Biospecifics Technologies (BSTC) 10-K 16 Mar 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Mar. 14, 2017	Jun. 30, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	BIOSPECIFICS TECHNOLOGIES CORP
Entity Central Index Key	875,622
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		7,162,741
Entity Public Float			$ 214
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2016

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 4,763,364	$ 5,137,875
Short term investments	44,254,862	28,347,542
Accounts receivable	3,810,792	2,547,920
Income tax receivable	494,711	916,843
Deferred royalty buy-down, net	1,451,893	1,017,981
Prepaid expenses and other current assets	624,345	383,810
Total current assets	55,399,967	38,351,971
Long-term investments	3,771,380	3,596,541
Deferred royalty buy-down - long term	1,976,456	2,851,423
Deferred tax assets, net	3,290,122	622,972
Patent costs, net	258,355	275,206
Total assets	64,696,280	45,698,113
Current liabilities:
Accounts payable and accrued expenses	738,649	611,009
Deferred revenue	1,179,848	149,378
Accrued liabilities of discontinued operations	78,138	78,138
Total current liabilities	1,996,635	838,525
Long-term deferred revenue	6,417,702	49,379
Commitments and contingencies (Note 10)
Stockholders' equity:
Series A Preferred stock, $.50 par value, 700,000 shares authorized; none outstanding	0	0
Common stock, $.001 par value; 10,000,000 shares authorized; 7,555,167 and 7,290,167 shares issued, 7,156,281 and 6,918,579 outstanding at December 31, 2016 and 2015, respectively	7,555	7,290
Additional paid-in capital	32,945,240	31,797,418
Retained earnings	30,610,849	19,238,610
Treasury stock, 398,886 and 371,588 shares at cost as of December 31, 2016 and 2015	(7,281,701)	(6,233,109)
Total stockholders' equity	56,281,943	44,810,209
Total liabilities and stockholders' equity	$ 64,696,280	$ 45,698,113

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2016	Dec. 31, 2015
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	10,000,000	10,000,000
Common stock, issued (in shares)	7,555,167	7,290,167
Common stock, outstanding (in shares)	7,156,281	6,918,579
Treasury stock, shares (in shares)	398,886	371,588
Series A Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 0.50	$ 0.50
Preferred stock, outstanding (in shares)	0	0
Preferred stock, authorized (in shares)	700,000	700,000

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenues:
Royalties	$ 25,431,012	$ 20,800,757	$ 12,985,370
Licensing revenue	819,943	1,949,378	1,059,254
Total revenues	26,250,955	22,750,135	14,044,624
Costs and expenses:
Research and development	1,327,923	1,034,288	1,263,512
General and administrative	7,896,616	7,272,532	5,814,185
Total costs and expenses	9,224,539	8,306,820	7,077,697
Operating income	17,026,416	14,443,315	6,966,927
Other income:
Interest income	295,783	92,926	32,158
Other	52,805	14,719	33,582
Total other income	348,588	107,645	65,740
Income before income tax	17,375,004	14,550,960	7,032,667
Income tax provision	(6,002,765)	(4,933,328)	(2,386,707)
Net income	$ 11,372,239	$ 9,617,632	$ 4,645,960
Earnings per common share:
Basic (in dollars per share)	$ 1.61	$ 1.41	$ 0.72
Diluted (in dollars per share)	$ 1.56	$ 1.32	$ 0.66
Shares used in calculation of net income per common share:
Basic (in shares)	7,061,404	6,827,355	6,477,457
Diluted (in shares)	7,283,262	7,272,989	7,079,570

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($)	Common Stock [Member]	Additional Paid in Capital [Member]	Retained Earning [Member]	Treasury Stock [Member]	Total
Balances at Dec. 31, 2013	$ 6,655	$ 20,951,796	$ 4,975,018	$ (3,601,030)	$ 22,332,439
Balances (in shares) at Dec. 31, 2013	6,655,168
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon stock option exercise	$ 407	2,146,414	0	0	2,146,821
Issuance of common stock upon stock option exercise (in shares)	407,041
Stock compensation expense	$ 0	21,416	0	0	21,416
Repurchases of common stock	0	0	0	(829,613)	(829,613)
Excess tax benefits from share-based payment arrangements	0	1,939,832	0	0	1,939,832
Net income	0	0	4,645,960	0	4,645,960
Balances at Dec. 31, 2014	$ 7,062	25,059,458	9,620,978	(4,430,643)	30,256,855
Balances (in shares) at Dec. 31, 2014	7,062,209
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon stock option exercise	$ 228	2,823,755	0	0	2,823,983
Issuance of common stock upon stock option exercise (in shares)	227,958
Stock compensation expense	$ 0	105,782	0	0	105,782
Repurchases of common stock	0	0	0	(1,802,466)	(1,802,466)
Excess tax benefits from share-based payment arrangements	0	3,808,423	0	0	3,808,423
Net income	0	0	9,617,632	0	9,617,632
Balances at Dec. 31, 2015	$ 7,290	31,797,418	19,238,610	(6,233,109)	$ 44,810,209
Balances (in shares) at Dec. 31, 2015	7,290,167				6,918,579
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon stock option exercise	$ 265	711,135	0	0	$ 711,400
Issuance of common stock upon stock option exercise (in shares)	265,000
Stock compensation expense	$ 0	133,904	0	0	133,904
Repurchases of common stock	0	0	0	(1,048,592)	(1,048,592)
Excess tax benefits from share-based payment arrangements	0	302,783	0	0	302,783
Net income	0	0	11,372,239	0	11,372,239
Balances at Dec. 31, 2016	$ 7,555	$ 32,945,240	$ 30,610,849	$ (7,281,701)	$ 56,281,943
Balances (in shares) at Dec. 31, 2016	7,555,167				7,156,281

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net income	$ 11,372,239	$ 9,617,632	$ 4,645,960
Adjustments to reconcile net income to net cash provided in operating activities:
Amortization	1,691,539	933,009	247,097
Stock-based compensation expense	133,904	105,782	21,416
Deferred tax expense	(2,667,150)	455,799	429,005
Gain on the sale of fixed assets	0	0	(1,150)
Changes in operating assets and liabilities:
Accounts receivable	(1,262,872)	390,811	2,051,335
Income tax receivable	422,132	(263,727)	(397,408)
Prepaid expenses and other current assets	(240,535)	(124,647)	81,708
Patent costs	(23,341)	(25,934)	(198,952)
Accounts payable and accrued expenses	127,640	67,313	(90,580)
Deferred royalty buy-down	(600,000)	(600,000)	(600,000)
Deferred revenue	7,398,793	50,622	(59,255)
Net cash provided by operating activities from operations	16,352,349	10,606,660	6,129,176
Cash flows from investing activities:
Maturities of marketable securities	43,242,679	14,070,544	7,646,964
Purchases of marketable securities	(59,935,130)	(34,180,085)	(12,848,374)
Proceeds from sale of fixed assets	0	0	1,150
Net cash used in investing activities from operations	(16,692,451)	(20,109,541)	(5,200,260)
Cash flows from financing activities:
Proceeds from stock option exercises	711,400	2,823,983	2,146,821
Repurchases of common stock	(1,048,592)	(1,802,466)	(829,613)
Excess tax benefits from share-based payment arrangements	302,783	3,808,423	1,939,832
Net cash (used in) provided by financing activities from operations	(34,409)	4,829,940	3,257,040
(Decrease) increase in cash and cash equivalents	(374,511)	(4,672,941)	4,185,956
Cash and cash equivalents at beginning of year	5,137,875	9,810,816	5,624,860
Cash and cash equivalents at end of year	4,763,364	5,137,875	9,810,816
Cash paid during the period for:
Interest	0	0	0
Taxes	$ 7,945,000	$ 1,906,000	$ 415,279

ORGANIZATION AND DESCRIPTION OF

ORGANIZATION AND DESCRIPTION OF BUSINESS	12 Months Ended
	Dec. 31, 2016
ORGANIZATION AND DESCRIPTION OF BUSINESS [Abstract]
ORGANIZATION AND DESCRIPTION OF BUSINESS	1. ORGANIZATION AND DESCRIPTION OF BUSINESS We are a biopharmaceutical company involved in the development of an injectable collagenase clostridium histolyticum for multiple indications. We currently have a development and license agreement with Endo Global Ventures, a Bermuda unlimited liability company ( “ ” “ ” “ ” “ ” ® ® On August 31, 2011, we entered into the Second Amended and Restated Development and License Agreement (the “ ” “ ” On February 1, 2016, we entered into with Endo the First Amendment (the “First Amendment”) to the Second Amended and Restated Development and Licensing Agreement (the “Auxilium Agreement”), by and between us and Auxilium, now a wholly-owned subsidiary of Endo, to amend certain provisions of the Auxilium Agreement (as amended by the First Amendment, the “License Agreement”). The First Amendment was filed with the SEC on February 5, 2016 as Exhibit 10.1 to a Current Report on Form 8-K. The effective date of the First Amendment was January 1, 2016. Pursuant to the First Amendment, we and Endo mutually agreed that in exchange for a $8.25 million lump sum payment, we will not receive future additional mark-up on cost of goods sold for sales by non-affiliated sublicensees of Endo outside of the U.S.; provided, however, that Endo will still be required to pay a mark-up on cost of goods sold for sales made in the “Endo Territory,” which includes sales made in the U.S. and sales made in any other country where Endo sells the product directly or through affiliated sublicensees. We received this $8.25 million lump sum payment in February 2016 and began recognizing this income over time based on sales by non-affiliated sublicensees of Endo outside of the U.S. according to our revenue recognition policy in the second quarter of 2016. Additionally, we agreed that Endo may opt-in early to indications, prior to our submission of a clinical trial report, with our consent, such consent not to be unreasonably withheld. For early opt-ins, Endo will be required to make an opt-in payment of $0.5 million on a per indication basis. For regular opt-ins, following our submission of a clinical trial report, Endo will be required to make an opt-in payment of $0.75 million on a per indication basis. The two marketed indications involving our injectable collagenase are Dupuytren ’ ’ Endo is currently selling XIAFLEX in the U.S. for the treatment of Dupuytren ’ ’ “ ” ’ ’ ’ ’ “ ” ’ ’ ’ “ ” ’ ’ ’

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiary, Advance Biofactures Corp., a New York corporation (“ABC-NY”). All intercompany balances and transactions have been eliminated. Reclassification Certain reclassifications have been made to prior year balances to conform to the current year’s presentation. Critical Accounting Policies, Estimates and Assumptions The preparation of consolidated financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) requires the use of management’s estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The Company makes certain assumptions and estimates for its deferred tax assets and deferred royalty buy-down. For further details see footnote “ Provision for Income Taxes, Third Party Royalties and Royalty Buy-Down”. Cash, Cash Equivalents and Investments Cash equivalents include only securities having a maturity of three months or less at the time of purchase. Investments are stated on an amortized cost basis. The Company limits its credit risk associated with cash, cash equivalents and investments by placing its investments with banks it believes are highly creditworthy and with highly rated money market funds, certificates of deposit, pre-refunded municipal bonds, municipal bonds and corporate bonds. All investments are classified as held to maturity. As of December 31, 2016 and 2015, the aggregate fair value of these investments was $48.0 million and $31.9 million, respectively. No unrealized gains or losses were recorded in the balance sheet in either period. Fair Value Measurements Management believes that the carrying amounts of the Company’s financial instruments, including cash, cash equivalents, held to maturity investments, accounts receivable, accounts payable and accrued expenses approximate fair value due to the short-term nature of those instruments. As of December 31, 2016 and 2015, there were no recorded unrealized gains or losses on our investments as they are held to maturity. As of December 31, 2016, amortized cost basis of the investments approximate their fair value. The schedule of maturities at December 31, 2016 and 2015 are as follows: Maturities as of December 31, 2016 Maturities as of December 31, 2015 1 Year or Less Greater than 1 Year 1 Year or Less Greater than 1 Year Municipal bonds $ 6,967,954 $ 586,074 $ 6,461,216 $ 155,826 Corporate Bonds 30,418,120 2,936,287 9,882,285 1,597,715 Certificates of deposit 6,868,788 249,019 12,004,041 1,843,000 Total $ 44,254,862 $ 3,771,380 $ 28,347,542 $ 3,596,541 Concentration of Credit Risk and Major Customers The Company maintains bank account balances, which, at times, may exceed insured limits. The Company has not experienced any losses with these accounts and believes that it is not exposed to any significant credit risk on cash. The Company maintains its investment in FDIC insured certificates of deposits with several banks, pre-refunded municipal bonds, municipal bonds and corporate bonds. At December 31, 2016 our accounts receivable balance was $3.8 million and was from one customer, Endo. At December 31, 2015 our accounts receivable balance was $2.5 million and was from one customer, Endo. The Company is currently dependent on one customer, Endo, who generates almost all its revenues. For the years ended December 31, 2016, 2015 and 2014, the licensing, sublicensing, milestones and royalty revenues under the License Agreement with Endo were approximately $26.3 million, $22.8 million and $14.0 million, respectively. Revenue Recognition We currently recognize revenues resulting from the licensing and sublicensing of the use of our technology and from services we sometimes perform in connection with the licensed technology under the guidance of Accounting Standards Codification 605, Revenue Recognition If we determine that separate elements exist in a revenue arrangement under ASC 605, we recognize revenue for delivered elements only when the fair values of undelivered elements are known, when the associated earnings process is complete, when payment is reasonably assured and, to the extent the milestone amount relates to our performance obligation, when our customer confirms that we have met the requirements under the terms of the agreement. Revenues, and their respective treatment for financial reporting purposes, are as follows: Royalty / Mark-Up on Cost of Goods Sold For those arrangements for which royalty and mark-up on cost of goods sold information becomes available and collectability is reasonably assured, we recognize revenue during the applicable period in which it is earned. For interim quarterly and year-end reporting purposes, when collectability is reasonably assured, but a reasonable estimate of royalty and mark-up on cost of goods sold cannot be made, the royalty and mark-up on cost of goods sold are generally recognized in the quarter that the applicable licensee provides the written report and related information to us. Under the License Agreement, we do not participate in the selling, marketing or manufacturing of products for which we receive royalties and a mark-up on the cost of goods sold. The royalty and mark-up on cost of goods sold will generally be recognized in the quarter that Endo provides the written reports and related information to us; that is, royalty and mark-up on cost of goods sold are generally recognized one quarter following the quarter in which the underlying sales by Endo occurred. Pursuant to the First Amendment with Endo, in exchange for a $8.25 million lump sum payment, we will not receive future additional mark-up on cost of goods sold for sales by non-affiliated sublicensees of Endo outside of the U.S.; provided, however, that Endo will still be required to pay a mark-up on cost of goods sold for sales made in the “Endo Territory,” which includes sales made in the U.S. and sales made in any other country where Endo sells the product directly or through affiliated sublicensees. We received this $8.25 million lump sum payment in February 2016. We classified this payment as deferred revenue in our balance sheet and Licensing Revenue We include revenue recognized from upfront licensing, sublicensing and milestone payments in “License Revenues” in our consolidated statements of income in this Report. Upfront License and Sublicensing Fees We generally recognize revenue from upfront licensing and sublicensing fees when the agreement is signed, we have completed the earnings process and we have no ongoing performance obligation with respect to the arrangement. Nonrefundable upfront technology license for product candidates for which we are providing continuing services related to product development are deferred and recognized as revenue over the development period. Milestones Milestones, in the form of additional license fees, typically represent nonrefundable payments to be received in conjunction with the achievement of a specific event identified in the contract, such as completion of specified development activities and/or regulatory submissions and/or approvals. We believe that a milestone represents the culmination of a distinct earnings process when it is not associated with ongoing research, development or other performance on our part. We recognize such milestones as revenue when they become due and collection is reasonably assured. When a milestone does not represent the culmination of a distinct earnings process, we recognize revenue in a manner similar to that of an upfront license fee. The timing and amount of revenue that we recognize from licenses of technology, either from upfront fees or milestones where we are providing continuing services related to product development, is primarily dependent upon our estimates of the development period. We define the development period as the point from which research activities commence up to regulatory approval of either our, or our partners’, submission assuming no further research is necessary. As product candidates move through the development process, it is necessary to revise these estimates to consider changes to the product development cycle, such as changes in the clinical development plan, regulatory requirements, or various other factors, many of which may be outside of our control. Should the FDA or other regulatory agencies require additional data or information, we would adjust our development period estimates accordingly. The impact on revenue of changes in our estimates and the timing thereof is recognized prospectively over the remaining estimated product development period. Treasury Stock The Company accounts for treasury stock under the cost method and includes treasury stock as a component of stockholders’ equity. For the year ended December 31, 2016, we repurchased 27,298 shares at an average price of $38.41 as compared to 40,001 shares at an average price of $45.06 in the 2015 period. In the 2014 period, we purchased 30,848 shares at an average price of $26.89. Receivables Trade accounts receivable are stated at the amount the Company expects to collect. We may maintain allowances for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. We consider the following factors when determining the collectability of specific customer accounts: customer credit-worthiness, past transaction history with the customer, current economic industry trends, and changes in customer payment terms. Our accounts receivable balance is typically due from Endo, our one large specialty pharmaceutical customer. Endo has historically paid timely and has been a financially stable organization. Due to the nature of the accounts receivable balance, we believe the risk of doubtful accounts is minimal. If the financial condition of our customer were to deteriorate, adversely affecting its ability to make payments, additional allowances would be required. We may provide for estimated uncollectible amounts through a charge to earnings and a credit to a valuation allowance. Balances that remain outstanding after we have used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable. At December 31, 2016 and 2015, our accounts receivable balance was $3.8 million and $2.5 million, respectively and was from one customer, Endo. Deferred Revenue Deferred revenue consists of the remaining $7.4 million related to the First Amendment with Endo of mark-up on cost of goods sold revenue for sales by non-affiliated sublicensees, approximately $53,000 related to nonrefundable upfront product license fees for product candidates for which we are providing continuing services related to product development and $100,000 related to a milestone payment withheld by Endo due to a foreign tax withholding which remains uncollected. Currently, the Company expects to recover the full amount. As of December 31, 2016 and 2015, deferred revenue was $7.6 million and $0.2 million, respectively. Reimbursable Third Party Development Costs We accrued patent expenses that are reimbursable by us under the License Agreement. We capitalize certain patent costs related to estimated third-party development costs that are reimbursable under the License Agreement. As of December 31, 2016 and 2015, Third Party Royalties We have entered into licensing and royalty agreements with third parties and agreed to pay certain royalties on net sales of products for specific indications. The royalty rates differ from agreement to agreement and, in certain cases, have been redacted with the permission of the SEC. No assumptions should be made that any disclosed royalty rate payable to a particular third party is the same or similar with respect to any royalty rate payable to any other third parties. We accrue third-party royalty expenses on net sales reported to us by Endo. Third-party royalty costs are generally expensed under general and administrative in the quarter that Endo provides the written reports and related information to us; that is, generally one quarter following the quarter in which the underlying sales by Endo occurred. For the years ended December 31, 2016, 2015 and 2014, third party royalty expenses was $1.6 million, $1.4 million and $0.8 million, respectively. Our third-party royalty expense under general and administrative expenses may increase if net sales by Endo and its partners for XIAFLEX and XIAPEX increase and potential new indications for XIAFLEX are approved. Royalty Buy-Down On March 31, 2012, we entered into an amendment to our existing agreement with Dr. Martin K. Gelbard, dated August 27, 2008, related to our future royalty obligations in connection with Peyronie’s disease. The amendment enables us to buy down a portion of our future royalty obligations in exchange for an initial cash payment of $1.5 million and five additional cash payments of $600,000, four of which have been paid as of December 31, 2016. We are currently making the payments to buy down the future royalty obligations, which royalty obligations terminate five years after first commercial sale. The Company amortizes long-term contracts with finite lives in a manner that reflects the pattern in which the economic benefits of the assets are consumed or otherwise used up. Dr. Gelbard’s agreement is amortized based on an income forecast method by estimating sales of XIAFLEX for Peyronie’s disease on an annual basis as measured by the proportion of the total estimated sales over the five year period. For the years ended December 31, 2016, 2015, and 2014, we amortized approximately $1.0 million, $0.6 million and $0.1 million related to this agreement, respectively. As of December 31, 2016 and 2015, the remaining capitalized balances were approximately $3.4 million and $3.9 million, respectively. We perform an evaluation of the recoverability of the carrying value to determine if facts and circumstances indicate that the carrying value of the assets may be impaired and if any adjustment is warranted. As of December 31, 2016, there was no indicator that an impairment existed. Research and Development Expenses R&D expenses Clinical Trial Expenses Our cost accruals for clinical trials are based on estimates of the services received and efforts expended pursuant to contracts with various clinical trial centers and clinical research organizations. In the normal course of business we contract with third parties to perform various clinical trial activities in the ongoing development of potential drugs. The financial terms of these agreements are subject to negotiation and vary from contract to contract and may result in uneven payment flows. Payments under the contracts depend on factors such as the achievement of certain events, the successful enrollment of patients, the completion of portions of the clinical trial, or similar conditions. The objective of our accrual policy is to match the recording of expenses in our financial statements to the actual cost of services received and efforts expended. As such, expenses related to each patient enrolled in a clinical trial are recognized ratably beginning upon entry into the trial and over the course of the patient’s continued participation in the trial. In the event of early termination of a clinical trial, we accrue an amount based on our estimate of the remaining non-cancelable obligations associated with the winding down of the clinical trial. Our estimates and assumptions could differ significantly from the amounts that may actually be incurred. Income Taxes Deferred tax assets and liabilities are recognized based on the expected future tax consequences, using current tax rates, of temporary differences between the financial statement carrying amounts and the income tax basis of assets and liabilities. A valuation allowance is applied against any net deferred tax asset if, based on the weighted available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. We use the asset and liability method of accounting for income taxes, as set forth in Accounting Standards Codification 740-10-25-2. Under this method, deferred income taxes, when required, are provided on the basis of the difference between the financial reporting and income tax basis of assets and liabilities at the statutory rates enacted for future periods. Income Statement Classification of Interest and Penalties The Company recognizes a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefit recognized in the consolidated financial statements from such position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon the ultimate settlement. As of December 31, 2016 and 2015, the Company has not recorded any unrecognized tax benefits. Stock-Based Compensation The Company has one stock-based compensation plan in effect which is described more fully in Note 10. Accounting Standards Codification 718, Compensation - Stock Compensation Under ASC 718, we estimate the fair value of our employee stock awards at the date of grant using the Black-Scholes option-pricing model, which requires the use of certain subjective assumptions. The most significant of these assumptions are our estimates of the expected volatility of the market price of our stock and the expected term of an award. When establishing an estimate of the expected term of an award, we consider the vesting period for the award, our recent historical experience of employee stock option exercises (including forfeitures) and the expected volatility. When there is uncertainty in the factors used to determine the expected term of an award, we use the simplified method. We account for stock options granted to persons other than employees or directors at fair value using the Black-Scholes option-pricing model in accordance with Accounting Standards Codification 505-50, Equity Based Payments to Non-Employees Patent Costs We amortize intangible assets with definite lives on a straight-line basis over their remaining estimated useful lives, ranging from 3 to 10 years, and review for impairment on an annual basis and when events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. As of December 31, 2016, there was no indicator that an impairment existed. For the year ended December 31, 2016, we capitalized patent costs related to patent prosecution and maintenance of approximately $23,000 based on the most current information reported to us by Endo. As of December 31, 2016, the Company’s estimated costs related to certain patent costs are approximately $25,000 which are reimbursable to Endo under the License Agreement. These patent costs are creditable against future royalty revenues. For each period presented below net patent costs consisted of: December 31, 2016 2015 Patents $ 720,601 $ 697,260 Accumulated Amortization (462,246 ) (422,054 ) Net Patent Costs $ 258,355 $ 275,206 The amortization expense for patents for the years ended December 31, 2016, 2015 and 2014 were $40,192, $45,758 and $119,920, respectively. The estimated aggregate amortization expense for each of the next five years is approximately as follows: 2017 $ 39,000 2018 39,000 2019 39,000 2020 27,000 2021 16,000 New Accounting Pronouncements The Financial Accounting Standards Board, or FASB , issued in May 2014, in August 2015, March 2016 and April 2016, Accounting Standards Updates No. 2014-09, No. 2015-14, No. 2016-08, and No. 2016-10 (the “ASUs”). These ASUs were issued in connection with revenue from contracts with customers. The new standard provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition. In August 2015, the FASB deferred the effective date of the guidance to reporting periods, including interim periods, beginning after December 15, 2017, and will be applied retrospectively. Early adoption is not permitted. We are currently evaluating the timing, method of adoption and the expected impact that the standard could have on our consolidated financial statements and related disclosures. We are currently evaluating the expected impact that the standard could have on our consolidated financial statements and related disclosures. In January 2016, the FASB issued new guidance on recognition and measurement of financial assets and financial liabilities. The new guidance will impact the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. All equity investments in unconsolidated entities (other than those accounted for under the equity method of accounting) will generally be measured at fair value with changes in fair value recognized through earnings. There will no longer be an available-for-sale classification (changes in fair value reported in other comprehensive income (loss) for equity securities with readily determinable fair values. In addition, the FASB clarified the need for a valuation allowance on deferred tax assets resulting from unrealized losses on available-for-sale debt securities. In general, the new guidance will require modified retrospective application to all outstanding instruments, with a cumulative effect adjustment recorded to opening retained earnings. This guidance will be effective for us on January 1, 2018. We are currently evaluating the expected impact that the standard could have on our consolidated financial statements and related disclosures however the Company does not classify any securities as available for sale. In February 2016, FASB issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the lease commencement date: a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers . The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off-balance sheet financing. Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (i.e., January 1, 2019, for a calendar year entity). Early application is permitted. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. In March 2016, FASB issued ASU No. 2016-09 related to stock-based compensation. The new guidance simplifies the accounting for stock-based compensation transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This update is effective in fiscal years, including interim periods, beginning after December 15, 2016, and early adoption is permitted. We are currently evaluating this guidance and the impact it will have on the consolidated financial statements and related disclosures. In May 2016, FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which is intended to not change the core principle of the guidance in Topic 606, but rather affect only the narrow aspects of Topic 606 by reducing the potential for diversity in practice at initial application and by reducing the cost and complexity of applying Topic 606 both at transition and on an ongoing basis. We are currently evaluating the expected impact that the standard could have on our consolidated financial statements and related disclosures. In June 2016, FASB issued ASU 2016-13, Financial Instruments - Credit Losses. The amendment revises the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in more timely recognition of losses on financial instruments, including, but not limited to, available for sale debt securities and accounts receivable. The Company is required to adopt this standard starting in the first quarter of fiscal year 2021. Early adoption is permitted. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements and related disclosures. In January 2017, FASB issued ASU 2017-01, . a business is an integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing a return in the form of dividends, lower costs, or other economic benefits directly to investors or other owners, members or participants. In order to be considered a business, the three elements of inputs, processes and outputs must be present. In a business acquisition, if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, the integrated set of assets and activities acquired is not considered a business. The amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. This amendment may impact the allocation of purchase price in future acquisitions depending on the structure of future acquisitions.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	12 Months Ended
	Dec. 31, 2016
FAIR VALUE MEASUREMENTS [Abstract]
FAIR VALUE MEASUREMENTS	3. FAIR VALUE MEASUREMENTS The authoritative literature for fair value measurements established a three-tier fair value hierarchy, which prioritizes the inputs in measuring fair value. These tiers are as follows: Level 1, defined as observable inputs such as quoted market prices in active markets; Level 2, defined as inputs other than the quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as significant unobservable inputs (entity developed assumptions) in which little or no market data exists. As of December 31, 2016, the Company held certain investments that are required to be measured at fair value on a recurring basis. The following tables present the Company’s fair value hierarchy for these financial assets as of December 31, 2016 and 2015: December 31, 2016 Type of Instrument Fair Value Level 1 Level 2 Level 3 Cash equivalents Institutional Money Market $ 2,290,331 $ 2,290,331 - - Investments Municipal Bonds 7,554,028 - 7,554,028 - Investments Corporate Bonds 33,354,407 - 33,354,407 - Investments Certificates of Deposit 7,117,807 7,117,807 - - December 31, 2015 Type of Instrument Fair Value Level 1 Level 2 Level 3 Cash equivalents Institutional Money Market $ 715,784 $ 715,784 - - Investments Municipal Bonds 6,617,042 - 6,617,042 - Investments Corporate Bonds 11,480,000 - 11,480,000 - Investments Certificates of Deposit 13,847,041 13,847,041 - -

EARNINGS PER SHARE

EARNINGS PER SHARE	12 Months Ended
	Dec. 31, 2016
EARNINGS PER SHARE [Abstract]
EARNINGS PER SHARE	4. EARNINGS PER SHARE Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period increased to include all additional common shares that would have been outstanding assuming potentially dilutive common shares, resulting from option exercises, had been issued and any proceeds thereof used to repurchase common stock at the average market price during the period. 2016 2015 2014 Net income for diluted computation $ 11,372,239 $ 9,617,632 $ 4,645,960 Weighted average shares: Basic 7,061,404 6,827,355 6,477,457 Effect of dilutive securities: Stock options 221,858 445,634 602,113 Diluted 7,283,262 7,272,989 7,079,570 Net income per share: Basic $ 1.61 $ 1.41 $ 0.72 Diluted $ 1.56 $ 1.32 $ 0.66 We exclude from earnings per share the weighted-average number of securities whose effect is anti-dilutive. Excluded from the calculation of earnings per share for each of the years ended December 31, 2016 2015 2014

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	12 Months Ended
	Dec. 31, 2016
PROPERTY, PLANT AND EQUIPMENT [Abstract]
PROPERTY, PLANT AND EQUIPMENT	5 PROPERTY, PLANT AND EQUIPMENT Property and equipment are stated at cost, less accumulated depreciation. Machinery and equipment, furniture and fixtures, and autos are depreciated on the straight-line basis over their estimated useful lives of 5 to 10 years. Leasehold improvements are amortized over the lesser of their estimated useful lives or the remaining life of the lease. As of December 31, 2016, 2015 and 2014, property and equipment were fully depreciated.

COMPREHENSIVE INCOME

COMPREHENSIVE INCOME	12 Months Ended
	Dec. 31, 2016
COMPREHENSIVE INCOME [Abstract]
COMPREHENSIVE INCOME	6. COMPREHENSIVE INCOME For the years ended 2016, 2015, 2014, we had no components of other comprehensive income other than net income itself.

ACCOUNTS PAYABLE AND ACCRUED LI

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	12 Months Ended
	Dec. 31, 2016
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES [Abstract]
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	7 ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued expenses consist of the following: December 31, 2016 2015 Trade accounts payable and accrued expenses $ 505,098 $ 372,367 Accrued legal and other professional fees 51,000 74,138 Accrued payroll and related costs 182,551 164,504 $ 738,649 $ 611,009

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2016
INCOME TAXES [Abstract]
INCOME TAXES	8 INCOME TAXES The provision for income taxes consists of the following: Year ended December 31, 2016 2015 2014 Current taxes: Federal $ 8,571,034 4,428,344 $ 1,939,830 State 98,881 49,185 17,872 Total current taxes 8,669,915 4,477,529 1,957,702 Deferred taxes: Federal (2,647,363 ) 452,761 425,127 State (19,787 ) 3,038 3,878 Total deferred taxes (2,667,150 ) 455,799 429,005 Total provision for income taxes $ 6,002,765 4,933,328 $ 2,386,707 The effective income tax rate of the Company differs from the federal statutory tax rate due to the following items: Year ended December 31, 2016 2015 2014 Statutory rate 35.00 % 34.00 % 34.00 % State income taxes, net of federal income tax benefit 0.26 % 0.25 % 0.17 % Stock-based compensation (0.50 )% (0.46 )% (0.40 )% Miscellaneous other, net (0.21 )% 0.11 % 0.17 % Effective tax rate 34.55 % 33.90 % 33.94 % The effective rate reconciliation includes the permanent differences and changes for windfalls and stock-based compensation, and net operating loss. Deferred income taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The components of deferred income tax assets and liabilities are as follows: December 31, 2016 2015 Deferred revenue $ 2,643,678 $ 33,823 Stock option based compensation 536,065 490,405 Other 110,379 98,744 Net deferred tax asset $ 3,290,122 $ 622,972 Stock option based compensation, recorded in the Company's consolidated financial statements, is non-deductible for tax purposes and increases the Company's effective tax rate. Deferred tax assets, including those associated with stock option based compensation, are reviewed and adjusted for apportionment and potential tax rates changes in various jurisdictions. During 2016, the Company has recorded $0.3 million of excess tax benefits resulting from the exercise of stock options which was recorded in additional paid in capital. As of December 31, 2016, the Company believes that there are no significant uncertain tax positions, and no amounts have been recorded for interest and penalties. The tax periods open to examination by the major taxing jurisdictions to which the Company is subject include fiscal years 2013 through 2016.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2016
STOCKHOLDERS' EQUITY [Abstract]
STOCKHOLDERS' EQUITY	9 STOCKHOLDERS’ EQUITY Stock Option Plan At December 31, 2016 Stock-Based Compensation ASC 718 requires that employee stock-based compensation costs to be recognized over the requisite service period, or the vesting period, in a manner similar to all other forms of compensation paid to employees. The allocation of employee stock-based compensation costs to each operating expense line are estimated based on specific employee headcount information at each grant date and estimated stock option forfeiture rates and revised, if necessary, in future periods if actual employee headcount information or forfeitures differ materially from those estimates. As a result, the amount of employee stock-based compensation costs we recognize in each operating expense category in future periods may differ significantly from what we have recorded in the current period. Stock-based compensation expense recognized under ASC 718 was as follows: December 31, 2016 2015 2014 Research and development $ - $ - $ - General and administrative 133,904 105,782 21,416 Total stock-based compensation expense $ 133,904 $ 105,782 $ 21,416 Stock Options No stock options were granted during the year ended December 31, 2016. During the year ended December 31, 2015, 30,000 stock options valued at approximately $450,000 were granted to two new members of the Board (Jennifer Chao and Jyrki Mattila, M.D., Ph.D.). 15,000 stock options valued at approximately $123,000 were granted to a new member of the Board (Max Link, Ph.D.) during the year ended December 31, 2014. At the time of Dr. Link’s sudden death on October 6, 2014, none of these options had vested and, in accordance with the applicable terms, they expired upon his death. The following table presents the assumptions used to estimate the fair values of the stock options granted in the periods presented: 2016 2015 2014 Risk-free interest rate - 1.41 % 1.66 % Expected volatility - 39 % 32 % Expected life (in years) - 6.25 5.00 Dividend yield - - - The summary of the stock options activity is as follows for year ended: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2015 759,958 $ 11.04 3.12 $ 23,483,235 Grants 30,000 37.64 10.00 - Exercised (227,958 ) 12.39 - 9,251,027 Forfeitures or expirations - - - - Outstanding at December 31, 2015 562,000 11.91 2.51 17,456,220 Grants - - - - Exercised (265,000 ) 2.68 - 9,392,150 Forfeitures or expirations - - - - Outstanding at December 31, 2016 297,000 20.14 3.10 10,561,380 Vested and expected to vest at December 31, 2016 297,000 20.14 3.10 10,561,380 Exercisable at December 31, 2016 250,750 $ 17.88 2.60 $ 9,483,518 The following table summarizes information relating to stock options by exercise price at December 31, 2016: Outstanding Shares Exercisable Shares Option Exercise Price Number of Shares Weighted Average Life (years) Weighted Average Exercise Price Number of Shares Weighted Average Option Price Weighted Average Life (years) 4.00 - 5.50 35,000 0.71 $ 5.24 35,000 $ 5.24 0.71 13.24 - 15.85 60,000 3.58 14.61 60,000 14.61 3.58 17.00 - 21.00 125,000 2.39 19.69 121,250 19.74 2.26 26.43 - 37.64 77,000 4.97 31.95 34,500 29.83 3.99 297,000 3.10 $ 20.14 250,750 $ 17.88 2.60 During the years 2016, 2015 and 2014, $0.7 million, $2.8 million and $2.1 million proceeds were received from stock options exercised, respectively. Aggregate intrinsic value represents the total pre-tax intrinsic value, based on the closing price of our common stock of $55.70 on December 31, 2016, which would have been received by the option holders had all option holders exercised their options as of that date. Total unrecognized compensation cost related to non-vested stock options outstanding as of December 31, 2016 was approximately $0.3 million which we expect to recognize over a weighted-average period of 2.42 years.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2016
COMMITMENTS AND CONTINGENCIES [Abstract]
COMMITMENTS AND CONTINGENCIES	10. COMMITMENTS AND CONTINGENCIES Lease Agreements The Company’s corporate headquarters are currently located at 35 Wilbur St., Lynbrook, NY 11563 (the “Headquarters”). As previously reported, the Company formerly leased the Headquarters from Wilbur St. Corp. (“WSC”), which was owned by Edward H. Wegman, the former CEO and Chairman of BioSpecifics. On November 21, 2013, WSC sold the Headquarters to 35 Wilbur Street Associates, LLC (the “Landlord”), and the Company entered into an Agreement of Lease (the “Lease”) with the Landlord for the Company’s Headquarters and simultaneously terminated the existing lease. Neither the Company nor its affiliates have a material relationship or affiliation with the Landlord. The term of the Lease was for twenty-four months and the base rent was $12,000 per month, provided, however, that the Company had the option to cancel the Lease after the first year by giving three months’ notice to the Landlord. On August 14, 2015, the Company entered into an agreement with the Landlord to extend the term of the lease to the Headquarters for an additional one year period (the “Extended Lease Agreement”). The one year extension ended on November 30, 2016. Pursuant to the Extended Lease Agreement, the Landlord will take occupancy of 1,000 square feet in the front of the building, the base rent will be $10,213 per month and the Company may cancel the lease with three months’ prior written notice to the Landlord at any time during the term. In addition, the Company leases a vehicle and certain office equipment which expire in mid-2017. On November 1, 2016, the Company entered into an agreement with the Landlord to extend the term of the lease to the Headquarters for an additional one year period (the “Extended Lease Agreement”). The one year extension will end on November 30, 2017. Pursuant to the Extended Lease Agreement, the base rent is $10,757 per month and the Company may cancel the lease with three months’ prior written notice to the Landlord at any time during the term. The Extended Lease Agreement was filed with the SEC as Exhibit 10.1 to the Company’s Quarterly Report on Form 10Q on November 9, 2016. Future minimum annual rental payments required under non-cancelable operating leases are $134,450 at year end December 31, 2016. Expense under all operating leases amounted to approximately $127,000, $130,000 and $140,000 for 2016, 2015 and 2014, respectively. Future minimum annual payments required under non-cancelable operating leases are approximated as follows: Year ending December 31, 2017 $ 125,000 2018 4,200 2019 4,200 2020 1,050

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2016
RELATED PARTY TRANSACTIONS [Abstract]
RELATED PARTY TRANSACTIONS	11 RELATED PARTY TRANSACTIONS During the fiscal years ended December 31, 2016, 2015 and 2014 there were no related party transactions.

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	12 Months Ended
	Dec. 31, 2016
EMPLOYEE BENEFIT PLANS [Abstract]
EMPLOYEE BENEFIT PLANS	12 EMPLOYEE BENEFIT PLANS ABC-NY has a 401(k) Profit Sharing Plan for employees who meet minimum age and service requirements. Contributions to the plan by ABC-NY are discretionary and subject to certain vesting provisions. The Company made no contributions to this plan for fiscal years 2016, 2015 or 2014.

SELECTED QUARTERLY DATA (Unaudi

SELECTED QUARTERLY DATA (Unaudited)	12 Months Ended
	Dec. 31, 2016
SELECTED QUARTERLY DATA (Unaudited) [Abstract]
SELECTED QUARTERLY DATA (Unaudited)	13. SELECTED QUARTERLY DATA (Unaudited) The following table sets forth certain unaudited quarterly data for each of the four quarters in the years ended December 31, 2016 and 2015. The data has been derived from the Company's unaudited Consolidated Financial Statements that, in management's opinion, include all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of such information when read in conjunction with the Consolidated Financial Statements and Notes thereto. The results of operations for any quarter are not necessarily indicative of the results of operations for any future period. First Quarter Second Quarter Third Quarter Fourth Quarter Year ended December 31, 2016 Net revenues $ 6,567,991 $ 6,180,156 $ 6,882,160 $ 6,620,648 Operating profit 4,155,158 3,833,596 4,725,885 4,311,777 Net income 2,829,124 2,572,715 3,053,593 2,916,807 Basic earnings per share $ 0.40 $ 0.37 $ 0.43 $ 0.41 Diluted earnings per share $ 0.39 $ 0.35 $ 0.42 $ 0.40 First Second Third Fourth Year ended December 31, 2015 Net revenues $ 5,606,454 $ 4,714,975 $ 6,289,839 $ 6,138,867 Operating profit 3,563,867 2,662,974 4,321,958 3,894,516 Net income 2,330,900 1,757,204 2,870,979 2,658,549 Basic earnings per share $ 0.35 $ 0.26 $ 0.42 $ 0.38 Diluted earnings per share $ 0.32 $ 0.24 $ 0.39 $ 0.36

SUMMARY OF SIGNIFICANT ACCOUN20

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiary, Advance Biofactures Corp., a New York corporation (“ABC-NY”). All intercompany balances and transactions have been eliminated.
Reclassification	Reclassification Certain reclassifications have been made to prior year balances to conform to the current year’s presentation.
Critical Accounting Policies, Estimates and Assumptions	Critical Accounting Policies, Estimates and Assumptions The preparation of consolidated financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) requires the use of management’s estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The Company makes certain assumptions and estimates for its deferred tax assets and deferred royalty buy-down. For further details see footnote “ Provision for Income Taxes, Third Party Royalties and Royalty Buy-Down”.
Cash, Cash Equivalents and Investments	Cash, Cash Equivalents and Investments Cash equivalents include only securities having a maturity of three months or less at the time of purchase. Investments are stated on an amortized cost basis. The Company limits its credit risk associated with cash, cash equivalents and investments by placing its investments with banks it believes are highly creditworthy and with highly rated money market funds, certificates of deposit, pre-refunded municipal bonds, municipal bonds and corporate bonds. All investments are classified as held to maturity. As of December 31, 2016 and 2015, the aggregate fair value of these investments was $48.0 million and $31.9 million, respectively. No unrealized gains or losses were recorded in the balance sheet in either period.
Fair Value Measurements	Fair Value Measurements Management believes that the carrying amounts of the Company’s financial instruments, including cash, cash equivalents, held to maturity investments, accounts receivable, accounts payable and accrued expenses approximate fair value due to the short-term nature of those instruments. As of December 31, 2016 and 2015, there were no recorded unrealized gains or losses on our investments as they are held to maturity. As of December 31, 2016, amortized cost basis of the investments approximate their fair value. The schedule of maturities at December 31, 2016 and 2015 are as follows: Maturities as of December 31, 2016 Maturities as of December 31, 2015 1 Year or Less Greater than 1 Year 1 Year or Less Greater than 1 Year Municipal bonds $ 6,967,954 $ 586,074 $ 6,461,216 $ 155,826 Corporate Bonds 30,418,120 2,936,287 9,882,285 1,597,715 Certificates of deposit 6,868,788 249,019 12,004,041 1,843,000 Total $ 44,254,862 $ 3,771,380 $ 28,347,542 $ 3,596,541
Concentration of Credit Risk and Major Customers	Concentration of Credit Risk and Major Customers The Company maintains bank account balances, which, at times, may exceed insured limits. The Company has not experienced any losses with these accounts and believes that it is not exposed to any significant credit risk on cash. The Company maintains its investment in FDIC insured certificates of deposits with several banks, pre-refunded municipal bonds, municipal bonds and corporate bonds. At December 31, 2016 our accounts receivable balance was $3.8 million and was from one customer, Endo. At December 31, 2015 our accounts receivable balance was $2.5 million and was from one customer, Endo. The Company is currently dependent on one customer, Endo, who generates almost all its revenues. For the years ended December 31, 2016, 2015 and 2014, the licensing, sublicensing, milestones and royalty revenues under the License Agreement with Endo were approximately $26.3 million, $22.8 million and $14.0 million, respectively.
Revenue Recognition	Revenue Recognition We currently recognize revenues resulting from the licensing and sublicensing of the use of our technology and from services we sometimes perform in connection with the licensed technology under the guidance of Accounting Standards Codification 605, Revenue Recognition If we determine that separate elements exist in a revenue arrangement under ASC 605, we recognize revenue for delivered elements only when the fair values of undelivered elements are known, when the associated earnings process is complete, when payment is reasonably assured and, to the extent the milestone amount relates to our performance obligation, when our customer confirms that we have met the requirements under the terms of the agreement.
Royalty / Mark-Up on Cost of Goods Sold	Royalty / Mark-Up on Cost of Goods Sold For those arrangements for which royalty and mark-up on cost of goods sold information becomes available and collectability is reasonably assured, we recognize revenue during the applicable period in which it is earned. For interim quarterly and year-end reporting purposes, when collectability is reasonably assured, but a reasonable estimate of royalty and mark-up on cost of goods sold cannot be made, the royalty and mark-up on cost of goods sold are generally recognized in the quarter that the applicable licensee provides the written report and related information to us. Under the License Agreement, we do not participate in the selling, marketing or manufacturing of products for which we receive royalties and a mark-up on the cost of goods sold. The royalty and mark-up on cost of goods sold will generally be recognized in the quarter that Endo provides the written reports and related information to us; that is, royalty and mark-up on cost of goods sold are generally recognized one quarter following the quarter in which the underlying sales by Endo occurred. Pursuant to the First Amendment with Endo, in exchange for a $8.25 million lump sum payment, we will not receive future additional mark-up on cost of goods sold for sales by non-affiliated sublicensees of Endo outside of the U.S.; provided, however, that Endo will still be required to pay a mark-up on cost of goods sold for sales made in the “Endo Territory,” which includes sales made in the U.S. and sales made in any other country where Endo sells the product directly or through affiliated sublicensees. We received this $8.25 million lump sum payment in February 2016. We classified this payment as deferred revenue in our balance sheet and
Licensing Revenue	Licensing Revenue We include revenue recognized from upfront licensing, sublicensing and milestone payments in “License Revenues” in our consolidated statements of income in this Report. Upfront License and Sublicensing Fees We generally recognize revenue from upfront licensing and sublicensing fees when the agreement is signed, we have completed the earnings process and we have no ongoing performance obligation with respect to the arrangement. Nonrefundable upfront technology license for product candidates for which we are providing continuing services related to product development are deferred and recognized as revenue over the development period. Milestones Milestones, in the form of additional license fees, typically represent nonrefundable payments to be received in conjunction with the achievement of a specific event identified in the contract, such as completion of specified development activities and/or regulatory submissions and/or approvals. We believe that a milestone represents the culmination of a distinct earnings process when it is not associated with ongoing research, development or other performance on our part. We recognize such milestones as revenue when they become due and collection is reasonably assured. When a milestone does not represent the culmination of a distinct earnings process, we recognize revenue in a manner similar to that of an upfront license fee. The timing and amount of revenue that we recognize from licenses of technology, either from upfront fees or milestones where we are providing continuing services related to product development, is primarily dependent upon our estimates of the development period. We define the development period as the point from which research activities commence up to regulatory approval of either our, or our partners’, submission assuming no further research is necessary. As product candidates move through the development process, it is necessary to revise these estimates to consider changes to the product development cycle, such as changes in the clinical development plan, regulatory requirements, or various other factors, many of which may be outside of our control. Should the FDA or other regulatory agencies require additional data or information, we would adjust our development period estimates accordingly. The impact on revenue of changes in our estimates and the timing thereof is recognized prospectively over the remaining estimated product development period.
Treasury Stock	Treasury Stock The Company accounts for treasury stock under the cost method and includes treasury stock as a component of stockholders’ equity. For the year ended December 31, 2016, we repurchased 27,298 shares at an average price of $38.41 as compared to 40,001 shares at an average price of $45.06 in the 2015 period. In the 2014 period, we purchased 30,848 shares at an average price of $26.89.
Receivables	Receivables Trade accounts receivable are stated at the amount the Company expects to collect. We may maintain allowances for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. We consider the following factors when determining the collectability of specific customer accounts: customer credit-worthiness, past transaction history with the customer, current economic industry trends, and changes in customer payment terms. Our accounts receivable balance is typically due from Endo, our one large specialty pharmaceutical customer. Endo has historically paid timely and has been a financially stable organization. Due to the nature of the accounts receivable balance, we believe the risk of doubtful accounts is minimal. If the financial condition of our customer were to deteriorate, adversely affecting its ability to make payments, additional allowances would be required. We may provide for estimated uncollectible amounts through a charge to earnings and a credit to a valuation allowance. Balances that remain outstanding after we have used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable. At December 31, 2016 and 2015, our accounts receivable balance was $3.8 million and $2.5 million, respectively and was from one customer, Endo.
Deferred Revenue	Deferred Revenue Deferred revenue consists of the remaining $7.4 million related to the First Amendment with Endo of mark-up on cost of goods sold revenue for sales by non-affiliated sublicensees, approximately $53,000 related to nonrefundable upfront product license fees for product candidates for which we are providing continuing services related to product development and $100,000 related to a milestone payment withheld by Endo due to a foreign tax withholding which remains uncollected. Currently, the Company expects to recover the full amount. As of December 31, 2016 and 2015, deferred revenue was $7.6 million and $0.2 million, respectively.
Reimbursable Third-Party Development Costs	Reimbursable Third Party Development Costs We accrued patent expenses that are reimbursable by us under the License Agreement. We capitalize certain patent costs related to estimated third-party development costs that are reimbursable under the License Agreement. As of December 31, 2016 and 2015,
Third-Party Royalties	Third Party Royalties We have entered into licensing and royalty agreements with third parties and agreed to pay certain royalties on net sales of products for specific indications. The royalty rates differ from agreement to agreement and, in certain cases, have been redacted with the permission of the SEC. No assumptions should be made that any disclosed royalty rate payable to a particular third party is the same or similar with respect to any royalty rate payable to any other third parties. We accrue third-party royalty expenses on net sales reported to us by Endo. Third-party royalty costs are generally expensed under general and administrative in the quarter that Endo provides the written reports and related information to us; that is, generally one quarter following the quarter in which the underlying sales by Endo occurred. For the years ended December 31, 2016, 2015 and 2014, third party royalty expenses was $1.6 million, $1.4 million and $0.8 million, respectively. Our third-party royalty expense under general and administrative expenses may increase if net sales by Endo and its partners for XIAFLEX and XIAPEX increase and potential new indications for XIAFLEX are approved.
Royalty Buy-Down	Royalty Buy-Down On March 31, 2012, we entered into an amendment to our existing agreement with Dr. Martin K. Gelbard, dated August 27, 2008, related to our future royalty obligations in connection with Peyronie’s disease. The amendment enables us to buy down a portion of our future royalty obligations in exchange for an initial cash payment of $1.5 million and five additional cash payments of $600,000, four of which have been paid as of December 31, 2016. We are currently making the payments to buy down the future royalty obligations, which royalty obligations terminate five years after first commercial sale. The Company amortizes long-term contracts with finite lives in a manner that reflects the pattern in which the economic benefits of the assets are consumed or otherwise used up. Dr. Gelbard’s agreement is amortized based on an income forecast method by estimating sales of XIAFLEX for Peyronie’s disease on an annual basis as measured by the proportion of the total estimated sales over the five year period. For the years ended December 31, 2016, 2015, and 2014, we amortized approximately $1.0 million, $0.6 million and $0.1 million related to this agreement, respectively. As of December 31, 2016 and 2015, the remaining capitalized balances were approximately $3.4 million and $3.9 million, respectively. We perform an evaluation of the recoverability of the carrying value to determine if facts and circumstances indicate that the carrying value of the assets may be impaired and if any adjustment is warranted. As of December 31, 2016, there was no indicator that an impairment existed.
Research and Development Expenses	Research and Development Expenses R&D expenses
Clinical Trial Expenses	Clinical Trial Expenses Our cost accruals for clinical trials are based on estimates of the services received and efforts expended pursuant to contracts with various clinical trial centers and clinical research organizations. In the normal course of business we contract with third parties to perform various clinical trial activities in the ongoing development of potential drugs. The financial terms of these agreements are subject to negotiation and vary from contract to contract and may result in uneven payment flows. Payments under the contracts depend on factors such as the achievement of certain events, the successful enrollment of patients, the completion of portions of the clinical trial, or similar conditions. The objective of our accrual policy is to match the recording of expenses in our financial statements to the actual cost of services received and efforts expended. As such, expenses related to each patient enrolled in a clinical trial are recognized ratably beginning upon entry into the trial and over the course of the patient’s continued participation in the trial. In the event of early termination of a clinical trial, we accrue an amount based on our estimate of the remaining non-cancelable obligations associated with the winding down of the clinical trial. Our estimates and assumptions could differ significantly from the amounts that may actually be incurred.
Income Taxes	Income Taxes Deferred tax assets and liabilities are recognized based on the expected future tax consequences, using current tax rates, of temporary differences between the financial statement carrying amounts and the income tax basis of assets and liabilities. A valuation allowance is applied against any net deferred tax asset if, based on the weighted available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. We use the asset and liability method of accounting for income taxes, as set forth in Accounting Standards Codification 740-10-25-2. Under this method, deferred income taxes, when required, are provided on the basis of the difference between the financial reporting and income tax basis of assets and liabilities at the statutory rates enacted for future periods. Income Statement Classification of Interest and Penalties The Company recognizes a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefit recognized in the consolidated financial statements from such position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon the ultimate settlement. As of December 31, 2016 and 2015, the Company has not recorded any unrecognized tax benefits.
Stock-Based Compensation	Stock-Based Compensation The Company has one stock-based compensation plan in effect which is described more fully in Note 10. Accounting Standards Codification 718, Compensation - Stock Compensation Under ASC 718, we estimate the fair value of our employee stock awards at the date of grant using the Black-Scholes option-pricing model, which requires the use of certain subjective assumptions. The most significant of these assumptions are our estimates of the expected volatility of the market price of our stock and the expected term of an award. When establishing an estimate of the expected term of an award, we consider the vesting period for the award, our recent historical experience of employee stock option exercises (including forfeitures) and the expected volatility. When there is uncertainty in the factors used to determine the expected term of an award, we use the simplified method. We account for stock options granted to persons other than employees or directors at fair value using the Black-Scholes option-pricing model in accordance with Accounting Standards Codification 505-50, Equity Based Payments to Non-Employees
Patent Costs	Patent Costs We amortize intangible assets with definite lives on a straight-line basis over their remaining estimated useful lives, ranging from 3 to 10 years, and review for impairment on an annual basis and when events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. As of December 31, 2016, there was no indicator that an impairment existed. For the year ended December 31, 2016, we capitalized patent costs related to patent prosecution and maintenance of approximately $23,000 based on the most current information reported to us by Endo. As of December 31, 2016, the Company’s estimated costs related to certain patent costs are approximately $25,000 which are reimbursable to Endo under the License Agreement. These patent costs are creditable against future royalty revenues. For each period presented below net patent costs consisted of: December 31, 2016 2015 Patents $ 720,601 $ 697,260 Accumulated Amortization (462,246 ) (422,054 ) Net Patent Costs $ 258,355 $ 275,206 The amortization expense for patents for the years ended December 31, 2016, 2015 and 2014 were $40,192, $45,758 and $119,920, respectively. The estimated aggregate amortization expense for each of the next five years is approximately as follows: 2017 $ 39,000 2018 39,000 2019 39,000 2020 27,000 2021 16,000
New Accounting Pronouncements	New Accounting Pronouncements The Financial Accounting Standards Board, or FASB , issued in May 2014, in August 2015, March 2016 and April 2016, Accounting Standards Updates No. 2014-09, No. 2015-14, No. 2016-08, and No. 2016-10 (the “ASUs”). These ASUs were issued in connection with revenue from contracts with customers. The new standard provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition. In August 2015, the FASB deferred the effective date of the guidance to reporting periods, including interim periods, beginning after December 15, 2017, and will be applied retrospectively. Early adoption is not permitted. We are currently evaluating the timing, method of adoption and the expected impact that the standard could have on our consolidated financial statements and related disclosures. We are currently evaluating the expected impact that the standard could have on our consolidated financial statements and related disclosures. In January 2016, the FASB issued new guidance on recognition and measurement of financial assets and financial liabilities. The new guidance will impact the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. All equity investments in unconsolidated entities (other than those accounted for under the equity method of accounting) will generally be measured at fair value with changes in fair value recognized through earnings. There will no longer be an available-for-sale classification (changes in fair value reported in other comprehensive income (loss) for equity securities with readily determinable fair values. In addition, the FASB clarified the need for a valuation allowance on deferred tax assets resulting from unrealized losses on available-for-sale debt securities. In general, the new guidance will require modified retrospective application to all outstanding instruments, with a cumulative effect adjustment recorded to opening retained earnings. This guidance will be effective for us on January 1, 2018. We are currently evaluating the expected impact that the standard could have on our consolidated financial statements and related disclosures however the Company does not classify any securities as available for sale. In February 2016, FASB issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the lease commencement date: a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers . The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off-balance sheet financing. Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (i.e., January 1, 2019, for a calendar year entity). Early application is permitted. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. In March 2016, FASB issued ASU No. 2016-09 related to stock-based compensation. The new guidance simplifies the accounting for stock-based compensation transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This update is effective in fiscal years, including interim periods, beginning after December 15, 2016, and early adoption is permitted. We are currently evaluating this guidance and the impact it will have on the consolidated financial statements and related disclosures. In May 2016, FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which is intended to not change the core principle of the guidance in Topic 606, but rather affect only the narrow aspects of Topic 606 by reducing the potential for diversity in practice at initial application and by reducing the cost and complexity of applying Topic 606 both at transition and on an ongoing basis. We are currently evaluating the expected impact that the standard could have on our consolidated financial statements and related disclosures. In June 2016, FASB issued ASU 2016-13, Financial Instruments - Credit Losses. The amendment revises the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in more timely recognition of losses on financial instruments, including, but not limited to, available for sale debt securities and accounts receivable. The Company is required to adopt this standard starting in the first quarter of fiscal year 2021. Early adoption is permitted. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements and related disclosures. In January 2017, FASB issued ASU 2017-01, . a business is an integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing a return in the form of dividends, lower costs, or other economic benefits directly to investors or other owners, members or participants. In order to be considered a business, the three elements of inputs, processes and outputs must be present. In a business acquisition, if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, the integrated set of assets and activities acquired is not considered a business. The amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. This amendment may impact the allocation of purchase price in future acquisitions depending on the structure of future acquisitions.

SUMMARY OF SIGNIFICANT ACCOUN21

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Schedule of Maturities	The schedule of maturities at December 31, 2016 and 2015 are as follows: Maturities as of December 31, 2016 Maturities as of December 31, 2015 1 Year or Less Greater than 1 Year 1 Year or Less Greater than 1 Year Municipal bonds $ 6,967,954 $ 586,074 $ 6,461,216 $ 155,826 Corporate Bonds 30,418,120 2,936,287 9,882,285 1,597,715 Certificates of deposit 6,868,788 249,019 12,004,041 1,843,000 Total $ 44,254,862 $ 3,771,380 $ 28,347,542 $ 3,596,541
Net Patent Costs	For each period presented below net patent costs consisted of: December 31, 2016 2015 Patents $ 720,601 $ 697,260 Accumulated Amortization (462,246 ) (422,054 ) Net Patent Costs $ 258,355 $ 275,206
Estimated Aggregate Future Amortization Expense	The estimated aggregate amortization expense for each of the next five years is approximately as follows: 2017 $ 39,000 2018 39,000 2019 39,000 2020 27,000 2021 16,000

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	12 Months Ended
	Dec. 31, 2016
FAIR VALUE MEASUREMENTS [Abstract]
Fair Value Assets Measured on Recurring Basis	The following tables present the Company’s fair value hierarchy for these financial assets as of December 31, 2016 and 2015: December 31, 2016 Type of Instrument Fair Value Level 1 Level 2 Level 3 Cash equivalents Institutional Money Market $ 2,290,331 $ 2,290,331 - - Investments Municipal Bonds 7,554,028 - 7,554,028 - Investments Corporate Bonds 33,354,407 - 33,354,407 - Investments Certificates of Deposit 7,117,807 7,117,807 - - December 31, 2015 Type of Instrument Fair Value Level 1 Level 2 Level 3 Cash equivalents Institutional Money Market $ 715,784 $ 715,784 - - Investments Municipal Bonds 6,617,042 - 6,617,042 - Investments Corporate Bonds 11,480,000 - 11,480,000 - Investments Certificates of Deposit 13,847,041 13,847,041 - -

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2016
EARNINGS PER SHARE [Abstract]
Schedule of Earnings per Share Basic and Diluted	Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period increased to include all additional common shares that would have been outstanding assuming potentially dilutive common shares, resulting from option exercises, had been issued and any proceeds thereof used to repurchase common stock at the average market price during the period. 2016 2015 2014 Net income for diluted computation $ 11,372,239 $ 9,617,632 $ 4,645,960 Weighted average shares: Basic 7,061,404 6,827,355 6,477,457 Effect of dilutive securities: Stock options 221,858 445,634 602,113 Diluted 7,283,262 7,272,989 7,079,570 Net income per share: Basic $ 1.61 $ 1.41 $ 0.72 Diluted $ 1.56 $ 1.32 $ 0.66

ACCOUNTS PAYABLE AND ACCRUED 24

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2016
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES [Abstract]
Accounts Payable and Accrued Expenses	Accounts payable and accrued expenses consist of the following: December 31, 2016 2015 Trade accounts payable and accrued expenses $ 505,098 $ 372,367 Accrued legal and other professional fees 51,000 74,138 Accrued payroll and related costs 182,551 164,504 $ 738,649 $ 611,009

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2016
INCOME TAXES [Abstract]
Schedule of Components of Income Tax Expense (Benefit)	The provision for income taxes consists of the following: Year ended December 31, 2016 2015 2014 Current taxes: Federal $ 8,571,034 4,428,344 $ 1,939,830 State 98,881 49,185 17,872 Total current taxes 8,669,915 4,477,529 1,957,702 Deferred taxes: Federal (2,647,363 ) 452,761 425,127 State (19,787 ) 3,038 3,878 Total deferred taxes (2,667,150 ) 455,799 429,005 Total provision for income taxes $ 6,002,765 4,933,328 $ 2,386,707
Schedule of Effective Income Tax Rate Reconciliation	The effective income tax rate of the Company differs from the federal statutory tax rate due to the following items: Year ended December 31, 2016 2015 2014 Statutory rate 35.00 % 34.00 % 34.00 % State income taxes, net of federal income tax benefit 0.26 % 0.25 % 0.17 % Stock-based compensation (0.50 )% (0.46 )% (0.40 )% Miscellaneous other, net (0.21 )% 0.11 % 0.17 % Effective tax rate 34.55 % 33.90 % 33.94 %
Schedule of Deferred Tax Asset	The components of deferred income tax assets and liabilities are as follows: December 31, 2016 2015 Deferred revenue $ 2,643,678 $ 33,823 Stock option based compensation 536,065 490,405 Other 110,379 98,744 Net deferred tax asset $ 3,290,122 $ 622,972

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	12 Months Ended
	Dec. 31, 2016
STOCKHOLDERS' EQUITY [Abstract]
Stock-Based Compensation Expense	Stock-based compensation expense recognized under ASC 718 was as follows: December 31, 2016 2015 2014 Research and development $ - $ - $ - General and administrative 133,904 105,782 21,416 Total stock-based compensation expense $ 133,904 $ 105,782 $ 21,416
Assumptions Used to Estimate the Fair Values of the Stock Options Granted	The following table presents the assumptions used to estimate the fair values of the stock options granted in the periods presented: 2016 2015 2014 Risk-free interest rate - 1.41 % 1.66 % Expected volatility - 39 % 32 % Expected life (in years) - 6.25 5.00 Dividend yield - - -
Summary of Stock Options Activity	The summary of the stock options activity is as follows for year ended: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2015 759,958 $ 11.04 3.12 $ 23,483,235 Grants 30,000 37.64 10.00 - Exercised (227,958 ) 12.39 - 9,251,027 Forfeitures or expirations - - - - Outstanding at December 31, 2015 562,000 11.91 2.51 17,456,220 Grants - - - - Exercised (265,000 ) 2.68 - 9,392,150 Forfeitures or expirations - - - - Outstanding at December 31, 2016 297,000 20.14 3.10 10,561,380 Vested and expected to vest at December 31, 2016 297,000 20.14 3.10 10,561,380 Exercisable at December 31, 2016 250,750 $ 17.88 2.60 $ 9,483,518
Schedule of Information Relating to Stock Options by Exercise Price	The following table summarizes information relating to stock options by exercise price at December 31, 2016: Outstanding Shares Exercisable Shares Option Exercise Price Number of Shares Weighted Average Life (years) Weighted Average Exercise Price Number of Shares Weighted Average Option Price Weighted Average Life (years) 4.00 - 5.50 35,000 0.71 $ 5.24 35,000 $ 5.24 0.71 13.24 - 15.85 60,000 3.58 14.61 60,000 14.61 3.58 17.00 - 21.00 125,000 2.39 19.69 121,250 19.74 2.26 26.43 - 37.64 77,000 4.97 31.95 34,500 29.83 3.99 297,000 3.10 $ 20.14 250,750 $ 17.88 2.60

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2016
COMMITMENTS AND CONTINGENCIES [Abstract]
Future Minimum Annual Payments Due	Future minimum annual payments required under non-cancelable operating leases are approximated as follows: Year ending December 31, 2017 $ 125,000 2018 4,200 2019 4,200 2020 1,050

SELECTED QUARTERLY DATA (Unau28

SELECTED QUARTERLY DATA (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2016
SELECTED QUARTERLY DATA (Unaudited) [Abstract]
Schedule of Quarterly Financial Information	The results of operations for any quarter are not necessarily indicative of the results of operations for any future period. First Quarter Second Quarter Third Quarter Fourth Quarter Year ended December 31, 2016 Net revenues $ 6,567,991 $ 6,180,156 $ 6,882,160 $ 6,620,648 Operating profit 4,155,158 3,833,596 4,725,885 4,311,777 Net income 2,829,124 2,572,715 3,053,593 2,916,807 Basic earnings per share $ 0.40 $ 0.37 $ 0.43 $ 0.41 Diluted earnings per share $ 0.39 $ 0.35 $ 0.42 $ 0.40 First Second Third Fourth Year ended December 31, 2015 Net revenues $ 5,606,454 $ 4,714,975 $ 6,289,839 $ 6,138,867 Operating profit 3,563,867 2,662,974 4,321,958 3,894,516 Net income 2,330,900 1,757,204 2,870,979 2,658,549 Basic earnings per share $ 0.35 $ 0.26 $ 0.42 $ 0.38 Diluted earnings per share $ 0.32 $ 0.24 $ 0.39 $ 0.36

ORGANIZATION AND DESCRIPTION 29

ORGANIZATION AND DESCRIPTION OF BUSINESS (Details) - Endo [Member] - USD ($) $ in Thousands	1 Months Ended
	Feb. 29, 2016	Dec. 31, 2016
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Deferred revenue on licensing agreements		$ 8,250
Opt-in fee receivable for each indication		500
Proceeds from licensing agreement	$ 8,250
Regular opt-in fee receivable for each indication		$ 750

SUMMARY OF SIGNIFICANT ACCOUN30

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	1 Months Ended	3 Months Ended	12 Months Ended
	Feb. 29, 2016USD ($)	Mar. 31, 2012USD ($)Payment	Dec. 31, 2016USD ($)CustomerQuarterPaymentPlan$ / sharesshares	Dec. 31, 2015USD ($)Customer$ / sharesshares	Dec. 31, 2014USD ($)$ / sharesshares
Cash, Cash Equivalents and Investments [Abstract]
Aggregate fair value of investments			$ 48,000,000	$ 31,900,000
Held-to-maturity securities, unrecognized gain			0	0
Held-to-maturity securities, unrecognized loss			0	0
Fair Value Measurements [Abstract]
Amortized premium included in interest income			(610,000)	(316,000)
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity securities, current			44,254,862	28,347,542
Held-to-maturity securities, noncurrent			3,771,380	3,596,541
Concentration of Credit Risk and Major Customers [Abstract]
Accounts receivable			$ 3,810,792	$ 2,547,920
Number of customers | Customer			1	1
Royalty revenue			$ 25,431,012	$ 20,800,757	$ 12,985,370
Royalty / Mark-Up on Cost of Goods Sold [Abstract]
Number of quarters after which revenue is recognized | Quarter			1
Deferred Revenue [Abstract]
Deferred revenue			$ 7,600,000	$ 200,000
Treasury Stock [Abstract]
Treasury stock purchased (in shares) | shares			27,298	40,001	30,848
Average price of share (in dollars per share) | $ / shares			$ 38.41	$ 45.06	$ 26.89
Reimbursable Third Party Development Costs [Abstract]
Accrued patent costs			$ 25,000	$ 20,000
Third Party Royalties [Abstract]
Royalty expenses			1,600,000	1,400,000	$ 800,000
Royalty Buy Down [Abstract]
Initial payment for royalty buy down		$ 1,500,000	$ 600,000
Number of additional cash payments for royalty buy-down | Payment		5
Number of cash payments made for royalty obligation | Payment			4
Deferred costs, amortization period			5 years
Amount amortized related to agreement			$ 1,000,000	600,000	100,000
Deferred royalty buy-down - long term			3,400,000	3,900,000
Income taxes [Abstract]
Unrecognized Tax Benefits			$ 0	0
Share-based Compensation [Abstract]
Number of stock based compensation plans | Plan			1
Net Patent Costs [Abstract]
Net patent costs			$ 258,355	275,206
Estimated aggregate amortization expense [Abstract]
2,017			39,000
2,018			39,000
2,019			39,000
2,020			27,000
2,021			16,000
Endo [Member]
Concentration of Credit Risk and Major Customers [Abstract]
Accounts receivable			3,800,000	2,500,000
Royalty revenue			26,300,000	22,800,000	14,000,000
Royalty / Mark-Up on Cost of Goods Sold [Abstract]
Deferred revenue on licensing agreements			8,250,000
Proceeds from licensing agreement	$ 8,250,000
Deferred revenue recognized			800,000	0	0
Deferred Revenue [Abstract]
Deferred revenue			7,400,000
Nonrefundable upfront product license fees			53,000
Deferred revenue from foreign tax withholding			100,000
Municipal Bonds [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity securities, current			6,967,954	6,461,216
Held-to-maturity securities, noncurrent			586,074	155,826
Corporate Bonds [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity securities, current			30,418,120	9,882,285
Held-to-maturity securities, noncurrent			2,936,287	1,597,715
Certificates of Deposit [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity securities, current			6,868,788	12,004,041
Held-to-maturity securities, noncurrent			249,019	1,843,000
Patents [Member]
Net Patent Costs [Abstract]
Patents			720,601	697,260
Accumulated amortization			(462,246)	(422,054)
Net patent costs			258,355	275,206
Amortization expense for patents			$ 40,192	$ 45,758	$ 119,920
Patents [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization period for intangible assets			3 years
Patents [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization period for intangible assets			10 years
Patents [Member] | Endo [Member]
Finite-Lived Intangible Assets [Line Items]
Increase in capitalized patent costs			$ 23,000
Capitalized patents costs reimbursable to customer			$ 25,000

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - Recurring [Member] - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Institutional Money Market [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	$ 2,290,331	$ 715,784
Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	7,554,028	6,617,042
Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	33,354,407	11,480,000
Certificates of Deposit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	7,117,807	13,847,041
Level 1 [Member] | Institutional Money Market [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	2,290,331	715,784
Level 1 [Member] | Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	0	0
Level 1 [Member] | Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	0	0
Level 1 [Member] | Certificates of Deposit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	7,117,807	13,847,041
Level 2 [Member] | Institutional Money Market [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Level 2 [Member] | Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	7,554,028	6,617,042
Level 2 [Member] | Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	33,354,407	11,480,000
Level 2 [Member] | Certificates of Deposit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	0	0
Level 3 [Member] | Institutional Money Market [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Level 3 [Member] | Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	0	0
Level 3 [Member] | Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	0	0
Level 3 [Member] | Certificates of Deposit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	$ 0	$ 0

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
EARNINGS PER SHARE [Abstract]
Net income for diluted computation	$ 2,916,807	$ 3,053,593	$ 2,572,715	$ 2,829,124	$ 2,658,549	$ 2,870,979	$ 1,757,204	$ 2,330,900	$ 11,372,239	$ 9,617,632	$ 4,645,960
Weighted average shares [Abstract]
Basic (in shares)									7,061,404	6,827,355	6,477,457
Effect of dilutive securities [Abstract]
Stock options (in shares)									221,858	445,634	602,113
Diluted (in shares)									7,283,262	7,272,989	7,079,570
Net income per share [Abstract]
Basic (in dollars per share)	$ 0.41	$ 0.43	$ 0.37	$ 0.40	$ 0.38	$ 0.42	$ 0.26	$ 0.35	$ 1.61	$ 1.41	$ 0.72
Diluted (in dollars per share)	$ 0.40	$ 0.42	$ 0.35	$ 0.39	$ 0.36	$ 0.39	$ 0.24	$ 0.32	$ 1.56	$ 1.32	$ 0.66
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potential common shares excluded from diluted loss per share calculation (in shares)									20,000	20,000	20,000

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Details)	12 Months Ended
	Dec. 31, 2016
Minimum [Member]
Property, plant and equipment [Abstract]
Estimated useful life	5 years
Maximum [Member]
Property, plant and equipment [Abstract]
Estimated useful life	10 years

COMPREHENSIVE INCOME (Details)

COMPREHENSIVE INCOME (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
COMPREHENSIVE INCOME [Abstract]
Other comprehensive income	$ 0	$ 0	$ 0

ACCOUNTS PAYABLE AND ACCRUED 35

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Accounts payable and accrued expenses [Abstract]
Trade accounts payable and accrued expenses	$ 505,098	$ 372,367
Accrued legal and other professional fees	51,000	74,138
Accrued payroll and related costs	182,551	164,504
Total	$ 738,649	$ 611,009

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Current taxes [Abstract]
Federal	$ 8,571,034	$ 4,428,344	$ 1,939,830
State	98,881	49,185	17,872
Total current taxes	8,669,915	4,477,529	1,957,702
Deferred taxes [Abstract]
Federal	(2,647,363)	452,761	425,127
State	(19,787)	3,038	3,878
Total deferred taxes	(2,667,150)	455,799	429,005
Total provision for income taxes	$ 6,002,765	$ 4,933,328	$ 2,386,707
Effective income tax rate differs from federal statutory tax rate [Abstract]
Statutory rate	35.00%	34.00%	34.00%
State income taxes, net of federal income tax benefit	0.26%	0.25%	0.17%
Stock-based compensation	(0.50%)	(0.46%)	(0.40%)
Miscellaneous other, net	(0.21%)	0.11%	0.17%
Effective tax rate	34.55%	33.90%	33.94%
Deferred tax assets [Abstract]
Deferred revenue	$ 2,643,678	$ 33,823
Stock option based compensation	536,065	490,405
Other	110,379	98,744
Net deferred tax asset	3,290,122	622,972
Tax benefit from stock options exercised	300,000
Income Tax Contingency [Line Items]
Uncertain tax positions	0	$ 0
Interest and penalties	$ 0
Tax Year 2013 [Member]
Income Tax Contingency [Line Items]
Open tax years	2,013
Tax Year 2014 [Member]
Income Tax Contingency [Line Items]
Open tax years	2,014
Tax Year 2015 [Member]
Income Tax Contingency [Line Items]
Open tax years	2,015
Tax Year 2016 [Member]
Income Tax Contingency [Line Items]
Open tax years	2,016

STOCKHOLDERS' EQUITY, Stock Opt

STOCKHOLDERS' EQUITY, Stock Options (Details)	12 Months Ended
	Dec. 31, 2016USD ($)PlanInstallment$ / sharesshares	Dec. 31, 2015USD ($)Director$ / sharesshares	Dec. 31, 2014USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock based compensation plans | Plan	1
Number of board of directors to whom stock options granted | Director		2
Assumptions used to estimate the fair values of the stock options granted [Abstract]
Risk-free interest rate	0.00%	1.41%	1.66%
Expected volatility	0.00%	39.00%	32.00%
Expected life	0 years	6 years 3 months	5 years
Dividend yield	0.00%	0.00%	0.00%
Stock Options Activity [Roll Forward]
Outstanding, beginning of period (in shares)	562,000	759,958
Grants (in shares)	0	30,000
Exercised (in shares)	(265,000)	(227,958)
Forfeitures or expirations (in shares)	0	0
Outstanding, end of period (in shares)	297,000	562,000	759,958
Vested and expected to vest (in shares)	297,000
Exercisable (in shares)	250,750
Weighted Average Exercise Price [Roll Forward]
Outstanding at beginning of year (in dollars per share) | $ / shares	$ 11.91	$ 11.04
Grants (in dollars per share) | $ / shares	0	37.64
Exercised (in dollars per share) | $ / shares	2.68	12.39
Forfeitures or expirations (in dollars per share) | $ / shares	0	0
Outstanding at end of year (in dollars per share) | $ / shares	20.14	$ 11.91	$ 11.04
Vested and expected to vest (in dollars per share) | $ / shares	20.14
Exercisable (in dollars per share) | $ / shares	$ 17.88
Weighted Average Remaining Contractual Term [Roll Forward]
Outstanding	3 years 1 month 6 days	2 years 6 months 4 days	3 years 1 month 13 days
Grants	0 years	10 years
Exercised	0 years	0 years
Forfeitures or expirations	0 years	0 years
Vested and expected to vest	3 years 1 month 6 days
Exercisable	2 years 7 months 6 days
Aggregate Intrinsic Value [Roll Forward]
Outstanding, beginning of period | $	$ 17,456,220	$ 23,483,235
Grants | $	0	0
Exercised | $	9,392,150	9,251,027
Forfeitures or expirations | $	0	0
Outstanding at end of period | $	10,561,380	17,456,220	$ 23,483,235
Vested and expected to vest | $	10,561,380
Exercisable | $	9,483,518
Board of Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock granted during period, value of stock options | $	$ 0	$ 450,000	$ 123,000
Stock Options Activity [Roll Forward]
Grants (in shares)	0	30,000	15,000
2001 Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for issuance (in shares)	2,050,000
Number of installments for options vest and become exercisable | Installment	4
Options expiration period	10 years
Number of shares available for grant (in shares)	209,098
2001 Stock Option Plan [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price per share of common stock	100.00%
2001 Stock Option Plan [Member] | Qualified Incentive Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price per share of common stock	110.00%
Options expiration period	5 years
2001 Stock Option Plan [Member] | Qualified Incentive Stock Options [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Minimum ownership percentage for qualified incentive stock options	10.00%

STOCKHOLDERS' EQUITY, Stock-bas

STOCKHOLDERS' EQUITY, Stock-based Compensation Expense (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 133,904	$ 105,782	$ 21,416
Research and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	0	0	0
General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 133,904	$ 105,782	$ 21,416

STOCKHOLDERS' EQUITY, Stock o39

STOCKHOLDERS' EQUITY, Stock options by Exercise Price Range (Details)	12 Months Ended
	Dec. 31, 2016$ / sharesshares
Stock Options by Exercise Price [Abstract]
Number of Shares Outstanding (in shares) | shares	297,000
Weighted Average Life	3 years 1 month 6 days
Weighted Average Exercise Price (in dollars per share)	$ 20.14
Number of Shares Exercisable (in shares) | shares	250,750
Weighted Average Option Price (in dollars per share)	$ 17.88
Weighted Average Life	2 years 7 months 6 days
4.00-5.50 [Member]
Stock Options by Exercise Price [Abstract]
Range of Options Exercise Prices, Lower Limit (in dollars per share)	$ 4
Range of Options Exercise Prices, Upper Limit (in dollars per share)	$ 5.50
Number of Shares Outstanding (in shares) | shares	35,000
Weighted Average Life	8 months 16 days
Weighted Average Exercise Price (in dollars per share)	$ 5.24
Number of Shares Exercisable (in shares) | shares	35,000
Weighted Average Option Price (in dollars per share)	$ 5.24
Weighted Average Life	8 months 16 days
13.24-15.85 [Member]
Stock Options by Exercise Price [Abstract]
Range of Options Exercise Prices, Lower Limit (in dollars per share)	$ 13.24
Range of Options Exercise Prices, Upper Limit (in dollars per share)	$ 15.85
Number of Shares Outstanding (in shares) | shares	60,000
Weighted Average Life	3 years 6 months 29 days
Weighted Average Exercise Price (in dollars per share)	$ 14.61
Number of Shares Exercisable (in shares) | shares	60,000
Weighted Average Option Price (in dollars per share)	$ 14.61
Weighted Average Life	3 years 6 months 29 days
17.00-21.00 [Member]
Stock Options by Exercise Price [Abstract]
Range of Options Exercise Prices, Lower Limit (in dollars per share)	$ 17
Range of Options Exercise Prices, Upper Limit (in dollars per share)	$ 21
Number of Shares Outstanding (in shares) | shares	125,000
Weighted Average Life	2 years 4 months 20 days
Weighted Average Exercise Price (in dollars per share)	$ 19.69
Number of Shares Exercisable (in shares) | shares	121,250
Weighted Average Option Price (in dollars per share)	$ 19.74
Weighted Average Life	2 years 3 months 4 days
26.43-37.64 [Member]
Stock Options by Exercise Price [Abstract]
Range of Options Exercise Prices, Lower Limit (in dollars per share)	$ 26.43
Range of Options Exercise Prices, Upper Limit (in dollars per share)	$ 37.64
Number of Shares Outstanding (in shares) | shares	77,000
Weighted Average Life	4 years 11 months 19 days
Weighted Average Exercise Price (in dollars per share)	$ 31.95
Number of Shares Exercisable (in shares) | shares	34,500
Weighted Average Option Price (in dollars per share)	$ 29.83
Weighted Average Life	3 years 11 months 26 days

STOCKHOLDERS' EQUITY, Additiona

STOCKHOLDERS' EQUITY, Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Additional General Disclosures [Abstract]
Proceeds from stock option exercises	$ 711,400	$ 2,823,983	$ 2,146,821
Closing price of common stock (in dollars per share)	$ 55.70
Unrecognized compensation cost	$ 300,000
Weighted average period for recognition of unrecognized compensation cost	2 years 5 months 1 day

COMMITMENTS AND CONTINGENCIES41

COMMITMENTS AND CONTINGENCIES (Details)	Nov. 01, 2016USD ($)	Aug. 14, 2015USD ($)ft²	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)ft²
COMMITMENTS AND CONTINGENCIES [Abstract]
Term of lease			24 months
Monthly base rent	$ 10,757	$ 10,213	$ 12,000
Notice period			3 months
Adjusted monthly rent of leased premises					$ 10,200
Rental space sub-leased | ft²					2,300
Additional lease term extension period	1 year	1 year
Area of sublease to landlord | ft²		1,000
Notice period to cancel lease agreements	3 months	3 months
Future minimum annual rental payments			$ 134,450
Rent expense under operating lease			127,000	$ 130,000	$ 140,000
Future Minimum Annual Payments Due Under Operating Leases [Abstract]
2,017			125,000
2,018			4,200
2,019			4,200
2,020			$ 1,050

EMPLOYEE BENEFIT PLANS (Details

EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
EMPLOYEE BENEFIT PLANS [Abstract]
Contributions to 401(k) Profit Sharing Plan	$ 0	$ 0	$ 0

SELECTED QUARTERLY DATA (Unau43

SELECTED QUARTERLY DATA (Unaudited) (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Quarterly Financial Data [Abstract]
Net revenues	$ 6,620,648	$ 6,882,160	$ 6,180,156	$ 6,567,991	$ 6,138,867	$ 6,289,839	$ 4,714,975	$ 5,606,454	$ 26,250,955	$ 22,750,135	$ 14,044,624
Operating profit	4,311,777	4,725,885	3,833,596	4,155,158	3,894,516	4,321,958	2,662,974	3,563,867	17,026,416	14,443,315	6,966,927
Net income	$ 2,916,807	$ 3,053,593	$ 2,572,715	$ 2,829,124	$ 2,658,549	$ 2,870,979	$ 1,757,204	$ 2,330,900	$ 11,372,239	$ 9,617,632	$ 4,645,960
Basic earnings per share (in dollars per share)	$ 0.41	$ 0.43	$ 0.37	$ 0.40	$ 0.38	$ 0.42	$ 0.26	$ 0.35	$ 1.61	$ 1.41	$ 0.72
Diluted earnings per share (in dollars per share)	$ 0.40	$ 0.42	$ 0.35	$ 0.39	$ 0.36	$ 0.39	$ 0.24	$ 0.32	$ 1.56	$ 1.32	$ 0.66