Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 28, 2023 | Jun. 30, 2022 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 000-55838 | ||
Entity Registrant Name | Wrap Technologies, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 98-0551945 | ||
Entity Address, Address Line One | 1817 W 4th Street | ||
Entity Address, City or Town | Tempe | ||
Entity Address, State or Province | AZ | ||
Entity Address, Postal Zip Code | 85281 | ||
City Area Code | 800 | ||
Local Phone Number | 583-2652 | ||
Title of 12(b) Security | Common Stock, par value $0.0001 per share | ||
Trading Symbol | WRAP | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 76,245,419 | ||
Entity Common Stock, Shares Outstanding (in shares) | 41,256,885 | ||
Auditor Firm ID | 89 | ||
Auditor Name | Rosenberg Rich Baker Berman, P.A. | ||
Auditor Location | Somerset, New Jersey | ||
Entity Central Index Key | 0001702924 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 5,330 | $ 4,937 |
Short-term investments | 13,949 | 29,983 |
Accounts receivable and contract assets, net | 2,830 | 3,859 |
Inventories, net | 3,975 | 1,566 |
Prepaid expenses and other current assets | 775 | 868 |
Total current assets | 26,859 | 41,213 |
Property and equipment, net | 758 | 976 |
Operating lease right-of-use asset, net | 285 | 51 |
Intangible assets, net | 2,569 | 1,982 |
Other assets | 100 | 9 |
Total assets | 30,571 | 44,231 |
Current liabilities: | ||
Accounts payable | 1,419 | 1,779 |
Accrued liabilities | 1,463 | 824 |
Customer deposits | 0 | 43 |
Deferred revenue- short term | 166 | 155 |
Operating lease liability - short term | 108 | 56 |
Total current liabilities | 3,156 | 2,857 |
Long-term liabilities: | ||
Deferred revenue- long term | 167 | 110 |
Operating lease liability - long term | 193 | 0 |
Total long-term liabilities | 360 | 110 |
Total liabilities | 3,516 | 2,967 |
Commitments and contingencies (Note 9 and 13) | ||
Stockholders' equity: | ||
Preferred stock - 5,000,000 authorized; par value $0.0001 per share; none issued and outstanding | 0 | 0 |
Common stock - 150,000,000 authorized; par value $0.0001 per share; 41,175,993 and 40,851,945 shares issued and outstanding each period, respectively | 4 | 4 |
Additional paid-in capital | 94,333 | 91,025 |
Accumulated deficit | (67,376) | (49,759) |
Accumulated other comprehensive loss | 94 | (6) |
Total stockholders' equity | 27,055 | 41,264 |
Total liabilities and stockholders' equity | $ 30,571 | $ 44,231 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Preferred Stock, Shares Authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred Stock, Shares Issued (in shares) | 0 | 0 |
Preferred Stock, Shares Outstanding, Ending Balance (in shares) | 0 | 0 |
Common Stock, Shares Authorized (in shares) | 150,000,000 | 150,000,000 |
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common Stock, Shares, Issued (in shares) | 41,175,993 | 40,851,945 |
Common Stock, Shares, Outstanding, Ending Balance (in shares) | 41,175,993 | 40,851,945 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues: | ||
Product sales | $ 7,481 | $ 7,381 |
Other revenue | 568 | 348 |
Total revenues | 8,049 | 7,729 |
Cost of revenues | ||
Products and services | 4,315 | 4,987 |
Product line exit expense | 0 | 747 |
Total cost of revenues | 4,315 | 5,734 |
Gross profit | 3,734 | 1,995 |
Operating expenses: | ||
Selling, general and administrative | 16,386 | 20,276 |
Research and development | 5,078 | 6,214 |
Total operating expenses | 21,464 | 26,490 |
Loss from operations | (17,730) | (24,495) |
Other income (expense): | ||
Investment income | 52 | 31 |
Other | 61 | 15 |
Nonoperating Income (Expense), Total | 113 | 46 |
Net loss | $ (17,617) | $ (24,449) |
Net loss per basic and diluted common share (in dollars per share) | $ (0.43) | $ (0.62) |
Weighted average common shares used to compute net loss per basic and diluted common share (in shares) | 41,174,812 | 39,281,620 |
Comprehensive loss: | ||
Net loss | $ (17,617) | $ (24,449) |
Net unrealized gain (loss) on short-term investments | 100 | (21) |
Comprehensive loss | $ (17,517) | $ (24,470) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] Warrants at $6.50 Per Share [Member] | Common Stock [Member] Warrants at $8.125 Per Share [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] Warrants at $6.50 Per Share [Member] | Additional Paid-in Capital [Member] Warrants at $8.125 Per Share [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] Warrants at $6.50 Per Share [Member] | Retained Earnings [Member] Warrants at $8.125 Per Share [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] Warrants at $6.50 Per Share [Member] | AOCI Attributable to Parent [Member] Warrants at $8.125 Per Share [Member] | AOCI Attributable to Parent [Member] | Warrants at $6.50 Per Share [Member] | Warrants at $8.125 Per Share [Member] | Total |
Balance | $ 4 | $ 71,705 | $ (25,310) | $ 15 | $ 46,414 | ||||||||||
Balance (in shares) at Dec. 31, 2020 | 37,554,162 | ||||||||||||||
Balance at Dec. 31, 2020 | $ 4 | 71,705 | (25,310) | 15 | 46,414 | ||||||||||
Common shares issued upon exercise of warrants (in shares) | 1,661,320 | 153,692 | |||||||||||||
Common shares issued upon exercise of warrants | $ 0 | $ 0 | $ 10,798 | $ 1,249 | $ 0 | $ 0 | $ 0 | $ 0 | $ 10,798 | $ 1,249 | |||||
Common shares issued upon exercise of stock options (in shares) | 915,404 | ||||||||||||||
Common shares issued upon exercise of stock options | $ 0 | 1,678 | 0 | 0 | 1,678 | ||||||||||
Common shares issued upon vesting of restricted stock units (in shares) | 524,491 | ||||||||||||||
Common shares issued upon vesting of restricted stock units | $ 0 | 0 | 0 | 0 | 0 | ||||||||||
Common shares issued for services (in shares) | 42,876 | ||||||||||||||
Common shares issued for services | $ 0 | 239 | 0 | 0 | 239 | ||||||||||
Share-based compensation expense | 0 | 5,356 | 0 | 0 | 5,356 | ||||||||||
Net unrealized gain (loss) on short-term investments | 0 | 0 | 0 | (21) | (21) | ||||||||||
Net loss | 0 | 0 | (24,449) | 0 | (24,449) | ||||||||||
Net loss for the period | $ 0 | 0 | (24,449) | 0 | (24,449) | ||||||||||
Balance (in shares) at Dec. 31, 2021 | 40,851,945 | ||||||||||||||
Balance | $ 4 | 91,025 | (49,759) | (6) | 41,264 | ||||||||||
Balance at Dec. 31, 2021 | $ 4 | 91,025 | (49,759) | (6) | $ 41,264 | ||||||||||
Common shares issued upon exercise of stock options (in shares) | 55,500 | 55,500 | |||||||||||||
Common shares issued upon exercise of stock options | $ 0 | 83 | 0 | 0 | $ 83 | ||||||||||
Common shares issued upon vesting of restricted stock units (in shares) | 268,548 | ||||||||||||||
Common shares issued upon vesting of restricted stock units | $ 0 | 0 | 0 | 0 | 0 | ||||||||||
Share-based compensation expense | 0 | 3,225 | 0 | 0 | 3,225 | ||||||||||
Net unrealized gain (loss) on short-term investments | 0 | 0 | 0 | 100 | 100 | ||||||||||
Net loss | 0 | 0 | (17,617) | 0 | (17,617) | ||||||||||
Net loss for the period | $ 0 | 0 | (17,617) | 0 | (17,617) | ||||||||||
Balance (in shares) at Dec. 31, 2022 | 41,175,993 | ||||||||||||||
Balance | $ 4 | $ 94,333 | $ (67,376) | $ 94 | $ 27,055 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parentheticals) | Dec. 31, 2021 $ / shares |
Warrants at $6.50 Per Share [Member] | |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 6.50 |
Warrants at $8.125 Per Share [Member] | |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 8.125 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flows From Operating Activities: | ||
Net loss | $ (17,617) | $ (24,449) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 762 | 478 |
Share-based compensation | 3,225 | 5,356 |
Common shares issued for services | 0 | 239 |
Product line exit expense | 0 | 747 |
Gain on sale of assets | 0 | (27) |
Warranty provision | 210 | 10 |
Software impairment charge | 0 | 170 |
Change in contingent liability | 0 | (23) |
Non-cash lease expense | 101 | 88 |
Provision for doubtful accounts | 72 | 123 |
Changes in assets and liabilities: | ||
Accounts receivable | 957 | (2,111) |
Inventories | (2,410) | 559 |
Prepaid expenses and other current assets | 93 | (109) |
Accounts payable | (360) | 546 |
Operating lease liability | (91) | (94) |
Customer deposits | (43) | 41 |
Accrued liabilities and other | 611 | (54) |
Warranty settlement | (181) | 38 |
Deferred revenue | 68 | 249 |
Net cash used in operating activities | (14,603) | (18,223) |
Cash Flows From Investing Activities: | ||
Purchase of short-term investments | (30,466) | (55,014) |
Proceeds from maturities of short-term investments | 46,600 | 50,005 |
Capital expenditures for property and equipment | (256) | (995) |
Proceeds from long-term deposits | (92) | |
Proceeds from long-term deposits | 4 | |
Net cash provided by (used in) investing activities | 14,913 | (6,937) |
Cash Flows From Financing Activities: | ||
Proceeds from exercise of warrants | 0 | 12,047 |
Proceeds from exercise of stock options | 83 | 1,678 |
Repayment of debt | 0 | (275) |
Net cash provided by financing activities | 83 | 13,450 |
Net (decrease) increase in cash and cash equivalents | 393 | (11,710) |
Cash and cash equivalents, beginning of period | 4,937 | 16,647 |
Cash and cash equivalents, end of period | 5,330 | 4,937 |
Supplemental Disclosure of Non-Cash Investing and Financing Activities: | ||
Change in unrealized gain on short-term investments | 100 | (21) |
Right-of-use asset and liability recorded during period | 234 | 0 |
Patents and Trademarks [Member] | ||
Cash Flows From Investing Activities: | ||
Investment in patents and trademarks | (173) | (187) |
Intangibles Other than Patents and Trademarks [Member] | ||
Cash Flows From Investing Activities: | ||
Investment in patents and trademarks | $ (700) | $ (750) |
Note 1 - Organization and Summa
Note 1 - Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Business Description Wrap Technologies, Inc., a Delaware corporation (the “ Company we us our Common Stock Nasdaq Principles of Consolidation The Company has one VR Basis of Presentation and Use of Estimates The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the US of America (“ US GAAP Concentrations of Risk Credit Risk Concentrations of Accounts Receivable and Revenue Concentration of Suppliers Impact of COVID-19 ( COVID-19 Cash and Cash Equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less from the purchase date to be cash equivalents. Cash equivalents consist primarily of amounts invested in Money Market Funds and US (“ US Short-Term Investments The Company’s short-term investments consist of US Treasury bills with original maturities beyond three months at the date of purchase and one year or less from the balance sheet date. As of December 31, 2021, all of the Company’s short-term investments were classified as available-for-sale and are carried at estimated fair value with any unrealized gains and losses, unrelated to credit loss factors, included in other comprehensive income in our consolidated statements of stockholders’ equity. Share-Based Compensation The Company follows the fair value recognition provisions issued by the FASB in ASC Topic 718, Stock Compensation (“ ASC 718 ASU Loss per Share Basic loss per common share is computed by dividing net loss for the period by the weighted-average number of shares of Common Stock outstanding during the period. Diluted net loss per common share reflects the potential dilution of securities that could share in the earnings of an entity. The Company’s losses for the periods presented cause the inclusion of potential Common Stock instruments outstanding to be antidilutive. Stock options and restricted stock units exercisable or issuable for a total of 6,413,546 and 5,596,853 shares of Common Stock were outstanding at December 31, 2022 and 2021, respectively. These securities are not included in the computation of diluted net loss per common share for the periods presented as their inclusion would be antidilutive due to losses incurred by the Company. Accounts Receivable and Allowance for Credit Losses ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) At December 31, 2022 and 2021, the Company had an allowance for credit losses related to accounts receivable of $205 and $134, respectively. If a major customer’s creditworthiness deteriorates, or actual defaults exceed our historical experience, such estimates could change and impact our future reported financial results. Inventories Inventories are valued at the lower of cost or net realizable value. The cost of substantially all the Company’s inventory is determined by the FIFO cost method. Inventory is comprised of raw materials, assemblies and finished products intended for sale to customers . At December 31, 2022 and 2021 the Company had no reserve for obsolescence. Property, Equipment and Depreciation Property and equipment is stated at cost. Depreciation on property and equipment is computed over the estimated useful lives of three years using the straight-line method. On any retirement or disposition of property and equipment, the related cost and accumulated depreciation or amortization is removed, and a gain or loss recorded. Business Combinations Transactions in which the Company obtains control of a business are accounted for according to the acquisition method as described in ASC 805, Business Combinations. The assets acquired and liabilities assumed are recognized and measured at their fair values as of the date control is obtained. The Company measures goodwill as the excess of consideration transferred, which the Company also measures at fair value, over the net of the acquisition date amounts of the identifiable assets acquired and liabilities assumed. Acquisition related costs in connection with a business combination are expensed as incurred. Contingent consideration is recognized and measured at fair value at the acquisition date and until paid is re-measured on a recurring basis and classified as a liability. Intangible Assets Intangible assets consist of (a) capitalized legal fees and filing costs related to obtaining patents and trademarks, (b) tradenames and software, (c) purchased software, and (d) the purchase cost of indefinite-lived website domains. The estimated useful lives of identifiable intangible assets with definite useful lives have been estimated to be between one and twenty years. Purchased website domain costs with an indefinite useful life are not subject to amortization, but are subject to an annual impairment test, by comparing their carrying amount with their corresponding fair value. For any given intangible asset with an indefinite useful life, if its fair value exceeds its carrying amount no impairment loss shall be recognized. The carrying value of intangibles is periodically reviewed and impairments, if any, are recognized when the future undiscounted cash flows realized from the assets is less than its carrying value. Impairment of Long-Lived Assets Long-lived assets and identifiable intangibles held for use are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the sum of undiscounted expected future cash flows is less than the carrying amount of the asset or if changes in facts and circumstances indicate, an impairment loss is recognized and measured using the asset’s fair value. The Company did not recognize any other impairment loss during the years ended December 31, 2022 and 2021. Classification and Valuation of Warrants The Company accounts for warrants as either equity or liabilities based upon the characteristics and provisions of each particular instrument. Warrants valued and classified as equity are recorded as additional paid-in capital based on the issue date fair value and no further adjustment to valuation is made. As of December 31, 2022, the Company has no warrants or other derivative financial instruments that require separate accounting as liabilities and periodic revaluation. Advertising and Promotion Costs Advertising costs are charged to expense as incurred and were $426 and $145 for the years ended December 31, 2022 and 2021, respectively. The Company also incurred product promotion costs for demonstration products delivered to prospective customers of $688 and $924 for the years ended December 31, 2022 and 2021, respectively. Advertising and promotion costs are included in selling, general and administrative expenses in the accompanying statements of operations. Demonstration and Training Costs The Company maintains a demonstration and training department as a part of its sales and marketing activities and does not charge for product demonstrations or training. Training is not a condition or requirement of sale as most sales are made through distributors to their end customers. The Company conducts local and regional in-person, webinar and on-line demonstrations and use of force and escalation training to support law enforcement agencies with no purchase requirement. Such training, when provided, may occur before or after initial or subsequent purchase or field deployment of the Company’s products. The Company believes that law enforcement trainers and officers that have seen demonstrations or have been trained about its products are more supportive of their departments purchase and deployment of product. Research and Development Costs Research and development costs are expensed as incurred. Contract Manufacturers The Company employs contract manufacturers for production of certain components and sub-assemblies. The Company may provide parts and components to such parties from time to time but recognizes no revenue or markup on such transactions. Leases The Company adopted ASC Topic 842, Leases (“ Topic 842 Revenue Recognition The Company adopted ASC Topic 606, Revenue from Contracts with Customers on January 1, 2018. The Company enters into contracts that include various combinations of products, accessories, software and services, each of which are generally distinct and are accounted for as separate performance obligations. Product sales include BolaWrap products and accessories. Other revenue includes VR revenues, service, training and shipping revenues. A performance obligation is a promise in a contract to transfer a distinct good or service to a customer and is the unit of account in Topic 606. For contracts with a single performance obligation, the entire transaction price is allocated to the single performance obligation. For contracts with multiple performance obligations, the Company allocates the contract transaction price to each performance obligation using the Company’s estimate of the standalone selling price (“ SSP SSPs Most of the Company’s products and accessories are sold through domestic and international distributors. Performance obligations to deliver products and accessories are generally satisfied at the point in time the Company ships the product, as this is when the customer obtains control of the asset under our standard terms and conditions. Periodically, certain customers request bill and hold transactions for future delivery as scheduled and designated by them. In such cases, revenue is not recognized until after control, title and risk of ownership has transferred which is generally when the customer has requested such transaction under normal billing and payment terms and has been notified that the product (i) has been completed according to customer specifications, (ii) has passed quality control inspections, and (iii) has been tagged and packed for shipment, separated from other inventory and ready for physical transfer to the customer. The value associated with custodial storage services is deemed immaterial in the context of such contracts and in total, and accordingly, none of the transaction price is allocated to such service. The Company has elected to recognize shipping costs as an expense in cost of revenue when control has transferred to the customer. Time-based VR system contracts generally include setup, training and the use of software and hardware for a fixed term, generally one to five years and support and upgrade services during the same period. The Company does not sell time-based arrangements without setup, training and support services and therefore revenues for the entire arrangement are recognized on a straight-line basis over the term. When hardware is bundled and not sold separately the Company allocates the contract transaction price to each performance obligation using the SSP of each distinct good and service in the contract. The timing of revenue recognition may differ from the timing of invoicing to customers. The Company generally has an unconditional right to consideration when customers are invoiced, and a receivable is recorded. A contract asset is recognized when revenue is recognized prior to invoicing, or a contract liability (deferred revenue) when revenue will be recognized subsequent to invoicing. The Company may receive consideration, per terms of a contract, from customers prior to transferring goods to the customer. The Company records customer deposits as a contract liability. Additionally, the Company may receive payments, most typically for service and warranty contracts, at the onset of the contract and before the services have been performed. In such instances, a deferred revenue liability is recorded. The Company recognizes these contract liabilities as revenue after all revenue recognition criteria are met. Estimated costs for the Company’s standard warranty, generally one-year, are charged to cost of products sold when revenue is recorded for the related product. Royalties are also charged to cost of products sold. Shipping and Handling Costs Shipping and handling costs are included in cost of revenues. Shipping and handling costs invoiced to customers are included in revenue. Actual shipping and handling costs were $296 and $167 for the years ended December 31, 2022 and 2021, respectively. Actual revenues from shipping and handling were $109 and $88 for the years ended December 31, 2022 and 2021, respectively. Exit Activity Expense During 2021 the Company recorded $747 of product line exit costs related to the wind down and closure of the BolaWrap 100 product line related to a shift in production efforts to a new BolaWrap 150 generation product requiring new tooling, new production equipment and processes and additional licensing. These non-cash inventory costs included end of life raw material write offs of $641 and tooling retirement costs of $106. The $747 of exit costs were recorded as a component of cost of revenues. There was no such expense recorded during the year ended December 31, 2022. Development and start-up expense of new products are expensed as incurred except for capitalized equipment and tooling. Warranty Reserves The Company warrants its products and accessories to be free from defects in materials and workmanship for a period of one year from the date of purchase. The warranty is generally limited. The Company currently provides direct warranty service. International market warranties are generally similar to the US market. The Company establishes a warranty reserve based on anticipated warranty claims at the time product revenues are recognized. Factors affecting warranty reserve levels include the number of units sold, anticipated cost of warranty repairs and anticipated rates of warranty claims. The Company evaluates the adequacy of the provision for warranty costs each reporting period. The warranty reserve was $125 and $96 at December 31, 2022 and 2021. Actual warranty costs could differ from estimates. Segment Information ASC Topic 280, “Segment Reporting,” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. The Company operates as a single segment and will evaluate additional segment disclosure requirements as it expands its operations. Income Taxes No income tax expense was recorded for the periods ended December 31, 2022 and 2021 due to losses incurred. Deferred tax assets and liabilities are determined based on temporary differences between the bases of certain assets and liabilities for income tax and financial reporting purposes. The Company maintains a valuation allowance with respect to deferred tax assets. The Company establishes a valuation allowance based upon the potential likelihood of realizing the deferred tax asset and taking into consideration the Company’s financial position and results of operations for the current period. Future realization of the deferred tax benefit depends on the existence of sufficient taxable income within the carry-forward period under the Federal tax laws. Changes in circumstances, such as the Company generating taxable income, could cause a change in judgment about the realizability of the related deferred tax asset. Any change in the valuation allowance will be included in income in the year of the change in estimates. Recently Issued Accounting Guidance In October 2021 , FASB ASU Accounting for Contract Assets and Contract Liabilities from Contracts with Customers ASU 2021-08 ASC , Revenue from Contracts with Customers Topic 606 , The Company has reviewed other recently issued, but not yet effective, accounting pronouncements and does not believe the future adoptions of any such pronouncements will be expected to cause a material impact on its financial condition or the results of operations. |
Note 2 - Revenue and Product Co
Note 2 - Revenue and Product Costs | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 2. REVENUE AND PRODUCT COSTS Revenues consist of product revenue and other revenue. Product sales include BolaWrap products and accessories. Other revenue includes VR revenues, service, training and shipping revenues. The table below details the activity in our contract liabilities during the year ended December 31, 2022. Customer Deferred Deposits Revenue Balance at January 1, 2022 $ 43 $ 265 Additions, net - 301 Transfer to revenue (43 ) (233 ) Balance at December 31, 2022 $ - $ 333 Current portion $ - $ 166 Long-term portion $ - $ 167 At December 31, 2022, the Company’s deferred revenue of $333 thousand of deferred revenue at December 31, 2022, of which $198 thousand related to VR, $11 thousand was related to training and $124 thousand related to BolaWrap extended warranties and services. At December 31, 2021, the Company’s deferred revenue of $265 consisted of $172 related to VR training and $67 related to extended warranties and services. The Company recognizes an asset if there are incremental costs of obtaining a contract with a customer such as commissions. These costs are ascribed to or allocated to the underlying performance obligations in the contract and amortized consistent with the recognition timing of the revenue for any such underlying performance obligations. The Company had no . |
Note 3 - Asset Acquisition
Note 3 - Asset Acquisition | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 3. ASSET ACQUISITION On November 22, 2022, Wrap Technologies, Inc. (the “ Company Agreement Service Provider Technology, Services, and License |
Note 4 - Financial Instruments
Note 4 - Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Financial Instruments Disclosure [Text Block] | 4. FINANCIAL INSTRUMENTS Assets and liabilities recorded at fair value on a recurring basis in the Consolidated Balance Sheets and assets and liabilities measured at fair value on a non-recurring basis or disclosed at fair value, are categorized based upon the level of judgment associated with inputs used to measure their fair values. The accounting guidance for fair value provides a framework for measuring fair value and requires certain disclosures about how fair value is determined. Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The accounting guidance also establishes a three-level valuation hierarchy that prioritizes the inputs to valuation techniques used to measure fair value based upon whether such inputs are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions made by the reporting entity. The three-level hierarchy for the inputs to valuation techniques is briefly summarized as follows: Level 1 Level 2 Level 3 The Company’s cash equivalent Money Market Funds and short-term investments consisting of US Treasury bill securities are classified as Level 1 because they are valued using quoted market prices. The following table shows the Company’s cash and cash equivalents, Money Market Funds and short-term investments by significant investment category as of December 31, 2022 and 2021. As of December 31, 2022 Adjusted Unrealized Unrealized Market Cost Gains Losses Value Level 1: Money Market Funds $ 3,004 $ - $ - $ 3,004 US Treasury securities in short-term investments 9,849 100 - 9,949 Certificate of Deposits 4,000 - - 4,000 Total Financial Assets $ 16,853 $ 100 $ - $ 16,953 As of December 31, 2021 Adjusted Unrealized Unrealized Market Cost Gains Losses Value Level 1: Money Market Funds $ 1,670 $ - $ - $ 1,670 US Treasury securities in short-term investments 29,989 - (6 ) 29,983 Total Financial Assets $ 31,659 $ - $ (6 ) $ 31,653 Unrealized gains or losses resulting from our short-term investments are recorded in accumulated other comprehensive gain or loss. During the year ended December 31, 2022 and 2021, $100 and $(21) was recorded to accumulated other comprehensive loss and gain, respectively. Our financial instruments also include accounts receivable, accounts payable, accrued liabilities and business acquisition liabilities. Due to the short-term nature of these instruments, their fair values approximate their carrying values on the balance sheets. |
Note 5 - Inventories, Net
Note 5 - Inventories, Net | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 5. INVENTORIES, NET Inventory is recorded at the lower of cost or net realizable value. The cost of substantially all the Company’s inventory is determined by the FIFO cost method. Inventories consisted of the following: December 31, 2022 2021 Finished goods $ 2,293 $ 1,027 Work in process - 2 Raw materials 1,682 537 Inventories - net $ 3,975 $ 1,566 As part of product line exit costs end of life raw material costs aggregating $621 were written off during the year ended December 31, 2021. |
Note 6 - Property and Equipment
Note 6 - Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 6. PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following: December 31, 2022 2021 Production and lab equipment $ 513 $ 500 Tooling 448 273 Computer equipment 531 467 Furniture, fixtures and improvements 181 176 1,673 1,416 Accumulated depreciation (915 ) (440 ) Property and equipment, net $ 758 $ 976 Depreciation expense was $475 and $297 for the years ended December 31, 2022 and 2021, respectively. As part of product line exit costs unamortized production tooling costs of $106 were written off in the second quarter of 2021. |
Note 7 - Intangible Assets, Net
Note 7 - Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | 7. INTANGIBLE ASSETS, NET Intangible assets consisted of the following: December 31, 2022 2021 Amortizable intangible assets: Patents $ 575 $ 416 Trademarks 150 134 Purchased software 1,962 1,212 Other - 50 2,687 1,812 Accumulated amortization (462 ) (174 ) Total amortizable 2,225 1,638 Indefinite life assets (non-amortizable) 344 344 Total intangible assets, net $ 2,569 $ 1,982 Amortization expense was $287 and $182 for the years ended December 31, 2022 and 2021, respectively. An additional impairment charge of $170 for purchased software was recorded in the second quarter of 2021. At December 31, 2022, annual amortization of intangible assets, based upon the Company’s existing intangible assets and current useful lives, is estimated to be the following: 2023 $ 498 2024 518 2025 513 2026 212 2027 42 Thereafter 442 Total estimated amortization expense $ 2,225 |
Note 8 - Accounts Payable and A
Note 8 - Accounts Payable and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 8. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable includes $127 and $228 due to related party Syzygy Licensing, LLC (“ Syzygy Accrued liabilities consist of the following: December 31, 2022 2021 Patent and legal costs $ 135 $ 28 Accrued compensation 1,100 628 Warranty costs 125 96 Taxes and other 103 72 $ 1,463 $ 824 Accrued compensation includes $1,022 and $305 in employee bonuses and commissions payable at December 31, 2022 and 2021, respectively. Changes in our estimated product warranty costs were as follows: Year Ended December 31, 2022 2021 Balance, beginning of period $ 96 $ 48 Warranty settlements (181 ) (62 ) Warranty provision 210 110 Balance, end of period $ 125 $ 96 |
Note 9 - Lease
Note 9 - Lease | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | 9. LEASES The Company determines if an arrangement is a lease at inception. The guidance in FASB ASC Topic 842, Leases ( ROU For leases beginning on or after January 1, 2019 , Amortization of ROU operating lease assets was $101 and $88 for the years ended December 31, 2022 and 2021, respectively. Operating lease expense for capitalized operating leases included in operating activities was $118 and $95 for the years ended December 31, 2022 and 2021, respectively. Operating lease obligations recorded on the balance sheet at December 31, 2022 are: Operating lease liability- short term $ 108 Operating lease liability - long term 193 Total Operating Lease Liability $ 301 Future lease payments included in the measurement of lease liabilities on the balance sheet at December 31, 2022 for future periods are as follows: 2023 $ 121 2024 126 2025 75 Total future minimum lease payments 322 Less imputed interest (21 ) Total $ 301 The weighted average remaining lease term is 2.58 years, and the weighted average discount rate is 5.0%. Certain leases contain provisions for payment of real estate taxes, insurance and maintenance costs by the Company. These expenses are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. The Company had $39 and $29 variable lease expenses during year ended December 31, 2022 or 2021. The Company had $11 and $0 short-term lease expense during year ended December 31, 2022, or 2021. The Company does not have any finance leases. |
Note 10 - Debt
Note 10 - Debt | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 10. DEBT The Company’s debt at December 31, 2022 and 2021 included operating lease liabilities (see Note 9). The Company’s debt at December 31, 2021 also included business acquisition liabilities. |
Note 11 - Stockholders' Equity
Note 11 - Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 11. STOCKHOLDERS EQUITY The Company’s authorized capital consists of 150,000,000 shares of Common Stock, par value $0.0001 per share, and 5,000,000 shares of preferred stock, par value $0.0001 per share (“ Preferred Stock During the year ended December 31, 2021, the Company received proceeds of $12,047 from the exercise of 1,815,012 warrants. At December 31, 2021 the Company had outstanding Common Stock purchase warrants exercisable for 1,391,667 shares that expired on June 1, 2022, and had no purchase warrants outstanding at December 31, 2022. |
Note 12 - Share-based Compensat
Note 12 - Share-based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | 12. SHARE-BASED COMPENSATION On March 31, 2017, the Company adopted, and the stockholders approved, the 2017 Stock Incentive Plan (the “ Plan The Company generally recognizes share-based compensation expense on the grant date and over the period of vesting or period that services will be provided. In January 2022 the Company recognized severance acceleration of $242 of share-based compensation expense resulting from the resignation of the Company’s Chief Executive Officer as part of a management transition plan. The following table summarizes stock option activity for the year ended December 31, 2022: Weighted Average Options on Remaining Aggregate Common Exercise Contractual Intrinsic Shares Price Term Value Outstanding January 1, 2022 3,935,883 $ 5.24 4.79 Granted 4,153,885 $ 3.64 Exercised (55,500 ) $ 1.50 Forfeited, cancelled, expired (2,542,869 ) $ 5.79 Outstanding December 31, 2022 5,491,399 $ 3.72 5.96 $ 92 Exercisable December 31, 2022 2,465,110 $ 4.55 2.13 $ 92 At December 31, 2022, there were 3,877,169 service-based stock options outstanding, and 1,614,230 performance-based stock options outstanding, which performance-based stock options were granted in April 2022 to the Company’s Chief Executive Officer and President, subject to future market capitalization targets. 1,049,145 of the 4,153,885 stock options granted included in the table above were granted in April 2022 outside the Plan as an employment inducement grant but are subject to the terms and conditions of the Plan. The Company uses the Black-Scholes option pricing model to determine the fair value of service-based options granted. The following table summarizes the assumptions used to compute the fair value of options granted to employees and non-employees: For the Year Ended December 31, 2022 2021 Expected stock price volatility 49 % 50 % Risk-free interest rate 2.47 % 0.90 % Forfeiture rate 0 % 0 % Expected dividend yield 0 % 0 % Expected life of options - years 5.96 5.74 Weighted-average fair value of options granted $ 0.88 $ 2.57 Estimated volatility is a measure of the amount by which the Company’s stock price is expected to fluctuate each year during the expected life of awards. The Company’s estimated volatility was based on an average of the historical volatility of peer entities whose stock prices were publicly available. The Company’s calculation of estimated volatility is based on historical stock prices of these peer entities over a period equal to the expected life of the awards. The Company uses the historical volatility of peer entities due to the lack of sufficient historical data of its stock price. The Company records forfeitures as they are incurred. The risk-free interest rate assumption is based upon observed interest rates on zero coupon US Treasury bonds whose maturity period is appropriate for the term of the options. The dividend yield of zero The Company used the Monte Carlo Simulation Model to value at the grant date the aggregate of 1,614,230 market condition performance options granted in April 2022 to the Company’s newly appointed Chief Executive Officer and a newly appointed President. The assumptions used in the Monte Carlo Simulation were stock price on date of grant of $2.89, contract term of 10 years, expected volatility of 49% and risk-free interest rate of 2.9%. Vesting is based on sustained market capitalization of $250 million, $500 million and $1 billion and resulted in implied service periods ranging from approximately 4 to 7 years. Stock option expense was $1,770 and $2,608 for the years ended December 31, 2022 and 2021, respectively. The following table summarizes information about stock options outstanding at December 31, 2022: Weighted Average Weighted Weighted Remaining Average Average Range of Number Contractual Exercise Number Exercise Exercise Prices Outstanding Life (Years) Price Exercisable Price $ 1.50 –2.27 820,750 0.39 $ 1.62 481,750 $ 1.50 $ 2.55 –3.83 876,409 0.87 $ 2.92 35,000 $ 3.61 $ 3.85 –5.78 2,050,010 2.19 $ 5.24 1,869,613 $ 5.28 $ 5.88 –8.82 130,000 6.25 $ 6.42 78,747 $ 6.36 Restricted Stock Units The Plan provides for the grant of restricted stock units (“ RSUs Weighted Average Weighted Average Service-Based Grant Date Vesting RSU's Fair Value Period (Years) Unvested at January 1, 2021 428,006 $ 6.13 2.3 Granted - service based 398,662 $ 5.59 Vested (524,491 ) $ 5.55 Forfeited and cancelled (32,874 ) $ 6.10 Unvested at December 31, 2021 269,303 $ 6.47 2.0 Granted - service based 988,850 $ 2.49 Vested (268,548 ) $ 4.13 Forfeited and cancelled (67,273 ) $ 6.45 Unvested at December 31, 2022 922,057 $ 2.88 2.11 A total of 175,173 RSUs included in the table above were granted in April 2022 outside the Plan as an employment inducement grant but are subject to the terms and conditions of the Plan. RSU expense was $1,455 and $2,748 for the years ended December 31, 2022 and 2021, respectively. Share-Based Compensation Expense The Company recorded share-based compensation in its statements of operations for the relevant periods for options and RSUs as follows: For the Year Ended December 31, 2022 2021 Selling, general and administrative $ 2,684 $ 4,558 Research and development 541 798 Total share-based expense $ 3,225 $ 5,356 As of December 31, 2022, total estimated compensation cost of stock options granted and outstanding but not yet vested was $3,327 which is expected to be recognized over the weighted average period of 3.38 years. As of December 31, 2022, total estimated compensation cost of RSUs granted and outstanding but not yet vested was $1,900 which is expected to be recognized over the weighted average period of 2.11 years. |
Note 13 - Defined Contribution
Note 13 - Defined Contribution Plan | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Defined Contribution Plan [Text Block] | 13. DEFINED CONTRIBUTION PLAN The Company has a defined contribution savings plan for all eligible U.S. employees established under the provisions of Section 401(k) of the Internal Revenue Code. This plan was formed on January 1, 2022. Eligible employees may contribute a percentage of their salary subject to certain limitations. The Company’s contributions for the year ended December 31, 2022 was $0 respectively. |
Note 14 - Commitments and Conti
Note 14 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 14. COMMITMENTS AND CONTINGENCIES Facility Lease See Note 9. Related Party Technology License Agreement The Company is obligated to pay royalties and development and patent costs pursuant to an exclusive Amended and Restated Intellectual Property License Agreement dated as of September 30, 2016, with Syzygy, a company owned and controlled by stockholder/consultant Mr. Elwood Norris and stockholder/consultant Mr. James Barnes. The agreement provides for royalty payments of 4% of revenue from products employing the licensed ensnarement device technology up to an aggregate of $1,000 in royalties or until September 30, 2026 , Service Provider Agreement Pursuant to the Professional Services and Technology Acquisition Agreement (the “ Agreement Service Provider Technology, Services, and License Purchase Commitments At December 31, 2022 the Company was committed for approximately $3,626 for future component deliveries that are generally subject to modification or rescheduling in the normal course of business. Indemnifications and Guarantees Our officers and directors are indemnified as to personal liability as provided by the Delaware law and the Company’s articles and bylaws. The Company may also undertake indemnification obligations in the ordinary course of business related to its operations. The Company is unable to estimate with any reasonable accuracy the liability that may be incurred pursuant to any such indemnification obligations now or in the future. Because of the uncertainty surrounding these circumstances, the Company’s current or future indemnification obligations could range from immaterial to having a material adverse impact on its financial position and its ability to continue in the ordinary course of business. The Company has no liabilities recorded for such indemnities. Regulatory Agencies The Company is subject to oversight from regulatory agencies regarding firearms that arises in the ordinary course of its business. Litigation Securities Litigation On November 15, 2021, the Hon. Dolly M. Gee of the US District Court for the Central District of California (the “ Court Norris Barnes Smith Rothans Thomas In re Wrap Technologies, Inc. Securities Exchange Act Litigation Securities Action Shareholder Derivative Litigation On November 13, 2020, Naresh Rammohan filed a shareholder derivative action in the US District Court for the Central District of California against current and former Company officers as well as current and former Company directors alleging unjust enrichment, breach of fiduciary duty, waste of corporate assets, and contribution claims under the Securities Exchange Act of 1934, docketed as Case No. 2:20-cv-10444-DMG-PVCx. The derivative action was dismissed with prejudice by stipulation of the parties on May 3, 2022. |
Note 15 - Related Party Transac
Note 15 - Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 15. RELATED PARTY TRANSACTIONS Commencing in October 2017 the Company began reimbursing Mr. Elwood Norris, a former officer and current stockholder and consultant of the Company, $1.5 per month on a month-to-month basis for laboratory facility expense, for an aggregate of $18 during the years months ended December 31, 2022, and 2021, respectively. Mr. Norris retired as the Company’s Chief Technology Officer effective June 30, 2021 and commencing July 1 was engaged as a month-to-month consultant. A greater than 10% stockholder, Mr. Norris was paid a monthly fee of $7.5 per month for aggregate consulting payments of $90 for the period ended December 31, 2022, and $45 for the six-month period ended December 31, 2021. See Notes 8 and 14 for additional information on related party transactions and obligations. |
Note 16 - Income Taxes
Note 16 - Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 16. INCOME TAXES Until its reverse recapitalization on March 31, 2017, the Company was treated as a partnership for federal and state income tax purposes and did not incur income taxes. The Company accounts for income taxes under ASC 740. Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Accounting standards require the consideration of a valuation allowance for deferred tax assets if it is "more likely than not" that some component or all of the benefits of deferred tax assets will not be realized. The Company did not provide any current or deferred US federal income tax provision or benefit for the periods presented because of operating losses since inception. As of December 31, 2022, the Company has federal net operating loss carryforwards of approximately $51,774 to reduce future taxable income. Approximately $703 will expire in 2037 with the balance having an indefinite carryforward period. Certain changes in stock ownership can result in a limitation on the amount of net operating loss and tax credit carryovers that can be utilized each year. As of December 31, 2022, management has not determined the extent of any such limitations, if any. The Company is subject to taxation in the US and various state jurisdictions. All the Company’s historical tax years are subject to examination by the Internal Revenue Service and various state jurisdictions due to the generation of net operating losses and credit carryforwards. The Company provided a full valuation allowance on the net deferred tax asset, consisting primarily of net operating loss carry forwards, because management has determined that it is more likely than not that the Company will not earn income sufficient to realize the deferred tax assets during the carry forward period. As a result of the change in future Federal statutory tax rates due to the passing of the Tax Cuts and Jobs Act of 2017, management determined that the deferred tax assets and liabilities should be valued at a federal statutory rate of 21%. The Company has not taken a tax position that, if challenged, would have a material effect on the financial statements for the periods ended December 31, 2022, and 2021 applicable under FASB ASC 740. The Company did not recognize any adjustment to the liability for uncertain tax position and therefore did not record any adjustment to the beginning balance of accumulated deficit on the balance sheet. The provision for (benefit from) income taxes consist of the following: Year Ended December 31, 2022 2021 Current tax benefit $ - $ - Deferred tax benefit 3,756 6,409 Change in valuation allowance (3,756 ) (6,409 ) Income tax benefit (provision) $ - $ - A reconciliation of the provision for income taxes at the federal statutory rate of 21% to the Company’s provision for income tax is as follows: Year Ended December 31, 2022 2021 Income taxes benefit computed at federal statutory rate $ 3,700 $ 5,139 State income taxes, net of federal effect 345 480 Permanent differences and other (289 ) 790 Change in valuation allowance (3,756 ) (6,409 ) Income tax benefit (provision) $ - $ - Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following table presents the significant components of the Company’s deferred tax assets and liabilities for the periods presented: December 31, 2022 2021 Deferred tax assets: Net operating losses $ 14,898 $ 11,773 Research tax credits 65 60 Stock compensation 1,216 847 Accruals and other 324 211 16,503 12,891 Deferred tax liabilities: Depreciation and other 534 678 534 678 Net deferred tax assets 15,969 12,213 Less valuation allowance (15,969 ) (12,213 ) Net deferred taxes after valuation allowance $ - $ - In accordance with ASU 2016-09, Compensation-Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting |
Note 17 - Major Customers and R
Note 17 - Major Customers and Related Information | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | 17. MAJOR CUSTOMERS AND RELATED INFORMATION Major Customers For the year ended December 31, 2022, revenues from two one For the year ended December 31, 2021, revenues from three The following table summarizes revenues by geographic region. Revenues are attributed to countries based on customer’s delivery location. For the Year Ended December 31, 2022 2021 Americas $ 5,315 $ 3,357 Europe, Middle East and Africa 2,487 2,385 Asia Pacific 247 1,987 Total revenues $ 8,049 $ 7,729 See Note 1 – Concentrations of Risks |
Note 18 - Subsequent Events
Note 18 - Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 18. SUBSEQUENT EVENTS The Company has evaluated other events subsequent to December 31, 2022 through the date the accompanying financial statements were filed with the Securities and Exchange Commission and noted that there have been no other events or transactions which would affect the Company’s financial statements for the year ended December 31, 2022. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Organization and Business Description [Policy Text Block] | Organization and Business Description Company we us our Common Stock Nasdaq |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation one VR |
Use of Estimates, Policy [Policy Text Block] | Basis of Presentation and Use of Estimates US GAAP |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of Risk Credit Risk Concentrations of Accounts Receivable and Revenue Concentration of Suppliers Impact of COVID-19 ( COVID-19 |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents US |
Investment, Policy [Policy Text Block] | Short-Term Investments |
Share-Based Payment Arrangement [Policy Text Block] | Share-Based Compensation ASC 718 ASU |
Earnings Per Share, Policy [Policy Text Block] | Loss per Share |
Accounts Receivable [Policy Text Block] | Accounts Receivable and Allowance for Credit Losses Financial Instruments - Credit Losses (Topic 326) F-8 Table of Contents |
Inventory, Policy [Policy Text Block] | Inventories . |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Equipment and Depreciation |
Business Combinations Policy [Policy Text Block] | Business Combinations |
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | Intangible Assets |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets |
Classification and Valuation of Warrants [Policy Text Block] | Classification and Valuation of Warrants |
Advertising Cost [Policy Text Block] | Advertising and Promotion Costs |
Demonstration and Training Costs [Policy Text Block] | Demonstration and Training Costs |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Costs |
Contract Manufacturers Policy [Policy Text Block] | Contract Manufacturers |
Lessee, Leases [Policy Text Block] | Leases Topic 842 |
Revenue from Contract with Customer [Policy Text Block] | Revenue Recognition SSP SSPs |
Shipping and Handling Costs [Policy Text Block] | Shipping and Handling Costs |
Exit Activity Expenses [Policy Text Block] | Exit Activity Expense |
Standard Product Warranty, Policy [Policy Text Block] | Warranty Reserves |
Segment Reporting, Policy [Policy Text Block] | Segment Information |
Income Tax, Policy [Policy Text Block] | Income Taxes |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Guidance , FASB ASU Accounting for Contract Assets and Contract Liabilities from Contracts with Customers ASU 2021-08 ASC , Revenue from Contracts with Customers Topic 606 , |
Note 2 - Revenue and Product _2
Note 2 - Revenue and Product Costs (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | Customer Deferred Deposits Revenue Balance at January 1, 2022 $ 43 $ 265 Additions, net - 301 Transfer to revenue (43 ) (233 ) Balance at December 31, 2022 $ - $ 333 Current portion $ - $ 166 Long-term portion $ - $ 167 |
Note 4 - Financial Instruments
Note 4 - Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | As of December 31, 2022 Adjusted Unrealized Unrealized Market Cost Gains Losses Value Level 1: Money Market Funds $ 3,004 $ - $ - $ 3,004 US Treasury securities in short-term investments 9,849 100 - 9,949 Certificate of Deposits 4,000 - - 4,000 Total Financial Assets $ 16,853 $ 100 $ - $ 16,953 As of December 31, 2021 Adjusted Unrealized Unrealized Market Cost Gains Losses Value Level 1: Money Market Funds $ 1,670 $ - $ - $ 1,670 US Treasury securities in short-term investments 29,989 - (6 ) 29,983 Total Financial Assets $ 31,659 $ - $ (6 ) $ 31,653 |
Note 5 - Inventories, Net (Tabl
Note 5 - Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | December 31, 2022 2021 Finished goods $ 2,293 $ 1,027 Work in process - 2 Raw materials 1,682 537 Inventories - net $ 3,975 $ 1,566 |
Note 6 - Property and Equipme_2
Note 6 - Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | December 31, 2022 2021 Production and lab equipment $ 513 $ 500 Tooling 448 273 Computer equipment 531 467 Furniture, fixtures and improvements 181 176 1,673 1,416 Accumulated depreciation (915 ) (440 ) Property and equipment, net $ 758 $ 976 |
Note 7 - Intangible Assets, N_2
Note 7 - Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | December 31, 2022 2021 Amortizable intangible assets: Patents $ 575 $ 416 Trademarks 150 134 Purchased software 1,962 1,212 Other - 50 2,687 1,812 Accumulated amortization (462 ) (174 ) Total amortizable 2,225 1,638 Indefinite life assets (non-amortizable) 344 344 Total intangible assets, net $ 2,569 $ 1,982 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | 2023 $ 498 2024 518 2025 513 2026 212 2027 42 Thereafter 442 Total estimated amortization expense $ 2,225 |
Note 8 - Accounts Payable and_2
Note 8 - Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | December 31, 2022 2021 Patent and legal costs $ 135 $ 28 Accrued compensation 1,100 628 Warranty costs 125 96 Taxes and other 103 72 $ 1,463 $ 824 |
Schedule of Product Warranty Liability [Table Text Block] | Year Ended December 31, 2022 2021 Balance, beginning of period $ 96 $ 48 Warranty settlements (181 ) (62 ) Warranty provision 210 110 Balance, end of period $ 125 $ 96 |
Note 9 - Lease (Tables)
Note 9 - Lease (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Lessee, Operating Lease, Disclosure [Table Text Block] | Operating lease liability- short term $ 108 Operating lease liability - long term 193 Total Operating Lease Liability $ 301 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | 2023 $ 121 2024 126 2025 75 Total future minimum lease payments 322 Less imputed interest (21 ) Total $ 301 |
Note 12 - Share-based Compens_2
Note 12 - Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Share-Based Payment Arrangement, Option, Activity [Table Text Block] | Weighted Average Options on Remaining Aggregate Common Exercise Contractual Intrinsic Shares Price Term Value Outstanding January 1, 2022 3,935,883 $ 5.24 4.79 Granted 4,153,885 $ 3.64 Exercised (55,500 ) $ 1.50 Forfeited, cancelled, expired (2,542,869 ) $ 5.79 Outstanding December 31, 2022 5,491,399 $ 3.72 5.96 $ 92 Exercisable December 31, 2022 2,465,110 $ 4.55 2.13 $ 92 |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | For the Year Ended December 31, 2022 2021 Expected stock price volatility 49 % 50 % Risk-free interest rate 2.47 % 0.90 % Forfeiture rate 0 % 0 % Expected dividend yield 0 % 0 % Expected life of options - years 5.96 5.74 Weighted-average fair value of options granted $ 0.88 $ 2.57 |
Share-Based Payment Arrangement, Option, Exercise Price Range [Table Text Block] | Weighted Average Weighted Weighted Remaining Average Average Range of Number Contractual Exercise Number Exercise Exercise Prices Outstanding Life (Years) Price Exercisable Price $ 1.50 –2.27 820,750 0.39 $ 1.62 481,750 $ 1.50 $ 2.55 –3.83 876,409 0.87 $ 2.92 35,000 $ 3.61 $ 3.85 –5.78 2,050,010 2.19 $ 5.24 1,869,613 $ 5.28 $ 5.88 –8.82 130,000 6.25 $ 6.42 78,747 $ 6.36 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | Weighted Average Weighted Average Service-Based Grant Date Vesting RSU's Fair Value Period (Years) Unvested at January 1, 2021 428,006 $ 6.13 2.3 Granted - service based 398,662 $ 5.59 Vested (524,491 ) $ 5.55 Forfeited and cancelled (32,874 ) $ 6.10 Unvested at December 31, 2021 269,303 $ 6.47 2.0 Granted - service based 988,850 $ 2.49 Vested (268,548 ) $ 4.13 Forfeited and cancelled (67,273 ) $ 6.45 Unvested at December 31, 2022 922,057 $ 2.88 2.11 |
Disclosure of Share-Based Compensation Arrangements by Share-Based Payment Award [Table Text Block] | For the Year Ended December 31, 2022 2021 Selling, general and administrative $ 2,684 $ 4,558 Research and development 541 798 Total share-based expense $ 3,225 $ 5,356 |
Note 16 - Income Taxes (Tables)
Note 16 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year Ended December 31, 2022 2021 Current tax benefit $ - $ - Deferred tax benefit 3,756 6,409 Change in valuation allowance (3,756 ) (6,409 ) Income tax benefit (provision) $ - $ - |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year Ended December 31, 2022 2021 Income taxes benefit computed at federal statutory rate $ 3,700 $ 5,139 State income taxes, net of federal effect 345 480 Permanent differences and other (289 ) 790 Change in valuation allowance (3,756 ) (6,409 ) Income tax benefit (provision) $ - $ - |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31, 2022 2021 Deferred tax assets: Net operating losses $ 14,898 $ 11,773 Research tax credits 65 60 Stock compensation 1,216 847 Accruals and other 324 211 16,503 12,891 Deferred tax liabilities: Depreciation and other 534 678 534 678 Net deferred tax assets 15,969 12,213 Less valuation allowance (15,969 ) (12,213 ) Net deferred taxes after valuation allowance $ - $ - |
Note 17 - Major Customers and_2
Note 17 - Major Customers and Related Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | For the Year Ended December 31, 2022 2021 Americas $ 5,315 $ 3,357 Europe, Middle East and Africa 2,487 2,385 Asia Pacific 247 1,987 Total revenues $ 8,049 $ 7,729 |
Note 1 - Organization and Sum_2
Note 1 - Organization and Summary of Significant Accounting Policies (Details Textual) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | |
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.0001 | $ 0.0001 |
Number of Wholly-owned Subsidiaries | 1 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares | 6,413,546 | 5,596,853 |
Accounts Receivable, Allowance for Credit Loss, Ending Balance | $ 205 | $ 134 |
Inventory Valuation Reserves | 0 | 0 |
Advertising Expense | 426 | 145 |
Marketing Expense | 688 | 924 |
Cost of Revenue, Total | 4,315 | 5,734 |
Revenue from Contract with Customer, Including Assessed Tax | 7,481 | 7,381 |
Product Line Exit Expense | 0 | 747 |
Write-off, Inventory Cost | 641 | |
Retiring Cost | 106 | |
Standard Product Warranty Accrual, Ending Balance | 125 | 96 |
Shipping and Handling [Member] | ||
Cost of Revenue, Total | 296 | 167 |
Revenue from Contract with Customer, Including Assessed Tax | $ 109 | $ 88 |
Note 2 - Revenue and Product _3
Note 2 - Revenue and Product Costs (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Contract with Customer, Liability, Total | $ 333 | $ 265 |
Contract with Customer, Asset, after Allowance for Credit Loss, Total | 0 | 0 |
Virtual Reality Training [Member] | ||
Contract with Customer, Liability, Total | 198 | 172 |
Training [Member] | ||
Contract with Customer, Liability, Total | 11 | |
Extended Product Warranties [Member] | ||
Contract with Customer, Liability, Total | $ 124 | $ 67 |
Note 2 - Revenue and Product _4
Note 2 - Revenue and Product Costs - Contract Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Balance | $ 265 | |
Balance | 333 | |
Current portion | 166 | $ 155 |
Long-term portion | 167 | $ 110 |
Customer Deposits [Member] | ||
Balance | 43 | |
Additions, net | 0 | |
Transfer to revenue | (43) | |
Balance | 0 | |
Current portion | 0 | |
Long-term portion | 0 | |
Deferred Revenue [Member] | ||
Balance | 265 | |
Additions, net | 301 | |
Transfer to revenue | (233) | |
Balance | 333 | |
Current portion | 166 | |
Long-term portion | $ 167 |
Note 3 - Asset Acquisition (Det
Note 3 - Asset Acquisition (Details Textual) - Professional Services and Technology Acquisition Agreement [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 22, 2022 | Dec. 31, 2022 | |
Payments to Acquire Businesses, Gross | $ 700 | $ 700 |
Finite-Lived Intangible Assets Acquired | $ 700 | |
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life | 3 years | |
February 13 Delviery [Member] | ||
Business Combination, Contingent Consideration, Liability, Total | $ 125 | 125 |
Final Delivery of Technology, Services, and License [Member] | ||
Business Combination, Contingent Consideration, Liability, Total | $ 125 | $ 125 |
Note 4 - Financial Instrument_2
Note 4 - Financial Instruments (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
OCI, Debt Securities, Available-for-Sale, Unrealized Holding Gain (Loss), before Adjustment, after Tax | $ 100 | $ (21) |
Note 4 - Financial Instrument_3
Note 4 - Financial Instruments - Instruments by Significant Investment Category (Details) - Fair Value, Inputs, Level 1 [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Adjusted cost | $ 16,853 | $ 31,659 |
Unrealized gains | 100 | 0 |
Unrealized losses | 0 | (6) |
Market value | 16,953 | 31,653 |
Money Market Funds [Member] | ||
Adjusted cost | 3,004 | 1,670 |
Unrealized gains | 0 | 0 |
Unrealized losses | 0 | 0 |
Market value | 3,004 | 1,670 |
US Treasury Securities Considered Cash Equivalents [Member] | ||
Adjusted cost | 9,849 | 29,989 |
Unrealized gains | 100 | 0 |
Unrealized losses | 0 | (6) |
Market value | 9,949 | $ 29,983 |
Certificates of Deposit [Member] | ||
Adjusted cost | 4,000 | |
Unrealized gains | 0 | |
Unrealized losses | 0 | |
Market value | $ 4,000 |
Note 5 - Inventories, Net (Deta
Note 5 - Inventories, Net (Details Textual) $ in Thousands | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Product Line Exit Costs [Member] | |
Inventory Write-down | $ 621 |
Note 5 - Inventories, Net - Sum
Note 5 - Inventories, Net - Summary of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Finished goods | $ 2,293 | $ 1,027 | |
Work in process | 0 | 2 | |
Raw materials | 1,682 | 537 | |
Inventories - net | $ 3,975 | $ 3,975 | $ 1,566 |
Note 6 - Property and Equipme_3
Note 6 - Property and Equipment, Net (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Depreciation, Total | $ 475 | $ 297 | |
Production Costs, Period Cost | $ 106 |
Note 6 - Property and Equipme_4
Note 6 - Property and Equipment, Net - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property and equipment, gross | $ 1,673 | $ 1,416 |
Accumulated depreciation | (915) | (440) |
Property and equipment, net | 758 | 976 |
Production and Lab Equipment [Member] | ||
Property and equipment, gross | 513 | 500 |
Tooling [Member] | ||
Property and equipment, gross | 448 | 273 |
Computer Equipment [Member] | ||
Property and equipment, gross | 531 | 467 |
Furniture and Fixtures [Member] | ||
Property and equipment, gross | $ 181 | $ 176 |
Note 7 - Intangible Assets, N_3
Note 7 - Intangible Assets, Net (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Amortization of Intangible Assets | $ 287 | $ 182 | |
Impairment, Long-Lived Asset, Held-for-Use, Total | $ 170 |
Note 7 - Intangible Assets, N_4
Note 7 - Intangible Assets, Net - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Amortizable intangible assets, gross | $ 2,687 | $ 1,812 |
Accumulated amortization | (462) | (174) |
Total amortizable | 2,225 | 1,638 |
Indefinite life assets (non-amortizable) | 344 | 344 |
Total intangible assets, net | 2,569 | 1,982 |
Patents [Member] | ||
Amortizable intangible assets, gross | 575 | 416 |
Trademarks [Member] | ||
Amortizable intangible assets, gross | 150 | 134 |
Computer Software, Intangible Asset [Member] | ||
Amortizable intangible assets, gross | 1,962 | 1,212 |
Other Intangible Assets [Member] | ||
Amortizable intangible assets, gross | $ 0 | $ 50 |
Note 7 - Intangible Assets, N_5
Note 7 - Intangible Assets, Net - Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
2023 | $ 498 | |
2024 | 518 | |
2025 | 513 | |
2026 | 212 | |
2027 | 42 | |
Thereafter | 442 | |
Total amortizable | $ 2,225 | $ 1,638 |
Note 8 - Accounts Payable and_3
Note 8 - Accounts Payable and Accrued Liabilities (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Commissions Payable [Member] | ||
Employee-related Liabilities, Total | $ 1,022 | $ 305 |
Syzygy Licensing LLC [Member] | ||
Accounts Payable, Total | $ 127 | $ 228 |
Note 8 - Accounts Payable and_4
Note 8 - Accounts Payable and Accrued Liabilities - Summary of Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Patent and legal costs | $ 135 | $ 28 |
Accrued compensation | 1,100 | 628 |
Warranty costs | 125 | 96 |
Taxes and other | 103 | 72 |
Accrued Liabilities, Current, Total | $ 1,463 | $ 824 |
Note 8 - Accounts Payable and_5
Note 8 - Accounts Payable and Accrued Liabilities - Changes in Product Warranty Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Balance | $ 96 | $ 48 |
Warranty settlements | (181) | (62) |
Warranty provision | 210 | 110 |
Balance | $ 125 | $ 96 |
Note 9 - Lease (Details Textual
Note 9 - Lease (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Lease, Right-of-Use Asset, Amortization Expense | $ 101,000 | $ 88,000 |
Operating Lease, Expense | $ 118,000 | 95,000 |
Operating Lease, Weighted Average Remaining Lease Term | 2 years 6 months 29 days | |
Operating Lease, Weighted Average Discount Rate, Percent | 5% | |
Variable Lease, Cost | $ 39,000 | 29,000 |
Short-Term Lease, Cost | $ 11 | $ 0 |
Note 9 - Lease - Summary of Ope
Note 9 - Lease - Summary of Operating Lease Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Operating lease liability - short term | $ 108 | $ 56 |
Operating lease liability - long term | 193 | $ 0 |
Total Operating Lease Liability | $ 301 |
Note 9 - Lease - Future Lease P
Note 9 - Lease - Future Lease Payments (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
2023 | $ 121 |
2024 | 126 |
2025 | 75 |
Total future minimum lease payments | 322 |
Less imputed interest | (21) |
Total | $ 301 |
Note 11 - Stockholders' Equity
Note 11 - Stockholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Common Stock, Shares Authorized | 150,000,000 | 150,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Proceeds from Warrant Exercises | $ 0 | $ 12,047 |
Class of Warrant or Right, Exercised During Period | 1,815,012 | |
Class of Warrant or Right, Outstanding | 0 | 1,391,667 |
Note 12 - Share-based Compens_3
Note 12 - Share-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2022 | Apr. 30, 2022 | Jan. 31, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | May 31, 2019 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2017 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number, Ending Balance | 5,491,399 | 3,935,883 | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 4,153,885 | ||||||||
Share-Based Payment Arrangement, Expense | $ 3,225 | $ 5,356 | |||||||
Employment Inducement Grant [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 1,049,145 | ||||||||
Share-Based Payment Arrangement, Option [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 4,153,885 | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0% | 0% | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Term | 5 years 11 months 15 days | 5 years 8 months 26 days | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 49% | 50% | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.47% | 0.90% | |||||||
Share-Based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | $ 3,327 | ||||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 3 years 4 months 17 days | ||||||||
Restricted Stock Units (RSUs) [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 175,173 | 988,850 | 398,662 | ||||||
Share-Based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | $ 1,900 | ||||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 1 month 9 days | ||||||||
The 2017 Stock Incentive Plan [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized | 9,000,000 | 2,000,000 | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Additional Shares Authorized | 1,500,000 | 1,500,000 | 1,900,000 | 2,100,000 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant | 1,556,291 | ||||||||
Share-Based Payment Arrangement, Accelerated Cost | $ 242 | ||||||||
The 2017 Stock Incentive Plan [Member] | Service-based Options [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number, Ending Balance | 3,877,169 | ||||||||
The 2017 Stock Incentive Plan [Member] | Performance-based Options [Member] | |||||||||
Share-Based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding, Ending Balance | 1,614,230 | ||||||||
The 2017 Stock Incentive Plan [Member] | Share-Based Payment Arrangement, Option [Member] | |||||||||
Share-Based Payment Arrangement, Expense | $ 1,770 | $ 2,608 | |||||||
The 2017 Stock Incentive Plan [Member] | Performance Shares [Member] | Chief Executive Officer and President [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 1,614,230 | ||||||||
Share Price | $ 2.89 | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Term | 10 years | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 49% | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.90% | ||||||||
The 2017 Stock Incentive Plan [Member] | Performance Shares [Member] | Chief Executive Officer and President [Member] | Minimum [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Requisite Service Period | 4 years | ||||||||
The 2017 Stock Incentive Plan [Member] | Performance Shares [Member] | Chief Executive Officer and President [Member] | Maximum [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Requisite Service Period | 7 years | ||||||||
The 2017 Stock Incentive Plan [Member] | Performance Shares [Member] | Chief Executive Officer and President [Member] | Share-Based Payment Arrangement, Tranche One [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vesting, Sustained Market Capitalization | $ 250,000 | ||||||||
The 2017 Stock Incentive Plan [Member] | Performance Shares [Member] | Chief Executive Officer and President [Member] | Share-Based Payment Arrangement, Tranche Two [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vesting, Sustained Market Capitalization | 500,000 | ||||||||
The 2017 Stock Incentive Plan [Member] | Performance Shares [Member] | Chief Executive Officer and President [Member] | Share-Based Payment Arrangement, Tranche Three [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vesting, Sustained Market Capitalization | $ 1,000,000 | ||||||||
The 2017 Stock Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | |||||||||
Share-Based Payment Arrangement, Expense | $ 1,455 | $ 2,748 |
Note 12 - Share-based Compens_4
Note 12 - Share-based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Options on Common Shares, Outstanding (in shares) | 3,935,883 | |
Outstanding, weighted average exercise price (in dollars per share) | $ 5.24 | |
Outstanding, remaining contractual term (Year) | 5 years 11 months 15 days | 4 years 9 months 14 days |
Options on Common Shares, Granted (in shares) | 4,153,885 | |
Granted, weighted average exercise price (in dollars per share) | $ 3.64 | |
Options on Common Shares, Exercised (in shares) | (55,500) | |
Exercised, weighted average exercise price (in dollars per share) | $ 1.50 | |
Options on Common Shares, Forfeited, cancelled, expired (in shares) | (2,542,869) | |
Forfeited, cancelled, expired, weighted average exercise price (in dollars per share) | $ 5.79 | |
Options on Common Shares, Outstanding (in shares) | 5,491,399 | 3,935,883 |
Outstanding, weighted average exercise price (in dollars per share) | $ 3.72 | $ 5.24 |
Outstanding, aggregate intrinsic value | $ 92 | |
Exercisable, shares (in shares) | 2,465,110 | |
Exercisable, weighted average exercise price (in dollars per share) | $ 4.55 | |
Exercisable, weighted average contractual term (Year) | 2 years 1 month 17 days | |
Exercisable, aggregate intrinsic value | $ 92 |
Note 12 - Share-based Compens_5
Note 12 - Share-based Compensation - Summary of Stock Option Valuation Assumptions (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Forfeiture rate | 0% | 0% |
Weighted-average fair value of options granted (in dollars per share) | $ 0.88 | $ 2.57 |
Share-Based Payment Arrangement, Option [Member] | ||
Expected stock price volatility | 49% | 50% |
Risk-free interest rate | 2.47% | 0.90% |
Expected dividend yield | 0% | 0% |
Expected life of options - years (Year) | 5 years 11 months 15 days | 5 years 8 months 26 days |
Note 12 - Share-based Compens_6
Note 12 - Share-based Compensation - Information Regarding Stock Options Outstanding (Details) | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Exercise Price Range One [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit (in dollars per share) | $ 1.50 |
Share-Based Payment Arrangement, Option, Exercise Price Range, Upper Range Limit (in dollars per share) | $ 2.27 |
Number outstanding (in shares) | shares | 820,750 |
Options outstanding, weighted average remaining contractual term (Year) | 4 months 20 days |
Options outstanding, weighted average exercise price (in dollars per share) | $ 1.62 |
Options exercisable, number of shares (in shares) | shares | 481,750 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 1.50 |
Exercise Price Range Two [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit (in dollars per share) | 2.55 |
Share-Based Payment Arrangement, Option, Exercise Price Range, Upper Range Limit (in dollars per share) | $ 3.83 |
Number outstanding (in shares) | shares | 876,409 |
Options outstanding, weighted average remaining contractual term (Year) | 10 months 13 days |
Options outstanding, weighted average exercise price (in dollars per share) | $ 2.92 |
Options exercisable, number of shares (in shares) | shares | 35,000 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 3.61 |
Exercise Price Range Three [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit (in dollars per share) | 3.85 |
Share-Based Payment Arrangement, Option, Exercise Price Range, Upper Range Limit (in dollars per share) | $ 5.78 |
Number outstanding (in shares) | shares | 2,050,010 |
Options outstanding, weighted average remaining contractual term (Year) | 2 years 2 months 8 days |
Options outstanding, weighted average exercise price (in dollars per share) | $ 5.24 |
Options exercisable, number of shares (in shares) | shares | 1,869,613 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 5.28 |
Exercise Price Range Four [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit (in dollars per share) | 5.88 |
Share-Based Payment Arrangement, Option, Exercise Price Range, Upper Range Limit (in dollars per share) | $ 8.82 |
Number outstanding (in shares) | shares | 130,000 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 6.42 |
Options exercisable, number of shares (in shares) | shares | 78,747 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 6.36 |
Note 12 - Share-based Compens_7
Note 12 - Share-based Compensation - Summary of RSU Activity (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Awards other than options, unvested (in shares) | 269,303 | 428,006 | ||
Awards other than options, unvested, weighted average grant date fair value (in dollars per share) | $ 6.47 | $ 6.13 | ||
Unvested, vesting period (Year) | 2 years 1 month 9 days | 2 years | 2 years 3 months 18 days | |
Awards other than options, Granted (in shares) | 175,173 | 988,850 | 398,662 | |
Awards other than options, granted, weighted average grant date fair value (in dollars per share) | $ 2.49 | $ 5.59 | ||
Awards other than options, Vested (in shares) | (524,491) | |||
Awards other than options, vested, weighted average grant date fair value (in dollars per share) | $ 4.13 | $ 5.55 | ||
Awards other than options, Forfeited and cancelled (in shares) | (67,273) | (32,874) | ||
Awards other than options, forfeited and cancelled, weighted average grant date fair value (in dollars per share) | $ 6.45 | $ 6.10 | ||
Awards other than options, unvested (in shares) | 922,057 | 269,303 | 428,006 | |
Awards other than options, unvested, weighted average grant date fair value (in dollars per share) | $ 2.88 | $ 6.47 | $ 6.13 |
Note 12 - Share-based Compens_8
Note 12 - Share-based Compensation - Allocation of Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based expense | $ 3,225 | $ 5,356 |
Selling, General and Administrative Expenses [Member] | ||
Share-based expense | 2,684 | 4,558 |
Research and Development Expense [Member] | ||
Share-based expense | $ 541 | $ 798 |
Note 13 - Defined Contributio_2
Note 13 - Defined Contribution Plan (Details Textual) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 0 |
Note 14 - Commitments and Con_2
Note 14 - Commitments and Contingencies (Details Textual) - USD ($) | 12 Months Ended | |||
Nov. 22, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2016 | |
Contractual Obligation, Total | $ 3,626,000 | |||
Professional Services and Technology Acquisition Agreement [Member] | ||||
Payments to Acquire Businesses, Gross | $ 700,000 | 700,000 | ||
Professional Services and Technology Acquisition Agreement [Member] | February 13 Delviery [Member] | ||||
Business Combination, Contingent Consideration, Liability, Total | 125,000 | 125,000 | ||
Professional Services and Technology Acquisition Agreement [Member] | Final Delivery of Technology, Services, and License [Member] | ||||
Business Combination, Contingent Consideration, Liability, Total | $ 125,000 | 125,000 | ||
Related Party Technology License Agreement [Member] | Syzygy Licensing LLC [Member] | ||||
Royalty Payments, Percentage of Product Revenue | 4% | |||
Maximum Royalties to Be Paid Under Agreement | $ 1,000 | |||
Royalty Expense | 274,000 | $ 278,000 | ||
Royalty Guarantees, Commitments, Amount | $ 280,000 |
Note 15 - Related Party Trans_2
Note 15 - Related Party Transactions (Details Textual) - USD ($) | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction, Amounts of Transaction | $ 18,000 | $ 18,000 | |
Mr. Elwood Norris [Member] | |||
Reimbursement of Expenses to Related Party, Monthly Amount | 1,500 | ||
Consulting Fees to Related Party, Monthly Amount | 7,500 | ||
Mr. Elwood Norris [Member] | Consultant [Member] | |||
Related Party Transaction, Amounts of Transaction | $ 45,000 | $ 90,000 |
Note 16 - Income Taxes (Details
Note 16 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Loss Carryforward Subject to Expiration | $ 703 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | |
Domestic Tax Authority [Member] | ||
Operating Loss Carryforwards | $ 51,774 | |
Operating Loss Carryforwards, Tax Deductions From Stock Options Exercises and RSU Vesting | 597 | $ 3,168 |
State and Local Jurisdiction [Member] | ||
Operating Loss Carryforwards, Tax Deductions From Stock Options Exercises and RSU Vesting | $ 597 | $ 3,168 |
Note 16 - Income Taxes - Income
Note 16 - Income Taxes - Income Tax Expense (Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Current tax benefit | $ 0 | $ 0 |
Deferred tax benefit | 3,756 | 6,409 |
Change in valuation allowance | (3,756) | (6,409) |
Income tax benefit (provision) | $ 0 | $ 0 |
Note 16 - Reconciliations of Fe
Note 16 - Reconciliations of Federal Statutory Rate to Effective Income Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income taxes benefit computed at federal statutory rate | $ 3,700 | $ 5,139 |
State income taxes, net of federal effect | 345 | 480 |
Permanent differences and other | (289) | 790 |
Change in valuation allowance | (3,756) | (6,409) |
Income tax benefit (provision) | $ 0 | $ 0 |
Note 16 - Income Taxes - Deferr
Note 16 - Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Net operating losses | $ 14,898 | $ 11,773 |
Research tax credits | 65 | 60 |
Stock compensation | 1,216 | 847 |
Accruals and other | 324 | 211 |
Deferred Tax Assets, Gross, Total | 16,503 | 12,891 |
Depreciation and other | 534 | 678 |
Deferred Tax Liabilities, Gross, Total | 534 | 678 |
Net deferred tax assets | 15,969 | 12,213 |
Less valuation allowance | (15,969) | (12,213) |
Net deferred taxes after valuation allowance | $ 0 | $ 0 |
Note 17 - Major Customers and_3
Note 17 - Major Customers and Related Information (Details Textual) - Customer Concentration Risk [Member] | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue Benchmark [Member] | Distributors [Member] | ||
Number of Major Customers | 2 | 3 |
Revenue Benchmark [Member] | Distributor One [Member] | ||
Concentration Risk, Percentage | 36% | 26% |
Revenue Benchmark [Member] | Distributor Two [Member] | ||
Concentration Risk, Percentage | 25% | 19% |
Revenue Benchmark [Member] | Distributor Three [Member] | ||
Concentration Risk, Percentage | 17% | |
Accounts Receivable [Member] | Distributors [Member] | ||
Number of Major Customers | 2 | |
Accounts Receivable [Member] | Distributor One [Member] | ||
Concentration Risk, Percentage | 70% | 48% |
Accounts Receivable [Member] | Distributor Two [Member] | ||
Concentration Risk, Percentage | 16% | |
Accounts Receivable [Member] | Distributor Three [Member] | ||
Concentration Risk, Percentage | 15% |
Note 17 - Major Customers and_4
Note 17 - Major Customers and Related Information - Disaggregation of Revenue by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Americas | $ 8,049 | $ 7,729 | $ 8,049 | $ 7,729 |
Americas [Member] | ||||
Americas | 5,315 | 3,357 | ||
Europe, Middle East and Africa [Member] | ||||
Americas | 2,487 | 2,385 | ||
Asia Pacific [Member] | ||||
Americas | $ 247 | $ 1,987 |