INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2016
INCOME TAXES [Abstract]  
Income tax net (expense) benefit
Income tax net expense comprises the following:

  
Year Ended December 31,
 
  
2016
  
2015
 
Current:
      
Federal
 
$
-
  
$
-
 
State
  
(13,480
)
  
(12,821
)
Total
  
(13,480
)
  
(12,821
)
         
Deferred:
        
Federal
  
-
   
-
 
State
  
-
   
-
 
Total
  
-
   
-
 
Income tax net expense
 
$
(13,480
)
 
$
(12,821
)
Significant components of deferred income tax assets
Significant components of the Company’s deferred income tax assets are as follows:

  
December 31,
 
  
2016
  
2015
 
       
Reserves and accruals
 
$
1,053,863
  
$
1,578,374
 
Prepaid expenses
  
(43,774
)
  
(50,966
)
Federal NOL carryforwards
  
8,530,493
   
6,762,537
 
State NOL carryforwards
  
615,919
   
583,651
 
Hong Kong NOL carryforwards
  
995,566
   
995,566
 
Federal benefit on state taxes under uncertain tax positions
  
136,969
   
132,385
 
Stock-based compensation
  
342.294
   
481,917
 
Research tax credit
  
434,637
   
434,637
 
Alternative minimum tax credit
  
348,264
   
348,264
 
Contributions carryforward
  
35,100
   
33,582
 
Depreciation
  
(286,608
)
  
(312,023
)
Accrued rent
  
216,432
   
254,404
 
Loss on impairment of long-lived assets
  
53,042
   
52,226
 
Valuation allowance
  
(12,432.197
)
  
(11,294,554
)
Total
  
-
   
-
 
Total deferred income tax assets, net
 
$
-
  
$
-
 
Schedule of effective income tax rate reconciliation
A reconciliation between expected income taxes, computed at the statutory federal income tax rate of 34% applied to pretax accounting loss, and the income tax net expense included in the consolidated statements of operations for the years ended December 31, 2016 and 2015 is as follows:

  
Year Ended December 31,
 
  
2016
  
2015
 
Anticipated income tax benefit at statutory rate
 
$
1,534,176
  
$
3,315,420
 
State income tax benefit, net of federal tax effect
  
(9,350
)
  
35,814
 
Capital loss carryforward expiration
  
-
   
(9,227
)
Income tax effect of uncertain tax positions
  
(8,896
)
  
(8,461
)
Return to provision adjustments
  
(23,070
)
  
(82,341
)
Stock-based compensation
  
(110,066
)
  
(215,030
)
Other changes in deferred income tax assets, net
  
(13,118
)
  
(22,414
)
Increase in valuation allowance
  
(1,383,156
)
  
(3,026,582
)
Income tax net expense
 
$
(13,480
)
 
$
(12,821
)
Summary of gross liability for uncertain tax positions
The following summarizes the activity related to the Company’s gross liability for uncertain tax positions from January 1, 2015 through December 31, 2016:
 
Balance as of January 1, 2015
 
$
506,463
 
Increases related to prior year tax positions
  
12,821
 
Balance as of December 31, 2015
  
519,284
 
Increases related to prior year tax positions
  
13,480
 
Balance as of December 31, 2016
 
$
532,764