| Summary of Significant Accounting Policies | 2.
Summary of Significant Accounting Policies The
summary of significant accounting policies of Neuraxis, Inc. is presented to assist in understanding the Company’s financial statements.
The financial statements and notes are representations of the Company’s management, who is responsible for their integrity and
objectivity. These accounting policies conform to U.S. generally accepted accounting principles and have been consistently applied in
the preparation of the financial statements. Preparing
the Company’s financial statements in conformity with accounting principles generally accepted in the United States of America
(“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Basis
of Presentation The
Company’s condensed financial statements have been prepared in accordance with accounting principles generally accepted in the
United States of America (“U.S. GAAP”) and following the requirements of the U.S. Securities and Exchange Commission (“SEC”)
for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by
U.S. GAAP can be condensed or omitted. These interim financial statements have been prepared on the same basis as the Company’s
annual financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments,
which are necessary for a fair statement of the Company’s financial information. These interim results are not necessarily indicative
of the results to be expected for the year ending December 31, 2023, or any other interim period or for any other future year. These
unaudited condensed financial statements should be read in conjunction with the Company’s audited financial statements and the
notes thereto for the year ended December 31, 2022. Use
of Estimates and Critical Accounting Estimates and Assumptions The
preparation of 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 at the dates of the financial statements
and the reported amounts of revenues and expenses during the reporting periods. These
significant accounting estimates or assumptions bear the risk of change due to the fact that there are uncertainties attached to these
estimates or assumptions, and certain estimates or assumptions are difficult to measure or value. Management
bases its estimates on historical experience and on various assumptions that are believed to be reasonable in relation to the financial
statements taken as a whole under the circumstances, the results of which form the basis for making judgments about the carrying values
of assets and liabilities that are not readily apparent from other sources. Management
regularly evaluates the key factors and assumptions used to develop the estimates utilizing currently available information, changes
in facts and circumstances, historical experience, and reasonable assumptions. After such evaluations, if deemed appropriate, those estimates
are adjusted accordingly. The Company uses estimates in accounting for, among other items, revenue recognition, allowance for doubtful
accounts, stock-based compensation, income tax provisions, excess and obsolete inventory reserve, and impairment of intellectual property.
Actual results could differ from those estimates. Cash
and Cash Equivalents The
Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. The Company
did not hold any cash equivalents as of June 30, 2023 and December 31, 2022. Trade
Accounts Receivable Trade
accounts receivable are stated at the amount management expects to collect from balances outstanding at year-end. Management considers
the following factors when determining the collectability of specific customer accounts: customer creditworthiness, past transaction
history with the customer, current economic industry trends, and changes in customer payment terms. Based on management’s assessment
of the credit history with customers having outstanding balances and current relationships with them, it has concluded that realization
losses on balances outstanding at year-end will be immaterial. Interest is not charged on past due customer accounts. Allowance
for Credit Losses Trade
accounts receivable are stated net of an allowance for credit losses. We estimate allowance for credit losses by evaluating specific
accounts where information indicates our customers may have an inability to meet financial obligations, such as customer payment history,
credit worthiness and receivable amounts outstanding for an extended period beyond contractual terms. We use assumptions and judgment,
based on the best available facts and circumstances, to record an allowance to reduce the receivable to the amount expected to be collected.
The allowance for doubtful accounts was $ 15,989 31,275 7,714 3,927 21,307 29,580 Customer
Deposits Customer
deposits consists of billings, payments, and returned devices from clients in advance of revenue recognition. The Company will recognize
the customer deposits over the next year. As of June 30, 2023, and December 31, 2022, the Company had customer deposits of $ 61,317 59,174 Inventories Inventories
are valued at the lower of cost or net realizable value. Cost is determined using the weighted average method. The inventory is
comprised of finished medical devices on hand. Certain components within the devices have an expiration date that are removed from
current inventory and expensed at the date of expiration. For the six months ended June 30, 2023 there was no expired inventory, and
for the year ended December 31, 2022, there was $ 10,026 Deferred
Offering Costs Deferred
offering costs consist of costs incurred in connection with the preparation of an initial public offering. These costs, together with
the underwriting discounts and commissions, will be charged to additional paid in capital upon completion of the proposed public offering.
As of June 30, 2023 and December 31, 2022, the Company had deferred offering costs of $ 941,143 736,736 Property
and Equipment Property
and equipment are recorded at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated
useful lives of the assets. Depreciation
is calculated using the following estimated useful lives: Schedule
of Estimated Useful Lives
Classification Years
Leasehold Improvements 10 20
Machinery
and Equipment 7 10
Furniture
and Fixtures 5 10 Depreciation
expense was $ 7,589 14,817 7,830 15,725 Research
and Development Costs
for research and development are expensed as incurred. Research and development expenses consist primarily of clinical research studies,
and new product development. Intangible
Assets Intangible
assets consist of patents and a trademark. Patents are stated at their historical cost and amortized on a straight-line basis over their
expected useful lives. Capitalized patent costs, net of accumulated amortization, includes legal costs incurred for patent applications.
In accordance with ASC 350, once a patent is granted, we amortize the capitalized patent costs over the remaining life of the patent
using the straight-line method. If the patent is not granted, we write-off any capitalized patent costs at that time. The
Company entered into an agreement for a trademark related to the Company’s name on July 11, 2022. The agreement called for an initial
payment of $ 10,000 40,000 The
Company entered into an option agreement on April 12, 2023 to enter into a royalty-bearing licensing agreement to bring the optionor’s
invention to commercialization. The agreement required an initial payment of $ 1,000 We
review intangible assets for impairment annually or when events or circumstances indicate that their carrying amount may not be
recoverable. During the three and six months ended June 30, 2023 and 2022, the Company recorded no impairment charges for intangible
assets. Amortization
expense was $ 2,621 5,243 485 970 Income
Taxes The
Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in
the Company’s financial statements and tax returns. Deferred tax assets and liabilities are determined based upon the differences
between the financial statement carrying amounts, and the tax bases of existing assets and liabilities for the loss and credit carryforwards
using enacted tax rates expected to be in effect in the year in which the differences are expected to reverse. Deferred tax assets are
reduced by a valuation allowance if it is more likely than not that these assets may not be realized. The Company determines whether
a tax position will be sustained upon examination. If it is not more likely than not that a position will be sustained, none of the benefit
attributable to the position is recognized. The tax benefit to be recognized for any tax position that meets the more likely than not
recognition threshold is calculated as the largest amount that is more than 50% likely of being realized upon resolution of the contingency.
The Company accounts for interest and penalties related to uncertain tax positions as part of its provision for income taxes. Based
on the results of management’s evaluation, adoption of the rules did not have a material effect on the Company’s financial
statements. Further, no interest or penalties have been accrued or charged to expense as of June 30, 2023 and 2022 and for the six months
then ended. The
Company’s income tax returns are subject to examination by the taxing authorities until the expiration of the related statutes
of limitations on those tax returns. In general, the federal and state income tax return have a three-year statute of limitations. As
of June 30, 2023, the following tax years are subject to examination:
Jurisdiction Open
Years for Filed Returns
Federal 2020
– 2022
Various
States 2020
– 2022 Advertising
Cost Advertising
costs are expensed as incurred and amounted to $ 24,986 32,986 3,300 11,600 Derivative
Liabilities The
Company accounts for derivative financial instruments as either equity or liabilities in accordance with ASC Topic 815, Derivatives
and Hedging Warrant
Liabilities Management
evaluates all of the Company’s financial instruments, including issued Warrants to purchase its Class A common stock, to determine
if such instruments are derivatives or contain features that qualify as embedded derivatives, pursuant to ASC 480 and ASC 815-15. The
classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is reassessed
at the end of each reporting period. The
Company utilizes a Monte Carlo simulation model for warrants that have an option to convert at a variable number of shares to
compute the fair value of the derivative and to mark to market the fair value of the derivative at each balance sheet date. The
inputs utilized in the application of the Monte Carlo model included a starting stock price, an expected remaining term of each
warrant as of the valuation date, estimated volatility, drift, and a risk-free rate. The Company records the change in the fair
value of the derivative as other income or expense in the statements of operations. Fair
Value Measurements The
Company accounts for financial instruments in accordance with ASC 820, Fair Value Measurements and Disclosures (“ASC 820”).
ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy
gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and
the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC 820 are described
below:
Level
1 – Quoted prices (unadjusted) for identical unrestricted assets or liabilities in active markets that the reporting entity
has the ability to access as of the measurement date.
Level
2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities:
quoted prices in markets that are not active; or financial instruments for which all significant inputs are observable or can be
corroborated by observable market date, either directly or indirectly.
Level
3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the
assets or liabilities. These unobservable inputs reflect that reporting entity’s own assumptions about assumptions that market
participants would use in pricing the asset or liability. Level 3 assets and liabilities include financial instruments whose value
is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the
determination of fair value require significant management judgment or estimation. The
Company’s Level 1 assets/liabilities include cash, accounts receivable, accounts payable, prepaids, and other current assets. Management
believes the estimated fair value of these accounts on June 30, 2023 approximate their carrying value as reflected in the balance sheets
due to the short-term nature of these instruments or the use of market interest rates for debt instruments. The
Company’s Level 3 assets/liabilities include derivative and warrant liabilities. Inputs to determine fair value are generally unobservable
and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability.
The fair values are therefore determined using model-based techniques, including option pricing models and discounted cash flow models.
Unobservable inputs used in the models are significant to the fair values of the assets and liabilities. The
following tables provides a summary of the relevant assets and liabilities that are measured at fair value on recurring basis: Fair
Value Measurements as of June
30, 2023 Schedule
of Fair Value On a Recurring Basis Assets and Liability
Total (Level 1) (Level 2) (Level 3)
Liabilities:
Warrant liabilities $ 3,916,884 $ — $ — $ 3,916,884
Derivative liabilities $ 2,275,029 $ — $ — $ 2,275,029
Total Liabilities $ 6,191,913 $ — $ — $ 6,191,913 Fair
Value Measurements as of December
31, 2022
Total (Level 1) (Level 2) (Level 3)
Liabilities:
Warrant liabilities $ 2,234,384 $ — $ — $ 2,234,384
Derivative liabilities $ 1,735,700 $ — $ — $ 1,735,700
Total Liabilities $ 3,970,084 $ — $ — $ 3,970,084 The
following table shows the valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on
recurring basis as of June 30, 2023 and December 31, 2022: Schedule
of Unobservable Inputs for Level 3 Assets and Liabilities
As of Fair Value As of Fair Value Valuation Unobservable
June 30 2023 December 31 2022 Methodology Inputs
Warrant liabilities $ 3,916,884 $ 2,234,384 Monte Carlo model Project simulated cash flows
Derivative liabilities $ 2,275,029 $ 1,735,700 Monte Carlo model Project simulated cash flows There
were no transfers between any of the levels during the three and six months ended June 30, 2023 and year ended December 31, 2022. In
addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company’s assets and liabilities
are also subject to nonrecurring fair value measurements. Generally, assets are recorded at fair value on a nonrecurring basis as a
result of impairment charges. Basic
and Diluted Net Income (Loss) per Share Earnings
or loss per share (“EPS”) is computed by dividing net income (loss), net of preferred stock dividends, by the weighted average
number of shares of common stock outstanding during the period. Basic weighted average shares for the quarter ended June 30, 2023 includes
40,000 0.01 2,569,405 2,190,102 Basic
net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted-average number of common
shares outstanding during the period. Diluted net loss per common share is determined using the weighted-average number of common shares
outstanding during the period, adjusted for the dilutive effect of common stock equivalents. In periods when losses are reported, which
is the case for June 30, 2023 and 2022 presented in these financial statements, the weighted-average number of common shares outstanding
excludes common stock equivalents because their inclusion would be anti-dilutive. The
Company had the following potentially dilutive common stock equivalents at June 30, 2023 and 2022: Schedule
of Dilutive Common Stock Equivalents
2023 2022
Convertible Series A Preferred Stock 1,013,270 1,013,270
Convertible Series Seed Preferred Stock 230,954 230,954
Options 1,319,394 1,319,394
Pre-Funded Warrants for Convertible Series A
Preferred Stock 289,779 289,779
Warrants 854,795 154,096
Convertible Bridge Debt 1,285,877 46,029
Totals 4,994,069 3,053,522 The
following table shows the calculation of the basic and diluted net loss per share and the effect of preferred stock dividends. Schedule
of Basic and Diluted Net Loss Per Share
2023 2022 2023 2022
For the Three Months Ended For the Six Months Ended
2023 2022 2023 2022
Numerator
Net loss $ (2,235,614 ) (1,516,530 ) $ (4,409,022 ) (2,686,751 )
Preferred stock dividends (190,699 ) (190,699 ) (379,303 ) (379,303 )
Net income (loss) available to common stockholders (2,426,313 ) (1,707,229 ) (4,788,325 ) (3,066,054 )
Denominator
Weighted-average shares of common stock
outstanding - basic and diluted 2,003,322 1,970,054 2,003,322 1,970,054
Basic and diluted net loss per share $ (1.21 ) $ (0.87 ) $ (2.39 ) $ (1.56 ) Stock-Based
Compensation The
Company accounts for all stock-based payments and awards under the fair value-based method. The Company recognizes its stock-based compensation
expense using the straight-line method. Compensation cost is not adjusted for estimated forfeitures, but instead is adjusted upon an
actual forfeiture of a stock option. The
Company accounts for the granting of stock options to employees and non-employees using the fair value method whereby all awards are
measured at fair value on the date of the grant. The fair value of all employee stock options is expensed over the requisite service
period with a corresponding increase to additional paid-in capital. Upon exercise of stock options, the consideration paid by the option
holder is recorded in additional paid-in capital, while the par value of the shares received is reclassified from additional paid in
capital to common stock. Stock-based
payments to non-employees are measured based on the fair value of the equity instrument issued. Compensation expense for non-employee
stock awards is recognized over the requisite service period following the measurement of the fair value on the grant date. The
Company uses the Black-Scholes option-pricing model to calculate the fair value of stock options. The use of the Black-Scholes option-pricing
model requires management to make assumptions with respect to the expected term of the option, the expected volatility of the common
stock consistent with the expected term of the option, risk-free interest rates, the value of the common stock and expected dividend
yield of the common stock. Changes in these assumptions can materially affect the fair value estimate. Revenue
Recognition Neuraxis,
Inc. specializes in the development, production, and sale of medical neuromodulation devices to healthcare providers primarily located
in the United States. Patented and trademarked neuromodulation devices is the Company’s major product line. Products are generally
transferred at a point in time (rather than over time). Essentially all the Company’s revenue is generated from purchase order
contracts. In
accordance with FASB’s ASC 606, Revenue from Contracts with Customers, (“ASC 606”), the Company recognizes revenue
when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the Company expects
to be entitled in exchange for those goods or services, in an amount that reflects the consideration which the Company expects to be
entitled in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within
the scope of ASC 606, it performs the following five steps:
(i) identify
the contract(s) with a customer;
(ii) identify
the performance obligations in the contract;
(iii) determine
the transaction price;
(iv) allocate
the transaction price to the performance obligations in the contract; and
(v) recognize
revenue when (or as) the entity satisfies a performance obligation. The
Company applies the five-step model to contracts when it determines that it is probable it will collect substantially all of the consideration
it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, 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 then recognizes as revenue the
amount of the transaction price, after consideration of variability and constraints, if any, that is allocated to the respective performance
obligation when the performance obligation is satisfied. The
Company estimates credit losses on accounts receivable by estimating expected credit losses over the contractual term of the receivable
using a discounted cash flow method. When developing this estimate of expected credit losses, the Company considers all available information
(past, current, and future) relevant to assessing the collectability of cash flows. The
Company offers a Patient Assistance Program for patients without insurance coverage for IB-Stim. This program extends potential self-pay
discounts for IB-Stim devices, based upon household income and size. Also,
the Company offers providers an opt-in program to address adequate insurance claim payments on IB-Stim devices. This program may extend
a rebate or invoice credit where the insurance payment and patient responsibility (i.e., deductible, co-payment, and/or co-insurance
amounts required by the Payer) are less than the acquisition cost of the IB-Stim device. The Company recognizes revenue at such a time
that collection of the amount due is assured. The
following table disaggregates the Company’s revenue based on the customer’s location by state for the three months ended June
30: Schedule
of Disaggregation of Revenue
2023 2022
California $ 162,700 Wisconsin $ 166,640
Wisconsin 87,600 Ohio 122,600
Illinois 53,105 California 115,930
Florida 52,580 Florida 97,815
Missouri 45,020 Missouri 33,460
All other states 245,016 All other states 146,136
$ 646,021 $ 682,581 The following table disaggregates the Company’s revenue based on the customer’s location by state for
the six months ended June 30:
2023 2022
California $ 375,320 Wisconsin $ 433,620
Wisconsin 198,640 Ohio 252,270
Ohio 149,300 California 192,905
Florida 97,600 Florida 107,375
Missouri 94,430 Missouri 81,260
All other states 535,841 All other states 385,418
$ 1,451,131 $ 1,452,848 The
following economic factors affect the nature, amount, timing, and uncertainty of the Company’s revenue and cash flows as indicated: Type
of customer: Geographical
location of customers: Type
of contract: The
opening and closing balances of trade receivables, contract assets, and contract liabilities from contracts with customers are as follows: Schedule
of Trade Receivables Contract Assets and Contract Liabilities
Trade Receivables Contract Assets Contract Liabilities
Balance 1/1/2022 $ 115,301 $ 0 $ 0
Balance 12/31/22 and 1/1/2023 $ 174,399 $ 0 $ 0
Balance 6/30/2023 $ 237,170 $ 0 $ 0 Company’s
Performance Obligations with Customers: Timing
of Satisfaction The
Company typically satisfies its performance obligations as the goods are delivered. Goods
that are shipped to customers are typically shipped FOB shipping point with freight prepaid by the Company. As such, ownership of goods
in transit transfer to the customer when shipped and the customer bears the associated risks (e.g., loss, damage, delay). In some cases,
a customer will take delivery directly from the Company’s inventory (i.e., consigned inventory), at which point ownership and the
associated risks pass to the customer at that time. Shipping
and handling costs are recorded as general and administrative expenses in the Statement of Operations. Significant
Payment Terms Payment
for goods sold by the Company is typically due after an invoice is sent to the customer, within 30 days. However, other payment terms
are frequently negotiated with customers ranging from due upon receipt to due within 90 days. Some payment terms may call for payment
only after the healthcare provider receives their insurance reimbursement. Invoices for goods are typically sent to customers within
three calendar days of shipment. The Company does not offer discounts if the customer pays some or all of an invoiced amount prior to
the due date. None
of the Company’s contracts have a significant financing component. Nature Medical
devices that the Company contracts to sell and transfer to customers are manufactured by one specific third-party manufacturer. The manufacturer
is located within the state of Indiana. In no case does the Company act as an agent (i.e., the Company does not provide a service of
arranging for another party to transfer goods to the customer). Returns,
Refunds, etc. Orders
may not be cancelled after shipment. Customers may return devices within 10 days of delivery if the goods are found to be defective,
nonconforming, or otherwise do not meet the stated technical specifications. At the option of the customer, the Company shall either:
● Refund
the price paid for any defective or nonconforming products
● Supply
and deliver to the customer replacement conforming products
● Reimburse
the customer for the cost of repairing any defective or nonconforming products At
the time revenue is recognized, the Company estimates expected returns and excludes those amounts from revenue. The Company also maintains
appropriate accounts to reflect the effects of expected returns on the Company’s financial position and periodically adjusts those
accounts to reflect its actual return experience. Historically, returns have been immaterial, and the Company currently does not provide
a provision for this liability. Warranties In
most cases, goods that customers purchase from the Company are covered by manufacturers’ warranties. The Company does not sell
warranties separately. The
manufacturer guarantees the product for the period up to the expiration date printed on the device’s label or twelve months from
the date of purchase, whichever comes first. The guarantee applies to flaws of material and workmanship. The Company’s warranties
provide customers with assurance that purchased devices comply with published specifications, inspection standards, and workmanship.
At the time revenue is recognized, the Company estimates the cost of expected future warranty claims but does not exclude any amounts
from revenue. The Company maintains appropriate accounts to reflect the effects of expected future warranty claims on the Company’s
financial position and periodically adjusts those accounts to reflect its actual warranty claim experience. Historically, warranty claims
have been immaterial, and the Company currently does not provide a provision for this liability. The
Company typically satisfies its performance obligations for goods at a point in time. In most cases, goods are shipped by common carrier
to customers under “FOB Shipping Point” terms. As such, customers typically obtain control of the goods upon shipment. The
Company’s management exercises judgment in determining when performance obligations for goods have been satisfied. In making such
judgments, management typically relies on shipping information obtained from common carriers to evaluate when the customer has obtained
control of the goods. The
Company’s contracts with customers typically do not involve variable consideration. The information that the Company uses to determine
the transaction price for a contract is similar to the information that the Company’s management uses in establishing the prices
of goods to be sold. Leases Effective
January 1, 2021, the Company adopted Accounting Standards Updated (“ASU”) No. 2016-02, Leases (Topic 842) Operating
lease liabilities and their corresponding right-of-use assets are initially recorded based on the present value of lease payments over
the expected remaining lease term. Certain adjustments to the right-of-use asset may be required for items such as incentives received.
The interest rate implicit in lease contracts is typically not readily determinable. As a result, the Company utilizes its incremental
borrowing rate to discount lease payments, which reflects the fixed rate at which the Company could borrow on a collateralized basis
the amount of the lease payments in the same currency, for a similar term, in a similar economic environment. Prospectively, the Company
will adjust the right-of-use assets for straight-line rent expense, or any incentives received and remeasure the lease liability at the
net present value using the same incremental borrowing rate that was in effect as of the lease commencement or transition date. The Company
has elected not to recognize leases with an original term of one year or less on the balance sheet. The Company typically only includes
an initial lease term in its assessment of a lease arrangement. Options to renew a lease are not included in the Company’s assessment
unless there is reasonable certainty that the Company will renew. Assumptions
made by the Company at the commencement date are re-evaluated upon occurrence of certain events, including a lease modification. A lease
modification results in a separate contract when the modification grants the lessee an additional right of use not included in the original
lease and when lease payments increase commensurate with the standalone price for the additional right of use. When a lease modification
results in a separate contract, it is accounted for in the same manner as a new lease. Entities
may elect not to separate lease and non-lease components. The Company has elected to account for lease and non-lease components together
as a single lease component for all underlying assets and allocate all the contract consideration to the lease component only. Impairment
of Long-Lived Assets Long-lived
assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may
not be recoverable. If events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable,
we compare the carrying amount of the asset group to future undiscounted net cash flows, excluding interest costs, expected to be generated
by the asset group and their ultimate disposition. If the sum of the undiscounted cash flows is less than the carrying value, the impairment
to be recognized is measured by the amount by which the carrying amount of the asset group exceeds the fair value of the asset group.
Assets to be disposed of are reported at the lower of the carrying amount or fair value, less costs to sell. Concentrations
of Credit Risk The
Company’s business activity consists of the sale of medical neuromodulation devices to doctors, clinics, and hospitals across the
country. Receivables
consist of unsecured amounts due from customers. As of June 30, 2023, accounts receivable from two customers with balances due in excess
of 10 13 13 10 23 15 12 The
table below sets forth the Company’s customers that accounted for greater than 10% of its revenues for the three months ended
June 30, 2023 and 2022, respectively. Schedule
of Customers Accounted Revenues
2023 Percentage of Sales 2022 Percentage of Sales
Hospital A $ 95,200 15 % $ 131,700 19 %
Hospital B 8,900 1 % 120,800 17 %
Hospital C 138,400 21 % 114,730 16 %
$ 242,500 37 % $ 367,230 52 % The table below sets forth the Company’ |
