KORU Medical Systems (KRMD) 10-Q 13 Nov 24 2024 Q3 Quarterly report Financial data

Cover

Cover - $ / shares	9 Months Ended
	Sep. 30, 2024	Nov. 13, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2024
Document Fiscal Period Focus	Q3
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		45,837,304
Entity Listing, Par Value Per Share	$ 0.01
Treasury Stock, Common, Shares		3,438,526

BALANCE SHEETS (UNAUDITED)

BALANCE SHEETS (UNAUDITED) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
CURRENT ASSETS
Cash and cash equivalents	$ 8,806,310	$ 11,482,240
Accounts receivable less allowance for credit losses of $0 as of September 30, 2024 and $24,777 as of December 31, 2023	5,164,700	4,045,211
Inventory	3,928,318	3,481,301
Other receivables	74,312	28,889
Prepaid expenses	955,213	1,218,288
TOTAL CURRENT ASSETS	18,928,853	20,255,929
Property and equipment, net	4,552,176	3,837,657
Intangible assets, net of accumulated amortization of $441,186 and $390,341 as of September 30, 2024 and December 31, 2023, respectively	746,302	754,361
Operating lease right-of-use assets	3,063,731	3,514,055
Other assets	98,970	98,970
TOTAL ASSETS	27,390,032	28,460,972
CURRENT LIABILITIES
Accounts payable	1,670,300	975,193
Accrued expenses	2,792,967	1,711,427
Note payable	401,993	314,344
Other liabilities	181,745	512,520
Accrued payroll and related taxes	766,867	462,941
Financing lease liability – current	114,297	109,540
Operating lease liability – current	395,954	368,313
TOTAL CURRENT LIABILITIES	6,324,123	4,454,278
Financing lease liability, net of current portion	230,332	316,623
Operating lease liability, net of current portion	3,102,097	3,336,300
TOTAL LIABILITIES	9,656,552	8,107,201
STOCKHOLDERS’ EQUITY
Common stock, $0.01 par value, 75,000,000 shares authorized, 49,275,830 and 49,059,583 shares issued 45,837,304 and 45,639,081 shares outstanding as of September 30, 2024, and December 31, 2023, respectively	492,758	490,899
Additional paid-in capital	48,940,978	47,018,707
Treasury stock, 3,438,526 and 3,420,502 shares as of September 30, 2024 and December 31, 2023, respectively, at cost	(3,882,493)	(3,843,562)
Accumulated deficit	(27,817,763)	(23,312,273)
TOTAL STOCKHOLDERS’ EQUITY	17,733,480	20,353,771
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 27,390,032	$ 28,460,972

BALANCE SHEETS (UNAUDITED) (Par

BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Accounts receivable, allowance for credit loss, current	$ 0	$ 24,777
Finite-lived intangible assets, accumulated amortization	$ 441,186	$ 390,341
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	49,275,830	49,059,583
Common Stock, Shares, Outstanding	45,837,304	45,639,081
Treasury stock, shares	3,438,526	3,420,502

STATEMENTS OF OPERATIONS (UNAUD

STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Statement [Abstract]
NET REVENUES	$ 8,179,977	$ 7,003,198	$ 24,807,864	$ 21,331,734
Cost of goods sold	2,993,986	2,661,021	9,038,825	8,954,398
Gross Profit	5,185,991	4,342,177	15,769,038	12,377,336
OPERATING EXPENSES
Selling, general and administrative	5,127,658	4,623,928	15,804,966	15,352,972
Research and development	1,533,845	1,293,256	4,143,751	4,454,739
Depreciation and amortization	227,785	216,014	677,019	642,050
Total Operating Expenses	6,889,288	6,133,198	20,625,736	20,449,761
Net Operating Loss	(1,703,297)	(1,791,021)	(4,856,698)	(8,072,425)
Non-Operating Income/(Expense)
Gain/(Loss) on currency exchange	9,485	(9,390)	(12,674)	(12,542)
Loss on disposal of fixed assets, net		(3,527)	(300)	(59,806)
Interest income, net	112,995	135,429	364,183	392,098
TOTAL OTHER INCOME	122,480	122,512	351,208	319,750
LOSS BEFORE INCOME TAXES	(1,580,817)	(1,668,509)	(4,505,490)	(7,752,675)
Income Tax Benefit		300,247		1,477,642
NET LOSS	$ (1,580,817)	$ (1,368,262)	$ (4,505,490)	$ (6,275,033)
NET LOSS PER SHARE
Earnings Per Share, Basic	$ (0.03)	$ (0.03)	$ (0.10)	$ (0.14)
Earnings Per Share, Diluted	$ (0.03)	$ (0.03)	$ (0.10)	$ (0.14)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
Weighted Average Number of Shares Outstanding, Basic	45,851,019	45,639,081	45,791,756	45,578,314
Weighted Average Number of Shares Outstanding, Diluted	45,851,019	45,639,081	45,791,756	45,578,314

STATEMENTS OF CASH FLOWS (UNAUD

STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$ (4,505,490)	$ (6,275,033)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense and warrant expense	1,924,131	2,379,613
Depreciation and amortization	677,019	642,050
Deferred income taxes		(1,477,643)
Loss on disposal of fixed assets	300	59,806
Non-cash lease adjustments	243,762	(16,489)
Changes in operating assets and liabilities:
Accounts receivable	(1,119,490)	(332,975)
Inventory	(447,017)	1,727,954
Prepaid expenses and other assets	217,652	87,540
Other liabilities	(330,773)	243,283
Accounts payable	695,107	(1,446,180)
Accrued payroll and related taxes	303,927	(149,872)
Accrued expenses	1,081,539	(1,431,412)
NET CASH USED IN OPERATING ACTIVITIES	(1,259,333)	(5,989,358)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(1,340,994)	(586,897)
Purchases of intangible assets	(42,786)	(19,312)
NET CASH USED IN INVESTING ACTIVITIES	(1,383,780)	(606,209)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings from insurance finance indebtedness	487,516	565,172
Payments on insurance finance indebtedness	(399,867)	(532,441)
Payments on finance lease liability	(81,534)	(73,243)
Payments for taxes related to net share settlement of equity awards	(38,932)
NET CASH USED IN FINANCING ACTIVITIES	(32,817)	(40,512)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(2,675,930)	(6,636,079)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	11,482,240	17,408,257
CASH AND CASH EQUIVALENTS, END OF PERIOD	8,806,310	10,772,178
Cash paid during the periods for:
Interest	46,014	34,773
Income taxes		$ 3,160

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 awards (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 Sep. 30, 2023	49,059,583
Ending balance, value at Sep. 30, 2023	$ 490,596	46,629,753	(15,846,244)	(3,843,562)	27,430,543
Net loss					(6,275,033)
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 awards (in shares)	50,000
Net loss			(2,495,886)		(2,495,886)
Accrued compensation paid in shares	$ 259	82,567			82,826
Issuance of stock-based compensation (in shares)	25,931
Compensation expense related to stock options		551,250			551,250
Compensation expense related to restricted stock awards		63,582			63,582
Ending balance (in shares) at Sep. 30, 2023	49,059,583
Ending balance, value at Sep. 30, 2023	$ 490,596	46,629,753	(15,846,244)	(3,843,562)	27,430,543
Net loss			(1,368,262)		(1,368,262)
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 Sep. 30, 2024	49,275,830
Ending balance, value at Sep. 30, 2024	$ 492,758	48,940,978	(27,817,763)	(3,882,493)	17,733,480
Net loss					(4,505,490)
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 awards (in shares)	55,061
Issuance of warrants		13,032			13,032
Net loss			(988,715)		(988,715)
Accrued compensation paid in shares	$ 360	97,140			97,500
Issuance of stock-based compensation (in shares)	36,042
Compensation expense related to stock options		305,376			305,376
Compensation expense related to restricted stock awards		193,839			193,839
Ending balance (in shares) at Sep. 30, 2024	49,275,830
Ending balance, value at Sep. 30, 2024	$ 492,758	48,940,978	(27,817,763)	(3,882,493)	17,733,480
Issuance of warrants		13,032			13,032
Net loss			$ (1,580,817)		$ (1,580,817)

NATURE OF OPERATIONS AND SUMMAR

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 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 September 30, 2024 the Company held cash and cash-equivalents of $ 8.8 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 (“PSUs”) 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 nine months ended September 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 September 30, 2024, the Company has recognized a contract asset of $ 74,312 The following table summarizes net revenues by geography for the three and nine months ended September 30, 2024, and 2023. Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Revenues Domestic $ 7,022,811 $ 5,929,071 $ 20,186,191 $ 17,899,463 International 1,157,166 1,074,127 4,621,672 3,432,271 Total $ 8,179,977 $ 7,003,198 $ 24,807,864 $ 21,331,734 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 September 30, 2024. RECLASSIFICATION Certain liability balances within the accompanying December 31, 2023 balance sheet have been reclassified to conform to current period presentation. There were no changes to the Company’s results of operations as a result of the reclassification.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	9 Months Ended
	Sep. 30, 2024
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 2 — PROPERTY AND EQUIPMENT Property and equipment consists of the following at: September 30, 2024 December 31, 2023 Furniture and office equipment $ 1,433,622 $ 1,412,164 Leasehold improvements 1,953,653 1,953,653 Manufacturing equipment and tooling 4,504,610 3,193,113 Total property and equipment 7,891,885 6,558,930 Less: accumulated depreciation and amortization (3,339,709 ) (2,721,273 ) Property and equipment, net $ 4,552,176 $ 3,837,657 Depreciation and amortization expense was $ 227,785 199,880 677,019 593,979

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	9 Months Ended
	Sep. 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 non-employee directors. The Company has also made inducement awards of equity-based compensation outside of the plans. The Company issued warrants to purchase common stock in connection with our loan financing agreement with our lender. 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. Restricted stock units (“RSUs”) and performance share units (“PSUs”) are equity classified and measured at the fair value of the underlying stock at the grant date. Shares of stock granted for non-employee 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 three 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 had the Non-Employee Director Compensation Plan (the “Director Plan”) prior to May 9, 2024. 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 September 30, 2024, there were 2,237,500 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 September 30, 2024, there were 419,244 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 September 30, 2024, there were 769,257 2,407,804 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 nine months ended September 30, 2024: September 30, 2024 Dividend yield 0.00 % Expected Volatility 46.18 59.97 % Expected dividends — Expected term (in years) 6.25 Risk-free rate 3.78 4.63 % The following table summarizes the status of the stock options outstanding at September 30, 2024: Shares Weighted Outstanding at January 1 3,256,250 $ 3.66 Granted 537,025 $ 1.67 Exercised — $ — Forfeited/canceled (898,750 ) $ 4.96 Outstanding at September 30 2,894,525 $ 3.03 Options exercisable at September 30 1,446,250 $ 3.37 Weighted average fair value of options granted during the period — $ 1.37 Stock-based compensation expense — $ 1,122,128 Total stock-based compensation expense for time-vested stock options was $ 1,122,128 No The following table presents information pertaining to options outstanding at September 30, 2024: Range of Exercise Price Number Weighted Weighted Number Weighted $2.08 - $3.88 2,894,525 7.40 $ 3.03 1,446,250 $ 3.37 As of September 30, 2024, there was $ 1,958,795 Performance-Vesting Stock Options The following table summarizes the activities for our unvested performance-vesting stock option awards for the nine months ended September 30, 2024: Shares Weighted Unvested at January 1 200,000 $ 1.48 Granted — $ — Vested — $ — Forfeited/canceled — $ — Unvested/outstanding at September 30 200,000 $ 1.48 Total stock-based compensation expense for performance-vesting stock options was $ 24,366 As of September 30, 2024, there was $ 151,979 Restricted Stock Awards, RSUs, and PSUs The following table summarizes the activities for our restricted stock awards, RSUs, and PSUs for the nine months ended September 30, 2024: Shares Weighted Unvested at January 1 904,496 $ 1.80 Granted 458,975 $ 2.30 Vested (81,789 ) $ 3.38 Forfeited/canceled (11,745 ) $ 2.30 Unvested at September 30 1,269,937 $ 2.74 Total stock-based compensation expense for restricted stock awards, RSUs, and PSUs was $ 399,082 As of September 30, 2024, there was $ 1,175,828 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 nine months ended September 30, 2024: Shares Weighted Unvested at January 1 — $ — Granted 76,104 $ 1.37 Vested (38,052 ) $ 1.37 Forfeited/canceled — $ — Unvested at September 30 38,052 $ 1.37 As of September 30, 2024, there was $ 26,064

DEBT OBLIGATIONS

DEBT OBLIGATIONS	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
DEBT OBLIGATIONS	NOTE 4 — DEBT OBLIGATIONS 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 On August 1, 2024, the Company renewed its commercial insurance premium finance and security agreement with its insurance provider for the insurance period covering July 1, 2024 through June 30, 2025. As of September 30, 2024, the aggregate principal amount of the note was $ 401,993 9.5

LEASES

LEASES	9 Months Ended
	Sep. 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 7.92 4.33 3.67 2.67 2.25 4.00 The components of lease expense were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Operating lease cost $ 116,772 $ 112,279 $ 341,126 $ 224,801 Short-term lease cost 556 25,143 4,572 78,037 Total lease cost $ 117,328 $ 137,422 $ 345,698 $ 302,838 Finance lease cost: Amortization of right-of-use assets $ 28,896 $ 27,224 $ 86,689 $ 54,447 Interest on lease liabilities 5,283 6,387 17,007 13,107 Total finance lease cost $ 34,179 $ 33,611 $ 103,696 $ 67,554 Supplemental cash flow information related to leases was as follows: Nine Months Ended September 30, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 373,046 $ 229,879 Financing cash flows from finance leases 98,578 61,600 Supplemental balance sheet information related to leases was as follows: September 30, December 31, Operating Leases Operating lease right-of-use assets $ 3,063,731 $ 3,514,055 Operating lease current liabilities 395,954 368,313 Operating lease long term liabilities 3,102,097 3,336,300 Total operating lease liabilities $ 3,498,051 $ 3,704,613 Finance Leases Property and equipment, at cost $ 577,929 $ 577,929 Accumulated depreciation (248,150 ) (161,461 ) Property and equipment, net $ 329,779 $ 416,468 Finance lease current liabilities 114,297 109,540 Finance lease long term liabilities 230,332 316,623 Total finance lease liabilities $ 344,629 $ 426,163 September 30, December 31, Weighted Average Remaining Lease Term Operating leases 5.31 6.88 Finance leases 2.97 3.72 Weighted Average Discount Rate Operating leases 6.56 5.76 Finance leases 6.30 6.19 Maturities of lease liabilities are as follows: Year Ending December 31, Operating Leases Finance Leases Remainder of 2024 $ 133,495 32,897 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 4,090,020 376,145 Less: imputed interest (591,969 ) (31,516 ) Total lease liabilities $ 3,498,051 $ 344,629

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 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 300,247 zero 1,477,642 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 recorded a valuation allowance of $ 6,002,777 6,895,301 Recurring items cause our effective tax rate to differ from the U.S. federal statutory rate of 21 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	9 Months Ended
	Sep. 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.

NATURE OF OPERATIONS AND SUMM_2

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 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 September 30, 2024 the Company held cash and cash-equivalents of $ 8.8 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 (“PSUs”) 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 nine months ended September 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 September 30, 2024, the Company has recognized a contract asset of $ 74,312 The following table summarizes net revenues by geography for the three and nine months ended September 30, 2024, and 2023. Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Revenues Domestic $ 7,022,811 $ 5,929,071 $ 20,186,191 $ 17,899,463 International 1,157,166 1,074,127 4,621,672 3,432,271 Total $ 8,179,977 $ 7,003,198 $ 24,807,864 $ 21,331,734
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 September 30, 2024.
RECLASSIFICATION	RECLASSIFICATION Certain liability balances within the accompanying December 31, 2023 balance sheet have been reclassified to conform to current period presentation. There were no changes to the Company’s results of operations as a result of the reclassification.

NATURE OF OPERATIONS AND SUMM_3

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
The following table summarizes net revenues by geography for the three and nine months ended September 30, 2024, and 2023.	The following table summarizes net revenues by geography for the three and nine months ended September 30, 2024, and 2023. Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Revenues Domestic $ 7,022,811 $ 5,929,071 $ 20,186,191 $ 17,899,463 International 1,157,166 1,074,127 4,621,672 3,432,271 Total $ 8,179,977 $ 7,003,198 $ 24,807,864 $ 21,331,734

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	9 Months Ended
	Sep. 30, 2024
Property, Plant and Equipment [Abstract]
Property and equipment consists of the following at:	Property and equipment consists of the following at: September 30, 2024 December 31, 2023 Furniture and office equipment $ 1,433,622 $ 1,412,164 Leasehold improvements 1,953,653 1,953,653 Manufacturing equipment and tooling 4,504,610 3,193,113 Total property and equipment 7,891,885 6,558,930 Less: accumulated depreciation and amortization (3,339,709 ) (2,721,273 ) Property and equipment, net $ 4,552,176 $ 3,837,657

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 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 nine months ended September 30, 2024:	The following table summarizes the inputs into the Black-Scholes model for all time-vesting stock options granted during the nine months ended September 30, 2024: September 30, 2024 Dividend yield 0.00 % Expected Volatility 46.18 59.97 % Expected dividends — Expected term (in years) 6.25 Risk-free rate 3.78 4.63 %
The following table summarizes the status of the stock options outstanding at September 30, 2024:	The following table summarizes the status of the stock options outstanding at September 30, 2024: Shares Weighted Outstanding at January 1 3,256,250 $ 3.66 Granted 537,025 $ 1.67 Exercised — $ — Forfeited/canceled (898,750 ) $ 4.96 Outstanding at September 30 2,894,525 $ 3.03 Options exercisable at September 30 1,446,250 $ 3.37 Weighted average fair value of options granted during the period — $ 1.37 Stock-based compensation expense — $ 1,122,128
The following table presents information pertaining to options outstanding at September 30, 2024:	The following table presents information pertaining to options outstanding at September 30, 2024: Range of Exercise Price Number Weighted Weighted Number Weighted $2.08 - $3.88 2,894,525 7.40 $ 3.03 1,446,250 $ 3.37
The following table summarizes the activities for our unvested performance-vesting stock option awards for the nine months ended September 30, 2024:	The following table summarizes the activities for our unvested performance-vesting stock option awards for the nine months ended September 30, 2024: Shares Weighted Unvested at January 1 200,000 $ 1.48 Granted — $ — Vested — $ — Forfeited/canceled — $ — Unvested/outstanding at September 30 200,000 $ 1.48
The following table summarizes the activities for our restricted stock awards, RSUs, and PSUs for the nine months ended September 30, 2024:	The following table summarizes the activities for our restricted stock awards, RSUs, and PSUs for the nine months ended September 30, 2024: Shares Weighted Unvested at January 1 904,496 $ 1.80 Granted 458,975 $ 2.30 Vested (81,789 ) $ 3.38 Forfeited/canceled (11,745 ) $ 2.30 Unvested at September 30 1,269,937 $ 2.74
The following table summarizes the activities for our common stock warrants issued in connection with our loan financing agreement with our lender for the nine months ended September 30, 2024:	The following table summarizes the activities for our common stock warrants issued in connection with our loan financing agreement with our lender for the nine months ended September 30, 2024: Shares Weighted Unvested at January 1 — $ — Granted 76,104 $ 1.37 Vested (38,052 ) $ 1.37 Forfeited/canceled — $ — Unvested at September 30 38,052 $ 1.37

LEASES (Tables)

LEASES (Tables)	9 Months Ended
	Sep. 30, 2024
Leases [Abstract]
The components of lease expense were as follows:	The components of lease expense were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Operating lease cost $ 116,772 $ 112,279 $ 341,126 $ 224,801 Short-term lease cost 556 25,143 4,572 78,037 Total lease cost $ 117,328 $ 137,422 $ 345,698 $ 302,838 Finance lease cost: Amortization of right-of-use assets $ 28,896 $ 27,224 $ 86,689 $ 54,447 Interest on lease liabilities 5,283 6,387 17,007 13,107 Total finance lease cost $ 34,179 $ 33,611 $ 103,696 $ 67,554
Supplemental cash flow information related to leases was as follows:	Supplemental cash flow information related to leases was as follows: Nine Months Ended September 30, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 373,046 $ 229,879 Financing cash flows from finance leases 98,578 61,600
Supplemental balance sheet information related to leases was as follows:	Supplemental balance sheet information related to leases was as follows: September 30, December 31, Operating Leases Operating lease right-of-use assets $ 3,063,731 $ 3,514,055 Operating lease current liabilities 395,954 368,313 Operating lease long term liabilities 3,102,097 3,336,300 Total operating lease liabilities $ 3,498,051 $ 3,704,613 Finance Leases Property and equipment, at cost $ 577,929 $ 577,929 Accumulated depreciation (248,150 ) (161,461 ) Property and equipment, net $ 329,779 $ 416,468 Finance lease current liabilities 114,297 109,540 Finance lease long term liabilities 230,332 316,623 Total finance lease liabilities $ 344,629 $ 426,163 September 30, December 31, Weighted Average Remaining Lease Term Operating leases 5.31 6.88 Finance leases 2.97 3.72 Weighted Average Discount Rate Operating leases 6.56 5.76 Finance leases 6.30 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 $ 133,495 32,897 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 4,090,020 376,145 Less: imputed interest (591,969 ) (31,516 ) Total lease liabilities $ 3,498,051 $ 344,629

The following table summarizes

The following table summarizes net revenues by geography for the three and nine months ended September 30, 2024, and 2023. (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenues	$ 8,179,977	$ 7,003,198	$ 24,807,864	$ 21,331,734
UNITED STATES
Revenues	7,022,811	5,929,071	20,186,191	17,899,463
Non-US [Member]
Revenues	$ 1,157,166	$ 1,074,127	$ 4,621,672	$ 3,432,271

NATURE OF OPERATIONS AND SUMM_4

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	3 Months Ended	9 Months Ended
	Sep. 30, 2024 USD ($)	Sep. 30, 2024 USD ($) Number
Accounting Policies [Abstract]
Number of segment | Number		1
Interest Income, Securities, US Treasury		$ 8,800,000
Recognition of contract asset	$ 74,312

Property and equipment consists

Property and equipment consists of the following at: (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 7,891,885	$ 6,558,930
Less: accumulated depreciation and amortization	(3,339,709)	(2,721,273)
Property and equipment, net	4,552,176	3,837,657
Furniture and Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	1,433,622	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	$ 4,504,610	$ 3,193,113

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 227,785	$ 199,880	$ 677,019	$ 593,979

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 nine months ended September 30, 2024: (Details) - Time Vesting Stock Options [Member]	9 Months Ended
	Sep. 30, 2024 USD ($)
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Dividend yield	0%
Expected dividends	$ 0
Expected term (in years)	6 years 2 months 30 days
Minimum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected volatility	46.18%
Risk-free rate	3.78%
Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected volatility	59.97%
Risk-free rate	4.63%

The following table summarize_3

The following table summarizes the status of the stock options outstanding at September 30, 2024: (Details) - Time Vesting Stock Options [Member]	9 Months Ended
	Sep. 30, 2024 USD ($) $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number, Beginning Balance | shares	3,256,250
Outstanding at beginning, price	$ 3.66
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | shares	537,025
Outstanding at beginning, price	$ 1.67
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period | shares
Outstanding at beginning, price
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Forfeitures in Period | shares	898,750
Outstanding at beginning, price	$ 4.96
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number, Ending Balance | shares	2,894,525
Outstanding at beginning, price	$ 3.03
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number | shares	1,446,250
Outstanding at beginning, price	$ 3.37
Outstanding at beginning, price	$ 1.37
Outstanding at beginning, price | $	$ 1,122,128

The following table presents in

The following table presents information pertaining to options outstanding at September 30, 2024: (Details) - Time Vesting Stock Options [Member] - Exercise Price1 [Member]	9 Months Ended
	Sep. 30, 2024 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number outstanding | shares	2,894,525
Weighted average remaining contractual life	7 years 4 months 24 days
Weighted average exercise price | $ / shares	$ 3.03
Number exercisable | shares	1,446,250
Weighted average exercise price | $ / shares	$ 3.37

The following table summarize_4

The following table summarizes the activities for our unvested performance-vesting stock option awards for the nine months ended September 30, 2024: (Details) - Performance Vesting Stock Options [Member]	9 Months Ended
	Sep. 30, 2024 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unvested at beginning, shares | shares	200,000
Unvested at beginning, price | $ / shares	$ 1.48
Granted, shares | shares	0
Granted, price | $ / shares	$ 0
Vested, shares | shares	0
Vested, price | $ / shares	$ 0
Forfeited/canceled, shares | shares	0
Forfeited/canceled, price | $ / shares	$ 0
Unvested at ending, shares | shares	200,000
Unvested at ending, price | $ / shares	$ 1.48

The following table summarize_5

The following table summarizes the activities for our restricted stock awards, RSUs, and PSUs for the nine months ended September 30, 2024: (Details) - Restricted Stock Awards [Member]	9 Months Ended
	Sep. 30, 2024 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Outstanding at beginning, shares | shares	904,496
Outstanding at beginning, price | $ / shares	$ 1.80
Granted, shares | shares	458,975
Granted, price | $ / shares	$ 2.30
Vested, shares | shares	(81,789)
Vested, price | $ / shares	$ 3.38
Forfeited/canceled, shares | shares	(11,745)
Forfeited/canceled, price | $ / shares	$ 2.30
Outstanding at ending, shares | shares	1,269,937
Outstanding at ending, price | $ / shares	$ 2.74

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 nine months ended September 30, 2024: (Details) - Common Stock Warrants [Member]	9 Months Ended
	Sep. 30, 2024 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Outstanding at beginning, shares | shares
Outstanding at beginning, price | $ / shares
Granted, shares | shares	76,104
Granted, price | $ / shares	$ 1.37
Vested, shares | shares	(38,052)
Vested, price | $ / shares	$ 1.37
Forfeited/canceled, shares | shares
Forfeited/canceled, price | $ / shares
Outstanding at ending, shares | shares	38,052
Outstanding at ending, price | $ / shares	$ 1.37

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Time Vesting Stock Options [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation expense	$ 1,122,128	$ 0
Total unrecognized compensation cost	1,958,795
Performance Vesting Stock Options [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total stock-based compensation expense	24,366
Unrecognized compensation cost	151,979
Restricted Stock Awards [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total stock-based compensation expense	399,082
Unrecognized compensation cost	1,175,828
Common Stock Warrants [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation cost	$ 26,064
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	2,237,500
Omnibus Equity Incentive Plan 2021 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares reserved for outstanding awards	419,244
Omnibus Equity Incentive Plan 2024 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares reserved for outstanding awards	769,257
Shares available for issuance	2,407,804

DEBT OBLIGATIONS (Details Narra

DEBT OBLIGATIONS (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2024	Mar. 08, 2024
Security Agreement [Member]
Line of Credit Facility [Line Items]
Aggregate principal amount of note	$ 401,993
Debt Instrument, Interest Rate, Stated Percentage	950%
Domestic Bank Lender [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Revolving credit facility		$ 5,000,000
Domestic Bank Lender [Member] | Term Loan Facility [Member]
Line of Credit Facility [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		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Leases [Abstract]
Operating lease cost	$ 116,772	$ 112,279	$ 341,126	$ 224,801
Short-term lease cost	556	25,143	4,572	78,037
Total lease cost	117,328	137,422	345,698	302,838
Finance lease cost:
Amortization of right-of-use assets	28,896	27,224	86,689	54,447
Interest on lease liabilities	5,283	6,387	17,007	13,107
Total finance lease cost	$ 34,179	$ 33,611	$ 103,696	$ 67,554

Supplemental cash flow informat

Supplemental cash flow information related to leases was as follows: (Details) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 373,046	$ 229,879
Financing cash flows from finance leases	$ 98,578	$ 61,600

Supplemental balance sheet info

Supplemental balance sheet information related to leases was as follows: (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Operating Leases
Operating lease right-of-use assets	$ 3,063,731	$ 3,514,055
Operating lease current liabilities	395,954	368,313
Operating lease long term liabilities	3,102,097	3,336,300
Total operating lease liabilities	3,498,051	3,704,613
Finance Leases
Property and equipment, at cost	577,929	577,929
Accumulated depreciation	(248,150)	(161,461)
Property and equipment, net	329,779	416,468
Finance lease current liabilities	114,297	109,540
Finance lease long term liabilities	230,332	316,623
Total finance lease liabilities	$ 344,629	$ 426,163
Operating leases term	5 years 3 months 22 days	6 years 10 months 17 days
Finance leases term	2 years 11 months 19 days	3 years 8 months 19 days
Operating leases discount rate	6.56%	5.76%
Finance leases discount rate	6.30%	6.19%

Maturities of lease liabilities

Maturities of lease liabilities are as follows: (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Leases [Abstract]
2024 - Operating Leases	$ 133,495
2024 - Finance Leases	32,897
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	4,090,020
Total undiscounted lease payments - Finance Leases	376,145
Less: imputed interest - Operating Leases	(591,969)
Less: imputed interest - Finance Leases	(31,516)
Total lease liabilities - Operating Leases	3,498,051	$ 3,704,613
Total lease liabilities - Finance Leases	$ 344,629	$ 426,163

LEASES (Details Narrative)

LEASES (Details Narrative)	9 Months Ended
	Sep. 30, 2024
Lease One [Member]
Lessee, Lease, Description [Line Items]
Operating lease remaining term	7 years 11 months 1 day
Finance lease remaining term	2 years 8 months 2 days
Lease Two [Member]
Lessee, Lease, Description [Line Items]
Operating lease remaining term	4 years 3 months 29 days
Finance lease remaining term	2 years 2 months 30 days
Lease Three [Member]
Lessee, Lease, Description [Line Items]
Operating lease remaining term	3 years 8 months 2 days
Finance lease remaining term	4 years

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Income tax benefit	$ 0	$ 300,247	$ 0	$ 1,477,642
Valuation Allowance	$ 6,895,301		$ 6,895,301		$ 6,002,777
Statutory rate			21%