Minim (MINM) 10-Q/A 14 Aug 20 2020 Q2 Quarterly report (amended) 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	Zoom Telephonics, Inc.
Entity Central Index Key	0001467761
Document Type	10-Q/A
Document Period End Date	Jun. 30, 2020
Amendment Flag	true
Amendment Description	This Amendment No. 1 to the quarterly report on Form 10-Q for the period ended June 30, 2020, filed with the Securities and Exchange Commission on August 13, 2020 (the “Original Filing”), is being filed solely for the purpose of correcting an error reflected in Note 4(b) to the Notes to Condensed Consolidated Financial Statements contained in Item 1 of the Form 10-Q that relates to the minimum annual royalty payment outstanding for the remainder of 2020. No other changes have been made to the Original Filing.
Current Fiscal Year End Date	--12-31
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Entity Interactive Data Current	Yes
Entity Incorporation State Country Code	DE
Entity File Number	0-53722
Entity Common Stock, Shares Outstanding		23,891,142
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2020

Condensed Balance Sheets (Unaud

Condensed Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Current assets
Cash and cash equivalents	$ 7,552,134	$ 1,216,893
Restricted cash	800,000	150,000
Accounts receivable, net	5,000,813	4,070,576
Inventories, net	4,621,869	7,440,350
Prepaid expenses and other current assets	225,136	269,738
Total current assets	18,199,952	13,147,557
Other assets	628,000	349,335
Operating lease right-of-use assets, net	144,275	102,716
Equipment, net	307,798	303,099
Total assets	19,280,025	13,902,707
Current liabilities
Accounts payable	7,088,235	5,024,529
Current maturities of long-term debt	257,531	0
Current maturities of operating lease liabilities	96,681	102,716
Accrued other expenses	3,864,933	2,666,471
Total current liabilities	11,307,380	7,793,716
Long-term debt less current maturities	325,769	0
Operating lease liabilities, less current maturities	47,728	0
Total liabilities	11,680,877	7,793,716
Commitments and contingencies (Note 4)
Stockholders' equity
Common stock: authorized: 40,000,000 shares at $0.01 par value, issued and outstanding: 23,781,431 shares at June 30, 2020 and 20,929,928 shares at December 31, 2019	237,814	209,299
Additional paid-in capital	50,237,836	46,496,330
Accumulated deficit	(42,876,502)	(40,596,638)
Total stockholders' equity	7,599,148	6,108,991
Total liabilities and stockholders' equity	$ 19,280,025	$ 13,902,707

Condensed Balance Sheets (Una_2

Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2020	Dec. 31, 2019
Stockholders' equity
Common stock, par value	$ .01	$ 0.01
Common stock, authorized	40,000,000	40,000,000
Common stock, issued	23,781,431	20,929,928
Common stock, outstanding	23,781,431	20,929,928

Condensed Statement of Operatio

Condensed Statement of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Statement [Abstract]
Net sales	$ 10,272,757	$ 8,158,723	$ 22,228,360	$ 16,168,812
Cost of goods sold	8,148,888	5,390,335	17,009,273	10,982,107
Gross profit	2,123,869	2,768,388	5,219,087	5,186,705
Operating expenses:
Selling	2,283,490	2,553,600	4,637,733	5,001,113
General and administrative	716,166	556,758	1,544,105	1,124,557
Research and development	644,492	437,876	1,297,244	920,279
Total	3,644,148	3,548,234	7,479,082	7,045,949
Operating loss	(1,520,279)	(779,846)	(2,259,995)	(1,859,244)
Other income (expense):
Interest income	478	3,967	792	4,001
Interest expense	(2,720)	(16,188)	(8,432)	(48,405)
Other, net	892	(156)	443	(1,905)
Total other income (expense)	(1,350)	(12,377)	(7,197)	(46,309)
Loss before income taxes	(1,521,629)	(792,223)	(2,267,192)	(1,905,553)
Income taxes	6,356	12,890	12,672	20,678
Net loss	$ (1,527,985)	$ (805,113)	$ (2,279,864)	$ (1,926,231)
Net loss per share:
Basic and diluted	$ (0.07)	$ (0.04)	$ (0.10)	$ (0.11)
Basic and diluted weighted average shares	22,275,441	19,066,889	21,776,101	17,622,559

Condensed Consolidated Statemen

Condensed Consolidated Statements of Stockholders' Equity - USD ($)	Common Stock	Additional Paid In Capital	Accumulated Deficit	Total
Beginning balance, shares at Dec. 31, 2018	16,124,681
Beginning balance, amount at Dec. 31, 2018	$ 161,247	$ 41,035,936	$ (37,320,838)	$ 3,876,345
Net loss			(1,121,118)	(1,121,118)
Stock option exercise, shares	37,500
Stock option exercise, amount	$ 375	4,725		5,100
Stock based compensation		175,012		175,012
Ending balance, shares at Mar. 31, 2019	16,162,181
Ending balance, amount at Mar. 31, 2019	$ 161,622	41,215,673	(38,441,956)	2,935,339
Beginning balance, shares at Dec. 31, 2018	16,124,681
Beginning balance, amount at Dec. 31, 2018	$ 161,247	41,035,936	(37,320,838)	3,876,345
Net loss				(1,926,231)
Stock based compensation				313,768
Ending balance, shares at Jun. 30, 2019	20,742,636
Ending balance, amount at Jun. 30, 2019	$ 207,426	46,259,984	(39,247,069)	7,220,341
Beginning balance, shares at Mar. 31, 2019	16,162,181
Beginning balance, amount at Mar. 31, 2019	$ 161,622	41,215,673	(38,441,956)	2,935,339
Net loss			(805,113)	(805,113)
Private investment offering, net of offering costs, shares	4,545,455
Private investment offering, net of offering costs, amount	$ 45,454	4,897,155		4,942,609
Stock option exercise, shares	35,000
Stock option exercise, amount	$ 350	8,400		8,750
Stock based compensation		138,756		138,756
Ending balance, shares at Jun. 30, 2019	20,742,636
Ending balance, amount at Jun. 30, 2019	$ 207,426	46,259,984	(39,247,069)	7,220,341
Beginning balance, shares at Dec. 31, 2019	20,929,928
Beginning balance, amount at Dec. 31, 2019	$ 209,299	46,496,330	(40,596,638)	6,108,991
Net loss			(751,879)	(751,879)
Stock option exercise, shares	346,834
Stock option exercise, amount	$ 3,468	194,190		197,658
Stock based compensation		127,053		127,053
Ending balance, shares at Mar. 31, 2020	21,276,762
Ending balance, amount at Mar. 31, 2020	$ 212,767	46,817,573	(41,348,517)	5,681,823
Beginning balance, shares at Dec. 31, 2019	20,929,928
Beginning balance, amount at Dec. 31, 2019	$ 209,299	46,496,330	(40,596,638)	6,108,991
Net loss				(2,279,864)
Stock based compensation				194,601
Ending balance, shares at Jun. 30, 2020	23,781,431
Ending balance, amount at Jun. 30, 2020	$ 237,814	50,237,836	(42,876,502)	7,599,148
Beginning balance, shares at Mar. 31, 2020	21,276,762
Beginning balance, amount at Mar. 31, 2020	$ 212,767	46,817,573	(41,348,517)	5,681,823
Net loss			(1,527,985)	(1,527,985)
Private investment offering, net of offering costs, shares	2,237,103
Private investment offering, net of offering costs, amount	$ 22,371	3,140,999		3,163,370
Stock option exercise, shares	267,566
Stock option exercise, amount	$ 2,676	211,716		214,392
Stock based compensation		67,548		67,548
Ending balance, shares at Jun. 30, 2020	23,781,431
Ending balance, amount at Jun. 30, 2020	$ 237,814	$ 50,237,836	$ (42,876,502)	$ 7,599,148

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Operating activities:
Net loss	$ (2,279,864)	$ (1,926,231)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	96,546	185,821
Amortization of right-of-use assets	54,640	243,843
Stock based compensation	194,601	313,768
(Recovery of) provision for accounts receivable allowances	(112,308)	3,207
Provision for inventory reserves	9,578	23,957
Changes in operating assets and liabilities:
Accounts receivable	(817,929)	(794,418)
Inventories	2,808,903	1,151,227
Prepaid expenses and other current assets	44,602	(713,641)
Operating lease liabilities	(54,506)	(269,177)
Accounts payable and accrued expenses	3,262,168	456,695
Net cash provided by (used in) operating activities	3,206,431	(1,324,949)
Investing activities:
Certification costs incurred and capitalized	(308,000)	(135,000)
Purchases of plant and equipment	(71,910)	(90,398)
Net cash used in investing activities	(379,910)	(225,398)
Financing activities:
Net payments to bank credit lines	0	(1,741,272)
Proceeds from debt	583,300	0
Net proceeds from private placement offering	3,163,370	4,942,609
Proceeds from stock option exercises	412,050	13,850
Net cash provided by financing activities	4,158,720	3,215,187
Net increase in cash	6,985,241	1,664,840
Cash, cash equivalents, and restricted cash - beginning	1,366,893	125,982
Cash, cash equivalents, and restricted cash - ending	8,352,134	1,790,822
Supplemental disclosures of cash flow information:
Cash paid during the period for: interest	8,432	48,405
Cash paid during the period for: income taxes	12,672	20,677
Total Cash	$ 8,352,134	$ 125,982

1. Summary of Significant Accou

1. Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Basis of Presentation The accompanying condensed consolidated financial statements (the “financial statements”) are unaudited. However, the condensed consolidated balance sheet as of December 31, 2019 was derived from audited financial statements. In the opinion of management, the accompanying financial statements include all necessary adjustments to present fairly the condensed consolidated financial position, results of operations and cash flows of Zoom Telephonics, Inc. (the “Company” or “Zoom”). The adjustments are of a normal, recurring nature. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the entire year. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern and contemplates continuity of operations, realization of assets and satisfaction of liabilities and commitments in the normal course of business. The Company’s ability to continue as a going concern is contingent upon, among other factors, the Company’s ability to generate sufficient cash flow from operations, decrease operating costs, obtain additional equity or debt financing and comply with the financial and other covenants contained in the Company’s Financing Agreement, as amended, with Rosenthal & Rosenthal, Inc. as described in Note 7. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The financial statements of the Company presented herein have been prepared pursuant to the rules of the Securities and Exchange Commission for quarterly reports on Form 10-Q and do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America. These financial statements should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2019 included in the Company's 2019 Annual Report on Form 10-K for the year ended December 31, 2019. Subsequent Events The Company has evaluated subsequent events from June 30, 2020 through the date of this filing and has determined that there are no such events requiring recognition or disclosure in the financial statements. Sales Tax The Company has a state sales tax liability stemming from the Company’s ‘Fulfilled By Amazon’ sales agreement which allows Amazon to warehouse the Company’s inventory throughout a number of states. Sales tax is collected in states where the Company is required to collect, and the Company is registered in each of these states. Sales and Use Tax filings are completed and filed and tax remitted back to the states is consistent with the individual state filing requirements. Changes to state sales tax regulations are monitored to stay current with the law. As of June 30, 2020, approximately $50 thousand of the original state sales tax liability remains open. The additional liability of approximately $46 thousand relates to sales tax that has been collected and not yet remitted to the respective states. Revenue Recognition Revenue recognition is evaluated through the following five steps: (i) identification of the contract, or contracts, with a customer; (ii) identification of the performance obligations in the contract; (iii) determination of the transaction price; (iv) allocation of the transaction price to the performance obligations in the contract; and (v) recognition of revenue when or as a performance obligation is satisfied. ● Identification of the contract, or contracts, with a customer — ● Identification of the performance obligations in the contract — ● Determination of the transaction price ● Allocation of the transaction price to the performance obligations in the contract ● Recognition of revenue when, or as, the Company satisfies a performance obligation ● The Company has a present right to payment ● The customer has legal title to the goods ● The Company has transferred physical possession of the goods ● The customer has the significant risks and rewards of ownership of the goods ● The customer has accepted the goods The Company has concluded that transfer of control substantively transfers to the customer upon shipment or delivery, depending on the delivery terms of the sales agreement. ● Warranties ● Returned Goods ● Price protection ● Volume Rebates and Promotion Programs Accounts receivable, net: June 30, 2020 December 31, 2019 Gross accounts receivable $ 5,164,739 $ 4,346,810 Allowance for doubtful accounts (163,926 ) (276,234 ) Total accounts receivable, net $ 5,000,813 $ 4,070,576 Accrued other expenses: June 30, 2020 December 31, 2019 Audit, legal, payroll $ 376,699 $ 256,966 Royalty costs 1,933,140 1,125,000 Sales and use tax 95,724 148,836 Sales allowances * 1,196,026 901,196 Other 263,344 234,473 Total accrued other expenses $ 3,864,933 $ 2,666,471 ------------------------------------------------------------------------------------------------------------------------------------------------------------ * A related inventory contract asset stemming from the sales return reserve of $370 thousand and $376 thousand is included within inventories on the accompanying condensed consolidated balance sheets as of June 30, 2020 and December 31, 2019, respectively. Company revenues are primarily from the selling of products that are shipped and billed. Consistent with the revenue recognition accounting standard, revenues are recognized when control is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods and services. Sales are earned at a point in time through ship-and-bill performance obligations. Regarding disaggregated revenue disclosures, as previously noted, the Company’s business is controlled as a single operating segment that consists of the manufacture and sale of Internet access and other communications-related products. Most of the Company’s transactions are very similar in nature, contract, terms, timing, and transfer of control of goods. Disaggregated revenue by distribution channel for three and six months ended: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Retailers $ 8,321,755 $ 7,433,925 $ 19,296,044 $ 14,672,980 Distributors 1,587,617 443,833 2,185,146 965,042 Other 363,385 280,965 747,170 530,790 Total $ 10,272,757 $ 8,158,723 $ 22,228,360 $ 16,168,812 Disaggregated revenue by product for three and six months ended: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Cable Modems & gateways $ 9,192,784 $ 7,213,549 $ 20,362,794 $ 14,286,826 Other 1,079,973 945,174 1,865,566 1,881,986 Total $ 10,272,757 $ 8,158,723 $ 22,228,360 $ 16,168,812 Revenue is recognized when obligations under the terms of a contract with customers are satisfied. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring the products. Based on the nature of the Company’s products and customer contracts, the Company has not recorded any deferred revenue as of June 30, 2020 and December 31, 2019. Any agreements with customers that could impact revenue such as rebates or promotions are recognized in the period of agreement. Amended and Restated Certificate of Incorporation On July 25, 2019, the Company filed a Certificate of Amendment to the Amended and Restated Certificate of Incorporation of the Company which increased the number of authorized common shares from 25,000,000 to 40,000,000. Recently Issued Accounting Standards In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, " Financial Instruments Credit Losses —Measurement of Credit Losses on Financial Instruments In December 2019, the FASB issued ASU 2019-12 “ Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes

2. Liquidity

2. Liquidity	6 Months Ended
	Jun. 30, 2020
Liquidity
Liquidity	The Company’s cash, cash equivalents and restricted cash balance on June 30, 2020 was $8.4 million of which $800 thousand was restricted. This compares to $1.4 million on December 31, 2019 of which $150 thousand was restricted. As of June 30, 2020, the Company had $0 outstanding on its $4.0 million bank credit line, $583.3 thousand on a note, working capital of $6.9 million, and a current ratio of 1.6. The Company closed on a $3.4 million private placement and issued an aggregate of 2,237,103 shares on May 26, 2020 at a purchase price of $1.52 per share, and in connection with the closing of the offering two designees of an investor in the private placement joined Zoom’s Board of Directors. The Company closed on a $5.0 million private placement and issued an aggregate of 4,545,455 shares on May 3, 2019 at a purchase price of $1.10 per share, and in connection with the closing of the offering two designees of an investor in the private placement joined Zoom’s Board of Directors. The Company’s recent loss of $2.3 million for the six months ended June 30, 2020 has raised management concerns as to the Company’s ability to continue as going concern within one year from the date of filing these financial statements. The Company’s financial statements have been prepared assuming that the Company will continue as a going concern and contemplates continuity of operations, realization of assets and satisfaction of liabilities and commitments in the normal course of business. The Company’s ability to continue as a going concern is contingent upon, among other factors, the Company’s ability to generate sufficient cash flow from operations, decrease operating costs, obtain additional equity or debt financing and comply with the financial and other covenants contained in the Company’s Financing Agreement, as amended, with Rosenthal & Rosenthal, Inc. as described in Note 7. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The addition of US tariffs and the Coronavirus (“COVID-19”) pandemic has created potential disruptions to the Company’s operations. The 25% US tariffs assessed on products imported from China had a significant impact on cash and net loss for 2019. In the second quarter of 2020, these tariffs were $1.04 million. These tariffs will continue to have an impact on the Company’s financial performance until the Company has fully transitioned all of its production supply out of China. In late 2019, the Company made the decision to move its outsourced manufacturing operations from China to Vietnam, primarily to end the exposure to the trade-war imposed tariffs with China. While the COVID-19 pandemic caused delays in the original transition plan, the Company has worked actively with its primary outsourced development partner to establish manufacturing operations in Haiphong, Vietnam. The transition to Vietnam was completed in June 2020. All manufacturing of existing models will take place in Vietnam. During the balance of the year, only the initial manufacturing runs of new models will take place in China. During this factory transition and while recovering from the COVID-19-related supply chain shock, the Company temporarily shifted from the use of primarily ocean freight during prior quarters to the use of primarily air freight during Q2 2020 to keep up with demand and replenish supply. This resulted in an additional $0.9 million in freight expense incurred during the second quarter. The tariffs and increased freight expense were the primary reason for the Company recording a net loss of $1.53 million for the quarter. The Company implemented cost cutting measures to conserve cash during the six months ended June 30, 2020, delaying the planned start dates of all new hiring during 2020, and gave notice that it would not renew the same footprint of its headquarters office lease when it expired in June 2020. The Company has retained just one small office within the co-work space office suite on a short-term, month-to-month basis at a cost of $720 per month. Despite the COVID-19 pandemic, the Company’s work force continues to work remotely, and is continuing operations. We negotiated extended and improved payment terms through the end of June 2020 with our primary outsourced manufacturing partner. Due to requirements of the United States Department of Homeland Security and resulting from the continued 25% tariff on imports from China, the Company was required to commit to three letters of credit totaling $800 thousand. These funds are reported as restricted cash on the accompanying condensed consolidated balance sheets: Effective Date Expiration Date June 30, 2020 December 31, 2019 July 9, 2019 July 8, 2020 $ 150,000 $ 150,000 January 8, 2020 January 7, 2021 400,000 –– April 6, 2020 April 6, 2021 250,000 –– Total $ 800,000 $ 150,000 The Company applied for and received approval for a Small Business Administration (“SBA”) Paycheck Protection Plan Loan with Primary Bank under the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”). The loan from the US government in the amount of $583.3 thousand was approved in mid-April and funded in late April 2020. On April 13, 2020, the Company entered into a sixth amendment to the Financing Agreement with Rosenthal & Rosenthal, Inc. This amendment increased the size of the Company’s revolving credit line to $4.0 million effective on the date of this amendment. The Company’s credit line has a maturity date of November 2020, and automatically renews from year to year unless cancelled under the terms of Financing Agreement, as amended. On March 26, 2020, the Company entered into an extension of its networking product license agreement with Motorola through 2025 and also entered into a new license agreement with Motorola to sell consumer grade home security and monitoring products and to provide related services. The Company continues to develop new products and expects to introduce several new models to the market during the remainder of 2020 and 2021. The Company’s ability to maintain adequate levels of liquidity depends in part on its ability to sell inventory on hand, to continue to manufacture and import more inventory to meet existing demand, and to collect related receivables. The Company also continues to work with its distribution partners in North America to deliver inventory to its customers. The current environment is difficult, particularly due to the COVID-19 pandemic, and the outcome of these matters cannot be predicted with any certainty at this time and raises challenges to the Company’s ability to continue as a going concern. There can be no assurance that the Company’s ongoing efforts will continue to be successful.

3. Inventories

3. Inventories	6 Months Ended
	Jun. 30, 2020
Inventory Disclosure [Abstract]
Inventories	Inventories consist of: June 30, 2020 December 31, 2019 Raw Materials $ 994,803 $ 911,054 Work in process 90,626 10,284 Finished goods 3,536,440 6,519,012 Total $ 4,621,869 $ 7,440,350 Finished goods includes consigned inventory of approximately $1.4 million at June 30, 2020 and approximately $1.8 million at December 31, 2019. The Company reviews inventory for obsolete and slow-moving products each quarter and makes provisions based on its estimate of the probability that the material will not be consumed or that it will be sold below cost. The provision for inventory reserves was negligible for both three and six months ended June 30, 2020 and 2019, respectively.

4. Commitments and Contingencie

4. Commitments and Contingencies	6 Months Ended
	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	(a) Contingencies The Company is party to various lawsuits and administrative proceedings arising in the ordinary course of business. The Company evaluates such lawsuits and proceedings on a case-by-case basis, and its policy is to vigorously contest any such claims which it believes are without merit. The Company reviews the status of its legal proceedings and records a provision for a liability when it is considered probable that both a liability has been incurred and the amount of the loss can be reasonably estimated. This review is updated periodically as additional information becomes available. If either or both of the criteria are not met, the Company reassesses whether there is at least a reasonable possibility that a loss, or additional losses, may be incurred. If there is a reasonable possibility that a loss may be incurred, the Company discloses the estimate of the amount of the loss or range of losses, that the amount is not material, or that an estimate of the loss cannot be made. The Company expenses its legal fees as incurred. On January 23, 2020, William Schulze filed a complaint, and subsequently filed an amended complaint on April 3, 2020 (collectively the “Schulze Complaint”) as lead plaintiff on behalf of purchasers of Zoom modems in a putative class action lawsuit against Zoom in the U.S. District Court for the District of Massachusetts. The Schulze Complaint alleged that Zoom modems were sold as new despite containing refurbished parts. On July 28, 2020, the lead plaintiff filed a Stipulation of Dismissal that dismissed the Schulze Complaint with prejudice. The Company does not have any other pending or outstanding material legal proceedings. (b) Commitments In May 2015, Zoom entered into a License Agreement with Motorola Mobility LLC (the “License Agreement”). The License Agreement provides Zoom with an exclusive license to use certain trademarks owned by Motorola Trademark Holdings, LLC for the manufacture, sale and marketing of consumer cable modem products in the United States and Canada through certain authorized sales channels. In August 2016, Zoom entered into an amendment to the License Agreement with Motorola Mobility LLC (the “2016 Amendment”). The 2016 Amendment expands Zoom’s exclusive license to use the Motorola trademark to a wide range of authorized channels worldwide, and expands the license from cable modems and gateways to also include consumer routers, WiFi range extenders, home powerline network adapters, and access points. In August 2017, Zoom entered into an amendment to the License Agreement with Motorola Mobility LLC (the “2017 Amendment”). The 2017 Amendment expands Zoom’s exclusive license to use the Motorola trademark to a wide range of authorized channels worldwide, and expands the license from cable modems, gateways, consumer routers, WiFi range extenders, home powerline network adapters, and access points to also include MoCa adapters, and cellular sensors. The License Agreement, as amended, has a five-year term beginning January 1, 2016 through December 31, 2020 and increased the minimum royalty payments as outlined below. In March 2020, Zoom entered into an amendment to the License Agreement with Motorola Mobility LLC. The 2020 Amendment expands Zoom’s exclusive license to use the Motorola trademark to a wide range of authorized channels worldwide, including Service Provider Channels. The License Agreement, as amended, has a ten-year term beginning January 1, 2016 through December 31, 2025 and modified the minimum royalty payments as outlined below. In connection with the License Agreement, the Company has committed to reserve a certain percentage of wholesale prices for use in advertising, merchandising and promotion of the related products. Additionally, the Company is required to make quarterly royalty payments equal to a certain percentage of the preceding quarter’s net sales with minimum annual royalty payments as follows: Year ending December 31, 2020 remaining: $ 2,550,000 2021: $ 4,300,000 2022: $ 4,300,000 2023: $ 4,300,000 2024: $ 4,300,000 2025: $ 4,300,000 Royalty expense under the License Agreement was $1,275,000 for the second quarter of 2020 and $1,125,000 for the second quarter of 2019, and is included in selling expense on the accompanying condensed consolidated statements of operations.

5. Lease Obligations

5. Lease Obligations	6 Months Ended
	Jun. 30, 2020
Leases [Abstract]
Lease Obligations	In May 2020, the Company signed a two-year lease agreement for 3,218 square feet at 275 Turnpike Executive Park, Canton MA. The agreement includes a one-time option to cancel the second year of lease with three-month advance notice. The location is currently being occupied by the research and development group of the Company. Rent expense for the three and six months ended June 30, 2020 was negligible. In June 2016, the Company signed a three-year sub-lease agreement for 11,480 square feet on the 28th floor of 99 High Street, Boston, MA 02110. The lease for this facility expired on June 30, 2019. The Company signed a twelve-month lease agreement for offices at 225 Franklin Street, Boston, MA and completed the move to this location on June 28, 2019. The lease has an automatic renewal option provision and renews unless cancelled under the terms of the agreement. This lease originally expired on June 30, 2020, although the Company is currently leasing space on a short-term basis while reviewing options for long-term lease for headquarters in Boston. The Company has elected to apply the short-term lease exception under ASC 842 which does not require the recognition of an operating lease liability or right-of-use asset on the condensed consolidated balance sheet in relation to the lease at 225 Franklin Street. Rent expense was $133.6 thousand for the second quarter of 2020 and $98.6 thousand for the second quarter of 2019. Rent expense was $260.8 thousand for the first six months of 2020 and $207.8 thousand for the first six months of 2019. The Company performs most of the final assembly, testing, packaging, warehousing and distribution at a production and warehouse facility in Tijuana, Mexico. In November 2014, the Company signed a one-year lease with five one-year renewal options thereafter for an 11,390 square foot facility in Tijuana, Mexico. In September 2015, Zoom extended the term of the lease from December 1, 2015 through November 30, 2018. In September 2015, Zoom also signed a new lease for additional space in the adjacent building, which doubled its capacity. The term of this lease was from March 1, 2016 through November 30, 2018. The Company currently has a signed lease extension to stay in the existing facilities through at least November 30, 2020. Rent expense was $26.6 thousand for both the second quarter of 2020 and the second quarter of 2019. Rent expense was $53.1 thousand for both the first six months of 2020 and the first six months of 2019. The Company also had a lease for approximately 1,550 square feet in Boston, MA that expired on October 31, 2019 and had been renewed for an additional 12 -month period starting November 1, 2019. The Company has since negotiated out of this lease effective June 30, 2020. The Company had another one-year lease signed in December 2019 for approximately 1,500 square feet in Boston. The Company also negotiated out of this lease effective July 31, 2020. The Company has elected to apply the short-term lease exception for both of these leases under ASC 842 which does not require the recognition of an operating lease liability or right-of-use asset on the condensed consolidated balance sheet in relation to this lease. Rent expense for these leases was approximately $35.4 thousand for the second quarter of 2020 and $18.0 thousand for the second quarter of 2019. Rent expense was $70.8 thousand for the first six months of 2020 and $36 thousand for the first six months of 2019. At the inception of a lease the Company determines whether that lease meets the classification criteria of a finance or operating lease. Some of the Company’s lease arrangements contain lease components (e.g., minimum rent payments) and non-lease components (e.g., maintenance, labor charges, etc.). The Company generally accounts for each component separately based on the estimated standalone price of each component. As of June 30, 2020, the Company's estimated future minimum committed rental payments, excluding executory costs, under the operating leases described above to their expiration or the earliest possible termination date, whichever is sooner, are approximately $79 thousand for 2020, approximately $53 thousand for 2021, and approximately $23 thousand for 2022. There are no future minimum committed rental payments that extend beyond 2022. Operating Leases Operating leases are included in operating lease right-of-use assets, current maturities of operating lease liabilities, and operating lease liabilities, less current maturities on the condensed consolidated balance sheets. These assets and liabilities are recognized at the commencement date based on the present value of remaining lease payments over the lease term using the Company’s secured incremental borrowing rates or implicit rates, when readily determinable. Based on the Company's financial position and ability to obtain financing at the time ASC 842 was adopted, 10% was considered by management to be a reasonable incremental borrowing rate when calculating the present value of remaining lease payments over the lease term. Short-term operating leases, which have an initial term of 12 months or less, are not recorded on the balance sheet. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Lease expense is included in general and administrative expenses on the condensed consolidated statements of operations. The following table presents information about the amount and timing of the Company’s operating leases as of June 30, 2020. Maturity of Lease Liabilities Lease Payments 2020 (remaining) $ 78,857 2021 53,365 2022 22,794 Total undiscounted operating lease payments 155,016 Less: Imputed interest (10,607 ) Present value of operating lease liabilities $ 144,409 Balance Sheet Classification Current maturities of operating lease liabilities $ 96,681 Operating lease liabilities, less current maturities 47,728 Total operating lease liabilities $ 144,409 Other Information Weighted-average remaining lease term for operating leases 1.4 years Weighted-average discount rate for operating leases 10 % Cash Flows Upon adoption of the new lease standard at the beginning of fiscal year 2019, the Company recorded a lease liability in the amount of $420,899, right-of-use assets of $395,565, and reclassified deferred rent of $25,334 as a reduction of the right-of-use assets. During the three months-ended June 30, 2020, the Company recorded an additional lease liability and corresponding right-of-use asset of $96,199 related to the Company’s lease at 275 Turnpike Executive Park. During the six months-ended June 30, 2020, the operating lease liability was reduced by $54,506 and we recorded amortization of our right-of-use assets of $54,640. Supplemental cash flow information and non-cash activity related to our operating leases are as follows: Six Months Ended June 30, 2020 2019 Operating cash flow information: Amounts included in measurement of lease liabilities $ 57,404 $ 271,333 Non-cash activities Right-of-use assets obtained in exchange for lease obligations $ 96,199 $ 395,565

6. Customer and Vendor Concentr

6. Customer and Vendor Concentrations	6 Months Ended
	Jun. 30, 2020
Risks and Uncertainties [Abstract]
Customer and Vendor Concentrations	The Company sells its products primarily through high-volume retailers and distributors, Internet service providers, value-added resellers, system integrators, and original equipment manufacturers ("OEMs"). The Company supports its major accounts in their efforts to offer a well-chosen selection of attractive products and to maintain appropriate inventory levels. Relatively few companies account for a substantial portion of the Company’s revenues. In the second quarter of 2020 three companies accounted for 10% or greater individually, and 88% in the aggregate of the Company’s total net sales. In the first six months of 2020 three companies accounted for 10% or greater individually, and 89% in the aggregate of the Company’s total net sales. At June 30, 2020, four companies with an accounts receivable balance of 10% or greater individually accounted for a combined 89% of the Company’s accounts receivable. In the second quarter of 2019 two companies accounted for 10% or greater individually, and 83% in the aggregate of the Company’s total net sales. In the first six months of 2019, two companies accounted for 10% or greater individually, and 82% in the aggregate of the Company’s total net sales. At June 30, 2019 three companies with an accounts receivable balance of 10% or greater individually accounted for a combined 81% of the Company’s accounts receivable. The Company’s customers generally do not enter into long-term agreements obligating them to purchase products. The Company may not continue to receive significant revenues from any of these or from other large customers. A reduction or delay in orders from any of the Company’s significant customers, or a delay or default in payment by any significant customer could materially harm the Company’s business and prospects. Because of the Company’s significant customer concentration, its net sales and operating income could fluctuate significantly due to changes in political or economic conditions, or the loss, reduction of business, or less favorable terms for any of the Company's significant customers. The Company participates in the PC peripherals industry, which is characterized by aggressive pricing practices, continually changing customer demand patterns and rapid technological developments. The Company's operating results could be adversely affected should the Company be unable to successfully anticipate customer demand accurately; manage its product transitions, inventory levels and manufacturing process efficiently; distribute its products quickly in response to customer demand; differentiate its products from those of its competitors or compete successfully in the markets for its new products. The Company depends on many third-party suppliers for key components contained in its product offerings. For some of these components, the Company may only use a single source supplier, in part due to the lack of alternative sources of supply. During the second quarter of 2020, the Company had one supplier that provided 98% of the Company's purchased inventory. During the second quarter of 2019, the Company had one supplier that provided 93% of the Company's purchased inventory. During the first six months of 2020, the Company had two suppliers that provided 99% of the Company's purchased inventory. During the first six months of 2019, the Company had one supplier that provided 96% of the Company's purchased inventory.

7. Credit Lines

7. Credit Lines	6 Months Ended
	Jun. 30, 2020
Line of Credit Facility [Abstract]
Credit Lines	On December 18, 2012, the Company entered into a Financing Agreement with Rosenthal & Rosenthal, Inc. (the “Financing Agreement”). The Financing Agreement provided for up to $1.75 million of revolving credit, subject to a borrowing base formula and other terms and conditions as specified in the Financing Agreement. The Financing Agreement continued until November 30, 2014 and automatically renews from year to year thereafter, unless sooner terminated by either party as specified in the Financing Agreement. The Lender has the right to terminate the Financing Agreement at any time by giving the Company 60 days’ prior written notice. On March 25, 2014, the Company entered into an amendment to the Financing Agreement (the “First Amendment”) with an effective date of January 1, 2013. The First Amendment clarified the definition of current assets in the Financing Agreement, reduced the size of the revolving credit line to $1.25 million, and revised the financial covenants so that Zoom is required to maintain tangible net worth of not less than $2.0 million and working capital of not less than $1.75 million. On October 29, 2015, the Company entered into a second amendment to the Financing Agreement (the “Second Amendment”). Retroactive to October 1, 2015, the Second Amendment eliminated $2,500 in monthly charges for the Financing Agreement. Effective December 1, 2015, the Second Amendment reduces the effective rate of interest to 2.25% plus an amount equal to the higher of prime rate or 3.25%. On July 19, 2016, the Company entered into a third amendment to the Financing Agreement (the “Third Amendment”). The Third Amendment increased the size of the revolving credit line to $2.5 million effective as of date of the Third Amendment. On September 1, 2016, the Company entered into a fourth amendment to the Financing Agreement (the “Fourth Amendment”). The Fourth Amendment increased the size of the revolving credit line to $3.0 million effective with the date of the Fourth Amendment. On November 2, 2018, the Company entered into a fifth amendment to the Financing Agreement (the “Fifth Amendment”). The Firth Amendment reduced the effective interest rate by 1 percentage point and reduced the annual facility fee by 0.25 percent. On April 13, 2020, the Company entered into a sixth amendment to the Financing Agreement (the “Sixth Amendment”). The Sixth Amendment increased the size of the revolving credit line to $4.0 million effective with the date of this amendment. The Company is required to calculate its covenant compliance on a quarterly basis and as of June 30, 2020, the Company was in compliance with both its working capital and tangible net worth covenants. At June 30, 2020, the Company’s tangible net worth was approximately $6.8 million, while the Company’s working capital was approximately $6.9 million. Loan availability is based on eligible receivables less offsets, if any. Approximately $3.0 million was available on this credit line as of June 30, 2020, consisting of $4 million as 75% of eligible receivables, which is limited to the $4 million loan limit, less an offset of $50 thousand for state tax liabilities and no reduction on outstanding bank debt balance as of June 30, 2020. The sales tax offset will be reduced as the sales tax liability is paid down.

8. Loss Per Share

8. Loss Per Share	6 Months Ended
	Jun. 30, 2020
Net loss per share:
Loss Per Share	Basic loss per share is calculated by dividing net loss attributable to common stockholders by the weighted-average number of common shares. Diluted loss per share reflects additional common shares that would have been outstanding if dilutive potential shares of common stock had been issued. Potential shares of common stock that may be issued by the Company include shares of common stock that may be issued upon exercise of outstanding stock options. Under the treasury stock method, the unexercised options are assumed to be exercised at the beginning of the period or at issuance, if later. The assumed proceeds are then used to purchase shares of common stock at the average market price during the period. Basic and diluted loss per common share for the three-month period ended June 30, 2020 was $0.07, and diluted loss per common share excludes the effects of 314,493 common share equivalents, since such inclusion would be anti-dilutive. Basic and diluted loss per common share for the three-month period ended June 30, 2019 was $0.04, and diluted loss per common share excludes the effects of 471,199 common share equivalents, since such inclusion would be anti-dilutive. Basic and diluted loss per common share for the six-month period ended June 30, 2020 was $0.10, and diluted loss per common share excludes the effects of 314,493 common share equivalents, since such inclusion would be anti-dilutive. Basic and diluted loss per common share for the six-month period ended June 30, 2019 was $0.11, and diluted loss per common share excludes the effects of 471,199 common share equivalents, since such inclusion would be anti-dilutive. The common share equivalents consist of common shares issuable upon exercise of outstanding stock options.

9. Related Party Transactions

9. Related Party Transactions	6 Months Ended
	Jun. 30, 2020
Related Party Transactions [Abstract]
Related Party Transactions	Jeremy Hitchcock, who serves as Executive Chairman of the Company’s Board of Directors, is the co-founder, Chief Executive Officer and a stockholder of Minim Inc. (“Minim”). On July 25, 2019, the Company entered into a Master Partnership Agreement with Minim, together with a related Statement of Work, License, Collaborative Agreement, Software/Service Availability Agreement and Software/Service Support Level Agreement (collectively, the “Partnership Agreement”). Under the Partnership Agreement, the Company will integrate Minim software and services into certain hardware products distributed by the Company, and Minim will be entitled to certain fees and a portion of revenue received from the end users of such services and software. The Company and Minim entered into an additional Statement of Work on December 31, 2019 providing for further integration of Minim services, with a monthly minimum payment of $5,000 payable by the Company to Minim starting in January 2020 for a period of thirty-six months and a requirement for Minim to purchase at least $90,000 of the Company’s hardware by December 2022. As of June 30, 2020, the Company has made total payments of $45,000 to Minim under the Partnership Agreement.

1. Summary of Significant Acc_2

1. Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Basis of Presentation	The accompanying condensed consolidated financial statements (the “financial statements”) are unaudited. However, the condensed consolidated balance sheet as of December 31, 2019 was derived from audited financial statements. In the opinion of management, the accompanying financial statements include all necessary adjustments to present fairly the condensed consolidated financial position, results of operations and cash flows of Zoom Telephonics, Inc. (the “Company” or “Zoom”). The adjustments are of a normal, recurring nature. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the entire year. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern and contemplates continuity of operations, realization of assets and satisfaction of liabilities and commitments in the normal course of business. The Company’s ability to continue as a going concern is contingent upon, among other factors, the Company’s ability to generate sufficient cash flow from operations, decrease operating costs, obtain additional equity or debt financing and comply with the financial and other covenants contained in the Company’s Financing Agreement, as amended, with Rosenthal & Rosenthal, Inc. as described in Note 7. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The financial statements of the Company presented herein have been prepared pursuant to the rules of the Securities and Exchange Commission for quarterly reports on Form 10-Q and do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America. These financial statements should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2019 included in the Company's 2019 Annual Report on Form 10-K for the year ended December 31, 2019.
Subsequent Events	The Company has evaluated subsequent events from June 30, 2020 through the date of this filing and has determined that there are no such events requiring recognition or disclosure in the financial statements.
Sales Tax	The Company has a state sales tax liability stemming from the Company’s ‘Fulfilled By Amazon’ sales agreement which allows Amazon to warehouse the Company’s inventory throughout a number of states. Sales tax is collected in states where the Company is required to collect, and the Company is registered in each of these states. Sales and Use Tax filings are completed and filed and tax remitted back to the states is consistent with the individual state filing requirements. Changes to state sales tax regulations are monitored to stay current with the law. As of June 30, 2020, approximately $50 thousand of the original state sales tax liability remains open. The additional liability of approximately $46 thousand relates to sales tax that has been collected and not yet remitted to the respective states.
Revenue Recognition	Revenue recognition is evaluated through the following five steps: (i) identification of the contract, or contracts, with a customer; (ii) identification of the performance obligations in the contract; (iii) determination of the transaction price; (iv) allocation of the transaction price to the performance obligations in the contract; and (v) recognition of revenue when or as a performance obligation is satisfied. ● Identification of the contract, or contracts, with a customer — ● Identification of the performance obligations in the contract — ● Determination of the transaction price ● Allocation of the transaction price to the performance obligations in the contract ● Recognition of revenue when, or as, the Company satisfies a performance obligation ● The Company has a present right to payment ● The customer has legal title to the goods ● The Company has transferred physical possession of the goods ● The customer has the significant risks and rewards of ownership of the goods ● The customer has accepted the goods The Company has concluded that transfer of control substantively transfers to the customer upon shipment or delivery, depending on the delivery terms of the sales agreement. ● Warranties ● Returned Goods ● Price protection ● Volume Rebates and Promotion Programs Accounts receivable, net: June 30, 2020 December 31, 2019 Gross accounts receivable $ 5,164,739 $ 4,346,810 Allowance for doubtful accounts (163,926 ) (276,234 ) Total accounts receivable, net $ 5,000,813 $ 4,070,576 Accrued other expenses: June 30, 2020 December 31, 2019 Audit, legal, payroll $ 376,699 $ 256,966 Royalty costs 1,933,140 1,125,000 Sales and use tax 95,724 148,836 Sales allowances * 1,196,026 901,196 Other 263,344 234,473 Total accrued other expenses $ 3,864,933 $ 2,666,471 ------------------------------------------------------------------------------------------------------------------------------------------------------------ * A related inventory contract asset stemming from the sales return reserve of $370 thousand and $376 thousand is included within inventories on the accompanying condensed consolidated balance sheets as of June 30, 2020 and December 31, 2019, respectively. Company revenues are primarily from the selling of products that are shipped and billed. Consistent with the revenue recognition accounting standard, revenues are recognized when control is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods and services. Sales are earned at a point in time through ship-and-bill performance obligations. Regarding disaggregated revenue disclosures, as previously noted, the Company’s business is controlled as a single operating segment that consists of the manufacture and sale of Internet access and other communications-related products. Most of the Company’s transactions are very similar in nature, contract, terms, timing, and transfer of control of goods. Disaggregated revenue by distribution channel for three and six months ended: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Retailers $ 8,321,755 $ 7,433,925 $ 19,296,044 $ 14,672,980 Distributors 1,587,617 443,833 2,185,146 965,042 Other 363,385 280,965 747,170 530,790 Total $ 10,272,757 $ 8,158,723 $ 22,228,360 $ 16,168,812 Disaggregated revenue by product for three and six months ended: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Cable Modems & gateways $ 9,192,784 $ 7,213,549 $ 20,362,794 $ 14,286,826 Other 1,079,973 945,174 1,865,566 1,881,986 Total $ 10,272,757 $ 8,158,723 $ 22,228,360 $ 16,168,812 Revenue is recognized when obligations under the terms of a contract with customers are satisfied. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring the products. Based on the nature of the Company’s products and customer contracts, the Company has not recorded any deferred revenue as of June 30, 2020 and December 31, 2019. Any agreements with customers that could impact revenue such as rebates or promotions are recognized in the period of agreement.
Amended and Restated Certificate of Incorporation	On July 25, 2019, the Company filed a Certificate of Amendment to the Amended and Restated Certificate of Incorporation of the Company which increased the number of authorized common shares from 25,000,000 to 40,000,000.
Recently Issued Accounting Standards	In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, " Financial Instruments Credit Losses —Measurement of Credit Losses on Financial Instruments In December 2019, the FASB issued ASU 2019-12 “ Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes

1. Summary of Significant Acc_3

1. Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Reclassification of accounts receivable allowances to accrued other expenses	Accounts receivable, net: June 30, 2020 December 31, 2019 Gross accounts receivable $ 5,164,739 $ 4,346,810 Allowance for doubtful accounts (163,926 ) (276,234 ) Total accounts receivable, net $ 5,000,813 $ 4,070,576 Accrued other expenses: June 30, 2020 December 31, 2019 Audit, legal, payroll $ 376,699 $ 256,966 Royalty costs 1,933,140 1,125,000 Sales and use tax 95,724 148,836 Sales allowances * 1,196,026 901,196 Other 263,344 234,473 Total accrued other expenses $ 3,864,933 $ 2,666,471 ------------------------------------------------------------------------------------------------------------------------------------------------------------ * A related inventory contract asset stemming from the sales return reserve of $370 thousand and $376 thousand is included within inventories on the accompanying condensed consolidated balance sheets as of June 30, 2020 and December 31, 2019, respectively.
Disaggregation of revenue	Disaggregated revenue by distribution channel for three and six months ended: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Retailers $ 8,321,755 $ 7,433,925 $ 19,296,044 $ 14,672,980 Distributors 1,587,617 443,833 2,185,146 965,042 Other 363,385 280,965 747,170 530,790 Total $ 10,272,757 $ 8,158,723 $ 22,228,360 $ 16,168,812 Disaggregated revenue by product for three and six months ended: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Cable Modems & gateways $ 9,192,784 $ 7,213,549 $ 20,362,794 $ 14,286,826 Other 1,079,973 945,174 1,865,566 1,881,986 Total $ 10,272,757 $ 8,158,723 $ 22,228,360 $ 16,168,812

2. Liquidity (Tables)

2. Liquidity (Tables)	6 Months Ended
	Jun. 30, 2020
Liquidity
Restricted cash	Effective Date Expiration Date June 30, 2020 December 31, 2019 July 9, 2019 July 8, 2020 $ 150,000 $ 150,000 January 8, 2020 January 7, 2021 400,000 –– April 6, 2020 April 6, 2021 250,000 –– Total $ 800,000 $ 150,000

3. Inventories (Tables)

3. Inventories (Tables)	6 Months Ended
	Jun. 30, 2020
Inventory Disclosure [Abstract]
Inventories	Inventories consist of: June 30, 2020 December 31, 2019 Raw Materials $ 994,803 $ 911,054 Work in process 90,626 10,284 Finished goods 3,536,440 6,519,012 Total $ 4,621,869 $ 7,440,350

4. Commitments and Contingenc_2

4. Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Minimum annual royalty payments	Year ending December 31, 2020 remaining: $ 2,550,000 2021: $ 4,300,000 2022: $ 4,300,000 2023: $ 4,300,000 2024: $ 4,300,000 2025: $ 4,300,000

5. Lease Obligations (Tables)

5. Lease Obligations (Tables)	6 Months Ended
	Jun. 30, 2020
Leases [Abstract]
Lease maturity	Maturity of Lease Liabilities Lease Payments 2020 (remaining) $ 78,857 2021 53,365 2022 22,794 Total undiscounted operating lease payments 155,016 Less: Imputed interest (10,607 ) Present value of operating lease liabilities $ 144,409 Balance Sheet Classification Current maturities of operating lease liabilities $ 96,681 Operating lease liabilities, less current maturities 47,728 Total operating lease liabilities $ 144,409 Other Information Weighted-average remaining lease term for operating leases 1.4 years Weighted-average discount rate for operating leases 10 %
Supplemental cash flow information related to operating leases	Six Months Ended June 30, 2020 2019 Operating cash flow information: Amounts included in measurement of lease liabilities $ 57,404 $ 271,333 Non-cash activities Right-of-use assets obtained in exchange for lease obligations $ 96,199 $ 395,565

1. Summary of Significant Acc_4

1. Summary of Significant Accounting Policies (Details) - USD ($)		Jun. 30, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Gross accounts receivable		$ 5,164,739	$ 4,346,810
Allowance for doubtful accounts		(163,926)	(276,234)
Total accounts receivable, net		5,000,813	4,070,576
Audit, legal, payroll		376,699	256,966
Royalty costs		1,933,140	1,125,000
Sales and use tax		95,724	148,836
Sales allowances	[1]	1,196,026	901,196
Other		263,344	234,473
Total accrued other expenses		$ 3,864,933	$ 2,666,471
[1]	A related inventory contract asset stemming from the sales return reserve of $370 thousand and $376 thousand is included within inventories on the accompanying condensed consolidated balance sheets as of June 30, 2020 and December 31, 2019, respectively.

1. Summary of Significant Acc_5

1. Summary of Significant Accounting Policies (Details 1) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenues	$ 10,272,757	$ 8,158,723	$ 22,228,360	$ 16,168,812
Cable Modems & Gateways
Revenues	9,192,784	7,213,549	20,362,794	14,286,826
Other
Revenues	1,079,973	945,174	1,865,566	1,881,986
Retailers
Revenues	8,321,755	7,433,925	19,296,044	14,672,980
Distributors
Revenues	1,587,617	443,833	2,185,146	965,042
Other
Revenues	$ 363,385	$ 280,965	$ 747,170	$ 530,790

2. Liquidity (Details)

2. Liquidity (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019
Restricted cash	$ 800,000	$ 150,000	$ 0
Letter of Credit 1
Restricted cash	150,000	150,000
Letter of Credit 2
Restricted cash	400,000	0
Letter of Credit 3
Restricted cash	$ 250,000	$ 0

2. Liquidity (Details Narrative

2. Liquidity (Details Narrative) - USD ($)	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019	Dec. 31, 2018
Liquidity
Cash, cash equivalents, and restricted cash	$ 8,352,134	$ 1,366,893	$ 1,790,822	$ 125,982
Restricted cash	800,000	$ 150,000	$ 0
Line of credit	0
Note	583,300
Working capital	$ 6,900,000

3. Inventories (Details)

3. Inventories (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Materials	$ 994,803	$ 911,054
Work in process	90,626	10,284
Finished goods	3,536,440	6,519,012
Total inventories	$ 4,621,869	$ 7,440,350

3. Inventories (Details Narrati

3. Inventories (Details Narrative) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Finished goods held by customer	$ 1,400,000	$ 1,800,000

4. Commitments and Contingenc_3

4. Commitments and Contingencies (Details)	Jun. 30, 2020USD ($)
Future royalty payments for the year ending December 31,
2020 (remaining)	$ 2,550,000
2021	4,300,000
2022	4,300,000
2023	4,300,000
2024	4,300,000
2025	$ 4,300,000

4. Commitments and Contingenc_4

4. Commitments and Contingencies (Details Narrative) - USD ($)	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Royalty expense	$ 1,275,000	$ 1,125,000

5. Lease Obligations (Details)

5. Lease Obligations (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Leases [Abstract]
2020 (remaining)	$ 78,857
2021	53,365
2022	22,794
Total undiscounted operating lease payments	155,016
Less: imputed interest	(10,607)
Present value of operating lease liabilities	144,409
Current maturities of operating lease liabilities	96,681	$ 102,716
Operating lease liabilities, less current maturities	47,728	$ 0
Total operating lease liabilities	$ 144,409
Weighted-average remaining lease term for operating leases	1 year 4 months 24 days
Weighted-average discount rate for operating leases	10.00%

5. Lease Obligations (Details 1

5. Lease Obligations (Details 1) - USD ($)	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Leases [Abstract]
Amounts included in measurement of lease liabilities	$ 57,404	$ 271,333
Right-of-use assets obtained in exchange for lease obligations	$ 96,199	$ 395,565

5. Lease Obligations (Details N

5. Lease Obligations (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Leases [Abstract]
Right-of-use assets obtained in exchange for lease obligations	$ 96,199	$ 395,565
Amortization of right of use asset	$ 54,640

6. Customer and Vendor Concen_2

6. Customer and Vendor Concentrations (Details Narrative)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Three Companies | Net Sales
Percent concentration	88.00%		89.00%
Three Companies | Accounts Receivable
Percent concentration				81.00%
Two Companies | Net Sales
Percent concentration		83.00%		82.00%
Four Companies | Accounts Receivable
Percent concentration			89.00%
One Supplier | Inventory
Percent concentration	98.00%	93.00%		96.00%
Two Suppliers | Inventory
Percent concentration			99.00%

7. Credit Lines (Details Narrat

7. Credit Lines (Details Narrative)	Jun. 30, 2020USD ($)
Line of Credit Facility [Abstract]
Net worth	$ 6,800,000
Working capital	6,900,000
Line of credit	$ 0

8. Loss Per Share (Details Narr

8. Loss Per Share (Details Narrative) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Net loss per share:
Basic and diluted loss per share	$ (0.07)	$ (0.04)	$ (0.10)	$ (0.11)
Anti-dilutive securities	314,493	471,199	314,493	471,199

Uncategorized Items - zmtp-2020

Label	Element	Value
Cash Equivalents, at Carrying Value	us-gaap_CashEquivalentsAtCarryingValue	$ 7,552,134
Cash Equivalents, at Carrying Value	us-gaap_CashEquivalentsAtCarryingValue	$ 1,790,822