DS Healthcare (DSKX) 10-Q/A 14 Oct 16 2015 Q1 Quarterly report (amended) Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2015	Oct. 14, 2016
Document and Entity Information [Abstract]
Document Type	10-Q/A
Amendment Flag	true
Amendment Description	The company will be filing amended 10-Qs for the periods ending March 31, 2015, June 30, 2015 and September 30, 2015. These amended financial statements will include adjustments to the comparable financial statements for 2014. The company became aware of the need to issue amended financial reports on or about September 25th as part of the audit of its financials by its independent auditor, BF Borges CPA PC. The total impact of the adjustments for the nine months ending September 30, 2015 amount to an increased net loss of $1,125,792. The primary adjustments are between periods within 2015 and the company deemed that the adjustments required the filing of adjusted quarterly financial reports.
Document Period End Date	Mar. 31, 2015
Entity Registrant Name	DS HEALTHCARE GROUP, INC.
Entity Central Index Key	1,463,959
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,015
Entity Filer Category	Smaller Reporting Company
Entity Units Outstanding		32,320,981

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2015	Dec. 31, 2014
Current Assets
Cash	$ 652,093	$ 1,128,556
Accounts receivable, net	1,555,444	1,678,411
Inventories, net	3,945,007	3,862,532
Prepaid expenses and other current assets	277,883	278,714
Total Current Assets	6,430,427	6,948,213
Furniture and Equipment, net	150,795	169,495
Intangible Assets, net	751,011	1,101,373
Other Assets	74,497	62,247
TOTAL ASSETS	7,406,730	8,281,328
Current Liabilities
Accounts payable	1,252,978	1,486,758
Accrued expenses	968,983	1,017,112
Note payable	350,000	350,000
Other current liabilities	625,510	886,822
Total Current Liabilities	3,197,471	3,740,692
Long Term Debt, net of current portion	22,032	24,997
TOTAL LIABILITIES	3,219,503	3,765,689
COMMITMENTS AND CONTINGENCIES
Shareholders' Equity
Preferred stock, $0.001 par value, 30,000,000 shares authorized: 0 shares issued and outstanding at March 31, 2015 and December 31, 2014
Common stock, $0.001 par value, 300,000,000 shares authorized: 16,328,058 and 16,202,268 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively	16,328	16,202
Additional paid-in-capital	14,940,069	14,839,695
Stock subscription	217,500	(2,500)
Accumulated deficit	(11,105,490)	(10,235,944)
Accumulated comprehensive income	157,250	(63,384)
Total Shareholders' Equity	4,225,657	4,554,069
Non-Controlling Interest	(38,430)	(38,430)
Total Shareholders' Equity	4,187,227	4,515,639
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 7,406,730	$ 8,281,328

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Preferred stock, par value per share	$ 0.001	$ 0.001
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	$ 0.001	$ 0.001
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	16,328,058	16,202,268
Common stock, shares outstanding	16,328,058	16,202,268

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Income Statement [Abstract]
Net Revenue	$ 2,698,010	$ 2,684,964
Cost of Goods Sold	1,214,215	1,391,547
Gross Profit	1,483,795	1,293,417
Selling and marketing
Commissions and consulting	169,372	360,559
Other selling and marketing expenses	620,906	609,463
Total selling and marketing	790,278	970,022
General and administrative
Salary and personnel costs	512,451	584,683
Professional fees and consulting costs	377,399	591,896
Other general and administrative expenses	440,333	164,035
Total general and administrative	1,330,183	1,340,614
Total operating costs and expenses	2,120,461	2,310,636
Operating Loss	(636,666)	(1,017,219)
Other Income (Expense)
Interest expense	(15,855)	(27,545)
Impairment of intangible asset	(337,500)
Other	120,475	(1,088)
Total other income (expense)	(232,880)	(28,633)
Net Loss	(869,546)	(1,045,852)
Net Loss Attributable to Non-Controlling Interest		(4,371)
Net Loss Attributable to Common Shareholders	$ (869,546)	$ (1,041,481)
Basic and Diluted Earnings per Share:
Weighted average shares outstanding	16,256,461	15,967,533
Net Loss per share	$ (0.05)	$ (0.07)
Other Comprehensive Loss:
Foreign currency translation adjustment	$ (14,893)	$ 25,546
Comprehensive loss	$ (884,439)	$ (1,015,935)

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash Flows from Operating Activities:
Net Loss	$ (869,546)	$ (1,045,852)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	32,307	69,898
Loss on disposal of fixed assets		2,468
Impairment of intangible asset	337,500
Recovery of bad debts	(16,119)	(152,875)
Provision for obsolete inventory	1,087	25,018
Stock issued for services	100,500	91,254
Changes in operating assets and liabilities:
Accounts receivable, net	139,088	775,198
Inventories, net	(83,561)	(535,012)
Prepaid expenses and other current assets	830	102,914
Other assets		26,000
Accounts payable	(233,781)	(545,568)
Accrued expenses	(48,129)	(257,994)
Other current liabilities	(261,312)	505,923
Net cash used in operating activities	(901,136)	(938,628)
Cash Flows from Investing Activities:
Purchase of furniture and equipment	526	(40,975)
Purchase of injection molds	(14,250)
Net cash used in investing activities	(13,724)	(40,975)
Cash Flows from Financing Activities:
Net repayments of credit facility		(105,326)
Repayment of loans and notes	(2,965)	(1,858)
Proceeds from sale of stock subscription	220,000
Proceeds from sale of common stock		192,000
Less issuance cost		(10,000)
Net cash provided by financing activities	217,035	74,816
Effect of exchange rate changes on cash	221,362	27,111
Decrease in Cash	(476,463)	(877,676)
Cash, Beginning of Period	1,128,556	2,872,946
Cash, End of Period	652,093	1,995,270
Supplemental Information:
Cash paid for interest		27,545
Supplemental Noncash Investing and Financing Activities
Stock issued to satisfy accrual		$ 5,000

ORGANIZATION AND NATURE OF BUSI

ORGANIZATION AND NATURE OF BUSINESS	3 Months Ended
	Mar. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [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 2014-QTR Three months ended March 31, 2014 2014-YTD Year ended December 31, 2014 2015-QTR Three months ended March 31, 2015 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. The Company utilizes two innovative technologies in its products, (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 within the following broad product categories: Hair Care, Skin Care and Personal Care.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2015
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., Polymer Research, 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, which are accounted for as VIEs. All significant intercompany balances and transactions have been eliminated in consolidation. On March 30, 2016, during the preparation of the Company’s 10-K, the company identified that certain transactions recorded in the company’s 10-K report for it consolidated financial statements for the years ended December 31, 2014 and the results of each quarterly 10-Q filings for the period ending September 30, 2015 became subject to an internal investigation. The internal investigation resulted in the company’s inability to timely file it’s for 10-Q as required. The Company continued its review these transactions with its newly appointed independent accountants, the results of which have now been corrected and reflected in the restated unaudited consolidated financial statements for the three months ended March 31, 2015. The corrective actions identified errors related to sales and customer returns and allowances, amounts with respect to the recognition of revenues and customer accounts receivable, and the recording of certain stock transactions. The Audit Committee of the Board of Directors consulted with management and analyzed the adjustments with the intent to correct the 2014 and 2015 10-Q filings to reflect these errors. However, because of the above mentioned errors, the Audit Committee has directed the Company to conduct a thorough review of the financial records for calendar years ended 2014 and 2015 along with its independent accountants and believes the restated financial statements for the three months ended March 31, 2015 and 2014 included herein to be fairly presented. 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 15, 2015. In the opinion of management, all adjustments (consisting only of those of a normal recurring nature) which are necessary to provide a fair presentation of financial position as of March 31, 2015 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, 2015. 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. 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, 2015 and December 31, 2014, the allowance for uncollectable accounts was $251,825 and $268,329, respectively, $210,000 at both dates 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. 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, · Shipping terms are FOB shipping point, · 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 a full time chemist, 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 condensed consolidated statements of operations, and amounted to $47,326 and $98,568 for 2015-QTR and 2014-QTR, respectively. Earnings Per Share Potentially dilutive securities are excluded from the computation of diluted net loss per share for all of the periods presented in the accompanying condensed consolidated statements of operations because the reported net loss in each of these periods results in their inclusion being antidilutive. Antidilutive securities, which consist of stock options and warrants that are not included in the diluted net loss per share calculation, consisted of an aggregate of 286,526 shares as of March 31, 2015 and 2014.

LIQUIDITY and GOING CONCERN

LIQUIDITY and GOING CONCERN	3 Months Ended
	Mar. 31, 2015
LIQUIDITY and GOING CONCERN [Abstract]
LIQUIDITY and GOING CONCERN	NOTE 3. – LIQUIDITY and GOING CONCERN We have sustained operational losses since our inception. At March 31, 2015, we had an accumulated deficit of $11,105,490. The Company cannot predict how long it will continue to incur further losses or whether it will ever become profitable as this is dependent upon the reduction of certain operating expenses, success of new and existing products and increase in overall revenue among other things. These conditions raise substantial doubt about the entity’s ability to continue as a going concern. As of March 31, 2015, we had $652,093 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. Some of these initiatives include: establishing an online store ( Shop.DSLaboratories.com ) which became operational in the third quarter of 2014, generating $131,107 2014-YTD and $85,636 2015-QTR in net revenue, respectively. The company also established a hair treatment clinic which opened in late November 2014 which has not yet generated appreciable sales. In the first quarter 2015, we have launched a range of new products. Although we cannot predict our success with these products or projects, all are currently under development and production 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 2015 that sets changes in our processes to focus on profitability. 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 PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	3 Months Ended
	Mar. 31, 2015
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	NOTE 4. – RECENT ACCOUNTING PRONOUNCEMENTS 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 pronouncements. In April 2015, the FASB issued ASU No. 2015-03(ASU 2015-03), Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs

RESTATEMENT OF FINANCIAL STATEM

RESTATEMENT OF FINANCIAL STATEMENTS	3 Months Ended
	Mar. 31, 2015
Restatement
RESTATEMENT OF FINANCIAL STATEMENTS	NOTE 5. – RESTATEMENT OF FINANCIAL STATEMENTS On September 28, 2016, during the preparation of the Company’s 10-K for the year ended December 31, 2015, the company identified certain transactions recorded in the company’s 10-K report for it consolidated financial statements for the years ended December 31, 2014 and the results of each quarterly 10-Q filings for the period ending March 31, 2015, June 30, 2015 and September 30, 2015, and determined these transactions did not reflect the proper matching of revenues and costs. The impact of these transactions on the Company’s financial statements for the year ended December 31, 2014, have been considered and have been disclosed and reported in the notes to the Company’s financial statements as reported in the annual 10-K report for the year ending December 31, 2014. The results of the quarterly 10-Q filing during the three months ending March 31, 2015, as previously filed, also did not reflect the proper matching of revenues and costs. The impact of this restatement, although not material, on the Company’s financial statements for the three months ended March 31, 2015 and 2014, are reflected in the tables below: Condensed Consolidated Balance Sheets: Previously Reported Adjustment Restated 2015 ASSETS Current Assets Cash $ 652,093 $ — $ 652,093 Accounts receivable, net 2,043,176 (487,732 ) 1,555,444 Inventories, net 4,142,457 (197,450 ) 3,945,007 Prepaid expenses and other current assets 277,884 (1 ) 277,883 Total Current Assets 7,115,610 (685,183 ) 6,430,427 Furniture and equipment, net 187,707 (36,912 ) 150,795 Intangible assets, net 1,088,511 (337,500 ) 751,011 Other assets 100,497 (26,000 ) 74,497 TOTAL ASSETS $ 8,492,325 $ (1,085,595 ) $ 7,406,730 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts payable $ 996,084 $ 256,894 $ 1,252,978 Accrued expenses 904,495 64,488 968,983 Note payable 350,000 — 350,000 Other current liabilities 625,510 — 625,510 Total Current Liabilities 2,876,089 321,382 3,197,471 Long Term Debt, net of current portion 22,032 — 22,032 TOTAL LIABILITIES 2,898,121 321,382 3,219,503 COMITMENTS AND CONTINGENCIES Shareholders' Equity Common stock, $0.001 par value, 300 million shares authorized: 16,328,058 and 16,202,268 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively 16,328 — 16,328 Additional paid-in-capital 14,940,069 — 14,940,069 Stock subscription 217,500 — 217,500 Accumulated deficit (9,698,513 ) (1,406,977 ) (11,105,490 ) Accumulated comprehensive income 157,250 — 157,250 Total Shareholders' Equity 5,632,634 (1,406,977 ) 4,225,657 Non-Controlling Interest (38,430 ) — (38,430 ) Total Shareholders' Equity 5,594,204 (1,406,977 ) 4,187,227 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 8,492,325 $ (1,085,595 ) $ 7,406,730 Previously Reported Adjustment Restated 2014 ASSETS Current Assets Cash $ 1,995,270 $ — $ 1,995,270 Accounts receivable, net 1,607,006 — 1,607,006 Inventories, net 3,357,602 (145,029 ) 3,212,573 Prepaid expenses and other current assets 493,963 — 493,963 Total Current Assets 7,453,841 (145,029 ) 7,308,812 Furniture and equipment, net 222,658 — 222,658 Intangible assets, net 1,297,733 — 1,297,733 Other assets 66,506 (26,000 ) 40,506 TOTAL ASSETS $ 9,040,738 $ (171,029 ) $ 8,869,709 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts payable $ 1,660,485 $ 24,670 $ 1,685,155 Accrued expenses 588,395 — 588,395 Credit facility 477,058 — 477,058 Other current liabilities 792,205 — 792,205 Total Current Liabilities 3,518,143 24,670 3,542,813 Long Term Debt, net of current portion 34,567 — 34,567 TOTAL LIABILITIES 3,552,710 24,670 3,577,380 COMITMENTS AND CONTINGENCIES Shareholders' Equity Common stock, $0.001 par value, 300 million shares authorized: 16,328,058 and 16,067,775 shares issued and outstanding at March 31, 2015 and 2014, respectively 16,068 — 16,068 Additional paid-in-capital 14,651,175 — 14,651,175 Stock subscription (2,500 ) — (2,500 ) Accumulated deficit (9,153,203 ) (195,699 ) (9,348,902 ) Accumulated comprehensive income 13,084 — 13,084 Total Shareholders' Equity 5,524,624 (195,699 ) 5,328,925 Non-Controlling Interest (36,596 ) (36,596 ) Total Shareholders' Equity 5,488,028 (195,699 ) 5,292,329 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 9,040,738 $ (171,029 ) $ 8,869,709 Condensed Consolidated Statements of Operations and Comprehensive Loss: Three Months Ended Previously Reported Adjustment Restated 2015 Net Revenue $ 2,803,920 $ (105,910 ) $ 2,698,010 Cost of Goods sold 1,138,760 75,455 1,214,215 Gross Profit 1,665,160 (181,365 ) 1,483,795 Operating Costs and Expenses: Selling and marketing Commissions and consulting 169,372 — 169,372 Other selling and marketing expenses 607,406 13,500 620,906 776,778 13,500 790,278 General and administrative Salary and personnel costs 512,451 — 512,451 Professional fees and consulting costs 376,411 988 377,399 Other general and administrative expenses 189,278 251,055 440,333 1,078,140 252,043 1,330,183 Total operating costs and expenses 1,854,918 265,543 2,120,461 Operating Loss (189,758 ) (446,908 ) (636,666 ) Other Income (Expense) Interest expense (15,855 ) — (15,855 ) Impairment of intangible asset — (337,500 ) (337,500 ) Other 120,475 — 120,475 Total other income (expense) 104,620 (337,500 ) (232,880 ) Net Loss (85,138 ) (784,408 ) (869,546 ) Net Loss Attributable to Non-Controlling Interest — — — Net Loss Attributable to Common Shareholders $ (85,138 ) $ (784,408 ) $ (869,546 ) Basic and Diluted Earnings per Share: Weighted average shares outstanding 16,256,461 — 16,256,461 Net Loss per share $ (0.01 ) $ (0.04 ) $ (0.05 ) Other Comprehensive Loss: Foreign currency translation adjustment $ (14,893 ) $ — $ (14,893 ) Comprehensive loss $ (100,031 ) $ (784,408 ) $ (884,439 ) Three Months Ended Previously Reported Adjustment Restated 2014 Net Revenue $ 2,684,964 $ 2,684,964 $ 2,684,964 Cost of Goods sold 1,202,518 189,029 1,391,547 Gross Profit 1,482,446 (189,029 ) 1,293,417 Operating Costs and Expenses: Selling and marketing Commissions and consulting 360,559 — 360,559 Other selling and marketing expenses 609,463 — 609,463 970,022 — 970,022 General and administrative Salary and personnel costs 584,683 — 584,683 Professional fees and consulting costs 585,226 6,670 591,896 Other general and administrative expenses 164,035 — 164,035 1,333,944 6,670 1,340,614 Total operating costs and expenses 2,303,966 6,670 2,310,636 Operating Loss (821,520 ) (195,699 ) (1,017,219 ) Other Income (Expense) Interest expense (27,545 ) — (27,545 ) Impairment of intangible asset — — — Other (1,088 ) — (1,088 ) Total other income (expense) (28,633 ) — (28,633 ) Net Loss (850,153 ) (195,699 ) (1,045,852 ) Net Loss Attributable to Non-Controlling Interest 4,371 — 4,371 Net Loss Attributable to Common Shareholders $ (845,782 ) $ (195,699 ) $ (1,041,481 ) Basic and Diluted Earnings per Share: Weighted average shares outstanding 15,967,533 — 15,967,533 Net Loss per share $ (0.05 ) $ (0.02 ) $ (0.07 ) Other Comprehensive Loss: Foreign currency translation adjustment $ 25,546 — $ 25,546 Comprehensive loss $ (820,236 ) $ (195,699 ) $ (1,015,935 ) Condensed Consolidated Statements of Cash Flows: For the Three Months Ended Previously Reported Adjustment Restated 2015 Cash Flows from Operating Activities: Net loss $ (85,138 ) $ (784,408 ) $ (869,546 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 32,307 — 32,307 Impairment of intangible asset — 337,500 337,500 Provision (Recovery) of bad debts (16,504 ) 385 (16,119 ) Provision for obsolete inventory 1,087 — 1,087 Stock issued for services 100,500 — 100,500 Changes in operating assets and liabilities: Accounts receivable, net (217,494 ) 356,582 139,088 Inventories, net (159,016 ) 75,455 (83,561 ) Prepaid expenses and other current assets 830 — 830 Accounts payable (233,780 ) (1 ) (233,781 ) Accrued expenses (62,617 ) 14,488 (48,129 ) Other current liabilities (261,311 ) (1 ) (261,312 ) Net cash used in operating activities (901,136 ) — (901,136 ) Cash Flows from Operating Activities: Proceeds from furniture and equipment 526 — 526 Purchases of injection molds (14,250 ) — (14,250 ) Net cash used in investing activities (13,724 ) — (13,724 ) Cash Flows from Financing Activities: Proceeds from loans and notes (2,965 ) — (2,965 ) Proceeds from stock subscriptions 220,000 — 220,000 Net cash provided by financing activities 217,035 — 217,035 Effect of exchange rate changes on cash 221,362 — 221,362 Decrease in cash (476,463 ) — (476,463 ) Cash, Beginning of Period 1,128,556 — 1,128,556 Cash, End of Period $ 652,093 $ — $ 652,093 For the Three Months Ended Previously Reported Adjustment Restated 2014 Cash Flows from Operating Activities: Net loss $ (850,153 ) $ (195,699 ) $ (1,045,852 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 69,898 — 69,898 Loss on disposal of fixed asset 2,468 — 2,468 Recovery of bad debts (152,875 ) — (152,875 ) Provision for obsolete inventory 25,018 — 25,018 Stock issued for services 91,254 — 91,254 Changes in operating assets and liabilities: Accounts receivable, net 775,198 — 775,198 Inventories, net (680,041 ) 145,029 (535,012 ) Prepaid expenses and other current assets 102,914 — 102,914 Other assets — 26,000 26,000 Accounts payable (570,238 ) 24,670 (545,568 ) Accrued expenses (257,994 ) — (257,994 ) Other current liabilities 505,923 — 505,923 Net cash used in operating activities (938,628 ) — (938,628 ) Cash Flows from Operating Activities: Purchase of furniture and equipment (40,975 ) — (40,975 ) Net cash used in investing activities (40,975 ) — (40,975 ) Cash Flows from Financing Activities: Repayments of credit facility (105,326 ) — (105,326 ) Repayment of loans and notes (1,858 ) — (1,858 ) Proceeds from sales of common stock 192,000 — 192,000 Less issuance cost (10,000 ) — (10,000 ) Net cash provided by financing activities 74,816 — 74,816 Effect of exchange rate changes on cash 27,111 — 27,111 Decrease in cash (877,676 ) — (877,676 ) Cash, Beginning of Period 2,872,946 — 2,872,946 Cash, End of Period $ 1,995,270 $ — $ 1,995,270

INVENTORIES

INVENTORIES	3 Months Ended
	Mar. 31, 2015
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 6. – INVENTORIES Significant components of inventory at March 31, 2015 and December 31, 2014 consist primarily of: 2015 2014 Bulk product and raw materials $ 2,416,001 $ 2,502,402 Work in process 274,790 213,832 Merchandise inventory 1,496,189 1,301,933 Inventory in transit 146,372 231,623 Less: Allowance (388,345 ) (387,258 ) $ 3,945,007 $ 3,862,532

INTANGIBLE ASSETS

INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	NOTE 7. – INTANGIBLE ASSETS Significant components of intangible assets at March 31, 2015 and December 31, 2014 consist of: 2015 2014 Distribution rights in Brazil $ 750,000 $ 750,000 Less: Accumulated amortization (750,000 ) (393,750 ) Net distribution rights --- 356,250 DS Mexico customer list 932,000 932,000 Less: Accumulated amortization (217,274 ) (223,162 ) Net customer list 714,726 708,838 Goodwill 36,285 36,285 $ 751,011 $ 1,101,373 The following table represents the amortized cost of the various assets over the remaining years; the weighted average remaining period is 6.13 years. 2015 2016 2017 2018 Beyond Total Asset: Mexican Customer list 77,625 103,500 103,500 103,500 326,601 714,726 $ 77,625 $ 103,500 $ 103,500 $ 103,500 $ 326,601 $ 714,726

ACCRUED EXPENSES

ACCRUED EXPENSES	3 Months Ended
	Mar. 31, 2015
Payables and Accruals [Abstract]
ACCRUED EXPENSES	NOTE 8. – ACCRUED EXPENSES Accrued expenses at March 31, 2015 and December 31, 2014 consist of: 2015 2014 Advertising and marketing $ — $ 35,000 Commissions 315,729 367,063 Director services 1,510 15,000 Facilities 16,480 10,300 Fees / interest 10,500 7,000 Investor relations 301,652 265,024 Production materials 109,320 102,958 Stock awards 50,988 50,000 Personnel 121,321 108,819 Warehouse 41,483 55,948 $ 968,983 $ 1,017,112 Investor relations

OTHER CURRENT LIABILITIES

OTHER CURRENT LIABILITIES	3 Months Ended
	Mar. 31, 2015
Other Liabilities, Current [Abstract]
OTHER CURRENT LIABILITIES	NOTE 9. – OTHER CURRENT LIABILITIES Other current liabilities at March 31, 2015 and December 31, 2014 consist of: 2015 2014 Customer deposits $ 178,371 $ 141,998 Credit cards 198,815 190,803 Marketing and promotional programs 102,772 227,681 VAT taxes payable 77,795 173,567 Current portion of long-term debt 11,599 11,429 Loan from shareholder 10,000 — Vendor financing 25,174 25,174 Advance from employee — 26,360 Promotional gift cards 4,645 — Payroll taxes 16,139 — Other current liabilities 200 89,810 $ 625,510 $ 886,822

DEBT FINANCING

DEBT FINANCING	3 Months Ended
	Mar. 31, 2015
Debt Disclosure [Abstract]
DEBT FINANCING	NOTE 10. – DEBT FINANCING Note Payable Long Term Debt Principal payout over the life of the loan is as follows: 2015 2016 2017 Total Current Portion of Long Term Debt $ 8,635 $ 2,964 $ — $ 11,599 Long Term Debt — 9,163 12,869 22,032 Total $ 8,635 $ 12,127 $ 12,869 $ 33,631

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 11. – COMMITMENTS AND CONTINGENCIES During the three months ended March 31, 2015, 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. Effective September 30, 2014 the Company has relocated this office to its Florida headquarters and as of March 31, 2015 is still in negotiations with the landlord to formalize the lease termination. · The Company was party to a lease for 50,000 square feet in warehouse and corporate office space located in Deerfield Beach, Florida, which expired in July 2014. On June 25, 2014, commencing August 1, 2014, the Company completed negotiations for a new lease for the same Deerfield Beach location. The terms of the new lease provide for $6.00 per square foot or $24,720 per month base rent plus $10,918 monthly in operating expenses and terminates on July 31, 2019. The lease provides for annual increases in the monthly base rent of $0.24- $0.27 per square foot. The Company’s Mexican facility leases 246 square feet of office space and 1,230 square feet of warehouse Mexico City, Mexico, which expires in July 2015. The leases provide for monthly rent of $1,408. The Company accounts for its facility leases using the straight-line method and incurred $106,914 and $99,884 in total rent expense in the three months ended March 31, 2015 and 2014, respectively. The Company is committed to lease payments over the next five years as follows: 2015 2016 2017 2018 2019 Total Facility Leases Deerfield, FL (HQ/Production) $ 325,686 $ 444,672 $ 457,238 $ 470,298 $ 278,882 $ 1,976,776 Mexico City, Mexico (Sales) 5,786 — — — — 5,786 $ 331,472 $ 444,672 $ 457,238 $ 470,298 $ 278,882 $ 1,982,562 Pending and threatened litigation – 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. As of March 31, 2015, the agreed shares have not been returned to treasury.

EQUITY

EQUITY	3 Months Ended
	Mar. 31, 2015
Stockholders' Equity Note [Abstract]
EQUITY	NOTE 12 – EQUITY Common Stock During the first quarter of 2015, the Company issued 32,500 shares of common stock to distributors for achieving sales goals valued at $27,000. We also issued 57,000 shares of common stock in aggregate to two investor relations (“IR”) firms for services valued at $43,500 in total. We also issued an aggregate of 36,290 shares of common stock to three employees for services rendered, at a value of $30,000 in total. We also received $220,000 from an investor for a subscription to purchase 440,000 shares, which was accepted on April 1, 2015. (See Note 16).

SIGNIFICANT CUSTOMERS

SIGNIFICANT CUSTOMERS	3 Months Ended
	Mar. 31, 2015
SIGNIFICANT CUSTOMERS [Abstract]
SIGNIFICANT CUSTOMERS	NOTE 13. – SIGNIFICANT CUSTOMERS Our product revenues represent primarily sales of Revita and Revita Cor which individually exceed 10% of total sales and collectively represent 46% of net revenue. Spectral DNC-N represents 10% of net revenue and Spectral DNC-s V1 and DNC-5% each represent 6% 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 2015-QTR and 2014-QTR. During 2015-QTR and 2014-QTR, our top ten customers generated 72% and 45% of our net revenue, respectively. Sales to customers individually in excess of 10% of net revenue during 2015-QTR and their accounts receivable at March 31, 2015 were: Customer Sales Amount Percent Accounts Receivable Percent H $304,949 13% $366,835 14% F $261,086 11% $207,631 8% 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 Amount Percent Accounts Receivable Percent H $378,310 13% $249,413 12%

SIGNIFICANT VENDORS

SIGNIFICANT VENDORS	3 Months Ended
	Mar. 31, 2015
SIGNIFICANT VENDORS [Abstract]
SIGNIFICANT VENDORS	NOTE 14. – 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 2015-QTR and their accounts payable at March 31, 2015 were: Vendor Purchase Amount Percent Accounts Payable Percent A $191,713 22% $29,419 4% C $171,149 20% $56,824 8% Purchases from significant vendors during 2014-QTR and their accounts payable at March 31, 2014 were: Vendor Purchase Amount Percent Accounts Payable Percent C $325,731 28% $98,029 6%

GEOGRAPHIC REVENUE REPORTING

GEOGRAPHIC REVENUE REPORTING	3 Months Ended
	Mar. 31, 2015
Segment Reporting [Abstract]
GEOGRAPHIC REVENUE REPORTING	NOTE 15. – GEOGRAPHIC REVENUE REPORTING The Company is organized based on 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 consistent. Information about the Company’s geographic operations for both 2015-QTR and 2014-QTR as follows: 2015 2014 Net Revenue: North America $ 1,098,100 $ 1,033,997 International 1,599,910 1,650,967 $ 2,698,010 $ 2,684,964 Furniture and Equipment, Net: North America $ 101,649 $ 119,530 International 49,146 103,128 $ 150,795 $ 222,658

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2015
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 16. – RELATED PARTY TRANSACTIONS For the three months ended March 31, 2015 and 2014, the Company was a party to the following related party transactions not disclosed elsewhere in these financial statements: · the Company paid $25,808 (2015) and $25,808 (2014) as compensation to the father of our Chief Executive Officer for consulting on various projects, · the Company had receivables from a consultant of $40,625 (2015) and $11,170 (2014) and payables of $2,730 (2015) and $11,571 (2014). In addition, the Company paid the consultant who is a shareholder and performs outsourced COO services and was reimbursed the following: – $47,500 (2015) and $0 (2014) for outsourced COO services. – $8,839 (2015) and $6,875 (2014) for the purchase of materials needed for the assembly and manufacture of products for export, – $20,000 (2015) and $0 (2014) in cash and stock for IR related expenses and services.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2015
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 17. – SUBSEQUENT EVENTS Management has evaluated subsequent events or transactions occurring through the date the financial statements were issued. On April 1, 2015, we accepted a subscription to purchase 440,000 shares for cash proceeds of $220,000, which was received and deposited in 2015 QTR. On April 20, 2015, we received a secured loan for $250,000 from one of our shareholders. This loan bears interest of 1% per month and is due on April 20, 2016. This loan is secured by the Company’s accounts receivable. As part of the terms, the Company has issue 30,000 warrants with an exercise price of $0.85 per share, with an expiration date of April 20, 2017. During the second quarter of 2015, the company issued 345,000 shares for services in aggregate valued at $1.64 or $565,800. On October 7, th Throughout the year ended 2014 and 2015, Daniel Khesin, the Company's former chief executive officer and former chief financial officer, received in addition to base compensation, reimbursement and payroll advances of expenses of approximately $76,000 and $40,000 respectively, which were for non-business related goods and services. Pursuant to his executive employment agreement $50,000 in shares were to be payable in shares of the Company's common stock at fiscal year-end. While Mr. Khesin believed that these payments were received as satisfaction of certain bonus or other perquisites earned by him on a monthly basis under his employment agreement, such payments, if any, required approval of our compensation committee, which approval was not received until subsequent to 2014 and 2015. Section 402 of the Sarbanes Oxley Act of 2002 prohibits advances or loans to a director or executive officer of a public company. While our audit committee has concluded that the payments made to Mr. Khesin prior to board approval may be in violation of Section 402 of the Sarbanes Oxley Act of 2002, in the event it is determined any such payments were a violation of the Sarbanes Oxley Act, such violation could have a material adverse effect on our Company, including, but not limited to criminal, civil or administrative sanctions, penalties, or investigations, in addition to potential securities litigation. As a consequence of these activities, the company received notice from its independent auditor of potential illegal acts concerning payments of personal expenses by the Company. The Company’s Audit Committee has agreed with the findings. On September 29 th th During 2013, in addition to base compensation paid to Abner Silva, a consultant deemed to be an officer by our independent auditor for accounting purposes, our company advanced approximately $11,500, to Mr. Silva. While Mr. Silva, believed that these payments were received as satisfaction of certain moneys owed to him or his affiliate companies, such payments, if any, required prior approval of our compensation committee, which approval was not received. As a consequence of these activities, the company received notice from its independent auditor of potential illegal acts concerning payments of personal expenses by the company on September 29 th th In December 2015, the Company, under former management entered into an agreement with a barter trading company to sell slow moving, finished goods in exchange for prepaid credits. During 2015 and through April 2016, the Company sold merchandise worth $956,176 and $4,566,717 to this barter trading company. However, these credits proved to have no economic value and accordingly revenue did not meet the criteria as defined in Accounting Standards Codification 605 (“ASC”). The Company has reversed the sales to this barter trading company that did not meet the revenue standards. In January 2016, the company entered into a Stock Purchase Agreement with a private party in the amount of $1,996,500 for 605,000 shares of the company’s stock. To date, the purchase agreement has only partially settled. The Company’s has offset subscription receivable against the additional paid in capital of $1,196,500. The Board of Directors has decided to negotiate a revision to the original Stock Purchase Agreement to reach an appropriate resolution to the matter. The company has no way of knowing what the financial impact will be. On May 2, 2016, the company received a letter from an attorney representing its former CEO, Renee Barch-Niles requesting certain payments she believes are due arising from her employment contract. This includes salary demands, equity demands and commission demands on the above barter transaction. The total claims made by Ms. Barch-Niles are $2,500,000 worth of shares of the company’s stock, $123,000 in commissions from the barter trading arrangement, and $300,000 in severance payments. The company maintains that Ms. Barch-Niles is not due any payments subsequent to her separation from the company and will take all appropriate action to defend against the claims. On September 27, 2016, pursuant to the Company’s By-Laws, the current Board of Directors approved and ratified all shares to the former management through date of termination. It is the Company’s position that due to circumstances surrounding the terminations, no further shares or compensation are owned and will vehemently defend its position. On April 20, 2016 the company was notified by Nasdaq that the Company did not comply with Nasdaq’s filing requirements set forth in Listing Rule 5250(c)(1) because it had not filed its Form 10-K for the period ended December 31, 2015. On June 7, 2016 and August 19th, 2016, the company was notified by Nasdaq that the Company did not comply with Nasdaq’s filing requirements set forth in Listing Rule 5250(c)(1) because it had not filed its Forms 10-Q for the periods ended March 31 and June 30, 2016, respectively. On September 26, 2016, the company received Nasdaq’s staff determination letter, informing the company of Nasdaq’s intention to deny the company’s request for continued listing due to the delinquent reports. Separately, Nasdaq informed the company of its determination of additional basis for delisting due to public interest concerns under listing Rule 5101 raised by 1. The company’s failure to promptly initiate and conduct an independent investigation, recommended by its previous independent auditors, into concerns identified by its former board of directors, including concerns regarding revenue recognition and stock issuances, among other matters; and 2. The Company’s inability to produce minutes evidencing meetings of the Company’s board of directors for calendar year 2015 and for the first four months of calendar year 2016. Further, and also as a separate basis for delisting, Nasdaq informed the company of its belief the Company had made misleading statements and/or omitted material facts in its communications with Staff, in violation of Listing Rule 5250(a)(1). Pursuant to Nasdaq listing Rule 5800 series the Company appealed the staff’s determination to a Hearings Panel and requested an oral hearing to appeal the staff determination. In addition, the Company requested a stay of the suspension and delisting action pending the issuance of a written decision by the Hearings Panel. In the request, the company stated that the delinquent reports would be filed prior to the October 11th due date, informed Nasdaq that an independent investigation had been initiated by the company with an expected completion date of approximately October 11th, 2016, informed Nasdaq of its efforts to retrieve the missing minutes via a diligent search of its email archives and attempts to contact prior board members for their records, and its disagreement with the staff’s belief that any misleading statement had been made. The company received from Nasdaq, on September 26th, 2016, a letter informing them that the requested hearing will take place on November 10th. On March 29, 2016, DS Healthcare, Mr. Khesin, and certain former members of the Board of Directors were sued in a class action styled, Prasant Shah v. DS Healthcare Group, Inc., et. al., Case No. 16-60661, which is pending in the United States District Court for the Southern District of Florida. A later-filed class action has been consolidated. The class action arises from the Company’s March 23, 2016 and March 28, 2016 8-K filings, which stated, in pertinent part, that the audit committee had concluded that the unaudited condensed consolidated financial statements of the Company for the two fiscal quarters ended June 30, 2015 and September 30, 2015 (the “June and September 2015 Quarters”), should no longer be relied upon because of certain errors in such financial statements, and that Daniel Khesin had been terminated for cause and removed as Chairman and a member of the Board of Directors. Plaintiffs have until November 2, 2016 to file an Amended Complaint, which DS Healthcare must respond to no later than December 19, 2016. The Company also received the first of three related shareholder derivative demands on March 29, 2016. A mediation concerning the class action and the derivative demands is scheduled for October 17, 2016, in Miami, Florida. On May 27, 2016, PhotoMedex, Inc., Radiancy, Inc., and PhotoMedex Technology, Inc. (collectively, “PhotoMedex”) filed a civil action for damages and declaratory relief against DS Healthcare in the United States District Court for the Southern District of New York. The lawsuit is styled PhotoMedex, Inc. v. DS Healthcare Group, Inc., Case No. 1:16-cv-03981. The lawsuit arises from two merger agreements: (i) an Agreement and Plan of Merger and Reorganization among DS Healthcare Group, Inc., PHMD P Acquisition Corp., PhotoMedex, Inc. and Radiancy, Inc. dated February 19, 2016; and (ii) an Agreement and Plan of Merger and Reorganization by and among DS Healthcare Group, Inc., PHMD Professional Acquisition Corp., PhotoMedex Technology, Inc. and PhotoMedex, Inc. dated February 19, 2016. PhotoMedex alleges that DS Healthcare breached both agreements by failing to meet its pre-closing obligations and not completing the transactions contemplated by the agreements. PhotoMedex seeks a declaratory judgment that their terminations of the two agreements were proper, and requests an award of damages specified by the agreements, including a “break-up fee” of USD $3 million. DS Healthcare disputes the claims asserted by PhotoMedex, including that PhotoMedex is entitled to the “break-up fee” under the agreements. DS Healthcare has also asserted a counterclaims for damages against PhotoMedex for their breaches of the two agreements. An initial case management conference is scheduled for October 13, 2016. On December 28, 2015, Microcap Headlines, Inc. (“Microcap”), an investor awareness business located in North Babylon, New York, filed a civil action against DS Healthcare, Daniel Khesin and former DS Healthcare employee Abner Silva in the Circuit Court of the 11th Judicial Circuit in and for Miami-Dade County, Florida. The lawsuit is styled Microcap Headlines Inc. v. DS Healthcare Group, Inc. et al., Case No. 2015-030046-CA-01. Plaintiff Microcap asserts claims for breach of contract, negligent misrepresentation, fraud (solely against defendant Silva), violation of the Florida Securities and Investor Protection Act, and quantum meruit, all of which arise from an October 15, 2014 contract between Microcap and DS Healthcare pursuant to which Microcap promised to provide certain investor awareness services in exchange for compensation in the form of cash and warrants to purchase DS Healthcare stock. Microcap seeks damages in an unspecified amount. DS Healthcare disputes the claims asserted by Microcap in the lawsuit. Court-ordered mediation is scheduled for November 22, 2016, and the case is scheduled for trial to commence sometime during the three-week trial period beginning on January 17, 2017. On April 12, 2016, the SEC issued a “Formal Order” directing a private non-public formal investigation to determine whether violations of the federal securities law may have been committed, directly or indirectly, by the Company, its officers, directors, employees, partners, subsidiaries and/or affiliates, and/or other persons or entities. The possible violations set forth in the Formal Order include Section 17(a) of the Securities Act of 1933 (“Securities Act”), Sections 10(b), 13(a), 13(b)(2)(A), 13(b)(2)(B), 13(b)(5), 13(k), 14(a), and 14(f) of the Securities Exchange Act of 1934 (“Exchange Act”), and Rules 10b-5, 12b-20, 13a-1, 13a-11, 13a-13, 13a-14, 13b2-1, 13b2-2(a), 14a3, 14a-9, and 14f-1. The relevant time period specified in the Formal Order is between January 1, 2010 and the present date. On April 15, 2016, the SEC issued a subpoena duces tecum to Mr. Khesin. On May 4, 2016, the SEC issued a subpoena duces tecum to the Company. The company is complying with all requests to the SEC and the review and production process is ongoing in nature. On or about July 27, 2016, the SEC issued a second subpoena duces tecum to the Company seeking a current copy of its QuickBooks file with a user name and password. The Company has complied with the second subpoena duces tecum. The company has no way of determining what the outcome of this investigation will be and cannot predict any financial impact. Significant Changes to the Board of Directors and Executive Management: On April 2, 2016, Michael Pope, Diane Rosenfeld, Renee Barch-Niles and Carl Sweis were terminated as Directors of the company. Additionally, Renee Barch-Niles was removed as Chief Executive Officer. Daniel Khesin was appointed sole Director, Chief Executive Officer and Chief Financial Officer. Mr. Myron Lewis joined the Board of Directors on April 22, 2016.His role includes chairing the Compensation Committee. Subsequently, on September 12, 2016, Mr. Lewis was appointed Executive Director and tasked with supervising the company’s operations with a goal of facilitating profitability and compliance. Mr. Yasuhiro Fujiwara joined the Board of Directors on April 22, 2016. Subsequently, on September 12, 2016, Mr. Fujiwara was appointed Chairman of the Board of Directors. Ms. Elina Yuabov joined the Board of Directors on April 22, 2016 Ms. Estella Ng joined the Board of Directors on May 6, 2016. Her role includes chairing the Audit Committee. Mr. John Power joined the company on September 12, 2016 as Chief Financial Officer and Chief Administrative Officer.

SUMMARY OF SIGNIFICANT ACCOUN23

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2015
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., Polymer Research, 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, which are accounted for as VIEs. All significant intercompany balances and transactions have been eliminated in consolidation. On March 30, 2016, during the preparation of the Company’s 10-K, the company identified that certain transactions recorded in the company’s 10-K report for it consolidated financial statements for the years ended December 31, 2014 and the results of each quarterly 10-Q filings for the period ending September 30, 2015 became subject to an internal investigation. The internal investigation resulted in the company’s inability to timely file it’s for 10-Q as required. The Company continued its review these transactions with its newly appointed independent accountants, the results of which have now been corrected and reflected in the restated unaudited consolidated financial statements for the three months ended March 31, 2015. The corrective actions identified errors related to sales and customer returns and allowances, amounts with respect to the recognition of revenues and customer accounts receivable, and the recording of certain stock transactions. The Audit Committee of the Board of Directors consulted with management and analyzed the adjustments with the intent to correct the 2014 and 2015 10-Q filings to reflect these errors. However, because of the above mentioned errors, the Audit Committee has directed the Company to conduct a thorough review of the financial records for calendar years ended 2014 and 2015 along with its independent accountants and believes the restated financial statements for the three months ended March 31, 2015 and 2014 included herein to be fairly presented.
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 15, 2015. In the opinion of management, all adjustments (consisting only of those of a normal recurring nature) which are necessary to provide a fair presentation of financial position as of March 31, 2015 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, 2015.
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.
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, 2015 and December 31, 2014, the allowance for uncollectable accounts was $251,825 and $268,329, respectively, $210,000 at both dates 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. 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, · Shipping terms are FOB shipping point, · 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 a full time chemist, 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 condensed consolidated statements of operations, and amounted to $47,326 and $98,568 for 2015-QTR and 2014-QTR, respectively.
Earnings Per Share	Earnings Per Share Potentially dilutive securities are excluded from the computation of diluted net loss per share for all of the periods presented in the accompanying condensed consolidated statements of operations because the reported net loss in each of these periods results in their inclusion being antidilutive. Antidilutive securities, which consist of stock options and warrants that are not included in the diluted net loss per share calculation, consisted of an aggregate of 286,526 shares as of March 31, 2015 and 2014.

RESTATEMENT OF FINANCIAL STAT24

RESTATEMENT OF FINANCIAL STATEMENTS (Tables)	3 Months Ended
	Mar. 31, 2015
Restatement Tables
Schedule of Effects of Restatement on Previously Issued Financial Statements	Condensed Consolidated Balance Sheets: Previously Reported Adjustment Restated 2015 ASSETS Current Assets Cash $ 652,093 $ — $ 652,093 Accounts receivable, net 2,043,176 (487,732 ) 1,555,444 Inventories, net 4,142,457 (197,450 ) 3,945,007 Prepaid expenses and other current assets 277,884 (1 ) 277,883 Total Current Assets 7,115,610 (685,183 ) 6,430,427 Furniture and equipment, net 187,707 (36,912 ) 150,795 Intangible assets, net 1,088,511 (337,500 ) 751,011 Other assets 100,497 (26,000 ) 74,497 TOTAL ASSETS $ 8,492,325 $ (1,085,595 ) $ 7,406,730 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts payable $ 996,084 $ 256,894 $ 1,252,978 Accrued expenses 904,495 64,488 968,983 Note payable 350,000 — 350,000 Other current liabilities 625,510 — 625,510 Total Current Liabilities 2,876,089 321,382 3,197,471 Long Term Debt, net of current portion 22,032 — 22,032 TOTAL LIABILITIES 2,898,121 321,382 3,219,503 COMITMENTS AND CONTINGENCIES Shareholders' Equity Common stock, $0.001 par value, 300 million shares authorized: 16,328,058 and 16,202,268 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively 16,328 — 16,328 Additional paid-in-capital 14,940,069 — 14,940,069 Stock subscription 217,500 — 217,500 Accumulated deficit (9,698,513 ) (1,406,977 ) (11,105,490 ) Accumulated comprehensive income 157,250 — 157,250 Total Shareholders' Equity 5,632,634 (1,406,977 ) 4,225,657 Non-Controlling Interest (38,430 ) — (38,430 ) Total Shareholders' Equity 5,594,204 (1,406,977 ) 4,187,227 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 8,492,325 $ (1,085,595 ) $ 7,406,730 Previously Reported Adjustment Restated 2014 ASSETS Current Assets Cash $ 1,995,270 $ — $ 1,995,270 Accounts receivable, net 1,607,006 — 1,607,006 Inventories, net 3,357,602 (145,029 ) 3,212,573 Prepaid expenses and other current assets 493,963 — 493,963 Total Current Assets 7,453,841 (145,029 ) 7,308,812 Furniture and equipment, net 222,658 — 222,658 Intangible assets, net 1,297,733 — 1,297,733 Other assets 66,506 (26,000 ) 40,506 TOTAL ASSETS $ 9,040,738 $ (171,029 ) $ 8,869,709 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts payable $ 1,660,485 $ 24,670 $ 1,685,155 Accrued expenses 588,395 — 588,395 Credit facility 477,058 — 477,058 Other current liabilities 792,205 — 792,205 Total Current Liabilities 3,518,143 24,670 3,542,813 Long Term Debt, net of current portion 34,567 — 34,567 TOTAL LIABILITIES 3,552,710 24,670 3,577,380 COMITMENTS AND CONTINGENCIES Shareholders' Equity Common stock, $0.001 par value, 300 million shares authorized: 16,328,058 and 16,067,775 shares issued and outstanding at March 31, 2015 and 2014, respectively 16,068 — 16,068 Additional paid-in-capital 14,651,175 — 14,651,175 Stock subscription (2,500 ) — (2,500 ) Accumulated deficit (9,153,203 ) (195,699 ) (9,348,902 ) Accumulated comprehensive income 13,084 — 13,084 Total Shareholders' Equity 5,524,624 (195,699 ) 5,328,925 Non-Controlling Interest (36,596 ) (36,596 ) Total Shareholders' Equity 5,488,028 (195,699 ) 5,292,329 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 9,040,738 $ (171,029 ) $ 8,869,709 Condensed Consolidated Statements of Operations and Comprehensive Loss: Three Months Ended Previously Reported Adjustment Restated 2015 Net Revenue $ 2,803,920 $ (105,910 ) $ 2,698,010 Cost of Goods sold 1,138,760 75,455 1,214,215 Gross Profit 1,665,160 (181,365 ) 1,483,795 Operating Costs and Expenses: Selling and marketing Commissions and consulting 169,372 — 169,372 Other selling and marketing expenses 607,406 13,500 620,906 776,778 13,500 790,278 General and administrative Salary and personnel costs 512,451 — 512,451 Professional fees and consulting costs 376,411 988 377,399 Other general and administrative expenses 189,278 251,055 440,333 1,078,140 252,043 1,330,183 Total operating costs and expenses 1,854,918 265,543 2,120,461 Operating Loss (189,758 ) (446,908 ) (636,666 ) Other Income (Expense) Interest expense (15,855 ) — (15,855 ) Impairment of intangible asset — (337,500 ) (337,500 ) Other 120,475 — 120,475 Total other income (expense) 104,620 (337,500 ) (232,880 ) Net Loss (85,138 ) (784,408 ) (869,546 ) Net Loss Attributable to Non-Controlling Interest — — — Net Loss Attributable to Common Shareholders $ (85,138 ) $ (784,408 ) $ (869,546 ) Basic and Diluted Earnings per Share: Weighted average shares outstanding 16,256,461 — 16,256,461 Net Loss per share $ (0.01 ) $ (0.04 ) $ (0.05 ) Other Comprehensive Loss: Foreign currency translation adjustment $ (14,893 ) $ — $ (14,893 ) Comprehensive loss $ (100,031 ) $ (784,408 ) $ (884,439 ) Three Months Ended Previously Reported Adjustment Restated 2014 Net Revenue $ 2,684,964 $ 2,684,964 $ 2,684,964 Cost of Goods sold 1,202,518 189,029 1,391,547 Gross Profit 1,482,446 (189,029 ) 1,293,417 Operating Costs and Expenses: Selling and marketing Commissions and consulting 360,559 — 360,559 Other selling and marketing expenses 609,463 — 609,463 970,022 — 970,022 General and administrative Salary and personnel costs 584,683 — 584,683 Professional fees and consulting costs 585,226 6,670 591,896 Other general and administrative expenses 164,035 — 164,035 1,333,944 6,670 1,340,614 Total operating costs and expenses 2,303,966 6,670 2,310,636 Operating Loss (821,520 ) (195,699 ) (1,017,219 ) Other Income (Expense) Interest expense (27,545 ) — (27,545 ) Impairment of intangible asset — — — Other (1,088 ) — (1,088 ) Total other income (expense) (28,633 ) — (28,633 ) Net Loss (850,153 ) (195,699 ) (1,045,852 ) Net Loss Attributable to Non-Controlling Interest 4,371 — 4,371 Net Loss Attributable to Common Shareholders $ (845,782 ) $ (195,699 ) $ (1,041,481 ) Basic and Diluted Earnings per Share: Weighted average shares outstanding 15,967,533 — 15,967,533 Net Loss per share $ (0.05 ) $ (0.02 ) $ (0.07 ) Other Comprehensive Loss: Foreign currency translation adjustment $ 25,546 — $ 25,546 Comprehensive loss $ (820,236 ) $ (195,699 ) $ (1,015,935 ) Condensed Consolidated Statements of Cash Flows: For the Three Months Ended Previously Reported Adjustment Restated 2015 Cash Flows from Operating Activities: Net loss $ (85,138 ) $ (784,408 ) $ (869,546 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 32,307 — 32,307 Impairment of intangible asset — 337,500 337,500 Provision (Recovery) of bad debts (16,504 ) 385 (16,119 ) Provision for obsolete inventory 1,087 — 1,087 Stock issued for services 100,500 — 100,500 Changes in operating assets and liabilities: Accounts receivable, net (217,494 ) 356,582 139,088 Inventories, net (159,016 ) 75,455 (83,561 ) Prepaid expenses and other current assets 830 — 830 Accounts payable (233,780 ) (1 ) (233,781 ) Accrued expenses (62,617 ) 14,488 (48,129 ) Other current liabilities (261,311 ) (1 ) (261,312 ) Net cash used in operating activities (901,136 ) — (901,136 ) Cash Flows from Operating Activities: Proceeds from furniture and equipment 526 — 526 Purchases of injection molds (14,250 ) — (14,250 ) Net cash used in investing activities (13,724 ) — (13,724 ) Cash Flows from Financing Activities: Proceeds from loans and notes (2,965 ) — (2,965 ) Proceeds from stock subscriptions 220,000 — 220,000 Net cash provided by financing activities 217,035 — 217,035 Effect of exchange rate changes on cash 221,362 — 221,362 Decrease in cash (476,463 ) — (476,463 ) Cash, Beginning of Period 1,128,556 — 1,128,556 Cash, End of Period $ 652,093 $ — $ 652,093 For the Three Months Ended Previously Reported Adjustment Restated 2014 Cash Flows from Operating Activities: Net loss $ (850,153 ) $ (195,699 ) $ (1,045,852 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 69,898 — 69,898 Loss on disposal of fixed asset 2,468 — 2,468 Recovery of bad debts (152,875 ) — (152,875 ) Provision for obsolete inventory 25,018 — 25,018 Stock issued for services 91,254 — 91,254 Changes in operating assets and liabilities: Accounts receivable, net 775,198 — 775,198 Inventories, net (680,041 ) 145,029 (535,012 ) Prepaid expenses and other current assets 102,914 — 102,914 Other assets — 26,000 26,000 Accounts payable (570,238 ) 24,670 (545,568 ) Accrued expenses (257,994 ) — (257,994 ) Other current liabilities 505,923 — 505,923 Net cash used in operating activities (938,628 ) — (938,628 ) Cash Flows from Operating Activities: Purchase of furniture and equipment (40,975 ) — (40,975 ) Net cash used in investing activities (40,975 ) — (40,975 ) Cash Flows from Financing Activities: Repayments of credit facility (105,326 ) — (105,326 ) Repayment of loans and notes (1,858 ) — (1,858 ) Proceeds from sales of common stock 192,000 — 192,000 Less issuance cost (10,000 ) — (10,000 ) Net cash provided by financing activities 74,816 — 74,816 Effect of exchange rate changes on cash 27,111 — 27,111 Decrease in cash (877,676 ) — (877,676 ) Cash, Beginning of Period 2,872,946 — 2,872,946 Cash, End of Period $ 1,995,270 $ — $ 1,995,270

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Mar. 31, 2015
Inventory Disclosure [Abstract]
Schedule of the Significant Components of Inventory	2015 2014 Bulk product and raw materials $ 2,416,001 $ 2,502,402 Work in process 274,790 213,832 Merchandise inventory 1,496,189 1,301,933 Inventory in transit 146,372 231,623 Less: Allowance (388,345 ) (387,258 ) $ 3,945,007 $ 3,862,532

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	2015 2014 Distribution rights in Brazil $ 750,000 $ 750,000 Less: Accumulated amortization (750,000 ) (393,750 ) Net distribution rights --- 356,250 DS Mexico customer list 932,000 932,000 Less: Accumulated amortization (217,274 ) (223,162 ) Net customer list 714,726 708,838 Goodwill 36,285 36,285 $ 751,011 $ 1,101,373
Schedule of Future Amortization Expense for Intangible Assets	2015 2016 2017 2018 Beyond Total Asset: Mexican Customer list 77,625 103,500 103,500 103,500 326,601 714,726 $ 77,625 $ 103,500 $ 103,500 $ 103,500 $ 326,601 $ 714,726

ACCRUED EXPENSES (Tables)

ACCRUED EXPENSES (Tables)	3 Months Ended
	Mar. 31, 2015
Payables and Accruals [Abstract]
Schedule of Accrued Expenses	2015 2014 Advertising and marketing $ — $ 35,000 Commissions 315,729 367,063 Director services 1,510 15,000 Facilities 16,480 10,300 Fees / interest 10,500 7,000 Investor relations 301,652 265,024 Production materials 109,320 102,958 Stock awards 50,988 50,000 Personnel 121,321 108,819 Warehouse 41,483 55,948 $ 968,983 $ 1,017,112

OTHER CURRENT LIABILITIES (Tabl

OTHER CURRENT LIABILITIES (Tables)	3 Months Ended
	Mar. 31, 2015
Other Liabilities, Current [Abstract]
Schedule of Other Current Liabilities	2015 2014 Customer deposits $ 178,371 $ 141,998 Credit cards 198,815 190,803 Marketing and promotional programs 102,772 227,681 VAT taxes payable 77,795 173,567 Current portion of long-term debt 11,599 11,429 Loan from shareholder 10,000 — Vendor financing 25,174 25,174 Advance from employee — 26,360 Promotional gift cards 4,645 — Payroll taxes 16,139 — Other current liabilities 200 89,810 $ 625,510 $ 886,822

DEBT FINANCING (Tables)

DEBT FINANCING (Tables)	3 Months Ended
	Mar. 31, 2015
Debt Disclosure [Abstract]
Schedule of Long-Term Debt	2015 2016 2017 Total Current Portion of Long Term Debt $ 8,635 $ 2,964 $ — $ 11,599 Long Term Debt — 9,163 12,869 22,032 Total $ 8,635 $ 12,127 $ 12,869 $ 33,631

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
	Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Operating Lease Payments	2015 2016 2017 2018 2019 Total Facility Leases Deerfield, FL (HQ/Production) $ 325,686 $ 444,672 $ 457,238 $ 470,298 $ 278,882 $ 1,976,776 Mexico City, Mexico (Sales) 5,786 — — — — 5,786 $ 331,472 $ 444,672 $ 457,238 $ 470,298 $ 278,882 $ 1,982,562

SIGNIFICANT CUSTOMERS (Tables)

SIGNIFICANT CUSTOMERS (Tables)	3 Months Ended
	Mar. 31, 2015
SIGNIFICANT CUSTOMERS [Abstract]
Schedule of Sales to Significant Customers	Customer Sales Amount Percent Accounts Receivable Percent H $304,949 13% $366,835 14% F $261,086 11% $207,631 8% Customer Sales Amount Percent Accounts Receivable Percent H $378,310 13% $249,413 12%

SIGNIFICANT VENDORS (Tables)

SIGNIFICANT VENDORS (Tables)	3 Months Ended
	Mar. 31, 2015
SIGNIFICANT VENDORS [Abstract]
Schedule of Significant Purchases from Vendors	Vendor Purchase Amount Percent Accounts Payable Percent A $191,713 22% $29,419 4% C $171,149 20% $56,824 8% Vendor Purchase Amount Percent Accounts Payable Percent C $325,731 28% $98,029 6%

GEOGRAPHIC REVENUE REPORTING (T

GEOGRAPHIC REVENUE REPORTING (Tables)	3 Months Ended
	Mar. 31, 2015
Segment Reporting [Abstract]
Schedule of Revenues by Geographic Area	2015 2014 Net Revenue: North America $ 1,098,100 $ 1,033,997 International 1,599,910 1,650,967 $ 2,698,010 $ 2,684,964 Furniture and Equipment, Net: North America $ 101,649 $ 119,530 International 49,146 103,128 $ 150,795 $ 222,658

SUMMARY OF SIGNIFICANT ACCOUN34

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Accounting Policies [Abstract]
Provision for doubtful accounts receivable	$ 251,825		$ 268,329
Product return and advertising reserve	210,000		210,000
Advertising credits	60,000		$ 60,000
Contracted research and development expense	$ 47,326	$ 98,568
Antidilutive stock options and warrants	286,526	286,526

LIQUIDITY and GOING CONCERN (De

LIQUIDITY and GOING CONCERN (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014	Dec. 31, 2013
LIQUIDITY and GOING CONCERN [Abstract]
Cash	$ 652,093	$ 1,128,556	$ 1,995,270	$ 2,872,946
Accumulated deficit	11,105,490	10,235,944	$ 9,348,902
Online sale revenue	$ 85,636	$ 131,107

RESTATEMENT OF FINANCIAL STAT36

RESTATEMENT OF FINANCIAL STATEMENTS (Consolidated Balance Sheets) (Details) - USD ($)	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014	Dec. 31, 2013
Current Assets
Cash	$ 652,093	$ 1,128,556	$ 1,995,270	$ 2,872,946
Accounts receivable, net	1,555,444	1,678,411	1,607,006
Inventories, net	3,945,007	3,862,532	3,212,573
Prepaid expenses and other current assets	277,883	278,714	493,963
Total Current Assets	6,430,427	6,948,213	7,308,812
Furniture and equipment, net	150,795	169,495	222,658
Intangible Assets, net	751,011	1,101,373	1,297,733
Other Assets	74,497	62,247	40,506
TOTAL ASSETS	7,406,730	8,281,328	8,869,709
Current Liabilities
Accounts payable	1,252,978	1,486,758	1,685,155
Accrued expenses	968,983	1,017,112	588,395
Note payable	350,000	350,000	477,058
Other current liabilities	625,510	886,822	792,205
Total Current Liabilities	3,197,471	3,740,692	3,542,813
Long Term Debt, net of current portion	22,032	24,997	34,567
TOTAL LIABILITIES	3,219,503	3,765,689	3,577,380
COMMITMENTS AND CONTINGENCIES
Shareholders' Equity
Common stock, $0.001 par value, 300 million shares authorized: 22,556,765 and 16,202,268 shares issued and outstanding at December 31, 2015 and 2014, respectively	16,328	16,202	16,068
Additional paid-in-capital	14,940,069	14,839,695	14,651,175
Stock subscription	217,500	(2,500)	(2,500)
Accumulated deficit	(11,105,490)	(10,235,944)	(9,348,902)
Accumulated comprehensive income	157,250	(63,384)	13,084
Total Shareholders' Equity	4,225,657	4,554,069	5,328,925
Non-Controlling Interest	(38,430)	(38,430)	(36,596)
Total Shareholders' Equity	4,187,227	4,515,639	5,292,329
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	7,406,730	8,281,328	8,869,709
Previously Reported [Member]
Current Assets
Cash	652,093	1,128,556	1,995,270	2,872,946
Accounts receivable, net	2,043,176		1,607,006
Inventories, net	4,142,457		3,357,602
Prepaid expenses and other current assets	277,884		493,963
Total Current Assets	7,115,610		7,453,841
Furniture and equipment, net	187,707		222,658
Intangible Assets, net	1,088,511		1,297,733
Other Assets	100,497		66,506
TOTAL ASSETS	8,492,325		9,040,738
Current Liabilities
Accounts payable	996,084		1,660,485
Accrued expenses	904,495		588,395
Note payable	350,000		477,058
Other current liabilities	625,510		792,205
Total Current Liabilities	2,876,089		3,518,143
Long Term Debt, net of current portion	22,032		34,567
TOTAL LIABILITIES	2,898,121		3,552,710
COMMITMENTS AND CONTINGENCIES
Shareholders' Equity
Common stock, $0.001 par value, 300 million shares authorized: 22,556,765 and 16,202,268 shares issued and outstanding at December 31, 2015 and 2014, respectively	16,328		16,068
Additional paid-in-capital	14,940,069		14,651,175
Stock subscription	217,500		(2,500)
Accumulated deficit	(9,698,513)		(9,153,203)
Accumulated comprehensive income	157,250		13,084
Total Shareholders' Equity	5,632,634		5,524,624
Non-Controlling Interest	(38,430)		(36,596)
Total Shareholders' Equity	5,594,204		5,488,028
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	8,492,325		9,040,738
Adjustment [Member]
Current Assets
Cash
Accounts receivable, net	(487,732)
Inventories, net	(197,450)		(145,029)
Prepaid expenses and other current assets	(1)
Total Current Assets	(685,183)		(145,029)
Furniture and equipment, net	(36,912)
Intangible Assets, net	(337,500)
Other Assets	(26,000)		(26,000)
TOTAL ASSETS	(1,085,595)		(171,029)
Current Liabilities
Accounts payable	256,894		24,670
Accrued expenses	64,488
Note payable
Other current liabilities
Total Current Liabilities	321,382		24,670
Long Term Debt, net of current portion
TOTAL LIABILITIES	321,382		24,670
COMMITMENTS AND CONTINGENCIES
Shareholders' Equity
Common stock, $0.001 par value, 300 million shares authorized: 22,556,765 and 16,202,268 shares issued and outstanding at December 31, 2015 and 2014, respectively
Additional paid-in-capital
Stock subscription
Accumulated deficit	(1,406,977)		(195,699)
Accumulated comprehensive income
Total Shareholders' Equity	(1,406,977)		(195,699)
Non-Controlling Interest
Total Shareholders' Equity	(1,406,977)		(195,699)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ (1,085,595)		$ (171,029)

RESTATEMENT OF FINANCIAL STAT37

RESTATEMENT OF FINANCIAL STATEMENTS (Consolidated Statements of Operations and Comprehensive Loss) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Sep. 30, 2015
Net Revenue	$ 2,698,010	$ 2,684,964
Cost of Goods Sold	1,214,215	1,391,547
Gross Profit	1,483,795	1,293,417
Selling and marketing
Commissions and consulting	169,372	360,559
Other selling and marketing expenses	620,906	609,463
Total selling and marketing	790,278	970,022
General and administrative
Salary and personnel costs	512,451	584,683
Professional fees and consulting costs	377,399	591,896
Other general and administrative expenses	440,333	164,035
Total general and administrative	1,330,183	1,340,614
Total operating costs and expenses	2,120,461	2,310,636
Operating Loss	(636,666)	(1,017,219)
Other Income (Expense)
Interest expense	(15,855)	(27,545)
Impairment of intangible asset	(337,500)
Other	120,475	(1,088)
Total other income (expense)	(232,880)	(28,633)
Net loss	(869,546)	(1,045,852)
Net Loss Attributable to Non-Controlling Interest		4,371
Net Loss Attributable to Common Shareholders	$ (869,546)	$ (1,041,481)
Basic and Diluted Earnings per Share:
Weighted average shares outstanding	16,256,461	15,967,533
Net Loss per share	$ (0.05)	$ (0.07)
Other Comprehensive Loss:
Foreign currency translation adjustment	$ (14,893)	$ 25,546
Comprehensive loss	(884,439)	(1,015,935)
Previously Reported [Member]
Net Revenue	2,803,920	2,684,964
Cost of Goods Sold	1,138,760	1,202,518
Gross Profit	1,665,160	1,482,446
Selling and marketing
Commissions and consulting	169,372	360,559
Other selling and marketing expenses	607,406	609,463
Total selling and marketing	776,778	970,022
General and administrative
Salary and personnel costs	512,451	584,683
Professional fees and consulting costs	376,411	585,226
Other general and administrative expenses	189,278	164,035
Total general and administrative	1,078,140	1,333,944
Total operating costs and expenses	1,854,918	2,303,966
Operating Loss	(189,758)	(821,520)
Other Income (Expense)
Interest expense	(15,855)	(27,545)
Impairment of intangible asset
Other	120,475	(1,088)
Total other income (expense)	104,620	(28,633)
Net loss	(85,138)	(850,153)
Net Loss Attributable to Non-Controlling Interest		4,371
Net Loss Attributable to Common Shareholders	$ (85,138)	$ (845,782)
Basic and Diluted Earnings per Share:
Weighted average shares outstanding	16,256,461	15,967,533
Net Loss per share	$ (0.01)	$ (0.05)
Other Comprehensive Loss:
Foreign currency translation adjustment	$ (14,893)	$ 25,546
Comprehensive loss	(100,031)	(820,236)
Adjustment [Member]
Net Revenue	(105,910)
Cost of Goods Sold	75,455	189,029
Gross Profit	(181,365)	(189,029)
Selling and marketing
Commissions and consulting
Other selling and marketing expenses	13,500
Total selling and marketing	13,500
General and administrative
Salary and personnel costs
Professional fees and consulting costs	988	6,670
Other general and administrative expenses	251,055
Total general and administrative	252,043	6,670
Total operating costs and expenses	265,543	6,670
Operating Loss	(446,908)	(195,699)
Other Income (Expense)
Interest expense
Impairment of intangible asset	(337,500)
Other
Total other income (expense)	(337,500)
Net loss	(784,408)	(195,699)	$ (1,125,792)
Net Loss Attributable to Non-Controlling Interest
Net Loss Attributable to Common Shareholders	$ (784,408)	$ (195,699)
Basic and Diluted Earnings per Share:
Weighted average shares outstanding
Net Loss per share	$ (0.04)	$ (0.02)
Other Comprehensive Loss:
Foreign currency translation adjustment
Comprehensive loss	$ (784,408)	$ (195,699)

RESTATEMENT OF FINANCIAL STAT38

RESTATEMENT OF FINANCIAL STATEMENTS (Consolidated Statements of Cash Flows) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Sep. 30, 2015
Cash Flows from Operating Activities:
Net loss	$ (869,546)	$ (1,045,852)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	32,307	69,898
Loss on disposal of fixed assets		2,468
Impairment of intangible asset	337,500
Provision (Recovery) of bad debts	(16,119)	(152,875)
Recovery of obsolete inventory	1,087	25,018
Stock issued for services	100,500	91,254
Changes in operating assets and liabilities:
Accounts receivable, net	139,088	775,198
Inventories, net	(83,561)	(535,012)
Prepaid expenses and other current assets	830	102,914
Other assets		26,000
Accounts payable	(233,781)	(545,568)
Accrued expenses	(48,129)	(257,994)
Other current liabilities	(261,312)	505,923
Net cash used in operating activities	(901,136)	(938,628)
Cash Flows from Investing Activities:
Purchase of furniture and equipment	526	(40,975)
Purchase of injection molds	(14,250)
Net cash used in investing activities	(13,724)	(40,975)
Cash Flows from Financing Activities:
Repayments of credit facility		(105,326)
Repayment of loans and notes	(2,965)	(1,858)
Proceeds from stock subscription	220,000
Proceeds from sale of common stock		192,000
Less issuance cost		(10,000)
Net cash provided by financing activities	217,035	74,816
Effect of exchange rate changes on cash	221,362	27,111
Decrease in Cash	(476,463)	(877,676)
Cash, Beginning of Period	1,128,556	2,872,946	$ 1,128,556
Cash, End of Period	652,093	1,995,270
Previously Reported [Member]
Cash Flows from Operating Activities:
Net loss	(85,138)	(850,153)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	32,307	69,898
Loss on disposal of fixed assets		2,468
Impairment of intangible asset
Provision (Recovery) of bad debts	(16,504)	(152,875)
Recovery of obsolete inventory	1,087	25,018
Stock issued for services	100,500	91,254
Changes in operating assets and liabilities:
Accounts receivable, net	(217,494)	775,198
Inventories, net	(159,016)	(680,041)
Prepaid expenses and other current assets	830	102,914
Other assets
Accounts payable	(233,780)	(570,238)
Accrued expenses	(62,617)	(257,994)
Other current liabilities	(261,311)	505,923
Net cash used in operating activities	(901,136)	(938,628)
Cash Flows from Investing Activities:
Purchase of furniture and equipment	526	(40,975)
Purchase of injection molds	(14,250)
Net cash used in investing activities	(13,724)	(40,975)
Cash Flows from Financing Activities:
Repayments of credit facility		(105,326)
Repayment of loans and notes	(2,965)	(1,858)
Proceeds from stock subscription	220,000
Proceeds from sale of common stock		192,000
Less issuance cost		(10,000)
Net cash provided by financing activities	217,035	74,816
Effect of exchange rate changes on cash	221,362	27,111
Decrease in Cash	(476,463)	(877,676)
Cash, Beginning of Period	1,128,556	2,872,946	1,128,556
Cash, End of Period	652,093	1,995,270
Adjustment [Member]
Cash Flows from Operating Activities:
Net loss	(784,408)	(195,699)	(1,125,792)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization
Loss on disposal of fixed assets
Impairment of intangible asset	337,500
Provision (Recovery) of bad debts	385
Recovery of obsolete inventory
Stock issued for services
Changes in operating assets and liabilities:
Accounts receivable, net	356,582
Inventories, net	75,455	145,029
Prepaid expenses and other current assets
Other assets		26,000
Accounts payable	(1)	24,670
Accrued expenses	14,488
Other current liabilities	(1)
Net cash used in operating activities
Cash Flows from Investing Activities:
Purchase of furniture and equipment
Purchase of injection molds
Net cash used in investing activities
Cash Flows from Financing Activities:
Repayments of credit facility
Repayment of loans and notes
Proceeds from stock subscription
Proceeds from sale of common stock
Less issuance cost
Net cash provided by financing activities
Effect of exchange rate changes on cash
Decrease in Cash
Cash, Beginning of Period
Cash, End of Period

INVENTORIES (Details)

INVENTORIES (Details) - USD ($)	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Inventory Disclosure [Abstract]
Bulk product and raw materials	$ 2,416,001	$ 2,502,402
Work in process	274,790	213,832
Merchandise inventory	1,496,189	1,301,933
Inventory in transit	146,372	231,623
Less: Allowance	(388,345)	(387,258)
Inventory, net, total	$ 3,945,007	$ 3,862,532	$ 3,212,573

INTANGIBLE ASSETS (Schedule of

INTANGIBLE ASSETS (Schedule of Intangible Assets) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 36,285		$ 36,285
Total intangible assets	$ 751,011		1,101,373
Weighted average remaining amortization period	6 years 1 month 17 days
Distribution Rights [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, gross	$ 750,000		750,000
Finite-lived intangible asset, accumulated amortization	(750,000)		(393,750)
Finite-lived intangible assets, net, total			356,250
Amortization expense related to intangible assets		$ 18,750
Mexican Customer List [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, gross	932,000		932,000
Finite-lived intangible asset, accumulated amortization	(217,274)		(223,162)
Finite-lived intangible assets, net, total	$ 714,726		$ 708,838

INTANGIBLE ASSETS (Schedule o41

INTANGIBLE ASSETS (Schedule of Future Amortization Expense for Intangible Assets) (Details)	Mar. 31, 2015USD ($)
Finite-Lived Intangible Assets [Line Items]
2,015	$ 77,625
2,016	103,500
2,017	103,500
2,018	103,500
Beyond	326,601
Amortized cost of assets	714,726
Mexican Customer List [Member]
Finite-Lived Intangible Assets [Line Items]
2,015	77,625
2,016	103,500
2,017	103,500
2,018	103,500
Beyond	326,601
Amortized cost of assets	$ 714,726

ACCRUED EXPENSES (Details)

ACCRUED EXPENSES (Details) - USD ($)	Mar. 31, 2015	Dec. 31, 2014
Accrued expenses:
Advertising and marketing		$ 35,000
Commissions	315,729	367,063
Director services	1,510	15,000
Facilities	16,480	10,300
Fees/interest	10,500	7,000
Investor relations	301,652	265,024
Production materials	109,320	102,958
Stock awards	50,988	50,000
Personnel	121,321	108,819
Warehouse	41,483	55,948
Total Accrued expenses	$ 968,983	$ 1,017,112
Obligation to issue common stock	357,154	357,154

OTHER CURRENT LIABILITIES (Deta

OTHER CURRENT LIABILITIES (Details) - USD ($)	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Other Liabilities, Current [Abstract]
Customer deposits	$ 178,371	$ 141,998
Credit cards	198,815	190,803
Marketing and promotional programs	102,772	227,681
VAT taxes payable	77,795	173,567
Current portion of long term debt	11,599	11,429
Loan from shareholder	10,000
Vendor financing	25,174	25,174
Advance from employee		26,360
Promotional gift cards	4,645
Payroll taxes	16,139
Other current liabilities	200	89,810
Other current liabilities	$ 625,510	$ 886,822	$ 792,205

DEBT FINANCING (Long Term Debt)

DEBT FINANCING (Long Term Debt) (Details) - Equipment Loan Agreement [Member] - USD ($)	3 Months Ended
	Mar. 31, 2015	Dec. 10, 2012
Debt instrument, face amount		$ 53,900
Monthly payment amount	$ 1,041
Monthly 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)	Mar. 31, 2015USD ($)
Debt Instrument [Line Items]
2,015	$ 8,635
2,016	12,127
2,017	12,869
Total long-term debt	33,631
Short-term Debt [Member]
Debt Instrument [Line Items]
2,015	8,635
2,016	2,964
2,017
Total long-term debt	11,599
Long-term Debt [Member]
Debt Instrument [Line Items]
2,015
2,016	9,163
2,017	12,869
Total long-term debt	$ 22,032

DEBT FINANCING (Note Payable) (

DEBT FINANCING (Note Payable) (Details) - Secured short term note [Member]	3 Months Ended
	Mar. 31, 2015USD ($)
Short-term Debt [Line Items]
Debt instrument, face amount	$ 350,000
Maturity date	May 28, 2015
Interest rate (as a percent)	1.00%

COMMITMENTS AND CONTINGENCIES47

COMMITMENTS AND CONTINGENCIES (Leases for Office and Production Facilities) (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2015USD ($)ft²	Mar. 31, 2014USD ($)	Dec. 31, 2014
Operating Leased Assets [Line Items]
Rent expenses	$ 106,914	$ 99,884
2,015	331,472
2,016	444,672
2,017	457,238
2,018	470,298
Beyond	278,882
Total	1,982,562
Deerfield Beach Florida [Member]
Operating Leased Assets [Line Items]
Monthly rent payment	24,720
Operating leases, rent expense, annually, net	10,918
Per square foot price of lease	6
Minimum annual increase in monthly rent per square foot.	0.24
Maximum annual increase in monthly rent per square foot	$ 0.27
Lease expiration period	Jul. 31, 2019		Jul. 31, 2014
Area of real estate space | ft²	50,000
2,015	$ 325,686
2,016	444,672
2,017	457,238
2,018	470,298
Beyond	278,882
Total	1,976,776
Mexico City Mexico Sales [Member]
Operating Leased Assets [Line Items]
Monthly rent payment	$ 1,408
Lease expiration period	Jul. 1, 2015
2,015	$ 5,786
2,016
2,017
2,018
Beyond
Total	5,786
Ashville North Carolina [Member]
Operating Leased Assets [Line Items]
Monthly rent payment	$ 4,725
Lease expiration period	Dec. 31, 2015
Area of real estate space | ft²	1,875
Office Building [Member] | Mexico City Mexico Sales [Member]
Operating Leased Assets [Line Items]
Area of real estate space | ft²	246
Warehouse [Member] | Mexico City Mexico Sales [Member]
Operating Leased Assets [Line Items]
Area of real estate space | ft²	1,230

COMMITMENTS AND CONTINGENCIES48

COMMITMENTS AND CONTINGENCIES (Pending and Threatened Litigation and Purchase Commitments) (Details) - USD ($)	1 Months Ended		12 Months Ended
	Mar. 31, 2014	Jun. 30, 2011	Dec. 31, 2011
Commitments and Contingencies Disclosure [Abstract]
Amount paid for prior services		$ 20,000	$ 500
Litigation for recission, number of shares		23,000	20,000
Number of common shares the defendant agreed to return to Company	10,000
Number of common shares remaining, 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%

EQUITY (Common Stock) (Details)

EQUITY (Common Stock) (Details) - USD ($)	1 Months Ended	3 Months Ended
	Apr. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Jan. 31, 2016
Subsequent Event [Member]
Stockholders Equity Note [Line Items]
Stock issued as compensation for service		345,000
Issuance of common stock for services		$ 565,800
Subscriptions sold, shares not issued	$ 220,000
Subscriptions sold, shares not issued, shares	440,000			605,000
Three Employees [Member]
Stockholders Equity Note [Line Items]
Stock issued as compensation for service			36,290
Issuance of common stock for services			$ 30,000
Investor Relations Firm [Member]
Stockholders Equity Note [Line Items]
Stock issued as compensation for service			57,000
Issuance of common stock for services			$ 43,500
Distributors [Member]
Stockholders Equity Note [Line Items]
Stock issued as compensation for service			32,500
Issuance of common stock for services			$ 27,000

SIGNIFICANT CUSTOMERS (Details)

SIGNIFICANT CUSTOMERS (Details) - USD ($)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Concentration Risk [Line Items]
Accounts Receivable	$ 1,555,444	$ 1,607,006	$ 1,678,411
Customer Five Concentration Risk [Member] | Sales Revenue, Goods, Net [Member]
Concentration Risk [Line Items]
Sales Amount	$ 304,949	$ 378,310
Concentration risk percentage	13.00%	13.00%
Customer Five Concentration Risk [Member] | Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration risk percentage	14.00%	12.00%
Accounts Receivable	$ 366,835	$ 249,413
Customer Four Concentration Risk [Member] | Sales Revenue, Goods, Net [Member]
Concentration Risk [Line Items]
Sales Amount	$ 261,086
Concentration risk percentage	11.00%
Customer Four Concentration Risk [Member] | Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration risk percentage	8.00%
Accounts Receivable	$ 207,631
Supplier Three Concentration Risk [Member] | Concentration Risk Benchmark Purchase Amount [Member]
Concentration Risk [Line Items]
Concentration risk percentage	20.00%	28.00%
Supplier Three Concentration Risk [Member] | Concentration Risk Benchmark Accounts Payable [Member]
Concentration Risk [Line Items]
Concentration risk percentage	8.00%	6.00%
Revita Revita Cor [Member] | Sales Revenue, Net [Member]
Concentration Risk [Line Items]
Concentration risk percentage	46.00%
Spectral [Member] | Sales Revenue, Net [Member]
Concentration Risk [Line Items]
Concentration risk percentage	10.00%
Spectral DNC [Member] | Sales Revenue, Net [Member]
Concentration Risk [Line Items]
Concentration risk percentage	5.00%
Spectral DNC VOne And DNC [Member] | Sales Revenue, Net [Member]
Concentration Risk [Line Items]
Concentration risk percentage	6.00%
Top Ten Customers [Member] | Sales Revenue, Net [Member]
Concentration Risk [Line Items]
Concentration risk percentage	72.00%	45.00%
Supplier One Concentration Risk [Member] | Concentration Risk Benchmark Purchase Amount [Member]
Concentration Risk [Line Items]
Concentration risk percentage	22.00%
Supplier One Concentration Risk [Member] | Concentration Risk Benchmark Accounts Payable [Member]
Concentration Risk [Line Items]
Concentration risk percentage	4.00%

SIGNIFICANT VENDORS (Details)

SIGNIFICANT VENDORS (Details) - USD ($)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Concentration Risk [Line Items]
Accounts payable	$ 1,252,978	$ 1,685,155	$ 1,486,758
Revita Revita Cor [Member] | Sales Revenue, Net [Member]
Concentration Risk [Line Items]
Concentration risk percentage	46.00%
Spectral [Member] | Sales Revenue, Net [Member]
Concentration Risk [Line Items]
Concentration risk percentage	10.00%
Spectral DNC [Member] | Sales Revenue, Net [Member]
Concentration Risk [Line Items]
Concentration risk percentage	5.00%
Spectral DNC VOne And DNC [Member] | Sales Revenue, Net [Member]
Concentration Risk [Line Items]
Concentration risk percentage	6.00%
Customer Five Concentration Risk [Member] | Sales Revenue, Goods, Net [Member]
Concentration Risk [Line Items]
Concentration risk percentage	13.00%	13.00%
Customer Five Concentration Risk [Member] | Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration risk percentage	14.00%	12.00%
Customer Four Concentration Risk [Member] | Sales Revenue, Goods, Net [Member]
Concentration Risk [Line Items]
Concentration risk percentage	11.00%
Customer Four Concentration Risk [Member] | Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration risk percentage	8.00%
Top Ten Customers [Member] | Sales Revenue, Net [Member]
Concentration Risk [Line Items]
Concentration risk percentage	72.00%	45.00%
Supplier Three Concentration Risk [Member] | Concentration Risk Benchmark Accounts Payable [Member]
Concentration Risk [Line Items]
Accounts payable	$ 56,824	$ 98,029
Concentration risk percentage	8.00%	6.00%
Supplier Three Concentration Risk [Member] | Concentration Risk Benchmark Purchase Amount [Member]
Concentration Risk [Line Items]
Purchase Amount	$ 171,149	$ 325,731
Concentration risk percentage	20.00%	28.00%
Supplier One Concentration Risk [Member] | Concentration Risk Benchmark Accounts Payable [Member]
Concentration Risk [Line Items]
Accounts payable	$ 29,419
Concentration risk percentage	4.00%
Supplier One Concentration Risk [Member] | Concentration Risk Benchmark Purchase Amount [Member]
Concentration Risk [Line Items]
Purchase Amount	$ 191,713
Concentration risk percentage	22.00%

GEOGRAPHIC REVENUE REPORTING (D

GEOGRAPHIC REVENUE REPORTING (Details) - USD ($)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Segment Reporting Information [Line Items]
Net revenue	$ 2,698,010	$ 2,684,964
Furniture and Equipment, net	150,795	222,658	$ 169,495
North America [Member]
Segment Reporting Information [Line Items]
Net revenue	1,098,100	1,033,997
Furniture and Equipment, net	101,649	119,530
International [Member]
Segment Reporting Information [Line Items]
Net revenue	1,599,910	1,650,967
Furniture and Equipment, net	$ 49,146	$ 103,128

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Consultant [Member]
Related Party Transaction [Line Items]
Related party receivables	$ 40,625	$ 11,170
Related party payables	2,730	11,571
Father of Chief Executive Officer [Member]
Related Party Transaction [Line Items]
Payment made to related party	25,808	25,808
IR related expenses and services [Member] | Consultant [Member]
Related Party Transaction [Line Items]
Payment made to related party	20,000	0
Outsourced COO services [Member] | Consultant [Member]
Related Party Transaction [Line Items]
Payment made to related party	47,500	0
Purchase Of Materials Needed For Products For Export [Member] | Consultant [Member]
Related Party Transaction [Line Items]
Payment made to related party	$ 8,839	$ 6,875

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($)

May 27, 2016

May 02, 2016

Dec. 16, 2013

Apr. 30, 2015

Mar. 31, 2015

Mar. 31, 2014

Apr. 30, 2016

Sep. 30, 2015

Dec. 31, 2015

Dec. 31, 2014

Jan. 31, 2016

Dec. 31, 2013

Subsequent Event [Line Items]

Proceeds from sale of stock subscription

$ 220,000

Increased net loss due to adjustment

869,546

1,045,852

Personal expenses paid for Daniel Khesin

$ 40,000

$ 76,000

Merchandise sold to barter company

$ 956,176

Adjustment [Member]

Subsequent Event [Line Items]

Proceeds from sale of stock subscription

Increased net loss due to adjustment

$ 784,408

$ 195,699

$ 1,125,792

Abner Silva [Member]

Subsequent Event [Line Items]

Advance to related party

$ 11,500

Chief Executive Officer [Member]

Subsequent Event [Line Items]

Value of common stock payment included in base salary

$ 50,000

Subsequent Event [Member]

Subsequent Event [Line Items]

Subscriptions sold, shares not issued, shares

440,000

605,000

Merchandise sold to barter company

$ 4,566,717

Stock purchase agreement amount

$ 1,996,500

Shares in stock purchase agreement

440,000

605,000

Offset of subscription receivable against additional paid in capital

$ 1,196,500

Subsequent Event [Member] | Warrant [Member]

Subsequent Event [Line Items]

Warrants issued

30,000

Warrant exercise price

$ 0.85

Expiration date

Apr. 20, 2017

Subsequent Event [Member] | Secured short term note [Member]

Subsequent Event [Line Items]

Debt instrument, face amount

$ 250,000

Monthly interest rate

1.00%

Debt instrument, maturity date

Apr. 20, 2016

Subsequent Event [Member] | PhotoMedex Civil Action [Member]

Subsequent Event [Line Items]

Damages sought

$ 3,000,000

Subsequent Event [Member] | Renee Barch-Niles Claim [Member] | Potential Litigation [Member]

Subsequent Event [Line Items]

Claim amount sought - shares of stock

$ 2,500,000

Claim amount sought - commissions

123,000

Claim amount sought - severance payments

$ 300,000