XG Sciences 10-Q 15 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 15, 2019
Document And Entity Information
Entity Registrant Name	XG SCIENCES INC
Entity Central Index Key	0001435375
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity's Reporting Status Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Common Stock, Shares Outstanding		4,011,943
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2019

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
CURRENT ASSETS
Cash	$ 2,844,498	$ 4,703,834
Accounts receivable, less allowance for doubtful accounts of $85,000 at March 31, 2019 and December 31, 2018	465,853	859,054
Inventories	705,905	660,217
Other current assets	111,177	114,453
Total current assets	4,127,433	6,337,558
PROPERTY, PLANT AND EQUIPMENT, NET	4,246,616	4,223,650
RESTRICTED CASH FOR LETTER OF CREDIT	190,210	190,140
LEASE DEPOSIT	20,156	20,156
INTANGIBLE ASSETS, NET	700,410	690,646
RIGHT OF USE ASSET	1,871,366
TOTAL ASSETS	11,156,191	11,462,150
CURRENT LIABILITIES
Accounts payable	838,069	1,102,910
Other current liabilities	381,260	429,573
Deferred revenue		832
Current portion of long-term debt	723,755	196,723
Current portion of lease liabilities	449,683	3,613
Total current liabilities	2,392,767	1,733,651
LONG-TERM LIABILITIES
Long-term portion of lease liabilities	1,532,112	11,914
Long term debt	4,054,800	4,725,866
Total long-term liabilities	5,586,912	4,737,780
TOTAL LIABILITIES	7,979,679	6,471,431
STOCKHOLDERS' EQUITY
Series A convertible preferred stock, 3,000,000 shares authorized, 1,890,354 shares issued and outstanding, liquidation value of $22,684,248 at March 31, 2019 and December 31, 2018	22,307,480	22,307,480
Common stock, no par value, 25,000,000 shares authorized, 3,811,518 and 3,760,268 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively	30,682,476	30,268,476
Additional paid-in capital	8,190,211	8,101,923
Accumulated deficit	(58,003,655)	(55,687,160)
Total stockholders' equity	3,176,512	4,990,719
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 11,156,191	$ 11,462,150

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 85,000	$ 85,000
Series A convertible preferred stock, authorized	3,000,000	3,000,000
Series A convertible Preferred stock, issued	1,890,354	1,890,354
Series A convertible preferred stock, outstanding	1,890,354	1,890,354
Series A convertible preferred stock liquidation value	$ 22,684,248	$ 22,684,248
Common stock, no par value (in dollars per share)	$ 0	$ 0
Common stock, authorized	25,000,000	25,000,000
Common stock, issued	3,811,518	3,760,268
Common stock, outstanding	3,811,518	3,760,268

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
REVENUE
Total revenue	$ 857,278	$ 886,337
COST OF GOODS SOLD
Direct costs	681,153	468,191
Unallocated manufacturing expenses	493,469	746,583
Total cost of goods sold	1,174,622	1,214,774
GROSS LOSS	(317,344)	(328,437)
OPERATING EXPENSES
Research and development	385,245	277,063
Sales, general and administrative	1,420,922	1,186,679
Total operating expenses	1,806,167	1,463,742
OPERATING LOSS	(2,123,511)	(1,792,179)
OTHER INCOME (EXPENSE)
Interest expense, net	(76,665)	(85,169)
Government incentives, net		3,253
Total other expense	(76,665)	(81,916)
NET LOSS	$ (2,200,176)	$ (1,874,095)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - Basic and diluted (in shares)	3,774,879	2,454,314
NET LOSS PER SHARE - Basic and diluted (in dollars per share)	$ (0.58)	$ (0.76)
Product sales [Member]
REVENUE
Total revenue	$ 857,278	$ 886,337
Grant [Member]
REVENUE
Total revenue	0	0
Licensing revenue [Member]
REVENUE
Total revenue	$ 0	$ 0

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($)	Preferred stock (A)	Common Stock	Additional Paid-In Capital	Accumulated Deficit	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		$ 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	(49,641,639)	1,002,374
Balances at ending (in shares) at Mar. 31, 2018	1,864,956	2,555,275
Balances at beginning at Dec. 31, 2018	$ 22,307,480	$ 30,268,476	8,101,923	(55,687,160)	4,990,719
Balances at beginning (in shares) at Dec. 31, 2018	1,890,354	3,760,268
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock issued for cash		$ 410,000			410,000
Stock issued for cash (in shares)		51,250
Stock issuance fees and expenses		$ (16,000)			(16,000)
Transition adjustment for adoption of new lease standard				(116,319)	(116,319)
Stock-based compensation		20,000	88,288		108,288
Net loss				(2,200,176)	(2,200,176)
Balances at ending at Mar. 31, 2019	$ 22,307,480	$ 30,682,476	$ 8,190,211	$ (58,003,655)	$ 3,176,512
Balances at ending (in shares) at Mar. 31, 2019	1,890,354	3,811,518

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (2,200,176)	$ (1,874,095)
Depreciation	194,055	209,131
Amortization of intangible assets	15,858	12,934
Stock-based compensation expense	108,288	87,764
Non-cash interest expense	13,166	85,973
Non-cash equipment rent expense		53,082
Changes in current assets and liabilities:
Accounts receivable	393,201	(199,417)
Inventory	(45,688)	(37,847)
Other current assets	(2,613)	(75,809)
Accounts payable and other liabilities	(313,986)	467,765
NET CASH USED IN OPERATING ACTIVITIES	(1,837,895)	(1,270,519)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(217,021)	(874,357)
Purchases of intangible assets	(25,623)	(15,574)
NET CASH USED IN INVESTING ACTIVITIES	(242,644)	(889,931)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of capital lease obligations	(15,527)	(5,721)
Repayments of long-term loan debt	(157,200)	0
Proceeds from issuance of common stock	410,000	1,615,400
Common stock issuance fees and expenses	(16,000)	(9,838)
NET CASH PROVIDED BY FINANCING ACTIVITIES	221,273	1,599,841
NET INCREASE IN CASH, CASH ON HAND AND CASH EQUIVALENTS	(1,859,266)	(560,609)
CASH, CASH ON HAND AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	4,893,974	3,041,591
CASH, CASH ON HAND AND CASH EQUIVALENTS AT END OF PERIOD	3,034,708	2,480,982
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest		220
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Value of preferred stock issued for AAOF capital lease obligations		$ 85,671

NATURE OF BUSINESS AND BASIS OF

NATURE OF BUSINESS AND BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2019
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, 2018, as filed with the Securities and Exchange Commission (“SEC”) on Form 10-K/A on April 3, 2019. 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, 2019
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition Revenues are recognized at a point in time, typically when control of the promised goods is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods. The Company does not recognize revenue in cases where collectability is not probable, and defers the recognition until collection is probable or payment is received. The Company generally expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within selling, general and administrative expenses. Customer deposits, deferred revenue and other receipts are deferred and recognized when the revenue is realized and earned. Revenue related to licensing agreements is recorded upon substantial performance of the terms of the licensing contract. In the case of licensing arrangements that involve up-front payments, revenue is recorded when management determines that the appropriate terms of the contract have been fulfilled. For example, this may occur when technology has been transferred via written documents or, if training is involved, whenever all contracted training has occurred. In the case of licenses where product delivery is also embedded in the deliverable, a portion of revenue would be recognized when products are delivered. We have also out-licensed certain of our intellectual property to licensees under terms and conditions of license agreements that specify the intellectual property licensed, the territory, and the type of license. In exchange for these licenses, we have recorded revenues associated with the initial granting of the license and expect to receive royalties based on sales of products produced under these licenses. License revenues are recorded to reflect our performance of requirements under these license agreements. In addition, we record royalty revenues from licensees at the time they are earned. Grant contract revenue is recognized over the life of the contracts as the services are performed or as milestones are met. Amounts received in excess of revenues earned are recorded as deferred revenue. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a provision for bad debt expense and an adjustment to a valuation allowance based on their assessment of the current status of individual accounts. Balances that are still outstanding after management has used reasonable collection efforts are written off through a charge to the allowance account and a credit to accounts receivable. Intangible Assets We have entered into a license agreement with Michigan State University under which we have licensed certain intellectual property in the form of patents and patent applications and invention disclosures. We are responsible for managing the patent process and ongoing filings for this licensed intellectual property and for bearing the cost thereof. We capitalize all costs related to the acquisition and ongoing administration of this license agreement and we amortize these costs over 15 years or the remaining life of the license agreement, whichever is shorter. In addition to the costs of managing in-licensed intellectual property, we also file for patent protection for inventions and other intellectual property generated by our employees. All patents are evaluated for filing in international markets on a case-by-case basis and are filed in the United States and in selected international markets as considered appropriate. All external legal and filing costs related to patent applications, patent filings, ongoing registrations, overseas filings, and legal opinions related thereto are capitalized as intangible assets at cost and amortized over a period of 15 years from the date incurred, or the remaining useful life of the associated patent, whichever is shorter. The cost of royalties or minimum payments specified under the license agreement for in-licensed technology is expensed as incurred. Liquidity We have historically incurred recurring losses from operations and we may continue to generate negative cash flows as we implement our business plan. Our consolidated financial statements are prepared using GAAP as applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. As of May 9, 2019, we had cash on hand of $2,686,494. We believe our cash is sufficient to fund our operations through May 31, 2020 after taking into account various sources of funding and cash received from continued commercial sales transactions. Our primary means for raising funds since 2016 has been through our offering of 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”) and under a draw loan note and agreement with The Dow Chemical Company (the “Dow Facility”). On April 12, 2019, we completed the Offering, after selling 2,615,425 shares under the Registration Statement at a price of $8.00 per share for total proceeds of $20,923,400. We have $5 million of proceeds from the Dow Facility available to us, which we intend to be our primary source of liquidity at this time (See Note 3). There has been no public market for our securities and a public market may never develop, or, if any market does develop, it may not be sustained. Our common stock is not currently quoted on or traded on any exchange or on any over-the-counter market. 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 The following amounts were included in inventory at the end of the period: March 31, December 31, 2019 2018 Raw materials $ 67,711 $ 48,371 Consumables 160,630 188,764 Finished goods 477,564 423,082 Total $ 705,905 $ 660,217 Recent Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases We adopted ASU 2016-02 as of January 1, 2019. Adoption of Lease Accounting Policy We applied ASU 2016-02 and all related amendments (“ASC 842”) using the modified retrospective method by recognizing the cumulative effect of adoption as an adjustment to the opening balance of retained earnings at January 1, 2019. Therefore, the comparative information has not been adjusted and continues to be reported under prior leasing guidance. As a result, in the first quarter of 2019 we recorded ROU assets of $1,871,366. We also recorded lease liabilities of $1,981,795. The decrease to retained earnings was $116,319, reflecting the cumulative impact of the accounting change. The standard did not have a material effect on consolidated net income or cash flows. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Lease expense for lease payments is recognized on a straight-line basis over the lease term. We do not record a ROU asset or lease liability for leases with an expected term of 12 months or less. The comparative information has not been adjusted and continues to be reported under prior leasing guidance.

FINANCING AGREEMENTS

FINANCING AGREEMENTS	3 Months Ended
	Mar. 31, 2019
Warrants And Financing Agreements
FINANCING AGREEMENTS	NOTE 3 –FINANCING AGREEMENT 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. After December 1, 2017, an additional $5 million became available when we raised $10 million of equity capital after October 31, 2016. As of September 30, 2018, we had raised in excess of $10,000,000 from our IPO since November 1, 2016, and thus have met this requirement. Therefore, the remaining $5 million under the Dow Facility is now available to us. The Dow Facility is senior to our other debt and is secured by all of our assets. It matures on December 1, 2021 (subject to certain mandatory prepayments based on our equity financing activities). When we raise a cumulative amount of equity capital exceeding $15 million, we are required to prepay an amount equal to 30% of the amount raised over $15 million, but less than $25 million. We began these prepayments on equity raised as of September 10, 2018. Interest was payable beginning January 1, 2017, although we had elected, per the loan documents, to capitalize the interest as part of the outstanding debt through January 1, 2019. Beginning April 1, 2019, current interest is payable in cash on the first day of each quarter. 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. The total debt discount on the Dow Facility was approximately $372,000. The debt discount is being amortized to interest expense using the effective interest method over the term of the loans using an average effective interest rate of 7.68%. During the three months ended March 31, 2019, we recognized $77,792 of amortization expense consisting of $64,626 interest expense and $13,166 of amortization from debt discount accretion related to the Dow Facility. We have repaid $157,200 of outstanding principal on the debt, resulting in a carrying value of $4,778,555 for the Dow Facility as of March 31, 2019. The Dow Facility entitles Dow to appoint an observer to our Board. Dow will maintain this observation right until the later of December 1, 2019 or when the amount of principal and interest outstanding under the Dow Facility is less than $5 million.

STOCK WARRANTS ACCOUNTED FOR AS

STOCK WARRANTS ACCOUNTED FOR AS EQUITY INSTRUMENTS	3 Months Ended
	Mar. 31, 2019
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, 2019, which are accounted for as equity instruments, all of which are exercisable: Date Issued Expiration Date Indexed Stock Exercise Price Number of Warrants 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 Each warrant indexed to Series A Convertible Preferred Stock is currently exercisable and exchangeable into 1.875 shares of common stock.

STOCKHOLDERS' EQUITY (DEFICIT)

STOCKHOLDERS' EQUITY (DEFICIT)	3 Months Ended
	Mar. 31, 2019
Stockholders Equity Deficit
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 3,811,518 and 3,760,268 shares were issued and outstanding as of March 31, 2019 and December 31, 2018, respectively. During the three months ended March 31, 2019 the Company issued 51,250 shares of common stock pursuant to the Offering. During the three months ended March 31, 2018 the Company issued 201,925 shares of common stock pursuant to the Offering. Upon its completion on April 12, 2019, the Company had sold 2,615,425 shares of common stock in its IPO at a price of $8.00 per share for gross proceeds of $20,923,400. Potentially dilutive securities consist of shares potentially issuable pursuant to stock options and warrants as well as shares that would result from full conversion of all outstanding convertible securities. These potentially dilutive securities were 3,013,987 and 2,903,987 as of March 31, 2019 and 2018, respectively, and are excluded from diluted net loss per share calculations because they are anti-dilutive. 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. During the period from May 17, 2016 through December 31, 2018 the Company issued shares of Series A Preferred Stock to Aspen Advanced Opportunity Fund, LP (“AAOF”) as payment for lease financing obligations under the terms of a Master Leasing Agreement. As of March 31, 2019, and December 31, 2018, the Company had 1,890,354 shares of Series A Preferred Stock issued and outstanding which is currently convertible into 3,544,414 shares of our common stock.

EQUITY INCENTIVE PLAN

EQUITY INCENTIVE PLAN	3 Months Ended
	Mar. 31, 2019
Share-based Payment Arrangement [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 replaces the 2007 Plan and authorizes us to issue awards (stock options and restricted stock) with respect of a maximum of 1,200,000 shares of our common stock, which equals the number of shares authorized under the 2007 Plan. 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, a seven-year term, are vested 50% on date of grant with the remaining vesting over a 4-year period from the date issued and are subject to certain other terms. Each option holder received options equal to 150% of the number of cancelled stock options. The cancellation and reissuance of the stock options were treated as a modification under ASC 718, Compensation-Stock Compensation. On September 30, 2018 and August 10, 2017, the Company granted each Board member 2,500 stock options and 2,500 shares of restricted stock for their Board services. The options were granted at a price of $8.00 per share and vest ratably over a four-year period beginning on the one-year anniversary. The options had an aggregate grant date fair value of $29,580 and $26,120 on September 30, 2018 and August 10, 2017, respectively. The restricted stock issued to the Board members has an aggregate fair value of $160,000 and vest ratably in arrears over four quarters on the last day of each fiscal quarter following the grant date. As of March 31, 2019, 17,500 of the 20,000 shares of restricted stock issued had vested, resulting in compensation expense of $20,000 for the period ended March 31, 2019. During the three months ended March 31, 2019, the Company granted 7,500 employee stock options. The options were granted at a price of $8.00 per share and had an aggregate grant date fair value of $22,822. The options vest ratably over a four-year period beginning on the one-year anniversary. 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 years, Volatility: 41.07%, Risk free rate: 2.23%, Dividend rate: 0%. 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 25% per year, with most options vesting 25% per year beginning on the one-year anniversary of the grant date. The options expire seven years from the date of grant. Stock-based compensation expense was $108,288 and $87,764 for the three months ended March 31, 2019 and March 31, 2018, respectively. As of March 31, 2019, there was approximately $621,000 in unrecognized compensation cost related to the options granted under the 2017 plan. We expect to recognize these costs over the remaining vesting terms, ranging from 3 to 4 years. A summary of the stock options available as of March 31, 2019 is as follows: Weighted Number Average Of Exercise Options Price Options outstanding at December 31, 2018 797,875 $ 8.00 Changes during the period: Expired (0 ) 8.00 New Options Granted – at market price 7,500 8.00 Options outstanding at March 31, 2019 805,375 $ 8.00 Options exercisable at March 31, 2019 399,025 $ 8.00

LEASES

LEASES	3 Months Ended
	Mar. 31, 2019
Capital Leases of Lessee [Abstract]
LEASES	NOTE 7 – LEASES Right of Use Asset and Leased Liability: Estimated Lease Life – Lease term through December 2022 Right-of-use lease assets- operating as of January 1, 2019 $ 1,982,739 Less: Accumulated amortization (111,373 ) Right-of-use lease assets- operating as of March 31, 2019 $ 1,871,366 Lease liability-operating as of January 1, 2019 $ 2,094,958 Less: Accumulated Amortization (113,163 ) Lease liability operating-as of March 31, 2019 $ 1,981,795 Operating lease expense for the three months ended March 31, 2019 $ 150,557 Actual remaining lease payments $ 2,369,312 Present value of remaining payments $ 1,981,795 Supplemental cash flow information related to leases: Leases Three months ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 152,347 Weighted average remaining lease term- operating leases ( in months) 21.25 Weighted average discount rate- operating leases (annual) 9.98 % Maturities of leases liabilities were as follows: Year ending December 31, 2019 (excluding the three months ended March 31, 2019) $ 464,708 Year ending December 31, 2020 622,878 Year ending December 31, 2021 638,178 Year ending December 31, 2022 643,548 Total Lease payments 2,369,312 Less imputed interest (387,517 ) Total $ 1,981,795 With the exception of the standards discussed above, we believe there have been no new accounting pronouncements effective or not yet effective which have significance, or potential significance, to our Consolidated Financial Statements.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2019
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 8 – 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. During the three months ended March 31, 2019 and 2018 we recorded licensing expense of $12,500 per quarter. 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, 2019 or the three months ended March 31, 2018. During the three months ended March 31, 2019 we did not issue any Series A Preferred stock. For the three months ended March 31, 2018, 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, 2019
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 9 – SUBSEQUENT EVENTS During the period from April 1 through its completion on April 12, 2019, we received proceeds of $1,603,400 for the sale of 200,425 shares of common stock in our IPO.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Revenue Recognition	Revenue Recognition Revenues are recognized at a point in time, typically when control of the promised goods is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods. The Company does not recognize revenue in cases where collectability is not probable, and defers the recognition until collection is probable or payment is received. The Company generally expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within selling, general and administrative expenses. Customer deposits, deferred revenue and other receipts are deferred and recognized when the revenue is realized and earned. Revenue related to licensing agreements is recorded upon substantial performance of the terms of the licensing contract. In the case of licensing arrangements that involve up-front payments, revenue is recorded when management determines that the appropriate terms of the contract have been fulfilled. For example, this may occur when technology has been transferred via written documents or, if training is involved, whenever all contracted training has occurred. In the case of licenses where product delivery is also embedded in the deliverable, a portion of revenue would be recognized when products are delivered. We have also out-licensed certain of our intellectual property to licensees under terms and conditions of license agreements that specify the intellectual property licensed, the territory, and the type of license. In exchange for these licenses, we have recorded revenues associated with the initial granting of the license and expect to receive royalties based on sales of products produced under these licenses. License revenues are recorded to reflect our performance of requirements under these license agreements. In addition, we record royalty revenues from licensees at the time they are earned. Grant contract revenue is recognized over the life of the contracts as the services are performed or as milestones are met. Amounts received in excess of revenues earned are recorded as deferred revenue.
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a provision for bad debt expense and an adjustment to a valuation allowance based on their assessment of the current status of individual accounts. Balances that are still outstanding after management has used reasonable collection efforts are written off through a charge to the allowance account and a credit to accounts receivable.
Intangible Assets	Intangible Assets We have entered into a license agreement with Michigan State University under which we have licensed certain intellectual property in the form of patents and patent applications and invention disclosures. We are responsible for managing the patent process and ongoing filings for this licensed intellectual property and for bearing the cost thereof. We capitalize all costs related to the acquisition and ongoing administration of this license agreement and we amortize these costs over 15 years or the remaining life of the license agreement, whichever is shorter. In addition to the costs of managing in-licensed intellectual property, we also file for patent protection for inventions and other intellectual property generated by our employees. All patents are evaluated for filing in international markets on a case-by-case basis and are filed in the United States and in selected international markets as considered appropriate. All external legal and filing costs related to patent applications, patent filings, ongoing registrations, overseas filings, and legal opinions related thereto are capitalized as intangible assets at cost and amortized over a period of 15 years from the date incurred, or the remaining useful life of the associated patent, whichever is shorter. The cost of royalties or minimum payments specified under the license agreement for in-licensed technology is expensed as incurred.
Liquidity	Liquidity We have historically incurred recurring losses from operations and we may continue to generate negative cash flows as we implement our business plan. Our consolidated financial statements are prepared using GAAP as applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. As of May 9, 2019, we had cash on hand of $2,686,494 . We believe our cash is sufficient to fund our operations through May 31, 2020 after taking into account various sources of funding and cash received from continued commercial sales transactions. Our primary means for raising funds since 2016 has been through our offering of 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”) and under a draw loan note and agreement with The Dow Chemical Company (the “Dow Facility”). On April 12, 2019, we completed the Offering, after selling 2,615,425 shares under the Registration Statement at a price of $8.00 per share for total proceeds of $20,923,400. We have $5 million of proceeds from the Dow Facility available to us, which we intend to be our primary source of liquidity at this time (See Note 3). There has been no public market for our securities and a public market may never develop, or, if any market does develop, it may not be sustained. Our common stock is not currently quoted on or traded on any exchange or on any over-the-counter market. 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 The following amounts were included in inventory at the end of the period: March 31, December 31, 2019 2018 Raw materials $ 67,711 $ 48,371 Consumables 160,630 188,764 Finished goods 477,564 423,082 Total $ 705,905 $ 660,217
Recent Accounting Pronouncements	Recent Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases We adopted ASU 2016-02 as of January 1, 2019.
Adoption of Lease Accounting Policy	Adoption of Lease Accounting Policy We applied ASU 2016-02 and all related amendments (“ASC 842”) using the modified retrospective method by recognizing the cumulative effect of adoption as an adjustment to the opening balance of retained earnings at January 1, 2019. Therefore, the comparative information has not been adjusted and continues to be reported under prior leasing guidance. As a result, in the first quarter of 2019 we recorded ROU assets of $1,871,366. We also recorded lease liabilities of $1,981,795. The decrease to retained earnings was $116,319, reflecting the cumulative impact of the accounting change. The standard did not have a material effect on consolidated net income or cash flows. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Lease expense for lease payments is recognized on a straight-line basis over the lease term. We do not record a ROU asset or lease liability for leases with an expected term of 12 months or less. The comparative information has not been adjusted and continues to be reported under prior leasing guidance.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Schedule of inventory	The following amounts were included in inventory at the end of the period: March 31, December 31, 2019 2018 Raw materials $ 67,711 $ 48,371 Consumables 160,630 188,764 Finished goods 477,564 423,082 Total $ 705,905 $ 660,217

STOCK WARRANTS ACCOUNTED FOR _2

STOCK WARRANTS ACCOUNTED FOR AS EQUITY INSTRUMENTS (Tables)	3 Months Ended
	Mar. 31, 2019
Stock Warrants Accounted For As Equity Instruments Tables
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, 2019, which are accounted for as equity instruments, all of which are exercisable: Date Issued Expiration Date Indexed Stock Exercise Price Number of Warrants 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, 2019
Share-based Payment Arrangement [Abstract]
Schedule of summary of the stock option activity	A summary of the stock options available as of March 31, 2019 is as follows: Weighted Number Average Of Exercise Options Price Options outstanding at December 31, 2018 797,875 $ 8.00 Changes during the period: Expired (0 ) 8.00 New Options Granted – at market price 7,500 8.00 Options outstanding at March 31, 2019 805,375 $ 8.00 Options exercisable at March 31, 2019 399,025 $ 8.00

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Mar. 31, 2019
Capital Leases of Lessee [Abstract]
Right of Use Asset and Leased Liability	Right of Use Asset and Leased Liability: Estimated Lease Life – Lease term through December 2022 Right-of-use lease assets- operating as of January 1, 2019 $ 1,982,739 Less: Accumulated amortization (111,373 ) Right-of-use lease assets- operating as of March 31, 2019 $ 1,871,366 Lease liability-operating as of January 1, 2019 $ 2,094,958 Less: Accumulated Amortization (113,163 ) Lease liability operating-as of March 31, 2019 $ 1,981,795 Operating lease expense for the three months ended March 31, 2019 $ 150,557 Actual remaining lease payments $ 2,369,312 Present value of remaining payments $ 1,981,795
Schedule of Future Minimum Rental Payments	Supplemental cash flow information related to leases: Leases Three months ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 152,347 Weighted average remaining lease term- operating leases ( in months) 21.25 Weighted average discount rate- operating leases (annual) 9.98 % Maturities of leases liabilities were as follows: Year ending December 31, 2019 (excluding the three months ended March 31, 2019) $ 464,708 Year ending December 31, 2020 622,878 Year ending December 31, 2021 638,178 Year ending December 31, 2022 643,548 Total Lease payments 2,369,312 Less imputed interest (387,517 ) Total $ 1,981,795

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Raw materials	$ 67,711	$ 48,371
Consumables	160,630	188,764
Finished goods	477,564	423,082
Total	$ 705,905	$ 660,217

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	Apr. 12, 2019	Mar. 31, 2019	May 09, 2019	Dec. 31, 2018
Cash on hand		$ 2,844,498	$ 2,686,494	$ 4,703,834
Share price per share		$ 8
ROU assets		$ 1,871,366
Lease liabilities		1,981,795		$ 2,094,958
Decrease in retained earnings		$ 116,319
Patents [Member]
Amortization period of intangible assets		15 years
Subsequent Event [Member]
Sale of common stock	2,615,425
Share price per share	$ 8
Proceeds from sale of stock	$ 20,923,400
Draw Loan Note And Agreement [Member] | Senior Secured Debt Financing [Member]
Proceeds from secured debt		$ 5,000,000

FINANCING AGREEMENTS (Details N

FINANCING AGREEMENTS (Details Narrative) - Senior Secured Debt Financing [Member] - Draw Loan Note And Agreement [Member] - USD ($)	Sep. 22, 2017	Jul. 18, 2017	Dec. 04, 2016	Nov. 01, 2016	Dec. 31, 2016	Mar. 31, 2019
Proceeds from secured debt						$ 5,000,000
Additional equity capital				$ 10,000,000
The Dow Chemical Company [Member]
Face amount					$ 10,000,000	4,778,555
Proceeds from secured debt	$ 1,000,000	$ 1,000,000	$ 1,000,000		$ 2,000,000
Amortization expense of debt						$ 77,792
Number of shares purchased (in shares)						125,000
Exercise price (in dollars per share)						$ 8
Description of conversion terms						Interest was payable beginning January 1, 2017 although we had elected, per the loan documents, to capitalize the interest as part of the outstanding debt through January 1, 2019. Beginning April 1, 2019, current interest is payable in cash on the first day of each quarter. 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.
Unamortized discount						$ 372,000
Interest rate (in percent)					5.00%
Maturity date						Dec. 1, 2021
Effective intrest rate						6.30%
Non-cash interest expense						$ 64,626
Amortization from debt discount						13,166
Repayment of debt						$ 157,200
Equity capital description						Equity capital exceeding $15 million, we are required to prepay an amount equal to 30% of the amount raised over $15 million, but less than $25 million.

STOCK WARRANTS ACCOUNTED FOR _3

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

STOCKHOLDERS' EQUITY (DEFICIT)

STOCKHOLDERS' EQUITY (DEFICIT) (Details Narrative) - USD ($)	Apr. 12, 2019	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2015	Dec. 31, 2018
Common stock, authorized		25,000,000			25,000,000
Common stock, issued		3,811,518			3,760,268
Common stock, outstanding		3,811,518			3,760,268
Price per share (in dollars per share)		$ 8
Preferred stock, authorized		3,000,000			3,000,000
Preferred stock, issued		1,890,354			1,890,354
Preferred stock, outstanding		1,890,354			1,890,354
Number of shares issued		3,544,414
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		3,013,987	2,903,987
IPO [Member]
Number of shares issued in offering	2,615,425	51,250	201,925
Price per share (in dollars per share)	$ 8
Proceeds from issuance initial public offering	$ 20,923,400
Series A Convertible Preferred Stock [Member]
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
Number of shares issued				1,456,126

EQUITY INCENTIVE PLAN (Details)

EQUITY INCENTIVE PLAN (Details)	3 Months Ended
	Mar. 31, 2019$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options outstanding at beginning of year | shares	797,875
Changes during the year:
Expired | shares	0
New Options Granted - at market price | shares	7,500
Options outstanding at end of Period | shares	805,375
Options exercisable at end of Period | shares	399,025
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	8
New Options Granted - at market price | $ / shares	8
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	Sep. 30, 2018	Jun. 24, 2017	Mar. 31, 2019	Mar. 31, 2018
Number of options granted (in shares)				7,500
Stock based compensation				$ 108,288	$ 87,764
Exercise price (in dollars per share)				$ 8
Aggregate grant date fair value				$ 437,817	$ 1,673,476
Exercise Price (in dollars per share)				$ 8
Stock Price				$ 8
Expected Term				4 years 9 months
Volatility				41.07%
Risk free interest rate				2.23%
Dividend rate				0.00%
Minimum [Member]
Unrecognized compensation expense period				3 years
Maximum [Member]
Unrecognized compensation expense period				4 years
Stock Option [Member]
Number of options granted (in shares)				7,500
Exercise price (in dollars per share)				$ 8
Description of vesting terms				The options vest ratably over a four-year period beginning on the one-year anniversary.
Aggregate grant date fair value				$ 22,822
2007 Stock Option Plan [Member]
Stock based compensation			$ 1,015,758
Unrecognized compensation cost				$ 621,000
Exercise price (in dollars per share)			$ 8
Vesting period			4 years
Description of cancellation terms			Each option holder received options equal to 150% of the number of cancelled stock options.
Compensation cost for cancelled stock options			$ 501,071
Weighted average fair value of options granted during the year				$ 8
Weighted average remaining contractual term (in months)				7 years
2007 Stock Option Plan [Member] | Maximum [Member]
Number of shares awarded (in shares)				1,200,000
Unvested awards, compensation cost				$ 514,687
2007 Stock Option Plan [Member] | Stock Option [Member] | Directors [Member]
Number of options granted (in shares)		2,500
Exercise price (in dollars per share)		$ 8
Description of vesting terms		The options vest ratably over a four-year period beginning on the one-year anniversary.
Aggregate grant date fair value		$ 29,580
2007 Stock Option Plan [Member] | Restricted Common Stock [Member] | Directors [Member]
Number of options granted (in shares)	2,500
Stock based compensation				$ 20,000
Exercise price (in dollars per share)	$ 8
Number of shares vested (in shares)				17,500
Description of vesting terms	The options vest ratably over a four-year period beginning on the one-year anniversary.
Aggregate grant date fair value	$ 26,120			$ 160,000

LEASES (Details)

LEASES (Details)	3 Months Ended
	Mar. 31, 2019USD ($)
Capital Leases of Lessee [Abstract]
Right-of-use lease assets- operating at beginning	$ 1,982,739
Less: Accumulated amortization	(111,373)
Right-of-use lease assets- operating at end	1,871,366
Lease liability-operating at beginning	2,094,958
Less: Accumulated Amortization	(113,163)
Lease liability operating at end	1,981,795
Operating lease expense	150,557
Actual remaining lease payments	2,369,312
Present value of remaining payments	$ 1,981,795

LEASES (Details 1)

LEASES (Details 1)	3 Months Ended
	Mar. 31, 2019USD ($)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 152,347
Weighted average remaining lease term- operating leases ( in months)	21 months 8 days
Weighted average discount rate- operating leases (annual)	9.98%
Maturities of leases liabilities
Year ending December 31, 2019 (excluding the three months ended March 31, 2019)	$ 464,708
Year ending December 31, 2020	622,878
Year ending December 31, 2021	638,178
Year ending December 31, 2022	643,548
Total Lease payments	2,369,312
Less imputed interest	(387,517)
Total	$ 1,981,795

RELATED PARTY TRANSACTIONS AND

RELATED PARTY TRANSACTIONS AND COMMITMENTS (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
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 [Member] | Preferred stock (A) [Member]
Number of shares issued	0	7,140

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - USD ($)	Apr. 12, 2019	Mar. 31, 2019	Mar. 31, 2018
Proceeds from of common stock		$ 410,000	$ 1,615,400
Subsequent Event [Member]
Number of shares issued	200,425
Proceeds from of common stock	$ 1,603,400