Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Jul. 22, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 001-38420 | ||
Entity Registrant Name | VIRTRA, INC. | ||
Entity Central Index Key | 0001085243 | ||
Entity Tax Identification Number | 93-1207631 | ||
Entity Incorporation, State or Country Code | NV | ||
Entity Address, Address Line One | 295 E. Corporate Place | ||
Entity Address, City or Town | Chandler | ||
Entity Address, State or Province | AZ | ||
Entity Address, Postal Zip Code | 85225 | ||
City Area Code | (480) | ||
Local Phone Number | 968-1488 | ||
Title of 12(b) Security | Common Stock, $0.0001 par value | ||
Trading Symbol | VTSI | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | No | ||
Entity Interactive Data Current | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Elected Not To Use the Extended Transition Period | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 61,954,937 | ||
Entity Common Stock, Shares Outstanding | 10,876,945 | ||
Documents Incorporated by Reference | None | ||
ICFR Auditor Attestation Flag | false | ||
Auditor Firm ID | 206 | ||
Auditor Name | MaloneBailey, LLP | ||
Auditor Location | Houston, Texas |
Balance Sheets
Balance Sheets - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 19,708,565 | $ 6,841,984 |
Accounts receivable, net | 3,896,739 | 1,378,270 |
Inventory, net | 5,014,924 | 3,515,997 |
Unbilled revenue | 3,946,446 | 5,408,598 |
Prepaid expenses and other current assets | 940,887 | 382,445 |
Total current assets | 33,507,561 | 17,527,294 |
Long-term assets: | ||
Property and equipment, net | 12,864,766 | 1,381,744 |
Operating lease right-of-use asset, net | 784,306 | 1,094,527 |
Intangible assets, net | 535,079 | 271,048 |
Security deposits, long-term | 19,712 | 86,500 |
Other assets, long-term | 189,734 | 500,114 |
Deferred tax asset, net | 1,674,234 | 1,892,000 |
Total long-term assets | 16,067,831 | 5,225,933 |
Total assets | 49,575,392 | 22,753,227 |
Current liabilities: | ||
Accounts payable | 789,394 | 345,573 |
Accrued compensation and related costs | 1,062,078 | 843,101 |
Accrued expenses and other current liabilities | 991,744 | 772,884 |
Note payable, current | 236,291 | 266,037 |
Operating lease liability, short-term | 347,772 | 321,727 |
Deferred revenue, short-term | 4,135,565 | 4,708,575 |
Total current liabilities | 7,562,844 | 7,257,897 |
Long-term liabilities: | ||
Deferred revenue, long-term | 1,992,625 | 1,920,346 |
Note payable, long-term | 8,280,395 | 1,063,243 |
Operating lease liability, long-term | 505,383 | 853,155 |
Other long term liabilities | 5,436 | |
Total long-term liabilities | 10,783,839 | 3,836,744 |
Total liabilities | 18,346,683 | 11,094,641 |
Commitments and contingencies (See Note 9) | ||
Stockholders’ equity: | ||
Preferred stock $0.0001 par value; 2,500,000 authorized; no shares issued or outstanding | ||
Common stock, value | 1,081 | 778 |
Additional paid-in capital | 30,923,391 | 13,893,660 |
Retained earnings (Accumulated deficit) | 304,237 | (2,235,852) |
Total stockholders’ equity | 31,228,709 | 11,658,586 |
Total liabilities and stockholders’ equity | 49,575,392 | 22,753,227 |
Common Class A [Member] | ||
Stockholders’ equity: | ||
Common stock, value | ||
Common Class B [Member] | ||
Stockholders’ equity: | ||
Common stock, value |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 2,500,000 | 2,500,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares outstanding | 10,807,130 | 7,775,030 |
Common stock, shares issued | 10,807,130 | 7,775,030 |
Common Class A [Member] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 2,500,000 | 2,500,000 |
Common stock, shares outstanding | 0 | 0 |
Common stock, shares issued | 0 | 0 |
Common Class B [Member] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 7,500,000 | 7,500,000 |
Common stock, shares outstanding | 0 | 0 |
Common stock, shares issued | 0 | 0 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues: | ||
Total revenue | $ 24,434,056 | $ 19,087,631 |
Cost of sales | 13,028,844 | 7,187,210 |
Gross profit | 11,405,212 | 11,900,421 |
Operating expenses: | ||
General and administrative | 8,085,295 | 9,070,730 |
Research and development | 1,865,880 | 1,603,379 |
Net operating expense | 9,951,175 | 10,674,109 |
Income from operations | 1,454,037 | 1,226,312 |
Other income (expense): | ||
Other income | 97,100 | 49,539 |
Gain on forgiveness of note payable | 1,320,714 | |
Other expense | (85,712) | (16,248) |
Net other income | 1,332,102 | 33,291 |
Income before provision for income taxes | 2,786,139 | 1,259,603 |
Provision (Benefit) for income taxes | 246,050 | (218,800) |
Net income | $ 2,540,089 | $ 1,478,403 |
Net income per common share: | ||
Basic | $ 0.25 | $ 0.19 |
Diluted | $ 0.25 | $ 0.19 |
Weighted average shares outstanding: | ||
Basic | 10,007,386 | 7,757,037 |
Diluted | 10,060,748 | 7,835,830 |
Net sales [Member] | ||
Revenues: | ||
Total revenue | $ 24,434,056 | $ 19,038,074 |
Eatertainment royalties licensing fees former, related party [Member] | ||
Revenues: | ||
Total revenue | 45,247 | |
Other royalties/licensing fees [Member] | ||
Revenues: | ||
Total revenue | $ 4,310 |
Statements of Changes in Stockh
Statements of Changes in Stockholders' Equity - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2019 | $ 775 | $ 13,894,680 | $ (3,714,255) | $ 10,181,200 | ||
Beginning balance, shares at Dec. 31, 2019 | 7,745,030 | |||||
Stock options exercised | $ 3 | 30,163 | 30,166 | |||
Stock options exercised, shares | 30,000 | |||||
Stock options repurchased | (31,183) | (31,183) | ||||
Net income | 1,478,403 | 1,478,403 | ||||
Ending balance, value at Dec. 31, 2020 | $ 778 | 13,893,660 | (2,235,852) | 11,658,586 | ||
Ending balance, shares at Dec. 31, 2020 | 7,775,030 | |||||
Stock options exercised | 11,320 | 11,320 | ||||
Stock options exercised, shares | 7,500 | |||||
Net income | 2,540,089 | 2,540,089 | ||||
Stock issued for cash in offering, net | $ 300 | 16,794,700 | 16,795,000 | |||
Stock issued for cash in offering, net, shares | 3,000,000 | |||||
Stock issued for services | $ 3 | 171,213 | 223,716 | |||
Stock issued for services, shares | 24,600 | |||||
Stock reserved for future services | 52,498 | 52,498 | ||||
Ending balance, value at Dec. 31, 2021 | $ 1,081 | $ 30,923,391 | $ 304,237 | $ 31,228,709 | ||
Ending balance, shares at Dec. 31, 2021 | 10,807,130 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 2,540,089 | $ 1,478,403 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 589,059 | 380,154 |
Right of use amortization | 310,221 | 296,346 |
Reserve for note receivable | 291,110 | |
Deferred taxes | 217,766 | (100,000) |
Impairment of investment in That’s Eatertainment, former related party | 840,000 | |
Gain on forgiveness of note payable | (1,329,280) | |
Employee stock compensation | 223,716 | |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (2,518,469) | 929,702 |
Interest receivable | 7,340 | |
Inventory, net | (1,498,927) | (2,291,394) |
Unbilled revenue | 1,462,152 | (1,828,656) |
Prepaid expenses and other current assets | (558,442) | (28,470) |
Other assets | 310,380 | (148,878) |
Security deposits, long-term | 66,788 | (66,788) |
Accounts payable and other accrued expenses | 881,662 | 394,193 |
Payments on operating lease liability | (321,727) | (297,244) |
Deferred revenue | (500,731) | 2,389,819 |
Net cash provided by (used in) operating activities | (125,743) | 2,245,637 |
Cash flows from investing activities: | ||
Redemption of certificates of deposit | 1,915,000 | |
Purchase of intangible assets | (287,106) | (62,007) |
Purchase of property and equipment | (3,448,678) | |
Net cash provided by (used in) investing activities | (3,735,784) | 1,852,993 |
Cash flows from financing activities: | ||
Repurchase of stock options | (31,183) | |
Principal payments of debt | (78,212) | |
Stock issued for cash in offering, net | 16,795,000 | |
Stock options exercised | 11,320 | 30,166 |
Note payable-PPP Loan | 1,329,280 | |
Net cash provided by financing activities | 16,728,108 | 1,328,263 |
Net increase (decrease) in cash and restricted cash | 12,866,581 | 5,426,893 |
Cash and restricted cash, beginning of period | 6,841,984 | 1,415,091 |
Cash and restricted cash, end of period | 19,708,565 | 6,841,984 |
Supplemental disclosure of cash flow information: | ||
Income taxes paid (refunded) | 99,035 | (118,800) |
Interest paid | 85,703 | 8,566 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Conversion of inventory to property and equipment | 334,637 | 724,811 |
Note for purchase of property | $ 8,600,000 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Organization and Significant Accounting Policies | Note 1. Organization and Significant Accounting Policies Organization and Business Operations VirTra, Inc. (the “Company,” “VirTra,” “we,” “us” or “our”), located in Chandler, Arizona, is a global provider of judgmental use of force training simulators, firearms training simulators and driving simulators for the law enforcement, military, educational and commercial markets. The Company’s patented technologies, software, and scenarios provide intense training for de-escalation, judgmental use-of-force, marksmanship and related training that mimics real-world situations. VirTra’s mission is to save and improve lives worldwide through practical and highly-effective virtual reality and simulator technology. The Company sells its products worldwide through a direct sales force and international distribution partners. The original business started in 1993 as Ferris Productions, Inc. In September 2001, Ferris Productions, Inc. merged with GameCom, Inc. to ultimately become VirTra, Inc., a Nevada corporation. During March 2020, a global pandemic was declared by the World Health Organization related to the rapidly growing outbreak of a novel strain of coronavirus (COVID-19). The pandemic has significantly impacted the economic conditions in the U.S., accelerating during half of March and April as federal, state and local governments react to the public health crisis, creating significant uncertainties in the U.S. economy. On March 30, 2020, the Governor for the State of Arizona issued a stay-at-home order which expired on May 15, 2020, upon which Arizona entered Phase I of reopening. The Company carefully reviewed all rules and regulations of the government orders and determined it met the requirements of an essential business to remain open. The Company had the majority of its staff begin working remotely in mid-March, with only essential personnel continue working at the manufacturing and production facilities and currently remains in Arizona’s Phase I of reopening. This situation is rapidly changing and additional impacts to the business may arise that we are not aware of currently. While the disruption is currently expected to be temporary, there is uncertainty around the duration. The ultimate impact of the pandemic on the Company’s results of operations, financial position, liquidity or capital resources cannot be reasonably estimated at this time. To date, the COVID-19 restrictions have resulted in reduced customer shipments and customer system installations. These recent developments are expected to result in lower recognized revenue and possibly lower gross margin when they occur. To date, there have been no order cancellations; rather, there have only been delays in when orders ship or installations occur and all delayed orders remain in backlog. Although not a material component of our company, a significant adverse change in the business climate could continue to affect the value of the Company’s long-term investment in TEC, including the long-term note receivable from TEC. Any future impact cannot be reasonably estimated at this time. The Company is no longer investing in Certificates of Deposits as a precautionary measure to increase its liquid cash position and preserve financial flexibility considering uncertainty in the U.S. and global markets resulting from COVID-19. Additionally, the Company’s stock repurchase program was suspended as a result of interim rulings for public-company recipients of a Paycheck Protection Program (“PPP”) loan under the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”). The stock repurchase suspension remained in effect for the duration of the outstanding PPP loan and continues to remain in effect even though the PPP loan has been forgiven and is no longer outstanding. Basis of Presentation The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Significant accounting estimates in these financial statements include valuation assumptions for share-based payments, allowance for doubtful accounts and notes receivable, inventory reserves, accrual for warranty reserves, the carrying value of long-lived assets and intangible assets, income tax valuation allowances, the carrying value of cost basis investments, and the allocation of the transaction price to the performance obligations in our contracts with customers. Revenue Recognition The Company adopted the Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customer (Topic 606) (“ASC 606”) on January 1, 2018 and the Company elected to use the modified retrospective transition method which requires application of ASC 606 to uncompleted contracts at the date of adoption. The adoption of ASC 606 did not have a material impact on the financial statements. Under ASC 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. Significant judgment is necessary when making these determinations. The Company’s primary sources of revenue are derived from simulator and accessories sales, training and installation, the sale of customizable software, the sale of customized content scenarios, and the sale of extended service-type warranties. Sales discounts are presented in the financial statements as reductions in determining net revenues. Credit sales are recorded as current assets (accounts receivable and unbilled revenue). Prepaid deposits received at the time of sale and extended warranties purchased are recorded as current and long-term liabilities (deferred revenue) until earned. The following briefly summarizes the nature of our performance obligations and method of revenue recognition: Performance Obligation Method of Recognition Simulator and accessories Upon transfer of control Installation and training Upon completion or over the period of services being rendered Extended service-type warranty Deferred and recognized over the life of the extended warranty Customized software and content Upon transfer of control or over the period services are performed depending on the terms of the contract Customized content scenario As performance obligation is transferred over time (input method using time and materials expended) Sales-based royalty exchanged for license of intellectual property Recognized as the performance obligation is satisfied over time – which is as the sales occur The Company recognizes revenue upon transfer of control or upon completion of the services for the simulator and accessories; for the installation and training and customized software performance obligations as the customer has the right and ability to direct the use of these products and services and the customer obtains substantially all of the remaining benefit from these products and services at that time. Revenue from certain customized content contracts may be recognized over the period the services are performed based on the terms of the contract. For the sales-based royalty exchanged for license of intellectual property, the Company recognized revenue as the sales occur over time. The Company recognizes revenue on a straight-line basis over the period of services being rendered for the extended service-type warranties as these warranties represent a performance obligation to “stand ready to perform” over the duration of the warranties. As such, the warranty service is performed continuously over the warranty period. Each contract states the transaction price. The contracts do not include variable consideration, significant financing components or noncash consideration. The Company has elected to exclude sales and similar taxes from the measurement of the transaction price. The contract’s transaction price is allocated to the performance obligations based upon their stand-alone selling prices. Discounts to the stand-alone selling prices, if any, are allocated proportionately to each performance obligation. Disaggregation of Revenue Under ASC 606, disaggregated revenue from contracts with customers depicts the nature, amount, timing, and uncertainty of revenue and cash flows affected by economic factors. The Company has evaluated revenues recognized and the following table illustrates the disaggregation disclosure by customer’s location and performance obligation. Schedule of Disaggregation of Revenues Year ended December 31, 2021 2020 Commerical Government International Total Commerical Government International Total Simulators and accessories $ 2,890,848 $ 12,302,223 $ 4,073,008 $ 19,266,079 $ 1,052,223 $ 12,450,793 $ 299,430 $ 13,802,446 Extended service-type warranties 107,289 2,716,436 101,111 2,924,836 74,290 2,408,379 138,771 2,621,440 Customized software and content 57,200 1,139,841 112,869 1,309,910 100,109 1,957,635 - 2,057,744 Installation and training 102,882 677,930 143,587 924,399 17,004 534,478 4,962 556,444 Licensing and royalities 8,832 - - 8,832 49,557 - - 49,557 Total Revenue $ 3,167,051 $ 16,836,430 $ 4,430,575 $ 24,434,056 $ 1,293,183 $ 17,351,285 $ 443,163 $ 19,087,631 Commercial customers include selling through prime contractors for military or law enforcement contracts, domestically. Government customers are defined as directly selling to government agencies. For the year ended December 31, 2021, governmental customers comprised $ 16,836,430 68.9 3,167,051 13.0 4,430,575 18.1 17,351,285 90.9 1,293,183 6.8 443,163 2.3 1,963,562 794,524 8.0 4.2 Customer Deposits Customer deposits consist of prepaid deposits received for equipment purchase orders and for Subscription Training Equipment Partnership (“STEP”) operating agreements that expire annually. Customer deposits are considered a deferred liability until the completion of the customer’s contract performance obligation. When revenue is recognized, the deposit is applied to customer’s receivable balance. Customer deposits are recorded as a current liability under deferred revenue on the accompanying balance sheet and totaled $ 2,371,531 2,517,175 1,550,333 325,844 Warranty The Company warranties its products from manufacturing defects on a limited basis for a period of one year after purchase, but also sells separately priced extended service-type warranties for periods of up to four years after the expiration of the standard one-year warranty. During the term of the initial one-year warranty, if the device fails to operate properly from defects in materials and workmanship, the Company will fix or replace the defective product. Deferred revenue for separately priced extended warranties one year or less totaled $ 1,764,034 2,191,400 1,815,871 1,920,346 384,000 352,000 2,924,836 2,621,440 Customer Retainage Customer retainage is recorded as a current liability under deferred revenue on the accompanying balance sheets and totaled $ 0 0 10,720 Licensing and Royalties with Former Related Party As discussed further in Note 9. Co-Venture Agreement with Modern Round, the Company licenses intellectual property to Modern Round, LLC (“MR”), a wholly-owned subsidiary of That’s Eatertainment Corp. (“TEC”), f/k/a Modern Round Entertainment Corp. (“MREC”), a former related party, in exchange for sales-based royalties. Revenues from this agreement are recognized in accordance with the terms of the contract as the sales occur. The Company receives additional immaterial sales-based royalties from strategic partners. Effective October 12, 2020, TEC and MREC no longer meet the requirements to be considered related parties. STEP Revenue The Company’s STEP operations consist principally of renting its simulator products under operating agreements expiring in one year. At the commencement of a STEP agreement, any rental payments received are deferred and no income is recognized. Subsequently, payments are amortized and recognized as revenue on a straight-line basis over the term of the agreement. The agreements are generally for a period of 12 months and can be renewed for additional 12-month periods. Agreements may be terminated by either party upon written notice of termination at lease sixty days prior to the end of the 12-month period. The payments are generally fixed for the first year of the agreement, with increases in payments in subsequent years to be mutually agreed upon. The agreements do not include variable lease payments or free rent periods. In addition, the agreements do not provide for the underlying assets to be purchased at its fair market values at interim periods or at maturity. Each STEP agreement comes with full customer support and stand-ready advance replacement parts to maintain each system for the duration of the lease. The amount that the Company expects to derive from the STEP equipment following the end of the agreement term is dependent upon the number of agreement terms renewed. The agreements do not include a residual value guarantee. Fair Value Measurements ASC Topic 820, Fair Value Measurements Level 1: Quoted prices in active markets for identical assets or liabilities; Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3: Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimate of assumptions that market participants would use in pricing the asset or liability. Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, certificates of deposit, accounts receivable, notes and interest receivables, accounts payable, and accrued liabilities. The fair value of financial instruments, except for long-term notes receivable, approximates their carrying values, using level 3 inputs, at December 31, 2021 and 2020 due to their short maturities. The fair value of the notes receivable approximates its carrying value, using level 3 inputs, at December 31, 2021 and 2020. Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of 90 days or less at the time of purchase to be cash equivalents. Certificates of Deposit and Mutual Funds The Company invests its excess cash in certificates of deposit and money market mutual funds issued by financial institutions with high credit ratings. The certificates of deposit generally have average maturities of approximately six months and are subject to penalties for early withdrawal. The money market mutual funds are open ended and can be withdrawn at any time without penalty. Accounts and Notes Receivable and Allowance for Doubtful Accounts The Company recognizes an allowance for losses on accounts receivable based on an analysis of historical bad debt experience, current receivables aging, and expected future write-offs, as well as an assessment of specific identifiable customer accounts considered at risk or uncollectible. Accounts receivable do not bear interest and are charged off after all reasonable collection efforts have been taken. The Company maintained an allowance for doubtful accounts of $ 35,432 34,959 Notes receivable are carried at their estimated collectible amounts. Interest income on notes receivable is recognized using the effective interest method. Notes receivable are periodically evaluated for collectability based on the credit history, the current financial condition of the counter party, and the known and inherent risks in the notes. Notes receivable are placed on nonaccrual status when they become 90 days past due and the customer has not made a payment in over 60 days. Upon suspension of the accrual of interest, interest income is subsequently recognized to the extent cash payments are received. Accrual of interest is resumed when notes are removed from non-accrual status. Notes receivable are charged against the allowance for credit losses when they are deemed to be uncollectible. The Company recorded a reserve for the full amount of a note receivable and accrued interest from a former related party totaling $ 311,367 0 311,367 Inventory Inventory is stated at the lower of cost or net realizable value with cost being determined on the average cost method. Work in progress and finished goods inventory includes an allocation for capitalized labor and overhead. The Company routinely evaluates the carrying value of inventory for slow moving and potentially obsolete inventory and, when appropriate, will record an adjustment to reduce inventory to its estimated net realizable value. Inventory reserves were $ 214,712 120,652 Investments in Other Companies The Company accounts for investments in other companies that do not have a readily determinable fair value at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The Company has elected to utilize the cost minus impairment approach because the investment in TEC does not have a readily determinable fair value as of the reporting date. See Note 9. Co-Venture Agreement with Modern Round. Management regularly evaluates the recoverability of its investment based on the investee company’s performance and financial position. For the year ended December 31, 2021 and 2020, the Company recognized an impairment loss of $ 0 840,000 Property and Equipment Property and equipment are carried at cost, net of depreciation. Gains or losses related to retirements or disposition of fixed assets are recognized in operations in the period incurred. Costs of normal repairs and maintenance are charged to expense as incurred, while betterments or renewals are capitalized. Depreciation commences at the time the assets are placed in service or for STEP equipment under agreements, when the equipment is made available for use by the customer. Depreciation is provided using the straight-line method over the estimated economic lives of the assets or for leasehold improvements, over the shorter of the estimated useful life or the remaining lease term. For STEP equipment under agreements, depreciation is provided using the straight-line method over the sixty-month maximum useful life instead of the remaining agreement term. Estimated useful lives are summarized as follows: Schedule of Property and Equipment Estimated Useful Lives Computer equipment 3 5 Furniture and office equipment 5 7 Leased STEP equipment 5 Leasehold improvements 7 Building 39.5 Building Improvements 7 Intangible Assets Intangible assets at December 31, 2021 are comprised of various patents. We compute amortization expense on the patents using the straight-line method over the estimated remaining useful lives of 16 15 Cost of Products Sold Cost of products sold represents manufacturing costs, consisting of materials, labor and overhead related to finished goods and components. Cost of products sold includes depreciation of STEP contract fixed assets. Shipping costs incurred related to product delivery are included in cost of products sold. Advertising Costs Costs associated with advertising are expensed as incurred. Advertising expense was $ 422,831 512,655 Research and Development Costs Research and development costs are expensed as incurred. Research and development costs primarily include expenses, including labor, directly related to research and development support. Research and development expense was $ 1,865,880 1,603,379 Legal Costs Legal costs relating to loss contingencies are expensed as incurred. See Note 11. Commitments and Contingencies. Concentration of Credit Risk and Major Customers and Suppliers Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, certificates of deposit, accounts receivable and notes receivable. The Company’s cash, cash equivalents and certificates of deposit are maintained with financial institutions with high credit standings and are FDIC insured deposits. The FDIC insures deposits according to the ownership category in which the funds are insured and how the accounts are titled. The standard deposit insurance coverage limit is $ 250,000 19,207,786 6,338,896 Sales are typically made on credit and the Company generally does not require collateral. Management performs ongoing credit evaluations of its customers’ financial condition and maintains an allowance for estimated losses. Historically, the Company has experienced minimal charges relative to doubtful accounts. Management performs ongoing evaluations of the collectability of its notes receivable and maintains an allowance for estimated losses. As of December 31, 2021, the Company did not hold any notes receivables. (See Note 2. Notes Receivable and Note 9 Co-Venture Agreement with Modern Round) Historically, the Company primarily sells its products to U.S. federal and state agencies. For the year ended December 31, 2021, one commercial customer comprised 13.6 16 As of December 31, 2021, the Company did not have any customer that accounted for more than 10% of total accounts receivable. By comparison, as of December 31, 2020, one state agency comprised 31 Income Taxes Deferred tax assets and liabilities are recorded based on the difference between the financial statement and the tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The Company calculates a provision for income taxes using the asset and liability method, under which deferred tax assets and liabilities are recognized by identifying the temporary differences arising from the different treatment of items for tax and accounting purposes. In determining the future tax consequences of events that have been recognized in the financial statements or tax returns, judgment and interpretation of statutes are required. In assessing realizable deferred tax assets, management assesses the likelihood that deferred tax assets will be recovered from future taxable income, and to the extent that recovery is not likely or there is insufficient operating history, a valuation allowance is established. The Company adjusts the valuation allowance in the period management determines it is more likely than not that net deferred tax assets will or will not be realized. After review of the deferred tax asset and valuation allowance in accordance with ASC 740, management determined that it is more likely than not that the Company will fully realize all of its deferred tax asset and no valuation allowance was recorded at December 31, 2021 and 2020. The Company did not recognize any assets or liabilities relative to uncertain tax positions at December 31, 2021 and 2020. Interest or penalties, if any, will be recognized in income tax expense. Since there are no significant unrecognized tax benefits as a result of tax positions taken, there are no accrued penalties or interest. Tax positions are positions taken in a previously filed tax return or positions expected to be taken in a future tax return that are reflected in measuring current or deferred income tax assets and liabilities reported in the financial statements. The Company reflects tax benefits, only if it is more likely than not that the Company will be able to sustain the tax return position, based on its technical merits. If a tax benefit meets this criterion, it is measured and recognized based on the largest amount of benefit that is cumulatively greater than 50% likely to be realized. Management does not believe that there are any uncertain tax positions at December 31, 2021 or 2020. The Company is potentially subject to tax audits for its United States federal and various state income and excise tax returns for tax years between 2015 and 2021; however, earlier years may be subject to audit under certain circumstances. Tax audits by their very nature are often complex and can require several years to complete. Impairment of Long-Lived Assets Long lived assets, such as equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Fair value is determined based on discounted cash flows or appraised values, depending on the nature of the asset. At December 31, 2021 and 2020, the Company concluded that there has been no indication of impairment to the carrying value of its long-lived assets. As such, no impairment has been recorded. Stock Based Compensation The Company measures the cost of awards of equity instruments based on the grant date fair value of the awards. The Company calculates the fair value of stock-based awards using the Black-Scholes-Merton option pricing valuation model, which incorporates various assumptions including volatility, expected term and risk-free interest rates. See Note 11. Commitments and Contingencies and Note 13. Stockholders’ Equity regarding stock-based awards made during the year ended December 31, 2021. There were no grants of stock-based awards during the year ended December 31, 2020. The expected term of the options is the estimated period of time until exercise and was determined using an average of vesting and contractual terms, as we did not have sufficient historical experience of similar awards. The risk-free interest rate is based on the implied yield available on United States Treasury zero-coupon issues with an equivalent remaining term. The Company has not paid dividends in the past and does not plan to pay any dividends in the near future. The estimated fair value of stock-based compensation awards and other options is amortized to expense on a straight-line basis over the relevant vesting period. The Company has elected to recognize forfeitures as they occur rather than estimating them at the time of grant. Net Income (Loss)per Common Share The net income per common share is computed by dividing net income by the weighted average of common shares outstanding. Diluted net income per share reflects the potential dilution, using the treasury stock method, that would occur if outstanding stock options and warrants were exercised. Earnings per share computations are as follows: Schedule of Earnings Per Share Year Ended December 31, 2021 2020 Net income/(loss) $ 2,540,089 $ 1,478,403 Weighted average common stock outstanding 10,007,386 7,757,037 Incremental shares from stock options 53,362 78,793 Weighted average common stock outstanding diluted 10,060,748 7,835,830 Net income per common share and common equivalent shares Basic $ 0.25 $ .19 Diluted $ 0.25 $ .19 The Company has potentially dilutive securities outstanding that are not included in the diluted earnings per share calculation for the years ended December 31, 2021 and 2020 because their effect would be anti-dilutive. These potentially dilutive securities, comprised entirely of the Company’s stock options, totaled 0 98,750 New Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. ASU 2019-12 also simplifies aspects of accounting for franchise taxes and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. ASU 2019-12 is effective for annual and interim financial statement periods beginning after December 15, 2020, with early adoption permitted. The Company has implemented ASU 2019-12 for the 2021 fiscal year. |
Notes Receivable
Notes Receivable | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Notes Receivable | Note 2. Notes Receivable The Company accepted an unsecured convertible promissory note (the “Convertible Note”) from TEC, a former related party (see Note 9. Co-Venture Agreement with Modern Round), in the amount of $ 292,138 May 31, 2018 The Convertible Note bears interest at the rate of five percent ( 5 25 Any unpaid balance of principal and accrued interest becomes due and collectible on the earlier of (i) August 1, 2019 (maturity date), or (ii) if declared due and payable in the event of Default the Convertible Note’s maturity date was extended to August 2020 16,000 14,972 1,028 the Convertible Note’s maturity date was extended to August 2023 311,367 311,367 |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 3. Inventory Inventory consisted of the following as of: Schedule of Inventory December 31, 2021 December 31, 2020 Raw materials and work in process $ 5,229,636 $ 3,636,649 Reserve (214,712 ) (120,652 ) Total inventory $ 5,014,924 $ 3,515,997 During 2021 and 2020, the Company evaluated the useful life of its spare parts inventory. As a result of this evaluation, the Company classified $ 136,241 500,114 334,637 724,811 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 4. Property and Equipment Property and equipment consisted of the following as of: Schedule of Property and Equipment December 31, 2021 December 31, 2020 Land $ 1,778,987 $ - Building & Building Improvements 9,005,205 - Computer equipment 1,171,319 1,115,326 Furniture and office equipment 262,814 223,925 Machinery and equipment 1,970,007 1,096,898 STEP equipment 1,496,252 1,206,757 Leasehold improvements 334,934 334,934 Construction in Progress 7,000 - Total property and equipment 16,026,518 3,977,840 Less: Accumulated depreciation and amortization (3,161,752 ) (2,596,096 ) Property and equipment, net $ 12,864,766 $ 1,381,744 Depreciation expense, including STEP depreciation, was $ 585,279 371,265 On August 25, 2021, the Company completed the purchase of real property located in Chandler, Arizona (the “Property”) for $ 10,800,000 8,600,000 4.3 76,650 15,000 Under the provision of ASC 805, the Company determined this acquisition was an asset acquisition. This determination was based on substantially all of the fair value of the gross assets acquired was concentrated in the similarly identifiable assets of the Property. The fair value was allocated to the land, building, and acquired leases based upon their relative fair values at the date of acquisition in accordance with ASC 805-50-30-3. The fair value of the in-place leases is the estimated cost to replace the leases (including loss of rent, estimated commissions and legal fees paid in similar leases). The capitalized in-place leases are amortized over the remaining term of the leases as amortization expense. The fair value of the above or below market lease is the present value of the difference between the contractual amount to be paid pursuant to the in-place lease and the estimated current market lease rate expected over the remaining non-cancelable life of the lease. The capitalized above or below market lease values are amortized as a decrease or increase to the rental income over the remaining term of the lease. Upon closing, the Company assumed interest in two in-place leases. The first tenant took occupancy in November 2006 and is paying the annual Triple Net rate of $ 11.34 11.68 12.03 October 31, 2023 9.00 October 31, 2024 This tenant has the option to extend the lease for 5 years thru October 31, 2029 with 5% increases to the rental rate for the first 3 years The following table presents purchase price allocation for the assets acquired: Schedule of Purchase Price Allocation December 31, 2021 Land $ 1,778,987 Building and building improvements $ 8,937,050 Acquired Lease Intangible Assets $ 83,963 Total Purchase Price $ 10,800,000 |
Intangible Asset
Intangible Asset | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Asset | Note 5. Intangible Asset Intangible asset consisted of the following as of: Schedule of Intangible Asset December 31, 2021 December 31, 2020 Patents $ 160,000 $ 160,000 Capitalized media content 331,228 128,085 Acquired lease intangible assets 83,963 - Total intangible assets 575,191 288,085 Less accumulated amortization (40,112 ) (17,037 ) Intangible assets, net $ 535,079 $ 271,048 Amortization expense was $ 23,075 8,889 10.6 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Note 6. Leases The Company leases approximately 37,729 4,529 5,131 In addition to base rent, the Company’s lease generally provides for additional payments for other charges, such as rental tax. The lease includes fixed rent escalations. The Company’s lease does not include an option to renew. The Company determines if an arrangement is a lease at inception. Operating leases are recorded in operating lease right of use assets, net, operating lease liability – short-term, and operating lease liability – long-term on its balance sheets. Operating lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the Company’s lease does not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate used at adoption was 4.5 Effective January 1, 2019, the Company obtained a right-of-use asset in exchange for a new operating lease liability in the amount of $ 1,721,380 46,523 1,674,857 The balance sheet classification of lease assets and liabilities was as follows: Schedule of Balance Sheet Classification of Lease Assets and Liabilities Balance Sheet Classification December 31, 2021 December 31, 2020 Assets Operating lease right-of-use assets, beginning of period $ 1,094,527 $ 1,390,873 Amortization for the year ended (310,221 ) (296,346 ) Total operating lease right-of-use asset $ 784,306 $ 1,094,527 Liabilities Current Operating lease liability, short-term $ 347,772 $ 321,727 Non-current Operating lease liability, long-term 505,383 853,155 Total lease liabilities $ 853,155 $ 1,174,882 Future minimum lease payments as of December 31, 2021 under non-cancelable operating leases are as follows: Schedule of Future Minimum Lease Payments 2022 $ 379,097 2023 390,562 2024 131,152 Total lease payments 900,811 Less: imputed interest (47,656 ) Operating lease liability $ 853,155 The Company had a deferred rent liability of $ 0 356,555 412,315 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Note 7. Accrued Expenses Accrued compensation and related costs consisted of the following as of: Schedule of Accrued Compensation and Related Costs December 31, 2021 December 31, 2020 Salaries and wages payable $ 422,562 $ 278,331 Employee benefits payable 16,523 634 Accrued paid time off (PTO) 483,311 366,827 Profit sharing payable 139,682 197,309 Total accrued compensation and related costs $ 1,062,078 $ 843,101 Accrued expenses and other current liabilities consisted of the following as of: Schedule of Accrued Expenses and Other Current Liabilities December 31, 2021 December 31, 2020 Manufacturer’s warranties $ 384,000 $ 352,000 Taxes payable 113,921 316,076 Miscellaneous payable 493,823 104,808 Total accrued expenses and other current liabilities $ 991,744 $ 772,884 |
Note Payable
Note Payable | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Note Payable | Note 8. Note Payable On May 8, 2020, VirTra received a Promissory Note (the “PPP Note”) in the amount of $ 1,320,714 1 On July 20, 2021, the Company received notification from the Lender that the SBA had approved the Company’s PPP Loan forgiveness application for the entire amount of the PPP Loan. The forgiveness of the PPP Loan is recognized in Other Income in the accompanying statement of income. On August 25, 2021, the Company completed the purchase of real property located in Chandler, Arizona (the “Property”) for $ 10,800,000 8,600,000 3 40,978 5,956,538 August 23, 2031 The note payable amounts consist of the following: Schedule of Notes Payable December 31, 2021 December 31, 2020 Short-term liabilities: Note payable, principal $ 231,871 $ 257,471 Accrued interest on note 4,420 8,566 Note payable, short-term $ 236,291 $ 266,037 Long-term liabilities: Note payable, principal $ 8,280,395 $ 1,063,243 Note payable, long term $ 8,280,395 $ 1,063,243 |
Co-Venture Agreement with Moder
Co-Venture Agreement with Modern Round | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Co-Venture Agreement with Modern Round | Note 9. Co-Venture Agreement with Modern Round On January 16, 2015, the Company entered into a Co-Venture Agreement (the “Co-Venture Agreement”) with Modern Round, Inc. (“MR”), a wholly-owned subsidiary of TEC, a related party at that time. Mitchell Saltz, who was a member of our Board of Directors until his passing in October 2020, was the former Chairman of the Board and majority stockholder of TEC. The Co-Venture Agreement granted TEC an exclusive non-transferrable license to use the Company’s technology and certain equipment solely for use at locations to operate the concept, as defined in the Co-Venture Agreement. Additionally, under the terms of the Co-Venture Agreement, equity representing five percent ( 5 On August 16, 2017, the Company amended the Co-Venture Agreement to permit TEC to sublicense the VirTra technology to third party operators of stand-alone location-based entertainment companies. TEC agreed to pay the Company royalties for any such sublicenses in an amount equal to 10 % of the revenue paid to TEC in cases where TEC pays for the cost of the equipment for such location or 14 % of the revenue paid to TEC in cases where it does not pay for the cost of the equipment. On July 23, 2018, the Company further amended the Co-Venture Agreement to (i) confirm the minimum royalty deficiency benefit due for the royalty period ended May 31, 2018; (ii) establish payment terms for the minimum royalty deficiency benefit due, to include both cash and promissory note payment; (iii) clarify the exclusivity provisions of the Co-Venture Agreement; and (iv) amend the minimum royalty calculations to only TEC branded facilities. On July 31, 2019, the Company executed the First Amendment to Convertible Promissory Note with TEC to extend the Convertible Note’s maturity date for one additional year to August 1, 2020 16,000 In April 2018, MR effected a 1-for-12,000 reverse stock split, followed by a 2,000-for-1 forward stock split completed in November 2018 560,000 4.8 0 840,000 0 0 In addition, as of December 31, 2021, the Company held a warrant to purchase 25,577 2.4436 0 As of October 11, 2020, TEC ceased to be a related party. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 10. Related Party Transactions During the years ended December 31, 2021 and 2020, the Company redeemed 35,000 40,000 168,575 73,987 During the years ended December 31, 2021 and 2020, related parties exercised 7,500 30,000 11,320 30,163 Mr. Saltz, who was a member of our Board of Directors until his passing in October 2020, was the former Chairman of the Board and majority stockholder of TEC. The Company has entered into a Co-venture Agreement with TEC (See Note 9 Co-Venture Agreement with Modern Round) The Company owns 560,000 4.8% 0 46,247 0 Mr. Richardson, who is a member of our Board of Directors, was acting CEO of Natural Point, Inc. until May 14, 2021, a vendor of the Company. In 2021 and 2020, the Company purchased specialized equipment from Natural Point in the amounts of $ 33,840 232,218 0 Mr. Givens was a member of our Board of Directors and is currently co-CEO of VirTra, Inc. He was President of Bohemia Interactive Simulations, Inc. until April 2022. In 2021, VirTra purchased gaming simulation software (VBS3) licenses from Bohemia in the amount of $ 11,950 no |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11. Commitments and Contingencies General or Threatened Litigation From time to time, the Company is notified of threatened litigation or that a claim is being made against it. The Company evaluates contingencies on an on-going basis and has established loss provisions for matters in which losses are probable and the amount of loss can be reasonably estimated. Employment Agreements On April 2, 2012, the Company entered into three-year Employment Agreements with its Chief Executive Officer and Chief Operating Officer that call for base annual salaries of $ 195,000 175,000 349,860 251,140 On August 26, 2021, the Compensation Committee of the Board of Directors (the “Compensation Committee”), relying upon third-party studies and recommendations, took several actions to bring the compensation of the Company’s Chief Executive officer (CEO) and Chief Operating Officer (COO) up to industry standards and provide meaningful incentive for future performance. The Committee (1) approved grants of 224,133 168,090 1,559,966 1,169,906 14,057 10,543 97,837 73,379 349,860 251,140 Beginning on the last business day of August 2022, a tranche of restricted stock units may vest if the Company has achieved net profit (net income under GAAP) for the twelve months ending June 30, 2022, of at least $2,500,000. For every $500,000 earned in excess of $2,500,000 another tranche will vest. If the maximum net profits (net income under GAAP) of $7,000,000 is achieved, ten tranches would vest. Similarly, on the last business day of August 2023, a tranche of restricted stock units may vest if the Company has achieved a net profit (net income under GAAP) of at least $3,000,000, with the potential to have additional tranches vest up to a maximum of $9,000,000 in net profit (net income under GAAP). This vesting arrangement continues with the last business day of August 2024, with the minimum net profit (net income under GAAP) threshold being $3,500,000 and the maximum net profit (net income under GAAP) being $11,000,000 It is the Company’s policy to estimate the fair value of the RSU’s on the date of the grant and evaluate the probability of achieving the net profit (net income under GAAP) tranches quarterly. If the target is deemed probable, the expense is amortized on a straight-line basis over the remaining time period. The Company determined based on the vesting terms described above that the net profit (net income under GAAP) for the twelve months ending June 30, 2022, of $ 2,500,000 52,498 Profit Sharing VirTra provides a discretionary profit-sharing program that pays out a percentage of Company profits each year as a cash bonus to eligible employees. The cash payment is typically split into two equal payments and distributed pro-rata in April and October of the following year only to active employees. For the years ended December 31, 2021 and 2020, the amount expensed to operations was $ 139,682 206,869 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 12. Income Taxes The Company accounts for its deferred tax assets and liabilities, including excess tax benefits of share-based payments, based on the tax ordering of deductions to be used on its tax returns. The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities for the years ended December 31 is as follows: Schedule of Deferred Tax Assets and Liabilities Years ending December 31, 2021 2020 Deferred Tax Assets: Net Operating Loss Carry Forwards $ 84,303 $ 324,000 Tax Credits 1,050,595 907,000 Deferred Revenue 253,319 152,000 Stock Compensation 183,953 120,000 Investment in TEC 83,277 89,000 Reserves, Accruals, and Other 295,444 254,000 Fixed Assets - 46,000 intangibles 252,716 - Total Deferred Tax Assets $ 2,203,607 $ 1,892,000 Deferred Tax Liabilities: Fixed Assets $ (529,373 ) $ - Total Deferred Tax Liabilities $ (529,373 ) $ - Valuation Allowance - - Net Deferred Taxes $ 1,674,234 $ 1,892,000 Internal Revenue Code Section 382 limits the ability to utilize net operating losses if a 50% change in ownership occurs over a three-year period. The Company does not believe that such limitation of the net operating losses has occurred. Significant components of the provision (benefit) for income tax for the years ended December 31 as follows: Schedule of Significant Components of Income Tax Provision 2021 2020 Current $ 28,283 $ (118,800 ) Deferred 217,767 (100,000 ) Change in valuation allowance - - Provision (benefit) for income taxes $ 246,050 $ (218,800 ) The Company is subject to federal and state taxes. Reconciliations of the Company’s effective income tax rate to the federal statutory rate for the years ended December 31 are as follows: Schedule of Reconciliation of Income Tax Rate 2021 2020 Federal income tax expense at the statutory rate 21.0 % 21.0 % State income taxes, net of federal benefit 3.1 % 5.5 % Research credits -5.5 % 0.0 % Permanent differences 0.2 % 14.8 % True ups to tax return and other 0.0 % -58.7 % PPP Loan Forgiveness -9.9 % 0.0 % Change in valuation allowance 0.0 % 0.0 % Provision (benefit) for income taxes 8.9 % -17.4 % The benefit for income taxes increased in 2020 from a true-up of the deferred tax asset and temporary timing differences in deferred revenue, reserves, depreciation and amortization, and net operating loss carryforward, offset by an adjustment for taxes prepaid and refunded from prior year tax over payments. |
Stockholders_ Equity
Stockholders’ Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Stockholders’ Equity | Note 13. Stockholders’ Equity Authorized Capital Common Stock. Authorized Shares 60,000,000 0.0001 50,000,000 0.0001 2,500,000 0.0001 7,500,000 0.0001 Rights and Preferences (i) Each holder of common stock shall be entitled to one (1) vote for each share of common stock held of record by such holder. The holders of shares of common stock shall not have cumulative voting rights (ii) Each holder of Class A Common Stock shall be entitled to ten (10) votes for each share of Class A Common Stock held of record by such holder. The holders of shares of Class A Common Stock shall not have cumulative voting rights (iii) The holders of common stock and Class A Common Stock shall vote together as a single class on all matters on which stockholders are generally entitled to vote. (iv) The holders of Class B Common Stock shall not be entitled to vote on any matter, except that the holders of Class B Common Stock shall be entitled to vote separately as a class with respect to amendments to the Articles of Incorporation that increase or decrease the aggregate number of authorized shares of such class, increase or decrease the par value of the shares of such class, or alter or change the powers, preferences, or special rights of the shares of such class so as to affect them adversely Preferred Stock Authorized Shares 2,500,000 0.0001 Rights and Preferences Stock Repurchase On October 25, 2016 the Company’s Board of Directors authorized the repurchase of up to $ 1 1 Treasury Stock During the years ended December 31, 2021 and 2020, the Company purchased no treasury shares. Non-qualified Stock Options The Company has periodically issued non-qualified stock options to key employees, officers and directors under a stock option compensation plan approved by the Board of Directors in 2009. Terms of option grants are at the discretion of the Board of Directors and are generally seven years. Upon the exercise of these options, the Company expects to issue new authorized shares of its common stock. The following table summarizes all non-qualified stock options as of: Schedule of Non-qualified Stock Options December 31, 2021 December 31, 2020 Number of Weighted Number of Weighted Stock Options Exercise Price Stock Options Exercise Price Options outstanding, beginning of year 164,167 $ 3.13 234,167 $ 2.47 Granted - - - - Redeemed (35,000 ) 1.85 (40,000 ) 0.88 Exercised (7,500 ) 1.51 (30,000 ) 1.01 Expired / terminated (9,167 ) 4.59 - - Options outstanding, end of year 112,500 $ 3.51 164,167 $ 3.13 Options exercisable, end of year 112,500 $ 3.51 164,167 $ 3.13 The Company did not have any non-vested stock options outstanding as of December 31, 2021. The weighted average contractual term for options outstanding and exercisable at December 31, 2021 and 2020 was 7 392,065 138,487 252,635 63,437 11,320 30,166 0 The following table summarizes information about stock options outstanding and exercisable as of December 31, 2021: Schedule of Stock Options Outstanding and Exercisable Range of Number of Weighted Number of Weighted $ 1.00 1.99 22,500 $ 1.80 22,500 $ 1.80 $ 2.00 2.99 22,500 $ 2.51 22.500 $ 2.51 $ 3.00 3.99 22,500 $ 3.47 22,500 $ 3.47 $ 4.00 4.99 22,500 $ 4.24 22,500 $ 4.24 $ 5.00 5.99 22,500 $ 5.54 22,500 $ 5.54 112,500 $ 3.51 112.500 $ 3.51 The following table summarizes information about stock options outstanding and exercisable as of December 31, 2020: Range of Number of Weighted Number of Weighted $ .80 .99 11,250 $ 0.98 11,250 $ 0.98 $ 1.00 1.99 33,750 $ 1.68 33,750 $ 1.68 $ 2.00 2.99 42,500 $ 2.48 42,500 $ 2.48 $ 3.00 3.99 25,000 $ 3.50 25,000 $ 3.50 $ 4.00 4.99 25,000 $ 4.25 25,000 $ 4.25 $ 5.00 5.99 26,667 $ 5.50 26,667 $ 5.50 164,167 $ 3.13 164,167 $ 3.13 2017 Equity Incentive Plan On August 23, 2017, our Board approved, subject to stockholder approval at the annual meeting of stockholders on October 6, 2017, the VirTra, Inc. 2017 Equity Incentive Plan (the “Equity Plan”). The Equity Plan is intended to make available incentives that will assist us to attract, retain and motivate employees, including officers, consultants and directors. We may provide these incentives through the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares and units and other cash-based or stock-based awards. A total of 1,187,500 3 Awards may be granted under the Equity Plan to our employees, including officers, directors or consultants or those of any present or future parent or subsidiary corporation or other affiliated entity. All awards will be evidenced by a written agreement between us and the holder of the award and may include any of the following: stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares and performance units and cash-based awards and other stock-based awards. Through December 31, 2021, 224,133 168,090 14,057 10,543 Common stock activity On August 26, 2021, the Compensation Committee of the Board of Directors approved grants of 14,057 10,543 On March 31, 2021, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain institutional investors (the “Purchasers”), pursuant to which the Company agreed to sell to the Purchasers an aggregate of 3,000,000 6.00 The Company also entered into a placement agent agreement (the “Placement Agency Agreement”) on March 31, 2021, with Roth Capital Partners, LLC (“Roth”), pursuant to which Roth agreed to serve as placement agent for the issuance and sale of the RDO Shares. The Company agreed to pay Roth an aggregate fee equal to 6.5 35,000 Roth acted as the lead placement agent in the Offering. Lake Street Capital Markets acted as co-placement agent for the Offering. Maxim Group LLC acted as a financial advisor to the Company in connection with the Offering. A prospectus supplement and the accompanying prospectus relating to and describing the terms of the Offering, dated March 31, 2021, was filed with the SEC on April 2, 2021. On April 5, 2021, the Company closed the Offering. The total gross proceeds of the Offering were $ 18.0 1,205,000 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 14. Subsequent Events On May 2, 2022, VirTra, Inc. announced the appointment of John F. Givens II as its co-Chief Executive Officer, effective April 11, 2022. Mr. Givens has been serving as a director of VirTra since November 2020. VirTra has agreed to pay Mr. Givens an initial annual base salary of $ 298,990 64,815 Mr. Givens was also granted 288,889 pursuant to VirTra’s 2017 Equity Incentive Plan. Beginning on the last business day of August 2022, a tranche of restricted stock units, having an approximate value of $40,000, based on current grant day prices, may vest if the Company has achieved net profit for the twelve months ending June 30, 2022 of at least $2,500,000. For every $500,000 earned in excess of $2,500,000 another tranche will vest. If the maximum net profit of $7,000,000 is achieved, ten tranches would vest. Similarly, on the last business day of August 2023, a tranche of restricted stock units may vest if the Company has achieved a net profit of at least $3,000,000, with the potential to have additional tranches vest up to a maximum of $9,000,000 in net profit. This vesting arrangement continues with the last business day of August 2024, with the minimum net profit threshold being $3,500,000 and the maximum net profit being $11,000,000 The vesting schedule notwithstanding, the Compensation Committee shall have the discretion to declare the vesting of any number of restricted stock units should the Company experience unusual results of operations, such as falling below the net profit threshold one year and exceeding the maximum net profit the following year, so long as the total number of restricted stock units declared to be vested does not exceed the amount awarded. Additionally, while a maximum net profit per year has been set for allocation of the available shares at this time, it is very possible that the Company will exceed these levels during the next 3 years and if such performance occurs, the Compensation Committee will meet to determine if additional compensation is in the best interests of the Company at that time. |
Organization and Significant _2
Organization and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Organization and Business Operations | Organization and Business Operations VirTra, Inc. (the “Company,” “VirTra,” “we,” “us” or “our”), located in Chandler, Arizona, is a global provider of judgmental use of force training simulators, firearms training simulators and driving simulators for the law enforcement, military, educational and commercial markets. The Company’s patented technologies, software, and scenarios provide intense training for de-escalation, judgmental use-of-force, marksmanship and related training that mimics real-world situations. VirTra’s mission is to save and improve lives worldwide through practical and highly-effective virtual reality and simulator technology. The Company sells its products worldwide through a direct sales force and international distribution partners. The original business started in 1993 as Ferris Productions, Inc. In September 2001, Ferris Productions, Inc. merged with GameCom, Inc. to ultimately become VirTra, Inc., a Nevada corporation. During March 2020, a global pandemic was declared by the World Health Organization related to the rapidly growing outbreak of a novel strain of coronavirus (COVID-19). The pandemic has significantly impacted the economic conditions in the U.S., accelerating during half of March and April as federal, state and local governments react to the public health crisis, creating significant uncertainties in the U.S. economy. On March 30, 2020, the Governor for the State of Arizona issued a stay-at-home order which expired on May 15, 2020, upon which Arizona entered Phase I of reopening. The Company carefully reviewed all rules and regulations of the government orders and determined it met the requirements of an essential business to remain open. The Company had the majority of its staff begin working remotely in mid-March, with only essential personnel continue working at the manufacturing and production facilities and currently remains in Arizona’s Phase I of reopening. This situation is rapidly changing and additional impacts to the business may arise that we are not aware of currently. While the disruption is currently expected to be temporary, there is uncertainty around the duration. The ultimate impact of the pandemic on the Company’s results of operations, financial position, liquidity or capital resources cannot be reasonably estimated at this time. To date, the COVID-19 restrictions have resulted in reduced customer shipments and customer system installations. These recent developments are expected to result in lower recognized revenue and possibly lower gross margin when they occur. To date, there have been no order cancellations; rather, there have only been delays in when orders ship or installations occur and all delayed orders remain in backlog. Although not a material component of our company, a significant adverse change in the business climate could continue to affect the value of the Company’s long-term investment in TEC, including the long-term note receivable from TEC. Any future impact cannot be reasonably estimated at this time. The Company is no longer investing in Certificates of Deposits as a precautionary measure to increase its liquid cash position and preserve financial flexibility considering uncertainty in the U.S. and global markets resulting from COVID-19. Additionally, the Company’s stock repurchase program was suspended as a result of interim rulings for public-company recipients of a Paycheck Protection Program (“PPP”) loan under the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”). The stock repurchase suspension remained in effect for the duration of the outstanding PPP loan and continues to remain in effect even though the PPP loan has been forgiven and is no longer outstanding. |
Basis of Presentation | Basis of Presentation The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Significant accounting estimates in these financial statements include valuation assumptions for share-based payments, allowance for doubtful accounts and notes receivable, inventory reserves, accrual for warranty reserves, the carrying value of long-lived assets and intangible assets, income tax valuation allowances, the carrying value of cost basis investments, and the allocation of the transaction price to the performance obligations in our contracts with customers. |
Revenue Recognition | Revenue Recognition The Company adopted the Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customer (Topic 606) (“ASC 606”) on January 1, 2018 and the Company elected to use the modified retrospective transition method which requires application of ASC 606 to uncompleted contracts at the date of adoption. The adoption of ASC 606 did not have a material impact on the financial statements. Under ASC 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. Significant judgment is necessary when making these determinations. The Company’s primary sources of revenue are derived from simulator and accessories sales, training and installation, the sale of customizable software, the sale of customized content scenarios, and the sale of extended service-type warranties. Sales discounts are presented in the financial statements as reductions in determining net revenues. Credit sales are recorded as current assets (accounts receivable and unbilled revenue). Prepaid deposits received at the time of sale and extended warranties purchased are recorded as current and long-term liabilities (deferred revenue) until earned. The following briefly summarizes the nature of our performance obligations and method of revenue recognition: Performance Obligation Method of Recognition Simulator and accessories Upon transfer of control Installation and training Upon completion or over the period of services being rendered Extended service-type warranty Deferred and recognized over the life of the extended warranty Customized software and content Upon transfer of control or over the period services are performed depending on the terms of the contract Customized content scenario As performance obligation is transferred over time (input method using time and materials expended) Sales-based royalty exchanged for license of intellectual property Recognized as the performance obligation is satisfied over time – which is as the sales occur The Company recognizes revenue upon transfer of control or upon completion of the services for the simulator and accessories; for the installation and training and customized software performance obligations as the customer has the right and ability to direct the use of these products and services and the customer obtains substantially all of the remaining benefit from these products and services at that time. Revenue from certain customized content contracts may be recognized over the period the services are performed based on the terms of the contract. For the sales-based royalty exchanged for license of intellectual property, the Company recognized revenue as the sales occur over time. The Company recognizes revenue on a straight-line basis over the period of services being rendered for the extended service-type warranties as these warranties represent a performance obligation to “stand ready to perform” over the duration of the warranties. As such, the warranty service is performed continuously over the warranty period. Each contract states the transaction price. The contracts do not include variable consideration, significant financing components or noncash consideration. The Company has elected to exclude sales and similar taxes from the measurement of the transaction price. The contract’s transaction price is allocated to the performance obligations based upon their stand-alone selling prices. Discounts to the stand-alone selling prices, if any, are allocated proportionately to each performance obligation. |
Disaggregation of Revenue | Disaggregation of Revenue Under ASC 606, disaggregated revenue from contracts with customers depicts the nature, amount, timing, and uncertainty of revenue and cash flows affected by economic factors. The Company has evaluated revenues recognized and the following table illustrates the disaggregation disclosure by customer’s location and performance obligation. Schedule of Disaggregation of Revenues Year ended December 31, 2021 2020 Commerical Government International Total Commerical Government International Total Simulators and accessories $ 2,890,848 $ 12,302,223 $ 4,073,008 $ 19,266,079 $ 1,052,223 $ 12,450,793 $ 299,430 $ 13,802,446 Extended service-type warranties 107,289 2,716,436 101,111 2,924,836 74,290 2,408,379 138,771 2,621,440 Customized software and content 57,200 1,139,841 112,869 1,309,910 100,109 1,957,635 - 2,057,744 Installation and training 102,882 677,930 143,587 924,399 17,004 534,478 4,962 556,444 Licensing and royalities 8,832 - - 8,832 49,557 - - 49,557 Total Revenue $ 3,167,051 $ 16,836,430 $ 4,430,575 $ 24,434,056 $ 1,293,183 $ 17,351,285 $ 443,163 $ 19,087,631 Commercial customers include selling through prime contractors for military or law enforcement contracts, domestically. Government customers are defined as directly selling to government agencies. For the year ended December 31, 2021, governmental customers comprised $ 16,836,430 68.9 3,167,051 13.0 4,430,575 18.1 17,351,285 90.9 1,293,183 6.8 443,163 2.3 1,963,562 794,524 8.0 4.2 |
Customer Deposits | Customer Deposits Customer deposits consist of prepaid deposits received for equipment purchase orders and for Subscription Training Equipment Partnership (“STEP”) operating agreements that expire annually. Customer deposits are considered a deferred liability until the completion of the customer’s contract performance obligation. When revenue is recognized, the deposit is applied to customer’s receivable balance. Customer deposits are recorded as a current liability under deferred revenue on the accompanying balance sheet and totaled $ 2,371,531 2,517,175 1,550,333 325,844 |
Warranty | Warranty The Company warranties its products from manufacturing defects on a limited basis for a period of one year after purchase, but also sells separately priced extended service-type warranties for periods of up to four years after the expiration of the standard one-year warranty. During the term of the initial one-year warranty, if the device fails to operate properly from defects in materials and workmanship, the Company will fix or replace the defective product. Deferred revenue for separately priced extended warranties one year or less totaled $ 1,764,034 2,191,400 1,815,871 1,920,346 384,000 352,000 2,924,836 2,621,440 |
Customer Retainage | Customer Retainage Customer retainage is recorded as a current liability under deferred revenue on the accompanying balance sheets and totaled $ 0 0 10,720 |
Licensing and Royalties with Former Related Party | Licensing and Royalties with Former Related Party As discussed further in Note 9. Co-Venture Agreement with Modern Round, the Company licenses intellectual property to Modern Round, LLC (“MR”), a wholly-owned subsidiary of That’s Eatertainment Corp. (“TEC”), f/k/a Modern Round Entertainment Corp. (“MREC”), a former related party, in exchange for sales-based royalties. Revenues from this agreement are recognized in accordance with the terms of the contract as the sales occur. The Company receives additional immaterial sales-based royalties from strategic partners. Effective October 12, 2020, TEC and MREC no longer meet the requirements to be considered related parties. |
STEP Revenue | STEP Revenue The Company’s STEP operations consist principally of renting its simulator products under operating agreements expiring in one year. At the commencement of a STEP agreement, any rental payments received are deferred and no income is recognized. Subsequently, payments are amortized and recognized as revenue on a straight-line basis over the term of the agreement. The agreements are generally for a period of 12 months and can be renewed for additional 12-month periods. Agreements may be terminated by either party upon written notice of termination at lease sixty days prior to the end of the 12-month period. The payments are generally fixed for the first year of the agreement, with increases in payments in subsequent years to be mutually agreed upon. The agreements do not include variable lease payments or free rent periods. In addition, the agreements do not provide for the underlying assets to be purchased at its fair market values at interim periods or at maturity. Each STEP agreement comes with full customer support and stand-ready advance replacement parts to maintain each system for the duration of the lease. The amount that the Company expects to derive from the STEP equipment following the end of the agreement term is dependent upon the number of agreement terms renewed. The agreements do not include a residual value guarantee. |
Fair Value Measurements | Fair Value Measurements ASC Topic 820, Fair Value Measurements Level 1: Quoted prices in active markets for identical assets or liabilities; Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3: Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimate of assumptions that market participants would use in pricing the asset or liability. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, certificates of deposit, accounts receivable, notes and interest receivables, accounts payable, and accrued liabilities. The fair value of financial instruments, except for long-term notes receivable, approximates their carrying values, using level 3 inputs, at December 31, 2021 and 2020 due to their short maturities. The fair value of the notes receivable approximates its carrying value, using level 3 inputs, at December 31, 2021 and 2020. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of 90 days or less at the time of purchase to be cash equivalents. |
Certificates of Deposit and Mutual Funds | Certificates of Deposit and Mutual Funds The Company invests its excess cash in certificates of deposit and money market mutual funds issued by financial institutions with high credit ratings. The certificates of deposit generally have average maturities of approximately six months and are subject to penalties for early withdrawal. The money market mutual funds are open ended and can be withdrawn at any time without penalty. |
Accounts and Notes Receivable and Allowance for Doubtful Accounts | Accounts and Notes Receivable and Allowance for Doubtful Accounts The Company recognizes an allowance for losses on accounts receivable based on an analysis of historical bad debt experience, current receivables aging, and expected future write-offs, as well as an assessment of specific identifiable customer accounts considered at risk or uncollectible. Accounts receivable do not bear interest and are charged off after all reasonable collection efforts have been taken. The Company maintained an allowance for doubtful accounts of $ 35,432 34,959 Notes receivable are carried at their estimated collectible amounts. Interest income on notes receivable is recognized using the effective interest method. Notes receivable are periodically evaluated for collectability based on the credit history, the current financial condition of the counter party, and the known and inherent risks in the notes. Notes receivable are placed on nonaccrual status when they become 90 days past due and the customer has not made a payment in over 60 days. Upon suspension of the accrual of interest, interest income is subsequently recognized to the extent cash payments are received. Accrual of interest is resumed when notes are removed from non-accrual status. Notes receivable are charged against the allowance for credit losses when they are deemed to be uncollectible. The Company recorded a reserve for the full amount of a note receivable and accrued interest from a former related party totaling $ 311,367 0 311,367 |
Inventory | Inventory Inventory is stated at the lower of cost or net realizable value with cost being determined on the average cost method. Work in progress and finished goods inventory includes an allocation for capitalized labor and overhead. The Company routinely evaluates the carrying value of inventory for slow moving and potentially obsolete inventory and, when appropriate, will record an adjustment to reduce inventory to its estimated net realizable value. Inventory reserves were $ 214,712 120,652 |
Investments in Other Companies | Investments in Other Companies The Company accounts for investments in other companies that do not have a readily determinable fair value at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The Company has elected to utilize the cost minus impairment approach because the investment in TEC does not have a readily determinable fair value as of the reporting date. See Note 9. Co-Venture Agreement with Modern Round. Management regularly evaluates the recoverability of its investment based on the investee company’s performance and financial position. For the year ended December 31, 2021 and 2020, the Company recognized an impairment loss of $ 0 840,000 |
Schedule of Property and Equipment Estimated Useful Lives | Property and Equipment Property and equipment are carried at cost, net of depreciation. Gains or losses related to retirements or disposition of fixed assets are recognized in operations in the period incurred. Costs of normal repairs and maintenance are charged to expense as incurred, while betterments or renewals are capitalized. Depreciation commences at the time the assets are placed in service or for STEP equipment under agreements, when the equipment is made available for use by the customer. Depreciation is provided using the straight-line method over the estimated economic lives of the assets or for leasehold improvements, over the shorter of the estimated useful life or the remaining lease term. For STEP equipment under agreements, depreciation is provided using the straight-line method over the sixty-month maximum useful life instead of the remaining agreement term. Estimated useful lives are summarized as follows: Schedule of Property and Equipment Estimated Useful Lives Computer equipment 3 5 Furniture and office equipment 5 7 Leased STEP equipment 5 Leasehold improvements 7 Building 39.5 Building Improvements 7 |
Intangible Assets | Intangible Assets Intangible assets at December 31, 2021 are comprised of various patents. We compute amortization expense on the patents using the straight-line method over the estimated remaining useful lives of 16 15 |
Cost of Products Sold | Cost of Products Sold Cost of products sold represents manufacturing costs, consisting of materials, labor and overhead related to finished goods and components. Cost of products sold includes depreciation of STEP contract fixed assets. Shipping costs incurred related to product delivery are included in cost of products sold. |
Advertising Costs | Advertising Costs Costs associated with advertising are expensed as incurred. Advertising expense was $ 422,831 512,655 |
Research and Development Costs | Research and Development Costs Research and development costs are expensed as incurred. Research and development costs primarily include expenses, including labor, directly related to research and development support. Research and development expense was $ 1,865,880 1,603,379 |
Legal Costs | Legal Costs Legal costs relating to loss contingencies are expensed as incurred. See Note 11. Commitments and Contingencies. |
Concentration of Credit Risk and Major Customers and Suppliers | Concentration of Credit Risk and Major Customers and Suppliers Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, certificates of deposit, accounts receivable and notes receivable. The Company’s cash, cash equivalents and certificates of deposit are maintained with financial institutions with high credit standings and are FDIC insured deposits. The FDIC insures deposits according to the ownership category in which the funds are insured and how the accounts are titled. The standard deposit insurance coverage limit is $ 250,000 19,207,786 6,338,896 Sales are typically made on credit and the Company generally does not require collateral. Management performs ongoing credit evaluations of its customers’ financial condition and maintains an allowance for estimated losses. Historically, the Company has experienced minimal charges relative to doubtful accounts. Management performs ongoing evaluations of the collectability of its notes receivable and maintains an allowance for estimated losses. As of December 31, 2021, the Company did not hold any notes receivables. (See Note 2. Notes Receivable and Note 9 Co-Venture Agreement with Modern Round) Historically, the Company primarily sells its products to U.S. federal and state agencies. For the year ended December 31, 2021, one commercial customer comprised 13.6 16 As of December 31, 2021, the Company did not have any customer that accounted for more than 10% of total accounts receivable. By comparison, as of December 31, 2020, one state agency comprised 31 |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recorded based on the difference between the financial statement and the tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The Company calculates a provision for income taxes using the asset and liability method, under which deferred tax assets and liabilities are recognized by identifying the temporary differences arising from the different treatment of items for tax and accounting purposes. In determining the future tax consequences of events that have been recognized in the financial statements or tax returns, judgment and interpretation of statutes are required. In assessing realizable deferred tax assets, management assesses the likelihood that deferred tax assets will be recovered from future taxable income, and to the extent that recovery is not likely or there is insufficient operating history, a valuation allowance is established. The Company adjusts the valuation allowance in the period management determines it is more likely than not that net deferred tax assets will or will not be realized. After review of the deferred tax asset and valuation allowance in accordance with ASC 740, management determined that it is more likely than not that the Company will fully realize all of its deferred tax asset and no valuation allowance was recorded at December 31, 2021 and 2020. The Company did not recognize any assets or liabilities relative to uncertain tax positions at December 31, 2021 and 2020. Interest or penalties, if any, will be recognized in income tax expense. Since there are no significant unrecognized tax benefits as a result of tax positions taken, there are no accrued penalties or interest. Tax positions are positions taken in a previously filed tax return or positions expected to be taken in a future tax return that are reflected in measuring current or deferred income tax assets and liabilities reported in the financial statements. The Company reflects tax benefits, only if it is more likely than not that the Company will be able to sustain the tax return position, based on its technical merits. If a tax benefit meets this criterion, it is measured and recognized based on the largest amount of benefit that is cumulatively greater than 50% likely to be realized. Management does not believe that there are any uncertain tax positions at December 31, 2021 or 2020. The Company is potentially subject to tax audits for its United States federal and various state income and excise tax returns for tax years between 2015 and 2021; however, earlier years may be subject to audit under certain circumstances. Tax audits by their very nature are often complex and can require several years to complete. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long lived assets, such as equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Fair value is determined based on discounted cash flows or appraised values, depending on the nature of the asset. At December 31, 2021 and 2020, the Company concluded that there has been no indication of impairment to the carrying value of its long-lived assets. As such, no impairment has been recorded. |
Stock Based Compensation | Stock Based Compensation The Company measures the cost of awards of equity instruments based on the grant date fair value of the awards. The Company calculates the fair value of stock-based awards using the Black-Scholes-Merton option pricing valuation model, which incorporates various assumptions including volatility, expected term and risk-free interest rates. See Note 11. Commitments and Contingencies and Note 13. Stockholders’ Equity regarding stock-based awards made during the year ended December 31, 2021. There were no grants of stock-based awards during the year ended December 31, 2020. The expected term of the options is the estimated period of time until exercise and was determined using an average of vesting and contractual terms, as we did not have sufficient historical experience of similar awards. The risk-free interest rate is based on the implied yield available on United States Treasury zero-coupon issues with an equivalent remaining term. The Company has not paid dividends in the past and does not plan to pay any dividends in the near future. The estimated fair value of stock-based compensation awards and other options is amortized to expense on a straight-line basis over the relevant vesting period. The Company has elected to recognize forfeitures as they occur rather than estimating them at the time of grant. |
Net Income (Loss)per Common Share | Net Income (Loss)per Common Share The net income per common share is computed by dividing net income by the weighted average of common shares outstanding. Diluted net income per share reflects the potential dilution, using the treasury stock method, that would occur if outstanding stock options and warrants were exercised. Earnings per share computations are as follows: Schedule of Earnings Per Share Year Ended December 31, 2021 2020 Net income/(loss) $ 2,540,089 $ 1,478,403 Weighted average common stock outstanding 10,007,386 7,757,037 Incremental shares from stock options 53,362 78,793 Weighted average common stock outstanding diluted 10,060,748 7,835,830 Net income per common share and common equivalent shares Basic $ 0.25 $ .19 Diluted $ 0.25 $ .19 The Company has potentially dilutive securities outstanding that are not included in the diluted earnings per share calculation for the years ended December 31, 2021 and 2020 because their effect would be anti-dilutive. These potentially dilutive securities, comprised entirely of the Company’s stock options, totaled 0 98,750 |
New Accounting Pronouncements | New Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. ASU 2019-12 also simplifies aspects of accounting for franchise taxes and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. ASU 2019-12 is effective for annual and interim financial statement periods beginning after December 15, 2020, with early adoption permitted. The Company has implemented ASU 2019-12 for the 2021 fiscal year. |
Organization and Significant _3
Organization and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Disaggregation of Revenues | Under ASC 606, disaggregated revenue from contracts with customers depicts the nature, amount, timing, and uncertainty of revenue and cash flows affected by economic factors. The Company has evaluated revenues recognized and the following table illustrates the disaggregation disclosure by customer’s location and performance obligation. Schedule of Disaggregation of Revenues Year ended December 31, 2021 2020 Commerical Government International Total Commerical Government International Total Simulators and accessories $ 2,890,848 $ 12,302,223 $ 4,073,008 $ 19,266,079 $ 1,052,223 $ 12,450,793 $ 299,430 $ 13,802,446 Extended service-type warranties 107,289 2,716,436 101,111 2,924,836 74,290 2,408,379 138,771 2,621,440 Customized software and content 57,200 1,139,841 112,869 1,309,910 100,109 1,957,635 - 2,057,744 Installation and training 102,882 677,930 143,587 924,399 17,004 534,478 4,962 556,444 Licensing and royalities 8,832 - - 8,832 49,557 - - 49,557 Total Revenue $ 3,167,051 $ 16,836,430 $ 4,430,575 $ 24,434,056 $ 1,293,183 $ 17,351,285 $ 443,163 $ 19,087,631 |
Schedule of Property and Equipment Estimated Useful Lives | Schedule of Property and Equipment Estimated Useful Lives Computer equipment 3 5 Furniture and office equipment 5 7 Leased STEP equipment 5 Leasehold improvements 7 Building 39.5 Building Improvements 7 |
Schedule of Earnings Per Share | The net income per common share is computed by dividing net income by the weighted average of common shares outstanding. Diluted net income per share reflects the potential dilution, using the treasury stock method, that would occur if outstanding stock options and warrants were exercised. Earnings per share computations are as follows: Schedule of Earnings Per Share Year Ended December 31, 2021 2020 Net income/(loss) $ 2,540,089 $ 1,478,403 Weighted average common stock outstanding 10,007,386 7,757,037 Incremental shares from stock options 53,362 78,793 Weighted average common stock outstanding diluted 10,060,748 7,835,830 Net income per common share and common equivalent shares Basic $ 0.25 $ .19 Diluted $ 0.25 $ .19 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consisted of the following as of: Schedule of Inventory December 31, 2021 December 31, 2020 Raw materials and work in process $ 5,229,636 $ 3,636,649 Reserve (214,712 ) (120,652 ) Total inventory $ 5,014,924 $ 3,515,997 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following as of: Schedule of Property and Equipment December 31, 2021 December 31, 2020 Land $ 1,778,987 $ - Building & Building Improvements 9,005,205 - Computer equipment 1,171,319 1,115,326 Furniture and office equipment 262,814 223,925 Machinery and equipment 1,970,007 1,096,898 STEP equipment 1,496,252 1,206,757 Leasehold improvements 334,934 334,934 Construction in Progress 7,000 - Total property and equipment 16,026,518 3,977,840 Less: Accumulated depreciation and amortization (3,161,752 ) (2,596,096 ) Property and equipment, net $ 12,864,766 $ 1,381,744 |
Schedule of Purchase Price Allocation | The following table presents purchase price allocation for the assets acquired: Schedule of Purchase Price Allocation December 31, 2021 Land $ 1,778,987 Building and building improvements $ 8,937,050 Acquired Lease Intangible Assets $ 83,963 Total Purchase Price $ 10,800,000 |
Intangible Asset (Tables)
Intangible Asset (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Asset | Intangible asset consisted of the following as of: Schedule of Intangible Asset December 31, 2021 December 31, 2020 Patents $ 160,000 $ 160,000 Capitalized media content 331,228 128,085 Acquired lease intangible assets 83,963 - Total intangible assets 575,191 288,085 Less accumulated amortization (40,112 ) (17,037 ) Intangible assets, net $ 535,079 $ 271,048 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Balance Sheet Classification of Lease Assets and Liabilities | The balance sheet classification of lease assets and liabilities was as follows: Schedule of Balance Sheet Classification of Lease Assets and Liabilities Balance Sheet Classification December 31, 2021 December 31, 2020 Assets Operating lease right-of-use assets, beginning of period $ 1,094,527 $ 1,390,873 Amortization for the year ended (310,221 ) (296,346 ) Total operating lease right-of-use asset $ 784,306 $ 1,094,527 Liabilities Current Operating lease liability, short-term $ 347,772 $ 321,727 Non-current Operating lease liability, long-term 505,383 853,155 Total lease liabilities $ 853,155 $ 1,174,882 |
Schedule of Future Minimum Lease Payments | Future minimum lease payments as of December 31, 2021 under non-cancelable operating leases are as follows: Schedule of Future Minimum Lease Payments 2022 $ 379,097 2023 390,562 2024 131,152 Total lease payments 900,811 Less: imputed interest (47,656 ) Operating lease liability $ 853,155 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Compensation and Related Costs | Accrued compensation and related costs consisted of the following as of: Schedule of Accrued Compensation and Related Costs December 31, 2021 December 31, 2020 Salaries and wages payable $ 422,562 $ 278,331 Employee benefits payable 16,523 634 Accrued paid time off (PTO) 483,311 366,827 Profit sharing payable 139,682 197,309 Total accrued compensation and related costs $ 1,062,078 $ 843,101 |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following as of: Schedule of Accrued Expenses and Other Current Liabilities December 31, 2021 December 31, 2020 Manufacturer’s warranties $ 384,000 $ 352,000 Taxes payable 113,921 316,076 Miscellaneous payable 493,823 104,808 Total accrued expenses and other current liabilities $ 991,744 $ 772,884 |
Note Payable (Tables)
Note Payable (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable | The note payable amounts consist of the following: Schedule of Notes Payable December 31, 2021 December 31, 2020 Short-term liabilities: Note payable, principal $ 231,871 $ 257,471 Accrued interest on note 4,420 8,566 Note payable, short-term $ 236,291 $ 266,037 Long-term liabilities: Note payable, principal $ 8,280,395 $ 1,063,243 Note payable, long term $ 8,280,395 $ 1,063,243 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities | The Company accounts for its deferred tax assets and liabilities, including excess tax benefits of share-based payments, based on the tax ordering of deductions to be used on its tax returns. The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities for the years ended December 31 is as follows: Schedule of Deferred Tax Assets and Liabilities Years ending December 31, 2021 2020 Deferred Tax Assets: Net Operating Loss Carry Forwards $ 84,303 $ 324,000 Tax Credits 1,050,595 907,000 Deferred Revenue 253,319 152,000 Stock Compensation 183,953 120,000 Investment in TEC 83,277 89,000 Reserves, Accruals, and Other 295,444 254,000 Fixed Assets - 46,000 intangibles 252,716 - Total Deferred Tax Assets $ 2,203,607 $ 1,892,000 Deferred Tax Liabilities: Fixed Assets $ (529,373 ) $ - Total Deferred Tax Liabilities $ (529,373 ) $ - Valuation Allowance - - Net Deferred Taxes $ 1,674,234 $ 1,892,000 |
Schedule of Significant Components of Income Tax Provision | Significant components of the provision (benefit) for income tax for the years ended December 31 as follows: Schedule of Significant Components of Income Tax Provision 2021 2020 Current $ 28,283 $ (118,800 ) Deferred 217,767 (100,000 ) Change in valuation allowance - - Provision (benefit) for income taxes $ 246,050 $ (218,800 ) |
Schedule of Reconciliation of Income Tax Rate | The Company is subject to federal and state taxes. Reconciliations of the Company’s effective income tax rate to the federal statutory rate for the years ended December 31 are as follows: Schedule of Reconciliation of Income Tax Rate 2021 2020 Federal income tax expense at the statutory rate 21.0 % 21.0 % State income taxes, net of federal benefit 3.1 % 5.5 % Research credits -5.5 % 0.0 % Permanent differences 0.2 % 14.8 % True ups to tax return and other 0.0 % -58.7 % PPP Loan Forgiveness -9.9 % 0.0 % Change in valuation allowance 0.0 % 0.0 % Provision (benefit) for income taxes 8.9 % -17.4 % |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Non-qualified Stock Options | Schedule of Non-qualified Stock Options December 31, 2021 December 31, 2020 Number of Weighted Number of Weighted Stock Options Exercise Price Stock Options Exercise Price Options outstanding, beginning of year 164,167 $ 3.13 234,167 $ 2.47 Granted - - - - Redeemed (35,000 ) 1.85 (40,000 ) 0.88 Exercised (7,500 ) 1.51 (30,000 ) 1.01 Expired / terminated (9,167 ) 4.59 - - Options outstanding, end of year 112,500 $ 3.51 164,167 $ 3.13 Options exercisable, end of year 112,500 $ 3.51 164,167 $ 3.13 |
Schedule of Stock Options Outstanding and Exercisable | The following table summarizes information about stock options outstanding and exercisable as of December 31, 2021: Schedule of Stock Options Outstanding and Exercisable Range of Number of Weighted Number of Weighted $ 1.00 1.99 22,500 $ 1.80 22,500 $ 1.80 $ 2.00 2.99 22,500 $ 2.51 22.500 $ 2.51 $ 3.00 3.99 22,500 $ 3.47 22,500 $ 3.47 $ 4.00 4.99 22,500 $ 4.24 22,500 $ 4.24 $ 5.00 5.99 22,500 $ 5.54 22,500 $ 5.54 112,500 $ 3.51 112.500 $ 3.51 The following table summarizes information about stock options outstanding and exercisable as of December 31, 2020: Range of Number of Weighted Number of Weighted $ .80 .99 11,250 $ 0.98 11,250 $ 0.98 $ 1.00 1.99 33,750 $ 1.68 33,750 $ 1.68 $ 2.00 2.99 42,500 $ 2.48 42,500 $ 2.48 $ 3.00 3.99 25,000 $ 3.50 25,000 $ 3.50 $ 4.00 4.99 25,000 $ 4.25 25,000 $ 4.25 $ 5.00 5.99 26,667 $ 5.50 26,667 $ 5.50 164,167 $ 3.13 164,167 $ 3.13 |
Schedule of Disaggregation of R
Schedule of Disaggregation of Revenues (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Simulators and accessories | $ 19,266,079 | $ 13,802,446 |
Extended service-type warranties | 2,924,836 | 2,621,440 |
Customized software and content | 1,309,910 | 2,057,744 |
Installation and training | 924,399 | 556,444 |
Licensing and royalties | 8,832 | 49,557 |
Total Revenue | 24,434,056 | 19,087,631 |
Commercial [Member] | ||
Simulators and accessories | 2,890,848 | 1,052,223 |
Extended service-type warranties | 107,289 | 74,290 |
Customized software and content | 57,200 | 100,109 |
Installation and training | 102,882 | 17,004 |
Licensing and royalties | 8,832 | 49,557 |
Total Revenue | 3,167,051 | 1,293,183 |
Government [Member] | ||
Simulators and accessories | 12,302,223 | 12,450,793 |
Extended service-type warranties | 2,716,436 | 2,408,379 |
Customized software and content | 1,139,841 | 1,957,635 |
Installation and training | 677,930 | 534,478 |
Licensing and royalties | ||
Total Revenue | 16,836,430 | 17,351,285 |
Geographic Distribution, Foreign [Member] | ||
Simulators and accessories | 4,073,008 | 299,430 |
Extended service-type warranties | 101,111 | 138,771 |
Customized software and content | 112,869 | |
Installation and training | 143,587 | 4,962 |
Licensing and royalties | ||
Total Revenue | $ 4,430,575 | $ 443,163 |
Schedule of Property and Equipm
Schedule of Property and Equipment Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Computer Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 3 years |
Computer Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 5 years |
Furniture and Office Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 5 years |
Furniture and Office Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 7 years |
Leased STEP Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 5 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 7 years |
Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 39 years 6 months |
Building Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 7 years |
Schedule of Earnings Per Share
Schedule of Earnings Per Share (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Net income/(loss) | $ 2,540,089 | $ 1,478,403 |
Weighted average common stock outstanding | 10,007,386 | 7,757,037 |
Incremental shares from stock options | 53,362 | 78,793 |
Weighted average common stock outstanding diluted | 10,060,748 | 7,835,830 |
Basic | $ 0.25 | $ 0.19 |
Diluted | $ 0.25 | $ 0.19 |
Organization and Significant _4
Organization and Significant Accounting Policies (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Product Information [Line Items] | |||
Revenue | $ 24,434,056 | $ 19,087,631 | |
Customer deposits, current | 4,135,565 | 4,708,575 | |
Revenue recognized | 2,924,836 | 2,621,440 | |
Customer retainage | 0 | 0 | |
Allowance for doubtful accounts | 35,432 | 34,959 | |
Allowance for note receivable and accrued interest | 311,367 | ||
Allowance uncollectible notes receivables | 0 | 311,367 | |
Inventory reserves | 214,712 | 120,652 | |
Impairment of investment | 840,000 | ||
Intangible assets estimated useful lives | 10 years 7 months 6 days | ||
Advertising expense | $ 422,831 | 512,655 | |
Research and development expense | 1,865,880 | 1,603,379 | |
FDIC insured amount | 250,000 | ||
Uninsured cash and cash equivalents | $ 19,207,786 | $ 6,338,896 | |
Equity Option [Member] | |||
Product Information [Line Items] | |||
Anti-dilutive securities excluded from computation of earnings per share | 0 | 98,750 | |
Patents [Member] | |||
Product Information [Line Items] | |||
Intangible assets estimated useful lives | 16 years | ||
Media Content [Member] | |||
Product Information [Line Items] | |||
Intangible assets estimated useful lives | 15 years | ||
Warranty [Member] | One Year or Less [Member] | |||
Product Information [Line Items] | |||
Extended warranties | $ 1,764,034 | $ 2,191,400 | |
Warranty [Member] | Longer Than One Year [Member] | |||
Product Information [Line Items] | |||
Extended warranties | 1,815,871 | 1,920,346 | |
Warranty [Member] | One Year [Member] | |||
Product Information [Line Items] | |||
Extended warranties | 384,000 | 352,000 | |
Deferred Revenue [Member] | |||
Product Information [Line Items] | |||
Customer deposits, current | 2,371,531 | 2,517,175 | |
Deferred Revenue Long Term [Member] | |||
Product Information [Line Items] | |||
Revenue | 1,550,333 | 325,844 | |
Customer Retainage [Member] | |||
Product Information [Line Items] | |||
Revenue | 0 | 10,720 | |
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | STEP Revenue [Member] | |||
Product Information [Line Items] | |||
Revenue | $ 1,963,562 | $ 794,524 | |
Concentration of credit risk | 8% | 4.20% | |
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Government Customers [Member] | |||
Product Information [Line Items] | |||
Revenue | $ 16,836,430 | $ 17,351,285 | |
Concentration of credit risk | 68.90% | 90.90% | |
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Commercial Customers [Member] | |||
Product Information [Line Items] | |||
Revenue | $ 3,167,051 | $ 1,293,183 | |
Concentration of credit risk | 13% | 6.80% | |
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | International Customers [Member] | |||
Product Information [Line Items] | |||
Revenue | $ 4,430,575 | $ 443,163 | |
Concentration of credit risk | 18.10% | 2.30% | |
Revenue from Contract with Customer, Product and Service Benchmark [Member] | Customer Concentration Risk [Member] | One Commercial Customer [Member] | |||
Product Information [Line Items] | |||
Concentration of credit risk | 13.60% | ||
Revenue from Contract with Customer, Product and Service Benchmark [Member] | Customer Concentration Risk [Member] | One Agency [Member] | |||
Product Information [Line Items] | |||
Concentration of credit risk | 16% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | One State Agency [Member] | |||
Product Information [Line Items] | |||
Concentration of credit risk | 31% |
Notes Receivable (Details Narra
Notes Receivable (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | |
Short-term Debt [Line Items] | ||||
Reserve for note receivable | $ 0 | $ 311,367 | ||
Convertible Note [Member] | Thats Eatertainment Corp. [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt instrument, face amount | $ 292,138 | |||
Debt instrument, interest rate | 5% | |||
Debt conversion, discount rate | 25% | |||
Notes receivable, payment collection, description | Any unpaid balance of principal and accrued interest becomes due and collectible on the earlier of (i) August 1, 2019 (maturity date), or (ii) if declared due and payable in the event of Default | |||
Debt instrument, maturity date, description | the Convertible Note’s maturity date was extended to August 2023 | the Convertible Note’s maturity date was extended to August 2020 | ||
Proceeds from notes receivable | $ 16,000 | |||
Notes receivable related party | 311,367 | |||
Reserve for note receivable | 311,367 | $ 311,367 | ||
Convertible Note [Member] | Thats Eatertainment Corp. [Member] | Accrued Interest [Member] | ||||
Short-term Debt [Line Items] | ||||
Proceeds from notes receivable | 14,972 | |||
Convertible Note [Member] | Thats Eatertainment Corp. [Member] | Principal [Member] | ||||
Short-term Debt [Line Items] | ||||
Proceeds from notes receivable | $ 1,028 |
Schedule of Inventory (Details)
Schedule of Inventory (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials and work in process | $ 5,229,636 | $ 3,636,649 |
Reserve | (214,712) | (120,652) |
Total inventory | $ 5,014,924 | $ 3,515,997 |
Inventory (Details Narrative)
Inventory (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Other assets, long-term | $ 189,734 | $ 500,114 |
Conversion of inventory to property and equipment | 334,637 | 724,811 |
Spare Parts [Member] | ||
Other assets, long-term | $ 136,241 | $ 500,114 |
Schedule of Property and Equi_2
Schedule of Property and Equipment (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 16,026,518 | $ 3,977,840 |
Less: Accumulated depreciation and amortization | (3,161,752) | (2,596,096) |
Property and equipment, net | 12,864,766 | 1,381,744 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 1,778,987 | |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 9,005,205 | |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 1,171,319 | 1,115,326 |
Furniture and Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 262,814 | 223,925 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 1,970,007 | 1,096,898 |
Leased STEP Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 1,496,252 | 1,206,757 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 334,934 | 334,934 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 7,000 |
Schedule of Purchase Price Allo
Schedule of Purchase Price Allocation (Details) | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Property, Plant and Equipment [Line Items] | |
Total Purchase Price | $ 10,800,000 |
Land [Member] | |
Property, Plant and Equipment [Line Items] | |
Total Purchase Price | 1,778,987 |
Building and Building Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Total Purchase Price | 8,937,050 |
Acquired Lease Intangible Assets [Member] | |
Property, Plant and Equipment [Line Items] | |
Total Purchase Price | $ 83,963 |
Property and Equipment (Details
Property and Equipment (Details Narrative) | 1 Months Ended | 12 Months Ended | |||||
Aug. 25, 2021 USD ($) ft² a | Nov. 30, 2016 ft² | Nov. 30, 2006 ft² | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Nov. 01, 2022 ft² | Nov. 01, 2021 ft² | |
Property, Plant and Equipment [Line Items] | |||||||
Depreciation expense | $ | $ 585,279 | $ 371,265 | |||||
Payment to acquire assets | $ | $ 3,448,678 | ||||||
First Tenant [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Per square foot rate | 11.34 | ||||||
Lease expiration date1 | Oct. 31, 2023 | ||||||
First Tenant [Member] | Maximum [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Per square foot rate | 11.68 | ||||||
First Tenant [Member] | Maximum [Member] | Subsequent Event [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Per square foot rate | 12.03 | ||||||
Second Tenant [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Per square foot rate | 9 | ||||||
Lease expiration date1 | Oct. 31, 2024 | ||||||
Lease option to extend | This tenant has the option to extend the lease for 5 years thru October 31, 2029 with 5% increases to the rental rate for the first 3 years | ||||||
Arizona Bank & Trust [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Proceeds from bank loan | $ | $ 8,600,000 | ||||||
Property [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Payment to acquire assets | $ | $ 10,800,000 | ||||||
Area of land | a | 4.3 | ||||||
Industrial Building [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Area of land | 76,650 | ||||||
Industrial Building [Member] | Multi Year Rent Agreements [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Area of land | 15,000 |
Schedule of Intangible Asset (D
Schedule of Intangible Asset (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 575,191 | $ 288,085 |
Less accumulated amortization | (40,112) | (17,037) |
Intangible assets, net | 535,079 | 271,048 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 160,000 | 160,000 |
Capitalized Media Content [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 331,228 | 128,085 |
Acquired Lease Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 83,963 |
Intangible Asset (Details Narra
Intangible Asset (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible asset | $ 23,075 | $ 8,889 |
Weighted average remaining period | 10 years 7 months 6 days |
Schedule of Balance Sheet Class
Schedule of Balance Sheet Classification of Lease Assets and Liabilities (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Jan. 02, 2019 | |
Leases [Abstract] | |||
Operating lease right-of-use assets, beginning | $ 1,094,527 | $ 1,390,873 | |
Amortization | (310,221) | (296,346) | |
Operating lease right-of-use assets, ending | 784,306 | 1,094,527 | |
Operating lease liability, short-term | 347,772 | 321,727 | |
Operating lease liability, long-term | 505,383 | 853,155 | |
Total lease liabilities | $ 853,155 | $ 1,174,882 | $ 1,721,380 |
Schedule of Future Minimum Leas
Schedule of Future Minimum Lease Payments (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 02, 2019 |
Leases [Abstract] | |||
2022 | $ 379,097 | ||
2023 | 390,562 | ||
2024 | 131,152 | ||
Total lease payments | 900,811 | ||
Less: imputed interest | (47,656) | ||
Operating lease liability | $ 853,155 | $ 1,174,882 | $ 1,721,380 |
Leases (Details Narrative)
Leases (Details Narrative) | 12 Months Ended | |||||
Dec. 31, 2021 USD ($) ft² | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Apr. 30, 2019 ft² | Mar. 31, 2019 ft² | Jan. 02, 2019 USD ($) | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||||
Incremental in borrowing rate | 4.50% | |||||
Operating lease liability | $ 853,155 | $ 1,174,882 | $ 1,721,380 | |||
Deferred rent | 46,523 | |||||
Operating lease right of use asset | 784,306 | 1,094,527 | $ 1,390,873 | $ 1,674,857 | ||
Advance rent | 0 | 0 | ||||
Rent expenses | $ 356,555 | $ 412,315 | ||||
Office and Warehouse Space [Member] | Unaffiliated Third Party [Member] | ||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||||
Rentable square feet | ft² | 37,729 | |||||
Office and Industrial Space [Member] | Unaffiliated Third Party [Member] | ||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||||
Rentable square feet | ft² | 4,529 | |||||
Office and Industrial Space [Member] | Unaffiliated Third Party [Member] | Lease Amendment [Member] | ||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||||
Rentable square feet | ft² | 5,131 |
Schedule of Accrued Compensatio
Schedule of Accrued Compensation and Related Costs (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Salaries and wages payable | $ 422,562 | $ 278,331 |
Employee benefits payable | 16,523 | 634 |
Accrued paid time off (PTO) | 483,311 | 366,827 |
Profit sharing payable | 139,682 | 197,309 |
Total accrued compensation and related costs | $ 1,062,078 | $ 843,101 |
Schedule of Accrued Expenses an
Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Manufacturer’s warranties | $ 384,000 | $ 352,000 |
Taxes payable | 113,921 | 316,076 |
Miscellaneous payable | 493,823 | 104,808 |
Total accrued expenses and other current liabilities | $ 991,744 | $ 772,884 |
Schedule of Notes Payable (Deta
Schedule of Notes Payable (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Short-term Debt [Line Items] | ||
Note payable, short-term | $ 236,291 | $ 266,037 |
Note payable, long term | 8,280,395 | 1,063,243 |
Notes Payable [Member] | ||
Short-term Debt [Line Items] | ||
Note payable, principal | 8,280,395 | 1,063,243 |
Note payable, long term | 8,280,395 | 1,063,243 |
Notes Payable [Member] | ||
Short-term Debt [Line Items] | ||
Note payable, principal | 231,871 | 257,471 |
Accrued interest on note | 4,420 | 8,566 |
Note payable, short-term | $ 236,291 | $ 266,037 |
Note Payable (Details Narrative
Note Payable (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Aug. 25, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | May 08, 2020 | |
Short-term Debt [Line Items] | ||||
Payment to acquire assets | $ 3,448,678 | |||
Arizona Bank & Trust [Member] | ||||
Short-term Debt [Line Items] | ||||
Proceeds from bank loan | $ 8,600,000 | |||
Debt instrument interest rate | 3% | |||
Maturity date | Aug. 23, 2031 | |||
Property [Member] | ||||
Short-term Debt [Line Items] | ||||
Payment to acquire assets | $ 10,800,000 | |||
199 Regular Monthly Payments [Member] | Arizona Bank & Trust [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt instrument periodic payment | 40,978 | |||
One Irregular Payment [Member] | Arizona Bank & Trust [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt instrument periodic payment | $ 5,956,538 | |||
Paycheck Protection Program Loan [Member] | Convertible Promissory Note [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt instrument principal amount | $ 1,320,714 | |||
Debt interest rate | 1% |
Co-Venture Agreement with Mod_2
Co-Venture Agreement with Modern Round (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Jul. 31, 2019 | Aug. 16, 2017 | Jan. 16, 2015 | Apr. 30, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||||||
Reverse stock split | MR effected a 1-for-12,000 reverse stock split, followed by a 2,000-for-1 forward stock split completed in November 2018 | ||||||
Impairment of investment | $ 840,000 | ||||||
Thats Eatertainment Corp. [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Investment owned, shares | 560,000 | ||||||
Equity method investment, ownership percentage | 4.80% | ||||||
Impairment of investment | 840,000 | ||||||
Investments | $ 0 | $ 0 | |||||
Number of warrants to purchase shares of common stock | 25,577 | ||||||
Warrant exercise price per share | $ 2.4436 | ||||||
Fair value of warrants | |||||||
Amendment to Co-Venture Agreement [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership interest for fully diluted basis | 5% | ||||||
Royalty percentage | 10% | ||||||
Percentage of revenue paid for cost of equipment | 14% | ||||||
First Amendment to Convertible Promissory Note [Member] | Thats Eatertainment Corp. [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Debt instrument maturity date | Aug. 01, 2020 | ||||||
Repayments of related party debt | $ 16,000 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Compensation expenses | $ 168,575 | $ 73,987 | |
Stock issued during period options exercised, value | 11,320 | 30,166 | |
Thats Eatertainment Corp. [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Accounts receivable | 0 | 0 | |
Natural Point Inc [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Payments to acquire productive assets | 33,840 | 232,218 | |
Outstanding balance payable | 0 | 0 | |
Bohemia Interactive Simulations Inc [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Payments to acquire productive assets | 11,950 | ||
Outstanding balance payable | 0 | ||
Co-Venture Agreement [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Royalties/license fee | $ 0 | $ 46,247 | |
Thats Eatertainment Corp. [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Investment owned, shares | 560,000 | ||
Equity method investment, ownership percentage | 4.80% | ||
Chief Executive Officer and Chief Operating Officer [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Stock reedemed or called during period shares | 35,000 | 40,000 | |
CEO and Board Of Directors [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Stock issued during period options exercised, shares | 7,500 | 30,000 | |
Stock issued during period options exercised, value | $ 11,320 | $ 30,163 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) | 12 Months Ended | |||||
Aug. 26, 2021 | Aug. 15, 2021 | Apr. 02, 2012 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Net income loss | $ 2,540,089 | $ 1,478,403 | ||||
Operating expenses | 9,951,175 | 10,674,109 | ||||
Deferred Profit Sharing [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Operating expenses | $ 139,682 | $ 206,869 | ||||
Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock units vesting, description | Beginning on the last business day of August 2022, a tranche of restricted stock units may vest if the Company has achieved net profit (net income under GAAP) for the twelve months ending June 30, 2022, of at least $2,500,000. For every $500,000 earned in excess of $2,500,000 another tranche will vest. If the maximum net profits (net income under GAAP) of $7,000,000 is achieved, ten tranches would vest. Similarly, on the last business day of August 2023, a tranche of restricted stock units may vest if the Company has achieved a net profit (net income under GAAP) of at least $3,000,000, with the potential to have additional tranches vest up to a maximum of $9,000,000 in net profit (net income under GAAP). This vesting arrangement continues with the last business day of August 2024, with the minimum net profit (net income under GAAP) threshold being $3,500,000 and the maximum net profit (net income under GAAP) being $11,000,000 | |||||
Restricted Stock Units (RSUs) [Member] | Tranche [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Net income loss | $ 52,498 | |||||
Restricted Stock Units (RSUs) [Member] | Tranche [Member] | June 30, 2022 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Net income loss | 2,500,000 | |||||
Chief Executive Officer [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Annual salaries | $ 349,860 | |||||
Chief Executive Officer [Member] | 2017 Equity Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock issued during period shares based compensation, shares | 224,133 | |||||
Stock issued during period shares based compensation, value | $ 1,559,966 | |||||
Stock issued during period shares restricted stock, shares | 14,057 | 14,057 | ||||
Stock issued during period shares restricted stock, value | $ 97,837 | |||||
Chief Operating Officer [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Annual salaries | $ 251,140 | |||||
Chief Operating Officer [Member] | 2017 Equity Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock issued during period shares based compensation, shares | 168,090 | |||||
Stock issued during period shares based compensation, value | $ 1,169,906 | |||||
Stock issued during period shares restricted stock, shares | 10,543 | 10,543 | ||||
Stock issued during period shares restricted stock, value | $ 73,379 | |||||
Three Year Employment Agreements [Member] | Chief Executive Officer [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Annual salaries | $ 195,000 | 349,860 | ||||
Three Year Employment Agreements [Member] | Chief Operating Officer [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Annual salaries | $ 175,000 | $ 251,140 |
Schedule of Deferred Tax Assets
Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Net Operating Loss Carry Forwards | $ 84,303 | $ 324,000 |
Tax Credits | 1,050,595 | 907,000 |
Deferred Revenue | 253,319 | 152,000 |
Stock Compensation | 183,953 | 120,000 |
Investment in TEC | 83,277 | 89,000 |
Reserves, Accruals, and Other | 295,444 | 254,000 |
Fixed Assets | 46,000 | |
intangibles | 252,716 | |
Total Deferred Tax Assets | 2,203,607 | 1,892,000 |
Fixed Assets | (529,373) | |
Total Deferred Tax Liabilities | (529,373) | |
Valuation Allowance | ||
Net Deferred Taxes | $ 1,674,234 | $ 1,892,000 |
Schedule of Significant Compone
Schedule of Significant Components of Income Tax Provision (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Current | $ 28,283 | $ (118,800) |
Deferred | 217,767 | (100,000) |
Change in valuation allowance | ||
Provision (benefit) for income taxes | $ 246,050 | $ (218,800) |
Schedule of Reconciliation of I
Schedule of Reconciliation of Income Tax Rate (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Federal income tax expense at the statutory rate | 21% | 21% |
State income taxes, net of federal benefit | 3.10% | 5.50% |
Research credits | (5.50%) | 0% |
Permanent differences | 0.20% | 14.80% |
True ups to tax return and other | 0% | (58.70%) |
PPP Loan Forgiveness | (9.90%) | 0% |
Change in valuation allowance | 0% | 0% |
Provision (benefit) for income taxes | 8.90% | (17.40%) |
Schedule of Non-qualified Stock
Schedule of Non-qualified Stock Options (Details) - Non Qualified Stock Option [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Offsetting Assets [Line Items] | ||
Number of Stock Options, Options outstanding, beginning of year | 164,167 | 234,167 |
Weighted Exercise Price, Option outstanding, beginning of year | $ 3.13 | $ 2.47 |
Number of Stock Options, Granted | ||
Weighted Exercise Price, Granted | ||
Number of Stock Options, Redeemed | (35,000) | (40,000) |
Weighted Exercise Price, Redeemed | $ 1.85 | $ 0.88 |
Number of Stock Options, Exercised | (7,500) | (30,000) |
Weighted Exercise Price, Exercised | $ 1.51 | $ 1.01 |
Number of Stock Options, Expired / terminated | (9,167) | |
Weighted Exercise Price, Expired / terminated | $ 4.59 | |
Number of Stock Options, Options outstanding, End of the year | 112,500 | 164,167 |
Weighted Exercise Price, Option outstanding end of quarter | $ 3.51 | $ 3.13 |
Number of Stock Options, Options exercisable, end of year | 112,500 | 164,167 |
Weighted Exercise Price, Options exercisable, end of quarter | $ 3.51 | $ 3.13 |
Schedule of Stock Options Outst
Schedule of Stock Options Outstanding and Exercisable (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Exercise Price Range One [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of Exercise Price, lower range limit | $ 1 | $ 0.80 |
Range of Exercise Price, upper range limit | $ 1.99 | $ 0.99 |
Number of Options Outstanding | 22,500 | 11,250 |
Weighted Average Exercise Price | $ 1.80 | $ 0.98 |
Number of Options Exercisable | 22,500 | 11,250 |
Weighted Average Exercise Price | $ 1.80 | $ 0.98 |
Exercise Price Range Two [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of Exercise Price, lower range limit | 2 | 1 |
Range of Exercise Price, upper range limit | $ 2.99 | $ 1.99 |
Number of Options Outstanding | 22,500 | 33,750 |
Weighted Average Exercise Price | $ 2.51 | $ 1.68 |
Number of Options Exercisable | 22.500 | 33,750 |
Weighted Average Exercise Price | $ 2.51 | $ 1.68 |
Exercise Price Range Three [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of Exercise Price, lower range limit | 3 | 2 |
Range of Exercise Price, upper range limit | $ 3.99 | $ 2.99 |
Number of Options Outstanding | 22,500 | 42,500 |
Weighted Average Exercise Price | $ 3.47 | $ 2.48 |
Number of Options Exercisable | 22,500 | 42,500 |
Weighted Average Exercise Price | $ 3.47 | $ 2.48 |
Exercise Price Range Four [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of Exercise Price, lower range limit | 4 | 3 |
Range of Exercise Price, upper range limit | $ 4.99 | $ 3.99 |
Number of Options Outstanding | 22,500 | 25,000 |
Weighted Average Exercise Price | $ 4.24 | $ 3.50 |
Number of Options Exercisable | 22,500 | 25,000 |
Weighted Average Exercise Price | $ 4.24 | $ 3.50 |
Exercise Price Range Five [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of Exercise Price, lower range limit | 5 | 4 |
Range of Exercise Price, upper range limit | $ 5.99 | $ 4.99 |
Number of Options Outstanding | 22,500 | 25,000 |
Weighted Average Exercise Price | $ 5.54 | $ 4.25 |
Number of Options Exercisable | 22,500 | 25,000 |
Weighted Average Exercise Price | $ 5.54 | $ 4.25 |
Exercise Price Range Six [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of Exercise Price, lower range limit | 5 | |
Range of Exercise Price, upper range limit | $ 5.99 | |
Number of Options Outstanding | 112,500 | 26,667 |
Weighted Average Exercise Price | $ 3.51 | $ 5.50 |
Number of Options Exercisable | 112.500 | 26,667 |
Weighted Average Exercise Price | $ 3.51 | $ 5.50 |
Exercise Price Range Seven [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Number of Options Outstanding | 164,167 | |
Weighted Average Exercise Price | $ 3.13 | |
Number of Options Exercisable | 164,167 | |
Weighted Average Exercise Price | $ 3.13 |
Stockholders_ Equity (Details N
Stockholders’ Equity (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Aug. 26, 2021 | Apr. 05, 2021 | Jan. 09, 2019 | Oct. 25, 2016 | Mar. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Aug. 23, 2017 | |
Class of Stock [Line Items] | ||||||||||
Authorized capital | 60,000,000 | |||||||||
Share price | $ 0.0001 | |||||||||
Common stock shares authorized | 50,000,000 | 50,000,000 | ||||||||
Common stock, par value | $ 0.0001 | $ 0.0001 | ||||||||
Common stock voting rights | Each holder of common stock shall be entitled to one (1) vote for each share of common stock held of record by such holder. The holders of shares of common stock shall not have cumulative voting rights | |||||||||
Preferred stock shares authorized | 2,500,000 | 2,500,000 | ||||||||
Preferred stock, par value | $ 0.0001 | $ 0.0001 | ||||||||
Stock repurchased during period, value | $ 31,183 | |||||||||
Options outstanding weighted average contractual term | 7 years | 7 years | ||||||||
Options exercisable weighted average contractual term | 7 years | 7 years | ||||||||
Exercisable and outstanding Intriinsic value | $ 392,065 | $ 138,487 | ||||||||
Intriinsic value | 252,635 | 63,437 | ||||||||
Proceeds from stock options exrercised | 11,320 | 30,166 | ||||||||
Fair value of vested | 0 | 0 | ||||||||
Gross proceeds from public offering | $ 16,795,000 | |||||||||
Securities Purchase Agreement [Member] | Offering [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Gross proceeds from public offering | $ 18,000,000 | |||||||||
Noninterest Expense Offering Cost | $ 1,205,000 | |||||||||
Placement Agency Agreement [Member] | Roth Capital Partners, LLC [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Gross proceeds, aggregate percentage | 6.50% | |||||||||
Certain Institutional Investors [Member] | Securities Purchase Agreement [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Sale of stock, shares | 3,000,000 | |||||||||
Sale of stock, price per share | $ 6 | $ 6 | ||||||||
2017 Equity Incentive Plan [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Number of common stock capital shares reserved for future issuance | 1,187,500 | |||||||||
Percentage of common stock shares issued and outstanding | 3% | |||||||||
2017 Equity Incentive Plan [Member] | Chief Executive Officer [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Stock issued during period shares based compensation, shares | 224,133 | |||||||||
Stock issued during period shares restricted stock, shares | 14,057 | 14,057 | ||||||||
2017 Equity Incentive Plan [Member] | Chief Operating Officer [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Stock issued during period shares based compensation, shares | 168,090 | |||||||||
Stock issued during period shares restricted stock, shares | 10,543 | 10,543 | ||||||||
Maximum [Member] | Placement Agency Agreement [Member] | Roth Capital Partners, LLC [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Reimbursement legal fees and expenses | $ 35,000 | |||||||||
Common Class A [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Common stock shares authorized | 2,500,000 | 2,500,000 | ||||||||
Common stock, par value | $ 0.0001 | $ 0.0001 | ||||||||
Common stock voting rights | Each holder of Class A Common Stock shall be entitled to ten (10) votes for each share of Class A Common Stock held of record by such holder. The holders of shares of Class A Common Stock shall not have cumulative voting rights | |||||||||
Common Class B [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Common stock shares authorized | 7,500,000 | 7,500,000 | ||||||||
Common stock, par value | $ 0.0001 | $ 0.0001 | ||||||||
Common stock voting rights | The holders of Class B Common Stock shall not be entitled to vote on any matter, except that the holders of Class B Common Stock shall be entitled to vote separately as a class with respect to amendments to the Articles of Incorporation that increase or decrease the aggregate number of authorized shares of such class, increase or decrease the par value of the shares of such class, or alter or change the powers, preferences, or special rights of the shares of such class so as to affect them adversely | |||||||||
Common Stock [Member] | Maximum [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Stock repurchased during period, value | $ 1,000,000 | $ 1,000,000 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Subsequent Event [Member] - Mr.Givens [Member] - USD ($) | Aug. 31, 2022 | May 02, 2022 |
Subsequent Event [Line Items] | ||
Salaries wages and officers compensation | $ 298,990 | |
Stock issued during period value new issues | 64,815 | |
Equity Incentive Plan [Member] | ||
Subsequent Event [Line Items] | ||
Stock issued during period shares restricted stock, shares | 288,889 | |
Restricted stock units vesting, description | Beginning on the last business day of August 2022, a tranche of restricted stock units, having an approximate value of $40,000, based on current grant day prices, may vest if the Company has achieved net profit for the twelve months ending June 30, 2022 of at least $2,500,000. For every $500,000 earned in excess of $2,500,000 another tranche will vest. If the maximum net profit of $7,000,000 is achieved, ten tranches would vest. Similarly, on the last business day of August 2023, a tranche of restricted stock units may vest if the Company has achieved a net profit of at least $3,000,000, with the potential to have additional tranches vest up to a maximum of $9,000,000 in net profit. This vesting arrangement continues with the last business day of August 2024, with the minimum net profit threshold being $3,500,000 and the maximum net profit being $11,000,000 |