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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2017

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of estimated useful lives of property, plant and equipment

Production equipment		3 to 13 years
Office furniture and equipment		3 to 10 years
Buildings		39 years
Building improvements		15 years

Schedule of significant customers

		Three Months Ended March 31, 2017		Three Months Ended March 31, 2016
Number of significant customers		3		3
Aggregate dollar amount of net sales to significant customers		$3.7 million		$3.1 million
Percentage of net sales to significant customers		53.2%		52.6%

Schedule of earnings per share

			Three Months Ended March 31, 2017			Three Months Ended March 31, 2016
Net loss		$	(1,189,945	)	$	(939,091	)
Preferred dividend requirements			(176,249	)		(176,249	)

Loss applicable to common shareholders after assumed conversions		$	(1,366,194	)	$	(1,115,340	)

Average common shares outstanding			31,333,121			28,624,874

Average common and common equivalent shares outstanding — assuming dilution			31,333,121			28,624,874

Basic loss per share		$	(0.04	)	$	(0.04	)

Diluted loss per share		$	(0.04	)	$	(0.04	)

Schedule of share-based compensation costs

		Three Months Ended March 31, 2017			Three Months Ended March 31, 2016

Cost of sales	$	97,761		$	—
Sales and marketing		52,684			—
Research and development		16,308			—
General and administrative		68,145			—

	$	234,898		$	—