Socket Mobile (SCKT) 10-Q 12 Nov 21 2021 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2021	Nov. 08, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2021
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2021
Current Fiscal Year End Date	--12-31
Entity File Number	1-13810
Entity Registrant Name	SOCKET MOBILE, INC.
Entity Central Index Key	0000944075
Entity Tax Identification Number	94-3155066
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	39700 Eureka Drive
Entity Address, City or Town	Newark
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94560
City Area Code	(510)
Local Phone Number	933-3000
Title of 12(b) Security	Common stock, $0.001 Par Value per Share
Trading Symbol	SCKT
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		7,179,227

Condensed Statements of Operati

Condensed Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Statement [Abstract]
Revenues	$ 6,319,044	$ 4,108,738	$ 17,084,913	$ 11,044,448
Cost of revenues	2,896,323	1,835,333	7,833,006	5,185,802
Gross profit	3,422,721	2,273,405	9,251,907	5,858,646
Operating expenses:
Research and development	1,014,175	680,797	2,917,501	2,420,945
Sales and marketing	787,889	658,265	2,182,377	2,148,221
General and administrative	666,884	485,465	2,141,911	1,741,311
Goodwill impairment charges		4,427,000		4,427,000
Total operating expenses	2,468,948	6,251,527	7,241,789	10,737,477
Operating income (loss)	953,773	(3,978,122)	2,010,118	(4,878,831)
Interest expense, net	(50,147)	(23,864)	(150,276)	(51,505)
Other income			10,082	70,000
Net income (loss) before income taxes	903,626	(4,001,986)	1,869,924	(4,860,336)
Current income tax expense		(800)	(6,289)	(800)
Deferred income tax benefit	(260,000)		1,610,000
Net income (loss)	$ 643,626	$ (4,002,786)	$ 3,473,635	$ (4,861,136)
Net income (loss) per share:
Basic	$ 0.08	$ (0.62)	$ 0.46	$ (0.76)
Diluted	$ 0.07	$ (0.62)	$ 0.37	$ (0.76)
Weighted average shares outstanding:
Basic	7,162,924	6,037,559	6,927,837	6,020,363
Diluted	8,939,384	6,037,559	8,932,395	6,020,363

Condensed Balance Sheets

Condensed Balance Sheets - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 5,352,738	$ 2,121,763
Accounts receivable, net	2,703,127	2,112,514
Inventories, net	4,434,536	3,195,842
Prepaid expenses and other current assets	601,429	335,386
Deferred cost on shipments to distributors	152,625	170,016
Total current assets	13,244,455	7,935,521
Property and equipment:
Machinery and office equipment	2,439,722	2,286,268
Computer equipment	1,807,443	1,412,030
Property and equipment, gross	4,247,165	3,698,298
Accumulated depreciation	(3,296,166)	(2,850,635)
Property and equipment, net	950,999	847,663
Intangible assets, net	1,845,785
Other long-term assets	151,174	159,039
Deferred tax assets	7,116,934	5,506,934
Operating lease right-of-use asset	313,293	609,331
Total assets	23,622,640	15,058,488
Current liabilities:
Accounts payable and accrued expenses	1,743,105	1,372,701
Accrued payroll and related expenses	702,938	375,511
Deferred revenue on shipments to distributors	390,930	450,591
Short term portion of deferred service revenue	18,630	25,522
Note Payable – current portion	500,000
Subordinated convertible notes payable, net of discount	142,540	169,619
Subordinated convertible notes payable, net of discount-related party	1,194,036	1,272,138
Operating lease – current portion	384,180	483,254
Total current liabilities	5,076,359	4,149,336
Long-term portion of deferred service revenue	17,697	28,794
Long-term portion of note payable	250,000
Long-term portion of operating lease		258,097
Total liabilities	5,344,056	4,436,227
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.001 par value: Authorized – 20,000,000 shares, Issued and outstanding – 7,174,363 shares at September 30, 2021 and 6,102,630 shares at December 31, 2020	7,174	6,103
Additional paid-in capital	65,915,139	61,733,522
Accumulated deficit	(47,643,729)	(51,117,364)
Total stockholders’ equity	18,278,584	10,622,261
Total liabilities and stockholders’ equity	$ 23,622,640	$ 15,058,488

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical)	Dec. 31, 2020$ / sharesshares
Statement of Financial Position [Abstract]
Common Stock, Par or Stated Value Per Share | $ / shares	$ 0.001
Common Stock, Shares Authorized	20,000,000
Common Stock, Shares, Outstanding	6,102,630

Condensed Statements of Stockho

Condensed Statements of Stockholders' Equity - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Dec. 31, 2019	$ 6,018	$ 61,066,971	$ (47,838,763)	$ 13,234,226
Common Stock, Shares, Outstanding, Beginning Balance at Dec. 31, 2019	6,017,674
Cancellation of restricted stock	$ (3)	3
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited	(3,200)
Stock-based compensation		132,065		132,065
Net loss			(90,327)	(90,327)
Common Stock, Shares, Outstanding, Ending Balance at Mar. 31, 2020	6,009,507
Repurchase of common stock	$ (5)	(8,491)		(8,496)
Ending balance, value at Mar. 31, 2020	$ 6,010	61,190,548	(47,929,090)	13,267,468
Stock Repurchased and Retired During Period, Shares	(4,967)
Beginning balance, value at Dec. 31, 2019	$ 6,018	61,066,971	(47,838,763)	13,234,226
Common Stock, Shares, Outstanding, Beginning Balance at Dec. 31, 2019	6,017,674
Conversion of convertible note
Stock-based compensation				392,985
Net loss				$ (4,861,136)
Common Stock, Shares, Outstanding, Ending Balance at Sep. 30, 2020				6,050,655
Repurchase of common stock				$ (8,025)
Ending balance, value at Sep. 30, 2020	$ 6,051	61,525,589	(52,699,899)	8,831,741
Beginning balance, value at Mar. 31, 2020	$ 6,010	61,190,548	(47,929,090)	13,267,468
Common Stock, Shares, Outstanding, Beginning Balance at Mar. 31, 2020	6,009,507
Cancellation of restricted stock	$ (1)	472		471
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited	(398)
Stock-based compensation		131,369		131,369
Net loss			(768,023)	(768,023)
Common Stock, Shares, Outstanding, Ending Balance at Jun. 30, 2020	6,009,109
Ending balance, value at Jun. 30, 2020	$ 6,009	61,322,389	(48,697,113)	12,631,285
Stock options exercised	$ 42	73,649		73,691
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	41,546
Stock-based compensation		129,551		129,551
Net loss			(4,002,786)	$ (4,002,786)
Common Stock, Shares, Outstanding, Ending Balance at Sep. 30, 2020				6,050,655
Ending balance, value at Sep. 30, 2020	6,051	61,525,589	(52,699,899)	$ 8,831,741
Beginning balance, value at Dec. 31, 2020	$ 6,103	61,733,522	(51,117,364)	$ 10,622,261
Common Stock, Shares, Outstanding, Beginning Balance at Dec. 31, 2020	6,102,630			6,102,630
Vesting of restricted stock	$ 39	(39)
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures	38,775
Cancellation of restricted stock	$ (3)	3
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited	(2,755)
Stock options exercised	$ 713	1,710,945		1,711,658
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	713,349
Issuance of common stock for intangible assets	$ 184	1,686,956		1,687,140
Stock Issued During Period, Shares, Acquisitions	184,332
Conversion of convertible note	$ 89	129,911		130,000
Stock Issued During Period, Shares, Conversion of Convertible Securities	89,040
Stock-based compensation		148,772		148,772
Net loss			202,902	202,902
Common Stock, Shares, Outstanding, Ending Balance at Mar. 31, 2021	7,125,371
Ending balance, value at Mar. 31, 2021	$ 7,125	65,410,070	(50,914,462)	14,502,733
Beginning balance, value at Dec. 31, 2020	$ 6,103	61,733,522	(51,117,364)	$ 10,622,261
Common Stock, Shares, Outstanding, Beginning Balance at Dec. 31, 2020	6,102,630			6,102,630
Conversion of convertible note				$ 130,000
Stock-based compensation				504,676
Net loss				$ 3,473,635
Common Stock, Shares, Outstanding, Ending Balance at Sep. 30, 2021				7,174,363
Repurchase of common stock				$ (1,176)
Ending balance, value at Sep. 30, 2021	$ 7,174	65,915,139	(47,643,729)	18,278,584
Beginning balance, value at Mar. 31, 2021	$ 7,125	65,410,070	(50,914,462)	14,502,733
Common Stock, Shares, Outstanding, Beginning Balance at Mar. 31, 2021	7,125,371
Vesting of restricted stock	$ 1	(1)
Cancellation of restricted stock	$ (3)	3
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited	(3,250)
Stock options exercised	$ 16	66,873		66,889
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	16,063
Stock-based compensation		172,008		172,008
Net loss			2,627,107	2,627,107
Restricted Stock, Shares Issued Net of Shares for Tax Withholdings	900
Repurchase of common stock		(1,176)		(1,176)
Ending balance, value at Jun. 30, 2021	7,139	65,647,777	(48,287,355)	17,367,561
Cancellation of restricted stock	$ (3)	3
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited	(3,250)
Stock options exercised	$ 38	83,463		83,501
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	38,529
Stock-based compensation		183,896		183,896
Net loss			643,626	$ 643,626
Common Stock, Shares, Outstanding, Ending Balance at Sep. 30, 2021				7,174,363
Ending balance, value at Sep. 30, 2021	$ 7,174	$ 65,915,139	$ (47,643,729)	$ 18,278,584

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Operating activities
Net income (loss)	$ 3,473,635	$ (4,861,136)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Stock-based compensation	504,676	392,985
Depreciation and amortization	555,900	436,970
Amortization of debt discount	24,819
Deferred tax benefits	(1,610,000)
Goodwill impairment charges		4,427,000
Changes in operating assets and liabilities:
Accounts receivable	(590,613)	477,591
Inventories	(1,238,694)	(183,406)
Prepaid expenses and other current assets	(266,043)	(4,916)
Other assets	(24,813)
Accounts payable and accrued expenses	148,111	(69,904)
Accrued payroll and related expenses	327,427	(164,158)
Net deferred revenue on shipments to distributors	(42,270)	1,017
Deferred service revenue	(17,989)	(18,426)
Net change in operating lease	(61,133)	(46,872)
Net cash provided by operating activities	1,183,013	386,745
Investing activities
Purchases of equipment	(562,910)	(374,538)
Net cash used in investing activities	(562,910)	(374,538)
Financing activities
Payments on finance leases		(8,291)
Repurchase and retirement of common stock	(1,176)	(8,025)
Proceeds from borrowings under bank line of credit agreement		5,630,000
Repayments of borrowings under bank line of credit agreement		(7,042,449)
Proceeds from note payable	1,000,000	1,208,700
Repayments of note payable	(250,000)	(150,000)
Repayments of bank term loan		(333,333)
Proceeds from subordinated convertible notes payable, net of discount		168,645
Proceeds from subordinated convertible notes payable, net of discount-related party		1,264,840
Stock options exercised	1,862,048	73,691
Net cash provided by financing activities	2,610,872	803,778
Net increase in cash and cash equivalents	3,230,975	815,985
Cash and cash equivalents at beginning of period	2,121,763	958,860
Cash and cash equivalents at end of period	5,352,738	1,774,845
Supplemental disclosure of cash flow information
Cash paid for interest	132,036	42,403
Non-cash investing and financing activities
Conversion of note payable	130,000
Acquisition of intangible assets	$ 1,909,433

NOTE 1 _ Basis of Presentation

NOTE 1 — Basis of Presentation	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
NOTE 1 — Basis of Presentation	NOTE 1 — Basis of Presentation The accompanying unaudited condensed financial statements of Socket Mobile, Inc. (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring accruals considered necessary for fair presentation have been included. The results of operations for the interim periods are not necessarily indicative of the operating results for the full fiscal year or any future period. These financial statements should be read in conjunction with the audited financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. We continue to monitor developments of the COVID-19 pandemic. The extent of the impact of the COVID-19 pandemic to our business, operating results, cash flows, liquidity and financial condition will be primarily driven by the severity and duration of the pandemic, the impact of new strains and variants of the coronavirus, the pandemic’s impact on the global economy and the administration and effectiveness of vaccines. Those primary drivers are beyond our knowledge and control, and as a result, it is difficult to predict the cumulative impact that the pandemic will have on our future sales, operating results, cash flows and financial condition. Furthermore, the impact to our business, operating results, cash flows, liquidity and financial condition may be further adversely impacted if the COVID-19 global pandemic continues to exist or worsens for a prolonged period of time.

NOTE 2 _ Summary of Significant

NOTE 2 — Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
NOTE 2 — Summary of Significant Accounting Policies	NOTE 2 — Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates, and such differences may be material to the financial statements. Cash Equivalents and Fair Value of Financial Instruments The Company considers all highly liquid investments purchased with a maturity date of 90 days or less at date of purchase to be cash equivalents. At September 30, 2021 and December 31, 2020, all of the Company’s cash and cash equivalents consisted of amounts held in demand deposit accounts in banks. The aggregate cash balance on deposit in these accounts are insured by the Federal Deposit Insurance Corporation up to $250,000. The Company’s cash balance on deposit in these accounts may, at times, exceed the federally insured limits. The Company has never experienced any losses in such accounts. The carrying value of the Company’s cash and cash equivalents, accounts receivable, accounts payable, debt and foreign exchange contracts approximate fair value due to the relatively short period of time to maturity. SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS (Unaudited) September 30, 2021 Revenue Recognition and Deferred Revenue With the adoption of ASC 606 “Revenue from Contracts with Customers” in January 2017, the Company recognizes revenue on sales to distributors when shipping of product is completed and title transfers to distributor, less a reserve for estimated product returns (sales and cost of sales). The reserves are based on estimates of future returns calculated from actual return history, primarily from stock rotations, plus knowledge of pending returns outside of the norm. At September 30, 2021, the deferred revenue and deferred cost on shipments to distributors were $ 390,930 152,625 450,591 170,016 The Company also earns revenue from its SocketCare extended warranty program, which provides extended warranty and accidental breakage coverage for selected products. For the quarters ended September 30, 2021 and 2020, SocketCare revenue was approximately $ 6,300 8,100 36,300 Cost of Sales and Gross Margins Cost of sales primarily consists of the costs to manufacture our products, including the costs of materials, contract manufacturing, shipping costs, personnel and related expenses including stock-based compensation, equipment and facility expenses, warranty costs and inventory excess and obsolete provisions. The factors that impact our gross margins are the cost of materials, the mix of products and the extent to which we are able to efficiently utilize our manufacturing capacity. Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842), which requires a lessee to recognize a liability representing future lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. For operating leases, a lessee is required to recognize at inception a right-of-use asset and a lease liability equal to the net present value of the lease payments, with lease expense recognized over the lease term on a straight-line basis. For leases with a term of twelve months or less, ASU 2016-02 allows a reporting entity to make an accounting policy election to not recognize a right-of-use asset and a lease liability, and to recognize lease expense on a straight-line basis. The Company adopted ASU 2016-02 effective January 1, 2019. At September 30, 2021, the balances of right-of-use assets and liabilities for the operating lease were $ 313,293 384,180 609,331 741,351 SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS (Unaudited) September 30, 2021 Goodwill In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The amendments in this update eliminate Step 2 from the goodwill impairment test. The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The Company tests its goodwill for impairment annually as of September 30th or more frequently when events or circumstances indicate that the carrying value of the Company’s single reporting unit more likely than not exceeds its fair value. The Company wrote off its entire goodwill of $ 4.4 million Recently Issued Financial Accounting Standards From time to time, new accounting pronouncements are issued by the FASB or other standards setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, management believes that the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s financial position, results of operations or cash flows upon adoption.

NOTE 3 _ Acquisition of Intangi

NOTE 3 — Acquisition of Intangible Assets	9 Months Ended
	Sep. 30, 2021
Business Combination and Asset Acquisition [Abstract]
NOTE 3 — Acquisition of Intangible Assets	NOTE 3 — Acquisition of Intangible Assets On February 26, 2021 Under the 2021 Technology Transfer Agreement, the Company acquired an irrevocable, perpetual, non-exclusive, transferable, worldwide, unlimited, unrestricted, royalty-free, fully paid-up right and license to SpringCard’s Contactless Technology Package for use in the Company’s Contactless Reader/Writer products, D600 and S550. SpringCard received 184,332 50,000 10.85 March 29, 2021 7.65 192,293 The Unaudited Condensed Balance Sheets include the intangible assets of the acquired technology at the carrying amount, net of amortization of $ 1,845,785 SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS (Unaudited) September 30, 2021 The SpringCard intangible assets will be amortized over their estimated useful lives of fifteen years on a straight-line basis, which commenced on April 1, 2021. The estimated future amortization of intangible assets is as follows: Fiscal Year Amount 2021 (October 1, 2021 to December 31, 2021) $ 31,824 2022 127,296 2023 127,296 2024 127,296 2025 127,296 Thereafter 1,304,777 Total $ 1,845,785

NOTE 4 _ Inventories

NOTE 4 — Inventories	9 Months Ended
	Sep. 30, 2021
Inventory Disclosure [Abstract]
NOTE 4 — Inventories	NOTE 4 — Inventories Inventories consist principally of raw materials and sub-assemblies, which are stated at the lower of cost (first-in, first-out) or market. Inventories at September 30, 2021 and December 31, 2020 were as follows: September 30, December 31, 2021 2020 Raw materials and sub-assemblies $ 4,880,494 $ 3,642,377 Finished goods 359,985 281,104 Inventory reserves 805,943 727,639 Inventory, net $ 4,434,536 $ 3,195,842

NOTE 5 _ Bank Financing Arrange

NOTE 5 — Bank Financing Arrangements	9 Months Ended
	Sep. 30, 2021
Debt Disclosure [Abstract]
NOTE 5 — Bank Financing Arrangements	NOTE 5 — Bank Financing Arrangements The Company initially entered into a Business Financing Agreement with Western Alliance Bank (the “Bank”), an Arizona corporation, on February 27, 2014, and this agreement has been amended and extended through the years. Seventh Financing Agreement On January 8, 2020, the Company entered into the Seventh Business Financing Modification Agreement with the Bank which extended the maturity date of the Company’s revolving line of credit to January 31, 2022. Eighth Financing Agreement On August 28, 2020, the Company entered into the Eighth Business Financing Modification Agreement and Consent with the Bank. The Bank consented to the issuance of subordinated debt in the amount less than $2,000,000, at an annual interest rate of less than 10%, such debt maturing in no sooner than 3 years. SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS (Unaudited) September 30, 2021 Amended and Restated Business Financing Agreement On January 29, 2021 2.0 million 1.0 million January 31, 2023 Amounts outstanding under the CalCap Loan as of September 30, 2021 are as follows: September 30, 2021 Current portion of CalCap Loan $ 500,000 Long-term portion of CalCap Loan 250,000 CalCap Loan $ 750,000 Interest expense on the CalCap Loan for the three and nine months ended September 30, 2021 was $ 10,104 27,656 2,083 During the nine months ended September 30, 2020, total repayment of the term loan, initiated in March 2018 (the “Term Loan”), was $ 333,333 5,630,000 7,042.449 Interest expense on the Term Loan for the three and nine months ended September 30, 2020 was $ 229 6,152 1,077 20,461 373

NOTE 6 _ Secured Subordinated C

NOTE 6 — Secured Subordinated Convertible Notes Payable	9 Months Ended
	Sep. 30, 2021
Debt Disclosure [Abstract]
NOTE 6 — Secured Subordinated Convertible Notes Payable	NOTE 6 — Secured Subordinated Convertible Notes Payable On August 31, 2020, the Company completed a secured subordinated convertible note financing of $ 1,530,000 1,350,000 The funds raised are used to increase the Company’s working capital balances. The secured subordinated convertible notes (the “Notes”) have a three-year term that accrue interest at 10 August 30, 2023 1.46 SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS (Unaudited) September 30, 2021 Total issuance costs associated with the financing are $ 96,515 24,819 63,424 During the nine months ended September 30, 2021, two noteholders elected to convert Note principal of $ 130,000 Total interest expense recognized related to the Notes for the three and nine months ended September 30, 2021 was $ 43,560 131,281

NOTE 7 _ Segment Information an

NOTE 7 — Segment Information and Concentrations	9 Months Ended
	Sep. 30, 2021
Segment Reporting [Abstract]
NOTE 7 — Segment Information and Concentrations	NOTE 7 — Segment Information and Concentrations Segment Information The Company operates in the mobile barcode scanning and RFID/NFC data capture market. Mobile scanning typically consists of mobile devices such as smartphones or tablets, with mobile scanning or NFC peripherals for data collection, and third-party vertical applications software. The Company distributes its products in the United States and foreign countries primarily through distributors and resellers. The Company markets its products primarily through application developers whose applications are designed to work with the Company’s products. Revenues by geographic areas for the three and nine months ended September 30, 2021 and 2020 were as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Revenues: Americas $ 4,641,767 $ 3,290,992 $ 12,958,256 $ 8,676,626 Europe 967,752 567,977 2,621,278 1,383,518 Asia Pacific 709,525 249,769 1,505,379 984,304 Total revenues $ 6,319,044 $ 4,108,738 $ 17,084,913 $ 11,044,448 Export revenues are attributable to countries based on the location of the Company’s customers. The Company does not hold long-lived assets in foreign locations. SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS (Unaudited) September 30, 2021 Major Customers Customers who accounted for at least 10% of the Company’s total revenues for the three and nine months ended September 30, 2021 and 2020 were as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Ingram Micro Inc. 33 % 30 % 29 % 32 % BlueStar, Inc. 15 % 29 % 25 % 23 % ScanSource, Inc. 14 % – * 11 % – * Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk include cash, cash equivalents and accounts receivable. The Company invests its cash in demand deposit accounts in banks and the Company has not experienced losses on the investments. The Company’s trade accounts receivables are primarily with distributors. The Company performs ongoing credit evaluations of its customers’ financial condition, but the Company generally requires no collateral. Reserves are maintained for potential credit losses, and such losses have been within management’s expectations. Customers who accounted for at least 10% of the Company’s accounts receivable balances at September 30, 2021 and December 31, 2020 were as follows: September 30, December 31, 2021 2020 Ingram Micro, Inc. 37 % 34 % ScanSource, Inc. 26 % 13 % BlueStar, Inc. 16 % 29 % Bluestar Europe Distribution BV — * 11 % * Customer accounted for less than 10% of the Company accounts receivable balances Concentration of Suppliers Several of the Company’s component parts are produced by a sole or limited number of suppliers. Shortages could occur in these essential materials due to increased demand, or due to an interruption of supply. Suppliers may choose to restrict credit terms or require advance payments causing delays in the procurement of essential materials. The Company’s inability to procure certain materials could have a material adverse effect on the Company’s results. For the three months ended September 30, 2021 and 2020, the top three suppliers accounted for 56 64 14 15 SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS (Unaudited) September 30, 2021

NOTE 8 _ Stock-Based Compensati

NOTE 8 — Stock-Based Compensation	9 Months Ended
	Sep. 30, 2021
Share-based Payment Arrangement [Abstract]
NOTE 8 — Stock-Based Compensation	NOTE 8 — Stock-Based Compensation The Company recognizes the compensation cost in the financial statements for all stock-based awards to employees, including grants of stock options and restricted stock, based on the fair value of the awards as of the date that the awards are issued. Compensation cost for stock-based awards is recognized on a straight-line basis over the vesting period. The fair values of stock options are generally determined using a binomial lattice valuation model which incorporates assumptions about expected volatility, risk-free interest rate, dividend yield, and expected life. There were 182,000 37,000 The shares of restricted stock are issued to employees and consultants and are held in escrow by the Company until the shares vest on the schedule of 15% after year one, 20% after year two, 25% after year three and 40% after year four, subject to the employees and consultants being a continuing service provider on each of the vesting dates. If the service or employment is terminated, unvested shares revert to the Company. Shares are registered at grant, so share owners may vote at the annual stockholder meeting. Shares of restricted stock are granted at zero cost basis. Compensation cost of the restricted stock is recognized on a straight-line basis over the 4-year vesting period. For the nine months ended September 30, 2021 and 2020, the Company awarded 306,425 389,680 660,758 Total stock-based compensation expense for the three and nine months ended September 30, 2021 was $ 183,896 504,676 129,551 392,985

NOTE 9 _ Net Income (Loss) Per

NOTE 9 — Net Income (Loss) Per Share	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
NOTE 9 — Net Income (Loss) Per Share	NOTE 9 — Net Income (Loss) Per Share The following table sets forth the reconciliation of basic shares to diluted shares and the computation of basic and diluted net income (loss) per share: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Numerator: Net income (loss) $ 643,626 $ (4,002,786 )* $ 3,473,635 $ (4,861,136 )* Net income (loss) allocated to restricted stock award (55,001 ) 264,275 (297,932 ) 263,128 Adjusted net income (loss) for basic earnings per share $ 588,625 $ (3,738,511 )* $ 3,175,703 $ (4,598,008 )* Convertible note interest 43,560 — 132,315 — Adjusted net income (loss) before interest for diluted earnings per share $ 632,185 $ (3,738,511 )* $ 3,308,018 $ (4,598,008 )* Denominator: Weighted average shares outstanding used in computing net income (loss) per share: Basic 7,162,924 6,037,559 6,927,837 6,020,363 Effect of dilutive stock options 817,556 — 1,045,654 — Effect of convertible note shares 958,904 — 958,904 — Diluted 8,939,384 6,037,559 8,932,395 6,020,363 Net income (loss) per share applicable to common stockholders: Basic $ 0.08 $ (0.62 )* $ 0.46 $ (0.76 )* Diluted $ 0.07 $ (0.62 )* $ 0.37 $ (0.76 )* *Amounts for 2020 include goodwill impairment charges of $4.43 million recorded as of September 30, 2020. Additional information regarding goodwill impairment is contained in “Note 2 - Summary of Significant Accounting Policies.” SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS (Unaudited) September 30, 2021 In the three and nine months ended September 30, 2021, 45,000 50,000 For the three and nine months ended September 30, 2020, the shares used in computing diluted net loss per share do not include 2,599,187 1,047,945

NOTE 10 _ Income Taxes

NOTE 10 — Income Taxes	9 Months Ended
	Sep. 30, 2021
Income Tax Disclosure [Abstract]
NOTE 10 — Income Taxes	NOTE 10 — Income Taxes In the first nine months of 2021, the differences between the financial income and taxable income included a tax deduction of $ 8.13 0.50 5.76 The Company recorded no deferred tax benefit for the losses in the nine months ended September 30, 2020.

NOTE 11 _ Commitments and Conti

NOTE 11 — Commitments and Contingencies	9 Months Ended
	Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
NOTE 11 — Commitments and Contingencies	NOTE 11 — Commitments and Contingencies Operating Lease Obligations The Company leases office space under a non-cancelable operating lease that provides the Company approximately 37,100 square feet in Newark, California. The lease agreement expires on June 30, 2022. Monthly base rent increases four percent per year on July 1 st SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS (Unaudited) September 30, 2021 In January 2019, the Company adopted ASU 2016-02, Leases (Topic 842) and recognized a right-to-use asset and a lease liability using a discount rate of 6.25% per annum. On September 30, 2021, the balances of right-of-use assets and liabilities for the operating lease were approximately $ 0.31 0.38 0.61 0.74 The Newark office space lease expense was $ 103,208 309,625 Cash payments included in the measurement of the Company’s operating lease liabilities were $ 131,395 384,427 123,478 356,513 Future minimum lease payments under the operating lease at September 30, 2021 are shown below: Annual minimum payments: Amount 2021 (October 1 to December 31, 2021) 131,395 2022 (through June 30, 2022) 262,789 Total minimum payments 394,184 Less: Present value factor (10,004 ) Total operating lease liabilities 384,180 Less: Current portion of operating lease (384,180 ) Long-term portion of operating lease — Purchase Commitments As of September 30, 2021, the Company has non-cancelable purchase commitments for inventory to be used in the ordinary course of business of approximately $ 9,697,000 Legal Matters The Company is subject to disputes, claims, requests for indemnification and lawsuits arising in the ordinary course of business. Under the indemnification provisions of the Company’s customer agreements, the Company routinely agrees to indemnify and defend its customers against infringement of any patent, trademark, copyright, trade secrets, or other intellectual property rights arising from customers’ legal use of the Company’s products or services. The exposure to the Company under these indemnification provisions is generally limited to the total amount paid for the indemnified products. However, certain indemnification provisions potentially expose the Company to losses in excess of the aggregate amount received from the customer. To date, there have been no claims against the Company by its customers pertaining to such indemnification provisions, and no amounts have been recorded. The Company is currently not a party to any material legal proceedings. SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS (Unaudited) September 30, 2021

NOTE 12 _ Subsequent Events

NOTE 12 — Subsequent Events	9 Months Ended
	Sep. 30, 2021
Subsequent Events [Abstract]
NOTE 12 — Subsequent Events	NOTE 12 — Subsequent Events The Company evaluated subsequent events and transactions that occurred between October 1, 2021 through the date of this report, the date that the unaudited condensed financial statements were issued. Other than described below, the Company did not identify any subsequent events that would have required adjustment or disclosure in the unaudited condensed financial statements. 5,687 The Company issued 4,692

NOTE 2 _ Summary of Significa_2

NOTE 2 — Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates, and such differences may be material to the financial statements.
Cash Equivalents and Fair Value of Financial Instruments	Cash Equivalents and Fair Value of Financial Instruments The Company considers all highly liquid investments purchased with a maturity date of 90 days or less at date of purchase to be cash equivalents. At September 30, 2021 and December 31, 2020, all of the Company’s cash and cash equivalents consisted of amounts held in demand deposit accounts in banks. The aggregate cash balance on deposit in these accounts are insured by the Federal Deposit Insurance Corporation up to $250,000. The Company’s cash balance on deposit in these accounts may, at times, exceed the federally insured limits. The Company has never experienced any losses in such accounts. The carrying value of the Company’s cash and cash equivalents, accounts receivable, accounts payable, debt and foreign exchange contracts approximate fair value due to the relatively short period of time to maturity.
Revenue Recognition and Deferred Revenue	Revenue Recognition and Deferred Revenue With the adoption of ASC 606 “Revenue from Contracts with Customers” in January 2017, the Company recognizes revenue on sales to distributors when shipping of product is completed and title transfers to distributor, less a reserve for estimated product returns (sales and cost of sales). The reserves are based on estimates of future returns calculated from actual return history, primarily from stock rotations, plus knowledge of pending returns outside of the norm. At September 30, 2021, the deferred revenue and deferred cost on shipments to distributors were $ 390,930 152,625 450,591 170,016 The Company also earns revenue from its SocketCare extended warranty program, which provides extended warranty and accidental breakage coverage for selected products. For the quarters ended September 30, 2021 and 2020, SocketCare revenue was approximately $ 6,300 8,100 36,300
Cost of Sales and Gross Margins	Cost of Sales and Gross Margins Cost of sales primarily consists of the costs to manufacture our products, including the costs of materials, contract manufacturing, shipping costs, personnel and related expenses including stock-based compensation, equipment and facility expenses, warranty costs and inventory excess and obsolete provisions. The factors that impact our gross margins are the cost of materials, the mix of products and the extent to which we are able to efficiently utilize our manufacturing capacity.
Leases	Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842), which requires a lessee to recognize a liability representing future lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. For operating leases, a lessee is required to recognize at inception a right-of-use asset and a lease liability equal to the net present value of the lease payments, with lease expense recognized over the lease term on a straight-line basis. For leases with a term of twelve months or less, ASU 2016-02 allows a reporting entity to make an accounting policy election to not recognize a right-of-use asset and a lease liability, and to recognize lease expense on a straight-line basis. The Company adopted ASU 2016-02 effective January 1, 2019. At September 30, 2021, the balances of right-of-use assets and liabilities for the operating lease were $ 313,293 384,180 609,331 741,351
Goodwill	Goodwill In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The amendments in this update eliminate Step 2 from the goodwill impairment test. The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The Company tests its goodwill for impairment annually as of September 30th or more frequently when events or circumstances indicate that the carrying value of the Company’s single reporting unit more likely than not exceeds its fair value. The Company wrote off its entire goodwill of $ 4.4 million
Recently Issued Financial Accounting Standards	Recently Issued Financial Accounting Standards From time to time, new accounting pronouncements are issued by the FASB or other standards setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, management believes that the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s financial position, results of operations or cash flows upon adoption.

NOTE 3 _ Acquisition of Intan_2

NOTE 3 — Acquisition of Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2021
Business Combination and Asset Acquisition [Abstract]
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]	Fiscal Year Amount 2021 (October 1, 2021 to December 31, 2021) $ 31,824 2022 127,296 2023 127,296 2024 127,296 2025 127,296 Thereafter 1,304,777 Total $ 1,845,785

NOTE 4 _ Inventories (Tables)

NOTE 4 — Inventories (Tables)	9 Months Ended
	Sep. 30, 2021
Inventory Disclosure [Abstract]
Schedule of Inventory, Current [Table Text Block]	September 30, December 31, 2021 2020 Raw materials and sub-assemblies $ 4,880,494 $ 3,642,377 Finished goods 359,985 281,104 Inventory reserves 805,943 727,639 Inventory, net $ 4,434,536 $ 3,195,842

NOTE 5 _ Bank Financing Arran_2

NOTE 5 — Bank Financing Arrangements (Tables)	9 Months Ended
	Sep. 30, 2021
Debt Disclosure [Abstract]
Schedule of Debt [Table Text Block]	September 30, 2021 Current portion of CalCap Loan $ 500,000 Long-term portion of CalCap Loan 250,000 CalCap Loan $ 750,000

NOTE 7 _ Segment Information _2

NOTE 7 — Segment Information and Concentrations (Tables)	9 Months Ended
	Sep. 30, 2021
Segment Reporting [Abstract]
Revenue from External Customers by Geographic Areas [Table Text Block]	Three Months Ended Nine Months Ended 2021 2020 2021 2020 Revenues: Americas $ 4,641,767 $ 3,290,992 $ 12,958,256 $ 8,676,626 Europe 967,752 567,977 2,621,278 1,383,518 Asia Pacific 709,525 249,769 1,505,379 984,304 Total revenues $ 6,319,044 $ 4,108,738 $ 17,084,913 $ 11,044,448
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block]	Three Months Ended Nine Months Ended 2021 2020 2021 2020 Ingram Micro Inc. 33 % 30 % 29 % 32 % BlueStar, Inc. 15 % 29 % 25 % 23 % ScanSource, Inc. 14 % – * 11 % – *
Concentration of Credit Risk	September 30, December 31, 2021 2020 Ingram Micro, Inc. 37 % 34 % ScanSource, Inc. 26 % 13 % BlueStar, Inc. 16 % 29 % Bluestar Europe Distribution BV — * 11 % * Customer accounted for less than 10% of the Company accounts receivable balances

NOTE 9 _ Net Income (Loss) Pe_2

NOTE 9 — Net Income (Loss) Per Share (Tables)	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Numerator: Net income (loss) $ 643,626 $ (4,002,786 )* $ 3,473,635 $ (4,861,136 )* Net income (loss) allocated to restricted stock award (55,001 ) 264,275 (297,932 ) 263,128 Adjusted net income (loss) for basic earnings per share $ 588,625 $ (3,738,511 )* $ 3,175,703 $ (4,598,008 )* Convertible note interest 43,560 — 132,315 — Adjusted net income (loss) before interest for diluted earnings per share $ 632,185 $ (3,738,511 )* $ 3,308,018 $ (4,598,008 )* Denominator: Weighted average shares outstanding used in computing net income (loss) per share: Basic 7,162,924 6,037,559 6,927,837 6,020,363 Effect of dilutive stock options 817,556 — 1,045,654 — Effect of convertible note shares 958,904 — 958,904 — Diluted 8,939,384 6,037,559 8,932,395 6,020,363 Net income (loss) per share applicable to common stockholders: Basic $ 0.08 $ (0.62 )* $ 0.46 $ (0.76 )* Diluted $ 0.07 $ (0.62 )* $ 0.37 $ (0.76 )* *Amounts for 2020 include goodwill impairment charges of $4.43 million recorded as of September 30, 2020. Additional information regarding goodwill impairment is contained in “Note 2 - Summary of Significant Accounting Policies.”

NOTE 11 _ Commitments and Con_2

NOTE 11 — Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	Annual minimum payments: Amount 2021 (October 1 to December 31, 2021) 131,395 2022 (through June 30, 2022) 262,789 Total minimum payments 394,184 Less: Present value factor (10,004 ) Total operating lease liabilities 384,180 Less: Current portion of operating lease (384,180 ) Long-term portion of operating lease —

NOTE 2 _ Summary of Significa_3

NOTE 2 — Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Product Information [Line Items]
Deferred Revenue, Current	$ 390,930		$ 390,930		$ 450,591
Deferred Costs and Other Assets	152,625		152,625		170,016
Revenues	6,319,044	$ 4,108,738	17,084,913	$ 11,044,448
Operating Lease, Right-of-Use Asset	313,293		313,293		609,331
Operating Lease, Liability	384,180		384,180		$ 741,351
Goodwill, Impairment Loss		4,427,000		$ 4,427,000
Service [Member]
Product Information [Line Items]
Deferred Revenue	36,300		$ 36,300
Service [Member]
Product Information [Line Items]
Revenues	$ 6,300	$ 8,100

Amortization (Details)

Amortization (Details)	Sep. 30, 2021USD ($)
Business Combination and Asset Acquisition [Abstract]
2021 (October 1, 2021 to December 31, 2021)	$ 31,824
2022	127,296
2023	127,296
2024	127,296
2025	127,296
Thereafter	1,304,777
Total	$ 1,845,785

NOTE 3 _ Acquisition of Intan_3

NOTE 3 — Acquisition of Intangible Assets (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2021	Mar. 29, 2021	Feb. 26, 2021	Dec. 31, 2020
Business Combination and Asset Acquisition [Abstract]
Business Acquisition, Date of Acquisition Agreement	Feb. 26, 2021
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares	184,332
Noncash or Part Noncash Acquisition, Noncash Financial or Equity Instrument Consideration, Warrants Issued	50,000
Business Acquisition, Share Price		$ 7.65	$ 10.85
Business Acquisition, Effective Date of Acquisition	Mar. 29, 2021
Payments to Acquire Businesses, Gross	$ 192,293
Intangible Assets, Net (Excluding Goodwill)	$ 1,845,785

Inventory (Details)

Inventory (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Raw materials and sub-assemblies	$ 4,880,494	$ 3,642,377
Finished goods	359,985	281,104
Inventory reserves	(805,943)	(727,639)
Inventory, net	$ 4,434,536	$ 3,195,842

CalCap loan balance (Details)

CalCap loan balance (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Debt Disclosure [Abstract]
Current portion of CalCap Loan	$ 500,000
Long-term portion of CalCap Loan	250,000
CalCap Loan	$ 750,000

NOTE 5 _ Bank Financing Arran_3

NOTE 5 — Bank Financing Arrangements (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Jan. 29, 2021
Line of Credit Facility [Line Items]
Line of Credit Facility, Initiation Date			Jan. 29, 2021
Line of Credit Facility, Expiration Date			Jan. 31, 2023
Interest Expense	$ 50,147	$ 23,864	$ 150,276	$ 51,505
Interest Payable	373		373
Repayments of Debt			250,000	150,000
Proceeds from Bank Debt				5,630,000
Repayments of Bank Debt				7,042,449
Domestic Revolving Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity					$ 2,000,000
Term Loan [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity					$ 1,000,000
Interest Expense	10,104	229	27,656	6,152
Interest Payable	$ 2,083		$ 2,083
Repayments of Debt				333,333
Credit Line [Member]
Line of Credit Facility [Line Items]
Interest Expense		$ 1,077		$ 20,461

NOTE 6 _ Secured Subordinated_2

NOTE 6 — Secured Subordinated Convertible Notes Payable (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended		36 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Aug. 30, 2023	Aug. 31, 2020	Aug. 28, 2020
Short-term Debt [Line Items]
Convertible Subordinated Debt						$ 1,530,000
Subordinated Borrowing, Interest Rate					10.00%
Subordinated Borrowing, Due Date			Aug. 30, 2023
Debt Instrument, Convertible, Conversion Price							$ 1.46
Payments of Debt Issuance Costs		$ 96,515
Amortization of Debt Discount (Premium)			$ 24,819
Debt Instrument, Unamortized Discount (Premium), Net	$ 63,424		63,424
Conversion of Stock, Amount Converted			130,000
[custom:InterestOnConvertibleDebt]	$ 43,560		$ 131,281
Related Party [Member]
Short-term Debt [Line Items]
Convertible Subordinated Debt						$ 1,350,000

Revenue By Geographic Areas (De

Revenue By Geographic Areas (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	$ 6,319,044	$ 4,108,738	$ 17,084,913	$ 11,044,448
Americas [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	4,641,767	3,290,992	12,958,256	8,676,626
EMEA [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	967,752	567,977	2,621,278	1,383,518
Asia Pacific [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	$ 709,525	$ 249,769	$ 1,505,379	$ 984,304

Major customers accounted for a

Major customers accounted for at least 10% of total revenues (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Ingram Micro [Member]
Revenue, Major Customer [Line Items]
ScanSource, Inc.	0.33	0.30	0.29	0.32
Blue Star [Member]
Revenue, Major Customer [Line Items]
ScanSource, Inc.	0.15	0.29	0.25	0.23
Scan Source [Member]
Revenue, Major Customer [Line Items]
ScanSource, Inc.	0.14		0.11

Concentration of Credit Risk (D

Concentration of Credit Risk (Details)	Sep. 30, 2021		Dec. 31, 2020
Ingram Micro [Member]
Revenue, Major Customer [Line Items]
Bluestar Europe Distribution BV	0.37		0.34
Scan Source [Member]
Revenue, Major Customer [Line Items]
Bluestar Europe Distribution BV	0.26		0.13
Blue Star [Member]
Revenue, Major Customer [Line Items]
Bluestar Europe Distribution BV	0.16		0.29
Bluestar Europe [Member]
Revenue, Major Customer [Line Items]
Bluestar Europe Distribution BV		[1]	0.11
[1]	Customer accounted for less than 10% of the Company accounts receivable balances

NOTE 7 _ Segment Information _3

NOTE 7 — Segment Information and Concentrations (Details Narrative) - Supplier Concentration Risk [Member]	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Revenue, Major Customer [Line Items]
Percentage of inventory purchases from top three suppliers	56.00%	64.00%
Accounts payable balances with a single supplier	14.00%		15.00%

NOTE 8 _ Stock-Based Compensa_2

NOTE 8 — Stock-Based Compensation (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended						9 Months Ended
	Nov. 12, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-based Payment Arrangement [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures								182,000	37,000
Stock Issued During Period, Shares, Restricted Stock Award, Gross	5,687							306,425	389,680
Common Stock, Other Shares, Outstanding		660,758						660,758
Share-based Payment Arrangement, Noncash Expense		$ 183,896	$ 172,008	$ 148,772	$ 129,551	$ 131,369	$ 132,065	$ 504,676	$ 392,985

Net Income (Loss) Per Share (De

Net Income (Loss) Per Share (Details) - USD ($)	3 Months Ended						9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Numerator:
Net income (loss)	$ 643,626	$ 2,627,107	$ 202,902	$ (4,002,786)	$ (768,023)	$ (90,327)	$ 3,473,635	$ (4,861,136)
Net income (loss) allocated to restricted stock award	(55,001)			264,275			(297,932)	263,128
Adjusted net income (loss) for basic earnings per share	588,625			(3,738,511)			3,175,703	(4,598,008)
Convertible note interest	43,560						132,315
Adjusted net income (loss) before interest for diluted earnings per share	$ 632,185			$ (3,738,511)			$ 3,308,018	$ (4,598,008)
Denominator: Weighted average shares outstanding used in computing net income (loss) per share:
Basic	7,162,924			6,037,559			6,927,837	6,020,363
Effect of dilutive stock options	817,556						1,045,654
Effect of convertible note shares	958,904						958,904
Diluted	8,939,384			6,037,559			8,932,395	6,020,363
Net income (loss) per share applicable to common stockholders:
Basic	$ 0.08			$ (0.62)			$ 0.46	$ (0.76)
Diluted	$ 0.07			$ (0.62)			$ 0.37	$ (0.76)

NOTE 9 _ Net Income (Loss) Pe_3

NOTE 9 — Net Income (Loss) Per Share (Details Narrative) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	50,000
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		1,047,945	45,000	1,047,945
Share-based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		2,599,187		2,599,187

NOTE 10 _ Income Taxes (Details

NOTE 10 — Income Taxes (Details Narrative) - USD ($)	3 Months Ended						9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Income Tax Effects Allocated Directly to Equity, Employee Stock Options							$ 8,130,000
Share-based Payment Arrangement, Noncash Expense	$ 183,896	$ 172,008	$ 148,772	$ 129,551	$ 131,369	$ 132,065	504,676	$ 392,985
Other Nonoperating Expense							$ 5,760,000

Future minimum lease payments (

Future minimum lease payments (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Annual minimum payments:
2021 (October 1 to December 31, 2021)	$ 131,395
2022 (through June 30, 2022)	262,789
Total minimum payments	394,184
Less: Present value factor	(10,004)
Total operating lease liabilities	384,180	$ 741,351
Less: Current portion of operating lease	(384,180)	(483,254)
Long-term portion of operating lease		$ 258,097

NOTE 11 _ Commitments and Con_3

NOTE 11 — Commitments and Contingencies (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Operating Lease, Right-of-Use Asset	$ 313,293		$ 313,293		$ 609,331
Operating Lease, Liability	384,180		384,180		$ 741,351
Operating Leases, Rent Expense	103,208		309,625
Operating Lease, Payments	131,395	$ 123,478	384,427	$ 356,513
Purchase Obligation, to be Paid, Year One	$ 9,697,000		$ 9,697,000

NOTE 12 _ Subsequent Events (De

NOTE 12 — Subsequent Events (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended				9 Months Ended
	Nov. 12, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Subsequent Events [Abstract]
Stock Issued During Period, Shares, Restricted Stock Award, Gross	5,687					306,425	389,680
Stock Issued During Period, Value, Stock Options Exercised	$ 4,692	$ 83,501	$ 66,889	$ 1,711,658	$ 73,691