Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 12, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-38420 | |
Entity Registrant Name | VIRTRA, INC. | |
Entity Central Index Key | 0001085243 | |
Entity Tax Identification Number | 93-1207631 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 7970 S | |
Entity Address, Address Line Two | Kyrene Rd | |
Entity Address, City or Town | Tempe | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85284 | |
City Area Code | (480) | |
Local Phone Number | 968-1488 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 10,807,130 |
Balance Sheets
Balance Sheets - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 21,545,843 | $ 6,841,984 |
Accounts receivable, net | 4,890,424 | 1,378,270 |
Inventory, net | 5,933,586 | 3,515,997 |
Unbilled revenue | 4,346,282 | 5,408,598 |
Prepaid expenses and other current assets | 624,767 | 382,445 |
Total current assets | 37,340,902 | 17,527,294 |
Long-term assets: | ||
Property and equipment, net | 12,438,061 | 1,381,744 |
Operating lease right-of-use asset, net | 863,227 | 1,094,527 |
Intangible assets, net | 882,604 | 271,048 |
Security deposits, long-term | 19,712 | 86,500 |
Other assets, long-term | 533,264 | 500,114 |
Deferred tax asset, net | 1,482,107 | 1,892,000 |
Total long-term assets | 16,218,975 | 5,225,933 |
Total assets | 53,559,877 | 22,753,227 |
Current liabilities: | ||
Accounts payable | 1,087,736 | 345,573 |
Accrued compensation and related costs | 1,287,063 | 843,101 |
Accrued expenses and other current liabilities | 493,643 | 772,884 |
Note payable, current | 233,047 | 266,037 |
Operating lease liability, short-term | 341,124 | 321,727 |
Deferred revenue, short-term | 8,058,613 | 4,708,575 |
Total current liabilities | 11,501,226 | 7,257,897 |
Long-term liabilities: | ||
Deferred revenue, long-term | 1,958,110 | 1,920,346 |
Note payable, long-term | 8,336,991 | 1,063,243 |
Operating lease liability, long-term | 594,499 | 853,155 |
Other long term liabilities | 5,435 | |
Total long-term liabilities | 10,895,035 | 3,836,744 |
Total liabilities | 22,396,261 | 11,094,641 |
Stockholders’ equity: | ||
Preferred stock $0.0001 par value; 2,500,000 authorized; no shares issued or outstanding | ||
Common stock | 1,081 | 778 |
Additional paid-in capital | 30,870,893 | 13,893,660 |
Retained earnings (Accumulated deficit) | 291,642 | (2,235,852) |
Total stockholders’ equity | 31,163,616 | 11,658,586 |
Total liabilities and stockholders’ equity | 53,559,877 | 22,753,227 |
Common Class A [Member] | ||
Stockholders’ equity: | ||
Common stock | ||
Common Class B [Member] | ||
Stockholders’ equity: | ||
Common stock |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 2,500,000 | 2,500,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares outstanding | 10,807,130 | 7,775,030 |
Common stock, shares issued | 10,807,130 | 7,775,030 |
Common Class A [Member] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 2,500,000 | 2,500,000 |
Common stock, shares outstanding | 0 | 0 |
Common stock, shares issued | 0 | 0 |
Common Class B [Member] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 7,500,000 | 7,500,000 |
Common stock, shares outstanding | 0 | 0 |
Common stock, shares issued | 0 | 0 |
Statements of Operations (Unaud
Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues: | ||||
Total revenue | $ 6,093,263 | $ 6,413,721 | $ 15,790,364 | $ 12,521,663 |
Cost of sales | 3,217,911 | 2,446,455 | 7,211,807 | 5,381,403 |
Gross profit | 2,875,352 | 3,967,266 | 8,578,557 | 7,140,260 |
Operating expenses: | ||||
General and administrative | 1,958,038 | 2,250,348 | 5,670,883 | 6,050,798 |
Research and development | 651,734 | 497,645 | 1,257,271 | 1,204,011 |
Net operating expense | 2,609,772 | 2,747,993 | 6,928,154 | 7,254,809 |
Income (loss) from operations | 265,580 | 1,219,273 | 1,650,403 | (114,549) |
Other income (expense): | ||||
Other income | (11,981) | 7,067 | 38,777 | 45,359 |
Gain on forgiveness of note payable | 1,320,714 | 1,320,714 | ||
Other (expense) income | 21,948 | (3,315) | (13,094) | (12,929) |
Net other income (expense) | 1,330,681 | 3,752 | 1,346,397 | 32,430 |
Income (Loss) before provision for income taxes | 1,596,261 | 1,223,025 | 2,996,800 | (82,119) |
Provision (Benefit) for income taxes | 253,289 | 354,941 | 469,306 | 40,467 |
Net income (loss) | $ 1,342,972 | $ 868,084 | $ 2,527,494 | $ (122,586) |
Net income (loss) per common share: | ||||
Basic | $ 0.12 | $ 0.11 | $ 0.26 | $ (0.02) |
Diluted | $ 0.12 | $ 0.11 | $ 0.25 | $ (0.02) |
Weighted average shares outstanding: | ||||
Basic | 10,792,520 | 7,760,799 | 9,745,091 | 7,753,034 |
Diluted | 11,031,922 | 7,842,475 | 10,111,458 | 7,753,034 |
Net sales [Member] | ||||
Revenues: | ||||
Total revenue | $ 6,093,263 | $ 6,395,356 | $ 15,790,364 | $ 12,472,106 |
Eatertainment royalties licensing fees former related party [Member] | ||||
Revenues: | ||||
Total revenue | 16,005 | 45,247 | ||
Other royalties licensing fees [Member] | ||||
Revenues: | ||||
Total revenue | $ 2,360 | $ 4,310 |
Statements - Statements of Chan
Statements - Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2019 | $ 775 | $ 13,894,680 | $ (3,714,255) | $ 10,181,200 | ||
Beginning balance, shares at Dec. 31, 2019 | 7,745,030 | |||||
Stock options exercised | $ 3 | 19,962 | 19,965 | |||
Stock options exercised, shares | 22,500 | |||||
Stock options repurchased | (26,667) | (26,667) | ||||
Net loss (income) | (122,586) | (122,586) | ||||
Ending balance, value at Sep. 30, 2020 | $ 778 | 13,887,975 | (3,836,841) | 10,051,912 | ||
Ending balance, shares at Sep. 30, 2020 | 7,767,530 | |||||
Beginning balance, value at Jun. 30, 2020 | $ 777 | 13,902,047 | (4,704,925) | 9,197,899 | ||
Beginning balance, shares at Jun. 30, 2020 | 7,760,030 | |||||
Stock options exercised | $ 1 | 6,749 | 6,750 | |||
Stock options exercised, shares | 7,500 | |||||
Stock options repurchased | (20,821) | (20,821) | ||||
Net loss (income) | 868,084 | 868,084 | ||||
Ending balance, value at Sep. 30, 2020 | $ 778 | 13,887,975 | (3,836,841) | 10,051,912 | ||
Ending balance, shares at Sep. 30, 2020 | 7,767,530 | |||||
Beginning balance, value at Dec. 31, 2020 | $ 778 | 13,893,660 | (2,235,852) | 11,658,586 | ||
Beginning balance, shares at Dec. 31, 2020 | 7,775,030 | |||||
Stock options exercised | 11,320 | 11,320 | ||||
Stock options exercised, shares | 7,500 | |||||
Stock issued for cash in offering, net | $ 300 | 16,794,700 | 16,795,000 | |||
Stock issued for cash in offering, net, shares | 3,000,000 | |||||
Stock issued for services | $ 3 | 171,213 | 171,216 | |||
Stock issued for services, shares | 24,600 | |||||
Net loss (income) | 2,527,494 | 2,527,494 | ||||
Ending balance, value at Sep. 30, 2021 | $ 1,081 | 30,870,893 | 291,642 | 31,163,616 | ||
Ending balance, shares at Sep. 30, 2021 | 10,807,130 | |||||
Beginning balance, value at Jun. 30, 2021 | $ 1,078 | 30,694,430 | (1,051,330) | 29,644,178 | ||
Beginning balance, shares at Jun. 30, 2021 | 10,780,030 | |||||
Stock options exercised | 5,250 | 5,250 | ||||
Stock options exercised, shares | 2,500 | |||||
Stock issued for services | $ 3 | 171,213 | 171,216 | |||
Stock issued for services, shares | 24,600 | |||||
Net loss (income) | 1,342,972 | 1,342,972 | ||||
Ending balance, value at Sep. 30, 2021 | $ 1,081 | $ 30,870,893 | $ 291,642 | $ 31,163,616 | ||
Ending balance, shares at Sep. 30, 2021 | 10,807,130 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 2,527,494 | $ (122,586) |
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 367,253 | 274,866 |
Right of use amortization | 231,300 | 220,997 |
Reserve for note receivable | 16,738 | |
Deferred taxes | 409,893 | 80,000 |
Impairment of investment in That’s Eatertainment, former related party | 406,000 | |
Gain on forgiveness of note payable | (1,329,280) | |
Employee stock compensation | 171,216 | |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (3,512,154) | (215,159) |
That’s Eatertainment note receivable, net, related party | (10,916) | |
Interest receivable | 7,340 | |
Inventory, net | (2,417,589) | (1,492,350) |
Unbilled revenue | 1,062,316 | (109,500) |
Prepaid expenses and other current assets | (242,322) | (107,637) |
Other assets | (33,150) | 18,246 |
Security deposits, long-term | 66,788 | |
Accounts payable and other accrued expenses | 912,318 | 635,765 |
Payments on operating lease liability | (239,259) | (221,028) |
Deferred revenue | 3,387,802 | 452,324 |
Net cash provided by (used in) operating activities | 1,362,626 | (166,900) |
Cash flows from investing activities: | ||
Redemption of certificates of deposit | 1,915,000 | |
Purchase of intangible assets | (627,765) | (55,580) |
Purchase of property and equipment | (11,407,278) | (329,386) |
Net cash provided by (used in) investing activities | (12,035,043) | 1,530,034 |
Cash flows from financing activities: | ||
Repurchase of stock options | (26,667) | |
Principal payments of debt | (20,195) | |
Net proceeds from long term debt | 8,590,151 | |
Stock issued for cash in offering, net | 16,795,000 | |
Stock options exercised | 11,320 | 19,965 |
Note payable-PPP Loan | 1,325,961 | |
Net cash provided by (used in) financing activities | 25,376,276 | 1,319,259 |
Net increase (decrease) in cash and restricted cash | 14,703,859 | 2,682,393 |
Cash and restricted cash, beginning of period | 6,841,984 | 1,415,091 |
Cash and restricted cash, end of period | 21,545,843 | 4,097,484 |
Supplemental disclosure of cash flow information: | ||
Taxes refunded | 78,096 | (39,533) |
Interest paid | $ 20,783 | $ 5,247 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Organization and Significant Accounting Policies | Note 1. Organization and Significant Accounting Policies Organization and Business Operations VirTra, Inc. (the “Company,” “VirTra,” “we,” “us” or “our”), located in Tempe, Arizona, is a global provider of judgmental use of force training simulators, firearms training simulators and driving simulators for the law enforcement, military, educational and commercial markets. The Company’s patented technologies, software, and scenarios provide intense training for de-escalation, judgmental use-of-force, marksmanship and related training that mimics real-world situations. VirTra’s mission is to save and improve lives worldwide through practical and highly-effective virtual reality and simulator technology. The Company sells its products worldwide through a direct sales force and international distribution partners. The original business started in 1993 as Ferris Productions, Inc. In September 2001, Ferris Productions, Inc. merged with GameCom, Inc. to ultimately become VirTra, Inc., a Nevada corporation. During March 2020, a global pandemic was declared by the World Health Organization related to the rapidly growing outbreak of a novel strain of coronavirus (COVID-19). The pandemic has significantly impacted the economic conditions in the U.S., accelerating during half of March and April as federal, state and local governments react to the public health crisis, creating significant uncertainties in the U.S. economy. On March 30, 2020, the Governor for the State of Arizona issued a stay-at-home order which expired on May 15, 2020, upon which Arizona entered Phase I of reopening. The Company carefully reviewed all rules and regulations of the government orders and determined it met the requirements of an essential business to remain open. The Company had the majority of its staff begin working remotely in mid-March, with only essential personnel continue working at the manufacturing and production facilities and currently remains in Arizona’s Phase I of reopening. This situation is rapidly changing and additional impacts to the business may arise that we are not aware of currently. While the disruption is currently expected to be temporary, there is uncertainty around the duration. The ultimate impact of the pandemic on the Company’s results of operations, financial position, liquidity or capital resources cannot be reasonably estimated at this time. To date, the COVID-19 restrictions have resulted in reduced customer shipments and customer system installations. These recent developments are expected to result in lower recognized revenue and possibly lower gross margin when they occur. To date, there have been no order cancellations; rather, there have only been delays in when orders ship or installations occur and all delayed orders remain in backlog. Any future impact cannot be reasonably estimated at this time. The Company is no longer investing in Certificates of Deposits as a precautionary measure to increase its liquid cash position and preserve financial flexibility considering uncertainty in the U.S. and global markets resulting from COVID-19. Additionally, the Company’s stock repurchase program was suspended as a result of interim rulings for public-company recipients of a PPP loan under the CARES Act. The stock repurchase suspension remained in effect for the duration of the outstanding PPP loan. See Note 7 for information about the PPP Loan. Basis of Presentation The unaudited financial statements included herein have been prepared by us without audit pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with our audited financial statements for the year ended December 31, 2020 included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 filed with the SEC on March 29, 2021. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted as permitted by the SEC, although we believe the disclosures that are made are adequate to make the information presented herein not misleading. The accompanying unaudited financial statements reflect, in our opinion, all normal recurring adjustments necessary to present fairly our financial position at September 30, 2021 and the results of our operations and cash flows for the periods presented. We derived the December 31, 2020 balance sheet data from audited financial statements; however, we did not include all disclosures required by GAAP. Interim results are subject to seasonal variations, and the results of operations for the nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the full year. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Significant accounting estimates in these financial statements include valuation assumptions for share-based payments, allowance for doubtful accounts and notes receivable, inventory reserves, accrual for warranty reserves, the carrying value of long-lived assets and intangible assets, income tax valuation allowances, the carrying value of cost basis investments, and the allocation of the transaction price to the performance obligations in our contracts with customers. Revenue Recognition The Company adopted the Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customer (Topic 606) (“ASC 606”) on January 1, 2018 and the Company elected to use the modified retrospective transition method which requires application of ASC 606 to uncompleted contracts at the date of adoption. The adoption of ASC 606 did not have a material impact on the financial statements. Under ASC 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. Significant judgment is necessary when making these determinations. The Company’s primary sources of revenue are derived from simulator and accessories sales, training and installation, the sale of customizable software and the sale of extended service-type warranties. The Company’s policy is to typically invoice upon completion of installation and/or training until such time the performance obligations that have been satisfied are included in unbilled. Sales discounts are presented in the financial statements as reductions in determining net revenues. Credit sales are recorded as current assets (accounts receivable and unbilled revenue). Prepaid deposits received at the time of sale and extended warranties purchased are recorded as current and long-term liabilities (deferred revenue) until earned. The following briefly summarizes the nature of our performance obligations and method of revenue recognition: Performance Obligation Method of Recognition Simulator and accessories Upon transfer of control Installation and training Upon completion or over the period of services being rendered Extended service-type warranty Deferred and recognized over the life of the extended warranty Customized software and content Upon transfer of control or over the period services are performed depending on the terms of the contract Customized content scenario As performance obligation is transferred over time (input method using time and materials expanded) Sales-based royalty exchanged for license of intellectual property Recognized as the performance obligation is satisfied over time – which is as the sales occur. The Company recognizes revenue upon transfer of control or upon completion of the services for the simulator and accessories; for the installation and training and customized software performance obligations as the customer has the right and ability to direct the use of these products and services and the customer obtains substantially all of the remaining benefit from these products and services at that time. Revenue from certain customized content contracts may be recognized over the period the services are performed based on the terms of the contract. For the sales-based royalty exchanged for license of intellectual property, the Company recognized revenue as the sales occur over time. The Company recognizes revenue on a straight-line basis over the period of services being rendered for the extended service-type warranties as these warranties represent a performance obligation to “stand ready to perform” over the duration of the warranties. As such, the warranty service is performed continuously over the warranty period. Each contract states the transaction price. The contracts do not include variable consideration, significant financing components or noncash consideration. The Company has elected to exclude sales and similar taxes from the measurement of the transaction price. The contract’s transaction price is allocated to the performance obligations based upon their stand-alone selling prices. Discounts to the stand-alone selling prices, if any, are allocated proportionately to each performance obligation. Disaggregation of Revenue Under ASC 606, disaggregated revenue from contracts with customers depicts the nature, amount, timing, and uncertainty of revenue and cash flows affected by economic factors. The Company has evaluated revenues recognized and the following table illustrates the disaggregation disclosure by customer’s location and performance obligation. Disaggregation of Revenue Schedule Of Disaggregation Of Revenues Three Months Ended September 30, 2021 September 30, 2020 Commercial Government International Total Commercial Government International Total Simulators and accessories $ 1,370,466 $ 2,645,312 $ 723,471 $ 4,739,249 $ 212,030 $ 4,635,562 $ - $ 4,847,592 Extended service-type warranties 31,910 656,870 25,180 713,960 18,037 611,087 11,894 641,018 Customized software and content - 290,829 52,273 343,102 - 738,291 - 738,291 Installation and training 42,952 190,098 59,500 292,550 1,351 167,104 - 168,455 Licensing and royalties 4,402 - - 4,402 18,365 - - 18,365 Total Revenue $ 1,449,730 $ 3,783,109 $ 860,424 $ 6,093,263 $ 249,783 $ 6,152,044 $ 11,894 $ 6,413,721 For the three months ended September 30, 2021, governmental customers comprised $ 3,783,109 62 1,449,730 24 860,424 14 6,152,044 96 249,783 4 11,894 1 490,059 233,981 8.0 3.6 Nine Months Ended September 30, 2021 September 30, 2020 Commercial Government International Total Commercial Government International Total Simulators and accessories $ 2,183,769 $ 7,828,503 $ 1,907,588 $ 11,919,860 $ 477,874 $ 7,969,907 $ 291,939 $ 8,739,720 Extended service-type warranties 79,531 2,001,423 74,196 2,155,150 51,700 1,769,908 116,042 1,937,650 Customized software and content - 905,204 125,716 1,030,920 18,566 1,388,121 - 1,406,687 Installation and training 93,501 496,251 85,850 675,602 11,059 372,026 4,964 388,049 Licensing and royalities 8,832 - - 8,832 49,557 - - 49,557 Total Revenue $ 2,365,633 $ 11,231,381 $ 2,193,350 $ 15,790,364 $ 608,756 $ 11,499,962 $ 412,945 $ 12,521,663 For the nine months ended September 30, 2021, governmental customers comprised $ 11,231,381 71 2,365,633 15 2,193,350 14 11,499,962 92 608,756 5 412,945 3 1,349,677 558,462 8.5 4.4 Customer Deposits Customer deposits consist of prepaid deposits received for equipment purchase orders and for Subscription Training Equipment Partnership (“STEP”) operating agreements that expire annually. Customer deposits are considered a deferred liability until the completion of the customer’s contract performance obligation. When revenue is recognized, the deposit is applied to customer’s receivable balance. Customer deposits are recorded as a current liability under deferred revenue on the accompanying balance sheet and totaled $ 6,440,194 2,517,175 Warranty The Company warranties its products from manufacturing defects on a limited basis for a period of one year after purchase, but also sells separately priced extended service-type warranties for periods of up to four years after the expiration of the standard one-year warranty. During the term of the initial one-year warranty, if the device fails to operate properly from defects in materials and workmanship, the Company will fix or replace the defective product. Deferred revenue for separately priced extended warranties one year or less totaled $ 1,618,419 2,191,400 1,958,110 1,920,346 304,000 352,000 713,960 641,018 $2,155,150 1,937,650 STEP Revenue The Company’s STEP operations consist principally of renting its simulator products under operating agreements expiring in one year. At the commencement of a STEP agreement, any rental payments received are deferred and no income is recognized. Subsequently, payments are amortized and recognized as revenue on a straight-line basis over the term of the agreement. The agreements are generally for a period of 12 months and can be renewed for additional 12-month periods. Agreements may be terminated by either party upon written notice of termination at least sixty days prior to the end of the 12-month period. The payments are generally fixed for the first year of the agreement, with increases in payments in subsequent years to be mutually agreed upon. The agreements do not include variable lease payments or free rent periods. In addition, the agreements do not provide for the underlying assets to be purchased at its fair market values at interim periods or at maturity. Each STEP agreement comes with full customer support and stand-ready advance replacement parts to maintain each system for the duration of the lease. The amounts that the Company expects to derive from the STEP equipment following the end of the agreement term is dependent upon the number of agreement terms renewed. The agreements do not include a residual value guarantee. Concentration of Credit Risk and Major Customers and Suppliers Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, certificates of deposit, accounts receivable and notes receivable. The Company’s cash, cash equivalents and certificates of deposit are maintained with financial institutions with high credit standings and are FDIC insured deposits. The FDIC insures deposits according to the ownership category in which the funds are insured and how the accounts are titled. The standard deposit insurance coverage limit is $ 250,000 21,043,538 6,338,896 Most sales are to governments that are typically made on credit and the Company generally does not require collateral. Management performs ongoing credit evaluations of its customers’ financial condition and maintains an allowance for estimated losses. Historically, the Company has experienced minimal charges relative to doubtful accounts. Management performs ongoing evaluations of the collectability of its notes receivable and maintains an allowance for estimated losses. Historically, the Company primarily sells its products to United States federal and state agencies. For the three months ended September 30, 2021, one commercial agency comprised 20 22 20 no 19 14 As of September 30, 2021, no 8.5 31 |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 2. Inventory Inventory consisted of the following as of: Schedule Of Inventory September 30, 2021 December 31, 2020 Raw materials and work in process $ 6,616,616 $ 3,636,649 Reserve (683,030 ) (120,652 ) Total inventory $ 5,933,586 $ 3,515,997 The Company regularly evaluates the useful life of its spare parts inventory and as a result, the Company classified $ 479,771 500,114 |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 3. Property and Equipment Property and equipment consisted of the following as of: Schedule of Property and Equipment, Net September 30, 2021 December 31, 2020 Land $ 1,778,987 $ - Building & Building Improvements 8,606,224 - Computer equipment 1,162,369 1,115,326 Furniture and office equipment 256,425 223,925 Machinery and equipment 1,743,487 1,096,898 STEP equipment 1,502,694 1,206,757 Leasehold improvements 334,933 334,934 Total property and equipment 15,385,119 3,977,840 Less: Accumulated depreciation and amortization (2,947,058 ) (2,596,096 ) Property and equipment, net $ 12,438,061 $ 1,381,744 Depreciation expense, including STEP depreciation, was $ 350,963 268,200 154,252 93,037 On August 25, 2021, the Company completed the purchase of real property located in Chandler, Arizona (the “Property”) for $ 10,800,000 8,600,000 4.3 76,650 15,000 Under the provision of ASC 805, the Company determined this acquisition was an asset acquisition. This determination was based on substantially all of the fair value of the gross assets acquired was concentrated in the similarly identifiable assets of the Property. The fair value was allocated to the land, building, and acquired leases based upon their relative fair values at the date of acquisition in accordance with ASC 805-50-30-3. The fair value of the in-place leases is the estimated cost to replace the leases (including loss of rent, estimated commissions and legal fees paid in similar leases). The capitalized in-place leases are amortized over the remaining term of the leases as amortization expense. The fair value of the above or below market lease is the present value of the difference between the contractual amount to be paid pursuant to the in-place lease and the estimated current market lease rate expected over the remaining non-cancelable life of the lease. The capitalized above or below market lease values are amortized as a decrease or increase to the rental income over the remaining term of the lease. Upon closing, the Company assumed interest in two in-place leases. The first tenant took occupancy in November 2006 and is paying the annual Triple Net rate of $ 11.34 11.68 12.03 October 31, 2023 9.00 October 31, 2024 5 October 31, 2029 5 3 The following table presents purchase price allocation for the assets acquired: Schedule Of Purchase Price Allocation September 30, 2021 Land $ 1,778,987 Building and building improvements $ 8,566,492 Acquired Lease Intangible Assets $ 454,521 Total Purchase Price $ 10,800,000 |
Intangible Asset
Intangible Asset | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Asset | Note 4. Intangible Asset Intangible asset consisted of the following as of: Schedule Of Intangible Asset September 30, 2021 December 31, 2020 Patents $ 160,000 $ 160,000 Capitalized media content 301,329 128,085 Acquired lease intangible assets 454,521 - Total intangible asset 915,850 288,085 Less Accumulated amortization (33,246 ) (17,037 ) Intangible asset, net $ 882,604 $ 271,048 Amortization expense was $ 16,209 6,667 11,765 2,222 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | Note 5. Leases The Company leases approximately 37,729 5,131 April 2024 In addition to base rent, the Company’s lease generally provides for additional payments for other charges, such as rental tax. The lease includes fixed rent escalations. The Company’s lease does not include an option to renew. The Company determines if an arrangement is a lease at inception. Operating leases are recorded in operating lease right of use assets, net, operating lease liability – short term, and operating lease liability – long-term on its condensed balance sheet. Operating lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the Company’s lease does not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate used at adoption was 4.5 Effective January 1, 2019, the Company obtained a right-of-use asset in exchange for a new operating lease liability in the amount of $ 1,721,380 46,523 1,674,857 The balance sheet classification of lease assets and liabilities as of September 30, 2021 was as follows: Schedule Of Balance Sheet Classification of Lease Assets and Liabilities Balance Sheet Classification September 30, 2021 Assets Operating lease right-of-use assets, January 1, 2021 $ 1,094,527 Amortization for the nine months ended September 30, 2021 (231,300 ) Total operating lease right-of-use asset, September 30, 2021 $ 863,227 Liabilities Current Operating lease liability, short-term $ 341,124 Non-current Operating lease liability, long-term 594,499 Total lease liabilities $ 935,623 Future minimum lease payments as of September 30, 2021 under non-cancelable operating leases are as follows: Schedule Of Future Minimum Lease Payments 2021 $ 92,685 2022 379,097 2023 390,562 2024 131,152 Total lease payments 993,496 Less: imputed interest (57,873 ) Operating lease liability $ 935,623 The balance sheet classification of lease assets and liabilities as of December 31, 2020 was as follows: Balance Sheet Classification December 31, 2020 Assets Operating lease right-of-use assets, January 1, 2020 $ 1,390,873 Amortization for the year ended December 31, 2020 (296,346 ) Total operating lease right-of-use asset, December 31, 2020 $ 1,094,527 Liabilities Current Operating lease liability, short-term $ 321,727 Non-current Operating lease liability, long-term 853,155 Total lease liabilities $ 1,174,882 Future minimum lease payments as of December 31, 2020 under non-cancelable operating leases are as follows: 2021 $ 368,060 2022 379,097 2023 390,562 2024 131,152 Total lease payments 1,268,871 Less: imputed interest (93,989 ) Operating lease liability $ 1,174,882 Rent expense for the three months ended September 30, 2021 and 2020 was $ 146,497 139,933 436,750 412,315 |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Note 6. Accrued Expenses Accrued compensation and related costs consisted of the following as of: Schedule Of Accrued Compensation And Related Costs September 30, 2021 December 31, 2020 Salaries and wages payable $ 580,610 $ 278,331 Employee benefits payable 32,288 634 Accrued paid time off (PTO) 449,165 366,827 Profit sharing payable 225,000 197,309 Total accrued compensation and related costs $ 1,287,063 $ 843,101 Accrued expenses and other current liabilities consisted of the following as of: Schedule Of Accrued Expenses And Other Current Liabilities September 30, 2021 December 31, 2020 Manufacturer’s warranties $ 304,000 $ 352,000 Taxes payable 90,171 316,076 Miscellaneous payable 99,472 104,808 Total accrued expenses and other current liabilities $ 493,643 $ 772,884 |
Note Payable
Note Payable | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Note Payable | Note 7. Note Payable On May 8, 2020, VirTra received a loan (the “PPP Loan”) in the amount of $ 1,320,714 1 On July 20, 2021, the Company received notification from the Lender that the SBA had approved the Company’s PPP Loan forgiveness application for the entire amount of the PPP Loan. The forgiveness of the PPP Loan is recognized in Other Income in the accompanying statement of income. On August 25, 2021, the Company completed the purchase of real property located in Chandler, Arizona (the “Property”) for $ 10,800,000 8,600,000 3 40,978 5,956,538 August 23, 2031 The note payable amounts consist of the following: Schedule Of Notes Payable September 30, 2021 December 31, 2020 Short-term liabilities: Note payable, principal $ 233,047 $ 257,471 Accrued interest on note - 8,566 Note payable, short-term $ 233,047 $ 266,037 Long-term liabilities: 8,336,991 Note payable, long term $ 8,336,991 $ 1,063,243 The future minimum note payments are as follows: Schedule Of Minimum Note Payments 2021 $ 122,934 2022 491,737 2023 491,737 2024 491,737 2025 491,737 Thereafter 6,480,156 Total $ 8,570,038 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 8. Related Party Transactions During the nine months ended September 30, 2021, the Company redeemed 26,250 116,718 7,500 0.0001 11,320 During the nine months ended September 30, 2020, the Company redeemed 11,250 8,857 22,500 19,965 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9. Commitments and Contingencies General or Threatened Litigation From time to time, the Company is notified of threatened litigation or that a claim is being made against it. The Company evaluates contingencies on an on-going basis and has established loss provisions for matters in which losses are probable and the amount of loss can be reasonably estimated. There is no threatened litigation at this time. Employment Agreements On April 2, 2012, the Company entered into three-year Employment Agreements with its Chief Executive Officer and Chief Operating Officer that provide for annual base salaries of $ 195,000 175,000 On August 26, 2021, the Compensation Committee of the Board of Directors (the “Compensation Committee”) of VirTra, Inc. (the “Company”), relying upon third-party studies and recommendations, took several actions to bring the compensation of the Company’s Chief Executive officer (CEO) and Chief Operating Officer (COO) up to industry standards and provide meaningful incentive for future performance. The Committee (1) approved grants of 224,133 168,090 1,559,966 1,169,906 14,057 10,543 97,837 73,379 349,860 251,140 Beginning on the last business day of August 2022, a tranche of restricted stock units may vest if the Company has achieved net profit (net income under GAAP) for the twelve months ending June 30, 2022, of at least $ 2,500,000 500,000 2,500,000 7,000,000 3,000,000 9,000,000 3,500,000 11,000,000 It is the Company’s policy to estimate the fair value of the RSU’s on the date of the grant and evaluate the probability of achieving the net profit (net income under GAAP) tranches quarterly. If the target is deemed probable, the expense is amortized on a straight-line basis over the remaining time period. The Company determined based on the vesting terms described above that the net profit (net income under GAAP) for the twelve months ending June 30, 2022, of $ 2,500,000 Profit Sharing VirTra provides a discretionary profit-sharing program that pays out a percentage of Company profits each year as a cash bonus to eligible employees. The cash payment is typically split into two equal payments and distributed pro-rata in April and October of the following year to only active employees. For the nine months ended September 30, 2021, $ 225,000 56,057 |
Stockholders_ Equity
Stockholders’ Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Stockholders’ Equity | Note 10. Stockholders’ Equity Authorized Capital Common Stock Authorized Shares 60,000,000 50,000,000 2,500,000 0.0001 7,500,000 0.0001 Rights and Preferences (i) Each holder of Common Stock is entitled to one (1) vote for each share of Common Stock held of record by such holder. The holders of shares of Common Stock do not have cumulative voting rights. (ii) Each holder of Class A Common Stock is entitled to ten (10) votes for each share of Class A Common Stock held of record by such holder. The holders of shares of Class A Common Stock do not have cumulative voting rights. (iii) The holders of Common Stock and Class A Common Stock vote together as a single class on all matters on which stockholders are generally entitled to vote. (iv) The holders of Class B Common Stock are not be entitled to vote on any matter, except that the holders of Class B Common Stock are entitled to vote separately as a class with respect to amendments to the Articles of Incorporation that increase or decrease the aggregate number of authorized shares of such class, increase or decrease the par value of the shares of such class, or alter or change the powers, preferences, or special rights of the shares of such class so as to affect them adversely. Preferred Stock Authorized Shares 2,500,000 0.0001 Rights and Preferences Stock Repurchase On October 25, 2016, the Company’s Board of Directors authorized the repurchase of up to $ 1 1 Treasury Stock During the nine months ended September 30, 2021 and 2020, the Company purchased no additional treasury shares. As of September 30, 2021, all treasury shares previously purchased had been cancelled and returned to shares authorized. Non-qualified Stock Options The Company has periodically issued non-qualified stock options to key employees, officers and directors under a stock option compensation plan approved by the Board of Directors in 2009. Terms of option grants are at the discretion of the Board of Directors and are generally seven years. Upon the exercise of these options, the Company expects to issue new authorized shares of its Common Stock. The following table summarizes all non-qualified stock options as of: Schedule Of Non-qualified Stock Options September 30, 2021 September 30, 2020 Number of Stock Weighted Exercise Number of Stock Weighted Exercise Options Price Options Price Options outstanding, beginning of year 164,167 $ 3.13 234,167 $ 2.47 Granted - - - - Redeemed (26,250 ) 1.51 (36,250 ) 0.83 Exercised (7,500 ) 1.51 (22,500 ) 0.89 Expired / terminated - - - - Options outstanding, end of period 130,417 $ 3.55 175,417 $ 3.01 Options exercisable, end of period 130,417 $ 3.55 175,417 $ 3.01 The Company did not have any non-vested stock options outstanding as of September 30, 2021 and December 31, 2020. The weighted average contractual term for options outstanding and exercisable at September 30, 2021 and 2020 was 7 years. The aggregate intrinsic value of the options outstanding and exercisable at September 30, 2021 and 2020 was $ 859,675 and $ 204,037 , respectively. The total intrinsic value of options exercised and redeemed during the nine months ended September 30, 2021, was $ 117,647 , and the total intrinsic value of options exercised during the nine months ended September 30, 2020, was $ 50,362 . For the three months ended September 30, 2021, and 2020, the Company received payments related to the exercise of options in the amount of $ 5,250 and $ 6,750 , respectively. For the nine months ended September 30, 2021, and 2020, the Company received payments related to the exercise of options in the amount of $ 11,320 and $ 19,965 , respectively. The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying options and the fair value of the Company’s Common Stock for those stock options that have an exercise price lower than the fair value of the Company’s Common Stock. Options with an exercise price above the fair value of the Company’s Common Stock are considered to have no intrinsic value. 2017 Equity Incentive Plan On August 23, 2017, our board approved, subject to stockholder approval at the annual meeting of stockholders on October 6, 2017, the 2017 Equity Incentive Plan (the “Equity Plan”). The Equity Plan is intended to make available incentives that will assist us to attract, retain and motivate employees, including officers, consultants and directors. We may provide these incentives through the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares and units and other cash-based or stock-based awards. A total of 1,187,500 3 Awards may be granted under the Equity Plan to our employees, including officers, directors or consultants or those of any present or future parent or subsidiary corporation or other affiliated entity. All awards will be evidenced by a written agreement between us and the holder of the award and may include any of the following: stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares and performance units and cash-based awards and other stock-based awards. Through September 30, 2021, 224,133 168,090 Common stock activity On August 26, 2021, the Compensation Committee of the Board of Directors approved grants of 14,057 10,543 On March 31, 2021, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain institutional investors (the “Purchasers”), pursuant to which the Company agreed to sell to the Purchasers an aggregate of 3,000,000 6.00 The Company also entered into a placement agent agreement (the “Placement Agency Agreement”) on March 31, 2021, with Roth Capital Partners, LLC (“Roth”), pursuant to which Roth agreed to serve as placement agent for the issuance and sale of the RDO Shares. The Company agreed to pay Roth an aggregate fee equal to 6.5 35,000 Roth acted as the lead placement agent in the Offering. Lake Street Capital Markets acted as co-placement agent for the Offering. Maxim Group LLC acted as a financial advisor to the Company in connection with the Offering. A prospectus supplement and the accompanying prospectus relating to and describing the terms of the Offering, dated March 31, 2021, was filed with the SEC on April 2, 2021. On April 5, 2021, the Company closed the Offering. The total gross proceeds of the Offering were $ 18.0 1,205,000 |
Organization and Significant _2
Organization and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Organization and Business Operations | Organization and Business Operations VirTra, Inc. (the “Company,” “VirTra,” “we,” “us” or “our”), located in Tempe, Arizona, is a global provider of judgmental use of force training simulators, firearms training simulators and driving simulators for the law enforcement, military, educational and commercial markets. The Company’s patented technologies, software, and scenarios provide intense training for de-escalation, judgmental use-of-force, marksmanship and related training that mimics real-world situations. VirTra’s mission is to save and improve lives worldwide through practical and highly-effective virtual reality and simulator technology. The Company sells its products worldwide through a direct sales force and international distribution partners. The original business started in 1993 as Ferris Productions, Inc. In September 2001, Ferris Productions, Inc. merged with GameCom, Inc. to ultimately become VirTra, Inc., a Nevada corporation. During March 2020, a global pandemic was declared by the World Health Organization related to the rapidly growing outbreak of a novel strain of coronavirus (COVID-19). The pandemic has significantly impacted the economic conditions in the U.S., accelerating during half of March and April as federal, state and local governments react to the public health crisis, creating significant uncertainties in the U.S. economy. On March 30, 2020, the Governor for the State of Arizona issued a stay-at-home order which expired on May 15, 2020, upon which Arizona entered Phase I of reopening. The Company carefully reviewed all rules and regulations of the government orders and determined it met the requirements of an essential business to remain open. The Company had the majority of its staff begin working remotely in mid-March, with only essential personnel continue working at the manufacturing and production facilities and currently remains in Arizona’s Phase I of reopening. This situation is rapidly changing and additional impacts to the business may arise that we are not aware of currently. While the disruption is currently expected to be temporary, there is uncertainty around the duration. The ultimate impact of the pandemic on the Company’s results of operations, financial position, liquidity or capital resources cannot be reasonably estimated at this time. To date, the COVID-19 restrictions have resulted in reduced customer shipments and customer system installations. These recent developments are expected to result in lower recognized revenue and possibly lower gross margin when they occur. To date, there have been no order cancellations; rather, there have only been delays in when orders ship or installations occur and all delayed orders remain in backlog. Any future impact cannot be reasonably estimated at this time. The Company is no longer investing in Certificates of Deposits as a precautionary measure to increase its liquid cash position and preserve financial flexibility considering uncertainty in the U.S. and global markets resulting from COVID-19. Additionally, the Company’s stock repurchase program was suspended as a result of interim rulings for public-company recipients of a PPP loan under the CARES Act. The stock repurchase suspension remained in effect for the duration of the outstanding PPP loan. See Note 7 for information about the PPP Loan. |
Basis of Presentation | Basis of Presentation The unaudited financial statements included herein have been prepared by us without audit pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with our audited financial statements for the year ended December 31, 2020 included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 filed with the SEC on March 29, 2021. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted as permitted by the SEC, although we believe the disclosures that are made are adequate to make the information presented herein not misleading. The accompanying unaudited financial statements reflect, in our opinion, all normal recurring adjustments necessary to present fairly our financial position at September 30, 2021 and the results of our operations and cash flows for the periods presented. We derived the December 31, 2020 balance sheet data from audited financial statements; however, we did not include all disclosures required by GAAP. Interim results are subject to seasonal variations, and the results of operations for the nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the full year. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Significant accounting estimates in these financial statements include valuation assumptions for share-based payments, allowance for doubtful accounts and notes receivable, inventory reserves, accrual for warranty reserves, the carrying value of long-lived assets and intangible assets, income tax valuation allowances, the carrying value of cost basis investments, and the allocation of the transaction price to the performance obligations in our contracts with customers. |
Revenue Recognition | Revenue Recognition The Company adopted the Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customer (Topic 606) (“ASC 606”) on January 1, 2018 and the Company elected to use the modified retrospective transition method which requires application of ASC 606 to uncompleted contracts at the date of adoption. The adoption of ASC 606 did not have a material impact on the financial statements. Under ASC 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. Significant judgment is necessary when making these determinations. The Company’s primary sources of revenue are derived from simulator and accessories sales, training and installation, the sale of customizable software and the sale of extended service-type warranties. The Company’s policy is to typically invoice upon completion of installation and/or training until such time the performance obligations that have been satisfied are included in unbilled. Sales discounts are presented in the financial statements as reductions in determining net revenues. Credit sales are recorded as current assets (accounts receivable and unbilled revenue). Prepaid deposits received at the time of sale and extended warranties purchased are recorded as current and long-term liabilities (deferred revenue) until earned. The following briefly summarizes the nature of our performance obligations and method of revenue recognition: Performance Obligation Method of Recognition Simulator and accessories Upon transfer of control Installation and training Upon completion or over the period of services being rendered Extended service-type warranty Deferred and recognized over the life of the extended warranty Customized software and content Upon transfer of control or over the period services are performed depending on the terms of the contract Customized content scenario As performance obligation is transferred over time (input method using time and materials expanded) Sales-based royalty exchanged for license of intellectual property Recognized as the performance obligation is satisfied over time – which is as the sales occur. The Company recognizes revenue upon transfer of control or upon completion of the services for the simulator and accessories; for the installation and training and customized software performance obligations as the customer has the right and ability to direct the use of these products and services and the customer obtains substantially all of the remaining benefit from these products and services at that time. Revenue from certain customized content contracts may be recognized over the period the services are performed based on the terms of the contract. For the sales-based royalty exchanged for license of intellectual property, the Company recognized revenue as the sales occur over time. The Company recognizes revenue on a straight-line basis over the period of services being rendered for the extended service-type warranties as these warranties represent a performance obligation to “stand ready to perform” over the duration of the warranties. As such, the warranty service is performed continuously over the warranty period. Each contract states the transaction price. The contracts do not include variable consideration, significant financing components or noncash consideration. The Company has elected to exclude sales and similar taxes from the measurement of the transaction price. The contract’s transaction price is allocated to the performance obligations based upon their stand-alone selling prices. Discounts to the stand-alone selling prices, if any, are allocated proportionately to each performance obligation. |
Disaggregation of Revenue | Disaggregation of Revenue Under ASC 606, disaggregated revenue from contracts with customers depicts the nature, amount, timing, and uncertainty of revenue and cash flows affected by economic factors. The Company has evaluated revenues recognized and the following table illustrates the disaggregation disclosure by customer’s location and performance obligation. Disaggregation of Revenue Schedule Of Disaggregation Of Revenues Three Months Ended September 30, 2021 September 30, 2020 Commercial Government International Total Commercial Government International Total Simulators and accessories $ 1,370,466 $ 2,645,312 $ 723,471 $ 4,739,249 $ 212,030 $ 4,635,562 $ - $ 4,847,592 Extended service-type warranties 31,910 656,870 25,180 713,960 18,037 611,087 11,894 641,018 Customized software and content - 290,829 52,273 343,102 - 738,291 - 738,291 Installation and training 42,952 190,098 59,500 292,550 1,351 167,104 - 168,455 Licensing and royalties 4,402 - - 4,402 18,365 - - 18,365 Total Revenue $ 1,449,730 $ 3,783,109 $ 860,424 $ 6,093,263 $ 249,783 $ 6,152,044 $ 11,894 $ 6,413,721 For the three months ended September 30, 2021, governmental customers comprised $ 3,783,109 62 1,449,730 24 860,424 14 6,152,044 96 249,783 4 11,894 1 490,059 233,981 8.0 3.6 Nine Months Ended September 30, 2021 September 30, 2020 Commercial Government International Total Commercial Government International Total Simulators and accessories $ 2,183,769 $ 7,828,503 $ 1,907,588 $ 11,919,860 $ 477,874 $ 7,969,907 $ 291,939 $ 8,739,720 Extended service-type warranties 79,531 2,001,423 74,196 2,155,150 51,700 1,769,908 116,042 1,937,650 Customized software and content - 905,204 125,716 1,030,920 18,566 1,388,121 - 1,406,687 Installation and training 93,501 496,251 85,850 675,602 11,059 372,026 4,964 388,049 Licensing and royalities 8,832 - - 8,832 49,557 - - 49,557 Total Revenue $ 2,365,633 $ 11,231,381 $ 2,193,350 $ 15,790,364 $ 608,756 $ 11,499,962 $ 412,945 $ 12,521,663 For the nine months ended September 30, 2021, governmental customers comprised $ 11,231,381 71 2,365,633 15 2,193,350 14 11,499,962 92 608,756 5 412,945 3 1,349,677 558,462 8.5 4.4 |
Customer Deposits | Customer Deposits Customer deposits consist of prepaid deposits received for equipment purchase orders and for Subscription Training Equipment Partnership (“STEP”) operating agreements that expire annually. Customer deposits are considered a deferred liability until the completion of the customer’s contract performance obligation. When revenue is recognized, the deposit is applied to customer’s receivable balance. Customer deposits are recorded as a current liability under deferred revenue on the accompanying balance sheet and totaled $ 6,440,194 2,517,175 |
Warranty | Warranty The Company warranties its products from manufacturing defects on a limited basis for a period of one year after purchase, but also sells separately priced extended service-type warranties for periods of up to four years after the expiration of the standard one-year warranty. During the term of the initial one-year warranty, if the device fails to operate properly from defects in materials and workmanship, the Company will fix or replace the defective product. Deferred revenue for separately priced extended warranties one year or less totaled $ 1,618,419 2,191,400 1,958,110 1,920,346 304,000 352,000 713,960 641,018 $2,155,150 1,937,650 |
STEP Revenue | STEP Revenue The Company’s STEP operations consist principally of renting its simulator products under operating agreements expiring in one year. At the commencement of a STEP agreement, any rental payments received are deferred and no income is recognized. Subsequently, payments are amortized and recognized as revenue on a straight-line basis over the term of the agreement. The agreements are generally for a period of 12 months and can be renewed for additional 12-month periods. Agreements may be terminated by either party upon written notice of termination at least sixty days prior to the end of the 12-month period. The payments are generally fixed for the first year of the agreement, with increases in payments in subsequent years to be mutually agreed upon. The agreements do not include variable lease payments or free rent periods. In addition, the agreements do not provide for the underlying assets to be purchased at its fair market values at interim periods or at maturity. Each STEP agreement comes with full customer support and stand-ready advance replacement parts to maintain each system for the duration of the lease. The amounts that the Company expects to derive from the STEP equipment following the end of the agreement term is dependent upon the number of agreement terms renewed. The agreements do not include a residual value guarantee. |
Concentration of Credit Risk and Major Customers and Suppliers | Concentration of Credit Risk and Major Customers and Suppliers Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, certificates of deposit, accounts receivable and notes receivable. The Company’s cash, cash equivalents and certificates of deposit are maintained with financial institutions with high credit standings and are FDIC insured deposits. The FDIC insures deposits according to the ownership category in which the funds are insured and how the accounts are titled. The standard deposit insurance coverage limit is $ 250,000 21,043,538 6,338,896 Most sales are to governments that are typically made on credit and the Company generally does not require collateral. Management performs ongoing credit evaluations of its customers’ financial condition and maintains an allowance for estimated losses. Historically, the Company has experienced minimal charges relative to doubtful accounts. Management performs ongoing evaluations of the collectability of its notes receivable and maintains an allowance for estimated losses. Historically, the Company primarily sells its products to United States federal and state agencies. For the three months ended September 30, 2021, one commercial agency comprised 20 22 20 no 19 14 As of September 30, 2021, no 8.5 31 |
Organization and Significant _3
Organization and Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule Of Disaggregation Of Revenues | Schedule Of Disaggregation Of Revenues Three Months Ended September 30, 2021 September 30, 2020 Commercial Government International Total Commercial Government International Total Simulators and accessories $ 1,370,466 $ 2,645,312 $ 723,471 $ 4,739,249 $ 212,030 $ 4,635,562 $ - $ 4,847,592 Extended service-type warranties 31,910 656,870 25,180 713,960 18,037 611,087 11,894 641,018 Customized software and content - 290,829 52,273 343,102 - 738,291 - 738,291 Installation and training 42,952 190,098 59,500 292,550 1,351 167,104 - 168,455 Licensing and royalties 4,402 - - 4,402 18,365 - - 18,365 Total Revenue $ 1,449,730 $ 3,783,109 $ 860,424 $ 6,093,263 $ 249,783 $ 6,152,044 $ 11,894 $ 6,413,721 Nine Months Ended September 30, 2021 September 30, 2020 Commercial Government International Total Commercial Government International Total Simulators and accessories $ 2,183,769 $ 7,828,503 $ 1,907,588 $ 11,919,860 $ 477,874 $ 7,969,907 $ 291,939 $ 8,739,720 Extended service-type warranties 79,531 2,001,423 74,196 2,155,150 51,700 1,769,908 116,042 1,937,650 Customized software and content - 905,204 125,716 1,030,920 18,566 1,388,121 - 1,406,687 Installation and training 93,501 496,251 85,850 675,602 11,059 372,026 4,964 388,049 Licensing and royalities 8,832 - - 8,832 49,557 - - 49,557 Total Revenue $ 2,365,633 $ 11,231,381 $ 2,193,350 $ 15,790,364 $ 608,756 $ 11,499,962 $ 412,945 $ 12,521,663 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule Of Inventory | Inventory consisted of the following as of: Schedule Of Inventory September 30, 2021 December 31, 2020 Raw materials and work in process $ 6,616,616 $ 3,636,649 Reserve (683,030 ) (120,652 ) Total inventory $ 5,933,586 $ 3,515,997 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment consisted of the following as of: Schedule of Property and Equipment, Net September 30, 2021 December 31, 2020 Land $ 1,778,987 $ - Building & Building Improvements 8,606,224 - Computer equipment 1,162,369 1,115,326 Furniture and office equipment 256,425 223,925 Machinery and equipment 1,743,487 1,096,898 STEP equipment 1,502,694 1,206,757 Leasehold improvements 334,933 334,934 Total property and equipment 15,385,119 3,977,840 Less: Accumulated depreciation and amortization (2,947,058 ) (2,596,096 ) Property and equipment, net $ 12,438,061 $ 1,381,744 |
Schedule Of Purchase Price Allocation | The following table presents purchase price allocation for the assets acquired: Schedule Of Purchase Price Allocation September 30, 2021 Land $ 1,778,987 Building and building improvements $ 8,566,492 Acquired Lease Intangible Assets $ 454,521 Total Purchase Price $ 10,800,000 |
Intangible Asset (Tables)
Intangible Asset (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule Of Intangible Asset | Intangible asset consisted of the following as of: Schedule Of Intangible Asset September 30, 2021 December 31, 2020 Patents $ 160,000 $ 160,000 Capitalized media content 301,329 128,085 Acquired lease intangible assets 454,521 - Total intangible asset 915,850 288,085 Less Accumulated amortization (33,246 ) (17,037 ) Intangible asset, net $ 882,604 $ 271,048 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Schedule Of Balance Sheet Classification of Lease Assets and Liabilities | The balance sheet classification of lease assets and liabilities as of September 30, 2021 was as follows: Schedule Of Balance Sheet Classification of Lease Assets and Liabilities Balance Sheet Classification September 30, 2021 Assets Operating lease right-of-use assets, January 1, 2021 $ 1,094,527 Amortization for the nine months ended September 30, 2021 (231,300 ) Total operating lease right-of-use asset, September 30, 2021 $ 863,227 Liabilities Current Operating lease liability, short-term $ 341,124 Non-current Operating lease liability, long-term 594,499 Total lease liabilities $ 935,623 Balance Sheet Classification December 31, 2020 Assets Operating lease right-of-use assets, January 1, 2020 $ 1,390,873 Amortization for the year ended December 31, 2020 (296,346 ) Total operating lease right-of-use asset, December 31, 2020 $ 1,094,527 Liabilities Current Operating lease liability, short-term $ 321,727 Non-current Operating lease liability, long-term 853,155 Total lease liabilities $ 1,174,882 |
Schedule Of Future Minimum Lease Payments | Future minimum lease payments as of September 30, 2021 under non-cancelable operating leases are as follows: Schedule Of Future Minimum Lease Payments 2021 $ 92,685 2022 379,097 2023 390,562 2024 131,152 Total lease payments 993,496 Less: imputed interest (57,873 ) Operating lease liability $ 935,623 2021 $ 368,060 2022 379,097 2023 390,562 2024 131,152 Total lease payments 1,268,871 Less: imputed interest (93,989 ) Operating lease liability $ 1,174,882 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Schedule Of Accrued Compensation And Related Costs | Accrued compensation and related costs consisted of the following as of: Schedule Of Accrued Compensation And Related Costs September 30, 2021 December 31, 2020 Salaries and wages payable $ 580,610 $ 278,331 Employee benefits payable 32,288 634 Accrued paid time off (PTO) 449,165 366,827 Profit sharing payable 225,000 197,309 Total accrued compensation and related costs $ 1,287,063 $ 843,101 |
Schedule Of Accrued Expenses And Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following as of: Schedule Of Accrued Expenses And Other Current Liabilities September 30, 2021 December 31, 2020 Manufacturer’s warranties $ 304,000 $ 352,000 Taxes payable 90,171 316,076 Miscellaneous payable 99,472 104,808 Total accrued expenses and other current liabilities $ 493,643 $ 772,884 |
Note Payable (Tables)
Note Payable (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule Of Notes Payable | The note payable amounts consist of the following: Schedule Of Notes Payable September 30, 2021 December 31, 2020 Short-term liabilities: Note payable, principal $ 233,047 $ 257,471 Accrued interest on note - 8,566 Note payable, short-term $ 233,047 $ 266,037 Long-term liabilities: 8,336,991 Note payable, long term $ 8,336,991 $ 1,063,243 |
Schedule Of Minimum Note Payments | The future minimum note payments are as follows: Schedule Of Minimum Note Payments 2021 $ 122,934 2022 491,737 2023 491,737 2024 491,737 2025 491,737 Thereafter 6,480,156 Total $ 8,570,038 |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule Of Non-qualified Stock Options | Schedule Of Non-qualified Stock Options September 30, 2021 September 30, 2020 Number of Stock Weighted Exercise Number of Stock Weighted Exercise Options Price Options Price Options outstanding, beginning of year 164,167 $ 3.13 234,167 $ 2.47 Granted - - - - Redeemed (26,250 ) 1.51 (36,250 ) 0.83 Exercised (7,500 ) 1.51 (22,500 ) 0.89 Expired / terminated - - - - Options outstanding, end of period 130,417 $ 3.55 175,417 $ 3.01 Options exercisable, end of period 130,417 $ 3.55 175,417 $ 3.01 |
Schedule Of Disaggregation Of R
Schedule Of Disaggregation Of Revenues (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Simulators and accessories | $ 4,739,249 | $ 4,847,592 | $ 11,919,860 | $ 8,739,720 |
Extended service-type warranties | 713,960 | 641,018 | 2,155,150 | 1,937,650 |
Customized software and content | 343,102 | 738,291 | 1,030,920 | 1,406,687 |
Installation and training | 292,550 | 168,455 | 675,602 | 388,049 |
Licensing and royalties | 4,402 | 18,365 | 8,832 | 49,557 |
Total Revenue | 6,093,263 | 6,413,721 | 15,790,364 | 12,521,663 |
Commercial [Member] | ||||
Simulators and accessories | 1,370,466 | 212,030 | 2,183,769 | 477,874 |
Extended service-type warranties | 31,910 | 18,037 | 79,531 | 51,700 |
Customized software and content | 18,566 | |||
Installation and training | 42,952 | 1,351 | 93,501 | 11,059 |
Licensing and royalties | 4,402 | 18,365 | 8,832 | 49,557 |
Total Revenue | 1,449,730 | 249,783 | 2,365,633 | 608,756 |
Government [Member] | ||||
Simulators and accessories | 2,645,312 | 4,635,562 | 7,828,503 | 7,969,907 |
Extended service-type warranties | 656,870 | 611,087 | 2,001,423 | 1,769,908 |
Customized software and content | 290,829 | 738,291 | 905,204 | 1,388,121 |
Installation and training | 190,098 | 167,104 | 496,251 | 372,026 |
Licensing and royalties | ||||
Total Revenue | 3,783,109 | 6,152,044 | 11,231,381 | 11,499,962 |
Geographic Distribution, Foreign [Member] | ||||
Simulators and accessories | 723,471 | 1,907,588 | 291,939 | |
Extended service-type warranties | 25,180 | 11,894 | 74,196 | 116,042 |
Customized software and content | 52,273 | 125,716 | ||
Installation and training | 59,500 | 85,850 | 4,964 | |
Licensing and royalties | ||||
Total Revenue | $ 860,424 | $ 11,894 | $ 2,193,350 | $ 412,945 |
Organization and Significant _4
Organization and Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Product Information [Line Items] | |||||
Revenue | $ 6,093,263 | $ 6,413,721 | $ 15,790,364 | $ 12,521,663 | |
Deferred revenue liability current | 8,058,613 | 8,058,613 | $ 4,708,575 | ||
Revenue recognized | 713,960 | $ 641,018 | 2,155,150 | $ 1,937,650 | |
Deposit insurance coverage limit | 250,000 | 250,000 | |||
Uninsured cash and cash equivalents | 21,043,538 | 21,043,538 | 6,338,896 | ||
Warranty [Member] | One Year or Less [Member] | |||||
Product Information [Line Items] | |||||
Extended warranties | 1,618,419 | 1,618,419 | 2,191,400 | ||
Warranty [Member] | Longer Than One Year [Member] | |||||
Product Information [Line Items] | |||||
Extended warranties | 1,958,110 | 1,958,110 | 1,920,346 | ||
Warranty [Member] | One Year [Member] | |||||
Product Information [Line Items] | |||||
Extended warranties | 304,000 | 304,000 | 352,000 | ||
Customer Deposits [Member] | |||||
Product Information [Line Items] | |||||
Deferred revenue liability current | $ 6,440,194 | $ 6,440,194 | $ 2,517,175 | ||
Revenue from Contract with Customer, Product and Service Benchmark [Member] | Customer Concentration Risk [Member] | One Federal Agency [Member] | |||||
Product Information [Line Items] | |||||
Concentration of credit risk | 20.00% | 22.00% | 19.00% | ||
Revenue from Contract with Customer, Product and Service Benchmark [Member] | Customer Concentration Risk [Member] | Another Federal Agency [Member] | |||||
Product Information [Line Items] | |||||
Concentration of credit risk | 20.00% | 14.00% | |||
Revenue from Contract with Customer, Product and Service Benchmark [Member] | Customer Concentration Risk [Member] | No Single Customer [Member] | |||||
Product Information [Line Items] | |||||
Concentration of credit risk | 0.00% | ||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | One Federal Agency [Member] | |||||
Product Information [Line Items] | |||||
Concentration of credit risk | 8.50% | ||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | One State Agency [Member] | |||||
Product Information [Line Items] | |||||
Concentration of credit risk | 31.00% | ||||
Government Customers [Member] | |||||
Product Information [Line Items] | |||||
Revenue | $ 3,783,109 | $ 6,152,044 | $ 11,231,381 | $ 11,499,962 | |
Government Customers [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | |||||
Product Information [Line Items] | |||||
Concentration of credit risk | 62.00% | 96.00% | 71.00% | 92.00% | |
Commercial Customers [Member] | |||||
Product Information [Line Items] | |||||
Revenue | $ 1,449,730 | $ 249,783 | $ 2,365,633 | $ 608,756 | |
Commercial Customers [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | |||||
Product Information [Line Items] | |||||
Concentration of credit risk | 24.00% | 4.00% | 15.00% | 5.00% | |
Internationall Customers [Member] | |||||
Product Information [Line Items] | |||||
Revenue | $ 860,424 | $ 11,894 | $ 2,193,350 | $ 412,945 | |
Internationall Customers [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | |||||
Product Information [Line Items] | |||||
Concentration of credit risk | 14.00% | 1.00% | 14.00% | 3.00% | |
Three Customers [Member] | |||||
Product Information [Line Items] | |||||
Revenue | $ 490,059 | $ 233,981 | $ 1,349,677 | $ 558,462 | |
Three Customers [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | |||||
Product Information [Line Items] | |||||
Concentration of credit risk | 8.00% | 3.60% | 8.50% | 4.40% |
Schedule Of Inventory (Details)
Schedule Of Inventory (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials and work in process | $ 6,616,616 | $ 3,636,649 |
Reserve | (683,030) | (120,652) |
Total inventory | $ 5,933,586 | $ 3,515,997 |
Inventory (Details Narrative)
Inventory (Details Narrative) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Spare parts as other assets, long-term | $ 533,264 | $ 500,114 |
Spare Parts [Member] | ||
Spare parts as other assets, long-term | $ 479,771 | $ 500,114 |
Schedule of Property and Equipm
Schedule of Property and Equipment, Net (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 15,385,119 | $ 3,977,840 |
Less: Accumulated depreciation | (2,947,058) | (2,596,096) |
Property and equipment, net | 12,438,061 | 1,381,744 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 1,778,987 | |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 8,606,224 | |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 1,162,369 | 1,115,326 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 256,425 | 223,925 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 1,743,487 | 1,096,898 |
STEP Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 1,502,694 | 1,206,757 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 334,933 | $ 334,934 |
Schedule Of Purchase Price Allo
Schedule Of Purchase Price Allocation (Details) | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Additions | $ 10,800,000 |
Land [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Additions | 1,778,987 |
Building and Building Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Additions | 8,566,492 |
Acquired Lease Intangible Assets [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Additions | $ 454,521 |
Property and Equipment (Details
Property and Equipment (Details Narrative) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Aug. 25, 2021USD ($)ft²a | Nov. 30, 2016ft² | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Nov. 01, 2022ft² | Nov. 01, 2021ft² | Nov. 30, 2006ft² | |
Property, Plant and Equipment [Line Items] | |||||||||
Payment to acquire assets | $ | $ 11,407,278 | $ 329,386 | |||||||
First Tenant [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Per square foot rate | 11.34 | ||||||||
Lease Expiration Date | Oct. 31, 2023 | ||||||||
First Tenant [Member] | Subsequent Event [Member] | Maximum [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Per square foot rate | 12.03 | 11.68 | |||||||
Second Tenant [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Per square foot rate | 9 | ||||||||
Lease Expiration Date | Oct. 31, 2024 | Oct. 31, 2029 | |||||||
Lessee, Operating Lease, Renewal Term | 5 years | ||||||||
Second Tenant [Member] | Maximum [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Lessee, Operating Lease, Renewal Term | 3 years | 3 years | |||||||
Percentage Rental Rate | 5.00% | ||||||||
Arizona Bank And Trust [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Proceeds from bank loan | $ | $ 8,600,000 | ||||||||
STEP Equipment [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Depreciation expense | $ | $ 154,252 | $ 93,037 | $ 350,963 | $ 268,200 | |||||
Property [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Payment to acquire assets | $ | $ 10,800,000 | ||||||||
Area of land | a | 4.3 | ||||||||
Industrial Building [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Area of land | 76,650 | ||||||||
Industrial Building [Member] | Multi Year Rent Agreements [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Area of land | 15,000 |
Schedule Of Intangible Asset (D
Schedule Of Intangible Asset (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible asset | $ 915,850 | $ 288,085 |
Less: Accumulated amortization | (33,246) | (17,037) |
Intangible asset, net | 882,604 | 271,048 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible asset | 160,000 | 160,000 |
Capitalized Media Content [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible asset | 301,329 | 128,085 |
Acquired Lease Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible asset | $ 454,521 |
Intangible Asset (Details Narra
Intangible Asset (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 11,765 | $ 2,222 | $ 16,209 | $ 6,667 |
Schedule Of Balance Sheet Class
Schedule Of Balance Sheet Classification of Lease Assets and Liabilities (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | Jan. 02, 2019 | |
Leases [Abstract] | |||
Operating lease right-of-use assets, beginning | $ 1,094,527 | $ 1,390,873 | |
Amortization | (231,300) | (296,346) | |
Operating lease right-of-use assets, ending | 863,227 | 1,094,527 | |
Operating lease liability, short-term | 341,124 | 321,727 | |
Operating lease liability, long-term | 594,499 | 853,155 | |
Total lease liabilities | $ 935,623 | $ 1,174,882 | $ 1,721,380 |
Schedule Of Future Minimum Leas
Schedule Of Future Minimum Lease Payments (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | Jan. 02, 2019 |
Leases [Abstract] | |||
2021 | $ 92,685 | $ 368,060 | |
2022 | 379,097 | 379,097 | |
2023 | 390,562 | 390,562 | |
2024 | 131,152 | 131,152 | |
Total lease payments | 993,496 | 1,268,871 | |
Less: imputed interest | (57,873) | (93,989) | |
Operating lease liability | $ 935,623 | $ 1,174,882 | $ 1,721,380 |
Leases (Details Narrative)
Leases (Details Narrative) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Apr. 30, 2019ft² | Sep. 30, 2021USD ($)ft² | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)ft² | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jan. 02, 2019USD ($) | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Incremental in borrowing rate | 4.50% | |||||||
Operating lease liability | $ 935,623 | $ 935,623 | $ 1,174,882 | $ 1,721,380 | ||||
Deferred rent | 46,523 | |||||||
Operating lease right of use asset | 863,227 | 863,227 | $ 1,094,527 | $ 1,390,873 | $ 1,674,857 | |||
Rent expenses | $ 146,497 | $ 139,933 | $ 436,750 | $ 412,315 | ||||
Lease Amendment [Member] | ||||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Rentable square feet | ft² | 5,131 | |||||||
Lease expires, description | April 2024 | |||||||
Office and Warehouse Space [Member] | Unaffiliated Third Party [Member] | ||||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Rentable square feet | ft² | 37,729 | 37,729 |
Schedule Of Accrued Compensatio
Schedule Of Accrued Compensation And Related Costs (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Salaries and wages payable | $ 580,610 | $ 278,331 |
Employee benefits payable | 32,288 | 634 |
Accrued paid time off (PTO) | 449,165 | 366,827 |
Profit sharing payable | 225,000 | 197,309 |
Total accrued compensation and related costs | $ 1,287,063 | $ 843,101 |
Schedule Of Accrued Expenses An
Schedule Of Accrued Expenses And Other Current Liabilities (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Manufacturer’s warranties | $ 304,000 | $ 352,000 |
Taxes payable | 90,171 | 316,076 |
Miscellaneous payable | 99,472 | 104,808 |
Total accrued expenses and other current liabilities | $ 493,643 | $ 772,884 |
Schedule Of Notes Payable (Deta
Schedule Of Notes Payable (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Note payable, principal | $ 233,047 | $ 257,471 |
Accrued interest on note | 8,566 | |
Note payable, short-term | 233,047 | 266,037 |
Note payable, long term | $ 8,336,991 | $ 1,063,243 |
Schedule Of Minimum Note Paymen
Schedule Of Minimum Note Payments (Details) | Sep. 30, 2021USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 122,934 |
2022 | 491,737 |
2023 | 491,737 |
2024 | 491,737 |
2025 | 491,737 |
Thereafter | 6,480,156 |
Total | $ 8,570,038 |
Note Payable (Details Narrative
Note Payable (Details Narrative) - USD ($) | 1 Months Ended | 9 Months Ended | |||
Aug. 25, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | May 08, 2020 | |
Short-term Debt [Line Items] | |||||
Debt instrument principal amount | $ 233,047 | $ 257,471 | |||
Payment to acquire assets | $ 11,407,278 | $ 329,386 | |||
Arizona Bank And Trust [Member] | |||||
Short-term Debt [Line Items] | |||||
Proceeds from bank loan | $ 8,600,000 | ||||
Debt Instrument, Interest Rate During Period | 3.00% | ||||
Debt Instrument, Maturity Date | Aug. 23, 2031 | ||||
Property [Member] | |||||
Short-term Debt [Line Items] | |||||
Payment to acquire assets | $ 10,800,000 | ||||
119 Regular [Member] | Arizona Bank And Trust [Member] | |||||
Short-term Debt [Line Items] | |||||
Debt Instrument, Periodic Payment | 40,978 | ||||
One Irregular [Member] | Arizona Bank And Trust [Member] | |||||
Short-term Debt [Line Items] | |||||
Debt Instrument, Periodic Payment | $ 5,956,538 | ||||
Paycheck Protection Program Loan [Member] | Convertible Promissory Note [Member] | |||||
Short-term Debt [Line Items] | |||||
Debt instrument principal amount | $ 1,320,714 | ||||
Debt interest rate | 1.00% |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Common stock, shares value | 10,807,130 | 10,807,130 | 7,775,030 | ||
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Exercise price amount | $ 5,250 | $ 6,750 | $ 11,320 | $ 19,965 | |
Chief Executive Officer and Chief Operating Officer [Member] | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Number of previously awarded options redeemed | 26,250 | ||||
Compensation expenses | $ 116,718 | ||||
Exercise price amount | $ 11,320 | ||||
Board Of Directors [Member] | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Common stock, shares value | 7,500 | 7,500 | |||
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | |||
Chief Operating Officer [Member] | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Number of previously awarded options redeemed | 11,250 | ||||
Compensation expenses | $ 8,857 | ||||
Exercise price amount | $ 19,965 | ||||
Chief Executive Officer And Board Of Director [Member] | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Common stock, shares value | 22,500 | 22,500 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) | Aug. 26, 2021 | Aug. 15, 2021 | Apr. 02, 2012 | Aug. 26, 2021 | Aug. 23, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2022 | Jun. 30, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Net Income (Loss) Attributable to Parent | $ 1,342,972 | $ 868,084 | $ 2,527,494 | $ (122,586) | |||||||
Labor and Related Expense | 225,000 | $ 56,057 | |||||||||
Restricted Stock Units (RSUs) [Member] | August 2022 [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Net Income (Loss) Attributable to Parent | 500,000 | ||||||||||
Restricted Stock Units (RSUs) [Member] | August 2023 [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Net Income (Loss) Attributable to Parent | 3,000,000 | ||||||||||
Restricted Stock Units (RSUs) [Member] | August 2024 [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Net Income (Loss) Attributable to Parent | 3,500,000 | ||||||||||
Restricted Stock Units (RSUs) [Member] | August 2024 [Member] | Maximum [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Net Income (Loss) Attributable to Parent | 11,000,000 | ||||||||||
Restricted Stock Units (RSUs) [Member] | Tranche [Member] | June 30, 2022 [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Net Income (Loss) Attributable to Parent | 2,500,000 | ||||||||||
Restricted Stock Units (RSUs) [Member] | Another Tranche [Member] | August 2022 [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Net Income (Loss) Attributable to Parent | 2,500,000 | ||||||||||
Restricted Stock Units (RSUs) [Member] | Ten Tranches [Member] | Maximum [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Net Income (Loss) Attributable to Parent | 7,000,000 | ||||||||||
Restricted Stock Units (RSUs) [Member] | Additional Tranches [Member] | August 2023 [Member] | Maximum [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Net Income (Loss) Attributable to Parent | $ 9,000,000 | ||||||||||
Subsequent Event [Member] | Restricted Stock Units (RSUs) [Member] | Tranche [Member] | August 2022 [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Net Income (Loss) Attributable to Parent | $ 2,500,000 | ||||||||||
Chief Executive Officer [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Annual salaries | $ 349,860 | ||||||||||
Stock Issued During Period, Shares, Reverse Stock Splits | 14,057 | 14,057 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 1,559,966 | 97,837 | |||||||||
Chief Executive Officer [Member] | 2017 Equity Incentive Plan [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock Issued During Period, Shares, Reverse Stock Splits | 224,133 | 224,133 | |||||||||
Chief Operating Officer [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Annual salaries | $ 251,140 | ||||||||||
Stock Issued During Period, Shares, Reverse Stock Splits | 10,543 | 10,543 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 1,169,906 | 73,379 | |||||||||
Chief Operating Officer [Member] | 2017 Equity Incentive Plan [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock Issued During Period, Shares, Reverse Stock Splits | 168,090 | 168,090 | |||||||||
Three Year Employment Agreements [Member] | Chief Executive Officer [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Annual salaries | $ 195,000 | ||||||||||
Three Year Employment Agreements [Member] | Chief Operating Officer [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Annual salaries | $ 175,000 |
Schedule Of Non-qualified Stock
Schedule Of Non-qualified Stock Options (Details) - Non-Qualified Stock Option [Member] - $ / shares | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Offsetting Assets [Line Items] | ||
Number of Stock Options, Options outstanding, beginning of year | 164,167 | 234,167 |
Weighted Exercise Price, Option outstanding, beginning of year | $ 3.13 | $ 2.47 |
Number of Stock Options, Granted | ||
Weighted Exercise Price, Granted | ||
Number of Stock Options, Redeemed | (26,250) | (36,250) |
Weighted Exercise Price, Redeemed | $ 1.51 | $ 0.83 |
Number of Stock Options, Exercised | (7,500) | (22,500) |
Weighted Exercise Price, Exercised | $ 1.51 | $ 0.89 |
Number of Stock Options, Expired / terminated | ||
Weighted Exercise Price, Expired / terminated | ||
Number of Stock Options, Options outstanding, end of period | 130,417 | 175,417 |
Weighted Exercise Price, Option outstanding end of period | $ 3.55 | $ 3.01 |
Number of Stock Options, Options exercisable, end of period | 130,417 | 175,417 |
Weighted Exercise Price, Options exercisable, end of period | $ 3.55 | $ 3.01 |
Stockholders_ Equity (Details N
Stockholders’ Equity (Details Narrative) - USD ($) | Aug. 26, 2021 | Apr. 05, 2021 | Aug. 26, 2021 | Aug. 23, 2021 | Mar. 31, 2021 | Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Jan. 09, 2019 | Aug. 23, 2017 | Oct. 25, 2016 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||
Common stock shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | ||||||||||||
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||||||
Preferred stock shares authorized | 2,500,000 | 2,500,000 | 2,500,000 | ||||||||||||
Preferred stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 7 years | ||||||||||||||
Aggregate intrinsic value of options outstanding and exercisable | $ 859,675 | $ 204,037 | $ 859,675 | $ 204,037 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 117,647 | 50,362 | |||||||||||||
Stock Issued During Period, Value, Stock Options Exercised | $ 5,250 | 6,750 | 11,320 | 19,965 | |||||||||||
Proceeds from Stock Options Exercised | 11,320 | 19,965 | |||||||||||||
Gross proceeds from public offering | $ 16,795,000 | ||||||||||||||
Securities Purchase Agreement [Member] | Offering [Member] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||
Gross proceeds from public offering | $ 18,000,000 | ||||||||||||||
Noninterest Expense Offering Cost | $ 1,205,000 | ||||||||||||||
Placement Agency Agreement [Member] | Roth Capital Partners, LLC [Member] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||
Gross proceeds, aggregate percentage | 6.50% | ||||||||||||||
Placement Agency Agreement [Member] | Roth Capital Partners, LLC [Member] | Maximum [Member] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||
Reimbursement legal fees and expenses | $ 35,000 | ||||||||||||||
2017 Equity Incentive Plan [Member] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||
Number of common stock capital shares reserved for future issuance | 1,187,500 | ||||||||||||||
Percentage of common stock shares issued and outstanding | 3.00% | ||||||||||||||
Board of Directors Chairman [Member] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||
Common stock shares authorized to repurchase | 1,000,000 | 1,000,000 | |||||||||||||
Chief Executive Officer [Member] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||
Stock Issued During Period, Shares, Reverse Stock Splits | 14,057 | 14,057 | |||||||||||||
Chief Executive Officer [Member] | 2017 Equity Incentive Plan [Member] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||
Stock Issued During Period, Shares, Reverse Stock Splits | 224,133 | 224,133 | |||||||||||||
Chief Operating Officer [Member] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||
Stock Issued During Period, Value, Stock Options Exercised | 19,965 | ||||||||||||||
Stock Issued During Period, Shares, Reverse Stock Splits | 10,543 | 10,543 | |||||||||||||
Chief Operating Officer [Member] | 2017 Equity Incentive Plan [Member] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||
Stock Issued During Period, Shares, Reverse Stock Splits | 168,090 | 168,090 | |||||||||||||
Certain Institutional Investors [Member] | Securities Purchase Agreement [Member] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||
Sale of stock, shares | 3,000,000 | ||||||||||||||
Sale of stock, price per share | $ 6 | $ 6 | |||||||||||||
Common Class A [Member] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||
Common stock shares authorized | 2,500,000 | 2,500,000 | 2,500,000 | ||||||||||||
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||||||
Common stock voting rights | Each holder of Class A Common Stock is entitled to ten (10) votes for each share of Class A Common Stock held of record by such holder. The holders of shares of Class A Common Stock do not have cumulative voting rights. | ||||||||||||||
Common Class B [Member] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||
Common stock shares authorized | 7,500,000 | 7,500,000 | 7,500,000 | ||||||||||||
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||||||
Common Stocks [Member] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||
Common stock shares authorized | 60,000,000 | 60,000,000 | |||||||||||||
Common Stock [Member] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||
Common stock shares authorized | 50,000,000 | 50,000,000 | |||||||||||||
Common stock voting rights | Each holder of Common Stock is entitled to one (1) vote for each share of Common Stock held of record by such holder. The holders of shares of Common Stock do not have cumulative voting rights. | ||||||||||||||
Stock Issued During Period, Value, Stock Options Exercised | $ 1 | $ 3 |