KORU Medical Systems (KRMD) 10-Q 11 Aug 21 2021 Q2 Quarterly report Financial data

Cover

Cover - $ / shares	Aug. 11, 2021	Jun. 30, 2021
Cover [Abstract]
Document Type		10-Q
Amendment Flag		false
Document Quarterly Report		true
Document Transition Report		false
Document Period End Date		Jun. 30, 2021
Document Fiscal Period Focus		Q2
Document Fiscal Year Focus		2021
Current Fiscal Year End Date		--12-31
Entity File Number		0-12305
Entity Registrant Name		REPRO MED SYSTEMS, INC.
Entity Central Index Key		0000704440
Entity Tax Identification Number		13-3044880
Entity Incorporation, State or Country Code		NY
Entity Address, Address Line One		24 Carpenter Road
Entity Address, City or Town		Chester
Entity Address, State or Province		NY
Entity Address, Postal Zip Code		10918
City Area Code		845
Local Phone Number		469-2042
Title of 12(b) Security		Common stock, $0.01 par value
Trading Symbol		KRMD
Security Exchange Name		NASDAQ
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	44,511,162
Entity Listing, Par Value Per Share	$ 0.01
Treasury Stock, Common, Shares	3,420,502

BALANCE SHEETS (UNAUDITED)

BALANCE SHEETS (UNAUDITED) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
CURRENT ASSETS
Cash and cash equivalents	$ 26,538,478	$ 27,315,286
Accounts receivable less allowance for doubtful accounts of $24,469 for June 30, 2021, and December 31, 2020	2,577,400	2,572,954
Inventory	7,562,750	6,829,772
Prepaid expenses	461,553	807,780
TOTAL CURRENT ASSETS	37,140,181	37,525,792
Property and equipment, net	1,110,550	1,167,623
Intangible assets, net of accumulated amortization of $232,820 and $199,899 at June 30, 2021 and December 31, 2020, respectively	834,644	843,587
Operating lease right-of-use assets	166,483	236,846
Deferred income tax assets, net	1,327,230	125,274
Other assets	19,812	19,812
TOTAL ASSETS	40,598,900	39,918,934
CURRENT LIABILITIES
Accounts payable	1,005,653	624,920
Accrued expenses	1,771,666	2,610,413
Accrued payroll and related taxes	390,326	287,130
Finance lease liability – current	1,030	2,646
Operating lease liability – current	142,450	141,293
TOTAL CURRENT LIABILITIES	3,311,125	3,666,402
Operating lease liability, net of current portion	24,033	95,553
TOTAL LIABILITIES	3,335,158	3,761,955
Commitments and contingencies (Refer to Note 3)
STOCKHOLDERS’ EQUITY
Common stock, $0.01 par value, 75,000,000 shares authorized, 47,910,676 and 46,680,119 shares issued 44,490,174 and 43,259,617 shares outstanding at June 30, 2021, and December 31, 2020, respectively	479,106	466,801
Additional paid-in capital	39,376,131	35,880,986
Treasury stock, 3,420,502 shares at June 30, 2021 and December 31, 2020, respectively, at cost	(3,843,562)	(3,843,562)
Retained earnings	1,252,067	3,652,754
TOTAL STOCKHOLDERS’ EQUITY	37,263,742	36,156,979
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 40,598,900	$ 39,918,934

BALANCE SHEETS (UNAUDITED) (Par

BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 24,469	$ 24,469
Patents, accumulated amortization	$ 232,820	$ 199,899
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized	75,000,000	75,000,000
Common stock, issued	47,910,676	46,680,119
Common stock, outstanding	44,490,174	43,259,617
Treasury stock	3,420,502	3,420,502

STATEMENTS OF OPERATIONS (Unaud

STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Statement [Abstract]
NET SALES	$ 5,528,174	$ 7,708,904	$ 10,959,125	$ 14,038,913
Cost of goods sold	2,317,990	2,799,024	4,517,087	5,340,823
Gross Profit	3,210,184	4,909,880	6,442,038	8,698,090
OPERATING EXPENSES
Selling, general and administrative	4,085,945	3,201,831	9,078,774	5,964,811
Litigation		2,346,914		2,446,072
Research and development	386,878	298,196	723,719	554,221
Depreciation and amortization	118,415	94,940	233,888	182,164
Total Operating Expenses	4,591,238	5,941,881	10,036,381	9,147,268
Net Operating Loss	(1,381,054)	(1,032,001)	(3,594,343)	(449,178)
Non-Operating Income/(Expense)
Gain/(Loss) on currency exchange	1,239	(2,594)	(14,478)	(13,091)
(Loss)/Gain on disposal of fixed assets, net		(5,522)	736	(5,522)
Interest income, net	9,950	(5,002)	19,721	14,028
TOTAL OTHER INCOME/(EXPENSE)	11,189	(13,118)	5,979	(4,585)
LOSS BEFORE INCOME TAXES	(1,369,865)	(1,045,119)	(3,588,364)	(453,763)
Income Tax Benefit/(Expense)	245,316	(30,919)	1,187,677	(172,847)
NET LOSS	$ (1,124,549)	$ (1,076,038)	$ (2,400,687)	$ (626,610)
NET LOSS PER SHARE
Basic	$ (0.03)	$ (0.03)	$ (0.05)	$ (0.02)
Diluted	$ (0.03)	$ (0.03)	$ (0.05)	$ (0.02)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
Basic	44,489,853	40,361,924	44,226,936	40,018,559
Diluted	44,489,853	40,361,924	44,226,936	40,018,559

STATEMENTS OF CASH FLOWS (UNAUD

STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$ (2,400,687)	$ (626,610)
Adjustments to reconcile net loss to net cash (used in)/provided by operating activities:
Stock-based compensation expense	1,339,356	784,821
Stock-based litigation settlement expense		1,285,102
Depreciation and amortization	233,888	182,164
Deferred income taxes	(1,201,956)	(145,770)
(Gain)/Loss on disposal of fixed assets	(736)	5,522
Changes in operating assets and liabilities:
(Increase)/Decrease in accounts receivable	(4,446)	268,619
Increase in inventory	(732,978)	(1,278,811)
Decrease/(Increase) in prepaid expenses and other assets	346,227	(156,316)
Increase in accounts payable	380,733	347,350
Increase in accrued payroll and related taxes	103,196	333,272
(Decrease)/Increase in accrued expenses	(838,747)	1,389,588
Increase in accrued tax liability		318,618
NET CASH (USED IN)/PROVIDED BY OPERATING ACTIVITIES	(2,776,150)	2,707,549
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(152,223)	(363,750)
Proceeds from disposal of property and equipment	9,065
Purchases of intangible assets	(23,978)	(149,523)
NET CASH USED IN INVESTING ACTIVITIES	(167,136)	(513,273)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings from indebtedness		3,500,000
Proceeds from issuance of equity	1,230,000	26,567,861
Common stock issuance as settlement for litigation	938,094
Payments on finance lease liability	(1,616)	(3,717)
NET CASH PROVIDED BY FINANCING ACTIVITIES	2,166,478	30,064,144
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS	(776,808)	32,258,420
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	27,315,286	5,870,929
CASH AND CASH EQUIVALENTS, END OF PERIOD	26,538,478	38,129,349
Cash paid during the periods for:
Interest	47	13,554
Income Taxes	850
Schedule of Non-Cash Operating, Investing and Financing Activities:
Issuance of common stock as compensation	153,446	120,004
Issuance of common stock as settlement for litigation	$ 938,094	$ 938,094

STATEMENTS OF STOCKHOLDERS' EQU

STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Total
Beginning balance, value at Dec. 31, 2019	$ 422,398	$ 6,293,069	$ 4,864,817	$ (344,204)	$ 11,236,080
Balance beginning (in shares) at Dec. 31, 2019	42,239,788
Issuance of stock-based compensation	$ 92	59,910			60,002
Issuance of stock-based compensation (in shares)	9,189
Compensation expense related to stock options		300,966			300,966
Issuance upon options exercised	$ 1,750	83,750			85,500
Issuance upon options exercised (in shares)	175,000
Net loss			449,428		449,428
Ending balance, value at Mar. 31, 2020	$ 424,240	6,737,695	5,314,245	(344,204)	12,131,976
Balance ending (in shares) at Mar. 31, 2020	42,423,977
Beginning balance, value at Dec. 31, 2019	$ 422,398	6,293,069	4,864,817	(344,204)	11,236,080
Balance beginning (in shares) at Dec. 31, 2019	42,239,788
Net loss					(626,610)
Ending balance, value at Jun. 30, 2020	$ 466,401	34,886,850	4,238,207	(344,204)	39,247,254
Balance ending (in shares) at Jun. 30, 2020	46,640,120
Beginning balance, value at Mar. 31, 2020	$ 424,240	6,737,695	5,314,245	(344,204)	12,131,976
Balance beginning (in shares) at Mar. 31, 2020	42,423,977
Issuance of stock-based compensation	$ 80	59,922			60,002
Issuance of stock-based compensation (in shares)	7,999
Compensation expense related to stock options		363,851			363,851
Litigation settlement options		347,008			347,008
Litigation settlement share issuance	952	937,142			938,094
Litigation settlement share issuance (in shares)	95,238
Issuance upon options exercised	$ 5,192	5,189			10,381
Issuance upon options exercised (in shares)	519,156
Capital raise	$ 35,937	26,436,043			26,471,980
Capital raise (in shares)	3,593,750
Net loss			(1,076,038)		(1,076,038)
Ending balance, value at Jun. 30, 2020	$ 466,401	34,886,850	4,238,207	(344,204)	39,247,254
Balance ending (in shares) at Jun. 30, 2020	46,640,120
Beginning balance, value at Dec. 31, 2020	$ 466,801	35,880,986	3,652,754	(3,843,562)	36,156,979
Balance beginning (in shares) at Dec. 31, 2020	46,680,119
Issuance of stock-based compensation	$ 101	56,149			56,250
Issuance of stock-based compensation (in shares)	10,124
Compensation expense related to stock options		677,934			677,934
Litigation settlement share issuance	952	937,142			938,094
Litigation settlement share issuance (in shares)	95,238
Issuance upon options exercised	$ 11,106	1,218,894			1,230,000
Issuance upon options exercised (in shares)	1,110,580
Net loss			(1,276,138)		(1,276,138)
Ending balance, value at Mar. 31, 2021	$ 478,960	38,771,105	2,376,616	(3,843,562)	37,783,119
Balance ending (in shares) at Mar. 31, 2021	47,896,061
Beginning balance, value at Dec. 31, 2020	$ 466,801	35,880,986	3,652,754	(3,843,562)	36,156,979
Balance beginning (in shares) at Dec. 31, 2020	46,680,119
Net loss					(2,400,687)
Ending balance, value at Jun. 30, 2021	$ 479,106	39,376,131	1,252,067	(3,843,562)	37,263,742
Balance ending (in shares) at Jun. 30, 2021	47,910,676
Beginning balance, value at Mar. 31, 2021	$ 478,960	38,771,105	2,376,616	(3,843,562)	37,783,119
Balance beginning (in shares) at Mar. 31, 2021	47,896,061
Issuance of stock-based compensation	$ 146	97,050			97,196
Issuance of stock-based compensation (in shares)	14,615
Compensation expense related to stock options		441,841			441,841
Compensation expense related to restricted stock awards		66,135			66,135
Issuance upon options exercised
Net loss			(1,124,549)		(1,124,549)
Ending balance, value at Jun. 30, 2021	$ 479,106	$ 39,376,131	$ 1,252,067	$ (3,843,562)	$ 37,263,742
Balance ending (in shares) at Jun. 30, 2021	47,910,676

NATURE OF OPERATIONS AND SUMMAR

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 — NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES NATURE OF OPERATIONS REPRO MED SYSTEMS, INC. d/b/a KORU Medical Systems (the “Company,” “KORU Medical,” “we,” “us” or “our”) designs, manufactures and markets proprietary portable and innovative medical devices primarily for the ambulatory infusion market as governed by the United States Food and Drug Administration (the “FDA”) quality and regulatory system and international standards for quality system management. The Company operates as one segment. BASIS OF PRESENTATION The accompanying financial statements should be read in conjunction with the Company’s annual report on Form 10-K for the year ended December 31, 2020 (“Annual Report”). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with United States generally accepted accounting principles (“GAAP”) have been condensed or omitted from the accompanying financial statements. The accompanying year-end balance sheet was derived from the audited financial statements included in the Annual Report. The accompanying interim financial statements are unaudited and reflect all adjustments which are in the opinion of management necessary for a fair statement of the Company’s financial position, results of operations, and cash flows for the periods presented. All such adjustments are of a normal, recurring nature. The Company’s results of operations and cash flows for the interim periods are not necessarily indicative of the results of operations and cash flows that it may achieve in future periods. CASH AND CASH EQUIVALENTS For purposes of the statement of cash flows, the Company considers all short-term investments with an original maturity of three months or less to be cash equivalents. The Company holds cash in excess of $ 250,000 INVENTORY Inventories of raw materials are stated at the lower of standard cost, which approximates average cost, or market value including allocable overhead. Work-in-process and finished goods are stated at the lower of standard cost or market value and include direct labor and allocable overhead. PATENTS Costs incurred in obtaining patents have been capitalized and are being amortized over the legal life of the patents. INCOME TAXES Deferred income taxes are provided using the liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry forwards and deferred tax liabilities are recognized for taxable temporary differences. The Company believes that it has no uncertain tax positions requiring disclosure or adjustment. Generally, tax years starting with 2018 are subject to examination by income tax authorities. PROPERTY, EQUIPMENT, AND DEPRECIATION Property and equipment is stated at cost and is depreciated using the straight-line method over the estimated useful lives of the respective assets. STOCK-BASED COMPENSATION The Company maintains a stock option plan under which it grants stock options to certain executives, key employees and consultants. The fair value of each option grant is estimated on the date of the grant using the Black-Scholes option-pricing model. All options are charged against income at their fair value. The entire compensation expense of the award is recognized over the vesting period. Shares of stock granted for director fees are recorded at the fair value of the shares at the grant date. The Company also maintains an omnibus equity incentive plan. There have been no awards made pursuant to this plan. The Company issues restricted stock awards. Restricted stock awards are equity classified and measured at the fair market value of the underlying stock at the grant date. The fair value of restricted stock awards vesting at certain market capitalization thresholds were estimated on the date of grant using the Brownian Motion Monte Carlo lattice model. The fair value of restricted stock awards with time-based vesting were estimated on the date of grant at the current stock price. We recognize restricted stock expense using the straight-line attribution method over the requisite service period and account for forfeitures as they occur. NET INCOME PER COMMON SHARE Basic earnings per share are computed on the weighted average of common shares outstanding during each year. Diluted earnings per share include only an increase in the weighted average shares by the common shares issuable upon exercise of employee and consultant stock options. See “NOTE 4 — STOCK-BASED COMPENSATION” for further detail. Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net loss $ (1,124,549 ) $ (1,076,038 ) $ (2,400,687 ) $ (626,610 ) Weighted Average Outstanding Shares: Outstanding shares 44,489,853 40,361,924 44,226,936 40,018,559 Option shares includable — (a) — (a) — (a) — (a) 44,489,853 40,361,924 44,226,936 40,018,559 Net loss per share Basic $ (0.03 ) $ (0.03 ) $ (0.05 ) $ (0.02 ) Diluted $ (0.03 ) $ (0.03 ) $ (0.05 ) $ (0.02 ) __________ (a) For the three months ended June 30, 2021, and 2020, option shares of 224,336 162,831 214,132 182,575 USE OF ESTIMATES IN THE FINANCIAL STATEMENTS The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Important estimates include but are not limited to asset lives, valuation allowances, inventory valuation, and accruals. REVENUE RECOGNITION The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers The Company’s revenues result from the sale of assembled products. We recognize revenues when shipment occurs, and at which point the customer obtains control and ownership of the goods. Shipping costs generally are billed to customers and are included in sales. The Company generally does not accept return of goods shipped unless it is a Company error. The only credits provided to customers are for defective merchandise. The Company warrants the syringe driver from defects in materials and workmanship under normal use and the warranty does not include a performance obligation. The costs under the warranty are expensed as incurred. Provisions for distributor pricing and annual customer growth rebates are variable consideration and are recorded as a reduction of revenue in the same period the related sales are recorded or when it is probable the annual growth target will be achieved. Rebates are provided to distributors for the difference in selling price to distributor and pricing specified to select customers. The following table summarizes net sales by geography for the three and six months ended June 30, 2021, and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Sales Domestic $ 4,645,770 $ 6,745,810 $ 9,092,559 $ 12,086,676 International 882,404 963,094 1,866,566 1,952,237 Total $ 5,528,174 $ 7,708,904 $ 10,959,125 $ 14,038,913 LEASES In February 2016, the FASB issued a standard related to leases to increase transparency and comparability among organizations by requiring the recognition of right-of-use (“ROU”) assets and lease liabilities on the balance sheet. Most prominent among the changes in the standard is the recognition of ROU assets and lease liabilities by the Company for those leases classified as operating leases under current GAAP, while our accounting for capital leases remains substantially unchanged. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The standard became effective for us on January 1, 2019. The standard had a material impact on our balance sheets but did not have a material impact on our statements of operations. See “NOTE 6 — ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) The Company considers the applicability and impact of all recently issued accounting pronouncements. Recent accounting pronouncements not specifically identified in our disclosures are either not applicable to the Company or are not expected to have a material effect on our financial condition or results of operations. FAIR VALUE MEASUREMENTS Fair value is the exit price that would be received to sell an asset or paid to transfer a liability. Fair value is a market-based measurement that should be determined using assumptions that market participants would use in pricing an asset or liability. Valuation techniques used to measure fair value should maximize the use of observable inputs and minimize the use of unobservable inputs. To measure fair value, the Company uses the following fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable: • Level 1 – Quoted prices in active markets for identical assets or liabilities. • Level 2 – Inputs other than Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data by correlation or other means. • 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. Value is determined using pricing models, discounted cash flow methodologies, or similar techniques and includes instruments for which the determination of fair value requires significant judgment or estimation. The carrying amounts of cash and cash equivalents, accounts receivable, prepaid expenses, accounts payable and accrued expenses are considered to be representative of their fair values because of the short-term nature of those instruments. There were no transfers between levels in the fair value hierarchy during the six months ended June 30, 2021. IMPAIRMENT OF LONG-LIVED ASSETS The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. An impairment loss would be recognized when estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition are less than the carrying amount. The impairment loss, if recognized, would be based on the excess of the carrying value of the impaired asset over its respective fair value. No impairment losses have been recorded through June 30, 2021. RECLASSIFICATION Certain reclassifications have been made to conform prior period data to the current presentation. These reclassifications had no effect on reported net income.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	6 Months Ended
	Jun. 30, 2021
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 2 — PROPERTY AND EQUIPMENT Property and equipment consists of the following at: June 30, 2021 December 31, 2020 Furniture and office equipment $ 787,694 $ 753,536 Leasehold improvements 556,907 542,796 Manufacturing equipment and tooling 1,922,196 1,856,909 Total property and equipment 3,266,797 3,153,241 Less: accumulated depreciation and amortization (2,156,247 ) (1,985,618 ) Property and equipment, net $ 1,110,550 $ 1,167,623 Depreciation expense was $ 100,564 79,245 200,967 152,013

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 3 — COMMITMENTS AND CONTINGENCIES LEGAL PROCEEDINGS The Company has been and may again become involved in legal proceedings, claims and litigation arising in the ordinary course of business. KORU Medical is not presently a party to any litigation or other legal proceeding that is believed to be material to its financial condition. On July 12, 2021, the lead plaintiff filed a notice of voluntary dismissal without prejudice of the claims in the previously disclosed putative class action lawsuit filed in the United States District Court for the Southern District of New York against the Company and its Chief Financial Officer and former Chief Executive Officer, alleging they made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations and prospects, in the Company’s earnings communications and Form 10-Q filed during the period August 4, 2020 and January 25, 2021. OTHER On November 11, 2020, the Company entered into a Manufacturing and Supply Agreement with Command Medical Products, Inc. (“Command”), pursuant to which Command has agreed to manufacture and supply the Company’s subassemblies, needle sets and tubing products pursuant to the Company’s specifications and purchase orders. The first binding purchase order pursuant to the Manufacturing and Supply Agreement was made on November 17, 2020 (the “Effective Date”). The Manufacturing and Supply Agreement provides for a term of five years from the Effective Date. Either party may terminate the Manufacturing and Supply Agreement upon a material breach by the other Party that has not been cured within 90 days, upon the bankruptcy or insolvency of the other Party or as expressly set forth elsewhere in the Agreement. If the Company terminates the Manufacturing and Supply Agreement other than for those reasons within the first three years from the Effective Date, the Company is obligated to pay an early termination fee to Command. The Manufacturing and Supply Agreement also includes customary provisions relating to, among other things, delivery, inspection procedures, warranties, quality management, business continuity plans, handling and transport, intellectual property, confidentiality and indemnification.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2021
Share-based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	NOTE 4 — STOCK-BASED COMPENSATION On June 29, 2016, the Board of Directors amended the Company’s 2015 Stock Option Plan (as amended, the “Plan”) authorizing the Company to grant awards to certain executives, key employees, and consultants under the Plan, which was approved by shareholders at the Annual Meeting of Shareholders held on September 6, 2016. The total number of shares of Common Stock, with respect to which awards may be granted pursuant to the Plan, may not exceed 6,000,000 On February 15, 2021, under the Plan, the Company issued to James M. Beck, its Interim Chief Executive Officer, a non-qualified option to purchase up to 150,000 4.37 100,000 50,000 On March 15, 2021, under the Plan, the Company issued to Linda Tharby, its incoming President and Chief Executive Officer, a non-qualified stock option to purchase up to 1,000,000 3.875 25% on March 15, 2022 and 25% each twelve months thereafter. On April 12, 2021, pursuant to an employment agreement entered into on March 15, 2021, with Linda Tharby, the Company’s President and Chief Executive Officer, the Company issued three restricted stock awards for an aggregate 1,000,000 3,310,000 As of June 30, 2021, the Company had options to purchase 3,072,494 1,150,000 Prior to January 1, 2021, each non-employee director of the Company was eligible to receive $ 50,000 10,000 50,000 Effective January 1, 2021, each non-employee director of the Company (other than the Chairman of the Board) and Board advisor are eligible to receive of $ 75,000 to be paid quarterly $12,500 in cash and $6,250 in common stock. 100,000 to be paid quarterly $12,500 in cash and $12,500 in common stock. 110,000 to be paid quarterly $12,500 in cash and $15,000 in common stock. 140,000 to be paid quarterly $12,500 in cash and $22,500 in common stock On May 20, 2020, the Company entered into a Settlement Agreement with EMED Technologies Corporation (“EMED”) to settle all claims in connection with all pending litigation matters between them. Pursuant to the Settlement Agreement, the Company issued to EMED (i) 95,238 restricted stock units, which vested on May 21, 2020, and 95,238 restricted stock units, which vested on January 1, 2021, and (ii) an option to purchase up to 400,000 shares of the Company’s common stock at an exercise price of $11.21 per share prior to February 1, 2021, which was not exercised. On February 16, 2021, Donald Pettigrew, the Company’s former Chief Executive Officer, exercised options held by him for an aggregate 1,000,000 1,230,000 On March 18, 2021, our shareholders approved the Company’s 2021 Omnibus Equity Incentive Plan (the “2021 Equity Plan”). There have been no awards made pursuant to the 2021 Equity Plan to date. 2015 STOCK OPTION PLAN, as amended Time Based Stock Options The per share weighted average fair value of stock options granted during the six months ended June 30, 2021 and June 30, 2020 was $ 3.06 6.68 9,817 31,196 June 30, 2021 2020 Dividend yield 0.00% 0.00% Expected Volatility 74.01 74.28 62.1 Weighted-average volatility — — Expected dividends — — Expected term (in years) 10 10 Risk-free rate 1.20 1.62 0.63 The following table summarizes the status of the Plan with respect to time based stock options: Six Months Ended June 30, 2021 2020 Shares Weighted Shares Weighted Outstanding at January 1 2,922,494 $ 2.46 3,647,000 $ 1.32 Granted 1,250,000 $ 3.94 60,000 $ 9.76 Exercised 1,000,000 $ 1.23 722,000 $ 0.58 Forfeited 100,000 $ 3.94 200,000 $ 2.09 Outstanding at June 30 3,072,494 $ 3.41 2,785,000 $ 1.64 Options exercisable at June 30 871,244 $ 2.18 812,760 $ 1.37 Weighted average fair value of options granted during the period — $ 3.06 — $ 6.68 Stock-based compensation expense — $ 1,528,522 — $ 290,991 Total stock-based compensation expense was $ 1,528,522 290,991 1,230,000 95,880 The weighted-average grant-date fair value of options granted during the six months ended June 30, 2021, and 2020 was $ 3.8 0.4 1.0 million 722,000 The following table presents information pertaining to options outstanding at June 30, 2021: Range of Exercise Price Number Weighted Weighted Number Weighted $0.50-$9.76 3,072,494 7.7 $ 3.41 871,244 $ 2.18 As of June 30, 2021, there was $ 5.4 46 1,378,220 1,110,068 Performance Based Stock Options There were no stock options granted during the six months ended June 30, 2021, and 2020. The following table summarizes the status of the Plan with respect to performance-based stock options: Six Months Ended June 30, 2021 2020 Shares Weighted Shares Weighted Outstanding at January 1 1,000,000 $ 1.70 1,000,000 $ 1.70 Granted — $ — — $ — Exercised — $ — — $ — Forfeited 1,000,000 $ 1.70 — $ — Outstanding at June 30 — $ — 1,000,000 $ 1.70 Options exercisable at June 30 — $ — — $ — Weighted average fair value of options granted during the period — $ — — $ — Stock-based compensation expense — $ (408,747 ) — $ 373,826 Total performance stock-based compensation expense totaled ($ 408,747 373,826 no Restricted Stock Awards The following table summarizes the activities for our unvested restricted stock awards for the six months ended June 30, 2021, and 2020. Six Months Ended June 30, 2021 2020 Shares Weighted Shares Weighted Unvested at January 1 — $ — — $ — Granted 1,000,000 $ 3.01 — $ — Vested — $ — — $ — Forfeited/canceled — $ — — $ — Unvested at June 30 1,000,000 $ 3.01 — $ — As of June 30, 2021, there was $ 2,458,451 21 13,888 zero

DEBT OBLIGATIONS

DEBT OBLIGATIONS	6 Months Ended
	Jun. 30, 2021
Debt Disclosure [Abstract]
DEBT OBLIGATIONS	NOTE 5 — DEBT OBLIGATIONS On April 14, 2020, the Company issued a promissory note to KeyBank in the aggregate principal amount of $ 3.5 million 3.5 million Prime Rate announced by the Bank minus 0.75% Prime Rate announced by the Bank minus 1.50% June 1, 2022 any time prior to maturity with no prepayment penalties. 3.5 million In connection with the Note, the Company entered into a Commercial Security Agreement with the Bank dated April 14, 2020 (the “Security Agreement”), pursuant to which the Company granted a security interest in substantially all assets of the Company to secure the obligations of the Company under the Note. The Security Agreement contains terms and conditions typical for the granting of security interests of this kind. The Company had no amount outstanding against the line of credit as of June 30, 2021. On April 27, 2020, the Company entered into a Progress Payment Loan and Security Agreement (“PPLSA”) and a Master Security Agreement (the “MSA”), each dated as of April 20, 2020, with Key Equipment Finance, a division of the Bank (“KEF”), to provide up to $ 2.5 million fixed rate of 4.07% per annum 84 equal consecutive monthly installments.

LEASES

LEASES	6 Months Ended
	Jun. 30, 2021
Leases [Abstract]
LEASES	NOTE 6 — LEASES We have finance and operating leases for our corporate office and certain office and computer equipment. Our leases have remaining lease terms of one year, some of which include options to extend the leases monthly and annually and some with options to terminate the leases within 1 The components of lease expense were as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Operating lease cost $ 37,369 $ 37,921 $ 75,290 $ 75,843 Short-term lease cost 33,548 8,231 68,437 13,688 Total lease cost $ 70,917 $ 46,152 $ 143,727 $ 89,531 Finance lease cost: Amortization of right-of-use assets $ 794 $ 1,855 $ 1,589 $ 3,711 Interest on lease liabilities 19 65 47 152 Total finance lease cost $ 813 $ 1,920 $ 1,636 $ 3,863 Supplemental cash flow information related to leases was as follows: Six Months Ended June 30, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 70,363 $ 67,633 Financing cash flows from finance leases 1,616 3,717 Supplemental balance sheet information related to leases was as follows: June 30, December 31, Operating Leases Operating lease right-of-use assets $ 166,483 $ 236,846 Operating lease current liabilities 142,450 141,293 Operating lease long term liabilities 24,033 95,553 Total operating lease liabilities $ 166,483 $ 236,846 Finance Leases Property and equipment, at cost $ 12,725 $ 12,725 Accumulated depreciation (11,729 ) (10,139 ) Property and equipment, net $ 996 $ 2,586 Finance lease current liabilities 1,030 2,646 Finance lease long term liabilities — — Total finance lease liabilities $ 1,030 $ 2,646 June 30, December 31, Weighted Average Remaining Lease Term Operating leases 0.9 1.4 Finance leases 0.4 0.7 Weighted Average Discount Rate Operating leases 4.75 4.75 Finance leases 4.75 4.75 Maturities of lease liabilities are as follows: Year Ending December 31, Operating Leases Finance Leases 2021 (excluding the six months ended June 30, 2021) 74,185 1,042 2022 97,257 — 2023 — — 2024 — — 2025 — — Thereafter — — Total undiscounted lease payments 171,442 1,042 Less: imputed interest (4,959 ) (12 ) Total lease liabilities $ 166,483 $ 1,030

EQUITY

EQUITY	6 Months Ended
	Jun. 30, 2021
Equity [Abstract]
EQUITY	NOTE 7 — EQUITY On June 18, 2020, the Company entered into a Purchase Agreement with Piper Sandler & Co. and Canaccord Genuity LLC, as representatives of the several underwriters named therein (the “Underwriters”), pursuant to which the Company agreed to issue and sel l 3,125,000 30 468,750 June 19, 2020 7.52 26.6 million On November 16, 2020, the Company announced that its Board of Directors had authorized a stock repurchase program under which the Company may purchase up to $ 10.0 million 683,271 3,499,358

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2021
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 8 — SUBSEQUENT EVENTS On July 12, 2021, the lead plaintiff filed a notice of voluntary dismissal without prejudice of the claims in the previously disclosed putative class action lawsuit filed in the United States District Court for the Southern District of New York against the Company and its Chief Financial Officer and former Chief Executive Officer, alleging they made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations and prospects, in the Company’s earnings communications and Form 10-Q filed during the period August 4, 2020 and January 25, 2021.

NATURE OF OPERATIONS AND SUMM_2

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
NATURE OF OPERATIONS	NATURE OF OPERATIONS REPRO MED SYSTEMS, INC. d/b/a KORU Medical Systems (the “Company,” “KORU Medical,” “we,” “us” or “our”) designs, manufactures and markets proprietary portable and innovative medical devices primarily for the ambulatory infusion market as governed by the United States Food and Drug Administration (the “FDA”) quality and regulatory system and international standards for quality system management. The Company operates as one segment.
BASIS OF PRESENTATION	BASIS OF PRESENTATION The accompanying financial statements should be read in conjunction with the Company’s annual report on Form 10-K for the year ended December 31, 2020 (“Annual Report”). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with United States generally accepted accounting principles (“GAAP”) have been condensed or omitted from the accompanying financial statements. The accompanying year-end balance sheet was derived from the audited financial statements included in the Annual Report. The accompanying interim financial statements are unaudited and reflect all adjustments which are in the opinion of management necessary for a fair statement of the Company’s financial position, results of operations, and cash flows for the periods presented. All such adjustments are of a normal, recurring nature. The Company’s results of operations and cash flows for the interim periods are not necessarily indicative of the results of operations and cash flows that it may achieve in future periods.
CASH AND CASH EQUIVALENTS	CASH AND CASH EQUIVALENTS For purposes of the statement of cash flows, the Company considers all short-term investments with an original maturity of three months or less to be cash equivalents. The Company holds cash in excess of $ 250,000
INVENTORY	INVENTORY Inventories of raw materials are stated at the lower of standard cost, which approximates average cost, or market value including allocable overhead. Work-in-process and finished goods are stated at the lower of standard cost or market value and include direct labor and allocable overhead.
PATENTS	PATENTS Costs incurred in obtaining patents have been capitalized and are being amortized over the legal life of the patents.
INCOME TAXES	INCOME TAXES Deferred income taxes are provided using the liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry forwards and deferred tax liabilities are recognized for taxable temporary differences. The Company believes that it has no uncertain tax positions requiring disclosure or adjustment. Generally, tax years starting with 2018 are subject to examination by income tax authorities.
PROPERTY, EQUIPMENT, AND DEPRECIATION	PROPERTY, EQUIPMENT, AND DEPRECIATION Property and equipment is stated at cost and is depreciated using the straight-line method over the estimated useful lives of the respective assets.
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION The Company maintains a stock option plan under which it grants stock options to certain executives, key employees and consultants. The fair value of each option grant is estimated on the date of the grant using the Black-Scholes option-pricing model. All options are charged against income at their fair value. The entire compensation expense of the award is recognized over the vesting period. Shares of stock granted for director fees are recorded at the fair value of the shares at the grant date. The Company also maintains an omnibus equity incentive plan. There have been no awards made pursuant to this plan. The Company issues restricted stock awards. Restricted stock awards are equity classified and measured at the fair market value of the underlying stock at the grant date. The fair value of restricted stock awards vesting at certain market capitalization thresholds were estimated on the date of grant using the Brownian Motion Monte Carlo lattice model. The fair value of restricted stock awards with time-based vesting were estimated on the date of grant at the current stock price. We recognize restricted stock expense using the straight-line attribution method over the requisite service period and account for forfeitures as they occur.
NET INCOME PER COMMON SHARE	NET INCOME PER COMMON SHARE Basic earnings per share are computed on the weighted average of common shares outstanding during each year. Diluted earnings per share include only an increase in the weighted average shares by the common shares issuable upon exercise of employee and consultant stock options. See “NOTE 4 — STOCK-BASED COMPENSATION” for further detail. Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net loss $ (1,124,549 ) $ (1,076,038 ) $ (2,400,687 ) $ (626,610 ) Weighted Average Outstanding Shares: Outstanding shares 44,489,853 40,361,924 44,226,936 40,018,559 Option shares includable — (a) — (a) — (a) — (a) 44,489,853 40,361,924 44,226,936 40,018,559 Net loss per share Basic $ (0.03 ) $ (0.03 ) $ (0.05 ) $ (0.02 ) Diluted $ (0.03 ) $ (0.03 ) $ (0.05 ) $ (0.02 ) __________ (a) For the three months ended June 30, 2021, and 2020, option shares of 224,336 162,831 214,132 182,575
USE OF ESTIMATES IN THE FINANCIAL STATEMENTS	USE OF ESTIMATES IN THE FINANCIAL STATEMENTS The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Important estimates include but are not limited to asset lives, valuation allowances, inventory valuation, and accruals.
REVENUE RECOGNITION	REVENUE RECOGNITION The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers The Company’s revenues result from the sale of assembled products. We recognize revenues when shipment occurs, and at which point the customer obtains control and ownership of the goods. Shipping costs generally are billed to customers and are included in sales. The Company generally does not accept return of goods shipped unless it is a Company error. The only credits provided to customers are for defective merchandise. The Company warrants the syringe driver from defects in materials and workmanship under normal use and the warranty does not include a performance obligation. The costs under the warranty are expensed as incurred. Provisions for distributor pricing and annual customer growth rebates are variable consideration and are recorded as a reduction of revenue in the same period the related sales are recorded or when it is probable the annual growth target will be achieved. Rebates are provided to distributors for the difference in selling price to distributor and pricing specified to select customers. The following table summarizes net sales by geography for the three and six months ended June 30, 2021, and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Sales Domestic $ 4,645,770 $ 6,745,810 $ 9,092,559 $ 12,086,676 International 882,404 963,094 1,866,566 1,952,237 Total $ 5,528,174 $ 7,708,904 $ 10,959,125 $ 14,038,913
LEASES	LEASES In February 2016, the FASB issued a standard related to leases to increase transparency and comparability among organizations by requiring the recognition of right-of-use (“ROU”) assets and lease liabilities on the balance sheet. Most prominent among the changes in the standard is the recognition of ROU assets and lease liabilities by the Company for those leases classified as operating leases under current GAAP, while our accounting for capital leases remains substantially unchanged. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The standard became effective for us on January 1, 2019. The standard had a material impact on our balance sheets but did not have a material impact on our statements of operations. See “NOTE 6 —
ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED	ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes
ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED	ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) The Company considers the applicability and impact of all recently issued accounting pronouncements. Recent accounting pronouncements not specifically identified in our disclosures are either not applicable to the Company or are not expected to have a material effect on our financial condition or results of operations.
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS Fair value is the exit price that would be received to sell an asset or paid to transfer a liability. Fair value is a market-based measurement that should be determined using assumptions that market participants would use in pricing an asset or liability. Valuation techniques used to measure fair value should maximize the use of observable inputs and minimize the use of unobservable inputs. To measure fair value, the Company uses the following fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable: • Level 1 – Quoted prices in active markets for identical assets or liabilities. • Level 2 – Inputs other than Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data by correlation or other means. • 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. Value is determined using pricing models, discounted cash flow methodologies, or similar techniques and includes instruments for which the determination of fair value requires significant judgment or estimation. The carrying amounts of cash and cash equivalents, accounts receivable, prepaid expenses, accounts payable and accrued expenses are considered to be representative of their fair values because of the short-term nature of those instruments. There were no transfers between levels in the fair value hierarchy during the six months ended June 30, 2021.
IMPAIRMENT OF LONG-LIVED ASSETS	IMPAIRMENT OF LONG-LIVED ASSETS The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. An impairment loss would be recognized when estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition are less than the carrying amount. The impairment loss, if recognized, would be based on the excess of the carrying value of the impaired asset over its respective fair value. No impairment losses have been recorded through June 30, 2021.
RECLASSIFICATION	RECLASSIFICATION Certain reclassifications have been made to conform prior period data to the current presentation. These reclassifications had no effect on reported net income.

NATURE OF OPERATIONS AND SUMM_3

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
Basic earnings per share are computed on the weighted average of common shares outstanding during each year. Diluted earnings per share include only an increase in the weighted average shares by the common shares issuable upon exercise of employee and consultant stock options. See “NOTE 4 — STOCK-BASED COMPENSATION” for further detail.	Basic earnings per share are computed on the weighted average of common shares outstanding during each year. Diluted earnings per share include only an increase in the weighted average shares by the common shares issuable upon exercise of employee and consultant stock options. See “NOTE 4 — STOCK-BASED COMPENSATION” for further detail. Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net loss $ (1,124,549 ) $ (1,076,038 ) $ (2,400,687 ) $ (626,610 ) Weighted Average Outstanding Shares: Outstanding shares 44,489,853 40,361,924 44,226,936 40,018,559 Option shares includable — (a) — (a) — (a) — (a) 44,489,853 40,361,924 44,226,936 40,018,559 Net loss per share Basic $ (0.03 ) $ (0.03 ) $ (0.05 ) $ (0.02 ) Diluted $ (0.03 ) $ (0.03 ) $ (0.05 ) $ (0.02 ) __________ (a) For the three months ended June 30, 2021, and 2020, option shares of 224,336 162,831 214,132 182,575
The following table summarizes net sales by geography for the three and six months ended June 30, 2021, and 2020:	The following table summarizes net sales by geography for the three and six months ended June 30, 2021, and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Sales Domestic $ 4,645,770 $ 6,745,810 $ 9,092,559 $ 12,086,676 International 882,404 963,094 1,866,566 1,952,237 Total $ 5,528,174 $ 7,708,904 $ 10,959,125 $ 14,038,913

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	6 Months Ended
	Jun. 30, 2021
Property, Plant and Equipment [Abstract]
Property and equipment consists of the following at:	Property and equipment consists of the following at: June 30, 2021 December 31, 2020 Furniture and office equipment $ 787,694 $ 753,536 Leasehold improvements 556,907 542,796 Manufacturing equipment and tooling 1,922,196 1,856,909 Total property and equipment 3,266,797 3,153,241 Less: accumulated depreciation and amortization (2,156,247 ) (1,985,618 ) Property and equipment, net $ 1,110,550 $ 1,167,623

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2021
Share-based Payment Arrangement [Abstract]
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	June 30, 2021 2020 Dividend yield 0.00% 0.00% Expected Volatility 74.01 74.28 62.1 Weighted-average volatility — — Expected dividends — — Expected term (in years) 10 10 Risk-free rate 1.20 1.62 0.63
The following table summarizes the status of the Plan with respect to time based stock options:	The following table summarizes the status of the Plan with respect to time based stock options: Six Months Ended June 30, 2021 2020 Shares Weighted Shares Weighted Outstanding at January 1 2,922,494 $ 2.46 3,647,000 $ 1.32 Granted 1,250,000 $ 3.94 60,000 $ 9.76 Exercised 1,000,000 $ 1.23 722,000 $ 0.58 Forfeited 100,000 $ 3.94 200,000 $ 2.09 Outstanding at June 30 3,072,494 $ 3.41 2,785,000 $ 1.64 Options exercisable at June 30 871,244 $ 2.18 812,760 $ 1.37 Weighted average fair value of options granted during the period — $ 3.06 — $ 6.68 Stock-based compensation expense — $ 1,528,522 — $ 290,991
The following table presents information pertaining to options outstanding at June 30, 2021:	The following table presents information pertaining to options outstanding at June 30, 2021: Range of Exercise Price Number Weighted Weighted Number Weighted $0.50-$9.76 3,072,494 7.7 $ 3.41 871,244 $ 2.18
The following table summarizes the status of the Plan with respect to performance-based stock options:	The following table summarizes the status of the Plan with respect to performance-based stock options: Six Months Ended June 30, 2021 2020 Shares Weighted Shares Weighted Outstanding at January 1 1,000,000 $ 1.70 1,000,000 $ 1.70 Granted — $ — — $ — Exercised — $ — — $ — Forfeited 1,000,000 $ 1.70 — $ — Outstanding at June 30 — $ — 1,000,000 $ 1.70 Options exercisable at June 30 — $ — — $ — Weighted average fair value of options granted during the period — $ — — $ — Stock-based compensation expense — $ (408,747 ) — $ 373,826
The following table summarizes the activities for our unvested restricted stock awards for the six months ended June 30, 2021, and 2020.	The following table summarizes the activities for our unvested restricted stock awards for the six months ended June 30, 2021, and 2020. Six Months Ended June 30, 2021 2020 Shares Weighted Shares Weighted Unvested at January 1 — $ — — $ — Granted 1,000,000 $ 3.01 — $ — Vested — $ — — $ — Forfeited/canceled — $ — — $ — Unvested at June 30 1,000,000 $ 3.01 — $ —

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Jun. 30, 2021
Leases [Abstract]
The components of lease expense were as follows:	The components of lease expense were as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Operating lease cost $ 37,369 $ 37,921 $ 75,290 $ 75,843 Short-term lease cost 33,548 8,231 68,437 13,688 Total lease cost $ 70,917 $ 46,152 $ 143,727 $ 89,531 Finance lease cost: Amortization of right-of-use assets $ 794 $ 1,855 $ 1,589 $ 3,711 Interest on lease liabilities 19 65 47 152 Total finance lease cost $ 813 $ 1,920 $ 1,636 $ 3,863
Supplemental cash flow information related to leases was as follows:	Supplemental cash flow information related to leases was as follows: Six Months Ended June 30, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 70,363 $ 67,633 Financing cash flows from finance leases 1,616 3,717
Supplemental balance sheet information related to leases was as follows:	Supplemental balance sheet information related to leases was as follows: June 30, December 31, Operating Leases Operating lease right-of-use assets $ 166,483 $ 236,846 Operating lease current liabilities 142,450 141,293 Operating lease long term liabilities 24,033 95,553 Total operating lease liabilities $ 166,483 $ 236,846 Finance Leases Property and equipment, at cost $ 12,725 $ 12,725 Accumulated depreciation (11,729 ) (10,139 ) Property and equipment, net $ 996 $ 2,586 Finance lease current liabilities 1,030 2,646 Finance lease long term liabilities — — Total finance lease liabilities $ 1,030 $ 2,646 June 30, December 31, Weighted Average Remaining Lease Term Operating leases 0.9 1.4 Finance leases 0.4 0.7 Weighted Average Discount Rate Operating leases 4.75 4.75 Finance leases 4.75 4.75
Maturities of lease liabilities are as follows:	Maturities of lease liabilities are as follows: Year Ending December 31, Operating Leases Finance Leases 2021 (excluding the six months ended June 30, 2021) 74,185 1,042 2022 97,257 — 2023 — — 2024 — — 2025 — — Thereafter — — Total undiscounted lease payments 171,442 1,042 Less: imputed interest (4,959 ) (12 ) Total lease liabilities $ 166,483 $ 1,030

Basic earnings per share are co

Basic earnings per share are computed on the weighted average of common shares outstanding during each year. Diluted earnings per share include only an increase in the weighted average shares by the common shares issuable upon exercise of employee and con (Details) - USD ($)	3 Months Ended				6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Subsidiary, Sale of Stock [Line Items]
Net loss	$ (1,124,549)	$ (1,276,138)	$ (1,076,038)	$ 449,428	$ (2,400,687)	$ (626,610)
Weighted Average Outstanding Shares:
Outstanding shares	44,489,853		40,361,924		44,226,936	40,018,559
	44,489,853		40,361,924		44,226,936	40,018,559
Net loss per share
Basic	$ (0.03)		$ (0.03)		$ (0.05)	$ (0.02)
Diluted	$ (0.03)		$ (0.03)		$ (0.05)	$ (0.02)
Employee Stock [Member]
Net loss per share
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	224,336		162,831		214,132	182,575

The following table summarizes

The following table summarizes net sales by geography for the three and six months ended June 30, 2021, and 2020: (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Net sales	$ 5,528,174	$ 7,708,904	$ 10,959,125	$ 14,038,913
UNITED STATES
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Net sales	4,645,770	6,745,810	9,092,559	12,086,676
Non-US [Member]
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Net sales	$ 882,404	$ 963,094	$ 1,866,566	$ 1,952,237

NATURE OF OPERATIONS AND SUMM_4

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Subsidiary, Sale of Stock [Line Items]
FDIC cash uninsured amount	$ 250,000		$ 250,000
Employee Stock [Member]
Subsidiary, Sale of Stock [Line Items]
Anti-dilutive shares	224,336	162,831	214,132	182,575

Property and equipment consists

Property and equipment consists of the following at: (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 3,266,797	$ 3,153,241
Less: accumulated depreciation and amortization	(2,156,247)	(1,985,618)
Property and equipment, net	1,110,550	1,167,623
Furniture and Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	787,694	753,536
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	556,907	542,796
Manufacturing Equipment And Tooling [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 1,922,196	$ 1,856,909

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 100,564	$ 79,245	$ 200,967	$ 152,013

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details) - 2015 Stock Option Plan [Member] - Time Based Shares Options [Member] - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.00%	0.00%
Expected Volatility		62.10%
Weighted-average volatility	0.00%	0.00%
Expected dividends	$ 0	$ 0
Expected term (in years)	10 years	10 years
Risk-free rate		0.63%
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected Volatility	74.01%
Risk-free rate	1.20%
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected Volatility	74.28%
Risk-free rate	1.62%

The following table summarize_2

The following table summarizes the status of the Plan with respect to time based stock options: (Details) - 2015 Stock Option Plan [Member] - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at beginning	2,922,494	3,647,000
Outstanding at beginning	$ 2.46	$ 1.32
Granted	1,250,000	60,000
Granted	$ 3.94	$ 9.76
Exercised	1,000,000	722,000
Exercised	$ 1.23	$ 0.58
Forfeited	100,000	200,000
Forfeited	$ 3.94	$ 2.09
Outstanding at ending	3,072,494	2,785,000
Outstanding at ending	$ 3.41	$ 1.64
Options exercisable at ending	871,244	812,760
Options exercisable at ending	$ 2.18	$ 1.37
Weighted average fair value of options granted during the period	$ 3.06	$ 6.68
Stock-based compensation expense	$ 1,528,522	$ 290,991

The following table presents in

The following table presents information pertaining to options outstanding at June 30, 2021: (Details) - 2015 Stock Option Plan [Member] - Time Based Shares Options [Member] - $ 0.38 - 3.15 [Member]	6 Months Ended
	Jun. 30, 2021$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number Outstanding | shares	3,072,494
Weighted Average Remaining Contractual Term	7 years 8 months 12 days
Weighted Average Exercise Price | $ / shares	$ 3.41
Number Exercisable | shares	871,244
Weighted Average Exercise Price | $ / shares	$ 2.18

The following table summarize_3

The following table summarizes the status of the Plan with respect to performance-based stock options: (Details) - 2015 Stock Option Plan [Member] - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at beginning	2,922,494	3,647,000
Outstanding at beginning	$ 2.46	$ 1.32
Granted	1,250,000	60,000
Granted	$ 3.94	$ 9.76
Exercised	1,000,000	722,000
Exercised	$ 1.23	$ 0.58
Forfeited	100,000	200,000
Forfeited	$ 3.94	$ 2.09
Outstanding at ending	3,072,494	2,785,000
Outstanding at ending	$ 3.41	$ 1.64
Options exercisable at ending	871,244	812,760
Options exercisable at ending	$ 2.18	$ 1.37
Weighted average fair value of options granted during the period	$ 3.06	$ 6.68
Stock-based compensation expense	$ 1,528,522	$ 290,991
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at beginning	1,000,000	1,000,000
Outstanding at beginning	$ 1.70	$ 1.70
Granted	0	0
Granted	$ 0	$ 0
Exercised	0	0
Exercised	$ 0	$ 0
Forfeited	1,000,000	0
Forfeited	$ 1.70	$ 0
Outstanding at ending	0	1,000,000
Outstanding at ending		$ 1.70
Options exercisable at ending	0	0
Options exercisable at ending	$ 0
Weighted average fair value of options granted during the period
Stock-based compensation expense	$ (408,747)	$ 373,826

The following table summarize_4

The following table summarizes the activities for our unvested restricted stock awards for the six months ended June 30, 2021, and 2020. (Details) - 2015 Stock Option Plan [Member] - Restricted Stock Awards [Member] - $ / shares	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at beginning	0	0
Outstanding at beginning	$ 0	$ 0
Granted	1,000,000	0
Granted	$ 3.01	$ 0
Vested	0	0
Vested	$ 0	$ 0
Forfeited/canceled	0	0
Forfeited/canceled	$ 0	$ 0
Outstanding at ending	1,000,000	0
Outstanding at ending	$ 3.01

STOCK-BASED COMPENSATION (Det_2

STOCK-BASED COMPENSATION (Details Narrative) - USD ($)

Apr. 12, 2021

Mar. 22, 2021

Mar. 15, 2021

Feb. 16, 2021

Feb. 15, 2021

Jan. 02, 2021

May 20, 2020

Oct. 01, 2019

Apr. 23, 2019

Jan. 02, 2019

Jun. 30, 2021

Jun. 30, 2020

May 18, 2021

Settlement Agreement [Member] | EMED Technologies Corporation [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Description of vesting rights

the Company issued to EMED (i) 95,238 restricted stock units, which vested on May 21, 2020, and 95,238 restricted stock units, which vested on January 1, 2021, and (ii) an option to purchase up to 400,000 shares of the Company’s common stock at an exercise price of $11.21 per share prior to February 1, 2021, which was not exercised.

Non-Employee Director [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Nonemployee services transaction cost

$ 50,000

Amount for chairing board committee

$ 10,000

Board of Directors Chairman [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Nonemployee services transaction cost

$ 100,000

$ 50,000

$ 140,000

Description of non employee services transaction

to be paid quarterly $12,500 in cash and $12,500 in common stock.

to be paid quarterly $12,500 in cash and $22,500 in common stock

Non-Employee Director and Board Advisor [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Nonemployee services transaction cost

$ 75,000

$ 110,000

Description of non employee services transaction

to be paid quarterly $12,500 in cash and $6,250 in common stock.

to be paid quarterly $12,500 in cash and $15,000 in common stock.

James M. Beck [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Number of stock option shares issued

150,000

Exercise price

$ 4.37

Number of shares vested

50,000

100,000

Linda Tharby [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Number of stock option shares issued

1,000,000

1,000,000

Exercise price

$ 3.875

Description of vesting rights

25% on March 15, 2022 and 25% each twelve months thereafter.

Number of stock option shares issued, value

$ 3,310,000

Donald Pettigrew [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Number of options exercised

1,000,000

Cash received from option exercises

$ 1,230,000

2015 Stock Option Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Number of stock option shares

6,000,000

Weighted average grant date fair value of stock options

$ 3.06

$ 6.68

Stock-based compensation expense

$ 1,528,522

$ 290,991

Allocated stock-based compensation expense

$ (1,528,522)

$ (290,991)

2015 Stock Option Plan [Member] | Time Based Shares Options [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Number of options exercised

1,000,000

722,000

Cash received from option exercises

$ 1,230,000

$ 95,880

Weighted average grant date fair value of stock options

$ 3.06

$ 6.68

Tax benefits associated with stock-based compensation

$ 9,817

$ 31,196

Stock-based compensation expense

1,528,522

290,991

Weighted-average grant-date fair value options granted

3,800

400

Total unrecognized compensation cost

$ 5,400

Weighted-average period (in years)

46 months

Total fair value of shares vested

$ 1,378,220

1,110,068

Allocated stock-based compensation expense

$ (1,528,522)

$ (290,991)

2015 Stock Option Plan [Member] | Performance Shares [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Weighted average grant date fair value of stock options

Stock-based compensation expense

$ (408,747)

$ 373,826

Total unrecognized compensation cost

0

Allocated stock-based compensation expense

408,747

(373,826)

2015 Stock Option Plan [Member] | Restricted Stock Awards [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock-based compensation expense

13,888

0

Total unrecognized compensation cost

$ 2,458,451

Weighted-average period (in years)

21 months

Allocated stock-based compensation expense

$ (13,888)

$ 0

Employees and Consultants under the Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Number of stock option shares

1,150,000

Number of stock option shares issued

3,072,494

DEBT OBLIGATIONS (Details Narra

DEBT OBLIGATIONS (Details Narrative) - USD ($)	Jun. 24, 2020	Apr. 27, 2020	Apr. 14, 2020	Jun. 30, 2021
Promissory Note [Member] | Revolving Credit Facility [Member] | KeyBank National Association [Member]
Line of Credit Facility [Line Items]
Face amount				$ 3,500,000
KeyBank National Association [Member] | Promissory Note [Member]
Line of Credit Facility [Line Items]
Face amount			$ 3,500,000
KeyBank National Association [Member] | Promissory Note [Member] | Line of Credit [Member]
Line of Credit Facility [Line Items]
Face amount			$ 3,500,000
Interest rate terms	Prime Rate announced by the Bank minus 1.50%		Prime Rate announced by the Bank minus 0.75%
Debt instrument, principal and unpaid interest due			Jun. 1, 2022
Debt instrument, prepaid terms			any time prior to maturity with no prepayment penalties.
Key Equipment Finance [Member] | Progress Payment Loan and Security Agreement And Master Security Agreement [Member]
Line of Credit Facility [Line Items]
Interest rate terms		fixed rate of 4.07% per annum
Loans, principal amount		$ 2,500,000
Principal and interest payable terms		84 equal consecutive monthly installments.

The components of lease expense

The components of lease expense were as follows: (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Leases [Abstract]
Operating lease cost	$ 37,369	$ 37,921	$ 75,290	$ 75,843
Short-term lease cost	33,548	8,231	68,437	13,688
Total lease cost	70,917	46,152	143,727	89,531
Finance lease cost:
Amortization of right-of-use assets	794	1,855	1,589	3,711
Interest on lease liabilities	19	65	47	152
Total finance lease cost	$ 813	$ 1,920	$ 1,636	$ 3,863

Supplemental cash flow informat

Supplemental cash flow information related to leases was as follows: (Details) - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 70,363	$ 67,633
Financing cash flows from finance leases	$ 1,616	$ 3,717

Supplemental balance sheet info

Supplemental balance sheet information related to leases was as follows: (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Operating Leases
Operating lease right-of-use assets	$ 166,483	$ 236,846
Operating lease current liabilities	142,450	141,293
Operating lease long term liabilities	24,033	95,553
Total operating lease liabilities	166,483	236,846
Finance Leases
Property and equipment, at cost	12,725	12,725
Accumulated depreciation	(11,729)	(10,139)
Property and equipment, net	996	2,586
Finance lease current liabilities	1,030	2,646
Finance lease long term liabilities
Total finance lease liabilities	$ 1,030	$ 2,646
Operating leases	10 months 24 days	1 year 4 months 24 days
Finance leases	4 months 24 days	8 months 12 days
Operating leases	4.75%	4.75%
Finance leases	4.75%	4.75%

Maturities of lease liabilities

Maturities of lease liabilities are as follows: (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Leases [Abstract]
2021 (excluding the six months ended June 30, 2021)	$ 74,185
2021 (excluding the six months ended June 30, 2021)	1,042
2022	97,257
2022	0
2023	0
2023	0
2024	0
2024	0
2025	0
2025	0
Thereafter	0
Thereafter	0
Total undiscounted operating lease payments	171,442
Total undiscounted finance lease payments	1,042
Less: imputed interest	(4,959)
Less: imputed interest	(12)
Total operating lease liabilities	166,483	$ 236,846
Total finance lease liabilities	$ 1,030	$ 2,646

LEASES (Details Narrative)

LEASES (Details Narrative)	6 Months Ended
	Jun. 30, 2021
Leases [Abstract]
Operating lease, options to terminate	1 year

EQUITY (Details Narrative)

EQUITY (Details Narrative) - USD ($)	Nov. 16, 2020	Jun. 18, 2020	Jun. 30, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Maximum amount of stock repurchase program	$ 10,000,000
Number of shares repurchased			683,271
Aggregate amount stock repurchase			$ 3,499,358
Purchase Agreement [Member] | Piper Sandler & Co. and Canaccord Genuity LLC [Member] | Common Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of shares issued		3,125,000
Option excercise period		30 days
Option to purchase additional number of shares		468,750
Option excercise date		Jun. 19, 2020
Share price (in dollars per share)		$ 7.52
Proceeds from issuance		$ 26,600,000