in which the long‑lived asset impairment is determined to have occurred. Research and development —Research and development consists of expenditures for the research and development of new products and technologies, which primarily involve contract research, payroll‑related expenses, and other related supplies. Research and development costs are expensed as incurred. Intangible assets acquired for research and development purposes are capitalized if they have alternative future use. Share‑based compensation —The Company recognizes compensation cost for share‑based compensation awards over the service term of the recipients of the share‑based awards. The fair value of share‑based compensation is calculated using the Black‑Scholes‑Merton pricing model. The Black‑Scholes‑Merton model requires subjective assumptions regarding future stock price volatility and expected time to exercise, which greatly affect the calculated values. The expected term of awards granted is calculated using the simplified method allowed under the Securities and Exchange Commission (“SEC”) Staff Accounting Bulletin Nos. 107 and 110. The risk‑free rate selected to value any particular grant is based on the U.S. Treasury rate on the grant date that corresponds to the expected term of the award. The expected volatility is based on the historical volatility of the common stock of comparable publicly traded companies. These factors could change, affecting the determination of stock‑based compensation expense in future periods. Income taxes —The Company accounts for income taxes under the asset and liability method, wherein deferred tax assets and liabilities are recognized for the future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. 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 on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through the generation of future taxable income for the related jurisdictions. For balance sheet presentation, current deferred tax assets and liabilities within each tax jurisdiction have been offset and presented as a single amount and non‑current deferred tax assets and liabilities within each tax jurisdiction have been offset and presented as a single amount. When tax returns are filed, it is highly probable that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more‑ likely‑than‑not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits along with any associated interest and penalties that would be payable to the taxing authorities upon examination. As of December 31, 2017, the Company had no unrecognized tax benefits, and the Company had no positions which, in the opinion of management, would be reversed if challenged by a taxing authority. In the event the Company is assessed interest and/or penalties, such amounts will be classified as income tax expense in the financial statements. As of December 31, 2017, all federal tax returns since 2014 and state tax returns since 2013 are still subject to adjustment upon audit. No tax returns are currently being examined by taxing authorities. Comprehensive income (loss) —Comprehensive income (loss) includes net loss and other comprehensive income (loss). The items of other comprehensive income (loss) for the Company are unrealized gains and losses on marketable securities and foreign translation adjustments relating to its subsidiaries. When the Company realizes a gain or loss on marketable securities for which an unrealized gain or loss was previously recognized, a corresponding reclassification adjustment is made to remove the unrealized gain or loss from accumulated other comprehensive income and reflect the realized gain or loss in current operations. Marketable securities — The Company’s marketable securities consist of four securities; (a) 39,250 shares of capital stock of CellSeed, Inc. (“CellSeed”) which are part of 147,100 shares acquired in January 2009 for ¥100,028,000 Japanese Yen (JPY) (equivalent to $1.1 million USD), at ¥680 JPY per share; (b) 849,744 shares of capital stock of KPM Tech Co., Ltd. (“KPM”) which were acquired in October 2016 for ₩14,318,186,400 South Korean Won (KRW) (equivalent to $13 million USD) at ₩16,850 KRW per share; (c) 271,950 shares of capital stock of Hanil Vacuum Co., Ltd. (“Hanil”) which were acquired in October 2016 for ₩1,101,397,500 KRW (equivalent to $1 million USD) at ₩4,050 KRW per share; and (d) 6,643,559 shares of capital stock of Telcon, Inc. (“Telcon”) which were acquired in July 2017 for ₩36,001,446,221 KRW (equivalent to $31.8 million USD) at ₩5,419 KRW per share. As of December 31, 2017 and December 31, 2016, the closing price per share for CellSeed on the Tokyo Stock Exchange was ¥462 JPY ($4.10 USD) and ¥536 JPY ($4.58 USD), respectively, the closing price per share for KPM on the Korean Securities Dealers Automated Quotations (“KOSDAQ”) was ₩1,625 KRW ($1.52 USD) after 1-for-5 reverse stock split effective June 28, 2017 and ₩14,600 KRW ($12.08 USD), respectively, the closing price per share for Hanil on KOSDAQ was ₩2,830 KRW ($2.65 USD) and ₩2,895 KRW ($2.40 USD), respectively. As of December 31, 2017, the closing price per share for Telcon on KOSDAQ was ₩14,900 KRW ($13.95 USD). As of December 31, 2017, 39,250 shares of CellSeed stock are pledged to secure a $300,000 convertible note issued to Mitsubishi UFJ Capital III Limited Partnership that is due on demand and are classified as current assets, as marketable securities, pledged to creditor. Loss on debt settlement —The Company records loss on debt settlement when the Company’s common stocks are issued in settlement for non-convertible debt and its accrued interest. During the year ended December 31, 2017 and 2016, the Company recorded a loss on debt settlement of $0 and $266,736, respectively. Foreign Currency Translation —The Company’s reporting currency is the U.S. dollar. The Yen, Korean Won, and the Euro are the functional currencies of its subsidiaries, EM Japan, ELSK and EM Europe, respectively, as they are the primary currencies within the economic environments in which EM Japan, ELSK and EM Europe operate. Assets and liabilities of their operations are translated into U.S. dollars at period‑end exchange rates, and revenues and expenses are translated into U.S. dollars at average exchange rates in effect during each reporting period. Adjustments resulting from the translation are reported in other comprehensive income or loss. Financial Instruments —Financial instruments included in the financial statements are comprised of cash and cash equivalents, restricted cash, short‑term marketable securities pledged to creditor, long-term investment at cost, accounts receivable, warrant derivative liabilities, accounts payable, certain accrued liabilities, convertible notes, promissory notes and other contingent liabilities. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair values due to the short‑term nature of those instruments. Other long-term liabilities —Other long-term liabilities consisted of the following at December 31, 2017 and 2016: At December 31, 2017 2016 Trade discount $ 31,841,500 $ — Unearned revenue 5,000,000 — Other long-term liabilities 10,790 — Total other long-term liabilities $ 36,852,290 $ — The Company entered into an API Supply Agreement (the “API Agreement”) with Telcon pursuant to which Telcon advanced to the Company approximately ₩36.0 billion KRW (approximately $31.8 million USD) in consideration as an advance trade discount to supply 25% of the Company’s requirements for bulk containers of pharmaceutical grade L-glutamine (“PGLG”) for a term of five years with 10 one-year renewal periods for a maximum of 15 years. The agreement will automatically renew unless terminated by either party in writing. The agreement does not include yearly purchase commitments or margin guarantees. The advance trade discount shall be applied against purchases made by the Company from Telcon over the life of the agreement. Fair value measurements —The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company measures fair value under a framework that provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described as follows: Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access. Level 2: Inputs to the valuation methodology include: • Quoted prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in inactive markets; • Inputs other than quoted prices that are observable for the asset or liability; • Inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level 2 inputs must be observable for substantially the full term of the asset or liability. Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value assigned to marketable securities is determined by obtaining quoted prices on nationally recognized securities exchanges, and are classified as Level 1 investments at December 31, 2017 and 2016. The fair value of the Company’s debt instruments is not materially different from their carrying values as presented. The fair value of the Company’s convertible debt instruments was determined based on Level 2 inputs. The carrying value of the debt was discounted based on allocating proceeds to other financial instruments within the arrangement as discussed in Note 5. The Company issued warrants in (i) a private placement in September 2013, (ii) in connection with GPB debt transactions in December 2017 and (iii) replacement warrants issued in June 2014 contain nonstandard anti-dilution protection and, consequently, are being accounted for as liabilities that are remeasured to fair market value at each reporting period (Note 6). Such warrants and replacement warrants contain non‑standard anti‑dilution protection, and consequently, are accounted for as liabilities measured at fair value on a recurring basis, whose fair value is determined using Level 3 inputs. In addition, the remaining initial private placement warrants may now utilize a cashless exercise feature since the shares associated with them were not registered by the one‑year anniversary of their issue. These warrants have now been reclassified from liability classified warrants to warrant derivative liabilities and continue to be remeasured at fair value each reporting period. The Level 3 inputs in the valuation of warrants include expected term and expected volatility. The following tables present the activity for those items measured at fair value on a recurring basis using Level 3 inputs during 2017 and 2016: Year ended December 31, Warrant Derivative Liabilities—Stock Purchase Warrants 2017 2016 Balance, beginning of period $ 10,600,000 $ 7,863,000 Reclassification from liability classified warrants — — Change in fair value included in the statement of comprehensive income (loss) 15,777,000 2,737,000 Balance, end of period $ 26,377,000 $ 10,600,000 The value of warrant derivative liability and the change in fair value of warrant derivative liability were determined using a Binomial Monte‑Carlo Cliquet (aka Ratchet) Option Pricing Model. The model is similar to traditional Black‑Scholes‑type option pricing models except that the exercise price resets at certain dates in the future. The values as of December 31, 2017, December 31, 2016, December 31, 2015, December 31, 2014, December 31, 2013, and the initial value as of September 11, 2013 were calculated based on the following assumptions: December 31, 2017 December 31, 2016 December 31, 2015 December 31, 2014 December 31, 2013 Initial Value Stock price $ 11.40 $ 6.00 $ 4.70 $ 4.90 $ 3.60 $ 3.60 Risk‑free interest rate 1.62 % 1.09 % 1.23 % 1.38 % 1.75 % 1.72 % Expected volatility (peer group) 55.80 % 68.30 % 64.10 % 71.50 % 63.20 % 72.40 % Expected life (in years) 0.70 1.70 2.70 3.70 4.70 5.00 Expected dividend yield — — — — — — Number outstanding 3,320,501 3,320,501 3,320,501 3,320,501 3,320,501 3,320,501 Balance, end of period: Liability classified warrants $ — $ — $ — $ 3,206,000 $ 6,517,000 $ 7,541,000 Warrant derivative liabilities $ 26,377,000 $ 10,600,000 $ 7,863,000 $ 6,520,000 $ — $ — The following table presents warrants issued in conjunction with Purchase Agreement with GPB (see Note 6) measured at fair value as of December 31, 2017: Year ended December 31, 2017 Liability Instrument—GPB Warrants Embedded Conversion Option Balance, beginning of period $ — $ — Fair value at issuance date 1,882,000 1,289,000 Change in fair value included in the statement of comprehensive income (loss) — — Balance, end of period $ 1,882,000 $ 1,289,000 The Company evaluated the warrant and embedded conversion option as well as the embedded put options in the debt agreement and warrant under ASC 815-40 and ASC 815-15-25-1, respectively, and concluded that the warrant and embedded conversion and contingently exercisable put options are required to be separately recognized at fair value as a liability and derivative liability, respectively as of December 31, 2017. Moreover, any changes in the fair value of the warrant liability and the derivative bifurcated option liability shall be recognized in earnings. Debt and Related Party Debt —The Company accounts for the proceeds from the issuance of convertible notes payable with detachable stock purchase warrants and embedded conversion features in accordance with FASB ASC 470‑ 20, Debt with Conversion and Other Options . Under FASB ASC 470‑20, the proceeds from the issuance of a debt instrument with detachable stock purchase warrants shall be allocated to the two elements based on the relative fair values of the debt instrument without the warrants and of the warrants themselves at the time of issuance. The portion of the proceeds allocated to the warrants is accounted for as additional paid‑in capital and the remaining proceeds are allocated to the debt instrument, which results in a discount to debt that is amortized and charged as interest expense over the term of the note agreement. Additionally, pursuant to FASB ASC 470‑20, the intrinsic value of the embedded conversion feature of the convertible notes payable is included in the discount to debt and amortized and charged to interest expense over the term of the note agreement. The following table presents the effective interest rates on the original loan principal amount for loans originated in the respective periods that either had a beneficial conversion interest or an attached warrant: Type of Loan Term of Loan Stated Annual Interest Original Loan Principal Amount Conversion Rate Beneficial Conversion Discount Amount Warrants Issued with Notes Exercise Price Warrant FMV Discount Amount Effective Interest Rate Including Discounts 2016 convertible notes payable Due on demand - 2 years 10% $ 10,866,291 $3.50 - $4.50 $ 3,196,544 $ 75,000 $ 4.70 $ 161,658 14% - 102% 2017 convertible notes payable Due on demand - 3 years 10% - 13.5% 36,113,296 $3.50 - $10.31 11,678,725 240,764 $ 10.80 1,882,000 10% - 110% $ 46,979,587 $ 14,875,269 $ 315,764 $ 2,043,658 Related party notes are disclosed as separate line items in the Company’s balance sheet presentation. Net loss per share —In accordance with FASB ASC Topic 260, “Earnings per Share, ” the basic loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding. Dilutive loss per share is computed in a manner similar to the basic loss per common share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. As of December 31, 2017 and 2016, there were 18,228,246 and 15,462,936 shares of potentially dilutive securities outstanding, respectively. As the Company reported a net loss, none of the potentially dilutive securities were included in the calculation of diluted loss per share since their effect would be anti‑dilutive for all periods presented. Recent accounting pronouncements — In January 2016, the FASB issued ASU No. 2016‑01, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). The amendments applicable to the Company in this Update (1) supersede the guidance to classify equity securities, except equity method securities, with readily determinable fair values into trading or available‑for‑sale categories and require equity securities to be measured at fair value with changes in the fair value recognized through net income, (2) allow equity investments that do not have readily determinable fair values to be remeasured at fair value either upon the occurrence of an observable price change or upon identification of an impairment, (3) require assessment for impairment of equity investments without readily determinable fair values qualitatively at each reporting period, (4) eliminate the requirement to disclose the methods and significant assumptions used in calculating the fair value of financial instruments required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (5) require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (6) require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements, (7) clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to marketable securities in combination with the entity’s other deferred tax assets. The amendments in this Update are effective for the Company for fiscal years beginning after December 15, 2017, including interim periods within those years. The amendments should be applied by means of a cumulative‑effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption of the Update. The impact of the adoption of the amendments in this Update will depend on the amount of equity securities and financial instruments subject to the amendments in this Update held by the Company at the time of adoption. In February 2016, the FASB issued ASU No. 2016‑02, Leases In April 2016, the FASB issued ASU 2016‑10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing 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 November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash In January 2017, the FASB issued ASU No. 2017‑01, Business Combinations (Topic 805): Clarifying the Definition of a Business In May 2017, the FASB issued ASU No. 2017-09, Compensation — Stock Compensation (Topic 718): Scope of Modification Accounting 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 February 2018, the FASB issued ASU No. 2018-03, Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities Fair Value Measurement Derivatives and Hedging— Embedded Derivatives Financial Instruments— Overall

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2017
Property Plant And Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 3—PROPERTY AND EQUIPMENT Property and equipment consisted of the following at: 12/31/2017 12/31/2016 Equipment $ 225,615 $ 175,410 Leasehold improvements 61,054 30,804 Furniture and fixtures 74,090 74,760 Sub total 360,759 280,974 Less: accumulated depreciation (255,457 ) (227,244 ) Total $ 105,302 $ 53,730 During the years ended December 31, 2017 and 2016, depreciation expense was $32,379 and $15,279, respectively.

ACCOUNTS PAYABLE AND ACCRUED EX

ACCOUNTS PAYABLE AND ACCRUED EXPENSES	12 Months Ended
	Dec. 31, 2017
Payables And Accruals [Abstract]
ACCOUNTS PAYABLE AND ACCRUED EXPENSES	NOTE 4—ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses consisted of the following at: 12/31/2017 12/31/2016 Accounts payable: Regulatory fees $ 715,999 $ — Clinical and regulatory expenses 116,736 145,239 Commercialization consulting fees 40,000 Legal expenses 87,701 43,700 Consulting fees 143,038 99,800 Accounting fees 67,293 65,267 Selling expenses 35,383 60,724 Investor relations and public relations expenses 55,526 19,931 Other vendors 337,960 41,640 Total accounts payable 1,599,636 476,301 Accrued interest payable, related parties 318,120 274,851 Accrued interest payable 1,449,154 1,441,450 Accrued expenses: Wages and payroll taxes payable 1,711,541 98,566 Deferred salary 291,667 291,667 Paid vacation payable 186,978 196,956 Other accrued expenses 138,214 421,363 Total accrued expenses 2,328,400 1,008,552 Total accounts payable and accrued expenses $ 5,695,310 $ 3,201,154

NOTES PAYABLE

NOTES PAYABLE	12 Months Ended
	Dec. 31, 2017
Debt Disclosure [Abstract]
NOTES PAYABLE	NOTE 5—NOTES PAYABLE Notes payable consisted of the following at December 31, 2017 and 2016: Year Issued Interest Rate Range Term of Notes Conversion Price Principal Outstanding December 31, 2017 Discount Amount December 31, 2017 Carrying Amount December 31, 2017 Shares Underlying Notes December 31, 2017 Principal Outstanding December 31, 2016 Discount Amount December 31, 2016 Carrying Amount December 31, 2016 Shares Underlying Notes December 31, 2016 Notes payable 2013 10% Due on demand — $ 887,600 $ — $ 887,600 — $ 854,900 $ — $ 854,900 — 2015 10% Due on demand — — — — — 2,406,194 — 2,406,194 — 2016 10 - 11% Due on demand — 833,335 — 833,335 — 833,335 — 833,335 — 2017 5 - 11% Due on demand — 6,150,208 — 6,150,208 — — — — — $ 7,871,143 $ — $ 7,871,143 — $ 4,094,429 $ — $ 4,094,429 — Current $ 7,871,143 $ — $ 7,871,143 — $ 4,094,429 $ — $ 4,094,429 — Long-term $ — $ — $ — — $ — $ — $ — — Notes payable-related party 2012 8% Due on demand — $ — $ — $ — — $ 500,000 $ — $ 500,000 — 2013 8% Due on demand — — — — — 50,000 — 50,000 — 2015 11% Due on demand — 310,000 — 310,000 — 514,340 — 514,340 — 2016 10% - 11% Due on demand — 810,510 — 810,510 — 860,510 — 860,510 — 2017 10% Due on demand — 915,751 — 915,751 — — — — — $ 2,036,261 $ — $ 2,036,261 — $ 1,924,850 $ — $ 1,924,850 — Current $ 2,036,261 $ — $ 2,036,261 — $ 1,924,850 $ — $ 1,924,850 — Long-term $ — $ — $ — — $ — $ — $ — — Year Issued Interest Rate Range Term of Notes Conversion Price Principal Outstanding December 31, 2017 Discount Amount December 31, 2017 Carrying Amount December 31 2017 Shares Underlying Notes December 31, 2017 Principal Outstanding December 31, 2016 Discount Amount December 31, 2016 Carrying Amount December 31 2016 Shares Underlying Notes December 31, 2016 Convertible notes payable 2011 10% 5 years $ 3.05 $ 300,000 $ — $ 300,000 98,285 $ 300,000 $ — $ 300,000 98,285 2014 10% Due on demand - 2 years $3.05 - $3.60 486,878 — 486,878 168,766 452,168 — 452,168 152,986 2015 10% 2 years $ 4.50 — — — — 2,904,800 104,389 2,800,411 889,115 2016 10% Due on demand - 2 years $3.50 - $4.50 1,516,329 83,298 1,433,031 441,048 8,126,129 1,475,744 6,650,385 2,193,687 2017 10% - 13.5% Due on demand - 3 years $3.50 - $10.31 36,113,296 11,232,423 24,880,873 5,357,488 — — — — $ 38,416,503 $ 11,315,721 $ 27,100,782 6,065,587 $ 11,783,097 $ 1,580,133 $ 10,202,964 3,334,073 Current $ 12,860,912 $ 5,835,910 $ 7,025,002 3,449,984 $ 10,499,303 $ 1,294,296 $ 9,205,007 2,984,161 Long-term $ 25,555,591 $ 5,479,811 $ 20,075,780 2,615,603 $ 1,283,794 $ 285,837 $ 997,957 349,912 Convertible notes payable-related party 2012 10% Due on demand $ 3.30 $ 200,000 $ — $ 200,000 68,122 $ 254,000 $ — $ 254,000 94,532 2015 10% 2 years $ 4.50 200,000 — 200,000 53,905 220,000 — 220,000 54,463 $ 400,000 $ — $ 400,000 122,027 $ 474,000 $ — $ 474,000 148,995 Current $ 400,000 $ — $ 400,000 122,027 $ 474,000 $ — $ 474,000 148,995 Long-term $ — $ — $ — — $ — $ — $ — — Grand Total $ 48,723,907 $ 11,315,721 $ 37,408,186 6,187,614 $ 18,276,376 $ 1,580,133 $ 16,696,243 3,483,068 The average stated interest rate of notes payable for the years ended December 31, 2017 and 2016 was 11% and 10%, respectively. The average effective interest rate of notes payable for the years ended December 31, 2017 and 2016 was 24% and 23% respectively, after giving effect to discounts relating to beneficial conversion features and the fair value of warrants issued in connection with these notes. The notes payable and convertible notes payable do not have restrictive financial covenants or acceleration clauses associated with a material adverse change event. The holders of the convertible notes have the option to convert their notes into the Company’s common stock at the stated conversion price during the term of their convertible notes. Conversion prices on these convertible notes payable range from $3.05 to $10.31 per share. Certain notes with a $4.50 and a $10.00 stated conversion price in the second year of their two‑year term are subject to automatic conversion into shares of the Company’s common stock at a conversion price equal to 80% of the initial public offering price at the time of a qualified public offering. All due on demand notes are treated as current liabilities. Contractual principal payments due on notes payable are as follows: Year Ending December 31, 2017 2018 $ 23,168,316 2019 5,555,591 2020 20,000,000 Total $ 48,723,907 The Company estimated the total fair value of any beneficial conversion feature and accompanying warrants in allocating the debt proceeds. The proceeds allocated to the beneficial conversion feature were determined by taking the estimated fair value of shares issuable under the convertible notes less the fair value of the number of shares that would be issued if the conversion rate equaled the fair value of the Company’s common stock as of the date of issuance (see Note 2). The fair value of the warrants issued in conjunction with notes was determined using the Black‑Scholes‑Merton option pricing model with the following inputs for the years ended: 2017 2016 Stock price $ 11.40 $ 5.00 Exercise price $ 10.80 $4.50 ‑ 4.70 Term 5 years 5 years Risk‑free interest rate 2.20% 1.01 ‑ 1.28% Expected dividend yield — — Expected volatility 70.0% 65.4 ‑ 69.6% In situations where the debt included both a beneficial conversion feature and a warrant, the proceeds were allocated to the warrants and beneficial conversion feature based on the pro‑rata fair value.

STOCKHOLDERS' DEFICIT

STOCKHOLDERS' DEFICIT	12 Months Ended
	Dec. 31, 2017
Stockholders Equity Note [Abstract]
STOCKHOLDERS' DEFICIT	NOTE 6—STOCKHOLDERS’ DEFICIT Private Placement —On September 11, 2013, the Company issued an aggregate of 3,020,501 units at a price of $2.50 per unit (the “Private Placement”). Each unit consisted of one share of common stock and one common stock warrant for the purchase of an additional share of common stock. The aggregate purchase price for the units was $7,551,253. In addition, 300,000 warrants for the purchase of a share of common stock were issued to a broker under the same terms as the Private Placement transaction (the “Broker Warrants”). The warrants issued in the Private Placement and the Broker Warrants entitle the holders thereof to purchase, at any time on or prior to September 11, 2018, shares of common stock of the Company at an exercise price of $3.50 per share. The warrants contain non‑standard anti‑dilution protection and, consequently, are being accounted for as liabilities, were originally recorded at fair value, and are adjusted to fair market value each reporting period. Because the shares of common stock underlying the Private Placement warrants and Broker Warrants were not effectively registered for resale by September 11, 2014, the warrant holders have an option to exercise the warrants using a cashless exercise feature. The shares have not been registered for resale as of December 31, 2017. The availability to warrant holders of the cashless exercise feature as of September 11, 2014 caused the then‑outstanding 2,225,036 Private Placement warrants and Broker Warrants with fair value of $7,068,000 to be reclassified from liability classified warrants to warrant derivative liabilities and to continue to be remeasured at fair value each reporting period. On June 10, 2014, certain warrant holders exercised 1,095,465 warrants issued in the Private Placement for the exercise price of $3.50 per share, resulting in the Company receiving aggregate exercise proceeds of $3.8 million and issuing 1,095,465 shares of common stock. Prior to exercise, these Private Placement warrants were accounted for at fair value as liability classified warrants. As of June 10, 2014, immediately prior to exercise, the carrying value of these Private Placement warrants was reduced to their fair value immediately prior to exercise of $1.8 million, representing their intrinsic value, with this adjusted carrying value of $1.8 million being transferred to additional paid‑in capital. Also on June 10, 2014, based on an offer made to holders of Private Placement warrants in connection with such exercises, the Company issued an aggregate of 1,095,465 replacement warrants to holders exercising Private Placement warrants, which replacement warrants have terms that are generally the same as the exercised warrants, including an expiration date of September 11, 2018 and an exercise price of $3.50 per share. The replacement warrants are treated for accounting purposes as liability classified warrants, and their issuance gave rise to a $3.5 million warrant exercise inducement expense based on their fair value as of issuance as determined using a Binomial Monte‑Carlo Cliquet (aka Ratchet) Option Pricing Model. Because the shares of common stock underlying the replacement warrants were not effectively registered for resale by June 10, 2015, the warrant holders have an option to exercise the warrants using a cashless exercise feature. The shares have not been registered for resale as of December 31, 2016. The availability to warrant holders of the cashless exercise feature as of June 10, 2015 caused the then‑outstanding 1,095,465 replacement warrants with fair value of $2,545,000 to be reclassified from liability classified warrants to warrant derivative liabilities and to continue to be remeasured at fair value each reporting period. As of December 31, 2017 and 2016, the aggregate fair value of the Private Placement warrants, replacement warrants, and the Broker Warrants were $26,377,000 and $10,600,000, respectively (see Note 2). For further details regarding registration rights associated with the Private Placement warrants, replacement warrants, and Broker Warrants, see the Registration Rights section below in this footnote. Purchase Agreement with GPB —On December 29, 2017, the Company entered into the Purchase Agreement with GPB, pursuant to which the Company issued to GPB a $13,000,000 principal amount senior secured convertible promissory note (the “Initial Note”) for an aggregate purchase price of $12,480,000. The Initial Note was issued with a 4.0% original issue discount. Capitalized terms not defined herein have the definitions given to them in the Purchase Agreement. The Initial Note, which matures on December 29, 2020 (the “Maturity Date”), initially provides for monthly payments of interest, which accrues at the rate of 12.5% per annum. In addition, the Initial Note also provides for an annual payment of paid in kind interest at the rate of 1.0% per annum. Beginning on the 30th month after the issuance of the Initial Note, the Company is required to make monthly principal payments in an amount equal to 5% of the original principal amount. The Initial Note (including accrued and unpaid interest) may be prepaid, in whole or in part, at any time prior to the Maturity Date, upon twenty (20) days’ prior written notice; provided, however, that during such notice period, GPB may exercise its conversion rights described below in whole or in part. Upon a prepayment, in whole or in part, the Company shall pay GPB an additional success fee equal to (a) 2% of any such payment if such payment is paid prior to the 24th-month anniversary of the Original Issue Date or (b) 3% of any such payment if such amount is paid on or after the 24th-month anniversary of the Original Issue Date, inclusive of the Maturity Date. The Initial Note is convertible at any time, in whole or in part, at GPB’s option, into shares of the Company’s Common Stock (“Company Shares”) at a conversion price of $10.31 per Company Share, with customary adjustments for stock splits, stock dividends and other recapitalization events and anti-dilution provisions set forth in the Initial Note. If the Company effects a public listing of Common Stock for trading on any market, whether through a direct listing application or merger transaction, at price per share of Common Stock which is below the conversion price, the conversion price shall be subject to a one-time adjustment to a 10% premium to such public listing price. The Initial Note (a) provides for customary affirmative and negative covenants, including restrictions on the Company incurring subsequent debt, and (b) contains customary event of default provisions with a default interest rate of the lesser of 17.5% for the cash interest or the maximum rate permitted by law. Upon the occurrence of an event of default, GPB may require the Company to redeem the Initial Note at 120% of the then outstanding principal balance plus any accrued and unpaid interest thereon. Subject to certain limited exceptions, the Initial Note is secured by a lien on all of the assets of the Company and its subsidiaries, including the intellectual property of the Company and its subsidiaries, pursuant to a security agreement entered into among the Company and its subsidiaries and GPB (the “Security Agreement”) and an intellectual property security agreement entered into among the Company and its subsidiaries and GPB (“IP Security Agreement”). Subsidiaries of the Company also entered into a guaranty agreement (the “Guaranty Agreement”) pursuant to which the subsidiaries have guaranteed all obligations of the Company to GPB. Pursuant to the Purchase Agreement, in connection with the Initial Note, the Company issued to GPB a warrant (the “Initial Warrant”) that allows GPB to purchase Company Shares with a value of approximately 20% of the face amount of the Initial Note at an exercise price of $10.80 per Company Share, with customary adjustments for stock splits, stock dividends and other recapitalization events and anti-dilution provisions set forth in the Initial Warrant. If the Company effects a public listing of Common Stock for trading on any securities market or exchange, whether through a direct listing application or merger transaction, at a price per share less than the exercise price, the exercise price will be adjusted on a one-time basis to a 10% premium to the dilutive issuance price and the number of shares issuable under the Initial Warrant will be increased on a full ratchet basis. The Initial Warrant is exercisable six months after issuance and has a term of five years after the initial exercise date. The Purchase Agreement provides for the issuance of up to three additional notes by the Company: (i) the Escrow Note, with a principal amount of $7,000,000 with a purchase price of $6,720,000 (4% original issue discount), (ii) the Second Note, with a principal amount of $5,000,000 with a purchase price of $4,800,000 (4% original issue discount) and the Third Note, with a principal amount of $5,000,000 with a purchase price of $4,800,000 (4% original issue discount) (collectively with the Initial Note, the “Notes”). These additional Notes are issuable upon the satisfaction of certain conditions by the Company related to perfection of GPB’s security interest in foreign subsidiary assets and meeting revenue goals. The interest rate, payment terms, conversion rights, events of default and other terms and conditions of the Escrow Note, Second Note and Third Note will be substantially the same as those of the Initial Note. Pursuant to the Purchase Agreement, upon issuance of each additional Note after the Initial Note, the Company is required to issue additional warrants with terms substantially similar to the terms of the Initial Warrant (collectively with the Initial Warrant, the “Warrants”). GPB also has a right of participation for any Company offering, financing or debt issuance for 36 months after December 29, 2017. The Company is required to maintain a 6-month interest reserve. In addition, subject to limited exceptions, GPB will not have the right to convert any portion of the Notes or exercise the Warrants if GPB, together with its affiliates, would beneficially own in excess of 4.99% of the number of shares of the Company’s Common Stock outstanding immediately after giving effect to its conversion (the “Beneficial Ownership Limitation”). The Beneficial Ownership Limitation may be adjusted upon not less than 61 days’ prior notice to the Company, provided that such Beneficial Ownership Limitation in no event shall exceed 9.99%. In connection with the Purchase Agreement, the Company entered into a Registration Rights Agreement (the “Registration Rights Agreement”) pursuant to which the Company has agreed to file a registration statement with SEC relating to the offer and sale by GPB of the Company Shares underlying the Notes and Warrants. The Company is required to file a registration statement within one hundred eighty (180) days of closing of a public listing of the Company’s Common Stock for trading on any national securities exchange (excluding any over-the-counter market), whether through a direct listing application or merger transaction. The Company is required to have the registration statement become effective on the earlier of (A) the date that is two-hundred and forty (240) days following the later to occur of (i) the date of closing of the public listing or (ii) or in the event the registration statement receives a “full review” by the Commission, the date that is 300 days following the date of closing of the public listing, or (B) the date which is within three (3) business days after the date on which the Commission informs the Company (i) that the Commission will not review the registration statement or (ii) that the Company may request the acceleration of the effectiveness of the registration statement. If the Company does not effect such registration within that period of time, it will be required to pay GPB certain late payments specified in the Registration Rights Agreement. A summary of outstanding warrants as of December 31, 2017 and 2016 is presented below. Year ended Year ended December 31, 2017 December 31, 2016 Warrants outstanding, beginning of period 5,024,668 3,530,918 Granted 240,764 1,493,750 Exercised — — Cancelled, forfeited and expired — — Warrants outstanding, end of period 5,265,432 5,024,668 A summary of outstanding warrants by year issued and exercise price as of December 31, 2017 is presented below. Outstanding Exercisable Year issued and Exercise Price Number of Warrants Issued Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Total Weighted Average Exercise Price At December 31, 2013 $ 3.30 50,000 0.33 $ 3.30 50,000 $ 3.30 $ 3.50 2,225,036 0.70 $ 3.50 2,225,036 $ 3.50 2013 total 2,275,036 2,275,036 At December 31, 2014 $ 3.50 1,145,465 0.72 $ 3.50 1,145,465 $ 3.50 2014 Total 1,145,465 1,145,465 At December 31, 2015 $ 4.90 110,417 2.18 $ 4.90 110,417 $ 4.90 2015 Total 110,417 110,417 At December 31, 2016 $ 4.50 118,750 3.50 $ 4.50 118,750 $ 4.50 $ 4.70 75,000 3.33 $ 4.70 75,000 $ 4.70 $ 5.00 1,300,000 3.36 $ 5.00 1,300,000 $ 5.00 2016 Total 1,493,750 1,493,750 At December 31, 2017 $ 10.80 240,764 5.50 $ 10.80 240,764 $ 10.80 Grand Total 5,265,432 5,265,432 Stock options —The 2011 Stock Incentive Plan, which is shareholder‑approved, permits grants of incentive stock options to employees, including executive officers, and other share‑based awards such as stock appreciation rights, restricted stock, stock units, stock bonus and unrestricted stock awards to employees, directors, and consultants for up to 9,000,000 shares of common stock. On February 28, 2013, the number of shares of common stock authorized for issuance under the 2011 Stock Incentive Plan was increased from 3,000,000 shares to 6,000,000 shares. On July 14, 2014, the number of shares of common stock authorized for issuance under the 2011 Stock Incentive Plan was increased from 6,000,000 shares to 9,000,000 shares. Options granted under the 2011 Stock Incentive Plan expire 10 years after grant. Options granted to directors vest in quarterly installments, and all other option grants vest over a minimum period of three years, all based on continuous service with the Company. Management has valued stock options at their date of grant utilizing the Black‑Scholes‑Merton Option pricing model. The fair value of the underlying shares was determined by the market value of stock of similar companies and recent arm’s length transactions involving the sale of the Company’s common stock. The expected volatility was calculated using the historical volatility of a similar public entity in the industry through August 2013 and a group of similar public entities thereafter. The following table presents the assumptions used on recent dates on which options were granted by the Board of Directors. 12/31/2017 5/10/2016 1/14/2016 Stock Price $ 11.40 $ 5.00 $ 4.70 Exercise Price $ 11.40 $ 5.00 $ 4.70 Term 10 years 10 years 10 years Risk-Free Rate 2.27 % 1.36 % 1.70 % Dividend Yield — — — Volatility 68.18 % 65.55 % 64.14 % In making the determination of fair value and finding similar companies, the Company considered the industry, stage of life cycle, size and financial leverage of such other entities. While the Company was initially able to identify only one similar public company using these criteria, based on the more advanced stage of development of the Company additional similar companies with enough historical data that met the industry criterion have now been identified. Accordingly, the Company has based its expected volatility on the historical stock prices of a group peer of companies since September 2013. The risk‑free interest rate is based on the implied yield available on U.S. Treasury issues with an equivalent term approximating the expected life of the options depending on the date of the grant and expected life of the options. During the year ended December 31, 2017, 50,000 options were granted by the Company’s Board of Directors to a consultant. These options vested immediately, have an exercise price of $11.40 per share and are exercisable through 2027. During the year ended December 31, 2016, the Company’s Board of Directors granted 2,596,200 options to its officers, directors and employees. Of these options, 300,000 granted to its directors will vest in equal one‑third installments on each of the first three anniversaries of the grant date, have an exercise price of $4.70 per share and are exercisable through 2026. The remaining 2,296,200 options will vest as follows: one‑third (1/3) will vest on the first anniversary of the grant date, and the remaining two‑thirds (2/3) will vest in twenty‑four approximately equal monthly installments over a period of two years thereafter, except for 300,000 options granted to its directors which will vest in equal one‑third installments over three years starting May 10, 2017. These options have an exercise price of $5.00 per share and are exercisable through 2026. As of December 31, 2017, there were 6,775,200 options outstanding under the 2011 Stock Incentive Plan. A summary of the Company’s stock option activity for the years ended December 31, 2017 and 2016 is presented below. December 31, 2017 December 31, 2016 Number of Options Weighted‑ Average Exercise Price Number of Options Weighted‑ Average Exercise Price Options outstanding, beginning of period 6,955,200 $ 4.10 4,753,335 $ 3.68 Granted or deemed issued 50,000 $ 11.40 2,596,200 $ — Exercised (11,895 ) $ 4.19 (15,866 ) $ 3.60 Cancelled, forfeited and expired (218,105 ) $ 4.98 (378,469 ) $ 3.91 Options outstanding, end of period 6,775,200 $ 4.12 6,955,200 $ 4.10 Options exercisable at end of year 5,604,439 $ 3.95 4,372,667 $ 3.59 Options available for future grant 2,224,800 2,044,800 During the years ended December 31, 2017 and 2016, the Company recognized $5.1 million and $3.3 million, respectively, of share‑based compensation cost arising from stock option grants. As of December 31, 2017, there was $3.6 million of total unrecognized compensation cost related to unvested share‑based compensation arrangements granted under the 2011 Stock Incentive Plan. That cost is expected to be recognized over the weighted average remaining period of 1.3 years. Registration rights —Pursuant to the Subscription Agreements relating to the Private Placement and certain warrants, as well as pursuant to the replacement of certain warrants by the Company on June 10, 2014, the Company agreed to use its commercially reasonable best efforts to have on file with the SEC, by September 11, 2014 and at the Company’s sole expense, a registration statement to permit the public resale of 4,115,966 shares of Company common stock and 3,320,501 shares of common stock underlying warrants (collectively, the “Registrable Securities”). In the event such registration statement includes securities to be offered and sold by the Company in a fully underwritten primary public offering pursuant to an effective registration under the Securities Act of 1933, as amended (the “Securities Act”), and the Company is advised in good faith by any managing underwriter of securities being offered pursuant to such registration statement that the number of Registrable Securities proposed to be sold in such offering is greater than the number of such securities which can be included in such offering without materially adversely affecting such offering, the Company will include in such registration the following securities in the following order of priority: (i) any securities the Company proposes to sell, and (ii) the Registrable Securities, with any reductions in the number of Registrable Securities actually included in such registration to be allocated on a pro rata basis among the holders thereof. The registration rights described above apply until all Registrable Securities have been sold pursuant to Rule 144 under the Securities Act or may be sold without registration in reliance on Rule 144 under the Securities Act without limitation as to volume and without the requirement of any notice filing. If the shares of common stock underlying these warrants to purchase 3,320,501 shares are not registered for resale at the time of exercise, and the registration rights described above then apply with respect to the holder of such warrants, such holder may exercise such warrants on a cashless basis. In such a cashless exercise of all the shares covered by the warrant, the warrant holder would receive a number of shares equal to the quotient of (i) the difference between the fair market value of the common stock, as defined, and the $3.50 exercise price, as adjusted, multiplied by the number of shares exercisable under the warrant, divided by (ii) the fair market value of the common stock, as defined. As of December 31, 2017, based on a fair market value of a share of Company common stock of $11.40 and 3,320,501 warrants issued and outstanding and eligible for cashless exercise, the maximum number of shares the Company would be required to issue, if the warrant holders elected to exercise the cashless exercise feature with respect to all then eligible warrants, is 2,301,049 shares. If the fair market value of a share of Company common stock were to increase by $1.00 from $11.40 to $12.40, the maximum number of shares the Company would be required to issue, if the warrant holders elected to exercise the cashless exercise feature with respect to all then eligible warrants, would increase to 2,383,263 shares as of December 31, 2017. The Company has not yet filed a registration statement with respect to the resale of the Registrable Securities. The Company believes that it has used commercially reasonable efforts to file a registration statement with respect to the resale of Registrable Securities. Korean Private Placement —On September 12, 2016, the Company entered into Letter of Agreement with KPM and Hanil, both Korean‑based public companies whose shares are listed on KOSDAQ, a trading board of Korea Exchange in South Korea. In the Letter of Agreement, the parties agreed that KPM and Hanil would purchase by September 30, 2016 $17 million and $3 million, respectively, of shares of our common stock at a price of $4.50 per share. In exchange, the Company agreed to invest $13 million and $1 million in future capital increases by KPM and Hanil, respectively, at prices based upon the trading prices of KPM and Hanil shares on KOSDAQ. The Letter of Agreement contemplates that KPM and Hanil may purchase additional shares of our common stock in a second transaction to be mutually agreed upon by the parties. In connection with the Letter of Agreement, KPM and Hanil entered into our standard form subscription agreement with respect to their purchase of shares which contains customary representations and warranties of the parties. On September 29, 2016, KPM and Hanil purchased and acquired from the Company 3,777,778 shares and 666,667 shares, respectively, of common stock at a price of $4.50 a share for $17 million and $3 million, respectively, for a gross total of $20 million. The Company recognized $720,000 as a reduction to its additional paid‑in‑capital for fees and commissions payable by the Company in connection with the transaction. Pursuant to the terms of the Letter of Agreement dated September 12, 2016, the Company invested $13 million and $1 million in capital increases by KPM and Hanil, respectively, at $15.32 and $3.68, respectively, per capita share. Pursuant to the terms of a subscription agreement dated as of September 11, 2013 among the Company and certain purchasers of shares of our common stock and warrants to purchase shares of our common stock, the purchasers are entitled to participation rights with respect to the sale of shares pursuant to the Letter of Agreement. To the extent the purchasers exercise their participation rights, we may be obliged to sell to them a specified number of shares of our common stock at the price per share and other terms set forth in the Letter of Agreement. There can be no assurance that any purchaser will exercise its participation rights or that any shares of our common stock will be issued to any purchaser. On August 26, 2016, the Company offered all note holders an opportunity to convert all or a portion of the principal amount of and accrued interest on their notes into shares of Company common stock at a price of $3.50 per share. Pursuant to the offer, 19 note holders elected to convert a total of $4,007,598 of principal and $260,124 of accrued interest on their notes. The conversion price of $3.50 per share was less than the stated conversion price of the convertible notes that were converted, which conversion prices ranged from $4.50 to $7.00 per share. Accordingly, the conversion resulted in the Company recognizing an inducement expense of $1,444,863, which represents the fair value of the incremental increase in the number of shares of Company common stock received by the convertible note holders. The note holders of a total of $622,384 of principal and accrued interest on non‑convertible notes participated in the offer. Under the guidance of ASC 405‑20, the Company de‑recognized the principal and accrued interest on these non‑convertible notes in consideration for issuing Company common stock. As a result of delivering its common stock to the holders of these non‑convertible notes holders, the Company concluded that it has satisfied and is released from its legal obligation for the notes. The fair value of the common stock provided as consideration was $889,120 whereas the face value of the principal and accrued interest was $622,384, resulting in a loss on the debt settlement of $266,736 charged in full against the earning during the year ended December 31, 2016.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 7—INCOME TAXES The provision (benefit) for income taxes consists of the following for the years ended December 31: 2017 2016 Current U.S. $ 2,400 $ 2,400 International 833 1,293 Deferred U.S. (12,306,343 ) — International — — $ (12,303,110 ) $ 3,693 A valuation allowance for the net deferred tax assets has been recorded as it is more likely than not that these benefits will not be realized through future operations. Deferred tax assets consist of the following as of December 31, 2017 and 2016: 2017 2016 Net operating loss carryforward $ 15,086,163 $ 20,881,231 General business tax credit 8,911,700 7,504,146 Stock options 3,583,299 7,633,468 Charitable contribution 38,128 56,617 Accrued expenses 229,105 384,690 Other 29,855 412,630 Total gross deferred tax assets 27,878,250 36,872,782 Less valuation allowance (13,381,045 ) (36,740,418 ) Net deferred tax assets $ 14,497,205 $ 132,364 Deferred tax liabilities consist of the following as of December 31, 2017 and 2016: 2017 2016 Unrealized gain on foreign exchange translation and others $ (32,752 ) $ (83,880 ) Unrealized gain on marketable securities (14,464,453 ) (48,484 ) Total deferred tax liability $ (14,497,205 ) $ (132,364 ) During 2017, the valuation allowance decreased by $23,359,373 and during 2016, the valuation allowance increased by $6,623,676, respectively. As of December 31, 2017 and 2016, the Company had net operating loss carryforwards for federal reporting purposes of approximately $64,622,000 and $52,136,000, which are available to offset future federal taxable income, if any, through 2037. In addition, the Company had net operating loss carryforwards for state income tax purposes of approximately $57,937,000 and $50,457,000 respectively, which expire in various years through 2037. The utilization of our net operating losses could be subject to an annual limitation as a result of certain past and future events, such as acquisition or other significant equity events, which may be deemed as a “change in ownership” under the provisions of the Internal Revenue Code of 1986, as amended, and similar state provisions. The annual limitations could result in the expiration of net operating losses and tax credits before utilization. As of December 31, 2017 and 2016, the Company has general business tax credits of $8,912,000 and $7,504,000, respectively, for federal tax purposes. The tax credits are available to offset future tax liabilities, if any, through 2027. The income tax provision differs from that computed using the statutory federal tax rate of 21%, due to the following: 2017 2016 Tax benefit at statutory federal rate $ (15,496,876 ) $ (7,481,009 ) State taxes, net of federal tax benefit (398,315 ) (695,697 ) Increase in valuation allowance (8,943,404 ) 6,640,524 Permanent items 9,521,184 3,633,702 General business tax credit (1,407,553 ) (993,983 ) Impact from tax rate change (34% to 21%) 10,210,183 — OCI, tax benefit (12,306,343 ) — Other 6,518,014 (1,099,844 ) $ (12,303,110 ) $ 3,693 As of December 31, 2017 and 2016, the Company had no unrecognized tax benefits, and the Company had no position which, in the opinion of management, would be reversed if challenged by a taxing authority. In the event the Company is assessed interest and/or penalties, such amounts will be classified as income tax expense in the financial statements. As of December 31, 2017, all federal tax returns since 2014 and state tax returns since 2013 are still subject to adjustment upon audit. No tax returns are currently being examined by taxing authorities. Tax Reform — On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Act”) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 34% to 21% effective for tax years beginning after December 31, 2017, the transition of U.S international taxation from a worldwide tax system to a territorial system, and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017 to be accounted for in this period of enactment in accordance with its understanding of the Act and guidance available as of the date of this filing.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2017
Commitments And Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 8—COMMITMENTS AND CONTINGENCIES Distribution contract —Cardinal Health Specialty Pharmacy Services has been contracted to distribute NutreStore to other wholesale distributors and some independent pharmacies since April 2008. For these services, the Company pays a monthly commercialization management fee of $4,500. Operating leases —The Company leases its office space under operating leases with unrelated entities. The rent expense during the years ended December 31, 2017 and 2016 amounted to $563,382 and $598,716, respectively. Future minimum lease payments under the agreements are as follows: Year Amount 2018 $ 397,100 2019 687,032 2020 611,012 2021 626,545 2022 646,047 Thereafter 777,344 Total $ 3,745,080

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2017
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 9—RELATED PARTY TRANSACTIONS The following table sets forth information relating to our loans from related persons outstanding as of the date hereof or at any time during the year ended December 31, 2017. Class Lender Interest Rate Date of Loan Term of Loan Principal Amount Outstanding at December 31, 2017 Highest Principal Outstanding Amount of Principal Repaid or Converted into Stock Amount of Interest Paid Conversion Rate Shares Underlying Notes December 31, 2017 Current, Promissory note payable to related parties: Hope Hospice (1) 8% 1/17/2012 Due on Demand $ — $ 200,000 $ 200,000 $ 7,331 — — Hope Hospice (1) 8% 6/14/2012 Due on Demand — 200,000 200,000 14,762 — — Hope Hospice (1) 8% 6/21/2012 Due on Demand — 100,000 100,000 7,249 — — Hope Hospice (1) 8% 2/11/2013 Due on Demand — 50,000 50,000 1,559 — — Hope Hospice (1) 10% 1/7/2015 Due on Demand — 100,000 100,000 28,630 — — IRA Service Trust Co. FBO Peter B. Ludlum (2) 10% 2/20/2015 Due on Demand 10,000 10,000 — — — — Masaharu & Emiko Osato (3) 11% 12/29/2015 Due on Demand 300,000 300,000 — — — — Yutaka Niihara (2)(3) 10% 5/21/2015 Due on Demand — 826,105 94,339 61,829 — — Lan T. Tran (2) 11% 2/10/2016 Due on Demand 130,510 130,510 — — — — Masaharu & Emiko Osato (3) 11% 2/25/2016 Due on Demand 400,000 400,000 — — — — Hope Hospice (1) 10% 4/4/2016 Due on Demand — 50,000 50,000 8,110 — — Lan T. Tran (2) 10% 4/29/2016 Due on Demand 20,000 20,000 — — — — IRA Service Trust Co. FBO Peter B. Ludlum (2) 10% 5/5/2016 Due on Demand 10,000 10,000 — — — — Hope Hospice (1) 10% 6/3/2016 Due on Demand 250,000 250,000 — — — — Lan T. Tran (2) 10% 2/9/2017 Due on Demand 12,000 12,000 — — — — Yutaka Niihara (2)(3) 10% 9/14/2017 Due on Demand 903,751 903,751 — — — — Subtotal $ 2,036,261 $ 3,562,366 $ 794,339 $ 129,470 — Current, Convertible notes payable to related parties: Yasushi Nagasaki (2) 10% 6/29/2012 Due on Demand $ 200,000 $ 388,800 $ 188,800 $ 57,886 $ 3.30 68,122 Charles & Kimxa Stark (2) 10% 10/1/2015 2 years — 20,000 20,000 4,405 $ 4.50 — Yutaka & Soomi Niihara (2)(3) 10% 11/16/2015 2 years 200,000 200,000 — — $ 4.50 53,905 Subtotal $ 400,000 $ 608,800 $ 208,800 $ 62,291 122,027 Total $ 2,436,261 $ 4,171,166 $ 1,003,139 $ 191,761 122,027 The following table sets forth information relating to our loans from related persons outstanding as of the date hereof or at any time during the year ended December 31, 2016. Class Lender Interest rate Date of loan Term of Loan Principal Amount Outstanding at December 31, 2016 Highest Principal Outstanding Amount of Principal Repaid Amount of Interest Paid Conversion Rate Shares Underlying Notes at December 31, 2016 Current, Promissory note payable to related parties: Hope Hospice (1) 8% 1/17/2012 Due on Demand $ 200,000 $ 200,000 $ — $ 20,000 — — Hope Hospice (1) 8% 6/14/2012 Due on Demand 200,000 200,000 — 20,000 — — Hope Hospice (1) 8% 6/21/2012 Due on Demand 100,000 100,000 — 10,000 — — Hope Hospice (1) 8% 2/11/2013 Due on Demand 50,000 50,000 — 5,000 — — Hope Hospice (1) 10% 1/7/2015 Due on Demand 100,000 100,000 — — — — Lan T. Tran (2) 10% 2/9/2015 Due on Demand 10,000 10,000 — — — — IRA Service Trust Co. FBO Peter B. Ludlum (2) 10% 2/20/2015 Due on Demand 10,000 10,000 — — — — Yutaka Niihara (2)(3) 10% 5/21/2015 Due on Demand 94,340 826,105 731,765 47,822 — — Masaharu & Emiko Osato (3) 11% 12/29/2015 Due on Demand 300,000 300,000 — — — — Lan T. Tran (2) 11% 2/10/2016 Due on Demand 130,510 130,510 — — — — Hideki & Eiko Uehara (4) 11% 2/15/2016 Due on Demand — 133,333 133,333 12,226 $ 3.50 — Masaharu & Emiko Osato (3) 11% 2/25/2016 Due on Demand 400,000 400,000 — — — — Hope Hospice (1) 10% 4/4/2016 Due on Demand 50,000 50,000 — - — — Willis C. Lee (2)(3) 10% 4/8/2016 Due on Demand — 79,700 79,700 1,288 — — Lan T. Tran (2) 10% 4/29/2016 Due on Demand 20,000 20,000 — — — — IRA Service Trust Co. FBO Peter B. Ludlum (2) 10% 5/5/2016 Due on Demand 10,000 10,000 — — — — Hope Hospice (1) 10% 6/3/2016 Due on Demand 250,000 250,000 — — — — Subtotal $ 1,924,850 $ 2,869,648 $ 944,798 $ 116,336 — Current, Convertible notes payable to related parties: Yasushi Nagasaki (2) 10% 6/29/2012 Due on Demand $ 254,000 $ 388,800 $ 134,800 $ 27,824 $ 3.30 94,532 Charles & Kimxa Stark (2) 10% 10/1/2015 2 years 20,000 20,000 — — $ 4.50 5,002 Yutaka & Soomi Niihara (2)(3) 10% 11/16/2015 2 years 200,000 200,000 — — $ 4.50 49,461 Subtotal $ 474,000 $ 608,800 $ 134,800 $ 27,824 148,995 Total $ 2,398,850 $ 3,478,448 $ 1,079,598 $ 144,160 148,995 (1) Dr. Niihara, who is the Company’s CEO, is also the CEO of Hope Hospice. (2) Officer (3) Director (4) Family of Officer/Director

GEOGRAPHIC INFORMATION

GEOGRAPHIC INFORMATION	12 Months Ended
	Dec. 31, 2017
Segment Reporting [Abstract]
GEOGRAPHIC INFORMATION	NOTE 10—GEOGRAPHIC INFORMATION For the years ended December 31, 2017 and 2016, the Company earned revenue from countries outside of the United States as outlined in the table below. Country Revenue for the year ended December 31, 2017 % of Total Revenue for the year ended December 31, 2017 Revenue for the year ended December 31, 2016 % of Total Revenue for the year ended December 31, 2016 Japan $ 148,989 28 % $ 160,543 35 % Taiwan 264,928 51 % 220,397 48 % The Company did not have any significant currency translation or foreign transaction adjustments during the years ended December 31, 2017 and 2016.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2017
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 11—SUBSEQUENT EVENTS Subsequent to the year ended December 31, 2017, the Company issued the following: Notes Issued after December 31, 2017 Principal Amounts Annual Interest Rate Term of Notes Conversion Price Convertible notes $ 15,087,200 10% 2 Years $ 10.00 Common Shares Issued after December 31, 2017 Amounts Number of Shares Issued Common shares $ 275,000 25,000 On February 28, 2018, the Company made a full prepayment of the Initial Note in the original principal amount of $13,000,000 that the Company had obtained from GPB pursuant to the Purchase Agreement dated as of December 29, 2017. Capitalized terms not defined herein have the definitions given to them in the Purchase Agreement. Upon such prepayment, the Purchase Agreement and the Company’s obligations under the Transaction Documents entered into pursuant to the Purchase Agreement were terminated, except for the Initial Warrant and a Registration Rights Agreement pursuant to which the Company has agreed to file a registration statement with SEC relating to the shares to be issued under the Initial Warrant. The escrow agent canceled the escrow account, releasing the escrow funds to GPB and releasing the Escrow Note to the Company. The Company paid an aggregate amount of $13,409,348 in prepayment of the Loan, which included a success fee of $260,448. On March 29, 2018, the Company entered into a Securities Repurchase Agreement with Sarissa Capital under which the Company has repurchased from Sarissa Capital 700,000 shares of Company’s common stock and common stock purchase warrants to purchase up to 800,000 shares of Company’s common stock for a cash price of $7.5 million. The Securities Repurchase Agreement contains customary representations and warranties of the parties.

SUMMARY OF SIGNIFICANT ACCOUN19

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation —The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) codified in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”). Certain prior period amounts have been reclassified to conform to the current period presentation.
Going concern	Going concern —The accompanying consolidated financial statements have been prepared on the basis that the Company will continue as a going concern. The Company had net losses of $ 33.4 million and $21.2 million for the years ended December 31, 2017 and 2016, respectively. In addition, the Company has a significant amount of notes payable and other obligations due within the next twelve months and is projecting that its operating losses and expected capital needs, including the expected costs relating to the commercialization of Endari, will exceed its existing cash balances and cash expected to be generated from operations for the foreseeable future. In order to meet the Company’s expected obligations, management intends to raise additional funds through equity and debt financings and partnership agreements. However, there can be no assurance that the Company will be able to complete any additional equity or debt financings or enter into partnership agreements. Therefore, due to the uncertainty of the Company’s ability to meet its current operating and capital expenses, there is substantial doubt about the Company’s ability to continue as a going concern, as the continuation and expansion of its business is dependent upon obtaining further financing, successful and sufficient market acceptance of its products, and achieving a profitable level of operations. The consolidated financial statements do not include any adjustments that might result from the outcome of these uncertainties.
Principles of consolidation	Principles of consolidation —The consolidated financial statements include the accounts of the Company (and its wholly ‑owned subsidiary, Emmaus Medical, and Emmaus Medical’s wholly‑owned subsidiaries, Newfield Nutrition, EM Japan, ELSK and EM Europe). All significant intercompany transactions have been eliminated.
Estimates	Estimates —Financial statements prepared in accordance with GAAP require management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Among other things, management has estimated the useful lives of equipment and other assets, valuation of intangible assets, along with the variables used to calculate the valuation of stock options and warrants using the Black ‑Scholes‑Merton option valuation model. The various warrants issued by the Company in (i) a private placement in September 2013, (ii) in connection with GPB debt transactions in December 2017 and (iii) replacement warrants issued in June 2014 contain non‑standard anti‑dilution protection and, consequently, are being accounted for as liabilities that are remeasured to fair market value at each reporting period (Note 6). In addition, the remaining initial private placement warrants may now utilize a cashless exercise feature since the shares associated with them were not registered by the one‑year anniversary of their issue. These warrants have now been reclassified from liability classified warrants to warrant derivative liabilities and to continue to be remeasured at fair value each reporting period. The initial value as well as the fair value of all such warrants were determined using a Binomial Monte‑Carlo Cliquet (aka Ratchet) Option Pricing Model. The model is similar to traditional Black‑Scholes‑type option pricing models except that the exercise price resets at certain dates in the future. Actual results could differ from those estimates.
Cash and cash equivalents	Cash and cash equivalents —Cash and cash equivalents include short ‑term securities with original maturities of less than ninety days. The Company maintains its cash and cash equivalents at insured financial institutions, the balances of which may, at times, exceed federally insured limits. Management believes that the risk of loss due to the concentrations is minimal.
Restricted Cash	Restricted Cash — Restricted cash includes funds that are held in escrow by the lender and restricted as to withdrawal until certain conditions are met. See Note 6 under “ Purchase Agreement with GPB.” The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on our consolidated statements of cash flows as of December 31, 2017: At December 31, 2017 2016 Cash and cash equivalents $ 15,836,063 $ 1,317,340 Restricted cash 6,720,000 — Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows $ 22,556,063 $ 1,317,340
Inventories	Inventories —Inventories are valued based on first ‑in, first‑out and at the lesser of cost or market value. Work‑in‑process inventories consist of L‑glutamine for the Company’s Endari, AminoPure and NutreStore products that has not yet been packaged and labeled for sale. All of the raw material purchases during the years ended December 31, 2017 and 2016 were from one vendor. The below table presents inventory by category: As of December 31, Inventories by category 2017 2016 Raw materials and components $ — $ — Work-in-process 124,801 34,462 Finished goods 500,498 131,747 Total $ 625,299 $ 166,209
Prepaid expenses and other current assets	Prepaid expenses and other current assets — Prepaid expenses and other current assets consisted of the following at December 31, 2017 and 2016: December 31, 2017 2016 Prepaid insurance $ 132,387 $ 100,060 Other prepaid expenses and current assets 157,984 29,144 $ 290,371 $ 129,204
Deposits	Deposits —Carrying value of amounts transferred to third parties for security purposes that are expected to be returned or applied towards payment after one year or beyond the operating cycle, if longer, are recorded as deposits. Deposit amounts consist of retainer payments for professional services and security deposits for its offices.
Revenue recognition	Revenue recognition —Revenue is recognized when there is persuasive evidence that an arrangement exists, delivery has occurred, the price is fixed and determinable and collection is reasonably assured. With prior written approval of the Company, in certain situations, product is returnable only by its direct customers for a returned goods credit, for product that is expired, damaged in transit, or which is discontinued, withdrawn or recalled. The Company estimates its sales returns based upon its prior sales and return history and accrues a sales return allowance at the time of sale. Historically, sales returns have been immaterial. The Company pays royalties on an annual basis based on existing license arrangements. These royalties are recognized as cost of goods sold upon sale of the products.
Allowance for doubtful accounts	Allowance for doubtful accounts —The Company provides an allowance for uncollectible accounts based upon prior experience and management’s assessment of the collectability of existing specific accounts.
Advertising cost	Advertising cost —Advertising costs are expensed as incurred. Advertising costs for the years ended December 31, 2017 and 2016 were $ 59,045 and $35,622, respectively.
Property and equipment	Property and equipment —Furniture and fixtures are recorded at historical cost and amortized on a straight ‑line basis over their estimated useful lives of 5 to 7 years. Leasehold improvements are recorded at historical cost and amortized on a straight‑line basis over the shorter of their estimated useful lives or the lease terms. Maintenance and repairs are expensed as incurred, while major additions and improvements are capitalized. Gains and losses on disposition are included in current operations.
Intangibles	Intangibles —The Company’s intangible assets include license issue fees, patent costs relating to license agreements and website development costs. These intangible assets are amortized over a period of 3 to 7 years, the estimated legal life of the patents, economic life of the license agreements and website development costs. The intangible assets are assessed by management for potential impairment on an annual basis. No impairment existed as of December 31, 2017 and 2016.
Impairment of long-lived assets	Impairment of long‑lived assets —The Company evaluates the carrying value of its long‑lived assets for impairment whenever events or changes in circumstances indicate that such carrying values may not be recoverable. The Company uses its best judgment based on the current facts and circumstances relating to its business when determining whether any significant impairment factors exist. If the Company determines that the carrying values of long‑lived assets may not be recoverable based upon the existence of one or more indicators of impairment, the Company performs an undiscounted cash flow analysis to determine if impairment exists. If impairment exists, the Company measures the impairment based on the difference between the asset’s carrying amount and its fair value, and the impairment is charged to the consolidated statement of comprehensive loss in the period in which the long‑lived asset impairment is determined to have occurred.
Research and development	Research and development —Research and development consists of expenditures for the research and development of new products and technologies, which primarily involve contract research, payroll ‑related expenses, and other related supplies. Research and development costs are expensed as incurred. Intangible assets acquired for research and development purposes are capitalized if they have alternative future use.
Share-based compensation	Share‑based compensation —The Company recognizes compensation cost for share‑based compensation awards over the service term of the recipients of the share‑based awards. The fair value of share‑based compensation is calculated using the Black‑Scholes‑Merton pricing model. The Black‑Scholes‑Merton model requires subjective assumptions regarding future stock price volatility and expected time to exercise, which greatly affect the calculated values. The expected term of awards granted is calculated using the simplified method allowed under the Securities and Exchange Commission (“SEC”) Staff Accounting Bulletin Nos. 107 and 110. The risk‑free rate selected to value any particular grant is based on the U.S. Treasury rate on the grant date that corresponds to the expected term of the award. The expected volatility is based on the historical volatility of the common stock of comparable publicly traded companies. These factors could change, affecting the determination of stock‑based compensation expense in future periods.
Income taxes	Income taxes —The Company accounts for income taxes under the asset and liability method, wherein deferred tax assets and liabilities are recognized for the future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. 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 on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through the generation of future taxable income for the related jurisdictions. For balance sheet presentation, current deferred tax assets and liabilities within each tax jurisdiction have been offset and presented as a single amount and non‑current deferred tax assets and liabilities within each tax jurisdiction have been offset and presented as a single amount. When tax returns are filed, it is highly probable that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more‑ likely‑than‑not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits along with any associated interest and penalties that would be payable to the taxing authorities upon examination. As of December 31, 2017, the Company had no unrecognized tax benefits, and the Company had no positions which, in the opinion of management, would be reversed if challenged by a taxing authority. In the event the Company is assessed interest and/or penalties, such amounts will be classified as income tax expense in the financial statements. As of December 31, 2017, all federal tax returns since 2014 and state tax returns since 2013 are still subject to adjustment upon audit. No tax returns are currently being examined by taxing authorities.
Comprehensive income (loss)	Comprehensive income (loss) —Comprehensive income (loss) includes net loss and other comprehensive income (loss). The items of other comprehensive income (loss) for the Company are unrealized gains and losses on marketable securities and foreign translation adjustments relating to its subsidiaries. When the Company realizes a gain or loss on marketable securities for which an unrealized gain or loss was previously recognized, a corresponding reclassification adjustment is made to remove the unrealized gain or loss from accumulated other comprehensive income and reflect the realized gain or loss in current operations.
Marketable securities	Marketable securities — The Company’s marketable securities consist of four securities; (a) 39,250 shares of capital stock of CellSeed, Inc. (“CellSeed”) which are part of 147,100 shares acquired in January 2009 for ¥100,028,000 Japanese Yen (JPY) (equivalent to $1.1 million USD), at ¥680 JPY per share; (b) 849,744 shares of capital stock of KPM Tech Co., Ltd. (“KPM”) which were acquired in October 2016 for ₩14,318,186,400 South Korean Won (KRW) (equivalent to $13 million USD) at ₩16,850 KRW per share; (c) 271,950 shares of capital stock of Hanil Vacuum Co., Ltd. (“Hanil”) which were acquired in October 2016 for ₩1,101,397,500 KRW (equivalent to $1 million USD) at ₩4,050 KRW per share; and (d) 6,643,559 shares of capital stock of Telcon, Inc. (“Telcon”) which were acquired in July 2017 for ₩36,001,446,221 KRW (equivalent to $31.8 million USD) at ₩5,419 KRW per share. As of December 31, 2017 and December 31, 2016, the closing price per share for CellSeed on the Tokyo Stock Exchange was ¥462 JPY ($4.10 USD) and ¥536 JPY ($4.58 USD), respectively, the closing price per share for KPM on the Korean Securities Dealers Automated Quotations (“KOSDAQ”) was ₩1,625 KRW ($1.52 USD) after 1-for-5 reverse stock split effective June 28, 2017 and ₩14,600 KRW ($12.08 USD), respectively, the closing price per share for Hanil on KOSDAQ was ₩2,830 KRW ($2.65 USD) and ₩2,895 KRW ($2.40 USD), respectively. As of December 31, 2017, the closing price per share for Telcon on KOSDAQ was ₩14,900 KRW ($13.95 USD). As of December 31, 2017, 39,250 shares of CellSeed stock are pledged to secure a $300,000 convertible note issued to Mitsubishi UFJ Capital III Limited Partnership that is due on demand and are classified as current assets, as marketable securities, pledged to creditor.
Loss on debt settlement	Loss on debt settlement —The Company records loss on debt settlement when the Company’s common stocks are issued in settlement for non-convertible debt and its accrued interest . During the year ended December 31, 2017 and 2016, the Company recorded a loss on debt settlement of $0 and $266,736, respectively.
Foreign Currency Translation	Foreign Currency Translation —The Company’s reporting currency is the U.S. dollar. The Yen, Korean Won, and the Euro are the functional currencies of its subsidiaries, EM Japan, ELSK and EM Europe, respectively, as they are the primary currencies within the economic environments in which EM Japan, ELSK and EM Europe operate. Assets and liabilities of their operations are translated into U.S. dollars at period ‑end exchange rates, and revenues and expenses are translated into U.S. dollars at average exchange rates in effect during each reporting period. Adjustments resulting from the translation are reported in other comprehensive income or loss.
Financial Instruments	Financial Instruments —Financial instruments included in the financial statements are comprised of cash and cash equivalents, restricted cash, short ‑term marketable securities pledged to creditor, long-term investment at cost, accounts receivable, warrant derivative liabilities, accounts payable, certain accrued liabilities, convertible notes, promissory notes and other contingent liabilities. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair values due to the short‑term nature of those instruments.
Other long-term liabilities	Other long-term liabilities —Other long-term liabilities consisted of the following at December 31, 2017 and 2016: At December 31, 2017 2016 Trade discount $ 31,841,500 $ — Unearned revenue 5,000,000 — Other long-term liabilities 10,790 — Total other long-term liabilities $ 36,852,290 $ — The Company entered into an API Supply Agreement (the “API Agreement”) with Telcon pursuant to which Telcon advanced to the Company approximately ₩36.0 billion KRW (approximately $31.8 million USD) in consideration as an advance trade discount to supply 25% of the Company’s requirements for bulk containers of pharmaceutical grade L-glutamine (“PGLG”) for a term of five years with 10 one-year renewal periods for a maximum of 15 years. The agreement will automatically renew unless terminated by either party in writing. The agreement does not include yearly purchase commitments or margin guarantees. The advance trade discount shall be applied against purchases made by the Company from Telcon over the life of the agreement.
Fair value measurements	Fair value measurements —The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company measures fair value under a framework that provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described as follows: Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access. Level 2: Inputs to the valuation methodology include: • Quoted prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in inactive markets; • Inputs other than quoted prices that are observable for the asset or liability; • Inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level 2 inputs must be observable for substantially the full term of the asset or liability. Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value assigned to marketable securities is determined by obtaining quoted prices on nationally recognized securities exchanges, and are classified as Level 1 investments at December 31, 2017 and 2016. The fair value of the Company’s debt instruments is not materially different from their carrying values as presented. The fair value of the Company’s convertible debt instruments was determined based on Level 2 inputs. The carrying value of the debt was discounted based on allocating proceeds to other financial instruments within the arrangement as discussed in Note 5. The Company issued warrants in (i) a private placement in September 2013, (ii) in connection with GPB debt transactions in December 2017 and (iii) replacement warrants issued in June 2014 contain nonstandard anti-dilution protection and, consequently, are being accounted for as liabilities that are remeasured to fair market value at each reporting period (Note 6). Such warrants and replacement warrants contain non‑standard anti‑dilution protection, and consequently, are accounted for as liabilities measured at fair value on a recurring basis, whose fair value is determined using Level 3 inputs. In addition, the remaining initial private placement warrants may now utilize a cashless exercise feature since the shares associated with them were not registered by the one‑year anniversary of their issue. These warrants have now been reclassified from liability classified warrants to warrant derivative liabilities and continue to be remeasured at fair value each reporting period. The Level 3 inputs in the valuation of warrants include expected term and expected volatility. The following tables present the activity for those items measured at fair value on a recurring basis using Level 3 inputs during 2017 and 2016: Year ended December 31, Warrant Derivative Liabilities—Stock Purchase Warrants 2017 2016 Balance, beginning of period $ 10,600,000 $ 7,863,000 Reclassification from liability classified warrants — — Change in fair value included in the statement of comprehensive income (loss) 15,777,000 2,737,000 Balance, end of period $ 26,377,000 $ 10,600,000 The value of warrant derivative liability and the change in fair value of warrant derivative liability were determined using a Binomial Monte‑Carlo Cliquet (aka Ratchet) Option Pricing Model. The model is similar to traditional Black‑Scholes‑type option pricing models except that the exercise price resets at certain dates in the future. The values as of December 31, 2017, December 31, 2016, December 31, 2015, December 31, 2014, December 31, 2013, and the initial value as of September 11, 2013 were calculated based on the following assumptions: December 31, 2017 December 31, 2016 December 31, 2015 December 31, 2014 December 31, 2013 Initial Value Stock price $ 11.40 $ 6.00 $ 4.70 $ 4.90 $ 3.60 $ 3.60 Risk‑free interest rate 1.62 % 1.09 % 1.23 % 1.38 % 1.75 % 1.72 % Expected volatility (peer group) 55.80 % 68.30 % 64.10 % 71.50 % 63.20 % 72.40 % Expected life (in years) 0.70 1.70 2.70 3.70 4.70 5.00 Expected dividend yield — — — — — — Number outstanding 3,320,501 3,320,501 3,320,501 3,320,501 3,320,501 3,320,501 Balance, end of period: Liability classified warrants $ — $ — $ — $ 3,206,000 $ 6,517,000 $ 7,541,000 Warrant derivative liabilities $ 26,377,000 $ 10,600,000 $ 7,863,000 $ 6,520,000 $ — $ — The following table presents warrants issued in conjunction with Purchase Agreement with GPB (see Note 6) measured at fair value as of December 31, 2017: Year ended December 31, 2017 Liability Instrument—GPB Warrants Embedded Conversion Option Balance, beginning of period $ — $ — Fair value at issuance date 1,882,000 1,289,000 Change in fair value included in the statement of comprehensive income (loss) — — Balance, end of period $ 1,882,000 $ 1,289,000 The Company evaluated the warrant and embedded conversion option as well as the embedded put options in the debt agreement and warrant under ASC 815-40 and ASC 815-15-25-1, respectively, and concluded that the warrant and embedded conversion and contingently exercisable put options are required to be separately recognized at fair value as a liability and derivative liability, respectively as of December 31, 2017. Moreover, any changes in the fair value of the warrant liability and the derivative bifurcated option liability shall be recognized in earnings.
Debt and Related Party Debt	Debt and Related Party Debt —The Company accounts for the proceeds from the issuance of convertible notes payable with detachable stock purchase warrants and embedded conversion features in accordance with FASB ASC 470 ‑ 20, Debt with Conversion and Other Options . Under FASB ASC 470‑20, the proceeds from the issuance of a debt instrument with detachable stock purchase warrants shall be allocated to the two elements based on the relative fair values of the debt instrument without the warrants and of the warrants themselves at the time of issuance. The portion of the proceeds allocated to the warrants is accounted for as additional paid‑in capital and the remaining proceeds are allocated to the debt instrument, which results in a discount to debt that is amortized and charged as interest expense over the term of the note agreement. Additionally, pursuant to FASB ASC 470‑20, the intrinsic value of the embedded conversion feature of the convertible notes payable is included in the discount to debt and amortized and charged to interest expense over the term of the note agreement. The following table presents the effective interest rates on the original loan principal amount for loans originated in the respective periods that either had a beneficial conversion interest or an attached warrant: Type of Loan Term of Loan Stated Annual Interest Original Loan Principal Amount Conversion Rate Beneficial Conversion Discount Amount Warrants Issued with Notes Exercise Price Warrant FMV Discount Amount Effective Interest Rate Including Discounts 2016 convertible notes payable Due on demand - 2 years 10% $ 10,866,291 $3.50 - $4.50 $ 3,196,544 $ 75,000 $ 4.70 $ 161,658 14% - 102% 2017 convertible notes payable Due on demand - 3 years 10% - 13.5% 36,113,296 $3.50 - $10.31 11,678,725 240,764 $ 10.80 1,882,000 10% - 110% $ 46,979,587 $ 14,875,269 $ 315,764 $ 2,043,658 Related party notes are disclosed as separate line items in the Company’s balance sheet presentation.
Net loss per share	Net loss per share —In accordance with FASB ASC Topic 260, “Earnings per Share, ” the basic loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding. Dilutive loss per share is computed in a manner similar to the basic loss per common share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. As of December 31, 2017 and 2016, there were 18,228,246 and 15,462,936 shares of potentially dilutive securities outstanding, respectively. As the Company reported a net loss, none of the potentially dilutive securities were included in the calculation of diluted loss per share since their effect would be anti‑dilutive for all periods presented.
Recent accounting pronouncements	Recent accounting pronouncements — In January 2016, the FASB issued ASU No. 2016 ‑01, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). The amendments applicable to the Company in this Update (1) supersede the guidance to classify equity securities, except equity method securities, with readily determinable fair values into trading or available‑for‑sale categories and require equity securities to be measured at fair value with changes in the fair value recognized through net income, (2) allow equity investments that do not have readily determinable fair values to be remeasured at fair value either upon the occurrence of an observable price change or upon identification of an impairment, (3) require assessment for impairment of equity investments without readily determinable fair values qualitatively at each reporting period, (4) eliminate the requirement to disclose the methods and significant assumptions used in calculating the fair value of financial instruments required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (5) require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (6) require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements, (7) clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to marketable securities in combination with the entity’s other deferred tax assets. The amendments in this Update are effective for the Company for fiscal years beginning after December 15, 2017, including interim periods within those years. The amendments should be applied by means of a cumulative‑effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption of the Update. The impact of the adoption of the amendments in this Update will depend on the amount of equity securities and financial instruments subject to the amendments in this Update held by the Company at the time of adoption. In February 2016, the FASB issued ASU No. 2016‑02, Leases In April 2016, the FASB issued ASU 2016‑10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing 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 November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash In January 2017, the FASB issued ASU No. 2017‑01, Business Combinations (Topic 805): Clarifying the Definition of a Business In May 2017, the FASB issued ASU No. 2017-09, Compensation — Stock Compensation (Topic 718): Scope of Modification Accounting 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 February 2018, the FASB issued ASU No. 2018-03, Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities Fair Value Measurement Derivatives and Hedging— Embedded Derivatives Financial Instruments— Overall

SUMMARY OF SIGNIFICANT ACCOUN20

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Summary of reconciliation of cash, cash equivalents, and restricted cash	The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on our consolidated statements of cash flows as of December 31, 2017: At December 31, 2017 2016 Cash and cash equivalents $ 15,836,063 $ 1,317,340 Restricted cash 6,720,000 — Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows $ 22,556,063 $ 1,317,340
Schedule of inventory	The below table presents inventory by category: As of December 31, Inventories by category 2017 2016 Raw materials and components $ — $ — Work-in-process 124,801 34,462 Finished goods 500,498 131,747 Total $ 625,299 $ 166,209
Schedule of prepaid expenses and other current assets	Prepaid expenses and other current assets consisted of the following at December 31, 2017 and 2016: December 31, 2017 2016 Prepaid insurance $ 132,387 $ 100,060 Other prepaid expenses and current assets 157,984 29,144 $ 290,371 $ 129,204
Schedule of other long-term liabilities	Other long-term liabilities consisted of the following at December 31, 2017 and 2016: At December 31, 2017 2016 Trade discount $ 31,841,500 $ — Unearned revenue 5,000,000 — Other long-term liabilities 10,790 — Total other long-term liabilities $ 36,852,290 $ —
Schedule of changes in fair value of liabilities	The following tables present the activity for those items measured at fair value on a recurring basis using Level 3 inputs during 2017 and 2016: Year ended December 31, Warrant Derivative Liabilities—Stock Purchase Warrants 2017 2016 Balance, beginning of period $ 10,600,000 $ 7,863,000 Reclassification from liability classified warrants — — Change in fair value included in the statement of comprehensive income (loss) 15,777,000 2,737,000 Balance, end of period $ 26,377,000 $ 10,600,000
Schedule of assumptions used in the valuation of warrants	The value of warrant derivative liability and the change in fair value of warrant derivative liability were determined using a Binomial Monte‑Carlo Cliquet (aka Ratchet) Option Pricing Model. The model is similar to traditional Black‑Scholes‑type option pricing models except that the exercise price resets at certain dates in the future. The values as of December 31, 2017, December 31, 2016, December 31, 2015, December 31, 2014, December 31, 2013, and the initial value as of September 11, 2013 were calculated based on the following assumptions: December 31, 2017 December 31, 2016 December 31, 2015 December 31, 2014 December 31, 2013 Initial Value Stock price $ 11.40 $ 6.00 $ 4.70 $ 4.90 $ 3.60 $ 3.60 Risk‑free interest rate 1.62 % 1.09 % 1.23 % 1.38 % 1.75 % 1.72 % Expected volatility (peer group) 55.80 % 68.30 % 64.10 % 71.50 % 63.20 % 72.40 % Expected life (in years) 0.70 1.70 2.70 3.70 4.70 5.00 Expected dividend yield — — — — — — Number outstanding 3,320,501 3,320,501 3,320,501 3,320,501 3,320,501 3,320,501 Balance, end of period: Liability classified warrants $ — $ — $ — $ 3,206,000 $ 6,517,000 $ 7,541,000 Warrant derivative liabilities $ 26,377,000 $ 10,600,000 $ 7,863,000 $ 6,520,000 $ — $ —
Schedule of warrants issued in conjunction with Purchase Agreement with GPB	The following table presents warrants issued in conjunction with Purchase Agreement with GPB (see Note 6) measured at fair value as of December 31, 2017: Year ended December 31, 2017 Liability Instrument—GPB Warrants Embedded Conversion Option Balance, beginning of period $ — $ — Fair value at issuance date 1,882,000 1,289,000 Change in fair value included in the statement of comprehensive income (loss) — — Balance, end of period $ 1,882,000 $ 1,289,000
Schedule of notes payable with beneficial conversion feature or warrants	The following table presents the effective interest rates on the original loan principal amount for loans originated in the respective periods that either had a beneficial conversion interest or an attached warrant: Type of Loan Term of Loan Stated Annual Interest Original Loan Principal Amount Conversion Rate Beneficial Conversion Discount Amount Warrants Issued with Notes Exercise Price Warrant FMV Discount Amount Effective Interest Rate Including Discounts 2016 convertible notes payable Due on demand - 2 years 10% $ 10,866,291 $3.50 - $4.50 $ 3,196,544 $ 75,000 $ 4.70 $ 161,658 14% - 102% 2017 convertible notes payable Due on demand - 3 years 10% - 13.5% 36,113,296 $3.50 - $10.31 11,678,725 240,764 $ 10.80 1,882,000 10% - 110% $ 46,979,587 $ 14,875,269 $ 315,764 $ 2,043,658

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2017
Property Plant And Equipment [Abstract]
Schedule of property and equipment	Property and equipment consisted of the following at: 12/31/2017 12/31/2016 Equipment $ 225,615 $ 175,410 Leasehold improvements 61,054 30,804 Furniture and fixtures 74,090 74,760 Sub total 360,759 280,974 Less: accumulated depreciation (255,457 ) (227,244 ) Total $ 105,302 $ 53,730

ACCOUNTS PAYABLE AND ACCRUED 22

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)	12 Months Ended
	Dec. 31, 2017
Payables And Accruals [Abstract]
Schedule of accounts payable and accrued expenses	Accounts payable and accrued expenses consisted of the following at: 12/31/2017 12/31/2016 Accounts payable: Regulatory fees $ 715,999 $ — Clinical and regulatory expenses 116,736 145,239 Commercialization consulting fees 40,000 Legal expenses 87,701 43,700 Consulting fees 143,038 99,800 Accounting fees 67,293 65,267 Selling expenses 35,383 60,724 Investor relations and public relations expenses 55,526 19,931 Other vendors 337,960 41,640 Total accounts payable 1,599,636 476,301 Accrued interest payable, related parties 318,120 274,851 Accrued interest payable 1,449,154 1,441,450 Accrued expenses: Wages and payroll taxes payable 1,711,541 98,566 Deferred salary 291,667 291,667 Paid vacation payable 186,978 196,956 Other accrued expenses 138,214 421,363 Total accrued expenses 2,328,400 1,008,552 Total accounts payable and accrued expenses $ 5,695,310 $ 3,201,154

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	12 Months Ended
	Dec. 31, 2017
Debt Disclosure [Abstract]
Schedule of notes payable	Notes payable consisted of the following at December 31, 2017 and 2016: Year Issued Interest Rate Range Term of Notes Conversion Price Principal Outstanding December 31, 2017 Discount Amount December 31, 2017 Carrying Amount December 31, 2017 Shares Underlying Notes December 31, 2017 Principal Outstanding December 31, 2016 Discount Amount December 31, 2016 Carrying Amount December 31, 2016 Shares Underlying Notes December 31, 2016 Notes payable 2013 10% Due on demand — $ 887,600 $ — $ 887,600 — $ 854,900 $ — $ 854,900 — 2015 10% Due on demand — — — — — 2,406,194 — 2,406,194 — 2016 10 - 11% Due on demand — 833,335 — 833,335 — 833,335 — 833,335 — 2017 5 - 11% Due on demand — 6,150,208 — 6,150,208 — — — — — $ 7,871,143 $ — $ 7,871,143 — $ 4,094,429 $ — $ 4,094,429 — Current $ 7,871,143 $ — $ 7,871,143 — $ 4,094,429 $ — $ 4,094,429 — Long-term $ — $ — $ — — $ — $ — $ — — Notes payable-related party 2012 8% Due on demand — $ — $ — $ — — $ 500,000 $ — $ 500,000 — 2013 8% Due on demand — — — — — 50,000 — 50,000 — 2015 11% Due on demand — 310,000 — 310,000 — 514,340 — 514,340 — 2016 10% - 11% Due on demand — 810,510 — 810,510 — 860,510 — 860,510 — 2017 10% Due on demand — 915,751 — 915,751 — — — — — $ 2,036,261 $ — $ 2,036,261 — $ 1,924,850 $ — $ 1,924,850 — Current $ 2,036,261 $ — $ 2,036,261 — $ 1,924,850 $ — $ 1,924,850 — Long-term $ — $ — $ — — $ — $ — $ — — Year Issued Interest Rate Range Term of Notes Conversion Price Principal Outstanding December 31, 2017 Discount Amount December 31, 2017 Carrying Amount December 31 2017 Shares Underlying Notes December 31, 2017 Principal Outstanding December 31, 2016 Discount Amount December 31, 2016 Carrying Amount December 31 2016 Shares Underlying Notes December 31, 2016 Convertible notes payable 2011 10% 5 years $ 3.05 $ 300,000 $ — $ 300,000 98,285 $ 300,000 $ — $ 300,000 98,285 2014 10% Due on demand - 2 years $3.05 - $3.60 486,878 — 486,878 168,766 452,168 — 452,168 152,986 2015 10% 2 years $ 4.50 — — — — 2,904,800 104,389 2,800,411 889,115 2016 10% Due on demand - 2 years $3.50 - $4.50 1,516,329 83,298 1,433,031 441,048 8,126,129 1,475,744 6,650,385 2,193,687 2017 10% - 13.5% Due on demand - 3 years $3.50 - $10.31 36,113,296 11,232,423 24,880,873 5,357,488 — — — — $ 38,416,503 $ 11,315,721 $ 27,100,782 6,065,587 $ 11,783,097 $ 1,580,133 $ 10,202,964 3,334,073 Current $ 12,860,912 $ 5,835,910 $ 7,025,002 3,449,984 $ 10,499,303 $ 1,294,296 $ 9,205,007 2,984,161 Long-term $ 25,555,591 $ 5,479,811 $ 20,075,780 2,615,603 $ 1,283,794 $ 285,837 $ 997,957 349,912 Convertible notes payable-related party 2012 10% Due on demand $ 3.30 $ 200,000 $ — $ 200,000 68,122 $ 254,000 $ — $ 254,000 94,532 2015 10% 2 years $ 4.50 200,000 — 200,000 53,905 220,000 — 220,000 54,463 $ 400,000 $ — $ 400,000 122,027 $ 474,000 $ — $ 474,000 148,995 Current $ 400,000 $ — $ 400,000 122,027 $ 474,000 $ — $ 474,000 148,995 Long-term $ — $ — $ — — $ — $ — $ — — Grand Total $ 48,723,907 $ 11,315,721 $ 37,408,186 6,187,614 $ 18,276,376 $ 1,580,133 $ 16,696,243 3,483,068
Schedule of contractual principal payments of notes payable	Contractual principal payments due on notes payable are as follows: Year Ending December 31, 2017 2018 $ 23,168,316 2019 5,555,591 2020 20,000,000 Total $ 48,723,907
Schedule of fair value assumptions for warrants issued in conjunction with notes	The fair value of the warrants issued in conjunction with notes was determined using the Black‑Scholes‑Merton option pricing model with the following inputs for the years ended: 2017 2016 Stock price $ 11.40 $ 5.00 Exercise price $ 10.80 $4.50 ‑ 4.70 Term 5 years 5 years Risk‑free interest rate 2.20% 1.01 ‑ 1.28% Expected dividend yield — — Expected volatility 70.0% 65.4 ‑ 69.6%

STOCKHOLDERS' DEFICIT (Tables)

STOCKHOLDERS' DEFICIT (Tables)	12 Months Ended
	Dec. 31, 2017
Stockholders Equity Note [Abstract]
Schedule of outstanding warrants	A summary of outstanding warrants as of December 31, 2017 and 2016 is presented below. Year ended Year ended December 31, 2017 December 31, 2016 Warrants outstanding, beginning of period 5,024,668 3,530,918 Granted 240,764 1,493,750 Exercised — — Cancelled, forfeited and expired — — Warrants outstanding, end of period 5,265,432 5,024,668 A summary of outstanding warrants by year issued and exercise price as of December 31, 2017 is presented below. Outstanding Exercisable Year issued and Exercise Price Number of Warrants Issued Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Total Weighted Average Exercise Price At December 31, 2013 $ 3.30 50,000 0.33 $ 3.30 50,000 $ 3.30 $ 3.50 2,225,036 0.70 $ 3.50 2,225,036 $ 3.50 2013 total 2,275,036 2,275,036 At December 31, 2014 $ 3.50 1,145,465 0.72 $ 3.50 1,145,465 $ 3.50 2014 Total 1,145,465 1,145,465 At December 31, 2015 $ 4.90 110,417 2.18 $ 4.90 110,417 $ 4.90 2015 Total 110,417 110,417 At December 31, 2016 $ 4.50 118,750 3.50 $ 4.50 118,750 $ 4.50 $ 4.70 75,000 3.33 $ 4.70 75,000 $ 4.70 $ 5.00 1,300,000 3.36 $ 5.00 1,300,000 $ 5.00 2016 Total 1,493,750 1,493,750 At December 31, 2017 $ 10.80 240,764 5.50 $ 10.80 240,764 $ 10.80 Grand Total 5,265,432 5,265,432
Schedule of valuation assumptions	Management has valued stock options at their date of grant utilizing the Black‑Scholes‑Merton Option pricing model. The fair value of the underlying shares was determined by the market value of stock of similar companies and recent arm’s length transactions involving the sale of the Company’s common stock. The expected volatility was calculated using the historical volatility of a similar public entity in the industry through August 2013 and a group of similar public entities thereafter. The following table presents the assumptions used on recent dates on which options were granted by the Board of Directors. 12/31/2017 5/10/2016 1/14/2016 Stock Price $ 11.40 $ 5.00 $ 4.70 Exercise Price $ 11.40 $ 5.00 $ 4.70 Term 10 years 10 years 10 years Risk-Free Rate 2.27 % 1.36 % 1.70 % Dividend Yield — — — Volatility 68.18 % 65.55 % 64.14 %
Schedule of option activity	A summary of the Company’s stock option activity for the years ended December 31, 2017 and 2016 is presented below. December 31, 2017 December 31, 2016 Number of Options Weighted‑ Average Exercise Price Number of Options Weighted‑ Average Exercise Price Options outstanding, beginning of period 6,955,200 $ 4.10 4,753,335 $ 3.68 Granted or deemed issued 50,000 $ 11.40 2,596,200 $ — Exercised (11,895 ) $ 4.19 (15,866 ) $ 3.60 Cancelled, forfeited and expired (218,105 ) $ 4.98 (378,469 ) $ 3.91 Options outstanding, end of period 6,775,200 $ 4.12 6,955,200 $ 4.10 Options exercisable at end of year 5,604,439 $ 3.95 4,372,667 $ 3.59 Options available for future grant 2,224,800 2,044,800

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Schedule of provision (benefit) for income taxes	The provision (benefit) for income taxes consists of the following for the years ended December 31: 2017 2016 Current U.S. $ 2,400 $ 2,400 International 833 1,293 Deferred U.S. (12,306,343 ) — International — — $ (12,303,110 ) $ 3,693
Schedule of deferred tax assets and liabilities	Deferred tax assets consist of the following as of December 31, 2017 and 2016: 2017 2016 Net operating loss carryforward $ 15,086,163 $ 20,881,231 General business tax credit 8,911,700 7,504,146 Stock options 3,583,299 7,633,468 Charitable contribution 38,128 56,617 Accrued expenses 229,105 384,690 Other 29,855 412,630 Total gross deferred tax assets 27,878,250 36,872,782 Less valuation allowance (13,381,045 ) (36,740,418 ) Net deferred tax assets $ 14,497,205 $ 132,364 Deferred tax liabilities consist of the following as of December 31, 2017 and 2016: 2017 2016 Unrealized gain on foreign exchange translation and others $ (32,752 ) $ (83,880 ) Unrealized gain on marketable securities (14,464,453 ) (48,484 ) Total deferred tax liability $ (14,497,205 ) $ (132,364 )
Schedule of income tax provision computed using the statutory federal tax rate	The income tax provision differs from that computed using the statutory federal tax rate of 21%, due to the following: 2017 2016 Tax benefit at statutory federal rate $ (15,496,876 ) $ (7,481,009 ) State taxes, net of federal tax benefit (398,315 ) (695,697 ) Increase in valuation allowance (8,943,404 ) 6,640,524 Permanent items 9,521,184 3,633,702 General business tax credit (1,407,553 ) (993,983 ) Impact from tax rate change (34% to 21%) 10,210,183 — OCI, tax benefit (12,306,343 ) — Other 6,518,014 (1,099,844 ) $ (12,303,110 ) $ 3,693

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2017
Commitments And Contingencies Disclosure [Abstract]
Schedule of future minimum lease payments	Future minimum lease payments under the agreements are as follows: Year Amount 2018 $ 397,100 2019 687,032 2020 611,012 2021 626,545 2022 646,047 Thereafter 777,344 Total $ 3,745,080

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	12 Months Ended
	Dec. 31, 2017
Related Party Transactions [Abstract]
Schedule of outstanding loans from related parties	The following table sets forth information relating to our loans from related persons outstanding as of the date hereof or at any time during the year ended December 31, 2017. Class Lender Interest Rate Date of Loan Term of Loan Principal Amount Outstanding at December 31, 2017 Highest Principal Outstanding Amount of Principal Repaid or Converted into Stock Amount of Interest Paid Conversion Rate Shares Underlying Notes December 31, 2017 Current, Promissory note payable to related parties: Hope Hospice (1) 8% 1/17/2012 Due on Demand $ — $ 200,000 $ 200,000 $ 7,331 — — Hope Hospice (1) 8% 6/14/2012 Due on Demand — 200,000 200,000 14,762 — — Hope Hospice (1) 8% 6/21/2012 Due on Demand — 100,000 100,000 7,249 — — Hope Hospice (1) 8% 2/11/2013 Due on Demand — 50,000 50,000 1,559 — — Hope Hospice (1) 10% 1/7/2015 Due on Demand — 100,000 100,000 28,630 — — IRA Service Trust Co. FBO Peter B. Ludlum (2) 10% 2/20/2015 Due on Demand 10,000 10,000 — — — — Masaharu & Emiko Osato (3) 11% 12/29/2015 Due on Demand 300,000 300,000 — — — — Yutaka Niihara (2)(3) 10% 5/21/2015 Due on Demand — 826,105 94,339 61,829 — — Lan T. Tran (2) 11% 2/10/2016 Due on Demand 130,510 130,510 — — — — Masaharu & Emiko Osato (3) 11% 2/25/2016 Due on Demand 400,000 400,000 — — — — Hope Hospice (1) 10% 4/4/2016 Due on Demand — 50,000 50,000 8,110 — — Lan T. Tran (2) 10% 4/29/2016 Due on Demand 20,000 20,000 — — — — IRA Service Trust Co. FBO Peter B. Ludlum (2) 10% 5/5/2016 Due on Demand 10,000 10,000 — — — — Hope Hospice (1) 10% 6/3/2016 Due on Demand 250,000 250,000 — — — — Lan T. Tran (2) 10% 2/9/2017 Due on Demand 12,000 12,000 — — — — Yutaka Niihara (2)(3) 10% 9/14/2017 Due on Demand 903,751 903,751 — — — — Subtotal $ 2,036,261 $ 3,562,366 $ 794,339 $ 129,470 — Current, Convertible notes payable to related parties: Yasushi Nagasaki (2) 10% 6/29/2012 Due on Demand $ 200,000 $ 388,800 $ 188,800 $ 57,886 $ 3.30 68,122 Charles & Kimxa Stark (2) 10% 10/1/2015 2 years — 20,000 20,000 4,405 $ 4.50 — Yutaka & Soomi Niihara (2)(3) 10% 11/16/2015 2 years 200,000 200,000 — — $ 4.50 53,905 Subtotal $ 400,000 $ 608,800 $ 208,800 $ 62,291 122,027 Total $ 2,436,261 $ 4,171,166 $ 1,003,139 $ 191,761 122,027 The following table sets forth information relating to our loans from related persons outstanding as of the date hereof or at any time during the year ended December 31, 2016. Class Lender Interest rate Date of loan Term of Loan Principal Amount Outstanding at December 31, 2016 Highest Principal Outstanding Amount of Principal Repaid Amount of Interest Paid Conversion Rate Shares Underlying Notes at December 31, 2016 Current, Promissory note payable to related parties: Hope Hospice (1) 8% 1/17/2012 Due on Demand $ 200,000 $ 200,000 $ — $ 20,000 — — Hope Hospice (1) 8% 6/14/2012 Due on Demand 200,000 200,000 — 20,000 — — Hope Hospice (1) 8% 6/21/2012 Due on Demand 100,000 100,000 — 10,000 — — Hope Hospice (1) 8% 2/11/2013 Due on Demand 50,000 50,000 — 5,000 — — Hope Hospice (1) 10% 1/7/2015 Due on Demand 100,000 100,000 — — — — Lan T. Tran (2) 10% 2/9/2015 Due on Demand 10,000 10,000 — — — — IRA Service Trust Co. FBO Peter B. Ludlum (2) 10% 2/20/2015 Due on Demand 10,000 10,000 — — — — Yutaka Niihara (2)(3) 10% 5/21/2015 Due on Demand 94,340 826,105 731,765 47,822 — — Masaharu & Emiko Osato (3) 11% 12/29/2015 Due on Demand 300,000 300,000 — — — — Lan T. Tran (2) 11% 2/10/2016 Due on Demand 130,510 130,510 — — — — Hideki & Eiko Uehara (4) 11% 2/15/2016 Due on Demand — 133,333 133,333 12,226 $ 3.50 — Masaharu & Emiko Osato (3) 11% 2/25/2016 Due on Demand 400,000 400,000 — — — — Hope Hospice (1) 10% 4/4/2016 Due on Demand 50,000 50,000 — - — — Willis C. Lee (2)(3) 10% 4/8/2016 Due on Demand — 79,700 79,700 1,288 — — Lan T. Tran (2) 10% 4/29/2016 Due on Demand 20,000 20,000 — — — — IRA Service Trust Co. FBO Peter B. Ludlum (2) 10% 5/5/2016 Due on Demand 10,000 10,000 — — — — Hope Hospice (1) 10% 6/3/2016 Due on Demand 250,000 250,000 — — — — Subtotal $ 1,924,850 $ 2,869,648 $ 944,798 $ 116,336 — Current, Convertible notes payable to related parties: Yasushi Nagasaki (2) 10% 6/29/2012 Due on Demand $ 254,000 $ 388,800 $ 134,800 $ 27,824 $ 3.30 94,532 Charles & Kimxa Stark (2) 10% 10/1/2015 2 years 20,000 20,000 — — $ 4.50 5,002 Yutaka & Soomi Niihara (2)(3) 10% 11/16/2015 2 years 200,000 200,000 — — $ 4.50 49,461 Subtotal $ 474,000 $ 608,800 $ 134,800 $ 27,824 148,995 Total $ 2,398,850 $ 3,478,448 $ 1,079,598 $ 144,160 148,995 (1) Dr. Niihara, who is the Company’s CEO, is also the CEO of Hope Hospice. (2) Officer (3) Director (4) Family of Officer/Director

GEOGRAPHIC INFORMATION (Tables)

GEOGRAPHIC INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2017
Segment Reporting [Abstract]
Schedule of revenue earned from countries outside of the United States	For the years ended December 31, 2017 and 2016, the Company earned revenue from countries outside of the United States as outlined in the table below. Country Revenue for the year ended December 31, 2017 % of Total Revenue for the year ended December 31, 2017 Revenue for the year ended December 31, 2016 % of Total Revenue for the year ended December 31, 2016 Japan $ 148,989 28 % $ 160,543 35 % Taiwan 264,928 51 % 220,397 48 %

SUBSEQUENT EVENTS (Tables)

SUBSEQUENT EVENTS (Tables)	12 Months Ended
	Dec. 31, 2017
Subsequent Events [Abstract]
Schedule of subsequent events	Subsequent to the year ended December 31, 2017, the Company issued the following: Notes Issued after December 31, 2017 Principal Amounts Annual Interest Rate Term of Notes Conversion Price Convertible notes $ 15,087,200 10% 2 Years $ 10.00 Common Shares Issued after December 31, 2017 Amounts Number of Shares Issued Common shares $ 275,000 25,000

DESCRIPTION OF BUSINESS (Detail

DESCRIPTION OF BUSINESS (Details Narrative)	3 Months Ended
	Mar. 31, 2018SalesRepresentative	Dec. 31, 2017	Mar. 31, 2011	Oct. 31, 2010USD ($)
Minimum [Member] | Subsequent Event [Member]
Business Acquisition [Line Items]
Number of sales representatives	15
Maximum [Member] | Subsequent Event [Member]
Business Acquisition [Line Items]
Number of sales representatives	30
CellSeed, Inc. [Member]
Business Acquisition [Line Items]
Maximum minority interest owned, percentage		1.00%
Emmaus Medical Japan, Inc [Member]
Business Acquisition [Line Items]
Percentage of acquired interest			3.00%	97.00%
Aggregate formation cost | $				$ 52,500
Business acquisition, current ownership percentage		100.00%

SUMMARY OF SIGNIFICANT ACCOUN31

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)

Jun. 12, 2017USD ($)Number

Jun. 12, 2017KRW (₩)Number

Jul. 31, 2017USD ($)

Jul. 31, 2017KRW (₩)₩ / shares

Oct. 31, 2016USD ($)

Oct. 31, 2016KRW (₩)₩ / shares

Jan. 31, 2009USD ($)shares

Jan. 31, 2009JPY (¥)¥ / sharesshares

Dec. 31, 2017USD ($)VendorSecurity$ / sharesshares

Dec. 31, 2016USD ($)Vendor$ / sharesshares

Dec. 31, 2017¥ / shares

Dec. 31, 2017₩ / shares

Dec. 31, 2016¥ / shares

Dec. 31, 2016₩ / shares

Summary of Significant Accounting Policy [Line Items]

Net loss | $

$ (33,371,082)

$ (21,178,847)

Number of vendor | Vendor

1

1

Advertising costs | $

$ 59,045

$ 35,622

Impairment of intangible assets | $

0

0

Unrecognized tax benefits | $

$ 0

Number of Marketable Securities | Security

4

Loss on debt settlement | $

$ 0

$ (266,736)

Potentially dilutive securities outstanding | shares

18,228,246

15,462,936

Telcon, Inc. ("Telcon") [Member] | API Supply Agreement [Member]

Summary of Significant Accounting Policy [Line Items]

Proceeds from supply agreement | $

$ 31,800,000

Telcon, Inc. ("Telcon") [Member] | API Supply Agreement [Member] | Korea (South), Won

Summary of Significant Accounting Policy [Line Items]

Proceeds from supply agreement | ₩

₩ 36,000,000,000

Telcon, Inc. ("Telcon") [Member] | API Supply Agreement [Member] | Pharmaceutical Grade L-glutamine [Member]

Summary of Significant Accounting Policy [Line Items]

Percentage of right to supply

25.00%

25.00%

Agreement term

5 years

5 years

Number of renewals | Number

10

10

2011 Convertible notes payable [Member]

Summary of Significant Accounting Policy [Line Items]

Convertible notes payable, carrying amount | $

$ 300,000

CellSeed, Inc. [Member]

Summary of Significant Accounting Policy [Line Items]

Shares held as marketable securities | shares

39,250

Shares originally purchased (in shares) | shares

147,100

147,100

Investment

$ 1,100,000

¥ 100,028,000

Investment, in per share | ¥ / shares

¥ 680

Investment, closing price | (per share)

$ 4.10

$ 4.58

¥ 462

¥ 536

Stock pledged against note | shares

39,250

KPM Tech [Member]

Summary of Significant Accounting Policy [Line Items]

Shares held as marketable securities | shares

849,744

Investment

$ 13,000,000

₩ 14,318,186,400

Investment, in per share | ₩ / shares

₩ 16,850

Investment, closing price | (per share)

$ 1.52

12.08

₩ 1,625

₩ 14,600

Reverse stock split description

1-for-5 reverse stock split

Reverse stock split ratio

0.20

Hanil Vacuum [Member]

Summary of Significant Accounting Policy [Line Items]

Shares held as marketable securities | shares

271,950

Investment

$ 1,000,000

₩ 1,101,397,500

Investment, in per share | ₩ / shares

₩ 4,050

Investment, closing price | (per share)

$ 2.65

$ 2.40

2,830

₩ 2,895

Telcon, Inc. ("Telcon") [Member]

Summary of Significant Accounting Policy [Line Items]

Shares held as marketable securities | shares

6,643,559

Investment

$ 31,800,000

₩ 36,001,446,221

Investment, in per share | ₩ / shares

₩ 5,419

Investment, closing price | (per share)

$ 13.95

₩ 14,900

Minimum [Member]

Summary of Significant Accounting Policy [Line Items]

Intangible assets, useful life

3 years

Minimum [Member] | Furniture and Fixtures [Member]

Summary of Significant Accounting Policy [Line Items]

Useful life

5 years

Maximum [Member]

Summary of Significant Accounting Policy [Line Items]

Intangible assets, useful life

7 years

Maximum [Member] | Telcon, Inc. ("Telcon") [Member] | API Supply Agreement [Member] | Pharmaceutical Grade L-glutamine [Member]

Summary of Significant Accounting Policy [Line Items]

Agreement term

15 years

15 years

Maximum [Member] | Furniture and Fixtures [Member]

Summary of Significant Accounting Policy [Line Items]

Useful life

7 years

SUMMARY OF SIGNIFICANT ACCOUN32

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Accounting Policies [Abstract]
Cash and cash equivalents	$ 15,836,063	$ 1,317,340
Restricted cash	6,720,000
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows	$ 22,556,063	$ 1,317,340	$ 472,341

SUMMARY OF SIGNIFICANT ACCOUN33

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Inventories by category
Work-in-process	$ 124,801	$ 34,462
Finished goods	500,498	131,747
Total	$ 625,299	$ 166,209

SUMMARY OF SIGNIFICANT ACCOUN34

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Prepaid insurance	$ 132,387	$ 100,060
Other prepaid expenses and current assets	157,984	29,144
Prepaid expenses and other current assets	$ 290,371	$ 129,204

SUMMARY OF SIGNIFICANT ACCOUN35

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3)	Dec. 31, 2017USD ($)
Summary of Significant Accounting Policy [Line Items]
Other long-term liabilities	$ 36,852,290
Other Long-Term Liabilities [Member]
Summary of Significant Accounting Policy [Line Items]
Other long-term liabilities	10,790
Unearned Revenue [Member]
Summary of Significant Accounting Policy [Line Items]
Other long-term liabilities	5,000,000
Trade Discount [Member]
Summary of Significant Accounting Policy [Line Items]
Other long-term liabilities	$ 31,841,500

SUMMARY OF SIGNIFICANT ACCOUN36

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Warrant Derivative Liabilities - Stock Purchase Warrants [Member] | Level 3 [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	$ 10,600,000	$ 7,863,000
Change in fair value included in the statement of comprehensive income (loss)	15,777,000	2,737,000
Balance, end of period	26,377,000	$ 10,600,000
Liability Instrument - Warrants [Member] | GPB Debt Holdings II, LLC [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value at issuance date	1,882,000
Balance, end of period	1,882,000
Liability Instrument - Embedded Conversion Option [Member] | GPB Debt Holdings II, LLC [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value at issuance date	1,289,000
Balance, end of period	$ 1,289,000

SUMMARY OF SIGNIFICANT ACCOUN37

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 5) - USD ($)	Sep. 11, 2013	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	May 10, 2016	Jan. 14, 2016
Summary of Significant Accounting Policy [Line Items]
Stock price		$ 11.40					$ 5	$ 4.70
Warrants [Member]
Summary of Significant Accounting Policy [Line Items]
Stock price	$ 3.60	$ 11.40	$ 6	$ 4.70	$ 4.90	$ 3.60
Risk‑free interest rate	1.72%	1.62%	1.09%	1.23%	1.38%	1.75%
Expected volatility (peer group)	72.40%	55.80%	68.30%	64.10%	71.50%	63.20%
Expected life (in years)	5 years	8 months 12 days	1 year 8 months 12 days	2 years 8 months 12 days	3 years 8 months 12 days	4 years 8 months 12 days
Number outstanding	3,320,501	3,320,501	3,320,501	3,320,501	3,320,501	3,320,501
Balance, end of period:
Liability classified warrants	$ 7,541,000				$ 3,206,000	$ 6,517,000
Warrant derivative liabilities		$ 26,377,000	$ 10,600,000	$ 7,863,000	$ 6,520,000

SUMMARY OF SIGNIFICANT ACCOUN38

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 6)	12 Months Ended
	Dec. 31, 2017USD ($)$ / shares$ / Warrantshares
Summary of Significant Accounting Policy [Line Items]
Original Loan Principal Amount	$ 46,979,587
Beneficial Conversion Discount Amount	$ 14,875,269
Warrants Issued with Notes (in shares) | shares	315,764
Warrant FMV Discount Amount	$ 2,043,658
Minimum [Member]
Summary of Significant Accounting Policy [Line Items]
Conversion Rate (in dollars per share) | $ / shares	$ 3.05
Maximum [Member]
Summary of Significant Accounting Policy [Line Items]
Conversion Rate (in dollars per share) | $ / shares	$ 10.31
2016 Convertible Notes Payable [Member]
Summary of Significant Accounting Policy [Line Items]
Stated Annual Interest	10.00%
Original Loan Principal Amount	$ 10,866,291
Beneficial Conversion Discount Amount	$ 3,196,544
Warrants Issued with Notes (in shares) | shares	75,000
Exercise Price (in dollars per share) | $ / Warrant	4.70
Warrant FMV Discount Amount	$ 161,658
2016 Convertible Notes Payable [Member] | Minimum [Member]
Summary of Significant Accounting Policy [Line Items]
Term of Loan	Due on demand
Conversion Rate (in dollars per share) | $ / shares	$ 3.50
Effective Interest Rate Including Discounts	14.00%
2016 Convertible Notes Payable [Member] | Maximum [Member]
Summary of Significant Accounting Policy [Line Items]
Term of Loans	2 years
Conversion Rate (in dollars per share) | $ / shares	$ 4.50
Effective Interest Rate Including Discounts	102.00%
2017 Convertible Notes Payable [Member]
Summary of Significant Accounting Policy [Line Items]
Original Loan Principal Amount	$ 36,113,296
Beneficial Conversion Discount Amount	$ 11,678,725
Warrants Issued with Notes (in shares) | shares	240,764
Exercise Price (in dollars per share) | $ / Warrant	10.80
Warrant FMV Discount Amount	$ 1,882,000
2017 Convertible Notes Payable [Member] | Minimum [Member]
Summary of Significant Accounting Policy [Line Items]
Term of Loan	Due on demand
Stated Annual Interest	10.00%
Conversion Rate (in dollars per share) | $ / shares	$ 3.50
Effective Interest Rate Including Discounts	10.00%
2017 Convertible Notes Payable [Member] | Maximum [Member]
Summary of Significant Accounting Policy [Line Items]
Term of Loans	3 years
Stated Annual Interest	13.50%
Conversion Rate (in dollars per share) | $ / shares	$ 10.31
Effective Interest Rate Including Discounts	110.00%

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Property and equipment
Property and equipment, gross	$ 360,759	$ 280,974
Less: accumulated depreciation	(255,457)	(227,244)
Property and equipment, net	105,302	53,730
Equipment [Member]
Property and equipment
Property and equipment, gross	225,615	175,410
Leasehold Improvements [Member]
Property and equipment
Property and equipment, gross	61,054	30,804
Furniture and Fixtures [Member]
Property and equipment
Property and equipment, gross	$ 74,090	$ 74,760

PROPERTY AND EQUIPMENT (Detai40

PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Property Plant And Equipment [Abstract]
Depreciation expense	$ 32,379	$ 15,279

ACCOUNTS PAYABLE AND ACCRUED 41

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Accounts payable:
Regulatory fees	$ 715,999
Clinical and regulatory expenses	116,736	$ 145,239
Commercialization consulting fees	40,000
Legal expenses	87,701	43,700
Consulting fees	143,038	99,800
Accounting fees	67,293	65,267
Selling expenses	35,383	60,724
Investor relations and public relations expenses	55,526	19,931
Other vendors	337,960	41,640
Total accounts payable	1,599,636	476,301
Accrued interest payable, related parties	318,120	274,851
Accrued interest payable	1,449,154	1,441,450
Accrued expenses:
Wages and payroll taxes payable	1,711,541	98,566
Deferred salary	291,667	291,667
Paid vacation payable	186,978	196,956
Other accrued expenses	138,214	421,363
Total accrued expenses	2,328,400	1,008,552
Total accounts payable and accrued expenses	$ 5,695,310	$ 3,201,154

NOTES PAYABLE (Details)

NOTES PAYABLE (Details)	12 Months Ended
	Dec. 31, 2017USD ($)Number$ / shares	Dec. 31, 2016USD ($)Number
Principal Outstanding	$ 48,723,907	$ 18,276,376
Discount Amount	11,315,721	1,580,133
Carrying Amount	$ 37,408,186	$ 16,696,243
Shares Underlying Principal | Number	6,187,614	3,483,068
Notes payable, current	$ 7,871,143	$ 4,094,429
Minimum [Member]
Conversion Price | $ / shares	$ 3.05
Maximum [Member]
Conversion Price | $ / shares	$ 10.31
2013 Notes payable [Member]
Interest rate	10.00%
Term of Notes	Due on demand
Principal Outstanding	$ 887,600	854,900
Carrying Amount	$ 887,600	854,900
2015 Notes payable [Member]
Interest rate	10.00%
Term of Notes	Due on demand
Principal Outstanding		2,406,194
Carrying Amount		2,406,194
2016 Notes payable [Member]
Term of Notes	Due on demand
Principal Outstanding	$ 833,335	833,335
Carrying Amount	$ 833,335	833,335
2016 Notes payable [Member] | Minimum [Member]
Interest rate	10.00%
2016 Notes payable [Member] | Maximum [Member]
Interest rate	11.00%
2017 Notes payable [Member]
Term of Notes	Due on demand
Principal Outstanding	$ 6,150,208
Carrying Amount	$ 6,150,208
2017 Notes payable [Member] | Minimum [Member]
Interest rate	5.00%
2017 Notes payable [Member] | Maximum [Member]
Interest rate	11.00%
Notes Payable [Member]
Principal Outstanding	$ 7,871,143	4,094,429
Carrying Amount	7,871,143	4,094,429
Principal Outstanding, Current	7,871,143	4,094,429
Notes payable, current	$ 7,871,143	4,094,429
2012 Notes payable - related party [Member]
Interest rate	8.00%
Term of Notes	Due on demand
Principal Outstanding		500,000
Carrying Amount		500,000
2013 Notes payable - related party [Member]
Interest rate	8.00%
Term of Notes	Due on demand
Principal Outstanding		50,000
Carrying Amount		50,000
2015 Notes payable - related party [Member]
Interest rate	11.00%
Term of Notes	Due on demand
Principal Outstanding	$ 310,000	514,340
Carrying Amount	$ 310,000	514,340
2016 Notes payable - related party [Member]
Term of Notes	Due on demand
Principal Outstanding	$ 810,510	860,510
Carrying Amount	$ 810,510	860,510
2016 Notes payable - related party [Member] | Minimum [Member]
Interest rate	10.00%
2016 Notes payable - related party [Member] | Maximum [Member]
Interest rate	11.00%
2017 Notes payable - related party [Member]
Interest rate	10.00%
Term of Notes	Due on demand
Principal Outstanding	$ 915,751
Carrying Amount	915,751
Notes payable - related party [Member]
Principal Outstanding	2,036,261	1,924,850
Carrying Amount	2,036,261	1,924,850
Principal Outstanding, Current	2,036,261	1,924,850
Notes payable, current	$ 2,036,261	$ 1,924,850

NOTES PAYABLE (Details 1)

NOTES PAYABLE (Details 1)	12 Months Ended
	Dec. 31, 2017USD ($)Number$ / shares	Dec. 31, 2016USD ($)Number	Aug. 26, 2016$ / shares
Principal Outstanding	$ 48,723,907	$ 18,276,376
Discount Amount	11,315,721	1,580,133
Carrying Amount	$ 37,408,186	$ 16,696,243
Shares Underlying Principal | Number	6,187,614	3,483,068
Convertible notes payable, Current	$ 7,025,002	$ 9,205,007
Convertible notes payable, Non Current	$ 20,075,780	997,957
Minimum [Member]
Conversion Price | $ / shares	$ 3.05
Maximum [Member]
Conversion Price | $ / shares	$ 10.31
2011 Convertible notes payable [Member]
Interest rate	10.00%
Term of Notes	5 years
Conversion Price | $ / shares	$ 3.05
Principal Outstanding	$ 300,000	300,000
Carrying Amount	$ 300,000	$ 300,000
Shares Underlying Principal | Number	98,285	98,285
2014 Convertible notes payable [Member]
Interest rate	10.00%
Principal Outstanding	$ 486,878	$ 452,168
Carrying Amount	$ 486,878	$ 452,168
Shares Underlying Principal | Number	168,766	152,986
2014 Convertible notes payable [Member] | Minimum [Member]
Term of Notes	Due on demand
Conversion Price | $ / shares	$ 3.05
2014 Convertible notes payable [Member] | Maximum [Member]
Term of Notes	2 years
Conversion Price | $ / shares	$ 3.60
2015 Convertible notes payable [Member]
Interest rate	10.00%
Term of Notes	2 years
Conversion Price | $ / shares	$ 4.50
Principal Outstanding		$ 2,904,800
Discount Amount		104,389
Carrying Amount		$ 2,800,411
Shares Underlying Principal | Number		889,115
2016 Convertible Notes Payable [Member]
Interest rate	10.00%
Principal Outstanding	$ 1,516,329	$ 8,126,129
Discount Amount	83,298	1,475,744
Carrying Amount	$ 1,433,031	$ 6,650,385
Shares Underlying Principal | Number	441,048	2,193,687
2016 Convertible Notes Payable [Member] | Minimum [Member]
Term of Notes	Due on demand
Conversion Price | $ / shares	$ 3.50
2016 Convertible Notes Payable [Member] | Maximum [Member]
Term of Notes	2 years
Conversion Price | $ / shares	$ 4.50
2017 Convertible Notes Payable [Member]
Principal Outstanding	$ 36,113,296
Discount Amount	11,232,423
Carrying Amount	$ 24,880,873
Shares Underlying Principal | Number	5,357,488
2017 Convertible Notes Payable [Member] | Minimum [Member]
Interest rate	10.00%
Term of Notes	Due on demand
Conversion Price | $ / shares	$ 3.50
2017 Convertible Notes Payable [Member] | Maximum [Member]
Interest rate	13.50%
Term of Notes	3 years
Conversion Price | $ / shares	$ 10.31
Convertible Notes Payable [Member]
Conversion Price | $ / shares			$ 3.50
Principal Outstanding	$ 38,416,503	$ 11,783,097
Discount Amount	11,315,721	1,580,133
Carrying Amount	$ 27,100,782	$ 10,202,964
Shares Underlying Principal | Number	6,065,587	3,334,073
Principal Outstanding, Current	$ 12,860,912	$ 10,499,303
Principal Outstanding, Non Current	25,555,591	1,283,794
Discount Amount Current	5,835,910	1,294,296
Discount Amount Non Current	5,479,811	285,837
Convertible notes payable, Current	7,025,002	9,205,007
Convertible notes payable, Non Current	$ 20,075,780	$ 997,957
Shares Underlying Principal Current | Number	3,449,984	2,984,161
Shares Underlying Principal Non Current | Number	2,615,603	349,912
2012 Convertible notes payable - related party [Member]
Interest rate	10.00%
Term of Notes	Due on demand
Conversion Price | $ / shares	$ 3.30
Principal Outstanding	$ 200,000	$ 254,000
Carrying Amount	$ 200,000	$ 254,000
Shares Underlying Principal | Number	68,122	94,532
2015 Convertible notes payable - related party [Member]
Interest rate	10.00%
Term of Notes	2 years
Conversion Price | $ / shares	$ 4.50
Principal Outstanding	$ 200,000	$ 220,000
Carrying Amount	$ 200,000	$ 220,000
Shares Underlying Principal | Number	53,905	54,463
Convertible notes payable - related party [Member]
Principal Outstanding	$ 400,000	$ 474,000
Carrying Amount	$ 400,000	$ 474,000
Shares Underlying Principal | Number	122,027	148,995
Principal Outstanding, Current	$ 400,000	$ 474,000
Convertible notes payable related parties, Current	$ 400,000	$ 474,000
Shares Underlying Principal Current | Number	122,027	148,995

NOTES PAYABLE (Details Narrativ

NOTES PAYABLE (Details Narrative) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Average stated interest rate	11.00%	10.00%
Average effective interest rate	24.00%	23.00%
Description of debt conversion	Certain notes with a $4.50 and a $10.00 stated conversion price in the second year of their twoyear term are subject to automatic conversion into shares of the Company’s common stock at a conversion price equal to 80% of the initial public offering price at the time of a qualified public offering.
Percentage of initial public offering price	80.00%
Warrants [Member]
Method of calculation of fair value of warrants	Black-Scholes-Merton option pricing model
Minimum [Member]
Conversion Price	$ 3.05
Maximum [Member]
Conversion Price	$ 10.31

NOTES PAYABLE (Details 2)

NOTES PAYABLE (Details 2)	Dec. 31, 2017USD ($)
Contractual principal payments due on loans and notes payable for the year ending
2,018	$ 23,168,316
2,019	5,555,591
2,020	20,000,000
Total	$ 48,723,907

NOTES PAYABLE (Details 3)

NOTES PAYABLE (Details 3) - $ / shares	Sep. 11, 2013	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	May 10, 2016	Jan. 14, 2016
Stock price		$ 11.40					$ 5	$ 4.70
Warrants [Member]
Stock price	$ 3.60	$ 11.40	$ 6	$ 4.70	$ 4.90	$ 3.60
Term	5 years	8 months 12 days	1 year 8 months 12 days	2 years 8 months 12 days	3 years 8 months 12 days	4 years 8 months 12 days
Risk‑free interest rate	1.72%	1.62%	1.09%	1.23%	1.38%	1.75%
Expected volatility	72.40%	55.80%	68.30%	64.10%	71.50%	63.20%
Warrants [Member] | Convertible Notes Payable [Member]
Stock price		$ 11.40	$ 5
Exercise price		$ 10.80
Term		5 years	5 years
Risk‑free interest rate		2.20%
Expected volatility		70.00%
Warrants [Member] | Convertible Notes Payable [Member] | Minimum [Member]
Exercise price			$ 4.50
Risk‑free interest rate			1.01%
Expected volatility			65.40%
Warrants [Member] | Convertible Notes Payable [Member] | Maximum [Member]
Exercise price			$ 4.70
Risk‑free interest rate			1.28%
Expected volatility			69.60%

STOCKHOLDERS' DEFICIT (Details

STOCKHOLDERS' DEFICIT (Details Narrative)	Dec. 29, 2017USD ($)Note$ / shares	Sep. 29, 2016USD ($)shares	Sep. 12, 2016USD ($)$ / shares	Aug. 26, 2016USD ($)$ / shares	Jun. 10, 2015USD ($)shares	Jun. 10, 2014USD ($)$ / sharesshares	Sep. 11, 2013USD ($)$ / sharesshares	Dec. 31, 2017USD ($)$ / sharesshares	Dec. 31, 2016USD ($)$ / sharesshares	May 10, 2016$ / shares	Jan. 14, 2016$ / shares	Dec. 31, 2015$ / sharesshares	Sep. 11, 2014USD ($)shares	Jul. 14, 2014shares	Feb. 28, 2013shares	Feb. 27, 2013shares
Warrants outstanding | shares								5,265,432
Fair value of outstanding warrants								$ 26,377,000	$ 10,600,000
Proceeds from exercise of warrants								$ 210,079
Warrants Issued with Notes (in shares) | shares								315,764
Convertible notes prinicipal amount								$ 37,408,186	16,696,243
Original Loan Principal Amount								$ 46,979,587
Exercise price - options vested | $ / shares								$ 11.40
Share-based compensation								$ 5,051,838	3,328,400
Period remaining for recognition of unrecognized compensation cost								1 year 3 months 18 days
Share price | $ / shares								$ 11.40		$ 5	$ 4.70
Convertible note inducement expense									1,444,863
Loss on debt settlement								$ 0	$ 266,736
2011 Stock Incentive Option Plan [Member]
Options granted | shares								50,000	2,596,200
Exercise price - options vested | $ / shares								$ 11.40
Exercise price - options | $ / shares								$ 4.12	$ 4.10			$ 3.68
Options outstanding | shares								6,775,200	6,955,200			4,753,335
Total unrecognized compensation cost								$ 3,600,000
2011 Stock Incentive Option Plan [Member] | Stock Options [Member]
Number of shares authorized under the plan | shares								9,000,000						9,000,000	6,000,000	3,000,000
Expiration period								10 years
Vesting period								3 years
Share-based compensation								$ 5,100,000	$ 3,300,000
2011 Stock Incentive Option Plan [Member] | 2016 Stock Options Tranche 1 [Member]
Options granted | shares								300,000
Exercise price - options | $ / shares								$ 4.70
Vesting percentage								33.00%
2011 Stock Incentive Option Plan [Member] | 2016 Stock Options Tranche 2 [Member]
Options granted | shares								2,296,200
Exercise price - options | $ / shares								$ 5
Vesting percentage								33.00%
Maximum [Member]
Conversion Price | $ / shares								$ 10.31
Minimum [Member]
Conversion Price | $ / shares								$ 3.05
GPB Debt Holdings II, LLC [Member]
Minimum interest reserve period to be maintained	6 months
Percentage of beneficially own in excess of common shares outstanding	4.99%
GPB Debt Holdings II, LLC [Member] | Maximum [Member]
Percentage of beneficially own in excess of common shares outstanding	9.99%
Convertible Notes Payable [Member]
Convertible notes prinicipal amount								$ 27,100,782	10,202,964
Conversion Price | $ / shares				$ 3.50
Converted debt amount				$ 4,007,598
Accrued interest				260,124
Convertible Notes Payable [Member] | Letter of Agreement [Member]
Convertible note inducement expense				1,444,863
Notes Payable [Member]
Convertible notes prinicipal amount								$ 7,871,143	$ 4,094,429
Converted debt amount				622,384
Loss on debt settlement				(266,736)
Conversion of nonconvertible notes payable to common stock				$ 889,120
GPB Debt Holdings II, LLC [Member] | Senior Secured Convertible Promissory Note [Member]
Maturity date								Dec. 29, 2020
Stated Annual Interest	12.50%
Percentage of annual paymnets paid in kind interest rate	1.00%
Percentage portion of principal amount for which monthly payment is required	5.00%
Percentage of additional success fee paid prior to 24th-month anniversary	2.00%
Percentage of additional success fee on or after 24th-month anniversary	3.00%
Conversion Price | $ / shares	$ 10.31
Percentage of conversion price premium to public listing price	10.00%
Interest rate in event of default in maximum rate permitted by law	17.50%
Percentage of outstanding principal balance	120.00%
Debt face amount percentage	20.00%
Debt instrument exercise price | $ / shares	$ 10.80
Percentage of premium dilutive issuance price and number of shares issuable	10.00%
Initial warrants exercisable period after issuance	5 years
GPB Debt Holdings II, LLC [Member] | Convertible Debt
Number of issaunce of maximum additional promissory notes | Note	3
GPB Debt Holdings II, LLC [Member] | Convertible Debt | Senior Secured Convertible Promissory Note [Member]
Convertible notes prinicipal amount	$ 13,000,000
Original Loan Principal Amount	$ 12,480,000
Original issue discount percentage	4.00%
GPB Debt Holdings II, LLC [Member] | Convertible Debt | Escrow Note [Member]
Convertible notes prinicipal amount	$ 7,000,000
Original Loan Principal Amount	$ 6,720,000
Original issue discount percentage	4.00%
GPB Debt Holdings II, LLC [Member] | Convertible Debt | Second Note [Member]
Convertible notes prinicipal amount	$ 5,000,000
Original Loan Principal Amount	$ 4,800,000
Original issue discount percentage	4.00%
GPB Debt Holdings II, LLC [Member] | Convertible Debt | Third Note [Member]
Convertible notes prinicipal amount	$ 5,000,000
Original Loan Principal Amount	$ 4,800,000
Original issue discount percentage	4.00%
KPM Tech Co., Ltd [Member] | Letter of Agreement [Member]
Common stock price | $ / shares			$ 15.32
Future capital increases			$ 13,000,000
Hanil Vacuum Co Ltd [Member] | Letter of Agreement [Member]
Common stock price | $ / shares			$ 3.68
Future capital increases			$ 1,000,000
Private Placement [Member]
Units issued in offering (in units) | shares							3,020,501
Unit price of offering (in dollars per share) | shares							2.50
Units issued in offering							$ 7,551,253
Warrants issued to broker of the offering | shares							300,000
Exercise price | $ / shares						$ 3.50	$ 3.50
Warrants outstanding | shares													2,225,036
Fair value of outstanding warrants						$ 1,800,000							$ 7,068,000
Number of warrants exercised | shares						1,095,465
Proceeds from exercise of warrants						$ 3,800,000
Issuance of common stock for exercise of warrants | shares						1,095,465
Adjustment to additional paid-in capital - warrants						$ 1,800,000
Private Placement [Member] | Letter of Agreement [Member]
Reduction in additional paid in capital		$ 720,000
Private Placement [Member] | Common Stock
Common stock subscription | shares						4,115,966
Private Placement [Member] | Warrant
Warrants outstanding | shares								3,320,501
Common stock subscription | shares						3,320,501
Share price | $ / shares								$ 11.40
Private Placement [Member] | Replacement Warrants [Member]
Exercise price | $ / shares						$ 3.50
Private Placement [Member] | Maximum [Member] | Letter of Agreement [Member]
Conversion Price | $ / shares				$ 7
Private Placement [Member] | Maximum [Member] | Warrant
Share price | $ / shares								$ 12.40
Number of shares callable by warrants | shares								2,383,263
Private Placement [Member] | Minimum [Member] | Letter of Agreement [Member]
Conversion Price | $ / shares				$ 4.50
Private Placement [Member] | Minimum [Member] | Warrant
Share price | $ / shares								$ 11.40
Number of shares callable by warrants | shares								2,301,049
Increase in share price | $ / shares								$ 1
Private Placement [Member] | KPM Tech Co., Ltd [Member] | Letter of Agreement [Member]
Purchase of common stock			$ 17,000,000
Common stock price | $ / shares			$ 4.50
Future capital investment			$ 13,000,000
Number of shares issued | shares		3,777,778
Private Placement [Member] | Hanil Vacuum Co Ltd [Member] | Letter of Agreement [Member]
Purchase of common stock			3,000,000
Future capital investment			$ 1,000,000
Number of shares issued | shares		666,667
Private Placement [Member] | KPM Tech Co., Ltd and Hanil Vacuum Co Ltd [Member] | Letter of Agreement [Member]
Purchase of common stock		$ 20,000,000
Private Placement [Member] | Replacement Warrants [Member]
Exercise price | $ / shares						$ 3.50
Warrants outstanding | shares					1,095,465
Fair value of outstanding warrants					$ 2,545,000
Warrants Issued with Notes (in shares) | shares						1,095,465
Warrant exercise inducement expense					$ 3,500,000

STOCKHOLDERS' DEFICIT (Details)

STOCKHOLDERS' DEFICIT (Details) - shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Warrants outstanding summary
Warrants outstanding, ending	5,265,432
Warrant
Warrants outstanding summary
Warrants outstanding, beginning	5,024,668	3,530,918
Granted	240,764	1,493,750
Warrants outstanding, ending	5,265,432	5,024,668

STOCKHOLDERS' DEFICIT (Detail49

STOCKHOLDERS' DEFICIT (Details 1)	12 Months Ended
	Dec. 31, 2017$ / sharesshares
Warrants Outstanding Abstract
Warrants outstanding	5,265,432
Exercisable	5,265,432
Warrants Issued in 2013 - Exercise Price $3.30 [Member]
Warrants Outstanding Abstract
Warrants outstanding	50,000
Weighted Average Remaining Contractual Life (Years)	3 months 29 days
Weighted Average Exercise Price | $ / shares	$ 3.30
Exercisable	50,000
Weighted Average Exercise Price | $ / shares	$ 3.30
Warrants Issued in 2013 - Exercise Price $3.50 [Member]
Warrants Outstanding Abstract
Warrants outstanding	2,225,036
Weighted Average Remaining Contractual Life (Years)	8 months 12 days
Weighted Average Exercise Price | $ / shares	$ 3.50
Exercisable	2,225,036
Weighted Average Exercise Price | $ / shares	$ 3.50
Warrants Issued in 2013 [Member]
Warrants Outstanding Abstract
Warrants outstanding	2,275,036
Exercisable	2,275,036
Warrants Issued in 2014 - Exercise Price $3.50 [Member]
Warrants Outstanding Abstract
Warrants outstanding	1,145,465
Weighted Average Remaining Contractual Life (Years)	8 months 19 days
Weighted Average Exercise Price | $ / shares	$ 3.50
Exercisable	1,145,465
Weighted Average Exercise Price | $ / shares	$ 3.50
Warrants Issued in 2014 [Member]
Warrants Outstanding Abstract
Warrants outstanding	1,145,465
Exercisable	1,145,465
Warrants Issued in 2015 - Exercise Price $4.90 [Member]
Warrants Outstanding Abstract
Warrants outstanding	110,417
Weighted Average Remaining Contractual Life (Years)	2 years 2 months 4 days
Weighted Average Exercise Price | $ / shares	$ 4.90
Exercisable	110,417
Weighted Average Exercise Price | $ / shares	$ 4.90
Warrants Issued in 2015 [Member]
Warrants Outstanding Abstract
Warrants outstanding	110,417
Exercisable	110,417
Warrants Issued in 2016 - Exercise Price $4.50 [Member]
Warrants Outstanding Abstract
Warrants outstanding	118,750
Weighted Average Remaining Contractual Life (Years)	3 years 6 months
Weighted Average Exercise Price | $ / shares	$ 4.50
Exercisable	118,750
Weighted Average Exercise Price | $ / shares	$ 4.50
Warrants Issued in 2016 - Exercise Price $4.70 [Member]
Warrants Outstanding Abstract
Warrants outstanding	75,000
Weighted Average Remaining Contractual Life (Years)	3 years 3 months 29 days
Weighted Average Exercise Price | $ / shares	$ 4.70
Exercisable	75,000
Weighted Average Exercise Price | $ / shares	$ 4.70
Warrants Issued in 2016 - Exercise Price $5.00 [Member]
Warrants Outstanding Abstract
Warrants outstanding	1,300,000
Weighted Average Remaining Contractual Life (Years)	3 years 4 months 9 days
Weighted Average Exercise Price | $ / shares	$ 5
Exercisable	1,300,000
Weighted Average Exercise Price | $ / shares	$ 5
Warrants Issued in 2016 [Member]
Warrants Outstanding Abstract
Warrants outstanding	1,493,750
Exercisable	1,493,750
Warrants Issued in 2017 - Exercise Price $ 10.80 [Member]
Warrants Outstanding Abstract
Warrants outstanding	240,764
Weighted Average Remaining Contractual Life (Years)	5 years 6 months
Weighted Average Exercise Price | $ / shares	$ 10.80
Exercisable	240,764
Weighted Average Exercise Price | $ / shares	$ 10.80

STOCKHOLDERS' DEFICIT (Detail50

STOCKHOLDERS' DEFICIT (Details 2) - $ / shares	May 10, 2016	Jan. 14, 2016	Dec. 31, 2017
Stockholders Equity Note [Abstract]
Stock price	$ 5	$ 4.70	$ 11.40
Exercise Price	$ 5	$ 4.70	$ 11.40
Term	10 years	10 years	10 years
Risk-Free Rate	1.36%	1.70%	2.27%
Volatility	65.55%	64.14%	68.18%

STOCKHOLDERS' DEFICIT (Detail51

STOCKHOLDERS' DEFICIT (Details 3) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Weighted Average Exercise Price [Roll Forward]
Granted or deemed issued	$ 11.40
2011 Stock Incentive Option Plan [Member]
Options, Outstanding [Roll Forward]
Options outstanding, beginning	6,955,200	4,753,335
Granted or deemed issued	50,000	2,596,200
Exercised	(11,895)	(15,866)
Cancelled, forfeited and expired	(218,105)	(378,469)
Options outstanding, end	6,775,200	6,955,200
Options exercisable	5,604,439	4,372,667
Options available for future grant	2,224,800	2,044,800
Weighted Average Exercise Price [Roll Forward]
Options outstanding, beginning	$ 4.10	$ 3.68
Granted or deemed issued	11.40
Exercised	4.19	3.60
Cancelled, forfeited and expired	4.98	3.91
Options outstanding, end	4.12	4.10
Options exercisable	$ 3.95	$ 3.59

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Current
Current U.S.	$ 2,400	$ 2,400
International	833	1,293
Deferred
Deferred U.S.	(12,306,343)
INCOME TAXES (BENEFIT)	$ (12,303,110)	$ 3,693

INCOME TAXES (Details 1)

INCOME TAXES (Details 1) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Components of net deferred tax assets
Net operating loss carryforward	$ 15,086,163	$ 20,881,231
General business tax credit	8,911,700	7,504,146
Stock options	3,583,299	7,633,468
Charitable contribution	38,128	56,617
Accrued expenses	229,105	384,690
Other	29,855	412,630
Total gross deferred tax assets	27,878,250	36,872,782
Less valuation allowance	(13,381,045)	(36,740,418)
Net deferred tax assets	$ 14,497,205	$ 132,364

INCOME TAXES (Details 2)

INCOME TAXES (Details 2) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Unrealized gain on foreign exchange translation and others	$ (32,752)	$ (83,880)
Unrealized gain on marketable securities	(14,464,453)	(48,484)
Total deferred tax liability	$ (14,497,205)	$ (132,364)

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Operating Loss Carryforwards [Line Items]
Valuation allowance increase (decrease)		$ (23,359,373)	$ 6,623,676
General business tax credits		$ 8,912,000	7,504,000
Statutory federal tax rate (in percent)		34.00%
Change in corporate tax rate (in percent)		34.00%
Scenario, Plan
Operating Loss Carryforwards [Line Items]
Statutory federal tax rate (in percent)	21.00%
Change in corporate tax rate (in percent)	21.00%
Federal
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards expiration		Dec. 31, 2037
Business credits expiration		Dec. 31, 2027
Net operating loss carryforwards		$ 64,622,000	52,136,000
State and Local
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards expiration		Dec. 31, 2037
Net operating loss carryforwards		$ 57,937,000	$ 50,457,000

INCOME TAXES (Details 3)

INCOME TAXES (Details 3) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Reconciliation of effective income tax
Tax benefit at statutory federal rate	$ (15,496,876)	$ (7,481,009)
State taxes, net of federal tax benefit	(398,315)	(695,697)
Increase in valuation allowance	(8,943,404)	6,640,524
Permanent items	9,521,184	3,633,702
General business tax credit	(1,407,553)	(993,983)
Impact from tax rate change (34% to 21%)	10,210,183
OCI, tax benefit	(12,306,343)
Other	6,518,014	(1,099,844)
INCOME TAXES (BENEFIT)	$ (12,303,110)	$ 3,693

INCOME TAXES (Details 3) (Paren

INCOME TAXES (Details 3) (Parenthetical)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Operating Loss Carryforwards [Line Items]
Statutory federal tax rate (in percent)		34.00%
Scenario, Plan
Operating Loss Carryforwards [Line Items]
Statutory federal tax rate (in percent)	21.00%

COMMITMENTS AND CONTINGENCIES58

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Commitments And Contingencies Disclosure [Abstract]
Monthly commercialization management fee	$ 4,500
Rent expense	$ 563,382	$ 598,716

COMMITMENTS AND CONTINGENCIES59

COMMITMENTS AND CONTINGENCIES (Details)	Dec. 31, 2017USD ($)
Future minimum lease payments
2,018	$ 397,100
2,019	687,032
2,020	611,012
2,021	626,545
2,022	646,047
Thereafter	777,344
Total	$ 3,745,080

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details)		12 Months Ended
		Dec. 31, 2017USD ($)Number$ / shares		Dec. 31, 2016USD ($)Number$ / shares
Short-term Debt [Line Items]
Principal Amount Outstanding		$ 37,408,186		$ 16,696,243
Shares Underlying Principal | Number		6,187,614		3,483,068
Hope Hospice [Member]
Short-term Debt [Line Items]
Interest Rate	[1]	8.00%		8.00%
Date of Loan	[1]	Jan. 17, 2012		Jan. 17, 2012
Term of Loan	[1]	Due on Demand
Principal Amount Outstanding	[1]			$ 200,000
Highest Principal Outstanding	[1]	$ 200,000		200,000
Amount of Principal Repaid	[1]	200,000
Amount of Interest Paid	[1]	$ 7,331		$ 20,000
Hope Hospice [Member]
Short-term Debt [Line Items]
Interest Rate	[1]	8.00%		8.00%
Date of Loan	[1]	Jun. 14, 2012		Jun. 14, 2012
Term of Loan	[1]	Due on Demand
Principal Amount Outstanding	[1]			$ 200,000
Highest Principal Outstanding	[1]	$ 200,000		200,000
Amount of Principal Repaid	[1]	200,000
Amount of Interest Paid	[1]	$ 14,762		$ 20,000
Hope Hospice [Member]
Short-term Debt [Line Items]
Interest Rate	[1]	8.00%		8.00%
Date of Loan	[1]	Jun. 21, 2012		Jun. 21, 2012
Term of Loan	[1]	Due on Demand
Principal Amount Outstanding	[1]			$ 100,000
Highest Principal Outstanding	[1]	$ 100,000		100,000
Amount of Principal Repaid	[1]	100,000
Amount of Interest Paid	[1]	$ 7,249		$ 10,000
Hope Hospice [Member]
Short-term Debt [Line Items]
Interest Rate	[1]	8.00%		8.00%
Date of Loan	[1]	Feb. 11, 2013		Feb. 11, 2013
Term of Loan	[1]	Due on Demand
Principal Amount Outstanding	[1]			$ 50,000
Highest Principal Outstanding	[1]	$ 50,000		50,000
Amount of Principal Repaid	[1]	50,000
Amount of Interest Paid	[1]	$ 1,559		$ 5,000
Hope Hospice [Member]
Short-term Debt [Line Items]
Interest Rate		10.00%	[1]	10.00%	[2]
Date of Loan		Jan. 7, 2015	[1]	Jan. 7, 2015	[2]
Term of Loan	[1]	Due on Demand
Principal Amount Outstanding	[2]			$ 100,000
Highest Principal Outstanding		$ 100,000	[1]	$ 100,000	[2]
Amount of Principal Repaid	[1]	100,000
Amount of Interest Paid	[1]	$ 28,630
IRA Service Trust Co. FBO Peter B. Ludlum [Member]
Short-term Debt [Line Items]
Interest Rate		10.00%	[3]	10.00%	[2]
Date of Loan		Feb. 20, 2015	[3]	Feb. 20, 2015	[2]
Term of Loan	[3]	Due on Demand
Principal Amount Outstanding		$ 10,000	[3]	$ 10,000	[2]
Highest Principal Outstanding		$ 10,000	[3]	$ 10,000	[2]
Masaharu & Emiko Osato [Member]
Short-term Debt [Line Items]
Interest Rate	[3]	11.00%	[2]	11.00%
Date of Loan	[3]	Dec. 29, 2015	[2]	Dec. 29, 2015
Term of Loan	[2],[3]	Due on Demand
Principal Amount Outstanding	[3]	$ 300,000	[2]	$ 300,000
Highest Principal Outstanding	[3]	$ 300,000	[2]	$ 300,000
Yutaka Niihara [Member]
Short-term Debt [Line Items]
Interest Rate	[2]	10.00%		10.00%	[3]
Date of Loan	[2]	May 21, 2015		May 21, 2015	[3]
Term of Loan	[2]	Due on Demand
Principal Amount Outstanding	[2],[3]			$ 94,340
Highest Principal Outstanding	[2]	$ 826,105		826,105	[3]
Amount of Principal Repaid	[2]	94,339		731,765	[3]
Amount of Interest Paid	[2]	$ 61,829		$ 47,822	[3]
Lan T. Tran [Member]
Short-term Debt [Line Items]
Interest Rate		11.00%	[3]	11.00%	[2]
Date of Loan		Feb. 10, 2016	[3]	Feb. 10, 2016	[2]
Term of Loan	[3]	Due on Demand
Principal Amount Outstanding		$ 130,510	[3]	$ 130,510	[2]
Highest Principal Outstanding		$ 130,510	[3]	$ 130,510	[2]
Masaharu & Emiko Osato [Member]
Short-term Debt [Line Items]
Interest Rate		11.00%	[1]	11.00%	[3]
Date of Loan		Feb. 25, 2016	[1]	Feb. 25, 2016	[3]
Term of Loan	[1]	Due on Demand
Principal Amount Outstanding		$ 400,000	[1]	$ 400,000	[3]
Highest Principal Outstanding		$ 400,000	[1]	$ 400,000	[3]
Hope Hospice [Member]
Short-term Debt [Line Items]
Interest Rate		10.00%	[2]	10.00%	[1]
Date of Loan		Apr. 4, 2016	[2]	Apr. 4, 2016	[1]
Term of Loan	[2]	Due on Demand
Principal Amount Outstanding	[1]			$ 50,000
Highest Principal Outstanding		$ 50,000	[2]	$ 50,000	[1]
Amount of Principal Repaid	[2]	50,000
Amount of Interest Paid	[2]	$ 8,110
Lan T. Tran [Member]
Short-term Debt [Line Items]
Interest Rate		10.00%	[1]	10.00%	[2]
Date of Loan		Apr. 29, 2016	[1]	Apr. 29, 2016	[2]
Term of Loan	[1]	Due on Demand
Principal Amount Outstanding		$ 20,000	[1]	$ 20,000	[2]
Highest Principal Outstanding		$ 20,000	[1]	$ 20,000	[2]
IRA Service Trust Co. FBO Peter B. Ludlum Member]
Short-term Debt [Line Items]
Interest Rate	[2]	10.00%		10.00%
Date of Loan	[2]	May 5, 2016		May 5, 2016
Term of Loan	[2]	Due on Demand
Principal Amount Outstanding	[2]	$ 10,000		$ 10,000
Highest Principal Outstanding	[2]	$ 10,000		$ 10,000
Hope Hospice [Member]
Short-term Debt [Line Items]
Interest Rate		10.00%	[2],[3]	10.00%	[1]
Date of Loan		Jun. 3, 2016	[2],[3]	Jun. 3, 2016	[1]
Term of Loan	[2],[3]	Due on Demand
Principal Amount Outstanding		$ 250,000	[2],[3]	$ 250,000	[1]
Highest Principal Outstanding		$ 250,000	[2],[3]	250,000	[1]
Lan T. Tran [Member]
Short-term Debt [Line Items]
Interest Rate		10.00%
Date of Loan		Feb. 9, 2017
Term of Loan		Due on Demand
Principal Amount Outstanding		$ 12,000
Highest Principal Outstanding		$ 12,000
Yutaka Niihara [Member]
Short-term Debt [Line Items]
Interest Rate		10.00%
Date of Loan		Sep. 14, 2017
Term of Loan		Due on Demand
Principal Amount Outstanding		$ 903,751
Highest Principal Outstanding		903,751
Promissory Note Payable To Related Parties [Member]
Short-term Debt [Line Items]
Principal Amount Outstanding		2,036,261		1,924,850
Highest Principal Outstanding		3,562,366		2,869,648
Amount of Principal Repaid		794,339		944,798
Amount of Interest Paid		$ 129,470		$ 116,336
Yasushi Nagasaki [Member]
Short-term Debt [Line Items]
Interest Rate	[2]	10.00%		10.00%
Date of Loan	[2]	Jun. 29, 2012		Jun. 29, 2012
Term of Loan	[2]	Due on Demand
Principal Amount Outstanding	[2]	$ 200,000		$ 254,000
Highest Principal Outstanding	[2]	388,800		388,800
Amount of Principal Repaid	[2]	188,800		134,800
Amount of Interest Paid	[2]	$ 57,886		$ 27,824
Conversion Rate (in dollars per share) | $ / shares	[2]	$ 3.30		$ 3.30
Shares Underlying Principal | Number	[2]	68,122		94,532
Charles & Kimxa Stark [Member]
Short-term Debt [Line Items]
Interest Rate	[2]	10.00%		10.00%
Date of Loan	[2]	Oct. 1, 2015		Oct. 1, 2015
Term of Loans	[2]	2 years		2 years
Principal Amount Outstanding	[2]			$ 20,000
Highest Principal Outstanding	[2]	$ 20,000		$ 20,000
Amount of Principal Repaid	[2]	20,000
Amount of Interest Paid	[2]	$ 4,405
Conversion Rate (in dollars per share) | $ / shares	[2]	$ 4.50		$ 4.50
Shares Underlying Principal | Number	[2]			5,002
Yutaka & Soomi Niihara [Member]
Short-term Debt [Line Items]
Interest Rate	[2],[3]	10.00%		10.00%
Date of Loan	[2],[3]	Nov. 16, 2015		Nov. 16, 2015
Term of Loans	[2],[3]	2 years		2 years
Principal Amount Outstanding	[2],[3]	$ 200,000		$ 200,000
Highest Principal Outstanding	[2],[3]	$ 200,000		$ 200,000
Conversion Rate (in dollars per share) | $ / shares	[2],[3]	$ 4.50		$ 4.50
Shares Underlying Principal | Number	[2],[3]	53,905		49,461
Convertible notes payable - related party [Member]
Short-term Debt [Line Items]
Principal Amount Outstanding		$ 400,000		$ 474,000
Highest Principal Outstanding		608,800		608,800
Amount of Principal Repaid		208,800		134,800
Amount of Interest Paid		$ 62,291		$ 27,824
Shares Underlying Principal | Number		122,027		148,995
Promissory note payable and convertible notes payable - related party [Member]
Short-term Debt [Line Items]
Principal Amount Outstanding		$ 2,436,261		$ 2,398,850
Highest Principal Outstanding		4,171,166		3,478,448
Amount of Principal Repaid		1,003,139		1,079,598
Amount of Interest Paid		$ 191,761		$ 144,160
Shares Underlying Principal | Number		122,027		148,995
Lan T. Tran [Member]
Short-term Debt [Line Items]
Interest Rate	[2]			10.00%
Date of Loan	[2]			Feb. 9, 2015
Principal Amount Outstanding	[2]			$ 10,000
Highest Principal Outstanding	[2]			$ 10,000
Hideki & Eiko Uehara [Member]
Short-term Debt [Line Items]
Interest Rate	[4]			11.00%
Date of Loan	[4]			Feb. 15, 2016
Highest Principal Outstanding	[4]			$ 133,333
Amount of Principal Repaid	[4]			133,333
Amount of Interest Paid	[4]			$ 12,226
Conversion Rate (in dollars per share) | $ / shares	[4]			$ 3.50
Willis C. Lee [Member]
Short-term Debt [Line Items]
Interest Rate	[2],[3]			10.00%
Date of Loan	[2],[3]			Apr. 8, 2016
Highest Principal Outstanding	[2],[3]			$ 79,700
Amount of Principal Repaid	[2],[3]			79,700
Amount of Interest Paid	[2],[3]			$ 1,288
[1]	Dr. Niihara, who is the Company’s CEO, is also the CEO of Hope Hospice.
[2]	Officer
[3]	Director
[4]	Family of Officer/Director

GEOGRAPHIC INFORMATION (Details

GEOGRAPHIC INFORMATION (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Japan [Member]
Entity Wide Revenue Major Customer [Line Items]
Revenue	$ 148,989	$ 160,543
Percentage of revenue (in percent)	28.00%	35.00%
Taiwan [Member]
Entity Wide Revenue Major Customer [Line Items]
Revenue	$ 264,928	$ 220,397
Percentage of revenue (in percent)	51.00%	48.00%

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($)	Jan. 01, 2018	Dec. 31, 2017	Aug. 26, 2016
Principal Amounts		$ 46,979,587
Convertible Notes Payable [Member]
Conversion Price			$ 3.50
Convertible Notes Payable [Member] | Subsequent Event [Member]
Principal Amounts	$ 15,087,200
Stated Annual Interest	10.00%
Term of Notes	2 years
Conversion Price	$ 10

SUBSEQUENT EVENTS (Details 1)

SUBSEQUENT EVENTS (Details 1) - USD ($)	Jan. 01, 2018	Dec. 31, 2017
Common shares		$ 1,141,600
Common Stock [Member]
Common shares		$ 145
Number of Shares Issued		144,750
Common Stock [Member] | Subsequent Event [Member]
Common shares	$ 275,000
Number of Shares Issued	25,000

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - USD ($)	Mar. 29, 2018	Feb. 28, 2018	Dec. 31, 2017
Subsequent Event [Line Items]
Warrants outstanding			5,265,432
Subsequent Event [Member]
Subsequent Event [Line Items]
Aggregate amount of prepayment loan		$ 13,409,348
Success fee		260,448
Subsequent Event [Member] | Sarissa Capital
Subsequent Event [Line Items]
Common Stock repurchased	700,000
Payments for Repurchase of Common Stock	$ 7,500,000
Subsequent Event [Member] | Sarissa Capital | Maximum [Member]
Subsequent Event [Line Items]
Warrants outstanding	800,000
Subsequent Event [Member] | GPB Debt Holdings II, LLC [Member]
Subsequent Event [Line Items]
Prepayment of original principal amount of loan		$ 13,000,000
Purchase agreement date		Dec. 29, 2017