Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 28, 2021 | Jun. 30, 2020 | |
Document Information Line Items | |||
Entity Registrant Name | Sensus Healthcare, Inc. | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 16,485,780 | ||
Entity Public Float | $ 35,160,655 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001494891 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Shell Company | false | ||
Entity Ex Transition Period | true | ||
Entity File Number | 001-37714 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Interactive Data Current | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 14,906,976 | $ 8,100,288 |
Investment in debt securities | 7,389,407 | |
Accounts receivable, net | 3,775,937 | 14,011,180 |
Inventories | 4,427,109 | 2,997,120 |
Prepaid and other current assets | 2,061,039 | 1,505,175 |
Total current assets | 25,171,061 | 34,003,170 |
Property and equipment, net | 1,355,831 | 1,082,428 |
Intangibles | 337,882 | 337,351 |
Deposits | 69,393 | 101,561 |
Operating lease right-of-use assets, net | 1,075,728 | 1,400,037 |
Total assets | 28,009,895 | 36,924,547 |
Current liabilities | ||
Accounts payable and accrued expenses | 2,873,720 | 4,779,435 |
Deferred revenue, current portion | 1,491,916 | 1,191,898 |
Operating lease liabilities, current portion | 303,405 | 309,524 |
Product warranties | 187,051 | 187,454 |
Total current liabilities | 4,856,092 | 6,468,311 |
Loan payable | 266,777 | |
Operating lease liabilities | 812,124 | 1,115,529 |
Deferred revenue, net of current portion | 579,292 | 1,339,285 |
Total liabilities | 6,514,285 | 8,923,125 |
Commitments and contingencies | ||
Stockholders’ equity | ||
Preferred stock, 5,000,000 shares authorized and none issued and outstanding | ||
Common stock, $0.01 par value – 50,000,000 authorized; 16,564,311 issued and 16,491,103 outstanding at December 31, 2020; 16,540,478 issued and 16,485,780 outstanding at December 31, 2019 | 165,643 | 165,404 |
Additional paid-in capital | 43,700,929 | 43,314,123 |
Treasury stock, 73,208 and 54,698 shares at cost, at December 31, 2020 and 2019, respectively | (309,901) | (252,570) |
Accumulated deficit | (22,061,061) | (15,225,535) |
Total stockholders’ equity | 21,495,610 | 28,001,422 |
Total liabilities and stockholders’ equity | $ 28,009,895 | $ 36,924,547 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized | 50,000,000 | 50,000,000 |
Common stock share issued | 16,564,311 | 16,540,478 |
Common stock shares outstanding | 16,491,103 | 16,485,780 |
Treasury stock, shares | 73,208 | 54,698 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||
Revenues | $ 9,576,932 | $ 27,263,248 |
Cost of sales | 4,327,839 | 9,706,104 |
Gross profit | 5,249,093 | 17,557,144 |
Operating expenses | ||
Selling and marketing | 5,336,427 | 9,103,136 |
General and administrative | 3,989,110 | 4,004,682 |
Research and development | 4,157,430 | 6,417,619 |
Total operating expenses | 13,482,967 | 19,525,437 |
Loss from operations | (8,233,874) | (1,968,293) |
Other income (expense) | ||
Gain on bargain purchase | 588,011 | |
Gain on extinguishment of loan | 757,782 | |
Interest income | 66,785 | 268,290 |
Interest expense | (14,230) | |
Other income (expense), net | 1,398,348 | 268,290 |
Net loss | $ (6,835,526) | $ (1,700,003) |
Net loss per share – basic and diluted (in Dollars per share) | $ (0.42) | $ (0.10) |
Weighted-average number of shares used in computing net loss per share – basic and diluted (in Shares) | 16,434,079 | 16,232,748 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity - USD ($) | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Deficit | Total |
Balance at Dec. 31, 2018 | $ 161,459 | $ 39,957,905 | $ (133,816) | $ (13,525,532) | $ 26,460,016 |
Balance (in Shares) at Dec. 31, 2018 | 16,145,915 | (33,454) | |||
Surrender of shares for tax withholding on stock compensation | $ (118,754) | (118,754) | |||
Surrender of shares for tax withholding on stock compensation (in Shares) | (21,244) | ||||
Forfeiture of common stock | $ (113) | 113 | |||
Forfeiture of common stock (in Shares) | (11,250) | ||||
Stock-based compensation | 620,925 | 620,925 | |||
Exercise of warrants | $ 4,058 | 2,735,180 | 2,739,238 | ||
Exercise of warrants (in Shares) | 405,813 | ||||
Net loss | (1,700,003) | (1,700,003) | |||
Balance at Dec. 31, 2019 | $ 165,404 | 43,314,123 | $ (252,570) | (15,225,535) | 28,001,422 |
Balance (in Shares) at Dec. 31, 2019 | 16,540,478 | (54,698) | |||
Surrender of shares for tax withholding on stock compensation | $ (57,331) | (57,331) | |||
Surrender of shares for tax withholding on stock compensation (in Shares) | (18,510) | ||||
Forfeiture of common stock | $ (112) | 112 | |||
Forfeiture of common stock (in Shares) | (11,250) | ||||
Stock-based compensation | $ 350 | 386,135 | 386,485 | ||
Stock-based compensation (in Shares) | 35,000 | ||||
Exercise of warrants | $ 1 | 559 | $ 560 | ||
Exercise of warrants (in Shares) | 83 | ||||
Net loss | (6,835,526) | $ (6,835,526) | |||
Balance at Dec. 31, 2020 | $ 165,643 | $ 43,700,929 | $ (309,901) | $ (22,061,061) | $ 21,495,610 |
Balance (in Shares) at Dec. 31, 2020 | 16,564,311 | (73,208) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | ||
Net loss | $ (6,835,526) | $ (1,700,003) |
Adjustments to reconcile net loss to net cash and cash equivalents used in operating activities: | ||
Bad debt expense | 24,000 | 350,086 |
Depreciation and amortization | 721,865 | 545,717 |
Inventory write-down | 90,083 | |
Provision for product warranties | 295,735 | 288,746 |
Gain on bargain purchase | (588,011) | |
Stock-based compensation | 386,483 | 620,925 |
Changes in operating assets (decrease (increase)): | ||
Accounts receivable | 10,249,726 | (1,215,332) |
Inventories | (1,429,989) | (1,698,523) |
Prepaid and other current assets | (199,387) | 483,306 |
Changes in operating liabilities (increase (decrease)): | ||
Accounts payable and accrued expenses | (2,302,964) | (676,564) |
Deferred revenue | (459,974) | 1,042,426 |
Product warranties | (296,138) | (237,509) |
Total adjustments | 6,401,346 | (406,639) |
Net cash provided by (used in) operating activities | (434,180) | (2,106,642) |
Cash flows from investing activities | ||
Acquisition of property and equipment | (358,545) | (400,593) |
Investment in debt securities - held to maturity | (7,797,217) | |
Investments matured | 7,389,407 | 3,300,000 |
Net cash provided by (used in) investing activities | 7,030,862 | (4,897,810) |
Cash flows from financing activities | ||
Proceeds from loan payable | 266,777 | |
Withholding taxes on stock compensation | (57,331) | (118,754) |
Exercise of warrants | 560 | 2,739,238 |
Net cash provided by (used in) financing activities | 210,006 | 2,620,484 |
Net increase (decrease) in cash and cash equivalents | 6,806,688 | (4,383,968) |
Cash and cash equivalents, beginning of year | 8,100,288 | 12,484,256 |
Cash and cash equivalents, end of year | 14,906,976 | 8,100,288 |
Supplemental disclosure of cash flow information: | ||
Interest paid | 12,456 | |
Supplemental schedule of noncash investing and financing transactions | ||
Transfer of inventory to property and equipment | 240,137 | |
PPP loan (forgiveness portion) | 757,782 | |
Lease liabilities arising from obtaining right-of-use-assets | $ 1,714,814 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Note 1 — Organization and Summary of Significant Accounting Policies Description of the Business Sensus Healthcare, Inc. (together, with its subsidiary, unless the context otherwise indicates, “Sensus” or the “Company”) is a manufacturer of radiation therapy devices and sells the devices to healthcare providers globally through its distribution and marketing network. The Company operates as one segment from its corporate headquarters located in Boca Raton, Florida. BASIS of PRESENTATION These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and include the accounts of the Company and its subsidiary. Accounts and transactions between consolidated entities have been eliminated. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, including disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting periods. Significant estimates to which it is reasonably possible that a change could occur in the near term include, revenue recognition, inventory reserves, receivable allowances, recoverability of long-lived assets and estimation of the Company’s product warranties. Actual results could differ from those estimates. Impact of COVID-19 T Revenue Recognition Revenue is recognized upon transfer of control of promised goods or services to customers in an amount to which the Company expects to be entitled in exchange for those goods or services. The Company enters into contracts that can include multiple services, which are accounted for separately if they are determined to be distinct. The Company’s revenue consists of sales of the Company’s devices and services related to maintaining and repairing the devices. The agreement for the sale of the devices and the service contract are usually signed at the same time and in some instances a service contract is signed on a stand-alone basis. Revenue for service contracts is recognized over the service contract period on a straight-line basis. The Company determined that in practice no significant discount is given on the service contract when it is offered with the device purchase as compared to when it is sold on a stand-alone basis. The service level provided is identical when the service contract is on a purchased stand-alone basis or together with the device. There is no termination provision in the service contract nor any penalties in practice for cancellation of the service contract The components of disaggregated revenue are as follows: 2020 2019 Product revenue $ 5,449,435 $ 25,109,303 Service revenue 4,127,497 2,153,945 Total revenue $ 9,576,932 $ 27,263,248 The Company operates in a highly regulated environment, primarily in the U.S. dermatology market, in which state regulatory approval is sometimes required prior to the customer being able to use the product. In cases where such regulatory approval is pending, revenue is deferred until such time as regulatory approval is obtained. Deferred revenue activity for 2020 and 2019 is as follows: Product Service Total December 31, 2018 $ 33,000 $ 1,455,757 $ 1,488,757 Revenue recognized (33,000 ) (1,743,817 ) (1,598,159 ) Amounts invoiced - 2,819,243 2,640,585 December 31, 2019 - 2,531,183 2,531,183 Revenue recognized - (2,860,283 ) (2,860,283 ) Amounts invoiced 23,000 2,377,308 2,400,308 December 31, 2020 $ 23,000 $ 2,048,208 $ 2,071,208 The Company does not disclose information about remaining performance obligations of deposits for products that have original expected durations of one year or less. Estimated service revenue to be recognized in the future related to the performance obligations that are unsatisfied (or partially unsatisfied) as of December 31, 2020 is as follows: Year Service 2021 $ 1,468,916 2022 446,291 2023 81,667 2024 51,334 Total $ 2,048,208 The Company provides warranties, generally for one year, in conjunction with the sale of its product. These warranties entitle the customer to repair, replacement, or modification of the defective product subject to the terms of the respective warranty. The Company records an estimate of future warranty claims at the time the Company recognizes revenue from the sale of the device based upon management’s estimate of the future claims rate. Shipping and handling costs are expensed as incurred and are included in cost of sales. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalents, accounts receivable and investments in debt securities. The Company places its cash and cash equivalents with highly rated financial institutions. Segment and Geographical Information The Company’s revenue is generated primarily from customers in the U.S., which represented approximately 97% and 92% of revenue for the years ended December 31, 2020 and 2019, respectively. One customer in the U.S. accounted for approximately 40% and 68% of revenue for the years ended December 31, 2020 and 2019, respectively, and 56% and 79% of the accounts receivable as of December 31, 2020 and 2019, respectively. Fair Value of Financial Instruments Carrying amounts of cash equivalents, accounts receivable, accounts payable and revolving credit facility approximate fair value due to their relative short maturities. Fair Value Measurements The Company uses a fair value hierarchy that prioritizes inputs to valuation approaches used to measure fair value. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. Assets and liabilities measured and reported at fair value are classified and disclosed in one of the following categories: Level 1 Inputs: Quoted prices (unadjusted) in active markets for identical assets or liabilities at the reporting date. • Level 1 assets may include listed mutual funds, ETFs and listed equities Level 2 Inputs: Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities that are not active; quotes from pricing services or brokers for which the Company can determine that orderly transactions took place at the quoted price or that the inputs used to arrive at the price are observable; and inputs other than quoted prices that are observable, such as models or other valuation methodologies. • Level 2 assets may include debt securities and foreign currency exchange contracts that have inputs to the valuations that generally can be corroborated by observable market data. Level 3 Inputs: Unobservable inputs for the valuation of the asset or liability, which may include nonbinding broker quotes. Level 3 assets include investments for which there is little, if any, market activity. These inputs require significant management judgment or estimation. Significance of Inputs. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument. Foreign Currency The Company’s foreign operation functional currency is the U.S. dollar. The Company considers its Israel subsidiary an extension of the parent company operations in the United States. The cash flow in the foreign operation depends primarily on the funding by the parent company. Cash and Cash Equivalents Cash and cash equivalents primarily consists of cash, money market funds and short-term, highly liquid investments with original maturities of three months or less. For purposes of the statements of cash flows, the Company considers all highly liquid financial instruments with a maturity of three months or less when purchased to be a cash equivalent. Investments Short-term investments consist of investments which the Company expects to convert into cash within one year, and long-term investments are those that the Company expects to convert to cash after one year. The Company classifies its investments in debt securities (level 2) at the time of purchase as held-to-maturity and re-evaluates such classification on a quarterly basis. Held-to-maturity investments consist of securities that the Company has the intent and ability to retain until maturity. At December 31, 2019, these securities were carried at amortized cost plus accrued interest and consist of the following: Amortized Gross Gross Fair Short Term: Corporate bonds $ 6,690,678 $ 4,251 $ — $ 6,694,929 United States Treasury bonds 698,729 1,302 — 700,031 Total Investments December 31, 2019 $ 7,389,407 $ 5,553 $ — $ 7,394,960 At December 31, 2020, the Company did not have any short-term investments. Accounts Receivable The Company does business and extends credit based on an evaluation of each customer’s financial condition, generally without requiring collateral. Exposure to losses on receivables is expected to vary by customer due to the financial condition of each customer. The Company monitors exposure to credit losses and maintains allowances for anticipated losses considered necessary under the circumstances. The allowance for doubtful accounts was approximately $24,000 and $80,000 as of December 31, 2020 and 2019, respectively. Bad debt expense for the years ended December 31, 2020 and 2019 were approximately $24,000 and $350,000, respectively. Inventories Inventories consist of finished product and components and are stated at the lower of cost and net realizable value, determined using the first-in-first-out method. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation on property and equipment is calculated on the straight-line basis over the estimated useful life of each asset. Maintenance and repairs are expensed as incurred; expenditures that enhance the value of property or extend their useful lives are capitalized. When assets are sold or returned, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss is included in income. Inventory units designated for customer demonstrations, as part of the sales process, are reclassified to property and equipment and the depreciation is recorded to selling and marketing expense. The inventory for demonstrations and other programs that was reclassified to property and equipment for the years ended December 31, 2020 and 2019 was approximately $0 and $240,000, respectively. Intangible Assets Intangible assets are comprised of the Company’s patent rights and finite-lived intangible assets acquired in acquisitions. The carrying value of finite-lived assets and their remaining useful lives are reviewed at least annually to determine if triggering events have occurred that may indicate a potential impairment or revision to the amortization period. For finite-lived intangible assets, if potential impairment circumstances are considered to exist, the Company will perform a recoverability test using an undiscounted cash flow analysis. Actual results could differ from these cash flow estimates, which could materially impact the impairment conclusion. If the carrying value of the asset is determined not to be recoverable based on the undiscounted cash flow test, the difference between the carrying value of the asset and its current fair value would be recognized as an expense in the period in which the impairment occurs. No impairment charges were recorded for intangible assets long-lived assets for the years ended December 31, 2020 and 2019. Research and Development Research and development costs related to products under development by the Company and quality and regulatory costs and are expensed as incurred. Earnings Per Share Basic net income (loss) per share is calculated by dividing the net income (loss) by the weighted-average number of common shares outstanding for the period using the treasury stock method for options and warrants. Diluted net income per share is computed by giving effect to all potential dilutive common share equivalents outstanding for the period. In periods when the Company has incurred a net loss, options and warrants to purchase common shares are considered common share equivalents but have been excluded from the calculation of diluted net loss per share as their effect is antidilutive. Shares excluded were computed under the treasury stock method as follows: For the Years Ended 2020 2019 Stock options - 15,776 Restricted shares 106 11,186 Equity-Based Compensation Pursuant to relevant accounting guidance related to accounting for equity-based compensation, the Company is required to recognize all share-based payments to non-employees and employees in the financial statements based on grant-date fair values. The Company has accounted for issuances of shares, options, and warrants in accordance with the guidance, which requires the recognition of expense, based on grant-date fair values, over the service period, generally periods over which the shares, options and warrants vest. Advertising Costs Advertising and promotion costs are charged to expense as incurred. Advertising and promotion costs included in selling and marketing expense in the accompanying statements of operations amounted to approximately $515,000 and $1,321,000 for the years ended December 31, 2020 and 2019, respectively. Leases The Company evaluates arrangements at inception to determine if an arrangement is or contains a lease. Operating lease assets represent the Company’s right to control an underlying asset for the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Control of an underlying asset is conveyed to the Company if the Company obtains the rights to direct the use of and to obtain substantially all of the economic benefits from using the underlying asset. Operating lease assets and liabilities are recognized at the commencement date of the lease based upon the present value of lease payments over the lease term. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company uses an incremental borrowing rate that the Company would expect to incur for a fully collateralized loan over a similar term under similar economic conditions to determine the present value of the lease payments. The Company has lease agreements which include lease and non-lease components, which the Company has elected to account for as a single lease component for all classes of underlying assets. The lease payments used to determine the Company’s operating lease assets may include lease incentives and stated rent increases and are recognized in the Company’s operating lease assets in the Company’s consolidated balance sheets. Operating lease assets are amortized to rent expense over the lease term and included in operating expenses in the consolidated statements of operations. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
ACQUISITIONS | Note 2 — ACQUISITIONS On August 3, 2020, the Company acquired two mobile aesthetic laser companies, now known as Sensus Laser Aesthetic Solutions (“SLAS”). The companies are expected to complement and expand the Company’s current offerings. The aggregate purchase price of $999,000 was deemed to be compensation for post-acquisition services and will be recorded as compensation expense over the remaining service periods. The purchase price was allocated to the assets acquired and liabilities assumed based upon their estimated fair values at the date of the transaction. A preliminary summary of the estimated fair values of the assets acquired and liabilities assumed is as follows: Fair Value Accounts receivable $ 38,483 Property and equipment 528,300 Finite-lived intangible assets: Trade names 22,218 Customer relationships 86,737 Other liabilities assumed (87,727 ) Bargain purchase gain $ 588,011 A bargain purchase gain results from an acquisition if the fair value of the purchase consideration paid in connection with such acquisition is less than the net fair value of the assets acquired, and liabilities assumed. Accordingly, the Company recorded a bargain purchase gain of $588,011 which is included in other income on the consolidated statements of operations for the year ended December 31, 2020. Finite-lived intangible assets are amortized over their estimated useful lives, which range from one to 13 years. For the year ended December 31, 2020, the acquisition of these two laser rental companies contributed approximately $166,000 to gross profit and did not have a material impact on net loss. Consequently, the Company has not presented pro forma financial statements for this acquisition. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | Note 3 — Property and Equipment Property and equipment consists of the following: As of December 31, Estimated 2020 2019 life-in years Operations and rental equipment $ 2,177,892 $ 1,280,209 3 Tradeshow and demo equipment 922,866 914,891 3 Computer equipment 119,237 117,596 3 3,219,995 2,312,696 Less accumulated depreciation (1,864,164 ) (1,230,268 ) Property and Equipment, Net $ 1,355,831 $ 1,082,428 Depreciation expense was approximately $613,000 and $449,000 for the years ended December 31, 2020 and 2019, respectively. Accumulated depreciation on asset disposals was approximately $74,000 for the year ended December 31, 2020. |
Intangibles
Intangibles | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLES | Note 4 — INTANGIBLES Patent Customer Trade Total December 31, 2019 $ 337,351 $ — $ — $ 337,351 Acquired assets — 86,737 22,218 108,955 Amortization expense (96,386 ) (2,780 ) (9,258 ) (108,424 ) December 31, 2020 $ 240,965 $ 83,957 $ 12,960 $ 337,882 Amortization expense was approximately $108,000 and $96,000 for the years ended December 31, 2020 and 2019, respectively. Estimated amortization expense for the finite-lived intangible assets for each of the five succeeding years is as follows: For the Year Ending December 31, 2021 $ 116,019 2022 103,058 2023 54,865 2024 6,672 2025 6,672 In 2020, in connection with the two mobile laser company acquisitions, the Company acquired finite-lived trade names and finite-lived customer relationship intangible assets, with weighted-average estimated lives of approximately 13 years and one year, respectively. See Note 2, Acquisitions |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
DEBT | Note 5 — DEBT The Company has a revolving credit facility that, through April 2020, provided for maximum borrowings equal to the lesser of (a) the $5 million commitment amount or (b) a borrowing base equal to 80% of eligible accounts receivable plus a $2.5 million non-formula sublimit. In October 2019, the term of the facility was extended through January 29, 2020; in January 2020, the term was further extended through April 28, 2020; and in April 2020, the term was further extended to April 1, 2022 and the maximum borrowings were increased to the lesser of (a) the $10 million commitment amount or (b) the borrowing base plus a $3 million non-formula sublimit. Interest on any borrowings, at Prime plus 0.75% (4.00% at December 31, 2020) and Prime plus 1.50% on non-formula borrowings (4.75% at December 31, 2020), is payable monthly, and the outstanding principal and interest are due on the maturity date. The facility is secured by all of the Company’s assets and limits the amount of additional indebtedness; restricts the sale, disposition or transfer of assets of the Company; and requires the maintenance of a monthly adjusted quick ratio restrictive covenant, as defined in the facility. The Company was in compliance with its financial covenants as of December 31, 2020 and December 31, 2019. There were no borrowings outstanding under the revolving credit facility at December 31, 2020 and December 31, 2019. The Company pays commitment fees of 0.25% per annum on the average unused portion of the line of credit. On April 20, 2020, the Company received a loan of $1,022,785 under the Small Business Administration (“SBA”) Paycheck Protection Program enabled by the CARES Act of 2020, to be used for employee compensation and facilities costs. The loan provided for a six-month deferral period during which no payments were due, although interest accrued during this period. The loan matures in April 2022 and provides for interest at the rate of 1% per annum. The loan is subject to forgiveness for principal that is used for the limited purposes that expressly qualify for forgiveness under SBA requirements. The Company applied for and has been notified that $757,782 in eligible expenditures for payroll and other expenses described in the CARES Act has been forgiven. Loan forgiveness is reflected in gain on extinguishment of the loan in the consolidated statements of operations. |
Product Warranties
Product Warranties | 12 Months Ended |
Dec. 31, 2020 | |
Product Warranties Disclosures [Abstract] | |
PRODUCT WARRANTIES | Note 6 — Product Warranties Changes in product warranty liability were as follows for the year ended December 31, 2020: Balance, December 31, 2019 $ 187,454 Warranties accrued during the period 295,735 Payments on warranty claims (296,138 ) Balance, December 31, 2020 $ 187,051 |
Commitment and Contingencies
Commitment and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENT AND CONTINGENCIES | Note 7 — Commitment and Contingencies Operating Lease Agreements The Company leases its headquarters office from an unrelated third party. The lease was last renewed in 2016 and expires in September 2022 with an option to extend with prior notice upon terms to be negotiated. The following table presents information about the amount, timing and uncertainty of cash flows arising from the Company’s operating leases as of December 31, 2020. Maturity of Operating Lease Liabilities Amount 2021 $ 348,122 2022 284,578 2023 104,343 2024 105,843 2025 107,942 Thereafter 386,789 Total undiscounted operating leases payments $ 1,337,617 Less: Imputed interest (222,088 ) Present Value of Operating Lease Liabilities $ 1,115,529 Other Information Weighted-average remaining lease term 6.0 years Weighted-average discount rate 5.0 % An initial Right of Use (“ROU”) asset of approximately $805,000 was recognized as a non-cash assets addition with the adoption of the new lease accounting standard. The value of the ROU assets was reduced by approximately $324,000 and $330,000 during the years ended December 31, 2020 and 2019, respectively. Cash paid for amounts included in the present value of operating lease liabilities was approximately $359,000 and $310,000 for the years ended December 31, 2020 and 2019, respectively, and is included in cash flows from operating activities in the accompanying consolidated statement of cash flows. Operating lease costs were approximately $373,000 and $351,000 for the years ended December 31, 2020 and 2019, respectively. Manufacturing Agreement In 2010, the Company entered into a three-year contract manufacturing agreement with an unrelated third party for the production and manufacture of the SRT-100 (and subsequently the SRT-100 Vision and the SRT-100 Plus), in accordance with the Company’s product specifications. The agreement renews for successive one-years periods unless either party notifies the other party in writing, at least 60 days prior to the anniversary date of the agreement, that it will not renew the agreement. The Company or the manufacturer may terminate the agreement upon 90 days’ prior written notice. Purchases from this manufacturer totaled approximately $2,474,000 and $5,786,000 for the years ended December 31, 2020 and 2019, respectively. As of December 31, 2020 and 2019, approximately $697,000 and $1,104,000, respectively, was due to this manufacturer, which is presented in accounts payable and accrued expenses in the accompanying balance sheets. Legal contingencies The Company is party to certain legal proceedings in the ordinary course of business. The Company assesses, in conjunction with its legal counsel, the need to record a liability for litigation and related contingencies. In 2015, the Company learned that the Department of Justice (the “Department”) had commenced an investigation of the billing to Medicare by a physician who had treated patients with the Company’s SRT-100. The Company has received two Civil Investigative Demands from the Department seeking documents and written responses in connection with that investigation. The Company has fully cooperated with the investigation. The Department has advised the Company that it was considering expanding the investigation to determine whether the Company had any involvement in the physician’s use of certain reimbursement codes. The Company disputes that it has engaged in any wrongdoing with respect to such reimbursement claims; among other things, the Company does not submit claims for reimbursement or provide coding or billing advice to physicians. To the Company’s knowledge, the Department has made no determination as to whether the Company engaged in any wrongdoing, or whether to pursue any legal action against the Company. Should the Department decide to pursue legal action, the Company believes it has strong and meritorious defenses and will vigorously defend itself. At this time, the Company is unable to estimate the cost associated with this matter. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | Note 8 — Employee Benefit Plans The Company sponsors a 401(k) defined contribution retirement plan that allows eligible employees to contribute a portion of their compensation, as defined by the plan and subject to Internal Revenue Code limitations. The Company makes contributions to the plan which include matching a percentage of the employees’ contributions up to certain limits. Expenses related to this plan totaled approximately $125,000 and $123,000 for the years ended December 31, 2020 and 2019, respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | Note 9 — Stockholders’ Equity The Company has authorized 50,000,000 shares of common stock, of which 16,564,311 were issued and 16,491,103 outstanding at December 31, 2020; 16,540,478 shares were issued and 16,485,780 outstanding as of December 31, 2019, respectively. Warrants In 2016, investors in the Company’s initial public offering (the “IPO”), received three-year warrants to purchase 2,300,000 shares of common stock at an exercise price of $6.75 per share; the warrants were exercisable through June 8, 2019. In 2019, the Company entered into an amendment to the Warrant Agreement to extend the expiration date of the investor warrants from June 8, 2019 until June 8, 2020. During the year ended December 31, 2019, warrants for 405,813 shares were exercised. In addition, the underwriters’ of the IPO received four-year warrants to purchase up to 138,000 units, consisting of one share of common stock and one warrant to purchase one share of common stock. The warrants for the units are exercisable until June 2, 2021 at an exercise price of $6.75 per unit. As of December 31, 2020, none of the unit warrants have been exercised. The following table summarizes the Company’s warrant activity: Warrants Number of Weighted Weighted Outstanding – December 31, 2019 2,032,187 $ 6.75 0.51 Granted — — — Exercised (83 ) — — Expired (1,894,104 ) — — Outstanding – December 31, 2020 138,000 $ 6.75 0.44 Exercisable – December 31, 2020 138,000 $ 6.75 0.44 The intrinsic value of the common stock warrants was $0 as of December 31, 2020 and December 31, 2019, respectively. 2016 and 2017 Equity Incentive Plans The Company has limited the aggregate number of shares of common stock to be awarded under the 2016 Equity Incentive Plan to 397,473 shares which may be granted in connection with incentive stock options. The Company has limited the aggregate number of shares of common stock to be awarded under the 2017 Equity Incentive Plan to 500,000 shares which may be granted in connection with incentive stock options. In addition, unless the Compensation Committee specifically determines otherwise, the maximum number of shares available under the 2016 and 2017 Plans and the awards granted under those plans will be subject to appropriate adjustment in the case of any stock dividends, stock splits, recapitalizations, reorganizations, mergers, consolidations, exchanges or other changes in capitalization affecting our common stock. The stock options had an intrinsic value of $0 as of December 31, 2020 and December 31, 2019, respectively. The Company recognizes forfeitures as they occur rather than estimating a forfeiture rate. The reduction of stock compensation expense related to the forfeitures was approximately $24,000 and $8,000 for the years ended December 31, 2020 and 2019, respectively. Unrecognized stock compensation expense was approximately $331,000 as of December 31, 2020, which will be recognized over a weighted average period of 1.75 years. A summary of restricted stock activity is presented as follows: Outstanding at Shares Weighted- December 31, 2019 80,417 $ 5.70 Granted 35,000 4.11 Vested (66,667 ) 5.24 Forfeited (11,250 ) 8.58 December 31, 2020 37,500 $ 4.17 The following table summarizes the Company’s stock option activity: Number of Weighted Weighted Outstanding – December 31, 2019 229,334 $ 5.55 8.07 Granted — — — Exercised — — — Expired — — — Outstanding – December 31, 2020 229,334 $ 5.55 7.07 Exercisable – December 31, 2020 229,334 5.55 7.07 Treasury Stock The Company accounts for purchases of treasury stock under the cost method with the cost of such share purchases reflected in treasury stock in the accompanying consolidated balance sheet. As of December 31, 2020 and 2019, the Company had 73,208 and 54,698 treasury shares, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Note 10 — Income Taxes The income tax provision (benefit) consisted of the following: For the Years Ended December 31, 2020 2019 Current – federal - - Current – state - - Deferred – federal (1,278,745 ) (601,575 ) Deferred –state (199,266 ) (494,982 ) Deferred – international (61,293 ) (43,303 ) (1,539,304 ) (1,139,860 ) Change in valuation allowance 1,539,304 1,139,860 Income tax provision (benefit) $ - $ - For the years ended December 31, 2020 and December 31, 2019, the expected tax expense (benefit) based on the statutory rate is reconciled with the actual tax expense (benefit) as follows: For the Years Ended December 31, 2020 2019 U.S. federal statutory rate (21.0 )% (21.0 )% State taxes, net of federal benefit (5.8 )% (6.1 )% Foreign rate differential (0.1 )% (0.2 )% Permanent differences (1.9 )% 3.2 % Change in tax rates 0.3 % (1.9 )% Return-to-provision adjustments 0.6 % (4.0 )% Tax credits 5.2 % (37.1 )% Other - - % Change in valuation allowance 22.5 % 67.1 % Income tax provision (benefit) 0.0 % 0.0 % As of December 31, 2020 and December 31, 2019, the Company’s net deferred tax asset (liability) consisted of the effects of temporary differences attributable to the following: December 31, 2020 2019 Net operating losses $ 3,683,102 $ 1,701,503 Stock-based compensation 190,202 183,911 Depreciation and amortization (236,312 ) (94,400 ) Accrued expenses and reserves 106,337 195,321 Prepaid expenses (23,230 ) (3,893 ) Customer deposits 216,184 60,759 Tax credit 824,353 1,176,852 Charitable Contributions 36,752 37,468 Lease Accounting (2,061 ) - Other, net 1,703 204 Deferred tax asset, net 4,797,030 3,257,725 Valuation allowance (4,797,030 ) (3,257,725 ) Deferred tax asset, net of valuation allowance - - The Company has federal tax net operating loss carryforwards of approximately $12,943,000 as of December 31, 2020 and state net operating loss carryforwards spread across various jurisdictions with a combined total of approximately $14,107,000 as of December 31, 2020. The net operating loss carryforwards generated prior to January 1, 2018, if not used to reduce taxable income in future periods, will begin to expire in 2029, for both federal and state tax purposes. The net operating loss carryforward generated after December 31, 2017 will never expire for federal purposes but can only reduce 80% of taxable income in future years. Additionally, the Company also has tax credit carryforwards of approximately $824,000 as of December 31, 2020. These credit carryforwards, if not used in future periods, will begin to expire in 2029. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the future generation of taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and taxing strategies in making this assessment. Based on this assessment, management has established a full valuation allowance against all of the net deferred tax assets for each period, since it is more likely than not that all of the deferred tax assets will not be realized. The valuation allowance for the years ended December 31, 2020 and 2019 increased by approximately $1,540,000 and $1,140,000, respectively. Management has evaluated and concluded that there were no material uncertain tax positions requiring recognition in the Company’s consolidated financial statements as of December 31, 2020 and 2019. The Company does not expect any significant changes in its unrecognized tax benefits within 12 months of the reporting date. The Company has U.S. federal and certain state tax returns subject to examination by tax authorities beginning with those filed for the year ended December 31, 2015. The Company’s policy is to classify assessments, if any, for tax related interest as interest expense and penalties as general and administrative expenses in the consolidated statements of operations. During the year ended December 31, 2020, $757,782 of the PPP loan was forgiven which resulted in income that was not recognized for tax purposes. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Note 11 — Subsequent Events The Company has evaluated subsequent events and transactions that occur after the balance sheet date up to the date that the financial statements were issued for potential recognition or disclosure, and determined that there have been no events that have occurred that would require adjustments to our disclosures in the consolidated financial statements. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Description of the Business | Description of the Business Sensus Healthcare, Inc. (together, with its subsidiary, unless the context otherwise indicates, “Sensus” or the “Company”) is a manufacturer of radiation therapy devices and sells the devices to healthcare providers globally through its distribution and marketing network. The Company operates as one segment from its corporate headquarters located in Boca Raton, Florida. |
BASIS of PRESENTATION | BASIS of PRESENTATION These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and include the accounts of the Company and its subsidiary. Accounts and transactions between consolidated entities have been eliminated. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, including disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting periods. Significant estimates to which it is reasonably possible that a change could occur in the near term include, revenue recognition, inventory reserves, receivable allowances, recoverability of long-lived assets and estimation of the Company’s product warranties. Actual results could differ from those estimates. |
Impact of COVID-19 | Impact of COVID-19 T |
REVENUE RECOGNITION | Revenue Recognition Revenue is recognized upon transfer of control of promised goods or services to customers in an amount to which the Company expects to be entitled in exchange for those goods or services. The Company enters into contracts that can include multiple services, which are accounted for separately if they are determined to be distinct. The Company’s revenue consists of sales of the Company’s devices and services related to maintaining and repairing the devices. The agreement for the sale of the devices and the service contract are usually signed at the same time and in some instances a service contract is signed on a stand-alone basis. Revenue for service contracts is recognized over the service contract period on a straight-line basis. The Company determined that in practice no significant discount is given on the service contract when it is offered with the device purchase as compared to when it is sold on a stand-alone basis. The service level provided is identical when the service contract is on a purchased stand-alone basis or together with the device. There is no termination provision in the service contract nor any penalties in practice for cancellation of the service contract The components of disaggregated revenue are as follows: 2020 2019 Product revenue $ 5,449,435 $ 25,109,303 Service revenue 4,127,497 2,153,945 Total revenue $ 9,576,932 $ 27,263,248 The Company operates in a highly regulated environment, primarily in the U.S. dermatology market, in which state regulatory approval is sometimes required prior to the customer being able to use the product. In cases where such regulatory approval is pending, revenue is deferred until such time as regulatory approval is obtained. Deferred revenue activity for 2020 and 2019 is as follows: Product Service Total December 31, 2018 $ 33,000 $ 1,455,757 $ 1,488,757 Revenue recognized (33,000 ) (1,743,817 ) (1,598,159 ) Amounts invoiced - 2,819,243 2,640,585 December 31, 2019 - 2,531,183 2,531,183 Revenue recognized - (2,860,283 ) (2,860,283 ) Amounts invoiced 23,000 2,377,308 2,400,308 December 31, 2020 $ 23,000 $ 2,048,208 $ 2,071,208 The Company does not disclose information about remaining performance obligations of deposits for products that have original expected durations of one year or less. Estimated service revenue to be recognized in the future related to the performance obligations that are unsatisfied (or partially unsatisfied) as of December 31, 2020 is as follows: Year Service 2021 $ 1,468,916 2022 446,291 2023 81,667 2024 51,334 Total $ 2,048,208 The Company provides warranties, generally for one year, in conjunction with the sale of its product. These warranties entitle the customer to repair, replacement, or modification of the defective product subject to the terms of the respective warranty. The Company records an estimate of future warranty claims at the time the Company recognizes revenue from the sale of the device based upon management’s estimate of the future claims rate. Shipping and handling costs are expensed as incurred and are included in cost of sales. |
CONCENTRATION OF CREDIT RISK | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalents, accounts receivable and investments in debt securities. The Company places its cash and cash equivalents with highly rated financial institutions. |
Segment and Geographical Information | Segment and Geographical Information The Company’s revenue is generated primarily from customers in the U.S., which represented approximately 97% and 92% of revenue for the years ended December 31, 2020 and 2019, respectively. One customer in the U.S. accounted for approximately 40% and 68% of revenue for the years ended December 31, 2020 and 2019, respectively, and 56% and 79% of the accounts receivable as of December 31, 2020 and 2019, respectively. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Carrying amounts of cash equivalents, accounts receivable, accounts payable and revolving credit facility approximate fair value due to their relative short maturities. |
Fair Value Measurements | Fair Value Measurements The Company uses a fair value hierarchy that prioritizes inputs to valuation approaches used to measure fair value. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. Assets and liabilities measured and reported at fair value are classified and disclosed in one of the following categories: Level 1 Inputs: Quoted prices (unadjusted) in active markets for identical assets or liabilities at the reporting date. • Level 1 assets may include listed mutual funds, ETFs and listed equities Level 2 Inputs: Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities that are not active; quotes from pricing services or brokers for which the Company can determine that orderly transactions took place at the quoted price or that the inputs used to arrive at the price are observable; and inputs other than quoted prices that are observable, such as models or other valuation methodologies. • Level 2 assets may include debt securities and foreign currency exchange contracts that have inputs to the valuations that generally can be corroborated by observable market data. Level 3 Inputs: Unobservable inputs for the valuation of the asset or liability, which may include nonbinding broker quotes. Level 3 assets include investments for which there is little, if any, market activity. These inputs require significant management judgment or estimation. Significance of Inputs. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument. |
Foreign Currency | Foreign Currency The Company’s foreign operation functional currency is the U.S. dollar. The Company considers its Israel subsidiary an extension of the parent company operations in the United States. The cash flow in the foreign operation depends primarily on the funding by the parent company. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents primarily consists of cash, money market funds and short-term, highly liquid investments with original maturities of three months or less. For purposes of the statements of cash flows, the Company considers all highly liquid financial instruments with a maturity of three months or less when purchased to be a cash equivalent. |
INVESTMENTS | Investments Short-term investments consist of investments which the Company expects to convert into cash within one year, and long-term investments are those that the Company expects to convert to cash after one year. The Company classifies its investments in debt securities (level 2) at the time of purchase as held-to-maturity and re-evaluates such classification on a quarterly basis. Held-to-maturity investments consist of securities that the Company has the intent and ability to retain until maturity. At December 31, 2019, these securities were carried at amortized cost plus accrued interest and consist of the following: Amortized Gross Gross Fair Short Term: Corporate bonds $ 6,690,678 $ 4,251 $ — $ 6,694,929 United States Treasury bonds 698,729 1,302 — 700,031 Total Investments December 31, 2019 $ 7,389,407 $ 5,553 $ — $ 7,394,960 At December 31, 2020, the Company did not have any short-term investments. |
Accounts Receivable | Accounts Receivable The Company does business and extends credit based on an evaluation of each customer’s financial condition, generally without requiring collateral. Exposure to losses on receivables is expected to vary by customer due to the financial condition of each customer. The Company monitors exposure to credit losses and maintains allowances for anticipated losses considered necessary under the circumstances. The allowance for doubtful accounts was approximately $24,000 and $80,000 as of December 31, 2020 and 2019, respectively. Bad debt expense for the years ended December 31, 2020 and 2019 were approximately $24,000 and $350,000, respectively. |
Inventories | Inventories Inventories consist of finished product and components and are stated at the lower of cost and net realizable value, determined using the first-in-first-out method. |
Earnings Per Share | Earnings Per Share Basic net income (loss) per share is calculated by dividing the net income (loss) by the weighted-average number of common shares outstanding for the period using the treasury stock method for options and warrants. Diluted net income per share is computed by giving effect to all potential dilutive common share equivalents outstanding for the period. In periods when the Company has incurred a net loss, options and warrants to purchase common shares are considered common share equivalents but have been excluded from the calculation of diluted net loss per share as their effect is antidilutive. Shares excluded were computed under the treasury stock method as follows: For the Years Ended 2020 2019 Stock options - 15,776 Restricted shares 106 11,186 |
Equity-Based Compensation | Equity-Based Compensation Pursuant to relevant accounting guidance related to accounting for equity-based compensation, the Company is required to recognize all share-based payments to non-employees and employees in the financial statements based on grant-date fair values. The Company has accounted for issuances of shares, options, and warrants in accordance with the guidance, which requires the recognition of expense, based on grant-date fair values, over the service period, generally periods over which the shares, options and warrants vest. |
Advertising Costs | Advertising Costs Advertising and promotion costs are charged to expense as incurred. Advertising and promotion costs included in selling and marketing expense in the accompanying statements of operations amounted to approximately $515,000 and $1,321,000 for the years ended December 31, 2020 and 2019, respectively. |
Leases | Leases The Company evaluates arrangements at inception to determine if an arrangement is or contains a lease. Operating lease assets represent the Company’s right to control an underlying asset for the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Control of an underlying asset is conveyed to the Company if the Company obtains the rights to direct the use of and to obtain substantially all of the economic benefits from using the underlying asset. Operating lease assets and liabilities are recognized at the commencement date of the lease based upon the present value of lease payments over the lease term. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company uses an incremental borrowing rate that the Company would expect to incur for a fully collateralized loan over a similar term under similar economic conditions to determine the present value of the lease payments. The Company has lease agreements which include lease and non-lease components, which the Company has elected to account for as a single lease component for all classes of underlying assets. The lease payments used to determine the Company’s operating lease assets may include lease incentives and stated rent increases and are recognized in the Company’s operating lease assets in the Company’s consolidated balance sheets. Operating lease assets are amortized to rent expense over the lease term and included in operating expenses in the consolidated statements of operations. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of disaggregation of Revenue | 2020 2019 Product revenue $ 5,449,435 $ 25,109,303 Service revenue 4,127,497 2,153,945 Total revenue $ 9,576,932 $ 27,263,248 |
Schedule of deferred revenue | Product Service Total December 31, 2018 $ 33,000 $ 1,455,757 $ 1,488,757 Revenue recognized (33,000 ) (1,743,817 ) (1,598,159 ) Amounts invoiced - 2,819,243 2,640,585 December 31, 2019 - 2,531,183 2,531,183 Revenue recognized - (2,860,283 ) (2,860,283 ) Amounts invoiced 23,000 2,377,308 2,400,308 December 31, 2020 $ 23,000 $ 2,048,208 $ 2,071,208 |
Schedule of estimated service revenue recognized | Year Service 2021 $ 1,468,916 2022 446,291 2023 81,667 2024 51,334 Total $ 2,048,208 |
Schedule of investment | Amortized Gross Gross Fair Short Term: Corporate bonds $ 6,690,678 $ 4,251 $ — $ 6,694,929 United States Treasury bonds 698,729 1,302 — 700,031 Total Investments December 31, 2019 $ 7,389,407 $ 5,553 $ — $ 7,394,960 |
Schedule of antidilutive | For the Years Ended 2020 2019 Stock options - 15,776 Restricted shares 106 11,186 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of assets acquired and liabilities assumed | Fair Value Accounts receivable $ 38,483 Property and equipment 528,300 Finite-lived intangible assets: Trade names 22,218 Customer relationships 86,737 Other liabilities assumed (87,727 ) Bargain purchase gain $ 588,011 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | As of December 31, Estimated 2020 2019 life-in years Operations and rental equipment $ 2,177,892 $ 1,280,209 3 Tradeshow and demo equipment 922,866 914,891 3 Computer equipment 119,237 117,596 3 3,219,995 2,312,696 Less accumulated depreciation (1,864,164 ) (1,230,268 ) Property and Equipment, Net $ 1,355,831 $ 1,082,428 |
Intangibles (Tables)
Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | Patent Customer Trade Total December 31, 2019 $ 337,351 $ — $ — $ 337,351 Acquired assets — 86,737 22,218 108,955 Amortization expense (96,386 ) (2,780 ) (9,258 ) (108,424 ) December 31, 2020 $ 240,965 $ 83,957 $ 12,960 $ 337,882 |
Schedule of amortization expense | For the Year Ending December 31, 2021 $ 116,019 2022 103,058 2023 54,865 2024 6,672 2025 6,672 |
Product Warranties (Tables)
Product Warranties (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Product Warranties Disclosures [Abstract] | |
Schedule of changes in product warranty liability | Balance, December 31, 2019 $ 187,454 Warranties accrued during the period 295,735 Payments on warranty claims (296,138 ) Balance, December 31, 2020 $ 187,051 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease payments for operating leases | Maturity of Operating Lease Liabilities Amount 2021 $ 348,122 2022 284,578 2023 104,343 2024 105,843 2025 107,942 Thereafter 386,789 Total undiscounted operating leases payments $ 1,337,617 Less: Imputed interest (222,088 ) Present Value of Operating Lease Liabilities $ 1,115,529 Other Information Weighted-average remaining lease term 6.0 years Weighted-average discount rate 5.0 % |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of warrant activity | Warrants Number of Weighted Weighted Outstanding – December 31, 2019 2,032,187 $ 6.75 0.51 Granted — — — Exercised (83 ) — — Expired (1,894,104 ) — — Outstanding – December 31, 2020 138,000 $ 6.75 0.44 Exercisable – December 31, 2020 138,000 $ 6.75 0.44 |
Schedule of restricted activity | Outstanding at Shares Weighted- December 31, 2019 80,417 $ 5.70 Granted 35,000 4.11 Vested (66,667 ) 5.24 Forfeited (11,250 ) 8.58 December 31, 2020 37,500 $ 4.17 |
Schedule of option activity | Number of Weighted Weighted Outstanding – December 31, 2019 229,334 $ 5.55 8.07 Granted — — — Exercised — — — Expired — — — Outstanding – December 31, 2020 229,334 $ 5.55 7.07 Exercisable – December 31, 2020 229,334 5.55 7.07 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax provision (benefit) | For the Years Ended December 31, 2020 2019 Current – federal - - Current – state - - Deferred – federal (1,278,745 ) (601,575 ) Deferred –state (199,266 ) (494,982 ) Deferred – international (61,293 ) (43,303 ) (1,539,304 ) (1,139,860 ) Change in valuation allowance 1,539,304 1,139,860 Income tax provision (benefit) $ - $ - |
Schedule of expected tax expense (benefit) based on the statutory rate is reconciled with the actual tax expense (benefit) | For the Years Ended December 31, 2020 2019 U.S. federal statutory rate (21.0 )% (21.0 )% State taxes, net of federal benefit (5.8 )% (6.1 )% Foreign rate differential (0.1 )% (0.2 )% Permanent differences (1.9 )% 3.2 % Change in tax rates 0.3 % (1.9 )% Return-to-provision adjustments 0.6 % (4.0 )% Tax credits 5.2 % (37.1 )% Other - - % Change in valuation allowance 22.5 % 67.1 % Income tax provision (benefit) 0.0 % 0.0 % |
Schedule of company's net deferred tax asset | December 31, 2020 2019 Net operating losses $ 3,683,102 $ 1,701,503 Stock-based compensation 190,202 183,911 Depreciation and amortization (236,312 ) (94,400 ) Accrued expenses and reserves 106,337 195,321 Prepaid expenses (23,230 ) (3,893 ) Customer deposits 216,184 60,759 Tax credit 824,353 1,176,852 Charitable Contributions 36,752 37,468 Lease Accounting (2,061 ) - Other, net 1,703 204 Deferred tax asset, net 4,797,030 3,257,725 Valuation allowance (4,797,030 ) (3,257,725 ) Deferred tax asset, net of valuation allowance - - |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Organization and Summary of Significant Accounting Policies (Details) [Line Items] | ||
Allowance for doubtful accounts receivable, current | $ 24,000 | $ 80,000 |
Bad debt expense (recoveries) | 24,000 | 350,000 |
Inventory units designated for customer demonstrations | 0 | 240,000 |
Advertising and promotion expense | $ 515,000 | $ 1,321,000 |
United States [Member] | ||
Organization and Summary of Significant Accounting Policies (Details) [Line Items] | ||
Revenue percent | 97.00% | 92.00% |
United States [Member] | Customer [Member] | ||
Organization and Summary of Significant Accounting Policies (Details) [Line Items] | ||
Revenue percent | 40.00% | 68.00% |
Number of customers | 1 | |
United States [Member] | Customer [Member] | Accounts Receivable [Member] | ||
Organization and Summary of Significant Accounting Policies (Details) [Line Items] | ||
Revenue percent | 56.00% | 79.00% |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies (Details) - Schedule of disaggregation of Revenue - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Organization and Summary of Significant Accounting Policies (Details) - Schedule of disaggregation of Revenue [Line Items] | ||
Total Revenue | $ 9,576,932 | $ 27,263,248 |
Product revenue [Member] | ||
Organization and Summary of Significant Accounting Policies (Details) - Schedule of disaggregation of Revenue [Line Items] | ||
Total Revenue | 5,449,435 | 25,109,303 |
Service revenue [Member] | ||
Organization and Summary of Significant Accounting Policies (Details) - Schedule of disaggregation of Revenue [Line Items] | ||
Total Revenue | $ 4,127,497 | $ 2,153,945 |
Organization and Summary of S_5
Organization and Summary of Significant Accounting Policies (Details) - Schedule of deferred revenue - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Organization and Summary of Significant Accounting Policies (Details) - Schedule of deferred revenue [Line Items] | ||
Balance, beginning of period | $ 2,531,183 | $ 1,488,757 |
Revenue recognized | (2,860,283) | (1,598,159) |
Amounts invoiced | 2,400,308 | 2,640,585 |
Balance, end of period | 2,071,208 | 2,531,183 |
Product [Member] | ||
Organization and Summary of Significant Accounting Policies (Details) - Schedule of deferred revenue [Line Items] | ||
Balance, beginning of period | 33,000 | |
Revenue recognized | (33,000) | |
Amounts invoiced | 23,000 | |
Balance, end of period | 23,000 | |
Service [Member] | ||
Organization and Summary of Significant Accounting Policies (Details) - Schedule of deferred revenue [Line Items] | ||
Balance, beginning of period | 2,531,183 | 1,455,757 |
Revenue recognized | (2,860,283) | (1,743,817) |
Amounts invoiced | 2,377,308 | 2,819,243 |
Balance, end of period | $ 2,048,208 | $ 2,531,183 |
Organization and Summary of S_6
Organization and Summary of Significant Accounting Policies (Details) - Schedule of estimated service revenue recognized | Dec. 31, 2020USD ($) |
Schedule of estimated service revenue recognized [Abstract] | |
2021 | $ 1,468,916 |
2022 | 446,291 |
2023 | 81,667 |
2024 | 51,334 |
Total | $ 2,048,208 |
Organization and Summary of S_7
Organization and Summary of Significant Accounting Policies (Details) - Schedule of investment | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Corporate bonds [Member] | |
Short Term: | |
Amortized Cost | $ 6,690,678 |
Gross Unrealized Gain | 4,251 |
Gross Unrealized Loss | |
Fair Value | 6,694,929 |
United States Treasury bonds [Member] | |
Short Term: | |
Amortized Cost | 698,729 |
Gross Unrealized Gain | 1,302 |
Gross Unrealized Loss | |
Fair Value | 700,031 |
Total Investments [Member] | |
Short Term: | |
Amortized Cost | 7,389,407 |
Gross Unrealized Gain | 5,553 |
Gross Unrealized Loss | |
Fair Value | $ 7,394,960 |
Organization and Summary of S_8
Organization and Summary of Significant Accounting Policies (Details) - Schedule of antidilutive - shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Stock options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 15,776 | |
Restricted shares [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 106 | 11,186 |
Acquisitions (Details)
Acquisitions (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Acquisitions (Details) [Line Items] | |
Aggregate purchase price | $ 999,000 |
Bargain purchase gain | 588,011 |
Gross profit | $ 166,000 |
Minimum [Member] | |
Acquisitions (Details) [Line Items] | |
Finite-lived intangible assets estimated useful life | 1 year |
Maximum [Member] | |
Acquisitions (Details) [Line Items] | |
Finite-lived intangible assets estimated useful life | 13 years |
Acquisitions (Details) - Schedu
Acquisitions (Details) - Schedule of assets acquired and liabilities assumed | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Schedule of assets acquired and liabilities assumed [Abstract] | |
Accounts receivable | $ 38,483 |
Property and equipment | 528,300 |
Finite-lived intangible assets: | |
Trade names | 22,218 |
Customer relationships | 86,737 |
Other liabilities assumed | (87,727) |
Bargain purchase gain | $ 588,011 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 613,000 | $ 449,000 |
Accumulated depreciation on asset disposals | $ 74,000 |
Property and Equipment (Detai_2
Property and Equipment (Details) - Schedule of property and equipment - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 3,219,995 | $ 2,312,696 |
Less accumulated depreciation | (1,864,164) | (1,230,268) |
Property and Equipment, Net | 1,355,831 | 1,082,428 |
Operations and rental equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 2,177,892 | 1,280,209 |
Property, plant and equipment, useful Life | 3 years | |
Tradeshow and demo equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 922,866 | 914,891 |
Property, plant and equipment, useful Life | 3 years | |
Computer equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 119,237 | $ 117,596 |
Property, plant and equipment, useful Life | 3 years |
Intangibles (Details)
Intangibles (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Intangibles (Details) [Line Items] | ||
Amortization expense | $ 108,000 | $ 96,000 |
Maximum [Member] | ||
Intangibles (Details) [Line Items] | ||
Weighted average infinite assets estimated lives | 13 years | |
Minimum [Member] | ||
Intangibles (Details) [Line Items] | ||
Weighted average infinite assets estimated lives | 1 year |
Intangibles (Details) - Schedul
Intangibles (Details) - Schedule of intangible assets | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |
Beginning balance | $ 337,351 |
Acquired assets | 108,955 |
Amortization expense | (108,424) |
Ending balance | 337,882 |
Patent Rights [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Beginning balance | 337,351 |
Acquired assets | |
Amortization expense | (96,386) |
Ending balance | 240,965 |
Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Beginning balance | |
Acquired assets | 86,737 |
Amortization expense | (2,780) |
Ending balance | 83,957 |
Trade Names [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Beginning balance | |
Acquired assets | 22,218 |
Amortization expense | (9,258) |
Ending balance | $ 12,960 |
Intangibles (Details) - Sched_2
Intangibles (Details) - Schedule of amortization expense | Dec. 31, 2020USD ($) |
Schedule of amortization expense [Abstract] | |
2021 | $ 116,019 |
2022 | 103,058 |
2023 | 54,865 |
2024 | 6,672 |
2025 | $ 6,672 |
Debt (Details)
Debt (Details) - USD ($) | 1 Months Ended | 12 Months Ended |
Apr. 20, 2020 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | ||
Revolving credit facility, description | The Company has a revolving credit facility that, through April 2020, provided for maximum borrowings equal to the lesser of (a) the $5 million commitment amount or (b) a borrowing base equal to 80% of eligible accounts receivable plus a $2.5 million non-formula sublimit. In October 2019, the term of the facility was extended through January 29, 2020; in January 2020, the term was further extended through April 28, 2020; and in April 2020, the term was further extended to April 1, 2022 and the maximum borrowings were increased to the lesser of (a) the $10 million commitment amount or (b) the borrowing base plus a $3 million non-formula sublimit. | |
Interest on borrowing, description | Interest on any borrowings, at Prime plus 0.75% (4.00% at December 31, 2020) and Prime plus 1.50% on non-formula borrowings (4.75% at December 31, 2020), is payable monthly, and the outstanding principal and interest are due on the maturity date. | |
Line of credit facility, unused capacity, commitment fee percentage | 0.25% | |
Employee compensation | $ 1,022,785 | |
Maturity, description | The loan matures in April 2022 and provides for interest at the rate of 1% per annum. | |
Payroll and other expenses | $ 757,782 |
Product Warranties (Details) -
Product Warranties (Details) - Schedule of changes in product warranty liability | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Schedule of changes in product warranty liability [Abstract] | |
Balance, beginning of period | $ 187,454 |
Warranties accrued during the period | 295,735 |
Payments on warranty claims | (296,138) |
Balance, end of period | $ 187,051 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Rou asset non-cash | $ 805,000 | |
ROU assets reduced value | 324,000 | $ 330,000 |
Operating lease liabilities | 359,000 | 310,000 |
Operating lease cost | 373,000 | 351,000 |
Payments to suppliers | 2,474,000 | 5,786,000 |
Accounts payable and accrued expenses | $ 697,000 | $ 1,104,000 |
Commitment and Contingencies _2
Commitment and Contingencies (Details) - Schedule of future minimum lease payments for operating leases | Dec. 31, 2020USD ($) |
Schedule of future minimum lease payments for operating leases [Abstract] | |
2021 | $ 348,122 |
2022 | 284,578 |
2023 | 104,343 |
2024 | 105,843 |
2025 | 107,942 |
Thereafter | 386,789 |
Total undiscounted operating leases payments | 1,337,617 |
Less: Imputed interest | (222,088) |
Present Value of Operating Lease Liabilities | $ 1,115,529 |
Other Information | |
Weighted-average remaining lease term | 6 years |
Weighted-average discount rate | 5.00% |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits (Details) [Line Items] | ||
Expenses related to employee benefit plan | $ 125,000 | $ 123,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2016 | |
Stockholders' Equity (Details) [Line Items] | |||
Common stock, authorized | 50,000,000 | 50,000,000 | |
Common stock, issued | 16,564,311 | 16,540,478 | |
Common stock,outstanding | 16,491,103 | 16,485,780 | |
Number of warrant outstanding | 138,000 | 2,032,187 | 2,300,000 |
Warrant exercise price (in Dollars per share) | $ 6.75 | $ 6.75 | $ 6.75 |
Exercised | (83) | ||
Number of warrant granted | |||
Intrinsic value of common stock warrants (in Dollars) | $ 0 | $ 0 | |
Intrinsic value of stock options (in Dollars) | 0 | 0 | |
Reduction of stock compensation expense value forfeited (in Dollars) | 24,000 | $ 8,000 | |
Unrecognized stock compensation expense (in Dollars) | $ 331,000 | ||
Recognized over weighted average | 1 year 9 months | ||
Treasury stock | 73,208 | 54,698 | |
2016 Equity Incentive Plan [Member] | |||
Stockholders' Equity (Details) [Line Items] | |||
Number of authorized shares under the plan | 397,473 | ||
2017 Equity Incentive Plan [Member] | |||
Stockholders' Equity (Details) [Line Items] | |||
Number of authorized shares under the plan | 500,000 | ||
Warrants [Member] | |||
Stockholders' Equity (Details) [Line Items] | |||
Exercised | 405,813 | ||
Warrants [Member] | IPO [Member] | Underwriters Representatives [Member] | |||
Stockholders' Equity (Details) [Line Items] | |||
Number of warrant granted | 138,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - Schedule of warrant activity | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Schedule of warrant activity [Abstract] | |
Number of Warrants, Outstanding at beginning | shares | 2,032,187 |
Weighted Average Exercise Price, Outstanding at beginning | $ / shares | $ 6.75 |
Weighted Average Remaining Contractual Term, Outstanding at beginning | 186 days |
Number of Warrants, Outstanding at ending | shares | 138,000 |
Weighted Average Exercise Price, Outstanding at ending | $ / shares | $ 6.75 |
Weighted Average Remaining Contractual Term, Outstanding at ending | 160 days |
Number of Warrants, Exercisable at end | shares | 138,000 |
Weighted Average Exercise Price, Exercisable at ending | $ / shares | $ 6.75 |
Weighted Average Remaining Contractual Term, Exercisable at ending | 160 days |
Number of Warrants, Granted | shares | |
Weighted Average Exercise Price, Granted | $ / shares | |
Weighted Average Remainning Contractual Term, Granted | |
Number of Warrants, Exercised | shares | (83) |
Weighted Average Exercise Price, Exercised | $ / shares | |
Weighted Average Remainning Contractual Term. Exercised | |
Number of Warrants, Expired | shares | (1,894,104) |
Weighted Average Exercise Price, Expired | $ / shares | |
Weighted Average Remainning Contractual Term, Expired |
Stockholders' Equity (Details_2
Stockholders' Equity (Details) - Schedule of restricted activity | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Schedule of restricted activity [Abstract] | |
Shares, balance at beginning | shares | 80,417 |
Weighted Average Grant Date Fair Value, balance at beginning | $ / shares | $ 5.70 |
Shares, Unvested balance at end | shares | 37,500 |
Weighted Average Grant Date Fair Value, balance at end | $ / shares | $ 4.17 |
Shares, Granted | shares | 35,000 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | $ 4.11 |
Shares, Vested | shares | (66,667) |
Weighted Average Grant Date Fair Value, Vested | $ / shares | $ 5.24 |
Shares, Forfeited | shares | (11,250) |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | $ 8.58 |
Stockholders' Equity (Details_3
Stockholders' Equity (Details) - Schedule of option activity | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Schedule of option activity [Abstract] | |
Number of Options, Outstanding at beginning shares | 229,334 |
Weighted Average Exercise, Outstanding at beginning (in Dollars per share) | $ / shares | $ 5.55 |
Weighted Average Remaining Contractual Term, Outstanding at beginning | 8 years 25 days |
Number of Options, Outstanding at end shares | 229,334 |
Weighted Average Exercise, Outstanding at end (in Dollars per share) | $ / shares | $ 5.55 |
Weighted Average Remaining Contractual Term, Outstanding at end | 7 years 25 days |
Number of Options, Exercisable | 229,334 |
Weighted Average Exercise, Exercisable (in Dollars per share) | $ / shares | $ 5.55 |
Weighted Average Remaining Contractual Term, Exercisable at end | 7 years 25 days |
Number of Options, Granted | |
Weighted Average Exercise, Granted (in Dollars per share) | $ / shares | |
Weighted Average Remaining Contractual Term, Granted | |
Number of Options, Exercised | |
Weighted Average Exercise, Exercised (in Dollars per share) | $ / shares | |
Weighted Average Remaining Contractual Term, Exercised (in Dollars per share) | $ / shares | |
Number of Options, Expired | |
Weighted Average Exercise, Expired (in Dollars per share) | $ / shares | |
Weighted Average Remaining Contractual Term, Expired |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Federal tax net operating loss carryforwards | $ 12,943,000 | |
State net operating loss carryforwards | $ 14,107,000 | |
Operating loss carryforward, description | The net operating loss carryforward generated after December 31, 2017 will never expire for federal purposes but can only reduce 80% of taxable income in future years. | |
Tax credit carryforwards | $ 824,000 | |
Change in valuation allowance | 1,540,000 | $ 1,140,000 |
PPP Loan amount | $ 757,782 |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of income tax provision (benefit) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of income tax provision (benefit) [Abstract] | ||
Current – federal | ||
Current – state | ||
Deferred – federal | (1,278,745) | (601,575) |
Deferred –state | (199,266) | (494,982) |
Deferred – international | (61,293) | (43,303) |
Total | (1,539,304) | (1,139,860) |
Change in valuation allowance | 1,539,304 | 1,139,860 |
Income tax provision (benefit) |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of expected tax expense (benefit) based on the statutory rate is reconciled with the actual tax expense (benefit) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of expected tax expense (benefit) based on the statutory rate is reconciled with the actual tax expense (benefit) [Abstract] | ||
U.S. federal statutory rate | (21.00%) | (21.00%) |
State taxes, net of federal benefit | (5.80%) | (6.10%) |
Foreign rate differential | (0.10%) | (0.20%) |
Permanent differences | (1.90%) | 3.20% |
Change in tax rates | 0.30% | (1.90%) |
Return-to-provision adjustments | 0.60% | (4.00%) |
Tax credits | 5.20% | (37.10%) |
Other | ||
Change in valuation allowance | 22.50% | 67.10% |
Income tax provision (benefit) | 0.00% | 0.00% |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of company's net deferred tax asset - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of company's net deferred tax asset [Abstract] | ||
Net operating losses | $ 3,683,102 | $ 1,701,503 |
Stock-based compensation | 190,202 | 183,911 |
Depreciation and amortization | (236,312) | (94,400) |
Accrued expenses and reserves | 106,337 | 195,321 |
Prepaid expenses | (23,230) | (3,893) |
Customer deposits | 216,184 | 60,759 |
Tax credit | 824,353 | 1,176,852 |
Charitable Contributions | 36,752 | 37,468 |
Lease Accounting | (2,061) | |
Other, net | 1,703 | 204 |
Deferred tax asset, net | 4,797,030 | 3,257,725 |
Valuation allowance | (4,797,030) | (3,257,725) |
Deferred tax asset, net of valuation allowance |