NextTrip (NTRP) 10-Q 14 May 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	May 13, 2020
Document And Entity Information
Entity Registrant Name	SIGMA LABS, INC.
Entity Central Index Key	0000788611
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		3,086,151
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2020

Condensed Balance Sheets (Unaud

Condensed Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Current Assets:
Cash	$ 631,018	$ 86,919
Accounts Receivable, net	119,425	55,540
Inventory	505,803	598,718
Prepaid Assets	136,721	199,727
Total Current Assets	1,392,967	940,904
Other Assets:
Property and Equipment, net	128,527	128,723
Intangible Assets, net	602,054	569,341
Investment in Joint Venture	500	500
Long-Term Prepaid Asset	52,000	52,000
Total Other Assets	783,081	750,564
TOTAL ASSETS	2,176,048	1,691,468
Current Liabilities:
Accounts Payable	484,114	727,114
Notes Payable		50,000
Deferred Revenue	94,118	139,447
Accrued Expenses	165,040	122,658
Total Current Liabilities	743,272	1,039,219
TOTAL LIABILITIES	743,272	1,039,219
Commitments & Contingencies
Stockholders' Equity
Preferred Stock, $0.001 par; 10,000,000 shares authorized; 1,378 and 0 issued and outstanding, respectively	2
Common Stock, $0.001 par; 8,000,000 shares authorized; 1,817,834, and 1,403,759 issued and outstanding, respectively	1,818	1,404
Additional Paid-In Capital	29,425,382	26,746,439
Accumulated Deficit	(27,994,426)	(26,095,594)
Total Stockholders' Equity	1,432,776	652,249
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 2,176,048	$ 1,691,468

Condensed Balance Sheets (Una_2

Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	1,378	0
Preferred stock, shares outstanding	1,378	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	8,000,000	8,000,000
Common stock, shares issued	1,817,834	1,403,759
Common stock, shares outstanding	1,817,834	1,403,759

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Statement [Abstract]
REVENUES	$ 221,730	$ 64,450
COST OF REVENUE	244,703	96,555
GROSS PROFIT	(22,973)	(32,105)
OPERATING EXPENSES:
Salaries & Benefits	652,197	512,560
Stock-Based Compensation	154,170	254,206
Operating R&D Costs	53,689	145,272
Investor & Public Relations	238,268	157,789
Legal & Professional Service Fees	211,509	184,570
Office Expenses	147,747	166,110
Depreciation & Amortization	18,012	48,383
Other Operating Expenses	84,049	38,209
Total Operating Expenses	1,559,642	1,507,098
LOSS FROM OPERATIONS	(1,582,615)	(1,539,203)
OTHER INCOME (EXPENSE)
Interest Income	851	5,782
State Incentives		51,877
Exchange Rate Loss	1,391	(446)
Interest Expense	(431)	(2,122)
Total Other Income (Expense)	(971)	55,091
LOSS BEFORE PROVISION FOR INCOME TAXES	(1,583,585)	(1,484,112)
Provision for Income Taxes
Net Loss	(1,583,585)	(1,484,112)
Preferred Dividends	(315,247)
Net Loss Applicable to Common Stockholders	$ (1,898,832)	$ (1,484,112)
Net Loss per Common Share - Basic and Diluted	$ (1.30)	$ (1.60)
Weighted Average Number of Shares Outstanding - Basic and Diluted	1,463,627	933,476

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
OPERATING ACTIVITIES
Net Loss	$ (1,583,585)	$ (1,484,112)
Noncash Expenses:
Depreciation and Amortization	18,012	48,383
Stock Based Compensation	154,170	254,206
Securities Issued for Third Party Services	39,618
Change in assets and liabilities:
Accounts Receivable	(63,885)	(33,150)
Interest Receivable		(1,561)
Inventory	92,915	(56,785)
Prepaid Assets	63,006	(25,187)
Accounts Payable	(243,000)	288,395
Deferred Revenue	(45,330)	29,825
Accrued Expenses	42,383	(86,783)
NET CASH USED IN OPERATING ACTIVITIES	(1,525,696)	(1,066,769)
INVESTING ACTIVITIES
Purchase of Property and Equipment	(11,474)	(1,269)
Purchase of Intangible Assets	(39,055)	(74,560)
Payment Received from Notes Receivable		15,000
NET CASH USED IN INVESTING ACTIVITIES	(50,529)	(60,829)
FINANCING ACTIVITIES
Gross Proceeds from Public and Private Issuances of Securities	2,100,000	1,961,220
Less Offering Costs	(428,876)	(281,890)
Payment of Note Payable	(50,000)
Proceeds from exercise of Warrants	499,200	75,848
NET CASH PROVIDED BY FINANCING ACTIVITIES	2,120,324	1,755,178
NET CHANGE IN CASH FOR PERIOD	544,099	627,580
CASH AT BEGINNING OF PERIOD	86,919	1,279,782
CASH AT END OF PERIOD	631,018	1,907,362
Noncash investing and financing activities disclosure:
Common Stock Issued for Cashless Exchange of UPOs		88,431
Paid-in-Kind Dividend and Common Stock Issued for Preferred Dividends	315,247
Disclosure of cash paid for:
Interest	1,458	1,028
Income Taxes

Statement of Stockholders' Equi

Statement of Stockholders' Equity (Unaudited) - USD ($)	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2018		$ 878	$ 21,509,306	$ (19,774,745)	$ 1,735,439
Balance, shares at Dec. 31, 2018		877,663
Net loss				(1,484,112)	(1,484,112)
Shares Sold in Public Offering		$ 140	1,679,190		1,679,330
Shares Sold in Public Offering, shares		140,080
Shares issued from Exercise of Warrants		$ 7	75,841		75,848
Shares issued from Exercise of Warrants, shares		7,023
Shares issued for cashless exchange of UPO's		$ 9	(9)
Shares issued for cashless exchange of UPO's, shares		8,843
Shares Issued for Services		$ 20	302,980		303,000
Shares Issued for Services, shares		20,150
Stock Option Awarded to Employees			176,206		176,206
Balance at Mar. 31, 2019		$ 1,054	23,743,514	(21,258,857)	2,485,712
Balance, shares at Mar. 31, 2019		1,053,759
Balance at Dec. 31, 2019		$ 1,404	26,746,439	(26,095,594)	652,249
Balance, shares at Dec. 31, 2019		1,403,759
Net loss				(1,583,585)	(1,583,585)
Stock Option Awarded to Employees			154,170		154,170
Preferred Shares Sold in Private Offering	$ 3		2,099,997		2,100,000
Preferred Shares Sold in Private Offering, shares	1,973
Preferred Stock Dividends		$ 87	315,160	(315,247)
Preferred Stock Dividends, shares		86,801
Common Shares Issued for Conversion of Preferred Shares	$ (2)	$ 321	(319)
Common Shares Issued for Conversion of Preferred Shares, Shares	(1,107)	321,517
Preferred Shares issued for Exercise of Preferred Warrants	$ 1		499,199		499,200
Preferred Shares issued for Exercise of Preferred Warrants, shares	512
Securities Issued for Third Party Services		$ 3	39,615		39,618
Securities Issued for Third Party Services, shares		2,500
Offering Costs			(428,876)		(428,876)
Issuance of Fractional Shares from Reverse Split		$ 3	(3)
Issuance of Fractional Shares from Reverse Split, shares		3,257
Balance at Mar. 31, 2020	$ 2	$ 1,818	$ 29,425,382	$ (27,994,426)	$ 1,432,776
Balance, shares at Mar. 31, 2020	1,378	1,817,834

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	NOTE 1 - Summary of Significant Accounting Policies Nature of Business Basis of Presentation Reclassification Loss Per Share Three Months Ended March 31, 2020 2019 Warrants 1,244,712 340,061 Preferred Stock Warrants 2,996,713 - Stock Options 159,637 103,623 Preferred Stock 624,412 - Convertible Note Payable - 2,500 Total Underlying Common Shares 5,025,474 446,184 The following data shows the amounts used in computing loss per share and the effect on income and the weighted average number of shares of dilutive potential common stock for the periods ended March 31, 2020 and 2019: Three Months Ended March 31 2020 2019 Net Loss per Common Share - Basic and Diluted $ (1.30 ) $ (1.60 ) Loss from continuing Operations available to Common stockholders (numerator) $ (1,898,832 ) $ (1,484,112 ) Weighted average number of common shares Outstanding used in loss per share during the Period (denominator) 1,463,627 933,476 Recently Enacted Accounting Standards Accounting Estimates

Inventory

Inventory	3 Months Ended
	Mar. 31, 2020
Inventory Disclosure [Abstract]
Inventory	NOTE 2 – Inventory At March 31, 2020 and December 31, 2019, the Company’s inventory was comprised of: March 31, 2020 December 31, 2019 Raw Materials $ 155,939 $ 173,102 Work in Process 16,741 92,493 Finished Goods 333,123 333,123 Total Inventory $ 505,803 $ 598,718

Notes Payable

Notes Payable	3 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
Notes Payable	NOTE 3 - Notes Payable On January 31, 2020, the Company paid off its Secured Convertible Promissory Note in full in the amount of $56,458, including accrued interest of $1,458 and a late fee penalty of $5,000.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2020
Equity [Abstract]
Stockholders' Equity	NOTE 4 - Stockholders’ Equity Common Stock Effective February 27, 2020, our Articles of Incorporation were amended to provide for a reverse stock split of the outstanding shares of our common stock on a 1-for-10 basis (the “Reverse Stock Split”), and a corresponding decrease in the number of shares of our common stock that we are authorized to issue (the “Share Decrease”). The effects of the stock split have been retroactively reflected to all periods presented. On March 27, 2020, at a special shareholders’ meeting, our authorized shares of common stock were increased from 2,250,000 to 8,000,000. In the first quarter of 2020, the Company issued 321,517 shares of common stock in exchange for the conversion of 1,107 shares of Series D Convertible Preferred stock, and 86,801 shares of common stock as in-kind payment of preferred stock dividends. In February 2020, the Company issued 2,500 shares of common stock valued at $8.70 per share to MHZCI, LLC, an investor relations firm engaged by the Company, as partial compensation for services to be rendered. In January 2019, the Company issued 20,000 shares of common stock to directors valued at $15.00 per share, or $300,000, with such shares vesting ratably over four quarterly installments, subject in each case to such director’s continuing service as a director. Also in January 2019, the Company issued 8,843 shares of common stock upon the cashless exercise of Unit Purchase Options issued in our June 2018 public offering. In January and February 2019, the Company issued a total of 7,023 shares of common stock upon the exercise of 7,023 warrants having an exercise price of $10.80 resulting in gross cash proceeds of $75,848. In March 2019, the Company issued 150 shares of common stock valued at $20.00 per share to the Company’s Vice President of Business Development in connection with his achievement of performance milestones, with such shares vesting immediately. Also in March 2019, the Company closed a public offering of equity securities in which it issued 140,080 shares of common stock and warrants to purchase a total of 42,024 shares of common stock resulting in net proceeds of approximately $1,679,230, after deducting placement agent commissions and other offering expenses payable by the Company. Preferred Stock The Company is authorized to issue 10,000,000 shares of preferred stock, $0.001 par value. 1,378 and 0 shares of preferred stock were issued and outstanding at March 31, 2020 and 2019, respectively. In January 2020, the Company entered into a Securities Purchase Agreement (the “SPA”) with certain institutional investors (the “Institutional Private Placement”). Pursuant to the SPA, the Company issued and sold 1,640 shares of the Company’s newly created Series D Convertible Preferred Stock (the “Series D Preferred Stock”). Under the Certificate of Designations for the Series D Preferred Stock, the Series D Preferred Stock has an initial stated value of $1,000 per share (the “Stated Value”). Dividends accrue at a dividend rate of 9% per annum (subject to increase upon the occurrence (and during the continuance) of certain triggering events described therein) and, on a monthly basis, shall be payable in kind by the increase of the Stated Value of the Series D Preferred Shares by said amount. The holders of the Series D Preferred Shares will have the right at any time to convert all or a portion of the Series D Preferred Shares (including, without limitation, accrued and unpaid dividends and make-whole dividends through the third anniversary of the closing date) into shares of the Company’s Common Stock at the conversion price then in effect, which initially is $10.00 (subject to adjustment for stock splits, dividends, recapitalizations and similar events and full ratchet price protection). In addition, a holder may at any time, alternatively, convert all, or any part, of its Series D Preferred Shares at an alternative conversion price, which equals the lower of the applicable conversion price then in effect, and the greater of (x) $1.80 and (y) 85% of the average volume weighted average price (“VWAP”) of the Common Stock for a five (5) trading day period prior to such conversion. Upon the occurrence of certain triggering events, described in the Certificate of Designations, including, but not limited to payment defaults, breaches of transaction documents, failure to maintain listing on the Nasdaq Capital Market, and other defaults set forth therein, the Series D Preferred Shares would become subject to redemption, at the option of a holder, at a 125% premium to the underlying value of the Series D Preferred Shares being redeemed. At March 31, 2020 there were 1,045 shares of Series D Convertible Preferred stock outstanding, which if converted at the Alternate Conversion Price of $2.36 as of March 31, 2020, including the make-whole dividends, would have resulted in the issuance of 562,762 shares of common stock. Concurrent with the Institutional Private Placement, the Company entered into a Securities Purchase Agreement (the “SPA”) with certain of its directors and the Company’s largest shareholder (the “Other Private Placement”). Pursuant to the SPA, the Company issued and sold 333 shares of the Company’s newly created Series E Convertible Preferred Stock (the “Series E Preferred Stock”). Dividends accrue at a dividend rate of 9% per annum and, on a monthly basis, shall be payable in kind by the increase of the Stated Value of the Series E Preferred Shares by said amount. The Series E Preferred Stock is initially convertible into 48,544 shares of Common Stock, At March 31, 2020, all of the issued Series E Convertible Preferred Stock was outstanding, which if converted as of March 31, 2020, including the make-whole dividends, would have resulted in the issuance of 61,651 shares of common stock. Stock Options In July 2019, at the Annual Meeting of Stockholders of the Company, the Company’s stockholders approved an amendment to the 2013 Plan to increase the number of shares of the Company’s common stock reserved for issuance under the 2013 Plan by 750,000 shares of our common stock to a total of 2,400,000 shares. In August 2019, the Company terminated its 2011 Equity Incentive Plan. As of March 31, 2020, an aggregate of 29,486 shares of common stock were reserved for issuance under the 2013 Plan. During the three months ended March 31, 2020, the Company granted an option to purchase 8,100 shares of common stock to Iron Dome Ventures, LLC as partial compensation for investor relations services to be rendered. The option vests equally over nine months beginning February 2020. During the three months ended March 31, 2019, the Company granted options to purchase a total of 20,996 shares of common stock to 18 employees with vesting periods ranging from immediately upon issuance to 4 years beginning January 2019. The Company generally grants stock options to employees and directors at exercise prices equal to the fair market value of the Company’s stock on the dates of grant. Stock options are typically granted throughout the year and generally vest over four years of service and expire five years from the date of the award, unless otherwise specified. The Company recognizes compensation expense for the fair value of the stock options over the requisite service period for each stock option award. Total share-based compensation expense included in the statements of operations for the three months ended March 31, 2020 and 2019 is $154,170 and $254,206, of which $154,170 and $176,206 is related to stock options, respectively. The fair value of share-based awards was estimated using the Black-Scholes model with the following weighted-average assumptions for the three months ended March 31, 2020 and 2019: Assumptions: 2020 2019 Dividend yield 0.00 0.00 Risk-free interest rate 1.41 % 2.19-2.54 % Expected volatility 111.05 % 105.2-106.1 % Expected life (in years) 5 5-10 Option activity for the three months ended March 31, 2020 and the year ended December 31, 2019 was as follows: Options Weighted Average Exercise Price ($) Weighted Average Remaining Contractual Life (Yrs.) Aggregate Intrinsic Value ($) Options outstanding at December 31, 2018 82,627 24.90 6.47 60,090 Granted 100,335 12.50 4.79 - Exercised - - - - Forfeited or cancelled (2,050 ) 16.80 - - Options outstanding at December 31, 2019 180,912 18.11 5.09 25,988 Granted 8,100 6.30 4.89 - Exercised - - - - Forfeited or cancelled (29,375 ) 28.01 - - Options outstanding March 31, 2020 159,637 15.69 4.42 - Options expected to vest in the future as of March 31, 2020 80,899 13.53 4.64 - Options exercisable at March 31, 2020 78,738 17.91 4.19 - Options vested, exercisable, and options expected to vest at March 31, 2020 159,637 15.69 4.42 - The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of our common stock for those awards that have an exercise price currently below the $2.76 closing price of our Common Stock on March 31, 2020. All of the 2020 option grants have an exercise price currently below $2.76. At March 31, 2020, there was $659,679 of unrecognized share-based compensation expense related to unvested share options with a weighted average remaining recognition period of 4.64 years. Warrants Warrant activity for the three months ended March 31, 2020 and 2019 was as follows: Warrants Weighted Average Exercise Price ($) Weighted Average Remaining Contractual Life (Yrs.) Warrants outstanding at December 31, 2018 305,060 27.50 3.86 Granted 42,024 16.10 4.96 Exercised (7,023 ) 10.80 - Forfeited or cancelled - - - Warrants outstanding at March 31, 2019 340,061 26.40 3.76 Warrants outstanding at December 31, 2019 363,727 25.60 3.12 Granted 880,985 10.14 5.33 Exercised - - - Forfeited or cancelled - - - Warrants outstanding at March 31, 2020 1,244,712 14.67 4.61 In connection with its January 2020 private placement, the Company issued 6,156 warrants to purchase its Series D Preferred Stock (the Preferred Warrants”). The Preferred Warrants have an exercise price of $975 per warrant and expire on February 15, 2021. Pursuant to the terms of the Securities Purchase Agreement, the Company forced the exercise of 512 warrants on March 27, 2020. As of March 31, 2020, there were 5,644 Preferred Warrants outstanding, which if exercised would result in the issuance of 5,644 shares of Series D Convertible Preferred Stock. The Series D Convertible Preferred stock, including make-whole dividends, was convertible into 2,996,713 shares of common stock on March 31, 2020.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2020
Subsequent Events [Abstract]
Subsequent Events	NOTE 5 - Subsequent Events On April 6, 2020, the Company closed a public offering of equity securities in which it issued 493,027 shares of common stock and pre-funded warrants to purchase up to 22,438 shares of the Company’s common stock. The Company also issued Series A Warrants to purchase an aggregate of 515,465 shares of the Company’s common stock pursuant to a private placement. In connection with this offering, the Company issued Dawson James Securities, Inc., its Placement Agent, a warrant to purchase an aggregate of 41,237 shares of the Company’s Common Stock (which amount is based on the number of Common Shares and shares underlying the Pre-Funded Warrants) at an exercise price of $3.64 per share. Net proceeds to the Company after deducting offering expenses were approximately $1,230,000. On April 10, 2020, the Company granted employees an aggregate of 13,605 shares of its common stock. The shares vest on December 31, 2020, as long as the individual remains an employee of the Company on that date. On April 14, 2020, the Company was granted a loan from BOKF, NA dba Bank of Oklahoma in the aggregate amount of $361,700, pursuant to the Paycheck Protection Program (the “ ” Coronavirus Aid, Relief and Economic Security Act (the “ ” PPP loans and accrued interest are forgivable after eight weeks as long as the borrower uses the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels. The amount of loan forgiveness will be reduced if the borrower terminates employees or reduces salaries during the eight-week period. The unforgiven portion of the loan is payable over two years at an interest rate of 1%, with a deferral of payments for the first six months. During April, the Company issued 762,964 shares of Common Stock from conversions of our Series D Convertible Preferred stock On April 30, 2020, Mark K. Ruport was appointed On May 1, 2020, we entered into a consulting agreement with Mr. Rice, pursuant to which Mr. Rice was engaged to provide, among other services to be determined by the Company, advice regarding the structure of certain financial and other strategic transactions involving the Company, on an as-needed basis. Pursuant to the consulting agreement, on May 1, 2020 (the “Grant Date”), the Company granted Mr. Rice under our 2013 Equity Incentive Plan a five-year stock option to purchase up to 16,044 shares of common stock of the Company, which option has an exercise price equal to the closing price of the Company’s common stock on the Grant Date and is fully vested as of the Grant Date. Stock options that have been previously granted to Mr. Rice that are described in the Company’s filings with the Securities Exchange Commission will continue to remain outstanding in accordance with the terms of the applicable stock option agreements and will expire 90 days after the later of the date that Mr. Rice is no longer a director of the Company or the consulting agreement is terminated.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Nature of Business	Nature of Business
Basis of Presentation	Basis of Presentation
Reclassification	Reclassification
Loss Per Share	Loss Per Share Three Months Ended March 31, 2020 2019 Warrants 1,244,712 340,061 Preferred Stock Warrants 2,996,713 - Stock Options 159,637 103,623 Preferred Stock 624,412 - Convertible Note Payable - 2,500 Total Underlying Common Shares 5,025,474 446,184 The following data shows the amounts used in computing loss per share and the effect on income and the weighted average number of shares of dilutive potential common stock for the periods ended March 31, 2020 and 2019: Three Months Ended March 31 2020 2019 Net Loss per Common Share - Basic and Diluted $ (1.30 ) $ (1.60 ) Loss from continuing Operations available to Common stockholders (numerator) $ (1,898,832 ) $ (1,484,112 ) Weighted average number of common shares Outstanding used in loss per share during the Period (denominator) 1,463,627 933,476
Recently Enacted Accounting Standards	Recently Enacted Accounting Standards
Accounting Estimates	Accounting Estimates

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per	At March 31, 2020 and 2019, the Company had the following common shares underlying these instruments: Three Months Ended March 31, 2020 2019 Warrants 1,244,712 340,061 Preferred Stock Warrants 2,996,713 - Stock Options 159,637 103,623 Preferred Stock 624,412 - Convertible Note Payable - 2,500 Total Underlying Common Shares 5,025,474 446,184
Schedule of Earnings Per Share, Basic and Diluted	The following data shows the amounts used in computing loss per share and the effect on income and the weighted average number of shares of dilutive potential common stock for the periods ended March 31, 2020 and 2019: Three Months Ended March 31 2020 2019 Net Loss per Common Share - Basic and Diluted $ (1.30 ) $ (1.60 ) Loss from continuing Operations available to Common stockholders (numerator) $ (1,898,832 ) $ (1,484,112 ) Weighted average number of common shares Outstanding used in loss per share during the Period (denominator) 1,463,627 933,476

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Mar. 31, 2020
Inventory Disclosure [Abstract]
Schedule of Inventory	At March 31, 2020 and December 31, 2019, the Company’s inventory was comprised of: March 31, 2020 December 31, 2019 Raw Materials $ 155,939 $ 173,102 Work in Process 16,741 92,493 Finished Goods 333,123 333,123 Total Inventory $ 505,803 $ 598,718

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2020
Equity [Abstract]
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	The fair value of share-based awards was estimated using the Black-Scholes model with the following weighted-average assumptions for the three months ended March 31, 2020 and 2019: Assumptions: 2020 2019 Dividend yield 0.00 0.00 Risk-free interest rate 1.41 % 2.19-2.54 % Expected volatility 111.05 % 105.2-106.1 % Expected life (in years) 5 5-10
Schedule of Stock Option Activity	Option activity for the three months ended March 31, 2020 and the year ended December 31, 2019 was as follows: Options Weighted Average Exercise Price ($) Weighted Average Remaining Contractual Life (Yrs.) Aggregate Intrinsic Value ($) Options outstanding at December 31, 2018 82,627 24.90 6.47 60,090 Granted 100,335 12.50 4.79 - Exercised - - - - Forfeited or cancelled (2,050 ) 16.80 - - Options outstanding at December 31, 2019 180,912 18.11 5.09 25,988 Granted 8,100 6.30 4.89 - Exercised - - - - Forfeited or cancelled (29,375 ) 28.01 - - Options outstanding March 31, 2020 159,637 15.69 4.42 - Options expected to vest in the future as of March 31, 2020 80,899 13.53 4.64 - Options exercisable at March 31, 2020 78,738 17.91 4.19 - Options vested, exercisable, and options expected to vest at March 31, 2020 159,637 15.69 4.42 -
Summary of Warrant Activity	Warrant activity for the three months ended March 31, 2020 and 2019 was as follows: Warrants Weighted Average Exercise Price ($) Weighted Average Remaining Contractual Life (Yrs.) Warrants outstanding at December 31, 2018 305,060 27.50 3.86 Granted 42,024 16.10 4.96 Exercised (7,023 ) 10.80 - Forfeited or cancelled - - - Warrants outstanding at March 31, 2019 340,061 26.40 3.76 Warrants outstanding at December 31, 2019 363,727 25.60 3.12 Granted 880,985 10.14 5.33 Exercised - - - Forfeited or cancelled - - - Warrants outstanding at March 31, 2020 1,244,712 14.67 4.61

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per (Details) - shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Total Underlying Common Shares	5,025,474	446,184
Warrants [Member]
Total Underlying Common Shares	1,244,712	340,061
Preferred Stock Warrants [Member]
Total Underlying Common Shares	2,996,713
Stock Options [Member]
Total Underlying Common Shares	159,637	103,623
Preferred Stock [Member]
Total Underlying Common Shares	624,412
Convertible Note Payable [Member]
Total Underlying Common Shares		2,500

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Accounting Policies [Abstract]
Net Loss per Common Share - Basic and Diluted	$ (1.30)	$ (1.60)
Loss from continuing operations available to common stockholders (numerator)	$ (1,898,832)	$ (1,484,112)
Weighted average number of common shares outstanding used in loss per share during the period (denominator)	1,463,627	933,476

Inventory - Schedule of Invento

Inventory - Schedule of Inventory (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Raw Materials	$ 155,939	$ 173,102
Work in Process	16,741	92,493
Finished Goods	333,123	333,123
Total Inventory	$ 505,803	$ 598,718

Notes Payable (Details Narrativ

Notes Payable (Details Narrative) - Secured Convertible Promissory Note [Member]	1 Months Ended
	Jan. 31, 2020USD ($)
Repayments of convertible debt	$ 56,458
Accrured interest	1,458
Late fee penalty	$ 5,000

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - USD ($)	Feb. 27, 2020	Feb. 29, 2020	Jan. 31, 2020	Jul. 31, 2019	Mar. 31, 2019	Feb. 28, 2019	Jan. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Mar. 27, 2020
Reverse stock split	1-for-10 basis
Common stock, shares authorized								8,000,000		8,000,000	2,250,000
Share price per share						$ 10.80	$ 10.80
Common stock issued during period						7,023	7,023
Common stock issued during period, value						$ 75,848	$ 75,848		$ 1,679,330
Preferred stock, shares authorized					10,000,000			10,000,000	10,000,000	10,000,000
Preferred stock, par value					$ 0.001			$ 0.001	$ 0.001	$ 0.001
Preferred stock, shares issued					1,378			1,378	1,378	0
Preferred stock, shares outstanding					1,378			1,378	1,378	0
Number of shares granted								8,100	100,335	100,335
Share based compensation								$ 154,170	$ 254,206
Options exercise price								$ 2.76
Unrecognized share based compensation								$ 659,679
Weighted average remaining recognition period of unvested share options								4 years 7 months 21 days
2013 Stock Option Plan [Member]
Common stock issued during period				2,400,000
Common stock shares reserved for issaunce				750						29,486
Public Offering [Member]
Common stock issued during period					140,080
Warrants to purchase shares of common stock					42,024				42,024
Proceeds from public offering					$ 1,679,230
June 2018 Public Offering [Member]
Common stock issued during period							8,843
Securities Purchase Agreement [Member]
Warrants to purchase shares of common stock											512
Directors [Member]
Share price per share							$ 15
Common stock issued during period							20,000
Common stock issued during period, value							$ 300,000
Vice President Member]
Share price per share					$ 20				$ 20
Common stock issued during period					150
18 Employees [Member]
Number of shares granted									20,996
Vesting period									4 years
MHZCI, LLC [Member]
Number of common stock issued for services		2,500
Share price per share		$ 8.70
Iron Dome Ventures, LLC [Member]
Number of shares granted								8,100
Series D Convertible Preferred Stock [Member]
Common shares issued for conversion of preferred shares								1,107
Warrants to purchase shares of common stock								5,644
Preferred stock, shares outstanding								1,045
Preferred stock dividend price per shares								$ 2.36
Series D Convertible Preferred Stock [Member] | Securities Purchase Agreement [Member]
Share issued and sold during period, shares			1,640
Preferred stock dividend rate			9.00%
Preferred stock conversion price per shares			$ 10
Preferred stock, description			In addition, a holder may at any time, alternatively, convert all, or any part, of its Series D Preferred Shares at an alternative conversion price, which equals the lower of the applicable conversion price then in effect, and the greater of (x) $1.80 and (y) 85% of the average volume weighted average price ("VWAP") of the Common Stock for a five (5) trading day period prior to such conversion. Upon the occurrence of certain triggering events, described in the Certificate of Designations, including, but not limited to payment defaults, breaches of transaction documents, failure to maintain listing on the Nasdaq Capital Market, and other defaults set forth therein, the Series D Preferred Shares would become subject to redemption, at the option of a holder, at a 125% premium to the underlying value of the Series D Preferred Shares being redeemed.
Series D Preferred Stock [Member] | Private Placement [Member]
Warrants to purchase shares of common stock			6,156
Warrants exercise price			$ 975
Warrants expiration date			Feb. 15, 2021
Series D Preferred Stock [Member] | Securities Purchase Agreement [Member]
Preferred stock, par value			$ 1,000
Series E Convertible Preferred Stock [Member]
Common stock issued during period								61,651
Series E Convertible Preferred Stock [Member] | Securities Purchase Agreement [Member]
Common shares issued for conversion of preferred shares								48,544
Share issued and sold during period, shares								333
Preferred stock dividend rate								9.00%
Common Stock [Member]
Common shares issued for conversion of preferred shares								321,517
Preferred stock dividend, shares								86,801
Number of common stock issued for services									20,150
Common stock issued during period									140,080
Common stock issued during period, value									$ 140
Common Stock [Member] | Series D Convertible Preferred Stock [Member]
Common shares issued for conversion of preferred shares								2,996,713
Stock Options [Member]
Share based compensation								$ 154,170	$ 176,206
Preferred Warrants [Member]
Warrant outstanding								5,644

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Dividend yield	0.00%	0.00%
Risk-free interest rate	1.41%
Risk-free interest rate, minimum		2.19%
Risk-free interest rate, maximum		2.54%
Expected volatility	111.05%
Expected volatility, minimum		105.20%
Expected volatility, maximum		106.10%
Expected life (in years)	5 years
Minimum [Member]
Expected life (in years)		5 years
Maximum [Member]
Expected life (in years)		10 years

Stockholders' Equity - Schedu_2

Stockholders' Equity - Schedule of Stock Option Activity (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Equity [Abstract]
Number of Options, Outstanding, Beginning Balance	180,912	82,627	82,627
Number of Options, Granted	8,100	100,335	100,335
Number of Options, Exercised
Number of Options, Forfeited or cancelled	(29,375)		(2,050)
Number of Options, Outstanding Ending Balance	159,637		180,912
Number of Options, Expected to Vest in the Future Ending Balance	80,899
Number of Options, Exercisable	78,738
Number of Options, Vested, Exercisable and Options Expected to Vest Ending Balance	159,637
Weighted Average Exercise Price, Outstanding Beginning Balance	$ 18.11	$ 24.90	$ 24.90
Weighted Average Exercise Price, Granted	6.30		12.50
Weighted Average Exercise Price, Exercised
Weighted Average Exercise Price, Forfeited or cancelled	28.01		16.80
Weighted Average Exercise Price, Outstanding	15.69		$ 18.11
Weighted Average Exercise Price, Expected to Vest	13.53
Weighted Average Exercise Price, Exercisable	17.91
Weighted Average Exercise Price, Vested, Exercisable and Options Expected to Vest	$ 15.69
Weighted Average Remaining Contractual Life, Outstanding Beginning	5 years 1 month 2 days		6 years 5 months 20 days
Weighted Average Remaining Contractual Life, Granted	4 years 10 months 21 days		4 years 9 months 14 days
Weighted Average Remaining Contractual Life, Outstanding	4 years 5 months 1 day		5 years 1 month 2 days
Weighted Average Remaining Contractual Life, Expected to Vest	4 years 7 months 21 days
Weighted Average Remaining Contractual Life, Exercisable	4 years 2 months 8 days
Weighted Average Remaining Contractual Life, Vested, Exercisable and Options Expected to Vest	4 years 5 months 1 day
Aggregate Intrinsic Value, Outstanding	$ 25,988	$ 60,090	$ 60,090
Aggregate Intrinsic Value, Outstanding			$ 25,988
Aggregate Intrinsic Value, Options expected to vest in the future
Aggregate Intrinsic Value, Options exercisable
Aggregate Intrinsic Value, Options vested, exercisable and options expected to vest

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Warrant Activity (Details) - $ / shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Equity [Abstract]
Number of Shares, Warrants Outstanding, Beginning balance	363,727	305,060
Number of Shares, Warrants Granted	880,985	42,024
Number of Shares, Warrants Exercised		(7,023)
Number of Shares, Warrants Forfeited or Cancelled
Number of Shares, Warrants Outstanding, Ending balance	1,244,712	340,061
Weighted Average Exercise Price, Warrants outstanding, Beginning balance	$ 25.60	$ 27.50
Weighted Average Exercise Price, Warrants Granted	10.14	16.10
Weighted Average Exercise Price, Warrants Exercised		10.80
Weighted Average Exercise Price, Warrants Forfeited or cancelled
Weighted Average Exercise Price, Warrants outstanding, Ending balance	$ 14.67	$ 26.40
Weighted Average Remaining Contractual Life (Years), Warrants outstanding, Beginning balance	3 years 1 month 13 days	3 years 10 months 10 days
Weighted Average Remaining Contractual Life (Years), Warrants Grants	5 years 3 months 29 days	4 years 11 months 15 days
Weighted Average Remaining Contractual Life (Years), Warrants outstanding, Ending balance	4 years 7 months 10 days	3 years 9 months 3 days

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - USD ($)	May 01, 2020	Apr. 14, 2020	Apr. 10, 2020	Apr. 06, 2020	Apr. 30, 2020	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Number of common stock granted						8,100	100,335	100,335
Series D Convertible Preferred Stock [Member]
Warrants to purchase shares of common stock						5,644
Subsequent Event [Member] | Series D Convertible Preferred Stock [Member]
Share issued during period for conversion					762,964
Subsequent Event [Member] | Employees [Member]
Number of common stock granted			13,605
Share vesting date			Dec. 31, 2020
Subsequent Event [Member] | Mr. Rice [Member] | 2013 Equity Incentive Plan [Member]
Stock option plan. term	The Company granted Mr. Rice under our 2013 Equity Incentive Plan a five-year stock option to purchase up to 16,044 shares of common stock of the Company, which option has an exercise price equal to the closing price of the Company's common stock on the Grant Date and is fully vested as of the Grant Date. Stock options that have been previously granted to Mr. Rice that are described in the Company's filings with the Securities Exchange Commission will continue to remain outstanding in accordance with the terms of the applicable stock option agreements and will expire 90 days after the later of the date that Mr. Rice is no longer a director of the Company or the consulting agreement is terminated.
Stock option plan, period	5 years
Subsequent Event [Member] | Mr. Rice [Member] | 2013 Equity Incentive Plan [Member] | Maximum [Member]
Options granted to purchase common stock	16,044
Subsequent Event [Member] | Dawson James Securities, Inc [Member] | Placement Agent [Member]
Warrants to purchase shares of common stock				41,237
Subsequent Event [Member] | Bank of Oklahoma [Member] | Paycheck Protection Program [Member]
Debt instrument principal amount		$ 361,700
Debt instrument term		2 years
Debt interest rate		1.00%
Subsequent Event [Member] | Pre-funded Warrants [Member]
Warrants to purchase shares of common stock				22,438
Warrants exercise price				$ 3.64
Subsequent Event [Member] | Series A Warrants [Member]
Warrants to purchase shares of common stock				515,465
Subsequent Event [Member] | Public Offering [Member]
Share issued and sold during period, shares				493,027
Net proceeds for offering expenses				$ 1,230,000