KULR Technology (KULR) 10-Q 20 May 21 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2021	May 20, 2021
Document and Entity Information
Document Type	10-Q
Document Period End Date	Mar. 31, 2021
Entity Registrant Name	KULR Technology Group, Inc.
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		94,247,200
Entity Central Index Key	0001662684
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Current Assets:
Cash	$ 6,166,755	$ 8,880,140
Accounts receivable	345,299	55,492
Inventory	54,135	55,452
Prepaid expenses and other current assets	584,374	159,196
Total Current Assets	7,150,563	9,150,280
Property and equipment, net	53,086	57,857
Total Assets	7,203,649	9,208,137
Current Liabilities:
Accounts payable	178,374	66,537
Accounts payable - related party	2,628	2,628
Accrued expenses and other current liabilities	414,738	395,012
Accrued issuable equity	333,146	128,380
Notes payable, net of debt discount of $20,074 and $128,198 at March 31, 2021 and December 31, 2020, respectively	1,379,926	2,321,802
Loans payable, current portion	122,299	12,936
Deferred revenue	20,000	20,000
Total Current Liabilities	2,451,111	2,947,295
Loans payable, non-current portion	32,927	142,290
Total Liabilities	2,484,038	3,089,585
Commitments and contingencies (Note 9)
Stockholders' Equity:
Common stock, $0.0001 par value, 500,000,000 shares authorized; 92,627,200 and 89,908,600 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively	9,263	8,991
Additional paid-in capital	17,671,479	17,355,968
Accumulated deficit	(12,961,131)	(11,246,408)
Total Stockholders' Equity	4,719,611	6,118,552
Total Liabilities and Stockholders' Equity	7,203,649	9,208,137
Series A Preferred Stock
Stockholders' Equity:
Preferred stock	0	0
Series B Convertible Preferred Stock
Stockholders' Equity:
Preferred stock	0	1
Total Stockholders' Equity		1
Series C Preferred Stock
Stockholders' Equity:
Preferred stock	0	0
Series D Preferred Stock [Member]
Stockholders' Equity:
Preferred stock	$ 0	$ 0

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Debt discount, Current	$ 20,074	$ 128,198
Preferred Stock, Par Value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	20,000,000	20,000,000
Common Stock, Par Value (in dollars per share)	$ 0.0001	$ 0.0001
Common Stock, Shares Authorized	500,000,000	500,000,000
Common Stock, Shares Issued	92,627,200	89,908,600
Common Stock, Shares Outstanding	92,627,200	89,908,600
Series A Preferred Stock
Preferred Stock, Shares Authorized	1,000,000	1,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Series B Convertible Preferred Stock
Preferred Stock, Shares Authorized	31,000	31,000
Preferred Stock, Shares Issued	0	13,972
Preferred Stock, Shares Outstanding	0	13,972
Preferred Stock Shares Liquidated Preference	$ 0	$ 13,972
Series C Preferred Stock
Preferred Stock, Shares Authorized	400	400
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Series D Preferred Stock [Member]
Preferred Stock, Shares Authorized	650	650
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
CONSOLIDATED STATEMENTS OF OPERATIONS
Revenue	$ 417,905	$ 77,500
Cost of revenue	275,268	30,043
Gross Profit	142,637	47,457
Operating Expenses:
Research and development	122,983	111,713
Selling, general, and administrative	1,492,811	465,410
Total Operating Expenses	1,615,794	577,123
Loss From Operations	(1,473,157)	(529,666)
Other Expenses
Interest expense, net	(865)	(1,367)
Amortization of debt discount	(108,124)	(19,220)
Change in fair value of accrued issuable equity	(132,577)	0
Total Other Expenses	(241,566)	(20,587)
Net Loss	$ (1,714,723)	$ (550,253)
Net Loss Per Share - Basic and Diluted (In dollars per share)	$ (0.02)	$ (0.01)
Weighted Average Number of Common Shares Outstanding - Basic and Diluted (In Shares)	90,078,940	81,098,163

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIENCY) - USD ($)	Series B Convertible Preferred StockStock options	Series B Convertible Preferred Stock	Series C Convertible Preferred Stock	restricted common stockrestricted common stock	restricted common stockStock options	restricted common stockMarket Based Award	restricted common stock	Additional Paid-in Capitalrestricted common stock	Additional Paid-in CapitalStock options	Additional Paid-in CapitalMarket Based Award	Additional Paid-in Capital	Accumulated Deficitrestricted common stock	Accumulated DeficitStock options	Accumulated DeficitMarket Based Award	Accumulated Deficit	restricted common stock	Stock options	Market Based Award	Total
Balance at Dec. 31, 2019		$ 1					$ 8,107				$ 7,591,239				$ (8,396,312)				$ (796,965)
Balance (shares) at Dec. 31, 2019		14,487	24.01				81,071,831
Stock-based compensation		$ 0					$ 0				0				0				0
Stock-based compensation (in shares)		0					0
Additional Paid in Capital, Amortization of Equity Options And Awards	$ 0				$ 0				$ 10,528				$ 0				$ 10,528
Common stock issued for the commitment fee pursuant to the SEDA agreement		$ 0					$ 10				63,249				0				63,259
Common stock issued for the commitment fee pursuant to the SEDA agreement (in shares)		0					95,847
Net loss		$ 0					$ 0				0				(550,253)				(550,253)
Balance at Mar. 31, 2020		$ 1	$ 24.01				$ 8,117				7,665,016				(8,946,565)				(1,273,431)
Balance (shares) at Mar. 31, 2020		14,487					81,167,678
Balance at Dec. 31, 2020		$ 1					$ 8,991				17,355,968				(11,246,408)				6,118,552
Balance (shares) at Dec. 31, 2020		13,972					89,908,600
Stock-based compensation							$ 0				0				0				0
Stock-based compensation (in shares)							0
Common stock issued for services							$ 2				49,798				0				49,800
Common stock issued for services (in shares)							20,000
Restricted common stock issued (in shares)							2,000,000
Restricted common stock issued							$ 200				(200)				0				$ 0
Additional Paid in Capital, Amortization of Equity Options And Awards				$ 0	$ 0	$ 0		$ 126,625	$ 9,112	$ 130,245		$ 0	$ 0	$ 0		$ 126,625	$ 9,112	$ 130,245
Common stock issued for the commitment fee pursuant to the SEDA agreement (in shares)																			1,650,000
Common stock issued upon conversion of Series B Convertible Preferred Stock		$ (1)					$ 70				(69)				0				$ 0
Common stock issued upon conversion of Series B Convertible Preferred Stock (in shares)		(13,972)					698,600
Net loss							$ 0				0				(1,714,723)				(1,714,723)
Balance at Mar. 31, 2021							$ 9,263				$ 17,671,479				$ (12,961,131)				$ 4,719,611
Balance (shares) at Mar. 31, 2021							92,627,200

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Cash Flows From Operating Activities:
Net loss	$ (1,714,723)	$ (550,253)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of debt discount	108,124	19,220
Depreciation expense	4,771	543
Bad debt expense	0	335
Change in fair value of accrued issuable equity	132,577	0
Stock-based compensation	387,972	12,728
Changes in operating assets and liabilities:
Accounts receivable	(289,807)	(27,046)
Inventory	1,317	(4,514)
Prepaid expenses and other current assets	(425,178)	(39,142)
Accounts payable	111,838	(135,283)
Accrued expenses and other current liabilities	19,724	(6,698)
Accrued expenses and other current liabilities - related party	0	0
Deferred revenue	0	32,000
Total Adjustments	51,338	(147,857)
Net Cash Used In Operating Activities	(1,663,385)	(698,110)
Cash Flows from Financing Activities:
Proceeds from note payable	0	1,410,000
Payment of debt issuance costs	0	(130,000)
Repayments of note payable	(1,050,000)	(50,000)
Proceeds from line of credit, net	0	8,401
Payment of financing costs	0	(15,000)
Net Cash (Used In) Provided By Financing Activities	(1,050,000)	1,223,401
Net (Decrease) Increase In Cash	(2,713,385)	525,291
Cash - Beginning of Period	8,880,140	108,857	$ 108,857
Cash - End of Period	6,166,755	634,148	$ 8,880,140
Cash paid during the year for:
Interest	367	1,367
Income taxes		0
Non-cash investing and financing activities:
Value of common stock issued as a commitment fee for the SEDA agreement		63,259
Common stock issued upon conversion of Series B Convertible Preferred Stock	$ 70	0
Original issuance discount on note payable		$ 90,000

ORGANIZATION, NATURE OF OPERATI

ORGANIZATION, NATURE OF OPERATIONS AND BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2021
ORGANIZATION, NATURE OF OPERATIONS AND BASIS OF PRESENTATION
ORGANIZATION, NATURE OF OPERATIONS AND BASIS OF PRESENTATION	NOTE 1 ORGANIZATION, NATURE OF OPERATIONS AND BASIS OF PRESENTATION Organization and Operations KULR Technology Group, Inc., through its wholly-owned subsidiary, KULR Technology Corporation (collectively referred to as “KULR” or the “Company”), develops and commercializes high-performance thermal management technologies for electronics, batteries, and other components across a range of applications. Currently, the Company is focused on targeting both, high performance aerospace and Department of Defense ("DOD") applications, such as satellite communications, directed energy system and hypersonic vehicle, and applying them to mass market commercial applications, such as lithium-ion battery energy storage, electrical vehicle, 5G communication, cloud computer infrastructure, consumer and industrial devices. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10‑Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for annual financial statements. In the opinion of management, such statements include all adjustments (consisting only of normal recurring items) which are considered necessary for a fair presentation of the unaudited condensed consolidated financial statements of the Company as of March 31, 2021 and for the three months ended March 31, 2021 and 2020. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the operating results for the full year ending December 31, 2021 or any other period. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited financial statements and related disclosures as of December 31, 2020 and for the year then ended, which were filed with the Securities and Exchange Commission (“SEC”) on Form 10-K on March 19, 2021. Risks and Uncertainties In March 2020, the World Health Organization declared COVID-19, a novel strain coronavirus, a pandemic. During 2020 and continuing into 2021, the global economy has been, and continues to be, affected by COVID-19. While the Company continues to see signs of economic recovery as certain governments began to gradually ease restrictions, provide economic stimulus and vaccine distribution accelerated, the rate of recovery on a global basis has been affected by resurgence of the virus or its variants in certain jurisdictions. The Company continues to monitor the impact of COVID-19 on its business and operational assumptions and estimates, and determined there were no material adverse impacts on the Company’s results of operations and financial position at March 31, 2021. The full extent of the future impact of COVID-19 on the Company’s operations and financial condition is uncertain. Accordingly, COVID-19 could have a material adverse effect on the Company’s business, results of operations, financial condition and prospects during 2021 and beyond, including the demand for its products, interruptions to supply chains, ability to maintain regular research and development and manufacturing schedules as well as the capability to meet customer demands in a timely manner. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Since the date of the Annual Report on Form 10-K for the year ended December 31, 2020, there have been no material changes to the Company’s significant accounting policies, except as disclosed in this note. Liquidity As of March 31, 2021, the Company had cash and working capital of approximately $6.2 million and $4.7 million, respectively. For the three months ended March 31, 2021, the Company incurred a net loss of approximately $1.7 million and used cash in operations of approximately $1.7 million. On May 20, 2021, the Company raised approximately $6.5 million in connection with a convertible preferred financing agreement. In connection with the closing of the financing, the Company repaid in full its aggregate notes payable obligation of $1,540,000. See Note 10 – Subsequent Events for additional details. While the Company anticipates it will continue to incur operating losses and use cash in operating activities for the foreseeable future, the Company believes that its current working capital is sufficient in comparison to its anticipated cash usage for a period of at least twelve months subsequent to the filing date of these condensed consolidated financial statements. Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consisted primarily of cash, accounts receivable, revenue and accounts payable. Cash Concentrations A significant portion of the Company’s cash is held at one major financial institution. The Company has not experienced any losses in such accounts. Cash held in US bank institutions is currently insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 at each institution. There was an uninsured balance of $5,659,918 and $8,513,010 as of March 31, 2021 and December 31, 2020, respectively. Customer and Revenue Concentrations The Company had certain customers whose revenue individually represented 10% or more of the Company's total revenue, or whose accounts receivable balances individually represented 10% or more of the Company's total accounts receivable, as follows: Revenues Accounts Receivable For the Three Months Ended March 31, As of As of 2021 2020 March 31, 2021 December 31, 2020 Customer A * 23 % * * Customer B * 59 % * * Customer C 23 % * * * Customer D 14 % * 17 % * Customer E 51 % * 61 % * Customer F * * * 70 % Customer G * * * 19 % Customer H * * * 10 % Total 88 % 82 % 78 % 99 % * There is no assurance the Company will continue to receive significant revenues from any of these customers. Any reduction or delay in operating activity from any of the Company’s significant customers, or a delay or default in payment by any significant customer, or termination of agreements with significant customers, could materially harm the Company’s business and prospects. As a result of the Company’s significant customer concentrations, its gross profit and results from operations could fluctuate significantly due to changes in political, environmental, or economic conditions, or the loss of, reduction of business from, or less favorable terms with any of the Company’s significant customers. Vendor Concentrations During the three months ended March 31, 2021, three vendors represented more than 10% of the Company's purchases and during the three months ended March 31, 2020, four different vendors represented more than 10% of the Company's purchases, as follows: For the Three Months Ended March 31, 2021 2020 Vendor A * 11 % Vendor B * 13 % Vendor C * 15 % Vendor D * 23 % Vendor E 10 % * Vendor F 27 % * Vendor G 16 % * 53 % 61 % * Inventory Inventory is comprised of carbon fiber velvet ("CFV") thermal interface solutions and internal short circuit batteries, which are available for sale. Inventories are stated at the lower of cost or net realizable value. Cost is determined by the first-in, first-out method. The cost of inventory that is sold to third parties is included within cost of sales and the cost of inventory that is given as samples is included within operating expenses. The Company periodically reviews for slow-moving, excess or obsolete inventories. Products that are determined to be obsolete, if any, are written down to net realizable value. As of March 31, 2021 and December 31, 2020, the Company's inventory was comprised solely of finished goods. Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers” (“ASC 606”). The core principle of ASC 606 requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASC 606 defines a five-step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The following five steps are applied to achieve that core principle: · Step 1: Identify the contract with the customer; · Step 2: Identify the performance obligations in the contract; · Step 3: Determine the transaction price; · Step 4: Allocate the transaction price to the performance obligations in the contract; and · Step 5: Recognize revenue when the company satisfies a performance obligation. The Company recognizes revenue primarily from the following different types of contracts: · Product sales – Revenue is recognized at the point in time the customer obtains control of the goods and the Company satisfies its performance obligation, which is generally at the time it ships the product to the customer. · Contract services – Revenue is recognized at the point in time that the Company satisfies its performance obligation under the contract, which is generally at the time the services are fulfilled and/or accepted by the customer. The following table summarizes the Company's revenue recognized during the three months ended March 31, 2021 and 2020: For the Three Months Ended March 31, 2021 2020 Product sales $ 178,249 $ 28,000 Contract services 239,656 49,500 Total revenue $ 417,905 $ 77,500 As of March 31, 2021 and December 31, 2020, the Company had $20,000 and $20,000 of deferred revenue, respectively, from contracts with customers. The contract liabilities represent payments received from customers for which the Company had not yet satisfied its performance obligation under the contract., or the customers have not officially accepted the goods or services provided under the contract. During the three months ended March 31, 2021 and 2020, there was no revenue recognized from performance obligations satisfied (or partially satisfied) in previous periods. As of March 31, 2021 and December 2020, the Company recorded $63,612 and $31,212, respectively, of deferred labor costs, which is included in prepaid expenses and other current assets in the Company's condensed consolidated balance sheets. Deferred labor costs represent costs to fulfill the Company's contract service revenue. The Company will recognize the deferred labor costs as cost of revenues at the point in time that the Company satisfies its performance obligation under the respective contract, which is generally at the time the services are fulfilled and/or accepted by the customer. Shipping and Handling Costs Amounts billed to a customer in a sales transaction related to shipping and handling are recorded as revenue. Costs incurred for shipping and handling are included as cost of sales on the accompanying condensed consolidated statements of operations. Net Loss Per Common Share Basic net loss per common share is computed by dividing net loss by the weighted average number of vested common shares outstanding during the period. Diluted net loss per common share is computed by dividing net loss by the weighted average number of common and dilutive common-equivalent shares outstanding during each period. Dilutive common-equivalent shares consist of shares of non-vested restricted stock, if not anti-dilutive. The following shares were excluded from the calculation of weighted average dilutive common shares because their inclusion would have been anti-dilutive: For the Three Months Ended March 31, 2021 2020 Series B Convertible Preferred Stock — 724,350 Series C Convertible Preferred Stock — 240,100 Unvested Restricted Stock 2,000,000 — Market-based equity award 1,500,000 — Options 470,000 395,000 Warrants 6,787,911 210,025 Total 10,757,911 1,569,475 Reclassifications Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported consolidated net loss. Recently Adopted 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. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. The Company adopted ASU 2019-12 effective January 1, 2021 and its adoption did not have a material impact on the Company's condensed consolidated financial statements and related disclosures.

PREPAID EXPENSES AND OTHER CURR

PREPAID EXPENSES AND OTHER CURRENT ASSETS	3 Months Ended
	Mar. 31, 2021
PREPAID EXPENSES AND OTHER CURRENT ASSETS
PREPAID EXPENSES AND OTHER CURRENT ASSETS	NOTE 3 PREPAID EXPENSES AND OTHER CURRENT ASSETS As of March 31, 2021 and December 31, 2020, prepaid expenses and other current assets consisted of the following: March 31, December 31, 2021 2020 Deferred labor costs $ 63,612 $ 31,212 Deferred inventory costs 385,363 — Filing 9,889 9,944 Insurance 16,035 10,429 Marketing 46,353 56,853 Other 23,263 31,426 Professional 31,129 10,603 Security deposit 8,729 8,729 Total prepaid expenses $ 584,374 $ 159,196

ACCRUED EXPENSES AND OTHER CURR

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	3 Months Ended
	Mar. 31, 2021
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	NOTE 4 ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES As of March 31, 2021 and December 31, 2020, accrued expenses and other current liabilities consisted of the following: March 31, December 31, 2021 2020 Payroll and vacation $ 108,940 $ 279,054 Legal and professional fees 209,000 81,902 Other 96,798 34,056 Total accrued expenses and other current liabilities $ 414,738 $ 395,012

ACCRUED ISSUABLE EQUITY

ACCRUED ISSUABLE EQUITY	3 Months Ended
	Mar. 31, 2021
ACCRUED ISSUABLE EQUITY.
ACCRUED ISSUABLE EQUITY	NOTE 5 ACCRUED ISSUABLE EQUITY A summary of the accrued issuable equity activity during the three months ended March 31, 2021 is presented below. There was no accrued issuable equity during the three months ended March 31, 2020. Balance, January 1, 2021 $ 128,380 Additions 121,989 Reclassifications to equity (49,800) Mark-to market 132,577 Balance, March 31, 2021 $ 333,146 During the three months ended March 31, 2021, the Company entered into certain contractual arrangements for services in exchange for a fixed number of shares of common stock of the Company, having an aggregate grant date value of $121,989. The Company settled certain of its accrued issuable equity obligations through the issuance of an aggregate of 20,000 shares with an aggregate fair value of $49,800. During the three months ended March 31, 2021, the Company recorded $132,577 of losses related to the change in fair value of accrued issuable equity.

NOTES PAYABLE

NOTES PAYABLE	3 Months Ended
	Mar. 31, 2021
NOTES PAYABLE
NOTES PAYABLE	NOTE 6 NOTES PAYABLE A summary of notes payable activity during the three months ended March 31, 2021 and 2020, is presented below: Notes Debt Payable Discount Total Balance, January 1, 2021 $ $ (128,198) $ 2,321,802 Repayments in cash (1,050,000) — (1,050,000) Amortization of debt discount — 108,124 108,124 Outstanding, March 31, 2021 $ 1,400,000 $ (20,074) $ 1,379,926 During the year ended December 31, 2020, the Company entered into note purchase agreements in the original aggregate principal amount of $4,000,000 (“Principal Amount”) for cash proceeds of $3,710,000. The Notes included an original issue discount of $290,000, which represents the difference between the principal and proceeds received. The original issue discount, along with the $340,000 advisory fees were recorded as a debt discount which are being amortized over the term of the respective Notes using the effective interest rate method. The Notes bears no coupon interest (original issue discount only). The Company repaid principal $1,550,000 during the year ended December 31, 2020 and repaid additional principal in the amount of $1,050,000 during the three months ended March 31, 2021. Of the $1,400,000 principal balance remaining at March 31, 2021, $525,000 matures on May 31, 2021 and $875,000 matures on June 30, 2021. During the three months ended March 31, 2021 and 2020, the Company recorded amortization of debt discount in the amount of $108,124 and $19,220, respectively. Subsequent to March 31, 2021, the Company repaid principal on the Notes in the aggregate amount of $350,000.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2021
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	NOTE 7 RELATED PARTY TRANSACTIONS Accounts Payable – Related Party Accounts payable – related party consists of a liability of $2,628 and $2,628, as of March 31, 2021 and December 31, 2020, respectively, to Energy Science Laboratories, Inc. (“ESLI”), a company controlled by the Company’s Chief Technology Officer (“CTO”), in connection with consulting services provided to the Company associated with the development of the Company’s CFV thermal management solutions in prior periods.

STOCKHOLDERS' EQUITY (DEFICIENC

STOCKHOLDERS' EQUITY (DEFICIENCY)	3 Months Ended
	Mar. 31, 2021
STOCKHOLDERS' EQUITY (DEFICIENCY)
STOCKHOLDERS' EQUITY (DEFICIENCY)	NOTE 8 STOCKHOLDERS’ EQUITY (DEFICIENCY) Common Stock Issued upon Conversion of Series B Preferred Stock During the three months ended March 31, 2021, the Company issued an aggregate of 698,600 shares of common stock upon the conversion of 13,972 shares of Series B Preferred stock, after which there remained no further Series B Preferred Stock outstanding. Stock-Based Compensation During the three months ended March 31, 2021 and 2020, the Company recognized stock-based compensation expense of $387,972 and $12,728, respectively, related to common stock and restricted common stock, warrants and stock options, of which $7,405 and $8,112, respectively, is included in research and development expenses and $250,322 and $4,616, respectively, is included in selling, general and administrative expenses in the accompanying condensed consolidated statements of operations. The following table presents information related to stock-based compensation expense for the three months ended March 31, 2021 and 2020: For the Three Months Ended March 31, 2021 2020 Common stock issued for services $ 49,800 $ 2,200 Amortization of restricted common stock 126,625 — Amortization of market-based award 130,245 Stock options 9,112 10,528 Accrued issuable equity (common stock) 72,190 — Total $ 387,972 $ 12,728 (1) Common Stock Issued for Services On February 26, 2021, the Company issued 20,000 shares of immediately vested common stock with an aggregate grant date value of $49,800 for consulting services provided during January and February 2021. Restricted Common Stock During the three months ended March 31, 2021, the Company recorded stock-based compensation of $17,875 in connection with the amortization of restricted stock issued pursuant to consulting agreements during the fourth quarter of 2020. On March 1, 2021, the Company issued 2,000,000 shares of its common stock (the “COO Shares”) with an aggregate grant date value of $5,220,000 in connection with the appointment of the Company’s Chief Operating Officer (see Note 9 – Commitments and Contingencies). The shares vest in four equal annual installments beginning on March 1, 2022. During March 2021, the Company recorded stock-based compensation of $108,750 related to the amortization of the grant date value of the COO Shares. As of March 31, 2021, there is $5,178,744 of unrecognized stock-based compensation related to restricted stock awards which will be amortized over the remaining vesting period of 3.89 years. Stock Options On January 1, 2020, the Company granted five-year options to purchase a total of 10,000 shares of common stock at an exercise price of $0.66 per share to an employee pursuant to the 2018 Plan. One-fourth of the options will vest on the first-year anniversary of the grant date and the remaining options vest monthly over three years. The options had an aggregate grant date value of $3,609 which is recognized over the vesting period. On March 12, 2021, in connection with the hire of its Senior Director of Product Development, the Company granted a five-year option to purchase 100,000 shares of common stock to its Senior Director of Product Development. pursuant to the 2018 Plan. The option is exercisable at an exercise price of $2.44 per share. One-fourth of the options will vest on the first-year anniversary of the grant date and the remaining options vest monthly over three years. The options had an aggregate grant date value of $57,819 which is recognized over the vesting period. The Company has computed the fair value of stock options granted using the Black-Scholes option pricing model. In applying the Black-Scholes option pricing model, the Company used the following assumptions: For the Three Months Ended March 31, Risk free interest rate 0.85 % 1.58 % Expected term (years) 2.50 2.50 Expected volatility 93.00 % 93.00 % Expected dividends 0.00 % 0.00 % Option forfeitures are accounted for at the time of occurrence. The expected term used is the estimated period of time that options granted are expected to be outstanding. The Company utilizes the “simplified” method to develop an estimate of the expected term of “plain vanilla” employee option grants. The Company does not yet have a trading history to support its historical volatility calculations. Accordingly, the Company is utilizing an expected volatility figure based on a review of the historical volatility of comparable entities over a period of time equivalent to the expected life of the instrument being valued. The risk-free interest rate was determined from the implied yields from U.S. Treasury zero-coupon bonds with a remaining term consistent with the expected term of the instrument being valued. The weighted average grant date fair value per share of options granted during the three months ended March 31, 2021 and 2020 was $0.58 and $0.36, respectively. A summary of options activity during the three months ended March 31, 2021 is presented below: Weighted Weighted Average Average Number of Exercise Remaining Intrinsic Options Price Term (Yrs) Value Outstanding, January 1, 2021 370,000 $ 0.66 Granted 100,000 2.44 Exercised — — Expired — — Forfeited — — Outstanding, March 31, 2021 470,000 $ 1.04 2.3 $ 677,400 Exercisable, March, 2021 268,607 $ 0.66 2.8 $ 488,865 The following table presents information related to stock options as of March 31, 2021: Options Outstanding Options Exercisable Weighted Outstanding Average Exercisable Exercise Number of Remaining Life Number of Price Options In Years Options $ 0.66 370,000 2.8 268,607 $ 2.44 100,000 — — 470,000 2.8 268,607 Market-Based Award On March 1, 2021, in connection with the appointment of the Company’s COO (see Note 9 – Commitments and Contingencies), the COO is eligible to receive of up to 1,500,000 shares of the Company’s common stock which will be earned based upon achieving certain market capitalization milestones up to $4 billion. The grant date value of this award of $2,911,420 was determined using a Monte Carlo valuation model for market-based vesting awards, and will be amortized over each of the tranches prospective derived service period. The following assumptions used were used: Risk free interest rate 0.71 % Expected volatility 98.9 % Expected dividend yield 0.00 % Weighted average derived service period 2.20 years Fair value of common stock on date of grant $ 2.61

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2021
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE 9 COMMITMENTS AND CONTINGENCIES Operating Lease Effective December 22, 2020, the Company entered into a lease addendum to extend the term of its original lease, for space located in San Diego, California used for research and development activities, from December 31, 2020 to June 30, 2021. Monthly rental payments under the renewed lease total $5,127, which is comprised of $4,572 of base rent plus $555 of association fees. During the three months ended March 31, 2021 and 2020, operating lease expense was $15,402 and $10,016, respectively. As of March 31, 2021, the Company does not have any financing leases. Appointment of President and Chief Operating Officer On January 4, 2021, the Company entered into a consulting agreement with a new Executive Vice President. The consultant provided management and business development services to the Company. In consideration for services provided in January and February 2021, the Company compensated the consultant with $10,000 per month and 10,000 shares of its common stock per month. Effective March 1, 2021, the Company appointed the consultant as President and Chief Operating Officer (“COO”) of the Company, to hold office until the earlier of the expiration of the term of office, a successor is duly elected and qualified, or the earlier of such officer’s death, resignation, disqualification, or removal. In connection with his appointment to COO, the COO received an aggregate of 2,000,000 shares of common stock, which shares will vest in four equal annual installments beginning on March 1, 2022. Additionally, the COO is eligible for incentive-based share grants totaling up to 1,500,000 shares of the Company’s common stock, which will be earned based on achieving certain market capitalization milestones up to $4 billion (see Note 8 – Stockholders Equity (Deficiency). Director Compensation On February 2, 2021, the Board of the Company appointed three new directors on the Board, to hold office until the earlier of the expiration of the term of office of the director whom they have replaced, a successor is duly elected and qualified, or the earlier of such director’s death, resignation, disqualification, or removal. The three directors appointment is contingent upon the Company’s common stock being approved for uplisting to a national exchange. Furthermore, once appointed, each director will receive quarterly cash compensation equal to $10,000 and each director will be granted 20,000 shares of common stock, which shares shall vest quarterly in 5,000 share installments with the first installment vesting immediately upon their appointment.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2021
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 10 SUBSEQUENT EVENTS Technology Development and Sponsorship Agreement On March 31, 2021, the Company entered into a multi-year technology development and sponsorship agreement, pursuant to which the Company has committed to spend an aggregate of $1,650,000 in three installments which are due April 1, 2021, January 1, 2022, and January 1, 2023. Operating Lease On April 5, 2021, the Company entered into an agreement to lease office space for a thirty-six-month period, commencing June 1, 2021. Monthly rental payments under the new lease total $23,787, which are comprised of $18,518 of base rent plus $5,269 for common area costs. Common Stock On April 6, 2021, the Company issued 20,000 shares of immediately vested common stock with an aggregate grant date value of $51,000 for legal services. The shares were issued pursuant to the Company’s 2018 Incentive Plan. During April 2021, the Company issued an aggregate of 300,000 shares of common stock upon the exercise of outstanding warrants pursuant to which the Company received an aggregate of $375,000 of gross proceeds. Securities Purchase Agreement On May 19, 2021, the Company entered into a Securities Purchase Agreement (“SPA”) with an investor, pursuant to which the Company agreed to issue to the investor an aggregate of 650 shares of Series D convertible preferred stock (the “Series D Preferred”) pursuant to a new designation of preferred stock, and one-year warrants to purchase 2,600,000 shares of common stock (the “Warrants”) at a price of $2.50 per share, for aggregate gross proceeds of $6,500,000 (the “Offering”). The Company will also pay the investor a commitment fee of 1,300,000 shares of common stock at the closing of the Offering. The closing of the Offering occurred on May 20, 2021. In connection with the closing of the financing, the Company repaid in full its aggregate notes payable obligation of $1,540,000. The Series D Preferred will have a fixed conversion price of $2.05, will be convertible into an aggregate of 3,170,732 shares of common stock and will have the right to vote on an as-converted basis. Holders of the Series D Preferred shall be entitled to receive cumulative dividends annually at an annual rate equal to ten percent (10%). Dividends shall be payable in cash or, at the option of the holder of the Series D Preferred, converted into shares of common stock as provided in the certificate of designation for the Series D Preferred. Provided that the shares of common stock issuable upon conversion of the Series D Preferred is registered pursuant to an effective registration statement, the Company shall have the option, but not the obligation, to redeem, in cash, all or part of the Series D Preferred. As a condition to entering into the SPA, the investor agreed that, commencing on the closing date and until the earliest of (i) listing of the Company’s common stock on a national exchange or (ii) June 4, 2021, the Series D Preferred and the Warrants will be subject to a standard lock-up provision.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Liquidity	Liquidity As of March 31, 2021, the Company had cash and working capital of approximately $6.2 million and $4.7 million, respectively. For the three months ended March 31, 2021, the Company incurred a net loss of approximately $1.7 million and used cash in operations of approximately $1.7 million. On May 20, 2021, the Company raised approximately $6.5 million in connection with a convertible preferred financing agreement. In connection with the closing of the financing, the Company repaid in full its aggregate notes payable obligation of $1,540,000. See Note 10 – Subsequent Events for additional details. While the Company anticipates it will continue to incur operating losses and use cash in operating activities for the foreseeable future, the Company believes that its current working capital is sufficient in comparison to its anticipated cash usage for a period of at least twelve months subsequent to the filing date of these condensed consolidated financial statements.
Concentrations of Credit Risk	Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consisted primarily of cash, accounts receivable, revenue and accounts payable. Cash Concentrations A significant portion of the Company’s cash is held at one major financial institution. The Company has not experienced any losses in such accounts. Cash held in US bank institutions is currently insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 at each institution. There was an uninsured balance of $5,659,918 and $8,513,010 as of March 31, 2021 and December 31, 2020, respectively. Customer and Revenue Concentrations The Company had certain customers whose revenue individually represented 10% or more of the Company's total revenue, or whose accounts receivable balances individually represented 10% or more of the Company's total accounts receivable, as follows: Revenues Accounts Receivable For the Three Months Ended March 31, As of As of 2021 2020 March 31, 2021 December 31, 2020 Customer A * 23 % * * Customer B * 59 % * * Customer C 23 % * * * Customer D 14 % * 17 % * Customer E 51 % * 61 % * Customer F * * * 70 % Customer G * * * 19 % Customer H * * * 10 % Total 88 % 82 % 78 % 99 % * There is no assurance the Company will continue to receive significant revenues from any of these customers. Any reduction or delay in operating activity from any of the Company’s significant customers, or a delay or default in payment by any significant customer, or termination of agreements with significant customers, could materially harm the Company’s business and prospects. As a result of the Company’s significant customer concentrations, its gross profit and results from operations could fluctuate significantly due to changes in political, environmental, or economic conditions, or the loss of, reduction of business from, or less favorable terms with any of the Company’s significant customers. Vendor Concentrations During the three months ended March 31, 2021, three vendors represented more than 10% of the Company's purchases and during the three months ended March 31, 2020, four different vendors represented more than 10% of the Company's purchases, as follows: For the Three Months Ended March 31, 2021 2020 Vendor A * 11 % Vendor B * 13 % Vendor C * 15 % Vendor D * 23 % Vendor E 10 % * Vendor F 27 % * Vendor G 16 % * 53 % 61 % *
Inventory	Inventory Inventory is comprised of carbon fiber velvet ("CFV") thermal interface solutions and internal short circuit batteries, which are available for sale. Inventories are stated at the lower of cost or net realizable value. Cost is determined by the first-in, first-out method. The cost of inventory that is sold to third parties is included within cost of sales and the cost of inventory that is given as samples is included within operating expenses. The Company periodically reviews for slow-moving, excess or obsolete inventories. Products that are determined to be obsolete, if any, are written down to net realizable value. As of March 31, 2021 and December 31, 2020, the Company's inventory was comprised solely of finished goods.
Revenue Recognition	Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers” (“ASC 606”). The core principle of ASC 606 requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASC 606 defines a five-step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The following five steps are applied to achieve that core principle: · Step 1: Identify the contract with the customer; · Step 2: Identify the performance obligations in the contract; · Step 3: Determine the transaction price; · Step 4: Allocate the transaction price to the performance obligations in the contract; and · Step 5: Recognize revenue when the company satisfies a performance obligation. The Company recognizes revenue primarily from the following different types of contracts: · Product sales – Revenue is recognized at the point in time the customer obtains control of the goods and the Company satisfies its performance obligation, which is generally at the time it ships the product to the customer. · Contract services – Revenue is recognized at the point in time that the Company satisfies its performance obligation under the contract, which is generally at the time the services are fulfilled and/or accepted by the customer. The following table summarizes the Company's revenue recognized during the three months ended March 31, 2021 and 2020: For the Three Months Ended March 31, 2021 2020 Product sales $ 178,249 $ 28,000 Contract services 239,656 49,500 Total revenue $ 417,905 $ 77,500 As of March 31, 2021 and December 31, 2020, the Company had $20,000 and $20,000 of deferred revenue, respectively, from contracts with customers. The contract liabilities represent payments received from customers for which the Company had not yet satisfied its performance obligation under the contract., or the customers have not officially accepted the goods or services provided under the contract. During the three months ended March 31, 2021 and 2020, there was no revenue recognized from performance obligations satisfied (or partially satisfied) in previous periods. As of March 31, 2021 and December 2020, the Company recorded $63,612 and $31,212, respectively, of deferred labor costs, which is included in prepaid expenses and other current assets in the Company's condensed consolidated balance sheets. Deferred labor costs represent costs to fulfill the Company's contract service revenue. The Company will recognize the deferred labor costs as cost of revenues at the point in time that the Company satisfies its performance obligation under the respective contract, which is generally at the time the services are fulfilled and/or accepted by the customer.
Shipping and Handling Costs	Shipping and Handling Costs Amounts billed to a customer in a sales transaction related to shipping and handling are recorded as revenue. Costs incurred for shipping and handling are included as cost of sales on the accompanying condensed consolidated statements of operations.
Net Loss Per Common Share	Net Loss Per Common Share Basic net loss per common share is computed by dividing net loss by the weighted average number of vested common shares outstanding during the period. Diluted net loss per common share is computed by dividing net loss by the weighted average number of common and dilutive common-equivalent shares outstanding during each period. Dilutive common-equivalent shares consist of shares of non-vested restricted stock, if not anti-dilutive. The following shares were excluded from the calculation of weighted average dilutive common shares because their inclusion would have been anti-dilutive: For the Three Months Ended March 31, 2021 2020 Series B Convertible Preferred Stock — 724,350 Series C Convertible Preferred Stock — 240,100 Unvested Restricted Stock 2,000,000 — Market-based equity award 1,500,000 — Options 470,000 395,000 Warrants 6,787,911 210,025 Total 10,757,911 1,569,475
Reclassifications	Reclassifications Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported consolidated net loss.
Recently Adopted Accounting Pronouncements	Recently Adopted 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. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. The Company adopted ASU 2019-12 effective January 1, 2021 and its adoption did not have a material impact on the Company's condensed consolidated financial statements and related disclosures.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Schedule of concentrations of credit risk	Revenues Accounts Receivable For the Three Months Ended March 31, As of As of 2021 2020 March 31, 2021 December 31, 2020 Customer A * 23 % * * Customer B * 59 % * * Customer C 23 % * * * Customer D 14 % * 17 % * Customer E 51 % * 61 % * Customer F * * * 70 % Customer G * * * 19 % Customer H * * * 10 % Total 88 % 82 % 78 % 99 % * For the Three Months Ended March 31, 2021 2020 Vendor A * 11 % Vendor B * 13 % Vendor C * 15 % Vendor D * 23 % Vendor E 10 % * Vendor F 27 % * Vendor G 16 % * 53 % 61 % *
Schedule of revenue recognized	For the Three Months Ended March 31, 2021 2020 Product sales $ 178,249 $ 28,000 Contract services 239,656 49,500 Total revenue $ 417,905 $ 77,500
Schedule of weighted average dilutive common shares because their inclusion would have been anti-dilutive	For the Three Months Ended March 31, 2021 2020 Series B Convertible Preferred Stock — 724,350 Series C Convertible Preferred Stock — 240,100 Unvested Restricted Stock 2,000,000 — Market-based equity award 1,500,000 — Options 470,000 395,000 Warrants 6,787,911 210,025 Total 10,757,911 1,569,475

PREPAID EXPENSES AND OTHER CU_2

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)	3 Months Ended
	Mar. 31, 2021
PREPAID EXPENSES AND OTHER CURRENT ASSETS
Schedule of prepaid expenses and other current assets	March 31, December 31, 2021 2020 Deferred labor costs $ 63,612 $ 31,212 Deferred inventory costs 385,363 — Filing 9,889 9,944 Insurance 16,035 10,429 Marketing 46,353 56,853 Other 23,263 31,426 Professional 31,129 10,603 Security deposit 8,729 8,729 Total prepaid expenses $ 584,374 $ 159,196

ACCRUED EXPENSES AND OTHER CU_2

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)	3 Months Ended
	Mar. 31, 2021
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Schedule of accrued expenses and other current liabilities	March 31, December 31, 2021 2020 Payroll and vacation $ 108,940 $ 279,054 Legal and professional fees 209,000 81,902 Other 96,798 34,056 Total accrued expenses and other current liabilities $ 414,738 $ 395,012

ACCRUED ISSUABLE EQUITY (Tables

ACCRUED ISSUABLE EQUITY (Tables)	3 Months Ended
	Mar. 31, 2021
ACCRUED ISSUABLE EQUITY.
Schedule of accrued issuable equity	Balance, January 1, 2021 $ 128,380 Additions 121,989 Reclassifications to equity (49,800) Mark-to market 132,577 Balance, March 31, 2021 $ 333,146

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	3 Months Ended
	Mar. 31, 2021
NOTES PAYABLE
Summary of notes payable activity	A summary of notes payable activity during the three months ended March 31, 2021 and 2020, is presented below: Notes Debt Payable Discount Total Balance, January 1, 2021 $ $ (128,198) $ 2,321,802 Repayments in cash (1,050,000) — (1,050,000) Amortization of debt discount — 108,124 108,124 Outstanding, March 31, 2021 $ 1,400,000 $ (20,074) $ 1,379,926

STOCKHOLDERS' EQUITY (DEFICIE_2

STOCKHOLDERS' EQUITY (DEFICIENCY) (Tables)	3 Months Ended
	Mar. 31, 2021
Schedule of stock option activity outstanding and exercisable	A summary of options activity during the three months ended March 31, 2021 is presented below: Weighted Weighted Average Average Number of Exercise Remaining Intrinsic Options Price Term (Yrs) Value Outstanding, January 1, 2021 370,000 $ 0.66 Granted 100,000 2.44 Exercised — — Expired — — Forfeited — — Outstanding, March 31, 2021 470,000 $ 1.04 2.3 $ 677,400 Exercisable, March, 2021 268,607 $ 0.66 2.8 $ 488,865 The following table presents information related to stock options as of March 31, 2021: Options Outstanding Options Exercisable Weighted Outstanding Average Exercisable Exercise Number of Remaining Life Number of Price Options In Years Options $ 0.66 370,000 2.8 268,607 $ 2.44 100,000 — — 470,000 2.8 268,607
Schedule of Information relating to stock based compensation	For the Three Months Ended March 31, 2021 2020 Common stock issued for services $ 49,800 $ 2,200 Amortization of restricted common stock 126,625 — Amortization of market-based award 130,245 Stock options 9,112 10,528 Accrued issuable equity (common stock) 72,190 — Total $ 387,972 $ 12,728
Stock options
Schedule of stock options granted	For the Three Months Ended March 31, Risk free interest rate 0.85 % 1.58 % Expected term (years) 2.50 2.50 Expected volatility 93.00 % 93.00 % Expected dividends 0.00 % 0.00 %
Market Based Award
Schedule of stock options granted	Risk free interest rate 0.71 % Expected volatility 98.9 % Expected dividend yield 0.00 % Weighted average derived service period 2.20 years Fair value of common stock on date of grant $ 2.61

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Customer concentrations (Details) - item	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Number of vendor	3	4
Revenues [Member]
Concentration Risk, Percentage	88.00%	82.00%
Accounts Receivable [Member]
Concentration Risk, Percentage	78.00%		99.00%
Accounts Payable [Member]
Concentration Risk, Percentage	53.00%	61.00%
Customer A [Member] | Revenues [Member]
Concentration Risk, Percentage		23.00%
Customer B [Member] | Revenues [Member]
Concentration Risk, Percentage		59.00%
Customer C [Member] | Revenues [Member]
Concentration Risk, Percentage	23.00%
Customer D [Member] | Revenues [Member]
Concentration Risk, Percentage	14.00%
Customer D [Member] | Accounts Receivable [Member]
Concentration Risk, Percentage	17.00%
Customer E [Member] | Revenues [Member]
Concentration Risk, Percentage	51.00%
Customer E [Member] | Accounts Receivable [Member]
Concentration Risk, Percentage	61.00%
Customer F [Member] | Accounts Receivable [Member]
Concentration Risk, Percentage			70.00%
Customer G [Member] | Accounts Receivable [Member]
Concentration Risk, Percentage			19.00%
Customer H [Member] | Accounts Receivable [Member]
Concentration Risk, Percentage			10.00%
Vendor A [Member] | Accounts Payable [Member]
Concentration Risk, Percentage		11.00%
Vendor B [Member] | Accounts Payable [Member]
Concentration Risk, Percentage		13.00%
Vendor C [Member] | Accounts Payable [Member]
Concentration Risk, Percentage		15.00%
Vendor D [Member] | Accounts Payable [Member]
Concentration Risk, Percentage		23.00%
Vendor E [Member] | Accounts Payable [Member]
Concentration Risk, Percentage	10.00%
Vendor F [Member] | Accounts Payable [Member]
Concentration Risk, Percentage	27.00%
All other vendors [Member] | Accounts Payable [Member]
Concentration Risk, Percentage	16.00%

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - consolidated statements of operations: (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 417,905	$ 77,500
Product sales [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	178,249	28,000
Contract services [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 239,656	$ 49,500

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - weighted average dilutive common shares (Details) - shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	10,757,911	1,569,475
Series B Convertible Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		724,350
Series C Convertible Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		240,100
Unvested Restricted Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	2,000,000
Market-based equity award
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,500,000
options
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	470,000	395,000
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	6,787,911	210,025

SUMMARY OF SIGNIFICANT ACCOUN_7

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) - USD ($)	May 20, 2021	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Cash		$ 6,166,755		$ 8,880,140
Working capital deficit		4,700,000
Net loss		(1,714,723)	$ (550,253)
Cash used in operations		(1,663,385)	(698,110)
Amount raised on convertible preferred financing agreement	$ 6,500,000
Repayments of note payable	$ 1,540,000	1,050,000	50,000
Cash, FDIC Insured Amount		250,000
Uninsured cash		5,659,918		8,513,010
Deferred revenue		20,000		20,000
Revenue Recognized		0	$ 0
Deferred labor costs		$ 63,612		$ 31,212

PREPAID EXPENSES AND OTHER CU_3

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Deferred labor costs	$ 63,612	$ 31,212
Total prepaid expenses and other current assets	584,374	159,196
Business development services [Member]
Deferred labor costs	63,612	31,212
Deferred inventory costs	385,363
Filing	9,889	9,944
Insurance	16,035	10,429
Marketing	46,353	56,853
Other	23,263	31,426
Professional	31,129	10,603
Security deposit	8,729	8,729
Total prepaid expenses and other current assets	$ 584,374	$ 159,196

ACCRUED EXPENSES AND OTHER CU_3

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Payroll and vacation	$ 108,940	$ 279,054
Legal and professional fees	209,000	81,902
Other	96,798	34,056
Total accrued expenses and other current liabilities	$ 414,738	$ 395,012

ACCRUED ISSUABLE EQUITY (Detail

ACCRUED ISSUABLE EQUITY (Details)	3 Months Ended
	Mar. 31, 2021USD ($)
Movements In Accrued Issuable Equity For Services, Current [Roll Forward]
Beginning balance	$ 128,380
Additions	121,989
Reclassifications to equity	(49,800)
Mark-to market	132,577
Ending balance	$ 333,146

ACCRUED ISSUABLE EQUITY - Addit

ACCRUED ISSUABLE EQUITY - Additional information (Details)	3 Months Ended
	Mar. 31, 2021USD ($)shares
Value of services	$ 121,989
Shares issued in exchange for services, number | shares	20,000
Shares issued in exchange for services, aggregate fair value	$ 49,800
Gains (losses) related to the change in fair value	$ 132,577

NOTES PAYABLE (Details)

NOTES PAYABLE (Details)	3 Months Ended
	Mar. 31, 2021USD ($)
Movements In Notes Payable Current, Gross [Roll Forward]
Beginning balance	$ 2,450,000
Repayments in cash	(1,050,000)
Ending balance	1,400,000
Movements In Debt Instrument, Unamortized Discount, Current [Roll Forward]
Beginning balance	(128,198)
Amortization of debt discount	108,124
Ending balance	(20,074)
Movements In Notes Payable Current [Roll Forward]
Beginning balance	2,321,802
Repayments in cash	(1,050,000)
Amortization of debt discount	108,124
Ending balance	$ 1,379,926

NOTES PAYABLE - Additional info

NOTES PAYABLE - Additional information (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Jun. 30, 2021	May 31, 2021	Feb. 27, 2020
Debt Instrument [Line Items]
Proceeds from notes payable	$ 0	$ 1,410,000
Advisory fees paid to financial advisor			$ 340,000
Original issuance discount on note payable		90,000
principal balance amount	1,400,000		2,450,000		$ 525,000
Amortization of debt discount	108,124	19,220
Note payable
Debt Instrument [Line Items]
Aggregate principal amount			4,000,000			$ 4,000,000
Proceeds from notes payable			3,710,000
Original issuance discount on note payable			290,000
Repayments of note payable	1,050,000		$ 1,550,000
principal balance amount	1,400,000			$ 875,000
Amortization of debt discount	108,124	$ 19,220
Repaid in stock	$ 350,000

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Related Party Transaction [Line Items]
Accounts payable - related party	$ 2,628	$ 2,628
Chief Technology Officer CTO [Member]
Related Party Transaction [Line Items]
Accounts payable - related party	$ 2,628	$ 2,628

STOCKHOLDERS' EQUITY (DEFICIE_3

STOCKHOLDERS' EQUITY (DEFICIENCY) - Additional Information (Details) - USD ($)	Mar. 12, 2021	Mar. 01, 2021	Feb. 26, 2021	Jan. 01, 2020	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Common stock authorized					500,000,000		500,000,000
Allocated Share-based Compensation Expense					$ 387,972	$ 12,728
Stock-based compensation					$ 387,972	12,728
Aggregate proceeds			$ 49,800
Convertible Preferred Stock, Shares Issued upon Conversion					698,600
Convertible Preferred Stock, Shares Reserved for Future Issuance					13,972
Common stock issued for services			$ 20,000		$ 49,800
Unrecognized stock-based compensation expense					$ 5,178,744
Weighted average remaining vesting period					3 years 10 months 21 days
Shares of common stock issued related to consulting services provided					20,000
Options Outstanding, Exercise Price					$ 0.66
Research and development expenses
Allocated Share-based Compensation Expense					$ 7,405	8,112
Selling, general and administrative expenses
Allocated Share-based Compensation Expense					250,322	$ 4,616
restricted common stock
Stock-based compensation		$ 108,750			$ 17,875
Grant date value of stock		$ 5,220,000
Restricted common stock issued (in shares)		2,000,000
Stock options
Share-based Compensation Arrangement by Share-based Payment Award, Option, Nonvested, Weighted Average Exercise Price					$ 0.58	$ 0.36
Shares of common stock issued related to consulting services provided	100,000			10,000
Options Outstanding, Exercise Price	$ 2.44			$ 0.66
Share based Compensation Arrangement By Share based Payment Award Options Non vested Weighted Average Aggregate Grant Date Fair Value	$ 57,819			$ 3,609
Market Based Award
Common stock authorized		1,500,000
Grant date value of stock		$ 2,911,420
Market Cap		$ 4,000,000,000
restricted common stock
Allocated Share-based Compensation Expense					$ 126,625
Restricted common stock issued (in shares)					2,000,000
Common stock issued for services					$ 2

STOCKHOLDERS' EQUITY (DEFICIE_4

STOCKHOLDERS' EQUITY (DEFICIENCY) - Stock-Based Compensation (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Allocated Share-based Compensation Expense	$ 387,972	$ 12,728
Stock options
Allocated Share-based Compensation Expense	9,112	10,528
restricted common stock
Allocated Share-based Compensation Expense	126,625
Common Stock Issued For Services
Allocated Share-based Compensation Expense	49,800	$ 2,200
Market Based Award
Allocated Share-based Compensation Expense	130,245
Accrued Issuable Equity Common Stock
Allocated Share-based Compensation Expense	$ 72,190

STOCKHOLDERS' EQUITY (DEFICIE_5

STOCKHOLDERS' EQUITY (DEFICIENCY) - Option pricing model (Details) - $ / shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Stock options
Risk free interest rate (as a percent)	0.85%	1.58%
Expected term (years)	2 years 6 months	2 years 6 months
Expected volatility (as a percent)	93.00%	93.00%
Expected dividends (as a percent)	0.00%	0.00%
Market Based Award
Risk free interest rate (as a percent)	0.71%
Expected volatility (as a percent)	98.90%
Expected dividends (as a percent)	0.00%
Weighted average derived service period	2 years 2 months 12 days
Estimated fair value of common stock	2.61

STOCKHOLDERS' EQUITY (DEFICIE_6

STOCKHOLDERS' EQUITY (DEFICIENCY) - Stock activity (Details)	3 Months Ended
	Mar. 31, 2021USD ($)$ / sharesshares
STOCKHOLDERS' EQUITY (DEFICIENCY)
Number of Options, Outstanding | shares	370,000
Number of Options, Granted | shares	100,000
Number of Options, Outstanding | shares	470,000
Number of Options, Exercisable | shares	268,607
Weighted Average Exercise Price, Outstanding | $ / shares	$ 0.66
Weighted Average Exercise Price, Granted | $ / shares	2.44
Weighted Average Exercise Price Outstanding | $ / shares	1.04
Weighted Average Exercise Price Exercisable | $ / shares	$ 0.66
Weighted Average Remaining Term, Outstanding	2 years 3 months 18 days
Weighted Average Remaining Term, Exercisable	2 years 9 months 18 days
Number of Options Intrinsic Value, Outstanding | $	$ 677,400
Number of Options Intrinsic Value, Exercisable | $	$ 488,865

STOCKHOLDERS' EQUITY (DEFICIE_7

STOCKHOLDERS' EQUITY (DEFICIENCY) - Stock options (Details) - $ / shares	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Options Outstanding, Exercise Price	$ 0.66
Options Outstanding, Number of Options	470,000	370,000
Options Exercisable, Weighted Average Remaining Life	2 years 9 months 18 days
Options Exercisable Number of Options	268,607
0.66 Exercise Price
Options Outstanding, Exercise Price	$ 0.66
Options Outstanding, Number of Options	370,000
Options Exercisable, Weighted Average Remaining Life	2 years 9 months 18 days
Options Exercisable Number of Options	268,607
0.244 Exercise Price
Options Outstanding, Exercise Price	$ 2.44
Options Outstanding, Number of Options	100,000
Options Exercisable, Weighted Average Remaining Life	0 years

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details)	May 20, 2021USD ($)	Feb. 02, 2021USD ($)director	Jan. 04, 2021USD ($)installment	Mar. 31, 2021USD ($)shares	Mar. 31, 2020USD ($)	Feb. 28, 2021USD ($)	Dec. 22, 2020USD ($)
Monthly rental payments							$ 5,127
Base rent							4,572
Association fees							$ 555
Operating Lease, Expense				$ 15,402	$ 10,016
Repayments of Notes Payable	$ 1,540,000			1,050,000	$ 50,000
Number of directors | director		3
Executive Vice President
Quarterly cash compensation payable to directors			$ 10,000			$ 10,000
Market Cap				$ 4,000,000,000
Number Of Equal Annual Installments | installment			4
Chief Operating Officer
Number of awards authorized | shares				1,500,000
Repayments of Notes Payable			$ 2,000,000
Directors
Quarterly cash compensation payable to directors		$ 10,000
Director 2
Quarterly cash compensation payable to directors		20,000
Director 3
Quarterly cash compensation payable to directors		$ 5,000

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($)	May 20, 2021	May 19, 2021	Apr. 06, 2021	Apr. 05, 2021	Apr. 30, 2021	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Dec. 22, 2020
Subsequent Event [Line Items]
Monthly rental payments									$ 5,127
Common Stock Issued as a Commitment Fee for the Seda Agreement, Shares						1,650,000
Shares issued in exchange for services, number						20,000
Options Outstanding, Number of Options						470,000		370,000
Aggregate gross proceeds	$ 6,500,000
Repayments of note payable	$ 1,540,000					$ 1,050,000	$ 50,000
Convertible Preferred Stock, Shares Issued upon Conversion						698,600
Subsequent Event
Subsequent Event [Line Items]
Monthly rental payments				$ 23,787
Operating Lease, Base Rent				18,518
Operating Lease Common Area Costs				$ 5,269
Issued shares of restricted common stock					$ 375,000
Options Outstanding, Number of Options					300,000
Subsequent Event | Securities Purchase Agreement [Member] | Series D Convertible Preferred Stock [Member]
Subsequent Event [Line Items]
Common stock issued for cash, net of issuance costs (in shares)		650
Warrants to purchase common shares issued		2,600,000
Term of warrants		1 year
Shares issued price (in dollars per share)		$ 2.50
Aggregate gross proceeds		$ 6,500,000
Commitment fee shares of common stock		1,300,000
Repayments of note payable		$ 1,540,000
Fixed conversion price		$ 2.05
Convertible Preferred Stock, Shares Issued upon Conversion		3,170,732
Cumulative dividends annual rate precentage		10.00%
Vested immediately
Subsequent Event [Line Items]
Legal Fees			$ 51,000
Vested immediately | Subsequent Event
Subsequent Event [Line Items]
Shares issued in exchange for services, number			20,000