Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 03, 2020 | |
Document Information Line Items | ||
Entity Registrant Name | OptimizeRx Corp | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 14,816,861 | |
Amendment Flag | false | |
Entity Central Index Key | 0001448431 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity File Number | 001-38543 | |
Entity Incorporation, State or Country Code | NV | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Current Assets | ||
Cash and cash equivalents | $ 14,114,294 | $ 18,852,680 |
Accounts receivable, net | 10,805,191 | 7,418,025 |
Prepaid expenses | 2,701,249 | 871,043 |
Total Current Assets | 27,620,734 | 27,141,748 |
Property and equipment, net | 156,550 | 176,014 |
Other Assets | ||
Goodwill | 14,740,031 | 14,740,031 |
Technology assets, net | 5,722,762 | 6,238,453 |
Patent rights, net | 2,442,409 | 2,550,587 |
Other intangible assets, net | 4,835,327 | 5,151,102 |
Right of use assets, net | 503,506 | 559,863 |
Other assets and deposits | 35,943 | 80,727 |
Total Other Assets | 28,279,978 | 29,320,763 |
TOTAL ASSETS | 56,057,262 | 56,638,525 |
Current Liabilities | ||
Accounts payable – trade | 496,742 | 492,995 |
Accrued expenses | 2,044,335 | 1,800,635 |
Revenue share payable | 3,496,489 | 1,618,438 |
Current portion of lease obligations | 119,512 | 115,431 |
Current portion of contingent purchase price payable | 5,360,812 | 1,500,000 |
Deferred revenue | 648,692 | 580,014 |
Total Current Liabilities | 12,166,582 | 6,107,513 |
Non-current Liabilities | ||
Lease obligations, net of current portion | 387,654 | 448,753 |
Contingent purchase price payable, net of current portion | 5,220,000 | |
Total Non-current Liabilities | 387,654 | 5,668,753 |
Total Liabilities | 12,554,236 | 11,776,266 |
Commitments and contingencies (See Note 6) | ||
Stockholders’ Equity | ||
Preferred stock, $0.001 par value, 10,000,000 shares authorized, no issued and outstanding at June 30, 2020 or December 31, 2019 | ||
Common stock, $0.001 par value, 500,000,000 shares authorized, 14,752,600 and 14,600,579 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively | 14,753 | 14,601 |
Additional paid-in-capital | 80,194,282 | 78,272,268 |
Accumulated deficit | (36,706,009) | (33,424,610) |
Total Stockholders’ Equity | 43,503,026 | 44,862,259 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 56,057,262 | $ 56,638,525 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares outstanding | 14,752,600 | 14,600,579 |
Common stock, shares issued | 14,752,600 | 14,600,579 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement [Abstract] | ||||
NET REVENUE | $ 8,783,230 | $ 7,006,291 | $ 16,367,832 | $ 12,215,725 |
COST OF REVENUES | 3,639,016 | 2,687,143 | 6,880,779 | 4,270,623 |
GROSS MARGIN | 5,144,214 | 4,319,148 | 9,487,053 | 7,945,102 |
OPERATING EXPENSES | 6,200,027 | 3,839,105 | 12,802,118 | 7,332,894 |
INCOME (LOSS) FROM OPERATIONS | (1,055,813) | 480,043 | (3,315,065) | 612,208 |
OTHER INCOME (EXPENSE) | ||||
Interest income | 8,345 | 33,574 | 63,666 | 55,938 |
Change in Fair Value of Contingent Consideration | (30,000) | (107,000) | (30,000) | (255,000) |
TOTAL OTHER INCOME (EXPENSE) | (21,655) | (73,426) | 33,666 | (199,062) |
INCOME(LOSS) BEFORE PROVISION FOR INCOME TAXES | (1,077,468) | 406,617 | (3,281,399) | 413,146 |
PROVISION FOR INCOME TAXES | ||||
NET INCOME (LOSS) | $ (1,077,468) | $ 406,617 | $ (3,281,399) | $ 413,146 |
WEIGHTED AVERGE SHARES OUTSTANDING | ||||
BASIC (in Shares) | 14,667,216 | 12,743,379 | 14,638,359 | 12,412,442 |
DILUTED (in Shares) | 14,667,216 | 13,806,761 | 14,638,359 | 13,467,562 |
EARNINGS (LOSS) PER SHARE | ||||
BASIC (in Dollars per share) | $ (0.07) | $ 0.03 | $ (0.22) | $ 0.03 |
DILUTED (in Dollars per share) | $ (0.07) | $ 0.03 | $ (0.22) | $ 0.03 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) | Common Stock | Additional Paid in Capital | Accumulated Deficit | Total |
Balance at Dec. 31, 2018 | $ 12,039 | $ 48,725,211 | $ (30,278,805) | $ 18,458,445 |
Balance (in Shares) at Dec. 31, 2018 | 12,038,618 | |||
Shares issued as board compensation | $ 8 | 106,026 | 106,034 | |
Shares issued as board compensation (in Shares) | 8,336 | |||
Cumulative effect of change in accounting principle related to lease accounting | (3,229) | (3,229) | ||
Shares issued for restricted stock awards | $ 130 | (130) | ||
Shares issued for restricted stock awards (in Shares) | 130,001 | |||
Shares issued for stock options exercised | $ 102 | 343,683 | 343,785 | |
Shares issued for stock options exercised (in Shares) | 101,878 | |||
Stock-based compensation expense | 530,312 | 530,312 | ||
Net income (loss) | 6,529 | 6,529 | ||
Balance at Mar. 31, 2019 | $ 12,279 | 49,705,102 | (30,275,505) | 19,441,876 |
Balance (in Shares) at Mar. 31, 2019 | 12,278,833 | |||
Balance at Dec. 31, 2018 | $ 12,039 | 48,725,211 | (30,278,805) | 18,458,445 |
Balance (in Shares) at Dec. 31, 2018 | 12,038,618 | |||
Net income (loss) | 413,146 | |||
Balance at Jun. 30, 2019 | $ 14,117 | 71,764,534 | (29,868,888) | 41,909,763 |
Balance (in Shares) at Jun. 30, 2019 | 14,116,739 | |||
Balance at Mar. 31, 2019 | $ 12,279 | 49,705,102 | (30,275,505) | 19,441,876 |
Balance (in Shares) at Mar. 31, 2019 | 12,278,833 | |||
Shares issued as board compensation | $ 8 | 135,035 | 135,043 | |
Shares issued as board compensation (in Shares) | 8,336 | |||
Public offering of common shares for cash, net of offering costs | $ 1,769 | 21,302,057 | 21,303,826 | |
Public offering of common shares for cash, net of offering costs (in Shares) | 1,769,275 | |||
Shares issued for stock options exercised | $ 61 | 214,253 | 214,314 | |
Shares issued for stock options exercised (in Shares) | 60,295 | |||
Stock-based compensation expense | 408,087 | 408,087 | ||
Net income (loss) | 406,617 | 406,617 | ||
Balance at Jun. 30, 2019 | $ 14,117 | 71,764,534 | (29,868,888) | 41,909,763 |
Balance (in Shares) at Jun. 30, 2019 | 14,116,739 | |||
Balance at Dec. 31, 2019 | $ 14,601 | 78,272,268 | (33,424,610) | 44,862,259 |
Balance (in Shares) at Dec. 31, 2019 | 14,600,579 | |||
Shares issued as board compensation | $ 11 | 99,989 | 100,000 | |
Shares issued as board compensation (in Shares) | 11,136 | |||
Shares issued for stock options exercised | $ 35 | 112,117 | 112,152 | |
Shares issued for stock options exercised (in Shares) | 35,032 | |||
Stock-based compensation expense | 754,512 | 754,512 | ||
Net income (loss) | (2,203,931) | (2,203,931) | ||
Balance at Mar. 31, 2020 | $ 14,647 | 79,238,886 | (35,628,541) | 43,624,992 |
Balance (in Shares) at Mar. 31, 2020 | 14,646,747 | |||
Balance at Dec. 31, 2019 | $ 14,601 | 78,272,268 | (33,424,610) | 44,862,259 |
Balance (in Shares) at Dec. 31, 2019 | 14,600,579 | |||
Net income (loss) | (3,281,399) | |||
Balance at Jun. 30, 2020 | $ 14,753 | 80,194,282 | (36,706,009) | 43,503,026 |
Balance (in Shares) at Jun. 30, 2020 | 14,752,600 | |||
Balance at Mar. 31, 2020 | $ 14,647 | 79,238,886 | (35,628,541) | 43,624,992 |
Balance (in Shares) at Mar. 31, 2020 | 14,646,747 | |||
Shares issued as board compensation | $ 8 | 100,019 | 100,027 | |
Shares issued as board compensation (in Shares) | 7,748 | |||
Shares issued for stock options exercised | $ 56 | 174,775 | 174,831 | |
Shares issued for stock options exercised (in Shares) | 55,731 | |||
Stock-based compensation expense | $ 42 | 680,602 | 680,644 | |
Stock-based compensation expense | 42,374 | |||
Net income (loss) | (1,077,468) | (1,077,468) | ||
Balance at Jun. 30, 2020 | $ 14,753 | $ 80,194,282 | $ (36,706,009) | $ 43,503,026 |
Balance (in Shares) at Jun. 30, 2020 | 14,752,600 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income (Loss) | $ (3,281,399) | $ 413,146 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation, amortization, and non-cash lease expense | 1,040,463 | 425,873 |
Stock-based compensation | 1,435,156 | 938,399 |
Stock issued for board services | 200,027 | 241,077 |
Provision for loss on accounts receivable | 40,000 | |
Change in fair value of contingent consideration | 30,000 | 255,000 |
Changes in: | ||
Accounts receivable | (3,427,166) | (966,658) |
Prepaid expenses and other assets | (1,785,422) | (202,036) |
Accounts payable | 3,747 | 785 |
Revenue share payable | 1,878,051 | 55,824 |
Accrued expenses and other liabilities | 186,682 | (511,976) |
Deferred revenue | 68,678 | 158,766 |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (3,611,183) | 808,200 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of equipment | (24,998) | (47,739) |
Purchase of intangible assets | (1,000,000) | |
NET CASH USED IN INVESTING ACTIVITIES | (24,998) | (1,047,739) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of common stock, net of commission costs | 286,983 | 22,163,636 |
Expenses related to issuance cost of common stock | (301,711) | |
Payment of contingent consideration | (1,389,188) | |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (1,102,205) | 21,861,925 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | (4,738,386) | 21,622,386 |
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 18,852,680 | 8,914,034 |
CASH AND CASH EQUIVALENTS - END OF PERIOD | 14,114,294 | 30,536,420 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Cash paid for interest | ||
Cash paid for income taxes | ||
Intangible asset additions included in accounts payable | 500,000 | |
Non-cash effect of cumulative adjustments to accumulated deficit | 3,229 | |
Lease liabilities arising from right of use assets | $ 672,809 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF BUSINESS AND BASIS OF PRESENTATION | NOTE 1 – NATURE OF BUSINESS AND BASIS OF PRESENTATION The accompanying condensed consolidated financial statements include OptimizeRx Corporation and its wholly owned subsidiaries (collectively, the “Company”, “we”, “our”, or “us”). We are a leading provider of digital health messaging via electronic health records (EHRs), providing a direct channel for pharmaceutical companies to communicate with healthcare providers. Our cloud-based solution supports patient adherence to medications by providing real-time access to financial assistance, prior authorization, education and critical clinical information. Our network is comprised of leading EHR platforms and provides more than half a million healthcare providers access to these services within their workflow at the point of care. The condensed consolidated financial statements for the three and six months ended June 30, 2020 and 2019 are unaudited and have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). In the opinion of management, all adjustments necessary to present fairly our consolidated financial position as of June 30, 2020, and our results of operations, changes in stockholders’ equity for the three and six months ended June 30, 2020 and 2019 and the statements of cash flows for the six months ended June 30, 2020 and 2019 have been made. Those adjustments consist of normal and recurring adjustments. The condensed consolidated balance sheet as of December 31, 2019 has been derived from the audited consolidated balance sheet as of that date. Certain information and note disclosures, including a detailed discussion about the Company’s significant accounting policies, normally included in our annual financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) have been condensed or omitted. These consolidated condensed financial statements should be read in conjunction with a reading of the financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, as filed with the U.S. Securities and Exchange Commission on March 26, 2020. We operate in one reportable segment. The results of operations for the three and six months ended June 30, 2020 are not necessarily indicative of the results to be expected for the full year. Certain reclassifications have been made in the prior period’s condensed consolidated financial statements to conform to the current period’s presentation. |
New Accounting Standards
New Accounting Standards | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
NEW ACCOUNTING STANDARDS | NOTE 2 – NEW ACCOUNTING STANDARDS Recently adopted In June 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 provides for a new impairment model that requires measurement and recognition of expected credit losses for most financial assets and certain other instruments, including but not limited to accounts receivable and available for sale debt securities. ASU 2016-13 was effective for the Company on January 1, 2020. The adoption of this standard did not have a material effect on our financial position, results of operations, or cash flows. In August 2019, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 modifies the disclosure requirements on fair value measurements and became effective for the Company on January 1, 2020. The adoption of this standard did not have a material effect on our financial position, results of operations, or cash flows. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU 2017-04 simplifies the subsequent measurement of goodwill by eliminating the second step of the goodwill impairment test. The second step measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under ASU 2017-04, a company will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. ASU 2017-04 will be applied prospectively and is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this standard did not have a material effect on our financial position, results of operations, or cash flows. Not yet Adopted In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases (Textual) | |
LEASES | NOTE 3 – LEASES We have operating leases for office space in three multitenant facilities with lease terms greater than 12 months, which are recorded as assets and liabilities on our balance sheet. These leases include our corporate headquarters, located in Rochester, Michigan, a customer service facility in Cranbury, New Jersey, and a technical facility in Zagreb, Croatia. Certain leases contain renewal options and, for the headquarters lease, we have assumed renewal. Lease-related assets, or right-of-use assets, are recognized at the lease commencement date at amounts equal to the respective lease liabilities, adjusted for prepaid lease payments, initial direct costs, and lease incentives received. Lease-related liabilities are recognized at the present value of the remaining contractual fixed lease payments, discounted using our incremental borrowing rate. Amortization of the right of use assets is recognized as non-cash lease expense on a straight-line basis over the lease term, while variable lease payments are expensed as incurred. Short term lease costs include month to month leases in shared office space facilities, such as WeWork, or similar locations. For the three and six months ended June 30, 2020, the Company’s lease cost consisted of the following components, each of which is included in operating expenses within the Company’s condensed consolidated statements of operations: Three Months Six Months Operating lease cost $ 32,814 $ 65,627 Short-term lease cost (1) 36,186 80,815 Total lease cost $ 69,000 $ 146,442 (1) Short-term lease cost includes any lease with a term of less than 12 months. For the three and six months ended June 30, 2019, the Company’s lease cost consisted of the following components, each of which is included in operating expenses within the Company’s condensed consolidated statements of operations: Three Months Six Months Operating lease cost $ 32,591 $ 64,175 Short-term lease cost (1) 9,951 18,892 Total lease cost $ 42,542 $ 83,067 (1) Short-term lease cost includes any lease with a term of less than 12 months. The table below presents the future minimum lease payments to be made under operating leases as of June 30, 2020: As of June 30, 2020 2020(a) $ 69,119 2021 140,367 2022 102,367 2023 99,209 2024 80,375 Thereafter 70,224 Total 561,661 Less: imputed interest 54,495 Total lease liabilities $ 507,166 (a) For the six-month period beginning July 1, 2020. The weighted average remaining lease term at June 30, 2020 for operating leases is 4.7 years and the weighted average discount rate used in calculating the operating lease asset and liability is 4.5%. Cash paid for amounts included in the measurement of lease liabilities was $57,019 and $64,175 for the six months ending June 30, 2020 and 2019, respectively. For the six months ended June 30, 2020 and 2019, payments on lease obligations were $68,900 and $51,937, respectively, and amortization on the right of use assets was $56,357 and $52,592, respectively. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 4 – STOCKHOLDERS’ EQUITY During the quarters ended June 30, 2020, and March 31, 2020 we issued 55,731 shares and 35,032 shares of our common stock, respectively, and received proceeds of $174,775 and $112,117, respectively, in connection with the exercise of stock options under our 2013 equity compensation plan. During the quarters ended June 30, 2019 and March 31, 2019, we issued 60,295 shares and 101,878 shares of our common stock, respectively, and received proceeds of $214,314 and $343,785, respectively, in connection with the exercise of stock options under our 2013 equity compensation plan. We also issued 130,001 shares of our common stock in the quarter ended March 31, 2019 in connection with restricted stock awards awarded in 2018. We also issued 42,374 shares in the six months ended June 30, 2020 in connection with restricted stock awards as described in more detail in Note 5 – Stock Based Compensation. Our Director Compensation Plan calls for issuance of shares of common stock each quarter to each independent director. In 2020, we issued 11,136 shares valued at $100,000 in the quarter ended March 31, 2020 and 7,748 shares valued at $100,027 in the quarter ended June 30, 2020. In 2019, we issued 8,336 shares each quarter, valued at $106,834 and $135,043 for the quarters ended March 31, and June 30, respectively. During the quarter ended June 30, 2019, in an underwritten primary offering, we issued 1,769,275 shares of our common stock for gross proceeds of $23,000,575. In connection with this transaction, we incurred equity issuance costs of $1,696,749 related to payments to the underwriter, advisors and legal fees associated with the transaction, resulting in net proceeds to the Company of $21,303,826. |
Stock Based Compensation
Stock Based Compensation | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK BASED COMPENSATION | NOTE 5 – STOCK BASED COMPENSATION We use the fair value method to account for stock-based compensation. We recorded $1,021,787 and $907,109 in compensation expense in the six months ended June 30, 2020 and 2019, respectively, related to options issued under our stock-based incentive compensation plan. This includes expense related to options issued in prior years for which the requisite service period for those options includes the current period as well as options issued in the current period. The fair value of these instruments was calculated using the Black-Scholes option pricing model. There is $1,867,549 of remaining expense related to unvested options to be recognized in the future over a weighted average remaining period of approximately 1.3 years. The total intrinsic value of outstanding options at June 30, 2020 was $12,281,047. The company also recorded expense related to restricted stock awards of $413,369 and $31,290 for the six months ended June 30, 2020 and 2019, respectively. As of June 30, 2020, there was $1,039,157 of remaining expense related to unvested restricted stock awards to be recognized in the future related to 132,374 shares of restricted stock awards that were unvested at June 30, 2020. A total of 42,374 shares related to these restricted stock awards vested in 2020 and were issued during the six months ended June 30, 2020. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | NOTE 6 – CONTINGENCIES Litigation The Company is not currently involved in any legal proceedings. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | NOTE 7 – EARNINGS (LOSS) PER SHARE The following table sets forth the computation of basic and diluted earnings (loss) per share. Three Months Ended Six Months Ended 2020 2019 2020 2019 Numerator Net income (loss) $ (1,077,468 ) $ 406,617 $ (3,281,399 ) $ 413,146 Denominator Weighted average shares outstanding used in computing earnings per share Basic 14,667,216 12,743,379 14,638,359 12,412,442 Effect of dilutive stock options, warrants, and unvested restricted stock awards - 1,063,382 - 1,055,120 Diluted 14,667,216 13,806,761 14,638,359 13,467,562 Earnings (loss) per share Basic $ (0.07 ) $ 0.03 $ (0.22 ) $ 0.03 Diluted $ (0.07 ) $ 0.03 $ (0.22 ) $ 0.03 No calculation of diluted earnings per share is included for 2020 as the effect of the calculation would be antidilutive. The number of common shares potentially issuable upon the exercise of certain options that were excluded from the diluted loss per common share calculation in 2020 was 826,777 and 782,575 shares in the three and six months ended June 30, 2020, respectively, related to options, and 132,374 shares related to restricted stock for the three and six months ended June 30, 2020. This results in total shares excluded from the calculation of 959,151 and 914,949 for the three and six month periods ended June 30, 2020, respectively. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 8 – SUBSEQUENT EVENTS In July 2020, we received proceeds of $193,768 and issued 64,261 shares of common stock in conjunction with the exercise of stock options. In accordance with ASC 855-10, we have analyzed events and transactions that occurred subsequent to June 30, 2020 through the date these financial statements were issued and have determined that we do not have any other material subsequent events to disclose or recognize in these financial statements. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases of Lessee Disclosure [Abstract] | |
Schedule of lease cost | Three Months Six Months Operating lease cost $ 32,814 $ 65,627 Short-term lease cost (1) 36,186 80,815 Total lease cost $ 69,000 $ 146,442 Three Months Six Months Operating lease cost $ 32,591 $ 64,175 Short-term lease cost (1) 9,951 18,892 Total lease cost $ 42,542 $ 83,067 (1) Short-term lease cost includes any lease with a term of less than 12 months. |
Schedule of future minimum lease payments | As of June 30, 2020 2020(a) $ 69,119 2021 140,367 2022 102,367 2023 99,209 2024 80,375 Thereafter 70,224 Total 561,661 Less: imputed interest 54,495 Total lease liabilities $ 507,166 (a) For the six-month period beginning July 1, 2020. |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted net income (loss) per share | Three Months Ended Six Months Ended 2020 2019 2020 2019 Numerator Net income (loss) $ (1,077,468 ) $ 406,617 $ (3,281,399 ) $ 413,146 Denominator Weighted average shares outstanding used in computing earnings per share Basic 14,667,216 12,743,379 14,638,359 12,412,442 Effect of dilutive stock options, warrants, and unvested restricted stock awards - 1,063,382 - 1,055,120 Diluted 14,667,216 13,806,761 14,638,359 13,467,562 Earnings (loss) per share Basic $ (0.07 ) $ 0.03 $ (0.22 ) $ 0.03 Diluted $ (0.07 ) $ 0.03 $ (0.22 ) $ 0.03 |
Leases (Details)
Leases (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Leases Details (Textual) | ||
Weighted average remaining lease term | 4 years 255 days | |
Weighted average discount rate | 4.50% | |
Cash paid | $ 57,019 | $ 64,175 |
Payments on lease obligations | 68,900 | 51,937 |
Amortization on right of use assets | $ 56,357 | $ 52,592 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of lease cost - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Schedule of lease cost [Abstract] | |||||
Operating lease cost | $ 32,814 | $ 32,591 | $ 65,627 | $ 64,175 | |
Short-term lease cost | [1] | 36,186 | 9,951 | 80,815 | 18,892 |
Total lease cost | $ 69,000 | $ 42,542 | $ 146,442 | $ 83,067 | |
[1] | Short-term lease cost includes any lease with a term of less than 12 months. |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of future minimum lease payments | Jun. 30, 2020USD ($) | |
Schedule of future minimum lease payments [Abstract] | ||
2020 | $ 69,119 | [1] |
2021 | 140,367 | |
2022 | 102,367 | |
2023 | 99,209 | |
2024 | 80,375 | |
Thereafter | 70,224 | |
Total | 561,661 | |
Less: imputed interest | 54,495 | |
Total lease liabilities | $ 507,166 | |
[1] | For the six-month period beginning July 1, 2020. |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Stockholders' Equity (Textual) | ||||
Issued shares of common stock in connection with cashless exercise | 35,032 | 101,878 | 55,731 | 60,295 |
Net proceeds issuance of common stock (in Dollars) | $ 112,117 | $ 174,775 | ||
Restricted stock awards | 130,001 | 42,374 | ||
Shares of common, desrcription | an underwritten primary offering, we issued 1,769,275 shares of our common stock for gross proceeds of $23,000,575. In connection with this transaction, we incurred equity issuance costs of $1,696,749 related to payments to the underwriter, advisors and legal fees associated with the transaction, resulting in net proceeds to the Company of $21,303,826. | |||
Independent Directors [Member] | ||||
Stockholders' Equity (Textual) | ||||
Issued shares of common stock in connection with cashless exercise | 11,136 | |||
Net proceeds issuance of common stock (in Dollars) | $ 100,000 | $ 343,785 | $ 214,314 | |
Restricted stock awards | 8,336 | |||
Independent Directors [Member] | Board of Directors Chairman [Member] | ||||
Stockholders' Equity (Textual) | ||||
Issued shares of common stock in connection with cashless exercise | 7,748 | |||
Net proceeds issuance of common stock (in Dollars) | $ 100,027 | |||
Independent Director One [Member] | ||||
Stockholders' Equity (Textual) | ||||
Stock issued during period, value, stock options exercised (in Dollars) | $ 106,834 | $ 135,043 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Stock Based Compensation (Details) (Textual) | |||
Stock compensation recognized expense | $ 31,290 | ||
Remaining expense related to unvested options | $ 1,867,549 | ||
Weighted average contractual life | 1 year 109 days | ||
Intrinsic value of outstanding options | $ 12,281,047 | ||
Restricted stock awards (in Shares) | 130,001 | 42,374 | |
Stock-based incentive compensation plan [Member] | |||
Stock Based Compensation (Details) (Textual) | |||
Stock compensation recognized expense | $ 1,021,787 | 907,109 | |
Restricted Stock [Member] | |||
Stock Based Compensation (Details) (Textual) | |||
Stock compensation recognized expense | $ 413,369 | ||
Remaining expense related to unvested options | $ 1,039,157 | ||
Restricted Stock Awards (in Shares) | 132,374 | ||
Restricted stock awards (in Shares) | 42,374 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Net Income (Loss) per Share (Textual) | ||
Diluted loss per common share | 959,151 | 914,949 |
Options [Member] | ||
Net Income (Loss) per Share (Textual) | ||
Diluted loss per common share | 826,777 | |
Restricted Stock [Member] | ||
Net Income (Loss) per Share (Textual) | ||
Diluted loss per common share | 782,575 | |
Restricted Stock [Member] | ||
Net Income (Loss) per Share (Textual) | ||
Diluted loss per common share | 132,374 | 132,374 |
Earnings (Loss) Per Share (De_2
Earnings (Loss) Per Share (Details) - Schedule of basic and diluted net income (loss) per share - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Numerator | ||||||
Net income (loss) (in Dollars) | $ (1,077,468) | $ (2,203,931) | $ 406,617 | $ 6,529 | $ (3,281,399) | $ 413,146 |
Weighted average shares outstanding used in computing earnings per share | ||||||
Basic | 14,667,216 | 12,743,379 | 14,638,359 | 12,412,442 | ||
Effect of dilutive stock options, warrants, and unvested restricted stock awards | 1,063,382 | 1,055,120 | ||||
Diluted | 14,667,216 | 13,806,761 | 14,638,359 | 13,467,562 | ||
Earnings (loss) per share | ||||||
Basic (in Dollars per share) | $ (0.07) | $ 0.03 | $ (0.22) | $ 0.03 | ||
Diluted (in Dollars per share) | $ (0.07) | $ 0.03 | $ (0.22) | $ 0.03 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] | 1 Months Ended |
Jul. 31, 2020USD ($)shares | |
Subsequent Events (Details) (Textual) | |
Proceeds form net received | $ | $ 193,768 |
Common stock in conjunction with the exercise of stock options | shares | 64,261 |