Socket Mobile (SCKT) 10-Q 15 Aug 22 2022 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2022	Aug. 09, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2022
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2022
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	40675 Encyclopedia Circle
Entity Address, City or Town	Fremont
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94538
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		7,137,867

Condensed Statements of Operati

Condensed Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Statement [Abstract]
Revenues	$ 6,045,982	$ 5,952,890	$ 12,338,984	$ 10,765,869
Cost of revenues	3,010,300	2,697,747	6,175,640	4,936,683
Gross profit	3,035,682	3,255,143	6,163,344	5,829,186
Operating expenses:
Research and development	1,121,116	972,292	2,174,722	1,903,326
Sales and marketing	964,434	734,026	1,864,314	1,394,488
General and administrative	760,848	734,490	1,471,320	1,475,027
Total operating expenses	2,846,398	2,440,808	5,510,356	4,772,841
Operating income	189,284	814,335	652,988	1,056,345
Interest expense, net	45,005	51,428	90,611	100,129
Other income				10,082
Net income before income taxes	144,279	762,907	562,377	966,298
Income tax benefit (expense)	(40,320)	1,864,200	(116,485)	1,863,711
Net income	$ 103,959	$ 2,627,107	$ 445,892	$ 2,830,009
Net income per share:
Basic	$ 0.01	$ 0.34	$ 0.06	$ 0.38
Diluted	$ 0.01	$ 0.27	$ 0.05	$ 0.31
Weighted average shares outstanding:
Basic	7,219,646	7,128,768	7,225,641	6,808,339
Diluted	7,643,315	8,907,352	7,687,980	8,593,630

Condensed Balance Sheets

Condensed Balance Sheets - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 5,588,152	$ 6,095,886
Accounts receivable, net	3,391,412	2,576,240
Inventories, net	5,887,520	5,154,524
Prepaid expenses and other current assets	755,052	395,161
Deferred cost on shipments to distributors	237,668	158,977
Total current assets	15,859,804	14,380,788
Property and equipment:
Machinery and office equipment	2,455,865	2,436,897
Computer equipment	2,406,071	1,909,895
Property, plant, and equipment, gross	4,861,936	4,346,792
Accumulated depreciation	(3,541,898)	(3,277,979)
Property and equipment, net	1,320,038	1,068,813
Intangible assets, net	1,779,361	1,864,794
Other long-term assets	311,696	89,448
Deferred tax assets	7,843,934	7,960,419
Operating lease right-of-use asset	3,776,281	210,839
Total assets	30,891,114	25,575,101
Current liabilities:
Accounts payable and accrued expenses	3,306,390	2,169,055
Accrued payroll and related expenses	803,614	692,994
Deferred revenue on shipments to distributors	568,082	407,235
Short term portion of deferred service revenue	20,490	17,128
Note Payable – current portion	375,000	500,000
Subordinated convertible notes payable, net of discount	145,461	143,514
Subordinated convertible notes payable, net of discount-related party	1,215,933	1,201,334
Operating lease – current portion	369,071	258,097
Total current liabilities	6,804,041	5,389,357
Long-term portion of deferred service revenue	17,088	14,281
Operating lease - long-term portion	3,514,284
Long-term portion of note payable		125,000
Total liabilities	10,335,413	5,528,638
Commitments and contingencies
Stockholders’ equity:
Common stock	7,202	7,184
Additional paid-in capital	66,580,908	66,139,630
Treasury stock	377,950
Accumulated deficit	(45,654,459)	(46,100,351)
Total stockholders’ equity	20,555,701	20,046,463
Total liabilities and stockholders’ equity	$ 30,891,114	$ 25,575,101

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Common stock, authorized shares	20,000,000	20,000,000
Common stock, issued	7,293,254	7,183,874
Common stock, outstanding	7,202,341	7,183,874

Condensed Statements of Stockho

Condensed Statements of Stockholders' Equity - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Dec. 31, 2020	$ 6,103	$ 61,733,522		$ (51,117,364)	$ 10,622,261
Shares, Outstanding, Beginning Balance at Dec. 31, 2020	6,102,630
Vesting of restricted stock	$ 39	(39)
Vesting of restricted stock	38,775
Exercise of stock option	$ 713	1,710,945			1,711,658
Exercise of stock option	713,349
Stock-based compensation		148,772			148,772
Net income				202,902	202,902
Cancellation of restricted stock	$ (3)	3
Cancellation of restricted stock	(2,755)
Issuance of common stock for intangible assets	$ 184	1,686,956			1,687,140
Issuance of common stock for intangible assets	184,332
Conversion of convertible note	$ 89	129,911			130,000
Conversion of convertible note	89,040
Ending balance, value at Mar. 31, 2021	$ 7,125	65,410,070		(50,914,462)	14,502,733
Shares, Outstanding, Ending Balance at Mar. 31, 2021	7,125,371
Beginning balance, value at Dec. 31, 2020	$ 6,103	61,733,522		(51,117,364)	10,622,261
Shares, Outstanding, Beginning Balance at Dec. 31, 2020	6,102,630
Stock-based compensation					320,780
Net income					2,830,009
Conversion of convertible note					130,000
Ending balance, value at Jun. 30, 2021	$ 7,139	65,647,777		(48,287,355)	17,367,561
Shares, Outstanding, Ending Balance at Jun. 30, 2021	7,139,084
Beginning balance, value at Mar. 31, 2021	$ 7,125	65,410,070		(50,914,462)	14,502,733
Shares, Outstanding, Beginning Balance at Mar. 31, 2021	7,125,371
Vesting of restricted stock	$ 1	(1)
Vesting of restricted stock	900
Exercise of stock option	$ 16	66,873			66,889
Exercise of stock option	16,063
Stock-based compensation		172,008			172,008
Net income				2,627,107	2,627,107
Cancellation of restricted stock	$ (3)	3
Cancellation of restricted stock	(3,250)
Repurchase and retirement 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
Shares, Outstanding, Ending Balance at Jun. 30, 2021	7,139,084
Beginning balance, value at Dec. 31, 2021	$ 7,184	66,139,630		(46,100,351)	20,046,463
Shares, Outstanding, Beginning Balance at Dec. 31, 2021	7,183,874
Vesting of restricted stock	$ 91	(91)
Vesting of restricted stock	91,134
Restricted stock retired for tax withholding	$ (26)	(115,189)			(115,215)
Restricted stock retired for tax withholding	(26,157)
Exercise of stock option	$ 24	39,508			39,532
Exercise of stock option	24,200
Stock-based compensation		223,446			223,446
Net income				341,933	341,933
Ending balance, value at Mar. 31, 2022	$ 7,273	66,287,304		(45,758,418)	20,536,159
Shares, Outstanding, Ending Balance at Mar. 31, 2022	7,273,051
Beginning balance, value at Dec. 31, 2021	$ 7,184	66,139,630		(46,100,351)	20,046,463
Shares, Outstanding, Beginning Balance at Dec. 31, 2021	7,183,874
Stock-based compensation					474,980
Net income					445,892
Conversion of convertible note
Ending balance, value at Jun. 30, 2022	$ 7,202	66,580,908	$ (377,950)	(45,654,459)	20,555,701
Shares, Outstanding, Ending Balance at Jun. 30, 2022	7,202,341		90,913
Beginning balance, value at Mar. 31, 2022	$ 7,273	66,287,304		(45,758,418)	20,536,159
Shares, Outstanding, Beginning Balance at Mar. 31, 2022	7,273,051
Vesting of restricted stock	$ 1	(1)
Vesting of restricted stock	1,200
Exercise of stock option	$ 19	41,950			41,969
Exercise of stock option	19,390
Stock-based compensation		251,534			251,534
Net income				$ 103,959	$ 103,959
Restricted stock retired for tax withholding		30			30
Cancellation of restricted stock	$ (387)
Treasury shares purchased	$ (91)	$ 91	$ (377,950)		$ (377,950)
Treasury shares repurchased	(90,913)
Treasury Stock, Shares, Acquired			90,913
Ending balance, value at Jun. 30, 2022	$ 7,202	$ 66,580,908	$ (377,950)	$ (45,654,459)	$ 20,555,701
Shares, Outstanding, Ending Balance at Jun. 30, 2022	7,202,341		90,913

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Operating activities
Net income	$ 445,892	$ 2,830,009
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation	474,980	320,780
Depreciation and amortization	394,287	352,849
Amortization of debt discount	16,546	16,546
Amortization of ROU Asset	322,604
Deferred tax expenses (benefits)	116,485	(1,870,000)
Changes in operating assets and liabilities:
Accounts receivable	(815,172)	(355,767)
Inventories	(732,996)	(823,668)
Prepaid expenses and other current assets	(359,891)	(440,006)
Other assets	(222,248)
Accounts payable and accrued expenses	1,137,335	127,756
Accrued payroll and related expenses	(4,595)	272,841
Net deferred revenue on shipments to distributors	82,156	70,131
Deferred service revenue	6,169	(13,522)
Net change in operating lease liability	(262,788)	(37,502)
Net cash provided by operating activities	598,764	450,447
Investing activities
Purchases of PP&E including software and website development	(560,079)	(304,613)
Net cash used in investing activities	(560,079)	(304,613)
Financing activities
Common stocks repurchased	(377,950)	(1,176)
Proceeds from note payable		1,000,000
Repayments of note payable	(250,000)	(125,000)
Proceeds from stock options exercised	81,531	1,778,547
Net cash (used in) provided by financing activities	(546,419)	2,652,371
Net (decrease) increase in cash and cash equivalents	(507,734)	2,798,205
Cash and cash equivalents at beginning of period	6,095,886	2,121,763
Cash and cash equivalents at end of period	5,588,152	4,919,968
Supplemental disclosure of cash flow information
Cash paid for interest	81,386	90,933
Supplemental disclosure of non-cash activities
Payroll tax liability for retired restricted stock	115,215
Property acquired under operating lease	3,851,195
Conversion of note payable		130,000
Acquisition of intangible assets		$ 1,909,433

NOTE 1 _ Basis of Presentation

NOTE 1 — Basis of Presentation	6 Months Ended
	Jun. 30, 2022
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, 2021.

NOTE 2 _ Summary of Significant

NOTE 2 — Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2022
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. On June 30, 2022, and December 31, 2021, 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 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. On June 30, 2022, the deferred revenue and deferred cost on shipments to distributors were $568,082 $237,668 $407,235 $158,977 SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS June 30, 2022 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 June 30, 2022 and 2021, SocketCare revenue was approximately $5,900 $6,700 $37,600 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. On May 1, 2022, we entered into a building lease agreement for our corporate headquarters located in Fremont, CA. On June 30, 2022, the balances of right-of-use assets and liabilities for the operating lease were $ 3,776,281 $3,883,355 $210,839 $258,097 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	6 Months Ended
	Jun. 30, 2022
Business Combination and Asset Acquisition [Abstract]
NOTE 3 — Acquisition of Intangible Assets	NOTE 3 — Acquisition of Intangible Assets On February 26, 2021, the Company entered into the 2021 Technology Transfer Agreement with SpringCard SAS (“SpringCard”). SpringCard is a market leader at the forefront of innovative electronic design and development. Its contactless and wireless solutions support a wide range of customers, from large international corporations to locally focused companies. SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS June 30, 2022 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. SpringCard received 184,332 50,000 $10.85 st March 29, 2021 $7.65 The Unaudited Condensed Balance Sheets include the intangible assets of the acquired technology at the carrying amount, net of amortization of $1,750,313 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. As of June 30, 2022, the estimated future amortization of intangible assets is as follows: Fiscal Year Amount 2022 (July 1, 2022 to December 31, 2022) $ 63,648 2023 127,296 2024 127,296 2025 127,296 2026 127,296 Thereafter 1,177,481 Total $ 1,750,313

NOTE 4 _ Inventories

NOTE 4 — Inventories	6 Months Ended
	Jun. 30, 2022
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 on June 30, 2022 and December 31, 2021 were as follows: June 30, December 31, 2022 2021 Raw materials and sub-assemblies $ 6,588,818 $ 5,757,869 Finished goods 179,645 277,598 Inventory reserves (880,943 ) (880,943 ) Inventory, net $ 5,887,520 $ 5,154,524 SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS June 30, 2022

NOTE 5 _ Bank Financing Arrange

NOTE 5 — Bank Financing Arrangements	6 Months Ended
	Jun. 30, 2022
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. 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. Amended and Restated Business Financing Agreement On January 29, 2021 $2.0 million $1.0 million First Financing Agreement On February 9, 2022, the Company entered into the First Business Financing Modification Agreement with the Bank. The Bank consented to the share repurchase program of up to $1.8 million. Future audit of accounts receivables will be performed once every twelve months. The Bank increased the credit limit for business credit cards to $250,000. Amounts outstanding under the CalCap Loan as of June 30, 2022 are as follows: June 30, 2022 Current portion of CalCap Loan $ 375,000 Long-term portion of CalCap Loan — CalCap Loan $ 375,000 Interest expense on the CalCap loan for the three and six months ended June 30, 2022 was $5,295 $11,962 $1,111 $11,580 $17,552 $2,431 SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS June 30, 2022

NOTE 6 _ Secured Subordinated C

NOTE 6 — Secured Subordinated Convertible Notes Payable	6 Months Ended
	Jun. 30, 2022
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, including $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 Total issuance costs associated with the financing are $96,515 $16,546 $38,606 Total interest expense recognized related to the convertible notes for the three and six months ended June 30, 2022 was $43,177 $84,461 $43,177 $87,721

NOTE 7 _ Segment Information an

NOTE 7 — Segment Information and Concentrations	6 Months Ended
	Jun. 30, 2022
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 App providers whose applications are designed to work with the Company’s products. SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS June 30, 2022 Revenues by geographic areas for the three and six months ended June 30, 2022 and 2021 were as follows: Three Months Ended Six Months Ended 2022 2021 2022 2021 Revenues: Americas $ 4,480,812 $ 4,753,436 $ 9,363,585 $ 8,316,490 Europe 952,965 875,945 1,650,935 1,653,526 Asia Pacific 612,205 323,509 1,324,464 795,853 Total revenues $ 6,045,982 $ 5,952,890 $ 12,338,984 $ 10,765,869 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. Major Customers Customers who accounted for at least 10% of the Company’s total revenues for the three and six months ended June 30, 2022 and 2021 were as follows: Three Months Ended Six Months Ended 2022 2021 2022 2021 Ingram Micro Inc. 33 % 27 % 30 % 26 % BlueStar, Inc. 19 % 32 % 20 % 31 % ScanSource, Inc. * 12 % 14 % 10 % *Customer accounted for less than 10% of the Company’s total revenue 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 on June 30, 2022 and December 31, 2021 were as follows: June 30, December 31, 2022 2021 Ingram Micro Inc. 34 % 28 % BlueStar, Inc. 17 % 21 % ScanSource, Inc. 13 % 24 % SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS June 30, 2022 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 June 30, 2022 and 2021, the top three suppliers accounted for 55% 36% 20%

NOTE 8 _ Stock-Based Compensati

NOTE 8 — Stock-Based Compensation	6 Months Ended
	Jun. 30, 2022
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 40,000 182,000 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 six months ended June 30, 2022 and 2021, the Company awarded 323,800 302,425 839,373 Total stock-based compensation expenses for the three and six months ended June 30, 2022 were $251,534 $474,980 $172,008 $320,780 SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS June 30, 2022

NOTE 9 _ Net Income Per Share

NOTE 9 — Net Income Per Share	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
NOTE 9 — Net Income Per Share	NOTE 9 — Net Income Per Share The following table sets forth the reconciliation of basic shares to diluted shares and the computation of basic and diluted net income per share: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Numerator: Net income $ 103,959 $ 2,627,107 $ 445,892 $ 2,830,009 Net income allocated to restricted stock award 10,521 226,630 43,773 243,205 Adjusted net income for basic earnings per share $ 93,438 $ 2,400,477 $ 402,119 $ 2,586,804 Convertible note interest — 43,177 — 88,755 Adjusted net income before interest for diluted earnings per share $ 93,438 $ 2,443,654 $ 402,119 $ 2,675,559 Denominator: Weighted average shares outstanding used in computing net income per share: Basic 7,219,646 7,128,768 7,225,641 6,808,339 Effect of dilutive stock options 423,669 819,680 462,339 826,387 Effect of convertible note weighted shares — 958,904 — 958,904 Diluted 7,643,315 8,907,352 7,687,980 8,593,630 Net income per share applicable to common stockholders: Basic $ 0.01 $ 0.34 $ 0.06 $ 0.38 Diluted $ 0.01 $ 0.27 $ 0.05 $ 0.31 In the three and six months ended June 30, 2022, 939,168 903,369 50,000 In the three and six months ended June 30, 2021, 45,000 50,000 SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS June 30, 2022

NOTE 10 _ Income Taxes

NOTE 10 — Income Taxes	6 Months Ended
	Jun. 30, 2022
Income Tax Disclosure [Abstract]
NOTE 10 — Income Taxes	NOTE 10 — Income Taxes The Company recorded income tax expenses of $40,320 $116,485 $1,864,200 $1,863,711

NOTE 11 _ Commitments and Conti

NOTE 11 — Commitments and Contingencies	6 Months Ended
	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
NOTE 11 — Commitments and Contingencies	NOTE 11 — Commitments and Contingencies Operating Lease Obligations The Company’s lease agreement for the office space in Newark, California expired on June 30, 2022. On May 1, 2022, the Company commenced a lease agreement for approximately 35,913 square feet at 40675 Encyclopedia in Fremont, California. This serves as the location for the Company’s Corporate Headquarters, including office space and manufacturing. The Company will pay a base monthly rent in the amount of $50,278 commencing on the first day of the fourth full month of the lease term. Base monthly rent will increase annually on May 1 st The Company accounted for the lease as an operating lease under ASC 842 using the bank loan interest rate in effect on May 1, 2022 at 5.0% to discount future lease payments. The lease term expires on July 31, 2029, with a one-time option to renew for a period of five years. The renewal period is not included in the measurement of the leases as the Company is not reasonably certain of exercising it. As of June 30, 2022, the balances of right-of-use assets and liabilities were approximately $3,776,281 and $3,883,355 , respectively, compared to approximately $210,839 and $258,097 , respectively, on December 31, 2021. The operating lease expense was allocated in cost of goods sold and operating expenses based on department headcount and amounted to $214,839 $322,604 $107,218 $214,437 $64,857 149,982 $99,423 223,181 Cash payments included in the measurement of the Company’s operating lease liabilities were $126,838 $258,847 $126,516 $253,032 Future minimum lease payments for the operating lease in effect as of June 30, 2022 are shown below: Annual minimum payments: Amount 2022 (July 2022 through December 31, 2022) 251,392 2023 615,405 2024 633,867 2025 652,883 2026 672,470 Thereafter 1,831,714 Total minimum payments 4,657,731 Less: Present value factor (774,376 ) Total operating lease liabilities 3,883,355 Less: Current portion of operating lease (369,071 ) Long-term portion of operating lease $ 3,514,284 SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS June 30, 2022 Purchase Commitments As of June 30, 2022, the Company has non-cancelable purchase commitments for inventory to be used in the ordinary course of business of approximately $12,068,000 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.

NOTE 12 _ Subsequent Events

NOTE 12 — Subsequent Events	6 Months Ended
	Jun. 30, 2022
Subsequent Events [Abstract]
NOTE 12 — Subsequent Events	NOTE 12 — Subsequent Events The Company evaluated subsequent events and transactions that occurred between July 1, 2022 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. 89,274 $3.02 The Company issued 24,800 6,900 9,000

NOTE 2 _ Summary of Significa_2

NOTE 2 — Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2022
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. On June 30, 2022, and December 31, 2021, 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. On June 30, 2022, the deferred revenue and deferred cost on shipments to distributors were $568,082 $237,668 $407,235 $158,977 SOCKET MOBILE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS June 30, 2022 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 June 30, 2022 and 2021, SocketCare revenue was approximately $5,900 $6,700 $37,600
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. On May 1, 2022, we entered into a building lease agreement for our corporate headquarters located in Fremont, CA. On June 30, 2022, the balances of right-of-use assets and liabilities for the operating lease were $ 3,776,281 $3,883,355 $210,839 $258,097
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)	6 Months Ended
	Jun. 30, 2022
Business Combination and Asset Acquisition [Abstract]
Estimated future amortization of intangible assets	Fiscal Year Amount 2022 (July 1, 2022 to December 31, 2022) $ 63,648 2023 127,296 2024 127,296 2025 127,296 2026 127,296 Thereafter 1,177,481 Total $ 1,750,313

NOTE 4 _ Inventories (Tables)

NOTE 4 — Inventories (Tables)	6 Months Ended
	Jun. 30, 2022
Inventory Disclosure [Abstract]
Inventories	June 30, December 31, 2022 2021 Raw materials and sub-assemblies $ 6,588,818 $ 5,757,869 Finished goods 179,645 277,598 Inventory reserves (880,943 ) (880,943 ) Inventory, net $ 5,887,520 $ 5,154,524

NOTE 5 _ Bank Financing Arran_2

NOTE 5 — Bank Financing Arrangements (Tables)	6 Months Ended
	Jun. 30, 2022
Debt Disclosure [Abstract]
Amounts outstanding under the CalCap Loan	June 30, 2022 Current portion of CalCap Loan $ 375,000 Long-term portion of CalCap Loan — CalCap Loan $ 375,000

NOTE 7 _ Segment Information _2

NOTE 7 — Segment Information and Concentrations (Tables)	6 Months Ended
	Jun. 30, 2022
Segment Reporting [Abstract]
Revenues by geographic areas	Three Months Ended Six Months Ended 2022 2021 2022 2021 Revenues: Americas $ 4,480,812 $ 4,753,436 $ 9,363,585 $ 8,316,490 Europe 952,965 875,945 1,650,935 1,653,526 Asia Pacific 612,205 323,509 1,324,464 795,853 Total revenues $ 6,045,982 $ 5,952,890 $ 12,338,984 $ 10,765,869
Customers who accounted for at least 10% of the Company's total revenues	Three Months Ended Six Months Ended 2022 2021 2022 2021 Ingram Micro Inc. 33 % 27 % 30 % 26 % BlueStar, Inc. 19 % 32 % 20 % 31 % ScanSource, Inc. * 12 % 14 % 10 %
Customers who accounted for at least 10% of the Company's accounts receivable balances	June 30, December 31, 2022 2021 Ingram Micro Inc. 34 % 28 % BlueStar, Inc. 17 % 21 % ScanSource, Inc. 13 % 24 %

NOTE 9 _ Net Income Per Share (

NOTE 9 — Net Income Per Share (Tables)	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
Reconciliation of basic shares to diluted shares and the computation of basic and diluted net income per share	Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Numerator: Net income $ 103,959 $ 2,627,107 $ 445,892 $ 2,830,009 Net income allocated to restricted stock award 10,521 226,630 43,773 243,205 Adjusted net income for basic earnings per share $ 93,438 $ 2,400,477 $ 402,119 $ 2,586,804 Convertible note interest — 43,177 — 88,755 Adjusted net income before interest for diluted earnings per share $ 93,438 $ 2,443,654 $ 402,119 $ 2,675,559 Denominator: Weighted average shares outstanding used in computing net income per share: Basic 7,219,646 7,128,768 7,225,641 6,808,339 Effect of dilutive stock options 423,669 819,680 462,339 826,387 Effect of convertible note weighted shares — 958,904 — 958,904 Diluted 7,643,315 8,907,352 7,687,980 8,593,630 Net income per share applicable to common stockholders: Basic $ 0.01 $ 0.34 $ 0.06 $ 0.38 Diluted $ 0.01 $ 0.27 $ 0.05 $ 0.31

NOTE 11 _ Commitments and Con_2

NOTE 11 — Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Future minimum lease payments under the operating lease in effect as of June 30, 2022	Annual minimum payments: Amount 2022 (July 2022 through December 31, 2022) 251,392 2023 615,405 2024 633,867 2025 652,883 2026 672,470 Thereafter 1,831,714 Total minimum payments 4,657,731 Less: Present value factor (774,376 ) Total operating lease liabilities 3,883,355 Less: Current portion of operating lease (369,071 ) Long-term portion of operating lease $ 3,514,284

NOTE 2 _ Summary of Significa_3

NOTE 2 — Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Product Information [Line Items]
Deferred Revenue, Current	$ 568,082		$ 568,082		$ 407,235
Deferred Costs and Other Assets	237,668		237,668		158,977
Revenues	6,045,982	$ 5,952,890	12,338,984	$ 10,765,869
Operating Lease, Right-of-Use Asset	3,776,281		3,776,281		210,839
Operating Lease, Liability	3,883,355		3,883,355		$ 258,097
Service [Member]
Product Information [Line Items]
Deferred Revenue	37,600		$ 37,600
Service [Member]
Product Information [Line Items]
Revenues	$ 5,900	$ 6,700

Estimated future amortization o

Estimated future amortization of intangible assets (Details)	Jun. 30, 2022 USD ($)
Business Combination and Asset Acquisition [Abstract]
2022 (July 1, 2022 to December 31, 2022)	$ 63,648
2023	127,296
2024	127,296
2025	127,296
2026	127,296
Thereafter	1,177,481
Total	$ 1,750,313

NOTE 3 _ Acquisition of Intan_3

NOTE 3 — Acquisition of Intangible Assets (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2021	Jun. 30, 2022	Mar. 29, 2021	Feb. 26, 2021
Business Acquisition [Line Items]
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
Intangible Assets, Net (Excluding Goodwill)	$ 1,864,794	$ 1,779,361
Spring Card [Member]
Business Acquisition [Line Items]
Intangible Assets, Net (Excluding Goodwill)		$ 1,750,313

Inventories (Details)

Inventories (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials and sub-assemblies	$ 6,588,818	$ 5,757,869
Finished goods	179,645	277,598
Inventory reserves	(880,943)	(880,943)
Inventory, net	$ 5,887,520	$ 5,154,524

Amounts outstanding under the C

Amounts outstanding under the CalCap Loan (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Debt Disclosure [Abstract]
Current portion of CalCap Loan	$ 375,000	$ 500,000
Long-term portion of CalCap Loan		$ 125,000
CalCap Loan	$ 375,000

NOTE 5 _ Bank Financing Arran_3

NOTE 5 — Bank Financing Arrangements (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021	Jan. 29, 2021
Line of Credit Facility [Line Items]
Line of Credit Facility, Initiation Date					Jan. 29, 2021
Interest Expense	$ (45,005)	$ (51,428)	$ (90,611)	$ (100,129)
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	5,295	11,580	11,962	17,552
Interest Payable	$ 1,111	$ 2,431	$ 1,111	$ 2,431

NOTE 6 _ Secured Subordinated_2

NOTE 6 — Secured Subordinated Convertible Notes Payable (Details Narrative) - USD ($)	3 Months Ended			6 Months Ended		36 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Sep. 30, 2020	Jun. 30, 2022	Jun. 30, 2021	Aug. 30, 2023	Aug. 31, 2020	Aug. 28, 2020
Debt Disclosure [Abstract]
Convertible Subordinated Debt							$ 1,350,000
Subordinated Borrowing, Interest Rate						10%
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)				$ 16,546	$ 16,546
Debt Instrument, Unamortized Discount (Premium), Net	$ 38,606			38,606
[custom:InterestOnConvertibleDebt]	$ 43,177	$ 43,177		$ 84,461	$ 87,721

Revenues by geographic areas (D

Revenues by geographic areas (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]
Asia Pacific	$ 6,045,982	$ 5,952,890	$ 12,338,984	$ 10,765,869
Total revenues	6,045,982	5,952,890	12,338,984	10,765,869
Americas [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Asia Pacific	4,480,812	4,753,436	9,363,585	8,316,490
Total revenues	4,480,812	4,753,436	9,363,585	8,316,490
EMEA [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Asia Pacific	952,965	875,945	1,650,935	1,653,526
Total revenues	952,965	875,945	1,650,935	1,653,526
Asia Pacific [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Asia Pacific	612,205	323,509	1,324,464	795,853
Total revenues	$ 612,205	$ 323,509	$ 1,324,464	$ 795,853

Customers who accounted for at

Customers who accounted for at least 10% of the Company's total revenues (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Ingram Micro [Member]
Revenue, Major Customer [Line Items]
BlueStar, Inc.	0.33	0.27	0.30	0.26
Blue Star [Member]
Revenue, Major Customer [Line Items]
BlueStar, Inc.	0.19	0.32	0.20	0.31
Scan Source [Member]
Revenue, Major Customer [Line Items]
BlueStar, Inc.		1,200	1,400	1,000

Customers who accounted for a_2

Customers who accounted for at least 10% of the Company's accounts receivable balances (Details)	Jun. 30, 2022	Dec. 31, 2021
Ingram Micro [Member]
Revenue, Major Customer [Line Items]
ScanSource, Inc.	0.34	0.28
Blue Star [Member]
Revenue, Major Customer [Line Items]
ScanSource, Inc.	0.17	0.21
Scan Source [Member]
Revenue, Major Customer [Line Items]
ScanSource, Inc.	0.13	0.24

NOTE 7 _ Segment Information _3

NOTE 7 — Segment Information and Concentrations (Details Narrative) - Supplier Concentration Risk [Member]	3 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Revenue, Major Customer [Line Items]
Percentage of inventory purchases from top three suppliers	55%
Accounts payable balances with top two suppliers	36%	20%

NOTE 8 _ Stock-Based Compensa_2

NOTE 8 — Stock-Based Compensation (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended				6 Months Ended
	Aug. 15, 2022	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Share-Based Payment Arrangement [Abstract]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Net of Forfeitures						40,000	182,000
Stock Issued During Period, Shares, Restricted Stock Award, Gross	89,274					323,800	302,425
Common Stock, Other Shares, Outstanding		839,373				839,373
Share-Based Payment Arrangement, Noncash Expense		$ 251,534	$ 223,446	$ 172,008	$ 148,772	$ 474,980	$ 320,780

Reconciliation of basic shares

Reconciliation of basic shares to diluted shares and the computation of basic and diluted net income per share (Details) - USD ($)	3 Months Ended				6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Numerator:
Net income	$ 103,959	$ 341,933	$ 2,627,107	$ 202,902	$ 445,892	$ 2,830,009
Net income allocated to restricted stock award	10,521		226,630		43,773	243,205
Adjusted net income for basic earnings per share	93,438		2,400,477		402,119	2,586,804
Convertible note interest			43,177			88,755
Adjusted net income before interest for diluted earnings per share	$ 93,438		$ 2,443,654		$ 402,119	$ 2,675,559
Denominator: Weighted average shares outstanding used in computing net income per share:
Basic	7,219,646		7,128,768		7,225,641	6,808,339
Effect of dilutive stock options	423,669		819,680		462,339	826,387
Effect of convertible note weighted shares			958,904			958,904
Diluted	7,643,315		8,907,352		7,687,980	8,593,630
Net income per share applicable to common stockholders:
Basic	$ 0.01		$ 0.34		$ 0.06	$ 0.38
Diluted	$ 0.01		$ 0.27		$ 0.05	$ 0.31

NOTE 9 _ Net Income Per Share_2

NOTE 9 — Net Income Per Share (Details Narrative) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		50,000	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	939,168		903,369	45,000

NOTE 10 _ Income Taxes (Details

NOTE 10 — Income Taxes (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Income Tax Expense (Benefit)	$ 40,320	$ (1,864,200)	$ 116,485	$ (1,863,711)
Income Tax Expense (Benefit)	$ (40,320)	$ 1,864,200	$ (116,485)	$ 1,863,711

Future minimum lease payments u

Future minimum lease payments under the operating lease in effect as of June 30, 2022 (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Annual minimum payments:
2022 (July 2022 through December 31, 2022)	$ 251,392
2023	615,405
2024	633,867
2025	652,883
2026	672,470
Thereafter	1,831,714
Total minimum payments	4,657,731
Less: Present value factor	(774,376)
Total operating lease liabilities	3,883,355	$ 258,097
Less: Current portion of operating lease	(369,071)	(258,097)
Long-term portion of operating lease	$ 3,514,284

NOTE 11 _ Commitments and Con_3

NOTE 11 — Commitments and Contingencies (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Amortization Expense Per Equivalent Unit of Production or Per Dollar of Gross Revenue [Line Items]
Operating Lease, Right-of-Use Asset	$ 3,776,281		$ 3,776,281		$ 210,839
Operating Lease, Liability	3,883,355		3,883,355		$ 258,097
Operating Lease, Expense	214,839	$ 107,218	322,604	$ 214,437
Operating Lease, Payments	126,838	$ 126,516	258,847	$ 253,032
Purchase Obligation, to be Paid, Year One	12,068,000		12,068,000
Cost of Goods and Service Benchmark [Member]
Amortization Expense Per Equivalent Unit of Production or Per Dollar of Gross Revenue [Line Items]
Operating Lease, Expense	64,857
Operating Leases, Rent Expense			99,423
Operating Expense [Member]
Amortization Expense Per Equivalent Unit of Production or Per Dollar of Gross Revenue [Line Items]
Operating Lease, Expense	$ 149,982		$ 223,181

NOTE 12 _ Subsequent Events (De

NOTE 12 — Subsequent Events (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended				6 Months Ended
	Aug. 15, 2022	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Subsequent Events [Abstract]
Stock Issued During Period, Shares, Restricted Stock Award, Gross	89,274					323,800	302,425
Accelerated Share Repurchases, Final Price Paid Per Share	$ 3.02
Stock Issued During Period, Value, Stock Options Exercised	$ 24,800	$ 41,969	$ 39,532	$ 66,889	$ 1,711,658
Stock Issued During Period, Value, Restricted Stock Award, Gross	$ 6,900
Stock Issued During Period, Shares, Employee Stock Purchase Plans	9,000