Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 31, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-36159 | |
Entity Registrant Name | STEREOTAXIS, INC. | |
Entity Central Index Key | 0001289340 | |
Entity Tax Identification Number | 94-3120386 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 4320 Forest Park Avenue | |
Entity Address, Address Line Two | Suite 100 | |
Entity Address, City or Town | St. Louis | |
Entity Address, State or Province | MO | |
Entity Address, Postal Zip Code | 63108 | |
City Area Code | (314) | |
Local Phone Number | 678-6100 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | STXS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 74,507,581 |
Balance Sheets
Balance Sheets - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 42,054,296 | $ 43,939,512 |
Restricted cash - current | 1,484,018 | |
Compensating cash arrangement | 251,232 | 250,620 |
Accounts receivable, net of allowance of $154,727 and $123,614 at 2021 and 2020, respectively | 4,651,804 | 3,515,136 |
Inventories, net | 4,146,691 | 3,295,457 |
Prepaid expenses and other current assets | 2,646,806 | 1,716,014 |
Total current assets | 55,234,847 | 52,716,739 |
Property and equipment, net | 291,578 | 195,129 |
Restricted cash | 382,813 | |
Operating lease right-of-use assets | 1,143,355 | 2,235,442 |
Other assets | 283,093 | 308,515 |
Total assets | 57,335,686 | 55,455,825 |
Current liabilities: | ||
Short-term debt | 1,185,058 | |
Accounts payable | 1,124,178 | 1,608,636 |
Accrued liabilities | 2,857,479 | 3,209,235 |
Deferred revenue | 8,284,600 | 5,282,770 |
Current portion of operating lease liabilities | 1,169,378 | 2,287,487 |
Total current liabilities | 13,435,635 | 13,573,186 |
Long-term debt | 973,252 | |
Long-term deferred revenue | 1,648,792 | 548,915 |
Other liabilities | 206,596 | 131,231 |
Total liabilities | 15,291,023 | 15,226,584 |
Series A - Convertible preferred stock: | ||
Convertible preferred stock, Series A, par value $0.001; 22,407 and 22,513 shares outstanding at 2021 and 2020, respectively | 5,578,181 | 5,605,323 |
Stockholders’ equity: | ||
Convertible preferred stock, Series B, par value $0.001; 10,000,000 shares authorized, 5,610,121 shares outstanding at 2021 and 2020 | 5,610 | 5,610 |
Common stock, par value $0.001; 300,000,000 shares authorized, 74,428,865 and 73,694,203 shares issued at 2021 and 2020, respectively | 74,429 | 73,694 |
Additional paid in capital | 527,294,470 | 522,709,846 |
Treasury stock, 4,015 shares at 2021 and 2020 | (205,999) | (205,999) |
Accumulated deficit | (490,702,028) | (487,959,233) |
Total stockholders’ equity | 36,466,482 | 34,623,918 |
Total liabilities and stockholders’ equity | $ 57,335,686 | $ 55,455,825 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 154,727 | $ 123,614 |
Series A Convertible Preferred Stock, par value | $ 0.001 | $ 0.001 |
Series A Convertible Preferred Stock, shares outstanding | 22,407 | 22,513 |
Series B Convertible Preferred Stock, par value | $ 0.001 | $ 0.001 |
Series B Convertible Preferred Stock, shares authorized | 10,000,000 | 10,000,000 |
Series B Convertible Preferred Stock, shares outstanding | 5,610,121 | 5,610,121 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 74,428,865 | 73,694,203 |
Treasury stock, shares | 4,015 | 4,015 |
Statements of Operations (Unaud
Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue: | ||||
Total revenue | $ 9,051,422 | $ 5,345,455 | $ 17,673,980 | $ 11,101,696 |
Sublease | 246,530 | 246,530 | 493,060 | 493,060 |
Cost of revenue: | ||||
Total cost of revenue | 2,519,407 | 1,084,981 | 5,126,090 | 2,036,396 |
Sublease | 246,530 | 246,530 | 493,060 | 493,060 |
Gross margin | 6,532,015 | 4,260,474 | 12,547,890 | 9,065,300 |
Operating expenses: | ||||
Research and development | 2,717,078 | 1,976,942 | 5,084,119 | 4,086,112 |
Sales and marketing | 3,044,750 | 2,541,749 | 5,991,966 | 5,457,173 |
General and administrative | 4,160,909 | 1,663,456 | 6,390,648 | 3,496,181 |
Total operating expenses | 9,922,737 | 6,182,147 | 17,466,733 | 13,039,466 |
Operating loss | (3,390,722) | (1,921,673) | (4,918,843) | (3,974,166) |
Interest (expense) income, net | (2,567) | 567 | (6,843) | 81,529 |
Gain on extinguishment of debt | 2,182,891 | 2,182,891 | ||
Net loss | (1,210,398) | (1,921,106) | (2,742,795) | (3,892,637) |
Cumulative dividend on Series A convertible preferred stock | (335,197) | (342,126) | (667,748) | (685,849) |
Loss attributable to common stockholders | $ (1,545,595) | $ (2,263,232) | $ (3,410,543) | $ (4,578,486) |
Net loss per share attributable to common stockholders: | ||||
Basic | $ (0.02) | $ (0.03) | $ (0.05) | $ (0.06) |
Diluted | $ (0.02) | $ (0.03) | $ (0.05) | $ (0.06) |
Weighted average number of common shares and equivalents: | ||||
Basic | 75,547,574 | 71,628,762 | 75,362,521 | 70,749,401 |
Diluted | 75,547,574 | 71,628,762 | 75,362,521 | 70,749,401 |
Systems [Member] | ||||
Revenue: | ||||
Total revenue | $ 2,686,180 | $ 12,769 | $ 5,288,692 | $ 12,769 |
Cost of revenue: | ||||
Total cost of revenue | 1,389,588 | 157,514 | 2,825,123 | 222,536 |
Dispsables service and accesories [Member] | ||||
Revenue: | ||||
Total revenue | 6,118,712 | 5,086,156 | 11,892,228 | 10,595,867 |
Cost of revenue: | ||||
Total cost of revenue | $ 883,289 | $ 680,937 | $ 1,807,907 | $ 1,320,800 |
Statements of Convertible Prefe
Statements of Convertible Preferred Stock and Stockholders' Equity (Unaudited) - USD ($) | Convertible preferred stock Series A [Member] | Convertible preferred stock Series B [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2019 | $ 5,758,190 | $ 5,610 | $ 68,530 | $ 504,211,040 | $ (205,999) | $ (481,312,774) | $ 22,766,407 |
Beginning Balance, shares at Dec. 31, 2019 | 23,110 | 5,610,121 | 68,529,623 | ||||
Issuance of common stock | $ 3,815 | 15,004,554 | 15,008,369 | ||||
Issuance of common stock, Shares | 3,815,092 | ||||||
Share-based compensation | $ 117 | 1,657,604 | 1,657,721 | ||||
Share-based compensation, Shares | 116,989 | ||||||
Components of net loss | (3,892,637) | (3,892,637) | |||||
Employee stock purchase plan | $ 18 | 65,006 | 65,024 | ||||
Employee stock purchase plan, Shares | 17,835 | ||||||
Preferred stock conversion | $ (76,049) | $ 551 | 75,498 | 76,049 | |||
Preferred stock conversion, Shares | (297) | 551,285 | |||||
Ending balance, value at Jun. 30, 2020 | $ 5,682,141 | $ 5,610 | $ 73,031 | 521,013,702 | (205,999) | (485,205,411) | 35,680,933 |
Ending Balance, shares at Jun. 30, 2020 | 22,813 | 5,610,121 | 73,030,824 | ||||
Beginning balance, value at Mar. 31, 2020 | $ 5,709,027 | $ 5,610 | $ 69,041 | 504,990,377 | (205,999) | (483,284,305) | 21,574,724 |
Beginning Balance, shares at Mar. 31, 2020 | 22,918 | 5,610,121 | 69,040,781 | ||||
Issuance of common stock | $ 3,774 | 15,028,445 | 15,032,219 | ||||
Issuance of common stock, Shares | 3,774,276 | ||||||
Share-based compensation | $ 8 | 935,401 | 935,409 | ||||
Share-based compensation, Shares | 7,500 | ||||||
Components of net loss | (1,921,106) | (1,921,106) | |||||
Employee stock purchase plan | $ 11 | 32,790 | 32,801 | ||||
Employee stock purchase plan, Shares | 11,429 | ||||||
Preferred stock conversion | $ (26,886) | $ 197 | 26,689 | 26,886 | |||
Preferred stock conversion, Shares | (105) | 196,838 | |||||
Ending balance, value at Jun. 30, 2020 | $ 5,682,141 | $ 5,610 | $ 73,031 | 521,013,702 | (205,999) | (485,205,411) | 35,680,933 |
Ending Balance, shares at Jun. 30, 2020 | 22,813 | 5,610,121 | 73,030,824 | ||||
Beginning balance, value at Dec. 31, 2020 | $ 5,605,323 | $ 5,610 | $ 73,694 | 522,709,846 | (205,999) | (487,959,233) | 34,623,918 |
Beginning Balance, shares at Dec. 31, 2020 | 22,513 | 5,610,121 | 73,694,203 | ||||
Issuance of common stock | $ 246 | 339,440 | 339,686 | ||||
Issuance of common stock, Shares | 244,584 | ||||||
Share-based compensation | $ 272 | 4,156,002 | 4,156,274 | ||||
Share-based compensation, Shares | 272,500 | ||||||
Components of net loss | (2,742,795) | (2,742,795) | |||||
Employee stock purchase plan | $ 11 | 62,246 | 62,257 | ||||
Employee stock purchase plan, Shares | 11,207 | ||||||
Preferred stock conversion | $ (27,142) | $ 206 | 26,936 | 27,142 | |||
Preferred stock conversion, Shares | (106) | 206,371 | |||||
Ending balance, value at Jun. 30, 2021 | $ 5,578,181 | $ 5,610 | $ 74,429 | 527,294,470 | (205,999) | (490,702,028) | 36,466,482 |
Ending Balance, shares at Jun. 30, 2021 | 22,407 | 5,610,121 | 74,428,865 | ||||
Beginning balance, value at Mar. 31, 2021 | $ 5,578,437 | $ 5,610 | $ 74,090 | 524,388,783 | (205,999) | (489,491,630) | 34,770,854 |
Beginning Balance, shares at Mar. 31, 2021 | 22,408 | 5,610,121 | 74,089,659 | ||||
Issuance of common stock | $ 90 | 86,761 | 86,851 | ||||
Issuance of common stock, Shares | 89,778 | ||||||
Share-based compensation | $ 242 | 2,785,475 | 2,785,717 | ||||
Share-based compensation, Shares | 242,250 | ||||||
Components of net loss | (1,210,398) | (1,210,398) | |||||
Employee stock purchase plan | $ 5 | 33,197 | 33,202 | ||||
Employee stock purchase plan, Shares | 5,204 | ||||||
Preferred stock conversion | $ (256) | $ 2 | 254 | 256 | |||
Preferred stock conversion, Shares | (1) | 1,974 | |||||
Ending balance, value at Jun. 30, 2021 | $ 5,578,181 | $ 5,610 | $ 74,429 | $ 527,294,470 | $ (205,999) | $ (490,702,028) | $ 36,466,482 |
Ending Balance, shares at Jun. 30, 2021 | 22,407 | 5,610,121 | 74,428,865 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities | ||
Net loss | $ (2,742,795) | $ (3,892,637) |
Adjustments to reconcile net loss to cash used in operating activities: | ||
Depreciation | 53,272 | 58,300 |
Non-cash lease expense | 1,165,424 | 1,171,170 |
Share-based compensation | 4,156,274 | 1,657,721 |
Gain on debt extinguishment | (2,182,891) | |
Non-cash interest | 24,581 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,136,668) | 2,288,477 |
Inventories | (851,234) | (2,728,548) |
Prepaid expenses and other current assets | (930,792) | (140,582) |
Compensating cash arrangement | (612) | |
Other assets | 25,422 | (51,439) |
Accounts payable | (484,458) | (527,418) |
Accrued liabilities | (351,756) | (319,479) |
Deferred revenue | 4,101,707 | 318,654 |
Operating lease liability | (1,191,446) | (1,170,979) |
Other liabilities | 75,365 | |
Net cash used in operating activities | (270,607) | (3,336,760) |
Cash flows from investing activities | ||
Purchase of property and equipment | (149,721) | (70,896) |
Net cash used in investing activities | (149,721) | (70,896) |
Cash flows from financing activities | ||
Proceeds from Paycheck Protection Program loan | 2,158,310 | |
Proceeds from issuance of stock, net of issuance costs | 401,943 | 15,073,393 |
Net cash provided by financing activities | 401,943 | 17,231,703 |
Net (decrease) increase in cash and cash equivalents | (18,385) | 13,824,047 |
Cash and cash equivalents at beginning of period | 43,939,512 | 30,182,115 |
Cash and cash equivalents at end of period | 43,921,127 | 44,006,162 |
Reconciliation of cash, cash equivalents, and restricted cash to balance sheet as of June 30th: | ||
Cash and cash equivalents | 42,054,296 | 44,006,162 |
Restricted cash - current | 1,484,018 | |
Restricted cash | $ 382,813 |
Description of Business
Description of Business | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | 1. Description of Business Stereotaxis designs, manufactures and markets an advanced robotic magnetic navigation system for use in a hospital’s interventional surgical suite, or “interventional lab”, that we believe revolutionizes the treatment of arrhythmias by enabling enhanced safety, efficiency, and efficacy for catheter-based, or interventional, procedures. Our primary products include the Genesis RMN Niobe Odyssey The Genesis RMN Niobe In addition to the robotic magnetic navigation systems and their components, Stereotaxis also has developed the Odyssey Odyssey Cinema Odyssey We promote our full suite of products in a typical hospital implementation, subject to regulatory approvals or clearances. This implementation requires a hospital to agree to an upfront capital payment and recurring payments. The upfront capital payment typically includes equipment and installation charges. The recurring payments typically include disposable costs for each procedure, equipment service costs beyond the warranty period, and ongoing software enhancements. In hospitals where our full suite of products has not been implemented, equipment upgrade or expansion can be implemented upon purchasing of the necessary upgrade or expansion. We have received regulatory clearance, licensing and/or CE Mark approvals necessary for us to market the Genesis RMN Niobe Odyssey Cardiodrive Vdrive Vdrive Duo V-CAS V-Loop V-Sono We have strategic relationships with technology leaders and innovators in the global interventional market. Through these strategic relationships we provide compatibility between our robotic magnetic navigation system and digital imaging and 3D catheter location sensing technology, as well as disposable interventional devices. The maintenance of these strategic relationships, or the establishment of equivalent alternatives, is critical to our commercialization efforts. There are no guarantees that any existing strategic relationships will continue and efforts are ongoing to ensure the availability of integrated next generation systems and/or equivalent alternatives. We cannot provide assurance as to the timeline of the ongoing availability of such compatible systems or our ability to obtain equivalent alternatives on competitive terms or at all. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited financial statements of Stereotaxis, Inc. have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the instructions to Form 10-Q. Accordingly, they do not include all the disclosures required by GAAP for complete financial statements. In the opinion of management, they include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods presented. Operating results for the six-month period ended June 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021 or for future operating periods. These interim financial statements and the related notes should be read in conjunction with the annual financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, as filed with the Securities and Exchange Commission (SEC) on March 12, 2021. Risks and Uncertainties The novel coronavirus COVID-19 (“COVID-19”) pandemic has resulted, and is likely to continue to result, in periodic and unexpected disruptions to the economy, as well as business and capital markets around the world. The full extent of the impact of the ongoing COVID-19 pandemic on our business, results of operations and financial condition will depend on numerous evolving factors that we may not be able to accurately predict. As a result of the COVID-19 outbreak, we have experienced business disruptions, including travel restrictions on us and our third-party distributors, which have negatively affected our complex sales, marketing, installation, distribution and service network relating to our products and services. The COVID-19 pandemic may continue to negatively affect demand for both our systems and our disposable products by limiting the ability of our sales personnel to maintain their customary contacts with customers as governmental authorities institute new or continuing quarantines, travel restrictions, and shelter-in-place orders, or as our customers impose limitations on contacts and in-person meetings that go beyond those imposed by governmental authorities. In addition, many of our hospital customers, for whom the purchase of our system involves a significant capital purchase which may be part of a larger construction project at the customer site (typically the construction of a new building), may themselves be under economic pressures. This may cause delays or cancellations of current purchase orders and other commitments and may exacerbate the long and variable sales and installation cycles for our robotic magnetic navigation systems. We may also experience significant reductions in demand for our disposable products as our healthcare customers (physicians and hospitals) continue to re-prioritize the treatment of patients and divert resources away from non-coronavirus areas, which we anticipate will lead to the performance of fewer procedures in which our disposable products are used. In addition, patients may consider foregoing or deferring procedures utilizing our products, even if physicians and hospitals are willing to perform them, which could also reduce demand for, and sales of, our disposable products. As of the date of the filing of this Quarterly Report on Form 10-Q, we believe our manufacturing operations and supply chains have been manageably interrupted, but we cannot guarantee that they will not be interrupted more severely in the future. If our manufacturing operations or supply chains are materially interrupted, it may not be possible for us to timely manufacture relevant products at required levels, or at all. A material reduction or interruption to any of our manufacturing processes would have a material adverse effect on our business, operating results, and financial condition. If governmental authorities around the world continue to institute prolonged mandatory closures, social distancing protocols and shelter-in-place orders, or as private parties on whom we rely to operate our business put in place their own protocols that go beyond those instituted by relevant governmental authorities, our ability to adequately staff and maintain our operations or further our product development could be negatively impacted. Any disruption to the capital markets could negatively impact our ability to raise capital. If the capital markets are disrupted for an extended period of time and we need to raise additional capital, such capital may not be available on acceptable terms, or at all. Continued disruptions to the capital markets and other financing sources could also negatively impact our hospital customers’ ability to raise capital or otherwise obtain financing to fund their operations and capital projects. Such could result in delayed spending on current projects, a longer sales cycle for new projects where a large capital commitment is required, and decreased demand for our disposable products as well as an increased risk of customer defaults or delays in payments for our systems, installation, service contracts and disposable products. We continue to evaluate and, where appropriate, take actions to reduce costs and spending across our organization. We will continue to actively monitor the situation and may take further actions that alter our business operations that may be required by federal, state, or local governmental authorities or that may be implemented by our vendors, suppliers or customers, or that we determine are in the best interests of our employees, customers, suppliers and stockholders. Cash and Cash Equivalents The Company considers all short-term investments purchased with original maturities of three months or less to be cash equivalents. The Company places its cash with high-credit-quality financial institutions and invests primarily in money market accounts. Restricted Cash Restricted cash primarily consists of cash that the Company is obligated to maintain in accordance with contractual obligations. The Company’s restricted cash was $ 1.9 No Compensating Cash Arrangement In July 2020, the Company entered into a letter of credit to support a commitment of less than $ 0.3 0.3 Financial Instruments Financial instruments consist of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and debt. The carrying value of such amounts reported at the applicable balance sheet dates approximates fair value. The Company measures certain financial assets and liabilities at fair value on a recurring basis. General accounting principles for fair value measurement established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (“Level 1”) and the lowest priority to unobservable inputs (“Level 3”). The Company’s financial assets consist of restricted cash and cash equivalents invested in money market funds which totaled $ 1.9 1.4 Revenue and Costs of Revenue The Company accounts for revenue in accordance with Accounting Standards Codification Topic 606 (“ASC 606”), “Revenue from Contracts with Customers”. We generate revenue from initial capital sales of systems as well as recurring revenue from the sale of our proprietary disposable devices, from royalties paid to the Company on the sale by Biosense Webster of co-developed catheters, and from ongoing software enhancements and service contracts. We account for a contract with a customer when there is a legally enforceable contract between the Company and the customer, the rights of the parties are identified, the contract has commercial substance, and collectability of the contract consideration is probable. We record our revenue based on consideration specified in the contract with each customer, net of any taxes collected from customers that are remitted to government authorities. For contracts containing multiple products and services, the Company accounts for individual products and services as separate performance obligations if they are distinct, which is if a product or service is separately identifiable from other items in the bundled package, and if a customer can benefit from it on its own or with other resources that are readily available to the customer. The Company recognizes revenues as the performance obligations are satisfied by transferring control of the product or service to a customer. For arrangements with multiple performance obligations, revenue is allocated to each performance obligation based on its relative standalone selling price. Standalone selling prices are based on observable prices at which the Company separately sells the products or services. If a standalone selling price is not directly observable, then the Company estimates the standalone selling price considering market conditions and entity-specific factors including, but not limited to, features and functionality of the products and services and market conditions. The Company regularly reviews standalone selling prices and updates these estimates if necessary. Our revenue recognition policy affects the following revenue streams in our business as follows: Systems: Contracts related to the sale of systems typically contain separate obligations for the delivery of system(s), installation and an implied obligation to provide software enhancements if and when available for one year following installation. Revenue is recognized when the Company transfers control to the customer, which is generally at the point when acceptance occurs that indicates customer acknowledgment of delivery or installation, depending on the terms of the arrangement. Revenue from the implied obligation to deliver software enhancements if and when available is recognized ratably over the first year following installation of the system as the customer receives the right to software enhancements throughout the period and is included in Other Recurring Revenue. The Company’s system contracts do not provide a right of return. Systems are generally covered by a one-year assurance type warranty; warranty costs were $ 0.1 0.1 30 1 Disposables: Revenue from sales of disposable products is recognized when control is transferred to the customers, which generally occurs at the time of shipment, but can also occur at the time of delivery depending on the customer arrangement. Disposable products are covered by an assurance type warranty that provides for the return of defective products. Warranty costs were not material for the six months ended June 30, 2021 and 2020. Disposable revenue represented 25% 3 Royalty: The Company is entitled to royalty payments from Biosense Webster, payable quarterly based on net revenues from sales of the co-developed catheters. Royalty revenue from the co-developed catheters represented 7 9 Other Recurring Revenue: Other recurring revenue includes revenue from product maintenance plans, other post warranty maintenance, and the implied obligation to provide software enhancements if and when available for a specified period, typically one year following installation of our systems. Revenue from services and software enhancements is deferred and amortized over the service or update period, which is typically one year. Revenue related to services performed on a time-and-materials basis is recognized when performed. Other recurring revenue represented 35 % and 56 % of revenue for the six months ended June 30, 2021 and 2020, respectively. Sublease Revenue: A portion of our principal executive office is subleased to a third party through 2021. In accordance with Accounting Standards Update (ASU) 2016-02, “Leases” (Topic 842), the Company records sublease income as revenue. Sublease revenue represented 3 4% Schedule of Revenue Disaggregated by Type Three Months Ended June 30 Six Months Ended June 30, 2021 2020 2021 2020 Systems $ 2,686,180 $ 12,769 $ 5,288,692 $ 12,769 Disposables, service and accessories 6,118,712 5,086,156 11,892,228 10,595,867 Sublease 246,530 246,530 493,060 493,060 Total revenue $ 9,051,422 $ 5,345,455 $ 17,673,980 $ 11,101,696 Transaction price allocated to remaining performance obligations relates to amounts allocated to products and services for which the revenue has not yet been recognized. A significant portion of this amount relates to the Company’s systems contracts and obligations that will be recognized as revenue in future periods. These obligations are generally satisfied within two years after contract inception but may occasionally extend longer. Transaction price representing revenue to be earned on remaining performance obligations on system contracts was approximately $ 8.7 The following information summarizes the Company’s contract assets and liabilities: Summary of Contract Assets and Liabilities June 30, 2021 December 31, 2020 Contract Assets - unbilled receivables $ 180,751 $ 284,415 Customer deposits $ 2,132,598 $ - Product shipped, revenue deferred 2,173,300 645,200 Deferred service and license fees 5,627,494 5,186,485 Total deferred revenue $ 9,933,392 $ 5,831,685 Less: Long-term deferred revenue (1,648,792 ) (548,915 ) Total current deferred revenue $ 8,284,600 $ 5,282,770 The Company invoices its customers based on the billing schedules in its sales arrangements. Contract assets primarily represent the difference between the revenue that was earned but not billed on service contracts and revenue from system contracts that was recognized based on the relative selling price of the related performance obligations and the contractual billing terms in the arrangements. Customer deposits primarily relate to future system sales but can also include deposits on disposable sales. Deferred revenue is primarily related to service contracts, for which the service fees are billed up-front, generally quarterly or annually, and for amounts billed in advance for system contracts for which some performance obligations remain outstanding. For service contracts, the associated deferred revenue is generally recognized ratably over the service period. For system contracts, the associated deferred revenue is recognized when the remaining performance obligations are satisfied. The Company did not have any impairment losses on its contract assets for the periods presented. Revenue recognized for the six months ended June 30, 2021 and 2020, that was included in the deferred revenue balance at the beginning of each reporting period remained consistent at $ 4.0 Assets Recognized from the Costs to Obtain a Contract with a Customer The Company has determined that sales incentive programs for the Company’s sales team meet the requirements to be capitalized as the Company expects to generate future economic benefits from the related revenue generating contracts after the initial capital sales transaction. The costs capitalized as contract acquisition costs included in prepaid expenses and other assets, in the Company’s balance sheet was $ 0.2 0.3 Costs of systems revenue include direct product costs, installation labor and other costs, estimated warranty costs, and initial training and product maintenance costs. These costs are recognized at the time of sale. Costs of disposable revenue include direct product costs and estimated warranty costs and are recognized at the time of sale. Cost of revenue from services and license fees are recognized when incurred. Share-Based Compensation The Company accounts for its grants of stock options, stock appreciation rights, restricted shares, and restricted stock units and for its employee stock purchase plan in accordance with the provisions of general accounting principles for share-based payments. These accounting principles require the determination of the fair value of the share-based compensation at the grant date and the recognition of the related expense over the period in which the share-based compensation vests. For time-based awards, the Company utilizes the Black-Scholes valuation model to determine the fair value of stock options and stock appreciation rights at the date of grant. The resulting compensation expense is recognized over the requisite service period, which is generally four years. Restricted shares and units granted to employees are valued at the fair market value at the date of grant. The Company amortizes the fair market value to expense over the service period. If the shares are subject to performance objectives, the resulting compensation expense is amortized over the anticipated vesting period and is subject to adjustment based on the actual achievement of objectives. For market-based awards, stock-based compensation expense is recognized over the minimum service period regardless of whether or not the market target is probable of being achieved. The fair value of such awards is estimated on the grant date using Monte Carlo simulations. Shares purchased by employees under the 2009 Employee Stock Purchase Plan are considered to be non-compensatory. Net Earnings (Loss) per Common Share Basic earnings (loss) per common share is computed by dividing the net earnings (loss) for the period by the weighted average number of common shares outstanding during the period. In periods where there is net income, we apply the two-class method to calculate basic and diluted net income (loss) per share of common stock, as our convertible preferred stock is a participating security. The two-class method is an earnings allocation formula that treats a participating security as having rights to earnings that otherwise would have been available to common stockholders. In periods where there is a net loss, the two-class method of computing earnings per share does not apply as our convertible preferred stock does not contractually participate in our losses. We compute diluted net income (loss) per common share using net income (loss) as the “control number” in determining whether potential common shares are dilutive, after giving consideration to all potentially dilutive common shares, including stock options, warrants, unvested restricted stock units outstanding during the period and potential issuance of stock upon the conversion of our convertible preferred stock issued and outstanding during the period, except where the effect of such securities would be antidilutive. The following table sets forth the computation of basic and diluted EPS: Schedule of Computation of Basic and Diluted Earnings Per Share 2021 2020 2021 2020 Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net loss $ (1,210,398 ) $ (1,921,106 ) $ (2,742,795 ) $ (3,892,637 ) Cumulative dividend on Series A Convertible Preferred Stock (335,197 ) (342,126 ) (667,748 ) (685,849 ) Net loss attributable to common stockholders $ (1,545,595 ) $ (2,263,232 ) $ (3,410,543 ) $ (4,578,486 ) Weighted average number of common shares and equivalents: 75,547,574 71,628,762 75,362,521 70,749,401 Basic EPS $ (0.02 ) $ (0.03 ) $ (0.05 ) $ (0.06 ) Diluted EPS $ (0.02 ) $ (0.03 ) $ (0.05 ) $ (0.06 ) The Company did not include any portion of unearned restricted shares, outstanding options, stock appreciation rights, warrants or convertible preferred stock in the calculation of diluted loss per common share because all such securities are anti-dilutive for all periods presented. The application of the two-class method of computing earnings per share under general accounting principles for participating securities is not applicable during these periods because those securities do not contractually participate in its losses. As of June 30, 2021, the Company had 2,845,041 3.93 15,385 0.70 44,303,996 5,610,121 1,044,973 Recently Issued Accounting Pronouncements In December 2019, the FASB issued Accounting Standards Update (ASU) 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” as part of its effort to reduce the complexity of accounting standards. The ASU is effective for fiscal years beginning after December 15, 2020. The Company adopted with no impact to the Company’s financial statements. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments” and also issued subsequent amendments to the initial guidance under ASU 2018-19, ASU 2019-04 and ASU 2019-05. The standard modifies the measurement approach for credit losses on financial instruments, including trade receivables, from an incurred loss method to a current expected credit loss method, otherwise known as “CECL.” The standard requires the measurement of expected credit losses to be based on relevant information, including historical experience, current conditions and a forecast that is supportable. The standard is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years; early adoption is permitted. The standard must be adopted by applying a cumulative adjustment to retained earnings. The Company anticipates adopting the standard in the first quarter of 2023, although it does not expect a significant impact to the Company’s financial results. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | 3. Inventories Inventories consist of the following: Schedule of Inventories June 30, 2021 December 31, 2020 Raw materials $ 3,284,691 $ 2,950,912 Work in process 919,214 433,026 Finished goods 2,397,991 2,987,039 Reserve for excess and obsolescence (2,455,205 ) (3,075,520 ) Total inventory $ 4,146,691 $ 3,295,457 The reserve for excess and obsolescence primarily includes Niobe Systems and related raw materials and spare parts. |
Prepaid Expenses and Other Asse
Prepaid Expenses and Other Assets | 6 Months Ended |
Jun. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Assets | 4. Prepaid Expenses and Other Assets Prepaid expenses and other assets consist of the following: Schedule of Prepaid Expenses and Other Assets June 30, 2021 December 31, 2020 Prepaid expenses $ 1,165,885 $ 754,062 Prepaid commissions 235,745 271,174 Deposits 1,411,544 855,970 Other assets 116,725 143,323 Total prepaid expenses and other assets 2,929,899 2,024,529 Less: Noncurrent prepaid expenses and other assets (283,093 ) (308,515 ) Total current prepaid expenses and other assets $ 2,646,806 $ 1,716,014 |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 5. Property and Equipment Property and Equipment consist of the following: Schedule of Property and Equipment June 30, 2021 December 31, 2020 Equipment $ 4,940,877 $ 6,488,984 Leasehold improvements 2,299,550 2,338,441 Construction in process 149,721 - 7,390,148 8,827,425 Less: Accumulated depreciation (7,098,570 ) (8,632,296 ) Net property and equipment $ 291,578 $ 195,129 The company retired approximately $ 1.6 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | 6. Leases A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. The Company accounts for leases in accordance with Accounting Standards Update No. 2016-02 “Leases” (Topic 842) and all subsequent ASUs that modified Topic 842 (“ASC 842”). The Company determines if an arrangement contains a lease at inception. The Company leases its facilities under operating leases. In accordance with ASC 842, operating lease agreements are recognized on the balance sheet as a right-of-use (“ROU”) asset and a corresponding lease liability. These leases do not have significant rent escalation holidays, concessions, leasehold improvement incentives, or other build-out clauses. Further, the leases do not contain contingent rent provisions. Many of our leases include both lease (i.e., fixed payments including rent, taxes, and insurance costs) and non-lease components (i.e., common-area or other maintenance costs) which are accounted for as a single lease component as we have elected the practical expedient to group lease and non-lease components for all leases. A portion of our principal executive office is subleased to a third party through 2021. The sublease does not have significant rent escalation holidays, concessions, leasehold improvement incentives, or other build-out clauses. In addition, the sublease does not contain contingent rent provisions nor are there options to extend or terminate the sublease. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. The Company elected not to include short-term leases (i.e. leases with initial terms of twelve months or less) on the balance sheet. The calculated amounts of the ROU assets and lease liabilities are impacted by the length of the lease term and the discount rate used to calculate the present value of the minimum lease payments. ASC 842 requires the use of the discount rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception. At June 30, 2021, the weighted average discount rate for operating leases was 9.0 0.5 The following table represents lease costs and other lease information. Schedule of Lease Costs and Other Lease Information 2021 2020 2021 2020 Three Months Ended June 30 Six Months Ended June 30 2021 2020 2021 2020 Operating lease cost $ 582,712 $ 585,584 $ 1,165,424 $ 1,171,170 Short-term lease cost 14,042 19,304 30,704 34,774 Sublease income (246,530 ) (246,530 ) (493,060 ) (493,060 ) Total net lease cost $ 350,224 $ 358,358 $ 703,068 $ 712,884 Cash paid within operating cash flows $ 539,204 $ 588,897 $ 1,170,290 $ 1,225,247 Variable lease costs consist primarily of taxes, insurance, and common area or other maintenance costs for our leased facilities and equipment which are paid based on actual costs incurred. Future minimum payments for operating leases with initial or remaining terms of one year or more as of June 30, 2021, excluding sublease income, were as follows: Schedule of Future Minimum Operating Lease Payments June 30, 2021 2021 Total lease payments $ 1,191,330 Less: Interest (21,952 ) Present value of lease liabilities $ 1,169,378 The remaining undiscounted future cash flows to be received under the sublease are $ 0.5 On March 1, 2021, the Company entered into an office lease agreement (the “Lease”) with Globe Building Company (the “Landlord”), under which the Company will lease executive office space and manufacturing facilities of approximately 43,100 January 1, 2022 ten years two renewal options of five years 0.8 1.0 |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | 7. Accrued Liabilities Accrued liabilities consist of the following: Schedule of Accrued Liabilities June 30, 2021 December 31, 2020 Accrued salaries, bonus, and benefits $ 1,424,592 $ 2,044,826 Accrued licenses and maintenance fees 483,879 483,879 Accrued warranties 222,206 157,615 Accrued taxes 167,979 172,744 Accrued professional services 453,348 138,359 Other 312,071 343,043 Total accrued liabilities 3,064,075 3,340,466 Less: Long term accrued liabilities (206,596 ) (131,231 ) Total current accrued liabilities $ 2,857,479 $ 3,209,235 |
Debt and Credit Facilities
Debt and Credit Facilities | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt and Credit Facilities | 8. Debt and Credit Facilities The Company had a working capital line of credit with its primary lender, Silicon Valley Bank, that matured on June 30, 2020 The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted on March 27, 2020 in the United States. Among the provisions contained in the CARES Act was the creation of the Paycheck Protection Program that provides for Small Business Administration (“SBA”) Section 7(a) loans for qualified small businesses. In general, the loan could be forgiven as long as the funds were used for payroll related expenses as well as rent and utilities paid during the twenty-four week period from the date of the loan and as long as certain headcount and salary/wage levels were maintained. On April 10, 2020, the Company was informed by its lender, Midwest BankCentre (the “Bank”), that the Bank received approval from the SBA to fund the Company’s request for a loan under the SBA’s Paycheck Protection Program (“PPP Loan”). Per the terms of the PPP Loan, the Company received total proceeds of approximately $ 2.2 million from the Bank on April 20, 2020. In accordance with the loan forgiveness requirements of the CARES Act, the Company used the full proceeds from the PPP Loan primarily for payroll costs, rent and utilities. In March 2021, the Company applied for loan forgiveness and in June 2021 full loan forgiveness was granted by the SBA. The Company recognized a net gain from debt extinguishment of approximately $ 2.2 million. In accordance with general accounting principles for fair value measurement, the Company’s debt was measured at fair value (Level 2), which approximated the carrying value of the debt as of December 31, 2020. |
Convertible Preferred Stock and
Convertible Preferred Stock and Stockholders’ Equity | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Convertible Preferred Stock and Stockholders’ Equity | 9. Convertible Preferred Stock and Stockholders’ Equity The holders of common stock are entitled to one No 2020 Equity Financing On May 25, 2020, the Company entered into a Securities Purchase Agreement with certain accredited investors, whereby it, in a direct registered offering, agreed to issue and sell to the investors an aggregate of 3,658,537 0.001 4.10 15.0 Series B Convertible Preferred Stock On August 7, 2019, the Company entered into a Securities Purchase Agreement with certain institutional and other accredited investors, whereby it, as part of a private placement, agreed to issue and sell to the 5,610,121 0.001 2.05 Series A Convertible Preferred Stock and Warrants In September 2016, the Company issued (i) 24,000 0.001 1,000 0.65 36,923,078 6 1,000 50 The warrants issued in conjunction with the Series A Preferred Stock (the “SPA Warrants”) have an exercise price of $ 0.70 September 29, 2021 2021 CEO Performance Award Unit Grant On February 23, 2021, the Company`s Board of Directors, upon recommendation of the Compensation Committee, approved the grant of the CEO Performance Award to the Company’s Chief Executive Officer. The CEO Performance award is a 10 13,000,000 As detailed in the table below, the CEO Performance Award consists of ten vesting tranches. The first market capitalization milestone is $ 1.0 billion, and each of the remaining nine market capitalization milestones are in additional $ 500 million increments, up to $ 5.5 billion. Summary of Performance Award And Market Capitalization Milestones Tranche # No. of Shares Subject to PSU Market Capitalization (1) 1 1,000,000 $ 1,000,000,000 2 1,500,000 $ 1,500,000,000 3 1,500,000 $ 2,000,000,000 4 2,000,000 $ 2,500,000,000 5 1,000,000 $ 3,000,000,000 6 1,000,000 $ 3,500,000,000 7 1,000,000 $ 4,000,000,000 8 2,000,000 $ 4,500,000,000 9 1,000,000 $ 5,000,000,000 10 1,000,000 $ 5,500,000,000 Total: 13,000,000 Each tranche represents a portion of the PSUs covering the number of shares outlined in the table above. Each tranche vests upon (i) satisfaction of the market capitalization milestones and (ii) continued employment as CEO of the Company from the grant date through December 31, 2030. Absent an earlier termination, the PSUs will expire on December 31, 2030. If our CEO ceases employment as CEO of the Company for any reason including death, disability, termination for cause or without cause (as defined in the award agreement), or if he voluntary terminates after service as CEO for at least five years, the remaining service period will be waived and he will retain any PSUs that have vested through the date of termination. The Company received Shareholder approval at its annual meeting on May 20, 2021 for shares to be issued under the award. The market capitalization requirement is considered a market condition under FASB Accounting Standards Codification Topic 718 “Compensation – Stock Compensation” and is estimated on the grant date using Monte Carlo simulations. Recognition of stock-based compensation expense of all the tranches commenced on February 23, 2021, the date of grant, as the probability of meeting the ten market capitalization milestones is not considered in determining the timing of expense recognition. The expense will be recognized on an accelerated basis through 2030. Key assumptions for estimating the performance-based awards fair value at the date of grant included share price on grant date, volatility of the Company’s common stock price, risk free interest rate, and grant term. Total stock-based compensation recorded as operating expense for the CEO Performance Award was $ 2.5 million for the six-month period ended June 30, 2021. As of June 30, 2021, the Company had approximately $ 54.9 million of total unrecognized stock-based compensation expense remaining under the CEO Performance Award assuming the grantee’s continued employment as CEO of the Company, or in a similar capacity, through 2030. 2012 Stock Award Plan The Company has various stock plans that permit the Company to provide incentives to employees and directors of the Company in the form of equity compensation. In July 2012, the Compensation Committee of the Board of Directors adopted the 2012 Stock Incentive Plan (the “Plan”) which was subsequently approved by the Company’s shareholders. This plan replaced the 2002 Stock Incentive Plan which expired on March 25, 2012 On May 20, 2021, the shareholders approved an amendment to the Plan, which was previously approved and adopted by the Compensation Committee of the Board of Directors of the Company. Under the amendment on May 20, 2021, the number of shares authorized for issuance under the Plan was increased by four million shares. At June 30, 2021, the Company had 5,144,178 At June 30, 2021, the total compensation cost related to options, stock appreciation rights, and non-vested stock granted to employees under the Company’s stock award plans but not yet recognized was approximately $ 5.7 four years A summary of the option and stock appreciation rights activity for the six-month period ended June 30, 2021 is as follows: Summary of Option and Stock Appreciation Rights Activity Number of Options/SARs Range of Exercise Price Weighted Average Exercise Price per Share Outstanding, December 31, 2020 2,456,979 $ 0.74 35.20 $ 2.90 Granted 829,000 $ 6.96 7.91 $ 6.97 Exercised (270,458 ) $ 0.74 4.52 $ 1.97 Forfeited (170,480 ) $ 0.74 35.20 $ 6.88 Outstanding, June 30, 2021 2,845,041 $ 0.74 7.91 $ 3.93 A summary of the restricted stock unit activity for the six-month period ended June 30, 2021 is as follows: Summary of Restricted Stock Unit Activity Number of Restricted Stock Units Weighted Average Grant Date Fair Value per Unit Outstanding, December 31, 2020 1,112,473 $ 2.46 Granted 205,000 $ 5.16 Vested (272,500 ) $ 2.88 Forfeited - - Outstanding, June 30, 2021 1,044,973 $ 2.88 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 10. Fair Value Measurements The Company measures certain financial assets and liabilities at fair value on a recurring basis, including certain cash equivalents. Generally accepted accounting principles for fair value measurement established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (“Level 1”) and the lowest priority to unobservable inputs (“Level 3”). The three levels of the fair value hierarchy are described below: Level 1: Values are based on unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Values are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, or other model-based valuation techniques for which all significant assumptions are observable in the market. Level 3: Values are generated from model-based techniques that use significant assumptions not observable in the market. The following table sets forth the Company’s assets measured at fair value on a recurring basis by level within the fair value hierarchy. As required by the Fair Value Measurements and Disclosures topic of the Accounting Standards Codification, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Schedule of Assets Measured at Fair Value on a Recurring Basis by Level Within Fair Value Hierarchy Fair Value Measurement Using Total Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets at June 30, 2021: Cash invested in money market accounts $ 1,866,831 $ — $ 1,866,831 $ — Total assets at fair value $ 1,866,831 $ — $ 1,866,831 $ — Assets at December 31, 2020: Cash invested in money market accounts $ 1,429,331 $ — $ 1,429,331 $ — Total assets at fair value $ 1,429,331 $ — $ 1,429,331 $ — The Company did not have any financial liabilities valued at fair value on a recurring basis as of June 30, 2021 or December 31, 2020. Level 1 The Company does not have any financial assets or liabilities classified as Level 1. Level 2 The Company’s financial assets consist of restricted cash and cash equivalents invested in money market funds in the amount of $ 1,866,831 1,429,331 Level 3 The Company does not have any financial assets or liabilities classified as Level 3. |
Product Warranty Provisions
Product Warranty Provisions | 6 Months Ended |
Jun. 30, 2021 | |
Guarantees and Product Warranties [Abstract] | |
Product Warranty Provisions | 11. Product Warranty Provisions The Company’s standard policy is to warrant all capital systems against defects in material or workmanship for one Accrued warranty, which is included in other accrued liabilities, consists of the following: Schedule of Accrued Warranty June 30, 2021 December 31, 2020 Warranty accrual, beginning of the fiscal period $ 157,615 $ 141,697 Accrual adjustment for product warranty 139,831 49,974 Payments made (75,240 ) (34,056 ) Warranty accrual, end of the fiscal period $ 222,206 $ 157,615 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies The Company at times becomes a party to claims in the ordinary course of business. Management believes that the ultimate resolution of pending or threatened proceedings will not have a material effect on the financial position, results of operations or liquidity of the Company. In February 2021, the Company entered into letters of credit to support commitments totaling approximately $ 1.3 The letters of credit are valid through 2022. 1.8 0.4 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. Subsequent Events None. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited financial statements of Stereotaxis, Inc. have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the instructions to Form 10-Q. Accordingly, they do not include all the disclosures required by GAAP for complete financial statements. In the opinion of management, they include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods presented. Operating results for the six-month period ended June 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021 or for future operating periods. These interim financial statements and the related notes should be read in conjunction with the annual financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, as filed with the Securities and Exchange Commission (SEC) on March 12, 2021. |
Risks and Uncertainties | Risks and Uncertainties The novel coronavirus COVID-19 (“COVID-19”) pandemic has resulted, and is likely to continue to result, in periodic and unexpected disruptions to the economy, as well as business and capital markets around the world. The full extent of the impact of the ongoing COVID-19 pandemic on our business, results of operations and financial condition will depend on numerous evolving factors that we may not be able to accurately predict. As a result of the COVID-19 outbreak, we have experienced business disruptions, including travel restrictions on us and our third-party distributors, which have negatively affected our complex sales, marketing, installation, distribution and service network relating to our products and services. The COVID-19 pandemic may continue to negatively affect demand for both our systems and our disposable products by limiting the ability of our sales personnel to maintain their customary contacts with customers as governmental authorities institute new or continuing quarantines, travel restrictions, and shelter-in-place orders, or as our customers impose limitations on contacts and in-person meetings that go beyond those imposed by governmental authorities. In addition, many of our hospital customers, for whom the purchase of our system involves a significant capital purchase which may be part of a larger construction project at the customer site (typically the construction of a new building), may themselves be under economic pressures. This may cause delays or cancellations of current purchase orders and other commitments and may exacerbate the long and variable sales and installation cycles for our robotic magnetic navigation systems. We may also experience significant reductions in demand for our disposable products as our healthcare customers (physicians and hospitals) continue to re-prioritize the treatment of patients and divert resources away from non-coronavirus areas, which we anticipate will lead to the performance of fewer procedures in which our disposable products are used. In addition, patients may consider foregoing or deferring procedures utilizing our products, even if physicians and hospitals are willing to perform them, which could also reduce demand for, and sales of, our disposable products. As of the date of the filing of this Quarterly Report on Form 10-Q, we believe our manufacturing operations and supply chains have been manageably interrupted, but we cannot guarantee that they will not be interrupted more severely in the future. If our manufacturing operations or supply chains are materially interrupted, it may not be possible for us to timely manufacture relevant products at required levels, or at all. A material reduction or interruption to any of our manufacturing processes would have a material adverse effect on our business, operating results, and financial condition. If governmental authorities around the world continue to institute prolonged mandatory closures, social distancing protocols and shelter-in-place orders, or as private parties on whom we rely to operate our business put in place their own protocols that go beyond those instituted by relevant governmental authorities, our ability to adequately staff and maintain our operations or further our product development could be negatively impacted. Any disruption to the capital markets could negatively impact our ability to raise capital. If the capital markets are disrupted for an extended period of time and we need to raise additional capital, such capital may not be available on acceptable terms, or at all. Continued disruptions to the capital markets and other financing sources could also negatively impact our hospital customers’ ability to raise capital or otherwise obtain financing to fund their operations and capital projects. Such could result in delayed spending on current projects, a longer sales cycle for new projects where a large capital commitment is required, and decreased demand for our disposable products as well as an increased risk of customer defaults or delays in payments for our systems, installation, service contracts and disposable products. We continue to evaluate and, where appropriate, take actions to reduce costs and spending across our organization. We will continue to actively monitor the situation and may take further actions that alter our business operations that may be required by federal, state, or local governmental authorities or that may be implemented by our vendors, suppliers or customers, or that we determine are in the best interests of our employees, customers, suppliers and stockholders. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all short-term investments purchased with original maturities of three months or less to be cash equivalents. The Company places its cash with high-credit-quality financial institutions and invests primarily in money market accounts. |
Restricted Cash | Restricted Cash Restricted cash primarily consists of cash that the Company is obligated to maintain in accordance with contractual obligations. The Company’s restricted cash was $ 1.9 No |
Compensating Cash Arrangement | Compensating Cash Arrangement In July 2020, the Company entered into a letter of credit to support a commitment of less than $ 0.3 0.3 |
Financial Instruments | Financial Instruments Financial instruments consist of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and debt. The carrying value of such amounts reported at the applicable balance sheet dates approximates fair value. The Company measures certain financial assets and liabilities at fair value on a recurring basis. General accounting principles for fair value measurement established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (“Level 1”) and the lowest priority to unobservable inputs (“Level 3”). The Company’s financial assets consist of restricted cash and cash equivalents invested in money market funds which totaled $ 1.9 1.4 |
Revenue and Costs of Revenue | Revenue and Costs of Revenue The Company accounts for revenue in accordance with Accounting Standards Codification Topic 606 (“ASC 606”), “Revenue from Contracts with Customers”. We generate revenue from initial capital sales of systems as well as recurring revenue from the sale of our proprietary disposable devices, from royalties paid to the Company on the sale by Biosense Webster of co-developed catheters, and from ongoing software enhancements and service contracts. We account for a contract with a customer when there is a legally enforceable contract between the Company and the customer, the rights of the parties are identified, the contract has commercial substance, and collectability of the contract consideration is probable. We record our revenue based on consideration specified in the contract with each customer, net of any taxes collected from customers that are remitted to government authorities. For contracts containing multiple products and services, the Company accounts for individual products and services as separate performance obligations if they are distinct, which is if a product or service is separately identifiable from other items in the bundled package, and if a customer can benefit from it on its own or with other resources that are readily available to the customer. The Company recognizes revenues as the performance obligations are satisfied by transferring control of the product or service to a customer. For arrangements with multiple performance obligations, revenue is allocated to each performance obligation based on its relative standalone selling price. Standalone selling prices are based on observable prices at which the Company separately sells the products or services. If a standalone selling price is not directly observable, then the Company estimates the standalone selling price considering market conditions and entity-specific factors including, but not limited to, features and functionality of the products and services and market conditions. The Company regularly reviews standalone selling prices and updates these estimates if necessary. Our revenue recognition policy affects the following revenue streams in our business as follows: Systems: Contracts related to the sale of systems typically contain separate obligations for the delivery of system(s), installation and an implied obligation to provide software enhancements if and when available for one year following installation. Revenue is recognized when the Company transfers control to the customer, which is generally at the point when acceptance occurs that indicates customer acknowledgment of delivery or installation, depending on the terms of the arrangement. Revenue from the implied obligation to deliver software enhancements if and when available is recognized ratably over the first year following installation of the system as the customer receives the right to software enhancements throughout the period and is included in Other Recurring Revenue. The Company’s system contracts do not provide a right of return. Systems are generally covered by a one-year assurance type warranty; warranty costs were $ 0.1 0.1 30 1 Disposables: Revenue from sales of disposable products is recognized when control is transferred to the customers, which generally occurs at the time of shipment, but can also occur at the time of delivery depending on the customer arrangement. Disposable products are covered by an assurance type warranty that provides for the return of defective products. Warranty costs were not material for the six months ended June 30, 2021 and 2020. Disposable revenue represented 25% 3 Royalty: The Company is entitled to royalty payments from Biosense Webster, payable quarterly based on net revenues from sales of the co-developed catheters. Royalty revenue from the co-developed catheters represented 7 9 Other Recurring Revenue: Other recurring revenue includes revenue from product maintenance plans, other post warranty maintenance, and the implied obligation to provide software enhancements if and when available for a specified period, typically one year following installation of our systems. Revenue from services and software enhancements is deferred and amortized over the service or update period, which is typically one year. Revenue related to services performed on a time-and-materials basis is recognized when performed. Other recurring revenue represented 35 % and 56 % of revenue for the six months ended June 30, 2021 and 2020, respectively. Sublease Revenue: A portion of our principal executive office is subleased to a third party through 2021. In accordance with Accounting Standards Update (ASU) 2016-02, “Leases” (Topic 842), the Company records sublease income as revenue. Sublease revenue represented 3 4% Schedule of Revenue Disaggregated by Type Three Months Ended June 30 Six Months Ended June 30, 2021 2020 2021 2020 Systems $ 2,686,180 $ 12,769 $ 5,288,692 $ 12,769 Disposables, service and accessories 6,118,712 5,086,156 11,892,228 10,595,867 Sublease 246,530 246,530 493,060 493,060 Total revenue $ 9,051,422 $ 5,345,455 $ 17,673,980 $ 11,101,696 Transaction price allocated to remaining performance obligations relates to amounts allocated to products and services for which the revenue has not yet been recognized. A significant portion of this amount relates to the Company’s systems contracts and obligations that will be recognized as revenue in future periods. These obligations are generally satisfied within two years after contract inception but may occasionally extend longer. Transaction price representing revenue to be earned on remaining performance obligations on system contracts was approximately $ 8.7 The following information summarizes the Company’s contract assets and liabilities: Summary of Contract Assets and Liabilities June 30, 2021 December 31, 2020 Contract Assets - unbilled receivables $ 180,751 $ 284,415 Customer deposits $ 2,132,598 $ - Product shipped, revenue deferred 2,173,300 645,200 Deferred service and license fees 5,627,494 5,186,485 Total deferred revenue $ 9,933,392 $ 5,831,685 Less: Long-term deferred revenue (1,648,792 ) (548,915 ) Total current deferred revenue $ 8,284,600 $ 5,282,770 The Company invoices its customers based on the billing schedules in its sales arrangements. Contract assets primarily represent the difference between the revenue that was earned but not billed on service contracts and revenue from system contracts that was recognized based on the relative selling price of the related performance obligations and the contractual billing terms in the arrangements. Customer deposits primarily relate to future system sales but can also include deposits on disposable sales. Deferred revenue is primarily related to service contracts, for which the service fees are billed up-front, generally quarterly or annually, and for amounts billed in advance for system contracts for which some performance obligations remain outstanding. For service contracts, the associated deferred revenue is generally recognized ratably over the service period. For system contracts, the associated deferred revenue is recognized when the remaining performance obligations are satisfied. The Company did not have any impairment losses on its contract assets for the periods presented. Revenue recognized for the six months ended June 30, 2021 and 2020, that was included in the deferred revenue balance at the beginning of each reporting period remained consistent at $ 4.0 |
Assets Recognized from the Costs to Obtain a Contract with a Customer | Assets Recognized from the Costs to Obtain a Contract with a Customer The Company has determined that sales incentive programs for the Company’s sales team meet the requirements to be capitalized as the Company expects to generate future economic benefits from the related revenue generating contracts after the initial capital sales transaction. The costs capitalized as contract acquisition costs included in prepaid expenses and other assets, in the Company’s balance sheet was $ 0.2 0.3 Costs of systems revenue include direct product costs, installation labor and other costs, estimated warranty costs, and initial training and product maintenance costs. These costs are recognized at the time of sale. Costs of disposable revenue include direct product costs and estimated warranty costs and are recognized at the time of sale. Cost of revenue from services and license fees are recognized when incurred. |
Share-Based Compensation | Share-Based Compensation The Company accounts for its grants of stock options, stock appreciation rights, restricted shares, and restricted stock units and for its employee stock purchase plan in accordance with the provisions of general accounting principles for share-based payments. These accounting principles require the determination of the fair value of the share-based compensation at the grant date and the recognition of the related expense over the period in which the share-based compensation vests. For time-based awards, the Company utilizes the Black-Scholes valuation model to determine the fair value of stock options and stock appreciation rights at the date of grant. The resulting compensation expense is recognized over the requisite service period, which is generally four years. Restricted shares and units granted to employees are valued at the fair market value at the date of grant. The Company amortizes the fair market value to expense over the service period. If the shares are subject to performance objectives, the resulting compensation expense is amortized over the anticipated vesting period and is subject to adjustment based on the actual achievement of objectives. For market-based awards, stock-based compensation expense is recognized over the minimum service period regardless of whether or not the market target is probable of being achieved. The fair value of such awards is estimated on the grant date using Monte Carlo simulations. Shares purchased by employees under the 2009 Employee Stock Purchase Plan are considered to be non-compensatory. |
Net Earnings (Loss) per Common Share | Net Earnings (Loss) per Common Share Basic earnings (loss) per common share is computed by dividing the net earnings (loss) for the period by the weighted average number of common shares outstanding during the period. In periods where there is net income, we apply the two-class method to calculate basic and diluted net income (loss) per share of common stock, as our convertible preferred stock is a participating security. The two-class method is an earnings allocation formula that treats a participating security as having rights to earnings that otherwise would have been available to common stockholders. In periods where there is a net loss, the two-class method of computing earnings per share does not apply as our convertible preferred stock does not contractually participate in our losses. We compute diluted net income (loss) per common share using net income (loss) as the “control number” in determining whether potential common shares are dilutive, after giving consideration to all potentially dilutive common shares, including stock options, warrants, unvested restricted stock units outstanding during the period and potential issuance of stock upon the conversion of our convertible preferred stock issued and outstanding during the period, except where the effect of such securities would be antidilutive. The following table sets forth the computation of basic and diluted EPS: Schedule of Computation of Basic and Diluted Earnings Per Share 2021 2020 2021 2020 Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net loss $ (1,210,398 ) $ (1,921,106 ) $ (2,742,795 ) $ (3,892,637 ) Cumulative dividend on Series A Convertible Preferred Stock (335,197 ) (342,126 ) (667,748 ) (685,849 ) Net loss attributable to common stockholders $ (1,545,595 ) $ (2,263,232 ) $ (3,410,543 ) $ (4,578,486 ) Weighted average number of common shares and equivalents: 75,547,574 71,628,762 75,362,521 70,749,401 Basic EPS $ (0.02 ) $ (0.03 ) $ (0.05 ) $ (0.06 ) Diluted EPS $ (0.02 ) $ (0.03 ) $ (0.05 ) $ (0.06 ) The Company did not include any portion of unearned restricted shares, outstanding options, stock appreciation rights, warrants or convertible preferred stock in the calculation of diluted loss per common share because all such securities are anti-dilutive for all periods presented. The application of the two-class method of computing earnings per share under general accounting principles for participating securities is not applicable during these periods because those securities do not contractually participate in its losses. As of June 30, 2021, the Company had 2,845,041 3.93 15,385 0.70 44,303,996 5,610,121 1,044,973 |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In December 2019, the FASB issued Accounting Standards Update (ASU) 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” as part of its effort to reduce the complexity of accounting standards. The ASU is effective for fiscal years beginning after December 15, 2020. The Company adopted with no impact to the Company’s financial statements. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments” and also issued subsequent amendments to the initial guidance under ASU 2018-19, ASU 2019-04 and ASU 2019-05. The standard modifies the measurement approach for credit losses on financial instruments, including trade receivables, from an incurred loss method to a current expected credit loss method, otherwise known as “CECL.” The standard requires the measurement of expected credit losses to be based on relevant information, including historical experience, current conditions and a forecast that is supportable. The standard is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years; early adoption is permitted. The standard must be adopted by applying a cumulative adjustment to retained earnings. The Company anticipates adopting the standard in the first quarter of 2023, although it does not expect a significant impact to the Company’s financial results. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Revenue Disaggregated by Type | Schedule of Revenue Disaggregated by Type Three Months Ended June 30 Six Months Ended June 30, 2021 2020 2021 2020 Systems $ 2,686,180 $ 12,769 $ 5,288,692 $ 12,769 Disposables, service and accessories 6,118,712 5,086,156 11,892,228 10,595,867 Sublease 246,530 246,530 493,060 493,060 Total revenue $ 9,051,422 $ 5,345,455 $ 17,673,980 $ 11,101,696 |
Summary of Contract Assets and Liabilities | The following information summarizes the Company’s contract assets and liabilities: Summary of Contract Assets and Liabilities June 30, 2021 December 31, 2020 Contract Assets - unbilled receivables $ 180,751 $ 284,415 Customer deposits $ 2,132,598 $ - Product shipped, revenue deferred 2,173,300 645,200 Deferred service and license fees 5,627,494 5,186,485 Total deferred revenue $ 9,933,392 $ 5,831,685 Less: Long-term deferred revenue (1,648,792 ) (548,915 ) Total current deferred revenue $ 8,284,600 $ 5,282,770 |
Schedule of Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted EPS: Schedule of Computation of Basic and Diluted Earnings Per Share 2021 2020 2021 2020 Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net loss $ (1,210,398 ) $ (1,921,106 ) $ (2,742,795 ) $ (3,892,637 ) Cumulative dividend on Series A Convertible Preferred Stock (335,197 ) (342,126 ) (667,748 ) (685,849 ) Net loss attributable to common stockholders $ (1,545,595 ) $ (2,263,232 ) $ (3,410,543 ) $ (4,578,486 ) Weighted average number of common shares and equivalents: 75,547,574 71,628,762 75,362,521 70,749,401 Basic EPS $ (0.02 ) $ (0.03 ) $ (0.05 ) $ (0.06 ) Diluted EPS $ (0.02 ) $ (0.03 ) $ (0.05 ) $ (0.06 ) |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following: Schedule of Inventories June 30, 2021 December 31, 2020 Raw materials $ 3,284,691 $ 2,950,912 Work in process 919,214 433,026 Finished goods 2,397,991 2,987,039 Reserve for excess and obsolescence (2,455,205 ) (3,075,520 ) Total inventory $ 4,146,691 $ 3,295,457 |
Prepaid Expenses and Other As_2
Prepaid Expenses and Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Assets | Prepaid expenses and other assets consist of the following: Schedule of Prepaid Expenses and Other Assets June 30, 2021 December 31, 2020 Prepaid expenses $ 1,165,885 $ 754,062 Prepaid commissions 235,745 271,174 Deposits 1,411,544 855,970 Other assets 116,725 143,323 Total prepaid expenses and other assets 2,929,899 2,024,529 Less: Noncurrent prepaid expenses and other assets (283,093 ) (308,515 ) Total current prepaid expenses and other assets $ 2,646,806 $ 1,716,014 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and Equipment consist of the following: Schedule of Property and Equipment June 30, 2021 December 31, 2020 Equipment $ 4,940,877 $ 6,488,984 Leasehold improvements 2,299,550 2,338,441 Construction in process 149,721 - 7,390,148 8,827,425 Less: Accumulated depreciation (7,098,570 ) (8,632,296 ) Net property and equipment $ 291,578 $ 195,129 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Schedule of Lease Costs and Other Lease Information | The following table represents lease costs and other lease information. Schedule of Lease Costs and Other Lease Information 2021 2020 2021 2020 Three Months Ended June 30 Six Months Ended June 30 2021 2020 2021 2020 Operating lease cost $ 582,712 $ 585,584 $ 1,165,424 $ 1,171,170 Short-term lease cost 14,042 19,304 30,704 34,774 Sublease income (246,530 ) (246,530 ) (493,060 ) (493,060 ) Total net lease cost $ 350,224 $ 358,358 $ 703,068 $ 712,884 Cash paid within operating cash flows $ 539,204 $ 588,897 $ 1,170,290 $ 1,225,247 |
Schedule of Future Minimum Operating Lease Payments | Future minimum payments for operating leases with initial or remaining terms of one year or more as of June 30, 2021, excluding sublease income, were as follows: Schedule of Future Minimum Operating Lease Payments June 30, 2021 2021 Total lease payments $ 1,191,330 Less: Interest (21,952 ) Present value of lease liabilities $ 1,169,378 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following: Schedule of Accrued Liabilities June 30, 2021 December 31, 2020 Accrued salaries, bonus, and benefits $ 1,424,592 $ 2,044,826 Accrued licenses and maintenance fees 483,879 483,879 Accrued warranties 222,206 157,615 Accrued taxes 167,979 172,744 Accrued professional services 453,348 138,359 Other 312,071 343,043 Total accrued liabilities 3,064,075 3,340,466 Less: Long term accrued liabilities (206,596 ) (131,231 ) Total current accrued liabilities $ 2,857,479 $ 3,209,235 |
Convertible Preferred Stock a_2
Convertible Preferred Stock and Stockholders’ Equity (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Summary of Performance Award And Market Capitalization Milestones | Summary of Performance Award And Market Capitalization Milestones Tranche # No. of Shares Subject to PSU Market Capitalization (1) 1 1,000,000 $ 1,000,000,000 2 1,500,000 $ 1,500,000,000 3 1,500,000 $ 2,000,000,000 4 2,000,000 $ 2,500,000,000 5 1,000,000 $ 3,000,000,000 6 1,000,000 $ 3,500,000,000 7 1,000,000 $ 4,000,000,000 8 2,000,000 $ 4,500,000,000 9 1,000,000 $ 5,000,000,000 10 1,000,000 $ 5,500,000,000 Total: 13,000,000 |
Summary of Option and Stock Appreciation Rights Activity | A summary of the option and stock appreciation rights activity for the six-month period ended June 30, 2021 is as follows: Summary of Option and Stock Appreciation Rights Activity Number of Options/SARs Range of Exercise Price Weighted Average Exercise Price per Share Outstanding, December 31, 2020 2,456,979 $ 0.74 35.20 $ 2.90 Granted 829,000 $ 6.96 7.91 $ 6.97 Exercised (270,458 ) $ 0.74 4.52 $ 1.97 Forfeited (170,480 ) $ 0.74 35.20 $ 6.88 Outstanding, June 30, 2021 2,845,041 $ 0.74 7.91 $ 3.93 |
Summary of Restricted Stock Unit Activity | A summary of the restricted stock unit activity for the six-month period ended June 30, 2021 is as follows: Summary of Restricted Stock Unit Activity Number of Restricted Stock Units Weighted Average Grant Date Fair Value per Unit Outstanding, December 31, 2020 1,112,473 $ 2.46 Granted 205,000 $ 5.16 Vested (272,500 ) $ 2.88 Forfeited - - Outstanding, June 30, 2021 1,044,973 $ 2.88 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value on a Recurring Basis by Level Within Fair Value Hierarchy | Schedule of Assets Measured at Fair Value on a Recurring Basis by Level Within Fair Value Hierarchy Fair Value Measurement Using Total Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets at June 30, 2021: Cash invested in money market accounts $ 1,866,831 $ — $ 1,866,831 $ — Total assets at fair value $ 1,866,831 $ — $ 1,866,831 $ — Assets at December 31, 2020: Cash invested in money market accounts $ 1,429,331 $ — $ 1,429,331 $ — Total assets at fair value $ 1,429,331 $ — $ 1,429,331 $ — |
Product Warranty Provisions (Ta
Product Warranty Provisions (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Guarantees and Product Warranties [Abstract] | |
Schedule of Accrued Warranty | Accrued warranty, which is included in other accrued liabilities, consists of the following: Schedule of Accrued Warranty June 30, 2021 December 31, 2020 Warranty accrual, beginning of the fiscal period $ 157,615 $ 141,697 Accrual adjustment for product warranty 139,831 49,974 Payments made (75,240 ) (34,056 ) Warranty accrual, end of the fiscal period $ 222,206 $ 157,615 |
Schedule of Revenue Disaggregat
Schedule of Revenue Disaggregated by Type (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Product Information [Line Items] | ||||
Total revenue | $ 9,051,422 | $ 5,345,455 | $ 17,673,980 | $ 11,101,696 |
Sub lease | 246,530 | 246,530 | 493,060 | 493,060 |
Systems [Member] | ||||
Product Information [Line Items] | ||||
Total revenue | 2,686,180 | 12,769 | 5,288,692 | 12,769 |
Dispsables service and accesories [Member] | ||||
Product Information [Line Items] | ||||
Total revenue | $ 6,118,712 | $ 5,086,156 | $ 11,892,228 | $ 10,595,867 |
Summary of Contract Assets and
Summary of Contract Assets and Liabilities (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Product Information [Line Items] | ||
Contract Assets - unbilled receivables | $ 180,751 | $ 284,415 |
Total deferred revenue | 9,933,392 | 5,831,685 |
Less: Long-term deferred revenue | (1,648,792) | (548,915) |
Total current deferred revenue | 8,284,600 | 5,282,770 |
Customer Deposits [Member] | ||
Product Information [Line Items] | ||
Total deferred revenue | 2,132,598 | |
Product Shipped, Revenue Deferred [Member] | ||
Product Information [Line Items] | ||
Total deferred revenue | 2,173,300 | 645,200 |
Deferred Service and License Fees [Member] | ||
Product Information [Line Items] | ||
Total deferred revenue | $ 5,627,494 | $ 5,186,485 |
Schedule of Computation of Basi
Schedule of Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Accounting Policies [Abstract] | ||||
Net loss | $ (1,210,398) | $ (1,921,106) | $ (2,742,795) | $ (3,892,637) |
Cumulative dividend on Series A Convertible Preferred Stock | (335,197) | (342,126) | (667,748) | (685,849) |
Net loss attributable to common stockholders | $ (1,545,595) | $ (2,263,232) | $ (3,410,543) | $ (4,578,486) |
Weighted average number of common shares and equivalents: | 75,547,574 | 71,628,762 | 75,362,521 | 70,749,401 |
Basic EPS | $ (0.02) | $ (0.03) | $ (0.05) | $ (0.06) |
Diluted EPS | $ (0.02) | $ (0.03) | $ (0.05) | $ (0.06) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Feb. 28, 2021 | Dec. 31, 2020 | Jul. 31, 2020 | |
Product Information [Line Items] | |||||
Restricted cash | $ 1,900,000 | $ 0 | |||
Compensating balance, amount | 251,232 | 250,620 | |||
Money market funds | 1,900,000 | 1,400,000 | |||
Remaining performance obligation | 8,700,000 | ||||
Contract with customer, liability, revenue recognized | 4,000,000 | $ 4,000,000 | |||
capitalized contract cost, net | $ 200,000 | $ 300,000 | |||
Weighted average exercise price | $ 3.93 | $ 2.90 | |||
Exercise price of warrants | $ 0.70 | ||||
Series A Convertible Preferred Stock [Member] | |||||
Product Information [Line Items] | |||||
Potential common shares excluded from diluted earnings per share | 44,303,996 | ||||
Series B Convertible Preferred Stock [Member] | |||||
Product Information [Line Items] | |||||
Potential common shares excluded from diluted earnings per share | 5,610,121 | ||||
Warrant [Member] | |||||
Product Information [Line Items] | |||||
Potential common shares excluded from diluted earnings per share | 15,385 | ||||
Exercise price of warrants | $ 0.70 | ||||
Stock Options and Stock Appreciation Rights [Member] | |||||
Product Information [Line Items] | |||||
Potential common shares excluded from diluted earnings per share | 2,845,041 | ||||
Weighted average exercise price | $ 3.93 | ||||
Restricted Stock [Member] | |||||
Product Information [Line Items] | |||||
Number of unvested restricted share units | 1,044,973 | ||||
Revenue From System Delivery and Installation [Member] | |||||
Product Information [Line Items] | |||||
Concentration risk percentage | 30.00% | 1.00% | |||
Disposable Revenue [Member] | |||||
Product Information [Line Items] | |||||
Concentration risk percentage | 25.00% | 3.00% | |||
Royalty Revenue [Member] | |||||
Product Information [Line Items] | |||||
Concentration risk percentage | 7.00% | 9.00% | |||
Other Recurring Revenue [Member] | |||||
Product Information [Line Items] | |||||
Concentration risk percentage | 35.00% | 56.00% | |||
Sublease Revenue [Member]. | |||||
Product Information [Line Items] | |||||
Concentration risk percentage | 3.00% | 4.00% | |||
Systems [Member] | |||||
Product Information [Line Items] | |||||
Product Warranty Expense | $ 100,000 | ||||
Maximum [Member] | Systems [Member] | |||||
Product Information [Line Items] | |||||
Product Warranty Expense | $ 100,000 | ||||
Letter of Credit [Member] | |||||
Product Information [Line Items] | |||||
Long-term line of credit | $ 1,300,000 | ||||
Compensating balance, amount | $ 300,000 | ||||
Letter of Credit [Member] | Maximum [Member] | |||||
Product Information [Line Items] | |||||
Long-term line of credit | $ 300,000 |
Schedule of Inventories (Detail
Schedule of Inventories (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 3,284,691 | $ 2,950,912 |
Work in process | 919,214 | 433,026 |
Finished goods | 2,397,991 | 2,987,039 |
Reserve for excess and obsolescence | (2,455,205) | (3,075,520) |
Total inventory | $ 4,146,691 | $ 3,295,457 |
Schedule of Prepaid Expenses an
Schedule of Prepaid Expenses and Other Assets (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 1,165,885 | $ 754,062 |
Prepaid commissions | 235,745 | 271,174 |
Deposits | 1,411,544 | 855,970 |
Other assets | 116,725 | 143,323 |
Total prepaid expenses and other assets | 2,929,899 | 2,024,529 |
Less: Noncurrent prepaid expenses and other assets | (283,093) | (308,515) |
Total current prepaid expenses and other assets | $ 2,646,806 | $ 1,716,014 |
Schedule of Property and Equipm
Schedule of Property and Equipment (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 7,390,148 | $ 8,827,425 |
Less: Accumulated depreciation | (7,098,570) | (8,632,296) |
Net property and equipment | 291,578 | 195,129 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 4,940,877 | 6,488,984 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 2,299,550 | 2,338,441 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 149,721 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 1.6 | $ 1.6 |
Schedule of Lease Costs and Oth
Schedule of Lease Costs and Other Lease Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||||
Operating lease cost | $ 582,712 | $ 585,584 | $ 1,165,424 | $ 1,171,170 |
Short-term lease cost | 14,042 | 19,304 | 30,704 | 34,774 |
Sublease income | (246,530) | (246,530) | (493,060) | (493,060) |
Total net lease cost | 350,224 | 358,358 | 703,068 | 712,884 |
Cash paid within operating cash flows | $ 539,204 | $ 588,897 | $ 1,170,290 | $ 1,225,247 |
Schedule of Future Minimum Oper
Schedule of Future Minimum Operating Lease Payments (Details) | Jun. 30, 2021USD ($) |
Leases [Abstract] | |
Total lease payments | $ 1,191,330 |
Less: Interest | (21,952) |
Present value of lease liabilities | $ 1,169,378 |
Leases (Details Narrative)
Leases (Details Narrative) | Mar. 01, 2021USD ($)ft² | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) |
Lessee, Lease, Description [Line Items] | |||||
Weighted average discount rate for operating leases | 9.00% | 9.00% | |||
Weighted average remaining lease term for operating lease term | 6 months | 6 months | |||
Undiscounted future cash flows to be received under the sublease | $ 500,000 | $ 500,000 | |||
Annual rent under the terms, lease | $ 582,712 | $ 585,584 | $ 1,165,424 | $ 1,171,170 | |
Office Lease Agreement [Member] | Globe Building Company [Member] | Office Space and Manufacturing Facilities [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Area of Land | ft² | 43,100 | ||||
Lease effective date | Jan. 1, 2022 | ||||
Operating lease, term of contract | 10 years | ||||
Operating lease, option to extend | two renewal options of | ||||
Operating lease, renewal term | 5 years | ||||
Office Lease Agreement [Member] | Globe Building Company [Member] | Office Space and Manufacturing Facilities [Member] | Minimum Annual Rent in 2022 [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Annual rent under the terms, lease | $ 800,000 | ||||
Office Lease Agreement [Member] | Globe Building Company [Member] | Office Space and Manufacturing Facilities [Member] | Minimum Annual Rent in 2031 [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Annual rent under the terms, lease | $ 1,000,000 |
Schedule of Accrued Liabilities
Schedule of Accrued Liabilities (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Accrued salaries, bonus, and benefits | $ 1,424,592 | $ 2,044,826 |
Accrued licenses and maintenance fees | 483,879 | 483,879 |
Accrued warranties | 222,206 | 157,615 |
Accrued taxes | 167,979 | 172,744 |
Accrued professional services | 453,348 | 138,359 |
Other | 312,071 | 343,043 |
Total accrued liabilities | 3,064,075 | 3,340,466 |
Less: Long term accrued liabilities | (206,596) | (131,231) |
Total current accrued liabilities | $ 2,857,479 | $ 3,209,235 |
Debt and Credit Facilities (Det
Debt and Credit Facilities (Details Narrative) - USD ($) | Apr. 20, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Line of Credit Facility [Line Items] | |||||
Proceeds from Bank Debt | $ 2,158,310 | ||||
Gain (Loss) on Extinguishment of Debt | $ 2,182,891 | $ 2,182,891 | |||
Paycheck Protection Program [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Proceeds from Bank Debt | $ 2,200,000 | ||||
Gain (Loss) on Extinguishment of Debt | $ 2,200,000 | ||||
Revolving Credit Facility [Member] | Primary Lender [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, expiration date | Jun. 30, 2020 |
Summary of Performance Award An
Summary of Performance Award And Market Capitalization Milestones (Details) - PSU Agreement [Member] - Mr. Fischel [Member] | Feb. 23, 2021USD ($)shares |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
No. of Shares Subject to PSU | shares | 13,000,000 |
Market Capitalization Milestones | $ | $ 1,000,000,000 |
Share-based Payment Arrangement, Tranche One [Member] | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
No. of Shares Subject to PSU | shares | 1,000,000 |
Market Capitalization Milestones | $ | $ 1,000,000,000 |
Share-based Payment Arrangement, Tranche Two [Member] | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
No. of Shares Subject to PSU | shares | 1,500,000 |
Market Capitalization Milestones | $ | $ 1,500,000,000 |
Share-based Payment Arrangement, Tranche Three [Member] | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
No. of Shares Subject to PSU | shares | 1,500,000 |
Market Capitalization Milestones | $ | $ 2,000,000,000 |
ShareBased Compensation Award Tranche Four [Member] | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
No. of Shares Subject to PSU | shares | 2,000,000 |
Market Capitalization Milestones | $ | $ 2,500,000,000 |
ShareBased Compensation Award Tranche [FiveMember] | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
No. of Shares Subject to PSU | shares | 1,000,000 |
Market Capitalization Milestones | $ | $ 3,000,000,000 |
ShareBased Compensation Award Tranche Six [Member] | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
No. of Shares Subject to PSU | shares | 1,000,000 |
Market Capitalization Milestones | $ | $ 3,500,000,000 |
ShareBased Compensation Award Tranche Seven [Member] | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
No. of Shares Subject to PSU | shares | 1,000,000 |
Market Capitalization Milestones | $ | $ 4,000,000,000 |
ShareBased Compensation Award Tranche Eight [Member] | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
No. of Shares Subject to PSU | shares | 2,000,000 |
Market Capitalization Milestones | $ | $ 4,500,000,000 |
ShareBased Compensation Award Tranche Nine [Member] | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
No. of Shares Subject to PSU | shares | 1,000,000 |
Market Capitalization Milestones | $ | $ 5,000,000,000 |
Share Based Compensation Award Tranche Ten [Member] | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
No. of Shares Subject to PSU | shares | 1,000,000 |
Market Capitalization Milestones | $ | $ 5,500,000,000 |
Summary of Option and Stock App
Summary of Option and Stock Appreciation Rights Activity (Details) | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Line Items] | |
Number of Options/SARs, Outstanding, Beginning Balance | shares | 2,456,979 |
Weighted Average Exercise Price per Share, Outstanding, Beginning Balance | $ 2.90 |
Number of Options/SARs, Granted | shares | 829,000 |
Weighted Average Exercise Price per Share, Granted | $ 6.97 |
Number of Options/SARs, Exercised | shares | (270,458) |
Weighted Average Exercise Price per Share, Exercised | $ 1.97 |
Number of Options/SARs, Forfeited | shares | (170,480) |
Weighted Average Exercise Price per Share, Forfeited | $ 6.88 |
Number of Options/SARs, Outstanding, Ending Balance | shares | 2,845,041 |
Weighted Average Exercise Price per Share, Outstanding, Ending Balance | $ 3.93 |
Minimum [Member] | |
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Line Items] | |
Range of Exercise Price, Beginning Balance | 0.74 |
Range of Exercise Price, Granted | 6.96 |
Range of Exercise Price, Exercised | 0.74 |
Range of Exercise Price, Forfeited | 0.74 |
Range of Exercise Price, Ending Balance | 0.74 |
Maximum [Member] | |
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Line Items] | |
Range of Exercise Price, Beginning Balance | 35.20 |
Range of Exercise Price, Granted | 7.91 |
Range of Exercise Price, Exercised | 4.52 |
Range of Exercise Price, Forfeited | 35.20 |
Range of Exercise Price, Ending Balance | $ 7.91 |
Summary of Restricted Stock Uni
Summary of Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) [Member] | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Restricted Stock Units, Outstanding, Beginning | shares | 1,112,473 |
Weighted Average Grant Date Fair Value Per Unit, Outstanding, Beginning | $ / shares | $ 2.46 |
Number of Restricted Stock Units, Granted | shares | 205,000 |
Weighted Average Grant Date Fair Value Per Unit, Granted | $ / shares | $ 5.16 |
Number of Restricted Stock Units, Vested | shares | (272,500) |
Weighted Average Grant Date Fair Value Per Unit, Vested | $ / shares | $ 2.88 |
Number of Restricted Stock Units, Forfeited | shares | |
Weighted Average Grant Date Fair Value Per Unit, Forfeited | $ / shares | |
Number of Restricted Stock Units, Outstanding, Ending | shares | 1,044,973 |
Weighted Average Grant Date Fair Value Per Unit, Outstanding, Ending | $ / shares | $ 2.88 |
Convertible Preferred Stock a_3
Convertible Preferred Stock and Stockholders’ Equity (Details Narrative) - USD ($) | Feb. 23, 2021 | May 25, 2020 | Aug. 07, 2019 | Sep. 30, 2016 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 |
Subsidiary, Sale of Stock [Line Items] | |||||||
Number of stockholders votes, description | one | ||||||
Dividends declared | $ 0 | ||||||
Common stock, par or stated value per share | $ 0.001 | $ 0.001 | |||||
Convertible preferred stock, par value | 0.001 | $ 0.001 | |||||
Preferred stock redemption, triggering event, percent of common stock sold threshold | 50.00% | ||||||
Exercise price of warrants | $ 0.70 | ||||||
Warrants exercisable date | Sep. 29, 2021 | ||||||
Share-based Payment Arrangement, Noncash Expense | $ 4,156,274 | $ 1,657,721 | |||||
Total compensation cost not yet recognized | $ 5,700,000 | ||||||
Weighted average amortization period of total compensation cost not yet recognized | four years | ||||||
2012 Stock Incentive Plan [Member] | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Stock plan expiration date | Mar. 25, 2012 | ||||||
Stock Award Plans [Member] | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Reserved shares of common stock | 5,144,178 | ||||||
PSU Agreement [Member] | Mr. Fischel [Member] | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Performance award term | 10 years | ||||||
Number of shares granted | 13,000,000 | ||||||
Market capitalization milestone, amount | $ 1,000,000,000 | ||||||
Increase in market capitalization milestone, amount | 500,000,000 | ||||||
Maximum market capitalization milestone, amount | $ 5,500,000 | ||||||
Share-based compensation arrangement by share-based payment award, award vesting rights | Each tranche represents a portion of the PSUs covering the number of shares outlined in the table above. Each tranche vests upon (i) satisfaction of the market capitalization milestones and (ii) continued employment as CEO of the Company from the grant date through December 31, 2030. Absent an earlier termination, the PSUs will expire on December 31, 2030. If our CEO ceases employment as CEO of the Company for any reason including death, disability, termination for cause or without cause (as defined in the award agreement), or if he voluntary terminates after service as CEO for at least five years, the remaining service period will be waived and he will retain any PSUs that have vested through the date of termination. | ||||||
Share-based Payment Arrangement, Noncash Expense | $ 2,500,000 | ||||||
Total compensation cost not yet recognized | $ 54,900,000 | ||||||
PSU Agreement [Member] | Mr. Fischel [Member] | Maximum [Member] | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Number of shares granted | 13,000,000 | ||||||
Series A Convertible Preferred Stock [Member] | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Sale of stock, number of shares sold | 24,000 | ||||||
Convertible preferred stock, par value | $ 1,000 | ||||||
Preferred stock, par value | 0.001 | ||||||
Redemption price per share | $ 0.65 | ||||||
Common stock issuable from warrants | 36,923,078 | ||||||
Preferred stock dividend rate | 6.00% | ||||||
Direct Registered Offering [Member] | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Sale of stock, consideration received on transaction | $ 15,000,000 | ||||||
Direct Registered Offering [Member] | Common Stock [Member] | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Sale of stock, number of shares sold | 3,658,537 | ||||||
Common stock, par or stated value per share | $ 0.001 | ||||||
Sale of stock, price per share | $ 4.10 | ||||||
Private Placement [Member] | Series B Convertible Preferred Stock [Member] | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Sale of stock, number of shares sold | 5,610,121 | ||||||
Convertible preferred stock, par value | $ 0.001 | ||||||
Convertible securities, conversion price per share | $ 2.05 |
Schedule of Assets Measured at
Schedule of Assets Measured at Fair Value on a Recurring Basis by Level Within Fair Value Hierarchy (Details) - Fair Value, Recurring [Member] - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | $ 1,866,831 | $ 1,429,331 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | ||
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 1,866,831 | 1,429,331 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | ||
Cash invested in Money Market Accounts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 1,866,831 | 1,429,331 |
Cash invested in Money Market Accounts [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | ||
Cash invested in Money Market Accounts [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 1,866,831 | 1,429,331 |
Cash invested in Money Market Accounts [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value |
Fair Value Measurements (Detail
Fair Value Measurements (Details Narrative) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Inputs, Level 2 [Member] | Restricted Cash and Cash Invested In Money Market Accounts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of asset | $ 1,866,831 | $ 1,429,331 |
Schedule of Accrued Warranty (D
Schedule of Accrued Warranty (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Guarantees and Product Warranties [Abstract] | ||
Warranty accrual, beginning of the fiscal period | $ 157,615 | $ 141,697 |
Accrual adjustment for product warranty | 139,831 | 49,974 |
Payments made | (75,240) | (34,056) |
Warranty accrual, end of the fiscal period | $ 222,206 | $ 157,615 |
Product Warranty Provisions (De
Product Warranty Provisions (Details Narrative) | 6 Months Ended |
Jun. 30, 2021 | |
Guarantees and Product Warranties [Abstract] | |
Standard product warranty coverage term | P1Y |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - Letter of Credit [Member] - USD ($) $ in Millions | 1 Months Ended | |
Feb. 28, 2021 | Apr. 30, 2021 | |
Obligation with Joint and Several Liability Arrangement [Line Items] | ||
Long-term line of credit | $ 1.3 | |
Line of credit, description | The letters of credit are valid through 2022. | |
First Installment [Member] | ||
Obligation with Joint and Several Liability Arrangement [Line Items] | ||
Long-term line of credit | $ 0.4 | |
Lease Agreements [Member] | ||
Obligation with Joint and Several Liability Arrangement [Line Items] | ||
Long-term line of credit | $ 1.8 |