View Filing Data

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2017	Nov. 12, 2017
Document And Entity Information
Entity Registrant Name	ATOSSA GENETICS INC
Entity Central Index Key	0001488039
Document Type	10-Q
Trading Symbol	ATOS
Document Period End Date	Sep. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		26,522,741
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2017

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 2,733,663	$ 3,027,962
Restricted cash	55,000	55,000
Prepaid expenses	157,406	171,601
Other accounts receivable	4,040
Total current assets	2,950,109	3,254,563
Furniture and equipment, net	14,435	55,119
Intangible assets, net	561,354	640,440
Other assets	108,723	194,250
Total assets	3,634,621	4,144,372
Current liabilities
Accounts payable	380,399	254,320
Accrued expenses	50,542	16,964
Payroll liabilities	627,587	769,899
Other current liabilities	13,295	6,083
Total current liabilities	1,071,823	1,047,266
Commitments and contingencies (note 13)
Stockholders' equity
Preferred stock - $.001 par value; 10,000,000 shares authorized, no shares issued or outstanding
Common stock - $.015 par value; 75,000,000 shares authorized, 14,022,741 and 3,786,913 shares issued and outstanding, as of September 30, 2017 and December 31, 2016, respectively	210,341	56,804
Additional paid-in capital	65,785,758	60,344,050
Accumulated deficit	(63,433,301)	(57,303,748)
Total stockholders' equity	2,562,798	3,097,106
Total liabilities and stockholders' equity	$ 3,634,621	$ 4,144,372

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized	10,000,000	10,000,000
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.015	$ 0.015
Common stock, authorized	75,000,000	75,000,000
Common stock, issued	14,022,741	3,786,913
Common stock, outstanding	14,022,741	3,786,913

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Operating expenses:
Research and development	$ 742,450	$ 85,000	$ 2,110,846	$ 403,963
General and administrative	1,313,477	1,473,435	3,528,189	5,040,939
Total operating expenses	2,055,927	1,558,435	5,639,035	5,444,902
Operating loss	(2,055,927)	(1,558,435)	(5,639,035)	(5,444,902)
Change in fair value of common stock warrants	(128,300)		(280,747)
Warrant financing expense			(192,817)
Other income (expense), net	(283)	1,763,124	(16,954)	1,599,667
Income (loss) before income taxes	(2,184,510)	204,689	(6,129,553)	(3,845,235)
Income taxes
Net income (loss)	(2,184,510)	204,689	(6,129,553)	(3,845,235)
Deemed dividends attributable to Series A Preferred Stock			(2,568,132)
Net income (loss) applicable to common stockholders	$ (2,184,510)	$ 204,689	$ (8,697,685)	$ (3,845,235)
Income (loss) per common share - basic and diluted (in dollars per share)	$ (0.18)	$ 0.07	$ (1.10)	$ (1.44)
Weighted average shares outstanding, basic and diluted (in shares)	12,411,145	3,024,393	7,886,210	2,665,904

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (UNAUDITED) - 9 months ended Sep. 30, 2017 - USD ($)	Series A Convertible Preferred Stock [Member]	Additional Paid-in Capital [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Total
Balance, beginning at Dec. 31, 2016			$ 56,804	$ 60,344,050	$ (57,303,748)	$ 3,097,106
Balance, beginning (in shares) at Dec. 31, 2016			3,786,913			3,786,913
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock in Class A units, net of issuance costs of $65,816			$ 17,910	811,774		$ 829,684
Issuance of common stock in Class A units, net of issuance costs of $65,816 (in shares)			1,194,000
Allocation of Class A unit proceeds to warrant liability				(328,350)		(328,350)
Issuance of Series A convertible preferred stock in Class B units, net of issuance costs of $267,231	$ 4	$ 3,234,769				3,234,773
Issuance of Series A convertible preferred stock in Class B units, net of issuance costs of $267,231 (in shares)	3,502
Allocation of Series A convertible preferred stock to warrants and beneficial conversion feature		(2,568,132)		1,284,066		(1,284,066)
Deemed Dividend on Series A convertible preferred stock		2,568,132		(2,568,132)
Conversion of Series A convertible preferred stock to common stock	$ (4)	3,234,769	$ 70,040	3,164,733
Conversion of Series A convertible preferred stock to common stock (in shares)	(3,502)		4,669,329
Reclassification of warrant liability upon exercise of common stock warrants			$ 22,362	1,870,798		1,893,160
Reclassification of warrant liability upon exercise of common stock warrants (in shares)			1,490,833
Issuance of common stock upon warrant exercise for cash			$ 43,225	706,008		749,233
Issuance of common stock upon warrant exercise for cash (in shares)			2,881,666
Amortization of commitment shares				(59,558)		(59,558)
Compensation cost for stock options granted to executives and employees				560,369		560,369
Net loss					(6,129,553)	(6,129,553)
Balance, ending at Sep. 30, 2017			$ 210,341	$ 65,785,758	$ (63,433,301)	$ 2,562,798
Balance, ending (in shares) at Sep. 30, 2017			14,022,741			14,022,741

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical)	9 Months Ended
	Sep. 30, 2017 USD ($)
Statement of Stockholders' Equity [Abstract]
Payments of stock issuance costs	$ 65,816
Payments of Series A Convertible Preferred Stock issuance costs	$ 267,231

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (6,129,553)	$ (3,845,235)
Compensation cost for stock options granted	560,369	650,053
Loss on disposal of intangible asset	17,695	163,333
Depreciation and amortization	102,074	227,387
Change in fair value of common stock warrants	280,747
Warrant financing expense	192,817
Changes in operating assets and liabilities:
Change in restricted cash		220,000
Prepaid expenses	14,195	72,542
Other assets	25,831	131,176
Accounts payable	126,079	(617,094)
Payroll liabilities	(142,312)	(524,288)
Accrued expenses	33,578	(451,196)
Other current liabilities	7,212	(45,242)
Net cash used in operating activities	(4,911,268)	(4,018,564)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of furniture and equipment		(5,023)
Net cash used in investing activities		(5,023)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of Class A and Class B Units, net of issuance costs	3,871,636
Proceeds from exercise of warrants	745,333
Proceeds from issuance of common stock, net of issuance costs		4,695,869
Net cash provided by financing activities	4,616,969	4,695,869
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(294,299)	672,282
CASH AND CASH EQUIVALENTS, BEGINNING BALANCE	3,027,962	3,715,895
CASH AND CASH EQUIVALENTS, ENDING BALANCE	2,733,663	4,388,177
SUPPLEMENTAL DISCLOSURES:
Interest paid		1,304
NONCASH INVESTING AND FINANCING ACTIVITIES:
Reclassification of warrant liability upon exercise of common stock warrants	1,893,160
Amount receivable for warrant exercise	3,900
Allocation of Class A and Class B Unit proceeds to warrant liability	1,612,413
Common stock issued as commitment fee under stock purchase agreement		198,523
Amortization of commitment shares	$ 59,558	$ 26,470

NATURE OF OPERATIONS

9 Months Ended

Sep. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

NATURE OF OPERATIONS

NOTE 1: NATURE OF OPERATIONS

Atossa Genetics Inc. (the “Company”) was incorporated on April 30, 2009 in the State of Delaware. The Company was formed to develop and market medical devices, laboratory tests and therapeutics to address breast health conditions. The Company’s fiscal year ends on December 31. The Company is focused on development of its pharmaceutical and drug delivery programs.

GOING CONCERN

9 Months Ended

Sep. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

GOING CONCERN

NOTE 2: GOING CONCERN

The Company’s consolidated financial statements are prepared using Generally Accepted Accounting Principles in the United States of America applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred net losses and negative operating cash flows since inception. For the nine months ended September 30, 2017, the Company recorded a net loss of approximately $6.1 million and used approximately $4.9 million of cash in operating activities. As of September 30, 2017, the Company had approximately $2.7 million in cash and cash equivalents and working capital of approximately $1.9 million. The Company has not yet established an ongoing source of revenue sufficient to cover its operating costs and allow it to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. The Company can give no assurances that any additional capital that it is able to obtain, if any, will be sufficient to meet its needs, or that any such capital will be obtained on acceptable terms. If the Company is unable to obtain adequate capital, it could be forced to cease operations or substantially curtail its activities. These conditions raise substantial doubt as to the Company’s ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts and classification of liabilities should the Company be unable to continue as a going concern.

Management’s plan to continue as a going concern is as follows. In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plans to obtain such resources for the Company include obtaining capital from the sale of its equity securities and short-term borrowings from banks, stockholders or other related party(ies), if needed. However, management cannot provide any assurance that the Company will be successful in accomplishing any of its plans.

As of the date of filing this quarterly report, we expect that our existing resources will be sufficient to fund our planned operations for the next 8-12 months; however, additional capital resources will be needed to fund operations longer-term.

The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraphs and eventually to secure other sources of financing and attain profitable operations.

On October 26, 2017, the Company entered into an underwriting agreement with Maxim Group LLC relating to a public offering of common stock which closed on October 30, 2017. The offering generated gross proceeds to the Company of approximately $5.5 million and net proceeds of $5.1 million after deducting underwriting discounts and commission.

SUMMARY OF ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

SUMMARY OF ACCOUNTING POLICIES

NOTE 3: SUMMARY OF ACCOUNTING POLICIES

Basis of Presentation:

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. They do not include all information and notes required by GAAP for complete financial statements. However, except as disclosed herein, there has been no material change in the information disclosed in the Notes to Consolidated Financial Statements included in the Annual Report on Form 10-K of the Company for the year ended December 31, 2016.

In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017.

On August 26, 2016, the Company completed a 1-for-15 reverse stock split of the shares of the Company’s common stock (the “Reverse Stock Split”). As a result of the Reverse Stock Split, every 15 shares of issued and outstanding common stock were combined into one issued and outstanding share of Common Stock, and the par value per share was changed to $.015 per share. No fractional shares were issued because of the Reverse Stock Split and any fractional shares that would otherwise have resulted from the Reverse Stock Split were paid in cash. The number of authorized shares of common stock was not reduced as a result of the Reverse Stock Split. The Company’s common stock began trading on a reverse stock split-adjusted basis on August 26, 2016. All share and per share data included in this report has been retroactively restated to reflect the Reverse Stock Split.

Use of Estimates:

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates.

Financial Instruments with Characteristics of Both Liabilities and Equity:

During the nine months ended September 30, 2017, the Company issued certain financial instruments, consisting of warrants to purchase common stock, which have characteristics of both liability and equity. Financial instruments such as warrants that are classified as liabilities are fair valued upon issuance and are remeasured at fair value at subsequent reporting periods with the resulting change in fair value recorded in “change in fair value of common stock warrants”. The fair value of warrants is estimated using valuation models that require the input of subjective assumptions including stock price volatility, expected life, and the probability of future equity issuances and their impact to the price protection feature.

Recently Issued Accounting Pronouncements:

In February 2016, Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Lease Accounting Topic 842. This ASU requires a lessee to recognize lease assets and liabilities on the balance sheet for all arrangements with terms longer than 12 months. The new standard applies a right-of-use (ROU) model that requires a lessee to record, for all leases with a lease term of more than 12 months, an asset representing its right to use the underlying asset for the lease term and a liability to make lease payments. The lease term is the non-cancellable period of the lease, and includes both periods covered by an option to extend the lease, if the lessee is reasonably certain to exercise that option, and periods covered by an option to terminate the lease, if the lessee is reasonably certain not to exercise that termination option. For leases with a lease term of 12 months or less, a practical expedient is available whereby a lessee may elect, by class of underlying asset, not to recognize an ROU asset or lease liability. A lessee making this accounting policy election would recognize lease expense over the term of the lease, generally in a straight-line pattern. The lessor accounting remains largely consistent with existing U.S. GAAP. The new standard takes effect in 2019 for public business entities. The Company has not adopted the provisions of ASU No. 2016-02. The Company is currently evaluating the impact of adopting ASU 2016-02 on its consolidated financial statements.

In April 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation, simplifying the accounting for share-based payment transactions including the income tax consequences, classification of awards as either equity or liabilities and classification on the statements of cash flows. Under the new standard, all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) should be recognized as income tax expense or benefit on the statements of income. We adopted ASU No. 2016-09 effective January 1, 2017. As a result of the adoption of this guidance, we made an accounting policy election to recognize the effect of forfeitures in compensation cost when they occur. There was an immaterial impact on results of operations and financial position and no impact on cash flows at adoption.

In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows, amending the presentation of restricted cash within the statement of cash flows. The new guidance requires that restricted cash be included within cash and cash equivalents on the statement of cash flows. The ASU is effective retrospectively for reporting periods beginning after December 15, 2017, with early adoption permitted. The Company has not yet adopted the provisions of ASU No. 2016-18 and does not expect it will have a material impact on the financial statements upon adoption.

In July 2017, the FASB issued ASU 2017-11, Accounting for Certain Financial Instruments with Down Round Features and Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception. Part I of this ASU addresses the complexity of accounting for certain financial instruments with down round features. Down round features are features of certain equity-linked instruments (or embedded features) that result in the strike price being reduced on the basis of future equity offerings. Current accounting guidance requires financial instruments with down round features to be accounted for at fair value. Part II of the Update applies only to nonpublic companies and is therefore not applicable to the Company. The amendments in Part I of the Update change the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. For freestanding equity-classified financial instruments, the amendments require entities that present earnings per share (EPS) in accordance with Topic 260 to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. This Update is effective for public entities for fiscal years beginning after December 15, 2018. Early adoption is permitted. The Company has not yet determined when it will adopt the provisions of this Update and has not yet determined the impact on its consolidated financial statements upon adoption.

PREPAID EXPENSES

9 Months Ended

Sep. 30, 2017

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Prepaid Expenses

NOTE 4: PREPAID EXPENSES

Prepaid expenses consisted of the following:

	September 30, 2017		December 31, 2016
Prepaid insurance	$	39,132	$	121,333
Trade show				20,000
Retainer and security deposits		14,218		14,218
Professional services		81,250
Financial exchange fees		10,500
Other		12,306		16,050
Total prepaid expenses	$	157,406	$	171,601

FURNITURE AND EQUIPMENT

9 Months Ended

Sep. 30, 2017

Property, Plant and Equipment [Abstract]

FURNITURE AND EQUIPMENT

NOTE 5: FURNITURE AND EQUIPMENT

Furniture and equipment consisted of the following:

	September 30, 2017			December 31, 2016
Furniture and equipment	$	170,917		$	210,528
Less: Accumulated depreciation		(156,482	)		(155,409	)
Total furniture and equipment, net	$	14,435		$	55,119

Depreciation expense for the three months ended September 30, 2017 and 2016 was $4,554 and $29,698, respectively, and $22,988, and $92,054, for the nine months ended September 30, 2017 and 2016, respectively.

INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

NOTE 6: INTANGIBLE ASSETS

Intangible assets consisted of the following:

	September 30, 2017			December 31, 2016
Patents	$	639,000		$	639,000
Software		113,540			113,540
Total intangible assets		752,540			752,540
Less: Accumulated amortization		(191,186	)		(112,100	)
Total intangible assets, net	$	561,354		$	640,440

Software amounted to $113,540 as of September 30, 2017 and December 31, 2016. The amortization period for the purchased software is three years. Amortization expense related to software for the three months ended September 30, 2017 and 2016 was $6,759 and $7,857, respectively, and was $26,373 and $23,572, for the nine months ended September 30, 2017 and 2016, respectively.

Patents amounted to $639,000 as of September 30, 2017 and December 31, 2016, and mainly consisted of patents acquired from Acueity on September 30, 2012 in an asset purchase transaction. Patent assets are amortized based on their determined useful life, and tested annually for impairment. The amortization period is from 7 to 12 years. Amortization expense related to patents was $17,571 and $37,253 for the three months ended September 30, 2017 and 2016, respectively and was $52,713 and $111,761 for the nine months ended September 30, 2017 and 2016, respectively.

Future estimated amortization expenses as of September 30, 2017 for the five succeeding years is as follows:

For the years ending December 31,	Amounts
2017 (includes the remainder of the year)	$	23,952
2018		73,433
2019		70,285
2020		70,285
2021		70,285
Thereafter		253,114
	$	561,354

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

PAYROLL LIABILITIES

9 Months Ended

Sep. 30, 2017

Payables and Accruals [Abstract]

PAYROLL LIABILITIES

NOTE 7: PAYROLL LIABILITIES

Payroll liabilities consisted of the following:

	September 30, 2017		December 31, 2016
Accrued bonus payable	$	423,000	$	609,337
Accrued vacation		140,384		94,514
Accrued payroll liabilities		64,203		66,048
Total payroll liabilities	$	627,587	$	769,899

STOCKHOLDERS' EQUITY

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

STOCKHOLDERS' EQUITY

NOTE 8: STOCKHOLDERS’ EQUITY

The Company is authorized to issue a total of 85,000,000 shares of stock consisting of 75,000,000 shares of common stock, par value $0.015 per share, and 10,000,000 shares of preferred stock, par value $0.001 per share. The Company has designated 750,000 shares of Series A Junior Participating Preferred Stock, par value $0.001 per share, and 4,000 shares of Series A convertible preferred stock, par value $0.001 per share through the filings of certificates of designation with the Delaware Secretary of State, none of which are issued and outstanding as of September 30, 2017.

On May 19, 2014, the Company adopted a stockholder rights agreement which provides that all stockholders of record on May 26, 2014 received a non-taxable distribution of one preferred stock purchase right for each share of the Company’s common stock held by such stockholder. Each right is attached to and trades with the associated share of common stock. The rights will become exercisable only if one of the following occurs: (1) a person becomes an “Acquiring Person” by acquiring beneficial ownership of 15% or more of the Company’s common stock (or, in the case of a person who beneficially owned 15% or more of the Company’s common stock on the date the stockholder rights agreement was executed, by acquiring beneficial ownership of additional shares representing 2.0% of the Company’s common stock then outstanding (excluding compensatory arrangements)), or (2) a person commences a tender offer that, if consummated, would result in such person becoming an Acquiring Person. If a person becomes an Acquiring Person, each right will entitle the holder, other than the Acquiring Person and certain related parties, to purchase a number of shares of the Company’s common stock with a market value that equals twice the exercise price of the right. The initial exercise price of each right is $15.00, so each holder (other than the Acquiring Person and certain related parties) exercising a right would be entitled to receive $30.00 worth of the Company’s common stock. If the Company is acquired in a merger or similar business combination transaction at any time after a person has become an Acquiring Person, each holder of a right (other than the Acquiring Person and certain related parties) will be entitled to purchase a similar amount of stock of the acquiring entity.

2016 Issuances of Additional Shares to Aspire Capital

On November 11, 2015, we terminated our prior agreement with Aspire Capital Fund, LLC (“Aspire Capital”) and entered into a new common stock purchase agreement. Concurrently with entering into the new purchase agreement, we also entered into a registration rights agreement with Aspire Capital in which we agreed to register 405,747 shares of our common stock.

During the first quarter of 2016, we sold a total of 405,747 shares of common stock to Aspire Capital under the stock purchase agreement dated November 11, 2015 with aggregate gross proceeds to the Company of $2,177,083, or net proceeds of $2,133,973 after deducting costs of the offering.

On May 25, 2016, the Company terminated the November 11, 2015 stock purchase agreement with Aspire Capital and entered into a new common stock purchase agreement with Aspire Capital which provided that, upon the terms and subject to the conditions and limitations set forth therein, Aspire Capital is committed to purchase up to an aggregate of $10.0 million of shares of our common stock over the 30-month term of the purchase agreement, subject to the terms and conditions set forth therein. Concurrently with entering into the purchase agreement, the Company also entered into a registration rights agreement with Aspire Capital, in which the Company agreed to file one or more registration statements, as permissible and necessary to register under the Securities Act of 1933, registering the sale of the shares of our common stock that have been and may be issued to Aspire Capital under the purchase agreement. As part of the stock purchase agreement we issued 49,736 common shares as a commitment fee. The value of the common shares issued as a commitment fee of $198,523 has been reflected as an addition to common stock and additional paid in capital of $746 and $197,777, respectively, which is amortized over the life of the stock purchase agreement. As of the date of filing this Quarterly Report with the SEC no shares of stock have been sold to Aspire Capital under the May 25, 2016 purchase agreement. In connection with our public offering that closed on April 3, 2017, we agreed not to utilize the financing arrangement with Aspire Capital for 90 days after that financing and on June 30, 2017 in connection with the temporary modification of our common stock warrants to allow for the net exercise of those warrants we agreed to extend this stand still for an additional 45 days. As of September 30, 2017, 467,650 shares are available for sale to Aspire Capital under the May 25, 2016 purchase agreement.

2016 Public Offering of Common Stock

In August 2016, the Company completed an underwritten public offering of 1,150,000 shares of common stock at a price per share of $2.50, with gross proceeds of $2,875,000 to the Company, or net proceeds of $2,561,896 after deducting underwriter discounts, commissions, non-accountable expense allowance and expense reimbursement.

2017 Public Offering of Class A and Class B Units Consisting of Common Stock, Series A Convertible Preferred Stock and Warrants

On March 28, 2017, the Company entered into an underwriting agreement with Aegis Capital Corp. relating to a public offering which closed on April 3, 2017. The offering generated gross proceeds to the Company of approximately $4.4 million and net proceeds of approximately $3.9 million after deducting underwriting discounts and commissions and other offering expenses paid by the Company.

The offering included 664,000 Class A Units at a public offering price of $0.75 per Class A Unit, which consisted of 664,000 shares of common stock and warrants to purchase 664,000 shares of common stock. The offering also included 3,502 Class B Units at a public offering price of $1,000 per Class B Unit, which consisted of 3,502 shares of Series A convertible preferred stock convertible into a total of 4,669,329 shares of common stock and warrants to purchase 4,669,329 shares of common stock. In addition, the underwriter exercised the over-allotment to purchase an additional 530,000 shares of common stock and warrants to purchase 530,000 shares of common stock, which are included in the gross proceeds of $4.4 million. The warrants had a per share exercise price of $0.9375, were exercisable immediately and were scheduled to expire five years from the date of issuance.

As of September 30, 2017, all of the warrants issued in the April 3, 2017 offering have been exercised and are no longer outstanding and all of the shares of Series A convertible preferred stock have been converted into shares of common stock.

Accounting Treatment

The Company allocated the proceeds from the sale of the Class A and Class B units to the separate securities issued. The Company determined that, on the date of issuance, the warrants were not considered indexed to its own stock because the underlying instruments were not “fixed-for-fixed” due to the price protection and fundamental transaction provisions and, therefore, the warrants should be accounted for as liabilities. At the end of each reporting period, the changes in fair value of the warrants during the period are recorded in non-operating income (expense) in the consolidated statement of operations.

The Company allocated the amount representing the fair value of the warrants at the date of issuance separately to the warrant liability and recorded the remaining proceeds as common stock, in the case of the Class A units, or as Series A convertible preferred stock, in the case of the Class B units. Due to the allocation of a portion of the proceeds to the warrants, the Series A convertible preferred stock contained a beneficial conversion feature upon issuance, which was recorded in the amount of $1,284,066 based on the intrinsic value of the beneficial conversion feature. The discount on the Series A convertible preferred stock of $1,284,066 caused by allocation of the proceeds to the warrant was recorded as a deemed dividend upon issuance of the Series A convertible preferred stock. As a result, total deemed dividends of $2,568,132 was recorded upon issuance of the Series A convertible preferred stock, which is reflected as an addition to net loss in the consolidated statement of operations to arrive at net loss applicable to common shareholders.

Exercise of 2017 Warrants

On June 29, 2017, the Company offered to modify the rights of the holders of the warrants issued in the public offering the Company completed on April 3, 2017. The temporary modification included (a) lowering the exercise price of the warrants to $0.26 per share, (b) setting the applicable volume-weighted average price (VWAP) at $0.52 per share, and (c) allowing for temporary cashless exercise of the warrants for all holders that accepted the temporary modification before 8:00 a.m. Eastern daylight time on June 30, 2017. Holders of warrants to purchase a total of approximately 3.0 million shares of Common Stock accepted the offer resulting in the cancellation of those warrants and the issuance by the Company of a total of approximately 1.5 million shares of Common Stock (including shares held in abeyance). The shares of Common Stock are registered under the Securities Act of 1933, as amended. If delivery of the shares of Common Stock pursuant to the foregoing would result in the holder exceeding the 4.99% “Beneficial Ownership Limitation” (as defined in the warrant) then the shares in excess of such 4.99% will be held in abeyance by the Company pending further instruction from the holder. In connection with the temporary modification, the Company agreed to extend the “Lock-up Period” of the underwriting agreement between the Company and Aegis Capital Corp., dated March 28, 2017, by 45 days and the Company agreed not to enter into any further amendments to the warrants during such extended Lock-up Period without the prior written consent of each holder. During the three months ended September 30, 2017, all remaining warrants were exercised for cash so that no warrants issued in the April 3, 2017 financing remain outstanding. Upon exercise of these warrants, the amount of the warrant liability at the date of exercise was reclassified from warrant liability to additional paid-in capital.

The following table summarizes the 2017 liability warrant activity:

	Shares			Weighted Average Exercise Price
Outstanding as of December 31, 2016
Warrants granted		5,863,332		$	0.9375
Warrants exercised		(5,863,332	)		0.26
Outstanding as of September 30, 2017				$

The Company estimated the fair value of the warrants using the Monte Carlo simulation (MCS) model, which is a type of income approach, where the current value of an asset is expressed as the sum of probable future cash flows across various scenarios and time frames discounted for risk and time. The significant assumptions include timing of future rounds of financing, timing and success rates of oncology clinical trials, and the probability of a merger and acquisition adjusted for a lack of marketability discount. The MCS model also includes a full term and an early conversion scenario that are each weighted at 50% in the final concluded fair value.

Inputs used in the valuation of the warrants at the issuance date of April 3, 2017 and June 30, 2017 are set forth below. All remaining warrants were exercised during the quarter and no warrants issued in the April 2017 financing remain outstanding at September 30, 2017.

Initial valuation
Common stock price	$	0.75
Exercise price	$	0.9375
Expected Volatility		50	%
Dividend Yield		0	%
Risk-Free Interest Rate		0.79% - 1.88	%
Expected Term (years)		0.24 - 5

June 30, 2017 valuation
Common stock price	$	0.50
Exercise price	$	0.26
Expected Volatility		50	%
Dividend Yield		0	%
Risk-Free Interest Rate		0.79-1.88	%
Expected Term (years)		0.08-4.76

Outstanding Warrants

As of September 30, 2017, warrants to purchase 380,561 shares of common stock were outstanding including:

	Outstanding Warrants to Purchase Shares		Exercise Price		Expiration Date

2011 private placement		283,470	$	18.75 - 24.00	May 8, 2018
2014 public offering		77,790		45.00	January 29, 2019
Placement agent fees for Company’s offerings		16,135		31.80 - 186.45	March - November, 2018
Outside consulting		3,166		63.60	January 14, 2018
		380,561

Conversion of Series A Convertible Preferred Stock

During the three months ended September 30, 2017, certain holders of the Series A convertible preferred stock exercised their conversion option and converted an aggregate of 839 shares of Series A convertible preferred stock into 1,118,665 shares of the Company’s common stock based on the conversion ratio of 1,333.33 shares of common stock for each share of Series A convertible preferred stock. During the nine months ended September 30, 2017, certain holders of the Series A convertible preferred stock exercised their conversion option and converted an aggregate of 3,502 shares of Series A convertible preferred stock into 4,669,329 shares of the Company’s common stock. As of September 30, 2017, no shares of Series A convertible preferred stock are outstanding.

FAIR VALUE OF FINANCIAL INSTRUMENTS

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

FAIR VALUE OF FINANCIAL INSTRUMENTS

NOTE 9: FAIR VALUE OF FINANCIAL INSTRUMENTS

Pursuant to the accounting guidance for fair value measurement and its subsequent updates, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. The accounting guidance establishes a hierarchy for inputs used in measuring fair value that minimizes the use of unobservable inputs by requiring the use of observable market data when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on active market data. Unobservable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances.

The fair value hierarchy is broken down into the three input levels summarized below:

● Level 1 —Valuations are based on quoted prices in active markets for identical assets or liabilities and readily accessible by us at the reporting date. Examples of assets and liabilities utilizing Level 1 inputs are certain money market funds, U.S. Treasuries and trading securities with quoted prices on active markets.

● Level 2 —Valuations based on inputs other than the quoted prices in active markets that are observable either directly or indirectly in active markets. Examples of assets and liabilities utilizing Level 2 inputs are U.S. government agency bonds, corporate bonds, commercial paper, certificates of deposit and over-the- counter derivatives.

● Level 3 —Valuations based on unobservable inputs in which there are little or no market data, which require the Company to develop its own assumptions.

There were no financial assets outstanding that were required to be measured at fair value at September 30, 2017 or December 31, 2016.

Warrants issued in the April 3, 2017 offering contained provisions that could have required the Company to settle the warrants in cash in an event outside the Company’s control or had price protection rights and were therefore accounted for as liabilities while they were outstanding, with changes in the fair values included in net loss for the respective periods. Because some of the inputs to the valuation model were either not observable or were not derived principally from or corroborated by observable market data by correlation or other means, the warrant liability was classified as Level 3 in the fair value hierarchy.

The following table summarizes the changes in the Company’s Level 3 warrant liability for the nine months ended September 30, 2017:

Warrant liability
Beginning balance	$
Issuances of warrants		1,612,413
Warrant exercises		(1,893,160	)
Change in fair value		280,747
Ending balance

There were no transfers between Level 1, Level 2 or Level 3 for the three and nine months ended September 30, 2017 or the year ended December 31, 2016.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

NET INCOME (LOSS) PER SHARE

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

NET INCOME (LOSS) PER SHARE

NOTE 10: NET INCOME (LOSS) PER SHARE

The Company accounts for and discloses net income (loss) per common share in accordance with FASB Accounting Standards Codification (“ASC”) Topic 260, Earnings Per Share. Basic net income (loss) per common share is computed by dividing net income (loss) attributable to common stockholders by the weighted average number of common shares outstanding. In addition, in computing the dilutive effect of convertible securities, the numerator is adjusted to add back any convertible preferred dividends. Diluted net income (loss) per common share is computed by dividing net income (loss) attributable to common stockholders by the weighted average number of common shares that would have been outstanding during the period assuming the issuance of common shares for all potential dilutive common shares outstanding. Potential common shares consist of shares issuable upon the conversion of Series A convertible preferred stock, and potential future exercises of outstanding stock options and common stock warrants. Because the inclusion of potential common shares would be anti-dilutive for all periods presented except for the three months ended September 30, 2016, diluted net loss per common share is the same as basic net loss per common share for those periods. Diluted net income per share was the same as basic net income per share for the three months end September 30, 2016 as the impact of potential common shares included in earnings per share was insignificant.

The following table summarizes the Company’s calculation of net income (loss) per common share:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017			2016
Net income (loss) Per share
Numerator
Net income (loss)	$	(2,184,510	)	$	204,689	$	(6,129,553	)	$	(3,845,235	)
Deemed dividend attributable to preferred stock							(2,568,132	)
Net income (loss) attributable to common shareholders	$	(2,184,510	)	$	204,689	$	(8,697,685	)	$	(3,845,235	)
Denominator
Weighted average common shares outstanding		12,411,145			3,024,393		7,886,210			2,665,904
Basic and diluted net income (loss) per share	$	(0.18	)	$	0.07	$	(1.10	)	$	(1.44	)

The following table sets forth the number of potential common shares excluded from the calculation of net income (loss) per diluted share for the three months and nine months ended September 30, 2017 and 2016 because the effect of them would be anti-dilutive:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Options to purchase common stock		2,118,021		390,424		1,206,057		390,424
Series A convertible preferred stock		509,762				895,809
Warrants to purchase common stock		1,660,379		402,228		2,726,751		402,228
Total		4,288,162		792,652		4,828,617		792,652

INCOME TAXES

9 Months Ended

Sep. 30, 2017

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 11: INCOME TAXES

Deferred income tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial reporting and tax bases of assets and liabilities and are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.

As a result of the Company’s cumulative losses, management has concluded that a full valuation allowance against the Company’s net deferred tax assets is appropriate. No income tax liabilities existed as of September 30, 2017 and December 31, 2016 due to the Company’s continuing operating losses.

CONCENTRATION OF CREDIT RISK

9 Months Ended

Sep. 30, 2017

Risks and Uncertainties [Abstract]

CONCENTRATION OF CREDIT RISK

NOTE 12: CONCENTRATION OF CREDIT RISK

Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash deposits. Accounts at each institution are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. At September 30, 2017 and December 31, 2016, the Company had $2,483,663 and $2,777,962 in excess of the FDIC insured limit, respectively.

COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 13: COMMITMENTS AND CONTINGENCIES

Lease Commitments

The future minimum lease payments due subsequent to September 30, 2017 under all non-cancelable operating and capital leases for the next five years are as follows:

Year Ending December 31,	Operating Leases Amount
2017 (remainder of year)	$	7,395
2018		22,185
Total minimum lease payments	$	29,580

The total rent expense for the three months ended September 30, 2017 and 2016 was $7,395 and $87,315, respectively, and $25,775 and $238,565 for the nine months ended September 30, 2017 and 2016, respectively. Rent expense was included in general and administrative expenses for both years.

Litigation and Contingencies

On October 10, 2013, a putative securities class action complaint, captioned Cook v. Atossa Genetics, Inc., et al., No. 2:13-cv-01836-RSM, was filed in the United States District Court for the Western District of Washington against us, certain of our directors and officers and the underwriters of our November 2012 initial public offering. The complaint alleged that all defendants violated Sections 11 and 12(a)(2), and that we and certain of our directors and officers violated Section 15, of the Securities Act by making material false and misleading statements and omissions in the offering’s registration statement, and that we and certain of our directors and officers violated Sections 10(b) and 20A of the Exchange Act and SEC Rule 10b-5 promulgated thereunder by making false and misleading statements and omissions in the registration statement and in certain of our subsequent press releases and SEC filings with respect to our NAF specimen collection process, our ForeCYTE Breast Health Test and our MASCT device. The complaint sought, on behalf of persons who purchased our common stock between November 8, 2012 and October 4, 2013, inclusive, damages of an unspecific amount.

On February 14, 2014, the district court appointed plaintiffs Miko Levi, Bandar Almosa and Gregory Harrison (collectively, the “Levi Group”) as lead plaintiffs, and approved their selection of co-lead counsel and liaison counsel. The Court also amended the caption of the case to read In re Atossa Genetics, Inc. Securities Litigation No. 2:13-cv-01836-RSM. An amended complaint was filed on April 15, 2014. The Company and other defendants filed motions to dismiss the amended complaint on May 30, 2014. On October 6, 2014 the Court granted defendants’ motion dismissing all claims against Atossa and all other defendants. On October 30, 2014, the Court entered a final order of dismissal. On November 3, 2014, plaintiffs filed a notice of appeal with the Court and appealed the Court’s dismissal order to the U.S. Court of Appeals for the Ninth Circuit. On August 18, 2017, the Ninth Circuit affirmed in part and reversed in part the district court’s judgment.

On September 11, 2017, the Ninth Circuit entered an order and mandate remanding the case to the United States District Court for the Western District of Washington. On October 19, 2017, plaintiffs filed an amended complaint that conforms to the ruling by the Ninth Circuit. Defendants’ answer to the amended complaint is due December 8, 2017. Since the claims under Sections 11, 12(a)(2) and 15 were dismissed by the district court and not appealed, the amended complaint only alleges violations of Section 10(b) and 20A of the Exchange Act and SEC Rule 10b-5 promulgated thereunder against the company and one officer. All other claims and defendants have been dismissed. The alleged class period in the amended complaint is December 20, 2012 through October 4, 2013.

The Company believes this lawsuit is without merit and plans to defend itself vigorously; however, failure by the Company to obtain a favorable resolution of the claims set forth in the complaint could have a material adverse effect on the Company’s business, results of operations and financial condition. Currently, the amount of such material adverse effect cannot be reasonably estimated, and no provision or liability has been recorded for these claims as of September 30, 2017. The costs associated with defending and resolving the lawsuit and ultimate outcome cannot be predicted. These matters are subject to inherent uncertainties and the actual cost, as well as the distraction from the conduct of the Company’s business, will depend upon many unknown factors and management’s view of these may change in the future.

STOCK BASED COMPENSATION

9 Months Ended

Sep. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK BASED COMPENSATION

NOTE 14: STOCK BASED COMPENSATION

Stock Options and Incentive Plan

On September 28, 2010, the Board of Directors approved the adoption of the 2010 Stock Option and Incentive Plan (“2010 Plan”) to provide for the grant of equity-based awards to employees, officers, non-employee directors and other key persons providing services to the Company. Awards of incentive options may be granted under the 2010 Plan until September 2020. No other awards may be granted under the 2010 Plan after the date that is 10 years from the date of stockholder approval. An aggregate of 66,667 shares were initially reserved for issuance in connection with awards granted under the 2010 Plan and on May 18, 2016, an additional 133,333 shares were reserved for issuance under the 2010 Plan. On May 9, 2017, the stockholders approved an additional 1,500,000 shares for issuance under the 2010 Plan.

The following table presents the automatic additions to the 2010 Plan since inception pursuant to the “evergreen” terms of the 2010 Plan:

January 1,	Number of shares
2012		30,018
2013		34,452
2014		49,532
2015		65,557
2016		220,419
2017		151,477
Total additional shares		551,455

The Company granted 0 and 1,716,323 options to purchase shares of common stock during the three and nine months ended September 30, 2017. No options were exercised during the three or nine months ended September 30, 2017. There are 100,456 shares available for grant under the 2010 Plan as of September 30, 2017.

Compensation costs associated with the Company’s stock options are recognized, based on the grant-date fair values of these options, over the requisite service period, or vesting period. Accordingly, the Company recognized stock based compensation expense of $224,254 and $257,389 for the three months ended September 30, 2017 and 2016, respectively, and $560,369 and $650,053 for the nine months ended September 30, 2017 and 2016, respectively. The fair value of stock options granted for the nine months ended September 30, 2017 and 2016 was calculated using the Black-Scholes option-pricing model applying the following assumptions:

	Period ended September 30,
	2017		2016

Risk free interest rate		1.86% - 2.04%		1.48% - 1.55%
Expected term		5.32- 6.36 years		5.58 - 6.06 years

Dividend yield		- %		- %
Expected volatility		112.86% - 114.19%		115.52% - 115.58%

Options issued and outstanding as of September 30, 2017 and their activities during the nine months then ended are as follows:

	Number of Underlying Shares			Weighted- Average Exercise Price Per Share		Weighted- Average Contractual Life Remaining in Years		Aggregate Intrinsic Value
Outstanding as of January 1, 2017		378,924		$	26.25			$
Granted		1,716,323			0.47
Forfeited		(3,167	)		15.00
Expired		(19,081	)		25.05
Outstanding as of September 30, 2017		2,072,999			4.10		9.29	$	102,679
Exercisable as of September 30, 2017		418,636			16.39		8.44	$	9,645
Vested and expected to vest		2,072,999		$	4.10		9.29	$	102,679

At September 30, 2017, there were 1,651,052 unvested options outstanding and the related unrecognized total compensation cost associated with these options was approximately $1,203,000. This expense is expected to be recognized over a weighted-average period of 2.0 years.

SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2017

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 15: SUBSEQUENT EVENTS

On October 26, 2017, the Company entered into an underwriting agreement with Maxim Group LLC. relating to a public offering of common stock which closed on October 30, 2017. The offering generated gross proceeds to the Company of approximately $5.5 million and net proceeds of $5.1 million after deducting underwriting discounts and commission.

The offering included 11,500,000 shares of common stock at a public offering price of $0.44 per share. In addition, the underwriter exercised the over-allotment to purchase an additional 1,000,000 shares of common stock, which are included in the estimated gross proceeds of $5.5 million.

SUMMARY OF ACCOUNTING POLICIES (Policies)	9 Months Ended
SUMMARY OF ACCOUNTING POLICIES (Policies)	Sep. 30, 2017
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation: The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. They do not include all information and notes required by GAAP for complete financial statements. However, except as disclosed herein, there has been no material change in the information disclosed in the Notes to Consolidated Financial Statements included in the Annual Report on Form 10-K of the Company for the year ended December 31, 2016. In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. On August 26, 2016, the Company completed a 1-for-15 reverse stock split of the shares of the Company’s common stock (the “Reverse Stock Split”). As a result of the Reverse Stock Split, every 15 shares of issued and outstanding common stock were combined into one issued and outstanding share of Common Stock, and the par value per share was changed to $.015 per share. No fractional shares were issued because of the Reverse Stock Split and any fractional shares that would otherwise have resulted from the Reverse Stock Split were paid in cash. The number of authorized shares of common stock was not reduced as a result of the Reverse Stock Split. The Company’s common stock began trading on a reverse stock split-adjusted basis on August 26, 2016. All share and per share data included in this report has been retroactively restated to reflect the Reverse Stock Split.
Use of Estimates	Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates.
Financial Instruments with Characteristics of Both Liabilities and Equity:	Financial Instruments with Characteristics of Both Liabilities and Equity: During the nine months ended September 30, 2017, the Company issued certain financial instruments, consisting of warrants to purchase common stock, which have characteristics of both liability and equity. Financial instruments such as warrants that are classified as liabilities are fair valued upon issuance and are remeasured at fair value at subsequent reporting periods with the resulting change in fair value recorded in “change in fair value of common stock warrants”. The fair value of warrants is estimated using valuation models that require the input of subjective assumptions including stock price volatility, expected life, and the probability of future equity issuances and their impact to the price protection feature.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements: In February 2016, Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Lease Accounting Topic 842. This ASU requires a lessee to recognize lease assets and liabilities on the balance sheet for all arrangements with terms longer than 12 months. The new standard applies a right-of-use (ROU) model that requires a lessee to record, for all leases with a lease term of more than 12 months, an asset representing its right to use the underlying asset for the lease term and a liability to make lease payments. The lease term is the non-cancellable period of the lease, and includes both periods covered by an option to extend the lease, if the lessee is reasonably certain to exercise that option, and periods covered by an option to terminate the lease, if the lessee is reasonably certain not to exercise that termination option. For leases with a lease term of 12 months or less, a practical expedient is available whereby a lessee may elect, by class of underlying asset, not to recognize an ROU asset or lease liability. A lessee making this accounting policy election would recognize lease expense over the term of the lease, generally in a straight-line pattern. The lessor accounting remains largely consistent with existing U.S. GAAP. The new standard takes effect in 2019 for public business entities. The Company has not adopted the provisions of ASU No. 2016-02. The Company is currently evaluating the impact of adopting ASU 2016-02 on its consolidated financial statements. In April 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation, simplifying the accounting for share-based payment transactions including the income tax consequences, classification of awards as either equity or liabilities and classification on the statements of cash flows. Under the new standard, all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) should be recognized as income tax expense or benefit on the statements of income. We adopted ASU No. 2016-09 effective January 1, 2017. As a result of the adoption of this guidance, we made an accounting policy election to recognize the effect of forfeitures in compensation cost when they occur. There was an immaterial impact on results of operations and financial position and no impact on cash flows at adoption. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows, amending the presentation of restricted cash within the statement of cash flows. The new guidance requires that restricted cash be included within cash and cash equivalents on the statement of cash flows. The ASU is effective retrospectively for reporting periods beginning after December 15, 2017, with early adoption permitted. The Company has not yet adopted the provisions of ASU No. 2016-18 and does not expect it will have a material impact on the financial statements upon adoption. In July 2017, the FASB issued ASU 2017-11, Accounting for Certain Financial Instruments with Down Round Features and Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception. Part I of this ASU addresses the complexity of accounting for certain financial instruments with down round features. Down round features are features of certain equity-linked instruments (or embedded features) that result in the strike price being reduced on the basis of future equity offerings. Current accounting guidance requires financial instruments with down round features to be accounted for at fair value. Part II of the Update applies only to nonpublic companies and is therefore not applicable to the Company. The amendments in Part I of the Update change the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. For freestanding equity-classified financial instruments, the amendments require entities that present earnings per share (EPS) in accordance with Topic 260 to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. This Update is effective for public entities for fiscal years beginning after December 15, 2018. Early adoption is permitted. The Company has not yet determined when it will adopt the provisions of this Update and has not yet determined the impact on its consolidated financial statements upon adoption.

PREPAID EXPENSES (Tables)

9 Months Ended

Sep. 30, 2017

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of prepaid expenses

Prepaid expenses consisted of the following:

	September 30, 2017		December 31, 2016
Prepaid insurance	$	39,132	$	121,333
Trade show				20,000
Retainer and security deposits		14,218		14,218
Professional services		81,250
Financial exchange fees		10,500
Other		12,306		16,050
Total prepaid expenses	$	157,406	$	171,601

FURNITURE AND EQUIPMENT (Tables)

9 Months Ended

Sep. 30, 2017

Property, Plant and Equipment [Abstract]

Schedule of furniture and equipment

Furniture and equipment consisted of the following:

	September 30, 2017			December 31, 2016
Furniture and equipment	$	170,917		$	210,528
Less: Accumulated depreciation		(156,482	)		(155,409	)
Total furniture and equipment, net	$	14,435		$	55,119

INTANGIBLE ASSETS (Tables)

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of intangible assets

Intangible assets consisted of the following:

	September 30, 2017			December 31, 2016
Patents	$	639,000		$	639,000
Software		113,540			113,540
Total intangible assets		752,540			752,540
Less: Accumulated amortization		(191,186	)		(112,100	)
Total intangible assets, net	$	561,354		$	640,440

Schedule of future amortization expense

Future estimated amortization expenses as of September 30, 2017 for the five succeeding years is as follows:

For the years ending December 31,	Amounts
2017 (includes the remainder of the year)	$	23,952
2018		73,433
2019		70,285
2020		70,285
2021		70,285
Thereafter		253,114
	$	561,354

PAYROLL LIABILITIES (Tables)

9 Months Ended

Sep. 30, 2017

Payables and Accruals [Abstract]

Schedule of payroll liabilities

Payroll liabilities consisted of the following:

	September 30, 2017		December 31, 2016
Accrued bonus payable	$	423,000	$	609,337
Accrued vacation		140,384		94,514
Accrued payroll liabilities		64,203		66,048
Total payroll liabilities	$	627,587	$	769,899

STOCKHOLDERS' EQUITY (Tables)

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Schedule of warrant activity

The following table summarizes the 2017 liability warrant activity:

	Shares			Weighted Average Exercise Price
Outstanding as of December 31, 2016
Warrants granted		5,863,332		$	0.9375
Warrants exercised		(5,863,332	)		0.26
Warrants cancelled
Outstanding as of September 30, 2017				$

Schedule of valuation of the warrants

All remaining warrants were exercised during the quarter and no warrants issued in the April 2017 financing remain outstanding at September 30, 2017.

Initial valuation
Common stock price	$	0.75
Exercise price	$	0.9375
Expected Volatility		50	%
Dividend Yield		0	%
Risk-Free Interest Rate		0.79% - 1.88	%
Expected Term (years)		0.24 - 5

June 30, 2017 valuation
Common stock price	$	0.50
Exercise price	$	0.26
Expected Volatility		50	%
Dividend Yield		0	%
Risk-Free Interest Rate		0.79-1.88	%
Expected Term (years)		0.08-4.76

Schedule of warrants

As of September 30, 2017, warrants to purchase 380,561 shares of common stock were outstanding including:

	Outstanding Warrants to Purchase Shares		Exercise Price		Expiration Date

2011 private placement		283,470	$	18.75 - 24.00	May 8, 2018

2014 public offering		77,790		45.00	January 29, 2019
Placement agent fees for Company’s offerings		16,135		31.80 - 186.45	March - November, 2018
Outside consulting		3,166		63.60	January 14, 2018

		380,561

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

+ References + Details

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Schedule of Level 3 warrant liability

The following table summarizes the changes in the Company’s Level 3 warrant liability for the nine months ended September 30, 2017:

Warrant liability
Beginning balance	$
Issuances of warrants		1,612,413
Warrant exercises		(1,893,160	)
Change in fair value		280,747
Ending balance

NET INCOME (LOSS) PER SHARE (Tables)

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Schedule of earning per share

The following table summarizes the Company’s calculation of net income (loss) per common share:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017			2016
Net income (loss) Per share
Numerator
Net income (loss)	$	(2,184,510	)	$	204,689	$	(6,129,553	)	$	(3,845,235	)
Deemed dividend attributable to preferred stock							(2,568,132	)
Net income (loss) attributable to common shareholders	$	(2,184,510	)	$	204,689	$	(8,697,685	)	$	(3,845,235	)
Denominator
Weighted average common shares outstanding		12,411,145			3,024,393		7,886,210			2,665,904
Basic and diluted net income (loss) per share	$	(0.18	)	$	0.07	$	(1.10	)	$	(1.44	)

Schedule of antidilutive securities

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Options to purchase common stock		2,118,021		390,424		1,206,057		390,424
Series A convertible preferred stock		509,762				895,809
Warrants to purchase common stock		1,660,379		402,228		2,726,751		402,228
Total		4,288,162		792,652		4,828,617		792,652

COMMITMENTS AND CONTINGENCIES (Tables)

9 Months Ended

Sep. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Schedule of future minimum lease payments under all non-cancelable operating and capital leases

The future minimum lease payments due subsequent to September 30, 2017 under all non-cancelable operating and capital leases for the next five years are as follows:

Year Ending December 31,	Operating Leases Amount
2017 (remainder of year)	$	7,395
2018		22,185
Total minimum lease payments	$	29,580

STOCK BASED COMPENSATION (Tables)

9 Months Ended

Sep. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of automatic additions to the 2010 Plan

The following table presents the automatic additions to the 2010 Plan since inception pursuant to the “evergreen” terms of the 2010 Plan:

January 1,	Number of shares
2012		30,018
2013		34,452
2014		49,532
2015		65,557
2016		220,419
2017		151,477
Total additional shares		551,455

Schedule of stock options valuation assumption

The fair value of stock options granted for the nine months ended September 30, 2017 and 2016 was calculated using the Black-Scholes option-pricing model applying the following assumptions:

	Period ended September 30,
	2017		2016

Risk free interest rate		1.86% - 2.04%		1.48% - 1.55%
Expected term		5.32- 6.36 years		5.58 - 6.06 years

Dividend yield		- %		- %
Expected volatility		112.86% - 114.19%		115.52% - 115.58%

Schedule of stock options

Options issued and outstanding as of September 30, 2017 and their activities during the nine months then ended are as follows:

	Number of Underlying Shares			Weighted- Average Exercise Price Per Share		Weighted- Average Contractual Life Remaining in Years		Aggregate Intrinsic Value
Outstanding as of January 1, 2017		378,924		$	26.25			$
Granted		1,716,323			0.47
Forfeited		(3,167	)		15.00
Expired		(19,081	)		25.05
Outstanding as of September 30, 2017		2,072,999			4.10		9.29	$	102,679
Exercisable as of September 30, 2017		418,636			16.39		8.44	$	9,645
Vested and expected to vest		2,072,999		$	4.10		9.29	$	102,679

GOING CONCERN (Details Narrative) - USD ($)		3 Months Ended		9 Months Ended
GOING CONCERN (Details Narrative) - USD ($)	Oct. 26, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016	Dec. 31, 2015
Net loss		$ 2,184,510	$ (204,689)	$ 6,129,553	$ 3,845,235
Net cash provided by (used in) operating activities				(4,911,268)	(4,018,564)
Cash and cash equivalents		2,733,663	$ 4,388,177	2,733,663	$ 4,388,177	$ 3,027,962	$ 3,715,895
Working capital		$ 1,900,000		$ 1,900,000
Subsequent Event [Member] \| Underwriting Agreement [Member] \| Maxim Group LLC [Member] \| 2017 Public Offering [Member]
Gross proceeds from public offering	$ 5,500,000
Net proceeds from public offering	$ 5,100,000

SUMMARY OF ACCOUNTING POLICIES (Details Narrative) - $ / shares	Aug. 26, 2016	Sep. 30, 2017	May 31, 2017	Dec. 31, 2016
Common stock, par or stated value (in dollars per share)		$ 0.015		$ 0.015
Common stock, outstanding		14,022,741		3,786,913
Reverse Stock Split [Member]
Description of reverse stock split	<p><font style="font: 10pt Times New Roman, Times, Serif">The Company completed a 1-for-15 reverse stock split of the shares of the Company’s common stock (the “Reverse Stock Split”). As a result of the Reverse Stock Split, every 15 shares of issued and outstanding common stock were combined into one issued and outstanding share of Common Stock, and the par value per share was changed to $.015 per share.</font></p>
Common stock, par or stated value (in dollars per share)	$ 0.015
Common stock, outstanding			0

PREPAID EXPENSES (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid insurance	$ 39,132	$ 121,333
Trade show		20,000
Retainer and security deposits	14,218	14,218
Professional services	81,250
Financial exchange fees	10,500
Other	12,306	16,050
Total prepaid expenses	$ 157,406	$ 171,601

FURNITURE AND EQUIPMENT (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Furniture and equipment	$ 170,917	$ 210,528
Less: Accumulated depreciation	(156,482)	(155,409)
Total furniture and equipment, net	$ 14,435	$ 55,119

FURNITURE AND EQUIPMENT (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
FURNITURE AND EQUIPMENT (Details Narrative) - USD ($)	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 4,554	$ 29,698	$ 22,988	$ 92,054

INTANGIBLE ASSETS (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Total intangible assets	$ 752,540	$ 752,540
Less: Accumulated amortization	(191,186)	(112,100)
Total intangible assets, net	561,354	640,440
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Total intangible assets	639,000	639,000
Software [Member]
Finite-Lived Intangible Assets [Line Items]
Total intangible assets	$ 113,540	$ 113,540

INTANGIBLE ASSETS (Details 1) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
2017 (includes the remainder of the year)	$ 23,952
2018	73,433
2019	70,285
2020	70,285
2021	70,285
Thereafter	253,114
Total intangible assets, net	$ 561,354	$ 640,440

INTANGIBLE ASSETS (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
INTANGIBLE ASSETS (Details Narrative) - USD ($)	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Software [Member]
Finite-lived intangible assets acquired			$ 113,540		$ 113,540
Useful life			3 years
Amortization expense	$ 6,759	$ 7,857	$ 26,373	$ 23,572
Patents [Member]
Finite-lived intangible assets acquired			639,000		$ 639,000
Amortization expense	$ 17,571	$ 37,253	$ 52,713	$ 111,761
Patents [Member] \| Minimum [Member]
Useful life			7 years
Patents [Member] \| Maximum [Member]
Useful life			12 years

PAYROLL LIABILITIES (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Payables and Accruals [Abstract]
Accrued bonus payable	$ 423,000	$ 609,337
Accrued vacation	140,384	94,514
Accrued payroll liabilities	64,203	66,048
Total payroll liabilities	$ 627,587	$ 769,899

STOCKHOLDERS' EQUITY (Details)	9 Months Ended
STOCKHOLDERS' EQUITY (Details)	Sep. 30, 2017 $ / shares shares
Class of Warrant or Right Number of Securities called by Warrants or Rights [Roll Forward]
Outstanding at beginning \| shares
Warrants Granted \| shares	5,863,332
Warrants Exercised \| shares	(5,863,332)
Warrants cancelled \| shares
Class of Warrant or Right Exercise Price of Warrants or Rights [Roll Forward]
Outstanding at beginning \| $ / shares
Warrants Granted \| $ / shares	0.9375
Warrants Exercised \| $ / shares	0.26
Warrants cancelled \| $ / shares

STOCKHOLDERS' EQUITY (Details 1) - $ / shares		6 Months Ended
STOCKHOLDERS' EQUITY (Details 1) - $ / shares	Apr. 03, 2017	Jun. 30, 2017	Dec. 31, 2016
Common stock price	$ 0.75	$ 0.50
Exercise price	$ 0.9375	$ 0.26
Expected Volatility	50.00%	50.00%
Dividend Yield	0.00%	0.00%
Minimum [Member]
Risk-Free Interest Rate	0.79%	0.79%
Expected Term (years)	2 months 26 days	28 days
Maximum [Member]
Risk-Free Interest Rate	1.88%	1.88%
Expected Term (years)	5 years	4 years 9 months 3 days

STOCKHOLDERS' EQUITY (Details 2) - $ / shares	9 Months Ended
STOCKHOLDERS' EQUITY (Details 2) - $ / shares	Sep. 30, 2017	Jun. 30, 2017	Apr. 03, 2017	Dec. 31, 2016
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Outstanding	380,561
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 0.26	$ 0.9375
2011 Private Placement [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Outstanding	283,470
Expiration Dates of Class of Warrant or Right Not Date From Which Warrants or Rights Exercisable	May 08, 2018
2011 Private Placement [Member] \| Minimum [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 18.75
2011 Private Placement [Member] \| Maximum [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 24.00
2014 Public Offering [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Outstanding	77,790
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 45.00
Expiration Dates of Class of Warrant or Right Not Date From Which Warrants or Rights Exercisable	Jan. 29, 2019
Placement Agent Fee [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Outstanding	16,135
Placement Agent Fee [Member] \| Minimum [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 31.80
Expiration Dates of Class of Warrant or Right Not Date From Which Warrants or Rights Exercisable	Mar. 31, 2018
Placement Agent Fee [Member] \| Maximum [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 186.45
Expiration Dates of Class of Warrant or Right Not Date From Which Warrants or Rights Exercisable	Nov. 30, 2018
Outside Consulting Firm [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Outstanding	3,166
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 63.60
Expiration Dates of Class of Warrant or Right Not Date From Which Warrants or Rights Exercisable	Jan. 14, 2018

STOCKHOLDERS' EQUITY (Details Narrative) - USD ($)					1 Months Ended	3 Months Ended		9 Months Ended
STOCKHOLDERS' EQUITY (Details Narrative) - USD ($)	Jun. 29, 2017	Apr. 03, 2017	Mar. 28, 2017	May 25, 2016	Aug. 31, 2016	Sep. 30, 2017	Mar. 31, 2016	Sep. 30, 2017	Sep. 30, 2016	Jun. 30, 2017	Dec. 31, 2016	Nov. 11, 2015	May 19, 2014
Number of total shares authorized						85,000,000		85,000,000
Common stock, authorized						75,000,000		75,000,000			75,000,000
Common stock, par or stated value (in dollars per share)						$ 0.015		$ 0.015			$ 0.015
Preferred stock, authorized						10,000,000		10,000,000			10,000,000
Preferred stock, par or stated value (in dollars per share)						$ 0.001		$ 0.001			$ 0.001
Preferred stock, issued						0		0			0
Preferred stock, outstanding						0		0			0
Number of new shares issued, value								$ 829,684
Proceeds from issuance of common stock									$ 4,695,869
Share price (in dollars per share)		$ 0.75								$ 0.50
Initial exercise price (in dollars per share)		$ 0.9375								$ 0.26
Number of shares conversion						1,333.33		1,333.33
Allocation of Series A convertible preferred stock to warrants and beneficial conversion feature								$ (1,284,066)
Conversion of Series A Convertible Preferred Stock to common stock
2016 Public Offering [Member]
Number of new shares issued, value					$ 2,875,000
Proceeds from issuance of common stock					$ 2,561,896
Share price (in dollars per share)					$ 2.50
Number of new shares issued					1,150,000
Additional Paid-in Capital [Member]
Number of new shares issued, value								811,774
Allocation of Series A convertible preferred stock to warrants and beneficial conversion feature								1,284,066
Deemed Dividend on Series A Convertible Preferred Stock								(2,568,132)
Conversion of Series A Convertible Preferred Stock to common stock								3,164,733
Common Stock [Member]
Number of new shares issued, value								$ 17,910
Number of new shares issued								1,194,000
Conversion of Series A Convertible Preferred Stock to common stock								$ 70,040
Conversion of Series A Convertible Preferred Stock to common stock (in shares)						1,118,665		4,669,329
Underwriting Agreement [Member] \| 2017 Public Offering [Member] \| Aegis Capital Corp [Member]
Proceeds from issuance initial public offering		$ 4,400,000	$ 4,400,000
Net proceeds from issuance initial public offering			$ 3,900,000
Underwriting Agreement [Member] \| Common Stock and Warrants [Member] \| Over-Allotment Option [Member] \| Aegis Capital Corp [Member]
Proceeds from issuance initial public offering		$ 4,400,000
Number of shares included in offering		530,000
Number of new shares issued		530,000
Initial exercise price (in dollars per share)		$ 0.9375				$ 0.26		$ 0.26
Warrant term		5 years
Aspire Capital Fund LLC [Member] \| Stock Purchase Agreement [Member]
Proceeds from issuance of common stock							$ 2,177,083
Net proceeds from issuance of common stock							$ 2,133,973
Number of shares issued for services				49,736
Number of shares issued for services, value				$ 746
Number of new shares issued							405,747	467,650
Aspire Capital Fund LLC [Member] \| Stock Purchase Agreement [Member] \| Additional Paid-in Capital [Member]
Number of shares issued for services, value				197,777
Issuance of common shares as commitment fees				198,523
Aspire Capital Fund LLC [Member] \| New Common Stock Purchase Agreement [Member]
Shares agreed to register in common stock												405,747
Stock committed				$ 10,000,000
Beneficial Owner [Member]
Ownership percentage													15.00%
Percentage of common stock outstanding													2.00%
Entitled to receive worth of common stock													$ 30.00
Initial exercise price (in dollars per share)													$ 15.00
Series A Preferred Stock [Member]
Preferred stock, authorized						750,000		750,000
Preferred stock, par or stated value (in dollars per share)						$ 0.001		$ 0.001
Preferred stock, issued						0		0
Preferred stock, outstanding						0		0
Series A Convertible Preferred Stock Convertible [Member]
Preferred stock, authorized						4,000		4,000
Preferred stock, par or stated value (in dollars per share)						$ 0.001		$ 0.001
Description of preferred stock conversion								<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"><font style="font: 10pt Times New Roman, Times, Serif">Each share of the Series A Preferred is convertible into 1,333.33 shares of our Common Stock (subject to adjustment as provided in the related certificate of designation of preferences, rights and limitations). Holders of Series A Preferred are prohibited from converting Series A Preferred into shares of our common stock if, as a result of such conversion, the holder, together with its affiliates, would own more than 4.99% of the total number of shares of our Common Stock then issued and outstanding. However, any holder may increase or decrease such percentage to any other percentage not in excess of 9.99%, provided that any increase in such percentage shall not be effective until 61 days after such notice to us.</font></p>
Conversion of Series A Convertible Preferred Stock to common stock (in shares)						839		3,502
Description of conversion ratio						<p><font style="font: 10pt Times New Roman, Times, Serif">Conversion ratio of 1,333.33 shares of common stock for each share of Series A Convertible Preferred Stock.</font></p>
Series A Convertible Preferred Stock Convertible [Member] \| Underwriting Agreement [Member] \| 2017 Public Offering [Member] \| Aegis Capital Corp [Member]
Number of shares included in offering		3,502
Series A Convertible Preferred Stock Convertible [Member] \| Underwriting Agreement [Member] \| Common Stock and Warrants [Member] \| 2017 Public Offering [Member] \| Aegis Capital Corp [Member]
Number of shares included in offering		4,669,329
Number of new shares issued		4,669,329
Class A Units [Member] \| Underwriting Agreement [Member] \| 2017 Public Offering [Member] \| Aegis Capital Corp [Member]
Number of shares included in offering		664,000
Share price (in dollars per share)		$ 0.75
Class A Units [Member] \| Underwriting Agreement [Member] \| Common Stock and Warrants [Member] \| 2017 Public Offering [Member] \| Aegis Capital Corp [Member]
Number of shares included in offering		664,000
Number of new shares issued		664,000
Class B Units [Member] \| Underwriting Agreement [Member] \| 2017 Public Offering [Member] \| Aegis Capital Corp [Member]
Number of shares included in offering		1,000
2017 Warrants [Member]
Share price (in dollars per share)	$ 0.52					$ 0.50		$ 0.50
Number of new shares issued	3,000,000
Initial exercise price (in dollars per share)	$ 0.26					$ 0.26		$ 0.26
Warrant term								5 years
Number of shares conversion	1,500,000
Description of exercise limitation	<p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"><font style="font: 10pt Times New Roman, Times, Serif">The shares of Common Stock are registered under the Securities Act of 1933, as amended. If delivery of the shares of Common Stock pursuant to the foregoing would result in the holder exceeding the 4.99% “Beneficial Ownership Limitation” (as defined in the warrant) then the shares in excess of such 4.99% will be held in abeyance by the Company pending further instruction from the holder.</font></p>							<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"><font style="font: 10pt Times New Roman, Times, Serif">A holder will not have the right to exercise any portion of the Warrant if the holder (together with its affiliates) would beneficially own in excess of 4.99% of the number of shares of our stock outstanding immediately after giving effect to the exercise, as such percentage ownership is determined in accordance with the terms of the warrants. However, any holder may increase or decrease such percentage to any other percentage not in excess of 9.99% upon at least 61 days’ prior notice from the holder to us.</font></p>
Fair value of warrants								$ 1,800,000
Initial fair value of warrants								$ 1,600,000

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($)	3 Months Ended	9 Months Ended
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($)	Sep. 30, 2017	Sep. 30, 2017
Warrant liability [Roll Forward]
Beginning balance
Issuances of warrants		1,612,413
Warrant exercises		(1,893,160)
Change in fair value	$ 128,300	280,747
Ending balalnce

NET INCOME (LOSS) PER SHARE (Details) - USD ($)	3 Months Ended		9 Months Ended
NET INCOME (LOSS) PER SHARE (Details) - USD ($)	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Numerator
Net income (loss)	$ (2,184,510)	$ 204,689	$ (6,129,553)	$ (3,845,235)
Deemed dividend attributable to preferred stock			(2,568,132)
Net income (loss) attributable to common shareholders	$ (2,184,510)	$ 204,689	$ (8,697,685)	$ (3,845,235)
Denominator
Weighted average common shares outstanding	12,411,145	3,024,393	7,886,210	2,665,904
Basic and diluted net income (loss) per share	$ (0.18)	$ 0.07	$ (1.10)	$ (1.44)

NET INCOME (LOSS) PER SHARE (Details 1) - shares	3 Months Ended		9 Months Ended
NET INCOME (LOSS) PER SHARE (Details 1) - shares	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of potential common shares excluded	4,288,162	792,652	4,828,617	792,652
Series A Convertible Preferred Stock Convertible [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of potential common shares excluded	509,762		895,809
Equity Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of potential common shares excluded	2,118,021	390,424	1,206,057	390,424
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of potential common shares excluded	1,660,379	402,228	2,726,751	402,228

CONCENTRATION OF CREDIT RISK (Details Narrative) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Risks and Uncertainties [Abstract]
Cash, FDIC insured amount	$ 250,000
Cash, uninsured amount	$ 2,483,663	$ 2,777,962

COMMITMENTS AND CONTINGENCIES (Details)	Sep. 30, 2017 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2017 (remainder of year)	$ 7,395
2018	22,185
Total minimum lease payments	$ 29,580

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$ 7,395	$ 87,315	$ 25,775	$ 238,565

STOCK BASED COMPENSATION (Details)	9 Months Ended
STOCK BASED COMPENSATION (Details)	Sep. 30, 2017 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total additional shares	551,455
2012 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total additional shares	30,018
2013 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total additional shares	34,452
2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total additional shares	49,532
2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total additional shares	65,557
2016 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total additional shares	220,419
2017 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total additional shares	151,477

STOCK BASED COMPENSATION (Details 1)	9 Months Ended
STOCK BASED COMPENSATION (Details 1)	Sep. 30, 2017	Sep. 30, 2016
Dividend yield
Minimum [Member]
Risk free interest rate	1.86%	1.48%
Expected term	5 years 3 months 25 days	5 years 6 months 28 days
Expected volatility	112.86%	115.52%
Maximum [Member]
Risk free interest rate	2.04%	1.55%
Expected term	6 years 4 months 9 days	6 years 21 days
Expected volatility	114.19%	115.58%

STOCK BASED COMPENSATION (Details 2) - USD ($)	3 Months Ended	9 Months Ended
STOCK BASED COMPENSATION (Details 2) - USD ($)	Sep. 30, 2017	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at beginning		378,924
Granted	0	1,716,323
Forfeited		(3,167)
Expired		(19,081)
Outstanding at ending	2,072,999	2,072,999
Exercisable at ending	418,636	418,636
Vested and expected to vest	2,072,999	2,072,999
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Rollforward]
Outstanding at beginning		$ 26.25
Granted		0.47
Forfeited		15.00
Expired		25.05
Outstanding at ending	$ 4.10	4.10
Exercisable at ending	16.39	16.39
Vested and expected to vest	$ 4.10	$ 4.10
Share-based Compensation Arrangement by Share-based Payment Award, Options, Weighted Average Contractual Life Remaining in Years [Rollforward]
Outstanding at ending		9 years 3 months 14 days
Exercisable at end		8 years 5 months 8 days
Vested and expected to vest		9 years 3 months 14 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Aggregate Intrinsic Value [Rollforward]
Outstanding at ending	$ 102,679	$ 102,679
Exercisable at ending	9,645	9,645
Vested and expected to vest	$ 102,679	$ 102,679

STOCK BASED COMPENSATION (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
STOCK BASED COMPENSATION (Details Narrative) - USD ($)	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	May 09, 2017	May 18, 2016	Sep. 28, 2010
Share-based Compensation	$ 224,254	$ 257,389	$ 560,369	$ 650,053
Number of shares granted	0		1,716,323
Number of unvested options outstanding	1,651,052		1,651,052
Unrecognized compensation cost	$ 1,203,000		$ 1,203,000
Vesting period			2 years
Stock Option and Incentive Plan 2010 [Member]
Shares held in employee stock option plan suspense shares					1,500,000	133,333	66,667
Number of shares available for grant	100,456		100,456
Scientific Advisor [Member]
Number of shares granted			1,716,323

SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member] - Underwriting Agreement [Member] - Maxim Group LLC [Member]	Oct. 26, 2017 USD ($) $ / shares shares
2017 Public Offering [Member]
Subsequent Event [Line Items]
Gross proceeds from public offering	$ 5,500,000
Net proceeds from public offering	$ 5,100,000
Number of shares issued in transaction \| shares	11,500,000
Sale of stock price per share (in dollars per share) \| $ / shares	$ 0.44
Over-Allotment Option [Member]
Subsequent Event [Line Items]
Gross proceeds from public offering	$ 5,500,000
Number of shares issued in transaction \| shares	1,000,000