DS Healthcare (DSKX) 10-Q 15 May 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2014	4-May-14
Document and Entity Information [Abstract]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	31-Mar-14	'
Entity Registrant Name	'DS HEALTHCARE GROUP, INC.	'
Entity Central Index Key	'0001463959	'
Current Fiscal Year End Date	'--12-31	'
Document Fiscal Period Focus	'Q1	'
Document Fiscal Year Focus	'2014	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Units Outstanding	'	16,067,755

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Mar. 31, 2014	Dec. 31, 2013
Current Assets	'	'
Cash	$1,995,270	$2,872,946
Accounts receivable, net	1,607,006	2,229,329
Inventories	3,357,602	2,702,579
Prepaid expenses and other current assets	493,963	289,885
Total Current Assets	7,453,841	8,094,739
Furniture and Equipment, net	222,658	206,958
Intangible assets, net	1,297,733	1,346,389
Other Assets	66,506	66,506
TOTAL ASSETS	9,040,738	9,714,592
Current Liabilities	'	'
Accounts payable	1,660,485	2,230,723
Accrued expenses	588,395	945,949
Credit facility	477,058	582,383
Other current liabilities	792,205	286,282
Total Current Liabilities	3,518,143	4,045,337
Long Term Debt, net of current portion	34,567	36,425
TOTAL LIABILITIES	3,552,710	4,081,762
COMMITMENTS AND CONTINGENCIES	'	'
Shareholders' Equity	'	'
Preferred stock, $0.001 par value, 30 million shares authorized: 0 shares issued and outstanding at March 31, 2014 and December 31, 2013	'	'
Common stock, $0.001 par value, 300 million shares authorized:16,067,775 and 15,843,005 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively	16,068	15,843
Additional paid-in-capital	14,651,175	14,163,595
Stock subscription	-2,500	-194,500
Accumulated deficit	-9,153,203	-8,307,420
Other comprehensive income	13,084	-12,462
Total Shareholders' Equity	5,524,624	5,665,056
Non-Controlling Interest	-36,596	-32,226
Total Shareholders' Equity	5,488,028	5,632,830
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$9,040,738	$9,714,592

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Condensed Consolidated Balance Sheets [Abstract]	'	'
Preferred stock, par value per share	$0.00	$0.00
Preferred stock, shares authorized	30,000,000	30,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value per share	$0.00	$0.00
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	16,067,775	15,843,005
Common stock, shares outstanding	16,067,775	15,843,005

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations and Comprehensive Income (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Condensed Consolidated Statements of Operations and Comprehensive Income [Abstract]	'	'
Net Revenue	$2,684,964	$3,965,365
Cost of Goods Sold	1,202,518	2,190,681
Gross Profit	1,482,446	1,774,684
Selling and marketing	'	'
Commissions and consulting	360,559	259,769
Other selling and marketing expenses	609,463	497,229
Total selling and marketing	970,022	756,998
General and administrative	'	'
Salary and personnel costs	584,683	485,730
Professional fees and consulting costs	585,226	366,842
Other general and administrative expenses	164,035	656,103
Total general and administrative	1,333,944	1,508,675
Total operating costs and expenses	2,303,966	2,265,673
Operating Loss	-821,520	-490,989
Other (Expense) Income	'	'
Interest expense	-27,545	-19,745
Other	-1,088	56,615
Total other (expense) income	-28,633	36,870
Loss Before Income Taxes	-850,153	-454,119
Income Tax Expense	'	7,996
Net Loss	-850,153	-462,115
Net Loss Attributable to Non-Controlling Interest	-4,371	-4,122
Net Loss Attributable to Common Shareholders	-845,782	-457,993
Basic and Diluted Earnings per Share:	'	'
Weighted average shares outstanding	15,967,533	12,137,997
Loss per share	($0.05)	($0.04)
Other Comprehensive Income:	'	'
Foreign currency translation adjustment	25,546	75,551
Comprehensive loss	($820,236)	($382,442)

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Cash Flows (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Cash Flows from Operating Activities:	'	'
Net Loss	($850,153)	($462,115)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Depreciation and amortization	69,898	143,284
Loss on disposal of fixed assets	2,468	'
(Recovery) provision for bad debts	-152,875	201,622
Provision for obsolete inventory	25,018	-47,031
Stock issued for services	91,254	98,250
Changes in operating assets and liabilities:	'	'
Accounts receivable	775,198	-444,845
Inventories	-680,041	18,098
Prepaid expenses and other current assets	102,914	5,175
Accounts payable	-570,238	-3,123
Accrued expenses	-257,994	-255,045
Other current liabilities	505,923	148,743
Net cash used in operating activities	-938,628	-596,987
Cash Flows from Investing Activities:	'	'
Purchase of furniture and equipment	-40,975	-12,037
Purchase of injection molds	'	-35,139
Advances / repayments related parties	'	-8,027
Net cash used in investing activities	-40,975	-55,203
Cash Flows from Financing Activities:	'	'
Net (repayments) proceeds of credit facility	-105,326	89,626
Proceeds from shareholders' loans	'	310,000
Repayment of loans and notes	-1,858	-6,232
Proceeds from sale of common stock	192,000	'
Less issuance costs	-10,000	'
Net cash provided by financing activities	74,816	393,394
Effect of exchange rate changes on cash	27,111	42,821
Decrease in cash	-877,676	-215,975
Cash, Beginning of Period	2,872,946	412,488
Cash, End of Period	1,995,270	196,513
Supplemental Information:	'	'
Cash paid for interest	27,545	19,745
Supplemental Noncash Investing and Financing Activities	'	'
Stock issued to satisfy accrual	$5,000	'

Condensed_Consolidated_Stateme2

Condensed Consolidated Statements of Changes in Equity (USD $)	Total	Preferred Stock [Member]	Common Stock [Member]	Additional Paid In Capital [Member]	Subscription/Stock Receivable [Member]	Accumulated Deficit [Member]	Other Comprehensive Income [Member]	Total Shareholders' Equity [Member]	Non-Controlling Interest [Member]
Balance at Dec. 31, 2013	$5,632,830	'	$15,843	$14,163,593	($194,500)	($8,307,421)	($12,462)	$5,665,053	($32,225)
Balance, shares at Dec. 31, 2013	'	'	15,843,005	'	'	'	'	'	'
Shares Issued:	'	'	'	'	'	'	'	'	'
Sold to private investors	5,000	'	5	4,995	'	'	'	5,000	'
Sold to private investors, shares	'	'	5,000	'	'	'	'	'	'
Private investment in public equity	192,000	'	'	'	192,000	'	'	192,000	'
Less: Issuance costs	-10,000	'	'	-10,000	'	'	'	-10,000	'
For services	'	'	'	'	'	'	'	'	'
Investor relations	106,560	'	48	106,512	'	'	'	106,560	'
Investor relations, shares	'	'	48,000	'	'	'	'	'	'
Distributor award	19,520	'	8	19,512	'	'	'	19,520	'
Distributor award, shares	8,000	'	8,000	'	'	'	'	'	'
Consulting	358,400	'	160	358,240	'	'	'	358,400	'
Consulting, shares	'	'	160,000	'	'	'	'	'	'
Board of Directors	8,325	'	4	8,321	'	'	'	8,325	'
Board of Directors, shares	'	'	3,750	'	'	'	'	'	'
Fractional shares from reverse split	'	'	'	'	'	'	'	'	'
Other comprehensive income	25,546	'	'	'	'	'	25,546	25,546	'
2014 Net Loss	-850,153	'	'	'	'	-845,782	'	-845,782	-4,371
Balance at Mar. 31, 2014	$5,488,028	'	$16,067,755	$14,651,175	($2,500)	($9,153,203)	$13,084	$5,524,624	($36,596)
Balance, shares at Mar. 31, 2014	'	'	16,068	'	'	'	'	'	'

ORGANIZATION_AND_NATURE_OF_BUS

ORGANIZATION AND NATURE OF BUSINESS	3 Months Ended
	Mar. 31, 2014
ORGANIZATION AND NATURE OF BUSINESS [Abstract]	'
ORGANIZATION AND NATURE OF BUSINESS	'
	NOTE 1. - ORGANIZATION AND NATURE OF BUSINESS
	Terms and Definitions
		ASC	Accounting Standards Codification
		ASU	Accounting Standards Update
		FASB	Financial Accounting Standards Board
		FIFO	First-in, First-out
		US GAAP	Accounting principles generally accepted in the United States of America
		SEC	Securities and Exchange Commission
		2013-QTR	Three months ended March 31, 2013
		2013-YTD	Year ended December 31, 2013
		2014-QTR	Three months ended March 31, 2014
		VIE	Variable Interest Entity
	Organization and Nature of Business
	DS Healthcare Group, Inc. (d/b/a DS Laboratories) (the "Company", "DS Laboratories", "DSKX", "we", "us" or "our") was organized under the laws of the State of Florida in January 2007. Through its predecessors, the Company has been developing and marketing hair care, skin care and personal care products for over fifteen years. The Company has grown steadily over the last few years with a network of top specialty retailers and distributors throughout North America, Europe, Asia and South America. The Company researches and develops its own products, which management believes keeps the Company at the forefront of innovation. Management believes the Company is currently a leading innovator of (1) "Liposome Technology", which acts as a carrier agent, and has been designed to enhance the action of the active ingredients in our products, and (2) "Nanosome Technology", which acts as a delivery vehicle, and has been designed to infuse active compounds into targeted cells for increased efficiency of our products. We currently offer products are within the following broad product categories:  Hair Care, Skin Care and Personal Care.

SUMMARY_OF_SIGNIFICANT_ACCOUNT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2014
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]	'
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	'
	NOTE 2. - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	Principles of Consolidation and Presentation
	The condensed consolidated financial statements are prepared using the accrual basis of accounting where revenues and expenses are recognized in the period in which they were incurred. The basis of accounting conforms to US GAAP.
	The condensed consolidated financial statements include the accounts of the Company and its operating subsidiaries DS Laboratories, Inc., Sigma Development and Holding Co., Inc., Polaris Labs, Inc., Nutra Origin, Inc. and Divine Skin Laboratories, S.A. de CV ("DS Mexico"). Also included in the condensed consolidated financial statements are the operating activities of Velocity Storage and Packaging, LLC and Wally Group, LLC an inactive entity, which are accounted for as VIEs. All significant intercompany balances and transactions have been eliminated in consolidation.
	Interim Condensed Consolidated Financial Statements
	The interim condensed consolidated financial statements presented herein have been prepared pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to such rules and regulations. The interim condensed consolidated financial statements should be read in conjunction with the Company's annual consolidated financial statements and related disclosures included in the Company's Annual Report on form 10-K, filed with the SEC on April 4, 2014. In the opinion of management, all adjustments (consisting only of a normal recurring nature) which are necessary to provide a fair presentation of financial position as of March 31, 2014 and the related operating results and cash flows for the interim periods presented have been made.  The results of operations, for the periods presented are not necessarily indicative of the results to be expected for future periods or for the year ending December 31, 2014.
	Prior Period Reclassifications
	Certain prior period amounts have been reclassified for comparability with the March 31, 2014 presentation. These reclassifications had no effect on previously reported net loss.
	Use of Estimates
	The preparation of condensed consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Although these estimates are based on management's knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results. We believe our estimates and assumptions are reasonable; however, such estimates and assumptions are subject to a number of risks and uncertainties that may cause actual results to differ materially from such estimates. Significant estimates and assumptions underlying these condensed consolidated financial statements include:
	·	Estimates of allowances for uncollectable accounts receivable,
	·	Estimates of inventory obsolescence and overhead and labor cost allocations,
	·	Estimates assuming future earning capacity of our intangible assets,
	·	Estimates of value of equity transactions for services rendered,
	·	Estimates of returned or damaged product, and
	·	Estimates made in our deferred income tax calculations, for which there is a full valuation allowance.
	Cash
	The Company maintains its cash in financial institutions located in the United States. At times, the Company's cash and cash equivalent balances may be uninsured or in deposit accounts that exceed the Federal Deposit Insurance Corporation ("FDIC") insurance limits. The Company has not experienced any losses in such accounts.
	Accounts Receivable
	Accounts receivable are reported at their net realizable value. The Company establishes an allowance for doubtful accounts based upon factors pertaining to the credit risk of specific customers, historical trends, and other information. Delinquent accounts are written-off when it is determined that the amounts are uncollectible. The Company also provides for allowances against accounts receivables for product returns and cooperative advertising allowances. At March 31, 2014 and December 31, 2013, the allowance for uncollectable accounts was $147,314 and $305,314, respectively, $210,000 and $210,000 respectively for defectives and product returns and $60,000 at both dates for advertising credits.
	Inventories
	Inventory is reported at the lower of cost or market on the FIFO method. Our inventory is subject to expiration and obsolescence. Accordingly, quantities purchased and sell through rates are periodically monitored for potential overstocking or pending expiration as a basis for establishing the appropriate reserve for any estimated expiration or obsolescence.
	Furniture and Equipment
	Furniture and equipment are recorded at cost and depreciation is provided using the double declining balance depreciation method in the United States and the straight line depreciation method in Mexico over the estimated useful lives of the assets, which range from 5 to 7 years. The Company recorded $23,035 and $28,058 in depreciation expense during 2014-QTR and 2013-QTR, respectively. Accumulated depreciation was $261,440 and $238,051 at March 31, 2014 and December 31, 2013, respectively. Expenditures for repairs and maintenance of equipment are charged to expense as incurred. Major replacements and betterments are capitalized and depreciated over the remaining useful lives of the assets.
	Revenue Recognition
	The Company's revenue recognition policies are in compliance with ASC Topic 605, "Revenue Recognition", which establishes criteria that must be satisfied before revenue is realized or realizable and earned. The Company recognizes revenue when all of the following four criteria are met:
	·	persuasive evidence of a sales arrangement exists,
	·	delivery has occurred,
	·	the sales price is fixed or determinable and
	·	collectability is probable.
	Shipping and handling charges related to sales transactions are recorded as sales revenues when billed to customers or included in the sales price.  Shipping and handling costs are included in cost of goods sold.
	Research and Development
	The Company currently maintains a functional laboratory employing two full time chemists, a part time chemist/consultant and a lab technician that identify new technology, test product alternatives and improve existing formulations. In addition, our founder and CEO devotes a substantial portion of his time in identifying new technologies and formulations to develop new products and improve existing products with the newest technology available. Such activities are expensed in the year incurred. Such costs include laboratory supplies, salaries, materials and consultant fees. These costs are classified as product development, salaries, selling, general and administrative expenses in the consolidated statements of operations, and amounted to $89,731 and $28,998 for 2014-QTR and 2013-QTR, respectively.
	Share-Based Payment
	The Company measures compensation cost for all employee stock-based awards at their fair values on the date of grant. Stock-based awards issued to non-employees are measured at their fair values on the date of grant, and are re-measured at each reporting period through their vesting dates. When a non-employee becomes an employee and continues to vest in the award, the fair value of the individual's award is re-measured on the date that he becomes an employee, and then is not subsequently re-measured at future reporting dates. The fair value of stock based awards is recognized as expense over the service period, net of estimated forfeitures, using the straight-line method for stock options and restricted stock. The Company uses the Black-Scholes option-pricing model to estimate the fair value of its stock-based awards.
	Subsequent Events
	Management has evaluated subsequent events or transactions occurring through the date the financial statements were issued. Management concluded that no additional subsequent events required disclosure in these financial statements except as disclosed.
	Functional Currency
	The U.S. dollar is the functional currency of our consolidated entities operating in the United States. The functional currency for our consolidated entity operating outside of the United States is the Mexican peso. We translate their financial statements into U.S. dollars as follows:
	·	Assets and liabilities are translated at the exchange rate in effect as of the financial statement date.
	·	Income statement accounts are translated using the weighted average exchange rate for the period.
	We include translation adjustments from currency exchange and the effect of exchange rate changes on intercompany transactions of a long-term investment nature as a separate component of shareholders' equity. There are currently no transactions of a long-term investment nature, nor any gains or losses from non-U.S. currency transactions.
	Earnings Per Share
	Basic earnings per share is computed by dividing net income (loss) attributable to shareholders by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per share reflects the potential dilution that could occur if stock options and other commitments to issue common stock were exercised or equity awards vest resulting in the issuance of common stock that could share in the earnings of the Company. Warrants to purchase 253,893 shares of common stock and options 32,633 shares of common stock were excluded from the earnings per share calculation because they would be anti-dilutive.

LIQUIDITY

LIQUIDITY	3 Months Ended
	Mar. 31, 2014
LIQUIDITY [Abstract]	'
LIQUIDITY	'
	NOTE 3. - LIQUIDITY
	We have sustained operational losses since our inception. At March 31, 2014, we had an accumulated deficit of $9,153,203. The Company cannot predict how long it will continue to incur further losses or whether it will ever become profitable which is dependent upon the reduction of certain operating expenses, success of new and existing products and increase in overall revenue. These conditions raise substantial doubt about the entity's ability to continue as a going concern.
	However, as of March 31, 2014, we had $1,995,270 in cash. While we have historically financed our operations and growth primarily through the successful issuance and sale of shares of our common stock, a line of credit and the issuance of promissory notes, the Company has started several new revenue initiatives creating additional revenue streams for the Company.  Some of these initiatives include; establish an online store scheduled to come online in the third quarter of 2014 and establish a hair treatment clinic.  We have also begun shipping ingredients for a private label product to a Fortune 500 healthcare company and have taken steps to increase our domestic and international presence. Although we cannot predict our success with these products and or projects, all are currently under way and in various stages of completion. We have commenced implementing, and will continue to implement, various measures to address our financial condition, including but not limited to:
	·	Continuing to seek debt and equity financing. However, there can be no assurances that the Company will be able to raise additional capital on favorable terms, or at all.
	·	We completed an operational budget for 2014 that sets changes in our processes to focus on profitability in 2014.  We are also implementing a feedback process with improved interdepartmental communication.
	Accordingly, the accompanying condensed consolidated financial statements have been prepared in conformity with US GAAP, which contemplates continuation of the Company as a going concern.  The condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and carrying amount or classification of assets or the amounts and classification of liabilities that may result from the outcome of this uncertainty. We have commenced implementing, and will continue to implement, various measures to address our financial condition.

RECENT_ACCOUNTING_PRONOUNCEMEN

RECENT ACCOUNTING PRONOUNCEMENTS	3 Months Ended
	Mar. 31, 2014
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract]	'
RECENT ACCOUNTING PRONOUNCEMENTS	'
	NOTE 4. - RECENT ACCOUNTING PRONOUNCEMENTS
	In March 2013, FASB issued ASU 2013-05, "Foreign Currency Matters: Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity," an amendment which allows an entity to release cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. This is effective for fiscal years and interim reporting periods beginning after December 15, 2013, with early adoption permitted. The adoption of this guidance did not have a material impact on our condensed consolidated financial statements or related disclosures.
	In July 2013, the FASB issued ASU 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists,". The amendments in this update require that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except under a few limited circumstances. The amendments in this update do not require new recurring disclosures. This new guidance is to be applied prospectively for interim and annual periods beginning after December 15, 2013. The adoption of ASU 2013-11 did not have a material impact on the Company's condensed consolidated financial statements.
	Management continually evaluates the potential impact, if any, of all recent accounting pronouncements on our condensed consolidated financial statements or related disclosures and, if significant, makes the appropriate disclosures required by such new accounting

INVENTORIES

INVENTORIES	3 Months Ended
	Mar. 31, 2014
INVENTORIES [Abstract]	'
INVENTORIES	'
	NOTE 5. - INVENTORIES
	Significant components of inventory at March 31, 2014 and December 31, 2013 consist primarily of:
		2014			2013
	Bulk product and raw materials	$	2,315,117		$	1,930,848
	Work in process		76,076			192,319
	Merchandise inventory		1,097,534			965,137
	Inventory in transit		443,614			164,005
	Less: Allowance		(574,739	)		(549,720	)
		$	3,357,602		$	2,702,579
	Management evaluated the inventory at March 31, 2014 and December 31, 2013 and reserved $574,739 and $549,720, respectively, as an allowance for slow moving and obsolete inventory. The allowance applies primarily to bulk product and raw materials where the chemical components have expired and the bottles, pumps and packaging materials are no longer being used in current production due to packaging changes or were in excess of quantities needed based on current production consumption. Generally, merchandise inventory does not require a reserve.

INTANGIBLE_ASSETS

INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2014
INTANGIBLE ASSETS [Abstract]	'
INTANGIBLE ASSETS	'
	NOTE 6. - INTANGIBLE ASSETS
	Significant components of intangible assets at March 31, 2014 and December 31, 2013 consist of:
		2014			2013
	Distribution rights in Brazil	$	750,000		$	750,000
	Less: Accumulated amortization		(337,500	)		(318,750	)
	Net distribution rights		412,500			431,250
	Pure Guild brand rights		159,086			159,086
	Less: Accumulated amortization		(96,265	)		(92,570	)
	Net brand right		62,821			66,516
	DS Mexico Customer list		932,000			932,000
	Less: Accumulated amortization		(144,032	)		(119,662	)
	Net customer list		787,968			812,338
	Goodwill		34,444			36,285
		$	1,297,733		$	1,346,389
	Brazilian distribution rights - During 2009, the Company issued 300,000 shares of common stock to a Brazilian distributor in exchange for a 10 year exclusive distribution agreement in Brazil. The transaction was valued at $2.50 per share. The Company, through its exclusive distributor, former joint venture partner and current shareholder, is currently commercializing its product lines and products for the Brazilian market, which was introduced in the 4th quarter of 2012. Such rights are being amortized over 10 years. $18,750 was amortized during both the three months ending March 31, 2014 and 2013, respectively.
	Pure Guild brand rights - During the 3rd quarter of 2009, we entered into an agreement with a customer/distributor to develop a private label brand of premium products and associated packaging materials. The Pure Guild brand of products was the result. As part of this project we obtained a 50% interest in the Pure Guild brand and the permanent exclusive rights to manufacture the Pure Guild products. In exchange for these rights, we provided $106,666 of product representing approximately 70% the initial stocking order. These rights were being amortized over 5 years, representing the basic term of the supplier agreement.
	During the second quarter of 2012, we acquired the remaining 50% ownership of the Pure Guild brand from our customer/distributor in exchange for release from the exclusive supplier agreement so that we may pursue promotion of the brand through our existing distributor network. As a convenience, we also accepted return of their remaining Pure Guild inventory, which amounted to $50,000, based on the original sales price. Because we have begun to revitalize the brands position in the market, we will modify the amortization term to appropriately reflect the remaining unamortized brand rights combined with the additional brand rights acquired, to 6 years. $3,695 has been amortized during both the three months ending March 31, 2014 and 2013, respectively.
	DS Mexico Customer list - In connection with the acquisition of our Mexican distributor, in November 2012, we acquired the customer list which was recorded at its fair value as determined by an independent appraiser. The asset is being amortized over its estimated useful life of 9 years. Accordingly, the Company recognized $24,370 and $44,348 of amortization expense in both the three months ended March 31, 2014 and 2013, respectively. The change in the gross value of the DS Mexico customer list is the result of foreign currency translation adjustment at March 31, 2014.
	Goodwill - Also in connection with the acquisition of our Mexican distributor, DS Mexico, we acquired goodwill which represents the excess of the fair value of consideration given over the fair value of the assets acquired. Its fair value was determined by an independent appraiser. The asset is not being amortized; however the Company will access the asset for impairment annually. The change in the gross value of the goodwill is the result of foreign currency translation adjustment at March 31, 2014.  At March 31, 2014, no impairment was considered necessary.
	The following table represents the amortized cost of the various assets over the remaining years, the weighted average remaining period is 6.99 years.
		2014			2015			2016		2017		Beyond		Total
	Asset:
	Brazil distribution rights	$	56,250		$	75,000		$	75,000	$	75,000	$	131,250	$	412,500
	Pure Guild brand rights		11,085			14,780			14,780		14,780		7,396		62,821
	Mexican Customer list		77,625			103,500			103,500		103,500		399,843		787,968
		$	144,960		$	193,280		$	193,280	$	193,280	$	538,489	$	1,263,289

ACCRUED_EXPENSES

ACCRUED EXPENSES	3 Months Ended
	Mar. 31, 2014
ACCRUED EXPENSES [Abstract]	'
ACCRUED EXPENSES	'
	NOTE 7. - ACCRUED EXPENSES
	Accrued expenses at March 31, 2014 and December 31, 2013 consist of:
		2014		2013
	Accrued expenses:
	Advertising and marketing	$	8,264	$	12,264
	Commissions		25,265		261,151
	Director services		7,500		18,750
	Facilities		7,163		12,535
	Fees / interest		-		21,003
	Investor relations		396,532		390,703
	Production materials		81,671		144,543
	Personnel		52,000		70,000
	Professional fees		10,000		15,000
		$	588,395	$	945,949

OTHER_CURRENT_LIABILITIES

OTHER CURRENT LIABILITIES	3 Months Ended
	Mar. 31, 2014
OTHER CURRENT LIABILITIES [Abstract]	'
OTHER CURRENT LIABILITIES	'
	NOTE 8. - OTHER CURRENT LIABILITIES
	Other current liabilities at March 31, 2014 and December 31, 2013 consist of:
		2014		2013
	Customer deposits	$	78,138	$	29,959
	Credit cards		150,884		47,597
	VAT Taxes payable		135,741		142,848
	Current portion of long term debt		10,877		10,770
	Insurance premium financing		-		4,770
	Vendor financing		41,946		50,338
	Bank credit		179,048		-
	Vendor credit		112,564		-
	Other		83,007		-
		$	792,205	$	286,282

DEBT_FINANCING

DEBT FINANCING	3 Months Ended
	Mar. 31, 2014
DEBT FINANCING [Abstract]	'
DEBT FINANCING	'
	NOTE 9. - DEBT FINANCING
	Credit Facility - The Company is party to a credit facility which provides for asset based lending collateralized by all assets of the Company. Advances are based on 70% of qualified accounts receivable and 40% of eligible finished goods inventory. The credit facility as amended, provides for interest and bank fees, which currently aggregate to 8% (prime plus 3% plus 1.75% asset monitoring fees and other fees) per annum which has been renewed with a reduced $1.0 million credit facility and expires June 30, 2014 . The credit facility is personally guaranteed by our Chief Executive Officer and, under certain conditions, may be called upon demand. As of March 31, 2014 and December 31, 2013, the Company had $477,058 and $582,383 outstanding, respectively and $139,293 available to borrow as of March 31, 2014 based on its advance formulas for qualified accounts receivable and eligible finished goods inventory.
	Long Term Debt - On December 10, 2012, the Company entered into a loan agreement for $53,900 to purchase certain warehouse equipment. The loan provides for monthly payments of $1,041 for 60 months at 5.95% interest. Payments began on February 18, 2013.
	Principal payout over the life of the loan is as follows:
		2014		2015		2016		2017		Total
	Current Portion of Long Term Debt	$	9,019	$	1,858	$	-	$	-	$	10,877
	Long Term Debt		-		9,571		12,127		12,869		34,567
	Total	$	9,019	$	11,429	$	12,127	$	12,869	$	45,444

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2014
COMMITMENTS AND CONTINGENCIES [Abstract]	'
COMMITMENTS AND CONTINGENCIES	'
	NOTE 10. - COMMITMENTS AND CONTINGENCIES
	During the three months ended March 31, 2014 and the year ended December 31, 2013, the Company operated under several material agreements as listed below:
	Lease for office and production facilities -
		·	The Company is party to a lease for a total of 1,875 square feet in sales facilities located in Ashville, North Carolina. The leases provide for monthly rent of $4,725 throughout the lease term which both expire on December 31, 2015.
		·	The Company is party to a lease for 50,000 square feet in warehouse and corporate office space located in Deerfield Beach, Florida. The lease provides for monthly rent of $20,000 in the first six months and $27,000 per month thereafter. The lease term is for 22 months and expires in July 2014.  Management is currently in negotiation to renew the lease.
	The Company accounts for its facility leases using the straight-line method and incurred $99,884 and $94,246 in total rent expense in the three months ended March 31, 2014 and 2013, respectively.
	The Company is committed to lease payments over the next five years are as follows:
				2014		2015		Total
	Facility Leases:
	Deerfield Beach, Florida (Production) (HQ)			$	108,000	$	-	$	108,000
	Ashville, North Carolina (Sales)				42,521		56,695		99,216
				$	150,521	$	56,695	$	207,216
	Pending and threatened litigation -
	·
	The Company has received several pending and threatened litigations from various suppliers typically over non-payment for goods or services. Such vendor disputes are typical in the normal course of business. The Company has vigorously disputed those claims on the grounds of the substandard materials or services provided. In 2011, we received 5 supplier claims for certain advertising, human resource and consulting matters that we are disputing and filing counter claims. We settled four of these claims in 2012 and structured payouts representing our estimate of the amount due of $8,264 and $22,264 at March 31, 2014 and December 31, 2013, respectively.  We intend to vigorously defend the remaining claim.
	·
	We and our chief executive officer, individually, were named in a lawsuit brought in the Circuit Court of the 11th Judicial Circuit in and for Miami-Dade County, Florida in 2012 by a former contractor claiming wrongful termination. Plaintiff's complaint alleges $85,000 in back salary, performance bonus and a 40,000 share grant. The claim was settled in April 2014 for 21,513 shares of common stock with a fair value of $40,000 on the date of the agreement. See Note 15.
	·
	On June 13, 2011, we filed an action in the Circuit Court of the Eleventh Judicial Circuit in and for Miami-Dade County, Florida for the rescission of an investor relations and consulting agreement entered into on or about October 15, 2010 whereby we paid a third party approximately $20,000 and 23,000 shares of restricted common stock in consideration of investor relations and consulting services. We have demanded return of the 23,000 shares of restricted stock and recovery of costs and other damages. The third party has filed a counter claim for breach of the agreement. We intend to continue vigorously defend this claim.
	·
	During 2011, we filed an action in the Circuit Court of the Eleventh Judicial Circuit in and for Miami-Dade County, Florida for the rescission of an agreement entered into on or about May 18, 2010 whereby we paid a third party approximately $500 and 20,000 shares of restricted common stock in consideration of consulting services. We had demanded return of the 20,000 shares of restricted stock and recovery of costs and other damages. The claim was dismissed for lack of jurisdiction and we re-filed the action in the Supreme Court, New York County, New York on or about January 11, 2012, seeking rescission of said agreement and the return of $500 and 20,000 shares of restricted common stock.  During March 2014, the matter was settled and each party released the other from all claims related to the action.  Under a settlement matter and general release, the defendant agreed to return to Company treasury 10,000 shares common stock subject to the dispute, and of the remaining 10,000 shares, the defendant agreed to a one year lock up agreement covering 60% of the shares for a period of one year from the settlement date.
	From time to time, the Company may be involved in various claims and legal actions arising from the ordinary course of business.  In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company's condensed consolidated financial position or results of operations.
	Purchase commitments
	In order to secure an adequate supply of raw materials, the Company executes purchase orders to its suppliers as evidence of its intent to purchase materials. Purchase orders outstanding at March 31, 2014 totaled $1,540,951.
	Contract contingencies
	Our distribution agreement with Gamma Investors, a shareholder of the Company, provides that in the event we terminate the agreement without cause, we are required to repurchase all products held in Gamma's inventory and pay Gamma a fee equal to the greater of the prior 12 month product purchased by Gamma or $2 million. Transactions with Gamma have been de minimus to date.

EQUITY

EQUITY	3 Months Ended
	Mar. 31, 2014
EQUITY [Abstract]	'
EQUITY	'
	NOTE 11 - EQUITY
	Common Stock
	When shares are issued in lieu of cash for goods or services, such goods or services are valued based upon the shares issued multiplied by the closing price of the stock on the date immediately preceding such issuance.
	Under a Securities Purchase Agreement dated December 24, 2013, as amended (the "Securities Purchase Agreement"), the Company also sold 1,965,000 shares under a private placement, to a series of investors under a Securities Purchase Agreement at $1.60 per share for a total of $3,144,000. Fees were paid to a registered broker-dealer and legal counsel resulting in issuance costs of $151,051.  Under the Securities Purchase Agreement, the Company has agreed to restrict the issuance of shares of Common Stock or common stock equivalents for a period of approximately nine months from the closing date, subject to certain exceptions.  In addition, subject to certain exceptions, if during a period of twelve months from the closing date of the Securities Purchase Agreement, the Company issues additional shares of Common Stock or common stock equivalents (the "Additional Shares") at a purchase, exercise or conversion price less than $1.60 (such price subject to adjustment for splits, recapitalizations and reorganizations), then the Company shall issue additional shares of Common Stock to the purchasers so that the effective purchase price per share paid for the Common Stock shall be the same per share purchase, exercise or conversion price of the Additional Shares; provided, however, the Additional Shares, when aggregated with all issuances under the Securities Purchase Agreement, shall not exceed 19.99% of the issued and outstanding Common Stock of the Company immediately prior to the closing date of the Securities Purchase Agreement.
	During the first quarter of 2014, the Company issued 8,000 shares to a distributor for achieving sales goals valued at $2.44  per share, which resulted in a sales allowance of $19,520. We also issued 208,000 shares in aggregate to two investor relations ("IR") firms for services valued at $2.24 average per share or $464,960 in total. We also issued an aggregate of 3,750 shares to our three directors for services rendered valued at $2.22 average per share or $8,325 in total.

SIGNIFICANT_CUSTOMERS

SIGNIFICANT CUSTOMERS	3 Months Ended
	Mar. 31, 2014
SIGNIFICANT CUSTOMERS [Abstract]	'
SIGNIFICANT CUSTOMERS	'
	NOTE 12. - SIGNIFICANT CUSTOMERS
	Our product revenues represent primarily sales of Revita and Revita Cor which individually exceed 10% of total sales and collectively represent 38% of net revenue. Spectral DNC-N represents 9% of net revenue. The Company sells its products to several types of customer, which primarily include distributors and salons, several of which represent individually in excess of 10% of total net revenue during 2014-QTR and 2013-QTR. During 2014-QTR and 2013-QTR, our top ten customers generated 45% and 65% of our net revenue, respectively.
	Sales to customers individually in excess of 10% of net revenue during 2014-QTR and their accounts receivable at March 31, 2014 were:
	Customer	Sales	Percent	Accounts	Percent
		Amount		Receivable
	H	$378,310	13%	$249,413	12%
	Sales to customers individually in excess of 10% of net revenue during 2013-QTR and their accounts receivable at March 31, 2013 were:
	Customer	Sales	Percent	Accounts	Percent
		Amount		Receivable
	B	$438,526	11%	$347,782	12%
	F	$395,592	10%	$57,735	2%

SIGNIFICANT_VENDORS

SIGNIFICANT VENDORS	3 Months Ended
	Mar. 31, 2014
SIGNIFICANT VENDORS [Abstract]	'
SIGNIFICANT VENDORS	'
	NOTE 13. - SIGNIFICANT VENDORS
	The Company purchases its raw materials from various foreign and domestic suppliers several of which represent individually in excess of 10% of total purchases. Purchases of raw materials consist primarily of basic chemicals and packaging materials. The Company believes that it enjoys cordial relationships with all its suppliers but should the need arise; the Company believes that it could transition to alternate suppliers with minimal adverse impact. It does not have any formal long term purchase agreements with its suppliers. The Company does issue purchase orders based on its production plan, which may be modified or cancelled should its production plan change.
	Purchases from significant vendors during 2014-QTR and their accounts payable at March 31, 2014 were:
	Vendor	Purchase	Percent	Accounts	Percent
		Amount		Payable
	C	$325,731	28%	$   98,029	6%
	Purchases from significant venders during 2013-QTR and their accounts payable at March 31, 2013 were:
	Vendor	Purchase	Percent	Accounts	Percent
		Amount		Payable
	A	$316,377	19%	$202,852	9%
	C	$290,967	18%	$173,806	8%

GEOGRAPHIC_REVENUE_REPORTING

GEOGRAPHIC REVENUE REPORTING	3 Months Ended
	Mar. 31, 2014
GEOGRAPHIC REVENUE REPORTING [Abstract]	'
GEOGRAPHIC REVENUE REPORTING	'
	NOTE 14. - GEOGRAPHIC REVENUE REPORTING
	The Company is organized based on fundamentally one business segment although it does distribute its products on a world-wide basis. Several of its largest distributors are based in North America who in turn sell their products in Europe or Asia. We consider these customers as based in North America. However our sales to international distributors who distribute our product outside North America have been increasing.
	Information about the Company's geographic operations for both 2014-QTR and 2013-QTR as follows:
		2014		2013
	Net Revenue:
	North America	$	1,033,997	$	3,038,796
	International		1,650,967		926,569
		$	2,684,964	$	3,965,365
	Furniture and Equipment, Net:
	North America	$	119,530	$	157,343
	International		103,128		120,356
		$	222,658	$	277,699

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2014
SUBSEQUENT EVENTS [Abstract]	'
SUBSEQUENT EVENTS	'
	NOTE 15. - SUBSEQUENT EVENTS
	We and our chief executive officer, individually, were named in a lawsuit brought in the Circuit Court of the 11th Judicial Circuit in and for Miami-Dade County, Florida in 2012 by a former contractor claiming wrongful termination. Plaintiff's complaint alleges $85,000 in back salary, performance bonus and a 40,000 share grant. The claim was settled in April 2014 for 21,513 shares of common stock, which have not been issued as of the date of this report.

SUMMARY_OF_SIGNIFICANT_ACCOUNT1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy)	3 Months Ended
	Mar. 31, 2014
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]	'
Principles of Consolidation and Presentation	'
	Principles of Consolidation and Presentation
	The condensed consolidated financial statements are prepared using the accrual basis of accounting where revenues and expenses are recognized in the period in which they were incurred. The basis of accounting conforms to US GAAP.
	The condensed consolidated financial statements include the accounts of the Company and its operating subsidiaries DS Laboratories, Inc., Sigma Development and Holding Co., Inc., Polaris Labs, Inc., Nutra Origin, Inc. and Divine Skin Laboratories, S.A. de CV ("DS Mexico"). Also included in the condensed consolidated financial statements are the operating activities of Velocity Storage and Packaging, LLC and Wally Group, LLC an inactive entity, which are accounted for as VIEs. All significant intercompany balances and transactions have been eliminated in consolidation.
Interim Condensed Consolidated Financial Statements	'
	Interim Condensed Consolidated Financial Statements
	The interim condensed consolidated financial statements presented herein have been prepared pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to such rules and regulations. The interim condensed consolidated financial statements should be read in conjunction with the Company's annual consolidated financial statements and related disclosures included in the Company's Annual Report on form 10-K, filed with the SEC on April 4, 2014. In the opinion of management, all adjustments (consisting only of a normal recurring nature) which are necessary to provide a fair presentation of financial position as of March 31, 2014 and the related operating results and cash flows for the interim periods presented have been made.  The results of operations, for the periods presented are not necessarily indicative of the results to be expected for future periods or for the year ending December 31, 2014.
Prior Period Reclassifications	'
	Prior Period Reclassifications
	Certain prior period amounts have been reclassified for comparability with the March 31, 2014 presentation. These reclassifications had no effect on previously reported net loss.
Use of Estimates	'
	Use of Estimates
	The preparation of condensed consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Although these estimates are based on management's knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results. We believe our estimates and assumptions are reasonable; however, such estimates and assumptions are subject to a number of risks and uncertainties that may cause actual results to differ materially from such estimates. Significant estimates and assumptions underlying these condensed consolidated financial statements include:
	·	Estimates of allowances for uncollectable accounts receivable,
	·	Estimates of inventory obsolescence and overhead and labor cost allocations,
	·	Estimates assuming future earning capacity of our intangible assets,
	·	Estimates of value of equity transactions for services rendered,
	·	Estimates of returned or damaged product, and
	·	Estimates made in our deferred income tax calculations, for which there is a full valuation allowance.
Cash	'
	Cash
	The Company maintains its cash in financial institutions located in the United States. At times, the Company's cash and cash equivalent balances may be uninsured or in deposit accounts that exceed the Federal Deposit Insurance Corporation ("FDIC") insurance limits. The Company has not experienced any losses in such accounts.
Accounts Receivable	'
	Accounts Receivable
	Accounts receivable are reported at their net realizable value. The Company establishes an allowance for doubtful accounts based upon factors pertaining to the credit risk of specific customers, historical trends, and other information. Delinquent accounts are written-off when it is determined that the amounts are uncollectible. The Company also provides for allowances against accounts receivables for product returns and cooperative advertising allowances. At March 31, 2014 and December 31, 2013, the allowance for uncollectable accounts was $147,314 and $305,314, respectively, $210,000 and $210,000 respectively for defectives and product returns and $60,000 at both dates for advertising credits.
Inventories	'
	Inventories
	Inventory is reported at the lower of cost or market on the FIFO method. Our inventory is subject to expiration and obsolescence. Accordingly, quantities purchased and sell through rates are periodically monitored for potential overstocking or pending expiration as a basis for establishing the appropriate reserve for any estimated expiration or obsolescence.
Furniture and Equipment	'
	Furniture and Equipment
	Furniture and equipment are recorded at cost and depreciation is provided using the double declining balance depreciation method in the United States and the straight line depreciation method in Mexico over the estimated useful lives of the assets, which range from 5 to 7 years. The Company recorded $23,035 and $28,058 in depreciation expense during 2014-QTR and 2013-QTR, respectively. Accumulated depreciation was $261,440 and $238,051 at March 31, 2014 and December 31, 2013, respectively. Expenditures for repairs and maintenance of equipment are charged to expense as incurred. Major replacements and betterments are capitalized and depreciated over the remaining useful lives of the assets.
Revenue Recognition	'
	Revenue Recognition
	The Company's revenue recognition policies are in compliance with ASC Topic 605, "Revenue Recognition", which establishes criteria that must be satisfied before revenue is realized or realizable and earned. The Company recognizes revenue when all of the following four criteria are met:
	·	persuasive evidence of a sales arrangement exists,
	·	delivery has occurred,
	·	the sales price is fixed or determinable and
	·	collectability is probable.
	Shipping and handling charges related to sales transactions are recorded as sales revenues when billed to customers or included in the sales price.  Shipping and handling costs are included in cost of goods sold.
Research and Development	'
	Research and Development
	The Company currently maintains a functional laboratory employing two full time chemists, a part time chemist/consultant and a lab technician that identify new technology, test product alternatives and improve existing formulations. In addition, our founder and CEO devotes a substantial portion of his time in identifying new technologies and formulations to develop new products and improve existing products with the newest technology available. Such activities are expensed in the year incurred. Such costs include laboratory supplies, salaries, materials and consultant fees. These costs are classified as product development, salaries, selling, general and administrative expenses in the consolidated statements of operations, and amounted to $89,731 and $28,998 for 2014-QTR and 2013-QTR, respectively.
Share-Based Payment	'
	Share-Based Payment
	The Company measures compensation cost for all employee stock-based awards at their fair values on the date of grant. Stock-based awards issued to non-employees are measured at their fair values on the date of grant, and are re-measured at each reporting period through their vesting dates. When a non-employee becomes an employee and continues to vest in the award, the fair value of the individual's award is re-measured on the date that he becomes an employee, and then is not subsequently re-measured at future reporting dates. The fair value of stock based awards is recognized as expense over the service period, net of estimated forfeitures, using the straight-line method for stock options and restricted stock. The Company uses the Black-Scholes option-pricing model to estimate the fair value of its stock-based awards.
Subsequent Events	'
	Subsequent Events
	Management has evaluated subsequent events or transactions occurring through the date the financial statements were issued. Management concluded that no additional subsequent events required disclosure in these financial statements except as disclosed.
Functional Currency	'
	Functional Currency
	The U.S. dollar is the functional currency of our consolidated entities operating in the United States. The functional currency for our consolidated entity operating outside of the United States is the Mexican peso. We translate their financial statements into U.S. dollars as follows:
	·	Assets and liabilities are translated at the exchange rate in effect as of the financial statement date.
	·	Income statement accounts are translated using the weighted average exchange rate for the period.
	We include translation adjustments from currency exchange and the effect of exchange rate changes on intercompany transactions of a long-term investment nature as a separate component of shareholders' equity. There are currently no transactions of a long-term investment nature, nor any gains or losses from non-U.S. currency transactions.
Earnings per share	'
	Earnings Per Share
	Basic earnings per share is computed by dividing net income (loss) attributable to shareholders by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per share reflects the potential dilution that could occur if stock options and other commitments to issue common stock were exercised or equity awards vest resulting in the issuance of common stock that could share in the earnings of the Company. Warrants to purchase 253,893 shares of common stock and options 32,633 shares of common stock were excluded from the earnings per share calculation because they would be anti-dilutive.

INVENTORIES_Tables

INVENTORIES (Tables)	3 Months Ended
	Mar. 31, 2014
INVENTORIES [Abstract]	'
Schedule of the Significant Components of Inventory	'
	Significant components of inventory at March 31, 2014 and December 31, 2013 consist primarily of:
		2014			2013
	Bulk product and raw materials	$	2,315,117		$	1,930,848
	Work in process		76,076			192,319
	Merchandise inventory		1,097,534			965,137
	Inventory in transit		443,614			164,005
	Less: Allowance		(574,739	)		(549,720	)
		$	3,357,602		$	2,702,579

INTANGIBLE_ASSETS_Tables

INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2014
INTANGIBLE ASSETS [Abstract]	'
Schedule of Intangible Assets	'
	Significant components of intangible assets at March 31, 2014 and December 31, 2013 consist of:
		2014			2013
	Distribution rights in Brazil	$	750,000		$	750,000
	Less: Accumulated amortization		(337,500	)		(318,750	)
	Net distribution rights		412,500			431,250
	Pure Guild brand rights		159,086			159,086
	Less: Accumulated amortization		(96,265	)		(92,570	)
	Net brand right		62,821			66,516
	DS Mexico Customer list		932,000			932,000
	Less: Accumulated amortization		(144,032	)		(119,662	)
	Net customer list		787,968			812,338
	Goodwill		34,444			36,285
		$	1,297,733		$	1,346,389
Schedule of Future Amortization Expense for Intangible Assets	'
	The following table represents the amortized cost of the various assets over the remaining years, the weighted average remaining period is 6.99 years.
		2014			2015			2016		2017		Beyond		Total
	Asset:
	Brazil distribution rights	$	56,250		$	75,000		$	75,000	$	75,000	$	131,250	$	412,500
	Pure Guild brand rights		11,085			14,780			14,780		14,780		7,396		62,821
	Mexican Customer list		77,625			103,500			103,500		103,500		399,843		787,968
		$	144,960		$	193,280		$	193,280	$	193,280	$	538,489	$	1,263,289

ACCRUED_EXPENSES_Tables

ACCRUED EXPENSES (Tables)	3 Months Ended
	Mar. 31, 2014
ACCRUED EXPENSES [Abstract]	'
Schedule of Accrued Expenses	'
	Accrued expenses at March 31, 2014 and December 31, 2013 consist of:
		2014		2013
	Accrued expenses:
	Advertising and marketing	$	8,264	$	12,264
	Commissions		25,265		261,151
	Director services		7,500		18,750
	Facilities		7,163		12,535
	Fees / interest		-		21,003
	Investor relations		396,532		390,703
	Production materials		81,671		144,543
	Personnel		52,000		70,000
	Professional fees		10,000		15,000
		$	588,395	$	945,949

OTHER_CURRENT_LIABILITIES_Tabl

OTHER CURRENT LIABILITIES (Tables)	3 Months Ended
	Mar. 31, 2014
OTHER CURRENT LIABILITIES [Abstract]	'
Schedule of Other Current Liabilities	'
	Other current liabilities at March 31, 2014 and December 31, 2013 consist of:
		2014		2013
	Customer deposits	$	78,138	$	29,959
	Credit cards		150,884		47,597
	VAT Taxes payable		135,741		142,848
	Current portion of long term debt		10,877		10,770
	Insurance premium financing		-		4,770
	Vendor financing		41,946		50,338
	Bank credit		179,048		-
	Vendor credit		112,564		-
	Other		83,007		-
		$	792,205	$	286,282

DEBT_FINANCING_Tables

DEBT FINANCING (Tables)	3 Months Ended
	Mar. 31, 2014
DEBT FINANCING [Abstract]	'
Schedule of Long-Term Debt	'
	Principal payout over the life of the loan is as follows:
		2014		2015		2016		2017		Total
	Current Portion of Long Term Debt	$	9,019	$	1,858	$	-	$	-	$	10,877
	Long Term Debt		-		9,571		12,127		12,869		34,567
	Total	$	9,019	$	11,429	$	12,127	$	12,869	$	45,444

COMMITMENTS_AND_CONTINGENCIES_

COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
	Mar. 31, 2014
COMMITMENTS AND CONTINGENCIES [Abstract]	'
Schedule of Future Minimum Operating Lease Payments	'
	The Company is committed to lease payments over the next five years are as follows:
		2014		2015		Total
	Facility Leases:
	Deerfield Beach, Florida (Production) (HQ)	$	108,000	$	-	$	108,000
	Ashville, North Carolina (Sales)		42,521		56,695		99,216
		$	150,521	$	56,695	$	207,216

SIGNIFICANT_CUSTOMERS_Tables

SIGNIFICANT CUSTOMERS (Tables)	3 Months Ended
	Mar. 31, 2014
SIGNIFICANT CUSTOMERS [Abstract]	'
Schedule of Sales to Significant Customers	'
	Sales to customers individually in excess of 10% of net revenue during 2014-QTR and their accounts receivable at March 31, 2014 were:
	Customer	Sales	Percent	Accounts	Percent
		Amount		Receivable
	H	$378,310	13%	$249,413	12%
	Sales to customers individually in excess of 10% of net revenue during 2013-QTR and their accounts receivable at March 31, 2013 were:
	Customer	Sales	Percent	Accounts	Percent
		Amount		Receivable
	B	$438,526	11%	$347,782	12%
	F	$395,592	10%	$57,735	2%

SIGNIFICANT_VENDORS_Tables

SIGNIFICANT VENDORS (Tables)	3 Months Ended
	Mar. 31, 2014
SIGNIFICANT VENDORS [Abstract]	'
Schedule of Significant Purchases from Vendors	'
	Purchases from significant vendors during 2014-QTR and their accounts payable at March 31, 2014 were:
	Vendor	Purchase	Percent	Accounts	Percent
		Amount		Payable
	C	$325,731	28%	$   98,029	6%
	Purchases from significant venders during 2013-QTR and their accounts payable at March 31, 2013 were:
	Vendor	Purchase	Percent	Accounts	Percent
		Amount		Payable
	A	$316,377	19%	$202,852	9%
	C	$290,967	18%	$173,806	8%

GEOGRAPHIC_REVENUE_REPORTING_T

GEOGRAPHIC REVENUE REPORTING (Tables)	3 Months Ended
	Mar. 31, 2014
GEOGRAPHIC REVENUE REPORTING [Abstract]	'
Schedule of Revenues by Geographic Area	'
	Information about the Company's geographic operations for both 2014-QTR and 2013-QTR as follows:
		2014		2013
	Net Revenue:
	North America	$	1,033,997	$	3,038,796
	International		1,650,967		926,569
		$	2,684,964	$	3,965,365
	Furniture and Equipment, Net:
	North America	$	119,530	$	157,343
	International		103,128		120,356
		$	222,658	$	277,699

SUMMARY_OF_SIGNIFICANT_ACCOUNT2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)	3 Months Ended		12 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Summary Of Significant Accounting Policies [Line Items]	'	'	'
Provision for doubtful accounts receivable	$147,314	'	$305,314
Product return and defective reserve	210,000	'	210,000
Advertising credits	60,000	'	60,000
Depreciation expense	23,035	28,058	'
Accumulated depreciation	261,440	'	238,051
Contracted research and development expense	$89,731	$28,998	'
Minimum [Member]	'	'	'
Summary Of Significant Accounting Policies [Line Items]	'	'	'
Property and equipment, estimated useful life	'5 years	'	'
Maximum [Member]	'	'	'
Summary Of Significant Accounting Policies [Line Items]	'	'	'
Property and equipment, estimated useful life	'7 years	'	'
Stock Options [Member]	'	'	'
Summary Of Significant Accounting Policies [Line Items]	'	'	'
Anti-dilutive shares from the earnings per share calculation	32,633	'	'
Warrant [Member]	'	'	'
Summary Of Significant Accounting Policies [Line Items]	'	'	'
Anti-dilutive shares from the earnings per share calculation	253,893	'	'

LIQUIDITY_Details

LIQUIDITY (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013	Dec. 31, 2012
LIQUIDITY [Abstract]	'	'	'	'
Cash	$1,995,270	$2,872,946	$196,513	$412,488
Accumulated deficit	$9,153,203	$8,307,420	'	'

INVENTORIES_Details

INVENTORIES (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
INVENTORIES [Abstract]	'	'
Bulk product and raw materials	$2,315,117	$1,930,848
Work in process	76,076	192,319
Merchandise inventory	1,097,534	965,127
Inventory in transit	443,614	164,005
Less: Allowance	-574,739	-549,720
Inventory, net, total	3,357,602	2,702,579
Reserve for slow moving inventory	$574,739	$549,720

INTANGIBLE_ASSETS_Schedule_of_

INTANGIBLE ASSETS (Schedule of Intangible Assets) (Details) (USD $)

3 Months Ended

3 Months Ended

12 Months Ended

3 Months Ended

3 Months Ended

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Mar. 31, 2013

Dec. 31, 2009

Dec. 31, 2013

Mar. 31, 2014

Mar. 31, 2013

Jun. 30, 2012

Sep. 30, 2009

Dec. 31, 2013

Mar. 31, 2014

Mar. 31, 2013

Dec. 31, 2013

Distribution Rights In Brazil [Member]

Distribution Rights In Brazil [Member]

Distribution Rights In Brazil [Member]

Distribution Rights In Brazil [Member]

Pure Guild Brand Rights [Member]

Pure Guild Brand Rights [Member]

Pure Guild Brand Rights [Member]

Pure Guild Brand Rights [Member]

Pure Guild Brand Rights [Member]

DS Mexico Customer List [Member]

DS Mexico Customer List [Member]

DS Mexico Customer List [Member]

Finite-Lived Intangible Assets [Line Items]

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Finite-lived intangible asset, gross

'

'

$750,000

'

'

$750,000

$159,086

'

'

'

$159,086

$932,000

'

$932,000

Finite-lived intangible asset, accumulated amortization

'

'

-337,500

'

'

-318,750

-96,265

'

'

'

-92,570

-144,032

'

-119,662

Finite-lived intangible assets, net, total

'

'

412,500

'

'

431,250

62,821

'

'

'

66,516

787,968

'

812,338

Goodwill

34,444

36,285

'

'

'

'

'

'

'

'

'

'

'

'

Total intangible assets

1,297,733

1,346,389

'

'

'

'

'

'

'

'

'

'

'

'

Purchase of brand rights, shares

'

'

'

'

300,000

'

'

'

'

'

'

'

'

'

Duration of exclusive distribution agreement

'

'

'

'

'10 years

'

'

'

'

'

'

'

'

'

Common stock issued, price per share

'

'

'

'

$2.50

'

'

'

'

'

'

'

'

'

Amortization expense related to intangible assets

'

'

18,750

18,750

'

'

3,695

3,695

'

'

'

24,370

44,348

'

Product exchanged for rights

'

'

'

'

'

'

'

'

'

106,666

'

'

'

'

Approximate percentage of initial stocking order

'

'

'

'

'

'

'

'

'

70.00%

'

'

'

'

Percentage of brand license acquired

'

'

'

'

'

'

'

'

50.00%

50.00%

'

'

'

'

Inventory

'

'

'

'

'

'

'

'

$50,000

'

'

'

'

'

Amortization period of intangible asset

'6 years 11 months 27 days

'

'

'

'10 years

'

'6 years

'

'

'5 years

'

'9 years

'

'

INTANGIBLE_ASSETS_Schedule_of_1

INTANGIBLE ASSETS (Schedule of Future Amortization Expense for Intangible Assets) (Details) (USD $)	Mar. 31, 2014
Finite-Lived Intangible Assets [Line Items]	'
2014	$144,960
2015	193,280
2016	193,280
2017	193,280
Beyond	538,489
Amortized cost of assets	1,263,289
Brazil distribution rights [Member]	'
Finite-Lived Intangible Assets [Line Items]	'
2014	56,250
2015	75,000
2016	75,000
2017	75,000
Beyond	131,250
Amortized cost of assets	412,500
Pure Guild brand rights [Member]	'
Finite-Lived Intangible Assets [Line Items]	'
2014	11,085
2015	14,780
2016	14,780
2017	14,780
Beyond	7,396
Amortized cost of assets	62,821
Mexican Customer list [Member]	'
Finite-Lived Intangible Assets [Line Items]	'
2014	77,625
2015	103,500
2016	103,500
2017	103,500
Beyond	399,843
Amortized cost of assets	$787,968

ACCRUED_EXPENSES_Details

ACCRUED EXPENSES (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Accrued expenses:	'	'
Advertising and marketing	$8,264	$12,264
Commissions	25,265	261,151
Director services	7,500	18,750
Facilities	7,163	12,535
Fees/interest	'	21,003
Investor relations	396,532	390,703
Production materials	81,671	144,543
Personnel	52,000	70,000
Professional fees	10,000	15,000
Total Accrued Expenses	$588,395	$945,949

OTHER_CURRENT_LIABILITIES_Deta

OTHER CURRENT LIABILITIES (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
OTHER CURRENT LIABILITIES [Abstract]	'	'
Customer deposits	$78,138	$29,959
Credit cards	150,884	47,597
VAT Taxes payable	135,741	142,848
Current portion of long term debt	10,877	10,770
Insurance premium financing	'	4,770
Vendor financing	41,946	50,338
Bank credit	179,048	'
Vendor credit	112,564	'
Other	83,007	'
Other current liabilities	$792,205	$286,282

DEBT_FINANCING_Details

DEBT FINANCING (Details) (USD $)	1 Months Ended	3 Months Ended
	Dec. 31, 2012	Mar. 31, 2014	Dec. 31, 2013	Dec. 10, 2012
DEBT FINANCING [Abstract]	'	'	'	'
Credit facility maximum borrowing capacity	'	$1,000,000	'	'
Credit facility amount outstanding	'	477,058	582,383	'
Additional amount that can be borrowed on facility	'	139,293	'	'
Debt instrument, maturity date	'	30-Jun-14	'	'
The percentage of qualified accounts receivable that determines the amount of allowable advances under the credit facility	'	70.00%	'	'
The percentage of total finished goods inventory that determines the amount of allowable advances under the credit facility	'	40.00%	'	'
Credit facility interest rate	'	8.00%	'	'
Prime interest rate spread	'	3.00%	'	'
Percentage rate for monitoring and other fees per terms of credit facility agreement	'	1.75%	'	'
Debt instrument, face amount	'	'	'	53,900
Monthly payment amount	$1,041	'	'	'
Debt instrument, stated interest rate	'	'	'	5.95%
Initial term of loan	'60 months	'	'	'

DEBT_FINANCING_Schedule_of_the

DEBT FINANCING (Schedule of the Principal Payout of Debt) (Details) (USD $)	Mar. 31, 2014
Extinguishment of Debt [Line Items]	'
2014	$9,019
2015	11,429
2016	12,127
2017	12,869
Total long-term debt	45,444
Long-term Debt [Member]	'
Extinguishment of Debt [Line Items]	'
2014	9,019
2015	1,858
2016	'
2017	'
Total long-term debt	10,877
Current Portion of Long Term Debt [Member]	'
Extinguishment of Debt [Line Items]	'
2014	'
2015	9,571
2016	12,127
2017	12,869
Total long-term debt	$34,567

COMMITMENTS_AND_CONTINGENCIES_1

COMMITMENTS AND CONTINGENCIES (Leases for Office and Production Facilities) (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Operating Leased Assets [Line Items]	'	'
Rent expenses	$99,884	$94,246
2014	150,521	'
2015	56,695	'
Total	207,216	'
Deerfield Beach, Florida (Production) [Member]	'	'
Operating Leased Assets [Line Items]	'	'
Monthly rent payment	27,000	'
Lease expiration period	31-Jul-14	'
Area of real estate space	50,000	'
Monthly rent payment , first six months	20,000	'
2014	108,000	'
2015	'	'
Total	108,000	'
Ashville, North Carolina (Sales) [Member]	'	'
Operating Leased Assets [Line Items]	'	'
Monthly rent payment	4,725	'
Lease expiration period	31-Dec-15	'
Area of real estate space	1,875	'
2014	42,521	'
2015	56,695	'
Total	$99,216	'

COMMITMENTS_AND_CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Pending and Threatened Litigation, Purchase Commitments and Contract Contingencies) (Details) (USD $)	1 Months Ended		3 Months Ended	12 Months Ended		1 Months Ended
	Mar. 31, 2014	Jun. 30, 2011	Mar. 31, 2014	Dec. 31, 2011	Dec. 31, 2013	Apr. 30, 2014
						Related Party Former Employee Litigation [Member]
Loss Contingencies [Line Items]	'	'	'	'	'	'
Accrued value of loss contingency	$8,264	'	$8,264	'	$22,264	'
Possible liability	'	'	'	'	'	85,000
Amount paid for prior services	'	20,000	'	500	'	'
Litigation for recission, number of shares	'	23,000	'	20,000	'	40,000
Shares issued for litigation settlement	'	'	'	'	'	21,513
Value of shares issued for litigation settlement	'	'	'	'	'	40,000
Number of common shares the defendant agreed to return to Company	10,000	'	'	'	'	'
Number of common shares, 60% subject to a one year lock up agreement	10,000	'	'	'	'	'
Percentage of common shares subject to a one year lock up agreement	60.00%	'	'	'	'	'
Long-term Purchase Commitment [Line Items]	'	'	'	'	'	'
Purchase orders outstanding	'	'	1,540,951	'	'	'
Fees required to pay by company if contract terminated	'	'	$2,000,000	'	'	'

EQUITY_Common_Stock_Details

EQUITY (Common Stock) (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2014	Dec. 31, 2013	Dec. 31, 2013
			IR Firm [Member]	Directors [Member]	Private Placement [Member]	Private Investors [Member]
Stockholders Equity Note [Line Items]	'	'	'	'	'	'
Stock issued as compensation for service	'	'	208,000	3,750	'	'
Issuance of common stock, per share	$2.44	'	$2.24	$2.22	$1.60	$1.12
Issuance of common stock for services	'	'	$464,960	$8,325	'	'
Distributor award, shares	8,000	'	'	'	'	'
Revenue allowance	19,520	'	'	'	'	'
Net proceeds from issuance of common stock	'	'	'	'	3,144,000	10,000
Shares issued, shares	'	'	'	'	1,965,000	8,943
Offering fees	$10,000	'	'	'	$151,051	'
Restriction period under the Securities Purchase Agreement	'	'	'	'	'9 months	'
Restriction price per share under the Securities Purchase Agreement	'	'	'	'	$1.60	'
Percent restriction of aggregated issuances under the Securities Purchase Agreement	'	'	'	'	19.99%	'

SIGNIFICANT_CUSTOMERS_Details

SIGNIFICANT CUSTOMERS (Details) (USD $)

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2013

Mar. 31, 2014

Mar. 31, 2013

Mar. 31, 2013

Mar. 31, 2013

Mar. 31, 2013

Mar. 31, 2014

Mar. 31, 2014

Mar. 31, 2014

Mar. 31, 2014

Mar. 31, 2014

Mar. 31, 2013

Sales Amount [Member]

Customer B [Member]

Customer B [Member]

Customer F [Member]

Customer F [Member]

Customer H [Member]

Customer H [Member]

Revita and Revita Cor [Member]

Spectral DNC-N [Member]

Top Ten Customers [Member]

Top Ten Customers [Member]

Accounts Receivable [Member]

Sales Amount [Member]

Accounts Receivable [Member]

Sales Amount [Member]

Accounts Receivable [Member]

Sales Amount [Member]

Net Revenue [Member]

Net Revenue [Member]

Net Revenue [Member]

Net Revenue [Member]

Concentration Risk [Line Items]

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Sales Amount

'

'

'

'

'

$438,526

'

$395,592

$378,310

'

'

'

'

'

Accounts Receivable

$1,607,006

$2,229,329

$2,368,864

'

$347,782

'

$57,735

'

'

$249,413

'

'

'

'

Concentration risk percentage

'

'

'

10.00%

12.00%

11.00%

2.00%

10.00%

13.00%

12.00%

38.00%

9.00%

45.00%

65.00%

SIGNIFICANT_VENDORS_Details

SIGNIFICANT VENDORS (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
			Vendor A [Member]	Vendor A [Member]	Vendor C [Member]	Vendor C [Member]	Vendor C [Member]	Vendor C [Member]
			Purchase Amount [Member]	Accounts Payable [Member]	Purchase Amount [Member]	Purchase Amount [Member]	Accounts Payable [Member]	Accounts Payable [Member]
Concentration Risk [Line Items]	'	'	'	'	'	'	'	'
Purchase Amount	'	'	$316,377	'	$325,731	$290,967	'	'
Concentration risk percentage	'	'	19.00%	9.00%	28.00%	18.00%	6.00%	8.00%
Accounts payable	$1,660,485	$2,230,723	'	$202,852	'	'	$98,029	$173,806

GEOGRAPHIC_REVENUE_REPORTING_D

GEOGRAPHIC REVENUE REPORTING (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Segment Reporting Information [Line Items]	'	'	'
Net revenue	$2,684,964	$3,965,365	'
Furniture and Equipment, net	222,658	277,699	206,958
North America [Member]	'	'	'
Segment Reporting Information [Line Items]	'	'	'
Net revenue	1,033,997	3,038,796	'
Furniture and Equipment, net	119,530	157,343	'
International [Member]	'	'	'
Segment Reporting Information [Line Items]	'	'	'
Net revenue	1,650,967	926,569	'
Furniture and Equipment, net	$103,128	$120,356	'

SUBSEQUENT_EVENTS_Details

SUBSEQUENT EVENTS (Details) (USD $)	1 Months Ended	12 Months Ended	1 Months Ended
	Jun. 30, 2011	Dec. 31, 2011	Apr. 30, 2014	Apr. 30, 2014
			Related Party Former Employee Litigation [Member]	Subsequent Event [Member]
				Related Party Former Employee Litigation [Member]
Subsequent Event [Line Items]	'	'	'	'
Possible liability	'	'	$85,000	$85,000
Litigation for recission, number of shares	23,000	20,000	40,000	40,000
Shares issued for litigation settlement	'	'	21,513	21,513