DS Healthcare (DSKX) 10-Q/A 18 Oct 16 2015 Q2 Quarterly report (amended) Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 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	Jun. 30, 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	Q2
Document Fiscal Year Focus	2,015
Entity Filer Category	Smaller Reporting Company
Entity Units Outstanding		22,556,765

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Current Assets
Cash	$ 979,111	$ 1,128,556
Accounts receivable, net	1,952,839	1,678,411
Inventories, net	3,965,930	3,862,532
Prepaid expenses and other current assets	357,472	278,714
Total Current Assets	7,255,352	6,948,213
Furniture and Equipment, net	131,844	169,495
Intangible Assets, net	730,925	1,101,373
Other Assets	76,706	62,247
TOTAL ASSETS	8,194,827	8,281,328
Current Liabilities
Accounts payable	1,434,962	1,486,758
Accrued expenses	738,098	1,017,112
Obligation to issue common stock	350,000
Credit facility	250,000
Note Payable		350,000
Other current liabilities	886,516	886,822
Total Current Liabilities	3,659,576	3,740,692
Long Term Debt, net of current portion	19,023	24,997
TOTAL LIABILITIES	3,678,599	3,765,689
COMMITMENTS AND CONTINGENCIES
Shareholders' Equity
Preferred stock, $0.001 par value, 30 million shares authorized: 0 shares issued and outstanding at June 30, 2015 and December 31, 2014.
Common stock, $0.001 par value, 300 million shares authorized: 17,394,712 and 16,202,268 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively	17,395	16,202
Additional paid-in-capital	15,901,663	14,839,695
Stock subscription	(300,667)	(2,500)
Accumulated deficit	(11,208,593)	(10,235,944)
Accumulated comprehensive income	144,860	(63,384)
Total Shareholders' Equity	4,554,658	4,554,069
Non-Controlling Interest	(38,430)	(38,430)
Total Shareholders' Equity	4,516,228	4,515,639
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 8,194,827	$ 8,281,328

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 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	17,394,712	16,202,268
Common stock, shares outstanding	17,394,712	16,202,268

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Statement [Abstract]
Net Revenue	$ 3,304,509	$ 3,744,434	$ 6,002,519	$ 6,429,397
Cost of Goods Sold	1,338,943	1,827,361	2,553,159	3,218,908
Gross Profit	1,965,566	1,917,073	3,449,360	3,210,489
Selling and marketing
Commissions and consulting	358,236	479,778	527,608	840,337
Marketing and promotion	151,652	110,643	392,522	347,757
Other selling and marketing expenses	394,378	646,147	774,414	1,018,496
Total selling and marketing	904,266	1,236,568	1,694,544	2,206,590
General and administrative
Salary and personnel costs	511,172	557,058	1,023,624	1,141,741
Professional fees and consulting costs	346,102	472,549	723,501	1,064,444
Other general and administrative expenses	271,301	428,929	711,633	592,965
Total general and administrative	1,128,575	1,458,536	2,458,758	2,799,150
Total operating costs and expenses	2,032,841	2,695,104	4,153,302	5,005,740
Operating Loss	(67,275)	(778,031)	(703,942)	(1,795,251)
Other Income (Expense)
Interest expense	(24,957)	(22,443)	(40,812)	(49,988)
Impairment of intangible asset			(337,500)
Other	(10,870)	10,036	109,605	8,950
Total other income (expense)	(35,827)	(12,407)	(268,707)	(41,038)
Loss Before Income Taxes	(103,102)	(790,438)	(972,649)	(1,836,289)
Income Tax Expense		31,527		31,527
Net Loss	(103,102)	(821,965)	(972,649)	(1,867,816)
Net Loss Attributable to Non-Controlling Interest		(1,833)		(6,204)
Net Loss Attributable to Common Shareholders	$ (103,102)	$ (820,132)	$ (972,649)	$ (1,861,612)
Basic and Diluted Earnings per Share:
Weighted average shares outstanding	17,043,601	16,085,112	16,652,204	16,007,119
Loss per share	$ (0.01)	$ (0.05)	$ (0.06)	$ (0.12)
Other Comprehensive Income:
Foreign currency translation adjustment	$ (12,390)	$ (40,439)	$ 208,244	$ (14,893)
Comprehensive loss	$ (115,492)	$ (860,571)	$ (764,405)	$ (1,876,505)

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash Flows from Operating Activities:
Net Loss	$ (972,649)	$ (1,867,816)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	83,354	144,909
Loss on disposal of fixed assets	337,500	2,468
(Recovery) for bad debts	(6,656)	(142,585)
(Recovery) for obsolete inventory	(15,910)	(168,917)
Stock issued for services	136,760	31,520
Changes in operating assets and liabilities:
Accounts receivable, net	(267,772)	274,742
Inventories, net	(87,488)	(498,621)
Prepaid expenses and other current assets	249,242	232,648
Other assets		26,000
Accounts payable	(51,796)	(424,929)
Accrued expenses	(198,780)	(44,862)
Other current liabilities	(305)	577,137
Net cash used in operating activities	(794,500)	(1,858,306)
Cash Flows from Investing Activities:
Purchase of furniture and equipment	(457)	(50,359)
Purchase of injection molds	(18,459)
Proceeds from disposal of fixed asset	(212)
Net cash used in investing activities	(19,128)	(50,359)
Cash Flows from Financing Activities:
Repayments of credit facility		(353,496)
Proceeds of credit facility	250,000
Repayment of loans and notes	(5,974)	(5,630)
Proceeds from sale of stock subscription	220,000
Proceeds from sale of common stock		192,000
Less issuance cost		(10,000)
Net cash provided (used) by financing activities	464,026	(177,126)
Effect of exchange rate changes on cash	200,157	(14,100)
Decrease in Cash	(149,445)	(2,099,891)
Cash, Beginning of Period	1,128,556	2,872,946
Cash, End of Period	979,111	773,055
Supplemental Information:
Cash paid for interest	40,812	49,988
Supplemental Noncash Investing and Financing Activities
Stock issued to settle debt		5,000
Conversion of note to common stock pending issuance	350,000
Common stock issued for prepaid services	328,000
Common stock issued to settle accrued expenses	$ 380,902

ORGANIZATION AND NATURE OF BUSI

ORGANIZATION AND NATURE OF BUSINESS	6 Months Ended
	Jun. 30, 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 June 30, 2014 2014-YTD Six months ended June 30, 2014 2015-QTR Three months ended June 30, 2015 2015-YTD Six months ended June 30, 2015 VIE Variable Interest Entity Organization and Nature of Business DS Healthcare Group, Inc. (the “Company”, “DS Laboratories”, “DSKX”, “we”, “us” or “our”) was organized under the laws of the State of Florida in January 2007. The Company is engaged in the development and discovery of drug therapies for specialty pharmaceuticals and commercializes innovative personal care products for its consumer brand. The growing personal care products portfolio is distributed through a network of domestic and international retailers and distributors. The Company researches and develops its own products, which management believes keeps the Company at the forefront of innovation. Our goal is to immediately commercialize unique and disruptive technologies for personal care products that consumers use everyday and to advance drug development to capitalize on both short term and long term projects.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 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 is 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 and Wally Group, LLC, an inactive entity, 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 and six months ended June 30, 2015 and 2014, respectively. 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 and six months ended March 31, 2015 and 2014, respectively, 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 June 30, 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. Prior Period Reclassifications Certain prior period amounts have been reclassified for comparability with the June 30, 2015 presentation. These reclassifications had no effect on previously reported net loss. Use of Estimates The preparation of condensed consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Although these estimates are based on management’s knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results. We believe our estimates and assumptions are reasonable; however, such estimates and assumptions are subject to a number of risks and uncertainties that may cause actual results to differ materially from such estimates. Significant estimates and assumptions underlying these condensed consolidated financial statements include: · Estimates of allowances for uncollectable accounts receivable, · Estimates of inventory obsolescence and overhead and labor cost allocations, · Estimates assuming future earning capacity of our intangible assets, · Estimates of value of equity transactions for services rendered, · Estimates of returned or damaged product, and · Estimates made in our deferred income tax calculations, for which there is a full valuation allowance. 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 June 30, 2015 and December 31, 2014, the allowance for uncollectable accounts was $261,824 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. Revenue Recognition 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 $75,324 and $157,977 for 2015-YTD and 2014-YTD, 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 316,526 shares as of June 30, 2015 and 2014. Debt Discounts The Company records, as a discount to notes, the relative fair value of warrants issued in connection with the issuances and the intrinsic value of any conversion options based on the differences between the fair value of the underlying common stock at the commitment date of the note and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized to interest expense using the interest method over the earlier of the term of the related debt or its earliest redemption date.

LIQUIDITY and GOING CONCERN

LIQUIDITY and GOING CONCERN	6 Months Ended
	Jun. 30, 2015
LIQUIDITY and GOING CONCERN [Abstract]
LIQUIDITY and GOING CONCERN	NOTE 3. – LIQUIDITY and GOING CONCERN We have sustained operational losses since our inception, however commencing in Q3 2014 we began to take steps to achieve profitability in the future. Such steps included increasing gross profit through price increases in Q2 2014 and through formula changes to reduce cost without reducing efficacy. We also decreased overall G&A expenses by implementing cost controls over the last two quarters. At June 30, 2015, we had an accumulated deficit of $9,708,065 compared to $9,613,375 at December 31, 2014. The Company cannot predict how long it will continue to incur further losses or whether it will ever achieve profitability as this is dependent upon the continued 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 June 30, 2015, we had $979,111 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 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	6 Months Ended
	Jun. 30, 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	6 Months Ended
	Jun. 30, 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 periods 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, 2015. The results of the quarterly 10-Q filings during the six months ending June 30, 2015, as previously filed, also did not reflect the proper matching of revenues and costs. The impact of this restatement on the Company’s financial statements for the three months and six months ended June 30, 2015 and 2014, are reflected in the tables below: Condensed Consolidated Balance Sheets: Previously Reported Adjustment Restated 2015 ASSETS Current Assets Cash $ 979,111 $ — $ 979,111 Accounts receivable, net 2,795,608 (842,769 ) 1,952,839 Inventories, net 3,955,359 10,571 3,965,930 Prepaid expenses and other current assets 357,472 — 357,472 Total Current Assets 8,087,550 (832,198 ) 7,255,352 Furniture and equipment, net 168,757 (36,913 ) 131,844 Intangible assets, net 1,049,675 (318,750 ) 730,925 Other assets 102,706 (26,000 ) 76,706 TOTAL ASSETS $ 9,408,688 $ (1,213,861 ) $ 8,194,827 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts payable $ 1,226,283 $ 208,679 $ 1,434,962 Accrued expenses 660,110 77,988 738,098 Obligation to issue common stock 350,000 — 350,000 Credit Facility 250,000 — 250,000 Other current liabilities 886,516 — 886,516 Total Current Liabilities 3,372,909 286,667 3,659,576 Long Term Debt, net of current portion 19,023 — 19,023 TOTAL LIABILITIES 3,391,932 286,667 3,678,599 COMITMENTS AND CONTINGENCIES Shareholders' Equity Common stock, $0.001 par value, 300 million shares authorized: 17,394,712 and 16,202,268 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively 17,395 — 17,395 Additional paid-in-capital 15,901,663 — 15,901,663 Stock subscription (300,667 ) — (300,667 ) Accumulated deficit (9,708,065 ) (1,500,528 ) (11,208,593 ) Accumulated comprehensive income 144,860 — 144,860 Total Shareholders' Equity 6,055,186 (1,500,528 ) 4,554,658 Non-Controlling Interest (38,430 ) — (38,430 ) Total Shareholders' Equity 6,016,756 (1,500,528 ) 4,516,228 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 9,408,688 $ (1,213,861 ) $ 8,194,827 Previously Reported Adjustment Restated 2014 ASSETS Current Assets Cash $ 773,055 $ — $ 773,055 Accounts receivable, net 2,097,171 — 2,097,171 Inventories, net 3,524,537 (154,420 ) 3,370,117 Prepaid expenses and other current assets 413,963 — 413,963 Total Current Assets 6,808,726 (154,420 ) 6,654,306 Furniture and equipment, net 205,665 — 205,665 Intangible assets, net 1,249,870 — 1,249,870 Other assets 163,164 (26,000 ) 137,164 TOTAL ASSETS $ 8,427,425 $ (180,420 ) $ 8,247,005 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts payable $ 1,603,722 $ 202,072 $ 1,805,794 Accrued expenses 848,185 — 848,185 Credit Facility 228,887 — 228,887 Other current liabilities 863,418 — 863,418 Total Current Liabilities 3,544,212 202,072 3,746,284 Long Term Debt, net of current portion 30,795 — 30,795 TOTAL LIABILITIES 3,575,007 202,072 3,777,079 COMITMENTS AND CONTINGENCIES Shareholders' Equity Common stock, $0.001 par value, 300 million shares authorized: 17,394,712 and 16,088,268 shares issued and outstanding at June 30, 2015 and 2014, respectively 16,088 — 16,088 Additional paid-in-capital 14,691,155 — 14,691,155 Stock subscription (2,500 ) — (2,500 ) Accumulated deficit (9,786,540 ) (382,492 ) (10,169,032 ) Accumulated comprehensive income (27,355 ) — (27,355 ) Total Shareholders' Equity 4,890,848 (382,492 ) 4,508,356 Non-Controlling Interest (38,430 ) — (38,430 ) Total Shareholders' Equity 4,852,418 (382,492 ) 4,469,926 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 8,427,425 $ (180,420 ) $ 8,247,005 Condensed Consolidated Statements of Operations and Comprehensive Loss: Three Months Ended Previously Reported Adjustment Restated 2015 Net Revenue $ 3,659,548 $ (355,039 ) $ 3,304,509 Cost of Good sold 1,595,181 (256,238 ) 1,338,943 Gross Profit 2,064,367 (98,801 ) 1,965,566 Operating Costs and Expenses: Selling and marketing Commissions and consulting 358,236 — 358,236 Marketing and promotion 151,652 — 151,652 Other selling and marketing expenses 380,878 13,500 394,378 890,766 13,500 904,266 General and administrative Salary and personnel costs 511,172 — 511,172 Professional fees and consulting costs 346,102 — 346,102 Other general and administrative expenses 290,051 (18,750 ) 271,301 1,147,325 (18,750 ) 1,128,575 Total operating costs and expenses 2,038,091 (5,250 ) 2,032,841 Operating Loss 26,276 (93,551 ) (67,275 ) Other Income (Expense) Interest expense (24,957 ) — (24,957 ) Other (10,870 ) — (10,870 ) Total other income (expense) (35,827 ) — (35,827 ) Net Loss (9,551 ) (93,551 ) (103,102 ) Net Loss Attributable to Non-Controlling Interest — — — Net Loss Attributable to Common Shareholders $ (9,551 ) $ (93,551 ) $ (103,102 ) Basic and Diluted Earnings per Share: Weighted average shares outstanding 17,043,601 — 17,043,601 Net Loss per share $ (0.00 ) $ (0.04 ) $ (0.01 ) Other Comprehensive Loss: Foreign currency translation adjustment $ (12,390 ) $ — $ (12,390 ) Comprehensive loss $ (21,941 ) $ (93,551 ) $ (115,492 ) Six Months Ended Previously Reported Adjustment Restated 2015 Net Revenue $ 6,463,468 $ (460,949 ) $ 6,002,519 Cost of Good sold 2,733,941 (180,782 ) 2,553,159 Gross Profit 3,729,527 (280,167 ) 3,449,360 Operating Costs and Expenses: Selling and marketing Commissions and consulting 527,608 — 527,608 Marketing and promotion 392,522 — 392,522 Other selling and marketing expenses 747,414 27,000 774,414 1,667,544 27,000 1,694,544 General and administrative Salary and personnel costs 1,023,624 — 1,023,624 Professional fees and consulting costs 722,513 988 723,501 Other general and administrative expenses 479,329 232,304 711,633 2,225,466 233,292 2,458,758 Total operating costs and expenses 3,893,010 260,292 4,153,302 Operating Loss (163,483 ) (540,459 ) (703,942 ) Other Income (Expense) Interest expense (40,812 ) — (40,812 ) Impairment of intangible asset — (337,500 ) (337,500 ) Other 109,605 — 109,605 Total other income (expense) 68,793 (337,500 ) (268,707 ) Net Loss (94,690 ) (877,959 ) (972,649 ) Net Loss Attributable to Non-Controlling Interest — — — Net Loss Attributable to Common Shareholders $ (94,690 ) $ (877,959 ) $ (972,649 ) Basic and Diluted Earnings per Share: Weighted average shares outstanding 16,652,204 — 16,652,204 Net Loss per share $ (0.01 ) $ (0.04 ) $ (0.06 ) Other Comprehensive Loss: Foreign currency translation adjustment $ 208,244 $ — $ 208,244 Comprehensive loss $ 113,554 $ (877,959 ) $ (764,405 ) Three Months Ended Previously Reported Adjustment Restated 2014 Net Revenue $ 3,744,434 $ — $ 3,744,434 Cost of Good sold 1,802,898 24,463 1,827,361 Gross Profit 1,941,536 (24,463 ) 1,917,073 Operating Costs and Expenses: Selling and marketing Commissions and consulting 479,778 — 479,778 Marketing and promotion 110,643 — 110,643 Other selling and marketing expenses 603,817 42,330 646,147 1,194,238 42,330 1,236,568 General and administrative Salary and personnel costs 557,058 — 557,058 Professional fees and consulting costs 472,549 — 472,549 Other general and administrative expenses 308,929 120,000 428,929 1,338,536 120,000 1,458,536 Total operating costs and expenses 2,532,774 162,330 2,695,104 Operating Loss (591,238 ) (186,793 ) (778,031 ) Other Income (Expense) Interest expense (22,443 ) — (22,443 ) Other 10,036 — 10,036 Total other income (expense) (12,407 ) — (12,407 ) Net Loss before income taxes (603,645 ) (186,793 ) (790,438 ) Income Tax (Benefit) Expense 31,527 — 31,527 Net Loss (635,172 ) (186,793 ) (821,965 ) Net Loss Attributable to Non-Controlling Interest (1,833 ) — (1,833 ) Net Loss Attributable to Common Shareholders $ (633,339 ) $ (186,793 ) $ (820,132 ) Basic and Diluted Earnings per Share: Weighted average shares outstanding 16,085,112 16,085,112 Net Loss per share $ (0.04 ) $ (0.01 ) $ (0.05 ) Other Comprehensive Loss: Foreign currency translation adjustment $ (40,439 ) $ — $ (40,439 ) Comprehensive loss $ (673,778 ) $ (186,793 ) $ (860,571 ) Six Months Ended Previously Reported Adjustment Restated 2014 Net Revenue $ 6,429,397 $ — $ 6,429,397 Cost of Good sold 3,005,416 213,492 3,218,908 Gross Profit 3,423,981 (213,492 ) 3,210,489 Operating Costs and Expenses: Selling and marketing Commissions and consulting 840,337 — 840,337 Marketing and promotion 347,757 — 347,757 Other selling and marketing expenses 976,166 42,330 1,018,496 2,164,260 42,330 2,206,590 General and administrative Salary and personnel costs 1,141,741 — 1,141,741 Professional fees and consulting costs 1,057,774 6,670 1,064,444 Other general and administrative expenses 472,965 120,000 592,965 2,672,480 126,670 2,799,150 Total operating costs and expenses 4,836,740 169,000 5,005,740 Operating Loss (1,412,759 ) (382,492 ) (1,795,251 ) Other Income (Expense) Interest expense (49,988 ) — (49,988 ) Impairment of intangible asset — — — Other 8,950 — 8,950 Total other income (expense) (41,038 ) — (41,038 ) Net Loss before income taxes (1,453,797 ) (382,492 ) (1,836,289 ) Income Tax (Benefit) Expense 31,527 31,527 Net Loss (1,485,324 ) (382,492 ) (1,867,816 ) Net Loss Attributable to Non-Controlling Interest (6,204 ) — (6,204 ) Net Loss Attributable to Common Shareholders $ (1,479,120 ) $ (382,492 ) $ (1,861,612 ) Basic and Diluted Earnings per Share: Weighted average shares outstanding 16,007,119 — 16,007,119 Net Loss per share $ (0.09 ) $ (0.03 ) $ (0.12 ) Other Comprehensive Loss: Foreign currency translation adjustment $ (14,893 ) $ — $ (14,893 ) Comprehensive loss $ (1,494,013 ) $ (382,492 ) $ (1,876,505 ) Condensed Consolidated Statements of Cash Flows: For the Six Months Ended Previously Reported Adjustment Restated 2015 Cash Flows from Operating Activities: Net loss $ (94,690 ) $ (877,959 ) $ (972,649 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 102,104 (18,750 ) 83,354 Impairment of intangible asset — 337,500 337,500 Provision (Recovery) of bad debts (6,656 ) — (6,656 ) Provision for obsolete inventory (15,910 ) — (15,910 ) Stock issued for services 136,760 — 136,760 Changes in operating assets and liabilities: Accounts receivable, net (979,774 ) 712,002 (267,772 ) Inventories, net 45,079 (132,567 ) (87,488 ) Prepaid expenses and other current assets (51,425 ) 300,667 249,242 Accounts payable (3,583 ) (1 ) (51,796 ) Accrued expenses 73,900 (272,680 ) (198,780 ) Other current liabilities (305 ) — (305 ) Net cash used in operating activities (794,500 ) 48,212 (794,500 ) Cash Flows from Operating Activities: Proceeds from furniture and equipment (457 ) — (457 ) Proceeds from disposal of assets (212 ) — (212 ) Purchases of injection molds (18,459 ) — (18,459 ) Net cash used in investing activities (19,128 ) — (19,128 ) Cash Flows from Financing Activities: Proceeds from credit facility 250,000 250,000 Proceeds from loans and notes (5,974 ) — (5,974 ) Proceeds from stock subscriptions 220,000 — 220,000 Net cash provided by financing activities 464,026 — 464,026 Effect of exchange rate changes on cash 200,157 — 200,157 Decrease in cash (149,445 ) — (149,445 ) Cash, Beginning of Period 1,128,556 — 1,128,556 Cash, End of Period $ 979,111 $ — $ 979,111 For the Six Months Ended Previously Reported Adjustment Restated 2014 Cash Flows from Operating Activities: Net loss $ (1,485,324 ) $ (382,492 ) $ (1,867,816 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 144,909 — 144,909 Loss on disposal of fixed asset 2,468 — 2,468 Recovery of bad debts (142,585 ) — (142,585 ) Recovery for obsolete inventory (168,917 ) — (168,917 ) Stock issued for services 31,520 — 31,520 Changes in operating assets and liabilities: Accounts receivable, net 274,742 — 274,742 Inventories, net (653,041 ) 154,420 (498,621 ) Prepaid expenses and other current assets 232,648 — 232,648 Other assets — 26,000 26,000 Accounts payable (627,001 ) 202,072 (424,929 ) Accrued expenses (44,862 ) — (44,862 ) Other current liabilities 577,137 — 577,137 Net cash used in operating activities (1,858,306 ) — (1,858,306 ) Cash Flows from Operating Activities: Purchase of furniture and equipment (50,359 ) — (50,359 ) Net cash used in investing activities (50,359 ) — (50,359 ) Cash Flows from Financing Activities: Repayments of credit facility (353,496 ) — (353,496 ) Repayment of loans and notes (5,630 ) — (5,630 ) Proceeds from sales of common stock 192,000 — 192,000 Less issuance cost (10,000 ) — (10,000 ) Net cash provided by financing activities (177,126 ) — (177,126 ) Effect of exchange rate changes on cash (14,100 ) — (14,100 ) Decrease in cash (2,099,891 ) — (2,099,891 ) Cash, Beginning of Period 2,872,946 — 2,872,946 Cash, End of Period $ 773,055 $ — $ 773,055

INVENTORIES

INVENTORIES	6 Months Ended
	Jun. 30, 2015
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 6. – INVENTORIES Significant components of inventory at June 30, 2015 and December 31, 2014 consist primarily of: 2015 2014 Inventory in transit $ 132,181 $ 231,623 Bulk product and raw materials 2,340,809 2,502,402 Work in process 418,265 213,832 Merchandise inventory 1,446,023 1,301,933 Less: Allowance (371,348 ) (387,258 ) $ 3,965,930 $ 3,862,532

INTANGIBLE ASSETS

INTANGIBLE ASSETS	6 Months Ended
	Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	NOTE 7. – INTANGIBLE ASSETS Significant components of intangible assets at June 30, 2015 and December 31, 2014 consist of: 2015 2014 Distribution rights in Brazil $ 750,000 $ 750,000 Less: Accumulated amortization & impairment (750,000 ) (393,750 ) Net distribution rights — 356,250 Mexican customer list 932,000 932,000 Less: Accumulated amortization (237,360 ) (223,162 ) Net customer list 694,640 708,838 Goodwill 36,285 36,285 $ 730,925 $ 1,101,373 The following table represents the amortized cost of the various assets over the remaining years; the weighted average remaining period is 5.94 years. Asset: 2015 2016 2017 2018 2019 Total Mexican customer list $ 51,750 $ 103,500 $ 103,500 $ 103,500 $ 332,390 $ 694,640 $ 51,750 $ 103,500 $ 103,500 $ 103,500 $ 332,390 $ 694,640

ACCRUED EXPENSES

ACCRUED EXPENSES	6 Months Ended
	Jun. 30, 2015
Payables and Accruals [Abstract]
ACCRUED EXPENSES	NOTE 8. – ACCRUED EXPENSES Accrued expenses at June 30, 2015 and December 31, 2014 consist of: 2015 2014 Accounting $ 10,000 $ — Advertising — 35,000 Commission 270,644 367,063 Director Services 1,510 15,000 Facilities 22,660 10,300 Fees/Interest 33,833 7,000 Investor Relations 78,750 265,024 Materials 120,412 102,958 Stock awards 50,988 50,000 Personnel 81,293 108,819 Employee benefits 27,000 — Warehouse 41,008 55,948 $ 738,098 $ 1,017,112

OBLIGATION TO ISSUE COMMON STOC

OBLIGATION TO ISSUE COMMON STOCK	6 Months Ended
	Jun. 30, 2015
OBLIGATION TO ISSUE COMMON STOCK [Abstract]
OBLIGATION TO ISSUE COMMON STOCK	NOTE 9. – OBLIGATION TO ISSUE COMMON STOCK The Company was a party to a note for $350,000 which was due on May 28, 2015. On June 1, 2015 the parties agreed to convert the note plus accrued interest to 199,202 common shares. Accordingly, the Company has recorded an obligation to issue shares as a liability at June 30, 2015. The accrued interest is not material to the financial statements and has been omitted.

OTHER CURRENT LIABILITIES

OTHER CURRENT LIABILITIES	6 Months Ended
	Jun. 30, 2015
Other Liabilities, Current [Abstract]
OTHER CURRENT LIABILITIES	NOTE 10. – OTHER CURRENT LIABILITIES Other current liabilities at June 30, 2015 and December 31, 2014 consist of: 2015 2014 Customer deposits $ 189,170 $ 141,998 Credit cards 331,921 190,803 Marketing and promotional programs 111,000 227,681 VAT Taxes payable - Mexico 112,363 173,567 Current portion of long term debt 11,773 11,429 Vendor Note 25,174 25,174 Advance from Officer 4,000 26,360 Other operating liabilities 88,038 89,810 Payroll taxes 13,077 — $ 886,516 $ 886,822

DEBT FINANCING

DEBT FINANCING	6 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
DEBT FINANCING	NOTE 11. – 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 $ 5,799 $ 5,974 $ — $ 11,773 Long Term Debt — 6,154 12,869 19,023 $ 5,799 $ 12,128 $ 12,869 $ 30,796

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 12. – COMMITMENTS AND CONTINGENCIES During the six months ended June 30, 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 expires on December 31, 2015. Effective September 30, 2014 the Company has relocated this office to its Florida headquarters and as of June 30, 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 expired in July 2015. The Company is negotiating a renewal lease at the same location for approximately the same terms. The lease provides for monthly rent of $1,408 and the Company continues to lease the space on a month to month basis. The Company accounts for its facility leases using the straight-line method and incurred $213,828 and $171,720 in total rent expense of which a portion was allocated to manufacturing overhead, in the six months ended June 30, 2015 and 2014, respectively. The Company is committed to lease payments over the next five years as follows: 2015 2016 2017 2018 2019 Total Deerfield, FL (HQ/Production) $ 218,772 $ 444,672 $ 457,238 $ 470,298 $ 278,882 $ 1,869,862 Mexico City, Mexico (Sales) 7,200 — — — — 7,200 $ 225,972 $ 444,672 $ 457,238 $ 470,298 $ 278,882 $ 1,877,062 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 June 30, 2015, the agreed shares have not been returned to treasury. From time to time, the Company may be involved in various claims and legal actions arising from the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s condensed consolidated financial position or results of operations. Purchase commitments In order to secure an adequate supply of raw materials, the Company executes purchase orders to its suppliers as evidence of its intent to purchase materials. Purchase orders outstanding at June 30, 2015 totaled $469,539. Contract contingencies Our distribution agreement with Gamma Investors, a shareholder of the Company, provides that in the event we terminate the agreement without cause, we are required to repurchase all products held in Gamma’s inventory and pay Gamma a fee equal to the greater of the prior 12 month product purchased by Gamma or $2 million. Transactions with Gamma have been de minimus to date.

EQUITY

EQUITY	6 Months Ended
	Jun. 30, 2015
Stockholders' Equity Note [Abstract]
EQUITY	NOTE 13. – 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. During the second quarter of 2015, the Company issued 15,500 shares of common stock in aggregate to two investor relations (“IR”) firms for services valued at $28,060. We also issued an aggregate of 412,154 shares of common stock to five employees for services rendered, at an aggregate value of $380,902 which were accrued and expensed in prior periods and 5,000 shares of common stock valued at $8,200 to a director or services rendered. We also issued 440,000 shares of common stock to an investor in satisfaction of a subscription to purchase the shares, cancelled $2,500 subscription and returned 6,000 shares to treasury and cancelled. We issued 200,000 forfeitable shares of common stock to a consultant valued at $328,000 for services to be rendered ratably over the upcoming year, which have been charged to equity and will be accreted to expense as the services are performed.

SIGNIFICANT CUSTOMERS

SIGNIFICANT CUSTOMERS	6 Months Ended
	Jun. 30, 2015
SIGNIFICANT CUSTOMERS [Abstract]
SIGNIFICANT CUSTOMERS	NOTE 14. – SIGNIFICANT CUSTOMERS Our product revenues represent primarily sales of Revita and Revita Cor which individually exceed 10% of total sales and collectively represent 39% of net revenue. Spectral DNC-N represents 9% of net revenue and Polaris NR09 represents 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-YTD and 2014-YTD. During 2015-YTD and 2014-YTD, our top ten customers generated 47% and 42% of our net revenue, respectively. There were no sales to customers individually in excess of 10% of net revenue during 2015-YTD. Sales to customers individually in excess of 10% of net revenue during 2014-YTD and their accounts receivable at June 30, 2014 were: Customer Sales Amount Percent Accounts Receivable Percent C $1,010,871 14% $133,090 5%

SIGNIFICANT VENDORS

SIGNIFICANT VENDORS	6 Months Ended
	Jun. 30, 2015
SIGNIFICANT VENDORS [Abstract]
SIGNIFICANT VENDORS	NOTE 15. – 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 from significant vendors during 2015-YTD and their accounts payable at June 30, 2015 were: Vendor Purchase Amount Percent Accounts Payable Percent C $387,903 21% $ 83,522 7% D $234,051 13% $137,735 11% Purchases from significant vendors during 2014-YTD and their accounts payable at June 30, 2014 were: Vendor Purchase Amount Percent Accounts Payable Percent C $567,814 21% $87,101 5%

GEOGRAPHIC REVENUE REPORTING

GEOGRAPHIC REVENUE REPORTING	6 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
GEOGRAPHIC REVENUE REPORTING	NOTE 16. – 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 sells 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-YTD and 2014-YTD as follows: 2015 2014 Net Revenue: North America $ 2,221,799 $ 2,629,177 International 3,780,720 3,800,220 $ 6,002,519 $ 6,429,397 Furniture and Equipment, net: North America $ 90,423 $ 109,664 International 41,421 96,001 $ 131,844 $ 205,665

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2015
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 17. – RELATED PARTY TRANSACTIONS For the six months ended June 30, 2015 and 2014, the Company was a party to the following related party transactions not disclosed elsewhere in these financial statements: · the Company expensed $51,617 (2015) and $51,617 (2014) as compensation to the father of our Chief Executive Officer for consulting on various projects, · the Company expensed $27,036 (2015) and $0 (2014) as compensation to the sister of our Chief Executive Officer as a brand manager for various customers, · the Company had receivables from a consultant, that potentially may be in violation of the Sarbanes Oxley Act of 2002 (see the Company’s annual 10-K report for the year ended December 31, 2015) of $58,732 (2015) and $2,700 (2014) and payables of $0 (2015) and $0 (2014), and paid $95,000 (2015) and $0 (2014) for outsourced COO services to the consultant who is also a shareholder and employee. In addition, the Company had the following transactions with entities controlled by the consultant: – the Company expensed $42,475 (2015) and $16,500 (2014) for materials needed for the assembly and manufacture of products for export, – the Company expensed $43,700 (2015) and $142,814 (2014) in cash and stock for IR related expenses and services. – the Company received $64,003 (2015) and $61,302 (2014) for finished product purchased and resold.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2015
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 18. – SUBSEQUENT EVENTS Management has evaluated subsequent events or transactions occurring through the date the financial statements were issued. The following items are a summary of events or transactions occurring subsequent to the balance-sheet date, but prior to the issuance of these financial statements, that have a material effect on the financial statements and therefore require adjustment or disclosure in these statements. During the third quarter of 2015, the Company issued 70,000 shares to two employees for services in aggregate valued at $190,100. During the third quarter of 2015, the Company entered into a distribution agreement whereby it has issued 500,000 shares over the next 5 years, provided it meets certain revenue minimums. The shares will be held in escrow while the milestones are not met. On October 7, 2016, the company issued an 8-K to inform the investors that previously submitted filings should not be relied upon for investing decisions. The company will be filing amended 10-Q’s 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 25 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, 2016. The company, in accordance with Section 10A of the Securities and Exchange Act of 1934, informed the Commission in a letter also dated September 29, 2016. See "Controls and Procedures" and "Executive Compensation" below. 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, 2016. The company, in accordance with Section 10A of the Securities and Exchange Act of 1934, informed the Commission in a letter also dated September 29, 2016. 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 19, 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 11 th th th th On March 29, 2016, DS Healthcare, Mr. Khesin, and certain former members of the Board of Directors Prasant Shah v. DS Healthcare Group, Inc. 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 ACCOUN24

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 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 is 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 and Wally Group, LLC, an inactive entity, 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 and six months ended June 30, 2015 and 2014, respectively. 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 and six months ended March 31, 2015 and 2014, respectively, 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 June 30, 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.
Prior Period Reclassifications	Prior Period Reclassifications Certain prior period amounts have been reclassified for comparability with the June 30, 2015 presentation. These reclassifications had no effect on previously reported net loss.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Although these estimates are based on management’s knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results. We believe our estimates and assumptions are reasonable; however, such estimates and assumptions are subject to a number of risks and uncertainties that may cause actual results to differ materially from such estimates. Significant estimates and assumptions underlying these condensed consolidated financial statements include: · Estimates of allowances for uncollectable accounts receivable, · Estimates of inventory obsolescence and overhead and labor cost allocations, · Estimates assuming future earning capacity of our intangible assets, · Estimates of value of equity transactions for services rendered, · Estimates of returned or damaged product, and · Estimates made in our deferred income tax calculations, for which there is a full valuation allowance.
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 June 30, 2015 and December 31, 2014, the allowance for uncollectable accounts was $261,824 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.
Revenue Recognition	Revenue Recognition 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 $75,324 and $157,977 for 2015-YTD and 2014-YTD, 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 316,526 shares as of June 30, 2015 and 2014.
Debt Discounts	Debt Discounts The Company records, as a discount to notes, the relative fair value of warrants issued in connection with the issuances and the intrinsic value of any conversion options based on the differences between the fair value of the underlying common stock at the commitment date of the note and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized to interest expense using the interest method over the earlier of the term of the related debt or its earliest redemption date.

RESTATEMENT OF FINANCIAL STAT25

RESTATEMENT OF FINANCIAL STATEMENTS (Tables)	6 Months Ended
	Jun. 30, 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 $ 979,111 $ — $ 979,111 Accounts receivable, net 2,795,608 (842,769 ) 1,952,839 Inventories, net 3,955,359 10,571 3,965,930 Prepaid expenses and other current assets 357,472 — 357,472 Total Current Assets 8,087,550 (832,198 ) 7,255,352 Furniture and equipment, net 168,757 (36,913 ) 131,844 Intangible assets, net 1,049,675 (318,750 ) 730,925 Other assets 102,706 (26,000 ) 76,706 TOTAL ASSETS $ 9,408,688 $ (1,213,861 ) $ 8,194,827 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts payable $ 1,226,283 $ 208,679 $ 1,434,962 Accrued expenses 660,110 77,988 738,098 Obligation to issue common stock 350,000 — 350,000 Credit Facility 250,000 — 250,000 Other current liabilities 886,516 — 886,516 Total Current Liabilities 3,372,909 286,667 3,659,576 Long Term Debt, net of current portion 19,023 — 19,023 TOTAL LIABILITIES 3,391,932 286,667 3,678,599 COMITMENTS AND CONTINGENCIES Shareholders' Equity Common stock, $0.001 par value, 300 million shares authorized: 17,394,712 and 16,202,268 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively 17,395 — 17,395 Additional paid-in-capital 15,901,663 — 15,901,663 Stock subscription (300,667 ) — (300,667 ) Accumulated deficit (9,708,065 ) (1,500,528 ) (11,208,593 ) Accumulated comprehensive income 144,860 — 144,860 Total Shareholders' Equity 6,055,186 (1,500,528 ) 4,554,658 Non-Controlling Interest (38,430 ) — (38,430 ) Total Shareholders' Equity 6,016,756 (1,500,528 ) 4,516,228 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 9,408,688 $ (1,213,861 ) $ 8,194,827 Previously Reported Adjustment Restated 2014 ASSETS Current Assets Cash $ 773,055 $ — $ 773,055 Accounts receivable, net 2,097,171 — 2,097,171 Inventories, net 3,524,537 (154,420 ) 3,370,117 Prepaid expenses and other current assets 413,963 — 413,963 Total Current Assets 6,808,726 (154,420 ) 6,654,306 Furniture and equipment, net 205,665 — 205,665 Intangible assets, net 1,249,870 — 1,249,870 Other assets 163,164 (26,000 ) 137,164 TOTAL ASSETS $ 8,427,425 $ (180,420 ) $ 8,247,005 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts payable $ 1,603,722 $ 202,072 $ 1,805,794 Accrued expenses 848,185 — 848,185 Credit Facility 228,887 — 228,887 Other current liabilities 863,418 — 863,418 Total Current Liabilities 3,544,212 202,072 3,746,284 Long Term Debt, net of current portion 30,795 — 30,795 TOTAL LIABILITIES 3,575,007 202,072 3,777,079 COMITMENTS AND CONTINGENCIES Shareholders' Equity Common stock, $0.001 par value, 300 million shares authorized: 17,394,712 and 16,088,268 shares issued and outstanding at June 30, 2015 and 2014, respectively 16,088 — 16,088 Additional paid-in-capital 14,691,155 — 14,691,155 Stock subscription (2,500 ) — (2,500 ) Accumulated deficit (9,786,540 ) (382,492 ) (10,169,032 ) Accumulated comprehensive income (27,355 ) — (27,355 ) Total Shareholders' Equity 4,890,848 (382,492 ) 4,508,356 Non-Controlling Interest (38,430 ) — (38,430 ) Total Shareholders' Equity 4,852,418 (382,492 ) 4,469,926 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 8,427,425 $ (180,420 ) $ 8,247,005 Condensed Consolidated Statements of Operations and Comprehensive Loss: Three Months Ended Previously Reported Adjustment Restated 2015 Net Revenue $ 3,659,548 $ (355,039 ) $ 3,304,509 Cost of Good sold 1,595,181 (256,238 ) 1,338,943 Gross Profit 2,064,367 (98,801 ) 1,965,566 Operating Costs and Expenses: Selling and marketing Commissions and consulting 358,236 — 358,236 Marketing and promotion 151,652 — 151,652 Other selling and marketing expenses 380,878 13,500 394,378 890,766 13,500 904,266 General and administrative Salary and personnel costs 511,172 — 511,172 Professional fees and consulting costs 346,102 — 346,102 Other general and administrative expenses 290,051 (18,750 ) 271,301 1,147,325 (18,750 ) 1,128,575 Total operating costs and expenses 2,038,091 (5,250 ) 2,032,841 Operating Loss 26,276 (93,551 ) (67,275 ) Other Income (Expense) Interest expense (24,957 ) — (24,957 ) Other (10,870 ) — (10,870 ) Total other income (expense) (35,827 ) — (35,827 ) Net Loss (9,551 ) (93,551 ) (103,102 ) Net Loss Attributable to Non-Controlling Interest — — — Net Loss Attributable to Common Shareholders $ (9,551 ) $ (93,551 ) $ (103,102 ) Basic and Diluted Earnings per Share: Weighted average shares outstanding 17,043,601 — 17,043,601 Net Loss per share $ (0.00 ) $ (0.04 ) $ (0.01 ) Other Comprehensive Loss: Foreign currency translation adjustment $ (12,390 ) $ — $ (12,390 ) Comprehensive loss $ (21,941 ) $ (93,551 ) $ (115,492 ) Six Months Ended Previously Reported Adjustment Restated 2015 Net Revenue $ 6,463,468 $ (460,949 ) $ 6,002,519 Cost of Good sold 2,733,941 (180,782 ) 2,553,159 Gross Profit 3,729,527 (280,167 ) 3,449,360 Operating Costs and Expenses: Selling and marketing Commissions and consulting 527,608 — 527,608 Marketing and promotion 392,522 — 392,522 Other selling and marketing expenses 747,414 27,000 774,414 1,667,544 27,000 1,694,544 General and administrative Salary and personnel costs 1,023,624 — 1,023,624 Professional fees and consulting costs 722,513 988 723,501 Other general and administrative expenses 479,329 232,304 711,633 2,225,466 233,292 2,458,758 Total operating costs and expenses 3,893,010 260,292 4,153,302 Operating Loss (163,483 ) (540,459 ) (703,942 ) Other Income (Expense) Interest expense (40,812 ) — (40,812 ) Impairment of intangible asset — (337,500 ) (337,500 ) Other 109,605 — 109,605 Total other income (expense) 68,793 (337,500 ) (268,707 ) Net Loss (94,690 ) (877,959 ) (972,649 ) Net Loss Attributable to Non-Controlling Interest — — — Net Loss Attributable to Common Shareholders $ (94,690 ) $ (877,959 ) $ (972,649 ) Basic and Diluted Earnings per Share: Weighted average shares outstanding 16,652,204 — 16,652,204 Net Loss per share $ (0.01 ) $ (0.04 ) $ (0.06 ) Other Comprehensive Loss: Foreign currency translation adjustment $ 208,244 $ — $ 208,244 Comprehensive loss $ 113,554 $ (877,959 ) $ (764,405 ) Three Months Ended Previously Reported Adjustment Restated 2014 Net Revenue $ 3,744,434 $ — $ 3,744,434 Cost of Good sold 1,802,898 24,463 1,827,361 Gross Profit 1,941,536 (24,463 ) 1,917,073 Operating Costs and Expenses: Selling and marketing Commissions and consulting 479,778 — 479,778 Marketing and promotion 110,643 — 110,643 Other selling and marketing expenses 603,817 42,330 646,147 1,194,238 42,330 1,236,568 General and administrative Salary and personnel costs 557,058 — 557,058 Professional fees and consulting costs 472,549 — 472,549 Other general and administrative expenses 308,929 120,000 428,929 1,338,536 120,000 1,458,536 Total operating costs and expenses 2,532,774 162,330 2,695,104 Operating Loss (591,238 ) (186,793 ) (778,031 ) Other Income (Expense) Interest expense (22,443 ) — (22,443 ) Other 10,036 — 10,036 Total other income (expense) (12,407 ) — (12,407 ) Net Loss before income taxes (603,645 ) (186,793 ) (790,438 ) Income Tax (Benefit) Expense 31,527 — 31,527 Net Loss (635,172 ) (186,793 ) (821,965 ) Net Loss Attributable to Non-Controlling Interest (1,833 ) — (1,833 ) Net Loss Attributable to Common Shareholders $ (633,339 ) $ (186,793 ) $ (820,132 ) Basic and Diluted Earnings per Share: Weighted average shares outstanding 16,085,112 16,085,112 Net Loss per share $ (0.04 ) $ (0.01 ) $ (0.05 ) Other Comprehensive Loss: Foreign currency translation adjustment $ (40,439 ) $ — $ (40,439 ) Comprehensive loss $ (673,778 ) $ (186,793 ) $ (860,571 ) Six Months Ended Previously Reported Adjustment Restated 2014 Net Revenue $ 6,429,397 $ — $ 6,429,397 Cost of Good sold 3,005,416 213,492 3,218,908 Gross Profit 3,423,981 (213,492 ) 3,210,489 Operating Costs and Expenses: Selling and marketing Commissions and consulting 840,337 — 840,337 Marketing and promotion 347,757 — 347,757 Other selling and marketing expenses 976,166 42,330 1,018,496 2,164,260 42,330 2,206,590 General and administrative Salary and personnel costs 1,141,741 — 1,141,741 Professional fees and consulting costs 1,057,774 6,670 1,064,444 Other general and administrative expenses 472,965 120,000 592,965 2,672,480 126,670 2,799,150 Total operating costs and expenses 4,836,740 169,000 5,005,740 Operating Loss (1,412,759 ) (382,492 ) (1,795,251 ) Other Income (Expense) Interest expense (49,988 ) — (49,988 ) Impairment of intangible asset — — — Other 8,950 — 8,950 Total other income (expense) (41,038 ) — (41,038 ) Net Loss before income taxes (1,453,797 ) (382,492 ) (1,836,289 ) Income Tax (Benefit) Expense 31,527 31,527 Net Loss (1,485,324 ) (382,492 ) (1,867,816 ) Net Loss Attributable to Non-Controlling Interest (6,204 ) — (6,204 ) Net Loss Attributable to Common Shareholders $ (1,479,120 ) $ (382,492 ) $ (1,861,612 ) Basic and Diluted Earnings per Share: Weighted average shares outstanding 16,007,119 — 16,007,119 Net Loss per share $ (0.09 ) $ (0.03 ) $ (0.12 ) Other Comprehensive Loss: Foreign currency translation adjustment $ (14,893 ) $ — $ (14,893 ) Comprehensive loss $ (1,494,013 ) $ (382,492 ) $ (1,876,505 ) Condensed Consolidated Statements of Cash Flows: For the Six Months Ended Previously Reported Adjustment Restated 2015 Cash Flows from Operating Activities: Net loss $ (94,690 ) $ (877,959 ) $ (972,649 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 102,104 (18,750 ) 83,354 Impairment of intangible asset — 337,500 337,500 Provision (Recovery) of bad debts (6,656 ) — (6,656 ) Provision for obsolete inventory (15,910 ) — (15,910 ) Stock issued for services 136,760 — 136,760 Changes in operating assets and liabilities: Accounts receivable, net (979,774 ) 712,002 (267,772 ) Inventories, net 45,079 (132,567 ) (87,488 ) Prepaid expenses and other current assets (51,425 ) 300,667 249,242 Accounts payable (3,583 ) (1 ) (51,796 ) Accrued expenses 73,900 (272,680 ) (198,780 ) Other current liabilities (305 ) — (305 ) Net cash used in operating activities (794,500 ) 48,212 (794,500 ) Cash Flows from Operating Activities: Proceeds from furniture and equipment (457 ) — (457 ) Proceeds from disposal of assets (212 ) — (212 ) Purchases of injection molds (18,459 ) — (18,459 ) Net cash used in investing activities (19,128 ) — (19,128 ) Cash Flows from Financing Activities: Proceeds from credit facility 250,000 250,000 Proceeds from loans and notes (5,974 ) — (5,974 ) Proceeds from stock subscriptions 220,000 — 220,000 Net cash provided by financing activities 464,026 — 464,026 Effect of exchange rate changes on cash 200,157 — 200,157 Decrease in cash (149,445 ) — (149,445 ) Cash, Beginning of Period 1,128,556 — 1,128,556 Cash, End of Period $ 979,111 $ — $ 979,111 For the Six Months Ended Previously Reported Adjustment Restated 2014 Cash Flows from Operating Activities: Net loss $ (1,485,324 ) $ (382,492 ) $ (1,867,816 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 144,909 — 144,909 Loss on disposal of fixed asset 2,468 — 2,468 Recovery of bad debts (142,585 ) — (142,585 ) Recovery for obsolete inventory (168,917 ) — (168,917 ) Stock issued for services 31,520 — 31,520 Changes in operating assets and liabilities: Accounts receivable, net 274,742 — 274,742 Inventories, net (653,041 ) 154,420 (498,621 ) Prepaid expenses and other current assets 232,648 — 232,648 Other assets — 26,000 26,000 Accounts payable (627,001 ) 202,072 (424,929 ) Accrued expenses (44,862 ) — (44,862 ) Other current liabilities 577,137 — 577,137 Net cash used in operating activities (1,858,306 ) — (1,858,306 ) Cash Flows from Operating Activities: Purchase of furniture and equipment (50,359 ) — (50,359 ) Net cash used in investing activities (50,359 ) — (50,359 ) Cash Flows from Financing Activities: Repayments of credit facility (353,496 ) — (353,496 ) Repayment of loans and notes (5,630 ) — (5,630 ) Proceeds from sales of common stock 192,000 — 192,000 Less issuance cost (10,000 ) — (10,000 ) Net cash provided by financing activities (177,126 ) — (177,126 ) Effect of exchange rate changes on cash (14,100 ) — (14,100 ) Decrease in cash (2,099,891 ) — (2,099,891 ) Cash, Beginning of Period 2,872,946 — 2,872,946 Cash, End of Period $ 773,055 $ — $ 773,055

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Jun. 30, 2015
Inventory Disclosure [Abstract]
Schedule of the Significant Components of Inventory	2015 2014 Inventory in transit $ 132,181 $ 231,623 Bulk product and raw materials 2,340,809 2,502,402 Work in process 418,265 213,832 Merchandise inventory 1,446,023 1,301,933 Less: Allowance (371,348 ) (387,258 ) $ 3,965,930 $ 3,862,532

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	6 Months Ended
	Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	2015 2014 Distribution rights in Brazil $ 750,000 $ 750,000 Less: Accumulated amortization & impairment (750,000 ) (393,750 ) Net distribution rights — 356,250 Mexican customer list 932,000 932,000 Less: Accumulated amortization (237,360 ) (223,162 ) Net customer list 694,640 708,838 Goodwill 36,285 36,285 $ 730,925 $ 1,101,373
Schedule of Future Amortization Expense for Intangible Assets	Asset: 2015 2016 2017 2018 2019 Total Mexican customer list $ 51,750 $ 103,500 $ 103,500 $ 103,500 $ 332,390 $ 694,640 $ 51,750 $ 103,500 $ 103,500 $ 103,500 $ 332,390 $ 694,640

ACCRUED EXPENSES (Tables)

ACCRUED EXPENSES (Tables)	6 Months Ended
	Jun. 30, 2015
Payables and Accruals [Abstract]
Schedule of Accrued Expenses	2015 2014 Accounting $ 10,000 $ — Advertising — 35,000 Commission 270,644 367,063 Director Services 1,510 15,000 Facilities 22,660 10,300 Fees/Interest 33,833 7,000 Investor Relations 78,750 265,024 Materials 120,412 102,958 Stock awards 50,988 50,000 Personnel 81,293 108,819 Employee benefits 27,000 — Warehouse 41,008 55,948 $ 738,098 $ 1,017,112

OTHER CURRENT LIABILITIES (Tabl

OTHER CURRENT LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2015
Other Liabilities, Current [Abstract]
Schedule of Other Current Liabilities	2015 2014 Customer deposits $ 189,170 $ 141,998 Credit cards 331,921 190,803 Marketing and promotional programs 111,000 227,681 VAT Taxes payable - Mexico 112,363 173,567 Current portion of long term debt 11,773 11,429 Vendor Note 25,174 25,174 Advance from Officer 4,000 26,360 Other operating liabilities 88,038 89,810 Payroll taxes 13,077 — $ 886,516 $ 886,822

DEBT FINANCING (Tables)

DEBT FINANCING (Tables)	6 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
Schedule of Long-Term Debt	2015 2016 2017 Total Current Portion of Long Term Debt $ 5,799 $ 5,974 $ — $ 11,773 Long Term Debt — 6,154 12,869 19,023 $ 5,799 $ 12,128 $ 12,869 $ 30,796

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Operating Lease Payments	2015 2016 2017 2018 2019 Total Deerfield, FL (HQ/Production) $ 218,772 $ 444,672 $ 457,238 $ 470,298 $ 278,882 $ 1,869,862 Mexico City, Mexico (Sales) 7,200 — — — — 7,200 $ 225,972 $ 444,672 $ 457,238 $ 470,298 $ 278,882

SIGNIFICANT CUSTOMERS (Tables)

SIGNIFICANT CUSTOMERS (Tables)	6 Months Ended
	Jun. 30, 2015
SIGNIFICANT CUSTOMERS [Abstract]
Schedule of Sales to Significant Customers	Customer Sales Amount Percent Accounts Receivable Percent C $1,010,871 14% $133,090 5%

SIGNIFICANT VENDORS (Tables)

SIGNIFICANT VENDORS (Tables)	6 Months Ended
	Jun. 30, 2015
SIGNIFICANT VENDORS [Abstract]
Schedule of Significant Purchases from Vendors	Vendor Purchase Amount Percent Accounts Payable Percent C $387,903 21% $ 83,522 7% D $234,051 13% $137,735 11% Vendor Purchase Amount Percent Accounts Payable Percent C $567,814 21% $87,101 5%

GEOGRAPHIC REVENUE REPORTING (T

GEOGRAPHIC REVENUE REPORTING (Tables)	6 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
Schedule of Revenues by Geographic Area	2015 2014 Net Revenue: North America $ 2,221,799 $ 2,629,177 International 3,780,720 3,800,220 $ 6,002,519 $ 6,429,397 Furniture and Equipment, net: North America $ 90,423 $ 109,664 International 41,421 96,001 $ 131,844 $ 205,665

SUMMARY OF SIGNIFICANT ACCOUN35

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Accounting Policies [Abstract]
Provision for doubtful accounts receivable	$ 261,824		$ 268,329
Product return and advertising reserve	210,000		210,000
Advertising credits	60,000		$ 60,000
Contracted research and development expense	$ 75,324	$ 157,977
Antidilutive stock options and warrants	316,526	316,526

LIQUIDITY and GOING CONCERN (De

LIQUIDITY and GOING CONCERN (Details) - USD ($)	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014	Dec. 31, 2013
LIQUIDITY and GOING CONCERN [Abstract]
Cash	$ 979,111	$ 1,128,556	$ 773,055	$ 2,872,946
Accumulated deficit	11,208,593	$ 10,235,944	$ 10,169,032
Online sale revenue	$ 213,885

RESTATEMENT OF FINANCIAL STAT37

RESTATEMENT OF FINANCIAL STATEMENTS (Consolidated Balance Sheets) (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014	Dec. 31, 2013
Current Assets
Cash	$ 979,111	$ 1,128,556	$ 773,055	$ 2,872,946
Accounts receivable, net	1,952,839	1,678,411	2,097,171
Inventories, net	3,965,930	3,862,532	3,370,117
Prepaid expenses and other current assets	357,472	278,714	413,963
Total Current Assets	7,255,352	6,948,213	6,654,306
Furniture and Equipment, net	131,844	169,495	205,665
Intangible Assets, net	730,925	1,101,373	1,249,870
Other Assets	76,706	62,247	137,164
TOTAL ASSETS	8,194,827	8,281,328	8,247,005
Current Liabilities
Accounts payable	1,434,962	1,486,758	1,805,794
Accrued expenses	738,098	1,017,112	848,185
Obligation to issue common stock	350,000
Credit facility	250,000		228,887
Notes payable, current portion		350,000
Other current liabilities	886,516	886,822	863,418
Total Current Liabilities	3,659,576	3,740,692	3,746,284
Long Term Debt, net of current portion	19,023	24,997	30,795
TOTAL LIABILITIES	3,678,599	3,765,689	3,777,079
COMMITMENTS AND CONTINGENCIES
Shareholders' Equity
Common stock, $0.001 par value, 300 million shares authorized: 17,394,712 and 16,088,268 shares issued and outstanding at June 30, 2015 and 2014, respectively	17,395	16,202	16,088
Additional paid-in-capital	15,901,663	14,839,695	14,691,155
Stock subscription	(300,667)	(2,500)	(2,500)
Accumulated deficit	(11,208,593)	(10,235,944)	(10,169,032)
Accumulated comprehensive income	144,860	(63,384)	(27,355)
Total Shareholders' Equity	4,554,658	4,554,069	4,508,356
Non-Controlling Interest	(38,430)	(38,430)	(38,430)
Total Shareholders' Equity	4,516,228	4,515,639	4,469,926
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	8,194,827	8,281,328	8,247,005
Previously Reported [Member]
Current Assets
Cash	979,111	1,128,556	773,055	2,872,946
Accounts receivable, net	2,795,608		2,097,171
Inventories, net	3,955,359		3,524,537
Prepaid expenses and other current assets	357,472		413,963
Total Current Assets	8,087,550		6,808,726
Furniture and Equipment, net	168,757		205,665
Intangible Assets, net	1,049,675		1,249,870
Other Assets	102,706		163,164
TOTAL ASSETS	9,408,688		8,427,425
Current Liabilities
Accounts payable	1,226,283		1,603,722
Accrued expenses	660,110		848,185
Obligation to issue common stock	350,000
Credit facility	250,000		228,887
Notes payable, current portion
Other current liabilities	886,516		863,418
Total Current Liabilities	3,372,909		3,544,212
Long Term Debt, net of current portion	19,023		30,795
TOTAL LIABILITIES	3,391,932		3,575,007
Shareholders' Equity
Common stock, $0.001 par value, 300 million shares authorized: 17,394,712 and 16,088,268 shares issued and outstanding at June 30, 2015 and 2014, respectively	17,395		16,088
Additional paid-in-capital	15,901,663		14,691,155
Stock subscription	(300,667)		(2,500)
Accumulated deficit	(9,708,065)		(9,786,540)
Accumulated comprehensive income	144,860		(27,355)
Total Shareholders' Equity	6,055,186		4,890,848
Non-Controlling Interest	(38,430)		(38,430)
Total Shareholders' Equity	6,016,756		4,852,418
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	9,408,688		8,427,425
Adjustment [Member]
Current Assets
Cash
Accounts receivable, net	(842,769)
Inventories, net	10,571		(154,420)
Prepaid expenses and other current assets
Total Current Assets	(832,198)		(154,420)
Furniture and Equipment, net	(36,913)
Intangible Assets, net	(318,750)
Other Assets	(26,000)		(26,000)
TOTAL ASSETS	(1,213,861)		(180,420)
Current Liabilities
Accounts payable	208,679		202,072
Accrued expenses	77,988
Obligation to issue common stock
Credit facility
Notes payable, current portion
Other current liabilities
Total Current Liabilities	286,667		202,072
Long Term Debt, net of current portion
TOTAL LIABILITIES	286,667		202,072
Shareholders' Equity
Common stock, $0.001 par value, 300 million shares authorized: 17,394,712 and 16,088,268 shares issued and outstanding at June 30, 2015 and 2014, respectively
Additional paid-in-capital
Stock subscription
Accumulated deficit	(1,500,528)		(382,492)
Accumulated comprehensive income
Total Shareholders' Equity	(1,500,528)		(382,492)
Non-Controlling Interest
Total Shareholders' Equity	(1,500,528)		(382,492)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ (1,213,861)		$ (180,420)

RESTATEMENT OF FINANCIAL STAT38

RESTATEMENT OF FINANCIAL STATEMENTS (Condensed Consolidated Statements of Operations and Comprehensive Loss) (Details) - USD ($)	3 Months Ended		6 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Sep. 30, 2015
Net Revenue	$ 3,304,509	$ 3,744,434	$ 6,002,519	$ 6,429,397
Cost of Goods Sold	1,338,943	1,827,361	2,553,159	3,218,908
Gross Profit	1,965,566	1,917,073	3,449,360	3,210,489
Selling and marketing
Commissions and consulting	358,236	479,778	527,608	840,337
Marketing and promotion	151,652	110,643	392,522	347,757
Other selling and marketing expenses	394,378	646,147	774,414	1,018,496
Total selling and marketing	904,266	1,236,568	1,694,544	2,206,590
General and administrative
Salary and personnel costs	511,172	557,058	1,023,624	1,141,741
Professional fees and consulting costs	346,102	472,549	723,501	1,064,444
Other general and administrative expenses	271,301	428,929	711,633	592,965
Total general and administrative	1,128,575	1,458,536	2,458,758	2,799,150
Total operating costs and expenses	2,032,841	2,695,104	4,153,302	5,005,740
Operating Income (Loss)	(67,275)	(778,031)	(703,942)	(1,795,251)
Other Income (Expense)
Interest expense	(24,957)	(22,443)	(40,812)	(49,988)
Impairment of intangible asset			(337,500)
Other	(10,870)	10,036	109,605	8,950
Total other income (expense)	(35,827)	(12,407)	(268,707)	(41,038)
Net Loss before income taxes	(103,102)	(790,438)	(972,649)	(1,836,289)
Income Tax (Benefit) Expense		31,527		31,527
Net Loss	(103,102)	(821,965)	(972,649)	(1,867,816)
Net Loss Attributable to Non-Controlling Interest		(1,833)		(6,204)
Net Loss Attributable to Common Shareholders	$ (103,102)	$ (820,132)	$ (972,649)	$ (1,861,612)
Basic and Diluted Earnings per Share:
Weighted average shares outstanding	17,043,601	16,085,112	16,652,204	16,007,119
Net Loss per share	$ (0.01)	$ (0.05)	$ (0.06)	$ (0.12)
Other Comprehensive Income:
Foreign currency translation adjustment	$ (12,390)	$ (40,439)	$ 208,244	$ (14,893)
Comprehensive loss	(115,492)	(860,571)	(764,405)	(1,876,505)
Previously Reported [Member]
Net Revenue	3,659,548	3,744,434	6,463,468	6,429,397
Cost of Goods Sold	1,595,181	1,802,898	2,733,941	3,005,416
Gross Profit	2,064,367	1,941,536	3,729,527	3,423,981
Selling and marketing
Commissions and consulting	358,236	479,778	527,608	840,337
Marketing and promotion	151,652	110,643	392,522	347,757
Other selling and marketing expenses	380,878	603,817	747,414	976,166
Total selling and marketing	890,766	1,194,238	1,667,544	2,164,260
General and administrative
Salary and personnel costs	511,172	557,058	1,023,624	1,141,741
Professional fees and consulting costs	346,102	472,549	722,513	1,057,774
Other general and administrative expenses	290,051	308,929	479,329	472,965
Total general and administrative	1,147,325	1,338,536	2,225,466	2,672,480
Total operating costs and expenses	2,038,091	2,532,774	3,893,010	4,836,740
Operating Income (Loss)	26,276	(591,238)	(163,483)	(1,412,759)
Other Income (Expense)
Interest expense	(24,957)	(22,443)	(40,812)	(49,988)
Impairment of intangible asset
Other	(10,870)	10,036	109,605	8,950
Total other income (expense)	(35,827)	(12,407)	68,793	(41,038)
Net Loss before income taxes	(9,551)	(603,645)	(94,690)	(1,453,797)
Income Tax (Benefit) Expense		31,527		31,527
Net Loss	(9,551)	(635,172)	(94,690)	(1,485,324)
Net Loss Attributable to Non-Controlling Interest		(1,833)		(6,204)
Net Loss Attributable to Common Shareholders	$ (9,551)	$ (633,339)	$ (94,690)	$ (1,479,120)
Basic and Diluted Earnings per Share:
Weighted average shares outstanding	17,043,601	16,085,112	16,652,204	16,007,119
Net Loss per share	$ 0	$ (0.04)	$ (0.01)	$ (0.09)
Other Comprehensive Income:
Foreign currency translation adjustment	$ (12,390)	$ (40,439)	$ 208,244	$ (14,893)
Comprehensive loss	(21,941)	(673,778)	113,554	(1,494,013)
Adjustment [Member]
Net Revenue	(355,039)		(460,949)
Cost of Goods Sold	(256,238)	24,463	(180,782)	213,492
Gross Profit	(98,801)	(24,463)	(280,167)	(213,492)
Selling and marketing
Commissions and consulting
Marketing and promotion
Other selling and marketing expenses	13,500	42,330	27,000	42,330
Total selling and marketing	13,500	42,330	27,000	42,330
General and administrative
Salary and personnel costs
Professional fees and consulting costs			988	6,670
Other general and administrative expenses	(18,750)	120,000	232,304	120,000
Total general and administrative	(18,750)	120,000	233,292	126,670
Total operating costs and expenses	(5,250)	162,330	260,292	169,000
Operating Income (Loss)	(93,551)	(186,793)	(540,459)	(382,492)
Other Income (Expense)
Interest expense
Impairment of intangible asset
Other
Total other income (expense)			(337,500)
Net Loss before income taxes	(93,551)	(186,793)	(877,959)	(382,492)
Income Tax (Benefit) Expense
Net Loss	(93,551)	(186,793)	(877,959)	(382,492)	$ (1,125,792)
Net Loss Attributable to Non-Controlling Interest
Net Loss Attributable to Common Shareholders	$ (93,551)	$ (186,793)	$ (877,959)	$ (382,492)
Basic and Diluted Earnings per Share:
Weighted average shares outstanding
Net Loss per share	$ (0.04)	$ (0.01)	$ (0.04)	$ (0.03)
Other Comprehensive Income:
Foreign currency translation adjustment
Comprehensive loss	$ (93,551)	$ (186,793)	$ (877,959)	$ (382,492)

RESTATEMENT OF FINANCIAL STAT39

RESTATEMENT OF FINANCIAL STATEMENTS (Condensed Consolidated Statements of Cash Flows) (Details) - USD ($)	3 Months Ended		6 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Sep. 30, 2015
Cash Flows from Operating Activities:
Net loss	$ (103,102)	$ (821,965)	$ (972,649)	$ (1,867,816)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			83,354	144,909
Loss on disposal of fixed assets			337,500	2,468
Provision (Recovery) of bad debts			(6,656)	(142,585)
(Recovery) for obsolete inventory			(15,910)	(168,917)
Stock issued for services			136,760	31,520
Changes in operating assets and liabilities:
Accounts receivable, net			(267,772)	274,742
Inventories, net			(87,488)	(498,621)
Prepaid expenses and other current assets			249,242	232,648
Accounts payable			(51,796)	(424,929)
Accrued expenses			(198,780)	(44,862)
Other current liabilities			(305)	577,137
Net cash used in operating activities			(794,500)	(1,858,306)
Cash Flows from Investing Activities:
Purchase of furniture and equipment			(457)	(50,359)
Purchase of injection molds			(18,459)
Proceeds from disposal of fixed asset			(212)
Net cash used in investing activities			(19,128)	(50,359)
Cash Flows from Financing Activities:
Repayments of credit facility				(353,496)
Proceeds from credit facility			250,000
Repayment of loans and notes			(5,974)	(5,630)
Proceeds from stock subscription			220,000
Proceeds from sale of common stock				192,000
Less issuance cost				(10,000)
Net cash provided (used) by financing activities			464,026	(177,126)
Effect of exchange rate changes on cash			200,157	(14,100)
Decrease in Cash			(149,445)	(2,099,891)
Cash, Beginning of Period			1,128,556	2,872,946	$ 1,128,556
Cash, End of Period	979,111	773,055	979,111	773,055
Previously Reported [Member]
Cash Flows from Operating Activities:
Net loss	(9,551)	(635,172)	(94,690)	(1,485,324)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			102,104	144,909
Loss on disposal of fixed assets				2,468
Provision (Recovery) of bad debts			(6,656)	(142,585)
(Recovery) for obsolete inventory			(15,910)	(168,917)
Stock issued for services			136,760	31,520
Changes in operating assets and liabilities:
Accounts receivable, net			(979,774)	274,742
Inventories, net			45,079	(653,041)
Prepaid expenses and other current assets			(51,425)	232,648
Accounts payable			(3,583)	(627,001)
Accrued expenses			73,900	(44,862)
Other current liabilities			(305)	577,137
Net cash used in operating activities			(794,500)	(1,858,306)
Cash Flows from Investing Activities:
Purchase of furniture and equipment			(457)	(50,359)
Purchase of injection molds			(212)
Proceeds from disposal of fixed asset			(18,459)
Net cash used in investing activities			(19,128)	(50,359)
Cash Flows from Financing Activities:
Repayments of credit facility				(353,496)
Proceeds from credit facility			250,000
Repayment of loans and notes			(5,974)	(5,630)
Proceeds from stock subscription			220,000
Proceeds from sale of common stock				192,000
Less issuance cost				(10,000)
Net cash provided (used) by financing activities			464,026	(177,126)
Effect of exchange rate changes on cash			200,157	(14,100)
Decrease in Cash			(149,445)	(2,099,891)
Cash, Beginning of Period			1,128,556	2,872,946	1,128,556
Cash, End of Period	979,111	773,055	979,111	773,055
Adjustment [Member]
Cash Flows from Operating Activities:
Net loss	(93,551)	(186,793)	(877,959)	(382,492)	(1,125,792)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			(18,750)
Loss on disposal of fixed assets			337,500
Provision (Recovery) of bad debts
(Recovery) for obsolete inventory
Stock issued for services
Changes in operating assets and liabilities:
Accounts receivable, net			712,002
Inventories, net			(132,567)	154,420
Prepaid expenses and other current assets			300,667
Accounts payable			(1)	202,072
Accrued expenses			(272,680)
Other current liabilities
Net cash used in operating activities			48,212
Cash Flows from Investing Activities:
Purchase of furniture and equipment
Purchase of injection molds
Proceeds from disposal of fixed asset
Net cash used in investing activities
Cash Flows from Financing Activities:
Repayments of credit facility
Proceeds from credit facility
Repayment of loans and notes
Proceeds from stock subscription
Proceeds from sale of common stock
Less issuance cost
Net cash provided (used) 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 ($)	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Inventory Disclosure [Abstract]
Inventory in transit	$ 132,181	$ 231,623
Bulk product and raw materials	2,340,809	2,502,402
Work in process	418,265	213,832
Merchandise inventory	1,446,023	1,301,933
Less: Allowance	(371,348)	(387,258)
Inventory, net, total	$ 3,965,930	$ 3,862,532	$ 3,370,117

INTANGIBLE ASSETS (Schedule of

INTANGIBLE ASSETS (Schedule of Intangible Assets) (Details) - USD ($)	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 36,285	$ 36,285
Total intangible assets	$ 730,925	1,101,373
Weighted average remaining amortization period	5 years 11 months 8 days
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 and impairment	(237,360)	(223,162)
Finite-lived intangible assets, net, total	694,640	708,838
Distribution Rights [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, gross	750,000	750,000
Finite-lived intangible asset, accumulated amortization and impairment	(750,000)	(393,750)
Finite-lived intangible assets, net, total		$ 356,250

INTANGIBLE ASSETS (Schedule o42

INTANGIBLE ASSETS (Schedule of Future Amortization Expense for Intangible Assets) (Details)	Jun. 30, 2015USD ($)
Finite-Lived Intangible Assets [Line Items]
2,015	$ 51,750
2,016	103,500
2,017	103,500
2,018	103,500
Beyond	332,390
Amortized cost of assets	694,640
Mexican Customer List [Member]
Finite-Lived Intangible Assets [Line Items]
2,015	51,750
2,016	103,500
2,017	103,500
2,018	103,500
Beyond	332,390
Amortized cost of assets	$ 694,640

ACCRUED EXPENSES (Details)

ACCRUED EXPENSES (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Accrued expenses:
Accounting	$ 10,000
Advertising		35,000
Commission	270,644	367,063
Director Services	1,510	15,000
Facilities	22,660	10,300
Fees/Interest	33,833	7,000
Investor Relations	78,750	265,024
Materials	120,412	102,958
Stock awards	50,988	50,000
Personnel	81,293	108,819
Employee benefits	27,000
Warehouse	41,008	55,948
Total Accrued expenses	$ 738,098	$ 1,017,112

OBLIGATION TO ISSUE COMMON ST44

OBLIGATION TO ISSUE COMMON STOCK (Details)	Jun. 02, 2015shares	Jun. 30, 2015USD ($)	May 31, 2015USD ($)	Dec. 10, 2012USD ($)
Short-term Debt [Line Items]
Debt instrument, face amount				$ 53,900
Secured short term note [Member]
Short-term Debt [Line Items]
Debt instrument, face amount		$ 250,000	$ 350,000
Maturity date		May 28, 2015
Number of common shares issuable upon debt conversion | shares	199,202

OTHER CURRENT LIABILITIES (Deta

OTHER CURRENT LIABILITIES (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Other Liabilities, Current [Abstract]
Customer deposits	$ 189,170	$ 141,998
Credit cards	331,921	190,803
Marketing and promotional programs	111,000	227,681
VAT Taxes payable - Mexico	112,363	173,567
Current portion of long term debt	11,773	11,429
Vendor Note	25,174	25,174
Advance from Officer	4,000	26,360
Other operating liabilities	88,038	89,810
Payroll taxes	13,077
Other current liabilities	$ 886,516	$ 886,822	$ 863,418

DEBT FINANCING (Long Term Debt)

DEBT FINANCING (Long Term Debt) (Details) - USD ($)	6 Months Ended
	Jun. 30, 2015	Dec. 10, 2012
Debt instrument, face amount		$ 53,900
Equipment Loan Agreement [Member]
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)	Jun. 30, 2015USD ($)
Debt Instrument [Line Items]
2,015	$ 5,799
2,016	12,128
2,017	12,869
Total long-term debt	30,796
Short-term Debt [Member]
Debt Instrument [Line Items]
2,015	5,799
2,016	5,974
2,017
Total long-term debt	11,773
Long-term Debt [Member]
Debt Instrument [Line Items]
2,015
2,016	6,154
2,017	12,869
Total long-term debt	$ 19,023

DEBT FINANCING (Note Payable) (

DEBT FINANCING (Note Payable) (Details) - USD ($)	6 Months Ended
	Jun. 30, 2015	May 31, 2015	Dec. 10, 2012
Short-term Debt [Line Items]
Debt instrument, face amount			$ 53,900
Secured short term note [Member]
Short-term Debt [Line Items]
Debt instrument, face amount	$ 250,000	$ 350,000
Maturity date	May 28, 2015
Interest rate (as a percent)	1.00%
Warrants available to purchase, shares	30,000
Warrant exercise price	$ 0.85
Expiration period of warrants	2 years
Aggregate fair value of warrants	$ 16,500

COMMITMENTS AND CONTINGENCIES49

COMMITMENTS AND CONTINGENCIES (Leases for Office and Production Facilities) (Details)	6 Months Ended		12 Months Ended
	Jun. 30, 2015USD ($)ft²	Jun. 30, 2014USD ($)	Dec. 31, 2014
Operating Leased Assets [Line Items]
Rent expenses	$ 213,828	$ 171,720
2,015	225,972
2,016	444,672
2,017	457,238
2,018	470,298
2,019	278,882
Total	1,877,062
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	$ 218,772
2,016	444,672
2,017	457,238
2,018	470,298
2,019	278,882
Total	1,869,862
Mexico City Mexico Sales [Member]
Operating Leased Assets [Line Items]
Monthly rent payment	$ 1,408
Lease expiration period	Jul. 1, 2015
2,015	$ 7,200
2,016
2,017
2,018
2,019
Total	$ 7,200
Mexico City Mexico Sales [Member] | Office Building [Member]
Operating Leased Assets [Line Items]
Area of real estate space | ft²	246
Mexico City Mexico Sales [Member] | Warehouse [Member]
Operating Leased Assets [Line Items]
Area of real estate space | ft²	1,230
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

COMMITMENTS AND CONTINGENCIES50

COMMITMENTS AND CONTINGENCIES (Pending and Threatened Litigation and Purchase Commitments) (Details) - USD ($)	1 Months Ended		6 Months Ended	12 Months Ended
	Mar. 31, 2014	Jun. 30, 2011	Jun. 30, 2015	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%
Purchase orders outstanding			$ 469,539
Fees required to pay by company if contract terminated			$ 2,000,000

EQUITY (Common Stock) (Details)

EQUITY (Common Stock) (Details) - USD ($)	3 Months Ended
	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Jan. 31, 2016
Stockholders Equity Note [Line Items]
Subscriptions sold, shares not issued			$ 220,000
Subscriptions sold, shares not issued, shares			440,000
Subsequent Event [Member]
Stockholders Equity Note [Line Items]
Subscriptions sold, shares not issued, shares				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
Distributors [Member]
Stockholders Equity Note [Line Items]
Stock issued as compensation for service			32,500
Issuance of common stock for services			$ 27,000
Investor Relations Firm [Member]
Stockholders Equity Note [Line Items]
Stock issued as compensation for service		15,500	57,000
Issuance of common stock for services		$ 28,060	$ 43,500
Five Employees [Member]
Stockholders Equity Note [Line Items]
Stock issued as compensation for service		412,154
Issuance of common stock for services		$ 380,902
Consultant [Member]
Stockholders Equity Note [Line Items]
Stock issued as compensation for service		200,000
Issuance of common stock for services deliverable ratably over the upcoming year		$ 328,000
Investors [Member]
Stockholders Equity Note [Line Items]
Stock issued as compensation for service		440,000
Subscriptions sold, shares not issued		$ 2,500
Shares retured to treasury		6,000
Director [Member]
Stockholders Equity Note [Line Items]
Stock issued as compensation for service		5,000
Issuance of common stock for services		$ 8,200
Two Employees [Member] | Subsequent Event [Member]
Stockholders Equity Note [Line Items]
Stock issued as compensation for service	70,000
Issuance of common stock for services	$ 190,100

SIGNIFICANT CUSTOMERS (Details)

SIGNIFICANT CUSTOMERS (Details) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Concentration Risk [Line Items]
Accounts Receivable	$ 1,952,839	$ 2,097,171	$ 1,678,411
Customer Three Concentration Risk [Member] | Sales Revenue, Goods, Net [Member]
Concentration Risk [Line Items]
Sales Amount	$ 1,010,871
Concentration risk percentage	14.00%
Customer Three Concentration Risk [Member] | Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration risk percentage	5.00%
Accounts Receivable	$ 133,090
Supplier Three Concentration Risk [Member] | Concentration Risk Benchmark Purchase Amount [Member]
Concentration Risk [Line Items]
Concentration risk percentage	21.00%	21.00%
Supplier Three Concentration Risk [Member] | Concentration Risk Benchmark Accounts Payable [Member]
Concentration Risk [Line Items]
Concentration risk percentage	7.00%	5.00%
Supplier Four Concentration Risk [Member] | Concentration Risk Benchmark Purchase Amount [Member]
Concentration Risk [Line Items]
Concentration risk percentage	13.00%
Supplier Four Concentration Risk [Member] | Concentration Risk Benchmark Accounts Payable [Member]
Concentration Risk [Line Items]
Concentration risk percentage	11.00%
Polaris NR09 [Member] | Sales Revenue, Net [Member]
Concentration Risk [Line Items]
Concentration risk percentage	6.00%
Revita Revita Cor [Member] | Sales Revenue, Net [Member]
Concentration Risk [Line Items]
Concentration risk percentage	39.00%
Spectral [Member] | Sales Revenue, Net [Member]
Concentration Risk [Line Items]
Concentration risk percentage	9.00%
Top Ten Customers [Member] | Sales Revenue, Net [Member]
Concentration Risk [Line Items]
Concentration risk percentage	47.00%	42.00%

SIGNIFICANT VENDORS (Details)

SIGNIFICANT VENDORS (Details) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Concentration Risk [Line Items]
Accounts payable	$ 1,434,962	$ 1,805,794	$ 1,486,758
Supplier Three Concentration Risk [Member] | Concentration Risk Benchmark Purchase Amount [Member]
Concentration Risk [Line Items]
Purchase Amount	$ 387,903	$ 567,814
Concentration risk percentage	21.00%	21.00%
Supplier Three Concentration Risk [Member] | Concentration Risk Benchmark Accounts Payable [Member]
Concentration Risk [Line Items]
Accounts payable	$ 83,522	$ 87,101
Concentration risk percentage	7.00%	5.00%
Supplier Four Concentration Risk [Member] | Concentration Risk Benchmark Purchase Amount [Member]
Concentration Risk [Line Items]
Purchase Amount	$ 234,051
Concentration risk percentage	13.00%
Supplier Four Concentration Risk [Member] | Concentration Risk Benchmark Accounts Payable [Member]
Concentration Risk [Line Items]
Accounts payable	$ 137,735
Concentration risk percentage	11.00%
Polaris NR09 [Member] | Sales Revenue, Net [Member]
Concentration Risk [Line Items]
Concentration risk percentage	6.00%
Customer Three Concentration Risk [Member] | Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration risk percentage	5.00%
Customer Three Concentration Risk [Member] | Sales Revenue, Goods, Net [Member]
Concentration Risk [Line Items]
Concentration risk percentage	14.00%
Revita Revita Cor [Member] | Sales Revenue, Net [Member]
Concentration Risk [Line Items]
Concentration risk percentage	39.00%
Spectral [Member] | Sales Revenue, Net [Member]
Concentration Risk [Line Items]
Concentration risk percentage	9.00%
Top Ten Customers [Member] | Sales Revenue, Net [Member]
Concentration Risk [Line Items]
Concentration risk percentage	47.00%	42.00%

GEOGRAPHIC REVENUE REPORTING (D

GEOGRAPHIC REVENUE REPORTING (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Segment Reporting Information [Line Items]
Net revenue	$ 3,304,509	$ 3,744,434	$ 6,002,519	$ 6,429,397
Furniture and Equipment, net	131,844	205,665	131,844	205,665	$ 169,495
International [Member]
Segment Reporting Information [Line Items]
Net revenue			3,780,720	3,800,220
Furniture and Equipment, net	41,421	96,001	41,421	96,001
North America [Member]
Segment Reporting Information [Line Items]
Net revenue			2,221,799	2,629,177
Furniture and Equipment, net	$ 90,423	$ 109,664	$ 90,423	$ 109,664

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Consultant [Member]
Related Party Transaction [Line Items]
Related party receivables	$ 58,732	$ 2,700
Related party payables	0	0
Father of Chief Executive Officer [Member]
Related Party Transaction [Line Items]
Expense incurred with related party	51,617	51,617
Sister of Chief Executive Officer [Member]
Related Party Transaction [Line Items]
Expense incurred with related party	27,036	0
Finished Product Purchased and Resold [Member] | Consultant [Member]
Related Party Transaction [Line Items]
Amount received	64,003	61,302
IR related expenses and services [Member] | Consultant [Member]
Related Party Transaction [Line Items]
Expense incurred with related party	43,700	142,814
Purchase Of Materials Needed For Products For Export [Member] | Consultant [Member]
Related Party Transaction [Line Items]
Expense incurred with related party	42,475	16,500
Outsourced COO services [Member] | Consultant [Member]
Related Party Transaction [Line Items]
Expense incurred with related party	$ 95,000	$ 0

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($)

May 27, 2016

May 02, 2016

Dec. 16, 2013

Sep. 30, 2015

Jun. 30, 2015

Jun. 30, 2014

Apr. 30, 2016

Jun. 30, 2015

Jun. 30, 2014

Sep. 30, 2015

Dec. 31, 2015

Dec. 31, 2014

Jan. 31, 2016

Mar. 31, 2015

Dec. 31, 2013

Dec. 10, 2012

Subsequent Event [Line Items]

Proceeds from sale of stock subscription

$ 220,000

Subscriptions sold, shares not issued, shares

440,000

Debt instrument, face amount

$ 53,900

Increased net loss due to adjustment

$ 103,102

$ 821,965

972,649

1,867,816

Personal expenses paid for Daniel Khesin

$ 40,000

$ 76,000

Merchandise sold to barter company

$ 956,176

Shares in stock purchase agreement

440,000

Adjustment [Member]

Subsequent Event [Line Items]

Proceeds from sale of stock subscription

Increased net loss due to adjustment

$ 93,551

$ 186,793

$ 877,959

$ 382,492

$ 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]

Shares agreed to be issued under distribution agreement

500,000

Subscriptions sold, shares not issued, shares

605,000

Merchandise sold to barter company

$ 4,566,717

Stock purchase agreement amount

$ 1,996,500

Shares in stock purchase agreement

605,000

Offset of subscription receivable against additional paid in capital

$ 1,196,500

Subsequent Event [Member] | Two Employees [Member]

Subsequent Event [Line Items]

Issuance of common stock for services, shares

70,000

Issuance of common stock for services

$ 190,100

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