Andrea Electronics (ANDR) 10-Q 14 Nov 22 2022 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2022	Nov. 08, 2022
Document Information [Line Items]
Entity Central Index Key	0000006494
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	001-04324
Entity Registrant Name	ANDREA ELECTRONICS CORPORATION
Entity Incorporation, State or Country Code	NY
Entity Tax Identification Number	11-0482020
Entity Address, Address Line One	620 Johnson Avenue Suite 1-B
Entity Address, City or Town	Bohemia
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	11716
City Area Code	631
Local Phone Number	719-1800
Title of 12(g) Security	Common Stock, par value $0.01 per share
Trading Symbol	ANDR
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		68,104,957

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
ASSETS
Cash	$ 145,444	$ 148,349
Accounts receivable, net of allowance for doubtful accounts of $4,789	308,018	236,338
Inventories, net	209,277	259,007
Prepaid expenses and other current assets	35,328	99,163
Total current assets	698,067	742,857
Property and equipment, net	39,161	39,511
Intangible assets, net	167,819	194,200
Other assets, net	129,835	161,876
Total assets	1,034,882	1,138,444
LIABILITIES AND SHAREHOLDER'S DEFICIT
Trade accounts payable and other current liabilities	417,328	704,363
Current portion of long-term debt	6,579	4,386
Accrued Series C Convertible Preferred Stock Dividends	19,168	19,168
Total current liabilities	443,075	727,917
Operating lease liabilities payable	91,080	119,886
Long-term debt	2,659,887	2,451,257
Total liabilities	3,194,042	3,299,060
Commitments and contingencies
Shareholders’ deficit :
Preferred stock, $0.01 par value; authorized: 2,497,500 shares; none issued and outstanding	0	0
Common stock, $0.01 par value; authorized: 200,000,000 shares; issued and outstanding: 68,104,957 shares	681,050	681,050
Additional paid-in capital	78,086,910	78,086,910
Accumulated deficit	(80,936,192)	(80,937,648)
Total shareholders’ deficit	(2,159,160)	(2,160,616)
Total liabilities and shareholders’ deficit	1,034,882	1,138,444
Series C Convertible Preferred Stock [Member]
Shareholders’ deficit :
Preferred stock, $0.01 par value; authorized: 2,497,500 shares; none issued and outstanding	0	0
Series D Convertible Preferred Stock [Member]
Shareholders’ deficit :
Preferred stock, $0.01 par value; authorized: 2,497,500 shares; none issued and outstanding	$ 9,072	$ 9,072

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Current Period Unaudited)-parentheticals (Parentheticals) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Accounts Receivable, Allowance for Credit Loss, Current	$ 4,789	$ 4,789
Preferred Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized (in shares)	2,497,500	2,497,500
Preferred Stock, Shares Outstanding, Ending Balance	0	0
Preferred Stock, Shares Issued (in shares)	0	0
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	200,000,000	200,000,000
Common Stock, Shares, Issued	68,104,957	68,104,957
Common Stock, Shares, Outstanding, Ending Balance (in shares)	68,104,957	68,104,957
Series C Convertible Preferred Stock [Member]
Preferred Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized (in shares)	1,500	1,500
Preferred Stock, Shares Outstanding, Ending Balance	11.469249	11.500000
Preferred Stock, Shares Issued (in shares)	11.500000	11.500000
Preferred Stock, Liquidation Preference, Value	$ 114,692	$ 114,692
Series D Convertible Preferred Stock [Member]
Preferred Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized (in shares)	2,500,000	2,500,000
Preferred Stock, Shares Outstanding, Ending Balance	907,144	907,144
Preferred Stock, Shares Issued (in shares)	907,144	907,144
Preferred Stock, Liquidation Preference, Value	$ 907,144	$ 907,144

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ / shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenues
Total revenues	$ 607,508	$ 448,430	$ 1,710,231	$ 1,265,509
Cost of product revenues	188,018	119,001	509,526	326,779
Gross margin	419,490	329,429	1,200,705	938,730
Patent monetization expenses	39,166	38,400	119,304	115,924
Research and development expenses	104,800	143,715	346,633	428,095
General, administrative and selling expenses	262,761	260,062	805,647	784,895
Operating income (loss)	12,763	(112,748)	(70,879)	(390,184)
Gain from forgiveness of PPP Loans and related interest	0	143,618	0	295,346
Income from Employee Retention Tax Credits	0	0	140,137	0
Interest expense, net	(28,037)	(18,541)	(66,534)	(54,682)
(Loss) income before provision for income taxes	(15,274)	12,329	2,724	(149,520)
Provision for income taxes	0	0	1,268	585
Net (loss) income	$ (15,274)	$ 12,329	$ 1,456	$ (150,105)
Basic weighted average shares (in shares)	68,104,957	68,104,957	68,104,957	68,104,957
Basic net (loss) income per share (in dollars per share)	$ 0		$ 0	$ 0
Diluted weighted average shares (in shares)	68,104,957	72,258,269	72,258,269	68,104,957
Diluted net (loss) income per share (in dollars per share)	$ 0		$ 0	$ 0
Product [Member]
Revenues
Total revenues	$ 606,684	$ 437,287	$ 1,701,239	$ 1,244,390
License and Service [Member]
Revenues
Total revenues	$ 824	$ 11,143	$ 8,992	$ 21,119

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Shareholders' Deficit (Unaudited) - USD ($)	Preferred Stock [Member] Series C Convertible Preferred Stock [Member]	Preferred Stock [Member] Series D Convertible Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance (in shares) at Dec. 31, 2020	11.469249	907,144	68,104,957
Balance at Dec. 31, 2020	$ 0	$ 9,072	$ 681,050	$ 78,086,910	$ (80,563,852)	$ (1,786,820)
Net income loss	$ 0	$ 0	$ 0	0	(3,923)	(3,923)
Balance (in shares) at Mar. 31, 2021	11.469249	907,144	68,104,957
Balance at Mar. 31, 2021	$ 0	$ 9,072	$ 681,050	78,086,910	(80,567,775)	(1,790,743)
Balance (in shares) at Dec. 31, 2020	11.469249	907,144	68,104,957
Balance at Dec. 31, 2020	$ 0	$ 9,072	$ 681,050	78,086,910	(80,563,852)	(1,786,820)
Net income loss						(150,105)
Balance (in shares) at Sep. 30, 2021	11.469249	907,144	68,104,957
Balance at Sep. 30, 2021	$ 0	$ 9,072	$ 681,050	78,086,910	(80,713,957)	(1,936,925)
Balance (in shares) at Mar. 31, 2021	11.469249	907,144	68,104,957
Balance at Mar. 31, 2021	$ 0	$ 9,072	$ 681,050	78,086,910	(80,567,775)	(1,790,743)
Net income loss	$ 0	$ 0	$ 0	0	(158,511)	(158,511)
Balance (in shares) at Jun. 30, 2021	11.469249	907,144	68,104,957
Balance at Jun. 30, 2021	$ 0	$ 9,072	$ 681,050	78,086,910	(80,726,286)	(1,949,254)
Net income loss	$ 0	$ 0	$ 0	0	12,329	12,329
Balance (in shares) at Sep. 30, 2021	11.469249	907,144	68,104,957
Balance at Sep. 30, 2021	$ 0	$ 9,072	$ 681,050	78,086,910	(80,713,957)	(1,936,925)
Balance (in shares) at Dec. 31, 2021	11.469249	907,144	68,104,957
Balance at Dec. 31, 2021	$ 0	$ 9,072	$ 681,050	78,086,910	(80,937,648)	(2,160,616)
Net income loss	$ 0	$ 0	$ 0	0	(92,805)	(92,805)
Balance (in shares) at Mar. 31, 2022	11.469249	907,144	68,104,957
Balance at Mar. 31, 2022	$ 0	$ 9,072	$ 681,050	78,086,910	(81,030,453)	(2,253,421)
Balance (in shares) at Dec. 31, 2021	11.469249	907,144	68,104,957
Balance at Dec. 31, 2021	$ 0	$ 9,072	$ 681,050	78,086,910	(80,937,648)	(2,160,616)
Net income loss						1,456
Balance (in shares) at Sep. 30, 2022	11.469249	907,144	68,104,957
Balance at Sep. 30, 2022	$ 0	$ 9,072	$ 681,050	78,086,910	(80,936,192)	(2,159,160)
Balance (in shares) at Mar. 31, 2022	11.469249	907,144	68,104,957
Balance at Mar. 31, 2022	$ 0	$ 9,072	$ 681,050	78,086,910	(81,030,453)	(2,253,421)
Net income loss	$ 0	$ 0	$ 0	0	109,535	109,535
Balance (in shares) at Jun. 30, 2022	11.469249	907,144	68,104,957
Balance at Jun. 30, 2022	$ 0	$ 9,072	$ 681,050	78,086,910	(80,920,918)	(2,143,886)
Net income loss	$ 0	$ 0	$ 0	0	(15,274)	(15,274)
Balance (in shares) at Sep. 30, 2022	11.469249	907,144	68,104,957
Balance at Sep. 30, 2022	$ 0	$ 9,072	$ 681,050	$ 78,086,910	$ (80,936,192)	$ (2,159,160)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended				9 Months Ended		12 Months Ended
	Sep. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Cash flows from operating activities:
Net income loss	$ (15,274)	$ (92,805)	$ 12,329	$ (3,923)	$ 1,456	$ (150,105)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization					37,210	27,846
Forgiveness of PPP Loans and related interest	0		(143,618)		0	(295,346)
Inventory net realizable adjustment					(9,045)	21,842
Provision for income tax withholding					1,268	585
Amortization of right-of-use assets					32,041	35,349
Deferred interest on PPP Loans and SBA Loan, net					3,461	3,530
PIK interest, net					62,362	49,844
Change in:
Accounts receivable					(72,948)	(102,739)
Inventories					58,775	(137,853)
Prepaid expenses and other current assets					63,835	44,021
Trade accounts payable and other current liabilities and operating lease liabilities payable					(315,841)	129,888
Net cash used in operating activities					(137,426)	(373,138)
Cash flows from investing activities:
Purchases of property and equipment			(8,495)		(9,803)	(14,006)
Payments for patents and trademarks	(136)				(676)	(2,609)
Net cash used in investing activities					(10,479)	(16,615)
Cash flows from financing activities:
Proceeds from long-term notes					145,000	140,000
Net cash provided by financing activities					145,000	282,777
Net decrease in cash					(2,905)	(106,976)
Cash, beginning of period		$ 148,349		$ 362,730	148,349	362,730	$ 362,730
Cash, end of period	$ 145,444		$ 255,754		145,444	255,754	$ 148,349
Supplemental disclosures of cash flow information:
Income Taxes					1,402	639
Interest					731	1,462
Long-term Debt Excluding PPP Loan [Member]
Cash flows from financing activities:
Proceeds from PPP Loans					$ 0	$ 142,777

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation	9 Months Ended
	Sep. 30, 2022
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	Note 1. Basis of Presentation Basis of Presentation These unaudited condensed consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In addition, the December 31, 2021 balance sheet data was derived from the audited consolidated financial statements but does not include all disclosures required by GAAP. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The results of operations of any interim period are not necessarily indicative of the results of operations to be expected for any other interim period or for the fiscal year. These unaudited condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the fiscal year ended December 31, 2021, included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, filed with the Securities and Exchange Commission (the “SEC”) on March 31, 2022. The accounting policies used in preparing these unaudited condensed consolidated interim financial statements are consistent with those described in December 31, 2021, audited consolidated financial statements. Liquidity The global economy, including the impact from the COVID-19 global pandemic (and new variants of COVID-19), continues to evolve. The Company continues to monitor the global economy and its impact on operations, financial position, cash flows, inventory (including supply chain related impacts), purchasing trends, customer payments, and the industry in general, in addition to the impact on its employees. Due to the fluidity of this situation, the magnitude and duration of such impacts on the Company's operations and liquidity is uncertain and cannot be determined as of the date of this report. In 2021 and 2022, the Company saw an increase in component costs due to supply chain issues related to COVID-19 as well as general economic conditions and global issues such as the conflict between Russia and Ukraine, which may continue into the future with additional ramifications to our business. The Company’s operating income was $12,763 for the three months ended September 30, 2022 and operating loss was $70,879 for the nine months ended September 30. 2022. As part of the evaluation, management considered the Company’s cash balance of $145,444 and working capital of $254,992 as of September 30, 2022, as well as the Company’s projected revenues and expenses for the next twelve months. If the Company is not successful in achieving its projected revenues and expenses, which is dependent on the demand of the customers disclosed in Note 2 Concentration of Credit Risk, it may need to seek other sources of revenue, areas of further expense reduction or additional funding from other sources such as debt or equity raising; however, there is no assurance that the Company would be successful in a debt or equity raise or that such funding would be on terms that it would find acceptable.

Note 2 - Summary of Significant

Note 2 - Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2022
Notes to Financial Statements
Significant Accounting Policies [Text Block]	Note 2. Summary of Significant Accounting Policies Income (loss) Per Share Securities that could potentially dilute basic earnings per share (“EPS”) in the future that were not included in the computation of the diluted EPS because to do so would have been anti-dilutive for the periods presented, consisted of the following: For the Three Months Ended For the Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Total potentially dilutive common shares as of: Stock options to purchase common stock (Note 8) 6,301,500 6,301,500 6,301,500 6,301,500 Series C Convertible Preferred Stock and related accrued dividends (Note 5) - 524,736 524,736 - Series D Convertible Preferred Stock (Note 6) - 3,628,576 3,628,576 - Total potentially dilutive common shares 6,301,500 10,454,812 10,454,812 6,301,500 Numerator: Net (loss) income $ (15,274 ) $ 12,329 $ 1,456 $ (150,105 ) Denominator: Basic Weighted average shares 68,104,957 68,104,957 68,104,957 68,104,957 Effect of dilutive securities: Series C Convertible Preferred Stock and related accrued dividends (Note 5) - 524,736 524,736 - Series D Convertible Preferred Stock (Note 6) - 3,628,576 3,628,576 - Denominator for diluted (loss) income per share-adjusted weighted average shares after assumed conversions 68,104,957 72,258,269 72,258,269 68,104,957 Cash Concentration of Credit Risk For the Three Months Ended For the Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Customer A 27 % 29 % 20 % 24 % Customer B 18 % 17 % 15 % 20 % Customer C 15 % * 13 % 12 % Customer D 13 % * 11 % 10 % Customer E 14 % 12 % 17 % * Customer F * * * 12 % * Amounts are less than 10% As of September 30, 2022, Customers A, B, C, D, and F accounted for approximately 15%, 25%, 18%, 28%, and 10%, respectively, of accounts receivable. As of December 31, 2021, Customers A, B, C, and E accounted for approximately 29%, 22%, 16%, and 17%, respectively, of accounts receivable. Allowance for Doubtful Accounts Inventories September 30, 2022 December 31, 2021 Raw materials $ 54,725 $ 102,444 Finished goods 154,552 156,563 $ 209,277 $ 259,007 Long-Lived Assets Trade accounts payable and other current liabilities September 30, 2022 December 31, 2021 Trade accounts payable $ 93,227 $ 162,829 Payroll and related expenses 22,537 42,472 Patent monetization expenses 133,347 162,990 Current operating lease liabilities 38,012 39,909 Deferred revenue 12,790 123,451 Professional and other service fees 117,415 172,712 Total trade accounts payable and other current liabilities $ 417,328 $ 704,363 Revenue Recognition 1. Identify the contract with a customer. 2. Identify the performance obligations in the contract. 3. Determine the transaction price of the contract. 4. Allocate the transaction price to the performance obligations in the contract. 5. Recognize revenue when the performance obligations are met or delivered. This approach includes the evaluation of sales terms, performance obligations, variable consideration, and costs to obtain and fulfill contracts. The Company disaggregates its revenues into three contract types: (1) product revenues, (2) service related revenues and (3) license revenues and then further disaggregates its revenues by operating segment. Generally, product revenue is comprised of microphones and microphone connectivity product revenues. Product revenue is recognized when the Company satisfies its performance obligation by transferring promised goods to a customer. Product revenue is measured at the transaction price, which is based on the amount of consideration that the Company expects to receive in exchange for transferring the promised goods to the customer. Contracts with customers are comprised of customer purchase orders, invoices and written contracts. Customer product orders are fulfilled at a point in time and not over a period of time. The Company does not have arrangements for returns from customers and does not have any future obligations directly or indirectly related to product resale by customers. The Company has no sales incentive programs. Service related and licensing revenues are recognized based on the terms and conditions of individual contracts using the five-step approach listed above, which identifies performance obligations and transaction price. Typically, Andrea receives licensing reports from its licensees approximately one quarter in arrears due to the fact that its agreements require customers to report revenues between 30 to 60 days after the end of the quarter. Under this accounting policy, the licensing revenues reported are not based upon estimates. In addition, service related revenues, which are short-term in nature, are generally performed on a time-and-material basis under separate service arrangements and the corresponding revenue is generally recognized as the services are performed. During the three months ending September 30, 2022 and 2021 and the nine months ending September 30, 2022, there were no service related revenues. During the nine months ending September 30, 2021, there was approximately $ 4,000 Income Taxes Use of Estimates Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. The most significant estimates are used in accounting for allowances for bad debts, inventory valuation and obsolescence, deferred income taxes valuation allowance, expected realizable values for assets (primarily intangible assets), contingencies, revenue recognition and liquidity. Estimates and assumptions are periodically reviewed and the effects of any material revisions are reflected in the consolidated financial statements in the period that they are determined to be necessary. Actual results could differ from those estimates and assumptions. Subsequent Events Reclassifications

Note 3 - Revenue Sharing, Note

Note 3 - Revenue Sharing, Note Purchase Agreement and Long-term Debt	9 Months Ended
	Sep. 30, 2022
Notes to Financial Statements
Revenue Sharing, Note Purchase Agreement and Long-term Debt [Text Block]	Note 3. Revenue Sharing, Note Purchase Agreement and Long-Term Debt On December 24, 2014, the Company entered into an Amended and Restated Revenue Sharing and Note Purchase Agreement (the “Revenue Sharing Agreement”) with AND34 Funding LLC (“AND34”) (acting as the “Revenue Participants,” the “Note Purchasers,” and the “Collateral Agent”), which was retroactively effective as of February 14, 2014. Under the Revenue Sharing Agreement, the Company granted AND34 a perpetual predetermined share in the rights of the Company’s specified future revenues from patents (“Monetization Revenues”) owned by the Company (the “Patents”) in exchange for $3,500,000, which was fully repaid as of September 30, 2016 and issued certain notes containing the features described in the Revenue Sharing Agreement (the “Notes”), which were repaid in 2016. In 2016, 2017, 2019, 2021 and 2022, the parties executed and amended a rider to the Revenue Sharing Agreement (the “Rider”) pursuant to which Andrea agreed to issue and sell to AND34 additional Notes up to an aggregate amount of $11,500,000 (the “Additional Notes”), or such greater amount as AND34 may agree to in its sole discretion. The Additional Notes and related payment -in-kind (“PIK”) interest have a maturity date of January 20, 2024. The proceeds of the Additional Notes will be used to pay certain expenses related to the Revenue Sharing Agreement and expenses of the Company incurred in pursuing patent monetization. As of December 31, 2021, there was $2,024,422 of Additional Notes principal and $276,770 PIK Interest outstanding. As of September 30, 2022, there was $2,169,422 of Additional Notes principal and $339,132 PIK Interest outstanding. Any Monetization Revenues will first be applied 100% to the payment of accrued and unpaid interest on, and then to repay outstanding principal of, the Additional Notes. After the Additional Notes are paid in full, the Monetization Revenues will be allocated amongst the Revenue Participants and the Company in accordance with certain predetermined percentages (based on aggregate amounts received by the Revenue Participants) ranging from 50% to ultimately 20% to the Revenue Participants. Monetization Revenues is defined in the Revenue Sharing Agreement to include, but is not limited to, amounts that the Company receives from third parties with respect to the Patents, which may include new license revenues, certain product revenue, payments and judgments. Monetization Revenues and associated expenses are included in the Company’s Patent Monetization Segment (See Note 9). The Revenue Sharing Agreement contains many stipulations between the parties regarding the handling of various matters related to the monetization of the Patents including tax treatment. Following an Event of Default under the Revenue Sharing Agreement, the Note Purchasers and Revenue Participants may proceed to protect and enforce their rights by suit or other appropriate proceeding, either for specific performance or the exercise of any power granted under the Revenue Sharing Agreement or ancillary documents including the Additional Notes.

Note 4 - Long-term Debt

Note 4 - Long-term Debt	9 Months Ended
	Sep. 30, 2022
Notes to Financial Statements
Long-Term Debt [Text Block]	Note 4. Long-Term Debt The unpaid principal amount of the Additional Notes (including any PIK Interest) has an interest rate equal to LIBOR (as defined in the Revenue Sharing Agreement) plus 2% per annum (totaling 4.25% and 3.00% at September 30, 2022 and December 31, 2021, respectively); provided that upon and during the continuance of an Event of Default (as set forth in the Revenue Sharing Agreement), the interest rate will increase an additional 2% per annum. Pursuant to the Second Amendment to the Revenue Sharing Agreement, upon the occurrence of certain benchmark transition events, such LIBOR benchmark may be replaced with an alternative benchmark as described therein. Interest may be paid in cash at the option of the Company and otherwise shall be paid by increasing the principal amount of the Additional Notes by the amount of such interest (“PIK Interest”). The Company may prepay the Additional Notes from time to time in whole or in part, without penalty or premium. During the nine months ended September 30, 2022 and year ended December 31, 2021, $145,000 and $140,000, respectively, of Additional Notes were issued to AND34. As of September 30, 2022, the remaining amount of Additional Notes that could be issued was $3,415,000, subject to certain restrictions and limitations outlined in the Revenue Sharing Agreement. Amounts reported as current maturities of long-term debt reflect amounts expected to be paid in the next twelve months. On July 13, 2020, the Company entered into the SBA Loan pursuant to which the Company received loan proceeds of $150,000. The SBA Loan was made under, and is subject to, the terms and conditions of, the Economic Injury Disaster Loan Program, which was a program expanded for COVID-19 relief under the CARES Act and is administered by the SBA. The term of the SBA Loan is thirty Long-term debt September 30, 2022 December 31, 2021 Additional Notes $ 2,169,422 $ 2,024,422 PIK interest on Additional Notes 339,132 276,770 SBA Loan with accrued interest 157,912 154,451 Total long-term debt 2,666,466 2,455,643 Less: current maturities of long-term debt (6,579 ) (4,386 ) Long-term debt, net of current maturities $ 2,659,887 $ 2,451,257 On both May 8, 2020 and February 5, 2021, the Company entered into a Paycheck Protection Program (“PPP”) Loan, a SBA Note and Loan Agreement with HSBC Bank USA, N.A. pursuant to which the Company received loan proceeds of $142,775 (the “PPP Loan First Draw”) and $142,777 (the “PPP Loan Second Draw” and together with the PPP Loan First Draw, the “PPP Loans”), respectively. While applying for the PPP Loan First Draw, the SBA advanced $8,000 of loan proceeds to the Company on April 30, 2020. Under the terms of the CARES Act, recipients can apply for and receive forgiveness for all or a portion of loans granted under the PPP with such forgiveness determined, subject to limitations, based on the use of loan proceeds for certain permissible purposes such as payroll costs and mortgage interest, rent or utility costs (collectively, “Qualifying Expenses”), and on the maintenance of employee and compensation levels during the eight-week period following the funding. The Company used the proceeds of both the PPP Loan First Draw and the PPP Loan Second Draw for Qualifying Expenses. In January 2021, $142,775 and $866 of accrued interest from the PPP Loan First Draw were forgiven. In April 2021, the initial advance of $8,000 and $87 of accrued interest was also forgiven. In September 2021, $142,777 and accrued interest of $841 from the PPP Loan Second Draw were forgiven.

Note 5 - Series C Convertible P

Note 5 - Series C Convertible Preferred Stock	9 Months Ended
	Sep. 30, 2022
Series C Convertible Preferred Stock [Member]
Notes to Financial Statements
Preferred Stock [Text Block]	Note 5. Series C Convertible Preferred Stock The Series C Convertible Preferred Stock had a stated value of $10,000 plus a $1,671 increase in the stated value, which sum is convertible into Andrea’s common stock at a conversion price of $0.2551. The shares of Series C Convertible Preferred Stock are subject to anti-dilution provisions, which are triggered in the event of certain stock splits, recapitalizations, or other dilutive transactions. In addition, issuances of common stock at a price below the conversion price of $0.2551, or the issuance of warrants, options, rights, or convertible securities which have an exercise price or conversion price less than that conversion price, other than for certain previously outstanding securities and certain “excluded securities” (as defined in Andrea’s certificate of amendment), require the adjustment of the conversion price to that lower price at which shares of common stock have been issued or may be acquired. In the event that Andrea issues securities in the future which have a conversion price or exercise price which varies with the market price and the terms of such variable price are more favorable than the conversion price in the Series C Convertible Preferred Stock, the purchasers may elect to substitute the more favorable variable price when making conversions of the Series C Convertible Preferred Stock. As of September 30, 2022, there were 11.469249 shares of Series C Convertible Preferred Stock outstanding, which were convertible into 524,736 shares of Andrea’s common stock and had remaining accrued dividends of $19,168.

Note 6 - Series D Convertible P

Note 6 - Series D Convertible Preferred Stock	9 Months Ended
	Sep. 30, 2022
Series D Convertible Preferred Stock [Member]
Notes to Financial Statements
Preferred Stock [Text Block]	Note 6. Series D Convertible Preferred Stock The Series D Convertible Preferred Stock is convertible into Andrea’s common stock at a conversion price of $0.25 per share. The shares of Series D Convertible Preferred Stock are also subject to anti-dilution provisions, which are triggered in the event of certain stock splits, recapitalizations, or other dilutive transactions. In addition, issuances of common stock at a price below the conversion price then in effect (currently $ 0.25 .0005 As of September 30, 2022, there were 907,144 shares of Series D Convertible Preferred Stock outstanding which were convertible into 3,628,576 shares of Andrea’s common stock.

Note 7 - Commitments and Contin

Note 7 - Commitments and Contingencies	9 Months Ended
	Sep. 30, 2022
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	Note 7. Commitments and Contingencies Operating Leases The Company accounts for leases in accordance with Topic 842. The Company’s operating lease portfolio includes corporate offices, information technology (IT) equipment, and automobiles with remaining lease terms of 1 year to 4 years. Operating lease right-of-use (“ROU”) assets are presented within other assets. The current portion of operating lease liabilities are presented within trade accounts payable and other current liabilities, and the non-current portion of operating lease liabilities are presented separately on the accompanying condensed consolidated balance sheet. Supplemental balance sheet information related to leases was as follows: September 30, 2022 December 31, 2021 ROU assets, net $ 124,585 $ 156,626 Operating lease liabilities current $ 38,012 $ 39,909 Operating lease liabilities payable non-current 91,080 119,886 Total operating lease liabilities $ 129,092 $ 159,795 Weighted-average remaining lease term (in months) 39 47 Weighted-average discount rate 3.8 % 3.8 % As of September 30, 2022, maturities of operating lease liabilities were as follows: 2022 (October 1 – December 31) $ 10,352 2023 42,389 2024 43,743 2025 40,344 Total 136,828 Less: interest (7,736 ) Total operating lease payments $ 129,092 Employee Related Agreements In August 2014, the Company entered into an employment agreement with Mr. Andrea, which was subsequently amended several times, most recently on July 31, 2022. The effective date of the original employment agreement was August 1, 2014 and it will expire on January 31, 2023, subject to renewal as approved by the Compensation Committee of the Board of Directors. Pursuant to his amended employment agreement, Mr. Andrea will receive an annual base salary of $216,000. The employment agreement provides for quarterly bonuses equal to 5% of the Company’s pre-bonus net after tax quarterly earnings for a total quarterly bonus amount not to exceed $12,500; and annual bonuses equal to 9% of the Company’s annual pre-bonus net after tax earnings in excess of $300,000 up to $3,000,000, and 3% of the Company’s annual pre-bonus adjusted net after tax earnings in excess of $3,000,000. Adjustments to net after tax earnings shall be made to remove the impact of change in recognition of accumulated deferred tax asset value and any income recognized from forgiveness of debt or tax credits received relating to the CARES Act. All bonuses shall be payable as soon as the Company’s cash flow permits. All bonus determinations or any additional bonus in excess of the above will be made in the sole discretion of the Compensation Committee. Under certain circumstances, Mr. Andrea is entitled to a change in control payment equal to twelve months of Mr. Andrea’s most recent base salary plus a pro-rated portion of Mr. Andrea's most recent annual and four quarterly bonuses paid immediately preceding the change of control, continuation of health and medical benefits for twelve months and immediate vesting of all stock options in the event of a change in control during the term of his agreement and subsequent termination of his employment within twelve months following the change of control. In the event of his termination without cause or resignation with the Company’s consent, Mr. Andrea is entitled to a severance payment equal to two months of his base salary, plus the two months pro-rated portion of his most recent annual and quarterly bonuses, payment of $12,500 (the un-paid bonus for the quarter ended September 30, 2017) and a continuation of health insurance coverage for Mr. Andrea and his dependents for 6 months. At September 30, 2022, the future minimum cash commitments under this agreement aggregate $72,000. On November 11, 2008, the Company entered into an amended and restated change in control agreement with Corisa L. Guiffre, Vice President, Chief Financial Officer and Assistant Corporate Secretary of the Company. The change in control agreement provides Ms. Guiffre with a severance benefit upon termination in connection with a change in control (as defined in the agreement). If Ms. Guiffre is terminated following a change in control, the Company will pay Ms. Guiffre a sum equal to three times Ms. Guiffre’s average annual compensation for the five preceding taxable years. All restrictions on any restricted stock will lapse immediately and incentive stock options and stock appreciation rights, if any, will become immediately exercisable in the event of a change in control of the Company. Additionally, life, medical, dental and disability coverage and payments will be continued for 36 full calendar months following the date of termination. Legal Proceedings In September 2016, the Company filed a complaint with the United States District Court for the Eastern District of New York, alleging patent infringement against Apple Inc. (“Apple”) and requesting monetary and injunctive relief (the “New York Litigation”). The New York Litigation was stayed pending final disposition of a parallel case that the Company filed against Apple with the United States International Trade Commission (“ITC”). The ITC’s final decision finding that Apple did not violate the ITC’s statute was issued on March 22, 2018. Apple informed the New York judge of this final decision on May 30, 2018. The ITC’s final decision does not affect Andrea’s right to continue prosecuting the New York Litigation. In January 2017, Apple filed four (4) petitions for inter partes review (“IPR”) of the Company’s patents asserted in the New York Litigation with the United States Patent and Trademark Office (“PTO”). The Company filed its Patent Owner’s Preliminary Response in two of these IPR proceedings on May 1, 2017. The PTO instituted the four IPR proceedings requested by Apple on July 24, 2017. The Company filed its Patent Owner’s Response in two of these IPR proceedings on November 7, 2017. Oral argument in these two IPR proceedings occurred on April 25, 2018. On July 12, 2018, the PTO issued its final written decisions in those two IPR proceedings, ruling that claims 6-9 of the Company’s U.S. Patent No. 6,363,345 remain valid and enforceable after the PTO’s review. On September 13, 2018, Apple filed its Notice of Appeal of that ruling to the United States Court of Appeals for the Federal Circuit (the “Federal Circuit”). Apple filed its Appeal Brief with the Federal Circuit on January 31, 2019. The Company filed its Response to Apple’s Appeal Brief on March 12, 2019. The Federal Circuit held an oral argument on October 1, 2019. On February 7, 2020, the Federal Circuit issued its decisions on Apple’s appeals. The Federal Circuit affirmed the PTO’s findings in one of the ongoing IPRs. In the other ongoing IPR, the Federal Circuit partly affirmed the PTO’s findings, but also partly vacated the PTO’s findings, and remanded the case back to the PTO for further proceedings. On remand of the ongoing IPR, on October 28, 2020, the PTO found that claims 6-9 of the Company’s U.S. Patent No. 6,363,345 are invalid. The Company has appealed this decision to the Federal Circuit. The Company filed its Appeal Brief with the Federal Circuit on February 26, 2021. Apple filed its Response to the Company’s Appeal Brief on May 7, 2021. The Company filed its Reply to Apple’s Response to the Company’s Appeal Brief on September 11, 2021. Oral argument before the Federal Circuit occurred on December 8, 2021. On April 22, 2022, the Federal Circuit issued its decision on the Company’s appeal, which partially affirmed the PTO’s findings, but also partially vacated the PTO’s findings, and remanded the case back to the PTO for further proceedings. The parties are now awaiting the PTO’s further decision. The New York Litigation is stayed pending the final outcome of Apple’s IPR proceedings against the Company’s U.S. Patent No. 6,363,345. Andrea intends to vigorously prosecute the New York Litigation and the ongoing IPR proceedings.

Note 8 - Stock Plans and Stock

Note 8 - Stock Plans and Stock Based Compensation	9 Months Ended
	Sep. 30, 2022
Notes to Financial Statements
Share-Based Payment Arrangement [Text Block]	Note 8. Stock Plans and Stock Based Compensation In August 2019, the Board adopted the Andrea Electronics Corporation 2019 Equity Compensation Plan (“2019 Plan”), which was subsequently approved by the shareholders on October 24, 2019. The 2019 Plan authorizes the granting of awards, the exercise of which would allow up to an aggregate of 10,000,000 shares of Andrea’s common stock to be acquired by the holders of those awards. Awards can be granted to key employees, officers, directors and consultants. No awards have been granted under the 2019 Plan. In October 2006, the Board adopted the Andrea Electronics Corporation 2006 Equity Compensation Plan (“2006 Plan”), which was subsequently approved by the shareholders. The 2006 Plan, as amended, authorized the granting of awards, the exercise of which would allow up to an aggregate of 18,000,000 shares of Andrea’s Common Stock to be acquired by the holders of those awards. Awards could be granted to key employees, officers, directors and consultants. As the 2006 Plan has expired, no further awards will be granted under the 2006 Plan. Option activity during the nine months ended September 30, 2022 is summarized as follows: Options Outstanding Options Exercisable Options Outstanding Weighted Average Exercise Price Weighted Average Fair Value Weighted Average Remaining Contractual Life (in years) Options Exercisable Weighted Average Exercise Price Weighted Average Fair Value Weighted Average Remaining Contractual Life (in years) At January 1, 2022 6,301,500 $ 0.06 $ 0.06 3.98 6,301,500 $ 0.06 $ 0.06 3.98 At September 30, 2022 6,301,500 $ 0.06 $ 0.06 3.23 6,301,500 $ 0.06 $ 0.06 3.23 During the three and nine months ended September 30, 2022, no options were granted, vested, exercised, canceled or forfeited. Based on the September 30, 2022 fair market value of the Company’s common stock of $0.04 per share, there is no aggregate intrinsic value for the 6,301,500 options outstanding and exercisable. There was no

Note 9 - Segment Information

Note 9 - Segment Information	9 Months Ended
	Sep. 30, 2022
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	Note 9. Segment Information Andrea follows the provisions of ASC 280 “Segment Reporting.” Reportable operating segments are determined based on Andrea’s management approach. The management approach, as defined by ASC 280, is based on the way that the chief operating decision-maker organizes the segments within an enterprise for making operating decisions and assessing performance. While Andrea’s results of operations are primarily reviewed on a consolidated basis, the chief operating decision-maker also manages the enterprise in two The following represents selected unaudited condensed consolidated interim financial information for Andrea’s segments for the three and nine month periods ended September 30, 2022 and 2021 and the fiscal year ended December 31, 2021. 2022 Three Month Segment Data Patent Monetization Andrea DSP Microphone and Audio Software Products 2022 Three Month Segment Data Net product revenues $ - $ 606,684 $ 606,684 License revenues 42 782 824 Operating (loss) income (70,360 ) 83,123 12,763 Depreciation and amortization 4,491 7,992 12,483 Assets 144,450 890,432 1,034,882 Total long lived assets 83,907 252,908 336,815 Payments for patents and trademarks 68 68 136 2021 Three Month Segment Data Patent Monetization Andrea DSP Microphone and Audio Software Products 2021 Three Month Segment Data Net product revenues $ - $ 437,287 $ 437,287 License revenues 93 11,050 11,143 Operating loss (83,505 ) (29,243 ) (112,748 ) Depreciation and amortization 3,834 5,715 9,549 Purchases of property and equipment - 8,495 8,495 December 31, 2021 Year End Segment Data Patent Monetization Andrea DSP Microphone and Audio Software Products 2021 Year End Segment Data Assets $ 188,717 $ 949,727 $ 1,138,444 Total long lived assets 97,100 298,487 395,587 2022 Nine Month Segment Data Patent Monetization Andrea DSP Microphone and Audio Software Products 2022 Nine Month Segment Data Net product revenues $ - $ 1,701,239 $ 1,701,239 License revenues 140 8,852 8,992 Operating (loss) income (197,375 ) 126,496 (70,879 ) Depreciation and amortization 13,531 23,679 37,210 Purchases of property and equipment - 9,803 9,803 Payments for patents and trademarks 338 338 676 2021 Nine Month Segment Data Patent Monetization Andrea DSP Microphone and Audio Software Products 2021 Nine Month Segment Data Net product revenues $ - $ 1,244,390 $ 1,244,390 Service related revenues - 3,840 3,840 License revenues 250 17,029 17,279 Operating loss (249,948 ) (140,236 ) (390,184 ) Depreciation and amortization 11,392 16,454 27,846 Purchases of property and equipment - 14,006 14,006 Payments for patents and trademarks 1,305 1,304 2,609 Management assesses non-operating income statement data on a consolidated basis only. International revenues are based on the country in which the end-user is located. For the three month periods ended September 30, 2022 and 2021, total revenues by geographic area were as follows: Geographic Data September 30, 2022 September 30, 2021 Total revenues: United States $ 437,035 $ 357,471 Foreign (1) 170,473 90,959 $ 607,508 $ 448,430 (1) Net revenues to Germany and India represented approximately 11% and 12%, respectively, of total net revenues for the three months ended September 30, 2022. Net revenues to India represented approximately 11% of total net revenues for the three months ended September 30, 2021. For the nine-month periods ended September 30, 2022 and 2021, total revenues by geographic area were as follows: Geographic Data September 30, 2022 September 30, 2021 Total revenues: United States $ 1,279,324 $ 892,177 Foreign (1) 430,907 373,332 $ 1,710,231 $ 1,265,509 (1) Net revenues to any one foreign country did not exceed 10% of total net revenues for the nine months ended September 30, 2022. Net revenues to India represented approximately 13% of total net revenues for the nine months ended September 30, 2021. As of September 30, 2022 and December 31, 2021, accounts receivable by geographic area were as follows: Geographic Data September 30, 2022 December 31, 2021 Accounts receivable: United States $ 114,807 $ 134,695 Foreign 193,211 101,643 $ 308,018 $ 236,338

Significant Accounting Policies

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Earnings Per Share, Policy [Policy Text Block]	Income (loss) Per Share For the Three Months Ended For the Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Total potentially dilutive common shares as of: Stock options to purchase common stock (Note 8) 6,301,500 6,301,500 6,301,500 6,301,500 Series C Convertible Preferred Stock and related accrued dividends (Note 5) - 524,736 524,736 - Series D Convertible Preferred Stock (Note 6) - 3,628,576 3,628,576 - Total potentially dilutive common shares 6,301,500 10,454,812 10,454,812 6,301,500 Numerator: Net (loss) income $ (15,274 ) $ 12,329 $ 1,456 $ (150,105 ) Denominator: Basic Weighted average shares 68,104,957 68,104,957 68,104,957 68,104,957 Effect of dilutive securities: Series C Convertible Preferred Stock and related accrued dividends (Note 5) - 524,736 524,736 - Series D Convertible Preferred Stock (Note 6) - 3,628,576 3,628,576 - Denominator for diluted (loss) income per share-adjusted weighted average shares after assumed conversions 68,104,957 72,258,269 72,258,269 68,104,957
Cash and Cash Equivalents, Policy [Policy Text Block]	Cash
Concentration Risk, Credit Risk, Policy [Policy Text Block]	Concentration of Credit Risk For the Three Months Ended For the Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Customer A 27 % 29 % 20 % 24 % Customer B 18 % 17 % 15 % 20 % Customer C 15 % * 13 % 12 % Customer D 13 % * 11 % 10 % Customer E 14 % 12 % 17 % * Customer F * * * 12 %
Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block]	Allowance for Doubtful Accounts
Inventory, Policy [Policy Text Block]	Inventories September 30, 2022 December 31, 2021 Raw materials $ 54,725 $ 102,444 Finished goods 154,552 156,563 $ 209,277 $ 259,007
Property, Plant and Equipment, Impairment [Policy Text Block]	Long-Lived Assets
Trade Accounts Payable and Other Current Liabilities [Policy Text Block]	Trade accounts payable and other current liabilities September 30, 2022 December 31, 2021 Trade accounts payable $ 93,227 $ 162,829 Payroll and related expenses 22,537 42,472 Patent monetization expenses 133,347 162,990 Current operating lease liabilities 38,012 39,909 Deferred revenue 12,790 123,451 Professional and other service fees 117,415 172,712 Total trade accounts payable and other current liabilities $ 417,328 $ 704,363 1. Identify the contract with a customer. 2. Identify the performance obligations in the contract. 3. Determine the transaction price of the contract. 4. Allocate the transaction price to the performance obligations in the contract. 5. Recognize revenue when the performance obligations are met or delivered.
Revenue [Policy Text Block]	Revenue Recognition 4,000
Income Tax, Policy [Policy Text Block]	Income Taxes
Use of Estimates, Policy [Policy Text Block]	Use of Estimates
Subsequent Events, Policy [Policy Text Block]	Subsequent Events
Reclassification, Comparability Adjustment [Policy Text Block]	Reclassifications

Note 2 - Summary of Significa_2

Note 2 - Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2022
Notes Tables
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	For the Three Months Ended For the Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Total potentially dilutive common shares as of: Stock options to purchase common stock (Note 8) 6,301,500 6,301,500 6,301,500 6,301,500 Series C Convertible Preferred Stock and related accrued dividends (Note 5) - 524,736 524,736 - Series D Convertible Preferred Stock (Note 6) - 3,628,576 3,628,576 - Total potentially dilutive common shares 6,301,500 10,454,812 10,454,812 6,301,500 Numerator: Net (loss) income $ (15,274 ) $ 12,329 $ 1,456 $ (150,105 ) Denominator: Basic Weighted average shares 68,104,957 68,104,957 68,104,957 68,104,957 Effect of dilutive securities: Series C Convertible Preferred Stock and related accrued dividends (Note 5) - 524,736 524,736 - Series D Convertible Preferred Stock (Note 6) - 3,628,576 3,628,576 - Denominator for diluted (loss) income per share-adjusted weighted average shares after assumed conversions 68,104,957 72,258,269 72,258,269 68,104,957
Schedules of Concentration of Risk, by Risk Factor [Table Text Block]	For the Three Months Ended For the Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Customer A 27 % 29 % 20 % 24 % Customer B 18 % 17 % 15 % 20 % Customer C 15 % * 13 % 12 % Customer D 13 % * 11 % 10 % Customer E 14 % 12 % 17 % * Customer F * * * 12 %
Schedule of Inventory, Current [Table Text Block]	September 30, 2022 December 31, 2021 Raw materials $ 54,725 $ 102,444 Finished goods 154,552 156,563 $ 209,277 $ 259,007
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]	September 30, 2022 December 31, 2021 Trade accounts payable $ 93,227 $ 162,829 Payroll and related expenses 22,537 42,472 Patent monetization expenses 133,347 162,990 Current operating lease liabilities 38,012 39,909 Deferred revenue 12,790 123,451 Professional and other service fees 117,415 172,712 Total trade accounts payable and other current liabilities $ 417,328 $ 704,363

Note 4 - Long-term Debt (Tables

Note 4 - Long-term Debt (Tables)	9 Months Ended
	Sep. 30, 2022
Notes Tables
Schedule of Long-Term Debt Instruments [Table Text Block]	September 30, 2022 December 31, 2021 Additional Notes $ 2,169,422 $ 2,024,422 PIK interest on Additional Notes 339,132 276,770 SBA Loan with accrued interest 157,912 154,451 Total long-term debt 2,666,466 2,455,643 Less: current maturities of long-term debt (6,579 ) (4,386 ) Long-term debt, net of current maturities $ 2,659,887 $ 2,451,257

Note 7 - Commitments and Cont_2

Note 7 - Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2022
Notes Tables
Lessee, Operating Lease, Disclosure [Table Text Block]	September 30, 2022 December 31, 2021 ROU assets, net $ 124,585 $ 156,626 Operating lease liabilities current $ 38,012 $ 39,909 Operating lease liabilities payable non-current 91,080 119,886 Total operating lease liabilities $ 129,092 $ 159,795 Weighted-average remaining lease term (in months) 39 47 Weighted-average discount rate 3.8 % 3.8 %
Lessee, Operating Lease, Liability, Maturity [Table Text Block]	2022 (October 1 – December 31) $ 10,352 2023 42,389 2024 43,743 2025 40,344 Total 136,828 Less: interest (7,736 ) Total operating lease payments $ 129,092

Note 8 - Stock Plans and Stoc_2

Note 8 - Stock Plans and Stock Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2022
Notes Tables
Share-Based Payment Arrangement, Option, Activity [Table Text Block]	Options Outstanding Options Exercisable Options Outstanding Weighted Average Exercise Price Weighted Average Fair Value Weighted Average Remaining Contractual Life (in years) Options Exercisable Weighted Average Exercise Price Weighted Average Fair Value Weighted Average Remaining Contractual Life (in years) At January 1, 2022 6,301,500 $ 0.06 $ 0.06 3.98 6,301,500 $ 0.06 $ 0.06 3.98 At September 30, 2022 6,301,500 $ 0.06 $ 0.06 3.23 6,301,500 $ 0.06 $ 0.06 3.23

Note 9 - Segment Information (T

Note 9 - Segment Information (Tables)	9 Months Ended
	Sep. 30, 2022
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	2022 Three Month Segment Data Patent Monetization Andrea DSP Microphone and Audio Software Products 2022 Three Month Segment Data Net product revenues $ - $ 606,684 $ 606,684 License revenues 42 782 824 Operating (loss) income (70,360 ) 83,123 12,763 Depreciation and amortization 4,491 7,992 12,483 Assets 144,450 890,432 1,034,882 Total long lived assets 83,907 252,908 336,815 Payments for patents and trademarks 68 68 136 2021 Three Month Segment Data Patent Monetization Andrea DSP Microphone and Audio Software Products 2021 Three Month Segment Data Net product revenues $ - $ 437,287 $ 437,287 License revenues 93 11,050 11,143 Operating loss (83,505 ) (29,243 ) (112,748 ) Depreciation and amortization 3,834 5,715 9,549 Purchases of property and equipment - 8,495 8,495 December 31, 2021 Year End Segment Data Patent Monetization Andrea DSP Microphone and Audio Software Products 2021 Year End Segment Data Assets $ 188,717 $ 949,727 $ 1,138,444 Total long lived assets 97,100 298,487 395,587 2022 Nine Month Segment Data Patent Monetization Andrea DSP Microphone and Audio Software Products 2022 Nine Month Segment Data Net product revenues $ - $ 1,701,239 $ 1,701,239 License revenues 140 8,852 8,992 Operating (loss) income (197,375 ) 126,496 (70,879 ) Depreciation and amortization 13,531 23,679 37,210 Purchases of property and equipment - 9,803 9,803 Payments for patents and trademarks 338 338 676 2021 Nine Month Segment Data Patent Monetization Andrea DSP Microphone and Audio Software Products 2021 Nine Month Segment Data Net product revenues $ - $ 1,244,390 $ 1,244,390 Service related revenues - 3,840 3,840 License revenues 250 17,029 17,279 Operating loss (249,948 ) (140,236 ) (390,184 ) Depreciation and amortization 11,392 16,454 27,846 Purchases of property and equipment - 14,006 14,006 Payments for patents and trademarks 1,305 1,304 2,609
Revenue from External Customers by Geographic Areas [Table Text Block]	Geographic Data September 30, 2022 September 30, 2021 Total revenues: United States $ 437,035 $ 357,471 Foreign (1) 170,473 90,959 $ 607,508 $ 448,430 Geographic Data September 30, 2022 September 30, 2021 Total revenues: United States $ 1,279,324 $ 892,177 Foreign (1) 430,907 373,332 $ 1,710,231 $ 1,265,509 Geographic Data September 30, 2022 December 31, 2021 Accounts receivable: United States $ 114,807 $ 134,695 Foreign 193,211 101,643 $ 308,018 $ 236,338

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Income From Employee Retention Tax Credits	$ 0	$ 0	$ 140,137	$ 0
Operating Income (Loss), Total	12,763	$ (112,748)	(70,879)	$ (390,184)
Cash and Cash Equivalents, at Carrying Value, Total	145,444		145,444		$ 148,349
Working Capital Deficit	$ 254,992		$ 254,992

Note 2 - Summary of Significa_3

Note 2 - Summary of Significant Accounting Policies (Details Textual) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Revenue from Contract with Customer, Including Assessed Tax	$ 607,508	$ 448,430	$ 1,710,231	$ 1,265,509
Contract with Customer, Liability, Revenue Recognized	83,113		126,784
Contract with Customer, Liability, Current	12,790		12,790		$ 123,451
Service [Member]
Revenue from Contract with Customer, Including Assessed Tax	$ 0	$ 0	$ 0	$ 3,840
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer A [Member]
Concentration Risk, Percentage			15%		29%
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer B [Member]
Concentration Risk, Percentage			25%		22%
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer C [Member]
Concentration Risk, Percentage			18%		16%
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer D [Member]
Concentration Risk, Percentage			28%
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer F [Member]
Concentration Risk, Percentage			10%
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer E [Member]
Concentration Risk, Percentage					17%

Note 2 - Summary of Significa_4

Note 2 - Summary of Significant Accounting Policies - Potentially Dilutive Common Shares (Details) - USD ($)	3 Months Ended						9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021
Stock options to purchase common stock (Note 8) (in shares)	6,301,500			10,454,812			10,454,812	6,301,500
Net income loss	$ (15,274)	$ 109,535	$ (92,805)	$ 12,329	$ (158,511)	$ (3,923)	$ 1,456	$ (150,105)
Basic weighted average shares (in shares)	68,104,957			68,104,957			68,104,957	68,104,957
Diluted weighted average shares (in shares)	68,104,957			72,258,269			72,258,269	68,104,957
Series C Convertible Preferred Stock [Member]
Series C Convertible Preferred Stock and related accrued dividends (Note 5) (in shares)	0			524,736			524,736	0
Series D Convertible Preferred Stock [Member]
Series C Convertible Preferred Stock and related accrued dividends (Note 5) (in shares)	0			3,628,576			3,628,576	0
Share-Based Payment Arrangement, Option [Member]
Stock options to purchase common stock (Note 8) (in shares)	6,301,500			6,301,500			6,301,500	6,301,500
Series C Convertible Preferred Stock [Member]
Stock options to purchase common stock (Note 8) (in shares)	0			524,736			524,736	0
Series D Convertible Preferred Stock [Member]
Stock options to purchase common stock (Note 8) (in shares)	0			3,628,576			3,628,576	0

Note 2 - Summary of Significa_5

Note 2 - Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) - Customer Concentration Risk [Member] - Revenue Benchmark [Member]	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Customer A [Member]
Customer A	27%	29%	20%
Customer B [Member]
Customer A	18%	17%	15%	20%
Customer C [Member]
Customer A	15%
Customer D [Member]
Customer A	13%
Customer E [Member]
Customer A	14%	12%	17%

Note 2 - Summary of Significa_6

Note 2 - Summary of Significant Accounting Policies - Summary of Inventory (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Raw materials	$ 54,725	$ 102,444
Finished goods	154,552	156,563
Inventory, Net, Total	$ 209,277	$ 259,007

Note 2 - Summary of Significa_7

Note 2 - Summary of Significant Accounting Policies - Trade Accounts Payable and Other Current Liabilities (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Trade accounts payable	$ 93,227	$ 162,829
Payroll and related expenses	22,537	42,472
Patent monetization expenses	133,347	162,990
Current operating lease liabilities	38,012	39,909
Deferred revenue	12,790	123,451
Professional and other service fees	117,415	172,712
Total trade accounts payable and other current liabilities	$ 417,328	$ 704,363

Note 3 - Revenue Sharing, Not_2

Note 3 - Revenue Sharing, Note Purchase Agreement and Long-term Debt (Details Textual) - USD ($)	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021	Dec. 24, 2014
Long-Term Debt, Total	$ 2,666,466	$ 2,455,643
Percentage of Revenue Applied for Payment of Interest	100%
Maximum [Member]
Percentage of Revenue Allocated to Revenue Generators	50%
Minimum [Member]
Percentage of Revenue Allocated to Revenue Generators	20%
Paid in Kind Interest [Member]
Long-Term Debt, Total	$ 339,132	276,770
Revenue Sharing Agreement [Member]
Debt Instrument, Face Amount			$ 3,500,000
Additional Notes [Member]
Debt Instrument, Face Amount	11,500,000
Additional Notes [Member] | Additional Notes Principal [Member]
Long-Term Debt, Total	2,169,422	2,024,422
Additional Notes [Member] | Paid in Kind Interest [Member]
Long-Term Debt, Total	$ 339,132	$ 276,770

Note 4 - Long-term Debt (Detail

Note 4 - Long-term Debt (Details Textual) - USD ($)					1 Months Ended			9 Months Ended		12 Months Ended
	Feb. 05, 2021	Jul. 13, 2020	May 08, 2020	Apr. 30, 2020	Sep. 30, 2021	Apr. 30, 2021	Jan. 31, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Interest Paid, Excluding Capitalized Interest, Operating Activities								$ 731	$ 1,462
Additional Notes [Member]
Debt Instrument, Interest Rate, Effective Percentage								4.25%		3%
Debt Instrument, Interest Rate, Increase (Decrease)								2%
Repayments of Long-Term Debt, Total								$ 145,000		$ 140,000
Notes Payable, Total								$ 3,415,000
Additional Notes [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate								2%
Paycheck Protection Program CARES Act [Member]
Proceeds from Issuance of Unsecured Debt	$ 142,777	$ 150,000	$ 142,775	$ 8,000
Debt Instrument, Term (Year)		30 years
Debt Instrument, Interest Rate, Stated Percentage		3.75%
Debt Instrument, Periodic Payment, Total		$ 731
Interest Paid, Excluding Capitalized Interest, Operating Activities								$ 731		$ 2,193
Paycheck Protection Program CARES Act 1 [Member]
Debt Instrument, Decrease, Forgiveness					$ 142,777	$ 8,000	$ 142,775
Paycheck Protection Program CARES Act 2 [Member]
Debt Instrument, Decrease, Forgiveness					$ 841	$ 87	$ 866

Note 4 - Long-term Debt - Long-

Note 4 - Long-term Debt - Long-term Debt (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Additional Notes	$ 2,666,466	$ 2,455,643
Current portion of long-term debt	6,579	4,386
Long-term debt	2,659,887	2,451,257
Additional Notes [Member]
Additional Notes	2,169,422	2,024,422
Paid in Kind Interest [Member]
Additional Notes	339,132	276,770
Paycheck Protection Program CARES Act [Member]
Additional Notes	$ 157,912	$ 154,451

Note 5 - Series C Convertible_2

Note 5 - Series C Convertible Preferred Stock (Details Textual) - USD ($)	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Preferred Stock, Shares Outstanding, Ending Balance	0	0
Conversion of Series C Convertible Preferred Stock into Common Stock [Member]
Preferred Stock, Convertible, Conversion Price	$ 0.2551
Conversion of Stock, Shares Issued (in shares)	524,736
Series C Convertible Preferred Stock [Member]
Preferred Stock, Stated Value	$ 10,000
Increase in Stated Value of Preferred Stock	$ 1,671
Preferred Stock, Shares Outstanding, Ending Balance	11.469249	11.500000
Dividends Payable	$ 19,168

Note 6 - Series D Convertible_2

Note 6 - Series D Convertible Preferred Stock (Details Textual)	9 Months Ended
	Sep. 30, 2022 $ / shares shares	Dec. 31, 2021 shares
Preferred Stock, Shares Outstanding, Ending Balance	0	0
Series D Convertible Preferred Stock [Member]
Registration Delay Payment, Number Used to be Multiplied by the Number of Days	0.0005
Preferred Stock, Shares Outstanding, Ending Balance	907,144	907,144
Conversion of Series D Convertible Preferred Stock into Common Stock [Member]
Preferred Stock, Convertible, Conversion Price | $ / shares	$ 0.25
Conversion of Stock, Shares Issued (in shares)	3,628,576

Note 7 - Commitments and Cont_3

Note 7 - Commitments and Contingencies (Details Textual) - USD ($)	1 Months Ended
	Aug. 31, 2014	Sep. 30, 2022	Sep. 30, 2017
Chief Executive Officer [Member]
Annual Base Salary	$ 216,000
Percentage of Pre-bonus Quarterly Bonus Amount	5%
Percentage of Annual Bonus	9%
Rate of Annual Pre-bonus Net After Tax Earnings, Minimum	$ 300,000
Rate of Annual Pre-bonus Net After Tax Earnings, Maximum	$ 3,000,000
Percentage of Adjusted Annual Bonus	3%
Annual Pre-bonus Adjusted Net After Tax Earnings, Maximum	$ 3,000,000
Unpaid Quarterly Bonus Amount			$ 12,500
Chief Executive Officer [Member] | Employee Agreement With Mr. Andrea [Member]
Other Commitment, Total		$ 72,000
Minimum [Member]
Lessee, Operating Lease, Remaining Lease Term (Year)		1 year
Maximum [Member]
Lessee, Operating Lease, Remaining Lease Term (Year)		4 years

Note 7 - Commitments and Cont_4

Note 7 - Commitments and Contingencies - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($)	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
ROU assets, net	$ 124,585		$ 156,626
Current operating lease liabilities	38,012		39,909
Operating lease liabilities payable	91,080	$ 159,795	$ 119,886
Total operating lease liabilities	$ 129,092
Weighted-average remaining lease term (in months) (Month)	39 months		47 months
Weighted-average discount rate	3.80%		3.80%

Note 7 - Commitments and Cont_5

Note 7 - Commitments and Contingencies - Maturities of Operating Lease Liabilities (Details)	Sep. 30, 2022 USD ($)
2022 (October 1 – December 31)	$ 10,352
Lessee, Operating Lease, Liability, to be Paid, Year One	42,389
Lessee, Operating Lease, Liability, to be Paid, Year Two	43,743
Lessee, Operating Lease, Liability, to be Paid, Year Three	40,344
Total	136,828
Less: interest	(7,736)
Total operating lease liabilities	$ 129,092

Note 8 - Stock Plans and Stoc_3

Note 8 - Stock Plans and Stock Based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021	Aug. 31, 2019	Oct. 30, 2006
Share Price (in dollars per share)	$ 0.04		$ 0.04
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number (in shares)	6,301,500		6,301,500		6,301,500
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Nonvested, Number of Shares, Ending Balance (in shares)	6,301,500		6,301,500
Share-Based Payment Arrangement, Option [Member]
Share-Based Payment Arrangement, Expense	$ 0	$ 0	$ 0	$ 0
The 2019 Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares)						10,000,000
The 2006 Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares)							18,000,000

Note 8 - Stock Plans and Stoc_4

Note 8 - Stock Plans and Stock Based Compensation - Stock Option Activity (Details) - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
options outstanding (in shares)	6,301,500	6,301,500
Weighted average exercise price (in dollars per share)	$ 0.06	$ 0.06
Weighted average fair value (in dollars per share)	$ 0.06	$ 0.06
weighted average remaining contractual life (Year)	3 years 2 months 23 days	3 years 11 months 23 days
options exercisable (in shares)	6,301,500	6,301,500
options exercisable, weighted average exercise price (in dollars per share)	$ 0.06	$ 0.06
options exercisable, weighted average fair value (in dollars per share)	$ 0.06	$ 0.06
options exercisable, weighted average remaining contractual life (Year)	3 years 2 months 23 days	3 years 11 months 23 days

Note 9 - Segment Information (D

Note 9 - Segment Information (Details Textual)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022
Number of Operating Segments			2
GERMANY
Percentage of Net Revenues	11%
INDIA
Percentage of Net Revenues	12%	11%

Note 9 - Segment Information -

Note 9 - Segment Information - Condensed Consolidated Financial Information by Segment (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Total revenues	$ 607,508	$ 448,430	$ 1,710,231	$ 1,265,509
Assets	1,034,882		1,034,882		$ 1,138,444
Total long lived assets	336,815		336,815		395,587
Operating (loss) income	12,763	(112,748)	(70,879)	(390,184)
Depreciation and amortization	12,483	9,549	37,210	27,846
Purchases of property and equipment		8,495	9,803	14,006
Payments for patents and trademarks	136		676	2,609
Product [Member]
Total revenues	606,684	437,287	1,701,239	1,244,390
License [Member]
Total revenues	824	11,143	8,992	17,279
Service [Member]
Total revenues	0	0	0	3,840
Patent Monetization [Member]
Assets	144,450		144,450		188,717
Total long lived assets	83,907		83,907		97,100
Operating (loss) income	(70,360)	(83,505)	(197,375)	(249,948)
Depreciation and amortization	4,491	3,834	13,531	11,392
Purchases of property and equipment		0	0	0
Payments for patents and trademarks	68		338	1,305
Patent Monetization [Member] | Product [Member]
Total revenues	0	0	0	0
Patent Monetization [Member] | License [Member]
Total revenues	42	93	140	250
Patent Monetization [Member] | Service [Member]
Total revenues				0
DSP Microphone and Audio Software Products [Member]
Assets	890,432		890,432		949,727
Total long lived assets	252,908		252,908		$ 298,487
Operating (loss) income	83,123	(29,243)	126,496	(140,236)
Depreciation and amortization	7,992	5,715	23,679	16,454
Purchases of property and equipment		8,495	9,803	14,006
Payments for patents and trademarks	68		338	1,304
DSP Microphone and Audio Software Products [Member] | Product [Member]
Total revenues	606,684	437,287	1,701,239	1,244,390
DSP Microphone and Audio Software Products [Member] | License [Member]
Total revenues	$ 782	$ 11,050	$ 8,852	17,029
DSP Microphone and Audio Software Products [Member] | Service [Member]
Total revenues				$ 3,840

Note 9 - Segment Information _2

Note 9 - Segment Information - Revenues by Geographic Area (Details) - USD ($)	3 Months Ended				9 Months Ended
	Sep. 30, 2022		Sep. 30, 2021		Sep. 30, 2022		Sep. 30, 2021		Dec. 31, 2021
Total revenue	$ 607,508		$ 448,430		$ 1,710,231		$ 1,265,509
Accounts receivable	308,018				308,018				$ 236,338
UNITED STATES
Total revenue	437,035		357,471		1,279,324		892,177
Accounts receivable	114,807				114,807				134,695
Non-US [Member]
Total revenue	170,473	[1]	$ 90,959	[1]	430,907	[2]	$ 373,332	[2]
Accounts receivable	$ 193,211				$ 193,211				$ 101,643
[1]Net revenues to Germany and India represented approximately[2]Net revenues to any one foreign country did not exceed 10% of total net revenues for the nine months ended September 30, 2022. Net revenues to India represented approximately