Digital Ally (DGLY) 10-Q 13 Aug 20 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2020	Aug. 12, 2020
Cover [Abstract]
Entity Registrant Name	DIGITAL ALLY INC
Entity Central Index Key	0001342958
Document Type	10-Q
Document Period End Date	Jun. 30, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		26,581,600
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2020

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 16,165,550	$ 359,685
Accounts receivable-trade, less allowance for doubtful accounts of $123,224 - 2020 and 2019	1,080,884	1,071,018
Accounts receivable-other	538,350	514,730
Inventories, net	4,752,285	5,280,412
Income tax refund receivable, current	44,650	44,650
Prepaid expenses	574,456	381,090
Total current assets	23,156,175	7,651,585
Furniture, fixtures and equipment, net	208,291	197,063
Intangible assets, net	431,006	413,268
Operating lease right of use assets	769,635	122,459
Other assets	452,519	532,500
Total assets	25,017,626	8,916,875
Current liabilities:
Accounts payable	1,535,865	2,339,985
Accrued expenses	838,747	845,881
Operating lease obligations - Current	44,308	159,160
Contract liabilities - Current	1,756,402	1,707,943
Proceeds investment agreement obligation, at fair value - Current	3,615,000
Debt obligations - Current	552,258	1,827,748
Income taxes payable	1,158	5,934
Total current liabilities	8,343,738	6,886,651
Long-term liabilities:
Proceeds investment agreement obligation, at fair value - Long-term		6,500,000
Operating lease obligation - Long-term	731,334	44,460
Debt obligations - Long-term	1,016,642
Contract liabilities - Long-term	1,580,085	1,803,143
Total liabilities	11,671,799	15,234,254
Commitments and contingencies
Stockholders' Equity (Deficit):
Common stock, $0.001 par value per share; 50,000,000 shares authorized; shares issued: 26,645,118 - June 30, 2020 and 12,079,095 - December 31, 2019	26,645	12,079
Additional paid in capital	105,697,031	83,216,387
Treasury stock, at cost (63,518 shares)	(2,157,226)	(2,157,226)
Accumulated deficit	(90,220,623)	(87,388,619)
Total stockholders' equity (deficit)	13,345,827	(6,317,379)
Total liabilities and stockholders' equity (deficit)	$ 25,017,626	$ 8,916,875

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 123,224	$ 123,224
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	26,645,118	12,079,095
Treasury stock, shares	63,518	63,518

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenue:
Total revenue	$ 1,732,192	$ 2,546,983	$ 4,157,936	$ 5,097,779
Cost of revenue:
Total cost of revenue	1,339,434	1,596,171	2,500,148	2,965,227
Gross profit	392,758	950,812	1,657,788	2,132,552
Selling, general and administrative expenses:
Research and development expense	359,697	582,905	845,445	1,045,076
Selling, advertising and promotional expense	486,649	1,237,947	1,169,030	1,993,936
Stock-based compensation expense	376,738	585,195	688,415	1,310,393
General and administrative expense	1,312,828	1,977,123	3,025,417	4,301,663
Patent litigation settlement		(6,000,000)		(6,000,000)
Total selling, general and administrative expenses	2,535,912	(1,616,830)	5,728,307	2,651,068
Operating (loss) income	(2,143,154)	2,567,642	(4,070,519)	(518,516)
Other income (expense)
Interest income	15,609	5,628	21,869	23,612
Interest expense	(25,636)		(333,196)
Secured convertible notes issuance expense	(34,906)		(34,906)
Change in fair value of proceeds investment agreement	2,578,000	(2,961,000)	2,885,000	(3,098,000)
Change in fair value of secured convertible notes	(887,807)		(1,300,252)
Total other income (expense)	1,645,260	(2,955,372)	1,238,515	(3,074,388)
Loss before income tax benefit	(497,894)	(387,730)	(2,832,004)	(3,592,904)
Income tax benefit
Net loss	$ (497,894)	$ (387,730)	$ (2,832,004)	$ (3,592,904)
Net loss per share information:
Basic	$ (0.03)	$ (0.03)	$ (0.17)	$ (0.32)
Diluted	$ (0.03)	$ (0.03)	$ (0.17)	$ (0.32)
Weighted average shares outstanding:
Basic	18,976,724	11,305,248	16,430,214	11,124,222
Diluted	18,976,724	11,305,248	16,430,214	11,124,222
Product [Member]
Revenue:
Total revenue	$ 1,053,581	$ 1,945,724	$ 2,820,116	$ 3,866,188
Cost of revenue:
Total cost of revenue	1,165,528	1,468,828	2,154,774	2,731,899
Service and other [Member]
Revenue:
Total revenue	678,611	601,259	1,337,820	1,231,591
Cost of revenue:
Total cost of revenue	$ 173,906	$ 127,343	$ 345,374	$ 233,328

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid in Capital [Member]	Treasury Stock [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2018	$ 10,445	$ 78,117,507	$ (2,157,226)	$ (77,382,906)	$ (1,412,180)
Balance, shares at Dec. 31, 2018	10,445,445
Stock-based compensation		725,198			725,198
Restricted common stock grant	$ 522	(522)
Restricted common stock grant, shares	522,110
Restricted common stock forfeitures	$ (2)	2
Restricted common stock forfeitures, shares	(2,500)
Issuance of common stock upon exercise of common stock purchase warrants	$ 161	515,839			516,000
Issuance of common stock upon exercise of common stock purchase warrants, shares	161,000
Net loss				(3,205,174)	(3,205,174)
Balance at Mar. 31, 2019	$ 11,126	79,358,024	(2,157,226)	(80,588,080)	(3,376,156)
Balance, shares at Mar. 31, 2019	11,126,055
Balance at Dec. 31, 2018	$ 10,445	78,117,507	(2,157,226)	(77,382,906)	(1,412,180)
Balance, shares at Dec. 31, 2018	10,445,445
Net loss					(3,592,904)
Balance at Jun. 30, 2019	$ 11,494	80,990,851	(2,157,226)	(80,975,810)	(2,130,691)
Balance, shares at Jun. 30, 2019	11,494,055
Balance at Dec. 31, 2018	$ 10,445	78,117,507	(2,157,226)	(77,382,906)	(1,412,180)
Balance, shares at Dec. 31, 2018	10,445,445
Net loss					10,000,000
Balance at Dec. 31, 2019	$ 12,079	83,216,387	(2,157,226)	(87,388,619)	(6,317,379)
Balance, shares at Dec. 31, 2019	12,079,095
Balance at Mar. 31, 2019	$ 11,126	79,358,024	(2,157,226)	(80,588,080)	(3,376,156)
Balance, shares at Mar. 31, 2019	11,126,055
Stock-based compensation			585,195		585,195
Issuance of common stock upon exercise of common stock purchase warrants	$ 368	1,047,632			1,048,000
Issuance of common stock upon exercise of common stock purchase warrants, shares	368,000
Net loss				(387,730)	(387,730)
Balance at Jun. 30, 2019	$ 11,494	80,990,851	(2,157,226)	(80,975,810)	(2,130,691)
Balance, shares at Jun. 30, 2019	11,494,055
Balance at Dec. 31, 2019	$ 12,079	83,216,387	(2,157,226)	(87,388,619)	(6,317,379)
Balance, shares at Dec. 31, 2019	12,079,095
Stock-based compensation		311,677			311,677
Restricted common stock grant	$ 530	(530)
Restricted common stock grant, shares	530,050
Restricted common stock forfeitures	$ (23)	23
Restricted common stock forfeitures, shares	(22,500)
Issuance of common stock through underwritten public offering at $1.65 per share (net of offering expenses and underwriters' discount)	$ 2,522	2,499,614			2,502,136
Issuance of common stock through underwritten public offering at $1.65 per share (net of offering expenses and underwriters' discount), shares	2,521,740
Issuance of common stock upon conversion of secured convertible notes and interest	$ 960	1,342,400			1,343,360
Issuance of common stock upon conversion of secured convertible notes and interest, shares	959,543
Issuance of common stock purchase warrants in connection with issuance of unsecured promissory note payable		20,806			20,806
Net loss				(2,334,110)	(2,334,110)
Balance at Mar. 31, 2020	$ 16,068	87,390,377	(2,157,226)	(89,722,729)	(4,473,510)
Balance, shares at Mar. 31, 2020	16,067,928
Balance at Dec. 31, 2019	$ 12,079	83,216,387	(2,157,226)	(87,388,619)	(6,317,379)
Balance, shares at Dec. 31, 2019	12,079,095
Net loss					(2,832,004)
Balance at Jun. 30, 2020	$ 26,645	105,697,031	(2,157,226)	(90,220,623)	13,345,827
Balance, shares at Jun. 30, 2020	26,645,118
Balance at Mar. 31, 2020	$ 16,068	87,390,377	(2,157,226)	(89,722,729)	(4,473,510)
Balance, shares at Mar. 31, 2020	16,067,928
Stock-based compensation		376,738			376,738
Restricted common stock grant	$ 135	(135)
Restricted common stock grant, shares	135,450
Restricted common stock forfeitures	$ (13)	13
Restricted common stock forfeitures, shares	(12,750)
Issuance of common stock through underwritten public offering at $1.65 per share (net of offering expenses and underwriters' discount)	$ 3,554	5,346,859			5,350,413
Issuance of common stock through underwritten public offering at $1.65 per share (net of offering expenses and underwriters' discount), shares	3,554,545
Issuance of common stock through underwritten public offering at $2.15 per share (net of offering expenses and underwriters' discount)	$ 2,540	4,974,152			4,976,692
Issuance of common stock through underwritten public offering at $2.15 per share (net of offering expenses and underwriters' discount), shares	2,539,534
Issuance of common stock upon conversion of secured convertible notes and interest	$ 1,665	1,679,660			1,681,325
Issuance of common stock upon conversion of secured convertible notes and interest, shares	1,664,669
Issuance of common stock upon exercise of common stock purchase warrants	$ 2,694	5,200,428			5,203,122
Issuance of common stock upon exercise of common stock purchase warrants, shares	2,693,867
Issuance of common stock upon exercise of stock options	$ 2	7,798			7,800
Issuance of common stock upon exercise of stock options, shares	1,875
Issuance of common stock purchase warrants in connection with issuance of secured convertible notes		721,141			721,141
Net loss				(497,894)	(497,894)
Balance at Jun. 30, 2020	$ 26,645	$ 105,697,031	$ (2,157,226)	$ (90,220,623)	$ 13,345,827
Balance, shares at Jun. 30, 2020	26,645,118

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Parenthetical)	Jun. 30, 2020$ / shares
Public Offering [Member]
Common stock issued price per share	$ 1.65
Public Offering One [Member]
Common stock issued price per share	$ 2.15

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Cash Flows From Operating Activities:
Net loss	$ (497,894)	$ (2,334,110)	$ (387,730)	$ (3,205,174)	$ (2,832,004)	$ (3,592,904)	$ 10,000,000
Adjustments to reconcile net loss to net cash flows (used in) provided by operating activities:
Depreciation and amortization					134,143	206,969
Stock based compensation	376,738		585,195		688,415	1,310,393
Provision for inventory obsolescence					238,957	371,494
Amortization of discount on unsecured promissory notes					86,867
Change in fair value of secured convertible notes	887,807				1,300,252
Change in fair value of proceeds investment agreement	(2,578,000)		2,961,000		(2,885,000)	3,098,000
Provision for doubtful accounts receivable						20,000
Debt issuance costs					34,906
(Increase) decrease in:
Accounts receivable - trade					(9,866)	215,840
Accounts receivable - other					(23,620)	(118,556)
Inventories					289,170	(164,483)
Prepaid expenses					(193,366)	135
Operating lease right of use assets					(647,176)	224,413
Other assets					79,981	(133,000)
Increase (decrease) in:
Accounts payable					(804,120)	1,073,021
Accrued expenses					92,811	(1,018,433)
Income taxes payable					(4,776)	244
Operating lease obligations					572,022	(143,252)
Contract liabilities					(174,599)	(80,434)
Net cash (used in) provided by operating activities					(4,057,003)	1,269,447
Cash Flows from Investing Activities:
Purchases of furniture, fixtures and equipment					(96,011)	(73,705)
Additions to intangible assets					(67,098)	(26,884)
Net cash used in investing activities					(163,109)	(100,589)
Cash Flows from Financing Activities:
Proceeds from unsecured promissory note payable, related party					319,000
Proceeds from unsecured promissory note payable					100,000
Proceeds from promissory notes payable					1,568,900
Proceeds from issuance of common stock upon exercise of warrants					5,203,122	1,564,000
Proceeds from issuance of secured convertible notes payable					1,500,000
Proceeds from sale of common stock in underwritten public offering					12,829,241
Proceeds from exercise of stock options					7,800
Principal payment on subordinated notes payable					(400,000)
Principal payment on secured convertible notes					(748,180)
Principal payments on unsecured promissory note payable, related party					(319,000)
Debt issuance costs					(34,906)
Principal payment on proceeds investment agreement						(6,000,000)
Net cash provided by (used in) financing activities					20,025,977	(4,436,000)
Net increase (decrease) in cash and cash equivalents					15,805,865	(3,267,142)
Cash, cash equivalents, beginning of period		$ 359,685		$ 3,598,807	359,685	3,598,807	3,598,807
Cash, cash equivalents, end of period	$ 16,165,550		$ 331,655		16,165,550	331,655	$ 359,685
Supplemental disclosures of cash flow information:
Cash payments for interest					128,911
Cash payments for income taxes					4,776	5,756
Supplemental disclosures of non-cash investing and financing activities:
Restricted common stock grant					664	522
Restricted common stock forfeitures					36	2
Cashless exercise of common stock purchase warrants					7
Impact of Adoption of ASC 842 - obtaining right of use asset for lease liability						500,751
Issuance of common stock upon conversion of secured convertible notes					3,024,685
Amounts allocated to common stock purchase warrants in connection with issuance of unsecured promissory note payable					$ 741,947

Nature of Business and Summary

Nature of Business and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business and Summary of Significant Accounting Policies	NOTE 1. NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations: Digital Ally, Inc. its wholly-owned subsidiaries, Digital Ally International, Inc. and Shield Products, LLC (collectively, “Digital Ally,” “Digital,” the “Company”) produces digital video imaging, storage products and disinfectant and related safety products for use in law enforcement, security and commercial applications. The Company’s products include in-car digital video/audio recorders contained in a rear-view mirror for use in law enforcement and commercial fleets; a system that provides its law enforcement customers with audio/video surveillance from multiple vantage points and hands-free automatic activation of body-worn cameras and in-car video systems; a miniature digital video system designed to be worn on an individual’s body; and cloud storage solutions. The Company has recently added two new lines of branded products: (1) the ThermoVu™ line, which is a line of self-contained temperature monitoring stations that provides alerts and controls facility access when an individual’s temperature exceeds a pre-set threshold and (2) the Shield™ disinfectant and cleanser line, which is for use against viruses and bacteria and which we began offering to the Company’s law enforcement and commercials customers beginning late in the second quarter of 2020. Both product lines are manufactured by third parties. In addition, the Company has active research and development programs to adapt its technologies to other applications. It can integrate electronic, radio, computer, mechanical, and multi-media technologies to create unique solutions to address needs in a variety of other industries and markets, including mass transit, school bus, taxicab and the military. The Company sells its products to law enforcement agencies, private security customers and organizations and consumer and commercial fleet operators through direct sales domestically and third-party distributors internationally. The Company was originally incorporated in Nevada on December 13, 2000 as Vegas Petra, Inc. and had no operations until 2004. On November 30, 2004, Vegas Petra, Inc. entered into a Plan of Merger with Digital Ally, Inc., at which time the merged entity was renamed Digital Ally, Inc. Basis of Presentation: The condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six month period ended June 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. The balance sheet at December 31, 2019 has been derived from the audited financial statements at that date but does not include all the information and footnotes required by generally accepted accounting principles in the United States for complete financial statements. For further information, refer to the audited financial statements and footnotes included in the Company’s annual report on Form 10-K for the year ended December 31, 2019 and the unaudited financial statements and footnotes included in the Company’s quarterly report on Form 10-Q for the quarter ended March 31, 2020. COVID-19 pandemic: The World Health Organization has declared the outbreak of COVID-19, or coronavirus, which began in December 2019, a pandemic and the U.S. federal government has declared it a national emergency. The COVID-19 pandemic had a negative impact on our revenues in the first and second quarters of 2020 and we expect it will adversely affect our business and operations during the remainder of 2020. While its full and continued impact cannot be determined at present, we do expect it will have a material adverse effect on our future business, financial condition, results of operations, and cash flows. The global spread of COVID-19 has already created significant volatility, uncertainty and economic disruption in the markets in which we operate. Governments, public institutions, and other organizations in countries and localities where cases of COVID-19 have been detected are taking certain emergency measures to mitigate its spread, including implementing travel restrictions and closing factories, schools, public buildings, and businesses. We are closely monitoring the spread of COVID-19 and continually assessing its potential effects on our business. In response to the impact that the COVID-19 pandemic and other future pandemics may have on the Company’s customers and legacy products, the Company has recently added two new lines of branded products: (1) the ThermoVu™ which is a line of self-contained temperature monitoring stations that provides alerts and controls facility access when an individual’s temperature exceeds a pre-set threshold and (2) the Shield™ disinfectant and cleanser line which is for use against viruses and bacteria and which we began offering to the Company’s law enforcement and commercials customers beginning late in the second quarter of 2020. The extent to which our future results are affected by COVID-19 will largely depend on future developments that cannot be accurately predicted, including the duration and scope of the pandemic, governmental and business responses to the pandemic and the impact on the global economy, our customers’ demand for our products and services, and our ability to provide our products and services, particularly as result of our employees working remotely and/or the closure of certain offices and facilities. Management’s Liquidity Plan and Going Concern: The accompanying unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company incurred operating losses for the six months ended June 30, 2020 and for the year ended December 31, 2019 primarily due to reduced revenues and gross margins caused by a variety of factors, including the COVID-19 pandemic and its related effects on our customers and our supply chain, and by competitors’ introduction of newer products with more advanced features together with significant price cutting of their products. The Company incurred net losses of approximately $2.8 million during the six months ended June 30, 2020 and $10.0 million for the year ended December 31, 2019 and it had an accumulated deficit of $90.2 million as of June 30, 2020. During 2019, the Company settled one of its patent infringement cases and received a lump sum payment of $6.0 million, which was used to pay its obligations under its Proceeds Investment Agreement, as more fully described in Note 4 — “Proceeds Investment Agreement Obligation.” Note 3 – “Debt Obligations” The Company will have to restore positive operating cash flows and profitability over the next year and/or raise additional capital to fund its operational plans, meet its customary payment obligations and otherwise execute its business plan. There can be no assurance that it will be successful in restoring positive cash flows and profitability, or that it can raise additional financing when needed, and obtain it on terms acceptable or favorable to the Company. The Company has increased its addressable market to non-law enforcement customers and obtained new non-law enforcement contracts in 2020 and 2019, which contracts include recurring revenue during the period 2020 to 2023. Further, it added two new product lines in response to the Covid-19 pandemic. The Company believes that its quality control and cost cutting initiatives, expansion to non-law enforcement sales channels and new product introductions will eventually restore positive operating cash flows and profitability, although it can offer no assurances in this regard. The extent to which its future operating results are affected by COVID-19 will largely depend on future developments which cannot be accurately predicted, including the duration and scope of the pandemic, governmental and business responses to the pandemic and the impact on the global economy, our customers’ demand for our products and services, and our ability to provide our products and services, particularly as result of our employees working remotely and/or the closure of certain offices and facilities. While degree of impact of these factors is uncertain, we believe that the COVID-19 pandemic or the perception of its effects will have a material adverse effect on our business, financial condition, results of operations, and cash flows. Based on the uncertainties described above, the Company believes its business plan does not alleviate the existence of substantial doubt about its ability to continue as a going concern within one year from the date of the issuance of these unaudited condensed consolidated financial statements. The accompanying unaudited condensed consolidated financial statements do not include any adjustments related to the recoverability and classification of asset amounts or the classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Basis of Consolidation: The accompanying financial statements include the consolidated accounts of Digital Ally and its wholly-owned subsidiaries, Digital Ally International, Inc. and Shield Products, LLC. All intercompany balances and transactions have been eliminated during consolidation. The Company formed Digital Ally International, Inc. during August 2009 to facilitate the export sales of its products. The Company formed Shield Products, LLC in May 2020 to facilitate the sales of its Shield™ line of disinfectant/cleanser products and ThermoVu™ line of temperature monitoring equipment. Revenue Recognition: The Company applies the provisions of Accounting Standards Codification (ASC) 606-10, Revenue from Contracts with Customers The Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with the customer. In situation where sales are to a distributor, the Company had concluded its contracts are with the distributor as the Company holds a contract bearing enforceable rights and obligations only with the distributor. As part of part of its consideration for the contract, the Company evaluates certain factors including the customers’ ability to pay (or credit risk). For each contract, the Company considers the promise to transfer products, each of which is distinct, to be the identified performance obligations. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which it expects to be entitled. As the Company’s standard payment terms are less than one year, it has elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. The Company allocates the transaction price to each distinct product based on its relative standalone selling price. The product price as specified on the purchase order is considered the standalone selling price as it is an observable input which depicts the price as if sold to a similar customer in similar circumstances. Revenue is recognized when control of the product is transferred to the customer (i.e. when the Company’s performance obligations is satisfied), which typically occurs at shipment. Further in determining whether control has been transferred, the Company considers if there is a present right to payment and legal title, along with risks and rewards of ownership having transferred to the customer. Customers do not have a right to return the product other than for warranty reasons for which they would only receive repair services or replacement product. The Company has also elected the practical expedient under ASC 340-40-25-4 to expense commissions for product sales when incurred as the amortization period of the commission asset the Company would have otherwise recognized is less than one year. The Company sells its products and services to law enforcement and commercial customers in the following manner: ● Sales to domestic customers are made direct to the end customer (typically a law enforcement agency or a commercial customer) through its sales force, which is composed of its employees. Revenue is recorded when the product is shipped to the end customer. ● Sales to international customers are made through independent distributors who purchase products from the Company at a wholesale price and sell to the end user (typically law enforcement agencies or a commercial customer) at a retail price. The distributor retains the margin as its compensation for its role in the transaction. The distributor generally maintains product inventory, customer receivables and all related risks and rewards of ownership. Accordingly, upon application of steps one through five above, revenue is recorded when the product is shipped to the distributor consistent with the terms of the distribution agreement. ● Repair parts and services for domestic and international customers are generally handled by its inside customer service employees. Revenue is recognized upon shipment of the repair parts and acceptance of the service or materials by the end customer. Sales taxes collected on products sold are excluded from revenues and are reported as accrued expenses in the accompanying balance sheets until payments are remitted. Service and other revenue is comprised of revenues from extended warranties, repair services, cloud revenue and software revenue. Revenue is recognized upon shipment of the product and acceptance of the service or materials by the end customer for repair services. Revenue for extended warranty, cloud service or other software-based products is over the term of the contract warranty or service period. A time-elapsed method is used to measure progress because the Company transfers control evenly over the contractual period. Accordingly, the fixed consideration related to these revenues is generally recognized on a straight-line basis over the contract term, as long as the other revenue recognition criteria have been met. Contracts with some of the Company’s customers contain multiple performance obligations that are distinct and accounted for separately. The transaction price is allocated to the separate performance obligations on a relative standalone selling price (“SSP”). The Company determined SSP for all the performance obligations using observable inputs, such as standalone sales and historical pricing. SSP is consistent with the Company’s overall pricing objectives, taking into consideration the type of service being provided. SSP also reflects the amount the Company would charge for the performance obligation if it were sold separately in a standalone sale. Multiple performance obligations consist of product, software, cloud subscriptions and extended warranties. The Company’s multiple performance obligations may include future in-car or body-worn camera devices to be delivered at defined points within a multi-year contract, and in those arrangements, the Company allocates total arrangement consideration over the life of the multi-year contract to future deliverables using management’s best estimate of selling price. Contract liabilities consist of deferred revenue and include payments received in advance of performance under the contract and are reported separately as current liabilities and non-current liabilities in the Condensed Consolidated Balance Sheets. Such amounts consist of extended warranty contracts, prepaid cloud services and prepaid installation services and are generally recognized as the respective performance obligations are satisfied. Total contract liabilities consist of the following: Contract liabilities consist of deferred revenue and include payments received in advance of performance under the contract and are reported separately as current liabilities and non-current liabilities in the Condensed Consolidated Balance Sheets. Such amounts consist of extended warranty contracts, prepaid cloud services and prepaid installation services and are generally recognized as the respective performance obligations are satisfied. Accounts Receivable: Accounts receivable are carried at original invoice amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a weekly basis. The Company determines the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering a customer’s financial condition, credit history, and current economic conditions. Trade receivables are written off when deemed uncollectible. Recoveries of trade receivables previously written off are recorded when received. A trade receivable is considered to be past due if any portion of the receivable balance is outstanding for more than thirty (30) days beyond terms. No interest is charged on overdue trade receivables. Segments of Business: Management has determined that its operations comprise one reportable segment: the sale of digital audio and video recording and speed detection devices. For the three and six months ended June 30, 2020 and 2019, sales by geographic area were as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Sales by geographic area: United States of America $ 1,726,119 $ 2,477,717 $ 4,097,815 $ 4,992,059 Foreign 6,073 69,266 60,121 105,720 Total $ 1,732,192 $ 2,546,983 $ 4,157,936 $ 5,097,779 Sales to customers outside of the United States are denominated in U.S. dollars. All Company assets are physically located within the United States. Recent Accounting Pronouncements: In February 2016, the FASB issued Accounting Standard Update (“ASU”) 2016-02, Leases The Company adopted the new guidance on January 1, 2019 using the optional transitional method and elected to use the package of three practical expedients which allows the Company not to reassess whether contracts are or contain leases, lease classification and whether initial direct costs qualify for capitalization. The Company has completed its assessment of the impact of the standard and determined that the only lease that the Company held was an operating lease for its office and warehouse space. Upon adoption of the standard, the Company recorded Right of Use (ROU) assets of approximately $501,000 and lease liabilities of approximately $582,000 related to it office and warehouse space operating leases. The Company also removed deferred rent of approximately $81,000 when adopting the new guidance. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses” to improve information on credit losses for financial assets and net investment in leases that are not accounted for at fair value through net income. ASU 2016-13 replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses. In April 2019 and May 2019, the FASB issued ASU No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments” and ASU No. 2019-05, “Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief” which provided additional implementation guidance on the previously issued ASU. In November 2019, the FASB issued ASU 2019-10, “Financial Instruments - Credit Loss (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842),” which defers the effective date for public filers that are considered small reporting companies (“SRC”) as defined by the Securities and Exchange Commission (the “SEC”) to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Since the Company is an SRC, implementation will not be required until January 1, 2023. The Company will continue to evaluate the effect of adopting ASU 2016-13 will have on the Company’s consolidated financial statements. In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU No. 2018-15, Intangible-Goodwill and Other Internal-Use Software (Subtopic 350-40) In December 2019, the FASB issued ASU No. 2019-12, Income Taxes - simplifying the accounting for income taxes (Topic 740), which is meant to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, Income Taxes. The amendment also improves consistent application and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The adoption of this standard did not have a significant impact on the Company’s financial position and results of operations.

Inventories

Inventories	6 Months Ended
	Jun. 30, 2020
Inventory Disclosure [Abstract]
Inventories	NOTE 2. INVENTORIES Inventories consisted of the following at June 30, 2020 and December 31, 2019: June 30, 2020 December 31, 2019 Raw material and component parts $ 2,575,710 $ 4,481,611 Work-in-process 30,679 35,858 Finished goods 4,146,308 4,906,956 Subtotal 6,752,697 9,424,425 Reserve for excess and obsolete inventory (2,000,412 ) (4,144,013 ) Total $ 4,752,285 $ 5,280,412 Finished goods inventory includes units held by potential customers and sales agents for test and evaluation purposes. The cost of such units totaled $140,158 and $80,711 as of June 30, 2020 and December 31, 2019, respectively.

Debt Obligations

Debt Obligations	6 Months Ended
	Jun. 30, 2020
Debt Disclosure [Abstract]
Debt Obligations	NOTE 3. DEBT OBLIGATIONS Debt obligations is comprised of the following: June 30, 2020 December 31, 2019 Payroll protection program loan (PPP) $ 1,418,900 $ — Economic injury disaster loan (EIDL) 150,000 — 2019 Secured convertible notes, at fair value — 1,593,809 Unsecured promissory notes payable, less unamortized discount of $-0- and $66,061 at June 30, 2020 and December 31, 2019, respectively — 233,939 Debt obligations 1,568,900 1,827,748 Less: current maturities of debt obligations 552,258 1,827,748 Debt obligations, long-term $ 1,016,642 $ — Debt obligations mature as follows as of June 30, 2020: June 30, 2020 2020 (July 1, 2020 to December 31, 2020) $ 68,241 2021 948,391 2022 401,321 2023 3,166 2024 3,286 2025 and thereafter 144,495 Total $ 1,568,900 2020 Small Business Administration Notes On April 4, 2020, the Company issued a promissory note in connection with the receipt of the PPP Loan of $1,418,900 under the SBA’s PPP Program under the CARES Act. The PPP Loan has a two-year term and bears interest at a rate of 1.0% per annum. Monthly principal and interest payments are deferred for six months after the date of disbursement and total $79,850.57 per month thereafter. The PPP Loan may be prepaid at any time prior to maturity with no prepayment penalties. The promissory note contains events of default and other provisions customary for a loan of this type. The PPP provides that the PPP Loan may be partially or wholly forgiven if the funds are used for certain qualifying expenses as described in the CARES Act. The Company intends to use the majority of the PPP Loan amount for qualifying expenses and to apply for forgiveness of the PPP Loan in accordance with the terms of the CARES Act. On May 12, 2020 the Company received $150,000 in loan funding from the SBA under the EIDL program administered by the SBA, which program was expanded pursuant to the recently enacted CARES Act. The EIDL is evidenced by a promissory note, dated May 8, 2020, in the original principal amount of $150,000 with the SBA, the lender. Under the terms of the note issued under the EIDL program, interest accrues on the outstanding principal at the rate of 3.75% per annum. The term of such note is thirty years, though it may be payable sooner upon an event of default under such note. Monthly principal and interest payments are deferred for twelve months after the date of disbursement and total $731.00 per month thereafter. Such note may be prepaid in part or in full, at any time, without penalty. 2019 Secured Convertible Notes On August 5, 2019, the Company, entered into a securities purchase agreement with several accredited investors providing for the issuance of (i) the Company’s 8% secured convertible notes due August 4, 2020 with a principal face amount of $2,777,777.78, which convertible notes are, subject to certain conditions, convertible into 1,984,126 shares of the Company’s common stock, at a price per share of $1.40 (the “2019 Convertible Notes”); (ii) five-year warrants to purchase an aggregate of 571,428 shares of Common Stock at an exercise price of $1.8125, which warrants are immediately exercisable upon issuance and on a cashless basis if the Warrants have not been registered 180 days after the date of issuance; and (iii) the issuance of shares of common stock equal to 5% of the aggregate purchase price of the convertible notes, with an aggregate value of $125,000 (the “Commitment Shares”). The accredited investors purchased the foregoing securities for an aggregate cash purchase price of $2,500,000. Under the purchase agreement, the convertible notes and warrants contain provisions whereby the accredited investors are prohibited from exercising their rights to convert the notes or exercise the warrants if, as a result of such conversion or exercise, such holder, together with its affiliates, would own more than 4.99% of the total number of shares of the Company’s common stock outstanding immediately after giving effect to such exercise. However, the investors may increase or decrease such percentage to any other percentage not in excess of 9.99%, provided that any increase in such percentage shall not be effective until 61 days after such notice to the Company. The Company elected to account for the secured convertible notes on the fair value basis. Therefore, the Company determined the fair value of the (1) secured convertible notes, (2) the Commitment Shares and (3) the common stock purchase warrants which yielded estimated fair values of the secured convertible notes including their embedded derivatives, the Commitment Shares and the detachable common stock purchase warrants. The following represents the resulting fair value as determined on August 5, 2019, the date of origination: Secured convertible notes $ 1,845,512 Common stock issued as Commitment Shares 118,749 Common stock purchase warrants 535,739 Gross cash proceeds $ 2,500,000 During the six months ended June 30, 2020, the holders of the 2019 Convertible Notes exercised their right to convert principal balances aggregating $1,259,074 into equity. In addition, the Company paid regular monthly principal payments totaling $172,839 during the six months ended June 30, 2020 and on March 3, 2020, the Company exercised its right to prepay in cash the remaining outstanding principal balance aggregating $574,341. There remains no outstanding 2019 Convertible Notes as of June 30, 2020 as a result of these conversions and prepayments. Under the fair value basis, the Company determines the fair value of the secured convertible notes and adjusts the carrying value of the secured convertible notes at each reporting date with the resulting charge or credit being reflected in the condensed consolidated statement of operations. Following is an analysis of the activity in the secured convertible notes during the six months ended June 30, 2020: Amount Balance at December 31, 2019 $ 1,593,809 Principal repaid during the period by issuance of common stock (1,259,074 ) Principal repaid during the period by payment of cash (747,180 ) Change in fair value of secured convertible note during the period 412,445 Balance at June 30, 2020 $ — Following is a range of certain estimates and assumptions utilized as of December 31, 2019 to determine the fair value of secured convertible notes: December 31, 2019 Assumptions Volatility – range 115 % Risk-free rate 1.60 % Contractual term 0.6 years Calibrated stock price $ 1.06 Debt yield 123.6 % 2020 Secured Convertible Notes On April 17, 2020, the Company entered into a securities purchase agreement with several accredited investors providing for the issuance of (i) the Company’s 8% secured convertible notes due April 16, 2021 with a principal face amount of $1,666,666, which convertible notes are, subject to certain conditions, convertible into 1,650,164 shares of the Company’s common stock, at a price per share of $1.01 (the “2020 Convertible Notes”), and (ii) five-year warrants to purchase an aggregate of 1,237,624 shares of Common Stock at an exercise price of $1.31, which warrants are immediately exercisable upon issuance and on a cashless basis if the Warrants have not been registered 180 days after the date of issuance. The accredited investors purchased the foregoing securities for an aggregate cash purchase price of $1,500,000. Under the purchase agreement, the convertible notes and warrants contain provisions whereby the accredited investors are prohibited from exercising their rights to convert the notes or exercise the warrants if, as a result of such conversion or exercise, such holder, together with its affiliates, would own more than 4.99% of the total number of shares of the Company’s common stock outstanding immediately after giving effect to such exercise. However, the investors may increase or decrease such percentage to any other percentage not in excess of 9.99%, provided that any increase in such percentage shall not be effective until 61 days after such notice to the Company. The Company elected to account for the secured convertible notes on the fair value basis. Therefore, the Company determined the fair value of the secured convertible notes and the common stock purchase warrants which yielded estimated fair values of the secured convertible notes including their embedded derivatives and the detachable common stock purchase warrants. The following represents the resulting fair value as determined on April 17, 2020, the date of origination: Secured convertible notes $ 778,859 Common stock purchase warrants 721,141 Gross cash proceeds $ 1,500,000 During the six months ended June 30, 2020, the holders of the 2020 Convertible Notes exercised their right to convert principal balances aggregating $1,665,666 into equity. In addition, on June 12, 2020, the Company exercised its right to prepay in cash the remaining outstanding principal balance aggregating $1,000. There remains no outstanding 2020 Convertible notes as of June 30, 2020 as a result of these conversions and prepayments. Under the fair value basis, the Company determines the fair value of the secured convertible notes and adjusts the carrying value of the secured convertible notes at each reporting date with the resulting charge or credit being reflected in the condensed consolidated statement of operations. Following is an analysis of the activity in the secured convertible notes during the six months ended June 30, 2020: Amount Balance at December 31, 2019 $ — Issuance of 2020 convertible notes at fair value 778,859 Principal repaid during the period by issuance of common stock (1,665,666 ) Principal repaid during the period by payment of cash (1,000 ) Change in fair value of secured convertible note during the period 887,807 Balance at June 30, 2020 $ — Following is a range of certain estimates and assumptions utilized as of the April 17, 2020 issuance date to determine the fair value of secured convertible notes: April 17, 2020 Assumptions Volatility – range 90 % Risk-free rate 0.36 % Contractual term 1.0 years Stock price $ 0.92 Debt yield 132.2 % Unsecured Promissory Notes Payable On December 23, 2019, the Company, borrowed $300,000 under an unsecured note payable to a private, third-party lender. The promissory note bore interest at the rate of 8% per annum with principal and accrued interest payable on or before its maturity date of March 31, 2020 (this note was repaid in full on May 6, 2020). The Company granted the lender warrants exercisable to purchase a total of 107,000 shares of its common stock at an exercise price of $1.40 per share until December 23, 2024. The Company allocated $71,869 of the proceeds of the promissory note to additional paid-in-capital, which represented the grant date relative fair value of the warrants issued to the lender. The discount was amortized to interest expense ratably over the term of the promissory note which approximates the effective interest method. The amortization of discount resulted in $66,061 of the discount amortized to interest expense during the six months ended June 30, 2020. On January 17, 2020, the Company, borrowed $100,000 under an unsecured note payable to a private, third-party lender. The promissory note bore interest at the rate of 8% per annum with principal and accrued interest payable on or before its maturity date of April 17, 2020. The Company granted the lender warrants exercisable to purchase a total of 35,750 shares of its common stock at an exercise price of $1.40 per share until January 17, 2025. The Company allocated $20,806 of the proceeds of the promissory note to additional paid-in-capital, which represented the grant date relative fair value of the warrants issued to the lender. The note was repaid in full on March 12, 2020 and the discount was amortized to interest expense through the date of payment. The amortization of discount resulted in $20,806 of the discount amortized to interest expense during the six months ended June 30, 2020. Unsecured Promissory Notes Payable – Related party During February and April 2020, the Company borrowed a total of $319,000 from the Company’s Chairman, CEO & President under an unsecured promissory note bearing interest at 6% through its May 28, 2020 maturity date. The proceeds from the note were used for general corporate purposes. The principal balance and related accrued interest was paid in full during the six months ended June 30, 2020. Total interest accrued and paid on this note was $5,236.

Proceeds Investment Agreement O

Proceeds Investment Agreement Obligation	6 Months Ended
	Jun. 30, 2020
Proceeds Investment Agreement Obligation
Proceeds Investment Agreement Obligation	NOTE 4. PROCEEDS INVESTMENT AGREEMENT OBLIGATION The proceeds investment agreement obligations is comprised of the following: June 30, 2020 December 31, 2019 Proceeds investment agreement, at fair value $ 3,615,000 $ 6,500,000 Less: Current portion (3,615,000 ) — Proceeds investment agreement, at fair value - Long-term $ — $ 6,500,000 On July 31, 2018, the Company entered into a Proceeds Investment Agreement (the “PIA”) with Brickell Key Investments LP (“BKI”), pursuant to which BKI funded an aggregate of $500,000 (the “First Tranche”) to be used (i) to fund the Company’s litigation proceedings relating to the infringement of certain patent assets listed in the PIA and (ii) to repay the Company’s existing debt obligations and for certain working capital purposes set forth in the PIA. Pursuant to the PIA, BKI was granted an option to provide the Company with an additional $9.5 million, at BKI’s sole discretion (the “Second Tranche”). On August 21, 2018, BKI exercised its option on the Second Tranche for $9.5 million which completed the $10.0 million funding. Pursuant to the PIA and in consideration for the $10.0 million in funding, the Company agreed to assign to BKI (i) 100% of all gross, pre-tax monetary recoveries paid by any defendant(s) to the Company or its affiliates agreed to in a settlement or awarded in judgment in connection with the patent assets, plus any interest paid in connection therewith by such defendant(s) (the “Patent Assets Proceeds”), up to the minimum return (as defined in the PIA) and (ii) if BKI has not received its minimum return by the earlier of a liquidity event (as defined in the PIA) and July 31, 2020, then the Company agreed to assign to BKI 100% of the Patent Asset Proceeds until BKI has received an amount equal to the minimum return on $4.0 million. Pursuant to the PIA, the Company granted BKI (i) a senior security interest in the Patent Assets, the claims (as defined in the PIA) and the Patent Assets Proceeds until such time as the minimum return is paid, in which case, the security interest on the patent assets, the claims and the Patent Assets Proceeds will be released, and (ii) a senior security interest in all other assets of the Company until such time as the minimum return is paid on $4.0 million, in which case, the security interest on such other assets will be released. The security interest is enforceable by BKI if the Company is in default under the PIA which would occur if (i) the Company fails, after five (5) days’ written notice, to pay any due amount payable to BKI under the PIA, (ii) the Company fails to comply with any provision of the PIA or any other agreement or document contemplated under the PIA Agreement, (iii) the Company becomes insolvent or insolvency proceedings are commenced (and not subsequently discharged) with respect to the Company, (iv) the Company’s creditors commence actions against the Company (which are not subsequently discharged) that affect material assets of the Company, (v) the Company, without BKI’s consent, incurs indebtedness other than immaterial ordinary course indebtedness up to $500,000, (vi) the Company fails, within five (5) business days following the closing of the second tranche, to fully satisfy its obligations to certain holders of the Company’s senior secured convertible promissory notes listed in the PIA and fails to obtain unconditional releases from such holders as to the Company’s obligations to such holders and the security interests in the Company held by such holders or (vii) there is an uncured non-compliance of the Company’s obligations or misrepresentations by the Company under the PIA. Under the PIA, the Company issued BKI a warrant to purchase up to 465,712 shares of the Company’s common stock (the “PIA Warrant”), at an exercise price of $2.60 per share provided that the holder of the PIA Warrant will be prohibited from exercising the PIA Warrant if, as a result of such exercise, such holder, together with its affiliates, would own more than 4.99% of the total number of shares of the Company’s common stock outstanding immediately after giving effect to such exercise. However, such holder may increase or decrease such percentage to any other percentage not in excess of 9.99%, provided that any increase in such percentage shall not be effective until 61 days after such notice to the Company. The PIA Warrant is exercisable for five years from the date of issuance and is exercisable on a cashless exercise basis if there is no effective registration statement. No contractual registration rights were given. The Company elected to account for the PIA on the fair value basis. Therefore, the Company determined the fair value of the PIA and PIA Warrants which yielded estimated fair values of the PIA including their embedded derivatives and the detachable PIA Warrants as follows: Proceeds investment agreement $ 9,067,513 Common stock purchase warrants 932,487 Gross cash proceeds $ 10,000,000 The Company utilized a probability weighted present value of expected patent asset proceeds for the litigation involving both Axon Enterprises, Inc. (“Axon,” formerly known as Taser International, Inc.) and WatchGuard (see Note 9 – “Commitments and Contingencies”) June 30, 2020 December 31, 2019 Discount rate 15.13% -15.18% 3.0% -16.6% Expected term to patent asset proceeds payment 0.33 years – 3.75 .06 - .29 years 0.58 years - 4 years Probability of success 90.0 % 5.9% -38.5% Estimated minimum return payable to BKI $ 4 million $ 21 million Negotiation discount 0.0 % 43.3 % In May 2019, the Company settled its patent infringement litigation with WatchGuard whereby it received a lump-sum payment of $6.0 million as further described in Note 9 – “Commitments and Contingencies” The following represents activity in the PIA during the six months ended June 30, 2020: Beginning balance as of December 31, 2019 $ 6,500,000 Repayment of obligation — Change in the fair value during the period (2,885,000 ) Ending balance as of June 30, 2020 $ 3,615,000 Based on the recent unfavorable decisions by the United States Court of Appeals for the Tenth Circuit (see Note 9 – “Commitments and Contingencies”) (See Note 14 – “Subsequent Events”).

Fair Value Measurement

Fair Value Measurement	6 Months Ended
	Jun. 30, 2020
Fair Value Disclosures [Abstract]
Fair Value Measurement	NOTE 5. FAIR VALUE MEASUREMENT In accordance with ASC Topic 820 — Fair Value Measurements and Disclosures ASC 820 utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: ● Level 1 — Quoted prices in active markets for identical assets and liabilities ● Level 2 — Other significant observable inputs (including quoted prices in active markets for similar assets or liabilities) ● Level 3 — Significant unobservable inputs (including the Company’s own assumptions in determining the fair value) The following table represents the Company’s hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2020 and December 31, 2019: June 30, 2020 Level 1 Level 2 Level 3 Total Liabilities: Secured convertible notes $ — $ — $ — $ — Proceeds investment agreement obligation — — 3,615,000 3,615,000 $ — $ — $ 3,615,000 $ 3,615,000 December 31, 2019 Level 1 Level 2 Level 3 Total Liabilities: Secured convertible notes $ — $ — $ 1,593,809 $ 1,593,809 Proceeds investment agreement obligation — — 6,500,000 6,500,000 $ — $ — $ 8,093,809 $ 8,093,809 The following table represents the change in Level 3 tier value measurements: 2019 2020 Secured Secured Proceeds Convertible Convertible Investment Notes Notes Agreement Total Balance, December 31, 2019 $ 1,593,809 $ — $ 6,500,000 $ 8,093,809 Issuance of secured convertible debt — 778,859 — 778,859 Conversion of secured convertible debentures (1,259,074 ) (1,665,666 ) — (2,924,740 ) Repayment of secured convertible notes (747,180 ) (1,000 ) — (748,180 ) Change in fair value of secured convertible debentures and proceeds investment agreement 412,445 887,807 (2,885,000 ) (1,548,748 ) Balance, June 30, 2020 $ — $ — $ 3,615,000 $ 3,615,000

Accrued Expenses

Accrued Expenses	6 Months Ended
	Jun. 30, 2020
Payables and Accruals [Abstract]
Accrued Expenses	NOTE 6. ACCRUED EXPENSES Accrued expenses comprised of the following at June 30, 2020 and December 31, 2019: June 30, 2020 December 31, 2019 Accrued warranty expense $ 30,711 $ 17,838 Accrued litigation costs 250,000 295,000 Accrued sales commissions 25,772 28,480 Accrued payroll and related fringes 181,970 233,254 Accrued insurance 60,894 78,579 Accrued sales returns and allowances 10,267 18,258 Accrued sales taxes 43,900 50,136 Other 235,233 124,336 $ 838,747 $ 845,881 Accrued warranty expense comprised of the following for the six months ended June 30, 2020: Beginning balance $ 17,838 Provision for warranty expense 52,796 Charges applied to warranty reserve (39,923 ) Ending balance $ 30,711

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Income Taxes	NOTE 7. INCOME TAXES The effective tax rate for the six months ended June 30, 2020 and 2019 varied from the expected statutory rate due to the Company continuing to provide a 100% valuation allowance on net deferred tax assets. The Company determined that it was appropriate to continue the full valuation allowance on net deferred tax assets as of June 30, 2020 primarily because of the Company’s history of operating losses. The Company has incurred operating losses in recent years and it continues to be in a three-year cumulative loss position at June 30, 2020. Accordingly, the Company determined there was not sufficient positive evidence regarding its potential for future profits to outweigh the negative evidence of our three-year cumulative loss position under the guidance provided in ASC 740. Therefore, it determined to continue to provide a 100% valuation allowance on its net deferred tax assets. The Company expects to continue to maintain a full valuation allowance until it determines that it can sustain a level of profitability that demonstrates its ability to realize these assets. To the extent the Company determines that the realization of some or all of these benefits is more likely than not based upon expected future taxable income, a portion or all of the valuation allowance will be reversed. As of June 30, 2020, it had approximately $66,925,000 of net operating loss carryforwards and $1,795,000 of research and development tax credit carryforwards as determined on December 31, 2019 available to offset future net taxable income.

Operating Leases

Operating Leases	6 Months Ended
	Jun. 30, 2020
Leases [Abstract]
Operating Leases	NOTE 8. OPERATING LEASES On May 13, 2020, the Company entered into an operating lease for new warehouse and office space which will serve as its new principal executive office and primary business location. The terms of the lease include no base rent for the first six months and monthly payments ranging from $12,398 to $13,693 thereafter, with a termination date of December 2026. The Company is responsible for property taxes, utilities, insurance and its proportionate share of common area costs related to its new location. The Company took possession of the leased facilities on June 15, 2020. The remaining lease term for the Company’s office and warehouse operating lease as of June 30, 2020 was seventy-eight months. The Company’s previous office and warehouse space lease expired in April 2020 and the Company paid holdover rent for the time period until it moved to and commenced occupying the new space on June 15, 2020. The Company entered into an operating lease with a third party in October 2019 for copiers used for office and warehouse purposes. The terms of the lease include 48 monthly payments of $1,598 with a maturity date of October 2023. The Company has the option to purchase the equipment at maturity for its estimated fair market value at that point in time. The remaining lease term for the Company’s copier operating lease as of June 30, 2020 was 40 months. Lease expense related to the office space and copier operating leases were recorded on a straight-line basis over their respective lease terms. Total lease expense was $252,290 for the six months ended June 30, 2020. The discount rate implicit within the Company’s operating leases was not generally determinable and therefore it determined the discount rate based on its incremental borrowing rate on the information available at commencement date. As of commencement date, the operating lease liabilities reflect a weighted average discount rate of 8%. The following sets forth the operating lease right of use assets and liabilities as of June 30, 2020: Assets: Operating lease right of use assets $ 769,635 Liabilities: Operating lease obligations-Long-term portion $ 731,334 Operating lease obligations-Current portion $ 44,308 Total operating lease obligations $ 775,642 The components of lease expense were as follows for the six months ended June 30, 2020: Selling, general and administrative expenses $ 252,290 Following are the minimum lease payments for each year and in total. Year ending December 31: 2020 (July 1, to December 31, 2020) $ 21,986 2021 169,691 2022 172,666 2023 172,542 2024 159,703 Thereafter 310,259 Total undiscounted minimum future lease payments 1,006,847 Imputed interest (231,205 ) Total operating lease liability $ 775,642

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 9. COMMITMENTS AND CONTINGENCIES COVID-19 pandemic The World Health Organization has declared the outbreak of COVID-19, or coronavirus, which began in December 2019, a pandemic and the U.S. federal government has declared it a national emergency. Our business, financial condition, results of operations and cash flows could be materially and adversely affected by the effects of COVID-19. The global spread of COVID-19 has already created significant volatility, uncertainty and economic disruption in the markets in which we operate. Governments, public institutions, and other organizations in countries and localities where cases of COVID-19 have been detected are taking certain emergency measures to mitigate its spread, including implementing travel restrictions and closing factories, schools, public buildings, and businesses. While the full impact of this outbreak is not yet known, we are closely monitoring the spread of COVID-19 and continually assessing its potential effects on our business. The extent to which our results are affected by COVID-19 will largely depend on future developments which cannot be accurately predicted, including the duration and scope of the pandemic, governmental and business responses to the pandemic and the impact on the global economy, our customers’ demand for our products and services, and our ability to provide our products and services, particularly as result of our employees working remotely and/or the closure of certain offices and facilities. Litigation. From time to time, we are notified that we may be a party to a lawsuit or that a claim is being made against us. It is our policy to not disclose the specifics of any claim or threatened lawsuit until the summons and complaint are actually served on us. After carefully assessing the claim, and assuming we determine that we are not at fault or we disagree with the damages or relief demanded, we vigorously defend any lawsuit filed against us. We record a liability when losses are deemed probable and reasonably estimable. When losses are deemed reasonably possible but not probable, we determine whether it is possible to provide an estimate of the amount of the loss or range of possible losses for the claim, if material for disclosure. In evaluating matters for accrual and disclosure purposes, we take into consideration factors such as our historical experience with matters of a similar nature, the specific facts and circumstances asserted, the likelihood of our prevailing, the availability of insurance, and the severity of any potential loss. We reevaluate and update accruals as matters progress over time. While the ultimate resolution is unknown, based on the information currently available, we do not expect that these lawsuits will individually, or in the aggregate, have a material adverse effect to our results of operations, financial condition and cash flows. However, the outcome of any litigation is inherently uncertain and there can be no assurance that any expense, liability or damages that may ultimately result from the resolution of these matters will be covered by our insurance or will not be in excess of amounts recognized or provided by insurance coverage and will not have a material adverse effect on our operating results, financial condition or cash flows. Axon The Company owns U.S. Patent No. 9,253,452 (the “ ‘452 Patent”), which generally covers the automatic activation and coordination of multiple recording devices in response to a triggering event, such as a law enforcement officer activating the light bar on the vehicle. The Company filed suit on January 15, 2016 in the U.S. District Court for the District of Kansas (the “U.S. District Court”) (Case No: 2:16-cv-02032) against Axon, alleging willful patent infringement against Axon’s body camera product line and Signal auto-activation product. The Company is seeking both monetary damages and a permanent injunction against Axon for infringement of the ‘452 Patent. In December 2016 and January 2017, Axon filed two petitions for Inter Partes The U.S. District Court litigation was temporarily stayed following the filing of the petitions for IPR. However, on November 17, 2017, the U.S. District Court of Kansas rejected Axon’s request to maintain the stay. With this ruling, the parties proceeded towards trial, after which the parties filed motions for summary judgment on January 31, 2019. On June 17, 2019, the U.S. District Court granted Axon’s motion for summary judgment that Axon did not infringe on the Company’s patent and dismissed the case. The U.S. District Court’s ruling did not find that the ‘452 Patent was invalid. It also did not address any other issue, such as whether the Company’s requested damages were appropriate, and it did not impact the Company’s ability to file additional lawsuits to hold other competitors accountable for patent infringement. This ruling solely related to an interpretation of the Company’s claims as they relate to Axon and was unrelated to the supplemental briefing the Company filed on its damages claim and the WatchGuard settlement. Those issues are separate and the U.S. District Court’s ruling on the motion for summary judgment had nothing to do with the Company’s damages request. The Company filed an opening appeal brief on August 26, 2019 with the U.S. Court of Appeals for the Tenth Circuit (the “Court of Appeals”), appealing the U.S. District Court’s granting of Axon’s motion for summary judgment. Axon responded by filing a responsive brief on November 6, 2019 and we then filed a reply brief responding to Axon on November 27, 2019. The Court of Appeals scheduled oral arguments on our appeal of the U.S. District Court’s summary judgment ruling on April 6, 2020. This appeal was intended to address the Company’s position that the U.S. District Court incorrectly dismissed our claims against Axon. If the Court of Appeals overturns the ruling of the U.S. District Court, the case will be remanded to the U.S District Court before a new judge. On March 12, 2020, the panel of judges for the Court of Appeals issued an order cancelling the oral arguments previously set for April 6, 2020, having determined that the appeal will be decided solely based on the parties’ briefs. On April 22, 2020, a three-judge panel of the United States Court of Appeals denied our appeal and affirmed the District Court’s previous decision to grant Axon summary judgment. On May 22, 2020, we filed a petition for panel rehearing requesting that we be granted a rehearing of our appeal of the U.S. District Court’s summary judgment ruling. Furthermore, we requested that we be given an opportunity to make our case through oral argument in front of the three-judge panel of the Court of Appeals, which was also denied. The Company is reviewing its alternatives at this point. WatchGuard On May 27, 2016, the Company filed suit against WatchGuard (Case No. 2:16-cv-02349-JTM-JPO) alleging patent infringement based on WatchGuard’s VISTA Wifi and 4RE In-Car product lines. On May 13, 2019, the parties resolved the dispute and executed a settlement agreement in the form of a Release and License Agreement. The litigation has been dismissed as a result of this settlement. The Release and License Agreement contains the following key terms: ● WatchGuard paid Digital Ally a one-time, lump settlement payment of $6,000,000. ● Digital Ally granted WatchGuard a perpetual covenant not to sue if WatchGuard’s products incorporate agreed-upon modified recording functionality. Digital Ally also granted WatchGuard a license to the ‘292 Patent and the ‘452 Patent (and related patents, now existing and yet-to-issue) through December 31, 2023. The parties agreed to negotiate in good faith to attempt to resolve any alleged infringement that occurs after the license period expires. ● The parties further agreed to release each other from all claims or liabilities pre-existing the settlement. ● As part of the settlement, the parties agreed that WatchGuard made no admission that it infringed any of Digital Ally’s patents. Upon receipt of the $6,000,000 the parties filed a joint motion to dismiss the lawsuit with the court, which was granted. NASDAQ LISTING. On July 11, 2019, we were officially notified by The Nasdaq Stock Market LLC that, for the In accordance with Nasdaq Listing Rule 5810(c)(3)(C), we had 180 calendar days, or until January 7, 2020, to regain compliance with the MVLS Rule, or in the alternative, the minimum stockholders’ equity requirement of $2,500,000. To regain compliance with the MVLS Rule, the minimum MVLS for our Common Stock must have been at least $35 million for a minimum of 10 consecutive business days at any time during this 180-day period. If we failed to regain compliance with either the MVLS Rule or the minimum stockholders’ equity requirement by January 7, 2020, we could have been delisted from Nasdaq. On January 8, 2020, we received a determination letter from the staff of The Nasdaq Stock Market LLC stating that we had not regained compliance with the MVLS Standard, since our Common Stock was below the $35 million minimum MVLS requirement for continued listing on Nasdaq under the MLVS Rule and had not been at least $35 million for a minimum of 10 consecutive business days at any time during the 180-day grace period granted to us. Pursuant to the Letter, unless we requested a hearing to appeal this determination by January 15, 2020, our Common Stock would have been delisted from Nasdaq, trading of our Common Stock would have been suspended at the opening of business on January 17, 2020, and a Form 25-NSE would have been filed with the SEC, which would have removed our Common Stock from listing and registration on Nasdaq. On January 13, 2020, we requested a hearing before the Nasdaq Hearings Panel to appeal the Letter and a hearing was held on February 20, 2020, when we appeared before the Panel to discuss our plan to regain compliance, including, but not limited to, complying with Nasdaq Listing Rule 5550(b)(1), which is the minimum stockholders equity standard for continued listing, which requires that companies listed on Nasdaq maintain a minimum of $2,500,000 in stockholders ). On March 6, 2020, we received written notice from the Panel indicating that, based on the plan of compliance that we had presented at such hearing, the Panel granted our request for the continued listing of our Common Stock on Nasdaq, subject to, among other things, us keeping the Staff updated on the progress of our compliance plan and ultimately being able to evidence shareholder equity in an amount greater than or equal to $2,500,000 in accordance with Rule 5550(b)(1) no later than June 30, 2020. During this time, our Common Stock remained listed and trading on Nasdaq. On June 4, 2020 and June 10, 2020, we consummated underwritten public offerings, pursuant to underwriting agreements and raised aggregate gross proceeds of approximately $11.3 million, before underwriting discounts and commissions and other estimated expenses of such offerings. As a result of such offerings, we achieved compliance with and on June 18, 2020 we received written notice from the Staff stating that we had regained compliance with such rule and the matter is now closed. On April 22, 2020, we received a written notification from the Nasdaq Stock Market LLC indicating that we were not in compliance with Nasdaq Listing Rule 5550(a)(2), as the closing bid price for our Common Stock was below $1.00 per share for the last thirty (30) consecutive business days. Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), we were granted a 180-calendar day compliance period to regain compliance with the minimum bid price requirement. Subsequently, the 180-day grace period to regain compliance with such minimum bid price requirement under applicable Nasdaq Stock Market LLC rules was extended due to the global market impact caused by COVID-19. More specifically, the Nasdaq Stock Market LLC has stated that the compliance periods for any company previously notified about non-compliance will be suspended effective April 16, 2020, through June 30, 2020. On July 1, 2020, companies not in compliance would receive the balance of any pending compliance period exception to come back into compliance with such minimum bid price requirement. As a result of this extension, we had until December 28, 2020, to regain compliance with such minimum bid price requirement. During the compliance period, our Common Stock would still continue to be listed and traded on Nasdaq. To regain compliance, the closing bid price of the Common Stock had to have met or exceeded $1.00 per share for at least ten (10) consecutive business days by December 28, 2020. On June 11 2020, our Common Stock met such minimum bid price requirement, as the closing sale price of our Common Stock had equaled or exceeded $1.00 per share on Nasdaq at the close of each trading day since May 29, 2020, and we received written notice from the Staff stating that the Company regained compliance with such requirement and the matter is now closed.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2020
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation	NOTE 10. STOCK-BASED COMPENSATION The Company recorded pretax compensation expense related to the grant of stock options and restricted stock issued of $376,738 and $585,195 for the three months ended June 30, 2020 and 2019 and $688,415 and $1,310,393 for the six months ended June 30, 2020 and 2019, respectively. As of June 30, 2020, the Company had adopted seven separate stock option and restricted stock plans: (i) the 2005 Stock Option and Restricted Stock Plan (the “2005 Plan”), (ii) the 2006 Stock Option and Restricted Stock Plan (the “2006 Plan”), (iii) the 2007 Stock Option and Restricted Stock Plan (the “2007 Plan”), (iv) the 2008 Stock Option and Restricted Stock Plan (the “2008 Plan”), (v) the 2011 Stock Option and Restricted Stock Plan (the “2011 Plan”), (vi) the 2013 Stock Option and Restricted Stock Plan (the “2013 Plan”), (vii) the 2015 Stock Option and Restricted Stock Plan (the “2015 Plan”) and (vii) the 2018 Stock Option and Restricted Stock Plan (the “2018 Plan”). The 2005 Plan, 2006 Plan, 2007 Plan, 2008 Plan, 2011 Plan, 2013 Plan, 2015 Plan and 2018 Plan are referred to as the “Plans.” These Plans permit the grant of stock options or restricted stock to its employees, non-employee directors and others for up to a total of 4,175,000 shares of common stock. The 2005 Plan terminated during 2015 with 19,678 shares not awarded or underlying options, which shares are now unavailable for issuance. Stock options granted under the 2005 Plan that remain unexercised and outstanding as of June 30, 2020 total 7,563. The 2006 Plan terminated during 2016 with 25,849 shares not awarded or underlying options, which shares are now unavailable for issuance. Stock options granted under the 2006 Plan that remain unexercised and outstanding as of June 30, 2020 total 39,750. The 2007 Plan terminated during 2017 with 89,651 shares not awarded or underlying options, which shares are now unavailable for issuance. Stock options granted under the 2007 Plan that remain unexercised and outstanding as of June 30, 2020 total 5,000. The 2008 Plan terminated during 2018 with 9,249 shares not awarded or underlying options, which shares are now unavailable for issuance. Stock options granted under the 2008 Plan that remain unexercised and outstanding as of June 30, 2020 total 31,250. Our Board of Directors adopted the 2020 Stock Option and Restricted Stock Plan (the “2020 Plan”) on June 30, 2020. At the annual meeting of the Company’s stockholders to be held on September 9, 2020 (the “Annual Meeting”) the Company is asking its stockholders to approve the 2020 Plan and the reservation of 1,500,000 shares of common stock issuable under the 2020 Plan. The 2020 Plan would authorize us to issue 1,500,000 shares of Common Stock upon exercise of options and grant of restricted stock awards. No options have been granted under the 2020 Plan to date. The 2020 Plan would also authorize us to grant (i) to the key employees incentive stock options to purchase shares of Common Stock and non-qualified stock options to purchase shares of Common Stock and restricted stock awards and (ii) to non-employee directors and consultants non-qualified stock options and restricted stock. As of June 30, 2020, approximately 78 employees, two executive officers, and three non-employee directors were eligible to participate in the 2020 Plan. The Company believes that such awards better align the interests of our employees with those of its stockholders. Option awards have been granted with an exercise price equal to the market price of its stock at the date of grant with such option awards generally vesting based on the completion of continuous service and having ten-year contractual terms. These option awards typically provide for accelerated vesting if there is a change in control (as defined in the Plans). The Company has registered all shares of common stock that are issuable under its Plans with the SEC, except for shares of Common Stock issuable under the 2020 Plan, which the Company expects to register after the Annual Meeting, if the 2020 Plan is approved by the Company’s stockholders. A total of 1,437 shares remained available for awards under the various Plans (other than the 2020 Plan) as of June 30, 2020, and a total of 1,500,000 shares of Common Stock remained available for awards under the 2020 Plan as of June 30, 2020, which awards are not available for grant until the 2020 Plan is approved by the Company’s stockholders at the Annual Meeting, or which awards are terminable if such approval is not obtained, depending on the type of award available under the 2020 Plan. The fair value of each option award is estimated on the date of grant using a Black-Scholes option valuation model. Activity in the various Plans during the six months ended June 30, 2020: Options Number of Shares Weighted Average Exercise Price Outstanding at December 31, 2019 589,125 $ 3.74 Granted — — Exercised (1,875 ) 4.16 Forfeited (3,937 ) (12.14 ) Outstanding at June 30, 2020 583,313 $ 3.69 Exercisable at June 30, 2020 583,313 $ 3.69 The fair value of each option award is estimated on the date of grant using a Black-Scholes option valuation model. The total estimated grant date fair value stock options issued during the six months ended June 30, 2020 was $-0- as there were no grants during that period. The Plans allow for the cashless exercise of stock options. This provision allows the option holder to surrender/cancel options with an intrinsic value equivalent to the purchase/exercise price of other options exercised. There were no shares surrendered pursuant to cashless exercises during the six months ended June 30, 2020 and 2019. At June 30, 2020, the aggregate intrinsic value of options outstanding was approximately $187,800 and the aggregate intrinsic value of options exercisable was approximately $187,800. No options were exercised in the six months ended June 30, 2019. As of June 30, 2020, the unrecognized portion of stock compensation expense on all existing stock options was $-0-. The following table summarizes the range of exercise prices and weighted average remaining contractual life for outstanding and exercisable options under the Company’s option plans as of June 30, 2020: Outstanding options Exercisable options Exercise price range Number of options Weighted average remaining contractual life Number of options Weighted average remaining contractual life $ 0.01 to $3.49 470,313 7.9 years 470,313 7.9 years $ 3.50 to $4.99 64,000 3.8 years 64,000 3.8 years $ 5.00 to $6.49 — — years — — years $ 6.50 to $7.99 7,250 1.3 years 7,250 1.3 years $ 8.00 to $9.99 2,500 0.9 years 2,500 0.9 years $ 10.00 to $19.99 39,250 0.5 years 39,250 0.5 years 583,313 6.8 years 583,313 6.8 years Restricted stock grants. A summary of all restricted stock activity under the equity compensation plans for the six months ended June 30, 2020 is as follows: Number of Restricted shares Weighted average grant date fair value Nonvested balance, January 1, 2020 514,875 $ 2.97 Granted 665,500 1.05 Vested (410,375 ) (2.14 ) Forfeited (35,250 ) (1.84 ) Nonvested balance, June 30, 2020 734,750 $ 1.75 The Company estimated the fair market value of these restricted stock grants based on the closing market price on the date of grant. As of June 30, 2020, there were $505,271 of total unrecognized compensation costs related to all remaining non-vested restricted stock grants, which will be amortized over the next 18 months in accordance with their respective vesting scale. The nonvested balance of restricted stock vests as follows: Years ended Number of shares 2020 (April 1, 2020 through December 31, 2020) 13,125 2021 480,250 2022 241,375

Common Stock Purchase Warrants

Common Stock Purchase Warrants	6 Months Ended
	Jun. 30, 2020
Equity [Abstract]
Common Stock Purchase Warrants	NOTE 11. COMMON STOCK PURCHASE WARRANTS The Company has issued common stock purchase warrants in conjunction with various debt and equity issuances. The warrants are either immediately exercisable, or have a delayed initial exercise date, no more than six months from their respective issue date and allow the holders to purchase up to 3,393,364 shares of common stock at $1.40 to $16.50 per share as of June 30, 2020. The warrants expire from July 15, 2020 through January 17, 2025 and allow for cashless exercise. The following table summarizes information about shares issuable under warrants outstanding during the six months ended June 30, 2020: Warrants Weighted average exercise price Vested Balance, January 1, 2020 4,824,573 $ 5.15 Granted 1,273,374 1.31 Exercised (2,704,583 ) (1.95 ) Cancelled — — Vested Balance, June 30, 2020 3,393,364 $ 6.26 The total intrinsic value of all outstanding warrants aggregated $295,836 as of June 30, 2020 and the weighted average remaining term is 21.8 months. During the six months ended June 30, 2020, warrants to purchase 2,686,582 common shares were exercised for cash proceeds of $5,203,122 and warrants to purchase 18,000 common shares were exercised on a cashless basis through the forfeiture of 10,715 common shares. The following table summarizes the range of exercise prices and weighted average remaining contractual life for outstanding and exercisable warrants to purchase common shares as of June 30, 2020: Outstanding and exercisable warrants Exercise price Number of warrants Weighted average remaining contractual life $ 2.60 465,712 3.1 years $ 3.00 316,800 2.8 years $ 3.36 166,667 1.7 years $ 3.36 566,666 2.7 years $ 3.65 167,000 2.0 years $ 3.75 25,753 2.1 years $ 5.00 800,000 1.5 years $ 13.43 879,766 0.6 years $ 16.50 5,000 0.1 years 3,393,364 1.8 years

Stockholders' Equity (Deficit)

Stockholders' Equity (Deficit)	6 Months Ended
	Jun. 30, 2020
Equity [Abstract]
Stockholders' Equity (Deficit)	NOTE 12. STOCKHOLDERS’ EQUITY (DEFICIT) Underwritten Public Offerings On March 3, 2020, the Company entered into an underwriting agreement with Aegis Capital Corp., as the representative of the underwriters and sole book-running manager, pursuant to which the Company agreed to sell to the underwriters in a firm commitment underwritten public offering (the “Offering”) an aggregate of 2,521,740 shares of the Company’s common stock at a public price of $1.15 per share. The Company also granted the underwriters a forty-five (45)-day option to purchase up to an additional 378,261 shares of common stock to cover over-allotments, if any. The Offering was registered and the common stock was issued pursuant to the Company’s effective shelf registration statement on Form S-3 (File No. 333-225227), which was initially filed with the SEC on May 25, 2018 and was declared effective on June 6, 2018. The underwriting agreement contained customary representations, warranties and agreements by the Company, customary conditions to closing, indemnification obligations of the Company and the Underwriters. The Underwriters received discounts and commissions of seven percent (7%) of the gross cash proceeds received by the Company from the sale of the common stock in the Offering. In addition, the Company agreed to pay the Underwriters (a) a non-accountable expense reimbursement of 1% of the gross proceeds received and (b) “road show” expenses, diligence fees and the fees and expenses of the Underwriters’ legal counsel not to exceed $50,000. The net proceeds to the Company from the Offering totaled approximately $2,502,136, after deducting underwriting discounts and commissions and estimated expenses payable by the Company. On June 2, 2020, the Company entered into an underwriting agreement with Aegis Capital Corp., as the representative of the underwriters and sole book-running manager, pursuant to which the Company agreed to sell to the underwriters in a firm commitment underwritten public offering an aggregate of 3,090,909 shares of the Company’s common stock, at a public price of $1.65 per share (the “June 2 nd nd nd On June 8, 2020, the Underwriters fully exercised their over-allotment option to acquire the June 2 nd nd he Company The underwriting agreement contained customary representations, warranties and agreements by the Company, customary conditions to closing, indemnification obligations of the Company and the Underwriters. The Underwriters received discounts and commissions of seven percent (7%) of the gross cash proceeds received by the Company from the sale of the common shares in the June 2 nd nd On June 8, 2020, the Company entered into an underwriting agreement with Aegis Capital Corp., as the representative of the underwriters and sole book-running manager, pursuant to which the Company agreed to sell to the underwriters in a firm commitment underwritten public offering an aggregate of 2,325,581 shares of common stock at a public price of $2.15 per share (the “June 8 th th th On June 10, 2020, the Underwriters fully exercised their over-allotment option to acquire the June 8 th th he Company The underwriting agreement contained customary representations, warranties and agreements by the Company, customary conditions to closing, indemnification obligations of the Company and the Underwriters. The Underwriters received discounts and commissions of seven percent (7%) of the gross cash proceeds received by the Company from the sale of the common shares in the June 8 th th 2020 Issuances of Restricted Common Stock On January 3, 2020, the board of directors approved the grant of 530,050 shares of restricted common stock to officers and employees of the Company. Such shares will generally vest one-half on January 2, 2021 and one half on January 2, 2022, provided that each grantee remains an officer or employee on such dates. In April 17, 2020 the Compensation Committee of the Board of Directors of the Company determined that the cash portion of the annual base salaries of the Company’s President and Chief Executive Officer, and the Company’s Chief Financial Officer, Treasurer and Secretary, would be reduced to annual rates of $150,000 each for the balance of 2020 commencing May 1, 2020. The Committee also decided that the reduction of the base annual salaries of Company’s President and Chief Executive Officer, and the Company’s Chief Financial Officer, Treasurer and Secretary, for 2020, which totaled $69,231 and $55,384, respectively, as of May 1, 2020 was paid through the issuance of shares of restricted stock under the 2018 Stock Option and Restricted Stock Plan with the Company paying the applicable federal and state taxes on such amounts. Accordingly, the Company issued the Company’s President and Chief Executive Officer, and the Company’s Chief Financial Officer, Treasurer and Secretary 75,250 shares and 60,200 shares, respectively, effective April 17, 2020 based on a closing price of $0.92 per share on such date.

Net Loss Per Share

Net Loss Per Share	6 Months Ended
	Jun. 30, 2020
Earnings Per Share [Abstract]
Net Loss Per Share	NOTE 13. NET LOSS PER SHARE The calculation of the weighted average number of shares outstanding and loss per share outstanding for the three and six months ended June 30, 2020 and 2019 are as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Numerator for basic and diluted income per share – Net loss $ (497,894 ) $ (387,730 ) $ (2,832,004 ) $ (3,592,904 ) Denominator for basic loss per share – weighted average shares outstanding 18,976,724 11,305,248 16,430,214 11,124,222 Dilutive effect of shares issuable under stock options and warrants outstanding — — — — Denominator for diluted loss per share – adjusted weighted average shares outstanding 18,976,724 11,305,248 16,430,214 11,124,222 Net loss per share: Basic $ (0.03 ) $ (0.03 ) $ (0.17 ) $ (0.32 ) Diluted $ (0.03 ) $ (0.03 ) $ (0.17 ) $ (0.32 ) Basic loss per share is based upon the weighted average number of common shares outstanding during the period. For the three and six months ended June 30, 2020 and 2019, all shares issuable upon conversion of convertible debt and the exercise of outstanding stock options and warrants were antidilutive, and, therefore, not included in the computation of diluted income (loss) per share.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2020
Subsequent Events [Abstract]
Subsequent Events	NOTE 14. SUBSEQUENT EVENTS Warehouse Building Acquisition Proceeds Investment Agreement Termination Agreement. - Note 4 — “Proceeds Investment Agreement Obligation”). Under the terms of the Termination Agreement, upon payment of $1,250,000 by the Company to BKI both parties agreed to terminate the PIA and to release each other from any further liability thereunder. Such $1,250,000 payment was made on July 22, 2020. In addition to the $1,250,000 payment, the Company further agreed to pay BKI the following: (a) a contingent payment in the amount of $2,750,000 following the closing of an asset purchase, membership interest purchase, or similar transaction between the Company and a specified third-party (the “Purchase Transaction”) and (b) any and all future proceeds received from Watchguard and its successors and assigns by the Company for WatchGuard’s use of U.S. Patent Nos. 8,781,292 and 9,253,452. For clarity, the Company and BKI further agreed that the payment of the contingent payment would only be due and payable upon the closing of the specified Purchase Transaction and the relevant contingent payment portion of the Termination Agreement, and any obligations stemming therefrom, would automatically terminate if the specified Purchase Transaction is abandoned prior to its closing, including its failure to close within three years from the date of the Termination Agreement. The specified Purchase Transaction has not yet occurred and there is no binding agreement to complete such Purchase Transaction. Shelf Registration Statement on Form S-3

Nature of Business and Summar_2

Nature of Business and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations	Nature of Operations: Digital Ally, Inc. its wholly-owned subsidiaries, Digital Ally International, Inc. and Shield Products, LLC (collectively, “Digital Ally,” “Digital,” the “Company”) produces digital video imaging, storage products and disinfectant and related safety products for use in law enforcement, security and commercial applications. The Company’s products include in-car digital video/audio recorders contained in a rear-view mirror for use in law enforcement and commercial fleets; a system that provides its law enforcement customers with audio/video surveillance from multiple vantage points and hands-free automatic activation of body-worn cameras and in-car video systems; a miniature digital video system designed to be worn on an individual’s body; and cloud storage solutions. The Company has recently added two new lines of branded products: (1) the ThermoVu™ line, which is a line of self-contained temperature monitoring stations that provides alerts and controls facility access when an individual’s temperature exceeds a pre-set threshold and (2) the Shield™ disinfectant and cleanser line, which is for use against viruses and bacteria and which we began offering to the Company’s law enforcement and commercials customers beginning late in the second quarter of 2020. Both product lines are manufactured by third parties. In addition, the Company has active research and development programs to adapt its technologies to other applications. It can integrate electronic, radio, computer, mechanical, and multi-media technologies to create unique solutions to address needs in a variety of other industries and markets, including mass transit, school bus, taxicab and the military. The Company sells its products to law enforcement agencies, private security customers and organizations and consumer and commercial fleet operators through direct sales domestically and third-party distributors internationally. The Company was originally incorporated in Nevada on December 13, 2000 as Vegas Petra, Inc. and had no operations until 2004. On November 30, 2004, Vegas Petra, Inc. entered into a Plan of Merger with Digital Ally, Inc., at which time the merged entity was renamed Digital Ally, Inc.
Basis of Presentation	Basis of Presentation: The condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six month period ended June 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. The balance sheet at December 31, 2019 has been derived from the audited financial statements at that date but does not include all the information and footnotes required by generally accepted accounting principles in the United States for complete financial statements. For further information, refer to the audited financial statements and footnotes included in the Company’s annual report on Form 10-K for the year ended December 31, 2019 and the unaudited financial statements and footnotes included in the Company’s quarterly report on Form 10-Q for the quarter ended March 31, 2020.
COVID-19 Pandemic	COVID-19 pandemic: The World Health Organization has declared the outbreak of COVID-19, or coronavirus, which began in December 2019, a pandemic and the U.S. federal government has declared it a national emergency. The COVID-19 pandemic had a negative impact on our revenues in the first and second quarters of 2020 and we expect it will adversely affect our business and operations during the remainder of 2020. While its full and continued impact cannot be determined at present, we do expect it will have a material adverse effect on our future business, financial condition, results of operations, and cash flows. The global spread of COVID-19 has already created significant volatility, uncertainty and economic disruption in the markets in which we operate. Governments, public institutions, and other organizations in countries and localities where cases of COVID-19 have been detected are taking certain emergency measures to mitigate its spread, including implementing travel restrictions and closing factories, schools, public buildings, and businesses. We are closely monitoring the spread of COVID-19 and continually assessing its potential effects on our business. In response to the impact that the COVID-19 pandemic and other future pandemics may have on the Company’s customers and legacy products, the Company has recently added two new lines of branded products: (1) the ThermoVu™ which is a line of self-contained temperature monitoring stations that provides alerts and controls facility access when an individual’s temperature exceeds a pre-set threshold and (2) the Shield™ disinfectant and cleanser line which is for use against viruses and bacteria and which we began offering to the Company’s law enforcement and commercials customers beginning late in the second quarter of 2020. The extent to which our future results are affected by COVID-19 will largely depend on future developments that cannot be accurately predicted, including the duration and scope of the pandemic, governmental and business responses to the pandemic and the impact on the global economy, our customers’ demand for our products and services, and our ability to provide our products and services, particularly as result of our employees working remotely and/or the closure of certain offices and facilities.
Management's Liquidity Plan and Going Concern	Management’s Liquidity Plan and Going Concern: The accompanying unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company incurred operating losses for the six months ended June 30, 2020 and for the year ended December 31, 2019 primarily due to reduced revenues and gross margins caused by a variety of factors, including the COVID-19 pandemic and its related effects on our customers and our supply chain, and by competitors’ introduction of newer products with more advanced features together with significant price cutting of their products. The Company incurred net losses of approximately $2.8 million during the six months ended June 30, 2020 and $10.0 million for the year ended December 31, 2019 and it had an accumulated deficit of $90.2 million as of June 30, 2020. During 2019, the Company settled one of its patent infringement cases and received a lump sum payment of $6.0 million, which was used to pay its obligations under its Proceeds Investment Agreement, as more fully described in Note 4 — “Proceeds Investment Agreement Obligation.” Note 3 – “Debt Obligations” The Company will have to restore positive operating cash flows and profitability over the next year and/or raise additional capital to fund its operational plans, meet its customary payment obligations and otherwise execute its business plan. There can be no assurance that it will be successful in restoring positive cash flows and profitability, or that it can raise additional financing when needed, and obtain it on terms acceptable or favorable to the Company. The Company has increased its addressable market to non-law enforcement customers and obtained new non-law enforcement contracts in 2020 and 2019, which contracts include recurring revenue during the period 2020 to 2023. Further, it added two new product lines in response to the Covid-19 pandemic. The Company believes that its quality control and cost cutting initiatives, expansion to non-law enforcement sales channels and new product introductions will eventually restore positive operating cash flows and profitability, although it can offer no assurances in this regard. The extent to which its future operating results are affected by COVID-19 will largely depend on future developments which cannot be accurately predicted, including the duration and scope of the pandemic, governmental and business responses to the pandemic and the impact on the global economy, our customers’ demand for our products and services, and our ability to provide our products and services, particularly as result of our employees working remotely and/or the closure of certain offices and facilities. While degree of impact of these factors is uncertain, we believe that the COVID-19 pandemic or the perception of its effects will have a material adverse effect on our business, financial condition, results of operations, and cash flows. Based on the uncertainties described above, the Company believes its business plan does not alleviate the existence of substantial doubt about its ability to continue as a going concern within one year from the date of the issuance of these unaudited condensed consolidated financial statements. The accompanying unaudited condensed consolidated financial statements do not include any adjustments related to the recoverability and classification of asset amounts or the classification of liabilities that might be necessary should the Company be unable to continue as a going concern.
Basis of Consolidation	Basis of Consolidation: The accompanying financial statements include the consolidated accounts of Digital Ally and its wholly-owned subsidiaries, Digital Ally International, Inc. and Shield Products, LLC. All intercompany balances and transactions have been eliminated during consolidation. The Company formed Digital Ally International, Inc. during August 2009 to facilitate the export sales of its products. The Company formed Shield Products, LLC in May 2020 to facilitate the sales of its Shield™ line of disinfectant/cleanser products and ThermoVu™ line of temperature monitoring equipment.
Revenue Recognition	Revenue Recognition: The Company applies the provisions of Accounting Standards Codification (ASC) 606-10, Revenue from Contracts with Customers The Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with the customer. In situation where sales are to a distributor, the Company had concluded its contracts are with the distributor as the Company holds a contract bearing enforceable rights and obligations only with the distributor. As part of part of its consideration for the contract, the Company evaluates certain factors including the customers’ ability to pay (or credit risk). For each contract, the Company considers the promise to transfer products, each of which is distinct, to be the identified performance obligations. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which it expects to be entitled. As the Company’s standard payment terms are less than one year, it has elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. The Company allocates the transaction price to each distinct product based on its relative standalone selling price. The product price as specified on the purchase order is considered the standalone selling price as it is an observable input which depicts the price as if sold to a similar customer in similar circumstances. Revenue is recognized when control of the product is transferred to the customer (i.e. when the Company’s performance obligations is satisfied), which typically occurs at shipment. Further in determining whether control has been transferred, the Company considers if there is a present right to payment and legal title, along with risks and rewards of ownership having transferred to the customer. Customers do not have a right to return the product other than for warranty reasons for which they would only receive repair services or replacement product. The Company has also elected the practical expedient under ASC 340-40-25-4 to expense commissions for product sales when incurred as the amortization period of the commission asset the Company would have otherwise recognized is less than one year. The Company sells its products and services to law enforcement and commercial customers in the following manner: ● Sales to domestic customers are made direct to the end customer (typically a law enforcement agency or a commercial customer) through its sales force, which is composed of its employees. Revenue is recorded when the product is shipped to the end customer. ● Sales to international customers are made through independent distributors who purchase products from the Company at a wholesale price and sell to the end user (typically law enforcement agencies or a commercial customer) at a retail price. The distributor retains the margin as its compensation for its role in the transaction. The distributor generally maintains product inventory, customer receivables and all related risks and rewards of ownership. Accordingly, upon application of steps one through five above, revenue is recorded when the product is shipped to the distributor consistent with the terms of the distribution agreement. ● Repair parts and services for domestic and international customers are generally handled by its inside customer service employees. Revenue is recognized upon shipment of the repair parts and acceptance of the service or materials by the end customer. Sales taxes collected on products sold are excluded from revenues and are reported as accrued expenses in the accompanying balance sheets until payments are remitted. Service and other revenue is comprised of revenues from extended warranties, repair services, cloud revenue and software revenue. Revenue is recognized upon shipment of the product and acceptance of the service or materials by the end customer for repair services. Revenue for extended warranty, cloud service or other software-based products is over the term of the contract warranty or service period. A time-elapsed method is used to measure progress because the Company transfers control evenly over the contractual period. Accordingly, the fixed consideration related to these revenues is generally recognized on a straight-line basis over the contract term, as long as the other revenue recognition criteria have been met. Contracts with some of the Company’s customers contain multiple performance obligations that are distinct and accounted for separately. The transaction price is allocated to the separate performance obligations on a relative standalone selling price (“SSP”). The Company determined SSP for all the performance obligations using observable inputs, such as standalone sales and historical pricing. SSP is consistent with the Company’s overall pricing objectives, taking into consideration the type of service being provided. SSP also reflects the amount the Company would charge for the performance obligation if it were sold separately in a standalone sale. Multiple performance obligations consist of product, software, cloud subscriptions and extended warranties. The Company’s multiple performance obligations may include future in-car or body-worn camera devices to be delivered at defined points within a multi-year contract, and in those arrangements, the Company allocates total arrangement consideration over the life of the multi-year contract to future deliverables using management’s best estimate of selling price. Contract liabilities consist of deferred revenue and include payments received in advance of performance under the contract and are reported separately as current liabilities and non-current liabilities in the Condensed Consolidated Balance Sheets. Such amounts consist of extended warranty contracts, prepaid cloud services and prepaid installation services and are generally recognized as the respective performance obligations are satisfied. Total contract liabilities consist of the following: Contract liabilities consist of deferred revenue and include payments received in advance of performance under the contract and are reported separately as current liabilities and non-current liabilities in the Condensed Consolidated Balance Sheets. Such amounts consist of extended warranty contracts, prepaid cloud services and prepaid installation services and are generally recognized as the respective performance obligations are satisfied.
Accounts Receivable	Accounts Receivable: Accounts receivable are carried at original invoice amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a weekly basis. The Company determines the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering a customer’s financial condition, credit history, and current economic conditions. Trade receivables are written off when deemed uncollectible. Recoveries of trade receivables previously written off are recorded when received. A trade receivable is considered to be past due if any portion of the receivable balance is outstanding for more than thirty (30) days beyond terms. No interest is charged on overdue trade receivables.
Segments of Business	Segments of Business: Management has determined that its operations comprise one reportable segment: the sale of digital audio and video recording and speed detection devices. For the three and six months ended June 30, 2020 and 2019, sales by geographic area were as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Sales by geographic area: United States of America $ 1,726,119 $ 2,477,717 $ 4,097,815 $ 4,992,059 Foreign 6,073 69,266 60,121 105,720 Total $ 1,732,192 $ 2,546,983 $ 4,157,936 $ 5,097,779 Sales to customers outside of the United States are denominated in U.S. dollars. All Company assets are physically located within the United States.
Recent Accounting Pronouncements	Recent Accounting Pronouncements: In February 2016, the FASB issued Accounting Standard Update (“ASU”) 2016-02, Leases The Company adopted the new guidance on January 1, 2019 using the optional transitional method and elected to use the package of three practical expedients which allows the Company not to reassess whether contracts are or contain leases, lease classification and whether initial direct costs qualify for capitalization. The Company has completed its assessment of the impact of the standard and determined that the only lease that the Company held was an operating lease for its office and warehouse space. Upon adoption of the standard, the Company recorded Right of Use (ROU) assets of approximately $501,000 and lease liabilities of approximately $582,000 related to it office and warehouse space operating leases. The Company also removed deferred rent of approximately $81,000 when adopting the new guidance. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses” to improve information on credit losses for financial assets and net investment in leases that are not accounted for at fair value through net income. ASU 2016-13 replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses. In April 2019 and May 2019, the FASB issued ASU No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments” and ASU No. 2019-05, “Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief” which provided additional implementation guidance on the previously issued ASU. In November 2019, the FASB issued ASU 2019-10, “Financial Instruments - Credit Loss (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842),” which defers the effective date for public filers that are considered small reporting companies (“SRC”) as defined by the Securities and Exchange Commission (the “SEC”) to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Since the Company is an SRC, implementation will not be required until January 1, 2023. The Company will continue to evaluate the effect of adopting ASU 2016-13 will have on the Company’s consolidated financial statements. In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU No. 2018-15, Intangible-Goodwill and Other Internal-Use Software (Subtopic 350-40) In December 2019, the FASB issued ASU No. 2019-12, Income Taxes - simplifying the accounting for income taxes (Topic 740), which is meant to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, Income Taxes. The amendment also improves consistent application and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The adoption of this standard did not have a significant impact on the Company’s financial position and results of operations.

Nature of Business and Summar_3

Nature of Business and Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of Sales by Geographic Area	Management has determined that its operations comprise one reportable segment: the sale of digital audio and video recording and speed detection devices. For the three and six months ended June 30, 2020 and 2019, sales by geographic area were as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Sales by geographic area: United States of America $ 1,726,119 $ 2,477,717 $ 4,097,815 $ 4,992,059 Foreign 6,073 69,266 60,121 105,720 $ 1,732,192 $ 2,546,983 $ 4,157,936 $ 5,097,779

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2020
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories consisted of the following at June 30, 2020 and December 31, 2019: June 30, 2020 December 31, 2019 Raw material and component parts $ 2,575,710 $ 4,481,611 Work-in-process 30,679 35,858 Finished goods 4,146,308 4,906,956 Subtotal 6,752,697 9,424,425 Reserve for excess and obsolete inventory (2,000,412 ) (4,144,013 ) Total $ 4,752,285 $ 5,280,412

Debt Obligations (Tables)

Debt Obligations (Tables)	6 Months Ended
	Jun. 30, 2020
Summary of Secured Convertible Debentures and Proceeds Investment Agreement	Debt obligations is comprised of the following: June 30, 2020 December 31, 2019 Payroll protection program loan (PPP) $ 1,418,900 $ — Economic injury disaster loan (EIDL) 150,000 — 2019 Secured convertible notes, at fair value — 1,593,809 Unsecured promissory notes payable, less unamortized discount of $-0- and $66,061 at June 30, 2020 and December 31, 2019, respectively — 233,939 Debt obligations 1,568,900 1,827,748 Less: current maturities of debt obligations 552,258 1,827,748 Debt obligations, long-term $ 1,016,642 $ —
Schedule of Maturity of Debt Obligations	Debt obligations mature as follows as of June 30, 2020: June 30, 2020 2020 (July 1, 2020 to December 31, 2020) $ 68,241 2021 948,391 2022 401,321 2023 3,166 2024 3,286 2025 and thereafter 144,495 Total $ 1,568,900
2019 Secured Convertible Notes [Member]
Schedule of Fair Value of Embedded Derivatives and Warrants	The following represents the resulting fair value as determined on August 5, 2019, the date of origination: Secured convertible notes $ 1,845,512 Common stock issued as Commitment Shares 118,749 Common stock purchase warrants 535,739 Gross cash proceeds $ 2,500,000
Summary of Fair Value and Adjusted Carrying Value of Secured Convertible Notes	Following is an analysis of the activity in the secured convertible notes during the six months ended June 30, 2020: Amount Balance at December 31, 2019 $ 1,593,809 Principal repaid during the period by issuance of common stock (1,259,074 ) Principal repaid during the period by payment of cash (747,180 ) Change in fair value of secured convertible note during the period 412,445 Balance at June 30, 2020 $ —
Schedule of Certain Estimates and Assumptions of Fair Value of Secured Convertible Notes	Following is a range of certain estimates and assumptions utilized as of December 31, 2019 to determine the fair value of secured convertible notes: December 31, 2019 Assumptions Volatility – range 115 % Risk-free rate 1.60 % Contractual term 0.6 years Calibrated stock price $ 1.06 Debt yield 123.6 %
2020 Secured Convertible Notes [Member]
Schedule of Fair Value of Embedded Derivatives and Warrants	The following represents the resulting fair value as determined on April 17, 2020, the date of origination: Secured convertible notes $ 778,859 Common stock purchase warrants 721,141 Gross cash proceeds $ 1,500,000
Summary of Fair Value and Adjusted Carrying Value of Secured Convertible Notes	Following is an analysis of the activity in the secured convertible notes during the six months ended June 30, 2020: Amount Balance at December 31, 2019 $ — Issuance of 2020 convertible notes at fair value 778,859 Principal repaid during the period by issuance of common stock (1,665,666 ) Principal repaid during the period by payment of cash (1,000 ) Change in fair value of secured convertible note during the period 887,807 Balance at June 30, 2020 $ —
Schedule of Certain Estimates and Assumptions of Fair Value of Secured Convertible Notes	Following is a range of certain estimates and assumptions utilized as of the April 17, 2020 issuance date to determine the fair value of secured convertible notes: April 17, 2020 Assumptions Volatility – range 90 % Risk-free rate 0.36 % Contractual term 1.0 years Stock price $ 0.92 Debt yield 132.2 %

Proceeds Investment Agreement_2

Proceeds Investment Agreement Obligation (Tables)	6 Months Ended
	Jun. 30, 2020
Proceeds Investment Agreement Obligation
Schedule of Proceeds Investment Obligation	The proceeds investment agreement obligations is comprised of the following: June 30, 2020 December 31, 2019 Proceeds investment agreement, at fair value $ 3,615,000 $ 6,500,000 Less: Current portion (3,615,000 ) — Proceeds investment agreement, at fair value - Long-term $ — $ 6,500,000
Schedule of Fair Value of PIA	The Company elected to account for the PIA on the fair value basis. Therefore, the Company determined the fair value of the PIA and PIA Warrants which yielded estimated fair values of the PIA including their embedded derivatives and the detachable PIA Warrants as follows: Proceeds investment agreement $ 9,067,513 Common stock purchase warrants 932,487 Gross cash proceeds $ 10,000,000
Schedule of Certain Estimates and Assumptions of Weighted Patent Asset	Following is a range of certain estimates and assumptions utilized as of June 30, 2020 and December 31, 2019 to probability weighted present value of expected patent asset proceeds for the litigation involving both Axon and WatchGuard: June 30, 2020 December 31, 2019 Discount rate 15.13% -15.18% 3.0% -16.6% Expected term to patent asset proceeds payment 0.33 years – 3.75 .06 - .29 years 0.58 years - 4 years Probability of success 90.0 % 5.9% -38.5% Estimated minimum return payable to BKI $ 4 million $ 21 million Negotiation discount 0.0 % 43.3 %
Schedule of Proceeds Investment Agreement Activity	The following represents activity in the PIA during the six months ended June 30, 2020: Beginning balance as of December 31, 2019 $ 6,500,000 Repayment of obligation — Change in the fair value during the period (2,885,000 ) Ending balance as of June 30, 2020 $ 3,615,000

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	6 Months Ended
	Jun. 30, 2020
Fair Value Disclosures [Abstract]
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis	The following table represents the Company’s hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2020 and December 31, 2019: June 30, 2020 Level 1 Level 2 Level 3 Total Liabilities: Secured convertible notes $ — $ — $ — $ — Proceeds investment agreement obligation — — 3,615,000 3,615,000 $ — $ — $ 3,615,000 $ 3,615,000 December 31, 2019 Level 1 Level 2 Level 3 Total Liabilities: Secured convertible notes $ — $ — $ 1,593,809 $ 1,593,809 Proceeds investment agreement obligation — — 6,500,000 6,500,000 $ — $ — $ 8,093,809 $ 8,093,809
Fair Value Measurements Change in Level 3 Inputs	The following table represents the change in Level 3 tier value measurements: 2019 2020 Secured Secured Proceeds Convertible Convertible Investment Notes Notes Agreement Total Balance, December 31, 2019 $ 1,593,809 $ — $ 6,500,000 $ 8,093,809 Issuance of secured convertible debt — 778,859 — 778,859 Conversion of secured convertible debentures (1,259,074 ) (1,665,666 ) — (2,924,740 ) Repayment of secured convertible notes (747,180 ) (1,000 ) — (748,180 ) Change in fair value of secured convertible debentures and proceeds investment agreement 412,445 887,807 (2,885,000 ) (1,548,748 ) Balance, June 30, 2020 $ — $ — $ 3,615,000 $ 3,615,000

Accrued Expenses (Tables)

Accrued Expenses (Tables)	6 Months Ended
	Jun. 30, 2020
Payables and Accruals [Abstract]
Schedule of Accrued Expenses	Accrued expenses comprised of the following at June 30, 2020 and December 31, 2019: June 30, 2020 December 31, 2019 Accrued warranty expense $ 30,711 $ 17,838 Accrued litigation costs 250,000 295,000 Accrued sales commissions 25,772 28,480 Accrued payroll and related fringes 181,970 233,254 Accrued insurance 60,894 78,579 Accrued sales returns and allowances 10,267 18,258 Accrued sales taxes 43,900 50,136 Other 235,233 124,336 $ 838,747 $ 845,881
Schedule of Accrued Warranty Expense	Accrued warranty expense comprised of the following for the six months ended June 30, 2020: Beginning balance $ 17,838 Provision for warranty expense 52,796 Charges applied to warranty reserve (39,923 ) Ending balance $ 30,711

Operating Leases (Tables)

Operating Leases (Tables)	6 Months Ended
	Jun. 30, 2020
Leases [Abstract]
Schedule of Operating Leases Right of Use Assets and Liabilities	The following sets forth the operating lease right of use assets and liabilities as of June 30, 2020: Assets: Operating lease right of use assets $ 769,635 Liabilities: Operating lease obligations-Long-term portion $ 731,334 Operating lease obligations-Current portion $ 44,308 Total operating lease obligations $ 775,642
Schedule of Components of Lease Expenses	The components of lease expense were as follows for the six months ended June 30, 2020: Selling, general and administrative expenses $ 252,290
Schedule of Future Minimum Lease Payments	Following are the minimum lease payments for each year and in total. Year ending December 31: 2020 (July 1, to December 31, 2020) $ 21,986 2021 169,691 2022 172,666 2023 172,542 2024 159,703 Thereafter 310,259 Total undiscounted minimum future lease payments 1,006,847 Imputed interest (231,205 ) Total operating lease liability $ 775,642

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2020
Share-based Payment Arrangement [Abstract]
Summary of Stock Options Outstanding	Activity in the various Plans during the six months ended June 30, 2020: Options Number of Shares Weighted Average Exercise Price Outstanding at December 31, 2019 589,125 $ 3.74 Granted — — Exercised (1,875 ) 4.16 Forfeited (3,937 ) (12.14 ) Outstanding at June 30, 2020 583,313 $ 3.69 Exercisable at June 30, 2020 583,313 $ 3.69
Shares Authorized Under Stock Option Plans by Exercise Price Range	The following table summarizes the range of exercise prices and weighted average remaining contractual life for outstanding and exercisable options under the Company’s option plans as of June 30, 2020: Outstanding options Exercisable options Exercise price range Number of options Weighted average remaining contractual life Number of options Weighted average remaining contractual life $ 0.01 to $3.49 470,313 7.9 years 470,313 7.9 years $ 3.50 to $4.99 64,000 3.8 years 64,000 3.8 years $ 5.00 to $6.49 — — years — — years $ 6.50 to $7.99 7,250 1.3 years 7,250 1.3 years $ 8.00 to $9.99 2,500 0.9 years 2,500 0.9 years $ 10.00 to $19.99 39,250 0.5 years 39,250 0.5 years 583,313 6.8 years 583,313 6.8 years
Summary of Restricted Stock Activity	A summary of all restricted stock activity under the equity compensation plans for the six months ended June 30, 2020 is as follows: Number of Restricted shares Weighted average grant date fair value Nonvested balance, January 1, 2020 514,875 $ 2.97 Granted 665,500 1.05 Vested (410,375 ) (2.14 ) Forfeited (35,250 ) (1.84 ) Nonvested balance, June 30, 2020 734,750 $ 1.75
Schedule of Non-vested Balance of Restricted Stock	The nonvested balance of restricted stock vests as follows: Years ended Number of shares 2020 (April 1, 2020 through December 31, 2020) 13,125 2021 480,250 2022 241,375

Common Stock Purchase Warrants

Common Stock Purchase Warrants (Tables)	6 Months Ended
	Jun. 30, 2020
Equity [Abstract]
Summary of Warrant Activity	The following table summarizes information about shares issuable under warrants outstanding during the six months ended June 30, 2020: Warrants Weighted average exercise price Vested Balance, January 1, 2020 4,824,573 $ 5.15 Granted 1,273,374 1.31 Exercised (2,704,583 ) (1.95 ) Cancelled — — Vested Balance, June 30, 2020 3,393,364 $ 6.26
Summary of Range of Exercise Prices and Weighted Average Remaining Contractual Life of Warrants	The following table summarizes the range of exercise prices and weighted average remaining contractual life for outstanding and exercisable warrants to purchase common shares as of June 30, 2020: Outstanding and exercisable warrants Exercise price Number of warrants Weighted average remaining contractual life $ 2.60 465,712 3.1 years $ 3.00 316,800 2.8 years $ 3.36 166,667 1.7 years $ 3.36 566,666 2.7 years $ 3.65 167,000 2.0 years $ 3.75 25,753 2.1 years $ 5.00 800,000 1.5 years $ 13.43 879,766 0.6 years $ 16.50 5,000 0.1 years 3,393,364 1.8 years

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	6 Months Ended
	Jun. 30, 2020
Earnings Per Share [Abstract]
Calculation of Weighted Average Number of Shares Outstanding and Loss Per Share Outstanding	The calculation of the weighted average number of shares outstanding and loss per share outstanding for the three and six months ended June 30, 2020 and 2019 are as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Numerator for basic and diluted income per share – Net loss $ (497,894 ) $ (387,730 ) $ (2,832,004 ) $ (3,592,904 ) Denominator for basic loss per share – weighted average shares outstanding 18,976,724 11,305,248 16,430,214 11,124,222 Dilutive effect of shares issuable under stock options and warrants outstanding — — — — Denominator for diluted loss per share – adjusted weighted average shares outstanding 18,976,724 11,305,248 16,430,214 11,124,222 Net loss per share: Basic $ (0.03 ) $ (0.03 ) $ (0.17 ) $ (0.32 ) Diluted $ (0.03 ) $ (0.03 ) $ (0.17 ) $ (0.32 )

Nature of Business and Summar_4

Nature of Business and Summary of Significant Accounting Policies (Details Narrative)	Aug. 05, 2019USD ($)shares	Jun. 30, 2020USD ($)shares	Mar. 31, 2020USD ($)	Jun. 30, 2019USD ($)	Mar. 31, 2019USD ($)	Jun. 30, 2020USD ($)Integershares	Jun. 30, 2019USD ($)	Dec. 31, 2019USD ($)	Dec. 23, 2019USD ($)shares	Jan. 02, 2019USD ($)
Net losses		$ (497,894)	$ (2,334,110)	$ (387,730)	$ (3,205,174)	$ (2,832,004)	$ (3,592,904)	$ 10,000,000
Accumulated deficit		$ (90,220,623)				(90,220,623)		(87,388,619)
Lump sum payment received								6,000,000
Proceeds from sale of common stock in underwritten public offering						12,829,241
Proceeds from issuance of common stock upon exercise of warrants and options						5,203,122	1,564,000
Issuenace of promissory note						1,568,900
Proceeds from issuance of secured convertible notes payable						1,500,000
Proceeds from exercise of warrants								1,564,000
Unsecured promissory notes and detachable warrants						$ 419,000
Short-term promissory note payable									$ 300,000
Warrants to purchase common stock | shares	571,248	2,686,582				2,686,582			107,000
Proceeds from convertible debentures	$ 2,780,000
Number of reportable segments | Integer						1
Operating lease right of use assets		$ 769,635				$ 769,635		$ 122,459
Operating lease obligations		$ 775,642				$ 775,642
ASU 2016-02 Leases [Member]
Operating lease right of use assets										$ 501,000
Operating lease obligations										582,000
Deferred rent										$ 81,000

Nature of Business and Summar_5

Nature of Business and Summary of Significant Accounting Policies - Summary of Sales by Geographic Area (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Sales by geographic area	$ 1,732,192	$ 2,546,983	$ 4,157,936	$ 5,097,779
United States of America [Member]
Sales by geographic area	1,726,119	2,477,717	4,097,815	4,992,059
Foreign [Member]
Sales by geographic area	$ 6,073	$ 69,266	$ 60,121	$ 105,720

Inventories (Details Narrative)

Inventories (Details Narrative) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Finished goods inventory	$ 140,158	$ 80,711

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Raw material and component parts	$ 2,575,710	$ 4,481,611
Work-in-process	30,679	35,858
Finished goods	4,146,308	4,906,956
Subtotal	6,752,697	9,424,425
Reserve for excess and obsolete inventory	(2,000,412)	(4,144,013)
Total	$ 4,752,285	$ 5,280,412

Debt Obligations (Details Narra

Debt Obligations (Details Narrative) - USD ($)

May 12, 2020

Apr. 30, 2020

Apr. 17, 2020

Jan. 17, 2020

Dec. 23, 2019

Aug. 05, 2019

Feb. 29, 2020

Jun. 30, 2020

Mar. 31, 2020

Jun. 30, 2020

Jun. 30, 2019

Mar. 03, 2020

Warrant to purchase of common stock shares

107,000

571,248

2,686,582

2,686,582

Common stock for aggregate purchase price of notes

$ 5,350,413

$ 2,502,136

Proceeds from warrants

$ 5,203,122

Amortization of debt discount

86,867

Private, Third-party Lenders [Member]

Debt instrument interest rate

8.00%

Debt maturity date

Mar. 31, 2020

Warrant to purchase of common stock shares

107,000

Warrant exercise price

$ 1.40

Unsecured notes payable

$ 300,000

Warrant exercisable date

Dec. 23, 2024

Proceeds from warrants

$ 71,869

Amortization of debt discount

66,061

Securities Purchase Agreement [Member] | Investors [Member]

Warrant term

5 years

5 years

Warrant to purchase of common stock shares

1,237,624

571,428

Warrant exercise price

$ 1.31

$ 1.8125

Common stock percentage

5.00%

Common stock for aggregate purchase price of notes

$ 1,500,000

$ 125,000

Aggregate purchase price of notes

2,500,000

Paycheck Protection Program [Member] | 2020 Small Business Administration Notes [Member]

Loan amount

$ 1,418,900

Debt instrument term

2 years

Debt instrument interest rate

1.00%

Monthly principal payments

$ 79,851

2020 Small Business Administration Notes [Member]

Debt instrument interest rate

3.75%

Monthly principal payments

$ 731

Proceeds from loans

150,000

Debt instrument face amount

$ 150,000

8% Senior Secured Convertible Promissory Notes [Member] | Securities Purchase Agreement [Member] | Investors [Member]

Debt instrument face amount

$ 1,666,666

$ 2,777,778

Debt maturity date

Apr. 16, 2021

Aug. 4, 2020

Debt converted into shares

1,650,164

1,984,126

Conversion price, per share

$ 1.01

$ 1.40

Agreement description

As a result of such conversion or exercise, such holder, together with its affiliates, would own more than 4.99% of the total number of shares of the Company's common stock outstanding immediately after giving effect to such exercise. However, the investors may increase or decrease such percentage to any other percentage not in excess of 9.99%, provided that any increase in such percentage shall not be effective until 61 days after such notice to the Company.

As a result of such conversion or exercise, such holder, together with its affiliates, would own more than 4.99% of the total number of shares of the Company's common stock outstanding immediately after giving effect to such exercise. However, the investors may increase or decrease such percentage to any other percentage not in excess of 9.99%, provided that any increase in such percentage shall not be effective until 61 days after such notice to the Company.

2019 Convertible Notes [Member] | Securities Purchase Agreement [Member]

Monthly principal payments

172,839

172,839

Debt instrument face amount

1,259,074

1,259,074

Prepay in cash the remaining outstanding principal

$ 574,341

2020 Convertible Notes [Member]

Debt instrument term

11 months 1 day

2020 Convertible Notes [Member] | Securities Purchase Agreement [Member]

Debt instrument face amount

1,665,666

1,665,666

Prepay in cash the remaining outstanding principal

$ 1,000

1,000

Unsecured Promissory Note Payable [Member]

Debt instrument interest rate

6.00%

6.00%

Debt maturity date

May 28, 2020

May 28, 2020

Unsecured notes payable

$ 319,000

$ 319,000

Total interest accrued

5,236

Unsecured Promissory Note Payable [Member] | Private, Third-party Lenders [Member]

Debt instrument interest rate

8.00%

Debt maturity date

Apr. 17, 2020

Warrant to purchase of common stock shares

35,750

Warrant exercise price

$ 1.40

Unsecured notes payable

$ 100,000

Warrant exercisable date

Jan. 17, 2025

Proceeds from warrants

$ 20,806

Amortization of debt discount

$ 20,806

Debt Obligations - Summary of S

Debt Obligations - Summary of Secured Convertible Debentures and Proceeds Investment Agreement (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Debt obligations	$ 552,258	$ 1,827,748
Less: current maturities of debt obligations	552,258	1,827,748
Debt obligations, long-term	1,016,642
Paycheck Protection Program [Member]
Debt obligations	1,418,900
Economic Injury Disaster Loan [Member]
Debt obligations	150,000
2019 Secured Convertible Notes [Member]
Debt obligations		1,593,809
Unsecured Promissory Note Payable [Member]
Debt obligations		$ 233,939

Debt Obligations - Summary of_2

Debt Obligations - Summary of Secured Convertible Debentures and Proceeds Investment Agreement (Details) (Parenthetical) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Debt Disclosure [Abstract]
Less unamortized discount	$ 0	$ 66,061

Debt Obligations - Schedule of

Debt Obligations - Schedule of Maturity of Debt Obligations (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Debt Disclosure [Abstract]
2020 (July 1, 2020 to December 31, 2020)	$ 68,241
2021	948,391
2022	401,321
2023	3,166
2024	3,286
2025 and thereafter	144,495
Total	$ 1,016,642

Debt Obligations - Schedule o_2

Debt Obligations - Schedule of Fair Value of Embedded Derivatives and Warrants (Details) - USD ($)	Apr. 17, 2020	Aug. 05, 2019	Jun. 30, 2020	Jun. 30, 2019
Gross cash proceeds			$ 1,500,000
2020 Secured Convertible Notes [Member]
Gross cash proceeds	$ 1,500,000
Secured Convertible Notes [Member] | 2020 Secured Convertible Notes [Member]
Gross cash proceeds	778,859
Common Stock Purchase Warrants [Member] | 2020 Secured Convertible Notes [Member]
Gross cash proceeds	$ 721,141
2019 Secured Convertible Notes [Member]
Gross cash proceeds		$ 2,500,000
2019 Secured Convertible Notes [Member] | Secured Convertible Notes [Member]
Gross cash proceeds		1,845,512
2019 Secured Convertible Notes [Member] | Common Stock Issued as Commitment Shares [Member]
Gross cash proceeds		118,749
2019 Secured Convertible Notes [Member] | Common Stock Purchase Warrants [Member]
Gross cash proceeds		$ 535,739

Debt Obligations - Summary of F

Debt Obligations - Summary of Fair Value and Adjusted Carrying Value of Secured Convertible Notes (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Secured convertible notes, beginning balance			$ 1,593,809
Change in fair value of secured convertible note during the period	$ 887,807		1,300,252
Secured convertible notes, ending balance
2019 Secured Convertible Notes [Member]
Secured convertible notes, beginning balance			1,593,809
Principal repaid during the period by issuance of common stock			(1,259,074)
Principal repaid during the period by payment of cash			(747,180)
Change in fair value of secured convertible note during the period			412,445
Secured convertible notes, ending balance
2020 Convertible Notes [Member]
Secured convertible notes, beginning balance
Issuance of 2020 convertible notes at fair value			778,859
Principal repaid during the period by issuance of common stock			(1,665,666)
Principal repaid during the period by payment of cash			(1,000)
Change in fair value of secured convertible note during the period			887,807
Secured convertible notes, ending balance

Debt Obligations - Schedule o_3

Debt Obligations - Schedule of Certain Estimates and Assumptions of Fair Value of Secured Convertible Notes (Details) - Integer	Apr. 17, 2020	Dec. 31, 2019
2019 Secured Convertible Notes [Member]
Contractual term		7 months 6 days
2019 Secured Convertible Notes [Member] | Volatility [Member]
Debt instrument, measurement input		115
2019 Secured Convertible Notes [Member] | Risk Free Interest Rate [Member]
Debt instrument, measurement input		1.60
2019 Secured Convertible Notes [Member] | Calibrated Stock Price [Member]
Debt instrument, measurement input		1.06
2019 Secured Convertible Notes [Member] | Debt Yield [Member]
Debt instrument, measurement input		123.6
2020 Convertible Notes [Member]
Contractual term	11 months 1 day
2020 Convertible Notes [Member] | Volatility [Member]
Debt instrument, measurement input	90
2020 Convertible Notes [Member] | Risk Free Interest Rate [Member]
Debt instrument, measurement input	0.36
2020 Convertible Notes [Member] | Calibrated Stock Price [Member]
Debt instrument, measurement input	0.92
2020 Convertible Notes [Member] | Debt Yield [Member]
Debt instrument, measurement input	132.2

Proceeds Investment Agreement_3

Proceeds Investment Agreement Obligation (Details Narrative) - USD ($)	Aug. 21, 2018	Jul. 31, 2018	May 31, 2019	Dec. 31, 2019	Jun. 30, 2020
Common stock, par value				$ 0.001	$ 0.001
Lump sum payment received				$ 6,000,000
2018 Proceeds Investment Agreement [Member] | Brickell Key Investments LP [Member]
Funded amount		$ 10,000,000
Investment agreement description		The Company agreed to assign to BKI (i) 100% of all gross, pre-tax monetary recoveries paid by any defendant(s) to the Company or its affiliates agreed to in a settlement or awarded in judgment in connection with the patent assets, plus any interest paid in connection therewith by such defendant(s) (the "Patent Assets Proceeds"), up to the minimum return (as defined in the Agreement) and (ii) if BKI has not received its minimum return by the earlier of a liquidity event (as defined in the Agreement) and July 31, 2020, then the Company agreed to assign to BKI 100% of the Patent Asset Proceeds until BKI has received an amount equal to the minimum return on $4.0 million.
Payments of minimum return		$ 4,000,000
Indebtedness		$ 500,000
Common stock, par value		$ 0.001
Description of warrants reflecting agreement
Warrant to purchase shares of common stock		465,712
Warrant Exercise Price Per Share		$ 2.60
Lump sum payment received			$ 6,000,000
Minimum return payment obligations			$ 6,000,000
2018 Proceeds Investment Agreement [Member] | Brickell Key Investments LP [Member] | First Tranche [Member]
Funded amount		$ 500,000
2018 Proceeds Investment Agreement [Member] | Brickell Key Investments LP [Member] | Second Tranche [Member]
Funded amount	$ 10,000,000	$ 9,500,000
Number of option exercised	9,500,000

Proceeds Investment Agreement_4

Proceeds Investment Agreement Obligation - Schedule of Proceeds Investment Obligation (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Proceeds Investment Agreement Obligation
Proceeds investment agreement, at fair value	$ 3,615,000
Less: Current portion	(3,615,000)
Proceeds investment agreement, at fair value - Long-term		$ 6,500,000

Proceeds Investment Agreement_5

Proceeds Investment Agreement Obligation - Schedule of Fair Value Proceeds Investment Obligation (Details)	6 Months Ended
	Jun. 30, 2020USD ($)
Gross cash proceeds	$ 10,000,000
Proceeds Investment Agreement [Member]
Gross cash proceeds	9,067,513
Common Stock Purchase Warrants [Member]
Gross cash proceeds	$ 932,487

Proceeds Investment Agreement_6

Proceeds Investment Agreement Obligation - Schedule of Certain Estimates and Assumptions of Weighted Patent Asset (Details) - Patent Asset [Member] - Axon and WatchGuard [Member] - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019	Dec. 30, 2019
Probability of success	90.00%
Estimated minimum return payable to BKI	$ 4,000,000		$ 21,000,000
Negotiation discount	0.00%		43.30%
Minimum [Member]
Discount rate	15.13%	3.00%
Expected term to patent asset proceeds payment	3 months 29 days	6 months 29 days
Probability of success		5.90%
Maximum [Member]
Discount rate	15.18%		400.00%
Expected term to patent asset proceeds payment	3 years 9 months		4 years
Probability of success			38.50%

Proceeds Investment Agreement_7

Proceeds Investment Agreement Obligation - Schedule of Proceeds Investment Agreement Activity (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Proceeds Investment Agreement Obligation
Beginning balance as of December 31, 2019
Repayment of obligation
Change in the fair value during the period	$ (2,578,000)	$ 2,961,000	(2,885,000)	$ 3,098,000
Ending balance as of June 30, 2020	$ 3,615,000		$ 3,615,000

Fair Value Measurement - Financ

Fair Value Measurement - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Secured convertible notes		$ 1,593,809
Proceeds investment agreement obligation	3,615,000	6,500,000
Liabilities, fair value	3,615,000	8,093,809
Level 1 [Member]
Secured convertible notes
Proceeds investment agreement obligation
Liabilities, fair value
Level 2 [Member]
Secured convertible notes
Proceeds investment agreement obligation
Liabilities, fair value
Level 3 [Member]
Secured convertible notes		1,593,809
Proceeds investment agreement obligation	3,615,000	6,500,000
Liabilities, fair value	$ 3,615,000	$ 8,093,809

Fair Value Measurement - Fair V

Fair Value Measurement - Fair Value Measurements Change in Level 3 Inputs (Details)	6 Months Ended
	Jun. 30, 2020USD ($)
Fair value measurement, beginning balance	$ 8,093,809
Issuance of secured convertible debt	778,859
Conversion of secured convertible debentures	(2,924,740)
Repayment of 2019 secured convertible notes	(748,180)
Change in fair value of secured convertible debentures and proceeds investment agreement	(1,548,748)
Fair value measurement, ending balance	3,615,000
2019 Secured Convertible Notes [Member]
Fair value measurement, beginning balance	1,593,809
Issuance of secured convertible debt
Conversion of secured convertible debentures	(1,259,074)
Repayment of 2019 secured convertible notes	(747,180)
Change in fair value of secured convertible debentures and proceeds investment agreement	412,445
Fair value measurement, ending balance
2020 Convertible Notes [Member]
Fair value measurement, beginning balance
Issuance of secured convertible debt	778,859
Conversion of secured convertible debentures	(1,665,666)
Repayment of 2019 secured convertible notes	(1,000)
Change in fair value of secured convertible debentures and proceeds investment agreement	887,807
Fair value measurement, ending balance
Proceeds Investment Agreement [Member]
Fair value measurement, beginning balance	6,500,000
Issuance of secured convertible debt
Conversion of secured convertible debentures
Change in fair value of secured convertible debentures and proceeds investment agreement	(2,885,000)
Fair value measurement, ending balance	$ 3,615,000

Accrued Expenses - Schedule of

Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Payables and Accruals [Abstract]
Accrued warranty expense	$ 30,711	$ 17,838
Accrued litigation costs	250,000	295,000
Accrued sales commissions	25,772	28,480
Accrued payroll and related fringes	181,970	233,254
Accrued insurance	60,894	78,579
Accrued sales returns and allowances	10,267	18,258
Accrued sales taxes	43,900	50,136
Other	235,233	124,336
Total accrued expenses	$ 838,747	$ 845,881

Accrued Expenses - Schedule o_2

Accrued Expenses - Schedule of Accrued Warranty Expense (Details)	6 Months Ended
	Jun. 30, 2020USD ($)
Payables and Accruals [Abstract]
Beginning balance	$ 17,838
Provision for warranty expense	52,796
Charges applied to warranty reserve	(39,923)
Ending balance	$ 30,711

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Effective tax rate expected statutory valuation allowance on net deferred tax assets	100.00%	100.00%
Net operating loss carry-forwards	$ 67,000,000
Research And Development [Member]
Tax credit carryforwards	$ 1,795,000

Operating Leases (Details Narra

Operating Leases (Details Narrative)	6 Months Ended
	Jun. 30, 2020USD ($)
Warehouse And Office Space [Member]
Weighted average remaining lease term	79 months
Warehouse And Office Space [Member] | Minimum [Member]
Operating lease monthly payments	$ 12,398
Warehouse And Office Space [Member] | Maximum [Member]
Operating lease monthly payments	13,693
October 2019 for Copiers [Member]
Operating lease monthly payments	$ 1,598
Weighted average remaining lease term	43 months
Operating lease maturity date	Oct. 31, 2023
Office Space and Copier [Member]
Operating lease expense	$ 252,290
Weighted average discount rate	8.00%

Operating Leases - Schedule of

Operating Leases - Schedule of Operating Leases Right of Use Assets and Liabilities (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Leases [Abstract]
Operating lease right of use assets	$ 769,635	$ 122,459
Operating lease obligations-Long-term portion	731,334	44,460
Operating lease obligations-Current portion	44,308	$ 159,160
Total operating lease obligations	$ 775,642

Operating Leases - Schedule o_2

Operating Leases - Schedule of Components of Lease Expenses (Details)	6 Months Ended
	Jun. 30, 2020USD ($)
Selling, General and Administrative Expenses [Member]
Selling, general and administrative expenses	$ 252,290

Operating Leases - Schedule o_3

Operating Leases - Schedule of Future Minimum Lease Payments (Details)	Jun. 30, 2020USD ($)
Leases [Abstract]
2020 (July 1, to December 31, 2020)	$ 21,986
2021	169,691
2022	172,666
2023	172,542
2024	159,703
Thereafter	310,259
Total undiscounted minimum future lease payments	1,006,847
Imputed interest	(231,205)
Total operating lease liability	$ 775,642

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - USD ($)	Jun. 04, 2020	Apr. 22, 2020	Jan. 13, 2020	Jan. 08, 2020	Jul. 11, 2019	May 13, 2019
Market Value Listed Securities [Member]
Description on terms of Nasdaq listing	On June 4, 2020 and June 10, 2020, we consummated underwritten public offerings, pursuant to underwriting agreements and raised aggregate gross proceeds of approximately $11.3 million, before underwriting discounts and commissions and other estimated expenses of such offerings. As a result of such offerings, we achieved compliance with Rule 5550(b)(1) and on June 18, 2020 we received written notice from the Staff stating that we had regained compliance with such rule and the matter is now closed.	On April 22, 2020, we received a written notification from the Nasdaq Stock Market LLC indicating that we were not in compliance with Nasdaq Listing Rule 5550(a)(2), as the closing bid price for our Common Stock was below $1.00 per share for the last thirty (30) consecutive business days. Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), we were granted a 180-calendar day compliance period to regain compliance with the minimum bid price requirement. Subsequently, the 180-day grace period to regain compliance with such minimum bid price requirement under applicable Nasdaq Stock Market LLC rules was extended due to the global market impact caused by COVID-19. More specifically, the Nasdaq Stock Market LLC has stated that the compliance periods for any company previously notified about non-compliance will be suspended effective April 16, 2020, through June 30, 2020. On July 1, 2020, companies not in compliance would receive the balance of any pending compliance period exception to come back into compliance with such minimum bid price requirement. As a result of this extension, we had until December 28, 2020, to regain compliance with such minimum bid price requirement. During the compliance period, our Common Stock would still continue to be listed and traded on Nasdaq. To regain compliance, the closing bid price of the Common Stock had to have met or exceeded $1.00 per share for at least ten (10) consecutive business days by December 28, 2020. On June 11, 2020, our Common Stock met such minimum bid price requirement, as the closing sale price of our Common Stock had equaled or exceeded $1.00 per share on Nasdaq at the close of each trading day since May 29, 2020, and we received written notice from the Staff stating that the Company regained compliance with such requirement and the matter is now closed.	On January 13, 2020, we requested a hearing before the Nasdaq Hearings Panel to appeal the Letter and a hearing was held on February 20, 2020, when we appeared before the Panel to discuss our plan to regain compliance, including, but not limited to, complying with Nasdaq Listing Rule 5550(b)(1), which is the minimum stockholders’ equity standard for continued listing, which requires that companies listed on Nasdaq maintain a minimum of $2,500,000 in stockholders’ equity (“Rule 5550(b)(1)”). On March 6, 2020, we received written notice from the Panel indicating that, based on the plan of compliance that we had presented at such hearing, the Panel granted our request for the continued listing of our Common Stock on Nasdaq, subject to, among other things, us keeping the Staff updated on the progress of our compliance plan and ultimately being able to evidence shareholder equity in an amount greater than or equal to $2,500,000 in accordance with Rule 5550(b)(1) no later than June 30, 2020. During this time, our Common Stock remained listed and trading on Nasdaq.	On January 8, 2020, we received a determination letter from the staff of The Nasdaq Stock Market LLC stating that we had not regained compliance with the MVLS Standard, since our Common Stock was below the $35 million minimum MVLS requirement for continued listing on Nasdaq under the MLVS Rule and had not been at least $35 million for a minimum of 10 consecutive business days at any time during the 180-day grace period granted to us. Pursuant to the Letter, unless we requested a hearing to appeal this determination by January 15, 2020, our Common Stock would have been delisted from Nasdaq, trading of our Common Stock would have been suspended at the opening of business on January 17, 2020, and a Form 25-NSE would have been filed with the SEC, which would have removed our Common Stock from listing and registration on Nasdaq.	On July 11, 2019, we were officially notified by The Nasdaq Stock Market LLC that, for the previous 30 consecutive business days, the minimum Market Value of Listed Securities (the “MVLS”) for our Common Stock was below the $35 million minimum MVLS requirement for continued listing on Nasdaq under Nasdaq Listing Rule 5550(b)(2). In accordance with Nasdaq Listing Rule 5810(c)(3)(C), we had 180 calendar days, or until January 7, 2020, to regain compliance with the MVLS Rule, or in the alternative, the minimum stockholders’ equity requirement of $2,500,000. To regain compliance with the MVLS Rule, the minimum MVLS for our Common Stock must have been at least $35 million for a minimum of 10 consecutive business days at any time during this 180-day period. If we failed to regain compliance with either the MVLS Rule or the minimum stockholders’ equity requirement by January 7, 2020, we could have been delisted from Nasdaq.
WatchGuard [Member]
One-time settlement payment						$ 6,000,000

Stock-Based Compensation (Detai

Stock-Based Compensation (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Sep. 09, 2020
Stock based compensation	$ 376,738	$ 585,195	$ 688,415	$ 1,310,393
Number of common stock authorized to grant	4,175,000		4,175,000
Number of shares, available for grant	1,437		1,437
Fair value of stock options issued			$ 0
Stock options granted
Aggregate intrinsic value of options outstanding	$ 187,800		$ 187,800
Intrinsic value of options exercisable	187,800		187,800
Intrinsic value of options exercised
Unrecognized stock compensation expense	0		0
Non Vested Restricted Stock Grants [Member]
Unrecognized stock compensation expense	$ 505,271		$ 505,271
2005 Stock Option Plan [Member] | During 2015 [Member]
Number of common stock shares reserved for awards which unavailable for issuance	19,678		19,678
Unexercised and outstanding stock options	7,563		7,563
2006 Stock Option Plan [Member] | During 2016 [Member]
Number of common stock shares reserved for awards which unavailable for issuance	25,849		25,849
Unexercised and outstanding stock options	39,750		39,750
2007 Stock Option Plan [Member] | During 2017 [Member]
Number of common stock shares reserved for awards which unavailable for issuance	89,651		89,651
Unexercised and outstanding stock options	5,000		5,000
2008 Plan [Member] | During 2018 [Member]
Number of common stock shares reserved for awards which unavailable for issuance	9,249		9,249
Unexercised and outstanding stock options	31,250		31,250
2020 Stock Option Plan [Member]
Number of common stock shares reserved for awards which unavailable for issuance	1,500,000		1,500,000
2020 Stock Option Plan [Member] | Subsequent Event [Member] | Annual Meeting [Member]
Number of common stock authorized to grant					1,500,000
Number of common stock shares reserved for awards which unavailable for issuance					1,500,000

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock Options Outstanding (Details)	6 Months Ended
	Jun. 30, 2020$ / sharesshares
Options Granted
Stock Options [Member]
Options Outstanding, Beginning balance	589,125
Options Granted
Options Exercised	(1,875)
Options Forfeited	3,937
Options Outstanding, Ending balance	583,313
Options Exercisable, Ending balance	583,313
Weighted Average Exercise Price, Outstanding, Beginning balance | $ / shares	$ 3.74
Weighted Average Exercise Price, Granted | $ / shares
Weighted Average Exercise Price, Exercised | $ / shares	4.16
Weighted Average Exercise Price, Forfeited | $ / shares	(12.14)
Weighted Average Exercise Price, Outstanding, Ending balance | $ / shares	3.69
Weighted Average Exercise Price, Exercisable, Ending balance | $ / shares	$ 3.69

Stock-Based Compensation - Shar

Stock-Based Compensation - Shares Authorized Under Stock Option Plans by Exercise Price Range (Details)	6 Months Ended
	Jun. 30, 2020$ / sharesshares
Number of options, outstanding	583,313
Weighted average remaining contractual life, outstanding options	6 years 9 months 18 days
Number of options, exercisable	583,313
Weighted average remaining contractual life, exercisable options	6 years 9 months 18 days
Exercise Price Range One [Member]
Exercise price range, lower limit | $ / shares	$ 0.01
Exercise price range, upper limit | $ / shares	$ 3.49
Number of options, outstanding	470,313
Weighted average remaining contractual life, outstanding options	7 years 10 months 25 days
Number of options, exercisable	470,313
Weighted average remaining contractual life, exercisable options	7 years 10 months 25 days
Exercise Price Range Two [Member]
Exercise price range, lower limit | $ / shares	$ 3.50
Exercise price range, upper limit | $ / shares	$ 4.99
Number of options, outstanding	64,000
Weighted average remaining contractual life, outstanding options	3 years 9 months 18 days
Number of options, exercisable	64,000
Weighted average remaining contractual life, exercisable options	3 years 9 months 18 days
Exercise Price Range Three [Member]
Exercise price range, lower limit | $ / shares	$ 5
Exercise price range, upper limit | $ / shares	$ 6.49
Number of options, outstanding
Weighted average remaining contractual life, outstanding options	0 years
Number of options, exercisable
Weighted average remaining contractual life, exercisable options	0 years
Exercise Price Range Four [Member]
Exercise price range, lower limit | $ / shares	$ 6.50
Exercise price range, upper limit | $ / shares	$ 7.99
Number of options, outstanding	7,250
Weighted average remaining contractual life, outstanding options	1 year 3 months 19 days
Number of options, exercisable	7,250
Weighted average remaining contractual life, exercisable options	1 year 3 months 19 days
Exercise Price Range Five [Member]
Exercise price range, lower limit | $ / shares	$ 8
Exercise price range, upper limit | $ / shares	$ 9.99
Number of options, outstanding	2,500
Weighted average remaining contractual life, outstanding options	10 months 25 days
Number of options, exercisable	2,500
Weighted average remaining contractual life, exercisable options	10 months 25 days
Exercise Price Range Six [Member]
Exercise price range, lower limit | $ / shares	$ 10
Exercise price range, upper limit | $ / shares	$ 19.99
Number of options, outstanding	39,250
Weighted average remaining contractual life, outstanding options	6 months
Number of options, exercisable	39,250
Weighted average remaining contractual life, exercisable options	6 months

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of Restricted Stock Activity (Details) - Restricted Stock [Member]	6 Months Ended
	Jun. 30, 2020$ / sharesshares
Number of Restricted shares, Non-vested Beginning Balance | shares	514,875
Number of Restricted shares, Granted | shares	665,500
Number of Restricted shares, Vested | shares	(410,375)
Number of Restricted shares, Forfeited | shares	(35,250)
Number of Restricted shares, Non-vested Ending Balance | shares	747,500
Weighted average grant date fair value, Non-vested Beginning Balance | $ / shares	$ 2.97
Weighted average grant date fair value, Granted | $ / shares	1.05
Weighted average grant date fair value, Vested | $ / shares	(2.74)
Weighted average grant date fair value, Forfeited | $ / shares	(1.84)
Weighted average grant date fair value, Non-vested Ending Balance | $ / shares	$ 1.75

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Non-vested Balance of Restricted Stock (Details) - Restricted Stock [Member]	Jun. 30, 2020shares
Non-vested balance, 2020 (April 1, 2020 through December 31, 2020)	13,125
Non-vested balance, 2021	480,250
Non-vested balance, 2022	241,375

Common Stock Purchase Warrant_2

Common Stock Purchase Warrants (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2020	Dec. 23, 2019	Aug. 05, 2019
Warrants to purchase common stock	2,686,582	107,000	571,248
Cash proceeds from warrants	$ 5,203,122
Warrants to purchase common shares were exercised on a cashless basis	18,000
Forfeiture of common shares	10,715
Common Stock Purchase Warrants [Member]
Warrant expiration term, description	July 15, 2020 through January 17, 2025
Common Stock Purchase Warrants [Member] | Minimum [Member]
Warrant, exercise per share	$ 1.40
Common Stock Purchase Warrants [Member] | Maximum [Member]
Warrants to purchase common stock	3,393,364
Warrant, exercise per share	$ 16.50
Warrants [Member]
Intrinsic value of all outstanding warrants	$ 295,836
Warrants, weighted average remaining term	21 years 9 months 18 days

Common Stock Purchase Warrant_3

Common Stock Purchase Warrants - Summary of Warrant Activity (Details) - Warrants [Member]	6 Months Ended
	Jun. 30, 2020$ / sharesshares
Warrants, Vested, Beginning balance | shares	4,824,573
Warrants, Granted | shares	1,273,374
Warrants, Exercised | shares	(2,704,583)
Warrants, Cancelled | shares
Warrants, Vested, Ending balance | shares	3,393,364
Weighted average exercise price, Vested, Beginning balance | $ / shares	$ 5.15
Weighted average exercise price, Granted | $ / shares	1.31
Weighted average exercise price, Exercised | $ / shares	(1.95)
Weighted average exercise price, Cancelled | $ / shares
Weighted average exercise price, Vested, Ending balance | $ / shares	$ 6.26

Common Stock Purchase Warrant_4

Common Stock Purchase Warrants - Summary of Range of Exercise Prices and Weighted Average Remaining Contractual Life of Warrants (Details) - Warrants [Member]	6 Months Ended
	Jun. 30, 2020$ / sharesshares
Outstanding and exercisable warrants, Number of warrants	3,393,364
Outstanding and exercisable warrants, Weighted average remaining contractual life	1 year 9 months 18 days
Exercise Price Range One [Member]
Outstanding and exercisable warrants, Exercise price | $ / shares	$ 2.60
Outstanding and exercisable warrants, Number of warrants	465,712
Outstanding and exercisable warrants, Weighted average remaining contractual life	3 years 1 month 6 days
Exercise Price Range Two [Member]
Outstanding and exercisable warrants, Exercise price | $ / shares	$ 3
Outstanding and exercisable warrants, Number of warrants	316,800
Outstanding and exercisable warrants, Weighted average remaining contractual life	2 years 9 months 18 days
Exercise Price Range Three [Member]
Outstanding and exercisable warrants, Exercise price | $ / shares	$ 3.36
Outstanding and exercisable warrants, Number of warrants	166,667
Outstanding and exercisable warrants, Weighted average remaining contractual life	1 year 8 months 12 days
Exercise Price Range Four [Member]
Outstanding and exercisable warrants, Exercise price | $ / shares	$ 3.36
Outstanding and exercisable warrants, Number of warrants	566,666
Outstanding and exercisable warrants, Weighted average remaining contractual life	2 years 8 months 12 days
Exercise Price Range Five [Member]
Outstanding and exercisable warrants, Exercise price | $ / shares	$ 3.65
Outstanding and exercisable warrants, Number of warrants	167,000
Outstanding and exercisable warrants, Weighted average remaining contractual life	2 years
Exercise Price Range Six [Member]
Outstanding and exercisable warrants, Exercise price | $ / shares	$ 3.75
Outstanding and exercisable warrants, Number of warrants	25,753
Outstanding and exercisable warrants, Weighted average remaining contractual life	2 years 1 month 6 days
Exercise Price Range Seven [Member]
Outstanding and exercisable warrants, Exercise price | $ / shares	$ 5
Outstanding and exercisable warrants, Number of warrants	800,000
Outstanding and exercisable warrants, Weighted average remaining contractual life	1 year 6 months
Exercise Price Range Eight [Member]
Outstanding and exercisable warrants, Exercise price | $ / shares	$ 13.43
Outstanding and exercisable warrants, Number of warrants	879,766
Outstanding and exercisable warrants, Weighted average remaining contractual life	7 months 6 days
Exercise Price Range Nine [Member]
Outstanding and exercisable warrants, Exercise price | $ / shares	$ 16.43
Outstanding and exercisable warrants, Number of warrants	5,000
Outstanding and exercisable warrants, Weighted average remaining contractual life	1 month 6 days

Stockholders' Equity (Deficit)

Stockholders' Equity (Deficit) (Details Narrative) - USD ($)	Jun. 10, 2020	Jun. 08, 2020	Jun. 02, 2020	Apr. 17, 2020	Mar. 03, 2020	Jan. 03, 2020	Jun. 30, 2020	Jun. 30, 2019	May 01, 2020	Mar. 31, 2020
Purchase of additional granted common stock
Gross proceeds from offering							$ 12,829,241
President and Chief Executive Officer [Member] | 2020 Issuance of Restricted Common Stock [Member]
Reduction in annual salaries				$ 150,000
President and Chief Executive Officer [Member] | 2018 Stock Option and Restricted Stock Plan [Member]
Number of common stock issued				60,200
Annual salaries									$ 69,231
Chief Financial Officer, Treasurer and Secretary [Member] | 2020 Issuance of Restricted Common Stock [Member]
Reduction in annual salaries				$ 150,000
Chief Financial Officer, Treasurer and Secretary [Member] | 2018 Stock Option and Restricted Stock Plan [Member]
Number of common stock issued				75,250
Annual salaries									$ 55,384
Public Offering [Member]
Stock issued price per shares							$ 1.65			$ 1.15
Underwriting Agreement [Member] | Officers and Employees [Member] | 2020 Issuance of Restricted Common Stock [Member]
Restricted stock granted						530,050
Restricted common stock description						Shares will generally vest one-half on January 2, 2021 and one half on January 2, 2022, provided that each grantee remains an officer or employee on such dates.
Underwriting Agreement [Member] | Public Offering [Member]
Underwriter's legal counsel expense, description	The Underwriters received discounts and commissions of seven percent (7%) of the gross cash proceeds received by the Company from the sale of the common shares in the June 8th Offering. In addition, the Company agreed to pay the Underwriters “road show” expenses, diligence fees and the fees and expenses of the Underwriters’ legal counsel not to exceed $30,000.		The Underwriters received discounts and commissions of seven percent (7%) of the gross cash proceeds received by the Company from the sale of the common shares in the June 2nd Offering. In addition, the Company agreed to pay the Underwriters “road show” expenses, diligence fees and the fees and expenses of the Underwriters’ legal counsel not to exceed $30,000.		The Underwriters received discounts and commissions of seven percent (7%) of the gross cash proceeds received by the Company from the sale of the common stock in the Offering. In addition, the Company agreed to pay the Underwriters (a) a non-accountable expense reimbursement of 1% of the gross proceeds received and (b) “road show” expenses, diligence fees and the fees and expenses of the Underwriters’ legal counsel not to exceed $50,000.
Underwriter's legal counsel expense	$ 30,000		$ 30,000		$ 50,000
Gross proceeds from offering	4,976,692		5,350,413		$ 2,502,136
Estimated offering expenses
Underwriting Agreement [Member] | Roth Capital Partners, LLC [Member] | Public Offering [Member]
Number of common stock issued					2,521,740
Stock issued price per shares					$ 1.15
Purchase of additional granted common stock					378,261
Underwriting Agreement [Member] | Aegis Capital Corp [Member] | Public Offering [Member]
Number of common stock issued		2,325,581	3,090,909
Stock issued price per shares		$ 2.15	$ 1.65
Purchase of additional granted common stock		213,953	463,636

Net Loss Per Share - Calculatio

Net Loss Per Share - Calculation of Weighted Average Number of Shares Outstanding and Loss Per Share Outstanding (Details) - USD ($)	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Earnings Per Share [Abstract]
Numerator for basic and diluted income per share - Net loss	$ (497,894)	$ (2,334,110)	$ (387,730)	$ (3,205,174)	$ (2,832,004)	$ (3,592,904)	$ 10,000,000
Denominator for basic loss per share - weighted average shares outstanding	18,976,724		11,305,248		16,430,214	11,124,222
Dilutive effect of shares issuable upon conversion of convertible debt and the exercise of stock options and warrants outstanding
Denominator for diluted loss per share - adjusted weighted average shares outstanding	18,976,724		11,305,248		16,430,214	11,124,222
Net loss per share: Basic	$ (0.03)		$ (0.03)		$ (0.17)	$ (0.32)
Net loss per share: Diluted	$ (0.03)		$ (0.03)		$ (0.17)	$ (0.32)

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - USD ($)	Jul. 22, 2020	Jul. 13, 2020	Jul. 02, 2020
Commercial and Industrial Real Estate Sale Contract [Member]
Total purchase price		$ 420,000
Termination Agreement [Member] | Subsequent Event [Member] | Brickell Key Investments LP [Member]
Payment for contract termination	$ 1,250,000
Contingent payment	$ 2,750,000
Contract termination description	Under the terms of the Termination Agreement, upon payment of $1,250,000 by the Company to BKI both parties agreed to terminate the PIA and to release each other from any further liability thereunder. Such $1,250,000 payment was made on July 22, 2020. In addition to the $1,250,000 payment, the Company further agreed to pay BKI the following: (a) a contingent payment in the amount of $2,750,000 following the closing of an asset purchase, membership interest purchase, or similar transaction between the Company and a specified third-party (the “Purchase Transaction”) and (b) any and all future proceeds received from Watchguard and its successors and assigns by the Company for WatchGuard’s use of U.S. Patent Nos. 8,781,292 and 9,253,452. For clarity, the Company and BKI further agreed that the payment of the contingent payment would only be due and payable upon the closing of the specified Purchase Transaction and the relevant contingent payment portion of the Termination Agreement, and any obligations stemming therefrom, would automatically terminate if the specified Purchase Transaction is abandoned prior to its closing, including its failure to close within three years from the date of the Termination Agreement. The specified Purchase Transaction has not yet occurred and there is no binding agreement to complete such Purchase Transaction.
Shelf Registration Statement [Member] | Subsequent Event [Member] | IPO [Member]
Aggregate initial offering price			125,000,000