XG Sciences 10-Q 14 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Nov. 14, 2019
Document And Entity Information
Entity Registrant Name	XG SCIENCES INC
Entity Central Index Key	0001435375
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity File Number	333-209131
Entity Incorporation, State or Country Code	MI
Entity's Reporting Status Current	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		4,024,443
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2019

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
CURRENT ASSETS
Cash	$ 1,485,407	$ 4,703,834
Accounts receivable, less allowance for doubtful accounts of $26,000 at September 30, 2019 and $85,000 at December 31, 2018	246,080	859,054
Inventories	854,516	660,217
Other current assets	195,987	114,453
Total current assets	2,781,990	6,337,558
LONG-TERM ASSETS
Property, Plant and Equipment, Net	3,955,815	4,223,650
Restricted Cash for Letter of Credit		190,140
Lease Deposits and other	77,544	20,156
Intangible Assets, Net	735,669	690,646
Right of Use Asset	1,723,859
Total Long-Term Assets	6,492,887	5,124,592
TOTAL ASSETS	9,274,877	11,462,150
CURRENT LIABILITIES
Accounts payable	685,144	1,102,910
Other current liabilities	463,241	429,573
Deferred revenue		832
Current portion of long-term debt		196,723
Current portion of lease liabilities	506,671	3,613
Total current liabilities	1,655,056	1,733,651
LONG-TERM LIABILITIES
Long-term portion of lease liabilities	1,319,019	11,914
Long term debt	6,210,400	4,725,866
Total long-term liabilities	7,529,419	4,737,780
TOTAL LIABILITIES	9,184,475	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 September 30, 2019 and December 31, 2018, respectively	22,307,480	22,307,480
Common stock, no par value, 25,000,000 shares authorized, 4,024,443 and 3,760,268 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively	32,326,876	30,268,476
Additional paid-in capital	8,528,905	8,101,923
Accumulated deficit	(63,072,859)	(55,687,160)
Total stockholders' equity	90,402	4,990,719
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 9,274,877	$ 11,462,150

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 26,000	$ 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	4,024,443	3,760,268
Common stock, outstanding	4,024,443	3,760,268

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
REVENUE
Product Sales	$ 123,247	$ 1,126,385	$ 1,227,594	$ 2,863,575
COST OF GOODS SOLD
Direct costs	73,113	708,249	950,677	1,739,700
Unallocated manufacturing expenses	862,280	544,867	1,955,494	1,834,138
Total cost of goods sold	935,393	1,253,116	2,906,171	3,573,838
GROSS LOSS	(812,146)	(126,731)	(1,678,577)	(710,263)
OPERATING EXPENSES
Research and development	381,511	435,956	1,151,524	1,000,101
Sales, general and administrative	1,266,037	1,297,179	4,173,338	3,631,652
Total operating expenses	1,647,548	1,733,135	5,324,862	4,631,753
OPERATING LOSS	(2,459,694)	(1,859,866)	(7,003,439)	(5,342,016)
OTHER INCOME (EXPENSE)
Interest expense, net	(110,999)	(81,926)	(265,941)	(250,900)
Government incentives, net				3,253
Total other expense	(110,999)	(81,926)	(265,941)	(247,647)
NET LOSS	$ (2,570,693)	$ (1,941,792)	$ (7,269,380)	$ (5,589,663)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - Basic and diluted (in shares)	4,011,943	3,044,815	3,926,488	2,716,713
NET LOSS PER SHARE - Basic and diluted (in dollars per share)	$ (0.64)	$ (0.64)	$ (1.85)	$ (2.06)

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		$ 7,741,344			7,741,344
Stock issued for cash (in shares)		967,668
Stock issuance fees and expenses		$ (99,943)			(99,943)
Preferred stock issued to pay capital lease obligations	$ 299,297				299,297
Preferred stock issued to pay capital lease obligations (in shares)	24,943
Stock-based compensation		$ 60,000	200,980		260,980
Stock-based compensation (in shares)		10,000
Net loss				(5,589,663)	(5,589,663)
Balances at ending at Sep. 30, 2018	$ 22,216,343	$ 26,817,413	8,032,938	(53,357,207)	3,709,487
Balances at ending (in shares) at Sep. 30, 2018	1,882,759	3,331,018
Balances at beginning at Jun. 30, 2018	$ 22,088,389	$ 23,034,814	7,966,189	(51,415,415)	1,673,977
Balances at beginning (in shares) at Jun. 30, 2018	1,872,096	2,846,525
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock issued for cash		$ 3,795,944			3,795,944
Stock issued for cash (in shares)		474,493
Stock issuance fees and expenses		$ (33,345)			(33,345)
Preferred stock issued to pay capital lease obligations	$ 127,954				127,954
Preferred stock issued to pay capital lease obligations (in shares)	10,663
Stock-based compensation		$ 20,000	66,749		86,749
Stock-based compensation (in shares)		10,000
Net loss				(1,941,792)	(1,941,792)
Balances at ending at Sep. 30, 2018	$ 22,216,343	$ 26,817,413	8,032,938	(53,357,207)	3,709,487
Balances at ending (in shares) at Sep. 30, 2018	1,882,759	3,331,018
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		$ 2,013,400			2,013,400
Stock issued for cash (in shares)		251,675
Stock issuance fees and expenses		$ (20,000)			(20,000)
Transition adjustment for adoption of new lease standard				(116,319)	(116,319)
Stock-based compensation		$ 65,000	273,814		338,814
Stock-based compensation (in shares)		12,500
Warrants issued with Dow financing			153,168		153,168
Net loss				(7,269,380)	(7,269,380)
Balances at ending at Sep. 30, 2019	$ 22,307,480	$ 32,326,876	8,528,905	(63,072,859)	90,402
Balances at ending (in shares) at Sep. 30, 2019	1,890,354	4,024,443
Balances at beginning at Jun. 30, 2019	$ 22,307,480	$ 32,301,876	8,280,579	(60,502,166)	2,387,769
Balances at beginning (in shares) at Jun. 30, 2019	1,890,354	4,011,943
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock issued for cash
Stock issued for cash (in shares)
Stock issuance fees and expenses
Stock-based compensation		$ 25,000	95,158		120,158
Stock-based compensation (in shares)		12,500
Warrants issued with Dow financing			153,168		153,168
Net loss				(2,570,693)	(2,570,693)
Balances at ending at Sep. 30, 2019	$ 22,307,480	$ 32,326,876	$ 8,528,905	$ (63,072,859)	$ 90,402
Balances at ending (in shares) at Sep. 30, 2019	1,890,354	4,024,443

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (7,269,380)	$ (5,589,663)
Depreciation	628,299	710,731
Amortization of intangible assets	47,574	39,934
Provision for bad debts	26,000	25,000
Stock-based compensation expense	338,814	260,980
Non-cash interest expense	79,199	252,672
Non-cash equipment rent expense		106,164
Changes in current assets and liabilities:
Accounts receivable	586,974	(424,873)
Inventory	(194,299)	(83,959)
Other current and non-current assets	(153,408)	(116,515)
Accounts payable and other liabilities	(384,932)	392,331
NET CASH USED IN OPERATING ACTIVITIES	(6,295,159)	(4,427,198)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(360,464)	(2,665,268)
Purchases of intangible assets	(92,596)	(125,542)
NET CASH USED IN INVESTING ACTIVITIES	(453,060)	(2,790,810)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of capital lease obligations	(15,528)	(12,361)
Repayments of long-term loan debt	(638,220)
Proceeds from issuance of common stock	2,013,400	7,741,344
Common stock issuance fees and expenses	(20,000)	(99,943)
Proceeds from long-term loan	2,000,000
NET CASH PROVIDED BY FINANCING ACTIVITIES	3,339,652	7,629,040
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(3,408,567)	411,032
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD	4,893,974	3,041,590
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD	1,485,407	3,452,622
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest	126,089	629
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Value of preferred stock issued for AAOF capital lease obligations		$ 299,297

NATURE OF BUSINESS AND BASIS OF

NATURE OF BUSINESS AND BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 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. 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, inventory valuations, 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.

UPDATES TO SIGNIFICANT ACCOUNTI

UPDATES TO SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
UPDATES TO SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 – UPDATES TO 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 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. Amounts received in excess of revenues earned are recorded as deferred revenue. 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 November 11, 2019, we had cash on hand of $560,775. We believe our cash is sufficient to fund our operations through November 30, 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”) 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. On July 8, 2019 we borrowed $2 million under the draw loan note and agreement with The Dow Chemical Company (the “Dow Facility”). On November 12, 2019 we requested to borrow $2 million under the draw loan note and agreement with The Dow Chemical Company (the “Dow Facility”) (See Note 3). There has been an agreement between the parties to extend the draw deadline through December 1, 2020. 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. Inventory The following amounts were included in inventory at the end of the period: September 30, December 31, 2019 2018 Raw materials $ 57,777 $ 48,371 Consumables 71,034 188,764 Finished goods 725,705 423,082 Total $ 854,516 $ 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. Right-of-use 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 used our incremental borrowing rate based on the information available at the 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	9 Months Ended
	Sep. 30, 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, an additional $1 million on July 18, 2017, September 22, 2017 and December 4, 2017, respectively, and an additional $2 million on July 8, 2019. On November 12, 2019 we requested to borrow $2 million under the Dow Facility. There has been an agreement between the parties to extend the draw deadline through December 1, 2020. 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 after October 31, 2016, we are required to prepay an amount equal to 30% of the amount raised over $15 million, but less than $25 million. If we raise a cumulative amount of equity capital post October 31, 2016 exceeding $25 million, we are required to prepay an amount equal to 50% of the amount raised over $25 million, not to exceed the balance of principal and interest due on the Dow facility. We began these prepayments on equity raised as of October 10, 2018. Interest was payable beginning January 1, 2017, although we had elected, per the Dow facility, 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, and accordingly, has been paid on April 1, 2019, July 1, 2019 and October 1, 2019 in the amounts of $64,626, $59,709 and $82,068, respectively. 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 September 30, 2019, we had issued 175,000 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 $525,540. 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 7.92%. During the nine months ended September 30, 2019, we recognized $285,602 of amortization expense consisting of $206,403 interest expense and $79,199 of amortization from debt discount accretion related to the Dow Facility. We have repaid $816,710 of outstanding principal on the debt, resulting in a carrying value of $6,210,400 for the Dow Facility as of September 30, 2019. The Dow Facility entitles Dow to appoint an observer to our Board of Directors (“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	9 Months Ended
	Sep. 30, 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 September 30, 2019, which are accounted for as equity instruments, all of which are exercisable: Date Issued Expiration Date Indexed Stock Exercise Price Number of 10/08/2012 10/08/2027 Common $ 12.00 5,000 01/15/2014 - 12/31/2014 01/15/2024 Series A Convertible Preferred $ 12.00 972,720 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 07/08/2019 12/01/2023 Common $ 8.00 50,000 1,409,737 Each warrant indexed to Series A Convertible Preferred Stock is currently exercisable and exchangeable into 1.875 shares of common stock. On a common stock equivalent basis, the exercise price would equal $6.40/common share.

STOCKHOLDERS' EQUITY (DEFICIT)

STOCKHOLDERS' EQUITY (DEFICIT)	9 Months Ended
	Sep. 30, 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 4,024,443 and 3,760,268 shares were issued and outstanding as of September 30, 2019 and December 31, 2018, respectively. During the nine months ended September 30, 2019 the Company issued 251,675 shares of common stock pursuant to the Offering. During the nine months ended September 30, 2018 the Company issued 967,668 shares of common stock pursuant to the Offering. Upon completion of the Offering on April 12, 2019, the Company had sold 2,615,425 shares of common stock in the Offering 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 3,081,487 and 2,894,742 as of September 30, 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, was originally 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. In December 2015, the conversion price of the Series A Preferred was reduced from $12.00 to $6.40 (80% of the $8.00 per share Offering price), and thus, each share of Series A Preferred Stock is now convertible into 1.875 shares of common stock. 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 the NASDAQ Stock Market or the New York Stock 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. 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 September 30, 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	9 Months Ended
	Sep. 30, 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 members of our Board 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) up to 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, 2019 and September 30, 2018, 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 $38,295 and $29,580 on September 30, 2019 and September 30, 2018, respectively. The restricted stock issued on September 30, 2019 to the Board members has an aggregate fair value of $100,000 and vest ratably in arrears over four quarters on the last day of each fiscal quarter following the grant date. For the three months ended September 30, 2019 and 2018, the amount of restricted stock compensation expense recorded was $25,000 and $20,000, respectively. For the nine months ended September 30, 2019 and 2018, the amount of restricted stock compensation expense recorded was $65,000 and $60,000, respectively. 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 $120,158 and $338,814 for the three and nine months ended September 30, 2019, respectively. Stock-based compensation expense was $86,749 and $260,980 for the three and nine months ended September 30, 2018, respectively. As of September 30, 2019, there was approximately $1,068,921 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 September 30, 2019 and 2018 is as follows: Weighted Number Average Of Exercise Options Price Options outstanding at June 30, 2019 825,375 $ 8.00 Changes during the period: Expired (23,250 ) 8.00 New Options Granted – at market price 12,500 8.00 Options outstanding at September 30, 2019 814,625 $ 8.00 Options exercisable at September 30, 2019 498,393 $ 8.00 Weighted Number Average Of Exercise Options Price Options outstanding at June 30, 2018 665,875 $ 8.00 Changes during the period: Expired — 8.00 New Options Granted – at market price 12,000 8.00 Options outstanding at September 30, 2018 677,875 $ 8.00 Options exercisable at September 30, 2018 388,400 $ 8.00

LEASES

LEASES	9 Months Ended
	Sep. 30, 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 Three months ended September 30, 2019 Right-of-use lease assets- operating as of June 30, 2019 $ 1,767,269 Less: Accumulated amortization (43,410 ) Right-of-use lease assets- operating as of September 30, 2019 $ 1,723,859 Lease liability-operating as of June 30, 2019 $ 1,873,352 Less: Accumulated Amortization (47,662 ) Lease liability operating-as of September 30, 2019 $ 1,825,690 Operating lease expense for the three months ended September 30, 2019 $ 156,824 Actual remaining lease payments $ 2,128,537 Present value of remaining payments $ 1,825,690 Supplemental cash flow information related to leases: Leases Three months ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 161,077 The undiscounted annual future minimum lease payments summarized by year in the table below: Maturities of leases liabilities were as follows: Year ending December 31, 2019 (excluding the nine months ended September 30, 2019) $ 164,164 Year ending December 31, 2020 660,387 Year ending December 31, 2021 660,438 Year ending December 31, 2022 643,548 Total Lease payments 2,128,537 Less imputed interest (302,847 ) Total $ 1,825,690 Weighted average remaining lease term- operating leases (in months) 37 Weighted average discount rate- operating leases (annual) 9.98 % Leases Nine months ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 468,327 The undiscounted annual future minimum lease payments summarized by year in the table below: Maturities of leases liabilities were as follows: Year ending December 31, 2019 (excluding the nine months ended September 30, 2019) $ 164,164 Year ending December 31, 2020 660,387 Year ending December 31, 2021 660,438 Year ending December 31, 2022 643,548 Total Lease payments 2,128,537 Less imputed interest (302,847 ) Total $ 1,825,690 Weighted average remaining lease term- operating leases (in months) 37 Weighted average discount rate- operating leases (annual) 9.98 %

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 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 September 30, 2019 and 2018 we recorded licensing expense of $12,500 per quarter. During the nine months ended September 30, 2019 and 2018 we recorded licensing expense of $37,500. During the three and nine months ended September 30, 2019 we did not issue any Series A Preferred stock. For the three months ended September 30, 2018, we issued 10,663 shares of Series A Preferred stock to AAOF, a special purpose investment fund whose general partners are members of our Board, as payment for lease financing obligations under the terms of the Master Lease Agreement, dated March 18, 2013. For the nine months ended September 30, 2018, we issued a total of 24,943 shares as payment for lease obligations.

UPDATES TO SIGNIFICANT ACCOUN_2

UPDATES TO SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 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 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. Amounts received in excess of revenues earned are recorded as deferred revenue.
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 November 11, 2019, we had cash on hand of $560,775. We believe our cash is sufficient to fund our operations through November 30, 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”) 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. On July 8, 2019 we borrowed $2 million under the draw loan note and agreement with The Dow Chemical Company (the “Dow Facility”). On November 12, 2019 we requested to borrow $2 million under the draw loan note and agreement with The Dow Chemical Company (the “Dow Facility”) (See Note 3). There has been an agreement between the parties to extend the draw deadline through December 1, 2020. 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.
Inventory	Inventory The following amounts were included in inventory at the end of the period: September 30, December 31, 2019 2018 Raw materials $ 57,777 $ 48,371 Consumables 71,034 188,764 Finished goods 725,705 423,082 Total $ 854,516 $ 660,217
Recent Accounting Pronouncements	Recent Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases
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. Right-of-use 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 used our incremental borrowing rate based on the information available at the 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.

UPDATES TO SIGNIFICANT ACCOUN_3

UPDATES TO SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Schedule of inventory	The following amounts were included in inventory at the end of the period: September 30, December 31, 2019 2018 Raw materials $ 57,777 $ 48,371 Consumables 71,034 188,764 Finished goods 725,705 423,082 Total $ 854,516 $ 660,217

STOCK WARRANTS ACCOUNTED FOR _2

STOCK WARRANTS ACCOUNTED FOR AS EQUITY INSTRUMENTS (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2019, which are accounted for as equity instruments, all of which are exercisable: Date Issued Expiration Date Indexed Stock Exercise Price Number of 10/08/2012 10/08/2027 Common $ 12.00 5,000 01/15/2014 - 12/31/2014 01/15/2024 Series A Convertible Preferred $ 12.00 972,720 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 07/08/2019 12/01/2023 Common $ 8.00 50,000 1,409,737

EQUITY INCENTIVE PLAN (Tables)

EQUITY INCENTIVE PLAN (Tables)	9 Months Ended
	Sep. 30, 2019
Share-based Payment Arrangement [Abstract]
Schedule of summary of the stock option activity	A summary of the stock options available as of September 30, 2019 and 2018 is as follows: Weighted Number Average Of Exercise Options Price Options outstanding at June 30, 2019 825,375 $ 8.00 Changes during the period: Expired (23,250 ) 8.00 New Options Granted – at market price 12,500 8.00 Options outstanding at September 30, 2019 814,625 $ 8.00 Options exercisable at September 30, 2019 498,393 $ 8.00 Weighted Number Average Of Exercise Options Price Options outstanding at June 30, 2018 665,875 $ 8.00 Changes during the period: Expired — 8.00 New Options Granted – at market price 12,000 8.00 Options outstanding at September 30, 2018 677,875 $ 8.00 Options exercisable at September 30, 2018 388,400 $ 8.00

LEASES (Tables)

LEASES (Tables)	9 Months Ended
	Sep. 30, 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 Three months ended September 30, 2019 Right-of-use lease assets- operating as of June 30, 2019 $ 1,767,269 Less: Accumulated amortization (43,410 ) Right-of-use lease assets- operating as of September 30, 2019 $ 1,723,859 Lease liability-operating as of June 30, 2019 $ 1,873,352 Less: Accumulated Amortization (47,662 ) Lease liability operating-as of September 30, 2019 $ 1,825,690 Operating lease expense for the three months ended September 30, 2019 $ 156,824 Actual remaining lease payments $ 2,128,537 Present value of remaining payments $ 1,825,690
Schedule of Future Minimum Rental Payments	Supplemental cash flow information related to leases: Leases Three months ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 161,077 The undiscounted annual future minimum lease payments summarized by year in the table below: Maturities of leases liabilities were as follows: Year ending December 31, 2019 (excluding the nine months ended September 30, 2019) $ 164,164 Year ending December 31, 2020 660,387 Year ending December 31, 2021 660,438 Year ending December 31, 2022 643,548 Total Lease payments 2,128,537 Less imputed interest (302,847 ) Total $ 1,825,690 Weighted average remaining lease term- operating leases (in months) 37 Weighted average discount rate- operating leases (annual) 9.98 % Leases Nine months ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 468,327 The undiscounted annual future minimum lease payments summarized by year in the table below: Maturities of leases liabilities were as follows: Year ending December 31, 2019 (excluding the nine months ended September 30, 2019) $ 164,164 Year ending December 31, 2020 660,387 Year ending December 31, 2021 660,438 Year ending December 31, 2022 643,548 Total Lease payments 2,128,537 Less imputed interest (302,847 ) Total $ 1,825,690 Weighted average remaining lease term- operating leases (in months) 37 Weighted average discount rate- operating leases (annual) 9.98 %

UPDATES TO SIGNIFICANT ACCOUN_4

UPDATES TO SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Raw materials	$ 57,777	$ 48,371
Consumables	71,034	188,764
Finished goods	725,705	423,082
Total	$ 854,516	$ 660,217

UPDATES TO SIGNIFICANT ACCOUN_5

UPDATES TO SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	Jul. 08, 2019	Apr. 12, 2019	Sep. 30, 2019	Nov. 11, 2019	Jan. 02, 2019	Dec. 31, 2018
Cash on hand			$ 1,485,407			$ 4,703,834
Sale of common stock		2,615,425
Share price per share		$ 8	$ 8
Proceeds from sale of stock		$ 20,923,400
ROU assets					$ 1,871,366
Lease liabilities			$ 1,825,690		$ 1,981,795	$ 1,873,352
Decrease in retained earnings			116,319
Draw Loan Note And Agreement [Member]
Amount borrowed	$ 2,000,000
Draw Loan Note And Agreement [Member] | Senior Secured Debt Financing [Member]
Proceeds from secured debt			$ 2,000,000
Subsequent Event [Member]
Cash on hand				$ 560,775

FINANCING AGREEMENTS (Details N

FINANCING AGREEMENTS (Details Narrative) - Senior Secured Debt Financing [Member] - Draw Loan Note And Agreement [Member] - USD ($)	Jul. 08, 2018	Sep. 22, 2017	Jul. 18, 2017	Dec. 04, 2016	Dec. 31, 2016	Sep. 30, 2019	Oct. 01, 2019	Jul. 02, 2019	Apr. 02, 2019
Proceeds from secured debt						$ 2,000,000
The Dow Chemical Company [Member]
Face amount					$ 10,000,000	4,323,953
Proceeds from secured debt	$ 2,000,000	$ 1,000,000	$ 1,000,000	$ 1,000,000	$ 2,000,000
Amortization expense of debt						$ 285,602
Number of shares purchased (in shares)						175,000
Exercise price (in dollars per share)						$ 8
Description of conversion terms						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						$ 525,540
Interest rate (in percent)					5.00%
Maturity date						Dec. 1, 2021
Effective intrest rate						7.92%
Non-cash interest expense						$ 206,403
Amortization from debt discount						79,199
Repayment of debt						$ 816,710
Equity capital description						Equity capital exceeding $15 million after October 31, 2016, we are required to prepay an amount equal to 30% of the amount raised over $15 million, but less than $25 million. If we raise a cumulative amount of equity capital post October 31, 2016 exceeding $25 million, we are required to prepay an amount equal to 50% of the amount raised over $25 million, not to exceed the balance of principal and interest due on the Dow facility.
Interest payable							$ 82,068	$ 59,709	$ 64,626
Carrying value						$ 6,210,400

STOCK WARRANTS ACCOUNTED FOR _3

STOCK WARRANTS ACCOUNTED FOR AS EQUITY INSTRUMENTS (Details)	9 Months Ended
	Sep. 30, 2019$ / sharesshares
Number of Warrants	1,409,737
Warrant [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	$ 12
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
Warrant 12 [Member]
Date Issued	Jul. 8, 2019
Expiration Date	Dec. 1, 2023
Indexed stock	Common
Exercise Price | $ / shares	$ 8
Number of Warrants	50,000
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	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2015	Dec. 31, 2018
Common stock, authorized		25,000,000			25,000,000
Common stock, issued		4,024,443			3,760,268
Common stock, outstanding		4,024,443			3,760,268
Number of shares issued in offering	2,615,425
Price per share (in dollars per share)	$ 8	$ 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		3,081,487	2,894,742
IPO [Member]
Number of shares issued in offering	2,615,425	251,675	967,668
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) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options outstanding at beginning of year	825,375	665,875	665,875
Changes during the year:
Expired	(23,250)
New Options Granted - at market price	12,500	12,000	12,000
Options outstanding at end of Period	814,625	677,875	814,625
Options exercisable at end of Period	498,393	388,400	498,393
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [RollForward]
Options outstanding at beginning of year	$ 8	$ 8	$ 8
Changes during the year:
Expired	8	8
New Options Granted - at market price	8	8	8
Options outstanding at end of Period	8	8	8
Options exercisable at end of Period	$ 8	$ 8	$ 8

EQUITY INCENTIVE PLAN (Details

EQUITY INCENTIVE PLAN (Details Narrative) - USD ($)	1 Months Ended			3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Jun. 24, 2017	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Number of options granted (in shares)				12,500	12,000	12,000
Stock based compensation				$ 120,158	$ 338,814	$ 86,749	$ 260,980
Exercise price (in dollars per share)				$ 8	$ 8	$ 8
Exercise Price (in dollars per share)	$ 8			8		8
Stock Price	$ 8			$ 8		$ 8
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)				20,000
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				$ 61,644
2007 Stock Option Plan [Member]
Stock based compensation			$ 1,015,758
Unrecognized compensation cost	$ 1,068,921			$ 1,068,921		$ 1,068,921
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			1,200,000		1,200,000
Unvested awards, compensation cost	$ 514,687			$ 514,687		$ 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				$ 25,000	$ 20,000	$ 65,000	$ 60,000
Exercise price (in dollars per share)	$ 8
Number of shares vested (in shares)						20,000
Description of vesting terms	The options vest ratably over a four-year period beginning on the one-year anniversary.
Aggregate grant date fair value	$ 38,295					$ 100,000

LEASES (Details)

LEASES (Details)	9 Months Ended
	Sep. 30, 2019USD ($)
Capital Leases of Lessee [Abstract]
Right-of-use lease assets- operating at beginning	$ 1,767,269
Less: Accumulated amortization	(43,410)
Right-of-use lease assets- operating at end	1,723,859
Lease liability-operating at beginning	1,873,352
Less: Accumulated Amortization	(47,662)
Lease liability operating at end	1,825,690
Operating lease expense	156,824
Actual remaining lease payments	2,128,537
Present value of remaining payments	$ 1,825,690

LEASES (Details 1)

LEASES (Details 1)	3 Months Ended	9 Months Ended
	Sep. 30, 2019USD ($)	Sep. 30, 2019USD ($)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 161,077	$ 468,327
Maturities of leases liabilities
Year ending December 31, 2019 (excluding the nine months ended September 30, 2019)	164,164	164,164
Year ending December 31, 2020	660,387	660,387
Year ending December 31, 2021	660,438	660,438
Year ending December 31, 2022	643,548	643,548
Total Lease payments	2,128,537	2,128,537
Less imputed interest	(302,847)	(302,847)
Total	$ 1,825,690	$ 1,825,690
Weighted average remaining lease term- operating leases ( in months)	37 months	37 months
Weighted average discount rate- operating leases (annual)	9.98%	9.98%

RELATED PARTY TRANSACTIONS AND

RELATED PARTY TRANSACTIONS AND COMMITMENTS (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Licensing Agreement [Member] | Michigan State University (Patents and Pending Patents) [Member]
Licensing expenses	$ 12,500	$ 12,500	$ 37,500	$ 37,500
Master Leasing Agreement [Member] | Aspen Advance Opportunity Fund, LP [Member] | Preferred stock (A) [Member]
Number of shares issued	0	10,663	0	24,943