SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2016

All of the raw material purchased during the six months ended June 30, 2016 and for the year ended December 31, 2015 was from one vendor. The below table presents inventory by category:

Inventory by category	June 30, 2016		December 31, 2015
Work-in-process	$	48,312	$	45,355
Finished goods	193,306		173,808
	$	241,618	$	219,163

Schedule of prepaid expenses and other current assets

Prepaid expenses and other current assets consisted of the following at June 30, 2016 and December 31, 2015:

	June 30, 2016		December 31, 2015
Prepaid insurance	$	80,791	$	97,708
Other prepaid expenses and current assets	28,323		33,405
	$	109,114	$	131,113

Schedule of changes in fair value of Level 3 liabilities

The following table presents the activity for those items measured at fair value on a recurring basis using Level 3 inputs during the six months ended June 30, 2016 and the year ended December 31, 2015:

	Period ended
Liability Classified Warrants—Stock Purchase Warrants	June 30, 2016		December 31, 2015
Balance, beginning of period	$	—	$	3,206,000
Reclassification to warrant derivative liabilities	—		(2,545,000
Change in fair value included in consolidated statements of comprehensive loss	—		(661,000
Balance, end of period	$	—	$	—

	Period ended
Warrant Derivative Liabilities—Stock Purchase Warrants	June 30, 2016		December 31, 2015
Balance, beginning of period	$	7,863,000	$	6,520,000
Reclassification from liability classified warrants	—		2,545,000
Change in fair value included in consolidated statements of comprehensive loss	48,000		(1,202,000
Balance, end of period	$	7,911,000	$	7,863,000

	Period ended
Warrant Derivative Liabilities—Lender Warrants	June 30, 2016			December 31, 2015
Balance, beginning of period	$	—		$	—
Warrants issued in conjunction with secured loans	316,610			—
Change in fair value included in consolidated statements of comprehensive loss	8,890			—
Reclassified to additional paid-in capital	(325,500		)	—
Balance, end of period	$	—		$	—

Schedule of valuation assumptions for warrants

The values as of June 30, 2016, December 31, 2015 and the initial value as of September 11, 2013 were calculated based on the following assumptions:

	June 30, 2016			December 31, 2015			Initial Value
Stock price	$	5.00		$	4.70		$	3.60
Risk-free interest rate	0.61		%	1.23		%	1.72		%
Expected volatility (peer group)	61.9		%	64.10		%	72.40		%
Expected life (in years)	2.20			2.70			5.00
Number outstanding	3,320,501			3,320,501			3,320,501
Balance, end of period:
Liability classified warrants	$	—		$	—		$	7,541,000
Warrant derivative liabilities	$	7,911,000		$	7,863,000		$	—

The values of lender warrants as of June 30, 2016, May 13, 2016 and April 18, 2016 were calculated based on the following assumptions:

	June 30, 2016			May 13, 2016			April 18, 2016
Stock price	$	5.00		$	5.00		$	5.00
Risk-free interest rate	1.01		%	1.24		%	1.27		%
Expected volatility (peer group)	74.10		%	73.30		%	72.90		%
Expected life (in years)	5.00			5.13			5.20

Schedule of notes payable with beneficial conversion feature or warrants

The following table presents the effective interest rates on the original loan principal amount for loans originated in the respective periods that either had a beneficial conversion feature or an attached warrant:

Type of Loan	Term of Loan	Stated Annual Interest Rate		Original Loan Principal Amount		Conversion Rate	Beneficial Conversion Discount Amount		Warrants Issued with Notes	Exercise Price		Warrant FMV Discount Amount		Effective Interest Rate Including Discounts
2015 convertible notes payable	Due on demand - 2 years	10	%	$	4,051,022	$3.50- $4.50	$	1,388,201	110,417	$	4.90	$	220,071	14% - 109%
2016 convertible notes payable	Due on demand - 2 years	10	%	4,229,505		$3.50- $4.50	1,037,509		75,000	$	4.70	159,968		14% - 102%
2016 promissory notes	11.5 - 12.5 months	10	%	1,295,000		—	—		100,000	$	4.50	435,381		44%
Total				$	9,575,527		$	2,425,710	285,417			$	815,420