KORU Medical Systems (KRMD) 10-Q 4 May 23 2023 Q1 Quarterly report Financial data

Cover

Cover - $ / shares	3 Months Ended
	Mar. 31, 2023	May 04, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2023
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2023
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 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		45,613,150
Entity Listing, Par Value Per Share	$ 0.01
Treasury stock, common, shares		3,420,502

BALANCE SHEETS (UNAUDITED)

BALANCE SHEETS (UNAUDITED) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
CURRENT ASSETS
Cash and cash equivalents	$ 12,224,865	$ 17,408,257
Accounts receivable less allowance for doubtful accounts of $21,459 for March 31, 2023, and for December 31, 2022	4,164,513	3,558,884
Inventory	6,638,418	6,404,867
Other Receivables	1,014,761	972,396
Prepaid expenses	1,172,101	1,457,232
TOTAL CURRENT ASSETS	25,214,658	29,801,636
Property and equipment, net	3,906,067	3,886,975
Intangible assets, net of accumulated amortization of $341,755 and $325,872 at March 31, 2023 and December 31, 2022, respectively	782,531	787,182
Operating lease right-of-use assets	3,706,874	3,786,545
Deferred income tax assets, net	4,544,880	3,967,480
Other assets	98,970	102,625
TOTAL ASSETS	38,253,980	42,332,443
CURRENT LIABILITIES
Accounts payable	1,503,120	2,391,799
Accrued expenses	1,591,737	2,889,941
Note Payable	218,403	433,295
Other Liabilities	261,544	257,337
Accrued payroll and related taxes	500,415	542,399
Financing lease liability – current	99,694	98,335
Operating lease liability – current	349,304	345,834
TOTAL CURRENT LIABILITIES	4,524,217	6,958,940
Financing lease liability, net of current portion	368,844	394,283
Operating lease liability, net of current portion	3,564,619	3,653,257
TOTAL LIABILITIES	8,457,680	11,006,480
STOCKHOLDERS’ EQUITY
Common stock, $0.01 par value, 75,000,000 shares authorized, 48,960,766 and 48,861,891 shares issued 45,540,264 and 45,441,389 shares outstanding at March 31, 2023, and December 31, 2022, respectively	489,608	488,619
Additional paid-in capital	45,132,350	44,252,117
Treasury stock, 3,420,502 shares at March 31, 2023 and December 31, 2022, at cost	(3,843,562)	(3,843,562)
Retained deficit	(11,982,096)	(9,571,211)
TOTAL STOCKHOLDERS’ EQUITY	29,796,300	31,325,963
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 38,253,980	$ 42,332,443

BALANCE SHEETS (UNAUDITED) (Par

BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Accounts receivable, allowance for credit loss, current	$ 21,459	$ 21,459
Finite-lived intangible assets, accumulated amortization	$ 341,755	$ 325,872
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	48,960,766	48,861,891
Common stock, shares, outstanding	45,540,264	45,441,389
Treasury stock, shares	3,420,502	3,420,502

STATEMENTS OF OPERATIONS (Unaud

STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
NET SALES	$ 7,392,605	$ 6,244,330
Cost of goods sold	3,245,570	2,622,025
Gross Profit	4,147,035	3,622,305
OPERATING EXPENSES
Selling, general and administrative	5,425,877	5,491,213
Research and development	1,564,869	1,148,355
Depreciation and amortization	213,117	109,252
Total Operating Expenses	7,203,863	6,748,820
Net Operating Loss	(3,056,828)	(3,126,515)
Non-Operating Income/(Expense)
Loss on currency exchange	(680)	(7,135)
Loss on disposal of fixed assets, net	(56,279)
Interest income (expense), net	125,502	(1,463)
TOTAL OTHER INCOME/(EXPENSE)	68,543	(8,598)
LOSS BEFORE INCOME TAXES	(2,988,285)	(3,135,113)
Income Tax Benefit	577,400	597,599
NET LOSS	$ (2,410,885)	$ (2,537,514)
NET LOSS PER SHARE
Basic	$ (0.05)	$ (0.06)
Diluted	$ (0.05)	$ (0.06)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
Basic	45,487,593	44,667,977
Diluted	45,487,593	44,667,977

STATEMENTS OF CASH FLOWS (UNAUD

STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$ (2,410,885)	$ (2,537,514)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense	881,222	837,556
Depreciation and amortization	213,117	109,252
Deferred income taxes	(577,400)	(597,599)
Loss on disposal of fixed assets	56,279
ROU landlord credit	(5,497)
Changes in operating assets and liabilities:
(Increase)/Decrease in accounts receivable	(647,994)	447,489
Decrease in other receivables		38,145
(Increase)/Decrease in inventory	(233,551)	88,601
Decrease/(Increase) in prepaid expenses and other assets	288,786	(11,805)
Increase in other Liabilities	4,207	25,625
(Decrease)/Increase in accounts payable	(888,679)	40,447
(Decrease)/Increase in accrued payroll and related taxes	(41,984)	345,712
Decrease in accrued expenses	(1,298,204)	(537,981)
NET CASH USED IN OPERATING ACTIVITIES	(4,660,583)	(1,752,072)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(272,605)	(750,908)
Purchases of intangible assets	(11,232)	(1,694)
NET CASH USED IN INVESTING ACTIVITIES	(283,837)	(752,602)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments on indebtedness	(214,892)	(252,968)
Payments on finance lease liability	(24,080)
NET CASH USED IN FINANCING ACTIVITIES	(238,972)	(252,968)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(5,183,392)	(2,757,642)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	17,408,257	25,334,889
CASH AND CASH EQUIVALENTS, END OF PERIOD	12,224,865	22,577,247
Cash paid during the periods for:
Interest	12,326	4,425
Income Taxes
Schedule of Non-Cash Operating, Investing and Financing Activities:
Issuance of common stock as compensation	$ 175,776	$ 142,500

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, 2021	$ 480,441	$ 40,774,245	$ (910,069)	$ (3,843,562)	$ 36,501,055
Beginning balance (in shares) at Dec. 31, 2021	48,044,162
Issuance of stock-based compensation	$ 475	142,025			142,500
Issuance of stock-based compensation (in shares)	47,500
Compensation expense related to stock options		524,670			524,670
Compensation related to Restricted Stock		170,386			170,386
Net loss			(2,537,514)		(2,537,514)
Issuance upon options exercised	$ 296	(296)
Issuance upon options exercised (in shares)	29,627
Ending balance, value at Mar. 31, 2022	$ 481,212	41,611,030	(3,447,583)	(3,843,562)	34,801,097
Ending balance (in shares) at Mar. 31, 2022	48,121,289
Beginning balance, value at Dec. 31, 2022	$ 488,619	44,252,117	(9,571,211)	(3,843,562)	31,325,963
Beginning balance (in shares) at Dec. 31, 2022	48,861,891
Issuance of stock-based compensation	$ 489	175,287			175,776
Issuance of stock-based compensation (in shares)	48,875
Compensation expense related to stock options		535,059			535,059
Compensation related to Restricted Stock	$ 500	169,887			170,387
Compensation related to Restricted Stock (in shares)	50,000
Net loss			(2,410,885)		(2,410,885)
Ending balance, value at Mar. 31, 2023	$ 489,608	$ 45,132,350	$ (11,982,096)	$ (3,843,562)	$ 29,796,300
Ending balance (in shares) at Mar. 31, 2023	48,960,766

NATURE OF OPERATIONS AND SUMMAR

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2023
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,” “we,” “us” or “our”) designs, manufactures and markets proprietary portable and innovative medical devices primarily for the subcutaneous drug delivery 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 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, 2022 (“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 2019 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 and an 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. The Company also maintains a non-employee director compensation plan. Shares of stock granted for director fees 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 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. Schedule of net income per common share Three Months Ended March 31, 2023 2022 Net loss $ (2,410,885 ) $ (2,537,514 ) Weighted Average Outstanding Shares: Outstanding shares 45,487,593 44,667,977 Option shares includable — (a) — (a) Restricted stock includable — (b) — (b) Total 45,487,593 44,667,977 Net loss per share Basic $ (0.05 ) $ (0.06 ) Diluted $ (0.05 ) $ (0.06 ) (a) For the three months ended March 31, 2023, and 2022, option shares of 14,626 346,020 (b) For the three months ended March 31, 2023, and 2022, Linda Tharby’s 900,000 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 Our revenues are derived from three business sources: (i) domestic core, (ii) international core, and (iii) novel therapies. Our core domestic and international revenues consist of sales of our syringe drivers, tubing and needles (“Product Revenue”) for the delivery of subcutaneous drugs that are FDA cleared for use with the KORU Medical infusion system, with the primary delivery for immunoglobulin to treat PIDD and CIDP. Novel therapies consist of Product Revenue for feasibility/clinical trials (pre-clinical studies, Phase I, Phase II, Phase III) of biopharmaceutical companies in the drug development process as well as non-recurring engineering services (“NRE”) revenues (including testing and registration services) received from biopharmaceutical companies to ready or customize the FREEDOM System for clinical and commercial use across multiple drug categories. For Product Revenues, 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 revenues. 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. Rebates are provided to distributors for the difference in selling price to distributor and pricing specified to select customers. In addition, rebates are provided to customers for meeting growth targets. Provisions for both distributor pricing and 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 growth target will be achieved. Our novel therapies revenues can fluctuate and may not be consistent from period to period. Engineering work performed on our product may be specialized and tailored to the specific needs of each independent clinical trial and not uniform in nature. The clinical trial size and scope of protocols may also range greatly from customer to customer, and there is no expectation of repeat customers on a consistent basis compared to our core business. We recognize NRE revenue under an input method, which recognizes revenue on the basis of our efforts or inputs (for example, resources consumed, labor hours expended, costs incurred, or time elapsed) to the satisfaction of a performance obligation relative to the total expected inputs to the satisfaction of that performance obligation (ie completion milestone). The input method that we use is based on costs incurred. The following table summarizes net revenues by geography for the three months ended March 31, 2023, and 2022: Schedule of net sales by geography Three Months Ended March 31, % of Total Revenues 2023 2022 2023 2022 Revenues Domestic $ 6,283,965 $ 5,301,388 85% 85% International 1,108,640 942,942 15% 15% Total $ 7,392,605 $ 6,244,330 LEASES 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. The standard requires 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. See “NOTE 6 — ACCOUNTING PRONOUNCEMENTS RECENTLY 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 three months ended March 31, 2023. 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. The Company did not record any impairment losses through March 31, 2023.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	3 Months Ended
	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 2 — PROPERTY AND EQUIPMENT Property and equipment consists of the following at: Schedule of property and equipment March 31, 2023 December 31, 2022 Furniture and office equipment $ 1,325,908 $ 1,456,745 Leasehold improvements 1,888,245 2,413,820 Manufacturing equipment and tooling 2,916,577 2,810,813 Total property and equipment 6,130,730 6,681,378 Less: accumulated depreciation and amortization (2,224,663 ) (2,794,403 ) Property and equipment, net $ 3,906,067 $ 3,886,975 Leasehold improvements decrease of $ 0.5 million Depreciation expense was $ 197,233 94,085

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2023
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.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	3 Months Ended
	Mar. 31, 2023
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 March 31, 2023, there were options to purchase 2,600,000 40,000 6,000,000 The 2021 Plan provides for the grant of up to 1,000,000 156,758 475,000 Each non-employee director of the Company (other than the Chairman of the Board) is eligible to receive $ 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. 2015 STOCK OPTION PLAN, as amended Time Based Stock Options The per share weighted average fair value of stock options granted during the three months ended March 31, 2023 and March 31, 2022 was $ 2.83 2.45 49,817 49,406 Schedule of time based stock options March 31, 2023 2022 Dividend yield 0.00 0.00 Expected Volatility 61.3 76.1 77.5 Weighted-average volatility — — Expected dividends — — Expected term (in years) 10 10 Risk-free rate 3.53 1.81 1.87 The following table summarizes the status of the 2015 Plan with respect to time based stock options: Schedule of status of time based stock options Three Months Ended March 31, 2023 2022 Shares Weighted Shares Weighted Outstanding at January 1 2,560,000 $ 4.15 3,672,500 $ 3.42 Granted 40,000 $ 3.91 135,000 $ 3.07 Exercised — $ — 75,000 $ 1.60 Forfeited — $ — 93,750 $ 1.57 Outstanding at March 31 2,600,000 $ 4.15 3,638,750 $ 3.49 Options exercisable at March 31 1,010,000 $ 4.63 1,358,750 $ 2.83 Weighted average fair value of options granted during the period — $ 2.83 — $ 2.45 Stock-based compensation expense — $ 475,983 — $ 524,670 Total stock-based compensation expense was $ 475,983 524,670 The weighted-average grant-date fair value of options granted during the three months ended March 31, 2023, and 2022 was $ 0.1 million 0.3 million no 75,000 The following table presents information pertaining to options outstanding at March 31, 2023: Schedule of information pertaining to options outstanding Range of Exercise Price Number Weighted Weighted Number Weighted $2.25-$9.49 2,600,000 8.6 $ 4.15 1,010,000 $ 4.63 As of March 31, 2023, there was $ 3,936,268 45 3,511,874 2,815,943 2021 STOCK OPTION PLAN, as amended Time Based Stock Options The per share weighted average fair value of stock options granted during the three months ended March 31, 2023 and March 31, 2022 was zero zero 12,406 zero Schedule of time based stock options March 31, 2023 2022 Dividend yield 0.00 0.00 Expected Volatility 0.00 0.00 Weighted-average volatility — — Expected dividends — — Expected term (in years) 0 0 Risk-free rate 0.00 0.00 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 Three Months Ended March 31, 2023 2022 Shares Weighted Shares Weighted Outstanding at January 1 475,000 $ 2.67 — $ — Granted — $ — — $ — Exercised — $ — — $ — Forfeited — $ — — $ — Outstanding at March 31 475,000 $ 2.67 — $ — Options exercisable at March 31 — $ — — $ — Weighted average fair value of options granted during the period — $ — — $ — Stock-based compensation expense — $ 59,076 — $ — Total stock-based compensation expense was $ 59,076 zero no The weighted-average grant-date fair value of options granted during the three months ended March 31, 2023, and 2022 was zero zero The following table presents information pertaining to options outstanding at March 31, 2023: Schedule of information pertaining to options outstanding Range of Exercise Price Number Weighted Weighted Number Weighted $2.67 475,000 9.1 $ 2.67 — $ — As of March 31, 2023, there was $ 728,603 zero zero RESTRICTED STOCK AWARDS The following table summarizes the activities for our restricted stock awards for the three months ended March 31, 2023, and 2022. Three Months Ended March 31, 2023 2022 Shares Weighted Shares Weighted Unvested at January 1 950,000 $ 3.04 1,000,000 $ 3.01 Granted — $ — — $ — Vested 50,000 $ 3.31 — $ — Forfeited/canceled — $ — — $ — Unvested at March 31 900,000 $ 2.93 1,000,000 $ 3.01 As of March 31, 2023, and 2022, there was $ 1,447,790 2,129,339 35,781 35,781

DEBT OBLIGATIONS

DEBT OBLIGATIONS	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
DEBT OBLIGATIONS	NOTE 5 — 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 (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 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 Monthly payments are due on the first of each month beginning August 1, 2022 through June 1, 2023. 433,295 218,403

LEASES

LEASES	3 Months Ended
	Mar. 31, 2023
Leases [Abstract]
LEASES	NOTE 6 — LEASES We have an operating lease for our corporate office, and 2 Our operating lease has remaining lease term of nine years and 4 months. 4.2 4.5 The components of lease expense were as follows: Schedule of components of lease expense Three Months Ended March 31, 2023 2022 Operating lease cost $ 112,522 $ 78,442 Short-term lease cost 52,894 49,709 Total lease cost $ 165,416 $ 128,151 Finance lease cost: Amortization of right-of-use assets $ 27,223 $ — Interest on lease liabilities 6,720 — Total finance lease cost $ 33,943 $ — Supplemental cash flow information related to leases was as follows: Schedule of cash flow information related to leases Three Months Ended March 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 113,813 $ 63,193 Financing cash flows from finance leases 30,800 — Supplemental balance sheet information related to leases was as follows: Schdeule of balance sheet information related to leases March 31, December 31, Operating Leases Operating lease right-of-use assets $ 3,706,874 $ 3,786,545 Operating lease current liabilities 349,304 345,834 Operating lease long term liabilities 3,564,619 3,653,257 Total operating lease liabilities $ 3,913,923 $ 3,999,091 Finance Leases Property and equipment, at cost $ 544,468 $ 544,468 Accumulated depreciation (78,118) (50,895 ) Property and equipment, net $ 466,350 $ 493,573 Finance lease current liabilities 99,694 98,335 Finance lease long term liabilities 368,844 394,283 Total finance lease liabilities $ 468,538 $ 492,618 March 31, December 31, Weighted Average Remaining Lease Term Operating leases 9.4 9.7 Finance leases 4.3 4.6 Weighted Average Discount Rate Operating leases 4.00 4.0 Finance leases 4.25 4.25 Maturities of lease liabilities are as follows: Schedule of maturities of lease liabilities Year Ending December 31, Operating Leases Finance Leases 2023 (excluding the three months ended March 31, 2023) 374,627 92,400 2024 499,503 123,200 2025 499,503 123,200 2026 499,503 123,200 2027 499,503 65,957 Thereafter 2,331,014 — Total undiscounted lease payments 4,703,653 527,957 Less: imputed interest (789,730 ) (59,419 ) Total lease liabilities $ 3,913,923 $ 468,538

NATURE OF OPERATIONS AND SUMM_2

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
NATURE OF OPERATIONS	NATURE OF OPERATIONS KORU MEDICAL SYSTEMS, INC. (the “Company,” “KORU Medical,” “we,” “us” or “our”) designs, manufactures and markets proprietary portable and innovative medical devices primarily for the subcutaneous drug delivery 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 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, 2022 (“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 2019 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 and an 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. The Company also maintains a non-employee director compensation plan. Shares of stock granted for director fees 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 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. Schedule of net income per common share Three Months Ended March 31, 2023 2022 Net loss $ (2,410,885 ) $ (2,537,514 ) Weighted Average Outstanding Shares: Outstanding shares 45,487,593 44,667,977 Option shares includable — (a) — (a) Restricted stock includable — (b) — (b) Total 45,487,593 44,667,977 Net loss per share Basic $ (0.05 ) $ (0.06 ) Diluted $ (0.05 ) $ (0.06 ) (a) For the three months ended March 31, 2023, and 2022, option shares of 14,626 346,020 (b) For the three months ended March 31, 2023, and 2022, Linda Tharby’s 900,000 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 Our revenues are derived from three business sources: (i) domestic core, (ii) international core, and (iii) novel therapies. Our core domestic and international revenues consist of sales of our syringe drivers, tubing and needles (“Product Revenue”) for the delivery of subcutaneous drugs that are FDA cleared for use with the KORU Medical infusion system, with the primary delivery for immunoglobulin to treat PIDD and CIDP. Novel therapies consist of Product Revenue for feasibility/clinical trials (pre-clinical studies, Phase I, Phase II, Phase III) of biopharmaceutical companies in the drug development process as well as non-recurring engineering services (“NRE”) revenues (including testing and registration services) received from biopharmaceutical companies to ready or customize the FREEDOM System for clinical and commercial use across multiple drug categories. For Product Revenues, 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 revenues. 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. Rebates are provided to distributors for the difference in selling price to distributor and pricing specified to select customers. In addition, rebates are provided to customers for meeting growth targets. Provisions for both distributor pricing and 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 growth target will be achieved. Our novel therapies revenues can fluctuate and may not be consistent from period to period. Engineering work performed on our product may be specialized and tailored to the specific needs of each independent clinical trial and not uniform in nature. The clinical trial size and scope of protocols may also range greatly from customer to customer, and there is no expectation of repeat customers on a consistent basis compared to our core business. We recognize NRE revenue under an input method, which recognizes revenue on the basis of our efforts or inputs (for example, resources consumed, labor hours expended, costs incurred, or time elapsed) to the satisfaction of a performance obligation relative to the total expected inputs to the satisfaction of that performance obligation (ie completion milestone). The input method that we use is based on costs incurred. The following table summarizes net revenues by geography for the three months ended March 31, 2023, and 2022: Schedule of net sales by geography Three Months Ended March 31, % of Total Revenues 2023 2022 2023 2022 Revenues Domestic $ 6,283,965 $ 5,301,388 85% 85% International 1,108,640 942,942 15% 15% Total $ 7,392,605 $ 6,244,330
LEASES	LEASES 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. The standard requires 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. See “NOTE 6 —
ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED	ACCOUNTING PRONOUNCEMENTS RECENTLY 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 three months ended March 31, 2023.
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. The Company did not record any impairment losses through March 31, 2023.

NATURE OF OPERATIONS AND SUMM_3

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
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 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. Schedule of net income per common share Three Months Ended March 31, 2023 2022 Net loss $ (2,410,885 ) $ (2,537,514 ) Weighted Average Outstanding Shares: Outstanding shares 45,487,593 44,667,977 Option shares includable — (a) — (a) Restricted stock includable — (b) — (b) Total 45,487,593 44,667,977 Net loss per share Basic $ (0.05 ) $ (0.06 ) Diluted $ (0.05 ) $ (0.06 ) (a) For the three months ended March 31, 2023, and 2022, option shares of 14,626 346,020 (b) For the three months ended March 31, 2023, and 2022, Linda Tharby’s 900,000 1,000,000
Schedule of net sales by geography	The following table summarizes net revenues by geography for the three months ended March 31, 2023, and 2022: Schedule of net sales by geography Three Months Ended March 31, % of Total Revenues 2023 2022 2023 2022 Revenues Domestic $ 6,283,965 $ 5,301,388 85% 85% International 1,108,640 942,942 15% 15% Total $ 7,392,605 $ 6,244,330

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	3 Months Ended
	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	Property and equipment consists of the following at: Schedule of property and equipment March 31, 2023 December 31, 2022 Furniture and office equipment $ 1,325,908 $ 1,456,745 Leasehold improvements 1,888,245 2,413,820 Manufacturing equipment and tooling 2,916,577 2,810,813 Total property and equipment 6,130,730 6,681,378 Less: accumulated depreciation and amortization (2,224,663 ) (2,794,403 ) Property and equipment, net $ 3,906,067 $ 3,886,975

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Schedule of time based stock options	Schedule of time based stock options March 31, 2023 2022 Dividend yield 0.00 0.00 Expected Volatility 61.3 76.1 77.5 Weighted-average volatility — — Expected dividends — — Expected term (in years) 10 10 Risk-free rate 3.53 1.81 1.87
Schedule of status of time based stock options	The following table summarizes the status of the 2015 Plan with respect to time based stock options: Schedule of status of time based stock options Three Months Ended March 31, 2023 2022 Shares Weighted Shares Weighted Outstanding at January 1 2,560,000 $ 4.15 3,672,500 $ 3.42 Granted 40,000 $ 3.91 135,000 $ 3.07 Exercised — $ — 75,000 $ 1.60 Forfeited — $ — 93,750 $ 1.57 Outstanding at March 31 2,600,000 $ 4.15 3,638,750 $ 3.49 Options exercisable at March 31 1,010,000 $ 4.63 1,358,750 $ 2.83 Weighted average fair value of options granted during the period — $ 2.83 — $ 2.45 Stock-based compensation expense — $ 475,983 — $ 524,670
Schedule of information pertaining to options outstanding	The following table presents information pertaining to options outstanding at March 31, 2023: Schedule of information pertaining to options outstanding Range of Exercise Price Number Weighted Weighted Number Weighted $2.25-$9.49 2,600,000 8.6 $ 4.15 1,010,000 $ 4.63
Schedule of time based stock options	Schedule of time based stock options March 31, 2023 2022 Dividend yield 0.00 0.00 Expected Volatility 0.00 0.00 Weighted-average volatility — — Expected dividends — — Expected term (in years) 0 0 Risk-free rate 0.00 0.00
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 Three Months Ended March 31, 2023 2022 Shares Weighted Shares Weighted Outstanding at January 1 475,000 $ 2.67 — $ — Granted — $ — — $ — Exercised — $ — — $ — Forfeited — $ — — $ — Outstanding at March 31 475,000 $ 2.67 — $ — Options exercisable at March 31 — $ — — $ — Weighted average fair value of options granted during the period — $ — — $ — Stock-based compensation expense — $ 59,076 — $ —
Schedule of information pertaining to options outstanding	The following table presents information pertaining to options outstanding at March 31, 2023: Schedule of information pertaining to options outstanding Range of Exercise Price Number Weighted Weighted Number Weighted $2.67 475,000 9.1 $ 2.67 — $ —
The following table summarizes the activities for our restricted stock awards for the three months ended March 31, 2023, and 2022.	The following table summarizes the activities for our restricted stock awards for the three months ended March 31, 2023, and 2022. Three Months Ended March 31, 2023 2022 Shares Weighted Shares Weighted Unvested at January 1 950,000 $ 3.04 1,000,000 $ 3.01 Granted — $ — — $ — Vested 50,000 $ 3.31 — $ — Forfeited/canceled — $ — — $ — Unvested at March 31 900,000 $ 2.93 1,000,000 $ 3.01

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Mar. 31, 2023
Leases [Abstract]
Schedule of components of lease expense	The components of lease expense were as follows: Schedule of components of lease expense Three Months Ended March 31, 2023 2022 Operating lease cost $ 112,522 $ 78,442 Short-term lease cost 52,894 49,709 Total lease cost $ 165,416 $ 128,151 Finance lease cost: Amortization of right-of-use assets $ 27,223 $ — Interest on lease liabilities 6,720 — Total finance lease cost $ 33,943 $ —
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 Three Months Ended March 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 113,813 $ 63,193 Financing cash flows from finance leases 30,800 —
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 March 31, December 31, Operating Leases Operating lease right-of-use assets $ 3,706,874 $ 3,786,545 Operating lease current liabilities 349,304 345,834 Operating lease long term liabilities 3,564,619 3,653,257 Total operating lease liabilities $ 3,913,923 $ 3,999,091 Finance Leases Property and equipment, at cost $ 544,468 $ 544,468 Accumulated depreciation (78,118) (50,895 ) Property and equipment, net $ 466,350 $ 493,573 Finance lease current liabilities 99,694 98,335 Finance lease long term liabilities 368,844 394,283 Total finance lease liabilities $ 468,538 $ 492,618 March 31, December 31, Weighted Average Remaining Lease Term Operating leases 9.4 9.7 Finance leases 4.3 4.6 Weighted Average Discount Rate Operating leases 4.00 4.0 Finance leases 4.25 4.25
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 (excluding the three months ended March 31, 2023) 374,627 92,400 2024 499,503 123,200 2025 499,503 123,200 2026 499,503 123,200 2027 499,503 65,957 Thereafter 2,331,014 — Total undiscounted lease payments 4,703,653 527,957 Less: imputed interest (789,730 ) (59,419 ) Total lease liabilities $ 3,913,923 $ 468,538

Schedule of net income per comm

Schedule of net income per common share (Details) - USD ($)		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Net loss		$ (2,410,885)	$ (2,537,514)
Weighted Average Outstanding Shares:
Outstanding shares		45,487,593	44,667,977
Option shares includable	[1]
Restricted stock includable	[2]
Total		45,487,593	44,667,977
Net loss per share
Basic		$ (0.05)	$ (0.06)
Diluted		$ (0.05)	$ (0.06)
Restricted Stock [Member]
Net loss per share
Restricted stock		900,000	1,000,000
Employee Stock [Member]
Net loss per share
Restricted stock		14,626	346,020
Common Stock [Member]
Net loss
Weighted Average Outstanding Shares:
Outstanding shares		45,487,593	44,667,977
[1]For the three months ended March 31, 2023, and 2022, option shares of 14,626 346,020 900,000 1,000,000

Schedule of net sales by geogra

Schedule of net sales by geography (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenues	$ 7,392,605	$ 6,244,330
UNITED STATES
Revenues	$ 6,283,965	$ 5,301,388
Net revenues (in percentage)	85%	85%
Non-US [Member]
Revenues	$ 1,108,640	$ 942,942
Net revenues (in percentage)	15%	15%

NATURE OF OPERATIONS AND SUMM_4

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	3 Months Ended
	Mar. 31, 2023 USD ($) Number
Accounting Policies [Abstract]
Number of segment | Number	1
FDIC cash uninsured amount | $	$ 250,000

Schedule of property and equipm

Schedule of property and equipment (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 6,130,730	$ 6,681,378
Less: accumulated depreciation and amortization	(2,224,663)	(2,794,403)
Property and equipment, net	3,906,067	3,886,975
Furniture And Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	1,325,908	1,456,745
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	1,888,245	2,413,820
Manufacturing Equipment And Tooling [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 2,916,577	$ 2,810,813

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
Construction in progress gross	$ 500,000
Depreciation expense	$ 197,233	$ 94,085

Schedule of time based stock op

Schedule of time based stock options (Details) - Time Based Shares Options [Member] - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Stock Option Plan 2015 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Dividend yield	0%	0%
Expected volatility	61.30%
Weighted-average volatility	0%	0%
Expected dividends	$ 0	$ 0
Expected term (in years)	10 years	10 years
Risk-free rate	3.53%
Stock Option Plan 2015 [Member] | Minimum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected volatility		76.10%
Risk-free rate		1.81%
Stock Option Plan 2015 [Member] | Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected volatility		77.50%
Risk-free rate		1.87%
Stock Option Plan 2021 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Dividend yield	0%	0%
Expected volatility	0%	0%
Weighted-average volatility	0%	0%
Expected dividends	$ 0	$ 0
Expected term (in years)	0 years	0 years
Risk-free rate	0%	0%

Schedule of status of time base

Schedule of status of time based stock options (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation expense	$ 881,222	$ 837,556
Stock Option Plan 2015 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Outstanding at beginning	2,560,000	3,672,500
Outstanding at beginning	$ 4.15	$ 3.42
Granted	40,000	135,000
Granted	$ 3.91	$ 3.07
Exercised		75,000
Exercised		$ 1.60
Forfeited		93,750
Forfeited		$ 1.57
Outstanding at ending	2,600,000	3,638,750
Outstanding at ending	$ 4.15	$ 3.49
Options exercisable at ending	1,010,000	1,358,750
Options exercisable	$ 4.63	$ 2.83
Weighted average fair value of options granted during the period	$ 2.83	$ 2.45
Stock-based compensation expense	$ 475,983	$ 524,670
Stock Option Plan 2021 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options exercisable at ending
Outstanding at beginning	475,000
Outstanding at beginning	$ 2.67
Granted
Granted
Exercised
Exercised
Forfeited
Forfeited
Outstanding at ending	475,000
Outstanding at ending	$ 2.67
Options exercisable at ending
Weighted average fair value of options granted during the period
Stock-based compensation expense	$ 59,076	$ 0

Schedule of information pertain

Schedule of information pertaining to options outstanding (Details) - Time Based Shares Options [Member] - Exercise Price1 [Member]	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Stock Option Plan 2015 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number outstanding | shares	2,600,000
Weighted average remaining contractual life	8 years 7 months 6 days
Weighted average exercise price | $ / shares	$ 4.15
Number exercisable | shares	1,010,000
Weighted average exercise price | $ / shares	$ 4.63
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 1 month 6 days
Weighted average exercise price | $ / shares	$ 2.67
Number exercisable | shares
Weighted average exercise price | $ / shares

The following table summarizes

The following table summarizes the activities for our restricted stock awards for the three months ended March 31, 2023, and 2022. (Details) - Restricted Stock Awards [Member] - Stock Option Plan 2021 [Member] - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Outstanding at beginning	950,000	1,000,000
Outstanding at beginning	$ 3.04	$ 3.01
Granted
Granted
Vested	50,000
Vested	$ 3.31
Forfeited/canceled
Forfeited/canceled
Outstanding at ending	900,000	1,000,000
Outstanding at ending	$ 2.93	$ 3.01

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details Narrative) - USD ($)		3 Months Ended
	May 18, 2021	Mar. 31, 2023	Mar. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Tax benefit		$ (577,400)	$ (597,599)
Stock-based compensation expense		881,222	837,556
Restricted Stock Awards [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation cost		$ 1,447,790	$ 2,129,339
Non Employee Director And Board Advisor [Member[
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Nonemployee services transaction cost	110,000
Share-based goods and nonemployee services transaction	to be paid quarterly $12,500 in cash and $15,000 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
Share-based goods and nonemployee services transaction	to be paid quarterly $12,500 in cash and $22,500 in common stock.
Stock Option Plan 2015 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Issuance of stock-based compensation (in shares)		6,000,000
Stock options granted		$ 2.83	$ 2.45
Tax benefit		$ 49,817	$ 49,406
Fair value of shares		3,511,874	2,815,943
Stock Option Plan 2015 [Member] | Time Based Shares Options [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation expense		475,983	524,670
Weighted-average grant-date fair value options granted		$ 100,000	$ 300,000
Number of options exercised		0	75,000
Total unrecognized compensation cost		$ 3,936,268
Weighted-average period (in years)		45 months
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		2,600,000
Stock issued during period		40,000
Stock Option Plan 2021 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Issuance of stock-based compensation (in shares)		1,000,000
Stock options granted		$ 0	$ 0
Tax benefit		$ 12,406	$ 0
Fair value of shares		0	0
Stock-based compensation expense		59,076	0
Unrecognized compensation cost		728,603
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		$ 0	$ 0
Number of options exercised		0	0
Stock Option Plan 2021 [Member] | Restricted Stock Awards [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Tax benefit		$ 35,781	$ 35,781
Stock Option Plan 2021 [Member] | Director [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares issued under plan in total		156,758
Stock Option Plan 2021 [Member] | Executive [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares issued under plan in total		475,000

DEBT OBLIGATIONS (Details Narra

DEBT OBLIGATIONS (Details Narrative) - USD ($)			3 Months Ended
	Aug. 05, 2022	Jun. 29, 2022	Mar. 31, 2023	Dec. 31, 2022
Short-Term Debt [Line Items]
Description of debt obligation			(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
Description of the frequency of periodic payments	Monthly payments are due on the first of each month beginning August 1, 2022 through June 1, 2023.
A O N Premium Finance L L C [Member]
Short-Term Debt [Line Items]
Balance of AON note			$ 218,403	$ 433,295
A O N Premium Finance L L C [Member] | Promissory Note [Member]
Short-Term Debt [Line Items]
Notes payable	$ 800,000
A O N Premium Finance L L C [Member] | Promissory Note [Member] | Line of Credit [Member]
Short-Term Debt [Line Items]
Note payable terms	6.50%
Key Equipment Finance [Member] | Progress Payment Loan And Security Agreement [Member]
Short-Term Debt [Line Items]
Loans, principal amount		$ 3,500,000

Schedule of components of lease

Schedule of components of lease expense (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Leases [Abstract]
Operating lease cost	$ 112,522	$ 78,442
Short-term lease cost	52,894	49,709
Total lease cost	165,416	128,151
Finance lease cost:
Amortization of right-of-use assets	27,223
Interest on lease liabilities	6,720
Total finance lease cost	$ 33,943

Schedule of cash flow informati

Schedule of cash flow information related to leases (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 113,813	$ 63,193
Financing cash flows from finance leases	$ 30,800

Schdeule of balance sheet infor

Schdeule of balance sheet information related to leases (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Operating Leases
Operating lease right-of-use assets	$ 3,706,874	$ 3,786,545
Operating lease current liabilities	349,304	345,834
Operating lease long term liabilities	3,564,619	3,653,257
Total operating lease liabilities	3,913,923	3,999,091
Finance Leases
Property and equipment, at cost	544,468	544,468
Accumulated depreciation	(78,118)	(50,895)
Property and equipment, net	466,350	493,573
Finance lease current liabilities	99,694	98,335
Finance lease long term liabilities	368,844	394,283
Total finance lease liabilities	$ 468,538	$ 492,618
Operating leases	9 years 4 months 24 days	9 years 8 months 12 days
Finance leases	4 years 3 months 19 days	4 years 7 months 6 days
Operating leases	4%	4%
Finance leases	4.25%	4.25%

Schedule of maturities of lease

Schedule of maturities of lease liabilities (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Leases [Abstract]
2023 (excluding the three months ended March 31, 2023)	$ 374,627
2023 (excluding the three months ended March 31, 2023)	92,400
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	2,331,014
Thereafter
Total undiscounted lease payments	4,703,653
Total undiscounted lease payments	527,957
Less: imputed interest	(789,730)
Less: imputed interest	(59,419)
Total lease liabilities	3,913,923	$ 3,999,091
Total lease liabilities	$ 468,538	$ 492,618

LEASES (Details Narrative)

LEASES (Details Narrative) - Number	3 Months Ended	6 Months Ended	10 Months Ended
	Mar. 31, 2023	Jun. 30, 2022	Oct. 31, 2022
Lessee, Lease, Description [Line Items]
Description of lease term	Our operating lease has remaining lease term of nine years and 4 months.
Operating lease, options to terminate		4 years 2 months 12 days	4 years 6 months
Computer Equipment [Member]
Lessee, Lease, Description [Line Items]
Number of finance leases	2