KORU Medical Systems (KRMD) 10-K 8 Mar 23 2022 FY Annual report Financial data

Cover

Cover - USD ($)	12 Months Ended
	Dec. 31, 2022	Mar. 08, 2023	Jun. 30, 2022
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2022
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2022
Current Fiscal Year End Date	--12-31
Entity File Number	0-12305
Entity Registrant Name	KORU MEDICAL 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	100 Corporate Drive
Entity Address, City or Town	Mahwah
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07430
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 Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
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 Public Float			$ 71,872,771
Entity Common Stock, Shares Outstanding		45,519,164
Treasury Stock, Common, Shares		3,420,502
Auditor Firm ID	256
Auditor Name	McGrail Merkel Quinn & Associates, P.C.
Auditor Location	Scranton, Pennsylvania

BALANCE SHEETS

BALANCE SHEETS - USD ($)	Dec. 31, 2022	Dec. 31, 2021
CURRENT ASSETS
Cash and cash equivalents	$ 17,408,257	$ 25,334,889
Accounts receivable less allowance for doubtful accounts of $21,459 and $24,271 for December 31, 2022, and December 31, 2021, respectively	3,558,884	3,592,886
Inventory	6,404,867	6,106,338
Other receivables	972,396	718,220
Prepaid expenses and other	1,457,232	1,568,821
TOTAL CURRENT ASSETS	29,801,636	37,321,154
Property and equipment, net	3,886,975	1,106,445
Intangible assets, net of accumulated amortization of $325,872 and $263,729 at December 31, 2022 and December 31, 2021, respectively	787,182	808,813
Operating lease right-of-use assets	3,786,545	95,553
Deferred income tax assets, net	3,967,480	1,941,254
Other assets	102,625	19,812
TOTAL ASSETS	42,332,443	41,293,031
CURRENT LIABILITIES
Accounts payable	2,391,799	1,227,533
Accrued expenses	2,889,941	2,709,704
Note Payable	433,295	508,583
Other liabilities	257,337	90,000
Accrued payroll and related taxes	542,399	160,603
Finance lease liability – current	98,335
Operating lease liability – current	345,834	95,553
TOTAL CURRENT LIABILITIES	6,958,940	4,791,976
Finance lease liability, net current portion	394,283
Operating lease liability, net of current portion	3,653,257
TOTAL LIABILITIES	11,006,480	4,791,976
STOCKHOLDERS’ EQUITY
Common stock, $0.01 par value, 75,000,000 shares authorized, 48,861,891 and 48,044,162 shares issued; 45,441,389 and 44,623,660 shares outstanding at December 31, 2022, and December 31, 2021, respectively	488,619	480,441
Additional paid-in capital	44,252,117	40,774,245
Treasury stock, 3,420,502 shares at December 31, 2022 and December 31, 2021, at cost	(3,843,562)	(3,843,562)
Retained Deficit	(9,571,211)	(910,069)
TOTAL STOCKHOLDERS’ EQUITY	31,325,963	36,501,055
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 42,332,443	$ 41,293,031

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Accounts receivable, allowance for credit loss, current	$ 21,459	$ 24,271
Finite-lived intangible assets, accumulated amortization	$ 325,872	$ 263,729
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	48,861,891	48,044,162
Common stock, shares, outstanding	45,441,389	44,623,660
Treasury stock, shares	3,420,502	3,420,502

STATEMENTS OF OPERATIONS

STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income Statement [Abstract]
NET REVENUES	$ 27,896,037	$ 23,490,175
Cost of goods sold	12,527,051	9,720,597
Gross Profit	15,368,986	13,769,578
OPERATING EXPENSES
Selling, general and administrative	20,606,507	17,862,314
Research and development	4,956,215	2,473,669
Depreciation and amortization	587,137	463,130
Total Operating Expenses	26,149,859	20,799,113
Net Operating Loss	(10,780,873)	(7,029,535)
Non-Operating Income
Loss on foreign currency exchange	(39,874)	(28,905)
Gain on disposal of fixed assets		1,009
Other Income		679,907
Interest income, net	145,587	13,083
TOTAL OTHER INCOME	105,713	665,094
LOSS BEFORE TAXES	(10,675,160)	(6,364,441)
Income tax benefit	2,014,018	1,801,618
NET LOSS	$ (8,661,142)	$ (4,562,823)
NET LOSS PER SHARE
Basic	$ (0.19)	$ (0.10)
Diluted	$ (0.19)	$ (0.10)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic	45,002,074	44,385,032
Diluted	45,002,074	44,385,032

STATEMENTS OF STOCKHOLDERS' EQU

STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Total
Beginning balance, value at Dec. 31, 2020	$ 466,801	$ 35,880,986	$ 3,652,754	$ (3,843,562)	$ 36,156,979
Balance beginning (in shares) at Dec. 31, 2020	46,680,119
Issuance of stock-based compensation	$ 958	432,696			433,654
Issuance of stock-based compensation (in shares)	95,725
Compensation expense related to stock options		2,049,041			2,049,041
Compensation expense related to restricted stock awards		224,859			224,859
Litigation settlement share issuance	$ 952	937,142			938,094
Litigation settlement share issuance (in shares)	95,238
Issuance upon options exercised	$ 11,730	1,249,521			1,261,251
Issuance upon options exercised (in shares)	1,173,080
Net loss			(4,562,823)		(4,562,823)
Ending balance, value at Dec. 31, 2021	$ 480,441	40,774,245	(910,069)	(3,843,562)	36,501,055
Balance ending (in shares) at Dec. 31, 2021	48,044,162
Issuance of stock-based compensation	$ 2,066	511,016			513,082
Issuance of stock-based compensation (in shares)	206,570
Compensation expense related to stock options		2,083,396			2,083,396
Compensation expense related to restricted stock awards	500	482,449			482,949
Issuance upon options exercised	$ 5,612	401,011			406,623
Issuance upon options exercised (in shares)	561,159
Net loss			(8,661,142)		(8,661,142)
Compensation expense related to restricted stock awards (in shares)	50,000
Ending balance, value at Dec. 31, 2022	$ 488,619	$ 44,252,117	$ (9,571,211)	$ (3,843,562)	$ 31,325,963
Balance ending (in shares) at Dec. 31, 2022	48,861,891

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$ (8,661,142)	$ (4,562,823)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense	3,079,427	2,707,554
Depreciation and amortization	587,137	463,130
Loss on disposal of fixed assets		(1,009)
Deferred income taxes	(2,026,226)	(1,815,980)
ROU landlord credit	212,546
Changes in operating assets and liabilities:
Decrease/(Increase) in accounts receivable	34,002	(1,019,932)
(Increase)/Decrease in inventory	(298,529)	723,434
Increase in other receivables	(254,176)	(718,220)
Decrease/(Increase) in prepaid expenses and other assets	28,776	(761,041)
Increase in accounts payable	1,164,266	602,613
Increase/(Decrease) in accrued payroll and related taxes	381,796	(126,527)
Increase in other liabilities	167,337	90,000
Increase in accrued expenses	180,237	99,291
NET CASH USED IN OPERATING ACTIVITIES	(5,404,549)	(4,319,510)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(2,761,056)	(346,178)
Purchases of intangible assets	(40,512)	(29,056)
Proceeds from disposal of property and equipment		9,065
NET CASH USED IN INVESTING ACTIVITIES	(2,801,568)	(366,169)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of equity	406,623	1,261,251
Common stock issuance settlement of litigation		938,094
Borrowings from indebtedness	783,799	924,389
Payments on indebtedness	(859,087)	(415,806)
Payments on finance lease liability	(51,850)	(2,646)
NET CASH PROVIDED BY FINANCING ACTIVITIES	279,485	2,705,282
NET DECREASE IN CASH AND CASH EQUIVALENTS	(7,926,632)	(1,980,397)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	25,334,889	27,315,286
CASH AND CASH EQUIVALENTS, END OF YEAR	17,408,257	25,334,889
Cash paid during the years for:
Interest	28,490	13,241
Income taxes		1,903
Schedule of Non-Cash Operating, Investing and Financing Activities:
Issuance of common stock as compensation	513,082	433,654
Issuance of common stock as settlement for litigation		$ 938,094

NATURE OF OPERATIONS AND SUMMAR

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2022
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 KORU MEDICAL SYSTEMS, INC. (the “Company,” “KORU Medical,” “KORU,” “we,” “us” or “our”) develops, 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 BASIS OF PRESENTATION We prepare our financial statements and accompanying notes in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Certain prior year amounts have been reclassified to conform to the current year presentation in our Financial Statements. 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. We maintain reserves for excess and obsolete inventory resulting from the potential inability to sell certain products at prices in excess of current carrying costs. We make estimates regarding the future recoverability of the costs of these products and record provisions based on historical experience, expiration of sterilization dates and expected future trends. If actual product life cycles, product demand or acceptance of new product introductions are less favorable than projected by management, additional inventory write downs may be required, which could unfavorably affect future operating results. INTANGIBLE ASSETS Certain of our identifiable intangible assets, including patents and trademarks, are amortized using the straight-line method over their estimated useful lives which range from 6 20 62,143 63,830 The estimated amortization expense for the succeeding years for the intangible assets is approximately: Schedule of amortization expense Year Ending December 31, 2023 $ 62,982 2024 62,982 2025 62,842 2026 61,787 2027 61,356 Thereafter 475,233 Total amortization expense $ 787,182 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. PROPERTY AND EQUIPMENT Property and equipment are stated at original acquisition cost less accumulated depreciation. Additions and improvements are capitalized which increase the value or extend the life of an asset, while maintenance and repair costs are expensed as incurred. When assets are retired or otherwise disposed, the cost and related accumulated depreciation or amortization is removed from the respective accounts and any resulting gain or loss is included in income. Depreciation and amortization are calculated on the straight-line basis over the estimated useful lives of the assets which generally range from 3 10 3 12 524,994 399,300 STOCK-BASED COMPENSATION The Company maintains a stock option plan and omnibus equity incentive 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 under the non-employee director compensation plan are recorded at the fair value of the shares at the grant date. The Company has also issued shares of stock for director fees under its omnibus equity incentive plan. 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 LOSS PER COMMON SHARE Basic earnings per share are computed on the weighted average of common shares outstanding during each year. Diluted earnings per share includes only an increase in the weighted average shares by the common shares issuable upon exercise of stock options. See “NOTE 4 — STOCK-BASED COMPENSATION” for further detail. Schedule of net income per common share Years Ended December 31, 2022 December 31, 2021 Net loss $ (8,661,142 ) $ (4,562,823 ) Weighted Average Outstanding Shares: Outstanding shares 45,002,074 44,385,032 Option shares includable — (a) — (a) Restricted stock includable — (b) — (b) Total 45,002,074 44,385,032 Net loss per share Basic $ (0.19 ) $ (0.10 ) Diluted $ (0.19 ) $ (0.10 ) __________ (a) Option shares of zero 273,110 (b) Linda Tharby's Restricted Stock award shares of 950,000 1,000,000 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 Company established an allowance for charging off uncollectible trade accounts receivable that have both of the following characteristics: (a) They have a contractual maturity of one year or less, (b) They arose from the sale of goods or services. The following table summarizes net revenues by geography for the years ended December 31, 2022 and 2021: Schedule of net revenues by geography Years Ended December 31, 2022 2021 Net Revenues Domestic $ 23,586,254 $ 19,488,685 International 4,309,783 4,001,490 Total $ 27,896,037 $ 23,490,175 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 5 — 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 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 year ended December 31, 2022. 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 December 31, 2022.

INVENTORY

INVENTORY	12 Months Ended
	Dec. 31, 2022
Inventory Disclosure [Abstract]
INVENTORY	NOTE 2 — INVENTORY Inventory consists of: December 31, 2022 December 31, 2021 Raw materials and work-in-process $ 3,853,034 $ 2,997,807 Finished goods 2,611,951 3,176,836 Total 6,464,985 6,174,643 Less: reserve for obsolete inventory (60,118 ) (68,305 ) Inventory, net $ 6,404,867 $ 6,106,338

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 3 — PROPERTY AND EQUIPMENT Property and equipment consists of the following at: Schedule of property and equipment December 31, 2022 December 31, 2021 Furniture and office equipment $ 1,456,745 $ 818,897 Leasehold improvements 2,413,820 556,907 Manufacturing equipment and tooling 2,810,813 2,042,675 Total property and equipment 6,681,378 3,418,479 Less: accumulated depreciation and amortization (2,794,403 ) (2,312,034 ) Property and equipment, net $ 3,886,975 $ 1,106,445

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	NOTE 4 — STOCK-BASED COMPENSATION The Company has three equity incentive plans: the 2015 Stock Option Plan, as amended (the “2015 Plan”), the 2021 Omnibus Equity Incentive Plan (the “2021 Plan”), and the Non-Employee Director Compensation Plan. The Company has also issued restricted stock as employment inducement awards to its Chief Executive Officer. As of December 31, 2022, there were options to purchase 2,560,000 445,000 6,000,000 The 2021 Plan provides for the grant of up to 1,000,000 97,100 475,000 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 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 years ended December 31, 2022, and December 31, 2021 was $ 1.98 2.85 198,258 175,257 Schedule of time based stock options December 31, 2022 December 31, 2021 Dividend yield 0.00 0.00 Expected volatility 65.29 77.5 74.01 77.91 Weighted-average volatility — — Expected dividends — — Expected term (in years) 10 10 Risk-free rate 1.81 4.02 1.20 1.62 The following table summarizes the status of the Company’s stock option plan: Schedule of status of time based stock options December 31, 2022 December 31, 2021 Shares Weighted Shares Weighted Outstanding at January 1 3,672,500 $ 3.42 2,922,494 $ 2.46 Granted 445,000 $ 2.57 2,000,000 $ 3.64 Exercised 1,031,250 $ 1.57 1,062,500 $ 1.19 Forfeited 526,250 $ 2.73 187,494 $ 3.36 Outstanding at year end 2,560,000 $ 4.15 3,672,500 $ 3.42 Options exercisable 737,500 $ 4.93 983,750 $ 2.73 Weighted average fair value of options granted during the period — $ 1.98 — $ 2.85 Stock-based compensation expense — $ 1,925,861 — $ 2,457,788 Total stock-based compensation expense, net of forfeitures, for stock option awards totaled $ 1,925,861 2,457,788 406,623 1,261,251 103,319 665,700 The weighted-average grant-date fair value of options granted during the years ended December 31, 2022, and 2021, was $ 881,428 5,699,986 1,150,203 697,920 The following table presents information pertaining to options outstanding as of December 31, 2022: Schedule of information pertaining to options outstanding Range of Exercise Price Number Weighted Weighted Number Weighted $2.25 - $9.49 2,560,000 8.8 $ 4.15 737,500 $ 4.93 As of December 31, 2022, there was $ 4,299,070 45 2,703,002 1,923,179 2021 STOCK OPTION PLAN, as amended Time Based Stock Options The per share weighted average fair value of stock options granted during the years ended December 31, 2022 and December 31, 2021 was $ 1.99 0 33,083 0 Schedule of time based stock options December 31, 2022 2021 Dividend yield 0.00 0.00 Expected Volatility 65.9 0 0 Weighted-average volatility — — Expected dividends — — Expected term (in years) 10 0 Risk-free rate 2.99 0 0 The following table summarizes the status of the 2021 Plan with respect to time based stock options: Schedule of status of time based stock options Year Ended December 31, 2022 2021 Shares Weighted Shares Weighted Outstanding at January 1 0 $ 0 — $ — Granted 475,000 $ 2.67 — $ — Exercised 0 $ — — $ — Forfeited 0 $ — — $ — Outstanding at year end 475,000 $ 2.67 — $ — Options exercisable 0 $ — — $ — Weighted average fair value of options granted during the period — $ 1.99 — $ — Stock-based compensation expense — $ 157,536 — $ — Total stock-based compensation expense was $ 157,536 0 The weighted-average grant-date fair value of options granted during the years ended December 31, 2022, and 2021 was $ 945,215 0 The following table presents information pertaining to options outstanding at December 31, 2022: Schedule of information pertaining to options outstanding Range of Exercise Price Number Weighted Weighted Number Weighted $2.67 475,000 9.3 $ 2.67 0 $ 0 As of December 31, 2022, there was $ 787,679 48 zero zero Performance-Based Stock Options There were no performance-based stock options granted during the twelve months ended December 31, 2022, and 2021. The following table summarizes the status of the 2015 Plan with respect to performance-based stock options as of December 31, 2022 and 2021: Schedule of performance base options outstanding December 31, 2022 December 31, 2021 Shares Weighted Shares Weighted Outstanding at January 1 — $ — 1,000,000 $ 1.70 Granted — $ — — $ — Exercised — $ — — $ — Forfeited — $ — — $ — Outstanding at year end — $ — 1,000,000 $ 1.70 Options exercisable — $ — — $ — Weighted average fair value of options granted during the period — $ — — $ — Stock-based compensation expense — $ — — $ (408,747 ) Total performance stock-based compensation expense totaled zero (408,747) 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 twelve months ended December 31, 2022, and 2021. Twelve Months Ended December 31, 2022 2021 Shares Weighted Shares Weighted Unvested at January 1 1,000,000 $ 3.01 — $ — Granted — $ — 1,000,000 $ 3.01 Vested 50,000 $ 3.31 — $ — Forfeited/canceled — $ — — $ — Unvested at December 31 950,000 $ 3.04 1,000,000 $ 3.01 As of December 31, 2022, there was $ 1,618,177 21 101,419 47,220

LEASES

LEASES	12 Months Ended
	Dec. 31, 2022
Leases [Abstract]
LEASES	NOTE 5 — LEASES We have finance and operating leases for our corporate office and certain office and computer equipment. Our leases have remaining lease terms of 10, 5 years, and 3 months. At contract inception, we evaluate whether an arrangement is or contains a lease for which we are the lessee (that is, arrangements which provide us with the right to control a physical asset for a period of time). Operating leases are accounted for on the balance sheets with ROU assets being recognized in “Operating lease right-of-use assets” and lease liabilities recognized in “Operating lease liability – current” and “Operating lease liability, net of current portion.” Finance leases are accounted for on the balance sheets recognized in “Property and equipment, net” and lease liabilities recognized in “Finance lease liability – current” and “Finance lease liability, net of current portion.” Operating lease expenses are recognized on a straight-line basis over the lease term. With respect to finance leases, amortization of the ROU asset is presented separately from interest expense related to the finance lease liability. We have elected to combine lease and non-lease components for all lease contracts where we are the lessee. Additionally, for arrangements with lease terms of 12 months or less, we do not recognize ROU assets and lease liabilities and lease payments are recognized on a straight-line basis over the lease term with variable lease payments recognized in the period in which the obligation is incurred. ROU assets are measured for impairment when a triggering event occurs. The components of lease expense were as follows: Schedule of components of lease expense Years Ended December 31, 2022 2021 Operating lease cost $ 514,294 $ 149,476 Short-term lease cost 131,490 146,604 Total lease cost $ 645,784 $ 296,080 Finance lease cost: Amortization of right-of-use assets $ 50,895 $ 2,586 Interest on lease liabilities 5,393 60 Total finance lease cost $ 56,288 $ 2,646 Supplemental cash flow information related to leases was as follows: Schedule of cash flow information related to leases Years Ended December 31, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 247,504 $ 141,293 Financing cash flows from finance leases $ 57,243 $ 2,646 Supplemental balance sheet information related to leases was as follows: Schdeule of balance sheet information related to leases December 31, December 31, Operating Leases Operating lease right-of-use assets $ 3,786,545 $ 95,553 Operating lease liability – current 345,834 95,553 Operating lease liability, net of current portion 3,653,257 — Total operating lease liabilities $ 3,999,091 $ 95,553 Finance Leases Property and equipment, at cost $ 544,468 $ 12,725 Accumulated depreciation (50,895 ) (12,725 ) Property and equipment, net $ 493,573 $ — Finance lease liability – current 98,335 — Finance lease liability, net of current portion 394,283 — Total finance lease liabilities $ 492,618 $ — December 31, December 31, Weighted Average Remaining Lease Term Operating leases 9.7 0.6 Finance leases 4.6 0 Weighted Average Discount Rate Operating leases 4.00 4.75 Finance leases 4.25 4.75 Maturities of lease liabilities are as follows: Schedule of maturities of lease liabilities Year Ending December 31, Operating Leases Finance Leases 2023 499,503 123,200 2024 499,503 123,200 2025 499,503 123,200 2026 499,503 123,200 2027 499,503 65,957 Thereafter 2,331,015 — Total undiscounted lease payments 4,828,530 558,757 Less: imputed interest (829,439 ) (66,139 ) Total lease liabilities $ 3,999,091 $ 492,618

FEDERAL AND STATE INCOME TAXES

FEDERAL AND STATE INCOME TAXES	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
FEDERAL AND STATE INCOME TAXES	NOTE 6 — FEDERAL AND STATE INCOME TAXES Income tax expense consisted of the following: Schedule of provision for income taxes Year Ended Year Ended State income tax: Current, net of refund $ 0 $ (12,800 ) Federal income tax: Deferred 2,014,018 1,814,418 Current — — Income tax benefit/(expense) $ 2,014,018 $ 1,801,618 The reconciliation of income taxes shown in the financial statements and amounts computed by applying the Federal expected tax rate of 21% for year 2022 and 2021 is as follows: Schedule of reconciliation of income taxes Year Ended Year Ended Loss before taxes $ (10,675,160 ) $ (6,364,441 ) Income taxes computed at the federal statutory rate $ 2,241,784 $ 1,336,533 State income and franchise tax (0 ) (12,800 ) Permanent differences and other (227,766 ) 477,885 Income tax benefit/(expense) $ 2,014,018 $ 1,801,618 The significant components of deferred income tax assets, net are as follows: Schedule of components of deferred tax assets December 31, December 31, Deferred compensation cost $ 557,931 $ 389,981 Depreciation and amortization (624,184 ) (116,911 ) R&D credit 142,030 142,538 NOL 2,956,685 1,507,982 Allowance for bad debts and other 935,018 17,664 Deferred income tax assets, net $ 3,967,480 $ 1,941,254 Our U.S. federal and state income tax returns remain open to examination for the tax years 2019 through 2021.

MAJOR CUSTOMERS

MAJOR CUSTOMERS	12 Months Ended
	Dec. 31, 2022
Risks and Uncertainties [Abstract]
MAJOR CUSTOMERS	NOTE 7 — MAJOR CUSTOMERS For the years ended December 31, 2022 and December 31, 2021, approximately 64 64 The largest customer in both years is a domestic medical products and supplies distributor. Although, a number of larger infusion customers have elected to consolidate their purchases through one or more distributors in recent years, we continue to maintain strong direct relationships with them. We do not believe that their continued purchase of FREEDOM System products and related supplies is contingent upon the distributor.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 8 — 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.

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS	12 Months Ended
	Dec. 31, 2022
Retirement Benefits [Abstract]
EMPLOYEE BENEFITS	NOTE 9 — EMPLOYEE BENEFITS We provide a safe harbor 401(k) plan for our employees that allows for employee elective contributions, Company matching contributions and discretionary profit-sharing contributions. Employee elective contributions are funded through voluntary payroll deductions. The Company makes safe harbor matching contributions in an amount equal to 100% of the employee’s contribution, not to exceed 3% of employee’s compensation plus 50% of employee’s pay contributed between 3% and 5% of employee’s compensation 214,931 166,014

DEBT OBLIGATIONS

DEBT OBLIGATIONS	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
DEBT OBLIGATIONS	NOTE 10 — DEBT OBLIGATIONS On June 29, 2022, the Company entered into a Loan Modification Extension Agreement (the “Modification Agreement”) with Keybank National Association (“Lender”) to modify its revolving line of credit with Lender in the amount of $3,500,000 (the “Loan”) that was originally made available on April 14, 2020 and renewed on June 24, 2021. Among other things, the Modification Agreement: (i) extends the maturity date of the Loan from June 1, 2022 to June 1, 2023; (ii) changes the interest rate applicable to the Loan from Prime – 1.50% to Prime + 0%; (iii) releases the Company from its obligations under a certain security agreement dated June 24, 2021 pursuant to which the Company had previously granted the Lender a first priority security interest in all equipment, inventory, accounts, instruments, chattel paper and general intangibles of the Company (the “Security Agreement”); and (iv) replaces the Security Agreement with a new pledge security agreement dated June 29, 2022 by and between the Company and Lender (the “Pledge Agreement”), which Pledge Agreement grants Lender a first priority security interest in certain of the Company’s bank accounts as collateral security for the Loan. The Company had zero outstanding against the line of credit as of December 31, 2022. On August 5, 2022, the Company entered into a commercial insurance premium finance and security agreement with AON Premium Finance, LLC in the aggregate principal amount of $ 0.8 million 6.5

NATURE OF OPERATIONS AND SUMM_2

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
NATURE OF OPERATIONS	NATURE OF OPERATIONS KORU MEDICAL SYSTEMS, INC. (the “Company,” “KORU Medical,” “KORU,” “we,” “us” or “our”) develops, 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
BASIS OF PRESENTATION	BASIS OF PRESENTATION We prepare our financial statements and accompanying notes in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Certain prior year amounts have been reclassified to conform to the current year presentation in our Financial Statements.
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. We maintain reserves for excess and obsolete inventory resulting from the potential inability to sell certain products at prices in excess of current carrying costs. We make estimates regarding the future recoverability of the costs of these products and record provisions based on historical experience, expiration of sterilization dates and expected future trends. If actual product life cycles, product demand or acceptance of new product introductions are less favorable than projected by management, additional inventory write downs may be required, which could unfavorably affect future operating results.
INTANGIBLE ASSETS	INTANGIBLE ASSETS Certain of our identifiable intangible assets, including patents and trademarks, are amortized using the straight-line method over their estimated useful lives which range from 6 20 62,143 63,830 The estimated amortization expense for the succeeding years for the intangible assets is approximately: Schedule of amortization expense Year Ending December 31, 2023 $ 62,982 2024 62,982 2025 62,842 2026 61,787 2027 61,356 Thereafter 475,233 Total amortization expense $ 787,182
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.
PROPERTY AND EQUIPMENT	PROPERTY AND EQUIPMENT Property and equipment are stated at original acquisition cost less accumulated depreciation. Additions and improvements are capitalized which increase the value or extend the life of an asset, while maintenance and repair costs are expensed as incurred. When assets are retired or otherwise disposed, the cost and related accumulated depreciation or amortization is removed from the respective accounts and any resulting gain or loss is included in income. Depreciation and amortization are calculated on the straight-line basis over the estimated useful lives of the assets which generally range from 3 10 3 12 524,994 399,300
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION The Company maintains a stock option plan and omnibus equity incentive 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 under the non-employee director compensation plan are recorded at the fair value of the shares at the grant date. The Company has also issued shares of stock for director fees under its omnibus equity incentive plan. 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 LOSS PER COMMON SHARE	NET LOSS PER COMMON SHARE Basic earnings per share are computed on the weighted average of common shares outstanding during each year. Diluted earnings per share includes only an increase in the weighted average shares by the common shares issuable upon exercise of stock options. See “NOTE 4 — STOCK-BASED COMPENSATION” for further detail. Schedule of net income per common share Years Ended December 31, 2022 December 31, 2021 Net loss $ (8,661,142 ) $ (4,562,823 ) Weighted Average Outstanding Shares: Outstanding shares 45,002,074 44,385,032 Option shares includable — (a) — (a) Restricted stock includable — (b) — (b) Total 45,002,074 44,385,032 Net loss per share Basic $ (0.19 ) $ (0.10 ) Diluted $ (0.19 ) $ (0.10 ) __________ (a) Option shares of zero 273,110 (b) Linda Tharby's Restricted Stock award shares of 950,000 1,000,000
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 Company established an allowance for charging off uncollectible trade accounts receivable that have both of the following characteristics: (a) They have a contractual maturity of one year or less, (b) They arose from the sale of goods or services. The following table summarizes net revenues by geography for the years ended December 31, 2022 and 2021: Schedule of net revenues by geography Years Ended December 31, 2022 2021 Net Revenues Domestic $ 23,586,254 $ 19,488,685 International 4,309,783 4,001,490 Total $ 27,896,037 $ 23,490,175
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 5 —
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 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 year ended December 31, 2022.
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 December 31, 2022.

NATURE OF OPERATIONS AND SUMM_3

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Schedule of amortization expense	The estimated amortization expense for the succeeding years for the intangible assets is approximately: Schedule of amortization expense Year Ending December 31, 2023 $ 62,982 2024 62,982 2025 62,842 2026 61,787 2027 61,356 Thereafter 475,233 Total amortization expense $ 787,182
Schedule of 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 includes only an increase in the weighted average shares by the common shares issuable upon exercise of stock options. See “NOTE 4 — STOCK-BASED COMPENSATION” for further detail. Schedule of net income per common share Years Ended December 31, 2022 December 31, 2021 Net loss $ (8,661,142 ) $ (4,562,823 ) Weighted Average Outstanding Shares: Outstanding shares 45,002,074 44,385,032 Option shares includable — (a) — (a) Restricted stock includable — (b) — (b) Total 45,002,074 44,385,032 Net loss per share Basic $ (0.19 ) $ (0.10 ) Diluted $ (0.19 ) $ (0.10 ) __________ (a) Option shares of zero 273,110 (b) Linda Tharby's Restricted Stock award shares of 950,000 1,000,000
Schedule of net revenues by geography	The following table summarizes net revenues by geography for the years ended December 31, 2022 and 2021: Schedule of net revenues by geography Years Ended December 31, 2022 2021 Net Revenues Domestic $ 23,586,254 $ 19,488,685 International 4,309,783 4,001,490 Total $ 27,896,037 $ 23,490,175

INVENTORY (Tables)

INVENTORY (Tables)	12 Months Ended
	Dec. 31, 2022
Inventory Disclosure [Abstract]
Inventory consists of:	Inventory consists of: December 31, 2022 December 31, 2021 Raw materials and work-in-process $ 3,853,034 $ 2,997,807 Finished goods 2,611,951 3,176,836 Total 6,464,985 6,174,643 Less: reserve for obsolete inventory (60,118 ) (68,305 ) Inventory, net $ 6,404,867 $ 6,106,338

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	Property and equipment consists of the following at: Schedule of property and equipment December 31, 2022 December 31, 2021 Furniture and office equipment $ 1,456,745 $ 818,897 Leasehold improvements 2,413,820 556,907 Manufacturing equipment and tooling 2,810,813 2,042,675 Total property and equipment 6,681,378 3,418,479 Less: accumulated depreciation and amortization (2,794,403 ) (2,312,034 ) Property and equipment, net $ 3,886,975 $ 1,106,445

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Schedule of time based stock options	Schedule of time based stock options December 31, 2022 December 31, 2021 Dividend yield 0.00 0.00 Expected volatility 65.29 77.5 74.01 77.91 Weighted-average volatility — — Expected dividends — — Expected term (in years) 10 10 Risk-free rate 1.81 4.02 1.20 1.62
Schedule of status of time based stock options	The following table summarizes the status of the Company’s stock option plan: Schedule of status of time based stock options December 31, 2022 December 31, 2021 Shares Weighted Shares Weighted Outstanding at January 1 3,672,500 $ 3.42 2,922,494 $ 2.46 Granted 445,000 $ 2.57 2,000,000 $ 3.64 Exercised 1,031,250 $ 1.57 1,062,500 $ 1.19 Forfeited 526,250 $ 2.73 187,494 $ 3.36 Outstanding at year end 2,560,000 $ 4.15 3,672,500 $ 3.42 Options exercisable 737,500 $ 4.93 983,750 $ 2.73 Weighted average fair value of options granted during the period — $ 1.98 — $ 2.85 Stock-based compensation expense — $ 1,925,861 — $ 2,457,788
Schedule of information pertaining to options outstanding	The following table presents information pertaining to options outstanding as of December 31, 2022: Schedule of information pertaining to options outstanding Range of Exercise Price Number Weighted Weighted Number Weighted $2.25 - $9.49 2,560,000 8.8 $ 4.15 737,500 $ 4.93
Schedule of time based stock options	Schedule of time based stock options December 31, 2022 2021 Dividend yield 0.00 0.00 Expected Volatility 65.9 0 0 Weighted-average volatility — — Expected dividends — — Expected term (in years) 10 0 Risk-free rate 2.99 0 0
Schedule of status of time based stock options	The following table summarizes the status of the 2021 Plan with respect to time based stock options: Schedule of status of time based stock options Year Ended December 31, 2022 2021 Shares Weighted Shares Weighted Outstanding at January 1 0 $ 0 — $ — Granted 475,000 $ 2.67 — $ — Exercised 0 $ — — $ — Forfeited 0 $ — — $ — Outstanding at year end 475,000 $ 2.67 — $ — Options exercisable 0 $ — — $ — Weighted average fair value of options granted during the period — $ 1.99 — $ — Stock-based compensation expense — $ 157,536 — $ —
Schedule of information pertaining to options outstanding	The following table presents information pertaining to options outstanding at December 31, 2022: Schedule of information pertaining to options outstanding Range of Exercise Price Number Weighted Weighted Number Weighted $2.67 475,000 9.3 $ 2.67 0 $ 0
Schedule of performance base options outstanding	The following table summarizes the status of the 2015 Plan with respect to performance-based stock options as of December 31, 2022 and 2021: Schedule of performance base options outstanding December 31, 2022 December 31, 2021 Shares Weighted Shares Weighted Outstanding at January 1 — $ — 1,000,000 $ 1.70 Granted — $ — — $ — Exercised — $ — — $ — Forfeited — $ — — $ — Outstanding at year end — $ — 1,000,000 $ 1.70 Options exercisable — $ — — $ — Weighted average fair value of options granted during the period — $ — — $ — Stock-based compensation expense — $ — — $ (408,747 )
The following table summarizes the activities for our unvested restricted stock awards for the twelve months ended December 31, 2022, and 2021.	The following table summarizes the activities for our unvested restricted stock awards for the twelve months ended December 31, 2022, and 2021. Twelve Months Ended December 31, 2022 2021 Shares Weighted Shares Weighted Unvested at January 1 1,000,000 $ 3.01 — $ — Granted — $ — 1,000,000 $ 3.01 Vested 50,000 $ 3.31 — $ — Forfeited/canceled — $ — — $ — Unvested at December 31 950,000 $ 3.04 1,000,000 $ 3.01

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	Dec. 31, 2022
Leases [Abstract]
Schedule of components of lease expense	The components of lease expense were as follows: Schedule of components of lease expense Years Ended December 31, 2022 2021 Operating lease cost $ 514,294 $ 149,476 Short-term lease cost 131,490 146,604 Total lease cost $ 645,784 $ 296,080 Finance lease cost: Amortization of right-of-use assets $ 50,895 $ 2,586 Interest on lease liabilities 5,393 60 Total finance lease cost $ 56,288 $ 2,646
Schedule of cash flow information related to leases	Supplemental cash flow information related to leases was as follows: Schedule of cash flow information related to leases Years Ended December 31, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 247,504 $ 141,293 Financing cash flows from finance leases $ 57,243 $ 2,646
Schdeule of balance sheet information related to leases	Supplemental balance sheet information related to leases was as follows: Schdeule of balance sheet information related to leases December 31, December 31, Operating Leases Operating lease right-of-use assets $ 3,786,545 $ 95,553 Operating lease liability – current 345,834 95,553 Operating lease liability, net of current portion 3,653,257 — Total operating lease liabilities $ 3,999,091 $ 95,553 Finance Leases Property and equipment, at cost $ 544,468 $ 12,725 Accumulated depreciation (50,895 ) (12,725 ) Property and equipment, net $ 493,573 $ — Finance lease liability – current 98,335 — Finance lease liability, net of current portion 394,283 — Total finance lease liabilities $ 492,618 $ — December 31, December 31, Weighted Average Remaining Lease Term Operating leases 9.7 0.6 Finance leases 4.6 0 Weighted Average Discount Rate Operating leases 4.00 4.75 Finance leases 4.25 4.75
Schedule of maturities of lease liabilities	Maturities of lease liabilities are as follows: Schedule of maturities of lease liabilities Year Ending December 31, Operating Leases Finance Leases 2023 499,503 123,200 2024 499,503 123,200 2025 499,503 123,200 2026 499,503 123,200 2027 499,503 65,957 Thereafter 2,331,015 — Total undiscounted lease payments 4,828,530 558,757 Less: imputed interest (829,439 ) (66,139 ) Total lease liabilities $ 3,999,091 $ 492,618

FEDERAL AND STATE INCOME TAXES

FEDERAL AND STATE INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Schedule of provision for income taxes	Income tax expense consisted of the following: Schedule of provision for income taxes Year Ended Year Ended State income tax: Current, net of refund $ 0 $ (12,800 ) Federal income tax: Deferred 2,014,018 1,814,418 Current — — Income tax benefit/(expense) $ 2,014,018 $ 1,801,618
Schedule of reconciliation of income taxes	The reconciliation of income taxes shown in the financial statements and amounts computed by applying the Federal expected tax rate of 21% for year 2022 and 2021 is as follows: Schedule of reconciliation of income taxes Year Ended Year Ended Loss before taxes $ (10,675,160 ) $ (6,364,441 ) Income taxes computed at the federal statutory rate $ 2,241,784 $ 1,336,533 State income and franchise tax (0 ) (12,800 ) Permanent differences and other (227,766 ) 477,885 Income tax benefit/(expense) $ 2,014,018 $ 1,801,618
Schedule of components of deferred tax assets	The significant components of deferred income tax assets, net are as follows: Schedule of components of deferred tax assets December 31, December 31, Deferred compensation cost $ 557,931 $ 389,981 Depreciation and amortization (624,184 ) (116,911 ) R&D credit 142,030 142,538 NOL 2,956,685 1,507,982 Allowance for bad debts and other 935,018 17,664 Deferred income tax assets, net $ 3,967,480 $ 1,941,254

Schedule of amortization expens

Schedule of amortization expense (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Accounting Policies [Abstract]
2023	$ 62,982
2024	62,982
2025	62,842
2026	61,787
2027	61,356
Thereafter	475,233
Total amortization expense	$ 787,182	$ 808,813

Schedule of net income per comm

Schedule of net income per common share (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Net loss	$ (8,661,142)	$ (4,562,823)
Weighted Average Outstanding Shares:
Outstanding shares	45,002,074	44,385,032
Option shares includable
Restricted stock includable
Total	45,002,074	44,385,032
Net loss per share
Basic	$ (0.19)	$ (0.10)
Diluted	$ (0.19)	$ (0.10)
Employee Stock [Member]
Net loss per share
Option shares excluded	0	273,110
Restricted stock shares excluded	950,000	1,000,000
Common Stock [Member]
Net loss
Weighted Average Outstanding Shares:
Outstanding shares	45,002,074	44,385,032

Schedule of net revenues by geo

Schedule of net revenues by geography (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Revenues	$ 27,896,037	$ 23,490,175
UNITED STATES
Revenues	23,586,254	19,488,685
Non-US [Member]
Revenues	$ 4,309,783	$ 4,001,490

NATURE OF OPERATIONS AND SUMM_4

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	12 Months Ended
	Dec. 31, 2022 USD ($) Number	Dec. 31, 2021 USD ($)
Property, Plant and Equipment [Line Items]
Number of segments | Number	1
FDIC cash uninsured amount	$ 250,000
AmortizationOfIntangibleAssets1	62,143	$ 63,830
Depreciation and amortization	587,137	463,130
Property, Plant and Equipment [Member]
Property, Plant and Equipment [Line Items]
Depreciation and amortization	$ 524,994	$ 399,300
Minimum [Member] | Furniture And Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of property and equipment	3 years
Minimum [Member] | Equipment and tooling [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of property and equipment	3 years
Maximum [Member] | Furniture And Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of property and equipment	10 years
Maximum [Member] | Equipment and tooling [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of property and equipment	12 years
Patents And Trademarks [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	6 years
Patents And Trademarks [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	20 years

Inventory consists of_ (Details

Inventory consists of: (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials and work-in-process	$ 3,853,034	$ 2,997,807
Finished goods	2,611,951	3,176,836
Inventory, Gross	6,464,985	6,174,643
Less: reserve for obsolete inventory	(60,118)	(68,305)
Inventory	$ 6,404,867	$ 6,106,338

Schedule of property and equipm

Schedule of property and equipment (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 6,681,378	$ 3,418,479
Less: accumulated depreciation and amortization	(2,794,403)	(2,312,034)
Property and equipment, net	3,886,975	1,106,445
Furniture And Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	1,456,745	818,897
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	2,413,820	556,907
Manufacturing Equipment And Tooling [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 2,810,813	$ 2,042,675

Schedule of time based stock op

Schedule of time based stock options (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Weighted-average volatility	0%
Stock Option Plan 2015 [Member] | Time Based Shares Options [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Dividend yield	0%	0%
Weighted-average volatility
Expected dividends	$ 0	$ 0
Expected term (in years)	10 years	10 years
Stock Option Plan 2015 [Member] | Time Based Shares Options [Member] | Minimum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected volatility	65.29%	74.01%
Risk-free rate	1.81%	1.20%
Stock Option Plan 2015 [Member] | Time Based Shares Options [Member] | Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected volatility	77.50%	77.91%
Risk-free rate	4.02%	1.62%
Stock Option Plan 2021 [Member] | Time Based Shares Options [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Dividend yield	0%
Expected volatility	65.90%
Weighted-average volatility
Expected dividends	$ 0
Expected term (in years)	10 years	0 years
Risk-free rate	2.99%
Stock Option Plan 2021 [Member] | Time Based Shares Options [Member] | Minimum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected volatility		0%
Risk-free rate		0%
Stock Option Plan 2021 [Member] | Time Based Shares Options [Member] | Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected volatility	0%

Schedule of status of time base

Schedule of status of time based stock options (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation expense	$ 3,079,427	$ 2,707,554
Stock Option Plan 2015 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Outstanding at beginning	3,672,500	2,922,494
Outstanding at beginning	$ 3.42	$ 2.46
Granted	445,000	2,000,000
Granted	$ 2.57	$ 3.64
Exercised	1,031,250	1,062,500
Exercised	$ 1.57	$ 1.19
Forfeited	526,250	187,494
Forfeited	$ 2.73	$ 3.36
Outstanding at ending	2,560,000	3,672,500
Outstanding at ending	$ 4.15	$ 3.42
Options exercisable at ending	737,500	983,750
Options exercisable	$ 4.93	$ 2.73
Weighted average fair value of options granted during the period	$ 1.98	$ 2.85
Stock-based compensation expense	$ 1,925,861	$ 2,457,788
Stock Option Plan 2021 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options exercisable at ending	0
Outstanding at beginning	0
Outstanding at beginning	$ 0
Granted	475,000
Granted	$ 2.67
Exercised	0
Exercised
Forfeited	0
Forfeited
Outstanding at ending	475,000	0
Outstanding at ending	$ 2.67	$ 0
Options exercisable at ending
Weighted average fair value of options granted during the period	$ 1.99
Stock-based compensation expense	$ 157,536

Schedule of information pertain

Schedule of information pertaining to options outstanding (Details) - Time Based Shares Options [Member] - Exercise Price1 [Member]	12 Months Ended
	Dec. 31, 2022 $ / shares shares
Stock Option Plan 2015 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number outstanding | shares	2,560,000
Weighted average remaining contractual life	8 years 9 months 18 days
Weighted average exercise price | $ / shares	$ 4.15
Number exercisable | shares	737,500
Weighted average exercise price | $ / shares	$ 4.93
Stock Option Plan 2021 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number outstanding | shares	475,000
Weighted average remaining contractual life	9 years 3 months 19 days
Weighted average exercise price | $ / shares	$ 2.67
Number exercisable | shares	0
Weighted average exercise price | $ / shares	$ 0

Schedule of performance base op

Schedule of performance base options outstanding (Details) - Performance Shares [Member] - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Outstanding at beginning		1,000,000
Outstanding at beginning		$ 1.70
Options exercisable at ending	0	0
Granted	$ 0	$ 0
Exercised	0	0
Exercised	$ 0	$ 0
Forfeited	0	0
Forfeited	$ 0	$ 0
Outstanding at ending	0	1,000,000
Outstanding at ending	$ 0	$ 1.70
Options exercisable at ending	$ 0	$ 0
Weighted average fair value of options granted during the period	0	0
Weighted average fair value of options granted during the period	$ 0	$ 0
Stock-based compensation expense		$ (408,747)

The following table summarizes

The following table summarizes the activities for our unvested restricted stock awards for the twelve months ended December 31, 2022, and 2021. (Details) - Restricted Stock Awards [Member] - Stock Option Plan 2021 [Member] - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Outstanding at beginning	1,000,000
Outstanding at beginning	$ 3.01
Granted		1,000,000
Granted		$ 3.01
Vested	50,000
Vested	$ 3.31
Forfeited/canceled
Forfeited/canceled
Outstanding at ending	950,000	1,000,000
Outstanding at ending	$ 3.04	$ 3.01

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details Narrative) - USD ($)				12 Months Ended
	May 18, 2021	Apr. 12, 2021	Jan. 02, 2021	Dec. 31, 2022	Dec. 31, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Tax benefit				$ (2,014,018)	$ (1,801,618)
Stock-based compensation expense				$ 3,079,427	$ 2,707,554
Common stock issued, shares				48,861,891	48,044,162
Aggregate stock price				$ 488,619	$ 480,441
Chief Executive Officer Linda Tharby [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common stock issued, shares		1,000,000
Aggregate stock price		$ 3,310,000
Non Employee Director And Board Advisor [Member[
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Nonemployee services transaction cost	110,000		75,000
Share-based goods and nonemployee services transaction	to be paid quarterly $12,500 in cash and $15,000 in common stock		to be paid quarterly $12,500 in cash and $6,250 in common stock
Board of Directors Chairman [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Nonemployee services transaction cost	140,000		100,000
Share-based goods and nonemployee services transaction	to be paid quarterly $12,500 in cash and $22,500 in common stock		to be paid quarterly $12,500 in cash and $12,500 in common stock
Chief Executive Officer [Member] | Employment Agreement [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common stock issued, shares		1,000,000
Aggregate stock price		$ 3,310,000
Stock Option Plan 2015 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Available for issuance				6,000,000
Stock options granted				$ 1.98	$ 2.85
Tax benefit				$ 198,258	$ 175,257
Stock Option Plan 2015 [Member] | Time Based Shares Options [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Tax benefit				103,319	665,700
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures				1,925,861	2,457,788
Proceeds from Stock Options Exercised				$ 406,623	$ 1,261,251
Weighted-average grant-date fair value options granted				881,428	5,699,986
Options exercised				1,150,203	697,920
Total unrecognized compensation cost				$ 4,299,070
Weighted-average period				45 months
Fair value of shares				$ 2,703,002	$ 1,923,179
Stock Option Plan 2015 [Member] | Executiveskey Employees And Consultants [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common stock, shares, outstanding				2,560,000
Stock issued during period				445,000
Stock Option Plan 2021 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Available for issuance				1,000,000
Stock options granted				$ 1.99	$ 0
Tax benefit				$ 33,083	$ 0
Fair value of shares				0	0
Stock-based compensation expense				157,536
Stock Option Plan 2021 [Member] | Equity Option [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation expense					$ (408,747)
Stock Option Plan 2021 [Member] | Time Based Shares Options [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Weighted-average grant-date fair value options granted				945,215	0
Unrecognized compensation cost				$ 787,679
Weighted-average period				48 months
Stock Option Plan 2021 [Member] | Restricted Stock Awards [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Tax benefit				$ 101,419	$ 47,220
Unrecognized compensation cost				$ 1,618,177
Weighted-average period				21 months
Stock Option Plan 2021 [Member] | Director [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common stock issued, shares				97,100
Stock Option Plan 2021 [Member] | Executive [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common stock issued, shares				475,000

Schedule of components of lease

Schedule of components of lease expense (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Leases [Abstract]
Operating lease cost	$ 514,294	$ 149,476
Short-term lease cost	131,490	146,604
Total lease cost	645,784	296,080
Finance lease cost:
Amortization of right-of-use assets	50,895	2,586
Interest on lease liabilities	5,393	60
Total finance lease cost	$ 56,288	$ 2,646

Schedule of cash flow informati

Schedule of cash flow information related to leases (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 247,504	$ 141,293
Financing cash flows from finance leases	$ 57,243	$ 2,646

Schdeule of balance sheet infor

Schdeule of balance sheet information related to leases (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Operating Leases
Operating lease right-of-use assets	$ 3,786,545	$ 95,553
Operating lease liability – current	345,834	95,553
Operating lease liability, net of current portion	3,653,257
Total operating lease liabilities	3,999,091	95,553
Finance Leases
Property and equipment, at cost	544,468	12,725
Accumulated depreciation	(50,895)	(12,725)
Property and equipment, net	493,573
Finance lease liability – current	98,335
Finance lease liability, net of current portion	394,283
Total finance lease liabilities	$ 492,618
Operating leases	9 years 8 months 12 days	7 months 6 days
Finance leases	4 years 22 days	0 years
Operating leases	4%	4.75%
Finance leases	4.25%	4.75%

Schedule of maturities of lease

Schedule of maturities of lease liabilities (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Leases [Abstract]
2023	$ 499,503
2023	123,200
2024	499,503
2024	123,200
2025	499,503
2025	123,200
2026	499,503
2026	123,200
2027	499,503
2027	65,957
Thereafter	2,331,015
Thereafter
Total undiscounted lease payments	4,828,530
Total undiscounted lease payments	558,757
Less: imputed interest	(829,439)
Less: imputed interest	(66,139)
Total lease liabilities	3,999,091	$ 95,553
Total lease liabilities	$ 492,618

LEASES (Details Narrative)

LEASES (Details Narrative)	12 Months Ended
	Dec. 31, 2022
Leases [Abstract]
Description of lease term	Our leases have remaining lease terms of 10, 5 years, and 3 months.

Schedule of provision for incom

Schedule of provision for income taxes (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
State income tax:
Current, net of refund	$ 0	$ (12,800)
Federal income tax:
Deferred	2,014,018	1,814,418
Current
Income tax benefit/(expense)	$ 2,014,018	$ 1,801,618

Schedule of reconciliation of i

Schedule of reconciliation of income taxes (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Loss before taxes	$ (10,675,160)	$ (6,364,441)
Income taxes computed at the federal statutory rate	2,241,784	1,336,533
State income and franchise tax	0	(12,800)
Permanent differences and other	(227,766)	477,885
Income tax benefit/(expense)	$ 2,014,018	$ 1,801,618

Schedule of components of defer

Schedule of components of deferred tax assets (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Deferred compensation cost	$ 557,931	$ 389,981
Depreciation and amortization	(624,184)	(116,911)
R&D credit	142,030	142,538
NOL	2,956,685	1,507,982
Allowance for bad debts and other	935,018	17,664
Deferred income tax assets, net	$ 3,967,480	$ 1,941,254

MAJOR CUSTOMERS (Details Narrat

MAJOR CUSTOMERS (Details Narrative)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer One [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	64%	64%

EMPLOYEE BENEFITS (Details Narr

EMPLOYEE BENEFITS (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Retirement Benefits [Abstract]
Description of matching contribution	The Company makes safe harbor matching contributions in an amount equal to 100% of the employee’s contribution, not to exceed 3% of employee’s compensation plus 50% of employee’s pay contributed between 3% and 5% of employee’s compensation
Matching expense	$ 214,931	$ 166,014

DEBT OBLIGATIONS (Details Narra

DEBT OBLIGATIONS (Details Narrative) - A O N Premium Finance L L C [Member] - Promissory Note [Member]	Aug. 05, 2022 USD ($)
Short-Term Debt [Line Items]
Notes payable	$ 800,000
Line of Credit [Member]
Short-Term Debt [Line Items]
Note payable terms	6.50%