Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 09, 2022 | Jun. 30, 2021 | |
Document Information Line Items | |||
Entity Registrant Name | Sensus Healthcare, Inc. | ||
Trading Symbol | SRTS | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 16,657,048 | ||
Entity Public Float | $ 51,364,009 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001494891 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 001-37714 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 27-1647271 | ||
Entity Address, Address Line One | 851 Broken Sound Pkwy | ||
Entity Address, Address Line Two | NW #215, Boca Raton | ||
Entity Address, City or Town | Florida | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 33487 | ||
City Area Code | (561) | ||
Local Phone Number | 922-5808 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Security Exchange Name | NASDAQ | ||
Entity Interactive Data Current | Yes | ||
Auditor Firm ID | 688 | ||
Auditor Name | Marcum llp | ||
Auditor Location | Fort Lauderdale, FL |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 14,519 | $ 14,907 |
Accounts receivable, net | 12,130 | 3,776 |
Inventories | 1,759 | 4,427 |
Prepaid and other current assets | 2,837 | 2,061 |
Total current assets | 31,245 | 25,171 |
Property and equipment, net | 605 | 1,356 |
Intangibles | 146 | 338 |
Deposits | 75 | 69 |
Operating lease right-of-use assets, net | 169 | 1,076 |
Total assets | 32,240 | 28,010 |
Current liabilities | ||
Accounts payable and accrued expenses | 4,058 | 2,874 |
Deferred revenue, current portion | 1,172 | 1,492 |
Operating lease liabilities, current portion | 174 | 303 |
Product warranties | 508 | 187 |
Loan Payable | 51 | |
Total current liabilities | 5,963 | 4,856 |
Loan payable | 267 | |
Operating lease liabilities | 812 | |
Deferred revenue, net of current portion | 262 | 579 |
Total liabilities | 6,225 | 6,514 |
Commitments and contingencies | ||
Stockholders’ equity | ||
Preferred stock, 5,000,000 shares authorized and none issued and outstanding | ||
Common stock, $0.01 par value – 50,000,000 authorized; 16,694,311 issued and 16,617,274 outstanding at December 31, 2021; 16,564,311 issued and 16,491,103 outstanding at December 31, 2020 | 167 | 166 |
Additional paid-in capital | 44,115 | 43,701 |
Treasury stock, 77,037 and 73,208 shares at cost, at December 31, 2021 and 2020, respectively | (325) | (310) |
Accumulated deficit | (17,942) | (22,061) |
Total stockholders’ equity | 26,015 | 21,496 |
Total liabilities and stockholders’ equity | $ 32,240 | $ 28,010 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized | 50,000,000 | 50,000,000 |
Common stock share issued | 16,694,311 | 16,564,311 |
Common stock shares outstanding | 16,617,274 | 16,491,103 |
Treasury stock, shares | 77,037 | 73,208 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | ||
Revenues | $ 27,042 | $ 9,577 |
Cost of sales | 10,054 | 4,328 |
Gross profit | 16,988 | 5,249 |
Operating expenses | ||
Selling and marketing | 4,838 | 5,336 |
General and administrative | 4,594 | 3,989 |
Research and development | 3,436 | 4,158 |
Total operating expenses | 12,868 | 13,483 |
Income (loss) from operations | 4,120 | (8,234) |
Other income (expense) | ||
Gain on bargain purchase | 588 | |
Gain on extinguishment of loan | 758 | |
Loss on asset disposal | (1) | |
Interest income | 2 | 66 |
Interest expense | (2) | (14) |
Other income (expense), net | (1) | 1,398 |
Net income (loss) | $ 4,119 | $ (6,836) |
Net income (loss) per share – basic (in Dollars per share) | $ 0.25 | $ (0.42) |
– diluted (in Dollars per share) | $ 0.25 | $ (0.42) |
Weighted-average number of shares used in computing net loss per share – basic (in Shares) | 16,476,122 | 16,434,079 |
– diluted (in Shares) | 16,503,134 | 16,434,079 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Deficit | Total |
Balance at Dec. 31, 2019 | $ 166 | $ 43,314 | $ (253) | $ (15,225) | $ 28,002 |
Balance (in Shares) at Dec. 31, 2019 | 16,540,478 | (54,698) | |||
Surrender of shares for tax withholding on stock compensation | $ (57) | (57) | |||
Surrender of shares for tax withholding on stock compensation (in Shares) | (18,510) | ||||
Forfeiture of common stock | |||||
Forfeiture of common stock (in Shares) | (11,250) | ||||
Stock-based compensation | 386 | 386 | |||
Stock-based compensation (in Shares) | 35,000 | ||||
Exercise of warrants | 1 | $ 1 | |||
Exercise of warrants (in Shares) | 83 | ||||
Net income (loss) | (6,836) | $ (6,836) | |||
Balance at Dec. 31, 2020 | $ 166 | 43,701 | $ (310) | (22,061) | 21,496 |
Balance (in Shares) at Dec. 31, 2020 | 16,564,311 | (73,208) | |||
Surrender of shares for tax withholding on stock compensation | $ (15) | (15) | |||
Surrender of shares for tax withholding on stock compensation (in Shares) | (3,829) | ||||
Stock-based compensation | $ 1 | 414 | 415 | ||
Stock-based compensation (in Shares) | 130,000 | ||||
Exercise of warrants | |||||
Exercise of warrants (in Shares) | |||||
Net income (loss) | 4,119 | $ 4,119 | |||
Balance at Dec. 31, 2021 | $ 167 | $ 44,115 | $ (325) | $ (17,942) | $ 26,015 |
Balance (in Shares) at Dec. 31, 2021 | 16,694,311 | (77,037) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | ||
Net income (loss) | $ 4,119 | $ (6,836) |
Adjustments to reconcile net loss to net cash and cash equivalents used in operating activities: | ||
Bad debt expense | 78 | 24 |
Depreciation and amortization | 613 | 722 |
Loss on sale of property and equipment | 47 | |
Gain resulting from termination of lease | (38) | |
Provision for product warranties | 530 | 296 |
Gain on bargain purchase | (588) | |
Stock-based compensation | 415 | 386 |
Impairment of intangible assets | 88 | |
Changes in operating assets (decrease (increase)): | ||
Accounts receivable | (8,432) | 10,250 |
Inventories | 2,735 | (1,430) |
Prepaid and other current assets | (557) | (199) |
Changes in operating liabilities (increase (decrease)): | ||
Accounts payable and accrued expenses | 962 | (2,303) |
Deferred revenue | (637) | (460) |
Product warranties | (209) | (296) |
Total adjustments | (4,405) | 6,402 |
Net cash used in operating activities | (286) | (434) |
Cash flows from investing activities | ||
Acquisition of property and equipment | (128) | (359) |
Proceeds from the sale of property and equipment | 257 | |
Investments matured | 7,389 | |
Net cash provided by investing activities | 129 | 7,030 |
Cash flows from financing activities | ||
Loan proceeds | 267 | |
Principal repayment of loan payable | (216) | |
Withholding taxes on stock compensation | (15) | (57) |
Exercise of warrants | 1 | |
Net cash provided by (used in) financing activities | (231) | 211 |
Net increase (decrease) in cash and cash equivalents | (388) | 6,807 |
Cash and cash equivalents, beginning of year | 14,907 | 8,100 |
Cash and cash equivalents, end of year | 14,519 | 14,907 |
Supplemental disclosure of cash flow information: | ||
Interest paid | 2 | 12 |
Supplemental schedule of noncash investing and financing transactions | ||
Transfer of property and equipment to inventory | 66 | |
PPP loan (forgiveness portion) | 758 | |
Decrease in operating lease right-of-use assets and operating lease liabilities resulting from early termination of lease | $ 655 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Note 1 — Organization and Summary of Significant Accounting Policies Description of the Business Sensus Healthcare, Inc. (together, with its subsidiary, unless the context otherwise indicates, “Sensus” or the “Company”) is a manufacturer of radiation therapy devices and sells the devices to healthcare providers globally through its distribution and marketing network. The Company operates as one segment from its corporate headquarters located in Boca Raton, Florida. Basis of Presentation These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and include the accounts of the Company and its subsidiary. Accounts and transactions between consolidated entities have been eliminated. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, including disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting periods. Actual results could differ from those estimates. Impact of COVID-19 The outbreak of COVID-19, which was declared a pandemic by the World Health Organization on March 11, 2020, has materially and adversely impacted the U.S. and global economies, as well as the Company, its employees and, operations, and customer demand. Although we have been able to continue to operate and service customers throughout the pandemic, it significantly impacted the Company’s sales throughout 2020, as social distancing forced physicians to temporarily close their practices. In 2021, as the markets started to open, the Company was able to increase sales significantly. However, the ongoing COVID-19 pandemic, including the possible emergence of new variants, could further impact the Company’s operations and the operations of the Company’s customers, suppliers and vendors as a result of ongoing quarantines, facility closures, and travel and logistics restrictions. The extent to which the COVID-19 pandemic impacts the Company’s business, results of operations and financial condition will depend on future developments. The Company cannot reasonably estimate the impact at this time. Revenue Recognition Revenue is recognized upon transfer of control of promised goods or services to customers in an amount to which the Company expects to be entitled in exchange for those goods or services. The Company enters into contracts that can include multiple services, which are accounted for separately if they are determined to be distinct. The Company’s revenue derives from sales of the Company’s devices and services related to maintaining and repairing the devices. The agreement for the sale of the devices and the service contract are usually signed at the same time, although in some instances a service contract is signed on a stand-alone basis. Revenue for service contracts is recognized over the service contract period on a straight-line basis. The Company has determined that in practice no significant discount is given on the service contract when it is offered with the device purchase as compared to when it is sold on a stand-alone basis. The service level provided is identical whether the service contract is purchased on a stand-alone basis or together with the device. There is no termination provision in the service contract nor any penalties in practice for cancellation of the service contract The components of disaggregated revenue are as follows: (in thousands) 2021 2020 Product revenue $ 22,217 $ 5,449 Service revenue 4,825 4,128 Total revenue $ 27,042 $ 9,577 The Company operates in a highly regulated environment, primarily in the U.S. dermatology market, in which state regulatory approval is sometimes required prior to the customer being able to use the product. In cases where such regulatory approval is pending, revenue is deferred until such time as regulatory approval is obtained. Deferred revenue activity for 2021 and 2020 is as follows: (in thousands) Product Service Total December 31, 2019 $ - $ 2,531 $ 2,531 Revenue recognized - (2,860 ) (2,860 ) Amounts invoiced 23 2,377 2,400 December 31, 2020 23 2,048 2,071 Revenue recognized (23 ) (3,113 ) (3,136 ) Amounts invoiced 97 2,402 2,499 December 31, 2021 $ 97 $ 1,337 $ 1,434 The Company does not disclose information about remaining performance obligations of deposits for products that have original expected durations of one year or less. Estimated service revenue to be recognized in the future related to the performance obligations that are unsatisfied (or partially unsatisfied) as of December 31, 2021 is as follows: (in thousands) Year Service 2022 $ 1,075 2023 138 2024 81 2025 23 2026 20 Total $ 1,337 The Company provides warranties, generally for one year, in conjunction with the sale of its products. These warranties entitle the customer to repair, replacement, or modification of the defective product subject to the terms of the respective warranties. The Company records an estimate of future warranty claims at the time the Company recognizes revenue from the sale of the device based upon management’s estimate of the future claims rate. Shipping and handling costs are expensed as incurred and are included in cost of sales. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company places its cash and cash equivalents with highly rated financial institutions. Segment and Geographical Information The Company’s revenue is generated primarily from customers in the U.S., which represented approximately 95% and 97% of revenue for the years ended December 31, 2021 and 2020, respectively. One customer in the U.S. accounted for approximately 57% and 40% of revenue for the years ended December 31, 2021 and 2020, respectively, and 94% and 63% of the accounts receivable as of December 31, 2021 and 2020, respectively. Fair Value of Financial Instruments Carrying amounts of cash equivalents, accounts receivable, accounts payable and the revolving credit facility approximate fair value due to their relative short maturities. Fair Value Measurements The Company uses a fair value hierarchy that prioritizes inputs to valuation approaches used to measure fair value. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. Assets and liabilities measured and reported at fair value are classified and disclosed in one of the following categories: Level 1 Inputs: Quoted prices (unadjusted) in active markets for identical assets or liabilities at the reporting date. ● Level 1 assets may include listed mutual funds, ETFs and listed equities Level 2 Inputs: Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities that are not active; quotes from pricing services or brokers for which the Company can determine that orderly transactions took place at the quoted price or that the inputs used to arrive at the price are observable; and inputs other than quoted prices that are observable, such as models or other valuation methodologies. ● Level 2 assets may include debt securities and foreign currency exchange contracts that have inputs to the valuations that generally can be corroborated by observable market data. Level 3 Inputs: Unobservable inputs for the valuation of the asset or liability, which may include nonbinding broker quotes. ● Level 3 assets include investments for which there is little, if any, market activity. These inputs require significant management judgment or estimation. Significance of Inputs: The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument. Foreign Currency The Company’s foreign operation functional currency is the U.S. dollar. The Company considers its Israel subsidiary an extension of the parent company operations in the United States. The cash flow in the foreign operation depends primarily on the funding by the parent company. Cash and Cash Equivalents Cash and cash equivalents primarily consists of cash, money market funds and short-term, highly liquid investments with original maturities of three months or less. For purposes of the statements of cash flows, the Company considers all highly liquid financial instruments with a maturity of three months or less when purchased to be a cash equivalent. Accounts Receivable The Company does business and extends credit based on an evaluation of each customer’s financial condition, generally without requiring collateral. Exposure to losses on receivables is expected to vary by customer due to the financial condition of each customer. The Company monitors exposure to credit losses and maintains allowances for anticipated losses considered necessary under the circumstances. The allowance for doubtful accounts was approximately $69 thousand and $24 thousand as of December 31, 2021 and 2020, respectively. Bad debt expense for the years ended December 31, 2021 and 2020 were approximately $78 thousand and $24 thousand, respectively. Inventories Inventories consist of finished product and components and are stated at the lower of cost and net realizable value, determined using the first-in-first-out method. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation on property and equipment is calculated on the straight-line basis over the estimated useful life of each asset. Maintenance and repairs are expensed as incurred; expenditures that enhance the value of property or extend their useful lives are capitalized. When assets are sold or returned, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss is included in income. Inventory units designated for customer demonstrations, as part of the sales process, are reclassified to property and equipment and the depreciation is recorded to selling and marketing expense. Property and equipment for demonstrations and other programs that were reclassified to inventory was approximately $66 thousand and $0 for the years ended December 31, 2021 and 2020, respectively. Intangible Assets Intangible assets are comprised of the Company’s patent rights and finite-lived intangible assets acquired in acquisitions. The carrying value of finite-lived assets and their remaining useful lives are reviewed at least annually to determine if triggering events have occurred that may indicate a potential impairment or revision to the amortization period. For finite-lived intangible assets, if potential impairment circumstances are considered to exist, the Company will perform a recoverability test using an undiscounted cash flow analysis. Actual results could differ from these cash flow estimates, which could materially impact the impairment conclusion. If the carrying value of the asset is determined not to be recoverable based on the undiscounted cash flow test, the difference between the carrying value of the asset and its current fair value would be recognized as an expense in the period in which the impairment occurs. Impairment charges of $88 thousand and $0 were recorded for intangible assets for the years ended December 31, 2021 and 2020, respectively. Research and Development Research and development costs related to products under development by the Company and quality and regulatory costs and are expensed as incurred. Earnings Per Share Basic net income (loss) per share is calculated by dividing the net income (loss) by the weighted-average number of common shares outstanding for the period using the treasury stock method for options and warrants. Diluted net income per share is computed by giving effect to all potential dilutive common share equivalents outstanding for the period. In periods when the Company has incurred a net loss, options and warrants to purchase common shares are considered common share equivalents but have been excluded from the calculation of diluted net loss per share as their effect is antidilutive. Shares excluded were computed under the treasury stock method as follows: For the Years Ended 2021 2020 Restricted shares - 106 Equity-Based Compensation Pursuant to relevant accounting guidance related to accounting for equity-based compensation, the Company is required to recognize all share-based payments to non-employees and employees in the financial statements based on grant-date fair values. The Company has accounted for issuances of shares, options, and warrants in accordance with the guidance, which requires the recognition of expense, based on grant-date fair values, over the service period, generally periods over which the shares, options and warrants vest. Advertising Costs Advertising and promotion costs are charged to expense as incurred. Advertising and promotion costs included in selling and marketing expense in the accompanying statements of operations amounted to approximately $460 thousand and $515 thousand for the years ended December 31, 2021 and 2020, respectively. Leases The Company evaluates arrangements at inception to determine if an arrangement is or contains a lease. Operating lease assets represent the Company’s right to control an underlying asset for the lease term, and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Control of an underlying asset is conveyed to the Company if the Company obtains the rights to direct the use of and to obtain substantially all of the economic benefits from using the underlying asset. Operating lease assets and liabilities are recognized at the commencement date of the lease based upon the present value of lease payments over the lease term. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company uses an incremental borrowing rate that the Company would expect to incur for a fully collateralized loan over a similar term under similar economic conditions to determine the present value of the lease payments. The Company has lease agreements which include lease and non-lease components, which the Company has elected to account for as a single lease component for all classes of underlying assets. The lease payments used to determine the Company’s operating lease assets may include lease incentives, and stated rent increases and are recognized in the Company’s operating lease assets in the Company’s consolidated balance sheets. Operating lease assets are amortized to rent expense over the lease term and included in operating expenses in the consolidated statements of operations. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2021 | |
Acquisitions [Abstract] | |
ACQUISITIONS | Note 2 — ACQUISITIONS On August 3, 2020, the Company acquired two mobile aesthetic laser companies, now known as Sensus Laser Aesthetic Solutions (“SLAS”), to complement and expand the Company’s offerings. The aggregate purchase price of $999 thousand was to be treated as compensation for post-acquisition services and to be recorded as compensation expense over the remaining service periods. The purchase price was allocated to the assets acquired and liabilities assumed based upon their estimated fair values at the date of the transaction. A summary of the estimated fair values of the assets acquired and liabilities assumed is as follows: (in thousands) Fair Value Accounts receivable $ 39 Property and equipment 528 Finite-lived intangible assets: Trade names 22 Customer relationships 87 Other liabilities assumed (88 ) Bargain purchase gain $ 588 A bargain purchase gain results from an acquisition if the fair value of the purchase consideration paid in connection with such acquisition is less than the net fair value of the assets acquired and liabilities assumed. Accordingly, the Company recorded a bargain purchase gain of $588 thousand, which is included in other income on the consolidated statements of operations for the year ended December 31, 2020. During the year ended December 31, 2021, the aggregate purchase price was reduced to $229 thousand due to the termination of a compensation arrangement with one of the parties. No further obligations are due to this party. In April 2021, the Company sold to the terminated party certain property and equipment acquired in one of the acquisitions for approximately $257 thousand. During the year ended December 31, 2021, the Company recorded $88 thousand of impairment charges on intangible assets and $47 thousand for a loss on the sale of property and equipment associated with this transaction. The Company does not expect to incur any additional impairment charges related to the acquisitions. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | Note 3 — Property and Equipment Property and equipment consists of the following: (in thousands) As of December 31, Estimated 2021 2020 life-in years Operations and rental equipment $ 1,760 $ 2,178 3 Tradeshow and demo equipment 927 923 3 Computer equipment 129 119 3 2,816 3,220 Less accumulated depreciation (2,211 ) (1,864 ) Property and Equipment, Net $ 605 $ 1,356 Depreciation expense was approximately $509 thousand and $613 thousand for the years ended December 31, 2021 and 2020, respectively. Accumulated depreciation on asset disposals was approximately $88 thousand and $74 thousand for the years ended December 31, 2021 and 2020, respectively. |
Intangibles
Intangibles | 12 Months Ended |
Dec. 31, 2021 | |
Intangibles [Abstract] | |
INTANGIBLES | Note 4 — INTANGIBLES (in thousands) Patent Customer Trade Total December 31, 2019 $ 337 $ — $ — $ 337 Acquired assets — 87 22 109 Amortization expense (96 ) (3 ) (9 ) (108 ) December 31, 2020 $ 241 $ 84 $ 13 $ 338 Impaired assets — (81 ) (7 ) (88 ) Amortization expense (96 ) (2 ) (6 ) (104 ) December 31, 2021 $ 145 $ 1 $ - $ 146 Amortization expense was approximately $104,000 and $108,000 for the years ended December 31, 2021 and 2020, respectively. Estimated amortization expense for the finite-lived intangible assets for each of succeeding years is as follows: For the Year Ending December 31, (in thousands) 2022 $ 97 2023 48 2024 1 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | Note 5 — DEBT The Company has a revolving credit facility that, through April 2020, provided for maximum borrowings equal to the lesser of (a) the $5 million commitment amount or (b) a borrowing base equal to 80% of eligible accounts receivable plus a $2.5 million non-formula sublimit. In October 2019, the term of the facility was extended through January 29, 2020; in January 2020, the term was further extended through April 28, 2020; and in April 2020, the term was further extended to April 1, 2022, and the maximum borrowings were increased to the lesser of (a) the $10 million commitment amount or (b) the borrowing base plus a $3 million non-formula sublimit. Interest on any borrowings, at Prime plus 0.75% (4.00% at December 31, 2021) and Prime plus 1.50% on non-formula borrowings (4.75% at December 31, 2021) is payable monthly, and the outstanding principal and interest are due on the maturity date. The facility is secured by all of the Company’s assets and limits the amount of additional indebtedness; restricts the sale, disposition or transfer of assets of the Company; and requires the maintenance of a monthly adjusted quick ratio restrictive covenant, as defined in the facility. The Company was in compliance with its financial covenants as of December 31, 2021 and December 31, 2020. There were no borrowings outstanding under the revolving credit facility at December 31, 2021 and December 31, 2020. The Company pays commitment fees of 0.25% per annum on the average unused portion of the line of credit. On April 20, 2020, the Company received a loan of $1,022,785 under the Small Business Administration (“SBA”) Paycheck Protection Program enabled by the CARES Act of 2020, to be used for employee compensation and facilities costs. The loan provided for a six-month deferral period during which no payments were due, although interest accrued during this period. The loan matures in April 2022 and provides for interest at the rate of 1% per annum. The loan is subject to forgiveness for principal that is used for the limited purposes that expressly qualify for forgiveness under SBA requirements. The Company applied for and has been notified that $757,782 in eligible expenditures for payroll and other expenses described in the CARES Act has been forgiven. Loan forgiveness is reflected in gain on extinguishment of the loan in the consolidated statements of operations. As of December 31, 2021 and 2020, the outstanding balance on the SBA loan was approximately $51 thousand and $267 thousand, respectively. |
Product Warranties
Product Warranties | 12 Months Ended |
Dec. 31, 2021 | |
Product Warranties [Abstract] | |
PRODUCT WARRANTIES | Note 6 — Product Warranties Changes in product warranty liability were as follows for the years ended December 31, 2021 and 2020: (in thousands) Balance, December 31, 2019 $ 187 Warranties accrued during the period 296 Payments on warranty claims (296 ) Balance, December 31, 2020 $ 187 Warranties accrued during the period 530 Payments on warranty claims (209 ) Balance, December 31, 2021 $ 508 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Note 7 — Commitments and Contingencies Operating Lease Agreements The Company leases its headquarters office from an unrelated third party. The lease was last renewed in 2016 and expires in September 2022 with an option to extend with prior notice upon terms to be negotiated. The Company’s subsidiary previously leased a manufacturing facility under a 10-year lease expiring in July 2029. In accordance with the lease terms, the Company terminated the lease as of October 31, 2021, without penalty. The following table presents information about the amount, timing and uncertainty of cash flows arising from the Company’s operating leases as of December 31, 2021. (in thousands) Maturity of Operating Lease Liabilities Amount 2022 $ 183 Total undiscounted operating leases payments $ 183 Less: Imputed interest (9 ) Present Value of Operating Lease Liabilities $ 174 Other Information Weighted-average remaining lease term 0.7 years Weighted-average discount rate 5.0 % An initial Right of Use (“ROU”) asset of approximately $805 thousand was recognized as a non-cash assets addition with the adoption of the new lease accounting standard. The value of the ROU assets was reduced by approximately $907 thousand, including approximately $655 thousand related to the early termination of our subsidiary’s lease, and $324 thousand during the years ended December 31, 2021 and 2020, respectively. Cash paid for amounts included in the present value of operating lease liabilities was approximately $331 thousand and $359 thousand for the years ended December 31, 2021 and 2020, respectively, and is included in cash flows from operating activities in the accompanying consolidated statement of cash flows. Operating lease costs were approximately $335 thousand and $373 thousand for the years ended December 31, 2021 and 2020, respectively. Manufacturing Agreement In 2010, the Company entered into a three one Purchases from this manufacturer totaled approximately $5.9 and $2.5 million for the years ended December 31, 2021 and 2020, respectively. As of December 31, 2021 and 2020, approximately $1.2 million and $697 thousand, respectively, was due to this manufacturer, which is presented in accounts payable and accrued expenses in the accompanying consolidated balance sheets. Legal contingencies The Company is party to certain legal proceedings in the ordinary course of business. The Company assesses, in conjunction with its legal counsel, the need to record a liability for litigation and related contingencies. In 2015, the Company learned that the Department of Justice (the “Department”) had commenced an investigation of the billing to Medicare by a physician who had treated patients with the Company’s SRT-100. The Company has received two Civil Investigative Demands from the Department seeking documents and written responses in connection with that investigation. The Company has fully cooperated with the investigation. The Department has advised the Company that it was considering expanding the investigation to determine whether the Company had any involvement in the physician’s use of certain reimbursement codes. The Company disputes that it has engaged in any wrongdoing with respect to such reimbursement claims; among other things, the Company does not submit claims for reimbursement or provide coding or billing advice to physicians. To the Company’s knowledge, the Department has made no determination as to whether the Company engaged in any wrongdoing, or whether to pursue any legal action against the Company. Should the Department decide to pursue legal action, the Company believes it has strong and meritorious defenses and will vigorously defend itself. At this time, the Company is unable to estimate the cost associated with this matter. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Employee Benefit Plans [Abstract] | |
EMPLOYEE BENEFIT PLANS | Note 8 — Employee Benefit Plans The Company sponsors a 401(k) defined contribution retirement plan that allows eligible employees to contribute a portion of their compensation, as defined by the plan and subject to Internal Revenue Code limitations. The Company makes contributions to the plan which include matching a percentage of the employees’ contributions up to certain limits. Expenses related to this plan totaled approximately $98 thousand and $125 thousand for the years ended December 31, 2021 and 2020, respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | Note 9 — Stockholders’ Equity The Company has authorized 50,000,000 shares of common stock, of which 16,694,311 were issued and 16,617,274 were outstanding at December 31, 2021; 16,564,311 shares were issued and 16,491,103 were outstanding as of December 31, 2020. Warrants In 2016, investors in the Company’s initial public offering (the “IPO”), received three In addition, the underwriters of the IPO received four-year warrants to purchase up to 138,000 units, consisting of one share of common stock and one warrant to purchase one share of common stock. The warrants, with an exercise price of $6.75 per unit, expired on June 2, 2021. The following table summarizes the Company’s warrant activity: Warrants Number of Weighted Weighted Outstanding – December 31, 2019 2,032,187 $ 6.75 0.51 Granted — — — Exercised (83 ) — — Expired (1,894,104 ) — — Outstanding – December 31, 2020 138,000 $ 6.75 0.44 Exercisable – December 31, 2020 138,000 $ 6.75 0.44 Granted — — — Exercised — — — Expired (138,000 ) 6.75 — Outstanding – December 31, 2021 — $ — — Exercisable – December 31, 2021 — $ — — 2016 and 2017 Equity Incentive Plans The Company has limited the aggregate number of shares of common stock to be awarded under the 2016 Equity Incentive Plan to 397,473 shares. The Company has limited the aggregate number of shares of common stock to be awarded under the 2017 Equity Incentive Plan to 500,000 shares. In addition, unless the Compensation Committee specifically determines otherwise, the maximum number of shares available under the 2016 and 2017 Plans and the awards granted under those plans will be subject to appropriate adjustment in the case of any stock dividends, stock splits, recapitalizations, reorganizations, mergers, consolidations, exchanges or other changes in capitalization affecting our common stock. On February 1, 2020, a total of 35,000 shares of restricted stock were issued to employees and were recorded at the fair value of $4.11 per share. The restricted shares vest 25% per year over a four On July 21, 2021, a total of 130,000 shares of restricted stock were issued to employees and board members and were recorded at the fair value of $3.84 per share. The restricted shares vest 25% at grant date and 25% per year over a three Restricted stock activity for the years ended December 31, 2021 and 2020 is summarized below: Outstanding at Restricted Stock Weighted- December 31, 2019 80,417 $ 5.70 Granted 35,000 4.11 Vested (66,667 ) 5.24 Forfeited (11,250 ) 8.58 December 31, 2020 37,500 $ 4.17 Granted 130,000 3.84 Vested (43,750 ) 3.96 Forfeited - - December 31, 2021 123,750 $ 3.90 The Company recognizes forfeitures as they occur. The reduction of stock compensation expense related to the forfeitures was $0 for the years ended December 31, 2021 and 2020, respectively. Unrecognized stock compensation expense was approximately $403 thousand as of December 31, 2021, which will be recognized over a weighted-average period of 2.26 years. The stock compensation expense was approximately $415 thousand and $386 thousand, for the years ended December 30, 2021 and 2020. The following table summarizes the Company’s stock option activity: Number of Weighted Weighted Outstanding – December 31, 2019 229,334 $ 5.55 8.07 Granted — — — Exercised — — — Expired — — — Outstanding – December 31, 2020 229,334 $ 5.55 7.07 Exercisable – December 31, 2020 229,334 5.55 7.07 Granted — — — Exercised — — — Expired — — — Outstanding – December 31, 2021 229,334 $ 5.55 6.07 Exercisable – December 31, 2021 229,334 5.55 6.07 The stock options had an intrinsic value of $382 thousand and $0 as of December 31, 2021 and December 31, 2020, respectively. Treasury Stock The Company accounts for purchases of treasury stock under the cost method with the cost of such share purchases reflected in treasury stock in the accompanying consolidated balance sheet. As of December 31, 2021 and 2020, the Company had 77,037 and 73,208 treasury shares, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Note 10 — Income Taxes The income tax provision (benefit) consisted of the following: (in thousands) For The Years Ended December 31, 2021 2020 Current – federal - - Current – state - - Deferred – federal (854 ) (1,279 ) Deferred – international (236 ) (199 ) Deferred – international (15 ) (61 ) (1,105 ) (1,539 ) Change in valuation allowance 1,105 1,539 Income tax provision $ - $ - For the years ended December 31, 2021 and December 31, 2020, the expected tax expense (benefit) based on the statutory rate is reconciled with the actual tax expense (benefit) as follows: For The Years Ended December 31, 2021 2020 U.S. federal statutory rate 21.0 % (21.0 )% State taxes, net of federal benefit 4.9 % (5.8 )% Foreign rate differential 0.0 % (0.1 )% Permanent differences 0.1 % (1.9 )% Change in tax rates 0.9 % 0.3 % Return-to-provision adjustments (0.1 )% 0.6 % Tax credits 0.0 % 5.2 % Other - - % Change in valuation allowance (26.8 )% 22.5 % Income tax provision 0.0 % 0.0 % As of December 31, 2021 and December 31, 2020, the Company’s net deferred tax asset consisted of the effects of temporary differences attributable to the following: (in thousands) December 31, 2021 2020 Net operating losses $ 2,336 $ 3,683 Stock-based compensation 274 190 Depreciation and amortization (110 ) (236 ) Accrued expenses and reserves 240 106 Prepaid expenses (11 ) (23 ) Customer deposits 183 216 Tax credit 750 824 Charitable Contributions 26 37 Lease Accounting 2 (2 ) Other, net 2 2 Deferred tax asset, net 3,692 4,797 Valuation allowance (3,692 ) (4,797 ) Deferred tax asset, net of valuation allowance - - The Company has federal tax net operating loss carryforwards of approximately $8.1 million as of December 31, 2021 and state net operating loss carryforwards (each, an “NOL”) spread across various jurisdictions with a combined total of approximately $8.9 million as of December 31, 2021. The federal NOL generated prior to 2018 of $3.2 million was fully utilized in 2021. The federal NOL generated after December 31, 2018 will never expire but can only reduce 80% of taxable income in future years. Additionally, the Company also has tax credit carryforwards of approximately $750 thousand as of December 31, 2021. These credit carryforwards, if not used in future periods, will begin to expire in 2029. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the future generation of taxable income during the periods in which those temporary differences become deductible. The Company has historically been in a loss position. However, it is in a taxable income position for federal and state tax purposes in 2021. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, past three years of cumulative financial taxable income, and taxing strategies in making this assessment. Based on this assessment, management has maintained the position of establishing a full valuation allowance against all of the net deferred tax assets for each period, since it is more likely than not that all of the deferred tax assets will not be realized as of the balance sheet date. The valuation allowance for the years ended December 31, 2021 decreased by approximately $1.1 million compared to the valuation allowance increase of $1.5 million from 2019 to 2020. Management has evaluated and concluded that there were no material uncertain tax positions requiring recognition in the Company’s consolidated financial statements as of December 31, 2021 and 2020. The Company does not expect any significant changes in its unrecognized tax benefits within 12 months of the reporting date. The Company has U.S. federal and certain state tax returns subject to examination by tax authorities beginning with those filed for the year ended December 31, 2015. The Company’s policy is to classify assessments, if any, for tax related interest as interest expense and penalties as general and administrative expenses in the consolidated statements of operations. On March 27, 2020, the United States enacted the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The Cares Act is an emergency economic stimulus package that includes spending and tax breaks to strengthen the United States economy and fund a nationwide effort to curtail the effects of COVID-19. As a result of the CARES Act, the Company obtained a loan through the Paycheck Protection Program (“PPP”). A portion of the PPP loan and related interest is forgiven to the extent the loan is spent on eligible expenses and other criteria are met. During the year ended December 31, 2020, $757,782 in principal amount of this loan was forgiven which resulted in income that was not recognized for tax purposes. The balance of the PPP Loan was reduced in 2021 due to payments made towards the loan. The Company has not recorded any subsequent income or expenses related to this loan. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Note 11 — Subsequent Events The Company has evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the financial statements were issued for potential recognition or disclosure and has determined that there has been an event that would require adjustments to our disclosures in the consolidated financial statements, as follows: On February 25, 2022, the Company sold the assets comprising its Scupltura product, with a net book value of approximately $1.6 million, pursuant to an Asset Purchase Agreement between the Company and Empyrean Medical Systems, Inc. The Buyer paid a purchase price of $15 million in cash. Additional information regarding this transaction can be found in the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on March 3, 2022. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
DESCRIPTION OF THE BUSINESS | Description of the Business Sensus Healthcare, Inc. (together, with its subsidiary, unless the context otherwise indicates, “Sensus” or the “Company”) is a manufacturer of radiation therapy devices and sells the devices to healthcare providers globally through its distribution and marketing network. The Company operates as one segment from its corporate headquarters located in Boca Raton, Florida. |
BASIS OF PRESENTATION | Basis of Presentation These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and include the accounts of the Company and its subsidiary. Accounts and transactions between consolidated entities have been eliminated. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, including disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting periods. Actual results could differ from those estimates. |
IMPACT OF COVID-19 | Impact of COVID-19 The outbreak of COVID-19, which was declared a pandemic by the World Health Organization on March 11, 2020, has materially and adversely impacted the U.S. and global economies, as well as the Company, its employees and, operations, and customer demand. Although we have been able to continue to operate and service customers throughout the pandemic, it significantly impacted the Company’s sales throughout 2020, as social distancing forced physicians to temporarily close their practices. In 2021, as the markets started to open, the Company was able to increase sales significantly. However, the ongoing COVID-19 pandemic, including the possible emergence of new variants, could further impact the Company’s operations and the operations of the Company’s customers, suppliers and vendors as a result of ongoing quarantines, facility closures, and travel and logistics restrictions. The extent to which the COVID-19 pandemic impacts the Company’s business, results of operations and financial condition will depend on future developments. The Company cannot reasonably estimate the impact at this time. |
REVENUE RECOGNITION | Revenue Recognition Revenue is recognized upon transfer of control of promised goods or services to customers in an amount to which the Company expects to be entitled in exchange for those goods or services. The Company enters into contracts that can include multiple services, which are accounted for separately if they are determined to be distinct. The Company’s revenue derives from sales of the Company’s devices and services related to maintaining and repairing the devices. The agreement for the sale of the devices and the service contract are usually signed at the same time, although in some instances a service contract is signed on a stand-alone basis. Revenue for service contracts is recognized over the service contract period on a straight-line basis. The Company has determined that in practice no significant discount is given on the service contract when it is offered with the device purchase as compared to when it is sold on a stand-alone basis. The service level provided is identical whether the service contract is purchased on a stand-alone basis or together with the device. There is no termination provision in the service contract nor any penalties in practice for cancellation of the service contract The components of disaggregated revenue are as follows: (in thousands) 2021 2020 Product revenue $ 22,217 $ 5,449 Service revenue 4,825 4,128 Total revenue $ 27,042 $ 9,577 The Company operates in a highly regulated environment, primarily in the U.S. dermatology market, in which state regulatory approval is sometimes required prior to the customer being able to use the product. In cases where such regulatory approval is pending, revenue is deferred until such time as regulatory approval is obtained. Deferred revenue activity for 2021 and 2020 is as follows: (in thousands) Product Service Total December 31, 2019 $ - $ 2,531 $ 2,531 Revenue recognized - (2,860 ) (2,860 ) Amounts invoiced 23 2,377 2,400 December 31, 2020 23 2,048 2,071 Revenue recognized (23 ) (3,113 ) (3,136 ) Amounts invoiced 97 2,402 2,499 December 31, 2021 $ 97 $ 1,337 $ 1,434 The Company does not disclose information about remaining performance obligations of deposits for products that have original expected durations of one year or less. Estimated service revenue to be recognized in the future related to the performance obligations that are unsatisfied (or partially unsatisfied) as of December 31, 2021 is as follows: (in thousands) Year Service 2022 $ 1,075 2023 138 2024 81 2025 23 2026 20 Total $ 1,337 The Company provides warranties, generally for one year, in conjunction with the sale of its products. These warranties entitle the customer to repair, replacement, or modification of the defective product subject to the terms of the respective warranties. The Company records an estimate of future warranty claims at the time the Company recognizes revenue from the sale of the device based upon management’s estimate of the future claims rate. Shipping and handling costs are expensed as incurred and are included in cost of sales. |
CONCENTRATION OF CREDIT RISK | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company places its cash and cash equivalents with highly rated financial institutions. |
SEGMENT AND GEOGRAPHICAL INFORMATION | Segment and Geographical Information The Company’s revenue is generated primarily from customers in the U.S., which represented approximately 95% and 97% of revenue for the years ended December 31, 2021 and 2020, respectively. One customer in the U.S. accounted for approximately 57% and 40% of revenue for the years ended December 31, 2021 and 2020, respectively, and 94% and 63% of the accounts receivable as of December 31, 2021 and 2020, respectively. |
FAIR VALUE OF FINANCIAL INSTRUMENTS | Fair Value of Financial Instruments Carrying amounts of cash equivalents, accounts receivable, accounts payable and the revolving credit facility approximate fair value due to their relative short maturities. |
FAIR VALUE MEASUREMENTS | Fair Value Measurements The Company uses a fair value hierarchy that prioritizes inputs to valuation approaches used to measure fair value. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. Assets and liabilities measured and reported at fair value are classified and disclosed in one of the following categories: Level 1 Inputs: Quoted prices (unadjusted) in active markets for identical assets or liabilities at the reporting date. ● Level 1 assets may include listed mutual funds, ETFs and listed equities Level 2 Inputs: Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities that are not active; quotes from pricing services or brokers for which the Company can determine that orderly transactions took place at the quoted price or that the inputs used to arrive at the price are observable; and inputs other than quoted prices that are observable, such as models or other valuation methodologies. ● Level 2 assets may include debt securities and foreign currency exchange contracts that have inputs to the valuations that generally can be corroborated by observable market data. Level 3 Inputs: Unobservable inputs for the valuation of the asset or liability, which may include nonbinding broker quotes. ● Level 3 assets include investments for which there is little, if any, market activity. These inputs require significant management judgment or estimation. Significance of Inputs: The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument. |
FOREIGN CURRENCY | Foreign Currency The Company’s foreign operation functional currency is the U.S. dollar. The Company considers its Israel subsidiary an extension of the parent company operations in the United States. The cash flow in the foreign operation depends primarily on the funding by the parent company. |
CASH AND CASH EQUIVALENTS | Cash and Cash Equivalents Cash and cash equivalents primarily consists of cash, money market funds and short-term, highly liquid investments with original maturities of three months or less. For purposes of the statements of cash flows, the Company considers all highly liquid financial instruments with a maturity of three months or less when purchased to be a cash equivalent. |
ACCOUNTS RECEIVABLE | Accounts Receivable The Company does business and extends credit based on an evaluation of each customer’s financial condition, generally without requiring collateral. Exposure to losses on receivables is expected to vary by customer due to the financial condition of each customer. The Company monitors exposure to credit losses and maintains allowances for anticipated losses considered necessary under the circumstances. The allowance for doubtful accounts was approximately $69 thousand and $24 thousand as of December 31, 2021 and 2020, respectively. Bad debt expense for the years ended December 31, 2021 and 2020 were approximately $78 thousand and $24 thousand, respectively. |
INVENTORIES | Inventories Inventories consist of finished product and components and are stated at the lower of cost and net realizable value, determined using the first-in-first-out method. |
PROPERTY AND EQUIPMENT | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation on property and equipment is calculated on the straight-line basis over the estimated useful life of each asset. Maintenance and repairs are expensed as incurred; expenditures that enhance the value of property or extend their useful lives are capitalized. When assets are sold or returned, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss is included in income. Inventory units designated for customer demonstrations, as part of the sales process, are reclassified to property and equipment and the depreciation is recorded to selling and marketing expense. Property and equipment for demonstrations and other programs that were reclassified to inventory was approximately $66 thousand and $0 for the years ended December 31, 2021 and 2020, respectively. |
INTANGIBLE ASSETS | Intangible Assets Intangible assets are comprised of the Company’s patent rights and finite-lived intangible assets acquired in acquisitions. The carrying value of finite-lived assets and their remaining useful lives are reviewed at least annually to determine if triggering events have occurred that may indicate a potential impairment or revision to the amortization period. For finite-lived intangible assets, if potential impairment circumstances are considered to exist, the Company will perform a recoverability test using an undiscounted cash flow analysis. Actual results could differ from these cash flow estimates, which could materially impact the impairment conclusion. If the carrying value of the asset is determined not to be recoverable based on the undiscounted cash flow test, the difference between the carrying value of the asset and its current fair value would be recognized as an expense in the period in which the impairment occurs. Impairment charges of $88 thousand and $0 were recorded for intangible assets for the years ended December 31, 2021 and 2020, respectively. |
RESEARCH AND DEVELOPMENT | Research and Development Research and development costs related to products under development by the Company and quality and regulatory costs and are expensed as incurred. |
EARNINGS PER SHARE | Earnings Per Share Basic net income (loss) per share is calculated by dividing the net income (loss) by the weighted-average number of common shares outstanding for the period using the treasury stock method for options and warrants. Diluted net income per share is computed by giving effect to all potential dilutive common share equivalents outstanding for the period. In periods when the Company has incurred a net loss, options and warrants to purchase common shares are considered common share equivalents but have been excluded from the calculation of diluted net loss per share as their effect is antidilutive. Shares excluded were computed under the treasury stock method as follows: For the Years Ended 2021 2020 Restricted shares - 106 |
EQUITY-BASED COMPENSATION | Equity-Based Compensation Pursuant to relevant accounting guidance related to accounting for equity-based compensation, the Company is required to recognize all share-based payments to non-employees and employees in the financial statements based on grant-date fair values. The Company has accounted for issuances of shares, options, and warrants in accordance with the guidance, which requires the recognition of expense, based on grant-date fair values, over the service period, generally periods over which the shares, options and warrants vest. |
ADVERTISING COSTS | Advertising Costs Advertising and promotion costs are charged to expense as incurred. Advertising and promotion costs included in selling and marketing expense in the accompanying statements of operations amounted to approximately $460 thousand and $515 thousand for the years ended December 31, 2021 and 2020, respectively. |
LEASES | Leases The Company evaluates arrangements at inception to determine if an arrangement is or contains a lease. Operating lease assets represent the Company’s right to control an underlying asset for the lease term, and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Control of an underlying asset is conveyed to the Company if the Company obtains the rights to direct the use of and to obtain substantially all of the economic benefits from using the underlying asset. Operating lease assets and liabilities are recognized at the commencement date of the lease based upon the present value of lease payments over the lease term. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company uses an incremental borrowing rate that the Company would expect to incur for a fully collateralized loan over a similar term under similar economic conditions to determine the present value of the lease payments. The Company has lease agreements which include lease and non-lease components, which the Company has elected to account for as a single lease component for all classes of underlying assets. The lease payments used to determine the Company’s operating lease assets may include lease incentives, and stated rent increases and are recognized in the Company’s operating lease assets in the Company’s consolidated balance sheets. Operating lease assets are amortized to rent expense over the lease term and included in operating expenses in the consolidated statements of operations. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of disaggregation of revenue | 2021 2020 Product revenue $ 22,217 $ 5,449 Service revenue 4,825 4,128 Total revenue $ 27,042 $ 9,577 |
Schedule of deferred revenue | Product Service Total December 31, 2019 $ - $ 2,531 $ 2,531 Revenue recognized - (2,860 ) (2,860 ) Amounts invoiced 23 2,377 2,400 December 31, 2020 23 2,048 2,071 Revenue recognized (23 ) (3,113 ) (3,136 ) Amounts invoiced 97 2,402 2,499 December 31, 2021 $ 97 $ 1,337 $ 1,434 |
Schedule of estimated service revenue recognized | Year Service 2022 $ 1,075 2023 138 2024 81 2025 23 2026 20 Total $ 1,337 |
Schedule of effect antidilutive | For the Years Ended 2021 2020 Restricted shares - 106 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Acquisitions [Abstract] | |
Schedule of assets acquired and liabilities assumed | Fair Value Accounts receivable $ 39 Property and equipment 528 Finite-lived intangible assets: Trade names 22 Customer relationships 87 Other liabilities assumed (88 ) Bargain purchase gain $ 588 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property and Equipment [Abstract] | |
Schedule of property and equipment | (in thousands) As of December 31, Estimated 2021 2020 life-in years Operations and rental equipment $ 1,760 $ 2,178 3 Tradeshow and demo equipment 927 923 3 Computer equipment 129 119 3 2,816 3,220 Less accumulated depreciation (2,211 ) (1,864 ) Property and Equipment, Net $ 605 $ 1,356 |
Intangibles (Tables)
Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Intangibles [Abstract] | |
Schedule of intangible assets | (in thousands) Patent Customer Trade Total December 31, 2019 $ 337 $ — $ — $ 337 Acquired assets — 87 22 109 Amortization expense (96 ) (3 ) (9 ) (108 ) December 31, 2020 $ 241 $ 84 $ 13 $ 338 Impaired assets — (81 ) (7 ) (88 ) Amortization expense (96 ) (2 ) (6 ) (104 ) December 31, 2021 $ 145 $ 1 $ - $ 146 |
Schedule of estimated amortization expense | For the Year Ending December 31, (in thousands) 2022 $ 97 2023 48 2024 1 |
Product Warranties (Tables)
Product Warranties (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Product Warranties [Abstract] | |
Schedule of changes in product warranty liability | Balance, December 31, 2019 $ 187 Warranties accrued during the period 296 Payments on warranty claims (296 ) Balance, December 31, 2020 $ 187 Warranties accrued during the period 530 Payments on warranty claims (209 ) Balance, December 31, 2021 $ 508 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of lease payments for operating leases | Maturity of Operating Lease Liabilities Amount 2022 $ 183 Total undiscounted operating leases payments $ 183 Less: Imputed interest (9 ) Present Value of Operating Lease Liabilities $ 174 Other Information Weighted-average remaining lease term 0.7 years Weighted-average discount rate 5.0 % |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of warrant activity | Warrants Number of Weighted Weighted Outstanding – December 31, 2019 2,032,187 $ 6.75 0.51 Granted — — — Exercised (83 ) — — Expired (1,894,104 ) — — Outstanding – December 31, 2020 138,000 $ 6.75 0.44 Exercisable – December 31, 2020 138,000 $ 6.75 0.44 Granted — — — Exercised — — — Expired (138,000 ) 6.75 — Outstanding – December 31, 2021 — $ — — Exercisable – December 31, 2021 — $ — — |
Schedule of restricted activity | Outstanding at Restricted Stock Weighted- December 31, 2019 80,417 $ 5.70 Granted 35,000 4.11 Vested (66,667 ) 5.24 Forfeited (11,250 ) 8.58 December 31, 2020 37,500 $ 4.17 Granted 130,000 3.84 Vested (43,750 ) 3.96 Forfeited - - December 31, 2021 123,750 $ 3.90 |
Schedule of option activity | Number of Weighted Weighted Outstanding – December 31, 2019 229,334 $ 5.55 8.07 Granted — — — Exercised — — — Expired — — — Outstanding – December 31, 2020 229,334 $ 5.55 7.07 Exercisable – December 31, 2020 229,334 5.55 7.07 Granted — — — Exercised — — — Expired — — — Outstanding – December 31, 2021 229,334 $ 5.55 6.07 Exercisable – December 31, 2021 229,334 5.55 6.07 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax provision (benefit) | (in thousands) For The Years Ended December 31, 2021 2020 Current – federal - - Current – state - - Deferred – federal (854 ) (1,279 ) Deferred – international (236 ) (199 ) Deferred – international (15 ) (61 ) (1,105 ) (1,539 ) Change in valuation allowance 1,105 1,539 Income tax provision $ - $ - |
Schedule of expected tax expense (benefit) based on statutory rate is reconciled with actual tax expense (benefit) | For The Years Ended December 31, 2021 2020 U.S. federal statutory rate 21.0 % (21.0 )% State taxes, net of federal benefit 4.9 % (5.8 )% Foreign rate differential 0.0 % (0.1 )% Permanent differences 0.1 % (1.9 )% Change in tax rates 0.9 % 0.3 % Return-to-provision adjustments (0.1 )% 0.6 % Tax credits 0.0 % 5.2 % Other - - % Change in valuation allowance (26.8 )% 22.5 % Income tax provision 0.0 % 0.0 % |
Schedule of company's net deferred tax asset | (in thousands) December 31, 2021 2020 Net operating losses $ 2,336 $ 3,683 Stock-based compensation 274 190 Depreciation and amortization (110 ) (236 ) Accrued expenses and reserves 240 106 Prepaid expenses (11 ) (23 ) Customer deposits 183 216 Tax credit 750 824 Charitable Contributions 26 37 Lease Accounting 2 (2 ) Other, net 2 2 Deferred tax asset, net 3,692 4,797 Valuation allowance (3,692 ) (4,797 ) Deferred tax asset, net of valuation allowance - - |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Organization and Summary of Significant Accounting Policies (Details) [Line Items] | ||
Allowance for doubtful accounts receivable, current | $ 69 | $ 24 |
Bad debt expense (recoveries) | 78 | 24 |
Inventory units designated for customer demonstrations | 66 | 0 |
Intangible assets | 88 | 0 |
Advertising and promotion expense | $ 460 | $ 515 |
U.S. [Member] | ||
Organization and Summary of Significant Accounting Policies (Details) [Line Items] | ||
Revenue percentage | 95.00% | 97.00% |
U.S. [Member] | Customer [Member] | ||
Organization and Summary of Significant Accounting Policies (Details) [Line Items] | ||
Revenue percentage | 57.00% | 40.00% |
Number of customers | 1 | |
U.S. [Member] | Customer [Member] | Accounts Receivable [Member] | ||
Organization and Summary of Significant Accounting Policies (Details) [Line Items] | ||
Revenue percentage | 94.00% | 63.00% |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies (Details) - Schedule of disaggregation of revenue - Revenue [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Organization and Summary of Significant Accounting Policies (Details) - Schedule of disaggregation of revenue [Line Items] | ||
Total Revenue | $ 27,042 | $ 9,577 |
Product revenue [Member] | ||
Organization and Summary of Significant Accounting Policies (Details) - Schedule of disaggregation of revenue [Line Items] | ||
Total Revenue | 22,217 | 5,449 |
Service revenue [Member] | ||
Organization and Summary of Significant Accounting Policies (Details) - Schedule of disaggregation of revenue [Line Items] | ||
Total Revenue | $ 4,825 | $ 4,128 |
Organization and Summary of S_5
Organization and Summary of Significant Accounting Policies (Details) - Schedule of deferred revenue - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Organization and Summary of Significant Accounting Policies (Details) - Schedule of deferred revenue [Line Items] | ||
Balance, beginning of period | $ 2,071 | $ 2,531 |
Revenue recognized | (3,136) | (2,860) |
Amounts invoiced | 2,499 | 2,400 |
Balance, end of period | 1,434 | 2,071 |
Product [Member] | ||
Organization and Summary of Significant Accounting Policies (Details) - Schedule of deferred revenue [Line Items] | ||
Balance, beginning of period | 23 | |
Revenue recognized | (23) | |
Amounts invoiced | 97 | 23 |
Balance, end of period | 97 | 23 |
Service [Member] | ||
Organization and Summary of Significant Accounting Policies (Details) - Schedule of deferred revenue [Line Items] | ||
Balance, beginning of period | 2,048 | 2,531 |
Revenue recognized | (3,113) | (2,860) |
Amounts invoiced | 2,402 | 2,377 |
Balance, end of period | $ 1,337 | $ 2,048 |
Organization and Summary of S_6
Organization and Summary of Significant Accounting Policies (Details) - Schedule of estimated service revenue recognized $ in Thousands | Dec. 31, 2021USD ($) |
Schedule of estimated service revenue recognized [Abstract] | |
2022 | $ 1,075 |
2023 | 138 |
2024 | 81 |
2025 | 23 |
2026 | 20 |
Total | $ 1,337 |
Organization and Summary of S_7
Organization and Summary of Significant Accounting Policies (Details) - Schedule of effect antidilutive - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Restricted shares [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Restricted shares | $ 106 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Aug. 03, 2020 | |
Acquisitions [Abstract] | ||||
Aggregate purchase price | $ 229 | $ 999 | ||
Bargain purchase gain | 588 | |||
Property and equipment acquired | $ 257 | |||
Impairment charges on intangible assets | 88 | |||
Loss on sale of property and equipment | $ 47 |
Acquisitions (Details) - Schedu
Acquisitions (Details) - Schedule of assets acquired and liabilities assumed $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Schedule of assets acquired and liabilities assumed [Abstract] | |
Accounts receivable | $ 39 |
Property and equipment | 528 |
Finite-lived intangible assets: | |
Trade names | 22 |
Customer relationships | 87 |
Other liabilities assumed | (88) |
Bargain purchase gain | $ 588 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property and Equipment [Abstract] | ||
Depreciation expense | $ 509 | $ 613 |
Accumulated depreciation on asset disposals | $ 88 | $ 74 |
Property and Equipment (Detai_2
Property and Equipment (Details) - Schedule of property and equipment - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 2,816 | $ 3,220 |
Less accumulated depreciation | (2,211) | (1,864) |
Property and Equipment, Net | 605 | 1,356 |
Operations and rental equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,760 | 2,178 |
Property, plant and equipment, useful Life | 3 years | |
Tradeshow and demo equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 927 | 923 |
Property, plant and equipment, useful Life | 3 years | |
Computer equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 129 | $ 119 |
Property, plant and equipment, useful Life | 3 years |
Intangibles (Details)
Intangibles (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Intangibles [Abstract] | ||
Amortization expense | $ 104,000 | $ 108,000 |
Intangibles (Details) - Schedul
Intangibles (Details) - Schedule of intangible assets - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Beginning balance | $ 338 | $ 337 |
Acquired assets | 109 | |
Impaired assets | (88) | |
Amortization expense | (104) | (108) |
Ending balance | 146 | 338 |
Patent Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Beginning balance | 241 | 337 |
Acquired assets | ||
Impaired assets | ||
Amortization expense | (96) | (96) |
Ending balance | 145 | 241 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Beginning balance | 84 | |
Acquired assets | 87 | |
Impaired assets | (81) | |
Amortization expense | (2) | (3) |
Ending balance | 1 | 84 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Beginning balance | 13 | |
Acquired assets | 22 | |
Impaired assets | (7) | |
Amortization expense | (6) | (9) |
Ending balance | $ 13 |
Intangibles (Details) - Sched_2
Intangibles (Details) - Schedule of estimated amortization expense $ in Thousands | Dec. 31, 2021USD ($) |
Schedule of estimated amortization expense [Abstract] | |
2022 | $ 97 |
2023 | 48 |
2024 | $ 1 |
Debt (Details)
Debt (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Apr. 20, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |||
Revolving credit facility, description | The Company has a revolving credit facility that, through April 2020, provided for maximum borrowings equal to the lesser of (a) the $5 million commitment amount or (b) a borrowing base equal to 80% of eligible accounts receivable plus a $2.5 million non-formula sublimit. In October 2019, the term of the facility was extended through January 29, 2020; in January 2020, the term was further extended through April 28, 2020; and in April 2020, the term was further extended to April 1, 2022, and the maximum borrowings were increased to the lesser of (a) the $10 million commitment amount or (b) the borrowing base plus a $3 million non-formula sublimit. | ||
Interest on borrowing, description | Interest on any borrowings, at Prime plus 0.75% (4.00% at December 31, 2021) and Prime plus 1.50% on non-formula borrowings (4.75% at December 31, 2021) is payable monthly, and the outstanding principal and interest are due on the maturity date. | ||
Line of credit facility, unused capacity, commitment fee percentage | 0.25% | ||
Employee compensation | $ 1,022,785 | $ 415,000 | $ 386,000 |
Maturity, description | The loan matures in April 2022 and provides for interest at the rate of 1% per annum. | ||
Payroll and other expenses | $ 757,782 | ||
Outstanding balance | $ 51,000 | $ 267,000 |
Product Warranties (Details) -
Product Warranties (Details) - Schedule of changes in product warranty liability - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of changes in product warranty liability [Abstract] | ||
Balance, beginning of period | $ 187 | $ 187 |
Warranties accrued during the period | 530 | 296 |
Payments on warranty claims | (209) | (296) |
Balance, end of period | $ 508 | $ 187 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Rou asset non-cash | $ 805,000 | |
ROU assets reduced value | 907,000 | |
ROU assets reduced related value | 655,000 | |
lease | 324,000 | $ 324,000 |
Operating lease liabilities | 331,000 | 359,000 |
Operating lease cost | 335,000 | 373,000 |
Payments to suppliers | 5,900,000 | 2,500,000 |
Accounts payable and accrued expenses | $ 1.2 | $ 697 |
Manufacturing agreement term | 3 years | |
Agreement renews successive term | 1 year |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - Schedule of lease payments for operating leases $ in Thousands | Dec. 31, 2021USD ($) |
Schedule of lease payments for operating leases [Abstract] | |
2022 | $ 183 |
Total undiscounted operating leases payments | 183 |
Less: Imputed interest | (9) |
Present Value of Operating Lease Liabilities | $ 174 |
Other Information | |
Weighted-average remaining lease term | 8 months 12 days |
Weighted-average discount rate | 5.00% |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits (Details) [Line Items] | ||
Expenses related to employee benefit plan | $ 98 | $ 125 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | Feb. 01, 2020 | Jul. 21, 2021 | Apr. 20, 2020 | Dec. 31, 2016 | Dec. 31, 2021 | Dec. 31, 2020 |
Stockholders' Equity (Details) [Line Items] | ||||||
Common stock, authorized | 50,000,000 | 50,000,000 | ||||
Common stock, issued | 16,694,311 | 16,564,311 | ||||
Common stock,outstanding | 16,617,274 | 16,491,103 | ||||
Initial public offering term | 3 years | |||||
Warrant exercise price (in Dollars per share) | $ 6.75 | |||||
Restricted stock issued | 35,000 | 130,000 | ||||
Fair value of per share (in Dollars per share) | $ 4.11 | $ 3.84 | ||||
Vesting period | 4 years | 3 years | ||||
Restricted vest percentage | 25.00% | 25.00% | ||||
Restricted grant percentage | 25.00% | |||||
Reduction of stock compensation expense value forfeited (in Dollars) | $ 0 | $ 0 | ||||
Unrecognized stock compensation expense (in Dollars) | 403 | |||||
Recognized over weighted average | 2 years 3 months 3 days | |||||
Employee Benefits and Share-based Compensation (in Dollars) | $ 1,022,785 | $ 415,000 | 386,000 | |||
Stock options intrinsic value (in Dollars) | $ 382,000 | $ 0 | ||||
Treasury stock | 77,037 | 73,208 | ||||
2016 Equity Incentive Plan [Member] | ||||||
Stockholders' Equity (Details) [Line Items] | ||||||
Number of authorized shares under the plan | 397,473 | |||||
2017 Equity Incentive Plan [Member] | ||||||
Stockholders' Equity (Details) [Line Items] | ||||||
Number of authorized shares under the plan | 500,000 | |||||
Initial Public Offering [Member] | ||||||
Stockholders' Equity (Details) [Line Items] | ||||||
Number of warrant outstanding | 2,300,000 | |||||
Warrant exercise price (in Dollars per share) | $ 6.75 | |||||
Underwriters description | In addition, the underwriters of the IPO received four-year warrants to purchase up to 138,000 units, consisting of one share of common stock and one warrant to purchase one share of common stock. The warrants, with an exercise price of $6.75 per unit, expired on June 2, 2021. | |||||
Number of warrant granted | 138,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - Schedule of warrant activity - Warrants [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Class of Warrant or Right [Line Items] | ||
Number of Warrants, Outstanding at beginning | 138,000 | 2,032,187 |
Weighted Average Exercise Price, Outstanding at beginning | $ 6.75 | $ 6.75 |
Weighted Average Remaining Contractual Term, Outstanding at beginning | 6 months 3 days | |
Number of Warrants, Outstanding at ending | 138,000 | |
Weighted Average Exercise Price, Outstanding at ending | $ 6.75 | |
Weighted Average Remaining Contractual Term, Outstanding at ending | 5 months 8 days | |
Number of Warrants, Exercisable at end | 138,000 | |
Weighted Average Exercise Price, Exercisable at ending | $ 6.75 | |
Weighted Average Remaining Contractual Term, Exercisable at ending | 5 months 8 days | |
Number of Warrants, Granted | ||
Weighted Average Exercise Price, Granted | ||
Weighted Average Remainning Contractual Term, Granted | ||
Number of Warrants, Exercised | (83) | |
Weighted Average Exercise Price, Exercised | ||
Weighted Average Remainning Contractual Term. Exercised | ||
Number of Warrants, Expired | (138,000) | (1,894,104) |
Weighted Average Exercise Price, Expired | $ 6.75 | |
Weighted Average Remainning Contractual Term, Expired |
Stockholders' Equity (Details_2
Stockholders' Equity (Details) - Schedule of restricted activity - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of restricted activity [Abstract] | ||
Restricted Stock, balance at beginning | 37,500 | 80,417 |
Weighted-Average Grant Date Fair Value, balance at beginning | $ 4.17 | $ 5.7 |
Restricted Stock, Granted | 130,000 | 35,000 |
Weighted-Average Grant Date Fair Value, Granted | $ 3.84 | $ 4.11 |
Restricted Stock, Vested | (43,750) | (66,667) |
Weighted-Average Grant Date Fair Value, Vested | $ 3.96 | $ 5.24 |
Restricted Stock, Forfeited | (11,250) | |
Weighted-Average Grant Date Fair Value, Forfeited | $ 8.58 | |
Restricted Stock, balance at ending | 123,750 | 37,500 |
Weighted-Average Grant Date Fair Value, balance at ending | $ 3.9 | $ 4.17 |
Stockholders' Equity (Details_3
Stockholders' Equity (Details) - Schedule of option activity - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of option activity [Abstract] | ||
Number of Options, Outstanding at beginning | 229,334 | 229,334 |
Weighted- Average Exercise Price, Outstanding at beginning | $ 5.55 | $ 5.55 |
Weighted- Average Remaining Contractual Term (In Years), Outstanding at beginning | 8 years 25 days | |
Number of Options, Outstanding at ending | 229,334 | 229,334 |
Weighted- Average Exercise Price, Outstanding at ending | $ 5.55 | $ 5.55 |
Weighted- Average Remaining Contractual Term (In Years), Outstanding at ending | 6 years 25 days | 7 years 25 days |
Number of Options, Exercisable – December 31, 2021 | 229,334 | 229,334 |
Weighted- Average Exercise Price, Exercisable – December 31, 2021 | $ 5.55 | $ 5.55 |
Weighted- Average Remaining Contractual Term (In Years), Exercisable – December 31, 2021 | 6 years 25 days | |
Number of Options, Exercisable – December 31, 2020 | 229,334 | |
Weighted- Average Exercise Price, Exercisable – December 31, 2020 | $ 5.55 | |
Weighted- Average Remaining Contractual Term (In Years), Exercisable – December 31, 2020 | 7 years 25 days | |
Number of Options, Granted | ||
Weighted- Average Exercise Price, Granted | ||
Weighted- Average Remaining Contractual Term (In Years), Granted | ||
Number of Options, Exercised | ||
Weighted- Average Exercise Price, Exercised | ||
Weighted- Average Remaining Contractual Term (In Years), Exercised | ||
Number of Options, Expired | ||
Weighted- Average Exercise Price, Expired | ||
Weighted- Average Remaining Contractual Term (In Years), Expired |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Federal tax net operating loss carryforwards | $ 8,100,000 | ||
State net operating loss carryforwards | $ 8,900,000 | ||
Operating loss carryforward, description | The federal NOL generated prior to 2018 of $3.2 million was fully utilized in 2021. The federal NOL generated after December 31, 2018 will never expire but can only reduce 80% of taxable income in future years. | ||
Tax credit carryforwards | $ 750,000 | ||
Change in valuation allowance | $ 1,100,000 | $ 1,500,000 | $ 1,500,000 |
Principal amount | $ 757,782 |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of income tax provision (benefit) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of income tax provision (benefit) [Abstract] | ||
Current – federal | ||
Current – state | ||
Deferred – federal | $ (854) | (1,279) |
Deferred – international | (236) | (199) |
Deferred – international | (15) | (61) |
Total | (1,105) | (1,539) |
Change in valuation allowance | $ 1,105 | 1,539 |
Income tax provision (benefit) |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of expected tax expense (benefit) based on statutory rate is reconciled with actual tax expense (benefit) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of expected tax expense (benefit) based on statutory rate is reconciled with actual tax expense (benefit) [Abstract] | ||
U.S. federal statutory rate | 21.00% | (21.00%) |
State taxes, net of federal benefit | 4.90% | (5.80%) |
Foreign rate differential | 0.00% | (0.10%) |
Permanent differences | 0.10% | (1.90%) |
Change in tax rates | 0.90% | 0.30% |
Return-to-provision adjustments | (0.10%) | 0.60% |
Tax credits | 0.00% | 5.20% |
Other | ||
Change in valuation allowance | (26.80%) | 22.50% |
Income tax provision (benefit) | 0.00% | 0.00% |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of company's net deferred tax asset - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of company's net deferred tax asset [Abstract] | ||
Net operating losses | $ 2,336 | $ 3,683 |
Stock-based compensation | 274 | 190 |
Depreciation and amortization | (110) | (236) |
Accrued expenses and reserves | 240 | 106 |
Prepaid expenses | (11) | (23) |
Customer deposits | 183 | 216 |
Tax credit | 750 | 824 |
Charitable Contributions | 26 | 37 |
Lease Accounting | 2 | (2) |
Other, net | 2 | 2 |
Deferred tax asset, net | 3,692 | 4,797 |
Valuation allowance | (3,692) | (4,797) |
Deferred tax asset, net of valuation allowance |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] $ in Millions | 1 Months Ended |
Feb. 25, 2022USD ($) | |
Subsequent Events (Details) [Line Items] | |
Product, net book value | $ 1.6 |
Cash | $ 15 |