Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 27, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-41276 | |
Entity Registrant Name | SKYX Platforms Corp. | |
Entity Central Index Key | 0001598981 | |
Entity Tax Identification Number | 46-3645414 | |
Entity Incorporation, State or Country Code | FL | |
Entity Address, Address Line One | 2855 W. McNab Road | |
Entity Address, City or Town | Pompano Beach | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33069 | |
City Area Code | (855) | |
Local Phone Number | 759-7584 | |
Title of 12(b) Security | Common Stock, no par value per share | |
Trading Symbol | SKYX | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 82,747,026 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 10,828,656 | $ 10,426,249 |
Investments, available-for-sale | 7,332,800 | |
Inventory | 1,468,476 | 918,651 |
Prepaid expenses and other assets | 836,382 | 41,018 |
Total current assets | 20,466,314 | 11,385,918 |
Long-term assets: | ||
Furniture and equipment, net | 236,935 | 25,710 |
Patents, net | 639,924 | 540,033 |
Restricted cash | 2,741,054 | |
Right-of-use asset | 23,511,004 | |
Other assets | 163,533 | 2,174 |
Total long-term assets | 27,292,450 | 567,917 |
Total Assets | 47,758,764 | 11,953,835 |
Current liabilities: | ||
Accounts payable and accrued expenses | 1,926,592 | 1,029,336 |
Notes payable, current | 401,049 | 404,648 |
Operating lease liabilities | 412,834 | |
Royalty obligations | 2,775,000 | 1,200,000 |
Total current liabilities | 5,515,475 | 2,633,984 |
Long term liabilities: | ||
Notes payable | 5,115,417 | 5,492,572 |
Operating lease liabilities | 23,179,912 | |
Convertible notes | 1,300,000 | 1,300,000 |
Royalty obligations | 163,000 | 2,638,000 |
Total long-term liabilities | 29,758,329 | 9,430,572 |
Total liabilities | 35,273,804 | 12,064,556 |
Commitments and Contingent Liabilities: | ||
Redeemable preferred stock - subject to redemption: $0 par value; 20,000,000 shares authorized; 880,400 and 13,256,936 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively | 220,099 | 3,314,233 |
Stockholders’ Equity (Deficit): | ||
Common stock and additional paid-in-capital: $0 par value, 500,000,000 shares authorized; and 82,556,065 and 66,295,288 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively | 113,565,311 | 70,880,386 |
Accumulated deficit | (101,191,633) | (74,269,898) |
Accumulated other comprehensive (loss) | (108,817) | |
Total stockholders’ equity (deficit) | 12,264,861 | (3,389,512) |
Non-controlling interest | (35,442) | |
Total equity (deficit) | 12,264,861 | (3,424,954) |
Total Liabilities and Stockholders’ Equity (Deficit) | $ 47,758,764 | $ 11,953,835 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Temporary equity, par value | $ 0 | $ 0 |
Temporary equity, shares authorized | 20,000,000 | 20,000,000 |
Temporary equity, shares issued | 880,400 | 13,256,936 |
Temporary equity, shares outstanding | 880,400 | 13,256,936 |
Common stock, par value | $ 0 | $ 0 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 82,556,065 | 66,295,288 |
Common stock, shares outstanding | 82,556,065 | 66,295,288 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Revenue | $ 8,556 | $ 22,916 | $ 100,185 | |
Cost of revenues | (5,914) | (17,676) | (82,508) | |
Gross income (loss) | 2,642 | 5,240 | 17,677 | |
Selling, general and administrative expenses | 5,609,119 | 1,428,911 | 22,121,647 | 3,258,920 |
(Loss) from operations | (5,606,477) | (1,428,911) | (22,116,407) | (3,241,243) |
Other income / (expense) | ||||
Interest expense, net | (52,189) | (144,180) | (224,610) | (425,288) |
Other income, Loan forgiveness | 10,000 | 178,250 | 10,000 | |
Gain on exchange | 7,886 | |||
Total other income (expense), net | (52,189) | (134,180) | (46,360) | (407,402) |
Net loss | (5,658,666) | (1,563,091) | (22,162,767) | (3,648,645) |
Common stock issued pursuant to antidilutive provisions | 4,691,022 | |||
Preferred dividends | 4,627 | 32,552 | 32,504 | 97,655 |
Net loss attributed to common shareholders | (5,663,293) | (1,595,643) | (26,886,293) | (3,746,300) |
Other comprehensive (loss): | ||||
Unrealized losses on debt securities | (108,817) | (108,817) | ||
Net comprehensive loss attributed to common shareholders | $ (5,772,110) | $ (1,595,643) | $ (26,995,110) | $ (3,746,300) |
Net loss per share - basic and diluted | $ (0.07) | $ (0.02) | $ (0.28) | $ (0.06) |
Weighted average number of common shares outstanding – basic and diluted | 81,562,681 | 65,016,945 | 78,350,946 | 64,897,859 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) - USD ($) | Common Stock [Member] | Common Stock Including Additional Paid in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Parent [Member] |
Beginning balance, shares at Dec. 31, 2020 | 64,515,231 | ||||
Beginning balance at Dec. 31, 2020 | $ 56,197,957 | $ (68,410,028) | |||
Common stock issued pursuant to offerings, shares | 231,624 | ||||
Common stock issued pursuant to services, shares | 190,000 | ||||
Common stock issued pursuant to conversion of preferred stock, shares | 200,000 | ||||
Common stock issued pursuant to exercise of options, shares | |||||
Common stock issued pursuant to cashless exercise of warrants, shares | 21,250 | ||||
Common stock issued pursuant to antidilutive provisions, shares | |||||
Common stock issued pursuant to offerings | 2,779,464 | ||||
Common stock issued pursuant to services | 570,000 | ||||
Common stock issued pursuant to conversion of preferred stock | 136,192 | ||||
Stock-based compensation | 172,386 | ||||
Common stock issued pursuant to exercise of options | |||||
Common stock issued pursuant to antidilutive provisions | |||||
Net loss | (3,648,645) | ||||
Reclassification of Non-controlling interest | |||||
Preferred dividends | (97,655) | ||||
Other comprehensive loss | |||||
Ending balance, shares at Sep. 30, 2021 | 65,158,105 | ||||
Ending balance at Sep. 30, 2021 | 59,855,999 | (72,156,328) | (12,300,329) | ||
Beginning balance, shares at Jun. 30, 2021 | 65,006,438 | ||||
Beginning balance at Jun. 30, 2021 | 59,164,807 | (70,560,685) | |||
Common stock issued pursuant to offerings, shares | 16,667 | ||||
Common stock issued pursuant to services, shares | 135,000 | ||||
Common stock issued pursuant to conversion of preferred stock, shares | |||||
Common stock issued pursuant to exercise of options, shares | |||||
Common stock issued pursuant to cashless exercise of warrants, shares | |||||
Common stock issued pursuant to antidilutive provisions, shares | |||||
Common stock issued pursuant to offerings | 200,000 | ||||
Common stock issued pursuant to services | 405,000 | ||||
Common stock issued pursuant to conversion of preferred stock | 86,192 | ||||
Stock-based compensation | |||||
Common stock issued pursuant to exercise of options | |||||
Common stock issued pursuant to antidilutive provisions | |||||
Net loss | (1,563,091) | ||||
Reclassification of Non-controlling interest | |||||
Preferred dividends | (32,552) | ||||
Other comprehensive loss | |||||
Ending balance, shares at Sep. 30, 2021 | 65,158,105 | ||||
Ending balance at Sep. 30, 2021 | 59,855,999 | (72,156,328) | (12,300,329) | ||
Beginning balance, shares at Dec. 31, 2021 | 66,295,288 | ||||
Beginning balance at Dec. 31, 2021 | 70,880,386 | (74,269,898) | |||
Common stock issued pursuant to offerings, shares | 1,650,000 | ||||
Common stock issued pursuant to services, shares | 865,528 | ||||
Common stock issued pursuant to conversion of preferred stock, shares | 12,376,536 | ||||
Common stock issued pursuant to exercise of options, shares | 616,890 | ||||
Common stock issued pursuant to cashless exercise of warrants, shares | 416,750 | ||||
Common stock issued pursuant to antidilutive provisions, shares | 335,073 | ||||
Common stock issued pursuant to offerings | 20,552,000 | ||||
Common stock issued pursuant to services | 7,671,609 | ||||
Common stock issued pursuant to conversion of preferred stock | 3,094,134 | ||||
Stock-based compensation | 6,285,536 | ||||
Common stock issued pursuant to exercise of options | 390,624 | ||||
Common stock issued pursuant to antidilutive provisions | 4,691,022 | (4,691,022) | |||
Net loss | (22,162,767) | ||||
Reclassification of Non-controlling interest | (35,442) | ||||
Preferred dividends | (32,504) | ||||
Other comprehensive loss | (108,817) | ||||
Ending balance, shares at Sep. 30, 2022 | 82,556,065 | ||||
Ending balance at Sep. 30, 2022 | 113,565,311 | (101,191,633) | (108,817) | 12,264,861 | |
Beginning balance, shares at Jun. 30, 2022 | 81,053,486 | ||||
Beginning balance at Jun. 30, 2022 | 110,444,367 | (95,528,340) | |||
Common stock issued pursuant to offerings, shares | |||||
Common stock issued pursuant to services, shares | 322,579 | ||||
Common stock issued pursuant to conversion of preferred stock, shares | 1,000,000 | ||||
Common stock issued pursuant to exercise of options, shares | 180,000 | ||||
Common stock issued pursuant to cashless exercise of warrants, shares | |||||
Common stock issued pursuant to antidilutive provisions, shares | |||||
Common stock issued pursuant to offerings | |||||
Common stock issued pursuant to services | 1,504,383 | ||||
Common stock issued pursuant to conversion of preferred stock | 250,000 | ||||
Stock-based compensation | 1,258,562 | ||||
Common stock issued pursuant to exercise of options | 107,999 | ||||
Common stock issued pursuant to antidilutive provisions | |||||
Net loss | (5,658,666) | ||||
Reclassification of Non-controlling interest | |||||
Preferred dividends | (4,627) | ||||
Other comprehensive loss | (108,817) | ||||
Ending balance, shares at Sep. 30, 2022 | 82,556,065 | ||||
Ending balance at Sep. 30, 2022 | $ 113,565,311 | $ (101,191,633) | $ (108,817) | $ 12,264,861 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (22,162,767) | $ (3,648,645) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 194,698 | 63,324 |
Gain on forgiveness of debt | (178,250) | (10,000) |
Non-cash equity-based compensation expense | 13,957,145 | 828,578 |
Change in operating assets and liabilities: | ||
Inventory | (549,825) | |
Prepaid expenses and other assets | (795,365) | (32,166) |
Operating lease liabilities | (28,521) | |
Other assets | (161,358) | |
Royalty obligation | (900,000) | (375,000) |
Accounts payable and accrued expenses | 897,256 | 340,816 |
Net cash used in operating activities | (9,726,987) | (2,833,093) |
Cash flows from investing activities: | ||
Investments, available-for-sale | (7,441,617) | |
Purchase of property and equipment | (257,907) | |
Payment of patent costs | (137,645) | (151,169) |
Net cash used in investing activities | (7,837,169) | (151,169) |
Cash flows from financing activities: | ||
Proceeds from common stock issuance | 23,100,000 | 2,779,464 |
Placement cost | (2,548,000) | |
Proceeds from exercise of options | 390,624 | |
Proceeds from SBA - PPP notes payable | 178,235 | |
Proceeds from issuance of convertible notes | 50,000 | |
Dividends paid | (32,504) | (97,655) |
Principal repayments of notes payable | (202,503) | |
Net cash provided by financing activities | 20,707,617 | 2,910,044 |
Increase in cash and cash equivalents, and restricted cash | 3,143,461 | (74,218) |
Cash and cash equivalents at beginning of period | 10,426,249 | 2,308,871 |
Cash and cash equivalents, and restricted cash at end of period | 13,569,710 | 2,234,653 |
Supplementary disclosure of non-cash financing activities: | ||
Preferred stock conversion to common | 3,094,134 | 50,000 |
Common stock issued pursuant to antidilutive provisions | 4,691,022 | |
Cashless exercise of warrants | 74,375 | |
Right-of-use assets and operating lease liabilities | 23,621,267 | |
Cash paid during the year for: | ||
Interest | $ 303,957 | $ 425,323 |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND NATURE OF OPERATIONS | NOTE 1 ORGANIZATION AND NATURE OF OPERATIONS SKYX Platforms Corp., a corporation (the “Company”), was incorporated in Florida in May 2004. The Company maintains offices in Johns Creek, Georgia, Miami and Pompano Beach, Florida, New York City, and Guangdong Province, China. The Company has a series of advanced-safe-smart platform technologies. The Company’s first-generation technologies enable light fixtures, ceiling fans and other electrically wired products to be installed safely and plugged-in to a ceiling’s electrical outlet box within seconds, and without the need to touch hazardous wires. The plug and play technology method is a universal power-plug device that has a matching receptacle that is simply connected to the electrical outlet box on the ceiling, enabling a safe and quick plug and play installation of light fixtures and ceiling fans in just seconds. The plug and play power-plug technology, eliminates the need of touching hazardous electrical wires while installing light fixtures, ceiling fans and other hard wired electrical products. In recent years the Company has expanded the capabilities of its power-plug product, to include advanced-safe and quick universal installation methods, as well as advanced-smart capabilities. The smart features include control of light fixtures and ceiling fans by the SkyHome App, through WIFI, Bluetooth Low Energy and voice control. It allows scheduling, energy savings eco mode, dimming, back-up emergency light, night light, light color changing and much more. The Company’s second-generation technology is an all-in-one safe and smart-advanced platform that is designed to enhance all-around safety and lifestyle of homes and other buildings. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The following is a summary of the Company’s significant accounting policies: Basis of Presentation The accompanying consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial statements and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required for annual financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The consolidated financial statements as of September 30, 2022 and for the three and nine months ended September 30, 2022 and 2021 are unaudited. The results of operations for the interim periods are not necessarily indicative of the results of operations for the respective fiscal years. The consolidated statement of financial condition at December 31, 2021 has been derived from the audited financial statements at that date but does not include all of the information and notes required by GAAP for complete financial statement presentation. The accompanying consolidated financial information should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 for additional disclosures and accounting policies. Reclassifications For comparability, reclassifications of certain prior-year balances were made in order to conform with current-year presentations, such as grouping of common stock and additional paid-in capital and certain expenses initially included in cost of revenues were reclassified to sales and general and administrative expenses. Cash, Cash Equivalents, and restricted cash The Company considers all highly liquid securities with original maturities of three months or less when acquired, to be cash equivalents. At September 30, 2022 and December 31, 2021, the Company’s cash composition was follows: SCHEDULE OF CASH EQUIVALENTS AND RESTRICTED CASH September 30, December 31, Cash and cash equivalents $ 10,828,656 $ 10,426,249 Restricted cash 2,741,054 — Total cash, cash equivalents and restricted cash $ 13,569,710 $ 10,426,249 Restricted Cash The Company issued a letter of credit of $ 2.7 Securities Debt securities are classified as available-for-sale when they might be sold before maturity. Securities available for sale are carried at fair value, with unrealized holding gains and losses included in accumulated other comprehensive income. Available-for-sale debt securities are recorded at fair value with the net unrealized gains and losses (that are not deemed to be other-than—temporary) reported as a component of other comprehensive income (loss). Realized gains and losses and charges for other-than-temporary impairments are included in determining net income, with related purchase costs based on the first-in, first-out method. The Company evaluates its available-for-sale-investments for possible other-than-temporary impairments by reviewing factors such as the extent to which, and length of time, an investment’s fair value has been below the Company’s cost basis, the issuer’s financial condition, and the Company’s ability and intent to hold the investment for sufficient time for its market value to recover. For impairments that are other-than-temporary, an impairment loss is recognized in earnings equal to the difference between the investment’s cost and its fair value at the balance sheet date of the reporting period for which the assessment is made. The fair value of the investment then becomes the new amortized cost basis of the investment, and it is not adjusted for subsequent recoveries in fair value. Management does not believe that its investment in debt securities are impaired as of September 30, 2022. Corporate and state and local government debt securities consist of debt from relatively large corporate organizations and certain state and local governmental agencies. The Company reviews trading activity and pricing for each of the debt securities in its portfolio as of the measurement date and determines if pricing data of sufficient frequency and volume in an active market exists to support Level I classification of these securities. When sufficient quoted pricing for identical securities is not available, the Company obtains market pricing and other observable market inputs at dates other than the measurement dates. As a result, the Company classifies its debt securities as Level I and Level II of the fair value hierarchy. Comprehensive Income or loss Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the stockholders’ equity section of the statements of financial condition. Such items along with net income are components of comprehensive income. Inventory Inventories are stated at the lower of cost, determined on the first-in, first-out (FIFO) method. Cost principally consists of the purchase price (adjusted for lower of cost or market), customs, duties, and freight. The Company periodically reviews historical sales activity to determine potentially obsolete items and evaluates the impact of any anticipated changes in future demand. SCHEDULE OF INVENTORY September 30, December 31, Inventory, component parts $ 1,468,476 $ 918,651 Loss Per Share Basic net earnings (loss) per share is computed by dividing net income (loss) for the period by the weighted average number of common stock outstanding during each period. Diluted earnings (loss) per share is computed by dividing net income (loss) for the period by the weighted average number of common stock, common stock equivalents and potentially dilutive securities outstanding during each period. The Company uses the “treasury stock” method to determine whether there is a dilutive effect of outstanding convertible debt, option and warrant contracts. For the three and nine months ended September 30, 2022 and 2021, the Company recognized net loss and a dilutive net loss, and the effect of considering any common stock equivalents would have been antidilutive for the period. Therefore, separate computation of diluted earnings (loss) per share is not presented for the periods presented. The Company had the following anti-dilutive common stock equivalents at September 30, 2022 and 2021: SCHEDULE OF EARNING (LOSS) PER SHARE September 30, September 30, Stock warrants 939,895 1,834,039 Stock options 33,390,500 14,590,364 Convertible notes 86,668 86,668 Preferred stock 880,400 13,256,936 Total 35,297,463 30.038.007 Recently Issued Accounting Pronouncements Management does not believe that any recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on its consolidated financial statements. |
DEBT SECURITIES
DEBT SECURITIES | 9 Months Ended |
Sep. 30, 2022 | |
Debt Securities | |
DEBT SECURITIES | NOTE 3 DEBT SECURITIES The components of investments as of September 30, 2022 were as follows: SCHEDULE OF COMPONENTS OF INVESTMENTS Fair value level Cost Unrealized loss Carrying value Corporate debt securities Level 1 $ 3,537,556 $ (85,340 ) $ 3,452,216 State and local government debt securities Level 1 908,354 (1,063 ) 907,291 State and local government debt securities Level 2 2,995,707 (22,414 ) 2,973,293 Total $ 7,441,617 $ (108,817 ) $ 7,332,800 |
FURNITURE AND EQUIPMENT
FURNITURE AND EQUIPMENT | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
FURNITURE AND EQUIPMENT | NOTE 4 FURNITURE AND EQUIPMENT Furniture and equipment consisted of the following: SCHEDULE OF FURNITURE AND EQUIPMENT September 30, December 31, Machinery and equipment $ 67,419 $ 31,456 Computer equipment 6,846 6,846 Furniture and fixtures 36,059 36,059 Tooling and production 531,055 309,111 Leasehold improvements 30,553 30,553 Total 671,932 414,025 Less: accumulated depreciation (434,997 ) (388,315 ) Total, net $ 236,935 $ 25,710 Depreciation expense amounted to $ 46,682 32,648 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | NOTE 5 INTANGIBLE ASSETS Intangible assets consisted of the following: SCHEDULE OF INTANGIBLE ASSETS September 30, December 31, Patents $ 787,614 $ 649,969 Trademark 45,450 45,450 Total Less: accumulated amortization (193,140 ) (155,386 ) Total, net $ 639,924 $ 540,033 Amortization expense on intangible assets was $ 37,753 30,676 The following table sets forth the estimated amortization expense for the next five years: SCHEDULE OF INTANGIBLE ASSETS AMORTIZATION EXPENSE FOR FUTURE 2022 $ 13,880 2023 54,232 2024 53,274 2025 53,274 2026 53,274 |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
DEBT | NOTE 6 DEBT The following table presents the details of the principal outstanding: SCHEDULE OF DEBT TABLE September 30, 2022 December 31, 2021 APR at September 30, 2022 Maturity Collateral Notes payable (a) $ 5,357,792 $ 5,557,792 8.00 % September 2026 Substantially all Company assets Convertible Notes (b) 1,300,000 1,300,000 6.00 % September 2023-January 2024 - PPP Loans (c) 8,674 189,428 1.00 % April 2025 - Economic Impact Disaster loan 150,000 150,000 3.75 % November 2052 Substantially all Company assets Total $ 6,816,466 $ 7,197,220 SCHEDULE OF INTEREST EXPENSE For the nine-month period ended September 30, September 30, Interest expense 303,957 425,323 As of September 30, 2022, the expected future principal payments for the Company’s debt are due as follows: SCHEDULE OF FUTURE PRINCIPAL PAYMENTS 2022 –Remaining Period $ 201,049 2023 405,931 2024 1,736,147 2025 3,034,022 2026 and thereafter 1,439,317 Total $ 6,816,466 (a) The unpaid principal bears annual interest at the Wall Street Journal prime rate plus 1.75 (b) Included in Convertible Notes are loans provided to the Company from two directors, an officer and two investors. The notes each have the following terms: three-year subordinated convertible promissory note of principal face amounts. Subject to other customary terms, the Convertible Notes mature between September 2023 and January 2024 and bear interest at an annual rate of 6 15 (c) The Small Business Administration forgave approximately $ 178,000 |
OPERATING LEASE LIABILITIES
OPERATING LEASE LIABILITIES | 9 Months Ended |
Sep. 30, 2022 | |
Operating Lease Liabilities | |
OPERATING LEASE LIABILITIES | NOTE 7 OPERATING LEASE LIABILITIES In April 2022, the Company entered into a 58-month lease related to certain office and showroom space pursuant to a sublease that expires in February 2027. The Company recognized a right-of-use asset and a liability of $ 1,428,764 In September 2022, the Company entered in a 124-month lease related to its future headquarters offices and showrooms space. The Company recognized a right-of-use asset and a liability of $ 22,192,503 2.7 The following table outlines the total lease cost for the Company’s operating leases as well as weighted average information for these leases as of September 30, 2022: SCHEDULE OF LEASE COST OPERATING LEASE September 30, Lease costs: Cash paid for operating lease liabilities $ 331,621 Right-of-use assets obtained in exchange for new operating lease obligations 23,621,267 Fixed rent payment $ 255,314 Lease – Depreciation expense $ 110,263 Nine months ended September 30, Other information: Weighted-average discount rate 6.41 % Weighted-average remaining lease term (in months) 120 SCHEDULE OF MINIMUM LEASE OBLIGATION 1 Minimum Lease obligation 2022 – Remaining period $ 66,211 2023 885,748 2024 1,795,932 2025 2,009,927 2026 2,240,799 Thereafter 16,594,129 Total $ 23,592,746 |
ROYALTY OBLIGATIONS
ROYALTY OBLIGATIONS | 9 Months Ended |
Sep. 30, 2022 | |
Royalty Obligations | |
ROYALTY OBLIGATIONS | NOTE 8 ROYALTY OBLIGATIONS The Company has a license agreement with General Electric (“GE”) which provides, among other things, for rights to market certain of the Company’s products displaying the GE brand in consideration of royalty payments to GE. The agreement cannot be assigned or sublicensed. The agreement imposes certain manufacturing and quality control conditions to continue to use the GE brand. The agreement expires in November 2023. In the event the Company receives significant funding rounds of at least $ 50 Variable royalty payments are due quarterly, using a December 1 – November 30 contract year and based upon the prior quarter’s sales. Royalty payments will be paid from sales of GE branded product subject to the following repayment schedule: SCHEDULE OF ROYALTY OBLIGATIONS Net Sales in Contract Year Percentage of Contract Year $ 0 50,000,000 7 % $ 50,000,001 100,000,000 6 % $ 100,000,000 5 % As of September 30, 2022 and December 31, 2021, the outstanding balance of the aggregate minimum payment was $ 2,938,000 3,838,000 Minimum fixed future payment obligations are approximately as follows: SCHEDULE OF ROYALTY OBLIGATION MINIMUM FUTURE MINIMUM PAYMENT Year Minimum Obligation 2022, remaining period $ 300,000 2023 2,638,000 Total principal payments $ 2,938,000 |
ACCRUED EXPENSES
ACCRUED EXPENSES | 9 Months Ended |
Sep. 30, 2022 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | NOTE 9 ACCRUED EXPENSES Accrued expenses consisted of the following: SCHEDULE OF ACCRUED EXPENSES September 30, December 31, Accrued interest, convertible notes $ 152,603 $ 92,919 Accrued compensation 466,667 429,167 Total accrued expenses $ 619,270 $ 522,086 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 10 RELATED PARTY TRANSACTIONS Convertible Notes Due to Related Parties Convertible notes due to related parties represent amounts provided to the Company from two directors and the Chief Executive Officer of the Company, as well as a greater than 5% investor. The outstanding principal on the convertible promissory notes, associated with related parties was $ 1,250,000 147,287 90,002 Bridge Line Ventures The Company and Bridge Line Ventures, LLC Series ST-1 (“Bridge Line Ventures”), the manager of which is Bridge Line Advisors, LLC, of which Leonard J. Sokolow, a member of the Company’s board of directors, is Chief Executive Officer and President, entered into stock purchase agreements during the nine-month period ended September 30, 2021 (collectively, the “Bridge Line SPAs”) pursuant to which Bridge Line Ventures purchased 231,624 231,624 12 Gross proceeds from Bridge Line Ventures amounted to $ 2,779,464 The Bridge Line SPAs contain anti-dilutive price protection measures, which apply for 24 months following the date of closing of the Bridge Line SPAs, subject to certain exceptions and a standstill provision. Initial Public Offering The Company issued 455,353 6,374,942 The Company issued 95,386 |
STOCKHOLDERS_ EQUITY (DEFICIT)
STOCKHOLDERS’ EQUITY (DEFICIT) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY (DEFICIT) | NOTE 11 STOCKHOLDERS’ EQUITY (DEFICIT) (A) Common Stock The Company issued the following common stock during the nine months ended September 30, 2022 and 2021: SCHEDULE OF COMMON STOCK Transaction Type Shares Issued Valuation $ (Issued) Range of Value Per Share 2022 Equity Transactions Common stock issued per exercise of options 616,890 $ 390,624 $ 0.10 3.00 Common stock issued per exercise of warrants, cashless 416,750 — — Common stock issued, pursuant to services provided 865,528 7,671,609 2.00 14.00 Conversion of preferred stock 12,376,536 3,094,134 0.25 Issuance of common stock pursuant to offering, net 1,650,000 23,100,000 14.00 Issuance of common stock, pursuant to anti-dilutive provisions 335,073 4,691,022 14.00 Transaction Type Qty Shares Issued Valuation $ (Issued) Range of Value Per Share 2021 Equity Transactions Common stock issued per PPM, Bridge Line Ventures 231,624 $ 2,779,464 $ 12.00 Common stock issued, exercise of warrants, net 21,250 - 3.50 Common stock issued, pursuant to services provided 190,000 570,000 3.00 Conversion of preferred stock 200,000 50,000 0.25 The Company issued 335,073 (B) Preferred Stock The following is a summary of the Company’s Preferred SCHEDULE OF PREFERRED STOCK Transaction Type Quantity Carrying Value Value per Share Preferred Stock Balance at December 31, 2021 13,256,936 $ 3,314,233 $ 0.25 Preferred Stock redemptions (12,376,536 ) (3,094,134 ) 0.25 Preferred Stock Balance at September 30, 2022 880,400 $ 220,099 $ 0.25 Transaction Type Quantity Carrying Value Value per Share Preferred Stock Balance at December 31, 2020 13,456,936 $ 3,364,233 $ 0.25 2021 Preferred Stock redemptions (200,000 ) (50,000 ) 0.25 Preferred Stock Balance at September 30, 2021 13,256,936 $ 3,314,233 $ 0.25 The Preferred Stock is convertible at the holder’s option. Shares of the Preferred Stock may be repurchased by the Company upon 30 days’ prior written notice, for $ 3.50 0.25 32,504 97,655 (C) Stock Options The following is a summary of the Company’s stock option activity during the nine-month periods ended September 30, 2022 and 2021: SCHEDULE OF STOCK OPTION ACTIVITY Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value Outstanding, January 1, 2022 21,927,182 $ 3.36 Exercised (616,890 ) 1.22 — — Granted 13,832,500 11.74 — — Forfeited (1,752,292 ) 3.81 — — Outstanding, September 30, 2022 33,390,500 $ 7.72 3.74 $ 13,657,954 Exercisable, September 30, 2022 11,852,438 $ 3.84 3.64 13,581,494 Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value Outstanding, January 1, 2021 14,010,432 $ 3.36 Granted 7,679,250 6.59 — — Forfeited — — — — Outstanding, September 30, 2021 21,689,682 $ 4.65 4.21 $ 556,089,127 Exercisable, September 30, 2021 11,965,158 $ 3.36 4.40 274,497,579 The following table summarizes the range of the Black Scholes pricing model assumptions used by the Company during the nine months ended September 30, 2022 and September 30, 2021: SCHEDULE OF BLACK SCHOLES PRICING MODEL September 30, 2022 September 30, 2021 Range Range Stock price $ 6.00 12.34 $ 3.00 3.00 Exercise price $ 6.00 14.00 $ 3.00 12.00 Expected life (in years) 1.5 10.0 1.3 Volatility 37 54 % 34 % Risk-fee interest rate 1.37 2.97 % . 09 2.49 % Dividend yield — — The Company cannot use its historical volatility as expected volatility because there is not enough liquidity in trades of common stock during a term comparable to the expected term of stock option issued. The Company relies on the expected volatility of comparable publicly traded companies within its industry sector, which is deemed more relevant, to compute its expected volatility. Unamortized future option expense was $ 2,871,833 4.00 (D) Warrants Issued The following is a summary of the Company’s warrant activity during the nine-month periods ended September 30, 2022 and 2021: SCHEDULE OF WARRANT ACTIVITY Number of Warrants Weighted Average Exercise Price Balance, January 1, 2022 2,127,895 $ 5.4 Issued 132,000 18.20 Exercised (535,000 ) 3.30 Forfeited (785,000 ) 3.01 Balance, September 30, 2022 939,895 $ 9.16 Number of Warrants Weighted Average Exercise Price Balance, January 1, 2021 1,602,415 $ 3.23 Issued 261,624 12.00 Exercised (30,000 ) 3.50 Forfeited/Cancelled — — Balance, September 30, 2021 1,834,039 $ 4.34 |
CONCENTRATIONS OF RISKS
CONCENTRATIONS OF RISKS | 9 Months Ended |
Sep. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS OF RISKS | NOTE 12 CONCENTRATIONS OF RISKS Major Customers and Accounts Receivable The Company had certain customers whose revenue individually represented 10% or more of the Company’s total revenue, or whose accounts receivable balances individually represented 10% or more of the Company’s total accounts receivable, as follows: No customers accounted for more than 10 83 At September 30, 2022 and December 31, 2021, one customer accounted for 100 Major Vendors The Company had two major vendors that accounted for 100 Liquidity The Company’s cash and cash equivalents are held primarily with two financial institutions. The Company has deposits which exceed the amount insured by the FDIC. The uninsured deposits amounted to $ 13,319,710 Product Risks The Company generates its income primarily from its proprietary-based technology and related products. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 13 SUBSEQUENT EVENTS Management has evaluated subsequent events through November 10, 2022, which is the date the consolidated financial statements were available to be issued. There were no subsequent events that required adjustment to or disclosure in the consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial statements and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required for annual financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The consolidated financial statements as of September 30, 2022 and for the three and nine months ended September 30, 2022 and 2021 are unaudited. The results of operations for the interim periods are not necessarily indicative of the results of operations for the respective fiscal years. The consolidated statement of financial condition at December 31, 2021 has been derived from the audited financial statements at that date but does not include all of the information and notes required by GAAP for complete financial statement presentation. The accompanying consolidated financial information should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 for additional disclosures and accounting policies. |
Reclassifications | Reclassifications For comparability, reclassifications of certain prior-year balances were made in order to conform with current-year presentations, such as grouping of common stock and additional paid-in capital and certain expenses initially included in cost of revenues were reclassified to sales and general and administrative expenses. |
Cash, Cash Equivalents, and restricted cash | Cash, Cash Equivalents, and restricted cash The Company considers all highly liquid securities with original maturities of three months or less when acquired, to be cash equivalents. At September 30, 2022 and December 31, 2021, the Company’s cash composition was follows: SCHEDULE OF CASH EQUIVALENTS AND RESTRICTED CASH September 30, December 31, Cash and cash equivalents $ 10,828,656 $ 10,426,249 Restricted cash 2,741,054 — Total cash, cash equivalents and restricted cash $ 13,569,710 $ 10,426,249 Restricted Cash The Company issued a letter of credit of $ 2.7 |
Securities | Securities Debt securities are classified as available-for-sale when they might be sold before maturity. Securities available for sale are carried at fair value, with unrealized holding gains and losses included in accumulated other comprehensive income. Available-for-sale debt securities are recorded at fair value with the net unrealized gains and losses (that are not deemed to be other-than—temporary) reported as a component of other comprehensive income (loss). Realized gains and losses and charges for other-than-temporary impairments are included in determining net income, with related purchase costs based on the first-in, first-out method. The Company evaluates its available-for-sale-investments for possible other-than-temporary impairments by reviewing factors such as the extent to which, and length of time, an investment’s fair value has been below the Company’s cost basis, the issuer’s financial condition, and the Company’s ability and intent to hold the investment for sufficient time for its market value to recover. For impairments that are other-than-temporary, an impairment loss is recognized in earnings equal to the difference between the investment’s cost and its fair value at the balance sheet date of the reporting period for which the assessment is made. The fair value of the investment then becomes the new amortized cost basis of the investment, and it is not adjusted for subsequent recoveries in fair value. Management does not believe that its investment in debt securities are impaired as of September 30, 2022. Corporate and state and local government debt securities consist of debt from relatively large corporate organizations and certain state and local governmental agencies. The Company reviews trading activity and pricing for each of the debt securities in its portfolio as of the measurement date and determines if pricing data of sufficient frequency and volume in an active market exists to support Level I classification of these securities. When sufficient quoted pricing for identical securities is not available, the Company obtains market pricing and other observable market inputs at dates other than the measurement dates. As a result, the Company classifies its debt securities as Level I and Level II of the fair value hierarchy. |
Comprehensive Income or loss | Comprehensive Income or loss Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the stockholders’ equity section of the statements of financial condition. Such items along with net income are components of comprehensive income. |
Inventory | Inventory Inventories are stated at the lower of cost, determined on the first-in, first-out (FIFO) method. Cost principally consists of the purchase price (adjusted for lower of cost or market), customs, duties, and freight. The Company periodically reviews historical sales activity to determine potentially obsolete items and evaluates the impact of any anticipated changes in future demand. SCHEDULE OF INVENTORY September 30, December 31, Inventory, component parts $ 1,468,476 $ 918,651 |
Loss Per Share | Loss Per Share Basic net earnings (loss) per share is computed by dividing net income (loss) for the period by the weighted average number of common stock outstanding during each period. Diluted earnings (loss) per share is computed by dividing net income (loss) for the period by the weighted average number of common stock, common stock equivalents and potentially dilutive securities outstanding during each period. The Company uses the “treasury stock” method to determine whether there is a dilutive effect of outstanding convertible debt, option and warrant contracts. For the three and nine months ended September 30, 2022 and 2021, the Company recognized net loss and a dilutive net loss, and the effect of considering any common stock equivalents would have been antidilutive for the period. Therefore, separate computation of diluted earnings (loss) per share is not presented for the periods presented. The Company had the following anti-dilutive common stock equivalents at September 30, 2022 and 2021: SCHEDULE OF EARNING (LOSS) PER SHARE September 30, September 30, Stock warrants 939,895 1,834,039 Stock options 33,390,500 14,590,364 Convertible notes 86,668 86,668 Preferred stock 880,400 13,256,936 Total 35,297,463 30.038.007 |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Management does not believe that any recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on its consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
SCHEDULE OF CASH EQUIVALENTS AND RESTRICTED CASH | The Company considers all highly liquid securities with original maturities of three months or less when acquired, to be cash equivalents. At September 30, 2022 and December 31, 2021, the Company’s cash composition was follows: SCHEDULE OF CASH EQUIVALENTS AND RESTRICTED CASH September 30, December 31, Cash and cash equivalents $ 10,828,656 $ 10,426,249 Restricted cash 2,741,054 — Total cash, cash equivalents and restricted cash $ 13,569,710 $ 10,426,249 |
SCHEDULE OF INVENTORY | SCHEDULE OF INVENTORY September 30, December 31, Inventory, component parts $ 1,468,476 $ 918,651 |
SCHEDULE OF EARNING (LOSS) PER SHARE | The Company had the following anti-dilutive common stock equivalents at September 30, 2022 and 2021: SCHEDULE OF EARNING (LOSS) PER SHARE September 30, September 30, Stock warrants 939,895 1,834,039 Stock options 33,390,500 14,590,364 Convertible notes 86,668 86,668 Preferred stock 880,400 13,256,936 Total 35,297,463 30.038.007 |
DEBT SECURITIES (Tables)
DEBT SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Securities | |
SCHEDULE OF COMPONENTS OF INVESTMENTS | The components of investments as of September 30, 2022 were as follows: SCHEDULE OF COMPONENTS OF INVESTMENTS Fair value level Cost Unrealized loss Carrying value Corporate debt securities Level 1 $ 3,537,556 $ (85,340 ) $ 3,452,216 State and local government debt securities Level 1 908,354 (1,063 ) 907,291 State and local government debt securities Level 2 2,995,707 (22,414 ) 2,973,293 Total $ 7,441,617 $ (108,817 ) $ 7,332,800 |
FURNITURE AND EQUIPMENT (Tables
FURNITURE AND EQUIPMENT (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF FURNITURE AND EQUIPMENT | Furniture and equipment consisted of the following: SCHEDULE OF FURNITURE AND EQUIPMENT September 30, December 31, Machinery and equipment $ 67,419 $ 31,456 Computer equipment 6,846 6,846 Furniture and fixtures 36,059 36,059 Tooling and production 531,055 309,111 Leasehold improvements 30,553 30,553 Total 671,932 414,025 Less: accumulated depreciation (434,997 ) (388,315 ) Total, net $ 236,935 $ 25,710 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF INTANGIBLE ASSETS | Intangible assets consisted of the following: SCHEDULE OF INTANGIBLE ASSETS September 30, December 31, Patents $ 787,614 $ 649,969 Trademark 45,450 45,450 Total Less: accumulated amortization (193,140 ) (155,386 ) Total, net $ 639,924 $ 540,033 |
SCHEDULE OF INTANGIBLE ASSETS AMORTIZATION EXPENSE FOR FUTURE | The following table sets forth the estimated amortization expense for the next five years: SCHEDULE OF INTANGIBLE ASSETS AMORTIZATION EXPENSE FOR FUTURE 2022 $ 13,880 2023 54,232 2024 53,274 2025 53,274 2026 53,274 |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF DEBT TABLE | The following table presents the details of the principal outstanding: SCHEDULE OF DEBT TABLE September 30, 2022 December 31, 2021 APR at September 30, 2022 Maturity Collateral Notes payable (a) $ 5,357,792 $ 5,557,792 8.00 % September 2026 Substantially all Company assets Convertible Notes (b) 1,300,000 1,300,000 6.00 % September 2023-January 2024 - PPP Loans (c) 8,674 189,428 1.00 % April 2025 - Economic Impact Disaster loan 150,000 150,000 3.75 % November 2052 Substantially all Company assets Total $ 6,816,466 $ 7,197,220 (a) The unpaid principal bears annual interest at the Wall Street Journal prime rate plus 1.75 (b) Included in Convertible Notes are loans provided to the Company from two directors, an officer and two investors. The notes each have the following terms: three-year subordinated convertible promissory note of principal face amounts. Subject to other customary terms, the Convertible Notes mature between September 2023 and January 2024 and bear interest at an annual rate of 6 15 (c) The Small Business Administration forgave approximately $ 178,000 |
SCHEDULE OF INTEREST EXPENSE | SCHEDULE OF INTEREST EXPENSE For the nine-month period ended September 30, September 30, Interest expense 303,957 425,323 |
SCHEDULE OF FUTURE PRINCIPAL PAYMENTS | As of September 30, 2022, the expected future principal payments for the Company’s debt are due as follows: SCHEDULE OF FUTURE PRINCIPAL PAYMENTS 2022 –Remaining Period $ 201,049 2023 405,931 2024 1,736,147 2025 3,034,022 2026 and thereafter 1,439,317 Total $ 6,816,466 |
OPERATING LEASE LIABILITIES (Ta
OPERATING LEASE LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Operating Lease Liabilities | |
SCHEDULE OF LEASE COST OPERATING LEASE | The following table outlines the total lease cost for the Company’s operating leases as well as weighted average information for these leases as of September 30, 2022: SCHEDULE OF LEASE COST OPERATING LEASE September 30, Lease costs: Cash paid for operating lease liabilities $ 331,621 Right-of-use assets obtained in exchange for new operating lease obligations 23,621,267 Fixed rent payment $ 255,314 Lease – Depreciation expense $ 110,263 Nine months ended September 30, Other information: Weighted-average discount rate 6.41 % Weighted-average remaining lease term (in months) 120 |
SCHEDULE OF MINIMUM LEASE OBLIGATION | SCHEDULE OF MINIMUM LEASE OBLIGATION 1 Minimum Lease obligation 2022 – Remaining period $ 66,211 2023 885,748 2024 1,795,932 2025 2,009,927 2026 2,240,799 Thereafter 16,594,129 Total $ 23,592,746 |
ROYALTY OBLIGATIONS (Tables)
ROYALTY OBLIGATIONS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Royalty Obligations | |
SCHEDULE OF ROYALTY OBLIGATIONS | SCHEDULE OF ROYALTY OBLIGATIONS Net Sales in Contract Year Percentage of Contract Year $ 0 50,000,000 7 % $ 50,000,001 100,000,000 6 % $ 100,000,000 5 % |
SCHEDULE OF ROYALTY OBLIGATION MINIMUM FUTURE MINIMUM PAYMENT | Minimum fixed future payment obligations are approximately as follows: SCHEDULE OF ROYALTY OBLIGATION MINIMUM FUTURE MINIMUM PAYMENT Year Minimum Obligation 2022, remaining period $ 300,000 2023 2,638,000 Total principal payments $ 2,938,000 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Payables and Accruals [Abstract] | |
SCHEDULE OF ACCRUED EXPENSES | Accrued expenses consisted of the following: SCHEDULE OF ACCRUED EXPENSES September 30, December 31, Accrued interest, convertible notes $ 152,603 $ 92,919 Accrued compensation 466,667 429,167 Total accrued expenses $ 619,270 $ 522,086 |
STOCKHOLDERS_ EQUITY (DEFICIT)
STOCKHOLDERS’ EQUITY (DEFICIT) (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
SCHEDULE OF COMMON STOCK | The Company issued the following common stock during the nine months ended September 30, 2022 and 2021: SCHEDULE OF COMMON STOCK Transaction Type Shares Issued Valuation $ (Issued) Range of Value Per Share 2022 Equity Transactions Common stock issued per exercise of options 616,890 $ 390,624 $ 0.10 3.00 Common stock issued per exercise of warrants, cashless 416,750 — — Common stock issued, pursuant to services provided 865,528 7,671,609 2.00 14.00 Conversion of preferred stock 12,376,536 3,094,134 0.25 Issuance of common stock pursuant to offering, net 1,650,000 23,100,000 14.00 Issuance of common stock, pursuant to anti-dilutive provisions 335,073 4,691,022 14.00 Transaction Type Qty Shares Issued Valuation $ (Issued) Range of Value Per Share 2021 Equity Transactions Common stock issued per PPM, Bridge Line Ventures 231,624 $ 2,779,464 $ 12.00 Common stock issued, exercise of warrants, net 21,250 - 3.50 Common stock issued, pursuant to services provided 190,000 570,000 3.00 Conversion of preferred stock 200,000 50,000 0.25 |
SCHEDULE OF PREFERRED STOCK | The following is a summary of the Company’s Preferred SCHEDULE OF PREFERRED STOCK Transaction Type Quantity Carrying Value Value per Share Preferred Stock Balance at December 31, 2021 13,256,936 $ 3,314,233 $ 0.25 Preferred Stock redemptions (12,376,536 ) (3,094,134 ) 0.25 Preferred Stock Balance at September 30, 2022 880,400 $ 220,099 $ 0.25 Transaction Type Quantity Carrying Value Value per Share Preferred Stock Balance at December 31, 2020 13,456,936 $ 3,364,233 $ 0.25 2021 Preferred Stock redemptions (200,000 ) (50,000 ) 0.25 Preferred Stock Balance at September 30, 2021 13,256,936 $ 3,314,233 $ 0.25 |
SCHEDULE OF STOCK OPTION ACTIVITY | The following is a summary of the Company’s stock option activity during the nine-month periods ended September 30, 2022 and 2021: SCHEDULE OF STOCK OPTION ACTIVITY Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value Outstanding, January 1, 2022 21,927,182 $ 3.36 Exercised (616,890 ) 1.22 — — Granted 13,832,500 11.74 — — Forfeited (1,752,292 ) 3.81 — — Outstanding, September 30, 2022 33,390,500 $ 7.72 3.74 $ 13,657,954 Exercisable, September 30, 2022 11,852,438 $ 3.84 3.64 13,581,494 Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value Outstanding, January 1, 2021 14,010,432 $ 3.36 Granted 7,679,250 6.59 — — Forfeited — — — — Outstanding, September 30, 2021 21,689,682 $ 4.65 4.21 $ 556,089,127 Exercisable, September 30, 2021 11,965,158 $ 3.36 4.40 274,497,579 |
SCHEDULE OF BLACK SCHOLES PRICING MODEL | The following table summarizes the range of the Black Scholes pricing model assumptions used by the Company during the nine months ended September 30, 2022 and September 30, 2021: SCHEDULE OF BLACK SCHOLES PRICING MODEL September 30, 2022 September 30, 2021 Range Range Stock price $ 6.00 12.34 $ 3.00 3.00 Exercise price $ 6.00 14.00 $ 3.00 12.00 Expected life (in years) 1.5 10.0 1.3 Volatility 37 54 % 34 % Risk-fee interest rate 1.37 2.97 % . 09 2.49 % Dividend yield — — |
SCHEDULE OF WARRANT ACTIVITY | The following is a summary of the Company’s warrant activity during the nine-month periods ended September 30, 2022 and 2021: SCHEDULE OF WARRANT ACTIVITY Number of Warrants Weighted Average Exercise Price Balance, January 1, 2022 2,127,895 $ 5.4 Issued 132,000 18.20 Exercised (535,000 ) 3.30 Forfeited (785,000 ) 3.01 Balance, September 30, 2022 939,895 $ 9.16 Number of Warrants Weighted Average Exercise Price Balance, January 1, 2021 1,602,415 $ 3.23 Issued 261,624 12.00 Exercised (30,000 ) 3.50 Forfeited/Cancelled — — Balance, September 30, 2021 1,834,039 $ 4.34 |
SCHEDULE OF CASH EQUIVALENTS AN
SCHEDULE OF CASH EQUIVALENTS AND RESTRICTED CASH (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||
Cash and cash equivalents | $ 10,828,656 | $ 10,426,249 |
Restricted cash | 2,741,054 | |
Total cash, cash equivalents and restricted cash | $ 13,569,710 | $ 10,426,249 |
SCHEDULE OF INVENTORY (Details)
SCHEDULE OF INVENTORY (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||
Inventory, component parts | $ 1,468,476 | $ 918,651 |
SCHEDULE OF EARNING (LOSS) PER
SCHEDULE OF EARNING (LOSS) PER SHARE (Details) - shares | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 35,297,463 | 30,038,007 |
Warrant [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 939,895 | 1,834,039 |
Share-Based Payment Arrangement, Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 33,390,500 | 14,590,364 |
Convertible Debt Securities [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 86,668 | 86,668 |
Preferred Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 880,400 | 13,256,936 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||
Restricted cash | $ 2,741,054 |
SCHEDULE OF COMPONENTS OF INVES
SCHEDULE OF COMPONENTS OF INVESTMENTS (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Debt Securities, Available-for-Sale, Amortized Cost | $ 7,441,617 | |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax | (108,817) | |
Short-Term Investments | 7,332,800 | |
Fair Value, Inputs, Level 1 [Member] | Corporate Debt Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Debt Securities, Available-for-Sale, Amortized Cost | 3,537,556 | |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax | (85,340) | |
Short-Term Investments | 3,452,216 | |
Fair Value, Inputs, Level 1 [Member] | US Government Agencies Debt Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Debt Securities, Available-for-Sale, Amortized Cost | 908,354 | |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax | (1,063) | |
Short-Term Investments | 907,291 | |
Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Debt Securities, Available-for-Sale, Amortized Cost | 2,995,707 | |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax | (22,414) | |
Short-Term Investments | $ 2,973,293 |
SCHEDULE OF FURNITURE AND EQUIP
SCHEDULE OF FURNITURE AND EQUIPMENT (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 671,932 | $ 414,025 |
Less: accumulated depreciation | (434,997) | (388,315) |
Total, net | 236,935 | 25,710 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 67,419 | 31,456 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 6,846 | 6,846 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 36,059 | 36,059 |
Tooling And Production [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 531,055 | 309,111 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 30,553 | $ 30,553 |
FURNITURE AND EQUIPMENT (Detail
FURNITURE AND EQUIPMENT (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 46,682 | $ 32,648 |
SCHEDULE OF INTANGIBLE ASSETS (
SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Less: accumulated amortization | $ (193,140) | $ (155,386) |
Total, net | 639,924 | 540,033 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total | 787,614 | 649,969 |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total | $ 45,450 | $ 45,450 |
SCHEDULE OF INTANGIBLE ASSETS A
SCHEDULE OF INTANGIBLE ASSETS AMORTIZATION EXPENSE FOR FUTURE (Details) | Sep. 30, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2022 | $ 13,880 |
2023 | 54,232 |
2024 | 53,274 |
2025 | 53,274 |
2026 | $ 53,274 |
INTANGIBLE ASSETS (Details Narr
INTANGIBLE ASSETS (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 37,753 | $ 30,676 |
SCHEDULE OF DEBT TABLE (Details
SCHEDULE OF DEBT TABLE (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2022 | Dec. 31, 2021 | ||
Short-Term Debt [Line Items] | |||
Total | $ 6,816,466 | $ 7,197,220 | |
Debt instrument interest rate stated percentage | 6% | ||
Notes Payable [Member] | |||
Short-Term Debt [Line Items] | |||
Total | [1] | $ 5,357,792 | 5,557,792 |
Debt instrument interest rate stated percentage | [1] | 8% | |
Maturity date description | [1] | September 2026 | |
Convertible Notes [Member] | |||
Short-Term Debt [Line Items] | |||
Total | [2] | $ 1,300,000 | 1,300,000 |
Debt instrument interest rate stated percentage | [2] | 6% | |
Maturity date description | [2] | September 2023-January 2024 | |
Paycheck Protection Program Loans [Member] | |||
Short-Term Debt [Line Items] | |||
Total | [3] | $ 8,674 | 189,428 |
Debt instrument interest rate stated percentage | [3] | 1% | |
Maturity date description | [3] | April 2025 | |
Economic impact disaster loan [Member] | |||
Short-Term Debt [Line Items] | |||
Total | $ 150,000 | $ 150,000 | |
Debt instrument interest rate stated percentage | 3.75% | ||
Maturity date description | November 2052 | ||
[1]The unpaid principal bears annual interest at the Wall Street Journal prime rate plus 1.75 6 15 178,000 |
SCHEDULE OF INTEREST EXPENSE (D
SCHEDULE OF INTEREST EXPENSE (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Debt Disclosure [Abstract] | ||
Interest expense | $ 303,957 | $ 425,323 |
SCHEDULE OF FUTURE PRINCIPAL PA
SCHEDULE OF FUTURE PRINCIPAL PAYMENTS (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
2022 –Remaining Period | $ 201,049 | |
2023 | 405,931 | |
2024 | 1,736,147 | |
2025 | 3,034,022 | |
2026 and thereafter | 1,439,317 | |
Total | $ 6,816,466 | $ 7,197,220 |
SCHEDULE OF DEBT TABLE (Detai_2
SCHEDULE OF DEBT TABLE (Details) (Parenthetical) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Dec. 14, 2021 | |
Debt Instrument [Line Items] | ||
Bears interest at a rate of persentage | 6% | |
Debt Instrument conversion price | $ 15 | |
PPP Loans [Member] | ||
Debt Instrument [Line Items] | ||
Other income | $ 178,000 | |
Prime Rate [Member] | Nielsen and Bainbridge LLC [Member] | Secured Promissory Note [Member] | ||
Debt Instrument [Line Items] | ||
Bears interest at a rate of persentage | 1.75% |
SCHEDULE OF LEASE COST OPERATIN
SCHEDULE OF LEASE COST OPERATING LEASE (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Operating Lease Liabilities | ||
Cash paid for operating lease liabilities | $ 331,621 | |
Right-of-use assets obtained in exchange for new operating lease obligations | 23,621,267 | |
Fixed rent payment | 255,314 | |
Lease - Depreciation expense | $ 110,263 | |
Operating lease, weighted average discount rate, percentage | 6.41% | |
Operating lease, weighted average remaining lease term | 120 months |
SCHEDULE OF MINIMUM LEASE OBLIG
SCHEDULE OF MINIMUM LEASE OBLIGATION (Details) | Sep. 30, 2022 USD ($) |
Operating Lease Liabilities | |
2022 – Remaining period | $ 66,211 |
2023 | 885,748 |
2024 | 1,795,932 |
2025 | 2,009,927 |
2026 | 2,240,799 |
Thereafter | 16,594,129 |
Total | $ 23,592,746 |
OPERATING LEASE LIABILITIES (De
OPERATING LEASE LIABILITIES (Details Narrative) - USD ($) | Sep. 30, 2022 | Apr. 30, 2022 | Dec. 31, 2021 |
Lessee, Lease, Description [Line Items] | |||
Operating lease, right-of-use asset | $ 23,511,004 | ||
Restricted cash | 2,741,054 | ||
58-Month Lease [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease, right-of-use asset | $ 1,428,764 | ||
Operating lease, liability | $ 1,428,764 | ||
124-Month Lease [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease, right-of-use asset | 22,192,503 | ||
Operating lease, liability | $ 22,192,503 |
SCHEDULE OF ROYALTY OBLIGATIONS
SCHEDULE OF ROYALTY OBLIGATIONS (Details) | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Tier One [Member] | |
Guarantor Obligations [Line Items] | |
Percentage of Contract Year Net Sales owed to GE | 7% |
Tier One [Member] | Minimum [Member] | |
Guarantor Obligations [Line Items] | |
Net Sales in Contract Year | $ 0 |
Tier One [Member] | Maximum [Member] | |
Guarantor Obligations [Line Items] | |
Net Sales in Contract Year | $ 50,000,000 |
Tier Two [Member] | |
Guarantor Obligations [Line Items] | |
Percentage of Contract Year Net Sales owed to GE | 6% |
Tier Two [Member] | Minimum [Member] | |
Guarantor Obligations [Line Items] | |
Net Sales in Contract Year | $ 50,000,001 |
Tier Two [Member] | Maximum [Member] | |
Guarantor Obligations [Line Items] | |
Net Sales in Contract Year | 100,000,000 |
Tier Three [Member] | |
Guarantor Obligations [Line Items] | |
Net Sales in Contract Year | $ 100,000,000 |
Percentage of Contract Year Net Sales owed to GE | 5% |
SCHEDULE OF ROYALTY OBLIGATION
SCHEDULE OF ROYALTY OBLIGATION MINIMUM FUTURE MINIMUM PAYMENT (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
2022, remaining period | $ 13,880 | |
2023 | 54,232 | |
Total principal payments | 639,924 | $ 540,033 |
License Agreement [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
2022, remaining period | 300,000 | |
2023 | 2,638,000 | |
Total principal payments | $ 2,938,000 |
ROYALTY OBLIGATIONS (Details Na
ROYALTY OBLIGATIONS (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Royalty guarantees commitments amount | $ 2,938,000 | $ 3,838,000 |
License Agreement [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Proceeds from royalties | $ 50,000,000 |
SCHEDULE OF ACCRUED EXPENSES (D
SCHEDULE OF ACCRUED EXPENSES (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Accrued interest, convertible notes | $ 152,603 | $ 92,919 |
Accrued compensation | 466,667 | 429,167 |
Total accrued expenses | $ 619,270 | $ 522,086 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Accrued interest | $ 152,603 | $ 92,919 | |
Proceeds from common stock | $ 23,100,000 | $ 2,779,464 | |
IPO [Member] | |||
Related Party Transaction [Line Items] | |||
Number of shares issued | 455,353 | ||
Proceeds from IPO | $ 6,374,942 | ||
Bridge Line Ventures [Member] | |||
Related Party Transaction [Line Items] | |||
Proceeds from common stock | $ 2,779,464 | ||
Stock Purchase Agreement [Member] | Bridge Line Ventures [Member] | |||
Related Party Transaction [Line Items] | |||
Shares issued in transaction | 231,624 | ||
Purchase of warrants | 231,624 | ||
Purchase price per share | $ 12 | ||
Chief Executive Officer [Member] | Two Directors [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party transactions | 1,250,000 | 1,250,000 | |
Accrued interest | $ 147,287 | $ 90,002 | |
Director [Member] | IPO [Member] | |||
Related Party Transaction [Line Items] | |||
Number of shares issued | 95,386 |
SCHEDULE OF COMMON STOCK (Detai
SCHEDULE OF COMMON STOCK (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Common stock issued per exercise of options, Shares Issued | 616,890 | |||
Common Stock [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Common stock issued per exercise of options, Shares Issued | 180,000 | 616,890 | ||
Common stock issued, pursuant to services provided, Shares Issued | 322,579 | 135,000 | 865,528 | 190,000 |
Conversion of preferred stock, Shares Issued | 1,000,000 | 12,376,536 | 200,000 | |
Common stock issued per PPM, Bridge Line Ventures, Shares Issued | 16,667 | 1,650,000 | 231,624 | |
Common Stock [Member] | 2022 Equity Transactions [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Common stock issued per exercise of options, Shares Issued | 616,890 | |||
Common stock issued per exercise of options, Valuation Issued | $ 390,624 | |||
Common stock issued, exercise of warrants, Shares Issued | 416,750 | |||
Common stock issued, exercise of warrants, Valuation issued | ||||
Common stock issued per exercise of warrants, cashless, Range of Value Per Share | ||||
Common stock issued, pursuant to services provided, Shares Issued | 865,528 | |||
Common stock issued, pursuant to services provided, Valuation issued | $ 7,671,609 | |||
Conversion of preferred stock, Shares Issued | 12,376,536 | |||
Conversion of preferred stock, Valuation issued | $ 3,094,134 | |||
Conversion of preferred stock, Range of value per share | 0.25 | $ 0.25 | ||
Common stock issued per PPM, Bridge Line Ventures, Shares Issued | 1,650,000 | |||
Common stock issued per PPM, Bridge Line Ventures, Valuation issued | $ 23,100,000 | |||
Common stock issued per PPM, Bridge Line Ventures, Range of value per share | 14 | $ 14 | ||
Issuance of common stock, pursuant to anti-dilutive provisions, Shares Issued | 335,073 | |||
Issuance of common stock, pursuant to anti-dilutive provisions, Valuation issued | $ 4,691,022 | |||
Issuance of common stock, pursuant to anti-dilutive provisions, Range of value per share | 14 | $ 14 | ||
Common Stock [Member] | 2022 Equity Transactions [Member] | Minimum [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Common stock issued per exercise of options, Range of value per share | 0.10 | 0.10 | ||
Common stock issued, pursuant to services provided, Range of value per share | 2 | 2 | ||
Common Stock [Member] | 2022 Equity Transactions [Member] | Maximum [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Common stock issued per exercise of options, Range of value per share | 3 | 3 | ||
Common stock issued, pursuant to services provided, Range of value per share | $ 14 | $ 14 | ||
Common Stock [Member] | 2021 Equity Transactions [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Common stock issued, exercise of warrants, Shares Issued | 21,250 | |||
Common stock issued, exercise of warrants, Valuation issued | ||||
Common stock issued per exercise of warrants, cashless, Range of Value Per Share | $ 3.50 | $ 3.50 | ||
Common stock issued, pursuant to services provided, Shares Issued | 190,000 | |||
Common stock issued, pursuant to services provided, Valuation issued | $ 570,000 | |||
Common stock issued, pursuant to services provided, Range of value per share | 3 | $ 3 | ||
Conversion of preferred stock, Shares Issued | 200,000 | |||
Conversion of preferred stock, Valuation issued | $ 50,000 | |||
Conversion of preferred stock, Range of value per share | 0.25 | $ 0.25 | ||
Common stock issued per PPM, Bridge Line Ventures, Shares Issued | 231,624 | |||
Common stock issued per PPM, Bridge Line Ventures, Valuation issued | $ 2,779,464 | |||
Common stock issued per PPM, Bridge Line Ventures, Range of value per share | $ 12 | $ 12 |
SCHEDULE OF PREFERRED STOCK (De
SCHEDULE OF PREFERRED STOCK (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Preferred Stock beginning, shares outstanding | 13,256,936 | |
Preferred Stock ending, shares outstanding | 880,400 | |
Preferred Stock [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Preferred Stock beginning, shares outstanding | 13,256,936 | 13,456,936 |
Preferred Stock beginning, Valuation | $ 3,314,233 | $ 3,364,233 |
Preferred Stock, Value per Share | $ 0.25 | $ 0.25 |
Preferred stock redemption shares | $ (12,376,536) | $ (200,000) |
Preferred stock, Valuation | $ (3,094,134) | $ (50,000) |
Preferred stock redemption, Value per Share | $ 0.25 | $ 0.25 |
Preferred Stock ending, shares outstanding | 880,400 | 13,256,936 |
Preferred Stock ending, Valuation | $ 220,099 | $ 3,314,233 |
Preferred Stock, Value per Share | $ 0.25 | $ 0.25 |
SCHEDULE OF STOCK OPTION ACTIVI
SCHEDULE OF STOCK OPTION ACTIVITY (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Equity [Abstract] | ||
Number of shares, outstanding | 21,927,182 | 14,010,432 |
Weighted Average Exercise Price, Outstanding beginning | $ 3.36 | $ 3.36 |
Number of shares, Exercised | (616,890) | |
Weighted Average Exercise Price, Exercised | $ 1.22 | |
Number of shares, Granted | 13,832,500 | 7,679,250 |
Weighted Average Exercise Price, Granted | $ 11.74 | $ 6.59 |
Number of shares, Forfeited | (1,752,292) | |
Weighted Average Exercise Price, Forfeited | $ 3.81 | |
Number of shares, outstanding | 33,390,500 | 21,689,682 |
Weighted Average Exercise Price, Outstanding End | $ 7.72 | $ 4.65 |
Weighted Average Remaining Contractual Life in Years, Outstanding ending | 3 years 8 months 26 days | 4 years 2 months 15 days |
Aggregate Intrinsic value, Outstanding ending | $ 13,657,954 | $ 556,089,127 |
Number of shares, Exercisable | 11,852,438 | 11,965,158 |
Weighted Average Exercise Price, Exercisable ending | $ 3.84 | $ 3.36 |
Weighted Average Remaining Contractual Life in Years, Exercisable ending | 3 years 7 months 20 days | 4 years 4 months 24 days |
Aggregate Intrinsic value, Exercisable ending | $ 13,581,494 | $ 274,497,579 |
Number of shares, Forfeited | 1,752,292 |
SCHEDULE OF BLACK SCHOLES PRICI
SCHEDULE OF BLACK SCHOLES PRICING MODEL (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Expected term (in years) | 1 year 3 months 18 days | |
Expected volatility | 34% | |
Dividend yield | 0% | 0% |
Minimum [Member] | ||
Share price | $ 6 | $ 3 |
Exercise price | $ 6 | $ 3 |
Expected term (in years) | 1 year 6 months | |
Expected volatility | 37% | |
Risk-fee interest rate | 1.37% | 9% |
Maximum [Member] | ||
Share price | $ 12.34 | $ 3 |
Exercise price | $ 14 | $ 12 |
Expected term (in years) | 10 years | |
Expected volatility | 54% | |
Risk-fee interest rate | 2.97% | 2.49% |
SCHEDULE OF WARRANT ACTIVITY (D
SCHEDULE OF WARRANT ACTIVITY (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Equity [Abstract] | ||
Number of Warrants, Beginning balance | 2,127,895 | 1,602,415 |
Weighted average exercise price outstanding | $ 5.4 | $ 3.23 |
Number of Warrants, Issued | 132,000 | 261,624 |
Weighted Average, Issued | $ 18.20 | $ 12 |
Number of Warrants, Exercised | (535,000) | (30,000) |
Weighted Average, Exercised | $ 3.30 | $ 3.50 |
Number of Warrants, Forfeited | (785,000) | |
Weighted Average, Forfeited | $ 3.01 | |
Number of Warrants, Ending balance | 939,895 | 1,834,039 |
Weighted average exercise price outstanding | $ 9.16 | $ 4.34 |
STOCKHOLDERS_ EQUITY (DEFICIT_2
STOCKHOLDERS’ EQUITY (DEFICIT) (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Unamortization option expense | $ 2,871,833 | |
Weighted average period | 4 years | |
Preferred Stock [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Preferred Stock,Par Value | $ 3.50 | |
Sale of Stock, Price Per Share | $ 0.25 | |
Dividends, Preferred Stock | $ 32,504 | $ 97,655 |
Stockholders [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Number of shares issued | 335,073 |
CONCENTRATIONS OF RISKS (Detail
CONCENTRATIONS OF RISKS (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Concentration Risk [Line Items] | |||
Uninusured amount | $ 13,319,710 | ||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | No Customer [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 10% | ||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | One Customer [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 83% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | One Customer [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 100% | 100% | |
Cost of Goods and Service Benchmark [Member] | Supplier Concentration Risk [Member] | Two Vendors [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 100% | 100% |