Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 10, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | AmpliTech Group, Inc. | |
Entity Central Index Key | 0001518461 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Jun. 30, 2021 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2021 | |
Entity Common Stock Shares Outstanding | 9,343,671 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-40069 | |
Entity Incorporation State Country Code | NV | |
Entity Tax Identification Number | 27-4566352 | |
Entity Address Address Line 1 | 620 Johnson Avenue | |
Entity Address City Or Town | Bohemia | |
Entity Address State Or Province | NY | |
Entity Address Postal Zip Code | 11716 | |
City Area Code | 631 | |
Local Phone Number | 521-7831 | |
Security 12b Title | Common Stock, par value $0.001 per share | |
Trading Symbol | AMPG | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 27,624,397 | $ 199,536 |
Accounts receivable, net | 600,679 | 357,055 |
Marketable Securities | 1,109,638 | 0 |
Inventories, net | 806,224 | 517,338 |
Prepaid expenses | 416,066 | 322,124 |
Total Current Assets | 30,557,004 | 1,396,053 |
Property and equipment, net | 673,026 | 289,251 |
Right of use operating lease assets | 300,367 | 347,156 |
Intangible assets, net | 611,856 | 632,209 |
Goodwill | 120,136 | 120,136 |
Investment | 150,000 | 0 |
Security deposits | 26,707 | 26,707 |
Total Assets | 32,439,096 | 2,811,512 |
Current Liabilities | ||
Accounts payable and accrued expenses | 352,478 | 113,541 |
Customer deposits | 128,080 | 15,300 |
Current portion of financing lease | 32,877 | 32,084 |
Current portion of operating lease | 86,997 | 87,930 |
Current portion of notes payable | 135,456 | 205,592 |
Line of credit | 0 | 200,000 |
Total Current Liabilities | 735,888 | 654,447 |
Long Term Liabilities | ||
Finance lease, net of current portion | 34,520 | 51,159 |
Operating lease, net of current portion | 222,218 | 267,050 |
Notes payable, net of current portion | 269,424 | 1,398,574 |
Total Liabilities | 1,262,050 | 2,371,230 |
Commitments and Contingencies | 0 | 0 |
Stockholders' Equity | ||
Series A convertible preferred stock, par value $0.001, 1,000,000 shares authorized, 0 issued and outstanding | 0 | 0 |
Common Stock, par value $0.001, 500,000,000 shares authorized, 9,343,671 and 4,839,448 shares issued and outstanding, respectively | 9,344 | 4,839 |
Additional paid-in capital | 34,388,700 | 2,303,815 |
Accumulated deficit | (3,220,998) | (1,868,372) |
Total Stockholders' Equity | 31,177,046 | 440,282 |
Total Liabilities and Stockholders' Equity | $ 32,439,096 | $ 2,811,512 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Stockholders' Equity | ||
Common stock, shares par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 9,343,671 | 4,839,448 |
Common stock, shares outstanding | 9,343,671 | 4,839,448 |
Preferred stock, shares par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Series A Convertible Preferred Shares [Member] | ||
Stockholders' Equity | ||
Preferred stock, shares par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Condensed Consolidated Statements of Operations (Unaudited) | ||||
Revenue | $ 1,024,410 | $ 660,699 | $ 1,497,386 | $ 1,416,647 |
Cost of goods sold | 679,787 | 434,711 | 1,097,781 | 951,345 |
Gross Profit | 344,623 | 225,988 | 399,605 | 465,302 |
Selling, general and administrative expense | 1,043,550 | 442,457 | 1,952,105 | 981,018 |
Loss From Operations | (698,927) | (216,469) | (1,552,500) | (515,716) |
Other Income (Expenses) | ||||
Gain on extinguishment of debt | 232,200 | 0 | 232,200 | 0 |
Unrealized gain (loss) on investments | 672 | 0 | 672 | 0 |
Interest expense, net | (6,640) | (26,799) | (32,998) | (50,513) |
Total other income (expense) | 226,232 | (26,799) | 199,874 | (50,513) |
Loss Before Income Taxes | (472,695) | (243,268) | (1,352,626) | (566,229) |
Provision For Income Taxes | 0 | 0 | 0 | 0 |
Net Loss | $ (472,695) | $ (243,268) | $ (1,352,626) | $ (566,229) |
Net Loss Per Share; | ||||
Basic | $ (0.05) | $ (0.10) | $ (0.19) | $ (0.23) |
Diluted | $ (0.05) | $ (0.10) | $ (0.19) | $ (0.23) |
Weighted Average Shares Outstanding; | ||||
Basic | 8,863,517 | 2,476,816 | 7,225,036 | 2,476,816 |
Diluted | 8,863,517 | 2,476,816 | 7,225,036 | 2,476,816 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash Flows from Operating Activities: | ||
Net Loss | $ (1,352,626) | $ (566,229) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 50,114 | 43,595 |
Amortization of prepaid consulting | 134,778 | 37,108 |
Amortization of right-of-use operating lease asset | 46,789 | 66,092 |
Stock based compensation | 188,550 | 23,695 |
Gain on forgiveness of debt | (232,200) | 0 |
Change in fair value of marketable securities | (672) | |
Changes in Operating Assets and Liabilities: | ||
Accounts receivable | (243,624) | 217,335 |
Inventories | (288,886) | (87,556) |
Prepaid expenses | (196,498) | (7,873) |
Accounts payable and accrued expenses | 206,715 | 19,819 |
Operating lease liability | (45,765) | (63,656) |
Customer deposits | 112,780 | 50,934 |
Net cash used in operating activities | (1,620,545) | (266,736) |
Cash Flows from Investing Activities: | ||
Purchase of equipment | (413,536) | (9,479) |
Purchase of marketable securities , net | (1,108,966) | 0 |
Investment | (150,000) | 0 |
Net cash used in investing activities | (1,672,502) | (9,479) |
Cash Flows from Financing Activities: | ||
Proceeds received from private placement, net of expenses | 20,976,344 | 0 |
Proceeds received from public offering, net of expenses | 9,449,597 | |
Proceeds received from exercise of warrants | 1,474,899 | 0 |
Repayment of line of credit, net | (200,000) | 0 |
Repayments on finance lease | (15,846) | (15,225) |
Proceeds from notes payable | 0 | 232,200 |
Repayment of notes payable | (967,086) | (82,926) |
Net cash provided by financing activities | 30,717,908 | 134,049 |
Net change in cash and cash equivalents | 27,424,861 | (142,166) |
Cash and Cash Equivalents, Beginning of Period | 199,536 | 574,712 |
Cash and Cash Equivalents, End of Period | 27,624,397 | 432,546 |
Supplemental disclosures: | ||
Cash paid for interest expense | 38,400 | 46,665 |
Cash paid for income taxes | 0 | 0 |
Non-Cash Investing and Financing Activities | ||
Promissory note on equipment | 0 | 68,510 |
Finance agreement in exchange for prepaid assets | 32,222 | 0 |
Equipment received for prepaid assets | $ 0 | $ 58,192 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Total | Common Stock | Common Stock Payable | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Series A Convertible Preferred Shares [Member] |
Balance, shares at Dec. 31, 2019 | 49,086,326 | 1,000 | ||||
Balance, amount at Dec. 31, 2019 | $ 1,093,673 | $ 49,086 | $ 24,480 | $ 1,862,919 | $ (842,813) | $ 1 |
Stock based compensation | 23,695 | 0 | 0 | 23,695 | 0 | 0 |
Net loss for the six months ended June 30, 2020 | (566,229) | $ 0 | 0 | 0 | (566,229) | $ 0 |
Balance, shares at Jun. 30, 2020 | 49,086,326 | 1,000 | ||||
Balance, amount at Jun. 30, 2020 | 551,139 | $ 49,086 | 24,480 | 1,886,614 | (1,409,042) | $ 1 |
Balance, shares at Mar. 31, 2020 | 49,086,326 | 1,000 | ||||
Balance, amount at Mar. 31, 2020 | 782,559 | $ 49,086 | 24,480 | 1,874,766 | (1,165,774) | $ 1 |
Stock based compensation | 11,848 | 0 | 0 | 11,848 | 0 | 0 |
Net loss for the six months ended June 30, 2020 | (243,268) | $ 0 | 0 | 0 | (243,268) | $ 0 |
Balance, shares at Jun. 30, 2020 | 49,086,326 | 1,000 | ||||
Balance, amount at Jun. 30, 2020 | 551,139 | $ 49,086 | 24,480 | 1,886,614 | (1,409,042) | $ 1 |
Balance, shares at Dec. 31, 2020 | 4,839,448 | |||||
Balance, amount at Dec. 31, 2020 | 440,282 | $ 4,839 | 2,303,815 | (1,868,372) | ||
Stock based compensation | 188,550 | 188,550 | ||||
Net loss for the six months ended June 30, 2020 | (1,352,626) | $ 0 | 0 | 0 | (1,352,626) | 0 |
Common stock issued in private placement, shares | 2,715,000 | |||||
Common stock issued in private placement, amount | 20,976,344 | $ 2,715 | 0 | 20,973,629 | 0 | 0 |
Common stock issued in public offering, shares | 1,571,142 | |||||
Common stock issued in public offering, amount | 9,449,597 | $ 1,578 | 9,448,019 | |||
Additional shares issued in connection to reverse split due to rounding, shares | 1,381 | |||||
Additional shares issued in connection to reverse split due to rounding, amount | 0 | $ 1 | (1) | |||
Common stock issued upon exercise of warrants, shares | 210,700 | |||||
Common stock issued upon exercise of warrants, amount | 1,474,899 | $ 211 | 0 | 1,474,688 | 0 | |
Balance, shares at Jun. 30, 2021 | 9,343,671 | |||||
Balance, amount at Jun. 30, 2021 | 31,177,046 | $ 9,344 | 0 | 34,388,700 | (3,220,998) | 0 |
Balance, shares at Mar. 31, 2021 | 6,579,771 | |||||
Balance, amount at Mar. 31, 2021 | 10,196,548 | $ 6,580 | 0 | 12,938,271 | (2,748,303) | 0 |
Stock based compensation | 134,550 | 0 | 0 | 134,550 | 0 | 0 |
Net loss for the six months ended June 30, 2020 | (472,695) | $ 0 | 0 | 0 | (472,695) | 0 |
Common stock issued in private placement, shares | 2,715,000 | |||||
Common stock issued in private placement, amount | 20,976,344 | $ 2,715 | 20,973,629 | |||
Common stock issued upon exercise of warrants, shares | 48,900 | |||||
Common stock issued upon exercise of warrants, amount | 342,299 | $ 49 | 342,250 | |||
Balance, shares at Jun. 30, 2021 | 9,343,671 | |||||
Balance, amount at Jun. 30, 2021 | $ 31,177,046 | $ 9,344 | $ 0 | $ 34,388,700 | $ (3,220,998) | $ 0 |
Organization and Business Descr
Organization and Business Description | 6 Months Ended |
Jun. 30, 2021 | |
Organization and Business Description | |
Note 1. Organization and Business Description | (1) Organization and Business Description AmpliTech Group Inc. (“AmpliTech” or “the Company”) was incorporated under the laws of the State of Nevada on December 30, 2010. On August 13, 2012, the Company acquired AmpliTech Inc., by issuing 833,750 shares of the Company’s common stock to the shareholders of AmpliTech Inc. in exchange for 100% of the outstanding shares of AmpliTech Inc. (“the Share Exchange”). After the Share Exchange, the selling shareholders owned 60,000 shares of the outstanding 889,250 shares of Company common stock, resulting in a change in control. Accordingly, the transaction was accounted for as a reverse acquisition in which AmpliTech, Inc. was deemed to be the accounting acquirer, and the operations of the Company were consolidated for accounting purposes. The capital balances have been retroactively adjusted to reflect the reverse acquisition. AmpliTech designs, engineers and assembles microwave component based low noise amplifiers (“LNA”) that meet individual customer specifications. Application of the Company’s proprietary technology results in maximum frequency gain with minimal background noise distortion as required by each customer. The Company has both domestic and international customers in such industries as aerospace, governmental, defense and commercial satellite. On September 12, 2019, AmpliTech Group Inc. acquired the assets of Specialty Microwave Corporation (SMW), a privately held company based in Ronkonkoma, NY. The purchase included all inventory, orders, customers, property and equipment, and all intellectual property. The assets also included all eight team members of SMW. Specialty designs and manufactures passive microwave components and related subsystems that meet individual customer specifications for both domestic and international customers for use in satellite communication ground networks. On February 17, 2021, Amplitech Group Inc., common stock and warrants under the symbols “AMPG” and “AMPGW”, respectively, commenced trading on NASDAQ. A reverse split of the outstanding common stock at a 1-for-20 ratio became effective February 17, 2021 as of 12:01 a.m., Eastern Time. In connection with the public offering, 1,371,428 units at an offering price of $7.00 per unit were sold. Each unit issued in the offering consisted of one share of common stock and one warrant. The COVID-19 Pandemic The COVID-19 pandemic has caused significant worldwide disruption throughout the course of 2020 and into 2021 and resulted in the imposition of various public and private sector measures to try to contain the virus, on a local, state, national and international level, such as travel bans and restrictions, quarantines, shelter-in-place/stay-at-home and social distancing orders, and shutdowns. These measures have temporarily impacted our workforce and operations and some of the operations of our customers, and vendors, suppliers, and partners. The ultimate impact and efficacy of government measures and potential future measures is currently unknown. There is uncertainty regarding the business impacts from such measures and potential future measures. While we have been able to continue our operations through a combination of work-from-home and social distancing policies implemented to protect employees, these measures have resulted in reduced workforce availability. We resumed operations on May 5, 2020, with the CDC safeguard guidelines in place. Difficulties in communicating with our customers’ employees and delivery delays due to COVID-19 may impact our ability to meet customer demand, and thus decrease revenues into 2021 and negatively impact our financial condition and results of operations. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Summary of Significant Accounting Policies | |
Note 2. Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies Basis of Accounting The accompanying condensed consolidated financial statements have been prepared using the accrual basis of accounting. The accompanying unaudited interim condensed consolidated financial statements of AmpliTech Group, Inc. (“Group” or the “Company”) have been prepared by management in accordance with accounting principles generally accepted in the United States of America for interim financial information and pursuant to rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all information and footnotes required by generally accepted accounting principles for annual audited financial statements. In the opinion of management, all adjustments of a normal recurring nature, considered necessary for a fair presentation have been included. The results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021. The accompanying unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes related thereto for the years ended December 31, 2020 and 2019 included in Form 10-K filed with the SEC. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the periods presented. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considers deposits that can be redeemed on demand and investments and marketable securities that have original maturities of less than three months, when purchased, to be cash equivalents. As of June 30, 2021, the Company’s cash and cash equivalents were deposited in three financial institutions. Accounts Receivable Trade accounts receivables are recorded at the net invoice value and are not interest bearing. The Company provides an allowance for doubtful accounts equal to the estimated uncollectible amounts. The Company’s estimate is based on historical collection experience and a review of the current status of accounts receivable. It is reasonably possible that the Company’s estimate of the allowance for doubtful accounts will change in the future. An allowance of $113,670 and $125,400 has been recorded at June 30, 2021 and December 31, 2020. Marketable Securities The Company’s investments have been classified as available-for-sale securities in accordance with U.S. GAAP. Marketable securities are categorized on the consolidated condensed balance sheet as Marketable Securities , Inventories Inventories, which consist primarily of raw materials, work in progress and finished goods, is stated at the lower of cost (first-in, first-out basis) or market (net realizable value). Inventory quantities and related values are analyzed at the end of each fiscal quarter to determine those items that are slow moving and obsolete. An inventory reserve is recorded for those items determined to be slow moving with a corresponding charge to cost of goods sold. Inventory items that are determined obsolete are written off currently with a corresponding charge to cost of goods sold. Property and Equipment Property and equipment are recorded at cost. Depreciation is provided over the estimated useful lives of the related assets using the straight-line method for financial statement purposes. Amortization of leasehold improvements is computed using the straight-line method over the shorter of the remaining lease term or the estimated useful lives of the improvements. Property and equipment are depreciated as follows: Description Useful Life Method Office equipment 7 years Straight-line Machinery and equipment 5 to 10 years Straight-line Computer equipment 3 to 7 years Straight-line Vehicles 5 years Straight-line Long-lived assets Long lived assets, such as property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Circumstances which could trigger a review include, but are not limited to; significant decrease in the market price of the asset; significant adverse changes in the business climate or legal factors; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed of significantly before the end of its estimated useful life. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount of fair value less costs to sell and would no longer be depreciated. The depreciable basis of assets that are impaired and continue in use is their respective fair values. Investment Policy-Cost Method Investments consist of non-controlling equity investments in privately held companies. The Company elected the measurement alternative for these investments without readily determinable fair values and for which the Company does not control or have the ability to exercise significant influence over operating and financial policies. These investments are accounted for under the cost method of accounting. Under the cost method of accounting, the non-marketable equity securities are carried at cost less any impairment, adjusted for observable price changes of similar investments of the same issuer. Fair value is not estimated for these investments if there are no identified events or changes in circumstances that may have an effect on the fair value of the investment. Under this method, the Company’s share of the earnings or losses of such investee companies is not included in the consolidated balance sheet or consolidated statements of operations. The Company held $150,000 of investments without readily determinable fair values at June 30, 2021 (see Note 8). These investments are included in other assets on the condensed consolidated balance sheets. There were no impairment charges for the three and six months ended June 30, 2021. Goodwill and Intangible Assets Intangible assets include goodwill, trademarks, intellectual property and customer base acquired through the asset purchase of Specialty Microwave. The Company accounts for Other Intangible Assets under the guidance of ASC 350, “Intangibles-Goodwill and Other.” Under the guidance, other intangible assets with definite lives are amortized over their estimated useful lives. Intangible assets with indefinite lives are tested annually for impairment. Goodwill is not amortized. We test goodwill balances for impairment annually at December 31 or whenever impairment indicators arise. Leases On January 1, 2019, we adopted ASU No. 2016-02, “Leases (Topic 842),” which requires leases with durations greater than twelve months to be recognized on the balance sheet. We adopted this standard using the modified retrospective approach with an effective date as of the beginning of January 2019. Prior year financial statements were not restated under the new standard. We lease property and equipment under finance and operating leases. For leases with terms greater than 12 months, we record the related asset and obligation at the present value of lease payments over the lease term. The Company has elected not to separate lease and non-lease components for all property leases for the purpose of calculating ROU assets and lease liabilities. Many of our leases include rental escalation clauses, renewal options and/or termination options that are factored into our determination of lease payments when appropriate. When available, we use the rate implicit in the lease to discount lease payments to present value; however, most of our leases do not provide a readily determinable implicit rate. Therefore, we must estimate our incremental borrowing rate to discount the lease payments based on information available at lease commencement. The incremental borrowing rate is the rate of interest that a lessee would have to pay to borrow on a collateralized basis considering such factors as lease term and economic environment risks. Revenue Recognition We sell our products through a combination of a direct sales force in the United States and independent sales representatives in international markets. Revenue is recognized when a customer obtains control of promised goods based on the consideration we expect to receive in exchange for these goods. This core principle is achieved through the following steps: Identify the contract with the customer Identify the performance obligations in the contract Our performance obligations generally relate to delivering single-use products to a customer, subject to the shipping terms of the contract. Limited warranties are provided, under which we typically accept returns and provide either replacement parts or refunds. We do not have significant returns. We do not typically offer extended warranty or service plans. Determine the transaction price Allocate the transaction price to performance obligations in the contract Recognize revenue when or as we satisfy a performance obligation. Reserves are recorded as a reduction in net sales and are not considered material to our condensed consolidated statements of operations for the six months ended June 30, 2021 and 2020. Research and Development Research and development expenditures are charged to operations as incurred. The major components of research and development costs include consultants, outside service, and supplies. Research and development costs for the six months ended June 30, 2021 and 2020 were $ 62,962 and $ 23,715. Income Taxes The Company’s deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statement carrying amounts and tax bases of certain assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. The deferred tax assets and liabilities are classified according to the financial statement classification of the assets and liabilities generating the differences. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The ASC prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The ASC provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. At June 30, 2021, the Company had no material unrecognized tax benefits. Earnings Per Share Basic earnings per share (“EPS”) are determined by dividing the net earnings by the weighted-average number of shares of common shares outstanding during the period. Diluted EPS is determined by dividing net earnings by the weighted average number of common shares used in the basic EPS calculation plus the number of common shares that would be issued assuming conversion of all potentially dilutive securities outstanding under the treasury stock method. As of June 30, 2021 and 2020, there were 3,304,442 and 2,155,000, respectively, potentially dilutive shares that need to be considered as common share equivalents. The computation of weighted average shares outstanding and the basic and diluted earnings per share consisted of the following: Net (Loss) Income Shares Per Share Amount For the three months ended June 30, 2021: Basic EPS $ (472,695 ) 8,863,517 $ (0.05 ) Effect of dilutive stock options, warrants and series A shares Diluted EPS $ (472,695 ) 8,863,517 $ (0.05 ) For the three months ended June 30, 2020: Basic EPS $ (243,268 ) 2,476,816 $ (0.10 ) Effect of dilutive stock options, warrants and series A shares Diluted EPS $ (243,268 ) 2,476,816 $ (0.10 ) Net (Loss) Income Shares Per Share Amount For the six months ended June 30, 2021: Basic EPS $ (1,352,626 ) 7,225,036 $ (0.19 ) Effect of dilutive stock options, warrants and series A shares Diluted EPS $ (1,352,626 ) 7,225,036 $ (0.19 ) For the six months ended June 30, 2020: Basic EPS $ (556,229 ) 2,476,816 $ (0.23 ) Effect of dilutive stock options, warrants and series A shares Diluted EPS $ (556,229 ) 2,476,816 $ (0.23 ) Fair Value of Assets and Liabilities Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined in the following categories as follows: Level 1. Level 2. Level 3. Fair Value of Marketable Securities The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is divided into the following three categories: Level 1. Level 2. Level 3. Fair value estimates of financial instruments are made at a specific point in time, based on relevant information about financial markets and specific financial instruments. As these estimates are subjective in nature, involving uncertainties and matters of significant judgment, they cannot be determined with precision. Changes in assumptions can significantly affect estimated fair value. Management is of the opinion that the Company is not exposed to significant interest or credit risks arising from financial instruments and any declines in the value of investments are temporary in nature. Money market funds and certificates of deposits are shown at cost on the balance sheet and their adjusted cost approximates their fair value. Stock-Based Compensation The Company records stock-based compensation in accordance with ASC 718, Compensation-Stock Compensation. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. Equity instruments issued to employees and the cost of the services received as consideration are measured and recognized based on the fair value of the equity instruments issued and are recognized over the employees required service period, which is generally the vesting period. Concentration of Credit Risk Financial instruments that potentially subject the company to concentration of credit risk consist primarily of cash. Accounts at each institution are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. At June 30, 2021 and December 31, 2020, the Company had $27,374,397 and $0 in excess of the FDIC insured limit, respectively. Recent Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which is intended to simplify various aspects related to accounting for income taxes. This ASU removes certain exceptions to the general principles in Topic 740 and clarifies and amends existing guidance to improve consistent application. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. We are currently assessing the impact of this standard on our consolidated financial statements. On August 5, 2020, FASB issued ASU 2020-06, which is expected to reduce complexity and improve comparability of financial reporting associated with accounting for convertible instruments and contracts in an entity’s own equity. The ASU is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years, with an early adoption permitted. The adoption of this standard became effective for us on January 1, 2021 and did not have a material impact on our consolidated financial statements. We do not expect the adoption of these or other recently issued accounting pronouncements to have a significant impact on our results of operation, financial position or cash flow. |
Revenues
Revenues | 6 Months Ended |
Jun. 30, 2021 | |
Revenues | |
Note 3. Revenues | (3) Revenues The following table presents sales disaggregated based on geographic regions and for the three and six months ended: For the three months ended For the six months ended June 30, June 30, June 30, June 30, 2021 2020 2021 2020 Domestic sales $ 857,630 $ 553,469 $ 1,260,141 $ 1,173,671 International sales 167,780 107,230 237,245 242,976 Total sales $ 1,024,410 $ 660,699 $ 1,497,386 $ 1,416,647 |
Marketable Securities
Marketable Securities | 6 Months Ended |
Jun. 30, 2021 | |
Marketable Securities | |
Note 4. Marketable Securities | (4) Marketable Securities The following table is a summary of marketable securities at June 30, 2021: Amortized Gross realized Gross unrealized Estimated Cost Gain Loss Fair Value Equities 958,296 6,994 (5,822 ) 959,468 Fixed Income 100,950 10 100,960 Other 49,720 (510 ) 49,210 Total Securities $ 1,108,966 $ 7,004 $ (6,332 ) $ 1,109,638 Cash and cash equivalents at June 30, 2021 was $3,888,974. The disclosed instruments above are considered a level 1 instrument. When evaluating an investment for impairment, the Company reviews factors including the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer, changes in market interest rates and whether it is more likely than not the Company will be required to sell the investment before recovery of the investment’s cost basis. As of June 30, 2021, the Company does not consider any of its investments to be impaired. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2021 | |
Inventories | |
Note 5. Inventories | (5) Inventories The inventory value at June 30, 2021 and December 31, 2020 were as follows: June 30, December 31, 2021 2020 Raw Materials $ 493,405 $ 325,251 Work-in Progress 221,487 129,882 Finished Goods 156,606 128,479 Engineering Models 3,726 3,726 Subtotal $ 875,224 $ 587,338 Less: Reserve for Obsolescence (69,000 ) (70,000 ) Total $ 806,224 $ 517,338 |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2021 | |
Property and Equipment | |
Note 6. Property and Equipment | (6) Property and Equipment Property and Equipment consisted of the following at June 30, 2021 and December 31, 2020: June 30, December 31, 2021 2020 Lab Equipment $ 1,276,898 $ 865,414 Manufacturing Equipment 25,000 25,000 Automobiles 19,527 19,527 Furniture and Fixtures 38,217 36,165 Subtotal 1,359,642 946,106 Less: Accumulated Depreciation (686,616 ) (656,855 ) Total $ 673,026 $ 289,251 Depreciation expense for the six months ended June 30, 2021 and 2020 was $29,761 and $23,064 respectively. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2021 | |
Intangible Assets | |
Note 7. Intangible Assets | (7) Intangible Assets Goodwill The goodwill is related to the acquisition of Specialty Microwave Corp. on September 12, 2019 and is primarily related to expected improvements and technology performance and functionality, as well sales growth from future product and service offerings and new customers, together with certain intangible assets that do not qualify for separate recognition. Goodwill is generally not amortizable for tax purposes and is not amortizable for financial statement purposes. As of June 30, 2021 and December 31, 2020, goodwill was valued at $120,136. Other Intangible Assets Intangible assets with an estimated useful life of fifteen years consisted of the following at June 30, 2021: Gross Carrying Accumulated Weighted Average Amount Amortization Net Life Trade name $ 70,233 $ - $ 70,233 Indefinite Customer relationships 412,860 49,543 363,317 13.0 Intellectual Property 202,771 24,465 178,306 13.0 Total $ 685,864 $ 74,008 $ 611,856 Amortization expense for the years ended June 30, 2021 and 2020 was $20,353 and $20,531 respectively. Annual amortization of intangible assets are as follows: 2021 20,689 2022 41,042 2023 41,042 2024 41,042 2025 41,042 Thereafter 356,766 $ 541,623 |
Cost-Method Investment
Cost-Method Investment | 6 Months Ended |
Jun. 30, 2021 | |
Marketable Securities | |
Note 8. Cost-Method Investment | (8) Cost-Method Investment On June 10, 2021, the Company entered into a membership interest purchase agreement with SN2N, LLC for an aggregate purchase price of $350,000, to be paid in four tranches. Each tranche represents a 5% membership interest, and in aggregate a 20% membership interest. SN2N plans to design and manufacture an un-hackable communications channel that creates a new security paradigm; a state-of-the art signal amplification secured by intelligence-community-caliber hardware encryption. Amplitech would serve as exclusive manufacturer for the low noise amplifier product line used with this encryption technology. As of June 30, 2021, the Company has made an investment of $150,000 for a 10% membership interest. |
Line of Credit
Line of Credit | 6 Months Ended |
Jun. 30, 2021 | |
Line of Credit | |
Note 9. Line of Credit | (9) Line of Credit On November 20, 2020, AmpliTech entered into a business line of credit for $750,000 maturing on November 1, 2021. The line is evaluated monthly on a borrowing base formula advancing 75% of accounts receivables aged less than 90 days and 50% of inventory raw materials costs. The interest rate shall be based upon the Wall Street Journal Prime Rate, plus 1%. The Company has the option to prepay all or any portion of the amount owed prior to its due date without penalty. In connection with the loan, the Company granted the lender a security interest in all of its respective assets. In addition, the President and CEO, has agreed to guarantee the loan. As of June 30, 2021, and December 31, 2020, the outstanding balance on the line of credit was $0 and $200,000, respectively. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases | |
Note 10. Leases | (10) Leases We adopted ASC 842 “Leases” using the modified retrospective approach, electing the practical expedient that allows us not to restate our comparative periods prior to the adoption of the standard on January 1, 2019. As such, the disclosures required under ASC 842 are not presented for periods before the date of adoption. The following was included in our balance sheet as of June 30, 2021: Operating leases June 30, 2021 Assets ROU operating lease assets $ 300,367 Liabilities Current portion of operating lease $ 86,997 Operating lease, net of current portion $ 222,218 Total operating lease liabilities $ 309,215 Finance leases Assets Property and equipment, gross $ 157,184 Accumulated depreciation (67,364 ) Property and equipment, net $ 89,820 Liabilities Current portion of financing lease $ 32,877 Finance lease, net of current portion 34,520 Total operating lease liabilities $ 67,397 The weighted average remaining lease term and weighted average discount rate at June 30, 2021 were as follows: Weighted average remaining lease term (years) June 30, 2021 Operating leases 3.27 Finance leases 2.00 Weighted average discount rate Operating leases 5.96 % Finance leases 4.89 % Finance Lease The Company entered into a 60-month lease agreement to finance certain laboratory equipment in July 2018 with a purchase option of $1. As such, the Company has accounted for this transaction as a finance lease. The following table reconciles future minimum finance lease payments to the discounted lease liability as of June 30, 2021: 2021 18,889 2022 37,778 2023 18,889 Total lease payments 75,556 Less imputed interest (3,485 ) Less sales tax (4,674 ) Total lease obligations 67,397 Less current obligations (32,877 ) Long-term lease obligations $ 34,520 Operating Leases On December 4, 2015, the Company entered into a new operating lease agreement to rent office space in Bohemia, NY. This five-year agreement commenced February 1, 2016 with an annual rent of $50,000 and 3.75% increases in each successive lease year. On January 13, 2021, a lease rider was annexed to the original lease whereby the lease term will be extended on a month-by-month basis, commencing on February 1, 2021. On January 15, 2016, the Company entered into a five-year agreement to lease 2 copiers with and annual payment of $2,985. This lease was terminated on November 16, 2020 and the Company entered into a new five-year agreement to lease 2 copiers with an annual payment of $3,976. On September 12, 2019, the Company entered into a new operating lease agreement to rent office space in Ronkonkoma, NY. This five- year agreement commenced on September 12, 2019 with an annual rent of $90,000 and 3% increase in each successive lease year beginning in 2021. The Company has an option to buy the property during the first two years of the lease for $1,200,000 and then at fair market value for the remainder of the lease term. On November 27, 2019, the Company entered a 39-month agreement to lease an automobile with a monthly payment of $420. The following table reconciles future minimum operating lease payments to the discounted lease liability as of June 30, 2021: 2021 50,856 2022 104,497 2023 102,741 2024 79,948 2025 3,645 Total lease payments 341,687 Less imputed interest (32,472 ) Total lease obligations 309,215 Less current obligations (86,997 ) Long-term lease obligations $ 222,218 |
Notes Payable
Notes Payable | 6 Months Ended |
Jun. 30, 2021 | |
Notes Payable | |
Note 11. Notes Payable | (11) Notes Payable Promissory Note: On September 12, 2019, AmpliTech Group Inc. acquired Specialty Microwave Corporation (SMW), a privately held company based in Ronkonkoma, NY. The purchase included all inventory, orders, customers, property and equipment, and all intellectual property. The assets also included all eight team members of SMW. The total consideration paid was $1,143,633, consisting of $668,633 in cash and a $475,000 promissory note with an interest rate of 6%. Beginning November 1, 2019, payment of principal and interest shall be due payable in fifty-nine (59) monthly payments of $9,213 with a final payment due October 1, 2024 of $9,203. As of June 30, 2021, the balance of this promissory note was $332,522. Principal payments of $36,993 along with interest expense of $9,075 was paid during the six months ended June 30, 2021. The promissory note is secured by certain assets of the Company. Loan Payable: On September 12, 2019, the Company entered a $1,000,000 seven-year term loan with amortization based on a ten- year repayment schedule. The loan bears interest at a fixed rate of 6.75% with a monthly repayment amount of $11,533. On May 10, 2021, the Company paid off the balance of the seven-year term loan. In the six month period, $909,036 of principal payments and interest of $23,999 were paid. On April 20, 2020, the Company entered into a Paycheck Protection Program Promissory Note (“PPP Note”) in the principal amount of $232,200 (“PPP Loan”) from BNB Bank (“PPP Loan Lender”). The PPP Loan was obtained pursuant to the Paycheck Protection Program (“PPP”) of the Coronavirus Aid Relief and Economic Security Act (“CARES Act”) administered by the U.S Small Business Administration (“SBA”). The PPP Loan was disbursed by the PPP Loan Lender on April 20, 2020 (the “Disbursement Date). On April 20, 2021, SBA approved the PPP loan forgiveness of $232,200. In addition, on September 12, 2019, the Company was approved for a $250,000 equipment leasing facility. The Company has borrowed against the leasing facility as follows: · On December 20, 2019, the Company borrowed $58,192 to be paid over a three-year term with monthly payments of $ 1,736 at an interest rate of 5.26%. The balance as of June 30, 2021 was $28,441 Total interest expense paid during the six months ended June 30, 2021 was $845. · On May 14, 2020, the Company borrowed $27,494 to be paid over a three-year term with monthly payments of $815 at an interest rate of 4.268%. The balance as of June 30, 2021 was $17,177. Total interest expense paid during the six months ended June 30, 2021 was $447. · On June 10, 2020, the Company borrowed $41,015 to be paid over a three-year term with monthly payments of $1,216 at an interest rate of 4.278%. The balance as of June 30, 2021 was $26,740. Total interest expense paid during the six months ended June 30, 2021 was $693. Future principal payments over the term of the loans as of June 30, 2021 are as follows: Payments 2021 66,767 2022 137,623 2023 110,894 2024 89,596 Total remaining payments $ 404,880 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2021 | |
Stockholders Equity Abstract | |
Note 12. Stockholders' Equity | (12) Stockholders’ Equity The total number of shares of stock this Corporation is authorized to issue shall be five hundred one million (501,000,000) shares, par value $0.001 per share. Our authorized capital stock consists of 500,000,000 shares of common stock and 1,000,000 shares of blank check preferred stock. Preferred Stock On July 10, 2013, the Board of Directors of the Company approved a certificate of amendment to the articles of incorporation and changed the authorized capital stock of the Company to include and authorize 500,000 shares of Preferred Stock, par value $0.001 per share. On October 7, 2020, the Board of Directors of the Company approved a certificate of amendment to the articles of incorporation and changed the total number of authorized shares of Preferred Stock to be 1,000,000 shares, $0.001 per share. On October 7, 2020, our Board of Directors and our stockholders approved a resolution to amend and restate the certificate of designation of preferences, rights and limitations of Series A Convertible Preferred Stock to restate that there are 401,000 shares of the Company’s blank check Preferred Stock designated as Series A Convertible Preferred Stock. The amended and restated certificate clarifies that the Series A Convertible Preferred Stock convert at a rate of five shares of the Company’s common stock for every share of Series A Convertible Preferred Stock, and also restates that the Series A Convertible Preferred Stock shall be entitled to vote on all matters submitted to shareholders of the Company for each share of Series A Convertible Preferred Stock owned on the record date for the determination of shareholders entitled to vote on such matter or, if no such record date is established, on the date such vote is taken or any written consent of shareholders is solicited. The number of votes entitled to be cast by the holders of the Series A Convertible Preferred Stock equals that number of votes that, together with votes otherwise entitled to be cast by the holders of the Series A Convertible Preferred Stock at a meeting, whether by virtue of stock ownership, proxies, voting trust agreements or otherwise, entitle the holders to exercise 51% of all votes entitled to be cast to approve any action which Nevada law provides may or must be approved by vote or consent of the holders of common stock entitled to vote. On November 20, 2020, the Company issued 2,005,000 shares of common stock to Fawad Maqbool, the Chief Executive Officer of the Company. 5,000 of the shares were issued at par value upon the conversion of 1,000 shares of Preferred Stock. The remaining 2,000,000 of the shares were issued pursuant to the exercise by Mr. Maqbool of options to purchase 400,000 shares of Preferred Series A stock, at an exercise price of $1.03 per share, which were then converted into 2,000,000 shares of Common Stock. On December 23, 2020, the Company filed amended and restated articles of incorporation to keep the authorized shares of Common Stock at 500,000,000 and set the authorized shares of blank check preferred stock at 1,000,000. On December 23, 2020, the Company filed an amended and restated certificate of designation of preferences, rights and limitations of the Series A Convertible Preferred Stock. Common Stock: The Company originally authorized 50,000,000 shares of common stock with a par value of $0.001. Effective May 20, 2014, the Company increased its authorized shares of common stock from 50,000,000 to 500,000,000. On December 7, 2020, the Board of Directors approved a reverse stock split of the Company’s common stock, in connection with a potential listing onto NASDAQ in a ratio to be determined by the Board based on market conditions and the Company’s trading price at the time of such reverse split in the range of 1:20 to 1:200, while the authorized shares of common stock remain at 500,000,000. A reverse stock split of the outstanding common stock at a 1-for-20 ratio became effective February 17, 2021. All per share amounts and number of shares in the condensed consolidated financial statements and related notes have been retroactively restated to reflect the reverse stock split. On October 15, 2019, the Company engaged Maxim Group LLC (“Maxim”) as its financial advisor to assist the Company in growth strategy to the investment community with the ultimate goal of an up-list and capital raise on NASDAQ. As consideration for Maxim’s services, Maxim shall be entitled to receive, and the Company agrees to pay Maxim, the following compensation: (a) The Company will issue to Maxim or its designees 100,000 shares of the Company’s Common Stock (“Common Stock”) based on the following schedule: i. 27,500 restricted shares of Common Stock upon the execution of the Agreement implying a price per share of $0.10. These shares were valued on October 15, 2019 at $0.054 with a value of $29,920. The full amount of $29,920 was expensed as consulting fees in 2020 and the shares were issued on January 13, 2020. ii. $54,000 payable in 22,500 restricted shares of Common Stock six months from the date of the Agreement implying a price per shares of $0.12. These shares were valued on October 15, 2019 at a price of $0.054 with a value of $24,480 and classified as common stock subscription payable as they had not been issued. On July 9, 2020, Maxim was issued 22,500 shares of common stock in exchange for the common stock subscription payable. The full amount of consulting fees was expensed in 2019. iii. 50,000 restricted shares of Common Stock 90 days following the placement agency agreement dated April 15, 2021. These shares were valued on October 15, 2019 at a price of $0.054 with a value of $54,000 and expensed as consulting fees for the three months ended March 31, 2021. On July 9, 2020, Maxim was issued 22,500 shares of common stock in exchange for common stock payable. On July 28, 2020, Wayne Homschek elected to exercise 150,000 of his cashless warrants and 102,632 shares of common stock was issued. On October 12, 2020, the Company engaged service providers for services related to the NASDAQ up list totaling $100,000. The Company issued 100,000 shares on December 18, 2020 under the Company’s equity incentive plan immediately following the filing of a Registration Statement on Form S-8 and were issued without restrictions. These services have been expensed as of March 31, 2021. On October 16, 2020, the Company entered into an advisory agreement to assist in product sales and distribution in Asia and the Middle East. The advisor will be paid compensation of 100,000 shares totaling $108,000 over a two- year period. These shares were issued under the Company’s equity incentive plan immediately following the filing of a Registration Statement on Form S-8 and were issued without restrictions. As of June 30, 2021, $38,022 of expense had been recognized and $69,978 remained as a prepaid to be amortized over a two-year period. On October 16, 2020, the Company entered into a public relations service agreement whereby the consultant will be paid compensation of 25,000 shares totaling $27,000 over a nine-month period. These shares were issued under the Company’s equity incentive plan immediately following the filing of a Registration Statement on Form S-8 and were issued without restrictions. As of June 30, 2021, $27,000 of expense had been recognized On November 20, 2020, the Company issued 2,005,000 shares of common stock to Fawad Maqbool, the Chief Executive Officer of the Company. 5,000 of the shares were issued at par value upon the conversion of 1,000 shares of Preferred Stock. The remaining 2,000,000 of the shares were issued pursuant to the exercise by Mr. Maqbool of options to purchase 400,000 shares of Preferred Series A stock, at an exercise price of $1.03 per share, which were then converted into 2,000,000 shares of Common Stock. On December 18, 2020, the Company issued 30,000shares of common stock under the Company’s stock option plan as stock compensation totaling $90,000. On February 17, 2021, Amplitech Group Inc., common stock and warrants under the symbols “AMPG” and “AMPGW”, respectively, commenced trading on NASDAQ. In connection with the public offering, 1,371,428 units at an offering price of $7.00 per unit were sold. Each unit issued in the offering consisted of one share of common stock and one warrant. Maxim Group LLC acted as sole book-running manager for the offering. Net proceeds received was $8,119,502. On February 24, 2021, Maxim Group LLC exercised its overallotment option to purchase an additional 205,714 shares of common stock. Net proceeds received was $1,330,095. From March 8 to March 12, 2021, 161,800 warrants were exercised at a price of $7.00 and 161,800 shares of common stock were issued. Total cash proceeds received were $1,132,600. From April 1 through April 6, 2021, 48,900 warrants were exercised at an exercise price of $7.00 and 48,900 shares of common stock were issued. Gross proceeds received were $342,300. On April 15, 2021, the Company entered into definitive agreements with certain institutional investors for the sale of 2,715,000shares of common stock in a registered direct offering priced at-the-market under NASDAQ rules. Concurrently, the Company agreed to issue to the investors, in a private placement, warrants to purchase an aggregate of 1,900,500 shares of common stock at an exercise price of $8.48 per share with a five-year term. Maxim Group LLC acted as the exclusive placement agent for this offering. The shares of common stock as described were offered pursuant to a “shelf” registration statement filed with the SEC on April 1, 2021 and declared effective on April 14, 2021. The aggregate gross proceeds to the Company were approximately $23 million dollars before deducting placement agent’s fees and expenses. The offering closed on April 16, 2021. On April 30, 2021, the Company filed a registration statement providing for the resale of the shares of common stock issuable upon the exercise of the warrants issued in the private placement. The registration statement became effective on May 11, 2021. Options: During 2014, the Company granted the chief executive officer of the Company an immediately exercisable option to purchase an aggregate of 400,000 shares of Series A at an exercise price of $0.0206 per share. There is no expiration date for this option and the related expense has been recorded in prior years. On November 20, 2020 cash proceeds of $8,241 were received and the options were exercised for 2,000,000 shares of common stock. On June 30, 2021, the Company granted ten-year nonqualified stock options, which vest in full on the date of the grant, to purchase 12,500 shares of common stock pursuant to the Company’s 2020 Equity Incentive Plan to each of our Board of Directors, Mr. Lee, Mr. Kappers, and Mr. Mazziota, with an exercise price of $4.63 per share. The Company has calculated the estimated fair market value of these options at $134,550 using the Black-Scholes model and the following assumptions: expected term 2.5 years, stock price $4.63, exercise price $4.63, 153.1% volatility, .36% risk free rate, and no forfeiture rate. Stock options outstanding are as follows: Number of Weighted Average Options Exercise Price ($) Outstanding at December 31, 2020 - - Granted 37,500 $ 4.63 Exercised - - Expired - - Outstanding at June 30, 2021 37,500 $ 4.63 Exercisable at June 30, 2021 37,500 $ 4.63 As of June 30, 2021, the stock options had no intrinsic value. The weighted average useful life of the outstanding and exercisable options is five years. Warrants: On February 17, 2021, Amplitech Group Inc., common stock and warrants under the symbols “AMPG” and “AMPGW”, respectively, commenced trading on NASDAQ. In connection with the public offering, 1,371,428 units at an offering price of $7.00 per unit were sold. Each unit issued in the offering consisted of one share of common stock and one warrant. Maxim Group LLC acted as sole book-running manager for the offering and partially exercised its overallotment option to purchase 205,714 warrants at the public offering price. From March 8 to March 12, 2021, 161,800 warrants were exercised at a price of $7.00 and 161,800 shares of common stock were issued. From April 1 through April 6, 2021, 48,900 warrants were exercised at an exercise price of $7.00 and 48,900 shares of common stock were issued. On April 15, 2021, the Company entered into definitive agreements with certain institutional investors for the sale of 2,715,000 shares of common stock in a registered direct offering priced at-the-market under NASDAQ rules. Concurrently, the Company agreed to issue to the investors, in a private placement, warrants to purchase an aggregate of 1,900,500 shares of common stock at an exercise price of $8.48 per share with a five-year term. Number of Warrants Weighted Average Exercise Price ($ Outstanding at December 31, 2020 - - Granted 3,477,642 $ 7.86 Exercised (210,700 ) $ (7.00 ) Expired - - Outstanding at June 30, 2021 3,266,942 $ 7.86 Exercisable at June 30, 2021 3,266,942 $ 7.86 As of June 30, 2021, the warrants had no intrinsic value. The average remaining life of the outstanding and exercisable warrants is 6.83 years. 2020 Equity Incentive Plan In October 2020, the Board of Directors and shareholders adopted the Company’s 2020 Equity Incentive Plan (the “2020 Plan”), effective as of December 14, 2020. Under the 2020 Plan, the Company reserved 1,250,000 shares of common stock to grant shares of common stock of the Company to employees and individuals who perform services for the Company. The purpose of the 2020 Plan is to attract and retain the best available personnel for positions of substantial responsibility, to provide incentives to individuals who perform services for the Company, and to promote the success of the Company’s business. The 2020 Plan permits the grant of Incentive Stock Options, Nonstatutory Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Units, Performance Shares and other stock or cash awards as the Board of Directors may determine. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies | |
Note 13. Commitments and Contingencies | (13) Commitments and Contingencies None applicable |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events | |
Note 14. Subsequent events | (14) Subsequent events In accordance with ASC 855-10, Company management reviewed all material events through the date of this report. On July 26, 2021, 52,000 incentive/non-qualified stock options were issued to various employees and consultants. The options have a strike price of $3.88 and a ten-year term. The options shall vest in equal quarterly installments over a three-year period commencing one year after the date of grant. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Summary of Significant Accounting Policies | |
Basis of Accounting | The accompanying condensed consolidated financial statements have been prepared using the accrual basis of accounting. The accompanying unaudited interim condensed consolidated financial statements of AmpliTech Group, Inc. (“Group” or the “Company”) have been prepared by management in accordance with accounting principles generally accepted in the United States of America for interim financial information and pursuant to rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all information and footnotes required by generally accepted accounting principles for annual audited financial statements. In the opinion of management, all adjustments of a normal recurring nature, considered necessary for a fair presentation have been included. The results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021. The accompanying unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes related thereto for the years ended December 31, 2020 and 2019 included in Form 10-K filed with the SEC. |
Principles of Consolidation | The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the periods presented. Actual results could differ from those estimates. |
Cash and Cash Equivalents | The Company considers deposits that can be redeemed on demand and investments and marketable securities that have original maturities of less than three months, when purchased, to be cash equivalents. As of June 30, 2021, the Company’s cash and cash equivalents were deposited in three financial institutions. |
Accounts Receivables | Trade accounts receivables are recorded at the net invoice value and are not interest bearing. The Company provides an allowance for doubtful accounts equal to the estimated uncollectible amounts. The Company’s estimate is based on historical collection experience and a review of the current status of accounts receivable. It is reasonably possible that the Company’s estimate of the allowance for doubtful accounts will change in the future. An allowance of $113,670 and $125,400 has been recorded at June 30, 2021 and December 31, 2020. |
Marketable Securities | The Company’s investments have been classified as available-for-sale securities in accordance with U.S. GAAP. Marketable securities are categorized on the consolidated condensed balance sheet as Marketable Securities , |
Inventories | Inventories, which consist primarily of raw materials, work in progress and finished goods, is stated at the lower of cost (first-in, first-out basis) or market (net realizable value). Inventory quantities and related values are analyzed at the end of each fiscal quarter to determine those items that are slow moving and obsolete. An inventory reserve is recorded for those items determined to be slow moving with a corresponding charge to cost of goods sold. Inventory items that are determined obsolete are written off currently with a corresponding charge to cost of goods sold. |
Property and Equipment | Property and equipment are recorded at cost. Depreciation is provided over the estimated useful lives of the related assets using the straight-line method for financial statement purposes. Amortization of leasehold improvements is computed using the straight-line method over the shorter of the remaining lease term or the estimated useful lives of the improvements. Property and equipment are depreciated as follows: Description Useful Life Method Office equipment 7 years Straight-line Machinery and equipment 5 to 10 years Straight-line Computer equipment 3 to 7 years Straight-line Vehicles 5 years Straight-line |
Long-lived assets | Long lived assets, such as property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Circumstances which could trigger a review include, but are not limited to; significant decrease in the market price of the asset; significant adverse changes in the business climate or legal factors; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed of significantly before the end of its estimated useful life. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount of fair value less costs to sell and would no longer be depreciated. The depreciable basis of assets that are impaired and continue in use is their respective fair values. |
Investment Policy-Cost Method | Investments consist of non-controlling equity investments in privately held companies. The Company elected the measurement alternative for these investments without readily determinable fair values and for which the Company does not control or have the ability to exercise significant influence over operating and financial policies. These investments are accounted for under the cost method of accounting. Under the cost method of accounting, the non-marketable equity securities are carried at cost less any impairment, adjusted for observable price changes of similar investments of the same issuer. Fair value is not estimated for these investments if there are no identified events or changes in circumstances that may have an effect on the fair value of the investment. Under this method, the Company’s share of the earnings or losses of such investee companies is not included in the consolidated balance sheet or consolidated statements of operations. The Company held $150,000 of investments without readily determinable fair values at June 30, 2021 (see Note 8). These investments are included in other assets on the condensed consolidated balance sheets. There were no impairment charges for the three and six months ended June 30, 2021. |
Goodwill and Intangible Assets | Intangible assets include goodwill, trademarks, intellectual property and customer base acquired through the asset purchase of Specialty Microwave. The Company accounts for Other Intangible Assets under the guidance of ASC 350, “Intangibles-Goodwill and Other.” Under the guidance, other intangible assets with definite lives are amortized over their estimated useful lives. Intangible assets with indefinite lives are tested annually for impairment. Goodwill is not amortized. We test goodwill balances for impairment annually at December 31 or whenever impairment indicators arise. |
Leases | On January 1, 2019, we adopted ASU No. 2016-02, “Leases (Topic 842),” which requires leases with durations greater than twelve months to be recognized on the balance sheet. We adopted this standard using the modified retrospective approach with an effective date as of the beginning of January 2019. Prior year financial statements were not restated under the new standard. We lease property and equipment under finance and operating leases. For leases with terms greater than 12 months, we record the related asset and obligation at the present value of lease payments over the lease term. The Company has elected not to separate lease and non-lease components for all property leases for the purpose of calculating ROU assets and lease liabilities. Many of our leases include rental escalation clauses, renewal options and/or termination options that are factored into our determination of lease payments when appropriate. When available, we use the rate implicit in the lease to discount lease payments to present value; however, most of our leases do not provide a readily determinable implicit rate. Therefore, we must estimate our incremental borrowing rate to discount the lease payments based on information available at lease commencement. The incremental borrowing rate is the rate of interest that a lessee would have to pay to borrow on a collateralized basis considering such factors as lease term and economic environment risks. |
Revenue Recognition | We sell our products through a combination of a direct sales force in the United States and independent sales representatives in international markets. Revenue is recognized when a customer obtains control of promised goods based on the consideration we expect to receive in exchange for these goods. This core principle is achieved through the following steps: Identify the contract with the customer Identify the performance obligations in the contract Our performance obligations generally relate to delivering single-use products to a customer, subject to the shipping terms of the contract. Limited warranties are provided, under which we typically accept returns and provide either replacement parts or refunds. We do not have significant returns. We do not typically offer extended warranty or service plans. Determine the transaction price Allocate the transaction price to performance obligations in the contract Recognize revenue when or as we satisfy a performance obligation. Reserves are recorded as a reduction in net sales and are not considered material to our condensed consolidated statements of operations for the six months ended June 30, 2021 and 2020. |
Research and Development | Research and development expenditures are charged to operations as incurred. The major components of research and development costs include consultants, outside service, and supplies. Research and development costs for the six months ended June 30, 2021 and 2020 were $ 62,962 and $ 23,715. |
Income Taxes | The Company’s deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statement carrying amounts and tax bases of certain assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. The deferred tax assets and liabilities are classified according to the financial statement classification of the assets and liabilities generating the differences. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The ASC prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The ASC provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. At June 30, 2021, the Company had no material unrecognized tax benefits. |
Earnings Per Share | Basic earnings per share (“EPS”) are determined by dividing the net earnings by the weighted-average number of shares of common shares outstanding during the period. Diluted EPS is determined by dividing net earnings by the weighted average number of common shares used in the basic EPS calculation plus the number of common shares that would be issued assuming conversion of all potentially dilutive securities outstanding under the treasury stock method. As of June 30, 2021 and 2020, there were 3,304,442 and 2,155,000, respectively, potentially dilutive shares that need to be considered as common share equivalents. The computation of weighted average shares outstanding and the basic and diluted earnings per share consisted of the following: Net (Loss) Income Shares Per Share Amount For the three months ended June 30, 2021: Basic EPS $ (472,695 ) 8,863,517 $ (0.05 ) Effect of dilutive stock options, warrants and series A shares Diluted EPS $ (472,695 ) 8,863,517 $ (0.05 ) For the three months ended June 30, 2020: Basic EPS $ (243,268 ) 2,476,816 $ (0.10 ) Effect of dilutive stock options, warrants and series A shares Diluted EPS $ (243,268 ) 2,476,816 $ (0.10 ) Net (Loss) Income Shares Per Share Amount For the six months ended June 30, 2021: Basic EPS $ (1,352,626 ) 7,225,036 $ (0.19 ) Effect of dilutive stock options, warrants and series A shares Diluted EPS $ (1,352,626 ) 7,225,036 $ (0.19 ) For the six months ended June 30, 2020: Basic EPS $ (556,229 ) 2,476,816 $ (0.23 ) Effect of dilutive stock options, warrants and series A shares Diluted EPS $ (556,229 ) 2,476,816 $ (0.23 ) |
Fair Value of Assets and Liabilities | Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined in the following categories as follows: Level 1. Level 2. Level 3. |
Fair Value of Marketable Securities | The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is divided into the following three categories: Level 1. Level 2. Level 3. Fair value estimates of financial instruments are made at a specific point in time, based on relevant information about financial markets and specific financial instruments. As these estimates are subjective in nature, involving uncertainties and matters of significant judgment, they cannot be determined with precision. Changes in assumptions can significantly affect estimated fair value. Management is of the opinion that the Company is not exposed to significant interest or credit risks arising from financial instruments and any declines in the value of investments are temporary in nature. Money market funds and certificates of deposits are shown at cost on the balance sheet and their adjusted cost approximates their fair value. |
Stock-Based Compensation | The Company records stock-based compensation in accordance with ASC 718, Compensation-Stock Compensation. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. Equity instruments issued to employees and the cost of the services received as consideration are measured and recognized based on the fair value of the equity instruments issued and are recognized over the employees required service period, which is generally the vesting period. |
Concentration of Credit Risk | Financial instruments that potentially subject the company to concentration of credit risk consist primarily of cash. Accounts at each institution are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. At June 30, 2021 and December 31, 2020, the Company had $27,374,397 and $0 in excess of the FDIC insured limit, respectively. |
Recent Accounting Pronouncements | In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which is intended to simplify various aspects related to accounting for income taxes. This ASU removes certain exceptions to the general principles in Topic 740 and clarifies and amends existing guidance to improve consistent application. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. We are currently assessing the impact of this standard on our consolidated financial statements. On August 5, 2020, FASB issued ASU 2020-06, which is expected to reduce complexity and improve comparability of financial reporting associated with accounting for convertible instruments and contracts in an entity’s own equity. The ASU is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years, with an early adoption permitted. The adoption of this standard became effective for us on January 1, 2021 and did not have a material impact on our consolidated financial statements. We do not expect the adoption of these or other recently issued accounting pronouncements to have a significant impact on our results of operation, financial position or cash flow. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Summary of Significant Accounting Policies | |
Schedule of property and equipment depreciated | Description Useful Life Method Office equipment 7 years Straight-line Machinery and equipment 5 to 10 years Straight-line Computer equipment 3 to 7 years Straight-line Vehicles 5 years Straight-line |
Schedule of weighted average shares outstanding and the basic diluted earnings per share | Net (Loss) Income Shares Per Share Amount For the three months ended June 30, 2021: Basic EPS $ (472,695 ) 8,863,517 $ (0.05 ) Effect of dilutive stock options, warrants and series A shares Diluted EPS $ (472,695 ) 8,863,517 $ (0.05 ) For the three months ended June 30, 2020: Basic EPS $ (243,268 ) 2,476,816 $ (0.10 ) Effect of dilutive stock options, warrants and series A shares Diluted EPS $ (243,268 ) 2,476,816 $ (0.10 ) Net (Loss) Income Shares Per Share Amount For the six months ended June 30, 2021: Basic EPS $ (1,352,626 ) 7,225,036 $ (0.19 ) Effect of dilutive stock options, warrants and series A shares Diluted EPS $ (1,352,626 ) 7,225,036 $ (0.19 ) For the six months ended June 30, 2020: Basic EPS $ (556,229 ) 2,476,816 $ (0.23 ) Effect of dilutive stock options, warrants and series A shares Diluted EPS $ (556,229 ) 2,476,816 $ (0.23 ) |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenues | |
Schedule of sales disaggregated based on geographic regions | For the three months ended For the six months ended June 30, June 30, June 30, June 30, 2021 2020 2021 2020 Domestic sales $ 857,630 $ 553,469 $ 1,260,141 $ 1,173,671 International sales 167,780 107,230 237,245 242,976 Total sales $ 1,024,410 $ 660,699 $ 1,497,386 $ 1,416,647 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Marketable Securities | |
Summary of marketable securities | Amortized Gross realized Gross unrealized Estimated Cost Gain Loss Fair Value Equities 958,296 6,994 (5,822 ) 959,468 Fixed Income 100,950 10 100,960 Other 49,720 (510 ) 49,210 Total Securities $ 1,108,966 $ 7,004 $ (6,332 ) $ 1,109,638 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Inventories | |
Schedule of Inventory | June 30, December 31, 2021 2020 Raw Materials $ 493,405 $ 325,251 Work-in Progress 221,487 129,882 Finished Goods 156,606 128,479 Engineering Models 3,726 3,726 Subtotal $ 875,224 $ 587,338 Less: Reserve for Obsolescence (69,000 ) (70,000 ) Total $ 806,224 $ 517,338 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Property and Equipment | |
Schedule of Property and Equipment useful life | June 30, December 31, 2021 2020 Lab Equipment $ 1,276,898 $ 865,414 Manufacturing Equipment 25,000 25,000 Automobiles 19,527 19,527 Furniture and Fixtures 38,217 36,165 Subtotal 1,359,642 946,106 Less: Accumulated Depreciation (686,616 ) (656,855 ) Total $ 673,026 $ 289,251 |
Intangible assets (Tables)
Intangible assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Intangible assets (Tables) | |
Schedule of intangible assets | Gross Carrying Accumulated Weighted Average Amount Amortization Net Life Trade name $ 70,233 $ - $ 70,233 Indefinite Customer relationships 412,860 49,543 363,317 13.0 Intellectual Property 202,771 24,465 178,306 13.0 Total $ 685,864 $ 74,008 $ 611,856 |
Schedule of amortization of assets | 2021 20,689 2022 41,042 2023 41,042 2024 41,042 2025 41,042 Thereafter 356,766 $ 541,623 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases (Tables) | |
Schedule of lease assets and liabilities | Operating leases June 30, 2021 Assets ROU operating lease assets $ 300,367 Liabilities Current portion of operating lease $ 86,997 Operating lease, net of current portion $ 222,218 Total operating lease liabilities $ 309,215 Finance leases Assets Property and equipment, gross $ 157,184 Accumulated depreciation (67,364 ) Property and equipment, net $ 89,820 Liabilities Current portion of financing lease $ 32,877 Finance lease, net of current portion 34,520 Total operating lease liabilities $ 67,397 |
Schedule of weighted average remaining lease term and weighted average discount rate | Weighted average remaining lease term (years) June 30, 2021 Operating leases 3.27 Finance leases 2.00 Weighted average discount rate Operating leases 5.96 % Finance leases 4.89 % |
Schedule of future minimum lease payments for finance lease | 2021 18,889 2022 37,778 2023 18,889 Total lease payments 75,556 Less imputed interest (3,485 ) Less sales tax (4,674 ) Total lease obligations 67,397 Less current obligations (32,877 ) Long-term lease obligations $ 34,520 |
Schedule of future minimum lease payments for operating lease | 2021 50,856 2022 104,497 2023 102,741 2024 79,948 2025 3,645 Total lease payments 341,687 Less imputed interest (32,472 ) Total lease obligations 309,215 Less current obligations (86,997 ) Long-term lease obligations $ 222,218 |
Note Payable (Tables)
Note Payable (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Notes Payable | |
Schedule of future principal and interest payments | Payments 2021 66,767 2022 137,623 2023 110,894 2024 89,596 Total remaining payments $ 404,880 |
Stockholders Equity (Tables)
Stockholders Equity (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Stockholders Equity (Tables) | |
Summary of warrants outstanding | Number of Warrants Weighted Average Exercise Price ($ Outstanding at December 31, 2020 - - Granted 3,477,642 $ 7.86 Exercised (210,700 ) $ (7.00 ) Expired - - Outstanding at June 30, 2021 3,266,942 $ 7.86 Exercisable at June 30, 2021 3,266,942 $ 7.86 |
Summary of Stock options outstanding | Number of Weighted Average Options Exercise Price ($) Outstanding at December 31, 2020 - - Granted 37,500 $ 4.63 Exercised - - Expired - - Outstanding at June 30, 2021 37,500 $ 4.63 Exercisable at June 30, 2021 37,500 $ 4.63 |
Organization and Business Des_2
Organization and Business Description (Details Narrative) - $ / shares | Aug. 13, 2012 | Feb. 17, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Organization and Business Description | ||||
Reverse stock split | 1-for-20 ratio | |||
Percentage of acquired entity in exchange of outstanding shares | 100% | |||
Acquisition of entity by issuing of common stock | 833,750 | |||
Public offering shares | 1,371,428 | |||
Selling shareholders shares owned after share exchange | 60,000 | |||
Offering price | $ 7 | |||
Common stock, outstanding | 889,250 | 9,343,671 | 4,839,448 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) | 6 Months Ended |
Jun. 30, 2021 | |
Office Equipment [Member] | |
Estimated useful life | 7 years |
Depreciation Method | Straight-line |
Machinery And Equipment [Member] | |
Estimated useful life | 5 to 10 years |
Depreciation Method | Straight-line |
Computer Equipment [Member] | |
Estimated useful life | 3 to 7 years |
Depreciation Method | Straight-line |
Vehicles [Member] | |
Estimated useful life | 5 years |
Depreciation Method | Straight-line |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 1) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net loss for the six months ended June 30, 2020 | $ (472,695) | $ (243,268) | $ (1,352,626) | $ (566,229) |
Basic EPS [Member] | ||||
Net loss for the six months ended June 30, 2020 | $ (472,695) | $ (243,268) | $ (1,352,626) | $ (556,229) |
Shares | 8,863,517 | 2,476,816 | 7,225,036 | 2,476,816 |
Per Share Amount | $ (0.05) | $ (0.10) | $ (0.19) | $ (0.23) |
Diluted EPS [Member] | ||||
Net loss for the six months ended June 30, 2020 | $ (472,695) | $ (243,268) | $ (1,352,626) | $ (556,229) |
Shares | 8,863,517 | 2,476,816 | 7,225,036 | 2,476,816 |
Per Share Amount | $ (0.05) | $ (0.10) | $ (0.19) | $ (0.23) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Mar. 31, 2020 | |
Summary of Significant Accounting Policies | ||||
Allowance for Doubtful Accounts | $ 113,670 | $ 125,400 | ||
Research and development costs | 62,962 | $ 23,715 | ||
Investments | $ 150,000 | $ 0 | ||
Potentially dilutive shares | 3,304,442 | 2,155,000 | ||
Cash in excess of FDIC insured limit | $ 27,374,397 | $ 0 |
Revenues (Details)
Revenues (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Total sales | $ 1,024,410 | $ 660,699 | $ 1,497,386 | $ 1,416,647 |
Amplitech Inc. [Member] | Domestic sales [Member] | ||||
Total sales | 857,630 | 553,469 | 1,260,141 | 1,173,671 |
Amplitech Inc. [Member] | International sales [Member] | ||||
Total sales | $ 167,780 | $ 107,230 | $ 237,245 | $ 242,976 |
Marketable Securities (Details)
Marketable Securities (Details) | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Other [Member] | |
Marketable Securities Amortized Cost | $ 49,720 |
Marketable Securities Gross realized Gain | 0 |
Marketable Securities Gross unrealized Loss | (510) |
Marketable Securities Estimated Fair Value | 49,210 |
Total Securities [Member] | |
Marketable Securities Amortized Cost | 1,108,966 |
Marketable Securities Gross realized Gain | 7,004 |
Marketable Securities Gross unrealized Loss | (6,332) |
Marketable Securities Estimated Fair Value | 1,109,638 |
Fixed Income Funds [Member] | |
Marketable Securities Amortized Cost | 100,950 |
Marketable Securities Gross realized Gain | 10 |
Marketable Securities Gross unrealized Loss | 0 |
Marketable Securities Estimated Fair Value | 100,960 |
Equities [Member] | |
Marketable Securities Amortized Cost | 958,296 |
Marketable Securities Gross realized Gain | 6,994 |
Marketable Securities Gross unrealized Loss | (5,822) |
Marketable Securities Estimated Fair Value | $ 959,468 |
Marketable Securities (Details
Marketable Securities (Details Narrative) | Jun. 30, 2021USD ($) |
Total Securities [Member] | |
Cash and cash equivalents | $ 3,888,974 |
Inventories (Details)
Inventories (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Inventories | ||
Raw Materials | $ 493,405 | $ 325,251 |
Work-in Progress | 221,487 | 129,882 |
Finished Goods | 156,606 | 128,479 |
Engineering Models | 3,726 | 3,726 |
Subtotal | 875,224 | 587,338 |
Less: Reserve for Obsolescence | (69,000) | (70,000) |
Total | $ 806,224 | $ 517,338 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Property and Equipment | ||
Lab Equipment | $ 1,276,898 | $ 865,414 |
Manufacturing Equipment | 25,000 | 25,000 |
Automobiles | 19,527 | 19,527 |
Furniture and Fixtures | 38,217 | 36,165 |
Subtotal | 1,359,642 | 946,106 |
Less: Accumulated Depreciation | (686,616) | (656,855) |
Total | $ 673,026 | $ 289,251 |
Property and Equipment (Detai_2
Property and Equipment (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Property and Equipment | ||
Depreciation expense | $ 29,761 | $ 23,064 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Net | $ 611,856 | $ 632,209 |
Total [Member] | ||
Gross Carrying amount | 685,864 | |
Accumulated Amortization | 74,008 | |
Net | 611,856 | |
Trade Name [Member] | ||
Gross Carrying amount | 70,233 | |
Accumulated Amortization | 0 | |
Net | $ 70,233 | |
Weighted Average Life | Indefinite | |
Customer Relationships [Member] | ||
Gross Carrying amount | $ 412,860 | |
Accumulated Amortization | 49,543 | |
Net | $ 363,317 | |
Weighted Average Life | 13 years | |
Intellectual Property [Member] | ||
Gross Carrying amount | $ 202,771 | |
Accumulated Amortization | 24,465 | |
Net | $ 178,306 | |
Weighted Average Life | 13 years |
Intangible Assets (Details 1)
Intangible Assets (Details 1) | Jun. 30, 2021USD ($) |
Annual amortization of intangible assets are as follows: | |
2021 | $ 20,689 |
2022 | 41,042 |
2023 | 41,042 |
2024 | 41,042 |
2025 | 41,042 |
Thereafter | 356,766 |
Net | $ 541,623 |
Intangible Assets (Details Narr
Intangible Assets (Details Narrative) - USD ($) | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Intangible Assets | |||
Goodwill | $ 120,136 | $ 120,136 | |
Amortization expenses | $ 20,353 | $ 20,531 |
Cost-Method Investment (Details
Cost-Method Investment (Details Narrative) - USD ($) | Jun. 10, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Investment | $ 150,000 | $ 0 | |
SN2N, LLC [Member] | |||
Aggregate purchase price for membership interest | $ 350,000 | ||
Membership interest purchase agreement description | Each tranche represents a 5% membership interest, and in aggregate a 20% membership interest | ||
Investment | $ 150,000 | ||
Membership interest percentage | 10% |
Line of Credit (Details Narrati
Line of Credit (Details Narrative) - USD ($) | 1 Months Ended | ||
Nov. 20, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | |
Line of credit, outstanding balance | $ 0 | $ 200,000 | |
Accounts Receivable [Member] | |||
Borrowing base, percentage | 75% | ||
Inventory [Member] | |||
Borrowing base, percentage | 50% | ||
Specialty Microwave Corp. [Member] | |||
Line of credit facility | $ 750,000 | ||
Line of credit, maturity date | November 1, 2021 | ||
Line of credit, outstanding balance | $ 0 | $ 200,000 |
Lease (Details)
Lease (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Operating leases Assets | ||
ROU operating lease assets | $ 300,367 | $ 347,156 |
Liabilities | ||
Current portion of operating lease | 86,997 | 87,930 |
Operating lease, net of current portion | 222,218 | 267,050 |
Total operating lease liabilities | 309,215 | |
Finance leases Assets | ||
Property and equipment, gross | 157,184 | |
Accumulated depreciation | (67,364) | |
Property and equipment, net | 89,820 | |
Current portion of financing lease | 32,877 | $ 32,084 |
Finance lease, net of current portion | 34,520 | |
Total operating lease liabilities | $ 67,397 |
Lease (Details 1)
Lease (Details 1) | 6 Months Ended |
Jun. 30, 2021 | |
Weighted average remaining lease term (years) | |
Operating leases | 3 years 3 months 7 days |
Finance leases | 2 years |
Weighted average discount rate | |
Operating leases | 5.96 |
Finance leases | 4.89 |
Lease (Details 2)
Lease (Details 2) - Finance lease [Member] | Jun. 30, 2021USD ($) |
2021 | $ 18,889 |
2022 | 37,778 |
2023 | 18,889 |
Total lease payments | 75,556 |
Less imputed interest | (3,485) |
Less sales tax | (4,674) |
Total lease obligations | 67,397 |
Less current obligations | (32,877) |
Long-term lease obligations | $ 34,520 |
Lease (Details 3)
Lease (Details 3) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Total lease obligations | $ 309,215 | |
Long-term lease obligations | 222,218 | $ 267,050 |
Operating lease [Member] | ||
2021 | 50,856 | |
2022 | 104,497 | |
2023 | 102,741 | |
2024 | 79,948 | |
2025 | 3,645 | |
Total lease payments | 341,687 | |
Less imputed interest | (32,472) | |
Total lease obligations | 309,215 | |
Less current obligations | (86,997) | |
Long-term lease obligations | $ 222,218 |
Lease (Details Narrative)
Lease (Details Narrative) | Sep. 12, 2019USD ($) | Jan. 15, 2016USD ($)integer | Dec. 04, 2015 | Nov. 27, 2019 | Jun. 30, 2021 |
Leases (Tables) | |||||
Finance lease agreement description | the Company entered a 39-month agreement to lease an automobile with a monthly payment of $420. | The Company entered into a 60-month lease agreement to finance certain laboratory equipment in July 2018 with a purchase option of $1. | |||
Annual rent | $ 90,000 | ||||
Operating lease agreement description | the Company entered into a new operating lease agreement to rent office space in Bohemia, NY. This five-year agreement commenced February 1, 2016 with an annual rent of $50,000 and 3.75% increases in each successive lease year. On January 13, 2021, a lease rider was annexed to the original lease whereby the lease term will be extended on a month-by-month basis, commencing on February 1, 2021 | ||||
Lease | $ 1,200,000 | ||||
Lease rate increase each successive year, percentage | 3% | ||||
Operating lease, rental expenses | $ 2,985 | ||||
Annual payment | $ 3,976 | ||||
Number of copiers | integer | 2 |
Notes Payable (Details)
Notes Payable (Details) | Jun. 30, 2021USD ($) |
Notes Payable | |
2021 | $ 66,767 |
2022 | 137,623 |
2023 | 110,894 |
2024 | 89,596 |
Total remaining payments | $ 404,880 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) - USD ($) | Sep. 12, 2019 | Apr. 20, 2021 | Jun. 30, 2021 | Apr. 20, 2020 |
Leasing facility amount | $ 250,000 | |||
June 10, 2020 [Member] | ||||
Monthly repayment amount | $ 1,216 | |||
Interest expenses | $ 693 | |||
Interest rate | 4.278% | |||
Outstanding loan | $ 26,740 | |||
Procees from loans | 41,015 | |||
May 14, 2020 [Member] | ||||
Monthly repayment amount | 815 | |||
Interest expenses | $ 447 | |||
Interest rate | 4.268% | |||
Outstanding loan | $ 17,177 | |||
Procees from loans | 27,494 | |||
December 20, 2019 [Member] | ||||
Monthly repayment amount | 1,736 | |||
Interest expenses | $ 845 | |||
Interest rate | 5.26% | |||
Outstanding loan | $ 28,441 | |||
Procees from loans | 58,192 | |||
Paycheck Protection Program Promissory Note [Member] | ||||
Promissory note | $ 232,200 | |||
Loan forgiveness | $ 232,200 | |||
Loan Payable [Member] | ||||
Loan amount | 1,000,000 | |||
Monthly repayment amount | $ 11,533 | |||
Long-term debt, bearing fixed interest rate | 6.75% | |||
Repayment of debt | 909,036 | |||
Interest expenses | 23,999 | |||
Promissory Note [Member] | ||||
Repayment of debt | 36,993 | |||
Interest expenses | 9,075 | |||
Interest rate | 6% | |||
Outstanding loan | $ 332,522 | |||
Considration paid in cash | $ 668,633 | |||
Considration paid in promissory note | $ 475,000 | |||
Principal and interest payable description | Beginning November 1, 2019, payment of principal and interest shall be due payable in fifty-nine (59) monthly payments of $9,213 with a final payment due October 1, 2024 of $9,203 | |||
Total consideration paid | $ 1,143,633 |
Stockholders Equity (Details)
Stockholders Equity (Details) | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Stockholders Equity (Tables) | |
Number of Options, granted | shares | 37,500 |
Number of Options, ending | shares | 37,500 |
Number of Options, ending exercisable | shares | 37,500 |
Weighted Average Exercise Price, beginning | $ 0 |
Weighted Average Exercise Price, granted | 4.63 |
Weighted Average Exercise Price, exercised | 0 |
Weighted Average Exercise Price, expired | 0 |
Weighted Average Exercise Price, ending | 4.63 |
Weighted Average Exercise Price, ending exercisable | $ 4.63 |
Stockholders Equity (Details 1)
Stockholders Equity (Details 1) | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Number of Warrants | |
Outstanding, beginning | shares | 0 |
Granted | shares | 3,477,642 |
Exercised | shares | (210,700) |
Expired | shares | 0 |
Outstanding, ending | shares | 3,266,942 |
Exercisable ending | shares | 3,266,942 |
Weighted average exercise price | |
Outstanding, beginning | $ / shares | $ 0 |
Granted | $ / shares | 7.86 |
Exercised | $ / shares | (7) |
Expired | $ / shares | 0 |
Outstanding, ending | $ / shares | 7.86 |
Weighted average exercise price exercisable ending | $ / shares | $ 7.86 |
Stockholders Equity (Details Na
Stockholders Equity (Details Narrative) - USD ($) | Apr. 06, 2021 | Mar. 12, 2021 | Apr. 15, 2021 | Feb. 24, 2021 | Feb. 17, 2021 | Dec. 18, 2020 | Nov. 20, 2020 | Oct. 16, 2020 | Oct. 12, 2020 | Jul. 28, 2020 | Oct. 15, 2019 | Dec. 31, 2014 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 23, 2020 | Dec. 07, 2020 | Oct. 07, 2020 | Jul. 09, 2020 | May 20, 2014 | Jul. 10, 2013 |
Offering price | $ 7 | ||||||||||||||||||||||
Public offering shares | 1,371,428 | ||||||||||||||||||||||
Exercisable option to purchase shares | 400,000 | ||||||||||||||||||||||
Exercise price | 0.0206 | ||||||||||||||||||||||
Preferred Stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||||||||||||
Preferred Stock shares, authorized | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | 500,000 | |||||||||||||||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||||||||||||
Increase in common stock shares authorized | 500,000,000 | 500,000,000 | 500,000,000 | 500,000,000 | |||||||||||||||||||
Warrants | $ 48,900 | $ 161,800 | |||||||||||||||||||||
Fair value assumptions, Stock price | $ 7 | $ 7 | |||||||||||||||||||||
Stock split, description | the Company’s trading price at the time of such reverse split in the range of 1:20 to 1:200, while the authorized shares of common stock remain at 500,000,000. A reverse stock split of the outstanding common stock at a 1-for-20 ratio became effective February 17, 2021 | ||||||||||||||||||||||
Common stock shares issued | 48,900 | 2,715,000 | 30,000 | 9,343,671 | 9,343,671 | 4,839,448 | |||||||||||||||||
Proceeds from common stock | $ 342,300 | $ 1,132,600 | $ 23,000,000 | $ 90,000 | |||||||||||||||||||
Warrants to purchase an aggregate shares of common stock | 1,900,500 | ||||||||||||||||||||||
Warrants to purchase an aggregate shares of common stock exercise price | $ 8.48 | ||||||||||||||||||||||
Warrants to purchase an aggregate shares of common stock term | five-year term | ||||||||||||||||||||||
Common stock shares, authorized | 500,000,000 | 500,000,000 | 500,000,000 | ||||||||||||||||||||
Restricted common stock, amount | $ 9,344 | $ 9,344 | $ 4,839 | ||||||||||||||||||||
Stock based compensation | 134,550 | $ 11,848 | 188,550 | $ 23,695 | |||||||||||||||||||
Prepaid expense | 416,066 | $ 416,066 | $ 322,124 | ||||||||||||||||||||
Exercise price | $ 7 | ||||||||||||||||||||||
Public Relations Service Agreement [Member] | |||||||||||||||||||||||
Service cost | $ 27,000 | ||||||||||||||||||||||
Shares issued upon services | 25,000 | ||||||||||||||||||||||
Expense recognized | $ 18,000 | ||||||||||||||||||||||
Advisory agreement [Member] | |||||||||||||||||||||||
Service cost | $ 108,000 | ||||||||||||||||||||||
Shares issued upon services | 100,000 | ||||||||||||||||||||||
Expense recognized | 38,022 | ||||||||||||||||||||||
Prepaid expense | $ 69,978 | $ 69,978 | |||||||||||||||||||||
Equity Incentive Plan [Member] | |||||||||||||||||||||||
Exercise price | $ 4.63 | ||||||||||||||||||||||
Service cost | $ 100,000 | $ 100,000 | |||||||||||||||||||||
Shares issued upon services | 100,000 | 100,000 | |||||||||||||||||||||
Nonqualified stock options period | ten-year | ||||||||||||||||||||||
Stock options granted | 12,500 | ||||||||||||||||||||||
Estimated fair market value of granted | $ 134,550 | ||||||||||||||||||||||
Expected term | 2.5 years | ||||||||||||||||||||||
Stock price | $ 4.63 | $ 4.63 | |||||||||||||||||||||
Exercise price | $ 4.63 | ||||||||||||||||||||||
Volatility | 153.1% | ||||||||||||||||||||||
Risk free rate | .36% | ||||||||||||||||||||||
Shares to be granted | 1,250,000 | ||||||||||||||||||||||
Warrants [Member] | |||||||||||||||||||||||
Warrants | $ 48,900 | $ 161,800 | $ 0 | ||||||||||||||||||||
Fair value assumptions, Stock price | $ 7 | $ 7 | |||||||||||||||||||||
Common stock shares issued | 48,900 | 161,800 | |||||||||||||||||||||
Proceeds from common stock | $ 1,132,600 | ||||||||||||||||||||||
Average remaining life of the outstanding and exercisable warrants | 6 years 9 months 29 days | ||||||||||||||||||||||
December 18, 2020 [Member] | |||||||||||||||||||||||
Common stock shares issued | 30,000 | 30,000 | |||||||||||||||||||||
Stock based compensation | $ 90,000 | ||||||||||||||||||||||
Blank check preferred stock[Member] | |||||||||||||||||||||||
Preferred Stock shares, authorized | 1,000,000 | 1,000,000 | 1,000,000 | ||||||||||||||||||||
Common stock shares, authorized | 500,000,000 | 500,000,000 | 500,000,000 | ||||||||||||||||||||
Maxim Group LLC [Member] | |||||||||||||||||||||||
Common stock, par value | $ 0.054 | $ 0.054 | $ 0.054 | ||||||||||||||||||||
Fair value assumptions, Stock price | $ 0.12 | ||||||||||||||||||||||
Common stock shares issued | 27,500 | 50,000 | 50,000 | 22,500 | |||||||||||||||||||
Proceeds from common stock | $ 1,330,095 | ||||||||||||||||||||||
Exercise price | $ 0.10 | ||||||||||||||||||||||
Common stock shares, authorized | 100,000 | 100,000 | |||||||||||||||||||||
Restricted shares | $ 22,500 | $ 50,000 | |||||||||||||||||||||
Restricted common stock, amount | 29,920 | $ 54,000 | $ 54,000 | ||||||||||||||||||||
Purchase of additional common stock | 205,714 | 205,714 | |||||||||||||||||||||
Share value | 24,480 | ||||||||||||||||||||||
Amounts payable upon restricted stock | $ 54,000 | ||||||||||||||||||||||
AmpliTech Group, Inc [Member] | |||||||||||||||||||||||
Public offering shares | 1,371,428 | ||||||||||||||||||||||
Common stock, par value | $ 0.001 | $ 0.001 | |||||||||||||||||||||
Fair value assumptions, Stock price | $ 7 | ||||||||||||||||||||||
Common stock shares issued | 48,900 | 2,715,000 | 30,000 | ||||||||||||||||||||
Proceeds from common stock | $ 8,119,502 | ||||||||||||||||||||||
Warrants to purchase an aggregate shares of common stock | 1,900,500 | ||||||||||||||||||||||
Common stock shares, authorized | 501,000,000 | 501,000,000 | |||||||||||||||||||||
Convertible Preferred Stock Series A [Member] | Minimum [Member] | |||||||||||||||||||||||
Preferred stock designated as Convertible Preferred Stock, shares | 401,000 | ||||||||||||||||||||||
Fawad Maqbool [Member] | |||||||||||||||||||||||
Exercisable option to purchase shares | 400,000 | ||||||||||||||||||||||
Common stock shares issued | 2,005,000 | ||||||||||||||||||||||
Common stock shares issuable upon exercise of warrants | 2,000,000 | ||||||||||||||||||||||
Number of shares issuable upon conversion of each convertible preferred stock | 1,000 | ||||||||||||||||||||||
Exercise price | $ 1.03 | ||||||||||||||||||||||
Shares converted | 2,000,000 | ||||||||||||||||||||||
Shares issued upon conversion, partially | 5,000 | ||||||||||||||||||||||
Fawad Maqbool [Member] | Common Shares [Member] | |||||||||||||||||||||||
Exercisable option to purchase shares | 400,000 | ||||||||||||||||||||||
Common stock shares issued | 2,005,000 | ||||||||||||||||||||||
Warrants exercised | 2,000,000 | ||||||||||||||||||||||
Common stock shares issuable upon exercise of warrants | 2,000,000 | ||||||||||||||||||||||
Number of shares issuable upon conversion of each convertible preferred stock | 1,000 | ||||||||||||||||||||||
Exercise price | $ 1.03 | ||||||||||||||||||||||
Shares converted | 2,000,000 | ||||||||||||||||||||||
Shares issued upon conversion, partially | 5,000 | ||||||||||||||||||||||
Cash proceeds | $ 8,241 | ||||||||||||||||||||||
Wayne Homschek [Member] | |||||||||||||||||||||||
Common stock shares issued | 102,632 | ||||||||||||||||||||||
Shares issued for warrants exercised | 150,000 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - July 26, 2021 [Member] | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Option term | ten-year |
Strike price | $ / shares | $ 3.88 |
Issuance of non-qualified stock options | shares | 52,000 |