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 |