Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 11, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-38015 | |
Entity Registrant Name | SIGMA ADDITIVE SOLUTIONS, INC. | |
Entity Central Index Key | 0000788611 | |
Entity Tax Identification Number | 27-1865814 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 3900 Paseo del Sol | |
Entity Address, City or Town | Santa Fe | |
Entity Address, State or Province | NM | |
Entity Address, Postal Zip Code | 87507 | |
City Area Code | (505) | |
Local Phone Number | 438-2576 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | SASI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 10,498,802 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Cash | $ 4,800,680 | $ 11,447,047 |
Accounts Receivable, net | 367,770 | 412,192 |
Inventory | 967,432 | 710,080 |
Prepaid Assets | 177,724 | 114,278 |
Total Current Assets | 6,313,606 | 12,683,597 |
Other Assets: | ||
Property and Equipment, net | 244,838 | 232,282 |
Intangible Assets, net | 1,084,205 | 925,111 |
Total Other Assets | 1,329,043 | 1,157,393 |
TOTAL ASSETS | 7,642,649 | 13,840,990 |
Current Liabilities: | ||
Accounts Payable | 403,547 | 206,442 |
Deferred Revenue | 129,689 | 148,855 |
Accrued Expenses | 287,645 | 625,942 |
Total Current Liabilities | 820,881 | 981,239 |
TOTAL LIABILITIES | 820,881 | 981,239 |
Stockholders’ Equity | ||
Preferred Stock, $0.001 par value; 10,000,000 shares authorized; 465 shares issued and outstanding | 1 | 1 |
Common Stock, $0.001 par value; 24,000,000 shares authorized; 10,498,802 shares issued and outstanding | 10,499 | 10,499 |
Additional Paid-In Capital | 54,193,981 | 53,442,431 |
Accumulated Deficit | (47,382,713) | (40,593,180) |
Total Stockholders’ Equity | 6,821,768 | 12,859,751 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 7,642,649 | $ 13,840,990 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
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 | 465 | 465 |
Preferred stock, shares outstanding | 465 | 465 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 24,000,000 | 24,000,000 |
Common stock, shares issued | 10,498,802 | 10,498,802 |
Common stock, shares outstanding | 10,498,802 | 10,498,802 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
REVENUES | $ 188,245 | $ 700,237 | $ 476,749 | $ 1,302,525 |
COST OF REVENUE | 79,713 | 164,766 | 312,879 | 409,493 |
GROSS PROFIT | 108,532 | 535,471 | 163,870 | 893,032 |
OPERATING EXPENSES: | ||||
Salaries & Benefits | 1,227,805 | 1,222,760 | 3,704,633 | 3,055,279 |
Stock-Based Compensation | 275,418 | 659,512 | 613,833 | 893,431 |
Operations and R&D Costs | 152,245 | 131,772 | 442,548 | 608,812 |
Investor, Public Relations and Marketing | 46,832 | 119,622 | 293,458 | 342,725 |
Organization Costs | 140,522 | 342,112 | 260,088 | 578,256 |
Legal & Professional Service Fees | 252,886 | 261,075 | 608,830 | 681,941 |
Office Expenses | 183,608 | 172,238 | 692,640 | 472,335 |
Depreciation & Amortization | 26,857 | 27,689 | 88,302 | 76,502 |
Other Operating Expenses | 86,783 | 90,108 | 263,747 | 267,663 |
Total Operating Expenses | 2,392,956 | 3,026,888 | 6,968,079 | 6,976,944 |
LOSS FROM OPERATIONS | (2,284,424) | (2,491,417) | (6,804,209) | (6,083,912) |
OTHER INCOME (EXPENSE) | ||||
Interest Income | 278 | 2,981 | 3,025 | 10,053 |
State Incentives | 76,628 | |||
Exchange Rate Loss | (6,184) | (490) | (16,950) | (333) |
Interest Expense | (1,978) | (2,052) | (5,367) | (5,434) |
Other Income | 1,092,441 | |||
Total Other Income (Expense) | (7,884) | 439 | 57,336 | 1,096,727 |
LOSS BEFORE PROVISION FOR INCOME TAXES | (2,292,308) | (2,490,978) | (6,746,873) | (4,987,185) |
Provision for income Taxes | ||||
Net Loss | (2,292,308) | (2,490,978) | (6,746,873) | (4,987,185) |
Preferred Dividends | (14,220) | (14,220) | (42,660) | (89,347) |
Net Loss Applicable to Common Stockholders | $ (2,306,528) | $ (2,505,198) | $ (6,789,533) | $ (5,076,532) |
Net Loss per Common Share – Basic and Diluted | $ (0.22) | $ (0.24) | $ (0.65) | $ (0.53) |
Weighted Average Number of Shares Outstanding – Basic and Diluted | 10,498,802 | 10,494,560 | 10,498,802 | 9,602,666 |
Statement of Stockholders' Equi
Statement of Stockholders' Equity (Unaudited) - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2020 | $ 1 | $ 5,995 | $ 38,262,744 | $ (33,105,008) | $ 5,163,732 |
Begining balance, shares at Dec. 31, 2020 | 715 | 5,995,320 | |||
Net Loss | (4,987,185) | (4,987,185) | |||
Preferred Stock Dividends | $ 19 | 89,328 | (89,347) | ||
Preferred Stock Dividends, shares | 19,000 | ||||
Stock Options Awarded to Directors | 404,580 | 404,580 | |||
Stock Options Awarded to Employees | $ 5 | 893,426 | 893,431 | ||
Stock Options Awarded to Employees, shares | 5,204 | ||||
Securities Issued for Third Party Services | $ 2 | 128,807 | 128,809 | ||
Securities Issued for Third Party Services, shares | 1,500 | ||||
Common Shares Sold in Public Offerings | $ 3,902 | 14,865,997 | 14,869,899 | ||
Common Shares Sold in Public Offerings, shares | 3,901,783 | ||||
Extinguishment of Derivative Liability | (1,092,441) | (1,092,441) | |||
Common Shares Issued Upon Conversion of Preferred Shares | $ 100 | (100) | |||
Common Shares Issued Upon Conversion of Preferred Shares, shares | (250) | 100,000 | |||
Common Shares issued for Exercise of Common Warrants | $ 476 | 1,135,534 | 1,136,010 | ||
Common Shares issued for Exercise of Common Warrants, shares | 475,995 | ||||
Offering Costs | (1,600,967) | (1,600,967) | |||
Ending balance, value at Sep. 30, 2021 | $ 1 | $ 10,499 | 53,086,908 | (38,181,540) | 14,915,868 |
Ending balance, shares at Sep. 30, 2021 | 465 | 10,498,802 | |||
Beginning balance, value at Jun. 30, 2021 | $ 1 | $ 10,494 | 52,058,003 | (35,676,342) | 16,392,156 |
Begining balance, shares at Jun. 30, 2021 | 465 | 10,493,598 | |||
Net Loss | (2,490,978) | (2,490,978) | |||
Preferred Stock Dividends | 14,220 | (14,220) | |||
Stock Options Awarded to Employees | $ 5 | 659,507 | 659,512 | ||
Stock Options Awarded to Employees, shares | 5,204 | ||||
Shares Securities Issued to Directors for Services | 282,306 | 282,306 | |||
Securities Issued for Third Party Services | 72,872 | 72,872 | |||
Securities Issued for Third Party Services, shares | |||||
Ending balance, value at Sep. 30, 2021 | $ 1 | $ 10,499 | 53,086,908 | (38,181,540) | 14,915,868 |
Ending balance, shares at Sep. 30, 2021 | 465 | 10,498,802 | |||
Beginning balance, value at Dec. 31, 2021 | $ 1 | $ 10,499 | 53,442,431 | (40,593,180) | 12,859,751 |
Begining balance, shares at Dec. 31, 2021 | 465 | 10,498,802 | |||
Net Loss | (6,746,873) | (6,746,873) | |||
Preferred Stock Dividends | 42,660 | (42,660) | |||
Stock Options Issued for Third Party Services | 24,463 | 24,463 | |||
Stock Options Awarded to Directors | 70,594 | 70,594 | |||
Stock Options Awarded to Employees | 613,833 | 613,833 | |||
Stock Options Awarded to Employees, shares | |||||
Ending balance, value at Sep. 30, 2022 | $ 1 | $ 10,499 | 54,193,981 | (47,382,713) | 6,821,768 |
Ending balance, shares at Sep. 30, 2022 | 465 | 10,498,802 | |||
Beginning balance, value at Jun. 30, 2022 | $ 1 | $ 10,499 | 53,876,218 | (45,076,185) | 8,810,533 |
Begining balance, shares at Jun. 30, 2022 | 465 | 10,498,802 | |||
Net Loss | (2,292,308) | (2,292,308) | |||
Preferred Stock Dividends | 14,220 | (14,220) | |||
Preferred Stock Dividends, shares | |||||
Stock Options Issued for Third Party Services | 973 | 973 | |||
Stock Options Awarded to Directors | 27,152 | 27,152 | |||
Stock Options Awarded to Employees | 275,418 | 275,418 | |||
Stock Options Awarded to Employees, shares | |||||
Ending balance, value at Sep. 30, 2022 | $ 1 | $ 10,499 | $ 54,193,981 | $ (47,382,713) | $ 6,821,768 |
Ending balance, shares at Sep. 30, 2022 | 465 | 10,498,802 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
OPERATING ACTIVITIES | ||
Net Loss | $ (6,746,873) | $ (4,987,185) |
Noncash Expenses: | ||
Depreciation and Amortization | 88,302 | 76,502 |
Gain on Derivative Liability | (1,092,441) | |
Stock-Based Compensation - Employees | 613,833 | 893,431 |
Stock-Based Compensation - Third Party Services | 24,463 | 128,809 |
Stock-Based Compensation - Directors | 70,594 | 404,580 |
Change in Assets and Liabilities: | ||
Accounts Receivable | 44,422 | (335,178) |
Inventory | (257,352) | (196,896) |
Prepaid Assets | (63,446) | (13,940) |
Accounts Payable | 197,105 | 94,220 |
Deferred Revenue | (19,166) | 7,523 |
Accrued Expenses | (338,297) | 233,985 |
NET CASH USED IN OPERATING ACTIVITIES | (6,386,415) | (4,786,590) |
INVESTING ACTIVITIES | ||
Purchase of Property and Equipment | (83,848) | (116,631) |
Purchase of Intangible Assets | (176,104) | (138,141) |
NET CASH USED IN INVESTING ACTIVITIES | (259,952) | (254,772) |
FINANCING ACTIVITIES | ||
Gross Proceeds from Public and Private Issuances of Securities | 14,869,899 | |
Less Offering Costs | (1,600,967) | |
Proceeds from Exercise of Warrants | 1,136,010 | |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 14,404,942 | |
NET CHANGE IN CASH FOR PERIOD | (6,646,367) | 9,363,580 |
CASH AT BEGINNING OF PERIOD | 11,447,047 | 3,700,814 |
CASH AT END OF PERIOD | 4,800,680 | 13,064,394 |
Noncash Investing and Financing Activities Disclosure: | ||
Issuance of Common Shares for Preferred Dividends | 89,347 | |
Other Noncash Operating Activities Disclosure: | ||
Issuance of Securities for services | 95,057 | 533,387 |
Disclosure of Cash Paid for: | ||
Interest | 5,367 | 5,434 |
Income Taxes |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1 - Summary of Significant Accounting Policies Nature of Business Basis of Presentation Reclassification Fair Value of Financial Instruments The Company does not use derivative instruments for hedging of market risk or for trading or speculative purposes. On March 26, 2021, the Company issued warrants to purchase an aggregate of 2,190,000 May 24, 2021 12,000,000 24,000,000 May 24, 2023 Pursuant to ASC 815.40.25.10, such warrants were accounted for as a derivative liability because the Company did not have sufficient authorized and unissued shares of common stock available to settle the warrants at the issue date. On May 24, 2021, upon receiving stockholder approval to increase its authorized common shares, the Company reclassified the warrant liability to equity pursuant to ASC 815.40.35.8. For the nine months ended September 30, 2021, the Company recorded a gain of $ 1,092,441 Loss Per Share Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share September 30, 2022 2021 Warrants 3,825,781 3,987,931 Stock Options 1,784,942 1,400,407 Preferred Stock 148,918 124,483 Total Underlying Common Shares 5,759,641 5,512,821 The following table shows the amounts used in computing loss per share and the effect on net loss and the weighted average number of shares of dilutive potential common stock for the periods ended September 30, 2022 and 2021: Schedule of Computing Loss Per Share 2022 2021 2022 2021 Three Months Ended September 30 Nine Months Ended September 30 2022 2021 2022 2021 Net Loss per Common Share - Basic and Diluted $ (0.22 ) $ (0.24 ) $ (0.65 ) $ (0.53 ) Loss Applicable to Common Stockholders (numerator) $ (2,306,528 ) $ (2,505,198 ) $ (6,789,533 ) $ (5,076,532 ) Weighted Average Number of Common Shares Outstanding Used in Loss Per Share During the Period (denominator) 10,498,802 10,494,560 10,498,802 9,602,666 Accounting Estimates Revenue Recognition Revenue from Contracts with Customers In January 2022, the Company began offering a subscription option to its customers, pursuant to which it leases its PrintRite3D platform for terms between 12 and 36 months and provide technical support and maintenance for the term of the arrangement, as well as installation and training. The Company has determined these are leases because they relate to discrete pieces of equipment to which customers have the right to substantially all the economic benefit from and exclusive right to use during the term of the arrangement. These leases are classified as operating leases and the Company retains title to the underlying equipment. The leases may be renewed for successive one-year terms unless notice is given by either party of its intent not to renew at least 30 days before the end of the lease term. For leases with 36-month terms, the lessee may terminate the agreement after the first 18 months with 30-days written notice. Some, but not all, of the leases permit lessees to purchase the equipment at any time at an amount that approximates fair value and are not reasonably certain to be exercised at the inception of the lease. There are no anticipated variable lease payments at the inception of the lease. There are two non-lease components in the arrangement that consist of technical support and maintenance, and installation and training. The Company has elected the single component practical expedient to combine the technical support and maintenance with the lease as they have the same pattern of transfer. The installation and training component does not have the same pattern of transfer; therefore, this component is not eligible for the single component practical expedient. The consideration has been allocated on a relative fair value basis of the underlying lease and non-lease components. The Company has estimated the residual value of the leased equipment based on its useful life, and the ability to refurbish and sell the equipment, as well as the Company’s ability to componentize the hardware and utilize subassemblies in other products. Revenue from these operating leases for the three and nine months ended September 30, 2022 was $ 2,834 17,006 Minimum Lease Payments Receivable Minimum lease payments receivable for each of the succeeding years ending December 31 are as follows: Schedule of Minimum Lease Payments Receivable Year ending December 31, Amount 2022 (remaining) $ 8,503 2023 $ 8,503 2024 - 2025 and thereafter - Total $ 17,006 Equipment Underlying Operating Leases: Equipment under operating leases as of September 30, 2022 were comprised of the following: Schedule of Assets underlying Operating Leases September 30, PrintRite 3D Hardware $ 38,949 Accumulated Depreciation 4,173 Net Book Value $ 34,776 The Company is depreciating the underlying equipment over its useful life of 7 |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory | NOTE 2 – Inventory At September 30, 2022 and December 31, 2021, the Company’s inventory was comprised of the following: Schedule of Inventory September 30, December 31, Raw Materials $ 264,558 $ 202,015 Work in Process 420,420 224,079 Finished Goods 282,454 283,986 Total Inventory $ 967,432 $ 710,080 |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | NOTE 3 – Intangible Assets The Company’s intangible assets consist of patents and patent applications. Provisional patent applications are not amortized until a patent has been granted. Once a patent is granted, the Company will amortize the related costs over the estimated useful life of the patent. If a patent application is denied, then the costs will be expensed at that time. During 2022, $ 126,231 The following is a summary of definite-life intangible assets less accumulated amortization as of September 30, 2022 and December 31, 2021, respectively: Summary of Definite-life Intangible Assets and Accumulated Amortization September 30, December 31, Provisional Patent Applications $ 725,164 $ 675,291 Patents 426,601 300,370 Less: Accumulated Amortization (67,560 ) (50,550 ) Net Intangible Assets $ 1,084,205 $ 925,111 Amortization expense on intangible assets was $ 17,010 22,998 The estimated aggregate amortization expense for each of the following years ending December 31 is as follows: Schedule of Aggregate Amortization Expense 2022 (Remaining) $ 6,153 2023 24,610 2024 24,610 2025 24,610 Thereafter 279,058 Intangible asset and amortization expense $ 359,041 |
Deferral of Social Security Tax
Deferral of Social Security Tax Payments | 9 Months Ended |
Sep. 30, 2022 | |
Deferral Of Social Security Tax Payments | |
Deferral of Social Security Tax Payments | NOTE 4 – Deferral of Social Security Tax Payments Pursuant to sections 2302(a)(1) and (a)(2) of the CARES Act, the Company has elected to defer payments of its share of Social Security tax due during the “payroll tax deferral period.” The payroll tax deferral period began on March 27, 2020 and ended on December 31, 2020. At September 30, 2022, the total remaining amount of the deferral was $ 37,728 December 31, 2022 |
Stockholders_ Equity
Stockholders’ Equity | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Stockholders’ Equity | NOTE 5 - Stockholders’ Equity Common Stock On May 24, 2021, at a Special Stockholders Meeting, our stockholders approved an increase in the authorized shares of common stock from 12,000,000 24,000,000 In January 2021, the Company closed a public offering of its securities in which it issued 1,711,783 3.00 4,532,445 136,943 five years 3.75 In February 2021, the Company issued 263,200 In March 2021, the Company issued 119,000 250 19,000 191,204 21,591 In March 2021, the Company closed a public offering in which it issued 2,190,000 4.445 8,736,487 12,000,000 24,000,000 2,190,000 4.32 May 24, 2021 175,200 8 125 5.55625 8 In March 2021, Company issued 1,500 4.99 Preferred Stock The Company is authorized to issue 10,000,000 0.001 465 In January 2020, the Company entered into a Securities Purchase Agreement with certain institutional investors (the “Institutional Private Placement”), pursuant to which the Company issued and sold 1,640 1,000 9% 2.50 Alternatively, a holder may at any time convert all, or any part, of its Series D Preferred Shares at an alternative conversion price equal to 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-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 Stock being redeemed At September 30, 2022, there were 132 87,267 Concurrent with the Institutional Private Placement, the Company entered into a Securities Purchase Agreement pursuant to which the Company issued and sold to certain of its directors and the Company’s then largest stockholder 333 1,000 9% 48,544 At September 30, 2022, 333 61,651 Stock Options As of September 30, 2022, an aggregate of 450,617 In March 2022, the Company granted options to its non-employee directors to purchase up to an aggregate of 56,000 2.50 75% 25% During the nine months ended September 30, 2022, the Company granted twelve employees options to purchase up to an aggregate of 228,973 2.50 135,000 2.50 Also, during the nine months ended September 30, 2022, the Company granted two consultants options to purchase up to an aggregate of 14,000 2.50 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 grant date, The exercise prices will not be less than 100% of the fair market value of a share on the date of grant of the option. Stock options are typically granted throughout the year and generally vest over a period from one to three years of service and expire five years from the grant date, 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 stock-based compensation expense included in the statements of operations for the nine months ended September 30, 2022 and 2021 was $ 613,833 893,431 The fair value of stock-based awards was estimated using the Black-Scholes model with the following weighted average assumptions for the nine months ended September 30, 2022 and 2021: Schedule of Share Based Payments Award Stock Options Valuation Assumptions 2022 2021 Dividend yield 0.00 % 0.00 % Risk-free interest rate 0.95 3.23 % 0.19 0.70 % Expected volatility 106.40 109.97 % 116.8 123.8 % Expected life (in years) 5 5 Option activity for the nine months ended September 30, 2022 and the year ended December 31, 2021 was as follows: Schedule of Stock Option Activity Options Weighted Weighted Aggregate Options outstanding at December 31, 2020 713,010 5.15 4.40 477,802 Granted 698,831 3.29 4.39 46,800 Exercised (5,204 ) 2.50 - - Forfeited or cancelled (10,755 ) 3.49 - - Options outstanding at December 31, 2021 1,395,882 4.24 3.89 - Granted 433,973 2.50 4.64 - Exercised - - - - Forfeited or cancelled (44,913 ) 4.21 - - Options outstanding September 30, 2022 1,784,942 3.82 3.50 - Options expected to vest in the future as of September 30, 2022 534,242 2.91 4.08 - Options exercisable at September 30, 2022 1,250,700 4.21 3.25 - Options vested, exercisable, and options expected to vest at September 30, 2022 1,784,942 3.82 3.50 - The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the market price of our common stock for those awards that have an exercise price below the 0.815 At September 30, 2022, there was $ 908,588 2.0 Stock Appreciation Rights On June 23, 2020, the board of directors (the “Board”) of the Company adopted the 2020 Stock Appreciation Rights Plan (the “Plan”). The purposes of the Plan are to: (i) enable the Company to attract and retain the types of employees, consultants, and directors (collectively, “Service Providers”) who will contribute to the Company’s long-range success; (ii) provide incentives that align the interests of Service Providers with those of the stockholders of the Company; and (iii) promote the success of the Company’s business. The Plan provides for incentive awards only in the form of stock appreciation rights payable in cash (“SARs”) and no shares of common stock are reserved or will be issued pursuant to the Plan. SARs may be granted to any Service Provider. A SAR is the right to receive an amount equal to the Spread with respect to a share of the Company’s common stock (“Share”) upon the exercise of the SAR. The “Spread” is the difference between the exercise price per share specified in a SAR agreement on the date of grant and the fair market value per share on the date of exercise of the SAR. The exercise price per share will not be less than 100% of the fair market value of a share on the date of grant of the SAR. The administrator of the Plan will have the authority to, among other things, prescribe the terms and conditions of each SAR, including, without limitation, the exercise price and vesting provisions, and to specify the provisions of the SAR Agreement relating to such grant. During the nine months ended September 30, 2022, the Company granted a total of 404,975 1.30 2.50 Also, during the nine months ended September 30, 2022, the Company granted 406,887 1.30 2.50 30,000 194,940 181,947 On March 31, 2022, the Company granted 3,000 2.50 The Company recognizes compensation expense and a corresponding liability for the fair value of the SARs over the requisite service period for each SAR award. The SARs are revalued at each reporting date in accordance with ASC 718 “Compensation-Stock Compensation”, and any changes in fair value are reflected in the Statement of Operations as of the applicable reporting date. The fair value of SAR awards was estimated using the Black-Scholes model with the following weighted-average assumptions for the nine months ended September 30, 2022 and the year ended December 31, 2021: Schedule of Share Based Payments Award Stock Options Valuation Assumptions 2022 2021 Dividend yield 0.00 % 0.00 % Risk-free interest rate 0.82 2.79 % 0.39 0.40 % Expected volatility 108.38 119.02 % 123.0 % Expected life (in years) 5 5 SARs activity for the nine months ended September 30, 2022 and the year ended December 31, 2021 was as follows: Schedule of Stock Option Activity Options Weighted Weighted Aggregate - SARs outstanding at December 31, 2020 127,679 2.61 4.52 97,919 Granted 242,945 3.43 4.61 - Exercised - - - - Forfeited or cancelled - - - - SARs outstanding at December 31, 2021 370,624 3.15 4.24 - Granted 814,862 1.81 4.73 - Exercised - - - - Forfeited or cancelled - - - - SARs outstanding September 30, 2022 1,185,486 2.23 4.34 - SARs expected to vest in the future as of September 30, 2022 897,970 2.05 4.50 - SARs exercisable at September 30, 2022 287,516 2.80 3.84 - SARs vested, exercisable, and SARs expected to vest at September 30, 2022 1,185,486 2.23 4.34 - The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the market price of our common stock for those awards that have an exercise price below the 0.815 closing price of our common stock as reported on The Nasdaq Capital Market At September 30, 2022, there was $ 1,128,615 2.38 Warrants Warrant activity for the nine months ended September 30, 2022 and the year ended December 31, 2021 was as follows: Schedule of Warranty Activity Warrants Weighted Weighted Warrants outstanding at December 31, 2020 1,881,429 7.57 4.16 Granted 2,602,143 4.36 1.63 Exercised (495,641 ) 2.59 - Forfeited or cancelled - - - Warrants outstanding at December 31, 2021 3,987,931 6.10 2.10 Granted - - - Exercised - - - Forfeited or cancelled (162,150 ) 40.00 - Warrants outstanding at September 30, 2022 3,825,781 4.66 2.10 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 6 - Subsequent Events On October 14, 2022, the Company received notice from The Nasdaq Stock Market (“Nasdaq”) that the closing bid price for our common stock had been below $ 1.00 The Company believes that it will regain compliance with the $ 1.00 minimum bid price requirement. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Nature of Business | Nature of Business |
Basis of Presentation | Basis of Presentation |
Reclassification | Reclassification |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company does not use derivative instruments for hedging of market risk or for trading or speculative purposes. On March 26, 2021, the Company issued warrants to purchase an aggregate of 2,190,000 May 24, 2021 12,000,000 24,000,000 May 24, 2023 Pursuant to ASC 815.40.25.10, such warrants were accounted for as a derivative liability because the Company did not have sufficient authorized and unissued shares of common stock available to settle the warrants at the issue date. On May 24, 2021, upon receiving stockholder approval to increase its authorized common shares, the Company reclassified the warrant liability to equity pursuant to ASC 815.40.35.8. For the nine months ended September 30, 2021, the Company recorded a gain of $ 1,092,441 |
Loss Per Share | Loss Per Share Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share September 30, 2022 2021 Warrants 3,825,781 3,987,931 Stock Options 1,784,942 1,400,407 Preferred Stock 148,918 124,483 Total Underlying Common Shares 5,759,641 5,512,821 The following table shows the amounts used in computing loss per share and the effect on net loss and the weighted average number of shares of dilutive potential common stock for the periods ended September 30, 2022 and 2021: Schedule of Computing Loss Per Share 2022 2021 2022 2021 Three Months Ended September 30 Nine Months Ended September 30 2022 2021 2022 2021 Net Loss per Common Share - Basic and Diluted $ (0.22 ) $ (0.24 ) $ (0.65 ) $ (0.53 ) Loss Applicable to Common Stockholders (numerator) $ (2,306,528 ) $ (2,505,198 ) $ (6,789,533 ) $ (5,076,532 ) Weighted Average Number of Common Shares Outstanding Used in Loss Per Share During the Period (denominator) 10,498,802 10,494,560 10,498,802 9,602,666 |
Accounting Estimates | Accounting Estimates |
Revenue Recognition | Revenue Recognition Revenue from Contracts with Customers In January 2022, the Company began offering a subscription option to its customers, pursuant to which it leases its PrintRite3D platform for terms between 12 and 36 months and provide technical support and maintenance for the term of the arrangement, as well as installation and training. The Company has determined these are leases because they relate to discrete pieces of equipment to which customers have the right to substantially all the economic benefit from and exclusive right to use during the term of the arrangement. These leases are classified as operating leases and the Company retains title to the underlying equipment. The leases may be renewed for successive one-year terms unless notice is given by either party of its intent not to renew at least 30 days before the end of the lease term. For leases with 36-month terms, the lessee may terminate the agreement after the first 18 months with 30-days written notice. Some, but not all, of the leases permit lessees to purchase the equipment at any time at an amount that approximates fair value and are not reasonably certain to be exercised at the inception of the lease. There are no anticipated variable lease payments at the inception of the lease. There are two non-lease components in the arrangement that consist of technical support and maintenance, and installation and training. The Company has elected the single component practical expedient to combine the technical support and maintenance with the lease as they have the same pattern of transfer. The installation and training component does not have the same pattern of transfer; therefore, this component is not eligible for the single component practical expedient. The consideration has been allocated on a relative fair value basis of the underlying lease and non-lease components. The Company has estimated the residual value of the leased equipment based on its useful life, and the ability to refurbish and sell the equipment, as well as the Company’s ability to componentize the hardware and utilize subassemblies in other products. Revenue from these operating leases for the three and nine months ended September 30, 2022 was $ 2,834 17,006 Minimum Lease Payments Receivable Minimum lease payments receivable for each of the succeeding years ending December 31 are as follows: Schedule of Minimum Lease Payments Receivable Year ending December 31, Amount 2022 (remaining) $ 8,503 2023 $ 8,503 2024 - 2025 and thereafter - Total $ 17,006 Equipment Underlying Operating Leases: Equipment under operating leases as of September 30, 2022 were comprised of the following: Schedule of Assets underlying Operating Leases September 30, PrintRite 3D Hardware $ 38,949 Accumulated Depreciation 4,173 Net Book Value $ 34,776 The Company is depreciating the underlying equipment over its useful life of 7 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share September 30, 2022 2021 Warrants 3,825,781 3,987,931 Stock Options 1,784,942 1,400,407 Preferred Stock 148,918 124,483 Total Underlying Common Shares 5,759,641 5,512,821 |
Schedule of Computing Loss Per Share | The following table shows the amounts used in computing loss per share and the effect on net loss and the weighted average number of shares of dilutive potential common stock for the periods ended September 30, 2022 and 2021: Schedule of Computing Loss Per Share 2022 2021 2022 2021 Three Months Ended September 30 Nine Months Ended September 30 2022 2021 2022 2021 Net Loss per Common Share - Basic and Diluted $ (0.22 ) $ (0.24 ) $ (0.65 ) $ (0.53 ) Loss Applicable to Common Stockholders (numerator) $ (2,306,528 ) $ (2,505,198 ) $ (6,789,533 ) $ (5,076,532 ) Weighted Average Number of Common Shares Outstanding Used in Loss Per Share During the Period (denominator) 10,498,802 10,494,560 10,498,802 9,602,666 |
Schedule of Minimum Lease Payments Receivable | Minimum lease payments receivable for each of the succeeding years ending December 31 are as follows: Schedule of Minimum Lease Payments Receivable Year ending December 31, Amount 2022 (remaining) $ 8,503 2023 $ 8,503 2024 - 2025 and thereafter - Total $ 17,006 |
Schedule of Assets underlying Operating Leases | Equipment under operating leases as of September 30, 2022 were comprised of the following: Schedule of Assets underlying Operating Leases September 30, PrintRite 3D Hardware $ 38,949 Accumulated Depreciation 4,173 Net Book Value $ 34,776 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | At September 30, 2022 and December 31, 2021, the Company’s inventory was comprised of the following: Schedule of Inventory September 30, December 31, Raw Materials $ 264,558 $ 202,015 Work in Process 420,420 224,079 Finished Goods 282,454 283,986 Total Inventory $ 967,432 $ 710,080 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Definite-life Intangible Assets and Accumulated Amortization | The following is a summary of definite-life intangible assets less accumulated amortization as of September 30, 2022 and December 31, 2021, respectively: Summary of Definite-life Intangible Assets and Accumulated Amortization September 30, December 31, Provisional Patent Applications $ 725,164 $ 675,291 Patents 426,601 300,370 Less: Accumulated Amortization (67,560 ) (50,550 ) Net Intangible Assets $ 1,084,205 $ 925,111 |
Schedule of Aggregate Amortization Expense | The estimated aggregate amortization expense for each of the following years ending December 31 is as follows: Schedule of Aggregate Amortization Expense 2022 (Remaining) $ 6,153 2023 24,610 2024 24,610 2025 24,610 Thereafter 279,058 Intangible asset and amortization expense $ 359,041 |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Schedule of Share Based Payments Award Stock Options Valuation Assumptions | Schedule of Share Based Payments Award Stock Options Valuation Assumptions 2022 2021 Dividend yield 0.00 % 0.00 % Risk-free interest rate 0.95 3.23 % 0.19 0.70 % Expected volatility 106.40 109.97 % 116.8 123.8 % Expected life (in years) 5 5 |
Schedule of Stock Option Activity | Option activity for the nine months ended September 30, 2022 and the year ended December 31, 2021 was as follows: Schedule of Stock Option Activity Options Weighted Weighted Aggregate Options outstanding at December 31, 2020 713,010 5.15 4.40 477,802 Granted 698,831 3.29 4.39 46,800 Exercised (5,204 ) 2.50 - - Forfeited or cancelled (10,755 ) 3.49 - - Options outstanding at December 31, 2021 1,395,882 4.24 3.89 - Granted 433,973 2.50 4.64 - Exercised - - - - Forfeited or cancelled (44,913 ) 4.21 - - Options outstanding September 30, 2022 1,784,942 3.82 3.50 - Options expected to vest in the future as of September 30, 2022 534,242 2.91 4.08 - Options exercisable at September 30, 2022 1,250,700 4.21 3.25 - Options vested, exercisable, and options expected to vest at September 30, 2022 1,784,942 3.82 3.50 - |
Schedule of Warranty Activity | Warrant activity for the nine months ended September 30, 2022 and the year ended December 31, 2021 was as follows: Schedule of Warranty Activity Warrants Weighted Weighted Warrants outstanding at December 31, 2020 1,881,429 7.57 4.16 Granted 2,602,143 4.36 1.63 Exercised (495,641 ) 2.59 - Forfeited or cancelled - - - Warrants outstanding at December 31, 2021 3,987,931 6.10 2.10 Granted - - - Exercised - - - Forfeited or cancelled (162,150 ) 40.00 - Warrants outstanding at September 30, 2022 3,825,781 4.66 2.10 |
Stock Appreciation Rights [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Schedule of Share Based Payments Award Stock Options Valuation Assumptions | The fair value of SAR awards was estimated using the Black-Scholes model with the following weighted-average assumptions for the nine months ended September 30, 2022 and the year ended December 31, 2021: Schedule of Share Based Payments Award Stock Options Valuation Assumptions 2022 2021 Dividend yield 0.00 % 0.00 % Risk-free interest rate 0.82 2.79 % 0.39 0.40 % Expected volatility 108.38 119.02 % 123.0 % Expected life (in years) 5 5 |
Schedule of Stock Option Activity | SARs activity for the nine months ended September 30, 2022 and the year ended December 31, 2021 was as follows: Schedule of Stock Option Activity Options Weighted Weighted Aggregate - SARs outstanding at December 31, 2020 127,679 2.61 4.52 97,919 Granted 242,945 3.43 4.61 - Exercised - - - - Forfeited or cancelled - - - - SARs outstanding at December 31, 2021 370,624 3.15 4.24 - Granted 814,862 1.81 4.73 - Exercised - - - - Forfeited or cancelled - - - - SARs outstanding September 30, 2022 1,185,486 2.23 4.34 - SARs expected to vest in the future as of September 30, 2022 897,970 2.05 4.50 - SARs exercisable at September 30, 2022 287,516 2.80 3.84 - SARs vested, exercisable, and SARs expected to vest at September 30, 2022 1,185,486 2.23 4.34 - |
Schedule of Antidilutive Securi
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total Underlying Common Shares | 5,759,641 | 5,512,821 |
Warrant [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total Underlying Common Shares | 3,825,781 | 3,987,931 |
Equity Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total Underlying Common Shares | 1,784,942 | 1,400,407 |
Preferred Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total Underlying Common Shares | 148,918 | 124,483 |
Schedule of Computing Loss Per
Schedule of Computing Loss Per Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Accounting Policies [Abstract] | ||||
Net Loss per Common Share - Basic and Diluted | $ (0.22) | $ (0.24) | $ (0.65) | $ (0.53) |
Loss Applicable to Common Stockholders (numerator) | $ (2,306,528) | $ (2,505,198) | $ (6,789,533) | $ (5,076,532) |
Weighted Average Number of Common Shares Outstanding Used in Loss Per Share During the Period (denominator) | 10,498,802 | 10,494,560 | 10,498,802 | 9,602,666 |
Schedule of Minimum Lease Payme
Schedule of Minimum Lease Payments Receivable (Details) | Sep. 30, 2022 USD ($) |
Accounting Policies [Abstract] | |
2022 (remaining) | $ 8,503 |
2023 | 8,503 |
2024 | |
2025 and thereafter | |
Total | $ 17,006 |
Schedule of Assets underlying O
Schedule of Assets underlying Operating Leases (Details) | Sep. 30, 2022 USD ($) |
Accounting Policies [Abstract] | |
PrintRite 3D Hardware | $ 38,949 |
Accumulated Depreciation | 4,173 |
Net Book Value | $ 34,776 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
Mar. 26, 2021 | Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | May 24, 2021 | Mar. 31, 2021 | Mar. 25, 2021 | Jan. 31, 2021 | |
Accounting Policies [Abstract] | |||||||||
Aggregate warrant purchase of shares | 2,190,000 | 136,943 | |||||||
Warrants exercisable date | May 24, 2021 | ||||||||
Common shares authorized | 24,000,000 | 24,000,000 | 24,000,000 | 24,000,000 | 12,000,000 | 12,000,000 | 12,000,000 | ||
Expiration date | May 24, 2023 | ||||||||
Derivative liability | $ 1,092,441 | ||||||||
Lease income from operating leases | $ 2,834 | $ 17,006 | |||||||
Underlying equipment useful life | 7 years |
Schedule of Inventory (Details)
Schedule of Inventory (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw Materials | $ 264,558 | $ 202,015 |
Work in Process | 420,420 | 224,079 |
Finished Goods | 282,454 | 283,986 |
Total Inventory | $ 967,432 | $ 710,080 |
Summary of Definite-life Intang
Summary of Definite-life Intangible Assets and Accumulated Amortization (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Less: Accumulated Amortization | $ (67,560) | $ (50,550) |
Net Intangible Assets | 1,084,205 | 925,111 |
Provisional Patent Applications [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Patents | 725,164 | 675,291 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Patents | $ 426,601 | $ 300,370 |
Schedule of Aggregate Amortizat
Schedule of Aggregate Amortization Expense (Details) | Sep. 30, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2022 (Remaining) | $ 6,153 |
2023 | 24,610 |
2024 | 24,610 |
2025 | 24,610 |
Thereafter | 279,058 |
Intangible asset and amortization expense | $ 359,041 |
Intangible Assets (Details Narr
Intangible Assets (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense on intangible assets | $ 17,010 | $ 22,998 |
Patent [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Costs relate to patents issued | $ 126,231 |
Deferral of Social Security T_2
Deferral of Social Security Tax Payments (Details Narrative) | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Deferral Of Social Security Tax Payments | |
Deferred Liabilities | $ 37,728 |
Tax credit carryforward, expiration ate | Dec. 31, 2022 |
Schedule of Share Based Payment
Schedule of Share Based Payments Award Stock Options Valuation Assumptions (Details) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Dividend yield | 0% | 0% | |
Risk-free interest rate, minimum | 0.95% | 0.19% | |
Risk-free interest rate, maximum | 3.23% | 0.70% | |
Expected volatility, minimum | 106.40% | 116.80% | |
Expected volatility, maximum | 109.97% | 123.80% | |
Expected life | 5 years | 5 years | |
2020 Stock Appreciation Rights Plan [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Dividend yield | 0% | 0% | |
Risk-free interest rate, minimum | 0.82% | 0.39% | |
Risk-free interest rate, maximum | 2.79% | 0.40% | |
Expected volatility, minimum | 108.38% | ||
Expected volatility, maximum | 119.02% | ||
Expected life | 5 years | 5 years | |
Expected volatility | 123% |
Schedule of Stock Option Activi
Schedule of Stock Option Activity (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Number of Options, Outstanding, Beginning Balance | 1,395,882 | 713,010 | |
Weighted Average Exercise Price, Outstanding Beginning Balance | $ 4.24 | $ 5.15 | |
Weighted Average Remaining Contractual Life, Outstanding Balance | 3 years 6 months | 3 years 10 months 20 days | 4 years 4 months 24 days |
Aggregate Intrinsic Value, Outstanding Beginning Balance | $ 477,802 | ||
Number of Options, Granted | 433,973 | 698,831 | |
Weighted Average Exercise Price, Granted | $ 2.50 | $ 3.29 | |
Weighted Average Remaining Contractual Life, Granted | 4 years 7 months 20 days | 4 years 4 months 20 days | |
Aggregate Intrinsic Value, Granted | $ 46,800 | ||
Number of Options, Exercised | (5,204) | ||
Weighted Average Exercise Price, Exercised | $ 2.50 | ||
Aggregate Intrinsic Value, Exercised | |||
Number of Options, Forfeited or cancelled | (44,913) | (10,755) | |
Weighted Average Exercise Price, Forfeited or cancelled | $ 4.21 | $ 3.49 | |
Aggregate Intrinsic Value, Forfeited or cancelled | |||
Number of Options, Outstanding Ending Balance | 1,784,942 | 1,395,882 | 713,010 |
Weighted Average Exercise Price, Outstanding Outstanding Balance | $ 3.82 | $ 4.24 | $ 5.15 |
Aggregate Intrinsic Value, Outstanding Beginning Balance | $ 477,802 | ||
Number of Options, Expected to vest in the future Ending Balance | 534,242 | ||
Weighted Average Exercise Price, Expected to Vest | $ 2.91 | ||
Weighted Average Remaining Contractual Life, Expected to Vest | 4 years 29 days | ||
Aggregate Intrinsic Value, Outstanding, Expected of Vest | |||
Number of Options, Exercisable | 1,250,700 | ||
Weighted Average Exercise Price, Exercisable | $ 4.21 | ||
Weighted Average Remaining Contractual Life, Exercisable | 3 years 3 months | ||
Aggregate Intrinsic Value, Outstanding, Exercisable | |||
Number of Options, Vested, Exercisable and Options Expected to Vest Ending Balance | 1,784,942 | ||
Weighted Average Exercise Price, Vested, Exercisable and Options Expected to Vest | $ 3.82 | ||
Weighted Average Remaining Contractual Life, Vested, Exercisable and Options Expected to Vest | 3 years 6 months | ||
Aggregate Intrinsic Value, Outstanding,Exercisable and Options Expected to Vest | |||
Number of Options, Exercised | 5,204 | ||
Number of Options, Forfeited or cancelled | 44,913 | 10,755 | |
Stock Appreciation Rights [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Number of Options, Outstanding, Beginning Balance | 370,624 | 127,679 | |
Weighted Average Exercise Price, Outstanding Beginning Balance | $ 3.15 | $ 2.61 | |
Weighted Average Remaining Contractual Life, Outstanding Balance | 4 years 4 months 2 days | 4 years 2 months 26 days | 4 years 6 months 7 days |
Aggregate Intrinsic Value, Outstanding Beginning Balance | $ 97,919 | ||
Number of Options, Granted | 814,862 | 242,945 | |
Weighted Average Exercise Price, Granted | $ 1.81 | $ 3.43 | |
Weighted Average Remaining Contractual Life, Granted | 4 years 8 months 23 days | 4 years 7 months 9 days | |
Aggregate Intrinsic Value, Granted | |||
Number of Options, Exercised | |||
Weighted Average Exercise Price, Exercised | |||
Aggregate Intrinsic Value, Exercised | |||
Number of Options, Forfeited or cancelled | |||
Weighted Average Exercise Price, Forfeited or cancelled | |||
Aggregate Intrinsic Value, Forfeited or cancelled | |||
Number of Options, Outstanding Ending Balance | 1,185,486 | 370,624 | 127,679 |
Weighted Average Exercise Price, Outstanding Outstanding Balance | $ 2.23 | $ 3.15 | $ 2.61 |
Aggregate Intrinsic Value, Outstanding Beginning Balance | $ 97,919 | ||
Number of Options, Expected to vest in the future Ending Balance | 897,970 | ||
Weighted Average Exercise Price, Expected to Vest | $ 2.05 | ||
Weighted Average Remaining Contractual Life, Expected to Vest | 4 years 6 months | ||
Aggregate Intrinsic Value, Outstanding, Expected of Vest | |||
Number of Options, Exercisable | 287,516 | ||
Weighted Average Exercise Price, Exercisable | $ 2.80 | ||
Weighted Average Remaining Contractual Life, Exercisable | 3 years 10 months 2 days | ||
Aggregate Intrinsic Value, Outstanding, Exercisable | |||
Number of Options, Vested, Exercisable and Options Expected to Vest Ending Balance | 1,185,486 | ||
Weighted Average Exercise Price, Vested, Exercisable and Options Expected to Vest | $ 2.23 | ||
Weighted Average Remaining Contractual Life, Vested, Exercisable and Options Expected to Vest | 4 years 4 months 2 days | ||
Aggregate Intrinsic Value, Outstanding,Exercisable and Options Expected to Vest | |||
Number of Options, Exercised | |||
Number of Options, Forfeited or cancelled |
Schedule of Warranty Activity (
Schedule of Warranty Activity (Details) - $ / shares | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | |||
Warrants Outstanding, Beginning Balance | 3,987,931 | 1,881,429 | |
Weighted Average Exercise Price Outstanding, Beginning Balance | $ 6.10 | $ 7.57 | |
Weighted Average Remaining Contractual Life Years, Ending Balance | 2 years 1 month 6 days | 2 years 1 month 6 days | 4 years 1 month 28 days |
Warrants, Granted | 2,602,143 | ||
Weighted Average Exercise Price Outstanding, Granted | $ 4.36 | ||
Weighted Average Remaining Contractual Life Years, Granted | 1 year 7 months 17 days | ||
Warrants,Exercised | (495,641) | ||
Weighted Average Exercise Price Outstanding, Exercised | $ 2.59 | ||
Warrants, Forfeited or cancelled | (162,150) | ||
Weighted Average Exercise Price Outstanding, Forfeited or cancelled | $ 40 | ||
Warrants Outstanding, Ending Balance | 3,825,781 | 3,987,931 | 1,881,429 |
Weighted Average Exercise Price Outstanding,Ending Balance | $ 4.66 | $ 6.10 | $ 7.57 |
Stockholders_ Equity (Details N
Stockholders’ Equity (Details Narrative) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
Jul. 02, 2022 shares | Mar. 26, 2021 shares | Mar. 31, 2022 $ / shares shares | Mar. 31, 2021 USD ($) $ / shares shares | Feb. 28, 2021 shares | Jan. 31, 2021 USD ($) $ / shares shares | Jan. 31, 2020 $ / shares shares | Sep. 30, 2022 USD ($) $ / shares shares | Sep. 30, 2021 USD ($) shares | Sep. 30, 2022 USD ($) $ / shares shares | Sep. 30, 2021 USD ($) shares | Dec. 31, 2021 $ / shares shares | May 24, 2021 shares | Mar. 25, 2021 shares | |
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Common stock, shares authorized | 24,000,000 | 12,000,000 | 24,000,000 | 24,000,000 | 24,000,000 | 12,000,000 | 12,000,000 | |||||||
Common stock issued during period | 1,711,783 | |||||||||||||
Share price per share | $ / shares | $ 3 | |||||||||||||
Proceeds from public offering | $ | $ 4,532,445 | |||||||||||||
Warrants to purchase shares of common stock | 2,190,000 | 136,943 | ||||||||||||
Warrant term | 5 years | |||||||||||||
Warrant exercise price | $ / shares | $ 3.75 | |||||||||||||
Number of shares, warrants exercised | 495,641 | |||||||||||||
Warrants exercisable date | May 24, 2021 | |||||||||||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | |||||||||||
Preferred stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||||
Preferred stock, shares issued | 465 | 465 | 465 | |||||||||||
Preferred stock, shares outstanding | 465 | 465 | 465 | |||||||||||
Number of shares granted | 433,973 | 698,831 | ||||||||||||
Allocation share based compensation expense | $ | $ 275,418 | $ 659,512 | $ 613,833 | $ 893,431 | ||||||||||
Option exercise price | $ / shares | $ 0.815 | |||||||||||||
Stock options compensation cost | $ | $ 908,588 | $ 908,588 | ||||||||||||
Weighted average remaining recognition period | 2 years | |||||||||||||
Directors [Member] | ||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Number of shares granted | 56,000 | |||||||||||||
Option strike price | $ / shares | $ 2.50 | $ 2.50 | $ 2.50 | |||||||||||
Vesting percentage | 75% | |||||||||||||
Directors [Member] | December 31, 2022 [Member] | ||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Vesting percentage | 25% | |||||||||||||
Twelve Employees [Member] | ||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Number of shares granted | 228,973 | |||||||||||||
President and CEO [Member] | ||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Number of shares granted | 135,000 | |||||||||||||
Option strike price | $ / shares | 2.50 | $ 2.50 | ||||||||||||
Common shares granted for the period | 194,940 | 30,000 | 406,887 | |||||||||||
President and CEO [Member] | Minimum [Member] | ||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Option exercise price | $ / shares | $ 1.30 | |||||||||||||
President and CEO [Member] | Maximum [Member] | ||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Option exercise price | $ / shares | $ 2.50 | |||||||||||||
President and CEO [Member] | March 15, 2025 [Member] | ||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Common shares granted for the period | 181,947 | |||||||||||||
Two Consultants [Member] | ||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Number of shares granted | 14,000 | |||||||||||||
Option strike price | $ / shares | $ 2.50 | $ 2.50 | ||||||||||||
Fifteen Employees [Member] | ||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Common shares granted for the period | 404,975 | |||||||||||||
Fifteen Employees [Member] | Minimum [Member] | ||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Option exercise price | $ / shares | $ 1.30 | |||||||||||||
Fifteen Employees [Member] | Maximum [Member] | ||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Option exercise price | $ / shares | $ 2.50 | |||||||||||||
Consultant [Member] | ||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Option exercise price | $ / shares | $ 2.50 | |||||||||||||
Common shares granted for the period | 3,000 | |||||||||||||
2013 Stock Option Plan [Member] | ||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Common stock shares reserved for issuance | 450,617 | 450,617 | ||||||||||||
2020 Stock Appreciation Rights Plan [Member] | ||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Option exercise price | $ / shares | $ 0.815 | |||||||||||||
Unrecognized share based compensation cost | $ | $ 1,128,615 | $ 1,128,615 | ||||||||||||
Weighted average remaining recognition period | 2 years 4 months 17 days | |||||||||||||
Investor [Member] | ||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Share price per share | $ / shares | $ 4.99 | |||||||||||||
Stock issued during the period, service rendered | 1,500 | |||||||||||||
April 2020 Offering [Member] | ||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Common stock issued during period | 21,591 | |||||||||||||
Number of shares, warrants exercised | 191,204 | |||||||||||||
Placement Agent Warrants [Member] | ||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Warrants to purchase shares of common stock | 175,200 | |||||||||||||
Warrant exercise price | $ / shares | $ 5.55625 | |||||||||||||
Percentage of warrant exercise price | 8 | |||||||||||||
Placement Agent Warrants [Member] | Measurement Input, Share Price [Member] | ||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Percentage of warrant exercise price | 125 | |||||||||||||
Common Stock [Member] | ||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Common stock issued during period | 3,901,783 | |||||||||||||
Stock issued during the period, service rendered | 1,500 | |||||||||||||
Series D Convertible Preferred Stock [Member] | Common Stock [Member] | ||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Common stock issued during period | 119,000 | |||||||||||||
Conversion of stock shares converted | 250 | |||||||||||||
Number of shares as in-kind payment, shares | 19,000 | |||||||||||||
Series D Preferred Stock [Member] | Institutional Securities Purchase Agreement [Member] | ||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Common stock issued during period | 87,267 | |||||||||||||
Preferred stock, par value | $ / shares | $ 1,000 | |||||||||||||
Preferred stock, shares outstanding | 132 | 132 | ||||||||||||
Sale of shares | 1,640 | |||||||||||||
Dividend percentage | 9% | |||||||||||||
Conversion price per share | $ / shares | $ 2.50 | |||||||||||||
Conversion description | Alternatively, a holder may at any time convert all, or any part, of its Series D Preferred Shares at an alternative conversion price equal to 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-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 Stock being redeemed | |||||||||||||
Series E Preferred Stock [Member] | Institutional Securities Purchase Agreement [Member] | ||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Common stock issued during period | 61,651 | |||||||||||||
Conversion of stock shares converted | 48,544 | |||||||||||||
Preferred stock, par value | $ / shares | $ 1,000 | $ 1,000 | ||||||||||||
Preferred stock, shares outstanding | 333 | 333 | ||||||||||||
Sale of shares | 333 | |||||||||||||
Dividend percentage | 9% | |||||||||||||
Private Placement [Member] | ||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Common stock issued during period | 263,200 | |||||||||||||
Private Placement [Member] | Purchase Agreement [Member] | ||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Warrants to purchase shares of common stock | 2,190,000 | |||||||||||||
Warrant exercise price | $ / shares | $ 4.32 | |||||||||||||
Public Offering [Member] | ||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Common stock issued during period | 2,190,000 | |||||||||||||
Share price per share | $ / shares | $ 4.445 | |||||||||||||
Proceeds from public offering | $ | $ 8,736,487 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) | Oct. 14, 2022 $ / shares |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Minimum bid price per share | $ 1 |