Applied UV (AUVIQ) 10-Q 18 Aug 23 2023 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2023	Aug. 18, 2023
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2023
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
Entity File Number	001-39480
Entity Registrant Name	APPLIED UV, INC.
Entity Central Index Key	0001811109
Entity Tax Identification Number	84-4373308
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	150 N. Macquesten Parkway
Entity Address, City or Town	Mount Vernon
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10550
City Area Code	(914)
Local Phone Number	665-6100
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		8,905,633
Common Stock, par value $0.0001 per share [Member]
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	AUVI
Security Exchange Name	NASDAQ
10.5% Series A Cumulative Perpetual Preferred Stock, $0.0001 par value per share [Member]
Title of 12(b) Security	10.5% Series A Cumulative Perpetual Preferred Stock, $0.0001 par value per share
Trading Symbol	AUVIP
Security Exchange Name	NASDAQ

Unaudited Condensed Consolidate

Unaudited Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Current Assets
Cash and cash equivalents	$ 3,333,544	$ 2,734,485
Accounts receivable, net of allowance for doubtful accounts	5,049,906	1,508,239
Costs and estimated earnings in excess of billings	2,435,960	1,306,762
Inventory, net	8,207,895	5,508,086
Vendor deposits	1,149,385	75,548
Prepaid expense and other current assets	2,011,189	1,187,223
Total Current Assets	22,187,879	12,320,343
Property and equipment, net of accumulated depreciation	1,166,507	1,133,468
Other assets	0	153,000
Goodwill	17,809,235	3,722,077
Other intangible assets, net of accumulated amortization	28,000,601	11,354,430
Right of use assets	3,807,834	4,044,109
Total Assets	72,972,056	32,727,427
Current Liabilities
Accounts payable and accrued expenses	8,862,351	2,982,760
Contingent consideration	18,809,672	0
Deferred revenue	5,406,083	4,730,299
Due to landlord (Note 2)	189,182	229,234
Warrant liability	9,069	9,987
Financing lease obligations	41,632	33,712
Operating lease liability	1,689,127	1,437,308
Notes payable, net	4,999,257	2,098,685
Total Current Liabilities	40,006,373	11,521,985
Long-Term Liabilities
Due to landlord - less current portion (Note 2)	325,557	393,230
Notes payable, net - less current portion	5,323,659	765,144
Financing lease obligations - less current portion	155,360	158,070
Operating lease liability - less current portion	2,190,159	2,655,103
Total Long-Term Liabilities	7,994,735	3,971,547
Total Liabilities	48,001,108	15,493,532
Redeemable Preferred Stock
Total Redeemable Preferred Stock	4,776,489	0
Equity
Common Stock $0.0001 par value, 150,000,000 shares authorized 8,928,330 shares issued and 8,905,633 outstanding as of June 30, 2023 and 2,735,290 shares issued and 2,712,593 outstanding as of December 31, 2022, respectively	893	274
Additional paid-in capital	56,883,253	45,620,764
Treasury stock at cost, 22,697, respectively	(149,686)	(149,686)
Accumulated deficit	(36,540,057)	(28,237,513)
Total Equity	20,194,459	17,233,895
Total Liabilities, Redeemable Preferred Stock and Stockholders' Equity	72,972,056	32,727,427
Series B Redeemable Preferred Stock [Member]
Redeemable Preferred Stock
Total Redeemable Preferred Stock	3,712,500	0
Series C Redeemable Preferred Stock [Member]
Redeemable Preferred Stock
Total Redeemable Preferred Stock	1,063,989	0
Series A Preferred Stock [Member]
Equity
Preferred stock value	55	55
Series X Preferred Stock [Member]
Equity
Preferred stock value	$ 1	$ 1

Unaudited Condensed Consolida_2

Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
Common Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Common Stock, Shares Authorized	150,000,000	150,000,000
Common Stock, Shares, Issued	8,928,330	2,735,290
Common Stock, Shares, Outstanding	8,905,633	2,712,593
Treasury Stock, Shares	22,697	22,697
Series B Redeemable Preferred Stock [Member]
Preferred Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	1,250,000	1,250,000
Preferred Stock, Shares Issued	1,250,000	0
Preferred Stock, Shares Outstanding	1,250,000	0
Series C Redeemable Preferred Stock [Member]
Preferred Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	2,500,000	2,500,000
Preferred Stock, Shares Issued	399,996	0
Preferred Stock, Shares Outstanding	399,996	0
Series A Preferred Stock [Member]
Preferred Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	1,250,000	1,250,000
Preferred Stock, Shares Issued	552,000	552,000
Preferred Stock, Shares Outstanding	552,000	552,000
Series X Preferred Stock [Member]
Preferred Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	10,000	10,000
Preferred Stock, Shares Issued	10,000	10,000
Preferred Stock, Shares Outstanding	10,000	10,000

Unaudited Condensed Interim Con

Unaudited Condensed Interim Consolidated Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Net Sales	$ 10,843,686	$ 5,907,646	$ 21,498,169	$ 9,263,736
Cost of Goods Sold	8,433,992	4,603,854	17,166,089	6,810,845
Gross Profit	2,409,694	1,303,792	4,332,080	2,452,891
Operating Expenses
Research and development	180,293	82,049	369,503	141,363
Selling General and Administrative Expenses	4,922,119	4,031,215	10,186,498	7,132,441
Loss on impairment of goodwill and intangibles	0	0	0	1,138,203
Total Operating Expenses	5,102,412	4,113,264	10,556,001	8,412,007
Operating Loss	(2,692,718)	(2,809,472)	(6,223,921)	(5,959,116)
Other Income (Expense)
Change in Fair Market Value of Warrant Liability	(1,384)	(32,111)	918	11,717
Interest expense	(483,122)	(49,020)	(876,061)	(53,076)
Gain (Loss) on change in Fair Market Value of Contingent Consideration	186,000	0	(433,999)	(240,000)
Gain on Settlement of Contingent Consideration (Note 2)	0	0	0	1,700,000
Other Income	0	1,948	0	1,948
Total Other Income (Expense)	(298,506)	(79,183)	(1,309,142)	1,420,589
Loss Before Provision for Income Taxes	(2,991,224)	(2,888,655)	(7,533,063)	(4,538,527)
Benefit from Income Taxes	0	0	0	0
Net Loss	(2,991,224)	(2,888,655)	(7,533,063)	(4,538,527)
Net Loss attributable to common stockholders:
Dividends to preferred shareholders	(407,231)	(362,250)	(769,481)	(724,500)
Net Loss attributable to common stockholders	$ (3,398,455)	$ (3,250,905)	$ (8,302,544)	$ (5,263,027)

Unaudited Condensed Interim C_2

Unaudited Condensed Interim Consolidated Statements of Operations (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Basic Loss Per Common Share	$ (0.77)	$ (1.28)	$ (2.10)	$ (2.06)
Diluted Loss Per Common Share	$ (0.77)	$ (1.28)	$ (2.10)	$ (2.06)
Weighted Average Shares Outstanding Basic	4,434,036	2,533,077	3,949,211	2,559,957
Weighted Average Shares Outstanding Diluted	4,434,036	2,533,077	3,949,211	2,559,957

Unaudited Condensed Consolida_3

Unaudited Condensed Consolidated Statements of Redeemable Preferred Stock and Changes in Stockholders' Equity - USD ($)	Preferred Stock Series B [Member]	Preferred Stock Series C [Member]	Preferred Stock Series A [Member]	Preferred Stock Series X [Member]	Common Stock [Member]	Treasury Stocks [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Dec. 31, 2021			$ 55	$ 1	$ 256		$ 42,878,644	$ (10,213,196)	$ 32,665,760
Shares, Outstanding, Beginning Balance at Dec. 31, 2021			552,000	2,000	2,555,135
Settlement of stock in connection with prior acquisition (Note 2)					$ (8)		8
Settlement of stock in connection with prior acquisition, shares					(80,000)
Common stock issued for in public offering (over-allotment), net of costs					$ 8		1,091,992		1,092,000
Common stock issued for in public offering (over-allotment), net of costs, shares					80,000
Stock-based compensation					$ 2		287,997		287,999
Stock-based compensation, shares					22,500
Dividends paid to preferred shareholder								(362,250)	(362,250)
Cancellation of restricted stock
Net Loss								(1,649,872)	(1,649,872)
Ending balance, value at Mar. 31, 2022			$ 55	$ 1	$ 258		44,258,641	(12,225,318)	32,033,637
Shares, Outstanding, Ending Balance at Mar. 31, 2022			552,000	2,000	2,577,635
Cancellation of restricted shares					$ (1)		1
Cancellation of restricted shares, shares					(10,500)
Stock-based compensation					$ 2		112,449		112,451
Treasury shares repurchased						$ (149,686)			(149,686)
Treasury shares repurchased, shares						22,697
Stock-based compensation, shares					19,000
Dividends paid to preferred shareholder								(362,250)	(362,250)
Net Loss								(2,888,655)	(2,888,655)
Ending balance, value at Jun. 30, 2022			$ 55	$ 1	$ 259	$ (149,686)	44,371,091	(15,476,223)	28,745,497
Shares, Outstanding, Ending Balance at Jun. 30, 2022			552,000	2,000	2,586,135	22,697
Beginning balance, value at Dec. 31, 2022			$ 55	$ 1	$ 274	$ (149,686)	45,620,764	(28,237,513)	17,233,895
Shares, Outstanding, Beginning Balance at Dec. 31, 2022			552,000	10,000	2,735,290	22,697
Common and Preferred stock issued for acquisition	$ 3,712,500	$ 1,063,989			$ 78		4,029,922		4,030,000
Common and Preferred stock issued for acquisition, shares	1,250,000	399,996			774,999
Common stock issued in public offering (ATM), net of costs					$ 35		2,242,891		2,242,926
Common stock issued in public offering (ATM), net of costs, shares					352,862
Stock-based compensation					$ 1		192,020		192,021
Stock-based compensation, shares					11,000
Dividends paid to preferred shareholder								(362,250)	(362,250)
Net Loss								(4,541,839)	(4,541,839)
Ending balance, value at Mar. 31, 2023	$ 3,712,500	$ 1,063,989	$ 55	$ 1	$ 388	$ (149,686)	52,085,597	(33,141,602)	18,794,753
Shares, Outstanding, Ending Balance at Mar. 31, 2023	1,250,000	399,996	552,000	10,000	3,874,151	22,697
Common stock issued in public offering ,net of costs					$ 493		4,383,504		4,383,997
Common stock issued in public offering, net of costs, shares					4,930,000
Common stock issued in public offering (ATM), net of costs					$ 1		3,875		3,876
Common stock issued in public offering (ATM), net of costs, shares					10,781
Common stock issued in connection with conversion of debt					$ 11		217,489		217,500
Common stock issued in connection with conversion of debt , shares					110,131
Stock-based compensation							192,788		192,788
Stock-based compensation, shares					3,267
Dividends paid to preferred shareholder								(407,231)	(407,231)
Net Loss								(2,991,224)	(2,991,224)
Ending balance, value at Jun. 30, 2023	$ 3,712,500	$ 1,063,989	$ 55	$ 1	$ 893	$ (149,686)	$ 56,883,253	$ (36,540,057)	$ 20,194,459
Shares, Outstanding, Ending Balance at Jun. 30, 2023	1,250,000	399,996	552,000	10,000	8,928,330	22,697

Condensed Interim Consolidated

Condensed Interim Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from Operating Activities
Net Loss	$ (7,533,063)	$ (4,538,527)
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities
Stock based compensation	384,809	400,450
Bad debt (recovery) expense	(135,467)	55,226
Change in fair market value of warrant liability	(918)	(11,717)
Change in fair market value of contingent consideration	433,999	240,000
Gain on settlement of contingent consideration	0	(1,700,000)
Loss on impairment of goodwill and intangible assets	0	1,138,203
Amortization of right-of-use asset	236,275	462,832
Depreciation and amortization	1,418,127	978,495
Amortization of debt discount	399,129	53,646
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable	(1,670,165)	(402,965)
Cost and estimated earnings excess of billings	(595,560)	(262,420)
Inventory	1,311,288	(2,855,073)
Vendor deposits	(698,165)	494,888
Prepaid expenses and other current assets	(194,044)	(62,600)
Accounts payable and accrued expenses	2,088,635	768,872
Billings in excess of costs and earnings on uncompleted contracts	0	(616,475)
Deferred revenue	(1,622,314)	687,494
Due to landlord	(186,344)	(93,172)
Operating lease payments	(213,125)	(449,388)
Net Cash Used in Operating Activities	(6,576,903)	(5,712,231)
Cash Flows From Investing Activities
Cash paid for patent costs	(51,077)	(682)
Purchase of machinery and equipment	(75,959)	(26,043)
Acquisitions, net of cash acquired (Note 2)	(4,115,709)	(10)
Payments on notes payable	(166,262)	0
Net Cash Used in Investing Activities	(4,409,007)	(26,735)
Cash Flows From Financing Activities
Payments on financing leases	(20,022)	(3,493)
Shares repurchased	0	(149,686)
Dividends to preferred shareholders	(769,481)	(724,500)
Payments on note payable	(16,438,782)	0
Proceeds from equity raises, net	6,630,799	1,092,000
Proceeds from note payable, net	22,182,455	0
Net Cash Provided by Financing Activities	11,584,969	214,321
Net Increase (Decrease) in Cash and equivalents	599,059	(5,524,645)
Cash and cash equivalents at January 1,	2,734,485	8,768,156
Cash and cash equivalents at June 30,	3,333,544	3,243,511
Cash paid during the year for:
Interest	308,955	4,102
Supplemental Non-Cash Disclosures of Investing and Financing Activities
Conversion of debt into common stock	217,500	0
Recognition of right of use asset and corresponding lease liability	$ 563,315	$ 1,380,658

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business Applied UV, Inc. (the "Parent") was formed and incorporated in the State of Delaware for the intended purpose of holding the equity of SteriLumen, Inc. (“SteriLumen”), MunnWorks, LLC (“MunnWorks” and together with SteriLumen, the “Subsidiaries”) and other companies acquired or created by the Parent in the future. The Parent acquired the Subsidiaries pursuant to three share exchanges whereby the equity holders of the Subsidiaries exchanged all of their equity interests in the Subsidiaries for shares of voting stock of the Parent. As a result of the share exchanges, each Subsidiary became a wholly-owned subsidiary of the Parent. The Parent and each Subsidiary are collectively referred to herein as (the "Company"). SteriLumen is engaged in the design, manufacture, assembly and distribution of (i) automated disinfecting mirror systems for use in hospitals and other healthcare facilities and (ii) air purification systems through its purchase of substantially all of the assets and certain liabilities of Akida Holdings, LLC, KES Science & Technology, and Scientific Air Management LLC, as described below. MunnWorks, LLC is engaged in the manufacture of fine mirrors and custom furniture specifically for the hospitality and retail industries. On March 25, 2022, the Company acquired the assets and assumed certain liabilities of VisionMark, LLC, ("VisionMark"). VisionMark is engaged in the business of manufacturing furniture using wood and metal components for the hospitality and retail industries. On January 26, 2023 we closed on the merger agreement with PURO Lighting LLC and LED Supply Co. LLC along with its operating subsidiaries (“PURO merger”). PURO and LED Supply Co. own a powerful suite of products used in education, government, and healthcare that incorporates UV Lighting and a HVAC monitoring software platform; LED Supply Co. provides design, distribution, and implementation services for lighting, controls and smart building technologies. Principles of Consolidation The consolidated financial statements include the accounts of Applied UV, Inc., Munnworks, LLC, SteriLumen, Inc., Puro Lighting, LLC, and LED Supply Co. LLC. All significant intercompany transactions and balances are eliminated in consolidation. Basis of Presentation The accompanying unaudited condensed consolidated financial statements and related notes 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 rules and regulations of the United States Securities and Exchange Commission (the “SEC”) set forth in Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim financial statements furnished reflect all adjustments (consisting of normal recurring accruals) which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. Unaudited interim results are not necessarily indicative of the results for the full fiscal year. These financial statements should be read along with the Annual Report filed of the Company for the annual period ended December 31, 2022. Concentration of Credit and Business Risk At times throughout the year, the Company maintains cash balances at various institutions, which may exceed the Federal Deposit Insurance Corporation limit. As of June 30, 2023, the Company was approximately $ 2,959,000 in excess of FDIC insured limits. The Company provides credit in the normal course of business. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, as of the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include the valuation and accounting for equity awards related to warrants and stock-based compensation, determination of fair value for derivative instruments, the accounting for business combinations and allocating purchase price and estimating the useful life of intangible assets. Cash and Cash Equivalents Cash and equivalents include highly liquid investments that have original maturities less than 90 days at the time of their purchase. These investments are carried at cost which approximates market value because of their short maturities. As of June 30, 2023 and December 31, 2022, the Company had $ 27,000 Accounts receivable The Company’s accounts receivable balance consists of amounts due from its customers. The Company records accounts receivable at the invoiced amount less an allowance for any potentially uncollectable accounts under the current expected credit loss (“CECL”) impairment model and presents the net amount of the financial instrument expected to be collected. The CECL impairment model requires an estimate of expected credit losses, measured over the contractual life of an instrument, which considers forecasts of future economic conditions in addition to information about past events and current conditions. Based on this model, the Company considers many factors, including the age of the balance, collection history, and current economic trends. The Company performs ongoing credit evaluations of its customers and maintains allowances for doubtful accounts based on factors surrounding the credit risk of specific customers, historical trends and other information. Bad debts are recorded after all collection efforts have ceased. Allowances for credit losses are recorded as a direct reduction from an asset’s amortized cost basis. Credit losses and recoveries are recorded in selling, general and administrative expenses in the consolidated statements of operations. Recoveries of financial assets previously written off are recorded when received. For the three months ended June 30, 2023 and 2022, the Company had (recoveries) credit losses of $ (41,905 107,075 (135,467 55,226 105,000 35,000 Inventory Inventories consist of raw materials, work-in-process, and finished goods. Raw materials and finished goods are valued at the lower of cost or net realizable value, using the first-in, first-out (“FIFO”) valuation method. Work-in-process and finished goods includes the cost of materials, freight and duty, direct labor and overhead. The Company writes down inventory for estimated obsolescence equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. The company had a reserve for inventory approximating $ 187,000 88,000 Property and Equipment Property and equipment are recorded at cost. Repairs and maintenance expenditures, which do not extend the useful lives of the related assets, are expensed as incurred. Depreciation of machinery and equipment is based on the estimated useful lives of the assets. Schedule of estimated useful lives Machinery and equipment 5 to 7 years Leasehold improvements Lesser of term of lease or useful life Furniture and fixtures 5 to 7 years Business Acquisition Accounting The Company applies the acquisition method of accounting for those that meet the criteria of a business combination. The Company allocates the purchase price of its business acquisitions based on the fair value of identifiable tangible and intangible assets. The difference between the total cost of the acquisition and the sum of the fair values of acquired tangible and identifiable intangible assets less liabilities is recorded as goodwill. Transaction costs are expensed as incurred in general and administrative expenses. Goodwill and Intangible Assets The Company has recorded intangible assets, including goodwill, in connection with business combinations. Estimated useful lives of amortizable intangible assets are determined by management based on an assessment of the period over which the asset is expected to contribute to future cash flows. In accordance with U.S. GAAP for goodwill and other indefinite-lived intangibles, the Company tests these assets for impairment annually and whenever events or circumstances make it more likely than not that impairment may have occurred. For the purposes of that assessment, the Company has determined to assign assets acquired in business combinations to a single reporting unit including all goodwill and indefinite-lived intangible assets acquired in business combinations. Income Taxes The Company files income tax returns using the cash basis of accounting. Income taxes are accounted for under the asset and liability method. Current income taxes are based on the year's income taxable for federal and state tax reporting purposes. Deferred income tax assets and liabilities are computed annually for differences between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable income will be available to allow all or part of the asset to be recovered. Derivative Instruments The Company evaluates its warrants to determine if those contracts or embedded components of those contracts qualify as derivatives. The result of this accounting treatment is that the fair value of the embedded derivative is marked-to-market each balance sheet date and recorded as a liability. In the event that the fair value is recorded as a liability, the change in fair value is recorded in the statements of operations as other income or expense. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period. The Company has concluded that there are no such reclassifications required to be made as of and for the periods ended June 30, 2023 and December 31, 2022. The Company utilizes the Black-Scholes valuation model to value the derivative warrants as stipulated in the agreement for the warrant holders to receive cash based on that value. Fair Value of Financial Instruments The carrying amounts reported in the unaudited condensed consolidated balance sheets for loans payable approximate fair value because of the immediate or short-term maturity of the financial instruments. The Company's financial assets and liabilities are measured using inputs from the three levels of the fair value hierarchy. Loss Per Share Basic loss per share is computed by dividing net loss attributable to common shareholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) for the period. In periods of losses, diluted loss per share is computed on the same basis as basic loss per share as the inclusion of any other potential shares outstanding would be anti-dilutive. The following table sets forth the number of potential shares of common stock that have been excluded from diluted net loss per share because their effect was anti-dilutive: Schedule of Anti-dilutive Securities Excluded from Computation of Loss Per Share As of June 30, 2023 2022 Common stock options 254,256 163,856 Series B Preferred Stock 1,250,000 — Series C Preferred Stock 399,996 — Common stock warrants 308,484 38,484 Total 2,212,736 202,340 Stock-Based Compensation The Company accounts for its stock-based compensation awards in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 718 ("ASC"), Compensation-Stock Compensation ("ASC 718"). ASC 718 requires all stock-based payments to employees, including grants of employee stock options and restricted stock and modifications to existing stock options, to be recognized in the statements of operations based on their fair values over the requisite service period. Reverse Stock Split Applied UV, Inc. (the “Company”) filed a Certificate of Amendment to the Company’s Certificate of Incorporation with the Secretary of State of the State of Delaware (the “Certificate of Amendment”) to effect a 1-for-5 reverse stock split (the “reverse stock split”) of the shares of the Company’s common stock, par value $0.0001 per share (the “Common Stock”), on May 30, 2023. The Certificate of Amendment has no effect on the number of authorized shares of Common Stock or their par value. No fractional shares will be issued in connection with the reverse stock split and stockholders will receive cash in lieu of fractional shares. All historical share and per share amounts in these financial statements have been retroactively adjusted to reflect the reverse stock split. Research and Development The Company accounts for research and development costs in accordance with Accounting Standards Codification subtopic 730-10, Research and Development (“ASC 730-10”). Under ASC 730-10, all research and development costs must be charged to expense as incurred. Accordingly, research and development costs are expensed as incurred. Revenue Recognition The Company recognizes revenue when the performance obligations in the client contract has been achieved. A performance obligation is a contractual promise to transfer product to the customer. The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when or as, the customer receives the benefit of the performance obligation. Under ASC 606, revenue is recognized when a customer obtains control of goods in an amount that reflects the consideration the Company expects to receive in exchange for those goods. To achieve this core principle, the Company applies the following five steps: 1) Identify the contract with a customer. 2) Identify the performance obligations in the contract. 3) Determine the transaction price. 4) Allocate the transaction price to performance obligations in the contract. 5) Recognize revenue when or as the Company satisfies a performance obligation. MunnWorks projects, including those from the VisionMark acquisition, are completed within the Company’s facilities. For these projects, the company designs, manufactures and sells custom mirrors and furniture for the hospitality and retail industries through contractual agreements. These sales require the company to deliver the products within three to nine months from commencement of order acceptance. Revenue is recognized using the input method of accounting. Deferred revenue represents amounts billed in excess of revenues recognized. Revenues recognized in excess of amounts billed typically does not occur as the Company will not perform any work in excess of the amount the company bills to its customers. If work is performed in excess of amounts billed, the Company will record an unbilled receivable The company applied the five-step model to the sales of Puro's disinfection solution, LED's lighting products, Akida’s and KES’s Airocide™ and misting system products, and SciAir’s whole-room aerosol chamber and laboratory certified air disinfection machines. At contract inception and once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company sells Airocide™ air sterilization units, misting systems, and whole-room aerosol chamber and laboratory certified disinfection machines to both consumer and commercial customers. These products are sold both domestically and internationally. The cycle from contract inception to shipment of products is typically one day to three months. The Company’s contracts for both its consumer and commercial customers each contain a single performance obligation (delivery of Airocide™, KES, and SciAir products), as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. As a result, the entire transaction price is allocated to this single performance obligation. The Company recognizes revenues at a point in time when the customer obtains control of the Company’s product, which typically occurs upon shipment of the product by the Company or upon customer pick-up via third party common carrier. Revenue recognized over time and revenue recognized at a point in time for the three months ended: Schedule of revenue: Schedule of revenue June 30, 2023 2022 Recognized over time $ 3,198,458 $ 2,883,912 Recognized at a point in time 7,645,228 3,023,734 Total $ 10,843,686 $ 5,907,646 Revenue recognized over time and revenue recognized at a point in time for the six months ended: Schedule of revenue: June 30, 2023 2022 Recognized over time $ 8,484,901 $ 3,413,149 Recognized at a point in time 13,013,268 5,850,587 Total $ 21,498,169 $ 9,263,736 Deferred revenue was comprised of the following as of: June 30, December 31, 2023 2022 Recognized over time $ 2,275,791 $ 3,581,195 Recognized at a point in time 3,130,292 1,149,104 Total $ 5,406,083 $ 4,730,299 The Company recognized $ 545,107 3,247,141 Advertising Advertising costs consist primarily of online search advertising and placement, trade shows, advertising fees, and other promotional expenses. Advertising costs are expensed as incurred and are included in sales and marketing on the consolidated statements of operations. Advertising expense for the three months ended June 30, 2023 and 2022 was $ 144,100 348,377 295,718 546,372 Vendor deposits Vendor payments to third manufactures are capitalized until completion of the project and are recorded as vendor deposits. As of June 30, 2023 and December 31, 2022, the vendor deposit balance was $ 1,149,385 75,548 Patent Costs The Company capitalizes costs consisting principally of outside legal costs and filing fees related to obtaining and maintaining patents. The Company amortizes patent costs over the useful life of the patent which is typically 20 years, beginning with the date the patent is filed with the U.S. Patent and Trademark Office, or foreign equivalent. As of June 30, 2023 and December 31, 2022, capitalized patent costs net of accumulated amortization was $ 3,214,729 1,593,741 47,516 25,016 89,012 50,032 Recently adopted accounting standards From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that the Company adopts as of the specified effective date. The Company does not believe that the impact of recently issued standards that are not yet effective will have a material impact on the Company’s financial position or results of operations upon adoption. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The FASB subsequently issued amendments to ASU 2016-13, which have the same effective date and transition date of January 1, 2023. These standards replace the existing incurred loss impairment model with an expected credit loss model and requires a financial asset measure at amortized cost to be presented at the net amount expected to be collected. The Company determined that this change does not have a material impact to the financial statements or financial statement disclosures. Recently issued accounting pronouncements In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470 20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”) to simplify accounting for certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if converted method for all convertible instruments. The amendments in this update will be effective for the Company on January 1, 2024 and may be early adopted at the beginning of fiscal year 2023. The Company is currently assessing the impact, if any, that ASU 2020-06 would have on its financial position, results of operations or cash flows.

BUSINESS ACQUISITION

BUSINESS ACQUISITION	6 Months Ended
	Jun. 30, 2023
Business Combination and Asset Acquisition [Abstract]
BUSINESS ACQUISITION	NOTE 2 – BUSINESS ACQUISITION The Company accounted for the acquisitions as a business combinations using the purchase method of accounting as prescribed in Accounting Standards Codification 805, Business Combinations (“ASC 805”) and ASC 820 – Fair Value Measurements and Disclosures (“ASC 820”). In accordance with ASC 805 and ASC 820, the Company used its best estimates and assumptions to accurately assign fair value to the tangible assets acquired, identifiable intangible assets and liabilities assumed as of the acquisition dates. Goodwill as of the acquisition date is measured as the excess of purchase consideration over the fair value of tangible and identifiable intangible assets acquired and liabilities assumed. The results of operations of the acquired businesses since the date of acquisition are included in the consolidated financial statements of the Company for the three and six months ended June 30, 2023 and 2022. The total purchase consideration was allocated to the assets acquired and liabilities assumed at their estimated fair values as of the date of acquisition, as determined by management. The excess of the purchase price over the amounts allocated to assets acquired and liabilities assumed has been recorded as goodwill. The value of the goodwill from the acquisitions described below can be attributed to a number of business factors including, but not limited to, cost synergies expected to be realized and a trained technical workforce. In conjunction with acquisitions noted below, we used various valuation techniques to determine fair value of the assets acquired, with the primary techniques being discounted cash flow analysis, relief-from-royalty, a form of the multi-period excess earnings and the with-and-without valuation approaches, which use significant unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy. Inputs to these valuation approaches require significant judgment including: (i) forecasted sales, growth rates and customer attrition rates, (ii) forecasted operating margins, (iii) royalty rates and discount rates used to present value future cash flows, (iv) the amount of synergies expected from the acquisition, (v) the economic useful life of assets and (vi) the evaluation of historical tax positions. In certain acquisitions, historical data is limited, therefore, we base our estimates and assumptions on budgets, business plans, economic projections, anticipated future cash flows and marketplace data. In relation with the purchase by SteriLumen, Inc., of Old SAM Partners, LLC, on March 31, 2022, there was a settlement of a dispute that arose during the first quarter of 2022 between both parties regarding certain representations and warranties in the purchase agreement which resulted in a settlement and mutual release agreement where the seller agreed to relinquish any right, title, and interest in the previously issued 80,000 240,000 1,700,000 1,138,203 On March 25, 2022, the Company entered into an asset purchase agreement by and among the Company, Munnworks, LLC., a New York Limited Liability Company and wholly-owned subsidiary of the Company (the “Purchaser”) and VisionMark LLC, a New York limited liability company (the “Seller”), pursuant to which the Purchaser acquired substantially all of the assets of the Seller in exchange for the assumption of obligations of buyer under the sublease and sublease guarantee. The purchase price and purchase price allocation as of the acquisition completion date follows: Schedule of recognized identified assets acquired and liabilities assumed Purchase Price: Cash paid at closing $ 10 Due to landlord 755,906 Total Purchase Price, net of cash acquired 755,916 Assets Acquired: Accounts receivable, net 636,550 Inventory 176,583 Costs and estimated earnings in excess of billings 181,152 Machinery and equipment 1,100,000 Total Assets Acquired: 2,094,285 Liabilities Assumed: Billings in excess of costs and earnings on uncompleted contracts (1,388,838 ) Total Liabilities Assumed (1,388,838 ) Net Assets Acquired 705,447 Excess Purchase Price Goodwill $ 50,469 The excess purchase price has been recorded as goodwill in the amount of approximately $ 50,469 In connection with the VisionMark LLC acquisition, the Company is obligated to repay $ 31,057 38.7 37,823 49,610 78,620 53,646 As of June 30, 2023, the future maturity of the lease liability is as follows: Schedule of future maturity of the lease liability Years Ended December 31, 2023 (6 months) $ 186,346 2024 372,684 2025 93,174 Total 652,204 Less: Unamortized discount (137,465 ) Total amount due to landlord 514,739 Less: current portion of amount due to landlord, net of discount (189,182 ) Total long-term portion of amount due to landlord $ 325,557 On January 26, 2023, the Company entered into an asset purchase agreement by the Company (the "Buyer") and PURO Lighting, LLC, (the "Seller") a limited liability company under the laws of the State of Colorado, pursuant to which the Purchaser acquired substantially all of the assets of the Seller in exchange for cash, common stock and preferred stock of the buyer. The Company paid or issued, as applicable (i) 499,444 shares of the Company’s common stock (ii) 251,108 shares of the Company’s 5% Series C Cumulative Perpetual Preferred Stock, par value $0.0001 per share (“Series C Preferred Stock”) (iii) cash of $3,828,967 and (iv) 1,250,000 shares of the Company’s 2% Series B Cumulative Perpetual Preferred Stock (the “Series B Preferred Stock”). In addition, the seller has the right to receive earnout payments subject to certain conditions, including achieving certain revenue targets and gross profit margins and payable as set forth in the PURO Merger Agreement. The purchase price and purchase price allocation as of the acquisition completion date follows: Schedule of recognized identified assets acquired and liabilities assumed Purchase Price: Cash paid at closing, net of cash acquired $ 3,828,967 Common stock 2,597,111 Series B Preferred Stock 3,712,500 Series C Preferred Stock 667,947 Contingent consideration-Make Whole*** 2,397,334 Contingent consideration-Earnout 4,046,232 Total Purchase Price, net of cash acquired 17,250,091 Assets Acquired: Accounts receivable, net 274,574 Inventory 2,085,912 Other current assets 415,188 Fixed assets, net 5,075 Tradenames/trademarks 1,228,000 Technology/know-how/trade secrets 1,842,000 Patented technology 1,710,000 Customer relationships 4,705,000 Total Assets Acquired: 12,265,749 Liabilities Assumed: Accounts payable and accrued expenses (936,448 ) Deferred revenue (18,482 ) Total Liabilities Assumed (954,930 ) Net Assets Acquired 11,310,819 Excess Purchase Price "Goodwill" $ 5,939,272 ***Represents the difference in fair value of common stock on the date of acquisition versus agreed upon $2 per share ("Make Whole"). In the event any PURO Equity holder sells any shares of Common Stock obtained pursuant to the terms of the Agreement through a registered broker/dealer on or after the first anniversary of the Closing Date for a price per share of the Common Stock less than $2.00 (the “Sale Price”), Parent will pay to such PURO Equity holder within ten (10) Business Days following the consummation of such sale to an account designated in writing by such PURO Equity holder an amount equal to (a) (i) $2.00 less (ii) the Sale Price, multiplied by (b) the number of shares of Common Stock sold in such sale (the “Make Whole Amount”). The Make Whole Amount payment shall be 50% in cash and 50% in shares of Common Stock (with the number of shares of Common Stock to be issued determined based on a price per share equal to 90% of the Sale Price). As a result of the make-whole provision, the liability was reduced to $2,677,020 as of June 30, 2023 with the change in fair market value of $119,866 being recorded to other income within the consolidated statements of operations. The excess purchase price has been recorded as goodwill in the amount of approximately $ 5,939,272 On January 26, 2023, the Company entered into an asset purchase agreement by the Company (the "Buyer") and LED Supply Co, LLC, (the “Seller”), a limited liability company under the laws of the State of Colorado, pursuant to which the Purchaser acquired substantially all of the assets of the Seller in exchange for cash, common stock and preferred stocks of the buyer. The Company paid or issued, as applicable (i) 275,555 shares of the Company’s common stock; (ii) 148,888 shares of Series C Preferred Stock; and (iii) cash of $286,742. In addition, the seller has the right to receive earnout payments subject to certain conditions, including achieving certain revenue targets and gross profit margins and payable as set forth in the LED Merger Agreement. The purchase price and purchase price allocation as of the acquisition completion date follows: Schedule of recognized identified assets acquired and liabilities assumed Purchase Price: Cash paid at closing $ 286,742 Common stock 1,432,889 Series C Preferred Stock 396,042 Contingent considerations-Common Stock True Up*** 1,322,665 Contingent considerations-Earnout 10,609,442 Total Purchase Price, net of cash acquired 14,047,780 Assets Acquired: Accounts receivable, net 1,461,461 Inventory 1,925,285 Other current assets 232,095 Vendor deposits 375,672 Costs and estimated earnings in excess of billings 533,638 Fixed assets, net 106,330 Trademarks/tradenames 1,806,000 Technology/know-how/trade secrets 1,169,193 Vendor relationships 1,416,000 Rebate program 1,894,703 Customer relationships 2,088,000 Other non-current assets 24,819 Total Assets Acquired: 13,033,196 Liabilities Assumed: Accounts payable (2,854,509 ) Deferred revenue (2,279,616 ) Notes payable (1,973,946 ) Financing lease liability (25,231 ) Total Liabilities Assumed (7,133,302 ) Net Assets Acquired 5,899,894 Excess Purchase Price "Goodwill" $ 8,147,886 ***The amount represents the difference in fair value of common stock on the date of acquisition versus the agreed upon $2 per share ("Make Whole"). In the event any LED Equityholder sells any shares of Common Stock obtained pursuant to the terms of the Agreement through a registered broker/dealer on or after the first anniversary of the Closing Date for a price per share of the Common Stock less than $2.00 (the “Sale Price”), Parent will pay to such LED Equityholder within ten (10) Business Days following the consummation of such sale to an account designated in writing by such LED Equityholder an amount equal to (a) (i) $2.00 less (ii) the Sale Price, multiplied by (b) the number of shares of Common Stock sold in such sale (the “Make Whole Amount”). The Make Whole Amount payment shall be 50% in cash and 50% in shares of Common Stock (with the number of shares of Common Stock to be issued determined based on a price per share equal to 90% of the Sale Price). As a result of the make-whole provision, the liability was decreased to $1,476,977 as of June 30, 2023 with the change in fair market value of $66,133 being recorded to other income within the consolidated statements of operations. The excess purchase price has been recorded as goodwill in the amount of approximately $ 8,147,886

INVENTORY

INVENTORY	6 Months Ended
	Jun. 30, 2023
Inventory Disclosure [Abstract]
INVENTORY	NOTE 3 – INVENTORY Inventory consists of the following as of: Schedule of Inventory June 30, December 31, 2023 2022 Raw materials $ 3,419,017 $ 3,485,040 Finished goods 4,975,717 2,110,838 Inventory at cost 8,394,734 5,595,878 Less: Reserve (186,839 ) (87,792 ) Inventory, net $ 8,207,895 $ 5,508,086

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	6 Months Ended
	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 4 – PROPERTY AND EQUIPMENT Property and equipment (including machinery and equipment under capital leases) are summarized by major classifications as follows: Schedule of property and equipment June 30, December 31, 2023 2022 Machinery and Equipment $ 1,319,975 $ 1,266,189 Leasehold improvements 130,058 67,549 Furniture and Fixtures 274,326 203,256 Property and equipment at cost 1,724,359 1,536,994 Less: Accumulated Depreciation (557,852 ) (403,526 ) Net Property and Equipment $ 1,166,507 $ 1,133,468 Depreciation expense, including amortization of assets under Financing leases, for the three months ended June 30, 2023 and 2022 was $ 77,293 68,765 Depreciation expense, including amortization of assets under Financing leases, for the six months ended June 30, 2023 and 2022 was $ 154,326 94,527

INTANGIBLE ASSETS

INTANGIBLE ASSETS	6 Months Ended
	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	NOTE 5 – INTANGIBLE ASSETS Intangible assets as of June 30, 2023 and December 31, 2022 consist of the following: Schedule of Intangible Assets June 30, December 31, 2023 2022 Intangible assets subject to amortization Customer Relationships $ 8,448,598 $ 1,655,598 Tradenames/trademarks 5,242,530 2,208,530 Patented technology 3,474,158 1,730,771 Technology/know-how/trade secrets 11,369,883 8,341,000 Vendor relationships 1,416,000 — Rebate program 1,894,703 — 31,845,872 13,935,899 Less: Accumulated Amortization (3,845,271 ) (2,581,469 ) $ 28,000,601 $ 11,354,430 During the three months ended June 30, 2023 and 2022, the Company recorded total amortization expense related to intangible assets of $ 680,328 441,985 1,263,802 883,969 Future amortization of intangible assets are as follows: Future amortization of intangible assets For the year ending December 31, 2023 (6 months) 1,430,196 2024 3,050,982 2025 3,050,982 2026 3,033,272 Thereafter 17,435,169 Total $ 28,000,601

FINANCING LEASE OBLIGATION

FINANCING LEASE OBLIGATION	6 Months Ended
	Jun. 30, 2023
Financing Lease Obligation
FINANCING LEASE OBLIGATION	NOTE 6 – FINANCING LEASE OBLIGATION The Company's future minimum principal and interest payments under a financing lease for machinery and equipment are as follows: Schedule of future minimum principal and interest payments under capital lease arrangements 2023 (6 months) $ 32,811 2024 54,901 2025 54,901 2026 49,260 2027 36,109 Total lease payments 227,982 Less: Amount representing interest (30,990 ) Present value of future minimum lease payments 196,992 Less: current portion (41,632 ) Financing lease obligations, net of current $ 155,360

NOTES PAYABLE

NOTES PAYABLE	6 Months Ended
	Jun. 30, 2023
Notes Payable
NOTES PAYABLE	NOTE 7 – NOTES PAYABLE As of June 30, 2023, the Company had the following notes payable outstanding: Schedule of notes payable June 30, December 31, 2023 2022 Loan Agreement $ 157,500 $ 157,500 Streeterville Note #1 2,655,000 2,807,500 Streeterville Note #2 2,842,500 — Directors and Officers Liability Insurance Agreement — 166,262 Pinnacle Note 5,059,841 — Total 10,714,841 3,131,262 Less: Unamortized debt discount (391,925 ) 267,433 Total notes payable 10,322,916 2,863,829 Notes payable, current (4,999,257 ) (2,098,685 ) Notes payable, non current $ 5,323,659 $ 765,144 Minimum obligations under these loan agreement are as follows: Schedule of minimum obligations under loan agreement 2023 (six months) $ 2,672,964 2024 $ 8,041,877 Total $ 10,714,841 Loan Agreement The Company entered into a loan agreement in April of 2019 where the company was required to pay $ 157,500 30,000 7,500 157,500 Streeterville Note #1 On October 7, 2022, the Company entered into a Security Purchase Agreement with Streeterville Capital, LLC whereby the Company issued an 8 2,807,500 2,462,500 345,000 April 7, 2024 18 On May 2023, the Company paid an amendment fee of $ 65,000 217,500 110,131 The lender has the right at any time 6 months after the effective date, at its election, to redeem all or part of the maximum redemption amount as set forth in the promissory note. Payments of each redemption amount may be made (a) in cash, or (b) in common stock per the following formula: the portion of the applicable Redemption amount being paid in common stock divided by the common stock redemption price, or (c) by any combination of the foregoing. Whereas common stock redemption price means 87.5 The principal amount of the Note may be prepaid in full, or any portion of the outstanding balance earlier than it is due; provided that in the event borrower elects to prepay all or any portion of the outstanding balance it shall pay to lender 120% of the portion of the outstanding balance borrower elects to prepay. The prepayment premium will not apply if borrower repays the Note in full on the anniversary date, which is one year from the purchase price date. If prior to the anniversary date all redemption amounts are paid as common stock redemptions, then each time after the anniversary date that borrower makes a common stock redemption, $ 8,333 50,000 Debt discount related to the note amounts to $ 345,000 17.31 77,514 164,627 156,269 65,000 9,355 Interest expense recorded in the accompanying Statements of Operations by the Company was $ 54,707 110,847 Streeterville Note #2 The features and conditions relating to this note is similar with the Streeterville note issued on October 7, 2022. Debt discount recognized during 2023 related to the note amounts to $ 344,500 22.23 . 83,043 139,703 235,656 267,079 35,000 6,825 Interest expense recorded in the accompanying Statements of Operations by the Company was $ 57,248 97,801 Directors and Officers Liability Insurance Agreement On August 28, 2022, the Company entered into a one-year Directors and Officers Liability Insurance agreement for $ 318,833 41,730 5.05 27,710 0 Pinnacle Note In December 2022, the Company entered into a Loan and Security Agreement, or (the “Loan Agreement”), with Pinnacle Bank, which provides for a $ 5,000,000 The facility was later amended and increased to $6,000,000 on May 23, 2023. The loan is subject to a maximum advance amount of up to 85% of net face amount of eligible accounts, plus the lessor a) of the sum of 20% of the aggregate eligible inventory value of raw materials and 35% of the aggregate eligible inventory value of finished goods, b) $1 million, c) 80% of the net orderly liquidation value of raw materials and finished goods, or d) 100% of the aggregate outstanding principal amount of advances. In no event shall the aggregate amount of the outstanding advances under the Loan Facility be greater than $6 million. The loan matures on December 9, 2024. The loan accrues interest at a 1.50% margin above the greater of the prime rate or 4.00%. The interest margin is increased to 2.00% in respect to the advances against eligible inventory. If the Company fails to meet any covenant, term or provision of the Loan Agreement, then interest shall accrue at the rate of 6.0% above the interest rate. If after the occurrence of an event of default and the loan is not paid in full by the maturity date, the loan shall bear interest at the rate of 18.0% above the interest rate. Obligations under the Loan Agreement are secured by all of the Company's assets. On the effective date the Company paid a loan fee of 2 1.5 The Loan Agreement contains customary representations and warranties and customary affirmative and negative covenants applicable to the Company and the Subsidiaries, including, without limitation, restrictions on liens, indebtedness, fundamental changes, capital expenditures, consignments of inventory and distributions. The Loan Agreement contains customary events of default, including, without limitation, payment defaults, covenant defaults, breaches of certain representations and warranties, certain events of bankruptcy and insolvency, certain events under ERISA and judgments. If an event of default occurs and is not cured within any applicable grace period or is not waived, the Lender is entitled to take various actions, including, without limitation, the acceleration of amounts due thereunder and termination of commitments under the Loan Facility. There was a $ 5,059,841 Chase Credit Facility In connection with the acquisition of LED Supply Co, LLC, the Company assumed $ 1,728,474 71,724 71,724 1,800,199

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2023
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	NOTE 8 – FAIR VALUE MEASUREMENTS Accounting guidance on fair value measurements requires that financial assets and liabilities be classified and disclosed in one of the following categories of the fair value hierarchy: Level 1 Level 2 Leve We did not have any transfers between levels during the periods presented. The following table presents assets and liabilities that were measured at fair value in the Consolidated Balance Sheets on a recurring basis as of June 30, 2023 and December 31, 2022: Fair value, assets measured on recurring basis Carrying Amount Fair Value Level 1 Level 2 Level 3 As of June 30, 2023 Assets Money market funds $ 26,981 $ 26,981 $ 26,981 $ — $ — Total assets $ 26,981 $ 26,981 $ 26,981 $ — $ — Liabilities Contingent consideration $ 18,809,672 $ 18,809,672 $ 4,153,999 $ — $ 14,655,673 Warrant liability 9,069 9,069 — — 9,069 Total liabilities $ 18,818,741 $ 18,818,741 $ 4,153,999 $ — $ 14,664,742 As of December 31, 2022 Assets Money market funds $ 26,828 $ 26,828 $ 26,828 $ — $ — Total assets $ 26,828 $ 26,828 $ 26,828 $ — $ — Liabilities Warrant liability 9,987 9,987 — — 9,987 Total liabilities $ 9,987 $ 9,987 $ — $ — $ 9,987 The carrying amounts of accounts receivable, accounts payable and short-term debt approximated fair values as of June 30, 2023 and December 31, 2022 because of the relatively short maturity of these instruments. There were no other level 3 or level 1 assets or liabilities as of June 30, 2023 Money market funds – Cash equivalents of $ 26,981 26,828 Contingent consideration – The fair value of the contingent consideration related to the common stock true-up is derived through the quoted market price of our stock, which represents a Level 1 measurement within the fair value hierarchy. As a result of the merger transaction, the company assumed an Earn-out liability, which is remeasured each reporting period. Given the unobservable nature of the inputs, the fair value measurement of the deferred earn-out is deemed to use Level 3 inputs. The Earn-out liability was accounted for as a liability as of the date of the merger transaction and will be remeasured to fair value until the Earnout Triggering Events are met. Warrant liability – The fair value of the warrant liability is derived through the Black Scholes method and is based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy. Other Fair Value Measurements In addition to assets and liabilities that are recorded at fair value on a recurring basis, GAAP requires that, under certain circumstances, we also record assets and liabilities at fair value on a nonrecurring basis. In connection with our acquisitions we used various valuation techniques to determine fair value, with the primary techniques being discounted cash flow analysis and the relief-from-royalty, a form of the multi-period excess earnings, which use significant unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2023
Equity [Abstract]
STOCKHOLDERS' EQUITY	NOTE 9 – STOCKHOLDERS' EQUITY At the Market Sales Agreement On July 1, 2022, the Company filed a $ 50,000,000 9,000,000 160,962 964,083 28,922 363,642 2,342,084 70,262 5,693,833 Reverse Stock Split Applied UV, Inc. (the “Company”) filed a Certificate of Amendment to the Company’s Certificate of Incorporation with the Secretary of State of the State of Delaware (the “Certificate of Amendment”) to effect a 1-for-5 reverse stock split (the “reverse stock split”) of the shares of the Company’s common stock, par value $0.0001 per share (the “Common Stock”), on May 30, 2023. The Certificate of Amendment has no effect on the number of authorized shares of Common Stock or their par value. No fractional shares will be issued in connection with the reverse stock split and stockholders will receive cash in lieu of fractional shares. The Common Stock began trading on a reverse stock split-adjusted basis on the Nasdaq Capital Market when the market opened on May 31, 2023. The trading symbol for the Common Stock will remain “AUVI.” The Common Stock was assigned a new CUSIP number (03828V402) following the reverse stock split.The Company has adjusted the number of shares available for future grant under its equity incentive plan as well as the number of outstanding awards, the exercise price per share of outstanding stock options and other terms of outstanding awards issued to reflect the effects of the reverse stock split All historical share and per share amounts in these financial statements have been retroactively adjusted to reflect the reverse stock split. June Public Offering On June 16, 2023, the Company entered into an underwriting agreement, pursuant to which the Company agreed to sell to the Underwriters, an aggregate of (i) 4,730,000 1.00 270,000 1 750,000 200,000 5,200,000 816,000 0.001 Amendment of the Certificate of Designation On March 9, 2022, the Board of Directors approved a resolution that authorized the senior management of the Company to purchase up to and limited to one million shares of common stock between March 10, 2022 and September 30, 2022. The Company has a total 22,697 Pursuant to the Company’s amended and restated certificate of incorporation, as amended, the Company is authorized to designate and issue up to 20,000,000 0.0001 10,000 1,250,000 18,740,000 1,250,000 2,500,000 10,000 1,250,000 14,990,000 Preferred Stock, Series A Cumulative Perpetual Holders are entitled to receive, cumulative cash dividends at the annual rate of 10.5% on $25.00 liquidation preference per share of the Series A Perpetual Preferred Stock. Dividends accrue and are payable in arrears beginning August 15, 2021, regardless of whether declared or there are sufficient earnings or funds available for payment. Sufficient net proceeds from the offering must be set aside to pay dividends for the first twelve months from issuance. The Company has an optional redemption right beginning July 16, 2022, which redemption price declines annually. The initial redemption price after year 1 is $30 and decreases annually over 5 years to $25 per share. The Company also has a special optional redemption right upon the occurrence of a Delisting Event or Change of Control, as defined, at $25 per share plus accrued and unpaid dividends. The holders have no voting rights, except for voting on certain corporate decisions, or upon default in payment of dividends for any twelve periods, in which case the holders would have voting rights to elect two additional directors to serve on the Board of Directors. Such shares are not convertible unless and until the occurrence of a Delisting Event or Change of Control and when the Company has not exercised its special optional redemption right. The conversion price would be the lesser of the amount converted based on the $25.00 liquidation preference plus accrued dividends divided by the common stock price of the Delisting Event or Change of Control (as defined) or $5.353319 (Share Cap). Effectively, the Share Cap limits the common stock price to no lower than $4.67. Preferred Stock, Series B Cumulative Perpetual On January 25, 2023, the Company filed the Certificate of Designations, Rights, and Preferences for the Series B Preferred Stock with the Secretary of State of the State of Delaware, which became effective upon acceptance for record. On January 26, 2023, the Company filed the Amendment to the Series B Certificate of Designation (together with the Certificate of Designations, Rights, and Preferences for the Series B Preferred Stock, the “Series B Certificate of Designation”), which became effective upon acceptance for record. The Series B Certificate of Designation classified a total of 1,250,000 0.0001 2 6 0.12 2.00 6.00 of Series B Preferred Stock neither have voting nor preemptive rights. Each share of Series B Preferred Stock is convertible, at any time and from time to time from and after the original issue date, at the option of the holder, into one share of Common Stock. The Series B Preferred Stock has no stated maturity and will not be subject to any sinking fund for the payment of the redemption price or mandatory redemption. The Series B Preferred Stock has been classified as temporary equity, outside of permanent equity, as they are redeemable at the option of the holder. Preferred Stock, Series C Cumulative Perpetual On January 25, 2023, the Company filed the Certificate of Designations, Rights, and Preferences for the Series C Preferred Stock with the Secretary of State of the State of Delaware, which became effective upon acceptance for record. On January 26, 2023, the Company filed the Amendment to the Series C Certificate of Designation (together with the Certificate of Designations, Rights, and Preferences for the Series C Preferred Stock, the “Series C Certificate of Designation”), which became effective upon acceptance for record. The Series C Certificate of Designation classified a total of 2,500,000 0.0001 5 5.00 0.25 5.00 Suspension of Preferred Dividends On June 19, 2023, the Board of Directors of Applied UV, Inc (“Applied UV” or the “Company”) temporarily suspended the Company’s: (i) monthly $0.21875 dividend on its 10.5% Series A Cumulative Perpetual Preferred Stock (“Series A Preferred Stock”), commencing with the July dividend, that would have been paid on July 17, 2023; (ii) quarterly $0.03 dividend on its 2% Series B Cumulative Perpetual Preferred Stock (“Series B Preferred Stock”), commencing with the dividend for the quarter ending June 30, 2023, that would have been paid on July 17, 2023; and (iii) quarterly $0.0625 dividend on its 5% Series C Cumulative Perpetual Preferred Stock (“Series C Preferred Stock”), commencing with the dividend for the quarter ending June 30, 2023, that that would have been paid on July 17, 2023. The dividends on each Series cited above have been suspended by the Board for the next eleven (11) months, or until the month of May 2024 for the Series A Preferred Stock or the quarter ending March 31, 2024 for the Series B and C Preferred Stock but may be re-instated at any time in the Board’s discretion (the “Suspension Period”). The suspension of these dividends will defer approximately $1.5 million in cash dividend payments until after the Suspension Period. Notwithstanding anything contained herein to the contrary, dividends on the Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock shall accrue whether or not the Company has earnings, whether or not there are funds legally available for the payment of such dividends, and whether or not such dividends are authorized or declared. No interest is payable in respect of any dividend payment or payments on the Series A, B or C Preferred Stock which may be in arrears. The Company previously paid a monthly cash dividend of $0.21875 per share on the Series A Preferred Stock having a record date of June 2, 2023, a quarterly cash dividend of $0.03 per share on the Series B Preferred Stock having a record date of March 31, 2023, and a quarterly cash dividend of $0.0625 on the Series C Preferred Stock having a record date of March 31, 2023. A summary of the Company’s option activity and related information follows: Schedule of the Company’s option activity Number of Weighted-Average Exercise Price Weighted-Average Grant Date Fair Value Weighted-Average Remaining Contractual Life (in years Aggregate intrinsic value Balances, January 1, 2022 128,863 $ 35.55 $ 25.15 8.47 $ — Options granted outside of the plan 127,800 8.30 5.30 10.00 — Options forfeited (56,657 ) 35.10 — — Options exercised — — — — Balances, December 31, 2022 200,006 $ 18.05 $ — 9.03 $ — Options granted outside of the plan 96,000 10.00 4.37 10.0 — Options forfeited (41,750 ) 9.02 — — Options exercised — — — — Balances, June 30, 2023 254,256 $ 16.50 $ — 8.90 $ — Vested and Exercisable 79,112 $ 26.89 $ — Share-based compensation expense for options totaling $ 161,465 108,178 Share-based compensation expense for options totaling $ 322,063 330,240 The valuation methodology used to determine the fair value of the options issued during the year was the Black-Scholes option-pricing model. The Black-Scholes model requires the use of a number of assumptions including volatility of the stock price, the average risk-free interest rate, and the weighted average expected life of the options. The risk-free interest rate assumption is based upon observed interest rates on zero coupon U.S. Treasury bonds whose maturity period is appropriate for the term of the options. Estimated volatility is a measure of the amount by which the Company’s stock price is expected to fluctuate each year during the expected life of the award. The Company’s calculation of estimated volatility is based on historical stock prices of peer entities over a period equal to the expected life of the awards. The Company uses the historical volatility of peer entities due to the lack of sufficient historical data of its stock price. As of June 30, 2023, there was $ 1,140,186 The weighted average fair value of options granted, and the assumptions used in the Black-Scholes model during the six months ended June 30, 2023 and 2022 are set forth in the table below. Schedule of share-based payment award, stock options, valuation assumptions 2023 2022 Risk-free interest rate 3.53 3.60 1.26 2.82 Volatility 90.27 91.01 78.95 81.22 Expected life (years) 5.83 6.08 5.75 6.08 Dividend yield 0.00 % 0.00 % Common Stock Warrants A summary of the Company’s warrant activity and related information follows: Schedule of the Company's warrant activity Number of Warrants Weighted-Average Exercise Price Balances, January 1, 2022 38,484 $ 29.20 Granted — — Exercised — — Balances, March 31, 2022 38,484 $ 29.20 Granted — — Exercised — — Balances, June 30, 2022 38,484 $ 29.20 Balances, January 1, 2023 38,484 $ 29.20 Granted — — Exercised — — Balances, March 31, 2023 38,484 $ 29.20 Pre-funded warrants 270,000 $ 1.00 Exercised — — Balances, June 30, 2023 308,484 $ 4.52 At June 30, 2023 Vested and Exercisable 308,484 $ 4.52 In relation to the common stock offering that was closed last December 28, 2021, On January 5, 2022, the underwriters fully exercised their over-allotment option to purchase an additional 80,000 15.00 1,200,000 1,092,000 108,000 Restricted Stock Awards The Company records compensation expense for restricted stock awards based on the quoted market price of our stock at the grant date and the expense is amortized over the vesting period. These restricted stock awards are subject to time-based vesting conditions based on the continued service of the restricted stock award holder. The following table presents the restricted stock units activity from January 1, 2022 through June 30, 2023 Schedule of unvested restricted stock units activity Number of Weighted-Average Fair Market Value Unvested shares at January 1, 2022 58,500 $ 23.55 Granted and unvested 41,500 10.50 Vested (20,193 ) 19.40 Forfeited/Cancelled (62,307 ) $ 22.25 Unvested shares at December 31, 2022 17,500 $ 11.90 Granted and unvested 11,000 5.05 Vested (6,833 ) 14.15 Forfeited/Cancelled (3,000 ) 5.80 Unvested shares, March 31, 2023 18,667 $ 6.80 Vested (833 ) $ 13.50 Unvested shares, June 30, 2023 17,834 $ 6.85 Vested as of June 30, 2023 69,000 $ 22.85 Upon vesting, the restricted stock units are converted to common shares. Based on the terms of the restricted share and restricted stock unit grants, all forfeited shares revert back to the Company. In connection with the grant of restricted shares, the Company recognized $ 31,323 4,271 In connection with the grant of restricted shares, the Company recognized $ 58,446 70,209

LEASING ARRANGEMENTS

LEASING ARRANGEMENTS	6 Months Ended
	Jun. 30, 2023
Leasing Arrangements
LEASING ARRANGEMENTS	NOTE 10 - LEASING ARRANGEMENTS The Company determines whether an arrangement qualifies as a lease under ASC 842 at inception. The Company has operating leases for office space and office equipment. The Company’s leases have remaining lease terms of one year to seven years, some of which include options to extend the lease term for up to five years. The Company considered these options to extend in determining the lease term used to establish the Company’s right-of use assets and lease liabilities once reasonably certain of exercise. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and operating lease liabilities are recognized at the lease commencement date based on the present value of the future lease payments over the lease term. The operating lease ROU asset also includes any lease payments made in advance of lease commencement and excludes lease incentives. The lease terms used in the calculations of the operating ROU assets and operating lease liabilities include options to extend or terminate the lease when the Company is reasonably certain that it will exercise those options. Lease expense for lease payments is recognized on a straight-line basis over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate of 7.6 Munnworks, LLC entered into a lease agreement in Mount Vernon, New York for a term that commenced on April 1, 2019 and will expire on the 31st day of March 2024 at a monthly rate of $13,400. In March of 2021, the Company obtained additional lease space and the agreement was amended to increase rent expense to $15,000 per month. On July 1, 2021, the Company again obtained additional lease space and rent expense was increased to $27,500 per month through July 1, 2024 and $29,150 per month from July 1, 2024 through July 1, 2026. On September 28, 2021, the Company entered into a lease agreement in Kennesaw, Georgia for office and production space for a term that commenced on September 29, 2021 and will expire on October 1, 2024, with a rate ranging from $14,729 to $15,626 per month. On April 1, 2022, the Company entered into a lease agreement in Brooklyn, New York for office and production space that commenced on April 1, 2022 and will expire on June 1, 2023, with a rate ranging from $94,529 to $97,365 per month. On December 31, 2022, the Company exercised its option to renew the first renewal term, commencing on July 1, 2023 and ending on June 30, 2025. As a result of the extension of the lease, the Company recorded an additional $2,146,785 of ROU asset and liability on the balance sheet on December 31, 2022. On January 26, 2023, the Company entered into a lease agreement in Lakewood, Colorado for office and production space that commenced on January 27, 2023 and will expire on January 27, 2026 17,000 18,387 Rent expense for the three months ended June 30, 2023 and 2022 was $ 517,071 427,222 937,178 529,021 Schedule maturities of operating lease liabilities outstanding as of June 30, 2023 are as follows: Schedule of maturities of operating lease liabilities 2023 (6 months) $ 1,012,105 2024 1,914,174 2025 1,190,213 2026 174,900 Total lease payments 4,291,392 Less: Imputed Interest $ (412,106 ) Present value of future minimum lease payments $ 3,879,286 Consistent with ASC 842-20-50-4, the Company calculated its total lease cost based solely on its monthly rent obligation. The Company had no cash flows arising from its lease, no finance lease cost, short term lease cost, or variable lease costs. The Company’s lease does not produce any sublease income, or any net gain or loss recognized from sale and leaseback transactions. As a result, the Company did not need to segregate amounts between finance and operating leases for cash paid for amounts included in the measurement of lease liabilities, segregated between operating and financing cash flows; supplemental non-cash information on lease liabilities arising from obtaining right-of-use assets; weighted-average calculations for the remaining lease term; or the weighted-average discount rate.

SEGMENT REPORTING

SEGMENT REPORTING	6 Months Ended
	Jun. 30, 2023
Segment Reporting [Abstract]
SEGMENT REPORTING	NOTE 11 - SEGMENT REPORTING FASB Codification Topic 280, Segment Reporting, establishes standards for reporting financial and descriptive information about an enterprise’s reportable segments. The Company has two reportable segments: the design, manufacture, assembly and distribution of disinfecting systems for use in healthcare, hospitality, and commercial municipal and residential markets (disinfectant segment) and the manufacture of fine mirrors specifically for the hospitality industry (hospitality segment). The segments are determined based on several factors, including the nature of products and services, the nature of production processes, customer base, delivery channels and similar economic characteristics. An operating segment’s performance is evaluated based on its pre-tax operating contribution, or segment income. Segment income is defined as net sales less cost of sales, segment selling, general and administrative expenses, research and development costs and stock-based compensation. It does not include other charges (income), net and interest and other, net. Schedule of segment reporting Hospitality Disinfectant/ Corporate Total Balance sheet at June 30, 2023 Assets $ 11,009,842 $ 58,173,405 $ 3,788,809 $ 72,972,056 Liabilities $ 9,312,841 $ 29,166,709 $ 9,521,558 $ 48,001,108 Balance sheet at December 31, 2022 Assets $ 9,638,828 $ 19,831,097 $ 3,257,502 $ 32,727,427 Liabilities $ 10,666,643 $ 1,545,217 $ 3,281,672 $ 15,493,532 Hospitality Disinfectant/ Corporate Total Income Statement for the three months ended June 30, 2023: Net Sales $ 5,147,682 $ 5,696,004 $ — $ 10,843,686 Cost of Goods Sold $ 4,134,884 $ 4,299,108 $ — $ 8,433,992 Research and development $ — $ 180,293 $ — $ 180,293 Stock based compensation $ 57,820 $ 34,188 $ 102,672 $ 194,680 Selling, General and Administrative $ 1,206,113 $ 2,988,000 $ 533,326 $ 4,727,439 Income Statement for the three months ended June 30, 2022: Net Sales $ 4,169,112 $ 1,738,534 $ — $ 5,907,646 Cost of Goods Sold $ 3,695,267 $ 908,587 $ — $ 4,603,854 Research and development $ — $ 82,049 $ — $ 82,049 Stock based compensation $ 30,149 $ 37,800 $ 44,502 $ 112,451 Selling, General and Administrative $ 1,195,460 $ 2,033,074 $ 690,230 $ 3,918,764 Income Statement for the six months ended June 30, 2023: Net Sales $ 11,229,055 $ 10,269,114 $ — $ 21,498,169 Cost of Goods Sold $ 9,441,070 $ 7,725,019 $ — $ 17,166,089 Research and development $ — $ 369,503 $ — $ 369,503 Stock based compensation $ 114,674 $ 70,364 $ 199,771 $ 384,809 Selling, General and Administrative $ 2,239,702 $ 5,871,973 $ 1,690,014 $ 9,801,689 Income Statement for the six months ended June 30, 2022: Net Sales $ 5,578,362 $ 3,685,374 $ — $ 9,263,736 Cost of Goods Sold $ 4,853,911 $ 1,956,934 $ — $ 6,810,845 Research and development $ — $ 141,363 $ — $ 141,363 Stock based compensation $ 116,160 $ 60,086 $ 224,204 $ 400,450 Selling, General and Administrative $ 1,854,548 $ 3,818,284 $ 1,059,159 $ 6,731,991 Loss on impairment of goodwill $ — $ 1,138,203 $ — $ 1,138,203

PROFORMA FINANCIAL STATEMENTS (

PROFORMA FINANCIAL STATEMENTS (UNAUDITED)	6 Months Ended
	Jun. 30, 2023
Proforma Financial Statements
PROFORMA FINANCIAL STATEMENTS (UNAUDITED)	NOTE 12 – PROFORMA FINANCIAL STATEMENTS (UNAUDITED) Unaudited Supplemental Pro Forma Data Unaudited pro forma results of operations for the three and six months ended June 30, 2023 and 2022 as though the company acquired PURO, and LED (the “Acquired Companies”) on January 1, 2022 is set forth below. Schedule of business acquisition, pro forma information For the Three Months Ended For the Six Months Ended June 30, 2023 2022 2023 2022 Net Sales $ 10,843,686 $ 9,207,473 $ 22,017,102 $ 18,622,909 Net Loss $ (2,991,224 ) $ (2,845,863 ) $ (7,981,747 ) $ (5,623,491 ) Net Loss attributable to common stockholders: Dividends to preferred shareholders (407,231 ) (362,250 ) (769,481 ) (724,500 ) Net Loss attributable to common stockholders (3,398,455 ) (3,208,113 ) (8,751,228 ) (6,347,991 ) Basic and Diluted Loss Per Common Share $ ( 0.77 ) $ ( 0.79 ) $ ( 2.16 ) $ ( 1.54 ) Weighted Average Shares Outstanding - 4,434,036 4,083,076 4,060,537 4,109,956

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Nature of Business	Nature of Business Applied UV, Inc. (the "Parent") was formed and incorporated in the State of Delaware for the intended purpose of holding the equity of SteriLumen, Inc. (“SteriLumen”), MunnWorks, LLC (“MunnWorks” and together with SteriLumen, the “Subsidiaries”) and other companies acquired or created by the Parent in the future. The Parent acquired the Subsidiaries pursuant to three share exchanges whereby the equity holders of the Subsidiaries exchanged all of their equity interests in the Subsidiaries for shares of voting stock of the Parent. As a result of the share exchanges, each Subsidiary became a wholly-owned subsidiary of the Parent. The Parent and each Subsidiary are collectively referred to herein as (the "Company"). SteriLumen is engaged in the design, manufacture, assembly and distribution of (i) automated disinfecting mirror systems for use in hospitals and other healthcare facilities and (ii) air purification systems through its purchase of substantially all of the assets and certain liabilities of Akida Holdings, LLC, KES Science & Technology, and Scientific Air Management LLC, as described below. MunnWorks, LLC is engaged in the manufacture of fine mirrors and custom furniture specifically for the hospitality and retail industries. On March 25, 2022, the Company acquired the assets and assumed certain liabilities of VisionMark, LLC, ("VisionMark"). VisionMark is engaged in the business of manufacturing furniture using wood and metal components for the hospitality and retail industries. On January 26, 2023 we closed on the merger agreement with PURO Lighting LLC and LED Supply Co. LLC along with its operating subsidiaries (“PURO merger”). PURO and LED Supply Co. own a powerful suite of products used in education, government, and healthcare that incorporates UV Lighting and a HVAC monitoring software platform; LED Supply Co. provides design, distribution, and implementation services for lighting, controls and smart building technologies.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of Applied UV, Inc., Munnworks, LLC, SteriLumen, Inc., Puro Lighting, LLC, and LED Supply Co. LLC. All significant intercompany transactions and balances are eliminated in consolidation.
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements and related notes 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 rules and regulations of the United States Securities and Exchange Commission (the “SEC”) set forth in Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim financial statements furnished reflect all adjustments (consisting of normal recurring accruals) which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. Unaudited interim results are not necessarily indicative of the results for the full fiscal year. These financial statements should be read along with the Annual Report filed of the Company for the annual period ended December 31, 2022.
Concentration of Credit and Business Risk	Concentration of Credit and Business Risk At times throughout the year, the Company maintains cash balances at various institutions, which may exceed the Federal Deposit Insurance Corporation limit. As of June 30, 2023, the Company was approximately $ 2,959,000 in excess of FDIC insured limits. The Company provides credit in the normal course of business.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, as of the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include the valuation and accounting for equity awards related to warrants and stock-based compensation, determination of fair value for derivative instruments, the accounting for business combinations and allocating purchase price and estimating the useful life of intangible assets.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and equivalents include highly liquid investments that have original maturities less than 90 days at the time of their purchase. These investments are carried at cost which approximates market value because of their short maturities. As of June 30, 2023 and December 31, 2022, the Company had $ 27,000
Accounts receivable	Accounts receivable The Company’s accounts receivable balance consists of amounts due from its customers. The Company records accounts receivable at the invoiced amount less an allowance for any potentially uncollectable accounts under the current expected credit loss (“CECL”) impairment model and presents the net amount of the financial instrument expected to be collected. The CECL impairment model requires an estimate of expected credit losses, measured over the contractual life of an instrument, which considers forecasts of future economic conditions in addition to information about past events and current conditions. Based on this model, the Company considers many factors, including the age of the balance, collection history, and current economic trends. The Company performs ongoing credit evaluations of its customers and maintains allowances for doubtful accounts based on factors surrounding the credit risk of specific customers, historical trends and other information. Bad debts are recorded after all collection efforts have ceased. Allowances for credit losses are recorded as a direct reduction from an asset’s amortized cost basis. Credit losses and recoveries are recorded in selling, general and administrative expenses in the consolidated statements of operations. Recoveries of financial assets previously written off are recorded when received. For the three months ended June 30, 2023 and 2022, the Company had (recoveries) credit losses of $ (41,905 107,075 (135,467 55,226 105,000 35,000
Inventory	Inventory Inventories consist of raw materials, work-in-process, and finished goods. Raw materials and finished goods are valued at the lower of cost or net realizable value, using the first-in, first-out (“FIFO”) valuation method. Work-in-process and finished goods includes the cost of materials, freight and duty, direct labor and overhead. The Company writes down inventory for estimated obsolescence equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. The company had a reserve for inventory approximating $ 187,000 88,000
Property and Equipment	Property and Equipment Property and equipment are recorded at cost. Repairs and maintenance expenditures, which do not extend the useful lives of the related assets, are expensed as incurred. Depreciation of machinery and equipment is based on the estimated useful lives of the assets. Schedule of estimated useful lives Machinery and equipment 5 to 7 years Leasehold improvements Lesser of term of lease or useful life Furniture and fixtures 5 to 7 years
Business Acquisition Accounting	Business Acquisition Accounting The Company applies the acquisition method of accounting for those that meet the criteria of a business combination. The Company allocates the purchase price of its business acquisitions based on the fair value of identifiable tangible and intangible assets. The difference between the total cost of the acquisition and the sum of the fair values of acquired tangible and identifiable intangible assets less liabilities is recorded as goodwill. Transaction costs are expensed as incurred in general and administrative expenses.
Goodwill and Intangible Assets	Goodwill and Intangible Assets The Company has recorded intangible assets, including goodwill, in connection with business combinations. Estimated useful lives of amortizable intangible assets are determined by management based on an assessment of the period over which the asset is expected to contribute to future cash flows. In accordance with U.S. GAAP for goodwill and other indefinite-lived intangibles, the Company tests these assets for impairment annually and whenever events or circumstances make it more likely than not that impairment may have occurred. For the purposes of that assessment, the Company has determined to assign assets acquired in business combinations to a single reporting unit including all goodwill and indefinite-lived intangible assets acquired in business combinations.
Income Taxes	Income Taxes The Company files income tax returns using the cash basis of accounting. Income taxes are accounted for under the asset and liability method. Current income taxes are based on the year's income taxable for federal and state tax reporting purposes. Deferred income tax assets and liabilities are computed annually for differences between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable income will be available to allow all or part of the asset to be recovered.
Derivative Instruments	Derivative Instruments The Company evaluates its warrants to determine if those contracts or embedded components of those contracts qualify as derivatives. The result of this accounting treatment is that the fair value of the embedded derivative is marked-to-market each balance sheet date and recorded as a liability. In the event that the fair value is recorded as a liability, the change in fair value is recorded in the statements of operations as other income or expense. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period. The Company has concluded that there are no such reclassifications required to be made as of and for the periods ended June 30, 2023 and December 31, 2022. The Company utilizes the Black-Scholes valuation model to value the derivative warrants as stipulated in the agreement for the warrant holders to receive cash based on that value.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The carrying amounts reported in the unaudited condensed consolidated balance sheets for loans payable approximate fair value because of the immediate or short-term maturity of the financial instruments. The Company's financial assets and liabilities are measured using inputs from the three levels of the fair value hierarchy.
Loss Per Share	Loss Per Share Basic loss per share is computed by dividing net loss attributable to common shareholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) for the period. In periods of losses, diluted loss per share is computed on the same basis as basic loss per share as the inclusion of any other potential shares outstanding would be anti-dilutive. The following table sets forth the number of potential shares of common stock that have been excluded from diluted net loss per share because their effect was anti-dilutive: Schedule of Anti-dilutive Securities Excluded from Computation of Loss Per Share As of June 30, 2023 2022 Common stock options 254,256 163,856 Series B Preferred Stock 1,250,000 — Series C Preferred Stock 399,996 — Common stock warrants 308,484 38,484 Total 2,212,736 202,340
Stock-Based Compensation	Stock-Based Compensation The Company accounts for its stock-based compensation awards in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 718 ("ASC"), Compensation-Stock Compensation ("ASC 718"). ASC 718 requires all stock-based payments to employees, including grants of employee stock options and restricted stock and modifications to existing stock options, to be recognized in the statements of operations based on their fair values over the requisite service period.
Reverse Stock Split	Reverse Stock Split Applied UV, Inc. (the “Company”) filed a Certificate of Amendment to the Company’s Certificate of Incorporation with the Secretary of State of the State of Delaware (the “Certificate of Amendment”) to effect a 1-for-5 reverse stock split (the “reverse stock split”) of the shares of the Company’s common stock, par value $0.0001 per share (the “Common Stock”), on May 30, 2023. The Certificate of Amendment has no effect on the number of authorized shares of Common Stock or their par value. No fractional shares will be issued in connection with the reverse stock split and stockholders will receive cash in lieu of fractional shares. All historical share and per share amounts in these financial statements have been retroactively adjusted to reflect the reverse stock split.
Research and Development	Research and Development The Company accounts for research and development costs in accordance with Accounting Standards Codification subtopic 730-10, Research and Development (“ASC 730-10”). Under ASC 730-10, all research and development costs must be charged to expense as incurred. Accordingly, research and development costs are expensed as incurred.
Revenue Recognition	Revenue Recognition The Company recognizes revenue when the performance obligations in the client contract has been achieved. A performance obligation is a contractual promise to transfer product to the customer. The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when or as, the customer receives the benefit of the performance obligation. Under ASC 606, revenue is recognized when a customer obtains control of goods in an amount that reflects the consideration the Company expects to receive in exchange for those goods. To achieve this core principle, the Company applies the following five steps: 1) Identify the contract with a customer. 2) Identify the performance obligations in the contract. 3) Determine the transaction price. 4) Allocate the transaction price to performance obligations in the contract. 5) Recognize revenue when or as the Company satisfies a performance obligation. MunnWorks projects, including those from the VisionMark acquisition, are completed within the Company’s facilities. For these projects, the company designs, manufactures and sells custom mirrors and furniture for the hospitality and retail industries through contractual agreements. These sales require the company to deliver the products within three to nine months from commencement of order acceptance. Revenue is recognized using the input method of accounting. Deferred revenue represents amounts billed in excess of revenues recognized. Revenues recognized in excess of amounts billed typically does not occur as the Company will not perform any work in excess of the amount the company bills to its customers. If work is performed in excess of amounts billed, the Company will record an unbilled receivable The company applied the five-step model to the sales of Puro's disinfection solution, LED's lighting products, Akida’s and KES’s Airocide™ and misting system products, and SciAir’s whole-room aerosol chamber and laboratory certified air disinfection machines. At contract inception and once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company sells Airocide™ air sterilization units, misting systems, and whole-room aerosol chamber and laboratory certified disinfection machines to both consumer and commercial customers. These products are sold both domestically and internationally. The cycle from contract inception to shipment of products is typically one day to three months. The Company’s contracts for both its consumer and commercial customers each contain a single performance obligation (delivery of Airocide™, KES, and SciAir products), as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. As a result, the entire transaction price is allocated to this single performance obligation. The Company recognizes revenues at a point in time when the customer obtains control of the Company’s product, which typically occurs upon shipment of the product by the Company or upon customer pick-up via third party common carrier. Revenue recognized over time and revenue recognized at a point in time for the three months ended: Schedule of revenue: Schedule of revenue June 30, 2023 2022 Recognized over time $ 3,198,458 $ 2,883,912 Recognized at a point in time 7,645,228 3,023,734 Total $ 10,843,686 $ 5,907,646 Revenue recognized over time and revenue recognized at a point in time for the six months ended: Schedule of revenue: June 30, 2023 2022 Recognized over time $ 8,484,901 $ 3,413,149 Recognized at a point in time 13,013,268 5,850,587 Total $ 21,498,169 $ 9,263,736 Deferred revenue was comprised of the following as of: June 30, December 31, 2023 2022 Recognized over time $ 2,275,791 $ 3,581,195 Recognized at a point in time 3,130,292 1,149,104 Total $ 5,406,083 $ 4,730,299 The Company recognized $ 545,107 3,247,141
Advertising	Advertising Advertising costs consist primarily of online search advertising and placement, trade shows, advertising fees, and other promotional expenses. Advertising costs are expensed as incurred and are included in sales and marketing on the consolidated statements of operations. Advertising expense for the three months ended June 30, 2023 and 2022 was $ 144,100 348,377 295,718 546,372
Vendor deposits	Vendor deposits Vendor payments to third manufactures are capitalized until completion of the project and are recorded as vendor deposits. As of June 30, 2023 and December 31, 2022, the vendor deposit balance was $ 1,149,385 75,548
Patent Costs	Patent Costs The Company capitalizes costs consisting principally of outside legal costs and filing fees related to obtaining and maintaining patents. The Company amortizes patent costs over the useful life of the patent which is typically 20 years, beginning with the date the patent is filed with the U.S. Patent and Trademark Office, or foreign equivalent. As of June 30, 2023 and December 31, 2022, capitalized patent costs net of accumulated amortization was $ 3,214,729 1,593,741 47,516 25,016 89,012 50,032
Recently adopted accounting standards	Recently adopted accounting standards From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that the Company adopts as of the specified effective date. The Company does not believe that the impact of recently issued standards that are not yet effective will have a material impact on the Company’s financial position or results of operations upon adoption. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The FASB subsequently issued amendments to ASU 2016-13, which have the same effective date and transition date of January 1, 2023. These standards replace the existing incurred loss impairment model with an expected credit loss model and requires a financial asset measure at amortized cost to be presented at the net amount expected to be collected. The Company determined that this change does not have a material impact to the financial statements or financial statement disclosures.
Recently issued accounting pronouncements	Recently issued accounting pronouncements In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470 20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”) to simplify accounting for certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if converted method for all convertible instruments. The amendments in this update will be effective for the Company on January 1, 2024 and may be early adopted at the beginning of fiscal year 2023. The Company is currently assessing the impact, if any, that ASU 2020-06 would have on its financial position, results of operations or cash flows.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Schedule of estimated useful lives	Schedule of estimated useful lives Machinery and equipment 5 to 7 years Leasehold improvements Lesser of term of lease or useful life Furniture and fixtures 5 to 7 years
Schedule of Anti-dilutive Securities Excluded from Computation of Loss Per Share	Schedule of Anti-dilutive Securities Excluded from Computation of Loss Per Share As of June 30, 2023 2022 Common stock options 254,256 163,856 Series B Preferred Stock 1,250,000 — Series C Preferred Stock 399,996 — Common stock warrants 308,484 38,484 Total 2,212,736 202,340
Schedule of revenue	Schedule of revenue June 30, 2023 2022 Recognized over time $ 3,198,458 $ 2,883,912 Recognized at a point in time 7,645,228 3,023,734 Total $ 10,843,686 $ 5,907,646 Revenue recognized over time and revenue recognized at a point in time for the six months ended: Schedule of revenue: June 30, 2023 2022 Recognized over time $ 8,484,901 $ 3,413,149 Recognized at a point in time 13,013,268 5,850,587 Total $ 21,498,169 $ 9,263,736 Deferred revenue was comprised of the following as of: June 30, December 31, 2023 2022 Recognized over time $ 2,275,791 $ 3,581,195 Recognized at a point in time 3,130,292 1,149,104 Total $ 5,406,083 $ 4,730,299

BUSINESS ACQUISITION (Tables)

BUSINESS ACQUISITION (Tables)	6 Months Ended
	Jun. 30, 2023
Business Acquisition [Line Items]
Schedule of recognized identified assets acquired and liabilities assumed	Schedule of recognized identified assets acquired and liabilities assumed Purchase Price: Cash paid at closing $ 10 Due to landlord 755,906 Total Purchase Price, net of cash acquired 755,916 Assets Acquired: Accounts receivable, net 636,550 Inventory 176,583 Costs and estimated earnings in excess of billings 181,152 Machinery and equipment 1,100,000 Total Assets Acquired: 2,094,285 Liabilities Assumed: Billings in excess of costs and earnings on uncompleted contracts (1,388,838 ) Total Liabilities Assumed (1,388,838 ) Net Assets Acquired 705,447 Excess Purchase Price Goodwill $ 50,469
Schedule of future maturity of the lease liability	Schedule of future maturity of the lease liability Years Ended December 31, 2023 (6 months) $ 186,346 2024 372,684 2025 93,174 Total 652,204 Less: Unamortized discount (137,465 ) Total amount due to landlord 514,739 Less: current portion of amount due to landlord, net of discount (189,182 ) Total long-term portion of amount due to landlord $ 325,557
P U R O Lighting L L C [Member]
Business Acquisition [Line Items]
Schedule of recognized identified assets acquired and liabilities assumed	Schedule of recognized identified assets acquired and liabilities assumed Purchase Price: Cash paid at closing, net of cash acquired $ 3,828,967 Common stock 2,597,111 Series B Preferred Stock 3,712,500 Series C Preferred Stock 667,947 Contingent consideration-Make Whole*** 2,397,334 Contingent consideration-Earnout 4,046,232 Total Purchase Price, net of cash acquired 17,250,091 Assets Acquired: Accounts receivable, net 274,574 Inventory 2,085,912 Other current assets 415,188 Fixed assets, net 5,075 Tradenames/trademarks 1,228,000 Technology/know-how/trade secrets 1,842,000 Patented technology 1,710,000 Customer relationships 4,705,000 Total Assets Acquired: 12,265,749 Liabilities Assumed: Accounts payable and accrued expenses (936,448 ) Deferred revenue (18,482 ) Total Liabilities Assumed (954,930 ) Net Assets Acquired 11,310,819 Excess Purchase Price "Goodwill" $ 5,939,272
L E D Supply Co L L C [Member]
Business Acquisition [Line Items]
Schedule of recognized identified assets acquired and liabilities assumed	Schedule of recognized identified assets acquired and liabilities assumed Purchase Price: Cash paid at closing $ 286,742 Common stock 1,432,889 Series C Preferred Stock 396,042 Contingent considerations-Common Stock True Up*** 1,322,665 Contingent considerations-Earnout 10,609,442 Total Purchase Price, net of cash acquired 14,047,780 Assets Acquired: Accounts receivable, net 1,461,461 Inventory 1,925,285 Other current assets 232,095 Vendor deposits 375,672 Costs and estimated earnings in excess of billings 533,638 Fixed assets, net 106,330 Trademarks/tradenames 1,806,000 Technology/know-how/trade secrets 1,169,193 Vendor relationships 1,416,000 Rebate program 1,894,703 Customer relationships 2,088,000 Other non-current assets 24,819 Total Assets Acquired: 13,033,196 Liabilities Assumed: Accounts payable (2,854,509 ) Deferred revenue (2,279,616 ) Notes payable (1,973,946 ) Financing lease liability (25,231 ) Total Liabilities Assumed (7,133,302 ) Net Assets Acquired 5,899,894 Excess Purchase Price "Goodwill" $ 8,147,886

INVENTORY (Tables)

INVENTORY (Tables)	6 Months Ended
	Jun. 30, 2023
Inventory Disclosure [Abstract]
Schedule of Inventory	Schedule of Inventory June 30, December 31, 2023 2022 Raw materials $ 3,419,017 $ 3,485,040 Finished goods 4,975,717 2,110,838 Inventory at cost 8,394,734 5,595,878 Less: Reserve (186,839 ) (87,792 ) Inventory, net $ 8,207,895 $ 5,508,086

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	6 Months Ended
	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	Schedule of property and equipment June 30, December 31, 2023 2022 Machinery and Equipment $ 1,319,975 $ 1,266,189 Leasehold improvements 130,058 67,549 Furniture and Fixtures 274,326 203,256 Property and equipment at cost 1,724,359 1,536,994 Less: Accumulated Depreciation (557,852 ) (403,526 ) Net Property and Equipment $ 1,166,507 $ 1,133,468

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	6 Months Ended
	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	Schedule of Intangible Assets June 30, December 31, 2023 2022 Intangible assets subject to amortization Customer Relationships $ 8,448,598 $ 1,655,598 Tradenames/trademarks 5,242,530 2,208,530 Patented technology 3,474,158 1,730,771 Technology/know-how/trade secrets 11,369,883 8,341,000 Vendor relationships 1,416,000 — Rebate program 1,894,703 — 31,845,872 13,935,899 Less: Accumulated Amortization (3,845,271 ) (2,581,469 ) $ 28,000,601 $ 11,354,430
Future amortization of intangible assets	Future amortization of intangible assets For the year ending December 31, 2023 (6 months) 1,430,196 2024 3,050,982 2025 3,050,982 2026 3,033,272 Thereafter 17,435,169 Total $ 28,000,601

FINANCING LEASE OBLIGATION (Tab

FINANCING LEASE OBLIGATION (Tables)	6 Months Ended
	Jun. 30, 2023
Financing Lease Obligation
Schedule of future minimum principal and interest payments under capital lease arrangements	Schedule of future minimum principal and interest payments under capital lease arrangements 2023 (6 months) $ 32,811 2024 54,901 2025 54,901 2026 49,260 2027 36,109 Total lease payments 227,982 Less: Amount representing interest (30,990 ) Present value of future minimum lease payments 196,992 Less: current portion (41,632 ) Financing lease obligations, net of current $ 155,360

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	6 Months Ended
	Jun. 30, 2023
Notes Payable
Schedule of notes payable	Schedule of notes payable June 30, December 31, 2023 2022 Loan Agreement $ 157,500 $ 157,500 Streeterville Note #1 2,655,000 2,807,500 Streeterville Note #2 2,842,500 — Directors and Officers Liability Insurance Agreement — 166,262 Pinnacle Note 5,059,841 — Total 10,714,841 3,131,262 Less: Unamortized debt discount (391,925 ) 267,433 Total notes payable 10,322,916 2,863,829 Notes payable, current (4,999,257 ) (2,098,685 ) Notes payable, non current $ 5,323,659 $ 765,144
Schedule of minimum obligations under loan agreement	Schedule of minimum obligations under loan agreement 2023 (six months) $ 2,672,964 2024 $ 8,041,877 Total $ 10,714,841

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2023
Fair Value Disclosures [Abstract]
Fair value, assets measured on recurring basis	Fair value, assets measured on recurring basis Carrying Amount Fair Value Level 1 Level 2 Level 3 As of June 30, 2023 Assets Money market funds $ 26,981 $ 26,981 $ 26,981 $ — $ — Total assets $ 26,981 $ 26,981 $ 26,981 $ — $ — Liabilities Contingent consideration $ 18,809,672 $ 18,809,672 $ 4,153,999 $ — $ 14,655,673 Warrant liability 9,069 9,069 — — 9,069 Total liabilities $ 18,818,741 $ 18,818,741 $ 4,153,999 $ — $ 14,664,742 As of December 31, 2022 Assets Money market funds $ 26,828 $ 26,828 $ 26,828 $ — $ — Total assets $ 26,828 $ 26,828 $ 26,828 $ — $ — Liabilities Warrant liability 9,987 9,987 — — 9,987 Total liabilities $ 9,987 $ 9,987 $ — $ — $ 9,987

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	6 Months Ended
	Jun. 30, 2023
Equity [Abstract]
Schedule of the Company’s option activity	Schedule of the Company’s option activity Number of Weighted-Average Exercise Price Weighted-Average Grant Date Fair Value Weighted-Average Remaining Contractual Life (in years Aggregate intrinsic value Balances, January 1, 2022 128,863 $ 35.55 $ 25.15 8.47 $ — Options granted outside of the plan 127,800 8.30 5.30 10.00 — Options forfeited (56,657 ) 35.10 — — Options exercised — — — — Balances, December 31, 2022 200,006 $ 18.05 $ — 9.03 $ — Options granted outside of the plan 96,000 10.00 4.37 10.0 — Options forfeited (41,750 ) 9.02 — — Options exercised — — — — Balances, June 30, 2023 254,256 $ 16.50 $ — 8.90 $ — Vested and Exercisable 79,112 $ 26.89 $ —
Schedule of share-based payment award, stock options, valuation assumptions	Schedule of share-based payment award, stock options, valuation assumptions 2023 2022 Risk-free interest rate 3.53 3.60 1.26 2.82 Volatility 90.27 91.01 78.95 81.22 Expected life (years) 5.83 6.08 5.75 6.08 Dividend yield 0.00 % 0.00 %
Schedule of the Company's warrant activity	Schedule of the Company's warrant activity Number of Warrants Weighted-Average Exercise Price Balances, January 1, 2022 38,484 $ 29.20 Granted — — Exercised — — Balances, March 31, 2022 38,484 $ 29.20 Granted — — Exercised — — Balances, June 30, 2022 38,484 $ 29.20 Balances, January 1, 2023 38,484 $ 29.20 Granted — — Exercised — — Balances, March 31, 2023 38,484 $ 29.20 Pre-funded warrants 270,000 $ 1.00 Exercised — — Balances, June 30, 2023 308,484 $ 4.52 At June 30, 2023 Vested and Exercisable 308,484 $ 4.52
Schedule of unvested restricted stock units activity	Schedule of unvested restricted stock units activity Number of Weighted-Average Fair Market Value Unvested shares at January 1, 2022 58,500 $ 23.55 Granted and unvested 41,500 10.50 Vested (20,193 ) 19.40 Forfeited/Cancelled (62,307 ) $ 22.25 Unvested shares at December 31, 2022 17,500 $ 11.90 Granted and unvested 11,000 5.05 Vested (6,833 ) 14.15 Forfeited/Cancelled (3,000 ) 5.80 Unvested shares, March 31, 2023 18,667 $ 6.80 Vested (833 ) $ 13.50 Unvested shares, June 30, 2023 17,834 $ 6.85 Vested as of June 30, 2023 69,000 $ 22.85

LEASING ARRANGEMENTS (Tables)

LEASING ARRANGEMENTS (Tables)	6 Months Ended
	Jun. 30, 2023
Leasing Arrangements
Schedule of maturities of operating lease liabilities	Schedule of maturities of operating lease liabilities 2023 (6 months) $ 1,012,105 2024 1,914,174 2025 1,190,213 2026 174,900 Total lease payments 4,291,392 Less: Imputed Interest $ (412,106 ) Present value of future minimum lease payments $ 3,879,286

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	6 Months Ended
	Jun. 30, 2023
Segment Reporting [Abstract]
Schedule of segment reporting	Schedule of segment reporting Hospitality Disinfectant/ Corporate Total Balance sheet at June 30, 2023 Assets $ 11,009,842 $ 58,173,405 $ 3,788,809 $ 72,972,056 Liabilities $ 9,312,841 $ 29,166,709 $ 9,521,558 $ 48,001,108 Balance sheet at December 31, 2022 Assets $ 9,638,828 $ 19,831,097 $ 3,257,502 $ 32,727,427 Liabilities $ 10,666,643 $ 1,545,217 $ 3,281,672 $ 15,493,532 Hospitality Disinfectant/ Corporate Total Income Statement for the three months ended June 30, 2023: Net Sales $ 5,147,682 $ 5,696,004 $ — $ 10,843,686 Cost of Goods Sold $ 4,134,884 $ 4,299,108 $ — $ 8,433,992 Research and development $ — $ 180,293 $ — $ 180,293 Stock based compensation $ 57,820 $ 34,188 $ 102,672 $ 194,680 Selling, General and Administrative $ 1,206,113 $ 2,988,000 $ 533,326 $ 4,727,439 Income Statement for the three months ended June 30, 2022: Net Sales $ 4,169,112 $ 1,738,534 $ — $ 5,907,646 Cost of Goods Sold $ 3,695,267 $ 908,587 $ — $ 4,603,854 Research and development $ — $ 82,049 $ — $ 82,049 Stock based compensation $ 30,149 $ 37,800 $ 44,502 $ 112,451 Selling, General and Administrative $ 1,195,460 $ 2,033,074 $ 690,230 $ 3,918,764 Income Statement for the six months ended June 30, 2023: Net Sales $ 11,229,055 $ 10,269,114 $ — $ 21,498,169 Cost of Goods Sold $ 9,441,070 $ 7,725,019 $ — $ 17,166,089 Research and development $ — $ 369,503 $ — $ 369,503 Stock based compensation $ 114,674 $ 70,364 $ 199,771 $ 384,809 Selling, General and Administrative $ 2,239,702 $ 5,871,973 $ 1,690,014 $ 9,801,689 Income Statement for the six months ended June 30, 2022: Net Sales $ 5,578,362 $ 3,685,374 $ — $ 9,263,736 Cost of Goods Sold $ 4,853,911 $ 1,956,934 $ — $ 6,810,845 Research and development $ — $ 141,363 $ — $ 141,363 Stock based compensation $ 116,160 $ 60,086 $ 224,204 $ 400,450 Selling, General and Administrative $ 1,854,548 $ 3,818,284 $ 1,059,159 $ 6,731,991 Loss on impairment of goodwill $ — $ 1,138,203 $ — $ 1,138,203

PROFORMA FINANCIAL STATEMENTS_2

PROFORMA FINANCIAL STATEMENTS (UNAUDITED) (Tables)	6 Months Ended
	Jun. 30, 2023
Proforma Financial Statements
Schedule of business acquisition, pro forma information	Schedule of business acquisition, pro forma information For the Three Months Ended For the Six Months Ended June 30, 2023 2022 2023 2022 Net Sales $ 10,843,686 $ 9,207,473 $ 22,017,102 $ 18,622,909 Net Loss $ (2,991,224 ) $ (2,845,863 ) $ (7,981,747 ) $ (5,623,491 ) Net Loss attributable to common stockholders: Dividends to preferred shareholders (407,231 ) (362,250 ) (769,481 ) (724,500 ) Net Loss attributable to common stockholders (3,398,455 ) (3,208,113 ) (8,751,228 ) (6,347,991 ) Basic and Diluted Loss Per Common Share $ ( 0.77 ) $ ( 0.79 ) $ ( 2.16 ) $ ( 1.54 ) Weighted Average Shares Outstanding - 4,434,036 4,083,076 4,060,537 4,109,956

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	6 Months Ended
	Jun. 30, 2023
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property Plant And Equipment Estimated Useful Live	5 to 7 years
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property Plant And Equipment Estimated Useful Live	Lesser of term of lease or useful life
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property Plant And Equipment Estimated Useful Live	5 to 7 years

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Anti-dilutive shares) - shares	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	2,212,736	202,340
Options Held [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	254,256	163,856
Series B Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,250,000	0
Series C Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	399,996	0
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	308,484	38,484

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Revenue) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Revenues	$ 10,843,686	$ 5,907,646	$ 21,498,169	$ 9,263,736
Deferred revenue	5,406,083		5,406,083		$ 4,730,299
Transferred over Time [Member]
Disaggregation of Revenue [Line Items]
Revenues	3,198,458	2,883,912	8,484,901	3,413,149
Deferred revenue	2,275,791		2,275,791		3,581,195
Transferred at Point in Time [Member]
Disaggregation of Revenue [Line Items]
Revenues	7,645,228	$ 3,023,734	13,013,268	$ 5,850,587
Deferred revenue	$ 3,130,292		$ 3,130,292		$ 1,149,104

SUMMARY OF SIGNIFICANT ACCOUN_7

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Accounting Policies [Abstract]
Cash, FDIC Insured Amount	$ 2,959,000		$ 2,959,000
Cash Equivalents, at Carrying Value	27,000		27,000		$ 27,000
Accounts Receivable, Credit Loss Expense (Reversal)	(41,905)	$ 107,075	(135,467)	$ 55,226
Accounts Receivable, Allowance for Credit Loss	105,000		105,000		35,000
Inventory, LIFO Reserve	187,000		187,000		88,000
Deferred Revenue, Noncurrent					545,107
Deferred revenue	3,247,141		3,247,141
Advertising Expense	144,100	348,377	295,718	546,372
Deposits Assets, Current	1,149,385		1,149,385		75,548
Finite-Lived Patents, Gross	3,214,729		3,214,729		$ 1,593,741
Amortization	$ 47,516	$ 25,016	$ 89,012	$ 50,032

BUSINESS ACQUISITION - Recogniz

BUSINESS ACQUISITION - Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($)	Jun. 30, 2023	Jan. 26, 2023	Dec. 31, 2022	Mar. 25, 2022
Business Acquisition [Line Items]
Cash paid at closing				$ 10
Due to landlord	$ 189,182		$ 229,234	755,906
Total Purchase Price, net of cash acquired				755,916
Accounts receivable, net				636,550
Inventory				176,583
Costs and estimated earnings in excess of billings	$ 2,435,960		$ 1,306,762	181,152
Machinery and equipment				1,100,000
Total Assets Acquired:				2,094,285
Billings in excess of costs and earnings on uncompleted contracts				(1,388,838)
Total Liabilities Assumed				(1,388,838)
Net Assets Acquired				705,447
Excess Purchase Price "Goodwill"				$ 50,469
P U R O Lighting L L C [Member]
Business Acquisition [Line Items]
Cash paid at closing		$ 3,828,967
Total Purchase Price, net of cash acquired		17,250,091
Accounts receivable, net		274,574
Inventory		2,085,912
Total Assets Acquired:		12,265,749
Total Liabilities Assumed		(954,930)
Net Assets Acquired		11,310,819
Excess Purchase Price "Goodwill"		5,939,272
Common stock		2,597,111
Series B Preferred Stock		3,712,500
Series C Preferred Stock		667,947
Contingent considerations-Common Stock True Up***		2,397,334
Contingent considerations-Earnout		4,046,232
Other current assets		415,188
Fixed assets, net		5,075
Trademarks/tradenames		1,228,000
Technology/know-how/trade secrets		1,842,000
Patented technology		1,710,000
Customer relationships		4,705,000
Accounts payable		(936,448)
Deferred revenue		(18,482)
L E D Supply Co L L C [Member]
Business Acquisition [Line Items]
Cash paid at closing		286,742
Total Purchase Price, net of cash acquired		14,047,780
Accounts receivable, net		1,461,461
Inventory		1,925,285
Costs and estimated earnings in excess of billings		533,638
Total Assets Acquired:		13,033,196
Total Liabilities Assumed		(7,133,302)
Net Assets Acquired		5,899,894
Excess Purchase Price "Goodwill"		8,147,886
Common stock		1,432,889
Series C Preferred Stock		396,042
Contingent considerations-Common Stock True Up***		1,322,665
Contingent considerations-Earnout		10,609,442
Other current assets		232,095
Fixed assets, net		106,330
Trademarks/tradenames		1,806,000
Customer relationships		2,088,000
Accounts payable		(2,854,509)
Deferred revenue		(2,279,616)
Vendor deposits		375,672
Technology/know-how/trade secrets		1,169,193
Vendor relationships		1,416,000
Rebate program		1,894,703
Other non-current assets		24,819
Notes payable		(1,973,946)
Financing lease liability		$ (25,231)

BUSINESS ACQUISITION - Future M

BUSINESS ACQUISITION - Future Maturity of lease Liability (Details)	Jun. 30, 2023 USD ($)
Business Combination and Asset Acquisition [Abstract]
2023 (6 months)	$ 186,346
2024	372,684
2025	93,174
Total	652,204
Less: Unamortized discount	(137,465)
Total amount due to landlord	514,739
Less: current portion of amount due to landlord, net of discount	(189,182)
Total long-term portion of amount due to landlord	$ 325,557

BUSINESS ACQUISITION (Details N

BUSINESS ACQUISITION (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended			6 Months Ended
	Jan. 26, 2023	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Mar. 25, 2022
Business Acquisition [Line Items]
Shares, Issued			80,000			80,000
Change in fair market value						$ 240,000
Contingent Consideration Classified as Equity, Fair Value Disclosure			$ 1,700,000			1,700,000
Asset Impairment Charge				$ 1,138,203
Excess Purchase Price							$ 50,469
Operating Lease, Payments					$ 31,057
Debt Instrument, Interest Rate, Effective Percentage		38.70%			38.70%
Amortization of Debt Issuance Costs and Discounts		$ 37,823	$ 49,610		$ 78,620	$ 53,646
P U R O Lighting L L C [Member]
Business Acquisition [Line Items]
Excess Purchase Price	$ 5,939,272
Business Acquisition, Description of Acquired Entity	(i) 499,444 shares of the Company’s common stock (ii) 251,108 shares of the Company’s 5% Series C Cumulative Perpetual Preferred Stock, par value $0.0001 per share (“Series C Preferred Stock”) (iii) cash of $3,828,967 and (iv) 1,250,000 shares of the Company’s 2% Series B Cumulative Perpetual Preferred Stock (the “Series B Preferred Stock”). In addition, the seller has the right to receive earnout payments subject to certain conditions, including achieving certain revenue targets and gross profit margins and payable as set forth in the PURO Merger Agreement.
Business Acquisition, Equity Interest Issued or Issuable, Description	date of acquisition versus agreed upon $2 per share ("Make Whole"). In the event any PURO Equity holder sells any shares of Common Stock obtained pursuant to the terms of the Agreement through a registered broker/dealer on or after the first anniversary of the Closing Date for a price per share of the Common Stock less than $2.00 (the “Sale Price”), Parent will pay to such PURO Equity holder within ten (10) Business Days following the consummation of such sale to an account designated in writing by such PURO Equity holder an amount equal to (a) (i) $2.00 less (ii) the Sale Price, multiplied by (b) the number of shares of Common Stock sold in such sale (the “Make Whole Amount”). The Make Whole Amount payment shall be 50% in cash and 50% in shares of Common Stock (with the number of shares of Common Stock to be issued determined based on a price per share equal to 90% of the Sale Price). As a result of the make-whole provision, the liability was reduced to $2,677,020 as of June 30, 2023 with the change in fair market value of $119,866 being recorded to other income within the consolidated statements of operations.
L E D Supply Co L L C [Member]
Business Acquisition [Line Items]
Excess Purchase Price	$ 8,147,886
Business Acquisition, Description of Acquired Entity	(i) 275,555 shares of the Company’s common stock; (ii) 148,888 shares of Series C Preferred Stock; and (iii) cash of $286,742. In addition, the seller has the right to receive earnout payments subject to certain conditions, including achieving certain revenue targets and gross profit margins and payable as set forth in the LED Merger Agreement.
Business Acquisition, Equity Interest Issued or Issuable, Description	date of acquisition versus the agreed upon $2 per share ("Make Whole"). In the event any LED Equityholder sells any shares of Common Stock obtained pursuant to the terms of the Agreement through a registered broker/dealer on or after the first anniversary of the Closing Date for a price per share of the Common Stock less than $2.00 (the “Sale Price”), Parent will pay to such LED Equityholder within ten (10) Business Days following the consummation of such sale to an account designated in writing by such LED Equityholder an amount equal to (a) (i) $2.00 less (ii) the Sale Price, multiplied by (b) the number of shares of Common Stock sold in such sale (the “Make Whole Amount”). The Make Whole Amount payment shall be 50% in cash and 50% in shares of Common Stock (with the number of shares of Common Stock to be issued determined based on a price per share equal to 90% of the Sale Price). As a result of the make-whole provision, the liability was decreased to $1,476,977 as of June 30, 2023 with the change in fair market value of $66,133 being recorded to other income within the consolidated statements of operations.

INVENTORY (Details)

INVENTORY (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 3,419,017	$ 3,485,040
Finished goods	4,975,717	2,110,838
Inventory at cost	8,394,734	5,595,878
Less: Reserve	(186,839)	(87,792)
Inventory, net	$ 8,207,895	$ 5,508,086

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,724,359	$ 1,536,994
Less: Accumulated Depreciation	(557,852)	(403,526)
Property and equipment, net	1,166,507	1,133,468
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,319,975	1,266,189
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	130,058	67,549
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 274,326	$ 203,256

PROPERTY AND EQUIPMENT (Detai_2

PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Property, Plant and Equipment [Abstract]
Depreciation	$ 77,293	$ 68,765	$ 154,326	$ 94,527

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Intangible assets gross	$ 31,845,872	$ 13,935,899
Less: Accumulated Depreciation	(3,845,271)	(2,581,469)
Intangible assets net	28,000,601	11,354,430
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets gross	8,448,598	1,655,598
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets gross	5,242,530	2,208,530
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets gross	3,474,158	1,730,771
Technology-Based Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets gross	11,369,883	8,341,000
Vendor Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets gross	1,416,000	0
Rebate Program [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets gross	$ 1,894,703	$ 0

INTANGIBLE ASSETS (Details 1)

INTANGIBLE ASSETS (Details 1) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
2023 (6 months)	$ 1,430,196
2024	3,050,982
2025	3,050,982
2026	3,033,272
Thereafter	17,435,169
Total	$ 28,000,601	$ 11,354,430

INTANGIBLE ASSETS (Details Narr

INTANGIBLE ASSETS (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of Intangible Assets	$ 680,328	$ 441,985	$ 1,263,802	$ 883,969

FINANCING LEASE OBLIGATION - Fu

FINANCING LEASE OBLIGATION - Future minimum principal and interest payments under capital lease arrangements (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Financing Lease Obligation
2023 (6 months)	$ 32,811
2024	54,901
2025	54,901
2026	49,260
2027	36,109
Total lease payments	227,982
Less: Amount representing interest	(30,990)
Present value of future minimum lease payments	196,992
Less: current portion	(41,632)
Financing lease obligations, net of current	$ 155,360	$ 158,070

NOTES PAYABLE - Notes payable (

NOTES PAYABLE - Notes payable (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Total	$ 10,714,841	$ 3,131,262
Less: Unamortized Discount	(391,925)	267,433
Total notes payable	10,322,916	2,863,829
Notes payable, current	(4,999,257)	(2,098,685)
Notes payable, non current	5,323,659	765,144
Loan Agreement [Member]
Debt Instrument [Line Items]
Total	157,500	157,500
Streeterville Note 1 [Member]
Debt Instrument [Line Items]
Total	2,655,000	2,807,500
Streeterville Note 2 [Member]
Debt Instrument [Line Items]
Total	2,842,500	0
Netsuite Cloud Services Financing Agreement [Member]
Debt Instrument [Line Items]
Total	0	166,262
Pinnacle Note [Member]
Debt Instrument [Line Items]
Total	$ 5,059,841	$ 0

NOTES PAYABLE - Minimum obligat

NOTES PAYABLE - Minimum obligations under this loan agreement (Details)	Jun. 30, 2023 USD ($)
Notes Payable
2023 (six months)	$ 2,672,964
2024	8,041,877
Total	$ 10,714,841

NOTES PAYABLE (Details Narrativ

NOTES PAYABLE (Details Narrative) - USD ($)			1 Months Ended		3 Months Ended	6 Months Ended		12 Months Ended
	May 31, 2023	Oct. 07, 2022	Sep. 30, 2022	Aug. 28, 2022	Jun. 30, 2023	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Mar. 15, 2023
Debt Instrument [Line Items]
Other Long-Term Debt					$ 157,500	$ 157,500
Debt Instrument, Periodic Payment						30,000
Debt instrument additional amount						7,500
Repayments of Debt								$ 157,500
Debt Instrument, Face Amount									$ 1,800,199
Proceeds from Notes Payable						22,182,455	$ 0
Debt Instrument, Fee Amount	$ 65,000
Debt converted	$ 217,500
Conversion common stock shares	110,131
Monitoring Fee						8,333
Outstanding balance					50,000	50,000
Due to debt discount amortization						399,129	$ 53,646
Notes Payable					10,322,916	10,322,916		$ 2,863,829
Interest Payable, Current									$ 71,724
L E D Supply Co L L C [Member]
Debt Instrument [Line Items]
Debt Instrument, Periodic Payment, Principal						1,728,474
Debt Instrument, Periodic Payment, Interest						$ 71,724
Maximum [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Interest Rate During Period						2%
Minimum [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Interest Rate During Period						1.50%
Streeterville Note 1 [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate During Period		8%				18%
Debt Instrument, Face Amount		$ 2,807,500
Proceeds from Notes Payable						$ 2,462,500
Payments of Debt Issuance Costs						$ 345,000
Debt Instrument, Maturity Date						Apr. 07, 2024
Debt Instrument, Fee Amount	$ 65,000
Debt Instrument, Redemption Price, Percentage						87.50%
Debt Instrument, Unamortized Discount					$ 345,000	$ 345,000
Debt Instrument, Interest Rate, Stated Percentage					17.31%	17.31%
Due to debt discount amortization					$ 77,514	$ 164,627
Unamortized balance					156,269	156,269
Additional amortization of debt discount					9,355	9,355
Interest Expense, Debt					54,707	110,847
Streeterville Note 2 [Member]
Debt Instrument [Line Items]
Debt Instrument, Fee Amount	$ 35,000
Debt Instrument, Unamortized Discount					$ 344,500	$ 344,500
Debt Instrument, Interest Rate, Stated Percentage					22.23%	22.23%
Due to debt discount amortization					$ 83,043	$ 139,703
Unamortized balance					235,656	235,656
Additional amortization of debt discount					6,825	6,825
Interest Expense, Debt					57,248	97,801
Net principal balance						267,079
Directors And Officers Liability Insurance Agreement [Member]
Debt Instrument [Line Items]
Debt Instrument, Periodic Payment			$ 27,710	$ 41,730
Debt Instrument, Interest Rate During Period				5.05%
Debt Instrument, Face Amount				$ 318,833
Notes Payable					0	$ 0
Pinnacle Note [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Annual Principal Payment				$ 5,000,000
Debt Instrument, Description						The facility was later amended and increased to $6,000,000 on May 23, 2023. The loan is subject to a maximum advance amount of up to 85% of net face amount of eligible accounts, plus the lessor a) of the sum of 20% of the aggregate eligible inventory value of raw materials and 35% of the aggregate eligible inventory value of finished goods, b) $1 million, c) 80% of the net orderly liquidation value of raw materials and finished goods, or d) 100% of the aggregate outstanding principal amount of advances. In no event shall the aggregate amount of the outstanding advances under the Loan Facility be greater than $6 million. The loan matures on December 9, 2024.
Long-Term Line of Credit					$ 5,059,841	$ 5,059,841

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	$ 26,981	$ 26,828
Total assets	26,981	26,828
Contingent consideration	18,809,672	0
Warrant liability	9,069	9,987
Total liabilities	18,818,741	9,987
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	26,981	26,828
Total assets	26,981	26,828
Contingent consideration	4,153,999
Warrant liability	0	0
Total liabilities	4,153,999	0
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	0	0
Total assets	0	0
Contingent consideration	0
Warrant liability	0	0
Total liabilities	0	0
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	0	0
Total assets	0	0
Contingent consideration	14,655,673
Warrant liability	9,069	9,987
Total liabilities	14,664,742	9,987
Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	26,981	26,828
Total assets	26,981	26,828
Contingent consideration	18,809,672
Warrant liability	9,069	9,987
Total liabilities	$ 18,818,741	$ 9,987

FAIR VALUE MEASUREMENTS (Deta_2

FAIR VALUE MEASUREMENTS (Details Narrative) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Money market funds	$ 26,981	$ 26,828

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details) - Share-Based Payment Arrangement, Option [Member] - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of Option Outstanding, beginning	200,006	128,863
Weighted average exercise price, beginning	$ 18.05	$ 35.55
Weighted average grant date fair value, beginning		$ 25.15
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	8 years 10 months 24 days	8 years 5 months 19 days
Options granted outside of the plan	96,000	127,800
Weighted average exercise price, granted	$ 10	$ 8.30
Weighted average grant date fair value, granted	$ 4.37	$ 5.30
Weighted average remaining contractual life, granted	10 years	10 years
Options forfeited/cancelled	(41,750)	(56,657)
Weighted average exercise price, forfeited	$ 9.02	$ 35.10
Weighted average grant date fair value, forfeited	$ 0	$ 0
Option exercised	0	0
Weighted average exercise price, exercised	$ 0	$ 0
Weighted average grant date fair value, exercised	$ 0	$ 0
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	9 years 10 days
Number of Option Outstanding, ending	254,256	200,006
Weighted average exercise price, ending	$ 16.50	$ 18.05
Weighted average grant date fair value, ending
Options vested and exercisable	79,112
Weighted average exercise price, vested and exercisable	$ 26.89

STOCKHOLDERS' EQUITY (Details 1

STOCKHOLDERS' EQUITY (Details 1) - Share-Based Payment Arrangement, Option [Member]	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Dividend Rate	0%	0%
Minimum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	3.53%	1.26%
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate	90.27%	78.95%
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Term	5 years 9 months 29 days	5 years 9 months
Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	3.60%	2.82%
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate	91.01%	81.22%
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Term	6 years 29 days	6 years 29 days

STOCKHOLDERS' EQUITY (Details 2

STOCKHOLDERS' EQUITY (Details 2) - Warrant [Member] - $ / shares	3 Months Ended				6 Months Ended	12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Dec. 31, 2022
Class of Warrant or Right [Line Items]
Options outstanding at the beginning	38,484	38,484	38,484	38,484	38,484	38,484
Weighted average exercise price, beginning	$ 29.20	$ 29.20	$ 29.20	$ 29.20	$ 29.20	$ 29.20
Granted		0	0	0
Weighted average exercise price, Granted		$ 0	$ 0	$ 0
Exercised	0	0	0	0
Weighted average exercise price, Exercised	$ 0	$ 0	$ 0	$ 0
Options outstanding at the ending	308,484	38,484	38,484	38,484	308,484	38,484
Weighted average exercise price, ending	$ 4.52	$ 29.20	$ 29.20	$ 29.20	$ 4.52	$ 29.20
Pre-funded warrants	270,000
Weighted average exercise price, Pre-funded warrants	$ 1
Vested and Exercisable	308,484				308,484
Weighted average exercise price,Vested and Exercisable	$ 4.52				$ 4.52

STOCKHOLDERS' EQUITY (Details 3

STOCKHOLDERS' EQUITY (Details 3) - Restricted Stock [Member] - $ / shares	3 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of unvested shares outstanding, at beginning	18,667	17,500	58,500
Weighted average fair market value outstanding, at beginning	$ 6.80	$ 11.90	$ 23.55
Granted and unvested		11,000	41,500
Weighted average fair market value, granted and unvested		$ 5.05	$ 10.50
Vested	(833)	(6,833)	(20,193)
Weighted average fair market value, vested	$ 13.50	$ 14.15	$ 19.40
Forfeited/Cancelled		(3,000)	(62,307)
Weighted average fair market value, forfeited/Cancelled		$ 5.80	$ 22.25
Number of unvested shares outstanding, at ending	17,834	18,667	17,500
Weighted average fair market value outstanding, at ending	$ 6.85	$ 6.80	$ 11.90
Vested	69,000
Vested	$ 22.85

STOCKHOLDERS' EQUITY (Details N

STOCKHOLDERS' EQUITY (Details Narrative) - USD ($)				1 Months Ended	3 Months Ended			6 Months Ended		12 Months Ended
	Jun. 16, 2023	Jul. 02, 2022	Jan. 05, 2022	Jan. 25, 2023	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]
Aggregate shares								363,642
Sale of Stock, Consideration Received on Transaction								$ 2,342,084
Compensation paid		$ 28,922						70,262
Sale of Stock, Consideration Received Per Transaction								$ 5,693,833
Shares purchased	200,000
Gross proceeds	$ 5,200,000
Related costs	$ 816,000
Exercise price	$ 0.001
Treasury Stock, Shares, Acquired								22,697
Undesignated shares										18,740,000
Dividends rate percentage				2%
Preferred Stock, Liquidation Preference Per Share				$ 6
Options [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Share-Based Payment Arrangement, Expense					$ 161,465	$ 108,178		$ 322,063	$ 330,240
Share-Based Payment Arrangement, Option [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrecognized compensation expense					1,140,186			1,140,186
Restricted Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Share-Based Payment Arrangement, Expense					$ 31,323	$ 4,271		$ 58,446	$ 70,209
Preferred Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Preferred Stock, Shares Authorized					20,000,000			20,000,000
Preferred Stock, Par or Stated Value Per Share					$ 0.0001			$ 0.0001
Series X Preferred Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Preferred Stock, Shares Authorized					10,000			10,000		10,000
Preferred Stock, Par or Stated Value Per Share					$ 0.0001			$ 0.0001		$ 0.0001
Series A Cumulative [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Preferred Stock, Shares Authorized					14,990,000			14,990,000		1,250,000
Series B Redeemable Preferred Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Preferred Stock, Shares Authorized					1,250,000			1,250,000		1,250,000
Preferred Stock, Par or Stated Value Per Share					$ 0.0001			$ 0.0001		$ 0.0001
Temporary Equity, Shares Authorized				1,250,000
Preferred stock par value				$ 0.0001
Preferred Stock, Liquidation Preference Per Share				6
Dividends Payable, Amount Per Share				0.12
Preferred Stock, Redemption Price Per Share				$ 2
Series C Redeemable Preferred Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Preferred Stock, Shares Authorized					2,500,000			2,500,000		2,500,000
Preferred Stock, Par or Stated Value Per Share					$ 0.0001			$ 0.0001		$ 0.0001
Temporary Equity, Shares Authorized				2,500,000
Preferred stock par value				$ 0.0001
Dividends rate percentage				5%
Preferred Stock, Liquidation Preference Per Share				$ 5
Dividends Payable, Amount Per Share				$ 0.25
Series C Preferred Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Preferred Stock, Shares Authorized					10,000			10,000
Series A Preferred Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Preferred Stock, Shares Authorized					1,250,000			1,250,000		1,250,000
Preferred Stock, Par or Stated Value Per Share					$ 0.0001			$ 0.0001		$ 0.0001
Over-Allotment Option [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Sale of Stock, Consideration Received Per Transaction			$ 1,200,000
Additional shares			80,000
Share Price			$ 15
Proceeds from Issuance Initial Public Offering			$ 1,092,000
Underwriting discount			$ 108,000
Common Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Aggregate shares	4,730,000
Offering per share	$ 1
Additional shares							80,000
Common Stock [Member] | Prefundedwarrants [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Aggregate shares	270,000
Offering per share	$ 1
Common Stock [Member] | Over-Allotment Option [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Additional shares	750,000
At The Market Sales Agreement [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stockholders' Equity, Average Amount Outstanding		50,000,000
Aggregate shares										160,962
Sale of Stock, Consideration Received on Transaction										$ 964,083
Maxim Group L L C [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stockholders' Equity, Average Amount Outstanding		$ 9,000,000

LEASING ARRANGEMENTS - Maturiti

LEASING ARRANGEMENTS - Maturities of Operating lease laibilities (Details)	Jun. 30, 2023 USD ($)
Leasing Arrangements
2023 (6 months)	$ 1,012,105
2024	1,914,174
2025	1,190,213
2026	174,900
Total lease payments	4,291,392
Less: Imputed Interest	(412,106)
Present value of future minimum lease payments	$ 3,879,286

LEASING ARRANGEMENTS (Details N

LEASING ARRANGEMENTS (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	Jan. 26, 2023	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Operating Lease, Weighted Average Discount Rate, Percent		7.60%		7.60%
Lease Expiration Date	Jan. 27, 2026
Operating Leases, Rent Expense, Net		$ 517,071	$ 427,222	$ 937,178	$ 529,021
Minimum [Member]
Short-Term Lease Payments	$ 17,000
Maximum [Member]
Short-Term Lease Payments	$ 18,387

SEGMENT REPORTING (Details)

SEGMENT REPORTING (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Segment Reporting Information [Line Items]
Total Assets	$ 72,972,056		$ 72,972,056		$ 32,727,427
Total Liabilities	48,001,108		48,001,108		15,493,532
Net Sales	10,843,686	$ 5,907,646	21,498,169	$ 9,263,736
Cost of Goods Sold	8,433,992	4,603,854	17,166,089	6,810,845
Research and development	180,293	82,049	369,503	141,363
Stock based compensation	194,680	112,451	384,809	400,450
Selling, General and Administrative Expenses	4,727,439	3,918,764	9,801,689	6,731,991
Loss on impairment of goodwill				1,138,203
Hospitality Segment [Member]
Segment Reporting Information [Line Items]
Total Assets	11,009,842		11,009,842		9,638,828
Total Liabilities	9,312,841		9,312,841		10,666,643
Net Sales	5,147,682	4,169,112	11,229,055	5,578,362
Cost of Goods Sold	4,134,884	3,695,267	9,441,070	4,853,911
Research and development	0	0	0	0
Stock based compensation	57,820	30,149	114,674	116,160
Selling, General and Administrative Expenses	1,206,113	1,195,460	2,239,702	1,854,548
Loss on impairment of goodwill				0
Disinfectant Segment [Member]
Segment Reporting Information [Line Items]
Total Assets	58,173,405		58,173,405		19,831,097
Total Liabilities	29,166,709		29,166,709		1,545,217
Net Sales	5,696,004	1,738,534	10,269,114	3,685,374
Cost of Goods Sold	4,299,108	908,587	7,725,019	1,956,934
Research and development	180,293	82,049	369,503	141,363
Stock based compensation	34,188	37,800	70,364	60,086
Selling, General and Administrative Expenses	2,988,000	2,033,074	5,871,973	3,818,284
Loss on impairment of goodwill				1,138,203
Corporate Segment [Member]
Segment Reporting Information [Line Items]
Total Assets	3,788,809		3,788,809		3,257,502
Total Liabilities	9,521,558		9,521,558		$ 3,281,672
Net Sales	0	0	0	0
Cost of Goods Sold	0	0	0	0
Research and development	0	0	0	0
Stock based compensation	102,672	44,502	199,771	224,204
Selling, General and Administrative Expenses	$ 533,326	$ 690,230	$ 1,690,014	1,059,159
Loss on impairment of goodwill				$ 0

PROFORMA FINANCIAL STATEMENTS_3

PROFORMA FINANCIAL STATEMENTS (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Restructuring Cost and Reserve [Line Items]
Net Sales	$ 10,843,686	$ 5,907,646	$ 21,498,169	$ 9,263,736
Net Loss	(2,991,224)	(2,888,655)	(7,533,063)	(4,538,527)
Net Loss attributable to common stockholders:
Net Loss attributable to common stockholders	(407,231)	(362,250)	(769,481)	(724,500)
Akida K E S Visionmark Sci Air P U R O And L E D [Member]
Restructuring Cost and Reserve [Line Items]
Net Sales	10,843,686	9,207,473	22,017,102	18,622,909
Net Loss	(2,991,224)	(2,845,863)	(7,981,747)	(5,623,491)
Net Loss attributable to common stockholders:
Dividends to preferred shareholders	(407,231)	(362,250)	(769,481)	(724,500)
Net Loss attributable to common stockholders	$ (3,398,455)	$ (3,208,113)	$ (8,751,228)	$ (6,347,991)
Basic Loss Per Common Share	$ 0.77	$ 0.79	$ 2.16	$ 1.54
Diluted Loss Per Common Share	$ 0.77	$ 0.79	$ 2.16	$ 1.54
Weighted Average Shares Outstanding - basic	4,434,036	4,083,076	4,060,537	4,109,956
Weighted Average Shares Outstanding - diluted	4,434,036	4,083,076	4,060,537	4,109,956