XG Sciences 10-Q 14 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 14, 2018
Document And Entity Information
Entity Registrant Name	XG SCIENCES INC
Entity Central Index Key	1,435,375
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
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 Common Stock, Shares Outstanding		2,662,525
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,018

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
CURRENT ASSETS
Cash	$ 2,285,117	$ 2,845,798
Accounts receivable, less allowance for doubtful accounts of $40,000 at March 31, 2018 and December 31, 2017	668,040	468,623
Inventories	209,711	171,864
Other current assets	91,588	15,781
Total current assets	3,254,456	3,502,066
PROPERTY, PLANT AND EQUIPMENT, NET	3,266,797	2,601,571
RESTRICTED CASH FOR LETTER OF CREDIT	195,865	195,792
LEASE DEPOSIT	20,156	20,156
INTANGIBLE ASSETS, NET	574,579	571,938
TOTAL ASSETS	7,311,853	6,891,523
CURRENT LIABILITIES
Accounts payable and other current liabilities	1,332,951	858,077
Deferred revenue	189	7,298
Current portion of capital lease obligations	91,985	118,553
Total current liabilities	1,425,125	983,928
LONG-TERM LIABILITIES
Long-term portion of capital lease obligations	14,639	15,527
Long term debt	4,869,714	4,794,596
Total long-term liabilities	4,884,353	4,810,123
TOTAL LIABILITIES	6,309,478	5,794,051
STOCKHOLDERS' EQUITY
Preferred stock, value
Common stock, no par value, 25,000,000 shares authorized, 2,555,275 and 2,353,350 shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively	20,741,574	19,116,012
Additional paid-in capital	7,899,722	7,831,958
Accumulated deficit	(49,641,638)	(47,767,544)
Total stockholders' equity	1,002,375	1,097,472
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	7,311,853	6,891,523
Series A Convertible Preferred Stock [Member]
STOCKHOLDERS' EQUITY
Preferred stock, value	$ 22,002,717	$ 21,917,046

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Allowance for doubtful accounts	$ 40,000	$ 40,000
Common stock, no par value (in dollars per share)	$ 0	$ 0
Common stock, authorized	25,000,000	25,000,000
Common stock, issued	2,555,275	2,353,350
Common stock, outstanding	2,555,275	2,353,350
Series A Convertible Preferred Stock [Member]
Preferred stock, authorized	3,000,000	3,000,000
Preferred stock, issued	1,864,956	1,857,816
Preferred stock, outstanding	1,864,956	1,857,816
Preferred stock, liquidation value	$ 22,379,472	$ 22,293,792

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
REVENUE
Product sales	$ 886,337	$ 157,700
Grants		99,489
Licensing revenue		25,000
Total revenues	886,337	282,189
COST OF GOODS SOLD
Direct costs	468,191	116,770
Unallocated manufacturing expenses	746,583	371,150
Total cost of goods sold	1,214,774	487,920
GROSS LOSS	(328,437)	(205,731)
OPERATING EXPENSES
Research and development	277,063	263,564
Sales, general and administrative	1,186,679	996,587
Total operating expenses	1,463,742	1,260,151
OPERATING LOSS	(1,792,179)	(1,465,882)
OTHER INCOME (EXPENSE)
Interest expense, net	(85,169)	(59,088)
Gain from change in fair value of derivative liability - warrants		29,171
Government incentives, net	3,253	(24)
Total other expense	(81,916)	(29,941)
NET LOSS	$ (1,874,095)	$ (1,495,823)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - Basic and diluted (in shares)	2,454,314	1,920,090
NET LOSS PER SHARE - Basic and diluted (in dollars per share)	$ (0.76)	$ (0.78)

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (unaudited) - 3 months ended Mar. 31, 2018 - USD ($)	Preferred Stock (A) [Member]	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Total
Balances at beginning at Dec. 31, 2017	$ 21,917,046	$ 19,116,012	$ 7,831,958	$ (47,767,544)	$ 1,097,472
Balances at beginning (in shares) at Dec. 31, 2017	1,857,816	2,353,350
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock issued for cash		$ 1,615,400			1,615,400
Stock issued for cash (in shares)		201,925
Stock issuance fees and expenses		$ (9,838)			(9,838)
Preferred stock issued to pay capital lease obligations	$ 85,671				85,671
Preferred stock issued to pay capital lease obligations (in shares)	7,140
Stock-based compensation expense		20,000	67,764		87,764
Net loss				(1,874,095)	(1,874,095)
Balances at ending at Mar. 31, 2018	$ 22,002,717	$ 20,741,574	$ 7,899,722	$ (49,641,638)	$ 1,002,375
Balances at ending (in shares) at Mar. 31, 2018	1,864,956	2,555,275

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (1,874,095)	$ (1,495,823)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	209,131	214,770
Amortization of intangible assets	12,934	10,590
Stock-based compensation expense	87,764	88,370
Non-cash interest expense	85,973	59,480
Non-cash equipment rent expense	53,082
Gain from change in fair value of derivative liability - warrants		(29,171)
Changes in current assets and liabilities:
Accounts receivable	(199,417)	14,680
Inventory	(37,847)	8,229
Other current and non-current assets	(75,881)	103,558
Accounts payable and other liabilities	467,765	17,576
NET CASH USED IN OPERATING ACTIVITIES	(1,270,591)	(1,007,741)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(874,357)	(203,664)
Purchases of intangible assets	(15,574)	(37,769)
NET CASH USED IN INVESTING ACTIVITIES	(889,931)	(241,433)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of capital lease obligations	(5,721)	(4,875)
Proceeds from issuance of common stock	1,615,400	771,800
Common stock issuance fees and expenses	(9,838)	(154,413)
NET CASH PROVIDED BY FINANCING ACTIVITIES	1,599,841	612,512
NET DECREASE IN CASH AND CASH EQUIVALENTS	(560,681)	(636,662)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	2,845,798	1,785,343
CASH AND CASH EQUIVALENTS AT END OF PERIOD	2,285,117	1,148,681
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest	220
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING:
Value of preferred stock issued for AAOF capital lease obligations	85,671	85,672
Reclassification of derivative liability warrants to equity - ASU 2017-11 (see note 2)		$ 125,481

NATURE OF BUSINESS AND BASIS OF

NATURE OF BUSINESS AND BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF BUSINESS AND BASIS OF PRESENTATION	NOTE 1 – NATURE OF BUSINESS AND BASIS OF PRESENTATION XG Sciences, Inc., a Michigan company located in Lansing, Michigan and its subsidiary, XG Sciences IP, LLC (collectively referred to as “we”, “us”, “our”, or the “Company”) manufactures graphene nanoplatelets made from graphite, using two proprietary manufacturing processes to split natural flakes of crystalline graphite into very small and thin particles, which we sell as xGnP ® Basis of Presentation The accompanying interim condensed consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Form 10-Q and do not include all of the information and footnotes required by GAAP for complete financial statements. All intercompany transactions have been eliminated in consolidation. Certain information and footnote disclosures normally included in our annual audited consolidated financial statements and accompanying notes have been condensed or omitted in these interim condensed consolidated financial statements. Accordingly, the unaudited condensed consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2017, as filed with the Securities and Exchange Commission (“SEC”) on Form 10-K on April 2, 2018. The results of operations presented in this quarterly report are not necessarily indicative of the results of operations that may be expected for any future periods. In the opinion of management, these unaudited condensed consolidated financial statements include all adjustments and accruals, consisting only of normal recurring adjustments that are necessary for a fair statement of the results of all interim periods reported herein.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Liquidity We have historically incurred losses from operations and we may continue to generate negative cash flows as we implement our business plan. Our condensed consolidated financial statements are prepared using US GAAP as applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. We filed a Registration Statement on Form S-1 (File No. 333-209131) with the SEC on April 11, 2016 which was declared effective by the SEC on April 13, 2016 (as amended, the “Registration Statement”). The Registration Statement registered up to 3,000,000 shares of common stock at a fixed price of $8.00 per share to the general public in a self-underwritten offering (the “Offering” or our “IPO”). Post-Effective Amendment No. 1 to the Registration Statement was declared effective August 26, 2016, Post-Effective Amendment No. 2 was declared effective August 31, 2016, Post-Effective Amendment No. 3 was declared effective January 17, 2017, and Post-Effective Amendments No. 4 and No. 5 were dated April 12, 2017. Post-Effective Amendment No. 5 was In December 2016, we entered into a draw loan note and agreement (the “Dow Facility”) with The Dow Chemical Company (“Dow”) to provide up to $10 million of secured debt financing at an interest rate of 5% per year, drawable at our request under certain conditions. As of May 14, 2018, we had drawn $5.0 million under the Dow Facility. The remaining $5 million will become available to us once we have raised $10 million of equity capital after October 31, 2016. As of May 14, 2018, we have sold 1,276,007 shares of common stock pursuant to our IPO at a price of $8.00 per share for gross proceeds of $10,208,056. However, only $7,007,024 of this amount has been raised during the measurement period beginning November 1, 2016. Thus, we still need to raise $2,992,976 of additional equity capital prior to the remaining $5.0 million under the Dow Facility becoming available to us. As of May 14, 2018, we had cash on hand of $1,660,600. We believe our cash from increasing commercial sales activity and various financing sources will fund our operations for at least the next 12 months. We intend that the primary means for raising funds will be through our IPO and the additional $5 million of proceeds from the Dow Facility that becomes available to us after we have raised another $3 million of equity capital as noted above; however, we can make no assurances that we will raise such equity capital and be able to access the additional $5 million under the Dow Facility. Taking into account our current cash position as noted above, an additional $3 million in proceeds from our IPO, which would allow us to draw up to $5 million from the Dow Facility, we believe that we can fund our operations including planned capital expenditures for at least the next 12 months. In addition, two of our shareholders have committed to provide up to $4.5 million in funding for the twelve-month period ended March 31, 2019 to the extent the Company is unable to raise such funds from other third parties. In the event we are unable to fund our operations from existing cash on hand, operating cash flows, additional borrowings or raising equity capital, we may be forced to reduce our expenses, slow down our growth rate, or discontinue operations. Our condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern. Use of Estimates The preparation of our condensed consolidated financial statements in conformity with GAAP requires us to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, together with amounts disclosed in the related notes to the financial statements. Actual results and outcomes may differ from our estimates, judgments and assumptions. Significant estimates, judgments and assumptions used in these condensed consolidated financial statements include, but are not limited to, those related to revenue, accounts receivable and related allowances, contingencies, useful lives and recovery of long-term assets, including intangible assets, income taxes, and the fair value of stock-based compensation. These estimates, judgments, and assumptions are reviewed periodically and the effects of material revisions in estimates are reflected in the financial statements prospectively from the date of the change in estimate. Inventory Inventory consists of raw materials, work-in-process and finished goods, all of which are stated at the lower of cost or market. Cost is determined on a first in, first out basis. The following amounts were included in inventory at the end of the period: March 31, December 31, 2018 2017 Raw materials $ 79,581 $ 39,841 Finished goods 130,130 132,023 Total $ 209,711 $ 171,864 Derivative Financial Instruments We do not use derivative instruments to hedge exposures to cash flow, market or foreign currency risk. The terms of convertible preferred stock and convertible notes that we issue are reviewed to determine whether or not they contain embedded derivative instruments that are required by ASC 815: “Derivatives and Hedging” to be accounted for separately from the host contract and recorded at fair value. In addition, freestanding warrants are also reviewed to determine if they achieve equity classification. Certain stock warrants that we issued did not meet the conditions for equity classification at inception and were classified as derivative instrument liabilities measured at fair value. In July 2017, the FASB issued Accounting Standards Update No. 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities From Equity (Topic 480), Derivatives and Hedging (Topic 815) (“ASU 2017-11”). This update changes the classification analysis of certain equity-linked financial instruments with down-round features. We elected to early adopt ASU 2017-11 at September 30, 2017 by applying the standard retrospectively to outstanding financial instruments with a down round feature by means of a cumulative-effect adjustment to the Company’s beginning accumulated deficit as of January 1, 2017. There were 972,720, warrants indexed to Series A Preferred Stock which were originally recorded as derivative liabilities because of their anti-dilution features. We chose to early adopt ASU 2017-11 because it permitted these warrants to be recorded as equity rather than derivative liabilities. The impact to the financial statements for the three months ended March 31, 2017 is as follows: For three months ended March 31, 2017 As previously As reported Adjusted Operating loss $ (1,465,882 ) $ (1,465,882 ) Other income (expense): Incentive refund and interest income 368 368 Interest expense, net (59,480 ) (59,480 ) Gain from change in fair value of derivative warrants 154,652 29,171 Total other income (expense) 95,540 (29,941 ) Net loss $ (1,370,342 ) $ (1,495,823 ) Fair Value Measurements The Company utilizes a valuation hierarchy that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques related to its financial assets and financial liabilities in accordance to Accounting Standards Codification (“ASC”) Topic 820 Fair Value Measurements and Disclosures. For financial instruments such as cash, accounts payable and other current liabilities, the Company considers the recorded value of such financial instruments approximate to the current fair value because of their short-term nature. Recent Accounting Pronouncements ASU No. 2014-09 (ASC 606), Revenue from Contracts with Customers became effective for us beginning with the first quarter of 2018, and we adopted the new accounting standard using the modified retrospective transition approach. The modified retrospective transition approach recognized any changes from the beginning of the year of initial application through retained earnings with no restatement of comparative periods. We will record revenue under ASC 606 at a single point in time, when control is transferred to the customer, which is consistent with past practice. We will continue to apply our current business processes, policies, systems and controls to support recognition and disclosure under the new standard. Based on the results of the evaluation, we have determined that the adoption of the new standard presents no material impact on our consolidated financial statements. Application of the transition requirements of the new standard did not have a material impact on opening retained earnings.

WARRANTS AND FINANCING AGREEMEN

WARRANTS AND FINANCING AGREEMENTS	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
WARRANTS AND FINANCING AGREEMENTS	Dow Facility In December 2016, we entered into the Dow Facility which provides us with up to $10 million of secured debt financing at an interest rate of 5% per year, drawable at our request under certain conditions. We received $2 million at closing and an additional $1 million on July 18, 2017, September 22, 2017 and December 4, 2017, respectively. An additional $5 million becomes available once we have raised $10 million of equity capital after October 31, 2016; however, we can make no assurances that we will raise such equity capital and be able to access the additional $5 million under the Dow Facility. As of May 14, 2018, we have sold 1,276,007 shares of common stock pursuant to our IPO at a price of $8.00 per share for gross proceeds of $10,208,056. However, only $7,007,024 of this amount has been raised during the measurement period beginning November 1, 2016. Thus, we still need to raise $2,992,976 of equity capital prior to the remaining $5.0 million under the Dow Facility becoming available to us. The Dow Facility is senior to most of our other debt and is secured by all of our assets (Dow is subordinate only to the capital leases with Aspen Advanced Opportunity Fund, LP (“AAOF”). The loan matures on December 1, 2021 (subject to certain mandatory prepayments based on our equity financing activities). Interest is payable beginning January 1, 2017 although we may elect to capitalize interest through January 1, 2019. Dow received warrant coverage of one share of common stock for each $40 in loans received by us, equating to 20% warrant coverage, with an exercise price of $8.00 per share for the warrants issued at closing of the initial $2 million draw. After the initial closing, the strike price of future warrants issued is subject to adjustment if we sell shares of common stock at a lower price. As of March 31, 2018, we had issued 125,000 warrants to Dow, which are exercisable on or before the expiration date of December 1, 2023. The aforementioned warrants meet the criteria for classification within stockholders’ equity. Proceeds were allocated between the debt and the warrants at their relative fair value. During the fiscal year ended December 31, 2017, we recognized amortization expense of $161,702, and the resulting carrying value of the Dow Facility on our balance sheet as of December 31, 2017 was $4,794,596. During the three months ended March 31, 2018, we recognized amortization expense of $75,118, and the resulting carrying value of the Dow Facility on our balance sheet as of March 31, 2018 was $4,869,714.

STOCK WARRANTS ACCOUNTED FOR AS

STOCK WARRANTS ACCOUNTED FOR AS EQUITY INSTRUMENTS	3 Months Ended
	Mar. 31, 2018
Equity [Abstract]
STOCK WARRANTS ACCOUNTED FOR AS EQUITY INSTRUMENTS	NOTE 4 – STOCK WARRANTS ACCOUNTED FOR AS EQUITY INSTRUMENTS The following table summarizes the warrants (including the warrants previously accounted for as derivatives) outstanding at March 31, 2018, which are accounted for as equity instruments, all of which are exercisable: Date Issued Expiration Date Indexed Exercise Price Number of 07/01/2009 07/01/2019 Common $ 8.00 6,000 10/08/2012 10/08/2027 Common $ 12.00 5,000 01/15/2014 – 12/31/2014 01/15/2024 Series A Convertible Preferred $ 6.40 972,720 04/30/2015- 05/26/2015 04/30/2022 Common $ 16.00 218,334 06/30/2015 06/30/2022 Common $ 16.00 6,563 12/31/2015 12/31/2020 Common $ 8.00 20,625 03/31/2016 03/31/2021 Common $ 10.00 10,600 04/30/2016 04/30/2021 Common $ 10.00 895 12/14/2016 12/01/2023 Common $ 8.00 50,000 07/18/2017 12/01/2023 Common $ 8.00 25,000 09/22/2017 12/01/2023 Common $ 8.00 25,000 12/04/2017 12/01/2023 Common $ 8.00 25,000 1,365,737 The warrants indexed to Series A Convertible Preferred Stock are currently exercisable and are exchangeable into 1.875 shares of common stock.

STOCKHOLDERS' EQUITY (DEFICIT)

STOCKHOLDERS' EQUITY (DEFICIT)	3 Months Ended
	Mar. 31, 2018
Stockholders' Equity Note [Abstract]
STOCKHOLDERS' EQUITY (DEFICIT)	NOTE 5 — STOCKHOLDERS’ EQUITY (DEFICIT) Common Stock The Company is authorized to issue 25,000,000 shares of common stock, no par value per share of which 2,555,275 and 2,353,350 shares were issued and outstanding as of March 31, 2018 and December 31, 2017, respectively. During the three months ended March 31, 2018, the Company issued 201,925 shares of common stock pursuant to the Offering. As of May 14, 2018, the Company has sold 1,276,007 shares of common stock in its IPO at a price of $8.00 per share for gross proceeds of $10,208,056. Series A Convertible Preferred Stock The Company is authorized to issue up to 3,000,000 shares of Series A Convertible Preferred Stock (the “Series A Preferred”). Each share of the Series A Preferred, which has a liquidation preference of $12.00 per share, is convertible at any time, at the option of the holder, into one share of Common Stock at the lower of: (a) $12.00 per share, or (b) 80% of the price at which the Company sells any equity or equity-linked securities in the future. The Series A Preferred also contains typical anti-dilution provisions that provide for adjustment of the conversion price to reflect stock splits, stock dividends, or similar events. The Series A Preferred is subject to mandatory conversion into Common Stock upon the listing of the Company’s common stock on a Qualified National Exchange. However, the Series A Preferred is not subject to the mandatory conversion until all outstanding convertible securities are also converted into common stock. The Series A Preferred ranks senior to all other equity or equity equivalent securities of the Company other than those securities which are explicitly senior or pari passu in rights and liquidation preference to the Series A Preferred and pari passu with the Company’s Series B Preferred Stock. The Company issued 1,456,126 shares of Series A Preferred in connection with the conversion of certain convertible notes on December 31, 2015. In December 2015, the conversion price of the Series A Preferred was reduced from $12.00 to $6.40 (80% of $8.00), and thus, each share of Series A Preferred Stock is convertible into 1.875 shares of common stock. As of March 31, 2018, and December 31, 2017, the Company had 1,864,956 and 1,857,816 shares of Series A Preferred Stock issued and outstanding, respectively. Series B Convertible Preferred Stock As of March 31, 2018, and December 31, 2017, 1,500,000 shares have been designated as Series B Convertible Preferred Stock (“Series B Preferred”), of which no shares were issued and outstanding. Each share of the Series B Preferred, which has a liquidation preference of $16.00 per share, is convertible at any time, at the option of the holder, into one share of common stock at $16.00 per share. The Series B Preferred also contains typical anti-dilution provisions that provide for adjustment of the conversion price to reflect stock splits, stock dividends, or similar events. Each share of Series B Preferred is subject to mandatory conversion into common stock at the then-effective Series B conversion rate upon the public listing by the Company of its common stock on a Qualified National Exchange. However, the Series B Preferred is not subject to the mandatory conversion until all outstanding convertible securities are also converted into common stock. The Series B Preferred ranks senior to all other equity or equity equivalent securities of the Company other than those securities which are explicitly senior or pari passu in rights and liquidation preference to the Series B Preferred and pari passu with the Company’s Series A Preferred.

EQUITY INCENTIVE PLAN

EQUITY INCENTIVE PLAN	3 Months Ended
	Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
EQUITY INCENTIVE PLAN	NOTE 6 – EQUITY INCENTIVE PLAN We previously established the 2007 Stock Option Plan (the “2007 Plan”), which was scheduled to expire on October 30, 2017 and under which we granted key employees and directors options to purchase shares of our common stock at not less than fair market value as of the grant date. On May 4, 2017, the Board approved the 2017 Equity Incentive Plan (the “2017 Plan”) to replace the 2007 Plan, which became effective upon the approval of the stockholders holding a majority of the voting power in the Company on July 18, 2017. The 2017 Plan replaced the 2007 Plan and authorizes us to grant awards (stock options and restricted stock) up to a maximum of 1,200,000 shares of our common stock. On July 24, 2017, certain stock options from the 2007 Plan were cancelled and replacement stock options were awarded. The replacement stock option awards have an exercise price of $8.00 per share and a seven-year term. Fifty percent of such awards vested on the date of grant with the remaining vesting over a 4-year period, subject to certain other terms. Each option holder received options equal to 150% of the number of cancelled stock options. On August 10, 2017, the Company granted stock options and restricted stock to each of its Board members as part of its Board compensation package. Each of the 4 independent Board members received 2,500 stock options and 2,500 shares of restricted stock for Board services. The options were granted at a price of $8.00 per share and had an aggregate grant date fair value of $26,120. The options vest ratably over a four-year period beginning on the one-year anniversary. The restricted stock issued to the Board members has an aggregate fair value of $80,000 and vest ratably in arrears over four quarters on the last day of each fiscal quarter following the grant date. As of March 31, 2018, 7,500 shares of restricted stock had vested, resulting in total compensation expense of $60,000. A summary of the stock option activity for the three months ended March 31, 2018 is as follows: Weighted Number Average Of Exercise Options Price Options outstanding at December 31, 2017 677,125 $ 8.00 Changes during the period: Expired — — New Options Granted – at market price 10,000 8.00 Exercised — — Options outstanding at March 31, 2018 687,125 $ 8.00 Options exercisable at March 31, 2018 337,158 $ 8.00 All options granted thus far under the 2017 Plan have an exercise price of $8.00 per share and vesting of the options ranges from immediate to 20% per year, with most options vesting on a straight-line basis over a four-year period from the date of grant. The options expire in seven years from the date of grant. During the three months ended March 31, 2018, the Company granted 10,000 employee stock options with an aggregate grant date fair value of $28,755. The fair value of the options granted was estimated on the date of grant using the Black Scholes option-pricing model using the following assumptions: Stock price: $8.00, Exercise Price: $8.00, Expected Term: 4.75, Volatility: 37.34%, Risk free rate: 2.65%, Dividend rate: 0%. As of March 31, 2018, 687,125 stock options and 10,000 shares of restricted stock awards were outstanding under our 2017 Plan. Stock-based compensation expense was $87,764 and $88,370 for the three months ended March 31, 2018 and 2017, respectively. As of March 31, 2018 there was approximately $895,00 in unrecognized compensation cost related to the options granted under the 2017 plan.

CAPITAL LEASES

CAPITAL LEASES	3 Months Ended
	Mar. 31, 2018
Capital Leases of Lessee [Abstract]
CAPITAL LEASES	NOTE 7 – CAPITAL LEASES As of March 31, 2018, and December 31, 2017, we have capital lease obligations as follows: March 31, 2018 December 31, 2017 Capital lease obligations $ 114,970 $ 149,120 Unamortized warrant discount (8,346 ) (15,040 ) Net obligations 106,624 134,080 Short-term portion of obligations (91,985 ) (118,553 ) Long-term portion of obligations $ 14,639 $ 15,527

CUSTOMER, SUPPLIER, COUNTRY AND

CUSTOMER, SUPPLIER, COUNTRY AND PRODUCT CONCENTRATIONS	3 Months Ended
	Mar. 31, 2018
Risks and Uncertainties [Abstract]
CUSTOMER, SUPPLIER, COUNTRY AND PRODUCT CONCENTRATIONS	NOTE 8 — Customer, Supplier, country, and Product Concentrations Grants and Licensing Revenue Concentration There was no licensing or grant revenue to report during the first quarter of 2018. Two grantors accounted for 94% and 6% respectively of total grant revenue reported during the first quarter of 2017. The company’s licensing revenue in the first quarter of 2017 came from one licensor. Product Concentration During the first quarter of 2018 and 2017, we had concentrations of product revenue from only one product that was greater than 10% of total product revenues. Revenue from one of the Company’s graphene nanoplatelets materials, Grade C 500 m 2 Customer Concentration During the first quarter of 2018, we had one customer whose purchases accounted for 83% of total product revenues. During the first quarter of 2017 we had two customers that represented 29% and 22 % of total product revenues. At March 31, 2018 and 2017, there were two customers who each had an accounts receivable balance greater than 10% of our total outstanding receivable balance. Country Concentration We sell our products on a worldwide basis. Revenue derived from customers outside of the U.S. during the first quarter of 2018 was 3% as compared with 40% during the first quarter of 2017. All of these sales are denominated in U.S. dollars. As of March 31, 2018, there were no foreign countries with greater than 10% of product revenue. During the quarter ended March 31, 2017, two countries, the United Kingdom and South Korea accounted for approximately 24% and 16%, respectively, of total product revenue. Suppliers We buy raw materials used in manufacturing from several sources. These materials are available from a large number of sources. A change in suppliers has no material effect on the Company’s operations. We did not have purchases from any suppliers that were greater than 10% of total purchases during the quarters ended March 31, 2018 and 2017.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2018
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 9 - RELATED PARTY TRANSACTIONS We have a licensing agreement for exclusive use of patents and pending patents with Michigan State University (“MSU”), a shareholder of the Company via the MSU Foundation. We incurred $12,500 of licensing expense in each of the three month periods ended March 31, 2018 and 2017. We have also entered into product licensing agreements with certain other shareholders. No royalty revenue or expenses have been recognized related to these agreements during the three months ended March 31, 2018. For the three months ended March 31, 2017, $25,000 of royalty revenue was recorded from POSCO, a shareholder. During each of the three months ended March 31, 2018 and 2017 we issued 7,140 shares of Series A Preferred Stock to AAOF as payment for lease financing obligations under the terms of the Master Lease Agreement, dated March 18, 2013.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2018
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 10 – SUBSEQUENT EVENTS During the period from April 1 through May 14, 2018, we received common stock proceeds of $858,000 for the sale of 107,250 shares of common stock in our IPO.

SUMMARY OF SIGNIFICANT ACCOUN17

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Liquidity	Liquidity We have historically incurred losses from operations and we may continue to generate negative cash flows as we implement our business plan. Our condensed consolidated financial statements are prepared using US GAAP as applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. We filed a Registration Statement on Form S-1 (File No. 333-209131) with the SEC on April 11, 2016 which was declared effective by the SEC on April 13, 2016 (as amended, the “Registration Statement”). The Registration Statement registered up to 3,000,000 shares of common stock at a fixed price of $8.00 per share to the general public in a self-underwritten offering (the “Offering” or our “IPO”). Post-Effective Amendment No. 1 to the Registration Statement was declared effective August 26, 2016, Post-Effective Amendment No. 2 was declared effective August 31, 2016, Post-Effective Amendment No. 3 was declared effective January 17, 2017, and Post-Effective Amendments No. 4 and No. 5 were dated April 12, 2017. Post-Effective Amendment No. 5 was In December 2016, we entered into a draw loan note and agreement (the “Dow Facility”) with The Dow Chemical Company (“Dow”) to provide up to $10 million of secured debt financing at an interest rate of 5% per year, drawable at our request under certain conditions. As of May 14, 2018, we had drawn $5.0 million under the Dow Facility. The remaining $5 million will become available to us once we have raised $10 million of equity capital after October 31, 2016. As of May 14, 2018, we have sold 1,276,007 shares of common stock pursuant to our IPO at a price of $8.00 per share for gross proceeds of $10,208,056. However, only $7,007,024 of this amount has been raised during the measurement period beginning November 1, 2016. Thus, we still need to raise $2,992,976 of additional equity capital prior to the remaining $5.0 million under the Dow Facility becoming available to us. As of May 14, 2018, we had cash on hand of $1,660,600. We believe our cash from increasing commercial sales activity and various financing sources will fund our operations for at least the next 12 months. We intend that the primary means for raising funds will be through our IPO and the additional $5 million of proceeds from the Dow Facility that becomes available to us after we have raised another $3 million of equity capital as noted above; however, we can make no assurances that we will raise such equity capital and be able to access the additional $5 million under the Dow Facility. Taking into account our current cash position as noted above, an additional $3 million in proceeds from our IPO, which would allow us to draw up to $5 million from the Dow Facility, we believe that we can fund our operations including planned capital expenditures for at least the next 12 months. In addition, two of our shareholders have committed to provide up to $4.5 million in funding for the twelve-month period ended March 31, 2019 to the extent the Company is unable to raise such funds from other third parties. In the event we are unable to fund our operations from existing cash on hand, operating cash flows, additional borrowings or raising equity capital, we may be forced to reduce our expenses, slow down our growth rate, or discontinue operations. Our condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern.
Use of Estimates	Use of Estimates The preparation of our condensed consolidated financial statements in conformity with GAAP requires us to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, together with amounts disclosed in the related notes to the financial statements. Actual results and outcomes may differ from our estimates, judgments and assumptions. Significant estimates, judgments and assumptions used in these condensed consolidated financial statements include, but are not limited to, those related to revenue, accounts receivable and related allowances, contingencies, useful lives and recovery of long-term assets, including intangible assets, income taxes, and the fair value of stock-based compensation. These estimates, judgments, and assumptions are reviewed periodically and the effects of material revisions in estimates are reflected in the financial statements prospectively from the date of the change in estimate.
Inventory	Inventory Inventory consists of raw materials, work-in-process and finished goods, all of which are stated at the lower of cost or market. Cost is determined on a first in, first out basis. The following amounts were included in inventory at the end of the period: March 31, December 31, 2018 2017 Raw materials $ 79,581 $ 39,841 Finished goods 130,130 132,023 Total $ 209,711 $ 171,864
Derivative Financial Instruments	Derivative Financial Instruments We do not use derivative instruments to hedge exposures to cash flow, market or foreign currency risk. The terms of convertible preferred stock and convertible notes that we issue are reviewed to determine whether or not they contain embedded derivative instruments that are required by ASC 815: “Derivatives and Hedging” to be accounted for separately from the host contract and recorded at fair value. In addition, freestanding warrants are also reviewed to determine if they achieve equity classification. Certain stock warrants that we issued did not meet the conditions for equity classification at inception and were classified as derivative instrument liabilities measured at fair value. In July 2017, the FASB issued Accounting Standards Update No. 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities From Equity (Topic 480), Derivatives and Hedging (Topic 815) (“ASU 2017-11”). This update changes the classification analysis of certain equity-linked financial instruments with down-round features. We elected to early adopt ASU 2017-11 at September 30, 2017 by applying the standard retrospectively to outstanding financial instruments with a down round feature by means of a cumulative-effect adjustment to the Company’s beginning accumulated deficit as of January 1, 2017. There were 972,720, warrants indexed to Series A Preferred Stock which were originally recorded as derivative liabilities because of their anti-dilution features. We chose to early adopt ASU 2017-11 because it permitted these warrants to be recorded as equity rather than derivative liabilities. The impact to the financial statements for the three months ended March 31, 2017 is as follows: For three months ended March 31, 2017 As previously As reported Adjusted Operating loss $ (1,465,882 ) $ (1,465,882 ) Other income (expense): Incentive refund and interest income 368 368 Interest expense, net (59,480 ) (59,480 ) Gain from change in fair value of derivative warrants 154,652 29,171 Total other income (expense) 95,540 (29,941 ) Net loss $ (1,370,342 ) $ (1,495,823 )
Fair Value Measurements	Fair Value Measurements The Company utilizes a valuation hierarchy that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques related to its financial assets and financial liabilities in accordance to Accounting Standards Codification (“ASC”) Topic 820 Fair Value Measurements and Disclosures. For financial instruments such as cash, accounts payable and other current liabilities, the Company considers the recorded value of such financial instruments approximate to the current fair value because of their short-term nature.
Recent Accounting Pronouncements	Recent Accounting Pronouncements ASU No. 2014-09 (ASC 606), Revenue from Contracts with Customers became effective for us beginning with the first quarter of 2018, and we adopted the new accounting standard using the modified retrospective transition approach. The modified retrospective transition approach recognized any changes from the beginning of the year of initial application through retained earnings with no restatement of comparative periods. We will record revenue under ASC 606 at a single point in time, when control is transferred to the customer, which is consistent with past practice. We will continue to apply our current business processes, policies, systems and controls to support recognition and disclosure under the new standard. Based on the results of the evaluation, we have determined that the adoption of the new standard presents no material impact on our consolidated financial statements. Application of the transition requirements of the new standard did not have a material impact on opening retained earnings.

SUMMARY OF SIGNIFICANT ACCOUN18

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Schedule of inventory	The following amounts were included in inventory at the end of the period: March 31, December 31, 2018 2017 Raw materials $ 79,581 $ 39,841 Finished goods 130,130 132,023 Total $ 209,711 $ 171,864
Schedule of financial statements	The impact to the financial statements for the three months ended March 31, 2017 is as follows: For three months ended March 31, 2017 As previously As reported Adjusted Operating loss $ (1,465,882 ) $ (1,465,882 ) Other income (expense): Incentive refund and interest income 368 368 Interest expense, net (59,480 ) (59,480 ) Gain from change in fair value of derivative warrants 154,652 29,171 Total other income (expense) 95,540 (29,941 ) Net loss $ (1,370,342 ) $ (1,495,823 )

STOCK WARRANTS ACCOUNTED FOR 19

STOCK WARRANTS ACCOUNTED FOR AS EQUITY INSTRUMENTS (Tables)	3 Months Ended
	Mar. 31, 2018
Equity [Abstract]
Schedule of common stock warrants (including the warrants previously accounted for as derivatives) outstanding	The following table summarizes the warrants (including the warrants previously accounted for as derivatives) outstanding at March 31, 2018, which are accounted for as equity instruments, all of which are exercisable: Date Issued Expiration Date Indexed Exercise Price Number of 07/01/2009 07/01/2019 Common $ 8.00 6,000 10/08/2012 10/08/2027 Common $ 12.00 5,000 01/15/2014 – 12/31/2014 01/15/2024 Series A Convertible Preferred $ 6.40 972,720 04/30/2015- 05/26/2015 04/30/2022 Common $ 16.00 218,334 06/30/2015 06/30/2022 Common $ 16.00 6,563 12/31/2015 12/31/2020 Common $ 8.00 20,625 03/31/2016 03/31/2021 Common $ 10.00 10,600 04/30/2016 04/30/2021 Common $ 10.00 895 12/14/2016 12/01/2023 Common $ 8.00 50,000 07/18/2017 12/01/2023 Common $ 8.00 25,000 09/22/2017 12/01/2023 Common $ 8.00 25,000 12/04/2017 12/01/2023 Common $ 8.00 25,000 1,365,737

EQUITY INCENTIVE PLAN (Tables)

EQUITY INCENTIVE PLAN (Tables)	3 Months Ended
	Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of summary of the stock option activity	A summary of the stock option activity for the three months ended March 31, 2018 is as follows: Weighted Number Average Of Exercise Options Price Options outstanding at December 31, 2017 677,125 $ 8.00 Changes during the period: Expired — — New Options Granted – at market price 10,000 8.00 Exercised — — Options outstanding at March 31, 2018 687,125 $ 8.00 Options exercisable at March 31, 2018 337,158 $ 8.00

CAPITAL LEASES (Tables)

CAPITAL LEASES (Tables)	3 Months Ended
	Mar. 31, 2018
Capital Leases of Lessee [Abstract]
Schedule of capital lease obligations	As of March 31, 2018, and December 31, 2017, we have capital lease obligations as follows: March 31, 2018 December 31, 2017 Capital lease obligations $ 114,970 $ 149,120 Unamortized warrant discount (8,346 ) (15,040 ) Net obligations 106,624 134,080 Short-term portion of obligations (91,985 ) (118,553 ) Long-term portion of obligations $ 14,639 $ 15,527

SUMMARY OF SIGNIFICANT ACCOUN22

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Raw materials	$ 79,581	$ 39,841
Finished goods	130,130	132,023
Total	$ 209,711	$ 171,864

SUMMARY OF SIGNIFICANT ACCOUN23

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Operating loss	$ (1,792,179)	$ (1,465,882)
Other income (expense):
Incentive refund and interest income	3,253	(24)
Interest expense, net	(85,169)	(59,088)
Gain from change in fair value of derivative warrants		29,171
Total other income (expense)	(81,916)	(29,941)
Net loss	$ (1,874,095)	(1,495,823)
Scenario, Previously Reported [Member]
Operating loss		(1,465,882)
Other income (expense):
Incentive refund and interest income		368
Interest expense, net		(59,480)
Gain from change in fair value of derivative warrants		154,652
Total other income (expense)		95,540
Net loss		(1,370,342)
As Adjusted [Member]
Operating loss		(1,465,882)
Other income (expense):
Incentive refund and interest income		368
Interest expense, net		(59,480)
Gain from change in fair value of derivative warrants		29,171
Total other income (expense)		(29,941)
Net loss		$ (1,495,823)

SUMMARY OF SIGNIFICANT ACCOUN24

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	May 14, 2018	Apr. 13, 2016	Dec. 31, 2016	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
Cash on hand			$ 1,785,343	$ 2,285,117	$ 2,845,798	$ 1,148,681
Proceeds from capital contribution				4,500,000
Series A Preferred stock [Member]
Derivative liability				972,720
Subsequent Event [Member]
Cash on hand	$ 1,660,600
The Dow Chemical Company [Member]
Equity capital raise amount				$ 5,000,000
Description of raising fund				Additional $5 million becomes available under the Dow Facility if we have raised $10 million of equity capital after October 31, 2016.
Draw Loan Note And Agreement [Member] | Senior Secured Debt Financing [Member] | The Dow Chemical Company [Member]
Face amount			$ 10,000,000	$ 4,869,714	$ 4,794,596
Interest rate (in percent)			5.00%
Equity capital raise amount			$ 7,007,024	$ 2,992,976
Description of raising fund			The remaining $5 million will become available to us once we have raised $10 million of equity capital after October 31, 2016.
Draw Loan Note And Agreement [Member] | Senior Secured Debt Financing [Member] | The Dow Chemical Company [Member] | Subsequent Event [Member]
Equity capital raise amount	$ 5,000,000
IPO [Member]
Number of shares issued in offering		3,000,000		201,925
Price per share (in dollars per share)		$ 8
IPO [Member] | Subsequent Event [Member]
Number of shares issued in offering	1,276,007
Price per share (in dollars per share)	$ 8
Gross proceeds from issued in offering	$ 10,208,056

WARRANTS AND FINANCING AGREEM25

WARRANTS AND FINANCING AGREEMENTS (Details Narrative) - USD ($)	May 14, 2018	Dec. 04, 2017	Sep. 22, 2017	Jul. 18, 2017	Apr. 13, 2016	Dec. 31, 2016	Mar. 31, 2018	Dec. 31, 2017
IPO [Member]
Number of shares issued in offering					3,000,000		201,925
Price per share (in dollars per share)					$ 8
Subsequent Event [Member] | IPO [Member]
Number of shares issued in offering	1,276,007
Price per share (in dollars per share)	$ 8
Proceeds from issuance initial public offering	$ 10,208,056
The Dow Chemical Company [Member]
Description of raising fund							Additional $5 million becomes available under the Dow Facility if we have raised $10 million of equity capital after October 31, 2016.
Equity capital raise amount							$ 5,000,000
Draw Loan Note And Agreement [Member] | Senior Secured Debt Financing [Member] | The Dow Chemical Company [Member]
Face amount						$ 10,000,000	4,869,714	$ 4,794,596
Proceeds from secured debt		$ 1,000,000	$ 1,000,000	$ 1,000,000		$ 2,000,000
Amortization expense of debt							$ 75,118	$ 161,702
Description of raising fund						The remaining $5 million will become available to us once we have raised $10 million of equity capital after October 31, 2016.
Number of shares purchased (in shares)							125,000
Description of conversion terms							Interest is payable beginning January 1, 2017 although we may elect to capitalize interest through January 1, 2019. Dow received warrant coverage of one share of common stock for each $40 in loans received by us, equating to 20% warrant coverage, with an exercise price of $8.00 per share for the warrants issued at closing of the initial $2 million draw.
Interest rate (in percent)						5.00%
Maturity date							Dec. 1, 2021
Equity capital raise amount						$ 7,007,024	$ 2,992,976
Draw Loan Note And Agreement [Member] | Senior Secured Debt Financing [Member] | The Dow Chemical Company [Member] | Subsequent Event [Member]
Equity capital raise amount	$ 5,000,000

STOCK WARRANTS ACCOUNTED FOR 26

STOCK WARRANTS ACCOUNTED FOR AS EQUITY INSTRUMENTS (Details)	3 Months Ended
	Mar. 31, 2018$ / sharesshares
Number of Warrants	1,365,737
Warrant [Member]
Date Issued	Jul. 1, 2009
Expiration Date	Jul. 1, 2019
Exercise Price | $ / shares	$ 8
Indexed stock	Common
Number of Warrants	6,000
Warrant 1 [Member]
Date Issued	Oct. 8, 2012
Expiration Date	Oct. 8, 2027
Exercise Price | $ / shares	$ 12
Indexed stock	Common
Number of Warrants	5,000
Warrant 2 [Member]
Expiration Date	Jan. 15, 2024
Exercise Price | $ / shares	$ 6.40
Indexed stock	Series A Convertible Preferred
Number of Warrants	972,720
Warrant 2 [Member] | Minimum [Member]
Date Issued	Jan. 15, 2014
Warrant 2 [Member] | Maximum [Member]
Date Issued	Dec. 31, 2014
Warrant 3 [Member]
Expiration Date	Apr. 30, 2022
Exercise Price | $ / shares	$ 16
Indexed stock	Common
Number of Warrants	218,334
Warrant 3 [Member] | Minimum [Member]
Date Issued	Apr. 30, 2015
Warrant 3 [Member] | Maximum [Member]
Date Issued	May 26, 2015
Warrant 4 [Member]
Date Issued	Jun. 30, 2015
Expiration Date	Jun. 30, 2022
Exercise Price | $ / shares	$ 16
Indexed stock	Common
Number of Warrants	6,563
Warrant 5 [Member]
Date Issued	Dec. 31, 2015
Expiration Date	Dec. 31, 2020
Exercise Price | $ / shares	$ 8
Indexed stock	Common
Number of Warrants	20,625
Warrant 6 [Member]
Date Issued	Mar. 31, 2016
Expiration Date	Mar. 31, 2021
Exercise Price | $ / shares	$ 10
Indexed stock	Common
Number of Warrants	10,600
Warrant 7 [Member]
Date Issued	Apr. 30, 2016
Expiration Date	Apr. 30, 2021
Exercise Price | $ / shares	$ 10
Indexed stock	Common
Number of Warrants	895
Warrant 8 [Member]
Date Issued	Dec. 14, 2016
Expiration Date	Dec. 1, 2023
Exercise Price | $ / shares	$ 8
Indexed stock	Common
Number of Warrants	50,000
Warrant 9 [Member]
Date Issued	Jul. 18, 2017
Expiration Date	Dec. 1, 2023
Exercise Price | $ / shares	$ 8
Indexed stock	Common
Number of Warrants	25,000
Warrant 10 [Member]
Date Issued	Sep. 22, 2017
Expiration Date	Dec. 1, 2023
Exercise Price | $ / shares	$ 8
Indexed stock	Common
Number of Warrants	25,000
Warrant 11 [Member]
Date Issued	Dec. 4, 2017
Expiration Date	Dec. 1, 2023
Exercise Price | $ / shares	$ 8
Indexed stock	Common
Number of Warrants	25,000

STOCKHOLDERS' EQUITY (DEFICIT)

STOCKHOLDERS' EQUITY (DEFICIT) (Details Narrative) - USD ($)	May 14, 2018	Apr. 13, 2016	Mar. 31, 2018	Dec. 31, 2015	Dec. 31, 2017
Common stock, authorized			25,000,000		25,000,000
Common stock, issued			2,555,275		2,353,350
Common stock, outstanding			2,555,275		2,353,350
IPO [Member]
Number of shares issued in offering		3,000,000	201,925
Price per share (in dollars per share)		$ 8
IPO [Member] | Subsequent Event [Member]
Number of shares issued in offering	1,276,007
Price per share (in dollars per share)	$ 8
Proceeds from issuance initial public offering	$ 10,208,056
Series A Convertible Preferred Stock [Member]
Preferred stock, authorized			3,000,000		3,000,000
Liquidation (in dollars per share)			$ 12
Description of conversion of stock			one share of Common Stock at the lower of: (a) $12.00 per share, or (b) 80% of the price at which the Company sells any equity or equity-linked securities in the future.	Series A Preferred was reduced from $12.00 to $6.40 (80% of $8.00), and thus, each share of Series A Preferred Stock is convertible into 1.875 shares of common stock.
Conversion price (in dollars per share)			$ 12
Reduction in share price (in dollars per share)				$ 6.40
Exercise price (in dollars per share)				$ 8
Preferred stock, issued			1,864,956		1,857,816
Preferred stock, outstanding			1,864,956		1,857,816
Number of shares issued				1,456,126
Series A Convertible Preferred Stock [Member] | Aspen Advance Opportunity Fund, LP [Member] | Master Leasing Agreement [Member]
Number of shares issued			7,140
Preferred stock (B) [Member]
Preferred stock, authorized			1,500,000		1,500,000
Liquidation (in dollars per share)			$ 16
Conversion price (in dollars per share)			$ 16
Preferred stock, issued			0		0
Preferred stock, outstanding			0		0

EQUITY INCENTIVE PLAN (Details)

EQUITY INCENTIVE PLAN (Details)	3 Months Ended
	Mar. 31, 2018$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options outstanding at beginning of year | shares	677,125
Changes during the year:
Expired | shares
New Options Granted - at market price | shares	10,000
Exercised | shares
Options outstanding at end of Period | shares	687,125
Options exercisable at end of Period | shares	337,158
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [RollForward]
Options outstanding at beginning of year | $ / shares	$ 8
Changes during the year:
Expired | $ / shares
New Options Granted - at market price | $ / shares	8
Exercised | $ / shares
Options outstanding at end of Period | $ / shares	8
Options exercisable at end of Period | $ / shares	$ 8

EQUITY INCENTIVE PLAN (Details

EQUITY INCENTIVE PLAN (Details Narrative) - USD ($)	Aug. 10, 2017	Jul. 24, 2017	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Number of option granted			10,000
Exercise price (in dollars per share)			$ 8
Stock-based compensation expense			$ 87,764	$ 88,370
Proceeds from option granted			$ 28,755
Number of option outstanding			687,125		677,125
Incentive Stock Option Plan [Member]
Vesting percent, per year			20.00%
Description of vesting terms			V esting of the options ranges from immediate to 20% per year, with most options vesting on a straight-line basis over a four-year period from the date of grant.
Description of vesting terms of replacement options			V esting of the options ranges from immediate to 20% per year, with most options vesting on a straight-line basis over a four-year period from the date of grant.
Options expiration year			7 years
2007 Stock Option Plan [Member]
Unrecognized compensation cost			$ 89,500
Description of vesting terms		Fifty percent of such awards vested on the date of grant with the remaining vesting over a 4-year period
Exercise price (in dollars per share)		$ 8
Vesting period		7 years
Description of cancellation terms		Each option holder received options equal to 150% of the number of cancelled stock options.
Stock price			$ 8
Exercise Price			$ 8
Expected Term			4 years 9 months
Dividend rate			0.00%
Volatility			37.34%
Risk free rate			2.65%
2007 Stock Option Plan [Member] | Restricted Stock [Member]
Number of option outstanding			10,000
2007 Stock Option Plan [Member] | Restricted Stock [Member] | Four Diretors [Member]
Number of option granted	2,500
Compensation cost			$ 60,000
Aggregate grant date fair value	$ 80,000
Number of shares vested (in shares)			7,500
2007 Stock Option Plan [Member] | Stock Option [Member]
Number of option outstanding			687,125
2007 Stock Option Plan [Member] | Stock Option [Member] | Four Diretors [Member]
Number of option granted	2,500
Description of vesting terms	The options vest ratably over a four-year period beginning on the one-year anniversary.
Exercise price (in dollars per share)	$ 8
Aggregate grant date fair value	$ 26,120
2007 Stock Option Plan [Member] | Maximum [Member]
Maximum number of options authorized			1,200,000

CAPITAL LEASES (Details)

CAPITAL LEASES (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Capital Leases of Lessee [Abstract]
Capital lease obligations	$ 114,970	$ 149,120
Unamortized warrant discount	(8,346)	(15,040)
Net obligations	106,624	134,080
Short-term portion of obligations	(91,985)	(118,553)
Long-term portion of obligations	$ 14,639	$ 15,527

CUSTOMER, SUPPLIER, COUNTRY A31

CUSTOMER, SUPPLIER, COUNTRY AND PRODUCT CONCENTRATIONS (Details Narrative) - Customer	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Customer Concentration Risk [Member] | Accounts Receivable Greater Than 10% [Member] | Customer [Member]
Number of customers	2
Customer Concentration Risk [Member] | Total Product Revenues [Member] | Customer One [Member]
Concentration of risk	83.00%	29.00%
Customer Concentration Risk [Member] | Total Product Revenues [Member] | Customer Two [Member]
Concentration of risk		22.00%
Product Concentration Risk [Member] | Total Product Revenues [Member] | Product One [Member]
Concentration of risk	83.00%	29.00%
Description of product	Graphene nanoplatelets materials, Grade C 500 m2/g
Grants and Licensing Revenue Concentration [Member] | Total Grant Revenue [Member] | Grantor One [Member]
Concentration of risk		94.00%
Grants and Licensing Revenue Concentration [Member] | Total Grant Revenue [Member] | Grantor Two [Member]
Concentration of risk		6.00%
Country Concentration Risk [Member] | Total Product Revenues [Member] | United Kingdom
Concentration of risk		24.00%
Country Concentration Risk [Member] | Total Product Revenues [Member] | Korea (South), Won
Concentration of risk		16.00%
Country Concentration Risk [Member] | Total Product Revenues [Member] | Foreign [Member]
Concentration of risk	3.00%	40.00%

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
POSCO [Member]
Royalty revenue		$ 25,000
Licensing Agreement [Member] | Michigan State University (Patents and Pending Patents) [Member]
Licensing expenses	$ 12,500	$ 12,500
Master Leasing Agreement [Member] | Aspen Advance Opportunity Fund, LP (AAOF) [Member] | Series A Preferred stock [Member]
Number of shares issued	7,140	7,140

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended
	May 14, 2018	Mar. 31, 2018	Mar. 31, 2017
Proceeds from issuance of common stock		$ 1,615,400	$ 771,800
Subsequent Event [Member]
Number of shares issued	107,250
Proceeds from issuance of common stock	$ 858,000