KORU Medical Systems (KRMD) 10-Q 10 Nov 21 2021 Q3 Quarterly report Financial data

Cover

Cover - $ / shares	Nov. 10, 2021	Sep. 30, 2021
Cover [Abstract]
Document Type		10-Q
Amendment Flag		false
Document Quarterly Report		true
Document Transition Report		false
Document Period End Date		Sep. 30, 2021
Document Fiscal Period Focus		Q3
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	44,561,160
Entity Listing, Par Value Per Share	$ 0.01
Treasury Stock, Common, Shares	3,420,502

BALANCE SHEETS (UNAUDITED)

BALANCE SHEETS (UNAUDITED) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
CURRENT ASSETS
Cash and cash equivalents	$ 26,233,411	$ 27,315,286
Accounts receivable less allowance for doubtful accounts of $24,469 for September 30, 2021 and December 31, 2020	3,122,665	2,572,954
Inventory	6,967,932	6,829,772
Prepaid expenses	1,336,819	807,780
TOTAL CURRENT ASSETS	37,660,827	37,525,792
Property and equipment, net	1,159,819	1,167,623
Intangible assets, net of accumulated amortization of $248,252 and $199,899 at September 30, 2021 and December 31, 2020, respectively	821,071	843,587
Operating lease right-of-use assets	131,228	236,846
Deferred income tax assets, net	1,565,334	125,274
Other assets	19,812	19,812
TOTAL ASSETS	41,358,091	39,918,934
CURRENT LIABILITIES
Accounts payable	1,385,413	624,920
Accrued expenses	2,036,848	2,610,413
Accrued payroll and related taxes	332,814	287,130
Finance lease liability – current	414	2,646
Operating lease liability – current	131,228	141,293
Note Payable	673,133
TOTAL CURRENT LIABILITIES	4,559,850	3,666,402
Operating lease liability, net of current portion		95,553
TOTAL LIABILITIES	4,559,850	3,761,955
STOCKHOLDERS’ EQUITY
Common stock, $0.01 par value, 75,000,000 shares authorized, 47,931,664 and 46,680,119 shares issued 44,511,162 and 43,259,617 shares outstanding at September 30, 2021 and December 31, 2020, respectively	479,317	466,801
Additional paid-in capital	40,004,197	35,880,986
Treasury stock, 3,420,502 shares at September 30, 2021 and December 31, 2020, at cost	(3,843,562)	(3,843,562)
Retained earnings	158,289	3,652,754
TOTAL STOCKHOLDERS’ EQUITY	36,798,241	36,156,979
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 41,358,091	$ 39,918,934

BALANCE SHEETS (UNAUDITED) (Par

BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Accounts Receivable, Allowance for Credit Loss, Current	$ 24,469	$ 24,469
Finite-Lived Intangible Assets, Accumulated Amortization	$ 248,252	$ 199,899
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	75,000,000	75,000,000
Common Stock, Shares, Issued	47,931,664	46,680,119
Common Stock, Shares, Outstanding	44,511,162	43,259,617
Treasury Stock, Shares	3,420,502	3,420,502

STATEMENTS OF OPERATIONS (Unaud

STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Statement [Abstract]
NET SALES	$ 6,040,544	$ 6,080,315	$ 16,999,669	$ 20,119,228
Cost of goods sold	2,544,794	2,139,592	7,061,881	7,480,415
Gross Profit	3,495,750	3,940,723	9,937,788	12,638,813
OPERATING EXPENSES
Selling, general and administrative	3,901,830	3,075,169	12,980,604	9,039,980
Litigation		675		2,446,747
Research and development	800,020	390,416	1,523,739	944,637
Depreciation and amortization	115,934	115,637	349,822	297,801
Total Operating Expenses	4,817,784	3,581,897	14,854,165	12,729,165
Net Operating (Loss)/Profit	(1,322,034)	358,826	(4,916,377)	(90,352)
Non-Operating (Expense)/Income
(Loss)/Gain on currency exchange	(7,283)	1,927	(21,761)	(11,164)
Gain on disposal of fixed assets, net	273	22,113	1,009	16,591
Interest (expense)/income, net	(2,838)	9,662	16,883	23,690
TOTAL OTHER (EXPENSE)/INCOME	(9,848)	33,702	(3,869)	29,117
(LOSS)/INCOME BEFORE INCOME TAXES	(1,331,882)	392,528	(4,920,246)	(61,235)
Income Tax Benefit/(Expense)	238,104	(143,353)	1,425,781	(316,200)
NET (LOSS)/INCOME	$ (1,093,778)	$ 249,175	$ (3,494,465)	$ (377,435)
NET (LOSS)/INCOME PER SHARE
Basic	$ (0.02)	$ 0.01	$ (0.08)	$ (0.01)
Diluted	$ (0.02)	$ 0.01	$ (0.08)	$ (0.01)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
Basic	44,322,335	43,914,542	44,510,021	41,326,815
Diluted	44,322,335	44,119,511	44,510,021	41,326,815

STATEMENTS OF CASH FLOWS (UNAUD

STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$ (3,494,465)	$ (377,435)
Adjustments to reconcile net loss to net cash (used in)/provided by operating activities:
Stock-based compensation expense	1,967,632	1,191,146
Stock-based litigation settlement expense		1,285,102
Depreciation and amortization	349,822	297,801
Deferred income taxes	(1,440,060)	(161,368)
Gain on disposal of fixed assets	(1,009)	(16,591)
Changes in operating assets and liabilities:
Increase in accounts receivable	(549,711)	(502,075)
Increase in inventory	(138,160)	(3,244,662)
Increase in prepaid expenses and other assets	(529,039)	(457,330)
Increase in accounts payable	760,493	790,414
Increase in accrued payroll and related taxes	45,684	249,879
(Decrease)/Increase in accrued expenses	(573,565)	1,754,970
Increase in accrued tax liability		158,586
NET CASH (USED IN)/PROVIDED BY OPERATING ACTIVITIES	(3,602,378)	968,437
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(301,720)	(908,323)
Proceeds from disposal of property and equipment	9,065	25,000
Purchases of intangible assets	(25,838)	(124,216)
NET CASH USED IN INVESTING ACTIVITIES	(318,493)	(1,007,539)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings from indebtedness	924,389	4,976,508
Payments on indebtedness	(251,255)	(4,976,508)
Proceeds from issuance of equity	1,230,000	26,606,486
Common stock issuance as settlement for litigation	938,094
Payments on finance lease liability	(2,232)	(4,502)
NET CASH PROVIDED BY FINANCING ACTIVITIES	2,838,996	26,601,984
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS	(1,081,875)	26,562,882
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	27,315,286	5,870,929
CASH AND CASH EQUIVALENTS, END OF PERIOD	26,233,411	32,433,811
Cash paid during the periods for:
Interest	6,194	27,698
Income Taxes	850	318,983
Schedule of Non-Cash Operating, Investing and Financing Activities:
Issuance of common stock as compensation	295,947	180,006
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
Shares, Outstanding, Beginning Balance at Dec. 31, 2019	42,239,788
Issuance of stock-based compensation	$ 92	59,910			60,002
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture	9,189
Compensation expense related to stock options		300,966			300,966
Issuance upon options exercised	$ 1,750	83,750			85,500
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	175,000
Net income			449,428		449,428
Ending balance, value at Mar. 31, 2020	$ 424,240	6,737,695	5,314,245	(344,204)	12,131,976
Shares, Outstanding, Ending Balance at Mar. 31, 2020	42,423,977
Cancellation of common stock
Beginning balance, value at Dec. 31, 2019	$ 422,398	6,293,069	4,864,817	(344,204)	11,236,080
Shares, Outstanding, Beginning Balance at Dec. 31, 2019	42,239,788
Net income					(377,435)
Ending balance, value at Sep. 30, 2020	$ 466,718	35,331,483	4,487,382	(344,204)	39,941,379
Shares, Outstanding, Ending Balance at Sep. 30, 2020	46,671,807
Beginning balance, value at Mar. 31, 2020	$ 424,240	6,737,695	5,314,245	(344,204)	12,131,976
Shares, Outstanding, Beginning Balance at Mar. 31, 2020	42,423,977
Issuance of stock-based compensation	$ 80	59,922			60,002
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture	7,999
Compensation expense related to stock options		363,851			363,851
Litigation settlement share issuance	$ 952	937,142			938,094
[custom:NewIssuanceLitigationSettlementShareIssuance]	95,238
Issuance upon options exercised	$ 5,192	5,189			10,381
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	519,156
Net income			(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
Shares, Outstanding, Ending Balance at Jun. 30, 2020	46,640,120
Litigation settlement options		347,008			347,008
Capital raise	$ 35,937	26,436,043			26,471,980
[custom:NewIssuanceOfCapitalRaiseShares]	3,593,750
Issuance of stock-based compensation	$ 67	59,935			60,002
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture	6,681
Compensation expense related to stock options		346,323			346,323
Issuance upon options exercised	$ 250	(250)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	25,006
Net income			249,175		249,175
Ending balance, value at Sep. 30, 2020	$ 466,718	35,331,483	4,487,382	(344,204)	39,941,379
Shares, Outstanding, Ending Balance at Sep. 30, 2020	46,671,807
Capital raise		38,625			38,625
Beginning balance, value at Dec. 31, 2020	$ 466,801	35,880,986	3,652,754	(3,843,562)	36,156,979
Shares, Outstanding, Beginning Balance at Dec. 31, 2020	46,680,119
Issuance of stock-based compensation	$ 101	56,149			56,250
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture	10,124
Compensation expense related to stock options		677,934			677,934
Litigation settlement share issuance	$ 952	937,142			938,094
[custom:NewIssuanceLitigationSettlementShareIssuance]	95,238
Issuance upon options exercised	$ 11,106	1,218,894			1,230,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	1,110,580
Net income			(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
Shares, Outstanding, Ending Balance 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
Shares, Outstanding, Beginning Balance at Dec. 31, 2020	46,680,119
Net income					(3,494,465)
Ending balance, value at Sep. 30, 2021	$ 479,317	40,004,197	158,289	(3,843,562)	36,798,241
Shares, Outstanding, Ending Balance at Sep. 30, 2021	47,931,664
Beginning balance, value at Mar. 31, 2021	$ 478,960	38,771,105	2,376,616	(3,843,562)	37,783,119
Shares, Outstanding, Beginning Balance at Mar. 31, 2021	47,896,061
Issuance of stock-based compensation	$ 146	97,050			97,196
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture	14,615
Compensation expense related to stock options		441,841			441,841
Net income			(1,124,549)		(1,124,549)
Compensation expense related to restricted stock awards		66,135			66,135
Ending balance, value at Jun. 30, 2021	$ 479,106	39,376,131	1,252,067	(3,843,562)	37,263,742
Shares, Outstanding, Ending Balance at Jun. 30, 2021	47,910,676
Issuance of stock-based compensation	$ 211	142,290			142,501
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture	20,988
Compensation expense related to stock options		406,414			406,414
Net income			(1,093,778)		(1,093,778)
Compensation expense related to restricted stock awards		79,362			79,362
Ending balance, value at Sep. 30, 2021	$ 479,317	$ 40,004,197	$ 158,289	$ (3,843,562)	$ 36,798,241
Shares, Outstanding, Ending Balance at Sep. 30, 2021	47,931,664

NATURE OF OPERATIONS AND SUMMAR

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 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. To date the Company has only granted shares of stock for director fees under this plan and those shares of stock granted are recorded at the fair value of the shares at the grant date. 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 Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Net (loss)/income $ (1,093,778 ) $ 249,175 $ (3,494,465 ) $ (377,435 ) Weighted Average Outstanding Shares: Outstanding shares 44,322,335 43,914,542 44,510,021 41,326,815 Option shares includable — (a) 204,969 (a) — (a) — (a) 44,322,335 44,119,511 44,510,021 41,326,815 Net (loss)/income per share Basic $ (0.02 ) $ 0.01 $ (0.08 ) $ (0.01 ) Diluted $ (0.02 ) $ 0.01 $ (0.08 ) $ (0.01 ) __________ (a) For the three months ended September 30, 2021, option shares of 296,504 244,422 203,121 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 nine months ended September 30, 2021, and 2020: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Sales Domestic $ 5,254,336 $ 5,372,536 $ 14,346,895 $ 17,459,212 International 786,208 707,779 2,652,774 2,660,016 Total $ 6,040,544 $ 6,080,315 $ 16,999,669 $ 20,119,228 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 nine months ended September 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 September 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	9 Months Ended
	Sep. 30, 2021
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 2 — PROPERTY AND EQUIPMENT Property and equipment consists of the following at September 30, 2021 December 31, 2020 Furniture and office equipment $ 799,761 $ 753,536 Leasehold improvements 556,907 542,796 Manufacturing equipment and tooling 2,028,807 1,856,909 Total property and equipment 3,385,475 3,153,241 Less: accumulated depreciation and amortization (2,225,656 ) (1,985,618 ) Property and equipment, net $ 1,159,819 $ 1,167,623 Depreciation expense was $ 100,502 99,071 301,469 251,084

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 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. 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	9 Months Ended
	Sep. 30, 2021
Share-based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	NOTE 4 — STOCK-BASED COMPENSATION The Company has two equity incentive plans: the 2015 Stock Option Plan, as amended (the “2015 Plan”) and the 2021 Omnibus Equity Incentive Plan (the “2021 Plan”). As of September 30, 2021, there were options to purchase 3,385,000 1,650,000 6,000,000 1,000,000 20,988 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 were 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 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 2015 STOCK OPTION PLAN, as amended Time Based Stock Options The per share weighted average fair value of stock options granted during the nine months ended September 30, 2021 and September 30, 2020 was $ 2.93 6.53 stock-based compensation 56,102 150,566 September 30, 2021 2020 Dividend yield 0.00% 0.00% Expected Volatility 74.01 76.77 62.11 62.18 Weighted-average volatility — — Expected dividends — — Expected term (in years) 10 10 Risk-free rate 1.20 1.62 0.63 0.64 The following table summarizes the status of the Plan with respect to time based stock options: Nine Months Ended September 30, 2021 2020 Shares Weighted Shares Weighted Outstanding at January 1 2,922,494 $ 2.46 3,647,000 $ 1.32 Granted 1,650,000 $ 3.75 360,000 $ 9.54 Exercised 1,000,000 $ 1.23 747,006 $ 0.65 Forfeited 187,494 $ 3.36 200,000 $ 2.09 Outstanding at September 30 3,385,000 $ 3.39 3,059,994 $ 2.40 Options exercisable at September 30 1,005,625 $ 2.65 1,009,629 $ 1.36 Weighted average fair value of options granted during the period — $ 2.93 — $ 6.53 Stock-based compensation expense — $ 1,934,935 — $ 572,775 Total stock-based compensation expense was $ 1,934,935 572,775 1,230,000 95,880 The weighted-average grant-date fair value of options granted during the nine months ended September 30, 2021, and 2020 was $ 4.8 million 2.4 million 1.0 million 747,006 The following table presents information pertaining to options outstanding at September 30, 2021: Range of Exercise Price Number Weighted Weighted Number Weighted $0.50-$9.76 3,385,000 7.8 $ 3.39 1,005,625 $ 2.65 As of September 30, 2021, there was $ 5.8 million 46 1,909,141 874,041 Performance Based Stock Options There were no stock options granted during the nine months ended September 30, 2021, and 2020. The following table summarizes the status of the Plan with respect to performance-based stock options Nine Months Ended September 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 September 30 — $ — 1,000,000 $ 1.70 Options exercisable at September 30 — $ — 333,333 $ 1.70 Weighted average fair value of options granted during the period — $ — — $ — Stock-based compensation expense — $ (408,747 ) — $ 438,365 Total performance stock-based compensation expense totaled ($408,747) and $ 438,365 no RESTRICTED STOCK AWARDS 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 and as an inducement to her employment, the Company issued three restricted stock awards for an aggregate 1,000,000 3,310,000 The following table summarizes the activities for our unvested restricted stock awards for the nine months ended September 30, 2021, and 2020. Nine Months Ended September 30, 2021 2020 Shares Weighted Shares Weighted Unvested at January 1 — $ — — $ — Granted 1,000,000 $ 3.01 — $ — Vested — $ — — $ — Forfeited/canceled — $ — — $ — Unvested at September 30 1,000,000 $ 3.01 — $ — As of September 30, 2021, there was $ 2,379,089 39 30,554 zero

DEBT OBLIGATIONS

DEBT OBLIGATIONS	9 Months Ended
	Sep. 30, 2021
Debt Disclosure [Abstract]
DEBT OBLIGATIONS	NOTE 5 — DEBT OBLIGATIONS On July 26, 2021, the Company entered into a commercial insurance premium finance and security agreement with AON Premium Finance, LLC in the aggregate principal amount of $ 0.9 million 4.17 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 September 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	9 Months Ended
	Sep. 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 Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Operating lease cost $ 37,093 $ 37,921 $ 112,383 $ 113,764 Short-term lease cost 35,960 19,846 104,396 33,535 Total lease cost $ 73,053 $ 57,767 $ 216,779 $ 147,299 Finance lease cost: Amortization of right-of-use assets $ 597 $ 791 $ 2,188 $ 4,502 Interest on lease liabilities 10 47 57 199 Total finance lease cost $ 607 $ 838 $ 2,245 $ 4,701 Supplemental cash flow information related to leases was as follows: Nine Months Ended September 30, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 105,618 $ 113,764 Financing cash flows from finance leases 2,232 4,502 Supplemental balance sheet information related to leases was as follows: September 30, December 31, Operating Leases Operating lease right-of-use assets $ 131,228 $ 236,846 Operating lease current liabilities 131,228 141,293 Operating lease long term liabilities — 95,553 Total operating lease liabilities $ 131,228 $ 236,846 Finance Leases Property and equipment, at cost $ 12,725 $ 12,725 Accumulated depreciation (12,327 ) (10,139 ) Property and equipment, net $ 398 $ 2,586 Finance lease current liabilities 414 2,646 Finance lease long term liabilities — — Total finance lease liabilities $ 414 $ 2,646 September 30, December 31, Weighted Average Remaining Lease Term Operating leases 0.9 1.4 Finance leases 0.2 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 nine months ended September 30, 2021) $ 37,092 $ 417 2022 97,257 — 2023 — — 2024 — — 2025 — — Thereafter — — Total undiscounted lease payments 134,349 417 Less: imputed interest (3,121 ) (3 ) Total lease liabilities $ 131,228 $ 414

EQUITY

EQUITY	9 Months Ended
	Sep. 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 sell 3,125,000 shares of its common stock. Under the terms of the Purchase Agreement, the Company granted to the Underwriters an option, exercisable for a period of 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

NATURE OF OPERATIONS AND SUMM_2

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 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. To date the Company has only granted shares of stock for director fees under this plan and those shares of stock granted are recorded at the fair value of the shares at the grant date. 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 Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Net (loss)/income $ (1,093,778 ) $ 249,175 $ (3,494,465 ) $ (377,435 ) Weighted Average Outstanding Shares: Outstanding shares 44,322,335 43,914,542 44,510,021 41,326,815 Option shares includable — (a) 204,969 (a) — (a) — (a) 44,322,335 44,119,511 44,510,021 41,326,815 Net (loss)/income per share Basic $ (0.02 ) $ 0.01 $ (0.08 ) $ (0.01 ) Diluted $ (0.02 ) $ 0.01 $ (0.08 ) $ (0.01 ) __________ (a) For the three months ended September 30, 2021, option shares of 296,504 244,422 203,121
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 nine months ended September 30, 2021, and 2020: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Sales Domestic $ 5,254,336 $ 5,372,536 $ 14,346,895 $ 17,459,212 International 786,208 707,779 2,652,774 2,660,016 Total $ 6,040,544 $ 6,080,315 $ 16,999,669 $ 20,119,228
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 nine months ended September 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 September 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)	9 Months Ended
	Sep. 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 Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Net (loss)/income $ (1,093,778 ) $ 249,175 $ (3,494,465 ) $ (377,435 ) Weighted Average Outstanding Shares: Outstanding shares 44,322,335 43,914,542 44,510,021 41,326,815 Option shares includable — (a) 204,969 (a) — (a) — (a) 44,322,335 44,119,511 44,510,021 41,326,815 Net (loss)/income per share Basic $ (0.02 ) $ 0.01 $ (0.08 ) $ (0.01 ) Diluted $ (0.02 ) $ 0.01 $ (0.08 ) $ (0.01 )
The following table summarizes net sales by geography for the three and nine months ended September 30, 2021, and 2020:	The following table summarizes net sales by geography for the three and nine months ended September 30, 2021, and 2020: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Sales Domestic $ 5,254,336 $ 5,372,536 $ 14,346,895 $ 17,459,212 International 786,208 707,779 2,652,774 2,660,016 Total $ 6,040,544 $ 6,080,315 $ 16,999,669 $ 20,119,228

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	9 Months Ended
	Sep. 30, 2021
Property, Plant and Equipment [Abstract]
Property and equipment consists of the following at	Property and equipment consists of the following at September 30, 2021 December 31, 2020 Furniture and office equipment $ 799,761 $ 753,536 Leasehold improvements 556,907 542,796 Manufacturing equipment and tooling 2,028,807 1,856,909 Total property and equipment 3,385,475 3,153,241 Less: accumulated depreciation and amortization (2,225,656 ) (1,985,618 ) Property and equipment, net $ 1,159,819 $ 1,167,623

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2021
Share-based Payment Arrangement [Abstract]
stock-based compensation	The per share weighted average fair value of stock options granted during the nine months ended September 30, 2021 and September 30, 2020 was $ 2.93 6.53 stock-based compensation 56,102 150,566 September 30, 2021 2020 Dividend yield 0.00% 0.00% Expected Volatility 74.01 76.77 62.11 62.18 Weighted-average volatility — — Expected dividends — — Expected term (in years) 10 10 Risk-free rate 1.20 1.62 0.63 0.64
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: Nine Months Ended September 30, 2021 2020 Shares Weighted Shares Weighted Outstanding at January 1 2,922,494 $ 2.46 3,647,000 $ 1.32 Granted 1,650,000 $ 3.75 360,000 $ 9.54 Exercised 1,000,000 $ 1.23 747,006 $ 0.65 Forfeited 187,494 $ 3.36 200,000 $ 2.09 Outstanding at September 30 3,385,000 $ 3.39 3,059,994 $ 2.40 Options exercisable at September 30 1,005,625 $ 2.65 1,009,629 $ 1.36 Weighted average fair value of options granted during the period — $ 2.93 — $ 6.53 Stock-based compensation expense — $ 1,934,935 — $ 572,775
The following table presents information pertaining to options outstanding at September 30, 2021:	The following table presents information pertaining to options outstanding at September 30, 2021: Range of Exercise Price Number Weighted Weighted Number Weighted $0.50-$9.76 3,385,000 7.8 $ 3.39 1,005,625 $ 2.65
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 Nine Months Ended September 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 September 30 — $ — 1,000,000 $ 1.70 Options exercisable at September 30 — $ — 333,333 $ 1.70 Weighted average fair value of options granted during the period — $ — — $ — Stock-based compensation expense — $ (408,747 ) — $ 438,365
The following table summarizes the activities for our unvested restricted stock awards for the nine months ended September 30, 2021, and 2020.	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 and as an inducement to her employment, the Company issued three restricted stock awards for an aggregate 1,000,000 3,310,000 The following table summarizes the activities for our unvested restricted stock awards for the nine months ended September 30, 2021, and 2020. Nine Months Ended September 30, 2021 2020 Shares Weighted Shares Weighted Unvested at January 1 — $ — — $ — Granted 1,000,000 $ 3.01 — $ — Vested — $ — — $ — Forfeited/canceled — $ — — $ — Unvested at September 30 1,000,000 $ 3.01 — $ —

LEASES (Tables)

LEASES (Tables)	9 Months Ended
	Sep. 30, 2021
Leases [Abstract]
The components of lease expense were as follows:	The components of lease expense were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Operating lease cost $ 37,093 $ 37,921 $ 112,383 $ 113,764 Short-term lease cost 35,960 19,846 104,396 33,535 Total lease cost $ 73,053 $ 57,767 $ 216,779 $ 147,299 Finance lease cost: Amortization of right-of-use assets $ 597 $ 791 $ 2,188 $ 4,502 Interest on lease liabilities 10 47 57 199 Total finance lease cost $ 607 $ 838 $ 2,245 $ 4,701
Supplemental cash flow information related to leases was as follows:	Supplemental cash flow information related to leases was as follows: Nine Months Ended September 30, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 105,618 $ 113,764 Financing cash flows from finance leases 2,232 4,502
Supplemental balance sheet information related to leases was as follows:	Supplemental balance sheet information related to leases was as follows: September 30, December 31, Operating Leases Operating lease right-of-use assets $ 131,228 $ 236,846 Operating lease current liabilities 131,228 141,293 Operating lease long term liabilities — 95,553 Total operating lease liabilities $ 131,228 $ 236,846 Finance Leases Property and equipment, at cost $ 12,725 $ 12,725 Accumulated depreciation (12,327 ) (10,139 ) Property and equipment, net $ 398 $ 2,586 Finance lease current liabilities 414 2,646 Finance lease long term liabilities — — Total finance lease liabilities $ 414 $ 2,646 September 30, December 31, Weighted Average Remaining Lease Term Operating leases 0.9 1.4 Finance leases 0.2 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 nine months ended September 30, 2021) $ 37,092 $ 417 2022 97,257 — 2023 — — 2024 — — 2025 — — Thereafter — — Total undiscounted lease payments 134,349 417 Less: imputed interest (3,121 ) (3 ) Total lease liabilities $ 131,228 $ 414

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						9 Months Ended
		Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Accounting Policies [Abstract]
NET (LOSS)/INCOME		$ (1,093,778)	$ (1,124,549)	$ (1,276,138)	$ 249,175	$ (1,076,038)	$ 449,428	$ (3,494,465)	$ (377,435)
Weighted Average Outstanding Shares:
Outstanding shares		44,322,335			43,914,542			44,510,021	41,326,815
Option shares includable	[1]	0			204,969			0	0
		44,322,335			44,119,511			44,510,021	41,326,815
Net (loss)/income per share
Basic		$ (0.02)			$ 0.01			$ (0.08)	$ (0.01)
Diluted		$ (0.02)			$ 0.01			$ (0.08)	$ (0.01)
[1]	For the three months ended September 30, 2021, option shares of 296,504 244,422 203,121

The following table summarizes

The following table summarizes net sales by geography for the three and nine months ended September 30, 2021, and 2020: (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Net sales	$ 6,040,544	$ 6,080,315	$ 16,999,669	$ 20,119,228
UNITED STATES
Net sales	5,254,336	5,372,536	14,346,895	17,459,212
Non-US [Member]
Net sales	$ 786,208	$ 707,779	$ 2,652,774	$ 2,660,016

NATURE OF OPERATIONS AND SUMM_4

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021	Sep. 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]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	296,504	244,422	203,121

Property and equipment consists

Property and equipment consists of the following at (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 3,385,475	$ 3,153,241
Less: accumulated depreciation and amortization	(2,225,656)	(1,985,618)
Property and equipment, net	1,159,819	1,167,623
Furniture And Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	799,761	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	$ 2,028,807	$ 1,856,909

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 100,502	$ 99,071	$ 301,469	$ 251,084

stock-based compensation (Detai

stock-based compensation (Details) - Stock Option Plan 2015 [Member] - Time Based Shares Options [Member] - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.00%	0.00%
Weighted-average volatility	0.00%	0.00%
Expected dividends	$ 0	$ 0
Expected term (in years)	10 years	10 years
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected Volatility	74.01%	62.11%
Risk-free rate	1.20%	0.63%
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected Volatility	76.77%	62.18%
Risk-free rate	1.62%	0.64%

The following table summarize_2

The following table summarizes the status of the Plan with respect to time based stock options: (Details) - Stock Option Plan 2015 [Member] - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 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	1,650,000	360,000
Granted	$ 3.75	$ 9.54
Exercised	1,000,000	747,006
Exercised	$ 1.23	$ 0.65
Forfeited	187,494	200,000
Forfeited	$ 3.36	$ 2.09
Outstanding at ending	3,385,000	3,059,994
Outstanding at ending	$ 3.39	$ 2.40
Options exercisable at ending	1,005,625	1,009,629
Options exercisable at ending	$ 2.65	$ 1.36
Weighted average fair value of options granted during the period	$ 2.93	$ 6.53
Stock-based compensation expense	$ 1,934,935	$ 572,775

The following table presents in

The following table presents information pertaining to options outstanding at September 30, 2021: (Details) - Stock Option Plan 2015 [Member] - Time Based Shares Options [Member] - Exercise Price 1 [Member]	9 Months Ended
	Sep. 30, 2021$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number Outstanding | shares	3,385,000
Weighted Average Remaining Contractual Term	7 years 9 months 18 days
Weighted Average Exercise Price | $ / shares	$ 3.39
Number Exercisable | shares	1,005,625
Weighted Average Exercise Price | $ / shares	$ 2.65

The following table summarize_3

The following table summarizes the status of the Plan with respect to performance-based stock options (Details) - Stock Option Plan 2015 [Member] - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 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	1,650,000	360,000
Granted	$ 3.75	$ 9.54
Exercised	1,000,000	747,006
Exercised	$ 1.23	$ 0.65
Forfeited	187,494	200,000
Forfeited	$ 3.36	$ 2.09
Outstanding at ending	3,385,000	3,059,994
Outstanding at ending	$ 3.39	$ 2.40
Options exercisable at ending	1,005,625	1,009,629
Options exercisable at ending	$ 2.65	$ 1.36
Weighted average fair value of options granted during the period	$ 2.93	$ 6.53
Total performance stock-based compensation expense	$ 1,934,935	$ 572,775
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	333,333
Options exercisable at ending	$ 0	$ 1.70
Weighted average fair value of options granted during the period
Total performance stock-based compensation expense	$ (408,747)	$ 438,365

The following table summarize_4

The following table summarizes the activities for our unvested restricted stock awards for the nine months ended September 30, 2021, and 2020. (Details) - Stock Option Plan 2015 [Member] - Restricted Stock Awards [Member] - shares	9 Months Ended
	Sep. 30, 2021	Sep. 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	0

STOCK-BASED COMPENSATION (Det_2

STOCK-BASED COMPENSATION (Details Narrative) - USD ($)	Apr. 12, 2021	Jan. 02, 2021	May 20, 2020	Oct. 01, 2019	Jan. 02, 2019	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	May 18, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock outstanding						44,511,162		44,511,162			43,259,617
Stock issued during period								1,650,000
Recognized tax benefits						$ (238,104)	$ 143,353	$ (1,425,781)	$ 316,200
Chief Executive Officer Linda Tharby [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock issued during period	1,000,000
Number of stock option shares issued, value	$ 3,310,000
Settlement Agreement [Member] | E M E D 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
Share-based Goods and Nonemployee 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
Share-based Goods and Nonemployee 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
Stock Option Plan 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock issued during period								1,000,000
Available for issuance								6,000,000
Allocated stock-based compensation expense								$ 1,934,935	572,775
Stock Option Plan 2015 [Member] | Time Based Shares Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated stock-based compensation expense								1,934,935	572,775
Cash received from option exercises								$ 1,230,000	$ 95,880
Weighted-average grant-date fair value options granted								4,800,000	2,400,000
Number of options exercised								1,000,000	747,006
Total unrecognized compensation cost						5,800,000		$ 5,800,000
weighted-average period (in years)								46 months
Total fair value of shares vested								$ 1,909,141	$ 874,041
Stock Option Plan 2015 [Member] | Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated stock-based compensation expense								(408,747)	438,365
Total unrecognized compensation cost						0		0
Stock Option Plan 2015 [Member] | Restricted Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost						$ 2,379,089		$ 2,379,089
weighted-average period (in years)								39 months
Recognized tax benefits								$ 30,554	$ 0
Stock Option Plan 2015 [Member] | Executiveskey Employees And Consultants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock outstanding						3,385,000		3,385,000
Stock Option Plan 2021 [Member] | Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock issued during period								20,988

DEBT OBLIGATIONS (Details Narra

DEBT OBLIGATIONS (Details Narrative) - USD ($)	Jul. 26, 2021	Jun. 24, 2020	Apr. 27, 2020	Apr. 14, 2020	Jun. 30, 2021
Key Equipment Finance [Member] | Progress Payment Loan And 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 payment terms			84 equal consecutive monthly installments
Promissory Note [Member] | Key Bank National Association [Member]
Line of Credit Facility [Line Items]
Face amount				$ 3,500,000
Promissory Note [Member] | Line of Credit [Member] | Key Bank National Association [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 period iteam				any time prior to maturity with no prepayment penalties
Promissory Note [Member] | Revolving Credit Facility [Member] | Key Bank National Association [Member]
Line of Credit Facility [Line Items]
Face amount					$ 3,500,000
A O N Premium Finance L L C [Member] | Promissory Note [Member]
Line of Credit Facility [Line Items]
Notes Payable	$ 900,000
A O N Premium Finance L L C [Member] | Promissory Note [Member] | Line of Credit [Member]
Line of Credit Facility [Line Items]
Annual interest rate	4.17%

The components of lease expense

The components of lease expense were as follows: (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Leases [Abstract]
Operating lease cost	$ 37,093	$ 37,921	$ 112,383	$ 113,764
Short-term lease cost	35,960	19,846	104,396	33,535
Total lease cost	73,053	57,767	216,779	147,299
Finance lease cost:
Amortization of right-of-use assets	597	791	2,188	4,502
Interest on lease liabilities	10	47	57	199
Total finance lease cost	$ 607	$ 838	$ 2,245	$ 4,701

Supplemental cash flow informat

Supplemental cash flow information related to leases was as follows: (Details) - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 105,618	$ 113,764
Financing cash flows from finance leases	$ 2,232	$ 4,502

Supplemental balance sheet info

Supplemental balance sheet information related to leases was as follows: (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Operating Leases
Operating lease right-of-use assets	$ 131,228	$ 236,846
Operating lease current liabilities	131,228	141,293
Operating lease long term liabilities		95,553
Total operating lease liabilities	131,228	236,846
Finance Leases
Property and equipment, at cost	12,725	12,725
Accumulated depreciation	(12,327)	(10,139)
Property and equipment, net	398	2,586
Finance lease current liabilities	414	2,646
Finance lease long term liabilities
Total finance lease liabilities	$ 414	$ 2,646
Operating leases	10 months 24 days	1 year 4 months 24 days
Finance leases	2 months 12 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 ($)	Sep. 30, 2021	Dec. 31, 2020
Leases [Abstract]
2021 (excluding the six months ended June 30, 2021)	$ 37,092
2021 (excluding the six months ended June 30, 2021)	417
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	134,349
Total undiscounted operating lease payments	417
Less: imputed interest	(3,121)
Less: imputed interest	(3)
Total operating lease liabilities	131,228	$ 236,846
Total operating lease liabilities	$ 414	$ 2,646

LEASES (Details Narrative)

LEASES (Details Narrative)	9 Months Ended
	Sep. 30, 2021
Leases [Abstract]
Operating lease, options to terminate	1 year

EQUITY (Details Narrative)

EQUITY (Details Narrative) - USD ($)	Nov. 16, 2020	Jun. 18, 2020	Sep. 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 L L C [Member] | Common Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
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