Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | May 12, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-38148 | |
Entity Registrant Name | CO-DIAGNOSTICS, INC. | |
Entity Central Index Key | 0001692415 | |
Entity Tax Identification Number | 46-2609396 | |
Entity Incorporation, State or Country Code | UT | |
Entity Address, Address Line One | 2401 S. Foothill Drive | |
Entity Address, Address Line Two | Suite D | |
Entity Address, City or Town | Salt Lake City | |
Entity Address, State or Province | UT | |
Entity Address, Postal Zip Code | 84109 | |
City Area Code | (801) | |
Local Phone Number | 438-1036 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | CODX | |
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 | true | |
Elected Not To Use the Extended Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 33,987,736 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 97,421,739 | $ 88,607,234 |
Marketable investment securities | 1,255,266 | |
Accounts receivable, net | 21,662,403 | 20,839,182 |
Inventory | 4,901,057 | 2,004,169 |
Prepaid expenses and other current assets | 1,278,598 | 2,338,444 |
Note receivable | 75,000 | 75,000 |
Total current assets | 125,338,797 | 115,119,295 |
Property and equipment, net | 2,252,853 | 1,933,216 |
Operating lease right-of-use asset | 604,837 | |
Goodwill | 14,808,411 | 14,706,818 |
Intangible assets, net | 27,088,333 | 27,195,000 |
Investment in joint venture | 983,614 | 1,004,953 |
Note receivable | 75,000 | 75,000 |
Total assets | 171,151,845 | 160,034,282 |
Current liabilities | ||
Accounts payable | 1,215,049 | 607,506 |
Accrued expenses, current | 2,613,218 | 3,859,652 |
Operating lease liability, current | 283,299 | |
Contingent consideration liabilities, current | 4,065,537 | 5,767,304 |
Income taxes payable | 4,843,592 | 2,213,088 |
Deferred revenue | 150,000 | |
Total current liabilities | 13,020,695 | 12,597,550 |
Long-term liabilities | ||
Income taxes payable | 1,284,745 | 1,067,853 |
Deferred tax liability | 5,868,728 | 7,228,444 |
Operating lease liability | 275,672 | |
Contingent consideration liabilities | 2,987,214 | 4,665,337 |
Total long-term liabilities | 10,416,359 | 12,961,634 |
Total liabilities | 23,437,054 | 25,559,184 |
Commitments and contingencies (Note 12) | ||
Stockholders’ equity | ||
Convertible preferred stock, $0.001 par value; 5,000,000 shares authorized; 0 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively | ||
Common stock, $0.001 par value; 100,000,000 shares authorized; 33,984,068 and 33,819,862 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively | 33,984 | 33,820 |
Additional paid-in capital | 81,796,933 | 80,271,999 |
Accumulated earnings | 65,883,874 | 54,169,279 |
Total stockholders’ equity | 147,714,791 | 134,475,098 |
Total liabilities and stockholders’ equity | $ 171,151,845 | $ 160,034,282 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Convertible preferred stock, par value | $ 0.001 | $ 0.001 |
Convertible preferred stock , shares authorized | 5,000,000 | 5,000,000 |
Convertible preferred stock, shares issued | 0 | 0 |
Convertible preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 33,984,068 | 33,819,862 |
Common stock, shares outstanding | 33,984,068 | 33,819,862 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Revenue | $ 22,699,044 | $ 20,024,769 |
Cost of revenue | 3,281,951 | 3,272,565 |
Gross profit | 19,417,093 | 16,752,204 |
Operating expenses | ||
Sales and marketing | 2,652,148 | 1,197,546 |
General and administrative | 2,922,195 | 2,935,689 |
Research and development | 3,771,327 | 2,217,063 |
Depreciation and amortization | 247,264 | 67,005 |
Total operating expenses | 9,592,934 | 6,417,303 |
Income from operations | 9,824,159 | 10,334,901 |
Other income (expense) | ||
Interest income | 11,393 | 14,657 |
Loss on disposition of assets | (93,421) | |
Gain on remeasurement of acquisition contingencies | 3,379,890 | |
(Loss) on equity method investment in joint venture | (21,339) | (464,943) |
Total other income (expense) | 3,276,523 | (450,286) |
Income before income taxes | 13,100,682 | 9,884,615 |
Income tax provision | 1,386,087 | 1,985,640 |
Net income | $ 11,714,595 | $ 7,898,975 |
Earnings per common share: | ||
Basic | $ 0.35 | $ 0.28 |
Diluted | $ 0.34 | $ 0.26 |
Weighted average shares outstanding: | ||
Basic | 33,935,570 | 28,662,885 |
Diluted | 34,711,476 | 30,002,729 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities | ||
Net income | $ 11,714,595 | $ 7,898,975 |
Adjustments to reconcile net income to cash used in operating activities: | ||
Depreciation and amortization | 247,264 | 67,005 |
Stock-based compensation expense | 1,375,097 | 1,513,012 |
Change in fair value of acquisition contingencies | (3,379,890) | |
Non-cash lease expense | 8,762 | |
Loss from equity method investment | 21,339 | 464,943 |
Loss on disposition of assets | 93,421 | |
Deferred income taxes | (1,359,716) | 302,399 |
Bad debt expense | 47,862 | 79,700 |
Changes in assets and liabilities: | ||
Accounts receivable | (871,083) | (59,994) |
Prepaid expenses | 1,042,932 | (114,473) |
Inventory | (3,088,944) | 1,797,581 |
Deferred revenue | (150,000) | (146,516) |
Income taxes payable | 2,745,803 | 1,128,438 |
Accounts payable, accrued expenses and other liabilities | (641,604) | (661,115) |
Net cash provided by operating activities | 7,805,838 | 12,269,955 |
Cash flows from investing activities | ||
Purchases of property and equipment | (396,600) | (139,558) |
Proceeds from maturities of marketable investment securities | 1,255,266 | 2,032,802 |
Investment in joint venture | 500,000 | |
Net cash provided by investing activities | 858,666 | 2,393,244 |
Cash flows from financing activities | ||
Proceeds from exercise of options and warrants | 150,001 | 148,981 |
Net cash provided by financing activities | 150,001 | 148,981 |
Net increase in cash and cash equivalents | 8,814,505 | 14,812,180 |
Cash and cash equivalents at beginning of period | 88,607,234 | 42,976,713 |
Cash and cash equivalents at end of period | 97,421,739 | 57,788,893 |
Supplemental disclosure of cash flow information | ||
Interest paid | ||
Income taxes paid | ||
Supplemental disclosure of non-cash investing and financing transactions | ||
Inventory moved to property, plant and equipment | 192,056 | |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 681,327 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Convertible Preferred Stock [Member]Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2020 | $ 28,558 | $ 49,157,236 | $ 17,510,715 | $ 66,696,509 | |
Beginning balance, shares at Dec. 31, 2020 | 28,558,033 | ||||
Common stock issued for option exercises | $ 66 | 148,914 | 148,980 | ||
Common stock issued for option exercises, shares | 65,891 | ||||
Stock-based compensation | $ 42 | 1,512,970 | 1,513,012 | ||
Stock-based compensation expense, shares | 73,040 | ||||
Net income | 7,898,975 | 7,898,975 | |||
Ending balance, value at Mar. 31, 2021 | $ 28,666 | 50,819,120 | 25,409,690 | 76,257,476 | |
Ending balance, shares at Mar. 31, 2021 | 28,696,964 | ||||
Beginning balance, value at Dec. 31, 2021 | $ 33,820 | 80,271,999 | 54,169,279 | 134,475,098 | |
Beginning balance, shares at Dec. 31, 2021 | 33,819,862 | ||||
Common stock issued for option exercises | $ 45 | 49,956 | 50,001 | ||
Common stock issued for option exercises, shares | 45,456 | ||||
Common stock issued for warrant exercises | $ 50 | 99,950 | 100,000 | ||
Common stock issued for warrant exercises, shares | 50,000 | ||||
Stock-based compensation | $ 69 | 1,375,028 | 1,375,097 | ||
Stock-based compensation expense, shares | 68,750 | ||||
Net income | 11,714,595 | 11,714,595 | |||
Ending balance, value at Mar. 31, 2022 | $ 33,984 | $ 81,796,933 | $ 65,883,874 | $ 147,714,791 | |
Ending balance, shares at Mar. 31, 2022 | 33,984,068 |
Overview and Basis of Presentat
Overview and Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Overview and Basis of Presentation | Note 1 – Overview and Basis of Presentation Description of Business Co-Diagnostics, Inc., a Utah corporation (the “Company”, “Co-Dx” or “CODX”), develops, manufactures and sells reagents used for diagnostic tests that function via the detection and/or analysis of nucleic acid molecules (DNA or RNA), including robust and innovative molecular tools for detection of infectious diseases, liquid biopsy for cancer screening, and agricultural applications. In connection with the sale of our tests we may sell diagnostic equipment from other manufacturers as self-contained lab systems (which we refer to as the “MDx Device”). We are also developing a unique, groundbreaking portable PCR testing platform (the “Co-Dx PCR home testing platform”) designed to bring affordable, reliable gold-standard polymerase chain reaction (“PCR”) to patients in point-of-care and even at-home settings. Unaudited Consolidated Financial Statements The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q as they are prescribed for smaller reporting companies and emerging growth companies. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary to make the financial statements not misleading have been included. Operating results for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. These statements should be read in conjunction with the Company’s audited financial statements and related notes for the year ended December 31, 2021, included in the Company’s Annual Report on Form 10-K filed on March 24, 2022. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Such estimates include receivables and other long-lived assets, legal and regulatory contingencies, income taxes, share based arrangements, and others. These estimates and assumptions are based on management’s best estimates and judgments. Actual amounts and results could differ from those estimates. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting Policies Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, money market funds and highly liquid investments with an original maturity date of 90 days or less from the date of purchase. The fair value of cash equivalents approximated their carrying value as of March 31, 2022 and December 31, 2021. The Company has its cash and cash equivalents with a large creditworthy financial institution and the balance exceeded federally insured limits. The Company has not experienced any losses in such accounts, and management believes the Company is not exposed to any significant credit risk on cash and cash equivalents. Marketable Investment Securities The Company’s marketable investment securities are comprised of investments in certificates of deposit. The Company determines the appropriate classification of its marketable investment securities at the time of purchase and reevaluates such designation at each balance sheet date. The Company has classified and accounted for its marketable investment securities as available-for-sale securities as the Company may sell these securities at any time for use in its current operations or for other purposes, even prior to maturity. As a result, the Company classifies its marketable investment securities, including securities with stated maturities beyond twelve months, within current assets in the consolidated balance sheets. Any unrealized gains or losses are immaterial. Accounts Receivable Trade accounts receivable are recorded at the invoiced amount (net of allowance) and do not bear interest. The Company maintains an allowance for doubtful accounts for amounts the Company does not expect to collect. In establishing the required allowance, management considers historical losses, current market condition, customers’ financial condition, the age of receivables, and current payment patterns. Account balances are written off against the allowance once the receivable is deemed uncollectible. Recoveries of trade receivables previously written off are recorded when collected. At March 31, 2022, total accounts receivable was $ 22,379,861 717,458 21,662,403 21,508,779 669,597 20,839,182 Equity-Method Investments Our equity method investments are initially recorded at cost and are included in other long-term assets in the accompanying consolidated balance sheet. We adjust the carrying value of our investment based on our share of the earnings or losses in the periods which they are reported by the investee until the carrying amount is zero. The earnings or losses are included in other income (expense) in the accompanying consolidated statements of operations. Inventory Inventory is stated at the lower of cost or net-realizable value. Inventory cost is determined on a first-in first-out basis that approximates average cost in accordance with ASC 330-10-30-12. At March 31, 2022, the Company had $ 4,901,057 4,119,549 781,508 2,004,169 983,088 1,021,081 Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is provided using the straight-line method over the estimated useful lives of the property, generally from three five years The Company reviews its long-lived assets, including property and equipment, for impairment whenever an event or change in facts and circumstances indicates that their carrying amounts may not be recoverable. Recoverability of these assets is measured by comparing the carrying amount to the estimated undiscounted future cash flows expected to be generated. If the carrying amount exceeds the undiscounted cash flows, the assets are determined to be impaired and an impairment charge is recognized as the amount by which the carrying amount exceeds fair value. Business Combinations We estimate the fair value of assets acquired and liabilities assumed in a business combination. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable, and as a result, actual results may differ from estimates. Leases As described in “Recently Adopted Accounting Standards” below, the Company adopted ASC 842, Leases (“ASC 842”) effective January 1, 2022. Under ASC 842, the Company determines if an arrangement is or contains a lease at inception by assessing whether the arrangement contains an identified asset and whether it has the right to control the identified asset. Right-of-use (ROU) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease liabilities are recognized at the lease commencement date based on the present value of future lease payments over the lease term. ROU assets are based on the measurement of the lease liability and also include any lease payments made prior to or on lease commencement and exclude lease incentives and initial direct costs incurred, as applicable. As the implicit rate in the Company’s leases is generally unknown, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of future lease payments. The Company considers its credit risk, term of the lease, total lease payments and adjusts for the impacts of collateral, as necessary, when calculating its incremental borrowing rates. The Company evaluates renewal options at lease inception and on an ongoing basis and includes renewal options that it is reasonably certain to exercise in its expected lease terms when classifying leases and measuring lease liabilities. Lease costs for the Company’s operating leases are recognized on a straight-line basis within operating expenses and cost of revenue over the reasonably assured lease term. The Company has elected to not separate lease and non-lease components for leases of office space and, as a result, accounts for any lease and non-lease components for office space as a single lease component, to the extent they are fixed. Non-lease components that are not fixed are expensed as incurred as variable lease payments. The Company’s office leases typically include non-lease components such as common-area maintenance costs. The Company has also elected to not apply the recognition requirement to any leases within its existing classes of assets with a term of 12 months or less. Revenue Recognition The Company generates revenue from product sales and license sales. The Company recognizes revenue when all of the following criteria are satisfied: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when, or as the Company satisfies each performance obligation. The Company constrains revenue by giving consideration to factors that could otherwise lead to a probable reversal of revenue. The Company records any payments received from customers prior to the Company fulfilling its performance obligation(s) as deferred revenue. Deferred Revenue Deferred revenue primarily consists of payments received from customers prior to the Company fulfilling its performance obligation of providing the product. When this occurs, the Company records a contract liability as deferred revenue. Deferred revenue is recognized as revenue as the related performance obligations are satisfied. Research and Development Research and development costs are expensed when incurred. For the three months ended March 31, 2022, the Company expensed $ 3,771,327 2,217,063 Stock-based Compensation The Company has granted stock-based awards, including restricted stock, stock options, stock warrants and restricted stock units (“RSUs”), to its employees, certain consultants and members of its board of directors. The Company records stock-based compensation based on the grant date fair value of the awards and recognizes the fair value of those awards as expense using the straight-line method over the requisite service period of the award. The Company estimates the grant date fair value of stock options using the Black-Scholes option-pricing model. When an award is forfeited prior to the vesting date, the Company recognizes an adjustment for the previously recognized expense in the period of the forfeiture. Income Taxes The Company accounts for income taxes in accordance with the liability method of accounting for income taxes. Under this method, deferred income tax assets and deferred income tax liabilities represent the tax effect of temporary differences between financial reporting and tax reporting measured at enacted tax rates in effect for the year in which the differences are expected to reverse. The Company recognizes only the impact of tax positions that, based on their technical merits, are more likely than not to be sustained upon an audit by the taxing authority. Valuation allowances are provided when it is more-likely-than-not that some or all of the deferred income tax assets may not be realized. In assessing the need for a valuation allowance, the Company has considered its historical levels of income, expectations of future taxable income and ongoing tax planning strategies. Developing the provision for income taxes, including the effective tax rate and analysis of potential tax exposure items, if any, requires significant judgment and expertise in federal and state income tax laws, regulations and strategies, including the determination of deferred income tax assets and liabilities and any estimated valuation allowances deemed necessary to value deferred income tax assets. Judgments and tax strategies are subject to audit by various taxing authorities. While the Company believes it has no significant uncertain income tax positions in the consolidated financial statements, adverse determinations by these taxing authorities could have a material adverse effect on the consolidated financial positions, result of operations, or cash flows. Net Income per Share Basic net income or loss per common share is computed by dividing net income or loss applicable to common shareholders by the weighted average number of shares outstanding during each period. Diluted net income or loss per share is computed by dividing net income or loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period increased by common shares that could be issued upon conversion or exercise of other outstanding securities to the extent those additional common shares would be dilutive. The dilutive effect of potentially dilutive securities is reflected in diluted net income or loss per share by application of the treasury stock method. During periods when the Company is in a net loss position, basic net loss per share is the same as diluted net loss per share as the effects of potentially dilutive securities are anti-dilutive. Concentrations Risk and Significant Customers The Company had certain customers which are each responsible for generating 10% or more of the total revenue for the three months ended March 31, 2022. Three customers together accounted for approximately 54 57 Two customers each accounted for more than 10% of accounts receivable at March 31, 2022 and December 31, 2021. These two customers together accounted for approximately 62 66 Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) that are adopted by the Company as of the specified effective date. If not discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company’s financial statements upon adoption. Recently Adopted Accounting Standards In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326) (“ASU 2016-13”), which requires the measurement and recognition of expected credit losses for certain financial instruments, which includes the Company’s accounts receivable. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. The Company adopted ASU 2016-13 on January 1, 2022. The adoption did not have an impact on the Company’s financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which requires a lessee to recognize most leases on the balance sheet as lease liabilities with corresponding right-of-use assets. The objective of ASU 2016-02 is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The recognized lease liabilities and lease assets represent the obligation to make payments and the right to use or control the use of a specified asset for the lease term, respectively. On January 1, 2022, the Company adopted Topic 842 using the modified retrospective approach with the effective date as the date of initial application. Consequently, results for the three months ended March 31, 2022 are presented under Topic 842. No prior period amounts were adjusted and continue to be reported in accordance with previous lease guidance, ASC Topic 840, Leases. The Company elected the practical expedients available under the provisions of the new standard, including not reassessing whether expired or existing contracts are or contain leases; not reassessing the classification of expired or existing leases; and not reassessing the initial direct cost for any existing leases. Upon adoption, the Company recognized an operating lease liability of $ 626,699 681,327 |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Note 3 – Business Combinations On December 31, 2021, the Company completed its acquisition of Advanced Conceptions, Inc. (“ACI”) and Idaho Molecular Inc. (“IdMo”), which were related entities developing, with the Company, an at-home/point-of-care medical diagnostic device. Upon the completion of the acquisition, all outstanding ACI and Idaho Molecular common stock was exchanged for approximately 3.2 1.4 456,000 100 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 4 – Goodwill and Intangible Assets Goodwill Goodwill represents the excess of purchase price and related costs over the value assigned to net tangible and identifiable intangible assets acquired in business combinations. The following table presents the changes in the carrying amount of goodwill for the three months ended March 31, 2022: Schedule of Goodwill Balance as of December 31, 2021 $ 14,706,818 Measurement period adjustments 101,593 Balance as of March 31, 2022 $ 14,808,411 Intangible Assets, Net The following table presents details of the Company’s intangible assets, excluding goodwill: Schedule of Intangible Assets, Net Weighted-Average Gross Net Useful Life (1) Carrying Accumulated Carrying (in Years) Amount Amortization Amount In-process research and development Indefinite $ 26,101,000 $ - $ 26,101,000 Non-competition agreements 2.7 1,094,000 (106,667 ) 987,333 Total intangible assets $ 27,195,000 $ (106,667 ) $ 27,088,333 Weighted-Average Gross Net Useful Life (1) Carrying Accumulated Carrying (in Years) Amount Amortization Amount In-process research and development Indefinite $ 26,101,000 $ $ 26,101,000 Non-competition agreements 2.7 1,094,000 - 1,094,000 Total intangible assets $ 27,195,000 $ - $ 27,195,000 (1) Based on weighted-average useful life established as of the acquisition date. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 5 – Fair Value Measurements The Company measures and records certain financial assets at fair value on a recurring basis. Fair value is based on the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company’s financial instruments that are measured at fair value on a recurring basis consist of money market funds. The following three levels of inputs are used to measure the fair value of financial instruments: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. The following table summarizes the assets measured at fair value on a recurring basis as of March 31, 2022, and December 31, 2021, by level within the fair value hierarchy: Schedule of Fair Value Assets and Liabilities (Level 1) (Level 2) (Level 3) Total March 31, 2022 (Level 1) (Level 2) (Level 3) Total Liabilities: Contingent consideration - common stock $ $ $ 6,013,939 $ 6,013,939 Contingent consideration - warrants - - 1,038,812 1,038,812 Total liabilities measured at fair value $ - $ - $ 7,052,751 $ 7,052,751 (Level 1) (Level 2) (Level 3) Total December 31, 2021 (Level 1) (Level 2) (Level 3) Total Assets: Marketable securities (certificates of deposit) $ $ 1,255,266 $ - $ 1,255,266 Total assets measured at fair value $ - $ 1,255,266 $ - $ 1,255,266 Liabilities: Contingent consideration - common stock $ - $ - $ 8,684,669 $ 8,684,669 Contingent consideration - warrants - - 1,747,972 1,747,972 Total liabilities measured at fair value $ - $ - $ 10,432,641 $ 10,432,641 The Company’s financial instruments that are measured at fair value on a recurring basis consist of certificates of deposit. The changes for Level 3 items measured at fair value on a recurring basis are as follows: Schedule of Changes in Fair Value Measurement Fair value as of December 31, 2021 $ 10,432,641 Change in fair value of contingent consideration issued for business acquisitions (3,379,890 ) Fair value as of March 31, 2022 $ 7,052,751 The fair value of the contingent consideration is based on the fair value of the contingent consideration-common stock and contingent consideration-warrants. The fair value of the contingent consideration-common stock is equal to the probability-adjusted value of the Company’s common stock as of March 31, 2022. The fair value of the contingent consideration-warrants is equal to the probability adjusted value of a call option with terms consistent with the terms of the warrants as of March 31, 2022. Prior to the probability adjustments, the warrants were valued based on the following inputs: Schedule of Contingent Consideration Common Stock and Warrants March 31, 2022 December 31, 2021 Stock price $ 6.18 $ 8.93 Strike price $ 9.13 $ 9.13 Volatility 77.50 % 80.00 % Risk-free rate 2.40 % 1.30 % Expected term 4.8 5.0 |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Note 6 – Revenue The following table sets forth revenue by geographic area: Summary of Revenue by Geographic Area Three Months Ended March 31, 2022 2021 United States $ 14,218,398 $ 12,493,950 Rest of World 8,480,646 7,530,819 Total $ 22,699,044 $ 20,024,769 Percentage of revenue by area: United States 63 % 62 % Rest of World 37 % 38 % Deferred Revenue Changes in the Company’s deferred revenue balance for the three months ended March 31, 2022 were as follows: Schedule of Deferred Revenue Balance as of December 31, 2021 $ 150,000 Revenue recognized included in deferred revenue balance at the beginning of the period (150,000 ) Balance as of March 31, 2022 $ - |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 7 – Earnings Per Share The following table reconciles the numerator and the denominator used to calculate basic and diluted earnings per share for three months ended March 31, 2022: Schedule of Basic and Diluted Earnings Per Share 2022 2021 Three Months Ended March 31, 2022 2021 Numerator Net income, as reported $ 11,714,595 $ 7,898,975 Denominator Weighted average shares, basic 33,935,570 28,662,885 Dilutive effect of stock options, warrants and RSUs 775,906 1,339,844 Shares used to compute diluted earnings per share 34,711,476 30,002,729 Basic earnings per share $ 0.35 $ 0.28 Diluted earnings per share $ 0.34 $ 0.26 For the three months ended March 31, 2022, potentially dilutive securities of 1,271,304 2,320,907 1.4 456,000 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Note 8 – Stock-Based Compensation Stock Incentive Plans The Co-Diagnostics, Inc. Amended and Restated 2015 Long Term Incentive Plan (the “Incentive Plan”) reserves an aggregate of 6,000,000 2,095,266 Stock Options The following table summarizes option activity during the three months ended March 31, 2022: Schedule of Option Activity Number of Options Weighted Average Exercise Price Weighted Average Fair Value Weighted Average Remaining Contractual Life (Years) Outstanding at December 31, 2021 1,111,363 $ 2.12 $ 1.31 6.62 Granted - - - Expired - - - Forfeited/Cancelled - - - Exercised (45,456 ) 1.10 0.51 Outstanding at March 31, 2022 1,065,907 $ 2.17 $ 1.35 6.65 Exercisable at March 31, 2022 1,049,241 $ 2.05 $ 1.21 6.63 The total intrinsic value of options exercised during the three months ended March 31, 2022 was approximately $ 0.3 4.5 Stock-based compensation cost is measured at the grant date based on the fair value of the award granted and recognized as expense over the vesting period using the straight-line method. The Company uses the Black-Scholes model to value options granted. As of March 31, 2022, there were 16,666 37,241 0.2 Restricted Stock Units The grant date fair value of RSUs granted is determined using the closing market price of the Company’s common stock on the grant date with the associated compensation expense amortized over the vesting period of the awards. The following table sets forth the outstanding RSUs and related activity for the three months ended March 31, 2022: Schedule of Outstanding Restricted Stock Units and Related Activity Number of RSUs Weighted Average Grant Date Fair Value Unvested at December 31, 2021 1,267,415 $ 9.94 Granted - - Vested (68,750 ) 10.23 Forfeited/Cancelled - - Unvested at March 31, 2022 1,198,665 $ 9.92 As of March 31, 2022, there was approximately $ 10.3 2.1 Warrants The Company has issued warrants related to financings, acquisitions and as compensation to third parties for services provided. The Company estimates the fair value of issued warrants on the date of issuance as determined using a Black-Scholes pricing model. The Company amortizes the fair value of issued warrants using a vesting schedule based on the terms and conditions of each warrant if granted for services. The following table summarizes warrant activity during the three months ended March 31, 2022: Schedule of Warrant Activity Number of Warrants Weighted Average Exercise Price Weighted Average Fair Value Weighted Average Remaining Contractual Life (Years) Outstanding at December 31, 2021 526,281 $ 8.15 $ 4.01 4.7 Granted - - - Expired - - - Forfeited/Cancelled - - - Exercised (50,000 ) 2.00 1.22 Outstanding at March 31, 2022 476,281 $ 8.80 $ 2.82 4.8 The intrinsic value of warrants exercised during the three months ended March 31, 2022 and 2021 was approximately $ 0.3 0 0.1 The total number of warrants exercisable at March 31, 2022 are 20,000 456,000 Stock Issued for Services The Company has issued restricted stock to third parties for services provided. The grant date fair value of the restricted stock granted is determined using the closing market price of the Company’s common stock on the grant date with the associated compensation expense amortized over the vesting period of the stock awards. The Company issued 0 4,290 Stock-Based Compensation Expense The Company recognized stock-based compensation expense related to the types of awards discussed above as follows: Schedule of Recognized Stock-based Compensation Expense 2022 2021 Three Months Ended March 31, 2022 2021 Options $ 40,874 $ 76,672 Restricted stock units 1,334,223 1,396,440 Stock - 39,900 Total stock-based compensation expense $ 1,375,097 $ 1,513,012 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9 – Income Taxes For the three months ended March 31, 2022, the Company recognized expense from income taxes of $ 1,386,087 10.6 21.0 1,985,640 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 10 – Related Party Transactions The Company acquired the exclusive rights to the CoPrimer technology pursuant to an exclusive license agreement, dated April 2014 (the “Exclusive License Agreement”), between the Company and DNA Logix, Inc., which was assigned to Dr. Brent Satterfield, a former executive officer, prior to the Company’s acquisition of DNA Logix, Inc. On March 1, 2017, the Company entered into an amendment to its Exclusive License Agreement for its Cooperative Primers (“License”) technology with Dr. Satterfield. The amendment provides in part that all accrued royalties under the License cease as of January 1, 2017, and the Company began in January 2017 to pay to Dr. Satterfield $ 700,000 10,000 0 120,000 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases | |
Leases | Note 11 – Leases The Company leases office space under a non-cancelable operating lease and leases cancellable with one month notice. The Company expenses the cancellable leases in the period incurred in accordance with the practical expedient elected. As such, one lease makes up the entirety of the right-of-use asset and lease liability disclosed. For the three months ended March 31, 2022, components of lease expense are summarized as follows: Schedule of Lease Expense Three Months Ended March 31, 2022 Operating lease costs $ 86,588 Short-term lease costs 76,080 Total lease costs $ 162,668 Short-term lease costs under month-to-month lease agreements are paid to related parties. As of March 31, 2022, the maturities of the Company’s lease liabilities are as follows: Schedule of Maturities on Company Lease Liabilities Year Ending December 31, 2022 (remainder) $ 221,350 2023 303,059 2024 50,774 2025 - 2026 - Thereafter - Total lease payments 575,183 Less: imputed interest 16,212 Present value of operating lease liabilities 558,971 Less: current portion 283,299 Long-term portion $ 275,672 Other information related to operating leases was as follows: Schedule of Other Information Related to Operating Lease Three Months Ended March 31, 2022 Cash paid for operating leases included in operating cash flows $ 154,882 Remaining lease term of operating leases 2 Discount rate of operating leases 3.1 % As previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2021, future lease payments under ASC 840 for operating leases were as follows: Schedule of Future Minimum Lease Payments Year Ending December 31, 2022 $ 293,595 2023 303,059 2024 50,774 Total lease payments $ 647,428 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12 – Commitments and Contingencies Litigation Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. The Company is currently a defendant in five different securities class action complaints that were filed by certain stockholders of the Company claiming that the Company promulgated false and misleading press releases to increase the price of our stock to improperly benefit the officers and directors of the Company. The plaintiffs demand compensatory damages sustained as a result of the Company’s alleged wrongdoing in an amount to be proven at trial. The Company believes these lawsuits are without merit and intends to defend the cases vigorously. The Company is unable to estimate a range of loss, if any, that could result were there to be an adverse final decision in these cases. As of the date of this report, the Company does not believe it is probable that these cases will result in an unfavorable outcome; however, if an unfavorable outcome were to occur in these cases, it is possible that the impact could be material to the Company’s results of operations in the period(s) in which any such outcome becomes probable and estimable. |
Share Repurchase Program
Share Repurchase Program | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Share Repurchase Program | Note 13 – Share Repurchase Program In March 2022, the Company’s Board of Directors authorized a share repurchase program that would allow the Company to repurchase up to $ 30.0 The Company has not made any repurchases under the share purchase program since its implementation. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 14 – Subsequent Events The Company evaluated subsequent events pursuant to ASC Topic 855 and has determined that there are no events that need to be reported. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, money market funds and highly liquid investments with an original maturity date of 90 days or less from the date of purchase. The fair value of cash equivalents approximated their carrying value as of March 31, 2022 and December 31, 2021. The Company has its cash and cash equivalents with a large creditworthy financial institution and the balance exceeded federally insured limits. The Company has not experienced any losses in such accounts, and management believes the Company is not exposed to any significant credit risk on cash and cash equivalents. |
Marketable Investment Securities | Marketable Investment Securities The Company’s marketable investment securities are comprised of investments in certificates of deposit. The Company determines the appropriate classification of its marketable investment securities at the time of purchase and reevaluates such designation at each balance sheet date. The Company has classified and accounted for its marketable investment securities as available-for-sale securities as the Company may sell these securities at any time for use in its current operations or for other purposes, even prior to maturity. As a result, the Company classifies its marketable investment securities, including securities with stated maturities beyond twelve months, within current assets in the consolidated balance sheets. Any unrealized gains or losses are immaterial. |
Accounts Receivable | Accounts Receivable Trade accounts receivable are recorded at the invoiced amount (net of allowance) and do not bear interest. The Company maintains an allowance for doubtful accounts for amounts the Company does not expect to collect. In establishing the required allowance, management considers historical losses, current market condition, customers’ financial condition, the age of receivables, and current payment patterns. Account balances are written off against the allowance once the receivable is deemed uncollectible. Recoveries of trade receivables previously written off are recorded when collected. At March 31, 2022, total accounts receivable was $ 22,379,861 717,458 21,662,403 21,508,779 669,597 20,839,182 |
Equity-Method Investments | Equity-Method Investments Our equity method investments are initially recorded at cost and are included in other long-term assets in the accompanying consolidated balance sheet. We adjust the carrying value of our investment based on our share of the earnings or losses in the periods which they are reported by the investee until the carrying amount is zero. The earnings or losses are included in other income (expense) in the accompanying consolidated statements of operations. |
Inventory | Inventory Inventory is stated at the lower of cost or net-realizable value. Inventory cost is determined on a first-in first-out basis that approximates average cost in accordance with ASC 330-10-30-12. At March 31, 2022, the Company had $ 4,901,057 4,119,549 781,508 2,004,169 983,088 1,021,081 |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is provided using the straight-line method over the estimated useful lives of the property, generally from three five years The Company reviews its long-lived assets, including property and equipment, for impairment whenever an event or change in facts and circumstances indicates that their carrying amounts may not be recoverable. Recoverability of these assets is measured by comparing the carrying amount to the estimated undiscounted future cash flows expected to be generated. If the carrying amount exceeds the undiscounted cash flows, the assets are determined to be impaired and an impairment charge is recognized as the amount by which the carrying amount exceeds fair value. |
Business Combinations | Business Combinations We estimate the fair value of assets acquired and liabilities assumed in a business combination. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable, and as a result, actual results may differ from estimates. |
Leases | Leases As described in “Recently Adopted Accounting Standards” below, the Company adopted ASC 842, Leases (“ASC 842”) effective January 1, 2022. Under ASC 842, the Company determines if an arrangement is or contains a lease at inception by assessing whether the arrangement contains an identified asset and whether it has the right to control the identified asset. Right-of-use (ROU) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease liabilities are recognized at the lease commencement date based on the present value of future lease payments over the lease term. ROU assets are based on the measurement of the lease liability and also include any lease payments made prior to or on lease commencement and exclude lease incentives and initial direct costs incurred, as applicable. As the implicit rate in the Company’s leases is generally unknown, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of future lease payments. The Company considers its credit risk, term of the lease, total lease payments and adjusts for the impacts of collateral, as necessary, when calculating its incremental borrowing rates. The Company evaluates renewal options at lease inception and on an ongoing basis and includes renewal options that it is reasonably certain to exercise in its expected lease terms when classifying leases and measuring lease liabilities. Lease costs for the Company’s operating leases are recognized on a straight-line basis within operating expenses and cost of revenue over the reasonably assured lease term. The Company has elected to not separate lease and non-lease components for leases of office space and, as a result, accounts for any lease and non-lease components for office space as a single lease component, to the extent they are fixed. Non-lease components that are not fixed are expensed as incurred as variable lease payments. The Company’s office leases typically include non-lease components such as common-area maintenance costs. The Company has also elected to not apply the recognition requirement to any leases within its existing classes of assets with a term of 12 months or less. |
Revenue Recognition | Revenue Recognition The Company generates revenue from product sales and license sales. The Company recognizes revenue when all of the following criteria are satisfied: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when, or as the Company satisfies each performance obligation. The Company constrains revenue by giving consideration to factors that could otherwise lead to a probable reversal of revenue. The Company records any payments received from customers prior to the Company fulfilling its performance obligation(s) as deferred revenue. |
Deferred Revenue | Deferred Revenue Deferred revenue primarily consists of payments received from customers prior to the Company fulfilling its performance obligation of providing the product. When this occurs, the Company records a contract liability as deferred revenue. Deferred revenue is recognized as revenue as the related performance obligations are satisfied. |
Research and Development | Research and Development Research and development costs are expensed when incurred. For the three months ended March 31, 2022, the Company expensed $ 3,771,327 2,217,063 |
Stock-based Compensation | Stock-based Compensation The Company has granted stock-based awards, including restricted stock, stock options, stock warrants and restricted stock units (“RSUs”), to its employees, certain consultants and members of its board of directors. The Company records stock-based compensation based on the grant date fair value of the awards and recognizes the fair value of those awards as expense using the straight-line method over the requisite service period of the award. The Company estimates the grant date fair value of stock options using the Black-Scholes option-pricing model. When an award is forfeited prior to the vesting date, the Company recognizes an adjustment for the previously recognized expense in the period of the forfeiture. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with the liability method of accounting for income taxes. Under this method, deferred income tax assets and deferred income tax liabilities represent the tax effect of temporary differences between financial reporting and tax reporting measured at enacted tax rates in effect for the year in which the differences are expected to reverse. The Company recognizes only the impact of tax positions that, based on their technical merits, are more likely than not to be sustained upon an audit by the taxing authority. Valuation allowances are provided when it is more-likely-than-not that some or all of the deferred income tax assets may not be realized. In assessing the need for a valuation allowance, the Company has considered its historical levels of income, expectations of future taxable income and ongoing tax planning strategies. Developing the provision for income taxes, including the effective tax rate and analysis of potential tax exposure items, if any, requires significant judgment and expertise in federal and state income tax laws, regulations and strategies, including the determination of deferred income tax assets and liabilities and any estimated valuation allowances deemed necessary to value deferred income tax assets. Judgments and tax strategies are subject to audit by various taxing authorities. While the Company believes it has no significant uncertain income tax positions in the consolidated financial statements, adverse determinations by these taxing authorities could have a material adverse effect on the consolidated financial positions, result of operations, or cash flows. |
Net Income per Share | Net Income per Share Basic net income or loss per common share is computed by dividing net income or loss applicable to common shareholders by the weighted average number of shares outstanding during each period. Diluted net income or loss per share is computed by dividing net income or loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period increased by common shares that could be issued upon conversion or exercise of other outstanding securities to the extent those additional common shares would be dilutive. The dilutive effect of potentially dilutive securities is reflected in diluted net income or loss per share by application of the treasury stock method. During periods when the Company is in a net loss position, basic net loss per share is the same as diluted net loss per share as the effects of potentially dilutive securities are anti-dilutive. |
Concentrations Risk and Significant Customers | Concentrations Risk and Significant Customers The Company had certain customers which are each responsible for generating 10% or more of the total revenue for the three months ended March 31, 2022. Three customers together accounted for approximately 54 57 Two customers each accounted for more than 10% of accounts receivable at March 31, 2022 and December 31, 2021. These two customers together accounted for approximately 62 66 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) that are adopted by the Company as of the specified effective date. If not discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company’s financial statements upon adoption. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326) (“ASU 2016-13”), which requires the measurement and recognition of expected credit losses for certain financial instruments, which includes the Company’s accounts receivable. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. The Company adopted ASU 2016-13 on January 1, 2022. The adoption did not have an impact on the Company’s financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which requires a lessee to recognize most leases on the balance sheet as lease liabilities with corresponding right-of-use assets. The objective of ASU 2016-02 is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The recognized lease liabilities and lease assets represent the obligation to make payments and the right to use or control the use of a specified asset for the lease term, respectively. On January 1, 2022, the Company adopted Topic 842 using the modified retrospective approach with the effective date as the date of initial application. Consequently, results for the three months ended March 31, 2022 are presented under Topic 842. No prior period amounts were adjusted and continue to be reported in accordance with previous lease guidance, ASC Topic 840, Leases. The Company elected the practical expedients available under the provisions of the new standard, including not reassessing whether expired or existing contracts are or contain leases; not reassessing the classification of expired or existing leases; and not reassessing the initial direct cost for any existing leases. Upon adoption, the Company recognized an operating lease liability of $ 626,699 681,327 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Schedule of Goodwill Balance as of December 31, 2021 $ 14,706,818 Measurement period adjustments 101,593 Balance as of March 31, 2022 $ 14,808,411 |
Schedule of Intangible Assets, Net | The following table presents details of the Company’s intangible assets, excluding goodwill: Schedule of Intangible Assets, Net Weighted-Average Gross Net Useful Life (1) Carrying Accumulated Carrying (in Years) Amount Amortization Amount In-process research and development Indefinite $ 26,101,000 $ - $ 26,101,000 Non-competition agreements 2.7 1,094,000 (106,667 ) 987,333 Total intangible assets $ 27,195,000 $ (106,667 ) $ 27,088,333 Weighted-Average Gross Net Useful Life (1) Carrying Accumulated Carrying (in Years) Amount Amortization Amount In-process research and development Indefinite $ 26,101,000 $ $ 26,101,000 Non-competition agreements 2.7 1,094,000 - 1,094,000 Total intangible assets $ 27,195,000 $ - $ 27,195,000 (1) Based on weighted-average useful life established as of the acquisition date. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Assets and Liabilities | The following table summarizes the assets measured at fair value on a recurring basis as of March 31, 2022, and December 31, 2021, by level within the fair value hierarchy: Schedule of Fair Value Assets and Liabilities (Level 1) (Level 2) (Level 3) Total March 31, 2022 (Level 1) (Level 2) (Level 3) Total Liabilities: Contingent consideration - common stock $ $ $ 6,013,939 $ 6,013,939 Contingent consideration - warrants - - 1,038,812 1,038,812 Total liabilities measured at fair value $ - $ - $ 7,052,751 $ 7,052,751 (Level 1) (Level 2) (Level 3) Total December 31, 2021 (Level 1) (Level 2) (Level 3) Total Assets: Marketable securities (certificates of deposit) $ $ 1,255,266 $ - $ 1,255,266 Total assets measured at fair value $ - $ 1,255,266 $ - $ 1,255,266 Liabilities: Contingent consideration - common stock $ - $ - $ 8,684,669 $ 8,684,669 Contingent consideration - warrants - - 1,747,972 1,747,972 Total liabilities measured at fair value $ - $ - $ 10,432,641 $ 10,432,641 |
Schedule of Changes in Fair Value Measurement | The changes for Level 3 items measured at fair value on a recurring basis are as follows: Schedule of Changes in Fair Value Measurement Fair value as of December 31, 2021 $ 10,432,641 Change in fair value of contingent consideration issued for business acquisitions (3,379,890 ) Fair value as of March 31, 2022 $ 7,052,751 |
Schedule of Contingent Consideration Common Stock and Warrants | The fair value of the contingent consideration is based on the fair value of the contingent consideration-common stock and contingent consideration-warrants. The fair value of the contingent consideration-common stock is equal to the probability-adjusted value of the Company’s common stock as of March 31, 2022. The fair value of the contingent consideration-warrants is equal to the probability adjusted value of a call option with terms consistent with the terms of the warrants as of March 31, 2022. Prior to the probability adjustments, the warrants were valued based on the following inputs: Schedule of Contingent Consideration Common Stock and Warrants March 31, 2022 December 31, 2021 Stock price $ 6.18 $ 8.93 Strike price $ 9.13 $ 9.13 Volatility 77.50 % 80.00 % Risk-free rate 2.40 % 1.30 % Expected term 4.8 5.0 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenue by Geographic Area | The following table sets forth revenue by geographic area: Summary of Revenue by Geographic Area Three Months Ended March 31, 2022 2021 United States $ 14,218,398 $ 12,493,950 Rest of World 8,480,646 7,530,819 Total $ 22,699,044 $ 20,024,769 Percentage of revenue by area: United States 63 % 62 % Rest of World 37 % 38 % |
Schedule of Deferred Revenue | Changes in the Company’s deferred revenue balance for the three months ended March 31, 2022 were as follows: Schedule of Deferred Revenue Balance as of December 31, 2021 $ 150,000 Revenue recognized included in deferred revenue balance at the beginning of the period (150,000 ) Balance as of March 31, 2022 $ - |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | The following table reconciles the numerator and the denominator used to calculate basic and diluted earnings per share for three months ended March 31, 2022: Schedule of Basic and Diluted Earnings Per Share 2022 2021 Three Months Ended March 31, 2022 2021 Numerator Net income, as reported $ 11,714,595 $ 7,898,975 Denominator Weighted average shares, basic 33,935,570 28,662,885 Dilutive effect of stock options, warrants and RSUs 775,906 1,339,844 Shares used to compute diluted earnings per share 34,711,476 30,002,729 Basic earnings per share $ 0.35 $ 0.28 Diluted earnings per share $ 0.34 $ 0.26 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Option Activity | The following table summarizes option activity during the three months ended March 31, 2022: Schedule of Option Activity Number of Options Weighted Average Exercise Price Weighted Average Fair Value Weighted Average Remaining Contractual Life (Years) Outstanding at December 31, 2021 1,111,363 $ 2.12 $ 1.31 6.62 Granted - - - Expired - - - Forfeited/Cancelled - - - Exercised (45,456 ) 1.10 0.51 Outstanding at March 31, 2022 1,065,907 $ 2.17 $ 1.35 6.65 Exercisable at March 31, 2022 1,049,241 $ 2.05 $ 1.21 6.63 |
Schedule of Outstanding Restricted Stock Units and Related Activity | The grant date fair value of RSUs granted is determined using the closing market price of the Company’s common stock on the grant date with the associated compensation expense amortized over the vesting period of the awards. The following table sets forth the outstanding RSUs and related activity for the three months ended March 31, 2022: Schedule of Outstanding Restricted Stock Units and Related Activity Number of RSUs Weighted Average Grant Date Fair Value Unvested at December 31, 2021 1,267,415 $ 9.94 Granted - - Vested (68,750 ) 10.23 Forfeited/Cancelled - - Unvested at March 31, 2022 1,198,665 $ 9.92 |
Schedule of Warrant Activity | The following table summarizes warrant activity during the three months ended March 31, 2022: Schedule of Warrant Activity Number of Warrants Weighted Average Exercise Price Weighted Average Fair Value Weighted Average Remaining Contractual Life (Years) Outstanding at December 31, 2021 526,281 $ 8.15 $ 4.01 4.7 Granted - - - Expired - - - Forfeited/Cancelled - - - Exercised (50,000 ) 2.00 1.22 Outstanding at March 31, 2022 476,281 $ 8.80 $ 2.82 4.8 |
Schedule of Recognized Stock-based Compensation Expense | The Company recognized stock-based compensation expense related to the types of awards discussed above as follows: Schedule of Recognized Stock-based Compensation Expense 2022 2021 Three Months Ended March 31, 2022 2021 Options $ 40,874 $ 76,672 Restricted stock units 1,334,223 1,396,440 Stock - 39,900 Total stock-based compensation expense $ 1,375,097 $ 1,513,012 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases | |
Schedule of Lease Expense | For the three months ended March 31, 2022, components of lease expense are summarized as follows: Schedule of Lease Expense Three Months Ended March 31, 2022 Operating lease costs $ 86,588 Short-term lease costs 76,080 Total lease costs $ 162,668 |
Schedule of Maturities on Company Lease Liabilities | As of March 31, 2022, the maturities of the Company’s lease liabilities are as follows: Schedule of Maturities on Company Lease Liabilities Year Ending December 31, 2022 (remainder) $ 221,350 2023 303,059 2024 50,774 2025 - 2026 - Thereafter - Total lease payments 575,183 Less: imputed interest 16,212 Present value of operating lease liabilities 558,971 Less: current portion 283,299 Long-term portion $ 275,672 |
Schedule of Other Information Related to Operating Lease | Other information related to operating leases was as follows: Schedule of Other Information Related to Operating Lease Three Months Ended March 31, 2022 Cash paid for operating leases included in operating cash flows $ 154,882 Remaining lease term of operating leases 2 Discount rate of operating leases 3.1 % |
Schedule of Future Minimum Lease Payments | As previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2021, future lease payments under ASC 840 for operating leases were as follows: Schedule of Future Minimum Lease Payments Year Ending December 31, 2022 $ 293,595 2023 303,059 2024 50,774 Total lease payments $ 647,428 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Jan. 02, 2022 | |
Product Information [Line Items] | ||||
Accounts receivable | $ 22,379,861 | $ 21,508,779 | ||
Doubtful accounts | 717,458 | 669,597 | ||
Accounts receivable, net | 21,662,403 | 20,839,182 | ||
Inventory | 4,901,057 | 2,004,169 | ||
Inventory finished goods | 4,119,549 | 983,088 | ||
Inventory raw materials | 781,508 | 1,021,081 | ||
Research and development | 3,771,327 | $ 2,217,063 | ||
Operating lease liability | 558,971 | |||
Operating right use of asset | $ 604,837 | |||
Accounting Standards Update 2016-02 [Member] | ||||
Product Information [Line Items] | ||||
Operating lease liability | $ 626,699 | |||
Operating right use of asset | $ 681,327 | |||
Three Customers Together [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 54.00% | 57.00% | ||
Two Customers Together [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 62.00% | 66.00% | ||
Minimum [Member] | ||||
Product Information [Line Items] | ||||
Estimated useful life of property | 3 years | |||
Maximum [Member] | ||||
Product Information [Line Items] | ||||
Estimated useful life of property | 5 years |
Business Combinations (Details
Business Combinations (Details Narrative) - shares | Dec. 31, 2021 | Mar. 31, 2022 |
Business Acquisition [Line Items] | ||
Warrants to purchase shares of common stock | 456,000 | |
Advanced Conceptions, Inc. and Idaho Molecular, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Number of shares exchanged | 3,200,000 | |
Number of shares on contingent consideration | 1,400,000 | |
Warrants to purchase shares of common stock | 456,000 | |
Equity method investment ownership percentage | 100.00% |
Schedule of Goodwill (Details)
Schedule of Goodwill (Details) | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwil - beginning | $ 14,706,818 |
Measurement period adjustments | 101,593 |
Goodwill - Ending | $ 14,808,411 |
Schedule of Intangible Assets,
Schedule of Intangible Assets, Net (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | ||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | $ 27,195,000 | $ 27,195,000 | |
Less accumulated amortization | (106,667) | ||
Intangible assets, net | $ 27,088,333 | $ 27,195,000 | |
In Process Research and Development [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful lives in years, term | [1] | Indefinite | Indefinite |
Intangible assets, gross | $ 26,101,000 | $ 26,101,000 | |
Less accumulated amortization | |||
Intangible assets, net | 26,101,000 | 26,101,000 | |
Noncompete Agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | 1,094,000 | 1,094,000 | |
Less accumulated amortization | (106,667) | ||
Intangible assets, net | $ 987,333 | $ 1,094,000 | |
Estimated useful lives in years | [1] | 2 years 8 months 12 days | 2 years 8 months 12 days |
[1] | Based on weighted-average useful life established as of the acquisition date. |
Schedule of Fair Value Assets a
Schedule of Fair Value Assets and Liabilities (Details) - Fair Value, Recurring [Member] - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration - common stock | $ 6,013,939 | $ 8,684,669 |
Contingent consideration - warrants | 1,038,812 | 1,747,972 |
Total liabilities measured at fair value | 7,052,751 | 10,432,641 |
Marketable securities (certificates of deposit) | 1,255,266 | |
Total assets measured at fair value | 1,255,266 | |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration - common stock | ||
Contingent consideration - warrants | ||
Total liabilities measured at fair value | ||
Marketable securities (certificates of deposit) | ||
Total assets measured at fair value | ||
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration - common stock | ||
Contingent consideration - warrants | ||
Total liabilities measured at fair value | ||
Marketable securities (certificates of deposit) | 1,255,266 | |
Total assets measured at fair value | 1,255,266 | |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration - common stock | 6,013,939 | 8,684,669 |
Contingent consideration - warrants | 1,038,812 | 1,747,972 |
Total liabilities measured at fair value | $ 7,052,751 | 10,432,641 |
Marketable securities (certificates of deposit) | ||
Total assets measured at fair value |
Schedule of Changes in Fair Val
Schedule of Changes in Fair Value Measurement (Details) | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Fair Value Disclosures [Abstract] | |
Fair value as of December 31, 2021 | $ 10,432,641 |
Change in fair value of contingent consideration issued for business acquisitions | (3,379,890) |
Fair value as of March 31, 2022 | $ 7,052,751 |
Schedule of Contingent Consider
Schedule of Contingent Consideration Common Stock and Warrants (Details) | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Expected term | 4 years 9 months 18 days | 5 years |
Measurement Input, Share Price [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants measurement input | 6.18 | 8.93 |
Measurement Input Strike Price [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants measurement input | 9.13 | 9.13 |
Measurement Input, Price Volatility [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants measurement input | 77.50 | 80 |
Measurement Input, Risk Free Interest Rate [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants measurement input | 2.40 | 1.30 |
Summary of Revenue by Geographi
Summary of Revenue by Geographic Area (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 22,699,044 | $ 20,024,769 |
Americas [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 14,218,398 | $ 12,493,950 |
Americas [Member] | Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of revenue | 63.00% | 62.00% |
Rest of World [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 8,480,646 | $ 7,530,819 |
Rest of World [Member] | Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of revenue | 37.00% | 38.00% |
Schedule of Deferred Revenue (D
Schedule of Deferred Revenue (Details) | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Deferred revenue, beginning balance | $ 150,000 |
Revenue recognized included in deferred revenue balance at the beginning of the period | (150,000) |
Deferred revenue, Ending balance |
Schedule of Basic and Diluted E
Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Net income, as reported | $ 11,714,595 | $ 7,898,975 |
Weighted average shares, basic | 33,935,570 | 28,662,885 |
Dilutive effect of stock options, warrants and RSUs | 775,906 | 1,339,844 |
Shares used to compute diluted earnings per share | 34,711,476 | 30,002,729 |
Basic earnings per share | $ 0.35 | $ 0.28 |
Diluted earnings per share | $ 0.34 | $ 0.26 |
Earnings Per Share (Details Nar
Earnings Per Share (Details Narrative) - shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Securities excluded from computation of diluted earnings per share | 1,271,304 | 2,320,907 |
Common Stock [Member] | ||
Securities excluded from computation of diluted earnings per share | 1,400,000 | |
Warrant [Member] | ||
Securities excluded from computation of diluted earnings per share | 456,000 |
Schedule of Option Activity (De
Schedule of Option Activity (Details) | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Share-Based Payment Arrangement [Abstract] | |
Number of Options Outstanding, Beginning | shares | 1,111,363 |
Weighted Average Exercise Price Outstanding, Beginning | $ 2.12 |
Weighted Average Fair Value Outstanding, Beginning | $ 1.31 |
Weighted-average Remaining Contractual Life (years) Outstanding, Beginning | 6 years 7 months 13 days |
Number of Options Outstanding, Granted | shares | |
Weighted Average Exercise Price Granted | |
Weighted Average Fair Value Granted | |
Number of Options Outstanding, Expired | shares | |
Weighted Average Exercise Price Expired | |
Weighted Average Fair Value Expired | |
Number of Options Outstanding, Forfeited/Cancelled | shares | |
Weighted Average Exercise Price Forfeited/Cancelled | |
Weighted Average Fair Value Forfeited/Cancelled | |
Number of Options Outstanding, Exercised | shares | (45,456) |
Weighted Average Exercise Price Exercised | $ 1.10 |
Weighted Average Fair Value Exercised | $ 0.51 |
Number of Options Outstanding, Ending | shares | 1,065,907 |
Weighted Average Exercise Price Outstanding, Ending | $ 2.17 |
Weighted Average Fair Value Outstanding, Ending | $ 1.35 |
Weighted-average Remaining Contractual Life (years) Outstanding, Ending | 6 years 7 months 24 days |
Number of Options Exercisable Ending | shares | 1,049,241 |
Weighted Average Exercise Price, Exercisable Ending | $ 2.05 |
Weighted Average Fair Value, Exercisable Ending | $ 1.21 |
Weighted-average Remaining Contractual Life (years), Exercisable Ending | 6 years 7 months 17 days |
Schedule of Outstanding Restric
Schedule of Outstanding Restricted Stock Units and Related Activity (Details) - Restricted Stock Units (RSUs) [Member] | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Number of Restricted Stock Units, Outstanding Beginning | shares | 1,267,415 |
Weighted Average Grant Date Fair Value, Outstanding Beginning | $ / shares | $ 9.94 |
Number of Restricted Stock Units, Granted | shares | |
Weighted Average Grant Date Fair Value, Granted | $ / shares | |
Number of Restricted Stock Units, Vested | shares | (68,750) |
Weighted Average Grant Date Fair Value, Vested | $ / shares | $ 10.23 |
Number of Restricted Stock Units, Forfeited/Cancelled | shares | |
Weighted Average Grant Date Fair Value, Forfeited/Cancelled | $ / shares | |
Number of Restricted Stock Units, Outstanding Ending | shares | 1,198,665 |
Weighted Average Grant Date Fair Value, Outstanding Ending | $ / shares | $ 9.92 |
Schedule of Warrant Activity (D
Schedule of Warrant Activity (Details) | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Share-Based Payment Arrangement [Abstract] | |
Number of Warrants Outstanding, Beginning | shares | 526,281 |
Weighted Average Exercise Price, Beginning | $ 8.15 |
Weighted Average Fair Value, Beginning | $ 4.01 |
Weighted-average Remaining Contractual Life (Years) Outstanding, Beginning | 4 years 8 months 12 days |
Number of Warrants Outstanding, Granted | shares | |
Weighted Average Exercise Price, Granted | |
Weighted Average Fair Value, Granted | |
Number of Warrants Outstanding, Expired | shares | |
Weighted Average Exercise Price, Expired | |
Weighted Average Fair Value, Expired | |
Number of Warrants Outstanding, Forfeited/Cancelled | shares | |
Weighted Average Exercise Price, Forfeited/Cancelled | |
Weighted Average Fair Value, Forfeited/Cancelled | |
Number of Warrants Outstanding, Exercised | shares | (50,000) |
Weighted Average Exercise Price, Exercised | $ 2 |
Weighted Average Fair Value, Exercised | $ 1.22 |
Number of Warrants Outstanding, Ending | shares | 476,281 |
Weighted Average Exercise Price, Ending | $ 8.80 |
Weighted Average Fair Value, Ending | $ 2.82 |
Weighted-average Remaining Contractual Life (Years) Outstanding, Ending | 4 years 9 months 18 days |
Schedule of Recognized Stock-ba
Schedule of Recognized Stock-based Compensation Expense (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 1,375,097 | $ 1,513,012 |
Share-Based Payment Arrangement, Option [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Total stock-based compensation expense | 40,874 | 76,672 |
Restricted Stock Units (RSUs) [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Total stock-based compensation expense | 1,334,223 | 1,396,440 |
Share-Based Payment Arrangement [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 39,900 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Warrants exercisable | 20,000 | |
Warrants to purchase a common stock | 456,000 | |
Warrant [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Aggregate intrinsic value of options outstanding | $ 100,000 | |
Stock Options [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Intrinsic value of options value exercised | 300,000 | |
Aggregate intrinsic value of options outstanding | $ 4,500,000 | |
Unvested options | 16,666 | |
Unrecognized stock-based compensation | $ 37,241 | |
Unrecognized stock-based compensation recognition period | 2 months 12 days | |
Intrinsic value of warrants exercised | $ 300,000 | $ 0 |
Restricted Stock Units (RSUs) [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Unrecognized stock-based compensation | $ 10,300,000 | |
Unrecognized stock-based compensation recognition period | 2 years 1 month 6 days | |
Restricted Stock [Member] | Third Parties [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Number of shares issued for services | 0 | 4,290 |
2015 Long Term Incentive Plan [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Aggregate number of common shares reserved | 6,000,000 | |
Number of common shares availalble for issuance | 2,095,266 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense benefit | $ 1,386,087 | $ 1,985,640 |
Effective tax rate | 10.60% | |
Effective federal statutory tax rate | 21.00% |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - Exclusive License Agreement [Member] - Dr. Brent Satterfield [Member] - USD ($) | 1 Months Ended | ||
Jan. 30, 2017 | Mar. 31, 2022 | Mar. 31, 2021 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Accrued royalties | $ 700,000 | ||
Payment for royalties per month | $ 10,000 | ||
Due to related party | $ 0 | $ 120,000 |
Schedule of Lease Expense (Deta
Schedule of Lease Expense (Details) | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Leases | |
Operating lease costs | $ 86,588 |
Short-term lease costs | 76,080 |
Total lease costs | $ 162,668 |
Schedule of Maturities on Compa
Schedule of Maturities on Company Lease Liabilities (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Leases | ||
2022 (remainder) | $ 221,350 | |
2023 | 303,059 | |
2024 | 50,774 | |
2025 | ||
2026 | ||
Thereafter | ||
Total lease payments | 575,183 | |
Less: imputed interest | 16,212 | |
Present value of operating lease liabilities | 558,971 | |
Less: current portion | 283,299 | |
Long-term portion | $ 275,672 |
Schedule of Other Information R
Schedule of Other Information Related to Operating Lease (Details) | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Leases | |
Cash paid for operating leases included in operating cash flows | $ 154,882 |
Remaining lease term of operating leases | 2 years |
Discount rate of operating leases | 3.10% |
Schedule of Future Minimum Leas
Schedule of Future Minimum Lease Payments (Details) | Mar. 31, 2022USD ($) |
Leases | |
2022 | $ 293,595 |
2023 | 303,059 |
2024 | 50,774 |
Total lease payments | $ 647,428 |
Share Repurchase Program (Detai
Share Repurchase Program (Details Narrative) $ in Millions | Mar. 31, 2022USD ($) |
Equity [Abstract] | |
Stock repurchase program authorized amount | $ 30 |