Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 11, 2022 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Entity File Number | 001-40454 | |
Entity Registrant Name | KULR TECHNOLOGY GROUP, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 81-1004273 | |
Entity Address, Address Line One | 4863 Shawline Street | |
Entity Address, City or Town | San Diego | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92111 | |
City Area Code | 408 | |
Local Phone Number | 663-5247 | |
Entity Current Reporting Status | Yes | |
Entity Central Index Key | 0001662684 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Trading Symbol | KULR | |
Entity Common Stock, Shares Outstanding | 107,252,860 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NYSE |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Cash | $ 12,991,732 | $ 14,863,301 |
Accounts receivable | 564,229 | 136,326 |
Inventory | 284,572 | 191,311 |
Prepaid expenses and other current assets | 1,786,145 | 570,360 |
Total Current Assets | 15,626,678 | 15,761,298 |
Property and equipment, net | 409,992 | 374,475 |
Vendor deposits | 2,582,958 | 2,153,950 |
Security deposits | 58,941 | 58,941 |
Intangible assets, net | 210,663 | 216,952 |
Right of use asset | 419,142 | 665,687 |
Deferred financing costs | 72,800 | 0 |
Total Assets | 19,381,174 | 19,231,303 |
Current Liabilities: | ||
Accounts payable | 301,480 | 454,507 |
Accrued expenses and other current liabilities | 1,571,755 | 1,163,227 |
Accrued issuable equity | 148,801 | 290,721 |
Lease liability, current portion | 214,166 | 262,379 |
Loan payable, current portion | 56,744 | 155,226 |
Deferred revenue | 20,000 | 132,303 |
Notes payable, net of debt discount | 4,836,019 | 0 |
Total Current Liabilities | 7,148,965 | 2,458,363 |
Lease liability, non-current portion | 212,852 | 407,898 |
Loan payable, non-current portion | 98,482 | 0 |
Total Liabilities | 7,460,299 | 2,866,261 |
Commitments and contingencies (Note 10) | ||
Stockholders' Equity | ||
Preferred stock | ||
Common stock, $0.0001 par value, 500,000,000 shares authorized; 107,223,240 shares issued and 107,061,536 outstanding at June 30, 2022 respectively, and 104,792,072 shares issued and outstanding at December 31, 2021 | 10,722 | 10,479 |
Additional paid-in capital | 44,824,151 | 39,512,122 |
Treasury stock, at cost; 161,704 and 0 shares held at June 30, 2022 and December 31, 2021 | (365,199) | 0 |
Accumulated deficit | (32,548,799) | (23,157,559) |
Total Stockholders' Equity | 11,920,875 | 16,365,042 |
Total Liabilities and Stockholders' Equity | 19,381,174 | 19,231,303 |
Series A Preferred Stock | ||
Stockholders' Equity | ||
Preferred stock | 0 | 0 |
Series B Convertible Preferred Stock | ||
Stockholders' Equity | ||
Preferred stock | 0 | 0 |
Series C Preferred Stock | ||
Stockholders' Equity | ||
Preferred stock | 0 | 0 |
Series D Preferred Stock | ||
Stockholders' Equity | ||
Preferred stock | $ 0 | $ 0 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
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 | 107,223,240 | 104,792,072 |
Common Stock, Shares Outstanding | 107,061,536 | 104,792,072 |
Treasury stock, shares held | 161,704 | 0 |
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 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
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 | ||
Preferred Stock, Shares Authorized | 650 | 650 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue | $ 587,546 | $ 628,244 | $ 788,045 | $ 1,046,149 |
Cost of revenue | 423,672 | 439,206 | 546,590 | 714,474 |
Gross Profit | 163,874 | 189,038 | 241,455 | 331,675 |
Operating Expenses | ||||
Research and development | 999,484 | 352,741 | 1,720,831 | 475,724 |
Selling, general, and administrative | 4,326,162 | 2,723,303 | 7,861,085 | 4,216,114 |
Total Operating Expenses | 5,325,646 | 3,076,044 | 9,581,916 | 4,691,838 |
Loss From Operations | (5,161,772) | (2,887,006) | (9,340,461) | (4,360,163) |
Other (Expense) Income | ||||
Interest expense, net | (42,374) | (766) | (43,280) | (1,631) |
Debt redemption costs | (140,000) | (140,000) | ||
Amortization of debt discount | (103,219) | (20,074) | (103,219) | (128,198) |
Change in fair value of accrued issuable equity | 52,680 | 20,703 | 95,720 | (111,874) |
Total Other (Expense) Income, net | (92,913) | (140,137) | (50,779) | (381,703) |
Net Loss | (5,254,685) | (3,027,143) | (9,391,240) | (4,741,866) |
Net Loss Attributable to Common Stockholders | $ (5,254,685) | $ (5,651,469) | $ (9,391,240) | $ (7,366,192) |
Net Loss Per Share - Basic (In dollars per share) | $ (0.05) | $ (0.06) | $ (0.09) | $ (0.08) |
Net Loss Per Share - Diluted (In dollars per share) | $ (0.05) | $ (0.06) | $ (0.09) | $ (0.08) |
Weighted Average Number of Common Shares Outstanding - Basic (In Shares) | 104,545,799 | 92,513,238 | 103,537,473 | 91,302,814 |
Weighted Average Number of Common Shares Outstanding - Diluted (In Shares) | 104,545,799 | 92,513,238 | 103,537,473 | 91,302,814 |
Series D Preferred Stock | ||||
Other (Expense) Income | ||||
Deemed dividend to preferred stockholders | $ (2,624,326) | $ (2,624,326) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Series B Convertible Preferred Stock Convertible Preferred Stock | Series D Convertible Preferred Stock Convertible Preferred Stock | Common stock Common stock | Common stock Stock options. | Common stock Amortization of market-based awards | Common stock | Additional Paid-in Capital Common stock | Additional Paid-in Capital Stock options. | Additional Paid-in Capital Amortization of market-based awards | Additional Paid-in Capital | Accumulated Deficit Common stock | Accumulated Deficit Stock options. | Accumulated Deficit Amortization of market-based awards | Accumulated Deficit | Treasury Stock | Common stock | Stock options. | Amortization of market-based awards | Total | |
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 | ||||||||||||||||||
Common stock issued upon conversion of Convertible Preferred Stock | $ (1) | $ 70 | (69) | |||||||||||||||||
Common stock issued upon conversion of Convertible Preferred Stock (in shares) | (13,972) | 698,600 | ||||||||||||||||||
Common stock issued for services | $ 2 | 49,798 | 49,800 | |||||||||||||||||
Common stock issued for services (in shares) | 20,000 | |||||||||||||||||||
Restricted common stock issued | $ 200 | (200) | ||||||||||||||||||
Restricted common stock issued (in shares) | 2,000,000 | |||||||||||||||||||
Additional Paid in Capital, Amortization of Equity Options And Awards | $ 126,625 | $ 9,112 | $ 130,245 | $ 126,625 | $ 9,112 | $ 130,245 | ||||||||||||||
Net loss | (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 | |||||||||||||||||||
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 | ||||||||||||||||||
Net loss | (4,741,866) | |||||||||||||||||||
Balance at Jun. 30, 2021 | $ 10,058 | 28,567,426 | (15,988,274) | 12,589,210 | ||||||||||||||||
Balance (shares) at Jun. 30, 2021 | 100,567,930 | |||||||||||||||||||
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 | |||||||||||||||||||
Stock-based compensation | $ 6 | 109,994 | 110,000 | |||||||||||||||||
Issuance of Series D Convertible Preferred Stock, Common Stock and warrants for cash | [1] | $ 130 | 6,134,870 | 6,135,000 | ||||||||||||||||
Issuance of Series D Convertible Preferred Stock, Common Stock and warrants for cash (in shares) | [1] | 650 | 1,300,000 | |||||||||||||||||
Common stock issued upon conversion of Series D Convertible Preferred Stock | $ 317 | (317) | ||||||||||||||||||
Common stock issued upon conversion of Series D Convertible Preferred Stock (in shares) | (650) | 3,170,730 | ||||||||||||||||||
Common stock issued upon the exercise of warrants | $ 300 | 3,712,200 | 3,712,500 | |||||||||||||||||
Common stock issued upon the exercise of warrants (in shares) | 3,000,000 | |||||||||||||||||||
Common stock issued for services (in shares) | 55,000 | |||||||||||||||||||
Restricted common stock issued | $ 42 | (42) | ||||||||||||||||||
Restricted common stock issued (in shares) | 415,000 | |||||||||||||||||||
Additional Paid in Capital, Amortization of Equity Options And Awards | 433,689 | 15,779 | 489,774 | 433,689 | 15,779 | 489,774 | ||||||||||||||
Net loss | (3,027,143) | (3,027,143) | ||||||||||||||||||
Balance at Jun. 30, 2021 | $ 10,058 | 28,567,426 | (15,988,274) | 12,589,210 | ||||||||||||||||
Balance (shares) at Jun. 30, 2021 | 100,567,930 | |||||||||||||||||||
Balance at Dec. 31, 2021 | $ 10,479 | 39,512,122 | (23,157,559) | 16,365,042 | ||||||||||||||||
Balance (shares) at Dec. 31, 2021 | 104,792,072 | |||||||||||||||||||
Treasury stock held upon the vesting of restricted common stock | $ 0 | 0 | 0 | $ (439,728) | (439,728) | |||||||||||||||
Treasury stock held upon the vesting of restricted common stock (in shares) | 194,704 | |||||||||||||||||||
Common stock issued upon the exercise of warrants | $ 7 | 87,672 | 0 | 87,679 | ||||||||||||||||
Common stock issued upon the exercise of warrants (in shares) | 70,143 | |||||||||||||||||||
Common stock issued upon the exercise of options | $ 0 | 5,075 | 0 | 5,075 | ||||||||||||||||
Common stock issued upon the exercise of options (in shares) | 2,500 | |||||||||||||||||||
Common stock issued for services | $ 1 | 43,159 | 0 | 43,160 | ||||||||||||||||
Common stock issued for services (in shares) | 6,000 | |||||||||||||||||||
Additional Paid in Capital, Amortization of Equity Options And Awards | $ 0 | $ 0 | $ 0 | 519,231 | 15,883 | 730,048 | $ 0 | $ 0 | $ 0 | 519,231 | 15,883 | 730,048 | ||||||||
Net loss | $ 0 | 0 | (4,136,555) | (4,136,555) | ||||||||||||||||
Balance at Mar. 31, 2022 | $ 10,487 | 40,913,190 | (27,294,114) | $ (439,728) | 13,189,835 | |||||||||||||||
Balance (shares) at Mar. 31, 2022 | 104,870,715 | 194,704 | ||||||||||||||||||
Balance at Dec. 31, 2021 | $ 10,479 | 39,512,122 | (23,157,559) | $ 16,365,042 | ||||||||||||||||
Balance (shares) at Dec. 31, 2021 | 104,792,072 | |||||||||||||||||||
Treasury stock issued upon the exercise of options | $ 28,224 | |||||||||||||||||||
Treasury stock issued upon the exercise of options (in shares) | 33,000 | 35,500 | ||||||||||||||||||
Net loss | $ (9,391,240) | |||||||||||||||||||
Balance at Jun. 30, 2022 | $ 10,722 | 44,824,151 | (32,548,799) | $ (365,199) | 11,920,875 | |||||||||||||||
Balance (shares) at Jun. 30, 2022 | 107,223,240 | 161,704 | ||||||||||||||||||
Balance at Mar. 31, 2022 | $ 10,487 | 40,913,190 | (27,294,114) | $ (439,728) | 13,189,835 | |||||||||||||||
Balance (shares) at Mar. 31, 2022 | 104,870,715 | 194,704 | ||||||||||||||||||
Treasury stock issued upon the exercise of options | $ 0 | 46,305 | 0 | $ (74,529) | (28,224) | |||||||||||||||
Treasury stock issued upon the exercise of options (in shares) | (33,000) | |||||||||||||||||||
Common stock issued upon the exercise of warrants | $ 234 | 2,932,922 | 0 | 2,933,156 | ||||||||||||||||
Common stock issued upon the exercise of warrants (in shares) | 2,346,525 | |||||||||||||||||||
Common stock issued for services | $ 1 | 10,260 | 0 | 10,261 | ||||||||||||||||
Common stock issued for services (in shares) | 6,000 | |||||||||||||||||||
Additional Paid in Capital, Amortization of Equity Options And Awards | $ 0 | $ 0 | $ 0 | $ 422,128 | $ 26,535 | $ 565,421 | $ 0 | $ 0 | $ 0 | $ 422,128 | $ 26,535 | $ 565,421 | ||||||||
Net loss | $ 0 | 0 | (5,254,685) | (5,254,685) | ||||||||||||||||
Balance at Jun. 30, 2022 | $ 10,722 | $ 44,824,151 | $ (32,548,799) | $ (365,199) | $ 11,920,875 | |||||||||||||||
Balance (shares) at Jun. 30, 2022 | 107,223,240 | 161,704 | ||||||||||||||||||
[1] (1) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIENCY) | |
Net of cash issuance costs | $ 365,000 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | ||
Cash Flows From Operating Activities: | |||
Net loss | $ (9,391,240) | $ (4,741,866) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Amortization of debt discount | 103,219 | 128,198 | |
Non-cash lease expense | 102,905 | 0 | |
Depreciation and amortization expense | 88,548 | 9,908 | |
Change in fair value of accrued issuable equity | (95,720) | 111,874 | |
Stock-based compensation | 2,286,467 | 1,473,863 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (427,903) | (559,292) | |
Inventory | (93,261) | (127,006) | |
Prepaid expenses and other current assets | (1,187,561) | (338,070) | |
Security deposits | 0 | (50,213) | |
Right of use asset | 0 | 21,048 | |
Accounts payable | (153,028) | 53,140 | |
Accrued expenses and other current liabilities | (31,199) | (51,986) | |
Lease liability | (99,619) | (20,392) | |
Deferred revenue | (112,303) | 9,229 | |
Total Adjustments | 380,545 | 660,301 | |
Net Cash Used In Operating Activities | (9,010,695) | (4,081,565) | |
Cash Flows From Investing Activities: | |||
Vendor deposits for property and equipment | (429,008) | 0 | |
Purchases of property and equipment | (117,776) | (36,492) | |
Net Cash Used In Investing Activities | (546,784) | (36,492) | |
Cash Flows from Financing Activities: | |||
Repayments of notes payable | 0 | (2,450,000) | |
Proceeds from notes payable | [1] | 4,750,000 | 0 |
Payment of issuance costs | (17,200) | 0 | |
Payment of financing costs incurred in connection with the SEPA | (72,800) | 0 | |
Proceeds from sale of Series D Convertible Preferred Stock, common stock and warrants | 0 | 6,500,000 | |
Proceeds from the exercise of options | 5,075 | 3,712,500 | |
Proceeds from the exercise of warrants | 3,020,835 | 0 | |
Payment of financing costs | 0 | (365,000) | |
Net Cash Provided By Financing Activities | 7,685,910 | 7,397,500 | |
Net (Decrease) Increase In Cash | (1,871,569) | 3,279,443 | |
Cash - Beginning of Period | 14,863,301 | 8,880,140 | |
Cash - End of Period | 12,991,732 | 12,159,583 | |
Cash paid during the period for: | |||
Interest | 43,553 | 735 | |
Non-cash investing and financing activities: | |||
Right of use asset for lease liability | 143,640 | 814,817 | |
Common stock held in treasury upon the vesting of restricted common stock | (439,728) | 0 | |
Treasury stock issued upon the exercise of stock options | 74,529 | 0 | |
Receivable recorded for pending cash deposit of stock option exercise proceeds | $ 28,224 | 0 | |
Series B Convertible Preferred Stock | |||
Non-cash investing and financing activities: | |||
Conversion of Stock, Amount Converted | 70 | ||
Series D Convertible Preferred Stock | |||
Non-cash investing and financing activities: | |||
Beneficial conversion feature on Series D convertible preferred stock | 2,624,326 | ||
Conversion of Stock, Amount Converted | $ 317 | ||
[1] (1) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - Promissory Note - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | May 13, 2022 | |
Initial principal amount | $ 5,000,000 | $ 5,000,000 |
Original issue discount | $ 250,000 |
ORGANIZATION, NATURE OF OPERATI
ORGANIZATION, NATURE OF OPERATIONS AND RISKS AND UNCERTANTIES | 6 Months Ended |
Jun. 30, 2022 | |
ORGANIZATION, NATURE OF OPERATIONS AND RISKS AND UNCERTANTIES | |
ORGANIZATION, NATURE OF OPERATIONS AND RISKS AND UNCERTANTIES | NOTE 1 ORGANIZATION, NATURE OF OPERATIONS AND RISKS AND UNCERTANTIES 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 systems and hypersonic vehicles, and applying them to mass market commercial applications, such as lithium-ion battery energy storage, electric vehicles, 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 June 30, 2022 and for the three and six months ended June 30, 2022 and 2021. The results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of the operating results for the full year ending December 31, 2022 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, 2021 and for the year then ended, which were filed with the Securities and Exchange Commission (“SEC”) on Form 10-K on March 28, 2022. Risks and Uncertainties In March 2020, the World Health Organization declared COVID-19, a novel strain coronavirus, a pandemic. During 2020 and continuing into 2022, 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 begin to gradually ease restrictions, provide economic stimulus and accelerate vaccine distribution, the rate of recovery on a global basis has been affected by resurgence of the virus or its variants in certain jurisdictions. For example, in response to an outbreak of infection in Shanghai, beginning in March 2022, governmental authorities in China implemented a lockdown order in that city, significantly slowing economic and business activity in that region. We continue to monitor the rapidly evolving situation and guidance from international and domestic authorities and may take additional actions based on their recommendations and requirements or as we otherwise see fit to protect the health and safety of our employees, customers, partners and suppliers. 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 2022 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 | 6 Months Ended |
Jun. 30, 2022 | |
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, 2021, there have been no material changes to the Company’s significant accounting policies, except as disclosed in this note. Liquidity During April 2022, the Company received an aggregate of $2,933,156 of gross proceeds upon the exercise of warrants. On May 13, 2022, the Company issued a $5,000,000 promissory note to an investor for gross proceeds of $4,750,000. On the same date, the Company entered into a Standby Equity Purchase Agreement, which gives the Company the right, but not the obligation, to sell up to $50,000,000 of its shares of common stock to the same investor during the commitment period. See Note 9 – Stockholders’ Equity for additional information on the aforementioned transactions. As of June 30, 2022, the Company had cash of $12,991,732 and working capital of $8,477,713. During the six months ended June 30, 2022, the Company incurred a net loss of $9,391,240 and used cash in operations of $9,010,695. 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, combined with the cash availability pursuant to the Standby Equity Purchase Agreement, is sufficient in comparison to its anticipated cash usage for a period of at least twelve months after the filing date of these financial statements. Use of Estimates Preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, together with amounts disclosed in the related notes to the financial statements. The Company’s significant estimates used in these unaudited condensed consolidated financial statements include, but are not limited to, fair value calculations for equity securities, stock-based compensation and the valuation allowance related to the Company’s deferred tax assets. Certain of the Company’s estimates could be affected by external conditions, including those unique to the Company and general economic conditions. It is possible that these external factors could have an effect on the Company’s estimates and could cause actual results to differ from those estimates. 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 were uninsured balances of $12,491,732 and $14,363,301 as of June 30, 2022 and December 31, 2021, 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 For the Six Months Ended June 30, June 30, As of As of 2022 2021 2022 2021 June 30, 2022 December 31, 2021 Customer A * 69 % 12 % 62 % * 42 % Customer B 56 % * 42 % * 59 % * Customer C 28 % * 21 % * 30 % 34 % Customer D * 20 % * 14 % * * Customer E * * * 12 % * * Customer F * * 11 % * * * Customer G * * * * * 21 % Total 84 % 89 % 86 % 88 % 89 % 97 % * Less than 10% 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 Vendor concentrations are as follows for the three and six months ended June 30, 2022 and 2021, respectively: For the Three Months Ended For the Six Months Ended June 30, June 30, 2022 2021 2022 2021 Vendor A 65 % * 51 % * Vendor B * 85 % * 43 % Vendor C * * * 48 % Vendor D * * 17 % * 65 % 85 % 68 % 91 % * Less than 10% 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. Inventory at June 30, 2022 and December 31, 2021 was comprised of the following: June 30, December 31, 2022 2021 Work-in-process $ 91,188 $ 5,500 Finished goods 193,384 185,811 Total inventory $ 284,572 $ 191,311 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 in its consolidated statements of operations: For the Three Months Ended For the Six Months Ended June 30, June 30, 2022 2021 2022 2021 Product sales $ 557,664 $ 577,360 $ 730,263 $ 755,609 Contract services 29,882 50,884 57,782 290,540 Total revenue $ 587,546 $ 628,244 $ 788,045 $ 1,046,149 As of June 30, 2022 and December 31, 2021, respectively, the Company had $20,000 and $132,303 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 and six months ended June 30, 2022, the Company recognized $0 and $112,303, respectively, that was included in deferred revenue in a previous period. During the three and six months ended June 30, 2021, there was no revenue recognized from performance obligations satisfied (or partially satisfied) in previous periods. As of June 30, 2022 and December 31, 2021, the Company had $29,887 and $84,324, respectively, of deferred labor costs, which is included in prepaid expenses and other current assets in the Company’s unaudited 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. 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. The following table presents the computation of basic and diluted net loss per common share: For the Three Months Ended For the Six Months Ended June 30, June 30, 2022 2021 2022 2021 Numerator: Net loss attributable to common stockholders $ (5,254,685) $ (5,651,469) $ (9,391,240) $ (7,366,192) Denominator: Weighted-average common shares outstanding 106,348,239 94,513,238 105,578,313 92,639,830 Less: weighted-average unvested restricted shares (2,019,011) (2,000,000) (2,187,514) (1,337,017) Add: weighted average accrued issuable equity 216,571 — 146,674 — Denominator for basic and diluted net loss per share 104,545,799 92,513,238 103,537,473 91,302,814 Net loss per share: Basic and diluted $ (0.05) $ (0.06) $ (0.09) $ (0.08) The following shares were excluded from the calculation of weighted average dilutive common shares because their inclusion would have been anti-dilutive: June 30, 2022 2021 Unvested restricted stock 1,957,500 2,475,000 Unvested market -based equity awards 3,000,000 3,000,000 Options 482,216 540,000 Warrants 2,524,410 6,387,911 Total 7,964,126 12,402,911 Recently Adopted Accounting Pronouncements In October 2020, the FASB issued ASU 2020-10 “Codification Improvements”, which improves consistency by amending the Codification to include all disclosure guidance in the appropriate disclosure sections and clarifies application of various provisions in the Codification by amending and adding new headings, cross referencing to other guidance, and refining or correcting terminology. The guidance is effective for the Company beginning in the first quarter of fiscal year 2022 with early adoption permitted. The Company adopted ASU 2020-10 effective January 1, 2022 and its adoption did not have a material impact on its condensed consolidated financial statements. In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options. This new standard provides clarification and reduces diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options (such as warrants) that remain equity classified after modification or exchange. This standard is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Issuers should apply the new standard prospectively to modifications or exchanges occurring after the effective date of the new standard. Early adoption is permitted, including adoption in an interim period. If an issuer elects to early adopt the new standard in an interim period, the guidance should be applied as of the beginning of the fiscal year that includes that interim period. The Company adopted ASU 2021-04 effective January 1, 2022 and its adoption did not have a material impact on its condensed consolidated financial statements. |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 6 Months Ended |
Jun. 30, 2022 | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | NOTE 3 PREPAID EXPENSES AND OTHER CURRENT ASSETS As of June 30, 2022 and December 31, 2021, prepaid expenses and other current assets consisted of the following: June 30, December 31, 2022 2021 Marketing $ 726,422 $ 10,231 Inventory deposits 691,006 309,688 Professional fees 164,558 65,118 Subscriptions 71,774 — Insurance 40,733 69,925 Other 33,541 31,074 Deferred labor costs 29,887 84,324 Receivable for option exercise 28,224 — Total prepaid expenses $ 1,786,145 $ 570,360 Prepaid marketing costs consist of two sponsorship agreements with a marketing partner whereby the Company is required to make upfront payments. These agreements expire in September 2022 and December 2022. As of June 30, 2022, total prepayments made towards such contracts were $2,000,000, of which $722,321 remains unamortized and is included in prepaid marketing costs. See Note 10 – Commitments and Contingencies for additional information. |
VENDOR DEPOSITS
VENDOR DEPOSITS | 6 Months Ended |
Jun. 30, 2022 | |
VENDOR DEPOSITS | |
VENDOR DEPOSITS | NOTE 4 VENDOR DEPOSITS The Company entered into agreements with third party contractors for facility improvements, the design and build of a battery packaging and inspection automation system, and automated robotic tending system. As of June 30, 2022, the Company had outstanding deposits of $2,582,958 in connection with these agreements. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 6 Months Ended |
Jun. 30, 2022 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | NOTE 5 ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES As of June 30, 2022 and December 31, 2021, accrued expenses and other current liabilities consisted of the following: June 30, December 31, 2022 2021 Legal and professional fees $ 862,047 $ 418,154 Payroll and vacation 397,809 302,101 Research and development 194,444 146,158 Board compensation 56,541 45,680 Other 38,160 84,824 Marketing and advertising fees 20,563 37,810 Accrued cost of sales 2,191 128,500 Total accrued expenses and other current liabilities $ 1,571,755 $ 1,163,227 |
ACCRUED ISSUABLE EQUITY
ACCRUED ISSUABLE EQUITY | 6 Months Ended |
Jun. 30, 2022 | |
ACCRUED ISSUABLE EQUITY. | |
ACCRUED ISSUABLE EQUITY | NOTE 6 ACCRUED ISSUABLE EQUITY A summary of the accrued issuable equity activity during the six months ended June 30, 2022 is presented below: For the Six Months Ended June 30, 2022 Beginning Balance $ 290,721 Additions 45,800 Cancelled accrued issuable equity obligations (92,000) Mark-to market (95,720) Ending Balance $ 148,801 Accrued Issuable Equity for Services During the six months ended June 30, 2022, the Company entered into certain contractual arrangements for services in exchange for a fixed number of shares of common stock of the Company. On the respective dates the contracts were entered into, the estimated fair value of the shares to be issued was an aggregate of $45,800. During the six months ended June 30, 2022, the Company cancelled certain of its accrued issuable equity obligations of an aggregate of 33,333 of its shares, respectively, with an aggregate fair value of $92,000, respectively, due to a reduction in investor relation services. During the six months ended June 30, 2022, the Company recorded an aggregate of $95,720 of gains related to the reduction in fair value of accrued issuable equity (see Note 9 – Stockholders’ Equity, Stock-Based Compensation |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2022 | |
LEASES | |
LEASES | NOTE 7 LEASES The Company leases office space in San Diego, California. During the three and six months ended June 30, 2022, operating lease expense was $57,849 and $131,930, respectively. During the three and six months ended June 30, 2021, operating lease expense was $39,805 and $55,207, respectively. As of June 30, 2022, the Company did not have any financing leases. Maturities of lease liabilities as of June 30, 2022 were as follows: Maturity Date July 1 through December 31, 2022 $ 114,999 2023 234,694 2024 99,187 Total lease payments 448,880 Less: Imputed interest (21,862) Present value of lease liabilities 427,018 Less: current portion (214,166) Lease liabilities, non-current portion $ 212,852 Supplemental cash flow information related to the lease was as follows: For the Six Months Ended June 30, 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating lease $ 99,619 |
NOTES AND LOANS PAYABLE
NOTES AND LOANS PAYABLE | 6 Months Ended |
Jun. 30, 2022 | |
NOTES AND LOANS PAYABLE | |
NOTES AND LOANS PAYABLE | NOTE 8 NOTES AND LOANS PAYABLE Note Purchase Agreement On May 13, 2022, the Company entered into a Note Purchase Agreement (the “Note Purchase Agreement”) with YAII PN, Ltd., a Cayman Island exempt limited partnership (the “Investor”), pursuant to which the Investor purchased a full recourse promissory note with an initial principal amount equal to $5,000,000 (the “Promissory Note”) for cash proceeds of $4,750,000. The Promissory Note included an original issue discount of $250,000, a structuring fee of $10,000, and legal fees of $7,200, which represents the difference between the principal and proceeds received. The original issue discount, along with structuring fees were recorded as a debt discount which is being amortized over the term of the Note using the effective interest rate method. The Promissory Note carries an interest rate of 10% per annum. The Company is required to repay the principal and interest in monthly installments by the maturity date of November 13, 2022. A summary of notes payable activity during the six months ended June 30, 2022 is presented below: Notes Debt Payable Discount Total Balance, January 1, 2022 $ — $ — $ — Proceeds from promissory note 5,000,000 — 5,000,000 Debt discount — (267,200) (267,200) Amortization of debt discount — 103,219 103,219 Outstanding, June 30, 2022 $ 5,000,000 $ (163,981) $ 4,836,019 Paycheck Protection Program Loan On April 27, 2020, the Company received approximately $155,000 of cash proceeds pursuant to an unsecured loan provided in connection with the Paycheck Protection Program (“PPP”) under the Coronavirus Aid, Relief, and Economic Security Act and applicable regulations (“CARES Act”). Under the terms of the CARES Act, as amended by the Paycheck Protection Program Flexibility Act of 2020, the Company is eligible to apply for and receive forgiveness for all or a portion of their respective PPP Loans. Such forgiveness will be determined, subject to limitations, based on the use of the loan proceeds for certain permissible purposes as set forth in the PPP, including, but not limited to, payroll costs (as defined under the PPP) and mortgage interest, rent or utility costs (collectively, “Qualifying Expenses”) incurred during the 24 weeks subsequent to funding, and on the maintenance of employee and compensation levels, as defined, following the funding of the PPP Loan. The initial term of the loan was two years and has been extended to five years with a maturity date of April 27, 2025. The Company has applied for forgiveness of the PPP loan, which was approved by the Small Business Administration and the PPP loan was fully forgiven effective July 18, 2022. During the three and six months ended June 30, 2022, the Company recognized interest expense of $387 and $651, respectively, related to the PPP loan. As of June 30, 2022 and December 31, 2021, the Company’s accrued expense related to the loan was $2,352 and $1,701, respectively. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2022 | |
STOCKHOLDERS' EQUITY | |
STOCKHOLDERS' EQUITY | NOTE 9 STOCKHOLDERS’ EQUITY Standby Equity Purchase Agreement On May 13, 2022, KULR Technology Group, Inc. (the “Company”) entered into a Standby Equity Purchase Agreement (the “SEPA”) with YA II PN, Ltd. (“Yorkville”). Pursuant to the SEPA, the Company shall have the right, but not the obligation, to sell to Yorkville up to $50,000,000 of its shares of common stock, par value $0.0001 per share, at the Company’s request any time during the commitment period commencing on May 13, 2022 and terminating on the earliest of (i) the first day of the month following the 24-month anniversary of the SEPA and (ii) the date on which Yorkville shall have made payment of any advances requested pursuant to the SEPA for shares of the Company’s common stock equal to the commitment amount of $50,000,000. Each sale the Company requests under the SEPA (an “Advance”) may be for a number of shares of common stock with an aggregate value of up to $5,000,000. The shares would be purchased at 98.0% of the Market Price (as defined below) and would be subject to certain limitations, including that Yorkville could not purchase any shares that would result in it owning more than 4.99% of the Company’s outstanding common stock at the time of an Advance (the “Ownership Limitation”) or a cumulative aggregate of 19.9% of the Company’s outstanding common stock as of the date of the SEPA (the “Exchange Cap”). The Exchange Cap will not apply under certain circumstances, including to any sales of common stock under the SEPA that equal or exceed the Minimum Price (as defined in Section 312.03 of the NYSE Listed Company Manual). “Market Price” is defined in the SEPA as the average of the VWAPs (as defined below) during each of the three Common Stock During March 2022, the Company issued an aggregate of 70,143 shares of common stock upon the exercise of warrants pursuant to which the Company received an aggregate of $87,679 of gross proceeds. During April 2022, the Company issued an aggregate of 2,346,525 shares of common stock upon the exercise of warrants pursuant to which the Company received an aggregate of $2,933,156 of gross proceeds. In connection with an inducement offer from the Company, the Company issued new warrants to purchase an aggregate of 2,346,525 shares of common stock at an exercise price of $1.00 per share (the “New Warrants”). The New Warrants expire on December 31, 2025. The value of the New Warrants provided to the exercising warrant holders was deemed to be an offering cost associated with an equity financing to raise capital, pursuant to ASU 2021-04. Because the New Warrants were determined to be classified as equity, the credit to additional paid-in capital associated with the issuance of the New Warrants is offset by the debit to additional paid-in capital related to the offering cost. The warrants had a grant date value of $3,657,763, calculated using the Black Scholes pricing model with the following assumptions used: risk free rate – 2.88%, expected term – 3.69, expected volatility – 100%, expected dividends – 0%. During the three and six months ended June 30, 2022, the Company issued an aggregate of 6,000 and 12,000 shares of immediately vested common stock with a grant date value of $10,261 and $53,421, respectively, for legal services. During the six months ended June 30, 2022, the Company issued an aggregate of 35,500 shares of common stock upon the exercise of stock options, of which 33,000 shares were issued from treasury stock. Treasury Stock The 2018 KULR Technology Group Equity Incentive Plan (the “Plan”) allows for the grant of non-vested stock options, RSUs and RSAs to the Company’s employees pursuant to the terms of the Plan. Under the provision of the Plan, unless otherwise elected, participants fulfill their related income tax withholding obligation by having shares withheld at the time of vesting. The shares withheld are then transferred to the Company’s treasury stock at cost. During the six months ended June 30, 2022, the Company withheld 194,704 shares valued at $439,728 in connection with the vesting of restricted common stock awards during the period. Pursuant to the exercise of options, the Company transferred 33,000 shares that were held in treasury for an aggregate of $28,224 gross proceeds. As of June 30, 2022, the Company has 161,704 shares of held in treasury valued at $365,199. Warrants A summary of warrants activity during the six months ended June 30, 2022 is presented below: Weighted Weighted Average Average Number of Exercise Remaining Intrinsic Warrants Price Term (Yrs) Value Outstanding, January 1, 2022 2,594,553 $ 1.25 Issued 2,346,525 1.00 Exercised (2,416,668) (1.25) Expired — — Forfeited — — Outstanding, June 30, 2022 2,524,410 $ 1.02 3.5 $ 1,343,954 Exercisable, June 30, 2022 2,524,410 $ 1.25 3.5 $ 1,343,954 See the Common Stock discussion above for additional information. A summary of outstanding and exercisable warrants as of June 30, 2022 is presented below: Warrants Outstanding Warrants Exercisable Weighted Outstanding Average Exercisable Exercise Number of Remaining Life Number of Price Warrants In Years Warrants $ 1.25 177,885 3.5 177,885 $ 1.00 2,346,525 3.5 2,346,525 2,524,410 3.5 2,524,410 Stock Options 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 Six Months Ended June 30, 2022 2021 Risk free interest rate 1.18% -2.94 % 1.58 % Expected term (years) 3.5 - 3.9 2.5 - 3.5 Expected volatility 116 % 93% - 109 % Expected dividends 0 % 0 % For the six months ended June 30, 2022 and 2021, the weighted average grant date fair value per share of options was $1.47 and $0.66, respectively. A summary of options activity (excluding Market-Based Awards) during the six months ended June 30, 2022 is presented below: Weighted Weighted Average Average Number of Exercise Remaining Intrinsic Options Price Term (Yrs) Value Outstanding, January 1, 2022 405,216 $ 2.29 Granted 130,000 2.03 Exercised (35,500) 0.76 Expired — — Forfeited (17,500) 2.03 Outstanding, June 30, 2022 482,216 $ 1.65 3.5 $ 167,783 Exercisable, June 30, 2022 207,355 $ 1.19 2.4 $ 125,267 The following table presents information related to stock options (excluding market-based option awards) as of June 30, 2022: Options Outstanding Options Exercisable Weighted Outstanding Average Exercisable Exercise Number of Remaining Life Number of Price Options In Years Options $ 0.66 152,486 1.7 140,750 $ 1.28 10,000 — — $ 1.55 20,000 — — $ 1.99 10,000 3.9 3,958 $ 2.05 50,000 4.1 3,333 $ 2.08 10,000 3.9 3,958 $ 2.13 20,000 4.2 6,250 $ 2.25 10,000 4.6 625 $ 2.27 29,730 4.0 10,980 $ 2.31 50,000 — — $ 2.43 20,000 4.2 6,250 $ 2.44 100,000 3.7 31,250 482,216 2.4 207,355 As of June 30, 2022, there was $292,920 of unrecognized stock-based compensation expense related to the above stock options, which will be recognized over the weighted average remaining vesting period of 3.2 years. Restricted Common Stock The following table presents information related to restricted common stock (excluding Market-Based Awards) as of June 30, 2022: Weighted Average Grant Date Shares of Restricted Fair Value Common Stock Per Share Non-vested balance, January 1, 2022 2,590,000 $ 2.52 Granted 150,000 2.08 Vested (782,500) 2.48 Non-vested shares, June 30, 2022 1,957,500 $ 2.50 As of June 30, 2022, there was $4,365,706 of unrecognized stock-based compensation expense related to restricted stock that will be recognized over the weighted average remaining vesting period of 2.7 years. Market-Based Awards The following table presents information related to market-based awards outstanding as of June 30, 2022: Number of Grant Date Award Shares Fair Value Restricted stock units 1,500,000 $ 2,911,420 Stock options 1,500,000 2,579,000 Total 3,000,000 $ 5,490,420 The grant date value for the market-based awards is being amortized over the derived service periods of the awards. As of June 30, 2022, there was $2,083,108 of unrecognized stock-based compensation expense related to market-based awards which will be amortized over the remaining weighted average vesting period of 1.4 years. As of June 30, 2022, none of the market-based awards have vested. Stock-Based Compensation During the three and six months ended June 30, 2022, the Company recognized stock-based compensation expense of $1,043,545 and $2,286,467, respectively, related to restricted common stock, warrants and stock options, of which $1,033,851 and $2,268,665, respectively are included within selling, general and administrative expenses, and $9,694 and $17,802, respectively are included within research and development expenses in the unaudited condensed consolidated statements of operations. During the three and six months ended June 30, 2021, the Company recognized stock-based compensation expense of $1,085,891 and $1,473,863, respectively, related to restricted common stock, warrants and stock options, of which $1,078,106 and $1,458,673, respectively are included within selling, general and administrative expenses, and $7,785 and $15,190, respectively are included within research and development expenses on the unaudited condensed consolidated statements of operations. The following table presents information related to stock-based compensation for the three months ended June 30, 2022 and 2021: For The Three Months Ended For The Six Months Ended June 30, June 30, 2022 2021 2022 2021 Common stock for services $ 10,261 $ 110,000 $ 53,421 $ 159,800 Amortization of restricted common stock 422,128 433,689 941,359 560,314 Amortization of market-based awards 565,421 489,774 1,295,469 620,019 Stock options 26,535 15,779 42,418 24,891 Accrued issuable equity (common stock) 19,200 36,649 (46,200) 108,839 Total $ 1,043,545 $ 1,085,891 $ 2,286,467 $ 1,473,863 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2022 | |
COMMITMENTS AND CONTINGENCIES. | |
COMMITMENTS AND CONTINGENCIES | NOTE 10 COMMITMENTS AND CONTINGENCIES Sponsorship Agreement On June 15, 2022, the Company amended the Second Sponsorship Agreement (see Note 3 - Prepaid Expenses and Other Current Assets) to extend the term through December 31, 2023. The agreement provides the Company with the right to publicize and highlight the sponsorship and display its name and logo during certain events and use digital marketing and social media platforms throughout the 2023 calendar year. The Company has committed to pay an aggregate of $1,450,000 in sponsorship fees in three installments, which are due July 2022, January 2023, and April 2023. On July 8, 2022, the Company paid $500,000 which will be recorded as a prepaid expense and amortized over the performance period of January 1, 2023 to December 31, 2023 using the straight-line method. The total remaining commitment amount to be paid for sponsorship agreements is $950,000. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Liquidity | Liquidity During April 2022, the Company received an aggregate of $2,933,156 of gross proceeds upon the exercise of warrants. On May 13, 2022, the Company issued a $5,000,000 promissory note to an investor for gross proceeds of $4,750,000. On the same date, the Company entered into a Standby Equity Purchase Agreement, which gives the Company the right, but not the obligation, to sell up to $50,000,000 of its shares of common stock to the same investor during the commitment period. See Note 9 – Stockholders’ Equity for additional information on the aforementioned transactions. As of June 30, 2022, the Company had cash of $12,991,732 and working capital of $8,477,713. During the six months ended June 30, 2022, the Company incurred a net loss of $9,391,240 and used cash in operations of $9,010,695. 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, combined with the cash availability pursuant to the Standby Equity Purchase Agreement, is sufficient in comparison to its anticipated cash usage for a period of at least twelve months after the filing date of these financial statements. |
Use of Estimates | Use of Estimates Preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, together with amounts disclosed in the related notes to the financial statements. The Company’s significant estimates used in these unaudited condensed consolidated financial statements include, but are not limited to, fair value calculations for equity securities, stock-based compensation and the valuation allowance related to the Company’s deferred tax assets. Certain of the Company’s estimates could be affected by external conditions, including those unique to the Company and general economic conditions. It is possible that these external factors could have an effect on the Company’s estimates and could cause actual results to differ from those estimates. |
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 were uninsured balances of $12,491,732 and $14,363,301 as of June 30, 2022 and December 31, 2021, 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 For the Six Months Ended June 30, June 30, As of As of 2022 2021 2022 2021 June 30, 2022 December 31, 2021 Customer A * 69 % 12 % 62 % * 42 % Customer B 56 % * 42 % * 59 % * Customer C 28 % * 21 % * 30 % 34 % Customer D * 20 % * 14 % * * Customer E * * * 12 % * * Customer F * * 11 % * * * Customer G * * * * * 21 % Total 84 % 89 % 86 % 88 % 89 % 97 % * Less than 10% 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 Vendor concentrations are as follows for the three and six months ended June 30, 2022 and 2021, respectively: For the Three Months Ended For the Six Months Ended June 30, June 30, 2022 2021 2022 2021 Vendor A 65 % * 51 % * Vendor B * 85 % * 43 % Vendor C * * * 48 % Vendor D * * 17 % * 65 % 85 % 68 % 91 % * Less than 10% |
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. Inventory at June 30, 2022 and December 31, 2021 was comprised of the following: June 30, December 31, 2022 2021 Work-in-process $ 91,188 $ 5,500 Finished goods 193,384 185,811 Total inventory $ 284,572 $ 191,311 |
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 in its consolidated statements of operations: For the Three Months Ended For the Six Months Ended June 30, June 30, 2022 2021 2022 2021 Product sales $ 557,664 $ 577,360 $ 730,263 $ 755,609 Contract services 29,882 50,884 57,782 290,540 Total revenue $ 587,546 $ 628,244 $ 788,045 $ 1,046,149 As of June 30, 2022 and December 31, 2021, respectively, the Company had $20,000 and $132,303 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 and six months ended June 30, 2022, the Company recognized $0 and $112,303, respectively, that was included in deferred revenue in a previous period. During the three and six months ended June 30, 2021, there was no revenue recognized from performance obligations satisfied (or partially satisfied) in previous periods. As of June 30, 2022 and December 31, 2021, the Company had $29,887 and $84,324, respectively, of deferred labor costs, which is included in prepaid expenses and other current assets in the Company’s unaudited 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. |
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. The following table presents the computation of basic and diluted net loss per common share: For the Three Months Ended For the Six Months Ended June 30, June 30, 2022 2021 2022 2021 Numerator: Net loss attributable to common stockholders $ (5,254,685) $ (5,651,469) $ (9,391,240) $ (7,366,192) Denominator: Weighted-average common shares outstanding 106,348,239 94,513,238 105,578,313 92,639,830 Less: weighted-average unvested restricted shares (2,019,011) (2,000,000) (2,187,514) (1,337,017) Add: weighted average accrued issuable equity 216,571 — 146,674 — Denominator for basic and diluted net loss per share 104,545,799 92,513,238 103,537,473 91,302,814 Net loss per share: Basic and diluted $ (0.05) $ (0.06) $ (0.09) $ (0.08) The following shares were excluded from the calculation of weighted average dilutive common shares because their inclusion would have been anti-dilutive: June 30, 2022 2021 Unvested restricted stock 1,957,500 2,475,000 Unvested market -based equity awards 3,000,000 3,000,000 Options 482,216 540,000 Warrants 2,524,410 6,387,911 Total 7,964,126 12,402,911 |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In October 2020, the FASB issued ASU 2020-10 “Codification Improvements”, which improves consistency by amending the Codification to include all disclosure guidance in the appropriate disclosure sections and clarifies application of various provisions in the Codification by amending and adding new headings, cross referencing to other guidance, and refining or correcting terminology. The guidance is effective for the Company beginning in the first quarter of fiscal year 2022 with early adoption permitted. The Company adopted ASU 2020-10 effective January 1, 2022 and its adoption did not have a material impact on its condensed consolidated financial statements. In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options. This new standard provides clarification and reduces diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options (such as warrants) that remain equity classified after modification or exchange. This standard is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Issuers should apply the new standard prospectively to modifications or exchanges occurring after the effective date of the new standard. Early adoption is permitted, including adoption in an interim period. If an issuer elects to early adopt the new standard in an interim period, the guidance should be applied as of the beginning of the fiscal year that includes that interim period. The Company adopted ASU 2021-04 effective January 1, 2022 and its adoption did not have a material impact on its condensed consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of concentrations of credit risk | Revenues Accounts Receivable For the Three Months Ended For the Six Months Ended June 30, June 30, As of As of 2022 2021 2022 2021 June 30, 2022 December 31, 2021 Customer A * 69 % 12 % 62 % * 42 % Customer B 56 % * 42 % * 59 % * Customer C 28 % * 21 % * 30 % 34 % Customer D * 20 % * 14 % * * Customer E * * * 12 % * * Customer F * * 11 % * * * Customer G * * * * * 21 % Total 84 % 89 % 86 % 88 % 89 % 97 % * Less than 10% For the Three Months Ended For the Six Months Ended June 30, June 30, 2022 2021 2022 2021 Vendor A 65 % * 51 % * Vendor B * 85 % * 43 % Vendor C * * * 48 % Vendor D * * 17 % * 65 % 85 % 68 % 91 % * Less than 10% |
Schedule of inventory | June 30, December 31, 2022 2021 Work-in-process $ 91,188 $ 5,500 Finished goods 193,384 185,811 Total inventory $ 284,572 $ 191,311 |
Schedule of revenue recognized | For the Three Months Ended For the Six Months Ended June 30, June 30, 2022 2021 2022 2021 Product sales $ 557,664 $ 577,360 $ 730,263 $ 755,609 Contract services 29,882 50,884 57,782 290,540 Total revenue $ 587,546 $ 628,244 $ 788,045 $ 1,046,149 |
Schedule of of basic and diluted net loss per common share | For the Three Months Ended For the Six Months Ended June 30, June 30, 2022 2021 2022 2021 Numerator: Net loss attributable to common stockholders $ (5,254,685) $ (5,651,469) $ (9,391,240) $ (7,366,192) Denominator: Weighted-average common shares outstanding 106,348,239 94,513,238 105,578,313 92,639,830 Less: weighted-average unvested restricted shares (2,019,011) (2,000,000) (2,187,514) (1,337,017) Add: weighted average accrued issuable equity 216,571 — 146,674 — Denominator for basic and diluted net loss per share 104,545,799 92,513,238 103,537,473 91,302,814 Net loss per share: Basic and diluted $ (0.05) $ (0.06) $ (0.09) $ (0.08) |
Schedule of weighted average dilutive common shares because their inclusion would have been anti-dilutive | June 30, 2022 2021 Unvested restricted stock 1,957,500 2,475,000 Unvested market -based equity awards 3,000,000 3,000,000 Options 482,216 540,000 Warrants 2,524,410 6,387,911 Total 7,964,126 12,402,911 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | |
Schedule of prepaid expenses and other current assets | June 30, December 31, 2022 2021 Marketing $ 726,422 $ 10,231 Inventory deposits 691,006 309,688 Professional fees 164,558 65,118 Subscriptions 71,774 — Insurance 40,733 69,925 Other 33,541 31,074 Deferred labor costs 29,887 84,324 Receivable for option exercise 28,224 — Total prepaid expenses $ 1,786,145 $ 570,360 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
Schedule of accrued expenses and other current liabilities | June 30, December 31, 2022 2021 Legal and professional fees $ 862,047 $ 418,154 Payroll and vacation 397,809 302,101 Research and development 194,444 146,158 Board compensation 56,541 45,680 Other 38,160 84,824 Marketing and advertising fees 20,563 37,810 Accrued cost of sales 2,191 128,500 Total accrued expenses and other current liabilities $ 1,571,755 $ 1,163,227 |
ACCRUED ISSUABLE EQUITY (Tables
ACCRUED ISSUABLE EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
ACCRUED ISSUABLE EQUITY. | |
Schedule of accrued issuable equity | For the Six Months Ended June 30, 2022 Beginning Balance $ 290,721 Additions 45,800 Cancelled accrued issuable equity obligations (92,000) Mark-to market (95,720) Ending Balance $ 148,801 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
LEASES | |
Schedule of maturities of lease liabilities | Maturity Date July 1 through December 31, 2022 $ 114,999 2023 234,694 2024 99,187 Total lease payments 448,880 Less: Imputed interest (21,862) Present value of lease liabilities 427,018 Less: current portion (214,166) Lease liabilities, non-current portion $ 212,852 |
Schedule of supplemental cash flow information related to the lease | For the Six Months Ended June 30, 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating lease $ 99,619 |
NOTES AND LOANS PAYABLE (Tables
NOTES AND LOANS PAYABLE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
NOTES AND LOANS PAYABLE | |
Summary of notes payable activity | Notes Debt Payable Discount Total Balance, January 1, 2022 $ — $ — $ — Proceeds from promissory note 5,000,000 — 5,000,000 Debt discount — (267,200) (267,200) Amortization of debt discount — 103,219 103,219 Outstanding, June 30, 2022 $ 5,000,000 $ (163,981) $ 4,836,019 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Schedule of warrants activity | Weighted Weighted Average Average Number of Exercise Remaining Intrinsic Warrants Price Term (Yrs) Value Outstanding, January 1, 2022 2,594,553 $ 1.25 Issued 2,346,525 1.00 Exercised (2,416,668) (1.25) Expired — — Forfeited — — Outstanding, June 30, 2022 2,524,410 $ 1.02 3.5 $ 1,343,954 Exercisable, June 30, 2022 2,524,410 $ 1.25 3.5 $ 1,343,954 |
Schedule of outstanding and exercisable warrants | A summary of outstanding and exercisable warrants as of June 30, 2022 is presented below: Warrants Outstanding Warrants Exercisable Weighted Outstanding Average Exercisable Exercise Number of Remaining Life Number of Price Warrants In Years Warrants $ 1.25 177,885 3.5 177,885 $ 1.00 2,346,525 3.5 2,346,525 2,524,410 3.5 2,524,410 |
Schedule of stock option activity outstanding and exercisable | Weighted Weighted Average Average Number of Exercise Remaining Intrinsic Options Price Term (Yrs) Value Outstanding, January 1, 2022 405,216 $ 2.29 Granted 130,000 2.03 Exercised (35,500) 0.76 Expired — — Forfeited (17,500) 2.03 Outstanding, June 30, 2022 482,216 $ 1.65 3.5 $ 167,783 Exercisable, June 30, 2022 207,355 $ 1.19 2.4 $ 125,267 Options Outstanding Options Exercisable Weighted Outstanding Average Exercisable Exercise Number of Remaining Life Number of Price Options In Years Options $ 0.66 152,486 1.7 140,750 $ 1.28 10,000 — — $ 1.55 20,000 — — $ 1.99 10,000 3.9 3,958 $ 2.05 50,000 4.1 3,333 $ 2.08 10,000 3.9 3,958 $ 2.13 20,000 4.2 6,250 $ 2.25 10,000 4.6 625 $ 2.27 29,730 4.0 10,980 $ 2.31 50,000 — — $ 2.43 20,000 4.2 6,250 $ 2.44 100,000 3.7 31,250 482,216 2.4 207,355 |
Summary of restricted common stock | Weighted Average Grant Date Shares of Restricted Fair Value Common Stock Per Share Non-vested balance, January 1, 2022 2,590,000 $ 2.52 Granted 150,000 2.08 Vested (782,500) 2.48 Non-vested shares, June 30, 2022 1,957,500 $ 2.50 |
Schedule of Information relating to stock based compensation | The following table presents information related to stock-based compensation for the three months ended June 30, 2022 and 2021: For The Three Months Ended For The Six Months Ended June 30, June 30, 2022 2021 2022 2021 Common stock for services $ 10,261 $ 110,000 $ 53,421 $ 159,800 Amortization of restricted common stock 422,128 433,689 941,359 560,314 Amortization of market-based awards 565,421 489,774 1,295,469 620,019 Stock options 26,535 15,779 42,418 24,891 Accrued issuable equity (common stock) 19,200 36,649 (46,200) 108,839 Total $ 1,043,545 $ 1,085,891 $ 2,286,467 $ 1,473,863 |
Stock options. | |
Schedule of stock options granted | For The Six Months Ended June 30, 2022 2021 Risk free interest rate 1.18% -2.94 % 1.58 % Expected term (years) 3.5 - 3.9 2.5 - 3.5 Expected volatility 116 % 93% - 109 % Expected dividends 0 % 0 % |
Amortization of market-based awards | |
Summary of restricted common stock | Number of Grant Date Award Shares Fair Value Restricted stock units 1,500,000 $ 2,911,420 Stock options 1,500,000 2,579,000 Total 3,000,000 $ 5,490,420 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Customer concentrations (Details) - Customer Concentration Risk | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Revenues | Customer | |||||
Concentration Risk, Percentage | 84% | 89% | 86% | 88% | |
Revenues | Customer A | |||||
Concentration Risk, Percentage | 69% | 12% | 62% | ||
Revenues | Customer B | |||||
Concentration Risk, Percentage | 56% | 42% | |||
Revenues | Customer C | |||||
Concentration Risk, Percentage | 28% | 21% | |||
Revenues | Customer D | |||||
Concentration Risk, Percentage | 20% | 14% | |||
Revenues | Customer E | |||||
Concentration Risk, Percentage | 12% | ||||
Revenues | Customer F | |||||
Concentration Risk, Percentage | 11% | ||||
Revenues | Customer G | |||||
Concentration Risk, Percentage | 21% | ||||
Accounts Receivable | Customer | |||||
Concentration Risk, Percentage | 89% | 97% | |||
Accounts Receivable | Customer A | |||||
Concentration Risk, Percentage | 42% | ||||
Accounts Receivable | Customer B | |||||
Concentration Risk, Percentage | 59% | ||||
Accounts Receivable | Customer C | |||||
Concentration Risk, Percentage | 30% | 34% | |||
Accounts Payable | Vendor | |||||
Concentration Risk, Percentage | 65% | 85% | 68% | 91% | |
Accounts Payable | Vendor A | |||||
Concentration Risk, Percentage | 65% | 51% | |||
Accounts Payable | Vendor B | |||||
Concentration Risk, Percentage | 85% | 43% | |||
Accounts Payable | Vendor C | |||||
Concentration Risk, Percentage | 48% | ||||
Accounts Payable | Vendor D | |||||
Concentration Risk, Percentage | 17% |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Inventory (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Work-in-process | $ 91,188 | $ 5,500 |
Finished goods | 193,384 | 185,811 |
Total inventory | $ 284,572 | $ 191,311 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - consolidated statements of operations: (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 587,546 | $ 628,244 | $ 788,045 | $ 1,046,149 |
Product sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 557,664 | 577,360 | 730,263 | 755,609 |
Contract services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 29,882 | $ 50,884 | $ 57,782 | $ 290,540 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of basic and diluted net loss per common share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Numerator: | ||||
Net Loss Attributable to Common Stockholders | $ (5,254,685) | $ (5,651,469) | $ (9,391,240) | $ (7,366,192) |
Denominator: | ||||
Weighted-average common shares outstanding | 106,348,239 | 94,513,238 | 105,578,313 | 92,639,830 |
Less: weighted-average unvested restricted shares | (2,019,011) | (2,000,000) | (2,187,514) | (1,337,017) |
Add: weighted average accrued issuable equity | 216,571 | 146,674 | ||
Denominator for basic net loss per share | 104,545,799 | 92,513,238 | 103,537,473 | 91,302,814 |
Denominator for diluted net loss per share | 104,545,799 | 92,513,238 | 103,537,473 | 91,302,814 |
Net loss per share: | ||||
Net Loss Per Share - Basic (In dollars per share) | $ (0.05) | $ (0.06) | $ (0.09) | $ (0.08) |
Net Loss Per Share - Diluted (In dollars per share) | $ (0.05) | $ (0.06) | $ (0.09) | $ (0.08) |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - weighted average dilutive common shares (Details) - shares | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 7,964,126 | 12,402,911 |
Unvested Restricted Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,957,500 | 2,475,000 |
Unvested Market-based equity award | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3,000,000 | 3,000,000 |
Stock options. | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 482,216 | 540,000 |
Warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,524,410 | 6,387,911 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
May 13, 2022 | Apr. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | ||
Gross proceeds | $ 2,933,156 | |||||||||
Repayments of note payable | $ 0 | $ 2,450,000 | ||||||||
Cash | $ 12,991,732 | 12,991,732 | $ 14,863,301 | |||||||
Net loss | (5,254,685) | $ (4,136,555) | $ (3,027,143) | $ (1,714,723) | (9,391,240) | (4,741,866) | ||||
Cash used in operations | 9,010,695 | 4,081,565 | ||||||||
Working capital | 8,477,713 | 8,477,713 | ||||||||
Cash, FDIC Insured Amount | 250,000 | 250,000 | ||||||||
Uninsured cash | 12,491,732 | 12,491,732 | 14,363,301 | |||||||
Deferred revenue | 20,000 | 20,000 | 132,303 | |||||||
Cost of Goods and Services Sold | 423,672 | 439,206 | 546,590 | 714,474 | ||||||
Revenue Recognized | 0 | $ 0 | 112,303 | 0 | ||||||
Deferred labor costs | 29,887 | 29,887 | 84,324 | |||||||
Finished goods | 193,384 | 193,384 | 185,811 | |||||||
Work-in-process | 91,188 | 91,188 | $ 5,500 | |||||||
Proceeds from Notes Payable | [1] | 4,750,000 | $ 0 | |||||||
Common stock | ||||||||||
Net loss | 0 | $ 0 | ||||||||
Promissory Note | ||||||||||
Debt principal amount | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | |||||||
Investor | ||||||||||
Proceeds from Notes Payable | 4,750,000 | |||||||||
Investor | Common stock | ||||||||||
Stock Issued | $ 50,000,000 | |||||||||
[1] (1) |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | ||
Marketing | $ 726,422 | $ 10,231 |
Inventory deposits | 691,006 | 309,688 |
Professional fees | 164,558 | 65,118 |
Subscriptions | 71,774 | 0 |
Insurance | 40,733 | 69,925 |
Other | 33,541 | 31,074 |
Deferred labor costs | 29,887 | 84,324 |
Receivable for option exercise | 28,224 | 0 |
Total prepaid expenses | 1,786,145 | $ 570,360 |
Sponsorship Agreement Commitments | 2,000,000 | |
Unamortized prepaid marketing costs | $ 722,321 |
VENDOR DEPOSITS (Details)
VENDOR DEPOSITS (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
VENDOR DEPOSITS | ||
Vendor deposits | $ 2,582,958 | $ 2,153,950 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ||
Legal and professional fees | $ 862,047 | $ 418,154 |
Payroll and vacation | 397,809 | 302,101 |
Research and development | 194,444 | 146,158 |
Board compensation | 56,541 | 45,680 |
Other | 38,160 | 84,824 |
Marketing and advertising fees | 20,563 | 37,810 |
Accrued cost of sales | 2,191 | 128,500 |
Total accrued expenses and other current liabilities | $ 1,571,755 | $ 1,163,227 |
ACCRUED ISSUABLE EQUITY (Detail
ACCRUED ISSUABLE EQUITY (Details) | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Movements In Accrued Issuable Equity For Services, Current [Roll Forward] | |
Beginning balance | $ 290,721 |
Additions | 45,800 |
Cancelled accrued issuable equity obligations | (92,000) |
Mark-to-market | (95,720) |
Ending balance | $ 148,801 |
ACCRUED ISSUABLE EQUITY - Addit
ACCRUED ISSUABLE EQUITY - Additional information (Details) | 6 Months Ended |
Jun. 30, 2022 USD ($) shares | |
ACCRUED ISSUABLE EQUITY. | |
Value of services | $ 45,800 |
Shares issued in exchange for certain services, number | shares | 33,333 |
Shares issued in exchange for services, aggregate fair value | $ 92,000 |
Fair value of unissued equity | 148,801 |
Gains (losses) related to the change in fair value | $ 95,720 |
LEASES - Maturity (Details)
LEASES - Maturity (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
LEASES | ||
April 1 through December 31, 2022 | $ 114,999 | |
2023 | 234,694 | |
2024 | 99,187 | |
Total lease payments | 448,880 | |
Less: Imputed interest | (21,862) | |
Present value of lease liabilities | 427,018 | |
Less: current portion | (214,166) | $ (262,379) |
Lease liability, non-current portion | $ 212,852 | $ 407,898 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information Related to Lease (Details) | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities | |
Operating cash flows from operating lease | $ 99,619 |
LEASES - Additional Information
LEASES - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
New lease agreement for office space in San Diego, California | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease expense | $ 57,849 | $ 39,805 | $ 131,930 | $ 55,207 |
NOTES AND LOANS PAYABLE (Detail
NOTES AND LOANS PAYABLE (Details) - USD ($) | 6 Months Ended | |||
May 13, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Debt Instrument [Line Items] | ||||
Cash proceeds | [1] | $ 4,750,000 | $ 0 | |
Promissory Note | ||||
Debt Instrument [Line Items] | ||||
Initial principal amount | $ 5,000,000 | 5,000,000 | ||
Original issue discount | $ 250,000 | |||
Promissory Note | Note Purchase Agreement | ||||
Debt Instrument [Line Items] | ||||
Initial principal amount | 5,000,000 | |||
Cash proceeds | 4,750,000 | |||
Original issue discount | 250,000 | |||
Structuring fee | 10,000 | |||
Legal fees | $ 7,200 | |||
Interest rate (in percent) | 10% | |||
[1] (1) |
NOTES AND LOANS PAYABLE - Summa
NOTES AND LOANS PAYABLE - Summary Of Notes Payable activity (Details) | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Total | |
Beginning balance | $ 0 |
Ending balance | 4,836,019 |
Promissory Note | |
Notes Payable | |
Beginning balance | 0 |
Proceeds from promissory note | 5,000,000 |
Ending balance | 5,000,000 |
Debt discount | |
Beginning balance | 0 |
Debt discount | (267,200) |
Amortization of debt discount | 103,219 |
Ending balance | (163,981) |
Total | |
Beginning balance | 0 |
Proceeds from promissory note | 5,000,000 |
Debt discount | (267,200) |
Amortization of debt discount | 103,219 |
Ending balance | $ 4,836,019 |
NOTES AND LOANS PAYABLE - Paych
NOTES AND LOANS PAYABLE - Paycheck Protection Program Loan (Details) - Payment Protection Loans - USD ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 27, 2020 | Jun. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||||
Cash proceeds from unsecured loan | $ 155,000 | |||
Loan maturity term | 2 years | |||
Extended maturity term | 5 years | |||
Interest expense of loan | $ 387 | $ 651 | ||
Accrued interest related to the loan | $ 2,352 | $ 2,352 | $ 1,701 |
STOCKHOLDERS' EQUITY - Summary
STOCKHOLDERS' EQUITY - Summary of warrants activity (Details) - Warrants | 6 Months Ended |
Jun. 30, 2022 USD ($) $ / shares shares | |
Outstanding at the beginning | 2,594,553 |
Issued | 2,346,525 |
Exercised | (2,416,668) |
Outstanding at the end | 2,524,410 |
Exercisable at the end | 2,524,410 |
Weighted Average Exercise Price, Outstanding | $ / shares | $ 1.25 |
Issued (in dollars per share) | $ / shares | 1 |
Exercised (in dollars per share) | $ / shares | (1.25) |
Weighted Average Exercise Price, Outstanding | $ / shares | $ 1.02 |
Exercisable at the end (in dollars per share) | 1.25 |
Outstanding at the end (in years) | 3 years 6 months |
Exercisable at the end (in years) | 3 years 6 months |
Outstanding at the end (in dollars) | $ | $ 1,343,954 |
Exercisable at the end (in dollars) | $ | $ 1,343,954 |
STOCKHOLDERS' EQUITY - Outstand
STOCKHOLDERS' EQUITY - Outstanding and exercisable warrants (Details) | Jun. 30, 2022 $ / shares shares | Apr. 30, 2022 $ / shares shares | Dec. 31, 2021 shares |
Exercise price of warrants | $ / shares | $ 1 | ||
Warrants Outstanding | 2,346,525 | ||
Warrants | |||
Warrants Outstanding | 2,524,410 | 2,594,553 | |
Weighted average remaining life (in years) | 3 years 6 months | ||
Exercisable, Number of Warrants | 2,524,410 | ||
Warrants | |||
Warrant measurement input | 3,657,763 | ||
Measurement Input, Risk Free Interest Rate [Member] | |||
Warrant measurement input | 2.88 | ||
Measurement Input, Expected Term [Member] | |||
Warrant measurement input | 3.69 | ||
Measurement Input, Price Volatility [Member] | |||
Warrant measurement input | 100 | ||
Measurement Input, Dividend Rate [Member] | |||
Warrant measurement input | 0 | ||
Exercise price, 1.25 | Warrants | |||
Exercise price of warrants | $ / shares | $ 1.25 | ||
Warrants Outstanding | 177,885 | ||
Weighted average remaining life (in years) | 3 years 6 months | ||
Exercisable, Number of Warrants | 177,885 | ||
Exercise price, 1.00 | Warrants | |||
Exercise price of warrants | $ / shares | $ 1 | ||
Warrants Outstanding | 2,346,525 | ||
Weighted average remaining life (in years) | 3 years 6 months | ||
Exercisable, Number of Warrants | 2,346,525 |
STOCKHOLDERS' EQUITY - Option p
STOCKHOLDERS' EQUITY - Option pricing model (Details) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Risk free interest rate | 1.58% | |
Expected volatility | 116% | |
Expected dividends | 0% | 0% |
Minimum | ||
Risk free interest rate | 1.18% | |
Expected volatility | 93% | |
Expected term | 3 years 6 months | 2 years 6 months |
Maximum | ||
Risk free interest rate | 2.94% | |
Expected volatility | 109% | |
Expected term | 3 years 10 months 24 days | 3 years 6 months |
STOCKHOLDERS' EQUITY - Stock ac
STOCKHOLDERS' EQUITY - Stock activity (Details) | 6 Months Ended |
Jun. 30, 2022 USD ($) $ / shares shares | |
STOCKHOLDERS' EQUITY | |
Number of Options, Outstanding | shares | 405,216 |
Number of Options, Granted | shares | 130,000 |
Number of Options, Exercised | shares | (35,500) |
Number of Options, Forfeited | shares | (17,500) |
Number of Options, Outstanding | shares | 482,216 |
Number of Options, Exercisable | shares | 207,355 |
Weighted Average Exercise Price, Outstanding | $ / shares | $ 2.29 |
Weighted Average Exercise Price, Granted | $ / shares | 2.03 |
Weighted Average Exercise Price, Exercised | $ / shares | 0.76 |
Weighted Average Exercise Price, Forfeited | $ / shares | 2.03 |
Weighted Average Exercise Price Outstanding | $ / shares | 1.65 |
Weighted Average Exercise Price Exercisable | $ / shares | $ 1.19 |
Weighted Average Remaining Term, Outstanding | 3 years 6 months |
Weighted Average Remaining Term, Exercisable | 2 years 4 months 24 days |
Number of Options Intrinsic Value, Outstanding | $ | $ 167,783 |
Number of Options Intrinsic Value, Exercisable | $ | $ 125,267 |
STOCKHOLDERS' EQUITY - Stock op
STOCKHOLDERS' EQUITY - Stock options (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Options Outstanding, Exercise Price | $ 1.19 | |
Options Outstanding, Number of Options | 482,216 | 405,216 |
Options Exercisable, Weighted Average Remaining Life | 2 years 4 months 24 days | |
Options Exercisable Number of Options | 207,355 | |
0.66 Exercise Price | ||
Options Outstanding, Exercise Price | $ 0.66 | |
Options Outstanding, Number of Options | 152,486 | |
Options Exercisable, Weighted Average Remaining Life | 1 year 8 months 12 days | |
Options Exercisable Number of Options | 140,750 | |
1.28 Exercise price | ||
Options Outstanding, Exercise Price | $ 1.28 | |
Options Outstanding, Number of Options | 10,000 | |
1.55 Exercise price | ||
Options Outstanding, Exercise Price | $ 1.55 | |
Options Outstanding, Number of Options | 20,000 | |
1.99 Exercise Price | ||
Options Outstanding, Exercise Price | $ 1.99 | |
Options Outstanding, Number of Options | 10,000 | |
Options Exercisable, Weighted Average Remaining Life | 3 years 10 months 24 days | |
Options Exercisable Number of Options | 3,958 | |
2.05 exercise price | ||
Options Outstanding, Exercise Price | $ 2.05 | |
Options Outstanding, Number of Options | 50,000 | |
Options Exercisable, Weighted Average Remaining Life | 4 years 1 month 6 days | |
Options Exercisable Number of Options | 3,333 | |
2.08 Exercise Price | ||
Options Outstanding, Exercise Price | $ 2.08 | |
Options Outstanding, Number of Options | 10,000 | |
Options Exercisable, Weighted Average Remaining Life | 3 years 10 months 24 days | |
Options Exercisable Number of Options | 3,958 | |
2.13 Exercise Price | ||
Options Outstanding, Exercise Price | $ 2.13 | |
Options Outstanding, Number of Options | 20,000 | |
Options Exercisable, Weighted Average Remaining Life | 4 years 2 months 12 days | |
Options Exercisable Number of Options | 6,250 | |
2.25 Exercise Price | ||
Options Outstanding, Exercise Price | $ 2.25 | |
Options Outstanding, Number of Options | 10,000 | |
Options Exercisable, Weighted Average Remaining Life | 4 years 7 months 6 days | |
Options Exercisable Number of Options | 625 | |
2.27 Exercise Price | ||
Options Outstanding, Exercise Price | $ 2.27 | |
Options Outstanding, Number of Options | 29,730 | |
Options Exercisable, Weighted Average Remaining Life | 4 years | |
Options Exercisable Number of Options | 10,980 | |
2.31 Exercise Price | ||
Options Outstanding, Exercise Price | $ 2.31 | |
Options Outstanding, Number of Options | 50,000 | |
2.43 Exercise Price | ||
Options Outstanding, Exercise Price | $ 2.43 | |
Options Outstanding, Number of Options | 20,000 | |
Options Exercisable, Weighted Average Remaining Life | 4 years 2 months 12 days | |
Options Exercisable Number of Options | 6,250 | |
2.44 Exercise Price | ||
Options Outstanding, Exercise Price | $ 2.44 | |
Options Outstanding, Number of Options | 100,000 | |
Options Exercisable, Weighted Average Remaining Life | 3 years 8 months 12 days | |
Options Exercisable Number of Options | 31,250 |
STOCKHOLDERS' EQUITY - Restrict
STOCKHOLDERS' EQUITY - Restricted Common Stock (Details) - Restricted common stock | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
Shares of Restricted Common Stock | |
Non-vested balance, January 1, 2022 | shares | 2,590,000 |
Granted | shares | 150,000 |
Vested | shares | (782,500) |
Non-vested shares, June 30, 2022 | shares | 1,957,500 |
Weighted Average Grant Date Fair Value | |
Non-vested balance, January 1, 2021 (in dollars per share) | $ / shares | $ 2.52 |
Granted (in dollars per share) | $ / shares | 2.08 |
Vested (in dollars per share) | $ / shares | 2.48 |
Non-vested balance at the end (in dollars per share) | $ / shares | $ 2.50 |
STOCKHOLDERS' EQUITY - Market-B
STOCKHOLDERS' EQUITY - Market-Based Awards (Details) - Amortization of market-based awards | 6 Months Ended |
Jun. 30, 2022 USD ($) shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares | shares | 3,000,000 |
Grant Date Fair Value | $ | $ 5,490,420 |
Stock options. | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares | shares | 1,500,000 |
Grant Date Fair Value | $ | $ 2,579,000 |
Restricted common stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares | shares | 1,500,000 |
Grant Date Fair Value | $ | $ 2,911,420 |
STOCKHOLDERS' EQUITY - Stock-Ba
STOCKHOLDERS' EQUITY - Stock-Based Compensation (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Allocated Share-based Compensation Expense | $ 1,043,545 | $ 1,085,891 | $ 2,286,467 | $ 1,473,863 |
Selling, general and administrative expenses | ||||
Allocated Share-based Compensation Expense | 1,033,851 | 1,078,106 | 2,268,665 | 1,458,673 |
Research and development expenses | ||||
Allocated Share-based Compensation Expense | 9,694 | 7,785 | 17,802 | 15,190 |
Common stock for services | ||||
Allocated Share-based Compensation Expense | 10,261 | 110,000 | 53,421 | 159,800 |
Common stock | ||||
Allocated Share-based Compensation Expense | 422,128 | 433,689 | 941,359 | 560,314 |
Amortization of market-based awards | ||||
Allocated Share-based Compensation Expense | 565,421 | 489,774 | 1,295,469 | 620,019 |
Stock options | ||||
Allocated Share-based Compensation Expense | 26,535 | 15,779 | 42,418 | 24,891 |
Accrued issuable equity (common stock) | ||||
Allocated Share-based Compensation Expense | $ 19,200 | $ 36,649 | $ (46,200) | $ 108,839 |
STOCKHOLDERS' EQUITY - Addition
STOCKHOLDERS' EQUITY - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
May 13, 2022 | Apr. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | |
Common Stock, Par Value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Common stock shares issued upon exercise of warrants (in shares) | 2,346,525 | 70,143 | |||||||
Gross proceeds from exercise of warrants | $ 2,933,156 | $ 87,679 | |||||||
Grant date value of common stock issued related to consulting services provided | $ 10,261 | $ 43,160 | $ 49,800 | ||||||
Company held shares with Restricted common stock awards | 194,704 | ||||||||
Company held with restricted common stock awards | $ 439,728 | ||||||||
Gross proceeds from exercise of options, transferred from treasury | (28,224) | ||||||||
Treasury stock, value | $ 365,199 | $ 365,199 | $ 0 | ||||||
Share-based compensation arrangement by share-based payment award, option, non vested, weighted average exercise price | $ 1.47 | $ 0.66 | $ 1.47 | ||||||
Treasury stock, shares held | 161,704 | 161,704 | 0 | ||||||
Common stock issued upon exercise of options (in shares) | 35,500 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 0 | ||||||||
Standby Equity Purchase Agreement | |||||||||
Value of shares to be issued | $ 50,000,000 | ||||||||
Common Stock, Par Value (in dollars per share) | $ 0.0001 | ||||||||
Commitment period (in months) | 24 months | ||||||||
Maximum advance value of shares to be issued | $ 5,000,000 | ||||||||
Price per share to be issued on Market Price (in percent) | 98% | ||||||||
Ownership Limitation (in percent) | 4.99% | ||||||||
Exchange Cap (in percent) | 19.90% | ||||||||
Number of consecutive days | 3 days | ||||||||
Shares, Issued | 0 | 0 | |||||||
Legal and consulting services | |||||||||
Shares of common stock issued related to consulting services provided | 6,000 | 12,000 | |||||||
Grant date value of common stock issued related to consulting services provided | $ 10,261 | $ 53,421 | |||||||
Stock options. | |||||||||
Unrecognized stock-based compensation expense | 292,920 | $ 292,920 | |||||||
Unrecognized stock-based compensation expense that will be recognized over the weighted average remaining vesting period | 3 years 2 months 12 days | ||||||||
Amortization of market-based awards | |||||||||
Unrecognized stock-based compensation expense | 2,083,108 | $ 2,083,108 | |||||||
Unrecognized stock-based compensation expense that will be recognized over the weighted average remaining vesting period | 1 year 4 months 24 days | ||||||||
Restricted common stock | |||||||||
Unrecognized stock-based compensation expense | 4,365,706 | $ 4,365,706 | |||||||
Unrecognized stock-based compensation expense that will be recognized over the weighted average remaining vesting period | 2 years 8 months 12 days | ||||||||
Treasury Stock | |||||||||
Gross proceeds from exercise of options, transferred from treasury | $ (74,529) | $ 28,224 | |||||||
Common stock issued upon exercise of options (in shares) | (33,000) | 33,000 | |||||||
Common stock | |||||||||
Shares of common stock issued related to consulting services provided | 6,000 | 6,000 | 55,000 | 20,000 | |||||
Grant date value of common stock issued related to consulting services provided | $ 1 | $ 1 | $ 2 | ||||||
Gross proceeds from exercise of options, transferred from treasury | $ 0 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - Second Sponsorship Agreement - USD ($) | 6 Months Ended | ||
Jun. 15, 2022 | Jun. 30, 2022 | Jul. 08, 2022 | |
Committed sponsorship fees | $ 1,450,000 | $ 950,000 | |
Subsequent event | |||
Aggregate amount spend on agreement | $ 500,000 |