Minim (MINM) 10-K 13 Apr 21 2020 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2020	Mar. 26, 2021	Jun. 30, 2020
Cover [Abstract]
Entity Registrant Name	Zoom Telephonics, Inc.
Entity Central Index Key	0001467761
Document Type	10-K
Document Period End Date	Dec. 31, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
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 Public Float			$ 32,538,240
Entity Common Stock, Shares Outstanding		35,362,854
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2020
Entity Interactive Data Current	Yes
Entity Incorporation State Country Code	DE
Entity File Number	04-2621506

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Current assets
Cash and cash equivalents	$ 771,757	$ 1,216,893
Restricted cash	800,000	150,000
Accounts receivable, net	9,203,334	4,070,576
Inventories	16,504,840	7,440,350
Deposits on inventory purchases	0	1,830
Prepaid expenses and other current assets	399,119	267,908
Total current assets	27,679,050	13,147,557
Equipment, net	455,066	303,099
Operating lease right-of-use assets, net	86,948	102,716
Goodwill	58,872	0
Intangible assets, net	388,629	0
Other assets	942,404	349,335
Total assets	29,610,969	13,902,707
Current liabilities
Accounts payable	11,744,834	5,024,529
Current maturities of long-term debt	2,507,471	0
Current maturities of operating lease liabilities	65,651	102,716
Accrued other expenses	7,465,063	2,666,471
Total current liabilities	21,783,019	7,793,716
Long term debt, less current maturities	15,245	0
Operating lease liabilities, less current maturities	22,235	0
Total liabilities	21,820,499	7,793,716
Commitments and contingencies (Note 6)
Stockholders' equity
Common stock: Authorized: 40,000,000 shares at $0.01 par value; Issued and outstanding: 35,074,922 shares and 20,929,928 shares at December 31, 2020 and 2019, respectively	350,749	209,299
Additional paid-in capital	64,526,664	46,496,330
Accumulated deficit	(57,086,943)	(40,596,638)
Total stockholders' equity	7,790,470	6,108,991
Total liabilities and stockholders' equity	$ 29,610,969	$ 13,902,707

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2020	Dec. 31, 2019
Stockholders equity
Common stock, par value	$ 0.01	$ 0.01
Common stock, authorized	40,000,000	40,000,000
Common stock, issued	35,074,922	20,929,928
Common stock, outstanding	35,074,922	20,929,928

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income Statement [Abstract]
Net sales	$ 47,988,549	$ 37,614,456
Cost of goods sold	34,382,314	26,708,653
Gross profit	13,606,235	10,905,803
Operating expenses:
Selling and marketing	9,154,685	9,222,737
General and administrative	5,443,529	2,666,876
Research and development	3,828,223	2,237,416
Total	18,426,437	14,127,029
Operating loss	(4,820,202)	(3,221,226)
Other:
Interest income	1,081	13,975
Interest expense	(48,552)	(48,404)
Other income (expense)	(21,356)	4,720
Gain on forgiveness of debt (Note 17)	1,057,330	0
Total other income (expense), net	988,503	(29,709)
Loss before income taxes	(3,831,699)	(3,250,935)
Income taxes	26,716	24,865
Net loss	$ (3,858,415)	$ (3,275,800)
Basic and diluted net loss per share	$ (0.15)	$ (0.18)
Weighted average common and common equivalent shares:
Basic and diluted	25,300,976	18,051,070

CONSOLIDATED STATEMENTS OF STOC

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 income (loss)			(3,275,800)	(3,275,800)
Private investment offering, net of expenses shares	4,545,455
Private investment offering, net of expenses amount	$ 45,454	4,987,156		4,942,610
Stock option exercises, Shares	259,792
Stock option exercises, Amount	$ 2,598	58,050		60,648
Stock based compensation		505,188		505,188
Ending Balance, Shares at Dec. 31, 2019	20,929,928
Ending Balance, Amount at Dec. 31, 2019	$ 209,299	46,496,330	(40,596,638)	6,108,991
Net income (loss)				(3,858,415)
Private investment offering, net of expenses shares	2,237,103
Private investment offering, net of expenses amount	$ 22,371	3,140,999		3,163,370
Shares issued in Minimum Merger, shares	10,784,534
Shares issued in Minimum Merger, amount	$ 107,845	12,786,662	(12,631,890)	262,617
Repayment of non-recourse promissory notes from Minim option holders		320,290		320,290
Repurchase of Minim common stock		(14,860)		(14,860)
Stock option exercises, Shares	1,123,357
Stock option exercises, Amount	$ 11,234	1,160,387		1,171,621
Stock based compensation		440,856		440,856
Profit disgorgement		196,000		196,000
Ending Balance, Shares at Dec. 31, 2020	35,074,922
Ending Balance, Amount at Dec. 31, 2020	$ 350,749	$ 64,526,664	$ (57,086,943)	$ 7,790,470

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Operating activities:
Net income (loss)	$ (3,858,415)	$ (3,275,800)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Stock based compensation	440,856	505,188
Depreciation and amortization	235,771	315,456
Amortization of right-of-use assets	136,404	292,849
Provision (recovery) for accounts receivable allowances	(102,631)	264,808
Provision for inventory reserves	0	18,988
Non-cash loan forgiveness	(1,057,330)	0
Changes in operating assets and liabilities:
Accounts receivable	(4,969,826)	(1,574,778)
Inventories	(8,871,803)	468,340
Prepaid expense and other current assets	(129,381)	648,847
Other assets	(142,017)	0
Accounts payable	6,673,914	655,220
Accrued expenses	4,686,050	462,244
Operating lease liabilities	(135,466)	(318,183)
Net cash provided by (used in) operating activities	(7,093,874)	(1,536,821)
Investing activities:
Cash acquired from merger	501,845	0
Purchases of equipment	(302,519)	(174,254)
Certification costs incurred and capitalized	(460,577)	(310,000)
Capitalized software costs	(316,838)	0
Net cash provided by (used in) investing activities	(578,089)	(484,254)
Financing activities:
Net proceeds from (payments to) bank credit lines	2,442,246	(1,741,272)
Proceeds from debt	583,300	0
Net proceeds from private placement offering	3,163,370	4,942,610
Proceeds from stock option exercise	1,171,621	60,648
Proceeds from profit disgorgement	196,000	0
Proceeds from non-recourse promissory notes issued by Minim option holders	320,290	0
Net cash provided by (used in) financing activities	7,876,827	3,261,986
Net change in cash and cash equivalents	204,864	1,240,911
Cash, cash equivalents, and restricted cash - Beginning	1,366,893	125,982
Cash, cash equivalents, and restricted cash - Ending	1,571,757	1,366,893
Cash paid during the period for:
Interest	48,473	48,404
Income taxes	26,716	31,769
Non-cash financing activities:
Net share settlement from non-recourse promissory notes issued by Minim option holders	230,332	0
Repurchase of Minim common stock	(14,860)	0
Cash is reported on the consolidated statements of cash flows as follows:
Cash and cash equivalents	771,757	1,216,893
Restricted cash	800,000	150,000
Total Cash and cash equivalents	$ 1,571,757	$ 1,366,893

1. NATURE OF OPERATIONS

1. NATURE OF OPERATIONS	12 Months Ended
	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF OPERATIONS	Zoom Telephonics, Inc. (“Zoom”) and its wholly owned subsidiaries MTRLC LLC and Minim, Inc. (“Minim"), is a leading creator, designer, marketer, and seller of cable modems and other Internet access products under the Motorola® brand and has a proprietary AI-driven WiFi management and IoT security platform for businesses, homes, and Internet service providers. Minim Merger On November 12, 2020, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Minim, Inc. (“Minim”), a Delaware corporation, that designs, develops, sells and supports an IoT security platform that enables and secures a better connected home. Under the Merger Agreement, an acquisition subsidiary of the Company was merged into Minim in exchange for 10,784,534 shares of common stock of the Company and as a result of the merger, Minim became a wholly-owned subsidiary of Zoom Telephonics, Inc. Immediately prior to closing of the Merger Agreement, the majority stockholder of the Company was also the majority stockholder of Minim. As a result of the common ownership upon closing of the transaction, the acquisition was considered a common-control transaction and was outside the scope of the business combination guidance in ASC 805-50. The entities are deemed to be under common control as of October 9, 2020, which was the date that the majority stockholder acquired control of the Company and, therefore, held control over both companies. The consolidated financial statements incorporate Minim’s financial results and financial information for the period from October 9, 2020 through December 31, 2020. Assets acquired and liabilities assumed are reported at their historical carrying amounts and any difference between the proceeds transferred is recognized in additional paid-in capital. These consolidated financial statements include the historical accounts of the Company since inception and the accounts of Minim since the date of common control commenced on October 9, 2020 (Note 3). On December 4, 2020, the merger contemplated by the Merger Agreement was effected. Zoom and its subsidiaries MTRLC LLC and Minim are herein collectively referred to as the “Company” and the merger of the Company with Minim is referred to as the “Minim Merger” within these financial statements.

2. SUMMARY OF SIGNIFICANT ACCOU

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2020
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	(a) Basis of Presentation and Use of Estimates The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). All significant intercompany balances and transactions have been eliminated in the consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation. None of the reclassifications impacted the consolidated statement of operations for the year ended December 31, 2019. The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expense during the reporting period. Actual results may differ from those estimates. Significant estimates made by the Company include: 1) allowance for doubtful accounts for accounts receivable (collectability); 2) contract liabilities (sales returns, and other variable considerations); 3) asset valuation allowance for deferred income tax assets; 4) write-downs of inventory for slow-moving and obsolete items, and market valuations; 5) stock based compensation; and 6) estimated life of intangible assets and certification costs. (b) Cash and Cash Equivalents All highly liquid investments with original maturities of less than 90 days from the date of purchase are classified as cash equivalents. Cash equivalents consist exclusively of money market funds. The Company has deposits at a limited number of high quality financial institutions with federally insured limits. Balances of cash and cash equivalents at these institutions can be in excess of the insured limits. The Company has not experienced losses on these accounts. (c) Restricted Cash All cash held by the Company that is not immediately available for working capital purposes or has restrictions on use is reported as Restricted cash in the accompanying consolidated balance sheets. Restricted cash balance at December 31, 2020 and 2019 was $800,000 and $150,000, respectively, and consists of a letter of credit to support a bond on tariffs. (d) Allowance for Doubtful Accounts The Company maintains an allowance for doubtful accounts for probable credit losses resulting from the inability of its customers to make required payments. The Company records a specific allowance and revises the expected loss based on an analysis of individual past-due balances. Additionally, based on historical write-offs and the Company’s collection experience, the Company records an additional allowance based on a percentage of outstanding receivables. The Company performs credit evaluations of its customers’ financial condition. These evaluations require judgment and are based on a variety of factors including, but not limited to, current economic trends, payment history and a financial review of the customer. Actual collection losses may differ from management’s estimates, and such differences could be material to the Company's financial position and results of operations. (e) Inventories Inventories are stated at the lower of cost, determined using the first-in, first-out method, or net realizable value. Consigned inventory is held at third-party locations. The Company regularly monitors inventory quantities on hand and records write-downs for excess and obsolete inventories based on the Company’s estimate of demand for its products, potential obsolescence of technology, product life cycles and whether pricing trends or forecasts indicate that the carrying value of inventory exceeds its estimated selling price. These factors are impacted by market and economic conditions, technology changes and new product introductions and require significant estimates that may include elements that are uncertain. Actual demand may differ from forecasted demand and may have a material effect on gross profit. If inventory is written down, a new cost basis is established that cannot be increased in future periods. Shipments from suppliers before the Company receives them are recorded as in-transit inventory when title and the significant risks and rewards of ownership have passed to the Company. The Company retains title to the inventory until purchased by the third-party. Consigned inventory, consisting of finished goods, was approximately $2,293,000 and $1,841,400 at December 31, 2020 and 2019, respectively. (f) Equipment Equipment is stated at cost, less accumulated depreciation. Depreciation of equipment is provided using the straight-line method over the estimated useful lives of the assets. (g) Goodwill, Intangible Assets, and Impairment of Long-Lived Assets Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Intangible assets that are not considered to have a definite useful life are amortized over their useful lives, which are generally nine years or less. Each period, the Company evaluates the carrying amounts of goodwill and intangible assets for recoverability and reviews the estimated remaining useful lives of purchased intangible assets and whether events or changes in circumstances warrant a revision to the remaining periods of amortization. The Company performs a qualitative assessment for an impairment prior to necessitating a quantitative impairment test. If the Company determines in the qualitative assessment that it is more likely than not that the fair value of the asset is less than its carrying value, a quantitative test is then performed. Otherwise, no further testing is required. Using the qualitative method, the Company did not identify any impairment for the year ended December 31, 2020. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. There were no events or changes in circumstances that indicate the carrying amount of long-lived assets may not be recoverable from their undiscounted cash flows. Consequently, the Company did not record any impairment to its long-lived assets during the year ended December 31, 2020. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset or asset group to undiscounted future net cash flows expected to be generated by the asset or asset group. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds their fair value. Assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell. The Company capitalizes certain implementation costs related to its cloud-based enterprise resourcing planning (“ERP”) system. Costs incurred during the application development stage are capitalized. Costs incurred in the preliminary stages of development are expensed as incurred. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable that the expenditures will result in additional functionality. Capitalized implementation costs are amortized on a straight-line basis over its estimated useful life, which is approximately 30 months, representing the remaining contractual term. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. The Company capitalized approximately $230 thousand of costs related to the ERP implementation for the period ended December 31, 2020. In 2020, the Company acquired a web domain for approximately $86 thousand and is amortizing this cost over 5 years. These capitalized costs are included in intangible assets within the consolidated balance sheet. (h) Other Assets Other assets are stated at cost, less accumulated amortization, and primarily include certain certification costs. Certain certification costs incurred that are necessary to market and sell products are capitalized and reported as “other assets” in the accompanying consolidated balance sheets when the costs are measurable, significant, and relating to products that are projected to generate revenue beyond twelve months. These costs are amortized over an 18-month period, beginning when the related products are available to be sold. Total certification costs capitalized during the year ended December 31, 2020 were $460,577, with related amortization expense of $53,333 in 2020. Total certification costs capitalized during the year ended December 31, 2019 were $310,000, with related amortization expense of $128,385 in 2019. As of December 31, 2020 and 2019, the Company had ending balances of $754,577 and $347,333, respectively. (i) Income Taxes Deferred income taxes are provided on the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and on net operating loss and tax credit carry forwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided for that portion of deferred tax assets not expected to be realized. (j) Sales Tax The Company recorded a sales tax accrual in 2017 after the Company became aware that a state sales tax liability was both probable and estimable as of December 31, 2017. The state sales tax liability stems from the Company’s ‘Fulfilled By Amazon’ sales agreement which allows Amazon to warehouse the Company’s inventory throughout a number of states. As a result, the Company recorded an expense of approximately $831 thousand in during the year ended December 31, 2017. During the year 2018, the Company settled its obligations with most of the states and re-assessed its liability which resulted in a reduction of approximately $203 thousand in the sales tax liability. As of December 31, 2019, approximately $51 thousand of the original state sales tax liability remains and $98 thousand relates to sales tax that has been collected and not yet remitted to the respective states. As of December 31, 2020, approximately $50 thousand of the original state sales tax liability remains and $46 thousand relates to sales tax that has been collected and not yet remitted to the respective states. (k) Earnings (Loss) Per Common Share Basic earnings (loss) per share is calculated by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock, except for periods with a loss from operations. Diluted earnings (loss) per share reflects additional shares of common stock 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. Diluted earnings (loss) per common share for the years ended December 31, 2020 and 2019 exclude the effects of 1,436,061 and 467,641 common share equivalents, respectively, since such inclusion would be anti-dilutive. The common share equivalents consist of shares of common stock issuable upon exercise of outstanding stock options. (l) Revenue Recognition The Company primarily sells hardware products to its customers. The hardware products include cable modems and gateways, mobile broadband modems, wireless routers, MoCA adapters and mesh home networking devices. The Company also sells software, including the Minim subscription service that enables and secures a better connected home. The Company derives its net sales primarily from the sales of hardware products to computer peripherals retailers, computer product distributors, OEMs, and direct to consumers and other channel partners via the Internet. The Company accounts for point-of-sale taxes on a net basis. In addition, the Company earns revenues from its software subscription services of the Minim AI-driven smart home WiFi management and security platform. 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 on hardware products substantively transfers to the customer upon shipment or delivery, depending on the delivery terms of the purchase agreement. The Company sells software as a subscription. The subscription software agreements are offered over a defined contract period, generally one year, and are sold to Internet service providers, who then promote the services to their subscribers. These services are available as an on-demand application over the defined term. The agreements include service offerings, which deliver applications and technologies via cloud-based deployment models that the Company develops functionality for, provides unspecified updates and enhancements for, host, manage, upgrade and support and that the customers access by entering into solution agreements for a stated period, generally a one-year term. The monthly fees charged to the customer are based on the number of subscribers utilizing the services each month, and the revenue recognized generally corresponds to the monthly billing amounts as the services are delivered. Other considerations of Topic 606 include the following: ● Warranties ● Returned Goods ● Price Protection ● Volume Rebates and Promotion Programs Accounts receivable, net: December 31, 2020 December 31, 2019 Gross accounts receivable $ 9,376,937 $ 4,346,810 Allowance for doubtful accounts (173,603 ) (276,234 ) Total accounts receivable, net $ 9,203,334 $ 4,070,576 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 the years ended December 31: 2020 2019 Retailers $ 41,553,479 $ 35,164,563 Distributors 4,404,936 1,309,875 Other 2,030,134 1,140,018 Total $ 47,988,549 $ 37,614,456 Disaggregated revenue by product for the years ended December 31: 2020 2019 Cable Modems & Gateways $ 44,473,601 $ 33,810,410 Other 3,514,948 3,804,046 Total $ 47,988,549 $ 37,614,456 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. Any agreements with customers that could impact revenue such as rebates or promotions are recognized in the period of agreement. The Company recorded $120,949 of revenue related to software as a subscription for the year ended December 31, 2020. This software-related revenue is attributable to the Minim Merger, whose financial results are presented from October 9, 2020 to December 31, 2020 (Note 3), and is represented in the above disaggregated revenue by distribution channel and by product segment presentations under "other." (m) Fair Value of Financial Instruments The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: ● Level 1 ● Level 2 ● Level 3 Financial instruments consist of cash and cash equivalents, accounts receivable, bank debt, and accounts payable. Due to the short-term nature and payment terms associated with these instruments, their carrying amounts approximate fair value. (n) Stock-Based Compensation Compensation cost for awards is generally recognized over the required service period based on the estimated fair value of the awards on their grant date. Fair value is determined using the Black-Scholes option-pricing model wherein the discount rate is based on published daily treasury interest rates for zero-coupon bonds available from the US Treasury. Volatility is based on the historical volatility over a period that is commensurate with the expected life of the option granted. (o) Advertising Costs Advertising costs are expensed as incurred and reported in selling expense in the accompanying consolidated statements of operations, and include costs of advertising, production, trade shows, and other activities designed to enhance demand for the Company's products. The Company reported advertising costs of approximately $1.72 million in 2020 and $2.73 million in 2019. (p) Foreign Currencies The Company generates a portion of its revenues in markets outside North America principally in transactions denominated in foreign currencies, which exposes the Company to risks of foreign currency fluctuations. Foreign currency transaction gains and losses are reflected in operations and were not material for any period presented. The Company does not use derivative financial instruments for hedging purposes. (q) Warranty Costs The Company provides for the estimated costs that may be incurred under its standard warranty obligations, based on actual historical repair costs. The reserve for the provision for warranty costs was $47,569 and $37,718 at December 31, 2020 and 2019, respectively. (r) Shipping and Freight Costs The Company records the expense associated with customer-delivery shipping and freight costs in selling expense. The Company reported shipping and freight costs of $426.1 thousand in 2020 and $301.3 thousand in 2019. (s) Recently Adopted Accounting Standards The Company did not adopt any new accounting standard in 2020 that were significant to the Company. (t) 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." ASU 2016-13 requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected, which includes the Company’s accounts receivable. This ASU is effective for the Company for reporting periods beginning after December 15, 2022. The Company is currently assessing the potential impact that the adoption of this ASU will have on our consolidated financial statements. With the exception of the new standard discussed above, there have been no other new accounting pronouncements that have significance, or potential significance, to the Company's financial position, results of operations and cash flows.

3. ACQUISITION OF MINIM, INC.

3. ACQUISITION OF MINIM, INC.	12 Months Ended
	Dec. 31, 2020
Business Combinations [Abstract]
ACQUISITION OF MINIM, INC.	On November 12, 2020, Zoom executed an Agreement and Plan of Merger (the “Merger Agreement”) with Minim, Inc. (“Minim”), a privately held company based in Manchester, New Hampshire that designs, develops, sells and supports an IoT security platform that enables and secures a better-connected home. Upon closing of the Merger Agreement on December 4, 2020, an acquisition subsidiary of Zoom merged into Minim with Minim being the surviving entity of the merger. Upon completion of the merger, all property, assets, other legal rights, debts, obligations, and all other liabilities of Minim transferred. The Agreement was structured as a non-cash, stock transaction. The stockholders of Minim received 10,784,534 shares of Zoom in exchange for the cancelation of 100% of the issued and outstanding shares of common stock of Minim. In addition, the holders of Minim stock options received 1,657,909 of Zoom stock options in exchange for 2,069,644 Minim stock options. The vesting terms of the Minim stock options agreements were transferred to stock option agreements under the Zoom stock options issued. Immediately prior to execution of the Agreement, the majority stockholder of the Company was also the majority stockholder of Minim. As a result of the common ownership upon closing of the transaction, the acquisition was considered a common-control transaction and was outside the scope of the business combination guidance in ASC 805-50. The entities are deemed to be under common control as of October 9, 2020, which was the date that the majority stockholder acquired control of the Company and, therefore, held control over both companies. Pursuant to ASC 250-10 and ASC 805-50, the transaction did not result in a change in the reporting entity and was recognized retrospectively for all periods during which the entities were under common control. For common-control transactions where both receiving entity and the transferring entity were not under common control during the entire reporting period, it is necessary to determine which entity is the predecessor. The predecessor is the reporting entity deemed to be the receiving entity for accounting purposes in a common-control transaction. The predecessor is not always the entity that legally receives the net assets or equity interests transferred. Comparative financial information shall only be adjusted for periods during which the entities were under common control. Since common control between the Company and Minim occurred in the current period, the comparative information of the prior period does not include the financial results of Minim prior to October 9, 2020. Accordingly, for periods in which the combining entities were not under common control, the comparative financial statements presented are those of the entity that is determined to be the predecessor up to the date at which the entities became under common control. Zoom was determined to be the predecessor entity and, therefore, was deemed to be the receiving entity for accounting purposes. Additionally, the consolidated financial statements and financial information presented for prior periods are not required to be restated to reflect the financial position and results of operations of Minim. Assets acquired and liabilities assumed are reported at their historical carrying amounts and any difference between the proceeds transferred is recognized in additional paid-in capital. These consolidated financial statements include the historical accounts of the Company since inception and the accounts of Minim since the date common control commenced. The following table summarizes the historical balances of the assets acquired and liabilities assumed as of October 9, 2020: Assets acquired Cash and cash equivalents $ 501,845 Accounts receivable, net 60,301 Inventories 192,688 Total current assets acquired 754,834 Equipment, net 4,550 Operating lease right-of-use asset, net 24,437 Goodwill 58,872 Intangible assets, net 97,122 Other assets 45,810 Total assets acquired $ 985,625 Liabilities assumed Accounts Payables $ 46,392 Current maturities of long-term debt 554,500 Current maturities of operating lease liabilities 24,437 Accrued other expenses 97,679 Total current liabilities $ 723,008 Net Assets $ 262,617 Minim held $550,662 aggregate principal amount of promissory notes issued by employees during 2019 and 2018 in connection with the exercise of Minim stock options. In connection with the transactions contemplated by the Merger Agreement, the $550,622 aggregate principal amount of the promissory notes was repaid in full. Of the $550,622, the Company received $320,290 in cash. The remaining balance of $230,332 was net settled with 103,842 shares of Minim common stock shares. These shares of common stock are incorporated in the issuance of 10,784,534 shares of Zoom common stock that were issued to Minim stockholders. This repayment occurred before the merger effective date of December 4, 2020 but after the October 9, 2020 commencement of common control. The $320,290 repayment is represented in the consolidated statement of stockholders’ equity and consolidated statement of cash flows for the year end December 31, 2020. Minim repurchased 33,809 shares of Minim common stock for $14,860 from a stockholder who is an immediate family member to the Company’s Executive Chairman of the Board. This repurchase remains unpaid as of December 31, 2020 and is recorded in accrued other expenses in the consolidated balance sheet as of December 31, 2020. This repurchase occurred before the merger effective date of December 4, 2020 but after the October 9, 2020 commence of common control. The $14,860 repurchase is represented in the consolidated statement of stockholders’ equity and consolidated statement of cash flows under accrued other expenses as the amount was not paid as of December 31, 2020. The Company incurred transaction costs of approximately $1,594,042 related to this acquisition which were expensed as incurred and are included in general and administrative expenses in the Company’s consolidated statements of operations for the year ended December 31, 2020.

4. LIQUIDITY

4. LIQUIDITY	12 Months Ended
	Dec. 31, 2020
Liquidity
LIQUIDITY	The Company’s cash and cash equivalent balance on December 31, 2020 was $771.7 thousand compared to $1.2 million on December 31, 2019. On December 31, 2020, the Company had $2.4 million bank debt outstanding on an available asset-based credit line of $4.0 million, and working capital of $5.9 million. 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 and for first two quarters of 2020. For the years ended December 31, 2020 and 2019, tariffs were $2.8 million and $3.2 million, respectively. These tariffs had an unfavorable impact on the Company’s financial performance until July 2020, the first full month after which the Company fully transitioned all of its core 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 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 as of July 2020 takes place in Vietnam. For the second half of the year, only the initial manufacturing runs of new models took place in China. This transition lessened the Company’s tariff burdens and allows for the eventual release of an additional $800,000 in restricted cash over the next year related to performance bonds required to be posted related to the tariffs. The Company is also further diversifying its relationships with outsourced manufacturers. The Company signed a three-year agreement with Foxconn, one of the leading global outsourced manufacturers to the high-tech industry, to manufacture several of the new models the company plans to introduce to the market during 2021. The Company implemented cost cutting measures to conserve cash including postponing new hires in 2020 and not renewing the same footprint of its headquarters office lease when it expired in June 2020. The Company downsized its executive offices by retaining a small office within the City of Boston for research and testing purposes on a short-term, month-to-month basis at a cost of $682 per month starting November 1, 2020. Our work force continues to work remotely, and we are continuing operations. We have negotiated improved payment terms with our primary outsourced manufacturing partner. The Company expanded its revolving working capital line of credit with Rosenthal & Rosenthal from $4 million to $5 million in February 2021 and subsequently replaced the Rosenthal credit line with a $12 million credit facility and a $1 million credit card line provided by Silicon Valley Bank in March 2021. The Company continues to develop new products and anticipates that it will introduce several new models to the market during 2021. While the COVID-19 outbreak disrupted sales and production for a short period of time during mid-March 2020, the Company worked through the disruption. In mid-March, sales initially decreased in response to a key distributor focusing its distribution logistics on essential healthcare products. The Company’s products, which are instrumental to businesses and consumers establishing remote and home-based offices, have since been designated as essential and are once again being offered and are selling at normal levels and certain models are currently selling above their average run rates before COVID-19 had a global impact on business and the economy. The Company continues to work closely with its manufacturing partners and distributors to ensure that the Company’s products remain consistently available for sale to end-users. 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 and funded in April 2020. The Company used the proceeds from the loan for qualifying expenses as defined in the CARES Act. The loan and related accrued interest was partially forgiven in 2020.

5. INVENTORIES

5. INVENTORIES	12 Months Ended
	Dec. 31, 2020
Inventory Disclosure [Abstract]
INVENTORIES	Inventories consist of the following at December 31: 2020 2019 Materials $ 1,238,332 $ 911,054 Work in process 84,203 10,284 Finished goods 15,182,305 6,519,012 Total $ 16,504,840 $ 7,440,350 Finished goods includes consigned inventory held by our customers of $2,293,017 and $1,841,400 at December 31, 2020 and 2019, respectively and includes in-transit inventory of $6,243,165 and $1,930,358 at December 31, 2020 and 2019, respectively. 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 years ended December 31, 2020 and year ended December 31, 2019.

6. EQUIPMENT

6. EQUIPMENT	12 Months Ended
	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
EQUIPMENT	Equipment consists of the following at December 31: 2020 2019 Estimated Useful lives in years Computer hardware and software $ 398,520 $ 308,767 3 Machinery and equipment 426,885 316,945 5 Molds, tools and dies 760,563 651,063 5 Office furniture and fixtures 64,128 50,948 5 1,650,096 1,327,722 Accumulated depreciation (1,195,030 ) (1,024,623 ) Equipment, net $ 455,066 $ 303,099 Depreciation expense for the year ended $ 157,107 $ 132,632

7. GOODWILL

7. GOODWILL	12 Months Ended
	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL	In December 2018, Minim acquired the net assets of MCP Networks Inc., a provider of a cloud-based home network management platform. The acquisition expanded Minim’s subscriber base and thereby offered sales opportunities of Minim’s software services to these subscribers. Minim recorded $58,872 of goodwill related to this acquisition in its historical accounts of December 2018. In accordance with the accounting of a common control transaction (Note 3), the Company recorded $58,872 of goodwill balance at Minim’s historical carrying amount as of October 9, 2020. As of December 31, 2020, the goodwill balance remains unchanged.

8. INTANGIBLE ASSETS

8. INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	Intangible assets are recorded at the estimated fair value of acquired technology and customer relationships and are amortized over the respective estimated useful life using a method that is based on estimated future cash flows, as the Company believes this will approximate the pattern in which the economic benefits of the asset will be utilized. In December 2018, Minim acquired the net assets of MCP Networks Inc., a provider of a cloud-based home network management platform. The acquisition expanded Minim’s subscriber base and thereby offered sales opportunities of Minim’s software services to these subscribers. Minim recorded $122,435 of customer relationships related to this acquisition in its historical accounts of December 2018. In accordance the accounting of a common control transaction (Note 3), the Company recorded Minim’s historical carrying amounts, as of October 9, 2020, $122,435 of customer relationships and $25,313 of related accumulated amortization. Intangible assets consisted of the following at December 31, 2020: Est. Useful Life (yrs) Gross Carrying Amount Accumulated Amortization Net Capitalized internal use software 2.5 $ 230,106 $ (20,431 ) $ 209,675 Customer relationships 9 122,435 (28,768 ) 93,667 Acquired web domain 5 86,732 (1,445 ) 85,287 Totals $ 439,273 $ (50,644 ) $ 388,629 Amortization expense was $25,331 for the year ended December 31, 2020. The Company did not have any intangible assets for the year ended December 31, 2019. The estimated annual amortization expense for each of the five succeeding years and thereafter is as follows: Years Ended December 31, 2021 $ 125,931 2022 123,147 2023 53,762 2024 31,092 2025 29,609 Thereafter 25,088 Total $ 388,629

9. ACCRUED OTHER EXPENSES

9. ACCRUED OTHER EXPENSES	12 Months Ended
	Dec. 31, 2020
Accrued Other Expenses
ACCRUED OTHER EXPENSES	Accrued other expenses for the years ended December 31, 2020 and 2019 consisted of the following: December 31, 2020 December 31, 2019 Inventory purchases $ 1,458,850 $ - Payroll and related benefit costs 853,402 151,473 Professional fees 618,308 105,493 Royalty costs 1,906,439 1,125,000 Contract liabilities* 1,559,847 901,196 Sales and use tax 183,264 148,836 Other 884,953 234,473 Total accrued other expenses $ 7,465,063 $ 2,666,471 * Contract liabilities include sales allowances given to customers. A related inventory contract asset stemming from the sales return reserve of $366 thousand and $376 thousand is included within inventories on the accompanying consolidated balance sheets as of December 31, 2020 and 2019, respectively.

10. COMMITMENTS AND CONTINGENCI

10. COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	(a) 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 year ended December 31, 2020 was $31.0 thousand. Upon the Minim Merger, the Company assumed Minim’s office facility lease located at the 848 Elm Street, Manchester, NH. The two-year facility lease agreement is effective from August 1, 2019 to July 31, 2021 and provides for 2,656 square feet. For the period from October 9, 2020 to December 31, 2020, the rent expense was $6.8 thousand. 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, after which the Company reduced its footprint of leased space and continued on a short-term basis until October 31, 2020. At that time, the Company signed a month-to-month lease agreement for a single office at 101 Arch Street, Boston, MA beginning November 1, 2020, 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 leases at 225 Franklin Street or at 101 Arch Street. Rent expense was $265.9 thousand and $558.2 thousands for the years ended December 31, 2020 and 2019, respectively. 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, we 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 our capacity. The term of this lease was from March 1, 2016 through November 30, 2018. The Company has signed a lease extension to stay in the existing facilities through at least November 30, 2020. Currently, the Company is renting the facilities month-to-month while it negotiates a new lease agreement. Rent expense was $106.2 thousand in 2020 and $106.2 thousand in 2019. The Company also has a lease for approximately 1,550 square feet in Boston, MA that expired on October 31, 2019 and has been renewed for an additional 12 month starting November 1, 2019. The Company has negotiated to terminate this lease effective June 30, 2020. The Company has another one-year lease signed in December 2019 for approximately 1,500 square feet in Boston. The Company also negotiated the termination 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 $76.8 thousand in 2020 and approximately $74.9 thousand in 2019. At 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 December 31, 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 $70.9 thousand for 2021 and $22.8 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, operating lease liabilities, and long-term operating lease liabilities 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 December 31, 2020. December 31, 2020 Maturity of Lease Liabilities Lease Payments 2021 $ 70,865 2022 22,794 Less: Imputed interest (5,773 ) Present value of operating lease liabilities $ 87,886 Balance Sheet Classification Current maturities of operating lease liabilities $ 65,651 Operating lease liabilities, less current maturities 22,235 Total operating lease liabilities $ 87,886 Other Information Weighted-average remaining lease term for operating leases 1.3 Weighted-average discount rate for operating leases 9.0 % Cash Flows Upon adoption of the new lease standard in 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 year ended December 31, 2020, the Company recorded an additional lease liability and corresponding right-of-use asset of $96,199 related to the Company’s Canton, MA lease. Upon the Minim Merger, the Company recorded Minim’s historical carrying amounts, as of October 9, 2020 (Note 3), right-of-use asset and lease liability of $24,437 and $24,437, respectively. During the years ended December 31, 2020 and 2019, the operating lease liability was reduced by $135,465 and $318,183, respectively. We recorded amortization of our right-of-use assets of $136,404 and $292,849 for the years ended December 31, 2020 and 2019, respectively. Supplemental cash flow information and non-cash activity related to our operating leases are as follows: Year Ended December 31, 2020 2019 Operating cash flow information: Amounts included in measurement of lease liabilities $ 143,761 $ 324,346 Non-cash activities Right-of-use assets obtained in exchange for lease obligations $ 120,635 $ 395,565 (b) Contingencies The Company is a 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. In the ordinary course of their business, the Company and its subsidiaries are subject to lawsuits, arbitrations, claims, and other legal proceedings in connection with their business. Some of the legal actions include claims for substantial or unspecified compensatory and/or punitive damages. A substantial adverse judgment or other unfavorable resolution of these matters could have a material adverse effect on the Company’s financial condition, results of operations, and cash flows. Management believes that the Company has adequate legal defenses with respect to the legal proceedings to which it is a defendant or respondent and that the outcome of these pending proceedings is not likely to have a material adverse effect on the financial condition, results of operations, or cash flows of the Company. However, the Company is unable to predict the outcome of these matters. (c) 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 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 10-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: Years ending December 31, 2021 $ 6,350,000 2022 6,600,000 2023 6,850,000 2024 7,100,000 2025 7,100,000 Total $ 34,000,000 Royalty expense under the License Agreement amounted to $5,100,000 for 2020 and $4,500,000 for 2019 and is reported in selling expense on the accompanying consolidated statements of operations.

11. STOCK OPTION PLANS

11. STOCK OPTION PLANS	12 Months Ended
	Dec. 31, 2020
Equity [Abstract]
STOCK OPTION PLANS	2019 Stock Option Plan On July 9, 2019, the Company established the 2019 Stock Option Plan Number of shares Weighted average exercise price Weighted Average Remaining Contractual Life Outstanding as of January 1, 2019 –– $ –– –– Granted 820,000 0.83 Exercised –– –– Outstanding as of December 31, 2019 820,000 $ 0.83 2.68 Granted 277,037 2.02 Assumed with Minim Merger 1,432,018 0.61 Exercised (276,856 ) 0.82 Expired/Forfeited (205,000 ) 0.84 Outstanding as of December 31, 2020 2,047,199 $ 0.84 3.51 Options exercisable at December 31, 2020 682,770 $ 0.67 2.79 The weighted average grant date fair value of options granted was $2.65 and $0.40 in 2020 and 2019, respectively. The aggregate intrinsic value of options outstanding was approximately $5.7 million and $0.3 million at December 31, 2020 and 2019, respectively. The aggregate intrinsic value of exercisable options was approximately $2.0 million and $0 at December 31, 2020 and 2019, respectively. As of December 31, 2020, there remained 1,675,945 options available to be issued under the 2019 Option Plan. Upon the Minim Merger, the Company converted 1,432,018 options to Minim option holders in exchange for approximately 1,787,654 Minim stock options. 2019 Director Stock Option Plan On July 9, 2019, the Company established the 2019 Director Stock Option Plan Number of shares Weighted average exercise price Weighted Average Remaining Contractual Life Outstanding as of January 1, 2019 –– $ –– –– Granted 45,000 0.97 Exercised –– –– Outstanding as of December 31, 2019 45,000 $ 0.97 2.50 Granted 297,963 2.26 Assumed with Minim Merger 225,981 0.62 Exercised (56,500 ) 1.51 Expired/Forfeited (15,000 ) 1.06 Outstanding as of December 31, 2020 487,354 $ 1.52 3.27 Options exercisable at December 31, 2020 282,124 $ 0.9958 2.32 The weighted average grant date fair value of options granted was $1.30 and $0.53 in 2020 and 2019, respectively. The aggregate intrinsic value of options outstanding was approximately $964.3 thousand and $9.5 thousand at December 31, 2020 and 2019, respectively. The aggregate intrinsic value of exercisable options was approximately $696.3 thousand and $9.5 thousand at December 31, 2020 and 2019, respectively. As of December 31, 2020, there remained 446,146 options available to be issued under the 2019 Directors Plan. Upon the Minim Merger, the Company converted 225,891 options to Minim option holders in exchange for approximately 281,990 Minim stock options. 2009 Stock Option Plan On December 10, 2009, the Company established the 2009 Stock Option Plan Number of shares Weighted average exercise price Weighted Average Remaining Contractual Life Outstanding as of January 1, 2019 1,569,603 1.41 2.13 Granted 90,000 0.95 Exercised (199,792 ) 0.24 Expired/Forfeited (150,000 ) --- Outstanding as of December 31, 2019 1,309,811 1.45 1.28 Granted –– –– Exercised (655,001 ) 1.01 Expired/Forfeited (236,200 ) 1.50 Outstanding as of December 31, 2020 418,610 $ 2.06 0.58 Options exercisable at December 31, 2020 418,610 $ 2.06 0.58 The weighted average grant date fair value of options granted was $0.46 in 2019. No grants were issued under this plan in 2020. The aggregate intrinsic value of options outstanding was approximately $654 thousand at December 31, 2020 and approximately $369 thousand at December 31, 2019. The aggregate intrinsic value of exercisable options was approximately $654 thousand at December 31, 2020 and $353 thousand at December 31, 2019. As of December 31, 2020, there remained no options available to be issued under the 2009 Option Plan. The 2009 Option Plan terminated on December 1, 2019. The 2019 Stock Option Plan was approved on July 9, 2019 and replaced the 2009 Option Plan. 2009 Directors Option Plan On December 10, 2009, the Company established the 2009 Directors Option Plan Number of shares Weighted average exercise price Weighted Average Remaining Contractual Life Outstanding as of January 1, 2019 342,500 1.71 2.52 Granted 97,500 1.09 Exercised (60,000 ) 0.23 Expired/Forfeited (80,000 ) Outstanding as of December 31, 2019 300,000 1.63 2.00 Granted –– –– Exercised (135,000 ) 1.44 Expired/Forfeited (30,000 ) 0.88 Outstanding as of December 31, 2020 135,000 $ 1.98 0.82 Options exercisable at December 31, 2020 135,000 $ 1.98 0.82 The weighted average grant date fair value of options granted was $0.57 in 2019. No grants were issued under this plan in 2020. The aggregate intrinsic value of options outstanding was approximately $222 thousand at December 31, 2020 and $41 thousand at December 31, 2019. The aggregate intrinsic value of exercisable options was approximately $222 thousand at December 31, 2020 and $41 thousand at December 31, 2019. As of December 31, 2019, there remained no options available to be issued under the 2009 Directors Option Plan. The 2009 Directors Option Plan terminated on December 1, 2019. The 2019 Directors Option Plan was approved on July 9, 2019 and replaced the 2009 Directors Option Plan. The Black-Scholes range of assumptions for all stock option plans is shown below: 2020 2019 Assumptions: Expected life 3.24 (yrs) - 6.25 (yrs) 2.75 (yrs) - 3.5 (yrs) Expected volatility 37% - 114.41% 77.74% - 87.40% Risk-free interest rate 0.19% - 1.67% 1.34% - 2.69% Expected dividend yield 0.00% 0.00% The unrecognized stock-based compensation expense related to non-vested stock awards was approximately $705.0 thousand as of December 31, 2020. This amount will be recognized through the fourth quarter of 2021.

12. INCOME TAXES

12. INCOME TAXES	12 Months Ended
	Dec. 31, 2020
Income Tax Disclosure [Abstract]
INCOME TAXES	Income tax expense consists of: Current Deferred Total Year Ended December 31, 2019: U.S. federal $ –– $ –– $ –– State and local 10,792 –– 10,792 Foreign 14,073 –– 14,073 $ 24,865 $ –– $ 24,865 Year Ended December 31, 2020: U.S. federal $ –– $ –– $ –– State and local 11,752 –– 11,752 Foreign 14,964 –– 14,964 $ 26,716 $ –– $ 26,716 A reconciliation of the expected income tax expense or benefit to actual follows: 2019 2020 Computed "expected" US benefit at Federal statutory rate $ (685,652 ) $ (807,799 ) Change resulting from: State and local income taxes, net of federal income tax benefit (102,770 ) (145,891 ) Valuation allowance 411,810 (121,000 ) Non––deductible items 87,998 394,236 Expired Federal net operating loss 218,376 1,043,171 Federal and state rate changes 95,103 (113,340 ) Non-taxable PPP loan forgiveness –– (222,661 ) Income tax expense $ 24,865 $ 26,716 Temporary differences at December 31 follow: 2019 2020 Deferred income tax assets: Inventories $ 145,884 $ 241,874 Accounts receivable 253,559 445,392 Accrued expenses 80,068 116,254 Net operating loss and tax credit carry forwards 13,276,081 15,243,998 Plant and equipment 6,014 39,521 Stock compensation 123,841 448,375 Lease accounting 26,515 248 Other – interest expense 12,385 24,009 Total deferred income tax assets 13,924,347 16,559,671 Valuation allowance (13,924,347 ) (16,559,671 ) Net deferred tax assets $ –– $ –– On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”) that significantly revised the U.S. tax code effective January 1, 2018 by, among other things, lowering the corporate income tax rate from a top marginal rate of 35% to a flat 21%. As of December 31, 2020, the Company had federal net operating loss carry forwards of approximately $61,779,000 which are available to offset future taxable income. They are due to expire in varying amounts from 2021 to 2039. Federal net operating losses occurring after December 31, 2017, of approximated $13,617,000 may be carried forward indefinitely. As of December 31, 2020, the Company had state net operating loss carry forwards of approximately $19,151,000 which are available to offset future taxable income. They are due to expire in varying amounts from 2032 through 2039. The Company’s merger with Minim in 2020 triggered a change of ownership that may limit the use of our net operating losses. The Company is in the process of determining the impact of any such limitation. A valuation allowance has been established for the full amount of deferred income tax assets as management has concluded that it is more-likely than-not that the benefits from such assets will not be realized. The Company reviews annually the guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in the financial statements. Tax positions must meet a "more-likely-than-not" recognition threshold. At December 31, 2020 and 2019, the Company did not have any uncertain tax positions. No interest and penalties related to uncertain tax positions were accrued at December 31, 2020 and 2019. The Company files income tax returns in the United States and Mexico. Tax years subsequent to 2016 remain subject to examination for both US federal and state tax reporting purposes. Tax years subsequent to 2014 remain subject to examination for Mexico tax reporting purposes. The foreign income tax reported represents tax on operations for the Company that is located in a special economic zone in Mexico. Other than the Mexico facility, the Company has no operations in a foreign location.

13. SIGNIFICANT CUSTOMERS

13. SIGNIFICANT CUSTOMERS	12 Months Ended
	Dec. 31, 2020
Risks and Uncertainties [Abstract]
SIGNIFICANT CUSTOMERS	The Company sells its products primarily through high-volume distributors and retailers, Internet service providers, telephone service providers, value-added resellers, PC system integrators, and OEMs. The Company supports its major accounts in their efforts to discern strategic directions in the market, to maintain appropriate inventory levels, and to offer a balanced selection of attractive products. Relatively few companies account for a substantial portion of the Company’s revenues. In 2020, two companies accounted for 10% or greater individually, and 76% in the aggregate of the Company’s total net sales. At December 31, 2020 three companies with an accounts receivable balance of 10% or greater individually accounted for a combined 85% of the Company’s accounts receivable. In 2019, two companies accounted for 10% or greater individually, and 84% in the aggregate of the Company’s total net sales. At December 31, 2019, three companies with an accounts receivable balance of 10% or greater individually accounted for a combined 84% of the Company’s accounts receivable.

14. SEGMENT AND GEOGRAPHIC INFO

14. SEGMENT AND GEOGRAPHIC INFORMATION	12 Months Ended
	Dec. 31, 2020
Segment Reporting [Abstract]
SEGMENT AND GEOGRAPHIC INFORMATION	The Company's operations are classified as one reportable segment. Substantially all of the Company's operations and long-lived assets reside primarily in the North America. Net sales information is as follows: FY 2020 Percent FY 2019 Percent North America $ 47,116,632 98.2 % $ 36,741,262 97.7 % Outside North America 871,917 1.8 % 873,194 2.3 % Total $ 47,988,549 100.0 % $ 37,614,456 100.0 %

15. DEPENDENCE ON KEY SUPPLIERS

15. DEPENDENCE ON KEY SUPPLIERS	12 Months Ended
	Dec. 31, 2020
Dependence On Key Suppliers
DEPENDENCE ON KEY SUPPLIERS	The Company participates in the home connectivity 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. In 2020, the Company had two suppliers that provided 99% of the Company's purchased inventory. In 2019, the Company had one supplier that provided 96.3% of the Company's purchased inventory.

16. RETIREMENT PLAN

16. RETIREMENT PLAN	12 Months Ended
	Dec. 31, 2020
Retirement Benefits [Abstract]
RETIREMENT PLAN	The Company has a 401(k) retirement savings plan for employees. Under the plan, the Company matches 25% of an employee's contribution, up to a maximum of $350 per employee per year. Company matching contributions charged to expense is $10,575 and $5,405 in 2020 and 2019, respectively.

17. BANK CREDIT LINE

17. BANK CREDIT LINE	12 Months Ended
	Dec. 31, 2020
Line of Credit Facility [Abstract]
BANK CREDIT LINE	Bank Credit Line 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 shall have the right to terminate the Financing Agreement at any time by giving the Company sixty days’ prior written notice. On March 25, 2014, the Company entered into an amendment to the Financing Agreement (the “Amendment”) with an effective date of January 1, 2013. The 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 Amendment increased the size of the revolving credit line to $2.5 million effective as of date of the amendment. On September 1, 2016, the Company entered into a fourth amendment to the Financing Agreement. The Amendment increased the size of the revolving credit line to $3.0 million effective with the date of this amendment. On November 2, 2018, the Company entered into a fifth amendment to the Financing Agreement. The 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 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 December 31, 2020, the Company was in compliance with both its working capital and tangible net worth covenants. At December 31, 2020, the Company’s tangible net worth was approximately $6.3 million, while the Company’s working capital was approximately $5.9 million. Loan availability is based on certain eligible receivables. Loan availability was approximately $1.6 million as of December 31, 2020. Government Loans On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted to provide financial aid to family and businesses impacted by the COVID-19 pandemic. The Company participated in the CARES Act, and on April 15, 2020, the Company entered into a note payable with Primary Bank, a bank under the Small Business Administration (“SBA”), Paycheck Protection Program (“PPP”) in the amount of $583.3 thousand. This note payable matures on March 15, 2022 with a fixed interest rate of 1% per annum with interest deferred for six months. The PPP loan has an initial term of two years, is unsecured and guaranteed by the SBA. Under the terms of the PPP note, the Company was able to apply for forgiveness of the amount due on the PPP loan. The Company The Company used the proceeds from the PPP loan for qualifying expenses as defined in the PPP. On March 11, 2020, Minim entered into a note payable with Primary Bank and received $544.5 thousand under the PPP. This note payable matures on March 11, 2022 with a fixed interest rate of 1% per annum with interest deferred for six months. The PPP loan has an initial term of two years, is unsecured and guaranteed by the SBA. Under the terms of the PPP note, the Company was able to apply for forgiveness of the amount due on the PPP loan. The Company The Company used the proceeds from the PPP loan for qualifying expenses as defined in the PPP. Minim recorded the loan liability related to this US government grant in its historical accounts as of October 9, 2020. In accordance with the accounting of a common control transaction (Note 3), the Company recorded a loan liability of $544.5 thousand, which was Minim’s historical carrying amount as of October 9, 2020. For the year end December 31, 2020, the Company has recorded $65,225 of the PPP loans in current maturities of long-term debt and $15,245 in long-term debt in the consolidated balance sheet.

18. PRIVATE PLACEMENTS

18. PRIVATE PLACEMENTS	12 Months Ended
	Dec. 31, 2020
Private Placements
Private Placements	On May 26, 2020, the Company entered into a Stock Purchase Agreement (the “2020 Stock Purchase Agreement”) with certain accredited investors, including certain independent investment funds, members of the Company’s management and its Board of Directors, and certain co-founders of the Company, in a private placement pursuant to which the Company sold an aggregate of 2,237,103 shares of common stock, par value $0.01 per share, at a purchase price of $1.52 per share. In connection with the Stock Purchase Agreement, the Company incurred $237,030 of expenses which has been recorded as a reduction of additional paid in capital as presented in the condensed consolidated statements of stockholders’ equity. The net proceeds to the Company at the closing of the private placement were $3.16 million. On October 9, 2020, one of the accredited investors under the 2020 Stock Purchase Agreement sold his shares originally purchased under the Stock Purchase Agreement in a private sale transaction. The private sale of the investor’s shares constituted a short swing transaction, whereby, and as defined by Section 16(b) of the Securities Exchange Act of 1934 (the “Exchange Act”), the investor was deemed a corporate insider who sold the shares within six months after the purchase of those shares. As required by the Exchange Act, the investor was required to disgorge $196,000 in profits from the private sale. The Company received and recorded the funds from disgorgement to additional paid in capital. On May 3, 2019, the Company entered into a Stock Purchase Agreement (the “2019 Stock Purchase Agreement”) with certain accredited investors, including certain independent investment funds, members of the Company’s management and its Board of Directors, and certain co-founders of the Company, in a private placement pursuant to which the Company sold an aggregate of 4,545,455 shares of common stock, par value $0.01 per share, at a purchase price of $1.10 per share. In connection with the 2019 Stock Purchase Agreement, the Company incurred $57,391 of expenses which has been recorded as a reduction of additional paid in capital as presented in the condensed consolidated statements of stockholders’ equity. The net proceeds to the Company at the closing of the private placement were $4.94 million.

19. RELATED PARTY TRANSACTIONS

19. RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2020
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	On July 25, 2019, the Company entered into a Master Partnership Agreement with Minim Inc. (“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. Minimum monthly payments under this agreement increased to $15,000 in July 2020. Jeremy Hitchcock, who serves as Executive Chairman of the Company’s Board of Directors, is the co-founder, Chief Executive Officer and, prior to the Minim Merger, was a stockholder of Minim. During the fiscal years ended December 31, 2020 and 2019, $90 thousand and $0 payments were made by the Company to Minim under the Partnership Agreement. The Company recorded $105 thousand and $0 in expenses for the years ended December 31, 2020 and 2019, respectively. The Company sold $15 thousand of product to Minim for the year ended December 31, 2020. No services were provided in 2019. As of December 31, 2020, and 2019, no amounts were due from or to the Company under the Partnership Agreement. As of the Minim Merger on December 4, 2020, the Partnership Agreement is not considered a related party transaction, and any transactions between the Company and Minim are considered intercompany transactions, which are eliminated in the consolidation of these financial statements. The Company’s operating lease for its Manchester, NH office as described in Note 10 is leased from an affiliate entity that is owned by the Company’s Executive Chairman of the Board of Directors. The Company made payments of $2,770 from October 9, 2020 to December 31, 2020 under this operating lease. On November 30, 2020, the Chief Executive Officer of the Company fully paid $264,000 to Minim for a promissory note related to the exercise of Minim stock options in December 2019 (Note 3). On November 20, 2020, Minim agreed to repurchase 33,809 shares of Minim common stock for $14,860 from a stockholder who is an immediate family member to the Company’s executive chairman of the Board and subsequent to the Minim Merger became a member of the Company’s Board of Directors. The $14,860 remains unpaid as of December 31, 2020 (Note 3).

20. SUBSEQUENT EVENTS

20. SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2020
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	On February 4, 2021, the Financing Agreement with Rosenthal & Rosenthal, Inc. was amended to increase the credit facility from $4.0 million to $5.0 million. On March 12, 2021, the Company terminated its Financing Agreement with Rosenthal & Rosenthal, Inc. and entered into a new loan and security agreement with Silicon Valley Bank (“SVB Loan Agreement”). The SVB Loan Agreement provides for a revolving facility up to a principal amount of $12.0 million. The SVB Loan Agreement matures, and all outstanding amounts become due and payable on March 12, 2023. The SVB Loan Agreement is secured by substantially all of the Company’s assets but excludes the Company’s intellectual property. Loans under the credit facility bear interest at a rate per annum equal to (i) at all times when a streamline period is in effect, the greater of (a) one-half of one percent (0.50%) above the Prime Rate or (b) three and three-quarters of one percent (3.75%) and (ii) at all times when a streamline period is not effect, the greater of (a) one percent (1.0%) above the Prime Rate and (b) four and one-quarter of one percent (4.25%). Interest is payable monthly. The availability of borrowings under the SVB Loan Agreement is subject to certain conditions and requirements, and the borrowing base amount is up to (a) 85% of eligible accounts receivable balances plus (b) the least of (i) 60% of eligible inventory, (ii) 85% of net orderly liquidation value, and (iii) $4.8 million. In conjunction with the SVB Loan Agreement, the Company secured a $1.0 million commercial credit card line. Other than above, management of the Company has reviewed subsequent events from December 31, 2020 through the date of filing and has concluded that there were no other subsequent events requiring adjustment to or disclosure in these consolidated financial statements.

2. SUMMARY OF SIGNIFICANT ACC_2

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2020
Accounting Policies [Abstract]
Basis of Presentation and Use of Estimates	The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). All significant intercompany balances and transactions have been eliminated in the consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation. None of the reclassifications impacted the consolidated statement of operations for the year ended December 31, 2019. The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expense during the reporting period. Actual results may differ from those estimates. Significant estimates made by the Company include: 1) allowance for doubtful accounts for accounts receivable (collectability); 2) contract liabilities (sales returns, and other variable considerations); 3) asset valuation allowance for deferred income tax assets; 4) write-downs of inventory for slow-moving and obsolete items, and market valuations; 5) stock based compensation; and 6) estimated life of intangible assets and certification costs.
Cash and Cash Equivalents	All highly liquid investments with original maturities of less than 90 days from the date of purchase are classified as cash equivalents. Cash equivalents consist exclusively of money market funds. The Company has deposits at a limited number of high quality financial institutions with federally insured limits. Balances of cash and cash equivalents at these institutions can be in excess of the insured limits. The Company has not experienced losses on these accounts.
Restricted Cash	All cash held by the Company that is not immediately available for working capital purposes or has restrictions on use is reported as Restricted cash in the accompanying consolidated balance sheets. Restricted cash balance at December 31, 2020 and 2019 was $800,000 and $150,000, respectively, and consists of a letter of credit to support a bond on tariffs.
Allowance for Doubtful Accounts	The Company maintains an allowance for doubtful accounts for probable credit losses resulting from the inability of its customers to make required payments. The Company records a specific allowance and revises the expected loss based on an analysis of individual past-due balances. Additionally, based on historical write-offs and the Company’s collection experience, the Company records an additional allowance based on a percentage of outstanding receivables. The Company performs credit evaluations of its customers’ financial condition. These evaluations require judgment and are based on a variety of factors including, but not limited to, current economic trends, payment history and a financial review of the customer. Actual collection losses may differ from management’s estimates, and such differences could be material to the Company's financial position and results of operations.
Inventories	Inventories are stated at the lower of cost, determined using the first-in, first-out method, or net realizable value. Consigned inventory is held at third-party locations. The Company regularly monitors inventory quantities on hand and records write-downs for excess and obsolete inventories based on the Company’s estimate of demand for its products, potential obsolescence of technology, product life cycles and whether pricing trends or forecasts indicate that the carrying value of inventory exceeds its estimated selling price. These factors are impacted by market and economic conditions, technology changes and new product introductions and require significant estimates that may include elements that are uncertain. Actual demand may differ from forecasted demand and may have a material effect on gross profit. If inventory is written down, a new cost basis is established that cannot be increased in future periods. Shipments from suppliers before the Company receives them are recorded as in-transit inventory when title and the significant risks and rewards of ownership have passed to the Company. At December 31, 2020 and 2019, the Company had approximately $6,243,000 and $1,930,000 of in-transit inventory. The Company retains title to the inventory until purchased by the third-party. Consigned inventory, consisting of finished goods, was approximately $2,293,000 and $1,841,400 at December 31, 2020 and 2019, respectively.
Equipment	Equipment is stated at cost, less accumulated depreciation. Depreciation of equipment is provided using the straight-line method over the estimated useful lives of the assets.
Goodwill, Intangible Assets, and Impairment of Long-Lived Assets	Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Intangible assets that are not considered to have a definite useful life are amortized over their useful lives, which are generally nine years or less. Each period, the Company evaluates the carrying amounts of goodwill and intangible assets for recoverability and reviews the estimated remaining useful lives of purchased intangible assets and whether events or changes in circumstances warrant a revision to the remaining periods of amortization. The Company performs a qualitative assessment for an impairment prior to necessitating a quantitative impairment test. If the Company determines in the qualitative assessment that it is more likely than not that the fair value of the asset is less than its carrying value, a quantitative test is then performed. Otherwise, no further testing is required. Using the qualitative method, the Company did not identify any impairment for the year ended December 31, 2020. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. There were no events or changes in circumstances that indicate the carrying amount of long-lived assets may not be recoverable from their undiscounted cash flows. Consequently, the Company did not record any impairment to its long-lived assets during the year ended December 31, 2020. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset or asset group to undiscounted future net cash flows expected to be generated by the asset or asset group. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds their fair value. Assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell. The Company capitalizes certain implementation costs related to its cloud-based enterprise resourcing planning (“ERP”) system. Costs incurred during the application development stage are capitalized. Costs incurred in the preliminary stages of development are expensed as incurred. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable that the expenditures will result in additional functionality. Capitalized implementation costs are amortized on a straight-line basis over its estimated useful life, which is approximately 30 months, representing the remaining contractual term. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. The Company capitalized approximately $230 thousand of costs related to the ERP implementation for the period ended December 31, 2020. In 2020, the Company acquired a web domain for approximately $86 thousand and is amortizing this cost over 5 years. These capitalized costs are included in intangible assets within the consolidated balance sheet.
Other Assets	Other assets are stated at cost, less accumulated amortization, and primarily include certain certification costs. Certain certification costs incurred that are necessary to market and sell products are capitalized and reported as “other assets” in the accompanying consolidated balance sheets when the costs are measurable, significant, and relating to products that are projected to generate revenue beyond twelve months. These costs are amortized over an 18-month period, beginning when the related products are available to be sold. Total certification costs capitalized during the year ended December 31, 2020 were $460,577, with related amortization expense of $53,333 in 2020. Total certification costs capitalized during the year ended December 31, 2019 were $310,000, with related amortization expense of $128,385 in 2019. As of December 31, 2020 and 2019, the Company had ending balances of $754,577 and $347,333, respectively.
Income Taxes	Deferred income taxes are provided on the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and on net operating loss and tax credit carry forwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided for that portion of deferred tax assets not expected to be realized.
Sales Tax	The Company recorded a sales tax accrual in 2017 after the Company became aware that a state sales tax liability was both probable and estimable as of December 31, 2017. The state sales tax liability stems from the Company’s ‘Fulfilled By Amazon’ sales agreement which allows Amazon to warehouse the Company’s inventory throughout a number of states. As a result, the Company recorded an expense of approximately $831 thousand in during the year ended December 31, 2017. During the year 2018, the Company settled its obligations with most of the states and re-assessed its liability which resulted in a reduction of approximately $203 thousand in the sales tax liability. As of December 31, 2019, approximately $51 thousand of the original state sales tax liability remains and $98 thousand relates to sales tax that has been collected and not yet remitted to the respective states. As of December 31, 2020, approximately $50 thousand of the original state sales tax liability remains and $46 thousand relates to sales tax that has been collected and not yet remitted to the respective states.
Earnings (Loss) Per Common Share	Basic earnings (loss) per share is calculated by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock, except for periods with a loss from operations. Diluted earnings (loss) per share reflects additional shares of common stock 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. Diluted earnings (loss) per common share for the years ended December 31, 2020 and 2019 exclude the effects of 1,436,061 and 467,641 common share equivalents, respectively, since such inclusion would be anti-dilutive. The common share equivalents consist of shares of common stock issuable upon exercise of outstanding stock options.
Revenue Recognition	The Company primarily sells hardware products to its customers. The hardware products include cable modems and gateways, mobile broadband modems, wireless routers, MoCA adapters and mesh home networking devices. The Company also sells software, including the Minim subscription service that enables and secures a better connected home. The Company derives its net sales primarily from the sales of hardware products to computer peripherals retailers, computer product distributors, OEMs, and direct to consumers and other channel partners via the Internet. The Company accounts for point-of-sale taxes on a net basis. In addition, the Company earns revenues from its software subscription services of the Minim AI-driven smart home WiFi management and security platform. 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 on hardware products substantively transfers to the customer upon shipment or delivery, depending on the delivery terms of the purchase agreement. The Company sells software as a subscription. The subscription software agreements are offered over a defined contract period, generally one year, and are sold to Internet service providers, who then promote the services to their subscribers. These services are available as an on-demand application over the defined term. The agreements include service offerings, which deliver applications and technologies via cloud-based deployment models that the Company develops functionality for, provides unspecified updates and enhancements for, host, manage, upgrade and support and that the customers access by entering into solution agreements for a stated period, generally a one-year term. The monthly fees charged to the customer are based on the number of subscribers utilizing the services each month, and the revenue recognized generally corresponds to the monthly billing amounts as the services are delivered. Other considerations of Topic 606 include the following: ● Warranties ● Returned Goods ● Price Protection ● Volume Rebates and Promotion Programs Accounts receivable, net: December 31, 2020 December 31, 2019 Gross accounts receivable $ 9,376,937 $ 4,346,810 Allowance for doubtful accounts (173,603 ) (276,234 ) Total accounts receivable, net $ 9,203,334 $ 4,070,576 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 the years ended December 31: 2020 2019 Retailers $ 41,553,479 $ 35,164,563 Distributors 4,404,936 1,309,875 Other 2,030,134 1,140,018 Total $ 47,988,549 $ 37,614,456 Disaggregated revenue by product for the years ended December 31: 2020 2019 Cable Modems & Gateways $ 44,473,601 $ 33,810,410 Other 3,514,948 3,804,046 Total $ 47,988,549 $ 37,614,456 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. Any agreements with customers that could impact revenue such as rebates or promotions are recognized in the period of agreement. The Company recorded $120,949 of revenue related to software as a subscription for the year ended December 31, 2020. This software-related revenue is attributable to the Minim Merger, whose financial results are presented from October 9, 2020 to December 31, 2020 (Note 3), and is represented in the above disaggregated revenue by distribution channel and by product segment presentations under “other”.
Fair Value of Financial Instruments	The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: ● Level 1 ● Level 2 ● Level 3 Financial instruments consist of cash and cash equivalents, accounts receivable, bank debt, and accounts payable. Due to the short-term nature and payment terms associated with these instruments, their carrying amounts approximate fair value.
Stock-Based Compensation	Compensation cost for awards is generally recognized over the required service period based on the estimated fair value of the awards on their grant date. Fair value is determined using the Black-Scholes option-pricing model wherein the discount rate is based on published daily treasury interest rates for zero-coupon bonds available from the US Treasury. Volatility is based on the historical volatility over a period that is commensurate with the expected life of the option granted.
Advertising Costs	Advertising costs are expensed as incurred and reported in selling expense in the accompanying consolidated statements of operations, and include costs of advertising, production, trade shows, and other activities designed to enhance demand for the Company's products. The Company reported advertising costs of approximately $1.72 million in 2020 and $2.73 million in 2019.
Foreign Currencies	The Company generates a portion of its revenues in markets outside North America principally in transactions denominated in foreign currencies, which exposes the Company to risks of foreign currency fluctuations. Foreign currency transaction gains and losses are reflected in operations and were not material for any period presented. The Company does not use derivative financial instruments for hedging purposes.
Warranty Costs	The Company provides for the estimated costs that may be incurred under its standard warranty obligations, based on actual historical repair costs. The reserve for the provision for warranty costs was $47,569 and $37,718 at December 31, 2020 and 2019, respectively.
Shipping and Freight Costs	The Company records the expense associated with customer-delivery shipping and freight costs in selling expense. The Company reported shipping and freight costs of $426.1 thousand in 2020 and $301.3 thousand in 2019.
Recently Issued Accounting Pronouncements	The Company did not adopt any new accounting standard in 2020 that were significant to the Company. (s) 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." ASU 2016-13 requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected, which includes the Company’s accounts receivable. This ASU is effective for the Company for reporting periods beginning after December 15, 2022. The Company is currently assessing the potential impact that the adoption of this ASU will have on our consolidated financial statements. With the exception of the new standard discussed above, there have been no other new accounting pronouncements that have significance, or potential significance, to the Company's financial position, results of operations and cash flows.

2. SUMMARY OF SIGNIFICANT ACC_3

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2020
Accounting Policies [Abstract]
Reclassification of accounts receivable allowances to accrued other expenses	December 31, 2020 December 31, 2019 Gross accounts receivable $ 9,376,937 $ 4,346,810 Allowance for doubtful accounts (173,603 ) (276,234 ) Total accounts receivable, net $ 9,203,334 $ 4,070,576
Disaggregation of revenue	Disaggregated revenue by distribution channel for the years ended December 31: 2020 2019 Retailers $ 41,553,479 $ 35,164,563 Distributors 4,404,936 1,309,875 Other 2,030,134 1,140,018 Total $ 47,988,549 $ 37,614,456 Disaggregated revenue by product for the years ended December 31: 2020 2019 Cable Modems & Gateways $ 44,473,601 $ 33,810,410 Other 3,514,948 3,804,046 Total $ 47,988,549 $ 37,614,456

3. ACQUISITION OF MINIM, INC. (

3. ACQUISITION OF MINIM, INC. (Tables)	12 Months Ended
	Dec. 31, 2020
Business Combinations [Abstract]
Assets acquired and liabilities assumed	Assets acquired Cash and cash equivalents $ 501,845 Accounts receivable, net 60,301 Inventories 192,688 Total current assets acquired 754,834 Equipment, net 4,550 Operating lease right-of-use asset, net 24,437 Goodwill 58,872 Intangible assets, net 97,122 Other assets 45,810 Total assets acquired $ 985,625 Liabilities assumed Accounts Payables $ 46,392 Current maturities of long-term debt 554,500 Current maturities of operating lease liabilities 24,437 Accrued other expenses 97,679 Total current liabilities $ 723,008 Net Assets $ 262,617

5. INVENTORIES (Tables)

5. INVENTORIES (Tables)	12 Months Ended
	Dec. 31, 2020
Inventory Disclosure [Abstract]
Inventories	2020 2019 Materials $ 1,238,332 $ 911,054 Work in process 84,203 10,284 Finished goods 15,182,305 6,519,012 Total $ 16,504,840 $ 7,440,350

6. EQUIPMENT (Tables)

6. EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Equipment	2020 2019 Estimated Useful lives in years Computer hardware and software $ 398,520 $ 308,767 3 Machinery and equipment 426,885 316,945 5 Molds, tools and dies 760,563 651,063 5 Office furniture and fixtures 64,128 50,948 5 1,650,096 1,327,722 Accumulated depreciation (1,195,030 ) (1,024,623 ) Equipment, net $ 455,066 $ 303,099 Depreciation expense for the year ended $ 157,107 $ 132,632

8. INTANGIBLE ASSETS (Tables)

8. INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets	Est. Useful Life (yrs) Gross Carrying Amount Accumulated Amortization Net Capitalized internal use software 2.5 $ 230,106 $ (20,431 ) $ 209,675 Customer relationships 9 122,435 (28,768 ) 93,667 Acquired web domain 5 86,732 (1,445 ) 85,287 Totals $ 439,273 $ (50,644 ) $ 388,629
Annual amortization expense	Years Ended December 31, 2021 $ 125,931 2022 123,147 2023 53,762 2024 31,092 2025 29,609 Thereafter 25,088 Total $ 388,629

9. ACCRUED OTHER EXPENSES (Tabl

9. ACCRUED OTHER EXPENSES (Tables)	12 Months Ended
	Dec. 31, 2020
Accrued Other Expenses
Accrued other expenses	December 31, 2020 December 31, 2019 Inventory purchases $ 1,458,850 $ - Payroll and related benefit costs 853,402 151,473 Professional fees 618,308 105,493 Royalty costs 1,906,439 1,125,000 Contract liabilities* 1,559,847 901,196 Sales and use tax 183,264 148,836 Other 884,953 234,473 Total accrued other expenses $ 7,465,063 $ 2,666,471 * Contract liabilities include sales allowances given to customers. A related inventory contract asset stemming from the sales return reserve of $366 thousand and $376 thousand is included within inventories on the accompanying consolidated balance sheets as of December 31, 2020 and 2019, respectively.

10. COMMITMENTS AND CONTINGEN_2

10. COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Lease maturity	December 31, 2020 Maturity of Lease Liabilities Lease Payments 2021 $ 70,865 2022 22,794 Less: Imputed interest (5,773 ) Present value of operating lease liabilities $ 87,886 Balance Sheet Classification Current maturities of operating lease liabilities $ 65,651 Operating lease liabilities, less current maturities 22,235 Total operating lease liabilities $ 87,886 Other Information Weighted-average remaining lease term for operating leases 1.3 Weighted-average discount rate for operating leases 9.0 %
Supplemental cash flow information related to operating leases	Year Ended December 31, 2020 2019 Operating cash flow information: Amounts included in measurement of lease liabilities $ 143,761 $ 324,346 Non-cash activities Right-of-use assets obtained in exchange for lease obligations $ 120,635 $ 395,565
Minimum annual royalty payments	Years ending December 31, 2021 $ 6,350,000 2022 6,600,000 2023 6,850,000 2024 7,100,000 2025 7,100,000 Total $ 34,000,000

11. STOCK OPTION PLANS (Tables)

11. STOCK OPTION PLANS (Tables)	12 Months Ended
	Dec. 31, 2020
Fair value assumptions	2020 2019 Assumptions: Expected life 3.24 (yrs) - 6.25 (yrs) 2.75 (yrs) - 3.5 (yrs) Expected volatility 37% - 114.41% 77.74% - 87.40% Risk-free interest rate 0.19% - 1.67% 1.34% - 2.69% Expected dividend yield 0.00% 0.00%
2019 Stock Option Plan
Plan activity	Number of shares Weighted average exercise price Weighted Average Remaining Contractual Life Outstanding as of January 1, 2019 –– $ –– –– Granted 820,000 0.83 Exercised –– –– Outstanding as of December 31, 2019 820,000 $ 0.83 2.68 Granted 277,037 2.02 Assumed with Minim Merger 1,432,018 0.61 Exercised (276,856 ) 0.82 Expired/Forfeited (205,000 ) 0.84 Outstanding as of December 31, 2020 2,047,199 $ 0.84 3.51 Options exercisable at December 31, 2020 682,770 $ 0.67 2.79
2019 Stock Option Plan | Directors Plan
Plan activity	Number of shares Weighted average exercise price Weighted Average Remaining Contractual Life Outstanding as of January 1, 2019 –– $ –– –– Granted 45,000 0.97 Exercised –– –– Outstanding as of December 31, 2019 45,000 $ 0.97 2.50 Granted 297,963 2.26 Assumed with Minim Merger 225,981 0.62 Exercised (56,500 ) 1.51 Expired/Forfeited (15,000 ) 1.06 Outstanding as of December 31, 2020 487,354 $ 1.52 3.27 Options exercisable at December 31, 2020 282,124 $ 0.9958 2.32
2009 Stock Option Plan
Plan activity	Number of shares Weighted average exercise price Weighted Average Remaining Contractual Life Outstanding as of January 1, 2019 1,569,603 1.41 2.13 Granted 90,000 0.95 Exercised (199,792 ) 0.24 Expired/Forfeited (150,000 ) --- Outstanding as of December 31, 2019 1,309,811 1.45 1.28 Granted –– –– Exercised (655,001 ) 1.01 Expired/Forfeited (236,200 ) 1.50 Outstanding as of December 31, 2020 418,610 $ 2.06 0.58 Options exercisable at December 31, 2020 418,610 $ 2.06 0.58
2009 Stock Option Plan | Directors Plan
Plan activity	Number of shares Weighted average exercise price Weighted Average Remaining Contractual Life Outstanding as of January 1, 2019 342,500 1.71 2.52 Granted 97,500 1.09 Exercised (60,000 ) 0.23 Expired/Forfeited (80,000 ) Outstanding as of December 31, 2019 300,000 1.63 2.00 Granted –– –– Exercised (135,000 ) 1.44 Expired/Forfeited (30,000 ) 0.88 Outstanding as of December 31, 2020 135,000 $ 1.98 0.82 Options exercisable at December 31, 2020 135,000 $ 1.98 0.82

12. INCOME TAXES (Tables)

12. INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Schedule of income taxes	Current Deferred Total Year Ended December 31, 2019: U.S. federal $ –– $ –– $ –– State and local 10,792 –– 10,792 Foreign 14,073 –– 14,073 $ 24,865 $ –– $ 24,865 Year Ended December 31, 2020: U.S. federal $ –– $ –– $ –– State and local 11,752 –– 11,752 Foreign 14,964 –– 14,964 $ 26,716 $ –– $ 26,716
Schedule of income tax reconciliation	2019 2020 Computed "expected" US benefit at Federal statutory rate $ (685,652 ) $ (807,799 ) Change resulting from: State and local income taxes, net of federal income tax benefit (102,770 ) (145,891 ) Valuation allowance 411,810 (121,000 ) Non––deductible items 87,998 394,236 Expired Federal net operating loss 218,376 1,043,171 Federal and state rate changes 95,103 (113,340 ) Non-taxable PPP loan forgiveness –– (222,661 ) Income tax expense $ 24,865 $ 26,716
Schedule of deferred tax assets	2019 2020 Deferred income tax assets: Inventories $ 145,884 $ 241,874 Accounts receivable 253,559 445,392 Accrued expenses 80,068 116,254 Net operating loss and tax credit carry forwards 13,276,081 15,243,998 Plant and equipment 6,014 39,521 Stock compensation 123,841 448,375 Lease accounting 26,515 248 Other – interest expense 12,385 24,009 Total deferred income tax assets 13,924,347 16,559,671 Valuation allowance (13,924,347 ) (16,559,671 ) Net deferred tax assets $ –– $ ––

14. SEGMENT AND GEOGRAPHIC IN_2

14. SEGMENT AND GEOGRAPHIC INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2020
Segment Reporting [Abstract]
Company's net sales by geographic region	FY 2020 Percent FY 2019 Percent North America $ 47,116,632 98.2 % $ 36,741,262 97.7 % Outside North America 871,917 1.8 % 873,194 2.3 % Total $ 47,988,549 100.0 % $ 37,614,456 100.0 %

2. SUMMARY OF SIGNIFICANT ACC_4

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Gross accounts receivable	$ 9,376,937	$ 4,346,810
Allowance for doubtful accounts	(173,603)	(276,234)
Total accounts receivable, net	$ 9,203,334	$ 4,070,576

2. SUMMARY OF SIGNIFICANT ACC_5

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Revenues	$ 47,988,549	$ 37,614,456
Cable Modems & gateways
Revenues	44,473,601	33,810,410
Other
Revenues	3,514,948	3,804,046
Retailers
Revenues	41,553,479	35,164,563
Distributors
Revenues	4,404,936	1,309,875
Other
Revenues	$ 2,030,134	$ 1,140,018

3. ACQUISITION OF MINIM, INC._2

3. ACQUISITION OF MINIM, INC. (Details)	Dec. 31, 2020USD ($)
Assets acquired
Cash equivalents	$ 501,845
Accounts receivable, net	60,301
Inventories	192,688
Total current assets acquired	754,834
Equipment, net	4,550
Operating lease right-of-use asset, net	24,437
Goodwill	58,872
Intangible assets, net	97,122
Other assets	45,810
Total assets acquired	985,625
Liabilities assumed
Accounts payables	46,392
Current maturities of long-term debt	554,500
Current maturities of operating lease liabilities	24,437
Accrued other expenses	97,679
Total current liabilities	723,008
Net Assets	$ 262,617

5. INVENTORIES (Details)

5. INVENTORIES (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Materials	$ 1,238,332	$ 911,054
Work in process	84,203	10,284
Finished goods	15,182,305	6,519,012
Total inventories	$ 16,504,840	$ 7,440,350

5. INVENTORIES (Details Narrati

5. INVENTORIES (Details Narrative) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Finished goods held by customer	$ 2,293,017	$ 1,841,400

6. EQUIPMENT (Details)

6. EQUIPMENT (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Equipment	$ 1,650,096	$ 1,327,722
Accumulated depreciation	(1,195,030)	(1,024,623)
Equipment, net	455,066	303,099
Depreciation expense for year ended	157,107	132,632
Computer hardware and software
Equipment	$ 398,520	308,767
Estimated useful lives	3 years
Machinery and equipment
Equipment	$ 426,885	316,945
Estimated useful lives	5 years
Molds, tools and dies
Equipment	$ 760,563	651,063
Estimated useful lives	5 years
Office furniture and fixtures
Equipment	$ 64,128	$ 50,948
Estimated useful lives	5 years

8. INTANGIBLE ASSETS (Details)

8. INTANGIBLE ASSETS (Details)	12 Months Ended
	Dec. 31, 2020USD ($)
Gross Carrying Amount	$ 439,273
Accumulated Amortization	(50,644)
Net	388,629
Capitalized internal use software
Gross Carrying Amount	230,106
Accumulated Amortization	(20,431)
Net	$ 209,675
Estimated useful life	2 years 6 months
Customer relationships
Gross Carrying Amount	$ 122,435
Accumulated Amortization	(28,768)
Net	$ 93,667
Estimated useful life	9 years
Acquired web domain
Gross Carrying Amount	$ 86,732
Accumulated Amortization	(1,445)
Net	$ 85,287
Estimated useful life	5 years

8. INTANGIBLE ASSETS (Details 1

8. INTANGIBLE ASSETS (Details 1)	Dec. 31, 2020USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2021	$ 125,931
2022	123,147
2023	53,762
2024	31,092
2025	29,609
Thereafter	25,088
Total	$ 388,629

9. ACCRUED OTHER EXPENSES (Deta

9. ACCRUED OTHER EXPENSES (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Accrued Other Expenses
Inventory purchases	$ 1,458,850	$ 0
Payroll and related benefit costs	853,402	151,473
Professional fees	618,308	105,493
Royalty costs	1,906,439	1,125,000
Sales allowances	1,559,847	901,196
Sales and use tax	183,264	148,836
Other	884,953	234,473
Total accrued other expenses	$ 7,465,063	$ 2,666,471

10. COMMITMENTS AND CONTINGEN_3

10. COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
2021	$ 70,865
2022	22,794
Less: Imputed interest	(5,773)
Present value of operating lease liabilities	87,886
Current maturities of operating lease liabilities	65,651	$ 102,716
Operating lease liabilities, less current maturities	$ 22,235	$ 0
Weighted-average remaining lease term for operating leases	1 year 3 months 18 days
Weighted-average discount rate for operating leases	9.00%

10. COMMITMENTS AND CONTINGEN_4

10. COMMITMENTS AND CONTINGENCIES (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Amounts included in measurement of lease liabilities	$ 143,761	$ 324,346
Right-of-use assets obtained in exchange for lease obligations	$ 120,635	$ 395,565

10. COMMITMENTS AND CONTINGEN_5

10. COMMITMENTS AND CONTINGENCIES (Details 2)	Dec. 31, 2020USD ($)
Future royalty payments for the year ending December 31,
2021	$ 6,350,000
2022	6,600,000
2023	6,850,000
2024	7,100,000
2025	7,100,000
Total	$ 34,000,000

11. STOCK OPTION PLANS (Details

11. STOCK OPTION PLANS (Details) - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
2019 Stock Option Plan
Number of shares outstanding, beginning	820,000	0
Granted	277,037	820,000
Assumed with Minim Merger	1,432,018
Exercised	(276,856)	0
Expired/Forfeited	(205,000)	0
Number of shares outstanding, ending	2,047,199	820,000
Number of shares exercisable	682,770	0
Weighted average exercise price, beginning	$ 0.83	$ 0
Granted	2.02	0.83
Assumed with Minim Merger	.61
Exercised	.82	0
Expired	0.84	0
Weighted average exercise price, ending	.84	0.83
Weighted average exercise price exercisable	$ .67	$ 0
Weighted average remaining contractual life outstanding	3 years 6 months 4 days	2 years 8 months 5 days
Weighted average remaining contractual life exercisable	2 years 9 months 15 days
2019 Director Stock Option Plan
Number of shares outstanding, beginning	45,000	0
Granted	297,963	45,000
Assumed with Minim Merger	225,891
Exercised	(56,500)	0
Expired/Forfeited	(15,000)	0
Number of shares outstanding, ending	497,354	45,000
Number of shares exercisable	282,124
Weighted average exercise price, beginning	$ .97	$ .00
Granted	2.26	.97
Assumed with Minim Merger	.62
Exercised	1.51	.00
Expired	1.06	.00
Weighted average exercise price, ending	1.52	$ .97
Weighted average exercise price exercisable	$ 0.95
Weighted average remaining contractual life outstanding	3 years 3 months 7 days	2 years 6 months
Weighted average remaining contractual life exercisable	2 years 3 months 25 days
2009 Stock Option Plan
Number of shares outstanding, beginning	1,309,811	1,569,603
Granted	0	90,000
Exercised	(655,001)	(199,792)
Expired/Forfeited	(236,200)	(150,000)
Number of shares outstanding, ending	418,610	1,309,811
Number of shares exercisable	418,610	859,936
Weighted average exercise price, beginning	$ 1.45	$ 1.41
Granted	.00	0.95
Exercised	1.01	0.24
Expired	1.50	0
Weighted average exercise price, ending	2.06	1.45
Weighted average exercise price exercisable	$ 2.06	$ 1.22
Weighted average remaining contractual life outstanding	6 months 29 days	1 year 3 months 11 days
Weighted average remaining contractual life exercisable	6 months 29 days
2009 Director Stock Option Plan
Number of shares outstanding, beginning	300,000	342,500
Granted	0	97,500
Exercised	(135,000)	(60,000)
Expired/Forfeited	(30,000)	(80,000)
Number of shares outstanding, ending	135,000	300,000
Number of shares exercisable	135,000
Weighted average exercise price, beginning	$ 1.63	$ 1.71
Granted	.00	1.09
Exercised	1.44	.23
Expired	.88	.00
Weighted average exercise price, ending	1.98	$ 1.63
Weighted average exercise price exercisable	$ 1.98
Weighted average remaining contractual life outstanding	9 months 25 days	2 years
Weighted average remaining contractual life exercisable	9 months 25 days

11. STOCK OPTION PLANS (Detai_2

11. STOCK OPTION PLANS (Details 1)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Expected dividend yield	0.00%	0.00%
Minimum
Expected life	3 years 2 months 26 days	2 years 9 months
Expected volatility	37.00%	77.74%
Risk-free interest rate	0.19%	1.34%
Maximum
Expected life	6 years 3 months	3 years 6 months
Expected volatility	114.41%	87.40%
Risk-free interest rate	1.67%	2.69%

12. INCOME TAXES (Details)

12. INCOME TAXES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Current tax expense
US Federal	$ 0	$ 0
State and local	11,752	10,792
Foreign	14,964	14,073
Total current tax expense	26,716	24,865
Deferred tax expense (benefit)
US Federal	0	0
State and local	0	0
Foreign	0	0
Total deferred tax expense (benefit)	0	0
Total tax expense
US federal	0	0
State and local	11,752	10,792
Foreign	14,964	14,073
Total	$ 26,716	$ 24,865

12. INCOME TAXES (Details 1)

12. INCOME TAXES (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Computed "expected" US tax (benefit) at Federal statutory rate	$ (807,799)	$ (685,652)
Change resulting from:
State and local income taxes, net of federal income tax benefit	(145,891)	(102,770)
Valuation allowance	(121,000)	411,810
Non-deductible items	394,236	87,998
Expired Federal capital loss	1,043,171	218,376
Federal and state rate change	(113,340)	95,103
Non-taxable PPP loan forgiveness	(222,661)	0
Income tax expense	$ 26,716	$ 24,865

12. INCOME TAXES (Details 2)

12. INCOME TAXES (Details 2) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Deferred income tax assets:
Inventories	$ 241,874	$ 145,884
Accounts receivable	445,392	253,559
Accrued expenses	116,254	80,068
Net operating loss and tax credit carry forwards	15,243,998	13,276,081
Plant and equipment	39,521	6,014
Stock compensation	448,375	123,841
Lease accounting	248	26,515
Other - interest expense	24,009	12,385
Total deferred income tax assets	16,559,671	13,924,347
Valuation allowance	(16,559,671)	(13,924,347)
Net deferred tax assets	$ 0	$ 0

13. SIGNIFICANT CUSTOMERS (Deta

13. SIGNIFICANT CUSTOMERS (Details Narrative)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Percent concentration	100.00%	100.00%
Three Companies | Net Sales
Percent concentration	76.00%
Two Companies | Net Sales
Percent concentration		84.00%
Two Companies | Accounts Receivable
Percent concentration	85.00%

14. SEGMENT AND GEOGRAPHIC IN_3

14. SEGMENT AND GEOGRAPHIC INFORMATION (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Net sales, amount	$ 47,988,549	$ 37,614,456
Net sales, % of total	100.00%	100.00%
North America
Net sales, amount	$ 47,116,632	$ 36,741,262
Net sales, % of total	98.20%	97.70%
Outside North America
Net sales, amount	$ 871,917	$ 873,194
Net sales, % of total	1.80%	2.30%

16. RETIREMENT PLAN (Details Na

16. RETIREMENT PLAN (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Retirement Benefits [Abstract]
Company matching contributions charged to expense	$ 10,575	$ 5,405