KORU Medical Systems (KRMD) 10-Q 7 Aug 24 2024 Q2 Quarterly report Financial data

Cover

Cover - $ / shares	6 Months Ended
	Jun. 30, 2024	Aug. 07, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2024
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2024
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	DE
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		45,855,328
Entity Listing, Par Value Per Share	$ 0.01
Treasury Stock, Common, Shares		3,438,526

BALANCE SHEETS (UNAUDITED)

BALANCE SHEETS (UNAUDITED) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
CURRENT ASSETS
Cash and cash equivalents	$ 10,458,001	$ 11,482,240
Accounts receivable less allowance for credit losses of $24,777 as of June 30, 2024 and December 31, 2023	5,846,082	4,045,211
Inventory	2,588,750	3,481,301
Other receivables		28,889
Prepaid expenses	472,864	1,218,288
TOTAL CURRENT ASSETS	19,365,697	20,255,929
Property and equipment, net	3,678,984	3,837,657
Intangible assets, net of accumulated amortization of $423,834 and $390,341 as of June 30, 2024 and December 31, 2023, respectively	745,084	754,361
Operating lease right-of-use assets	3,414,831	3,514,055
Deferred income tax assets, net of allowance for non-realization of deferred tax assets of $6,581,206 and $6,002,777 as of June 30, 2024 and December 31, 2023, respectively
Other assets	98,970	98,970
TOTAL ASSETS	27,303,566	28,460,972
CURRENT LIABILITIES
Accounts payable	1,595,691	975,193
Accrued expenses	2,144,722	1,711,427
Note payable		314,344
Other liabilities	447,788	512,520
Accrued payroll and related taxes	444,251	462,941
Financing lease liability – current	112,689	109,540
Operating lease liability – current	391,699	368,313
TOTAL CURRENT LIABILITIES	5,136,840	4,454,278
Financing lease liability, net of current portion	259,479	316,623
Operating lease liability, net of current portion	3,202,697	3,336,300
TOTAL LIABILITIES	8,599,016	8,107,201
STOCKHOLDERS’ EQUITY
Common stock, $0.01 par value, 75,000,000 shares authorized, 49,257,812 and 49,089,864 shares issued 45,819,286 and 45,669,362 shares outstanding as of June 30, 2024, and December 31, 2023, respectively	492,398	490,899
Additional paid-in capital	48,331,591	47,018,707
Treasury stock, 3,438,526 shares as of June 30, 2024 and December 31, 2023, at cost	(3,882,493)	(3,843,562)
Accumulated deficit	(26,236,946)	(23,312,273)
TOTAL STOCKHOLDERS’ EQUITY	18,704,550	20,353,771
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 27,303,566	$ 28,460,972

BALANCE SHEETS (UNAUDITED) (Par

BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Accounts receivable, allowance for credit loss, current	$ 24,777	$ 24,777
Finite-lived intangible assets, accumulated amortization	423,834	390,341
Deferred Rent Receivables, Net, Noncurrent	$ 6,581,206	$ 6,002,777
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	49,257,812	49,089,864
Common Stock, Shares, Outstanding	45,819,286	45,669,362
Treasury stock, shares	3,438,526	3,438,526

STATEMENTS OF OPERATIONS (UNAUD

STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
NET REVENUES	$ 8,430,089	$ 6,935,931	$ 16,627,887	$ 14,328,536
Cost of goods sold	2,950,339	3,047,807	6,044,839	6,293,377
Gross Profit	5,479,750	3,888,124	10,583,048	8,035,159
OPERATING EXPENSES
Selling, general and administrative	5,319,688	5,303,167	10,677,308	10,729,044
Research and development	1,134,232	1,596,614	2,609,907	3,161,483
Depreciation and amortization	217,864	212,919	449,233	426,036
Total Operating Expenses	6,671,784	7,112,700	13,736,448	14,316,563
Net Operating Loss	(1,192,034)	(3,224,576)	(3,153,400)	(6,281,404)
Non-Operating Income/(Expense)
Loss on currency exchange	(10,680)	(2,472)	(22,159)	(3,152)
Loss on disposal of fixed assets, net			(300)	(56,279)
Interest income, net	213,999	131,167	251,186	256,669
TOTAL OTHER INCOME	203,319	128,695	228,727	197,238
LOSS BEFORE INCOME TAXES	(988,715)	(3,095,881)	(2,924,673)	(6,084,166)
Income Tax Benefit		599,995		1,177,395
NET LOSS	$ (988,715)	$ (2,495,886)	$ (2,924,673)	$ (4,906,771)
NET LOSS PER SHARE
Basic	$ (0.02)	$ (0.05)	$ (0.06)	$ (0.11)
Diluted	$ (0.02)	$ (0.05)	$ (0.06)	$ (0.11)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
Basic	45,811,373	45,606,603	45,761,799	45,547,427
Diluted	45,811,373	45,606,603	45,761,799	45,547,427

STATEMENTS OF CASH FLOWS (UNAUD

STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$ (2,924,673)	$ (4,906,771)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense and warrant expense	1,314,384	1,681,955
Depreciation and amortization	449,233	426,036
Deferred income taxes		(1,177,395)
Loss on disposal of fixed assets	300	56,279
Non-cash lease adjustments	(10,994)	(10,994)
Changes in operating assets and liabilities:
Accounts receivable	(1,800,871)	(239,590)
Inventory	892,551	1,126,643
Prepaid expenses and other assets	774,313	687,994
Other liabilities	(64,731)	5,916
Accounts payable	620,498	(817,169)
Accrued payroll and related taxes	(18,691)	(119,776)
Accrued expenses	433,296	(1,527,648)
NET CASH USED IN OPERATING ACTIVITIES	(335,385)	(4,814,520)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(257,367)	(375,246)
Purchases of intangible assets	(24,216)	(17,298)
NET CASH USED IN INVESTING ACTIVITIES	(281,583)	(392,544)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments on insurance finance indebtedness	(314,344)	(433,295)
Payments on finance lease liability	(53,995)	(48,493)
Payments for taxes related to net share settlement of equity awards	(38,932)
NET CASH USED IN FINANCING ACTIVITIES	(407,271)	(481,788)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(1,024,239)	(5,688,852)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	11,482,240	17,408,257
CASH AND CASH EQUIVALENTS, END OF PERIOD	10,458,001	11,719,405
Cash paid during the periods for:
Interest	20,491	20,165
Income taxes		3,160
Schedule of Non-Cash Operating, Investing and Financing Activities:
Issuance of common stock as compensation	$ 221,182	$ 266,023

STATEMENTS OF STOCKHOLDERS' EQU

STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock, Common [Member]	Total
Beginning balance, value at Dec. 31, 2022	$ 488,619	$ 44,252,117	$ (9,571,211)	$ (3,843,562)	$ 31,325,963
Ending balance (in shares) at Dec. 31, 2022	48,861,891
Accrued compensation paid in shares	$ 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 expense related to restricted stock awards	$ 500	169,887			170,387
Ending balance (in shares) at Mar. 31, 2023	48,960,766
Ending balance, value at Mar. 31, 2023	$ 489,608	45,132,350	(11,982,096)	(3,843,562)	29,796,300
Compensation expense related to restricted stock (in shares)	50,000
Net loss			(2,410,885)		(2,410,885)
Beginning balance, value at Dec. 31, 2022	$ 488,619	44,252,117	(9,571,211)	(3,843,562)	31,325,963
Ending balance (in shares) at Dec. 31, 2022	48,861,891
Ending balance (in shares) at Jun. 30, 2023	49,033,652
Ending balance, value at Jun. 30, 2023	$ 490,337	45,932,354	(14,477,982)	(3,843,562)	28,101,147
Net loss					(4,906,771)
Beginning 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
Accrued compensation paid in shares	$ 229	90,018			90,247
Issuance of stock-based compensation (in shares)	22,886
Compensation expense related to stock options		540,099			540,099
Compensation expense related to restricted stock awards	$ 500	169,887			170,387
Ending balance (in shares) at Jun. 30, 2023	49,033,652
Ending balance, value at Jun. 30, 2023	$ 490,337	45,932,354	(14,477,982)	(3,843,562)	28,101,147
Compensation expense related to restricted stock (in shares)	50,000
Net loss			(2,495,886)		(2,495,886)
Beginning balance, value at Dec. 31, 2023	$ 490,899	47,018,707	(23,312,273)	(3,843,562)	20,353,771
Ending balance (in shares) at Dec. 31, 2023	49,089,864
Accrued compensation paid in shares	$ 537	123,267			123,804
Issuance of stock-based compensation (in shares)	53,725
Compensation expense related to stock options		393,113			393,113
Compensation expense related to restricted stock awards		130,676			130,676
Ending balance (in shares) at Mar. 31, 2024	49,143,589
Ending balance, value at Mar. 31, 2024	$ 491,436	47,717,888	(25,248,231)	(3,843,562)	19,117,531
Issuance of warrants		52,125			52,125
Net loss			(1,935,958)		(1,935,958)
Beginning balance, value at Dec. 31, 2023	$ 490,899	47,018,707	(23,312,273)	(3,843,562)	20,353,771
Ending balance (in shares) at Dec. 31, 2023	49,089,864
Ending balance (in shares) at Jun. 30, 2024	49,239,788
Ending balance, value at Jun. 30, 2024	$ 492,398	48,331,591	(26,236,946)	(3,882,493)	18,704,550
Net loss					(2,924,673)
Beginning balance, value at Mar. 31, 2024	$ 491,436	47,717,888	(25,248,231)	(3,843,562)	19,117,531
Ending balance (in shares) at Mar. 31, 2024	49,143,589
Accrued compensation paid in shares	$ 411	136,020		(38,932)	97,500
Issuance of stock-based compensation (in shares)	41,138
Compensation expense related to stock options		401,218			401,218
Compensation expense related to restricted stock awards	$ 551	63,434			63,984
Ending balance (in shares) at Jun. 30, 2024	49,239,788
Ending balance, value at Jun. 30, 2024	$ 492,398	48,331,591	(26,236,946)	(3,882,493)	18,704,550
Compensation expense related to restricted stock (in shares)	55,061
Issuance of warrants		13,032			13,032
Net loss			$ (988,715)		$ (988,715)

NATURE OF OPERATIONS AND SUMMAR

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2024
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 regulations and 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, 2023 (“Annual Report”). In accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”), the Company has omitted footnote disclosures that would substantially duplicate the disclosures contained in the audited financial statements of the Company. 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 statements of cash flows, the Company considers all short-term investments with an original maturity of three months or less to be cash equivalents. As of June 30, 2024 the Company held cash and cash-equivalents of $ 10.5 million PATENTS Costs incurred in obtaining patents have been capitalized and are being amortized over the legal life of the patents. STOCK-BASED COMPENSATION The Company maintains an omnibus equity incentive plan under which it grants options and other equity incentive awards to certain executives, key employees and consultants, as well as shares of common stock to non-employee directors. The fair value of each stock option grant is estimated on the date of the grant using the Black-Scholes option-pricing model. All options are charged against income at their fair value. The entire compensation expense of the award is recognized over the vesting period. Shares of stock granted for director fees are recorded at the fair value of the shares at the grant date. 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. The fair value of restricted stock awards vesting at certain annual sales growth thresholds were estimated as of the date of Board acknowledgement of the achievement, 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. Performance share units are equity classified and measured at the fair market value of the underlying stock at the grant date. NET LOSS PER SHARE The Company computes net loss per share using the weighted-average number of common shares outstanding during the period. Basic and diluted net loss per share are the same because the conversion, exercise or issuance of all potential common stock equivalents, which comprise the Company’s outstanding common stock options, unvested restricted stock units, performance stock units and warrants, would be anti-dilutive, due to the reporting of a net loss for each of the periods in the accompanying statements of operations. USE OF ESTIMATES IN THE FINANCIAL STATEMENTS The preparation of financial statements in conformity with United States generally accepted accounting principles (“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, deferred tax valuation allowances, inventory valuation, expected credit losses, and customer rebate and incentive accruals. The results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the entire 2024 fiscal year. REVENUE RECOGNITION Our revenues are derived from three business sources: (i) domestic core (which consists of US and Canada), (ii) international core, and (iii) novel therapies. Our domestic and international core 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 Primary Immunodeficiency Diseases (“PIDD”) and Chronic Inflammatory Demyelinating Polyneuropathy (“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 TM For Product Revenue, 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 Product Revenue. 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. 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 (i.e. completion milestone). The input method that we use is based on costs incurred. Contracts are often modified to account for changes in contract specifications and requirements. Contract modifications exist when the modification either creates new, or changes existing, enforceable rights and obligations. Generally, when contract modifications create new performance obligations, the modification is considered to be a separate contract and revenue is recognized prospectively. When contract modifications change existing performance obligations, the impact on the existing transaction price and measure of progress for the performance obligation to which it relates is generally recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. Contract assets primarily represent revenue earnings over time that are not yet billable based on the terms of the contracts. Contract liabilities (i.e., deferred revenue) consist of fees invoiced or paid by the Company’s customers for which the associated performance obligations have not been satisfied and revenue has not been recognized based on the Company’s revenue recognition criteria described above. As of June 30, 2024, the Company does not have a contract asset or a contract liability in the accompanying balance sheet. The following table summarizes net revenues by geography for the three and six months ended June 30, 2024, and 2023. Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Revenues Domestic $ 6,779,298 $ 5,686,427 $ 13,163,381 $ 11,970,392 International 1,650,791 1,249,504 3,464,506 2,358,144 Total $ 8,430,089 $ 6,935,931 $ 16,627,887 $ 14,328,536 ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED 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. 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 June 30, 2024.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	6 Months Ended
	Jun. 30, 2024
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 2 — PROPERTY AND EQUIPMENT Property and equipment consists of the following at: June 30, 2024 December 31, 2023 Furniture and office equipment $ 1,435,083 $ 1,412,164 Leasehold improvements 1,953,653 1,953,653 Manufacturing equipment and tooling 3,424,129 3,193,113 Total property and equipment 6,812,865 6,558,930 Less: accumulated depreciation and amortization (3,133,881 ) (2,721,273 ) Property and equipment, net $ 3,678,984 $ 3,837,657 Depreciation and amortization expense was $ 217,864 212,919 449,233 426,036

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	NOTE 3 — STOCK-BASED COMPENSATION Prior to May 9, 2024, the Company maintained a stock option plan and an omnibus equity incentive plan under which it granted options and other equity incentive awards to certain executives, key employees and consultants, as well as a non-employee director compensation plan under which it granted shares of common stock to non-employee directors. As of May 9, 2024, a new omnibus equity incentive plan replaced these plans with respect to awards made after that date to employees, consultants and directors. The Company has also made inducement awards of equity-based compensation outside of the plans. The fair value of each option and warrant grant is estimated on the date of the grant using the Black-Scholes option-pricing model. All options and warrants are charged against income at their fair value. The entire compensation expense of the grant is recognized over the vesting period. Performance share units are equity classified and measured at the fair value of the underlying stock at the grant date. Shares of stock granted for director fees are recorded at the fair value of the shares at the grant date. Restricted stock awards are equity classified and measured at the fair 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 other restricted stock awards 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. The Company has four equity incentive plans: the 2015 Stock Option Plan, as amended (the “2015 Plan”), the 2021 Omnibus Equity Incentive Plan (the “2021 Plan”), the 2024 Omnibus Equity Incentive Plan (the “2024 Plan”), and the Non-Employee Director Compensation Plan (the “Director Plan”). No new awards have been or will be issued pursuant to the 2015 Plan, the 2021 Plan or the Director Plan from and after May 9, 2024. The Company has also issued employment inducement awards to certain key executives. The 2015 Plan provides for the grant of incentive stock options and nonqualified stock options. As of June 30, 2024, there were 2,270,000 The 2021 Plan provides for the grant of incentive stock options, nonqualified stock options, stock awards, restricted stock awards, restricted stock units and/or stock appreciation rights to employees, consultants and directors. As of June 30, 2024, there were 656,744 The 2024 Plan provides for the grant of incentive stock options, nonqualified stock options, stock awards, restricted stock awards, restricted stock units and/or stock appreciation rights to employees, consultants and directors. As of June 30, 2024, there were no 2,907,061 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. Time-Vesting Stock Options The following table summarizes the inputs into the Black-Scholes model for all time-vesting stock options granted during the six months ended June 30, 2024 and 2023: June 30, 2024 2023 Dividend yield 0.00 % 0.00 % Expected Volatility 46.18 47.83 % 56.83 61.29 % Expected dividends — — Expected term (in years) 6.25 10 Risk-free rate 4.24 4.63 % 3.50 3.53 % The following table summarizes the status of the stock options: Six Months Ended June 30, 2024 2023 Shares Weighted Shares Weighted Outstanding at January 1 3,256,250 $ 3.66 3,035,000 $ 3.92 Granted 215,000 $ 2.12 85,000 $ 3.91 Exercised — $ — — $ — Forfeited 433,750 $ 6.58 — $ — Outstanding at June 30 3,037,500 $ 3.36 3,120,000 $ 3.92 Options exercisable at June 30 1,392,500 $ 3.40 1,158,750 $ 4.37 Weighted average fair value of options granted during the period — $ 1.37 — $ 2.78 Stock-based compensation expense — $ 791,792 — $ 1,075,158 Total stock-based compensation expense for time-vested stock options was $ 791,792 1,075,158 The following table presents information pertaining to options outstanding at June 30, 2024: Range of Exercise Price Number Weighted Weighted Number Weighted $2.08 - $3.96 3,037,500 6.64 $ 3.36 1,392,500 $ 3.40 As of June 30, 2024, there was $ 2,383,087 3,665,166 3,798,884 Performance-Vesting Stock Options The following table summarizes the activities for our unvested performance-vesting stock option awards for the six months ended June 30, 2024, and 2023. Six Months Ended June 30, 2024 2023 Shares Weighted Shares Weighted Unvested at January 1 200,000 $ 1.48 — $ — Granted — $ — — $ — Vested — $ — — $ — Forfeited/canceled — $ — — $ — Unvested/outstanding at June 30 200,000 $ 1.48 — $ — Total stock-based compensation expense for performance-vesting stock options was $ 16,244 zero As of June 30, 2024, there was $ 160,223 Restricted Stock Awards and PSUs The following table summarizes the activities for our restricted stock awards and PSUs for the six months ended June 30, 2024, and 2023. Six Months Ended June 30, 2024 2023 Shares Weighted Shares Weighted Unvested at January 1 904,496 $ 1.80 950,000 $ 3.04 Granted — $ — 54,496 $ 3.68 Vested 81,789 $ 3.38 100,000 $ 3.31 Forfeited/canceled — $ — — $ — Unvested at June 30 822,707 $ 1.98 904,496 $ 2.97 Total stock-based compensation expense for restricted stock awards and PSUs was $ 236,933 340,774 As of June 30, 2024, and 2023, there was $ 641,132 1,447,790 Common Stock Warrants The following table summarizes the activities for our common stock warrants issued in connection with our loan financing agreement with our lender for the six months ended June 30, 2024, and 2023. Six Months Ended June 30, 2024 2023 Shares Weighted Shares Weighted Unvested at January 1 — $ — — $ — Granted 76,104 $ 1.37 — $ — Vested 38,052 $ 1.37 — $ — Forfeited/canceled — $ — — $ — Unvested at June 30 38,052 $ 1.37 — $ — As of June 30, 2024, and 2023, there was $ 39,096 zero

DEBT OBLIGATIONS

DEBT OBLIGATIONS	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
DEBT OBLIGATIONS	NOTE 4 — DEBT OBLIGATIONS On July 28, 2023, the Company entered into a commercial insurance premium finance and security agreement with an insurance provider in the aggregate principal amount of $ 565,172 9.5 Monthly payments were due on the first of each month beginning August 1, 2023 through June 1, 2024. 314,344 zero On March 8, 2024, the Company entered into a loan and security agreement with a large domestic banking institution, as lender, providing for a $ 5,000,000 5,000,000

LEASES

LEASES	6 Months Ended
	Jun. 30, 2024
Leases [Abstract]
LEASES	NOTE 5 — LEASES We have finance and operating leases for our corporate office, vehicles, and certain office and computer equipment. Our three operating leases have remaining lease terms of 8.17 4.58 3.92 2.92 3.25 4.25 The components of lease expense were as follows: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Operating lease cost $ 112,806 $ 112,279 $ 224,354 $ 224,801 Short-term lease cost 556 25,143 4,016 78,037 Total lease cost $ 113,362 $ 137,422 $ 228,370 $ 302,838 Finance lease cost: Amortization of right-of-use assets $ 28,896 $ 27,224 $ 57,793 $ 54,447 Interest on lease liabilities 5,671 6,387 11,724 13,107 Total finance lease cost $ 34,567 $ 33,611 $ 69,517 $ 67,554 Supplemental cash flow information related to leases was as follows: Six Months Ended June 30, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 244,879 $ 229,879 Financing cash flows from finance leases 65,718 61,600 Supplemental balance sheet information related to leases was as follows: June 30, December 31, Operating Leases Operating lease right-of-use assets $ 3,414,831 $ 3,514,055 Operating lease current liabilities 391,699 368,313 Operating lease long term liabilities 3,202,697 3,336,300 Total operating lease liabilities $ 3,594,396 $ 3,704,613 Finance Leases Property and equipment, at cost $ 577,929 $ 577,929 Accumulated depreciation (219,254 ) (161,461 ) Property and equipment, net $ 358,675 $ 416,468 Finance lease current liabilities 112,689 109,540 Finance lease long term liabilities 259,479 316,623 Total finance lease liabilities $ 372,168 $ 426,163 June 30, December 31, Weighted Average Remaining Lease Term Operating leases 5.56 6.88 Finance leases 3.22 3.72 Weighted Average Discount Rate Operating leases 6.60 5.76 Finance leases 6.25 6.19 Maturities of lease liabilities are as follows: Year Ending December 31, Operating Leases Finance Leases Remainder of 2024 $ 266,990 65,718 2025 533,979 131,437 2026 533,979 131,437 2027 533,979 74,194 2028 520,985 6,180 Thereafter 1,833,603 — Total undiscounted lease payments 4,223,515 408,966 Less: imputed interest (629,119 ) (36,799 ) Total lease liabilities $ 3,594,396 $ 372,168

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2024
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 6 — INCOME TAXES For interim income tax reporting, the Company estimates its annual effective tax rate and applies it to fiscal year-to-date pretax loss, excluding unusual or infrequently occurring discrete items. Tax jurisdictions with losses for which tax benefits cannot be realized are excluded. The Company reported an income tax expense of zero 599,995 zero 1,177,395 We evaluate our deferred tax assets to determine if they are more likely than not to be realized by assessing both positive and negative evidence in accordance with ASC Topic 740, Income Taxes. After considering our cumulative pretax loss (the three-year period ending with the current year), as well as analyzing all available evidence, we have recorded a valuation allowance of $ 6,002,777 6,581,206 Recurring items cause our effective tax rate to differ from the U.S. federal statutory rate of 21 Beginning in 2022, certain research and development costs are required to be capitalized and amortized over a five-year period under the Tax Cuts and Jobs Act enacted in December 2017. This change will impact the expected U.S. federal and state income tax expense and cash taxes to be paid for our fiscal 2024. The Company files income tax returns in the U.S. federal jurisdiction and in various state jurisdictions. Income tax returns for years prior to fiscal 2020 are no longer subject to examination by tax authorities.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 7 — 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. The Company is not presently a party to any litigation or other legal proceeding that is believed to be material to its financial condition.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2024
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 8 — SUBSEQUENT EVENTS The Company renewed its commercial insurance premium finance and security agreement with its insurance provider on August 1, 2024, for the insurance period covering July 1, 2024 – June 30, 2025. The aggregate principal amount of the note is $ 487,516

NATURE OF OPERATIONS AND SUMM_2

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2024
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 regulations and 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, 2023 (“Annual Report”). In accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”), the Company has omitted footnote disclosures that would substantially duplicate the disclosures contained in the audited financial statements of the Company. 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 statements of cash flows, the Company considers all short-term investments with an original maturity of three months or less to be cash equivalents. As of June 30, 2024 the Company held cash and cash-equivalents of $ 10.5 million
PATENTS	PATENTS Costs incurred in obtaining patents have been capitalized and are being amortized over the legal life of the patents.
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION The Company maintains an omnibus equity incentive plan under which it grants options and other equity incentive awards to certain executives, key employees and consultants, as well as shares of common stock to non-employee directors. The fair value of each stock option grant is estimated on the date of the grant using the Black-Scholes option-pricing model. All options are charged against income at their fair value. The entire compensation expense of the award is recognized over the vesting period. Shares of stock granted for director fees are recorded at the fair value of the shares at the grant date. 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. The fair value of restricted stock awards vesting at certain annual sales growth thresholds were estimated as of the date of Board acknowledgement of the achievement, 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. Performance share units are equity classified and measured at the fair market value of the underlying stock at the grant date.
NET LOSS PER SHARE	NET LOSS PER SHARE The Company computes net loss per share using the weighted-average number of common shares outstanding during the period. Basic and diluted net loss per share are the same because the conversion, exercise or issuance of all potential common stock equivalents, which comprise the Company’s outstanding common stock options, unvested restricted stock units, performance stock units and warrants, would be anti-dilutive, due to the reporting of a net loss for each of the periods in the accompanying statements of operations.
USE OF ESTIMATES IN THE FINANCIAL STATEMENTS	USE OF ESTIMATES IN THE FINANCIAL STATEMENTS The preparation of financial statements in conformity with United States generally accepted accounting principles (“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, deferred tax valuation allowances, inventory valuation, expected credit losses, and customer rebate and incentive accruals. The results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the entire 2024 fiscal year.
REVENUE RECOGNITION	REVENUE RECOGNITION Our revenues are derived from three business sources: (i) domestic core (which consists of US and Canada), (ii) international core, and (iii) novel therapies. Our domestic and international core 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 Primary Immunodeficiency Diseases (“PIDD”) and Chronic Inflammatory Demyelinating Polyneuropathy (“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 TM For Product Revenue, 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 Product Revenue. 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. 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 (i.e. completion milestone). The input method that we use is based on costs incurred. Contracts are often modified to account for changes in contract specifications and requirements. Contract modifications exist when the modification either creates new, or changes existing, enforceable rights and obligations. Generally, when contract modifications create new performance obligations, the modification is considered to be a separate contract and revenue is recognized prospectively. When contract modifications change existing performance obligations, the impact on the existing transaction price and measure of progress for the performance obligation to which it relates is generally recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. Contract assets primarily represent revenue earnings over time that are not yet billable based on the terms of the contracts. Contract liabilities (i.e., deferred revenue) consist of fees invoiced or paid by the Company’s customers for which the associated performance obligations have not been satisfied and revenue has not been recognized based on the Company’s revenue recognition criteria described above. As of June 30, 2024, the Company does not have a contract asset or a contract liability in the accompanying balance sheet. The following table summarizes net revenues by geography for the three and six months ended June 30, 2024, and 2023. Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Revenues Domestic $ 6,779,298 $ 5,686,427 $ 13,163,381 $ 11,970,392 International 1,650,791 1,249,504 3,464,506 2,358,144 Total $ 8,430,089 $ 6,935,931 $ 16,627,887 $ 14,328,536
ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED	ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED 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.
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 June 30, 2024.

NATURE OF OPERATIONS AND SUMM_3

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
The following table summarizes net revenues by geography for the three and six months ended June 30, 2024, and 2023.	The following table summarizes net revenues by geography for the three and six months ended June 30, 2024, and 2023. Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Revenues Domestic $ 6,779,298 $ 5,686,427 $ 13,163,381 $ 11,970,392 International 1,650,791 1,249,504 3,464,506 2,358,144 Total $ 8,430,089 $ 6,935,931 $ 16,627,887 $ 14,328,536

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	6 Months Ended
	Jun. 30, 2024
Property, Plant and Equipment [Abstract]
Property and equipment consists of the following at:	Property and equipment consists of the following at: June 30, 2024 December 31, 2023 Furniture and office equipment $ 1,435,083 $ 1,412,164 Leasehold improvements 1,953,653 1,953,653 Manufacturing equipment and tooling 3,424,129 3,193,113 Total property and equipment 6,812,865 6,558,930 Less: accumulated depreciation and amortization (3,133,881 ) (2,721,273 ) Property and equipment, net $ 3,678,984 $ 3,837,657

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
The following table summarizes the inputs into the Black-Scholes model for all time-vesting stock options granted during the six months ended June 30, 2024 and 2023:	The following table summarizes the inputs into the Black-Scholes model for all time-vesting stock options granted during the six months ended June 30, 2024 and 2023: June 30, 2024 2023 Dividend yield 0.00 % 0.00 % Expected Volatility 46.18 47.83 % 56.83 61.29 % Expected dividends — — Expected term (in years) 6.25 10 Risk-free rate 4.24 4.63 % 3.50 3.53 %
The following table summarizes the status of the stock options:	The following table summarizes the status of the stock options: Six Months Ended June 30, 2024 2023 Shares Weighted Shares Weighted Outstanding at January 1 3,256,250 $ 3.66 3,035,000 $ 3.92 Granted 215,000 $ 2.12 85,000 $ 3.91 Exercised — $ — — $ — Forfeited 433,750 $ 6.58 — $ — Outstanding at June 30 3,037,500 $ 3.36 3,120,000 $ 3.92 Options exercisable at June 30 1,392,500 $ 3.40 1,158,750 $ 4.37 Weighted average fair value of options granted during the period — $ 1.37 — $ 2.78 Stock-based compensation expense — $ 791,792 — $ 1,075,158
The following table presents information pertaining to options outstanding at June 30, 2024:	The following table presents information pertaining to options outstanding at June 30, 2024: Range of Exercise Price Number Weighted Weighted Number Weighted $2.08 - $3.96 3,037,500 6.64 $ 3.36 1,392,500 $ 3.40
The following table summarizes the activities for our unvested performance-vesting stock option awards for the six months ended June 30, 2024, and 2023.	The following table summarizes the activities for our unvested performance-vesting stock option awards for the six months ended June 30, 2024, and 2023. Six Months Ended June 30, 2024 2023 Shares Weighted Shares Weighted Unvested at January 1 200,000 $ 1.48 — $ — Granted — $ — — $ — Vested — $ — — $ — Forfeited/canceled — $ — — $ — Unvested/outstanding at June 30 200,000 $ 1.48 — $ —
The following table summarizes the activities for our restricted stock awards and PSUs for the six months ended June 30, 2024, and 2023.	The following table summarizes the activities for our restricted stock awards and PSUs for the six months ended June 30, 2024, and 2023. Six Months Ended June 30, 2024 2023 Shares Weighted Shares Weighted Unvested at January 1 904,496 $ 1.80 950,000 $ 3.04 Granted — $ — 54,496 $ 3.68 Vested 81,789 $ 3.38 100,000 $ 3.31 Forfeited/canceled — $ — — $ — Unvested at June 30 822,707 $ 1.98 904,496 $ 2.97
The following table summarizes the activities for our common stock warrants issued in connection with our loan financing agreement with our lender for the six months ended June 30, 2024, and 2023.	The following table summarizes the activities for our common stock warrants issued in connection with our loan financing agreement with our lender for the six months ended June 30, 2024, and 2023. Six Months Ended June 30, 2024 2023 Shares Weighted Shares Weighted Unvested at January 1 — $ — — $ — Granted 76,104 $ 1.37 — $ — Vested 38,052 $ 1.37 — $ — Forfeited/canceled — $ — — $ — Unvested at June 30 38,052 $ 1.37 — $ —

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Jun. 30, 2024
Leases [Abstract]
The components of lease expense were as follows:	The components of lease expense were as follows: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Operating lease cost $ 112,806 $ 112,279 $ 224,354 $ 224,801 Short-term lease cost 556 25,143 4,016 78,037 Total lease cost $ 113,362 $ 137,422 $ 228,370 $ 302,838 Finance lease cost: Amortization of right-of-use assets $ 28,896 $ 27,224 $ 57,793 $ 54,447 Interest on lease liabilities 5,671 6,387 11,724 13,107 Total finance lease cost $ 34,567 $ 33,611 $ 69,517 $ 67,554
Supplemental cash flow information related to leases was as follows:	Supplemental cash flow information related to leases was as follows: Six Months Ended June 30, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 244,879 $ 229,879 Financing cash flows from finance leases 65,718 61,600
Supplemental balance sheet information related to leases was as follows:	Supplemental balance sheet information related to leases was as follows: June 30, December 31, Operating Leases Operating lease right-of-use assets $ 3,414,831 $ 3,514,055 Operating lease current liabilities 391,699 368,313 Operating lease long term liabilities 3,202,697 3,336,300 Total operating lease liabilities $ 3,594,396 $ 3,704,613 Finance Leases Property and equipment, at cost $ 577,929 $ 577,929 Accumulated depreciation (219,254 ) (161,461 ) Property and equipment, net $ 358,675 $ 416,468 Finance lease current liabilities 112,689 109,540 Finance lease long term liabilities 259,479 316,623 Total finance lease liabilities $ 372,168 $ 426,163 June 30, December 31, Weighted Average Remaining Lease Term Operating leases 5.56 6.88 Finance leases 3.22 3.72 Weighted Average Discount Rate Operating leases 6.60 5.76 Finance leases 6.25 6.19
Maturities of lease liabilities are as follows:	Maturities of lease liabilities are as follows: Year Ending December 31, Operating Leases Finance Leases Remainder of 2024 $ 266,990 65,718 2025 533,979 131,437 2026 533,979 131,437 2027 533,979 74,194 2028 520,985 6,180 Thereafter 1,833,603 — Total undiscounted lease payments 4,223,515 408,966 Less: imputed interest (629,119 ) (36,799 ) Total lease liabilities $ 3,594,396 $ 372,168

The following table summarizes

The following table summarizes net revenues by geography for the three and six months ended June 30, 2024, and 2023. (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenues	$ 8,430,089	$ 6,935,931	$ 16,627,887	$ 14,328,536
UNITED STATES
Revenues	6,779,298	5,686,427	13,163,381	11,970,392
Non-US [Member]
Revenues	$ 1,650,791	$ 1,249,504	$ 3,464,506	$ 2,358,144

NATURE OF OPERATIONS AND SUMM_4

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	6 Months Ended
	Jun. 30, 2024 USD ($) Number
Accounting Policies [Abstract]
Number of segment | Number	1
Interest Income, Securities, US Treasury | $	$ 10,500,000

Property and equipment consists

Property and equipment consists of the following at: (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 6,812,865	$ 6,558,930
Less: accumulated depreciation and amortization	(3,133,881)	(2,721,273)
Property and equipment, net	3,678,984	3,837,657
Furniture and Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	1,435,083	1,412,164
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	1,953,653	1,953,653
Manufacturing Equipment and Tooling [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 3,424,129	$ 3,193,113

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 217,864	$ 212,919	$ 449,233	$ 426,036

The following table summarize_2

The following table summarizes the inputs into the Black-Scholes model for all time-vesting stock options granted during the six months ended June 30, 2024 and 2023: (Details) - Time Vesting Stock Options [Member] - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Dividend yield	0%	0%
Expected dividends	$ 0	$ 0
Expected term (in years)	6 years 2 months 30 days	10 years
Minimum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected volatility	46.18%	56.83%
Risk-free rate	4.24%	3.50%
Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected volatility	47.83%	61.29%
Risk-free rate	4.63%	3.53%

The following table summarize_3

The following table summarizes the status of the stock options: (Details) - Time Vesting Stock Options [Member] - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Outstanding at beginning, shares	3,256,250	3,035,000
Outstanding at beginning, price	$ 3.66	$ 3.92
Granted, shares	215,000	85,000
Granted, price	$ 2.12	$ 3.91
Exercised, shares
Exercised, price
Forfeited, shares	433,750
Forfeited, price	$ 6.58
Outstanding at ending, shares	3,037,500	3,120,000
Outstanding at ending, price	$ 3.36	$ 3.92
Options exercisable, shares	1,392,500	1,158,750
Options exercisable, price	$ 3.40	$ 4.37
Weighted average fair value of options granted during the period, price	$ 1.37	$ 2.78
Stock-based compensation expense	$ 791,792	$ 1,075,158

The following table presents in

The following table presents information pertaining to options outstanding at June 30, 2024: (Details) - Time Vesting Stock Options [Member] - Exercise Price1 [Member]	6 Months Ended
	Jun. 30, 2024 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number outstanding | shares	3,037,500
Weighted average remaining contractual life	6 years 7 months 21 days
Weighted average exercise price | $ / shares	$ 3.36
Number exercisable | shares	1,392,500
Weighted average exercise price | $ / shares	$ 3.40

The following table summarize_4

The following table summarizes the activities for our unvested performance-vesting stock option awards for the six months ended June 30, 2024, and 2023. (Details) - Performance Vesting Stock Options [Member] - $ / shares	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Outstanding at beginning, shares	200,000
Unvested at beginning, price	$ 1.48
Granted, shares	0	0
Granted, price	$ 0	$ 0
Forfeited, shares	0	0
Vested, price	$ 0	$ 0
Forfeited, shares	0	0
Forfeited/canceled, price	$ 0	$ 0
Unvested at ending, shares	200,000
Unvested at ending, price	$ 1.48

The following table summarize_5

The following table summarizes the activities for our restricted stock awards and PSUs for the six months ended June 30, 2024, and 2023. (Details) - Restricted Stock Awards [Member] - $ / shares	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Outstanding at beginning, shares	904,496	950,000
Outstanding at beginning, price	$ 1.80	$ 3.04
Granted, shares		54,496
Granted, price		$ 3.68
Vested, shares	81,789	100,000
Vested, price	$ 3.38	$ 3.31
Forfeited/canceled, price
Forfeited/canceled, price
Outstanding at ending, shares	822,707	904,496
Outstanding at ending, price	$ 1.98	$ 2.97

The following table summarize_6

The following table summarizes the activities for our common stock warrants issued in connection with our loan financing agreement with our lender for the six months ended June 30, 2024, and 2023. (Details) - Common Stock Warrants [Member] - $ / shares	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Outstanding at beginning, shares
Outstanding at beginning, price
Granted, shares	76,104
Granted, price	$ 1.37
Vested, shares	38,052
Vested, price	$ 1.37
Forfeited/canceled, price
Forfeited/canceled, price
Outstanding at ending, shares	38,052
Outstanding at ending, price	$ 1.37

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Time Vesting Stock Options [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation expense	$ 791,792	$ 1,075,158
Total unrecognized compensation cost	2,383,087
Fair value of shares	3,665,166	3,798,884
Performance Vesting Stock Options [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total stock-based compensation expense	16,244	0
Unrecognized cost	160,223
Restricted Stock Awards [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total stock-based compensation expense	236,933	340,774
Unrecognized cost	641,132	1,447,790
Common Stock Warrants [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized cost	$ 39,096	$ 0
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 non-employee 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 non-employee 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]
Shares reserved for outstanding awards	2,270,000
Omnibus Equity Incentive Plan 2021 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares reserved for outstanding awards	656,744
Omnibus Equity Incentive Plan 2024 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares reserved for outstanding awards	0
Shares available for issuance	2,907,061

DEBT OBLIGATIONS (Details Narra

DEBT OBLIGATIONS (Details Narrative) - USD ($)	Jul. 28, 2023	Jun. 30, 2024	Mar. 08, 2024	Dec. 31, 2023
Insurance Provider [Member] | Promissory Note [Member]
Short-Term Debt [Line Items]
Notes payable	$ 565,172
Note payable terms	9.50%
Description of the frequency of periodic payments	Monthly payments were due on the first of each month beginning August 1, 2023 through June 1, 2024.
Balance of note		$ 0		$ 314,344
Domestic Bank Lender [Member] | Revolving Credit Facility [Member]
Short-Term Debt [Line Items]
Revolving credit facility			$ 5,000,000
Domestic Bank Lender [Member] | Term Loan Facility [Member]
Short-Term Debt [Line Items]
Term loan facility			$ 5,000,000

The components of lease expense

The components of lease expense were as follows: (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Leases [Abstract]
Operating lease cost	$ 112,806	$ 112,279	$ 224,354	$ 224,801
Short-term lease cost	556	25,143	4,016	78,037
Total lease cost	113,362	137,422	228,370	302,838
Finance lease cost:
Amortization of right-of-use assets	28,896	27,224	57,793	54,447
Interest on lease liabilities	5,671	6,387	11,724	13,107
Total finance lease cost	$ 34,567	$ 33,611	$ 69,517	$ 67,554

Supplemental cash flow informat

Supplemental cash flow information related to leases was as follows: (Details) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 244,879	$ 229,879
Financing cash flows from finance leases	$ 65,718	$ 61,600

Supplemental balance sheet info

Supplemental balance sheet information related to leases was as follows: (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Operating Leases
Operating lease right-of-use assets	$ 3,414,831	$ 3,514,055
Operating lease current liabilities	391,699	368,313
Operating lease long term liabilities	3,202,697	3,336,300
Total operating lease liabilities	3,594,396	3,704,613
Finance Leases
Property and equipment, at cost	577,929	577,929
Accumulated depreciation	(219,254)	(161,461)
Property and equipment, net	358,675	416,468
Finance lease current liabilities	112,689	109,540
Finance lease long term liabilities	259,479	316,623
Total finance lease liabilities	$ 372,168	$ 426,163
Operating leases term	5 years 6 months 21 days	6 years 10 months 17 days
Finance leases term	3 years 2 months 19 days	3 years 8 months 19 days
Operating leases discount rate	6.60%	5.76%
Finance leases discount rate	6.25%	6.19%

Maturities of lease liabilities

Maturities of lease liabilities are as follows: (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Leases [Abstract]
2024 - Operating Leases	$ 266,990
2024 - Finance Leases	65,718
2025 - Operating Leases	533,979
2025 - Finance Leases	131,437
2026 - Operating Leases	533,979
2026 - Finance Leases	131,437
2027 - Operating Leases	533,979
2027 - Finance Leases	74,194
2028 - Operating Leases	520,985
2028 - Finance Leases	6,180
Thereafter - Operating Leases	1,833,603
Thereafter - Finance Leases
Total undiscounted lease payments - Operating Leases	4,223,515
Total undiscounted lease payments - Finance Leases	408,966
Less: imputed interest - Operating Leases	(629,119)
Less: imputed interest - Finance Leases	(36,799)
Total lease liabilities - Operating Leases	3,594,396	$ 3,704,613
Total lease liabilities - Finance Leases	$ 372,168	$ 426,163

LEASES (Details Narrative)

LEASES (Details Narrative)	6 Months Ended
	Jun. 30, 2024
Lease One [Member]
Lessee, Lease, Description [Line Items]
Operating lease remaining term	8 years 2 months 1 day
Finance lease remaining term	2 years 11 months 1 day
Lease Two [Member]
Lessee, Lease, Description [Line Items]
Operating lease remaining term	4 years 6 months 29 days
Finance lease remaining term	3 years 2 months 30 days
Lease Three [Member]
Lessee, Lease, Description [Line Items]
Operating lease remaining term	3 years 11 months 1 day
Finance lease remaining term	4 years 2 months 30 days

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Income tax benefit	$ 0	$ 599,995	$ 0	$ 1,177,395
Valuation Allowance	$ 6,581,206		$ 6,581,206		$ 6,002,777
Statutory rate			21%

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative)	Aug. 01, 2024 USD ($)
Subsequent Event [Member] | Security Agreement [Member]
Subsequent Event [Line Items]
Debt Instrument, Issued, Principal	$ 487,516