BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2016

The following is a reconciliation of the allowance for sales returns:

	Year Ended December 31,
	2016			2015
Balance, beginning of period	$	731,000		$	910,000
Additions charged to operations		3,574,297			3,651,741
Sales returns		(3,890,297	)		(3,830,741	)
Balance, end of period	$	415,000		$	731,000

The following is a reconciliation of the allowance for doubtful accounts:

	Year Ended December 31,
	2016			2015
Balance, beginning of period	$	1,137,000		$	1,074,000
(Reductions) additions charged to operations		(73,300	)		89,462
Write-offs, net of recoveries		(837,700	)		(26,462	)
Balance, end of period	$	226,000		$	1,137,000

Property and equipment are stated at cost and are depreciated over their estimated useful lives using the straight-line method as follows:

Machinery and equipment	5 to 12 years
Computer hardware	3 to 5 years
Computer software	3 years
Furniture and fixtures	5 to 10 years
Leasehold improvements	Shorter of the estimated useful life or the lease term

The following table reconciles the differences between the basic and diluted net loss per share presentations:

	Year Ended December 31,
	2016			2015
Numerator:
Net loss from continuing operations	$	(3,952,035	)	$	(5,087,272	)
Net loss from discontinued operations		(573,726	)		(4,485,787	)
Net loss	$	(4,525,761	)	$	(9,573,059	)

Denominator:
Weighted average common shares outstanding:
Basic		20,926,120			20,407,764
Stock options		-			-
Diluted		20,926,120			20,407,764

Net loss per common share:
Basic-continuing operations	$	(0.19	)	$	(0.25	)
Basic-discontinued operations		(0.03	)		(0.22	)
Basic-total	$	(0.22	)	$	(0.47	)

Diluted-continuing operations	$	(0.19	)	$	(0.25	)
Diluted-discontinued operations		(0.03	)		(0.22	)
Diluted-total	$	(0.22	)	$	(0.47	)