Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 27, 2021 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0001702924 | |
Entity Registrant Name | WRAP TECHNOLOGIES, INC. | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 000-55838 | |
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 $0.0001 per share | |
Trading Symbol | WRAP | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 40,771,708 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 9,858 | $ 16,647 |
Short-term investments | 30,004 | 24,994 |
Accounts receivable, net | 3,257 | 1,871 |
Inventories, net | 2,284 | 2,655 |
Prepaid expenses and other current assets | 529 | 760 |
Total current assets | 45,932 | 46,927 |
Property and equipment, net | 888 | 357 |
Operating lease right-of-use asset, net | 73 | 139 |
Intangible assets, net | 1,772 | 1,397 |
Other assets | 8 | 13 |
Total assets | 48,673 | 48,833 |
Current liabilities: | ||
Accounts payable | 1,503 | 1,232 |
Accrued liabilities | 1,366 | 721 |
Customer deposits | 21 | 2 |
Deferred revenue- short term | 94 | 16 |
Operating lease liability- short term | 79 | 94 |
Business acquisition liability - short term | 0 | 275 |
Total current liabilities | 3,063 | 2,340 |
Long-term liabilities: | ||
Deferred revenue- long term | 146 | 0 |
Operating lease liability - long term | 0 | 56 |
Business acquisition liability - long term | 0 | 23 |
Total long-term liabilities | 146 | 79 |
Total liabilities | 3,209 | 2,419 |
Commitments and contingencies (Note 12) | ||
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; 40,748,861 and 37,554,162 shares issued and outstanding each period, respectively | 4 | 4 |
Additional paid-in capital | 89,979 | 71,705 |
Accumulated deficit | (44,530) | (25,310) |
Accumulated other comprehensive income | 11 | 15 |
Total stockholders' equity | 45,464 | 46,414 |
Total liabilities and stockholders' equity | $ 48,673 | $ 48,833 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, par valule (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares issued (in shares) | 40,748,861 | 37,554,162 |
Common stock, shares outstanding (in shares) | 40,748,861 | 37,554,162 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues: | ||||
Product sales | $ 1,719 | $ 988 | $ 4,997 | $ 2,486 |
Other revenue | 86 | 19 | 283 | 43 |
Total revenues | 1,805 | 1,007 | 5,280 | 2,529 |
Cost of revenues: | ||||
Products and services | 1,094 | 688 | 3,276 | 1,659 |
Product line exit expense | 0 | 0 | 747 | 0 |
Total cost of revenues | 1,094 | 688 | 4,023 | 1,659 |
Gross profit | 711 | 319 | 1,257 | 870 |
Operating expenses: | ||||
Selling, general and administrative | 4,654 | 3,255 | 16,210 | 7,933 |
Research and development | 2,076 | 927 | 4,303 | 2,038 |
Total operating expenses | 6,730 | 4,182 | 20,513 | 9,971 |
Loss from operations | (6,019) | (3,863) | (19,256) | (9,101) |
Other income (expense): | ||||
Investment income | 13 | 5 | 22 | 81 |
Other | 15 | (4) | 14 | (4) |
Nonoperating Income (Expense), Total | 28 | 1 | 36 | 77 |
Net loss | $ (5,991) | $ (3,862) | $ (19,220) | $ (9,024) |
Net loss per basic and diluted common share (in dollars per share) | $ (0.15) | $ (0.11) | $ (0.50) | $ (0.28) |
Weighted average common shares used to compute net loss per basic and diluted common share (in shares) | 40,413,332 | 36,419,771 | 38,767,009 | 32,653,408 |
Comprehensive loss: | ||||
Net loss | $ (5,991) | $ (3,862) | $ (19,220) | $ (9,024) |
Net unrealized gain (loss) on short-term investments | (2) | 7 | (4) | 7 |
Comprehensive loss | $ (5,993) | $ (3,855) | $ (19,224) | $ (9,017) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance (in shares) at Dec. 31, 2019 | 29,829,916 | ||||
Balance at Dec. 31, 2019 | $ 3 | $ 31,923 | $ (12,730) | $ 0 | $ 19,196 |
Common shares issued upon exercise of stock options (in shares) | 327,500 | ||||
Common shares issued upon exercise of stock options | $ 0 | 566 | 0 | 0 | 566 |
Common shares issued upon vesting of restricted stock units (in shares) | 101,557 | ||||
Common shares issued upon vesting of restricted stock units | $ 0 | 0 | 0 | 0 | 0 |
Share-based compensation expense | 0 | 1,563 | 0 | 0 | 1,563 |
Net loss for the period | $ 0 | 0 | (9,024) | 0 | (9,024) |
Common shares issued upon exercise of warrants at $6.50 per share (in shares) | 261,679 | ||||
Common shares issued upon exercise of warrants at $6.50 per share | $ 0 | 1,646 | 0 | 0 | 1,646 |
Common shares issued upon exercise of warrants at $3.00 per share, net of issuance costs (in shares) | 253,125 | ||||
Common shares issued upon exercise of warrants at $3.00 per share, net of issuance costs | $ 0 | 735 | 0 | 0 | 735 |
Common shares issued upon exercise of warrants at $5.00 per share, net of issuance costs (in shares) | 3,593,873 | ||||
Common shares issued upon exercise of warrants at $5.00 per share, net of issuance costs | $ 1 | 17,234 | 0 | 0 | 17,234 |
Common shares issued upon exercise of warrants at $6.00 per share, net of issuance costs (in shares) | 675,000 | ||||
Common shares issued upon exercise of warrants at $6.00 per share, net of issuance costs | $ 0 | 3,847 | 0 | 0 | 3,847 |
Net unrealized gain on short-term investments | $ 0 | 0 | 0 | 7 | 7 |
Sale of common stock and warrants at $6.00 per share in public offering, net of issuance costs (in shares) | 2,066,667 | ||||
Sale of common stock and warrants at $6.00 per share in public offering, net of issuance costs | $ 0 | 11,667 | 0 | 0 | 11,667 |
Balance (in shares) at Sep. 30, 2020 | 37,109,317 | ||||
Balance at Sep. 30, 2020 | $ 4 | 69,181 | (21,754) | 7 | 47,437 |
Balance (in shares) at Jun. 30, 2020 | 34,361,591 | ||||
Balance at Jun. 30, 2020 | $ 3 | 54,973 | (17,892) | 0 | 37,084 |
Common shares issued upon exercise of stock options (in shares) | 34,250 | ||||
Common shares issued upon exercise of stock options | $ 0 | 52 | 0 | 0 | 52 |
Common shares issued upon vesting of restricted stock units (in shares) | 14,999 | ||||
Common shares issued upon vesting of restricted stock units | $ 0 | 0 | 0 | 0 | 0 |
Share-based compensation expense | 0 | 546 | 0 | 0 | 546 |
Net loss for the period | $ 0 | 0 | (3,862) | 0 | (3,862) |
Common shares issued upon exercise of warrants at $6.50 per share (in shares) | 177,986 | ||||
Common shares issued upon exercise of warrants at $6.50 per share | $ 0 | 1,102 | 0 | 0 | 1,102 |
Common shares issued upon exercise of warrants at $3.00 per share, net of issuance costs (in shares) | 102,621 | ||||
Common shares issued upon exercise of warrants at $3.00 per share, net of issuance costs | $ 0 | 295 | 0 | 0 | 295 |
Common shares issued upon exercise of warrants at $5.00 per share, net of issuance costs (in shares) | 1,742,870 | ||||
Common shares issued upon exercise of warrants at $5.00 per share, net of issuance costs | $ 1 | 8,366 | 0 | 0 | 8,366 |
Common shares issued upon exercise of warrants at $6.00 per share, net of issuance costs (in shares) | 675,000 | ||||
Common shares issued upon exercise of warrants at $6.00 per share, net of issuance costs | $ 0 | 3,847 | 0 | 0 | 3,847 |
Net unrealized gain on short-term investments | $ 0 | 0 | 0 | 7 | 7 |
Balance (in shares) at Sep. 30, 2020 | 37,109,317 | ||||
Balance at Sep. 30, 2020 | $ 4 | 69,181 | (21,754) | 7 | 47,437 |
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 stock options (in shares) | 915,404 | 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) | 421,407 | ||||
Common shares issued upon vesting of restricted stock units | $ 0 | 0 | 0 | 0 | 0 |
Share-based compensation expense | 0 | 4,310 | 0 | 0 | 4,310 |
Net unrealized loss on short-term investments | 0 | 0 | 0 | (4) | (4) |
Net loss for the period | $ 0 | 0 | (19,220) | 0 | (19,220) |
Common shares issued upon exercise of warrants at $6.50 per share (in shares) | 1,661,320 | ||||
Common shares issued upon exercise of warrants at $6.50 per share | $ 0 | 10,799 | 0 | 0 | 10,799 |
Common shares issued upon exercise of warrants at $8.125 per share (in shares) | 153,692 | ||||
Common shares issued upon exercise of warrants at $8.125 per share | $ 0 | 1,249 | 0 | 0 | 1,249 |
Common shares issued for services (in shares) | 42,876 | ||||
Common shares issued for services | $ 0 | 239 | 0 | 0 | 239 |
Balance (in shares) at Sep. 30, 2021 | 40,748,861 | ||||
Balance at Sep. 30, 2021 | $ 4 | 89,979 | (44,530) | 11 | 45,464 |
Balance (in shares) at Jun. 30, 2021 | 39,911,390 | ||||
Balance at Jun. 30, 2021 | $ 4 | 87,277 | (38,539) | 13 | 48,755 |
Common shares issued upon exercise of stock options (in shares) | 758,338 | ||||
Common shares issued upon exercise of stock options | $ 0 | 1,399 | 0 | 0 | 1,399 |
Common shares issued upon vesting of restricted stock units (in shares) | 79,133 | ||||
Common shares issued upon vesting of restricted stock units | $ 0 | 0 | 0 | 0 | 0 |
Share-based compensation expense | 0 | 1,303 | 0 | 0 | 1,303 |
Net unrealized loss on short-term investments | 0 | 0 | 0 | (2) | (2) |
Net loss for the period | $ 0 | 0 | (5,991) | 0 | (5,991) |
Balance (in shares) at Sep. 30, 2021 | 40,748,861 | ||||
Balance at Sep. 30, 2021 | $ 4 | $ 89,979 | $ (44,530) | $ 11 | $ 45,464 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parentheticals) - $ / shares | Sep. 30, 2021 | Sep. 30, 2020 |
Warrants at $6.50 Per Share [Member] | ||
Warrants, exercise price (in dollars per share) | $ 6.50 | $ 6.50 |
Warrants at $3.00 Per Share [Member] | ||
Warrants, exercise price (in dollars per share) | 3 | |
Warrants at $6.00 Per Share [Member] | ||
Warrants, exercise price (in dollars per share) | 6 | |
Warrants at $8.125 Per Share [Member] | ||
Warrants, exercise price (in dollars per share) | $ 8.125 | |
Warrants at $5.00 Per Share [Member] | ||
Warrants, exercise price (in dollars per share) | $ 5 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash Flows From Operating Activities: | ||
Net loss | $ (19,220) | $ (9,024) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 336 | 90 |
Product line exit expense | 747 | 0 |
Gain on sale of assets | (17) | 0 |
Warranty provision | 23 | 17 |
Software impairment charge | 170 | 0 |
Change in contingent liability | (23) | 0 |
Non-cash lease expense | 67 | 91 |
Share-based compensation | 4,310 | 1,563 |
Common shares issued for services | 239 | 0 |
Provision for doubtful accounts | 27 | 10 |
Changes in assets and liabilities: | ||
Accounts receivable | (1,414) | (985) |
Inventories | (160) | 294 |
Prepaid expenses and other current assets | 231 | (50) |
Accounts payable | 271 | 355 |
Operating lease liability | (71) | (95) |
Customer deposits | 19 | (216) |
Accrued liabilities and other | 502 | 255 |
Warranty settlement | 10 | 2 |
Deferred revenue | 224 | 0 |
Net cash used in operating activities | (13,729) | (7,693) |
Cash Flows From Investing Activities: | ||
Purchase of short-term investments | (30,014) | (24,980) |
Proceeds from maturities of short-term investments | 25,000 | 0 |
Capital expenditures for property and equipment | (811) | (202) |
Proceeds from long-term deposits | 4 | 0 |
Net cash used in investing activities | (6,511) | (25,283) |
Cash Flows From Financing Activities: | ||
Sale of common stock and warrants | 0 | 12,400 |
Offering costs paid on sale of common stock and warrants | 0 | (733) |
Proceeds from exercise of warrants | 12,048 | 24,480 |
Offering costs paid on exercise of warrants | 0 | (1,017) |
Proceeds from exercise of stock options | 1,678 | 566 |
Proceeds from bank note | 0 | 414 |
Repayment of debt | (275) | 0 |
Net cash provided by financing activities | 13,451 | 36,110 |
Net (decrease) increase in cash and cash equivalents | (6,789) | 3,134 |
Cash and cash equivalents, beginning of period | 16,647 | 16,984 |
Cash and cash equivalents, end of period | 9,858 | 20,118 |
Supplemental Disclosure of Non-Cash Investing and Financing Activities: | ||
Change in unrealized gain on short-term investments | (2) | 7 |
Patents and Trademarks [Member] | ||
Cash Flows From Investing Activities: | ||
Payments for intangible assets | (129) | (101) |
Intangibles Other than Patents and Trademarks [Member] | ||
Cash Flows From Investing Activities: | ||
Payments for intangible assets | $ (561) | $ 0 |
Note 1 - Organization and Summa
Note 1 - Organization and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | 1. Organization and Business Description Wrap Technologies, Inc., a Delaware corporation (the “ Company we us our Common Stock Nasdaq Basis of Presentation The Company’s unaudited interim condensed consolidated financial statements included herein have been prepared in accordance with the instructions to Form 10 8 X SEC ( U.S. GAAP not December 31, 2020 10 March 4, 2021. December 31, 2020 December 31, 2020 10 not Where necessary, the prior year’s information has been reclassified to conform to the current year presentation. Principles of Consolidation The Company has one December 2020, Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions (e.g., stock-based compensation valuation, allowance for doubtful accounts, valuation of inventory and intangible assets, warranty reserve, accrued expense and recognition and measurement of contingencies) that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and affect the reported amounts of revenue and expense during the reporting period. Actual results could materially differ from those estimates. 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, restricted stock units and warrants exercisable or issuable for a total of 5,397,165 shares of Common Stock were outstanding at September 30, 2021. not Exit Activity Expense During the second June 30, 2021 100 150 three September 30, 2021. The $747 of exit costs were recorded as a component of cost of revenues. There was no such expense recorded during the prior year. Development and start-up expense of new products are expensed as incurred except for capitalized equipment and tooling. Recent Issued Accounting Guidance Adopted the First Quarter of 2021: In December 2019, 2019 12, Income Taxes (Topic 740 ): Simplifying the Accounting for Income Taxes ASU 2019 12 2019 12 740 2019 12 first March 31, 2021 not Other Pronouncements: In August 2020, 2020 06, Debt Debt with Conversion and Other Options ( Subtopic 470 20 ) and Derivatives and Hedging Contracts in Entity s Own Equity (Subtopic 815 40 ): Accounting for Convertible Instruments and Contracts in an Entity s Own Equity December 15, 2021, The Company has reviewed other recently issued, but not not |
Note 2 - Revenue and Product Ex
Note 2 - Revenue and Product Expense | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 2. REVENUE AND PRODUCT EXPENSE On January 1, 2018, 606, ( Topic 606 ) no no 606 five 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. 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. SSP SSPs not 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 none The Company has elected to recognize shipping costs as an expense in cost of revenue when control has transferred to the customer. Time-based virtual reality system contracts generally include setup, training and the use of software and hardware for a fixed term, generally one five not not The timing of revenue recognition may September 30, 2021 December 31, 2020 The Company may 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 September 30, 2021 December 31, 2020. one Estimated expense for the Company’s standard one |
Note 3 - Fair Value Measurement
Note 3 - Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 3. FAIR VALUE MEASUREMENTS Assets and liabilities recorded at fair value on a recurring basis in the Condensed 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 three Level 1 Level 2 not Level 3 no Instruments Measured at Fair Value on a Recurring Basis The Company’s cash equivalent Money Market Funds and short-term investments consisting of U.S. Treasury bill securities are classified as Level 1 The following table shows the Company’s cash and cash equivalents, Money Market Funds and short-term investments by significant investment category as of September 30, 2021 December 31, 2020. As of September 30, 2021 Adjusted Unrealized Unrealized Market Cost Gains Losses Value Level 1: Money Market Funds $ 1,535 $ - $ - $ 1,535 U.S. Treasury securities considered cash equivalents - - - - U.S. Treasury securities in short-term investments 29,993 11 - 30,004 Total Financial Assets $ 31,528 $ 11 $ - $ 31,539 As of December 31, 2020 Adjusted Unrealized Unrealized Market Cost Gains Losses Value Level 1: Money Market Funds $ 6,035 $ - $ - $ 6,035 U.S. Treasury securities considered cash equivalents 9,998 - - 9,998 U.S. Treasury securities in short-term investments 24,979 15 - 24,994 Total Financial Assets $ 41,012 $ 15 $ - $ 41,027 Unrealized gains or losses resulting from our short-term investments are recorded in accumulated other comprehensive gain or loss. As of September 30, 2021, 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 sheet. |
Note 4 - Inventories, Net
Note 4 - Inventories, Net | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 4. 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: September 30, December 31, 2021 2020 Finished goods $ 1,796 $ 1,249 Work in process 142 64 Raw materials 402 1,342 Inventories, net 2,340 2,655 Less allowance for obsolescence (56 ) - Inventories - net $ 2,284 $ 2,655 As part of product line exit costs (see Note 1 June 30, 2021 September 30, 2021. |
Note 5 - Property and Equipment
Note 5 - Property and Equipment, Net | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 5. PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following: September 30, December 31, 2021 2020 Production and lab equipment $ 450 $ 148 Tooling 188 81 Computer equipment 408 180 Furniture, fixtures and improvements 177 165 1,223 574 Accumulated depreciation (335 ) (217 ) Property and equipment, net $ 888 $ 357 Depreciation expense was $69 and $191 for the three nine September 30, 2021 three nine September 30, 2020, As part of product line exit costs (see Note 1 June 30, 2021. |
Note 6 - Intangible Assets, Net
Note 6 - Intangible Assets, Net | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | 6. INTANGIBLE ASSETS, NET Intangible assets consisted of the following: September 30, December 31, 2021 2020 Amortizable intangible assets: Patents $ 368 $ 280 Trademarks 125 84 Software 1,023 662 Other 50 50 1,566 1,076 Accumulated amortization (138 ) (23 ) Total amortizable 1,428 1,053 Indefinite life assets (non-amortizable) 344 344 Total intangible assets, net $ 1,772 $ 1,397 Amortization expense was $48 and $145 for the three nine September 30, 2021 three nine September 30, 2020, September 30, 2021. At September 30, 2021, 2021 (3 months) $ 60 2022 223 2023 218 2024 218 2025 218 Thereafter 491 Total estimated amortization expense $ 1,428 |
Note 7 - Accounts Payable and A
Note 7 - Accounts Payable and Accrued Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 7. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable includes $134 and $53 due to related party Syzygy Licensing, LLC (“ Syzygy September 30, 2021 December 31, 2020, December 31, 2020 V3 12 13 Accrued liabilities consist of the following: September 30, December 31, 2021 2020 Patent and legal costs $ 22 $ 65 Accrued compensation 972 563 Warranty costs 82 48 Consulting costs 269 2 Taxes and other 21 43 $ 1,366 $ 721 |
Note 8 - Leases
Note 8 - Leases | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | 8. LEASES The Company adopted ASU 2016 02, 842 January 1, 2019 not 842 12 Amortization of Right of Use operating lease assets was $21 and $67 for the three nine September 30, 2021 three nine September 30, 2020, Operating lease expense for capitalized operating leases included in operating activities was $23 and $73 for the three nine September 30, 2021 three nine September 30, 2020, Operating lease obligations recorded on the balance sheet at September 30, 2021 Operating lease liability- short term $ 79 Operating lease liability - long term - Total Operating Lease Liability $ 79 Future lease payments included in the measurement of lease liabilities on the balance sheet at September 30, 2021 2021 (3 months) $ 24 2022 58 Total future minimum lease payments 82 Less imputed interest (3 ) Total $ 79 The weighted average remaining lease term is 0.8 The Company does not |
Note 9 - Other Liabilities
Note 9 - Other Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Other Liabilities Disclosure [Text Block] | 9. OTHER LIABILITIES The Company’s other liabilities at September 30, 2021 8 December 31, 2020 8 During the quarter ended September 30, 2021 3 |
Note 10 - Stockholders' Equity
Note 10 - Stockholders' Equity | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 10. 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 Summary of Stock Purchase Warrants The following table summarizes warrant activity during the nine September 30, 2021: Number Average Price Per Share Shares purchasable under outstanding warrants at December 31, 2020 3,206,910 $ 6.36 Stock purchase warrants issued - - Stock purchase warrants exercised (1,815,012 ) $ 6.64 Stock purchase warrants expired (231 ) $ 7.58 Shares purchasable under outstanding warrants at September 30, 2021 1,391,667 $ 6.00 The Company has outstanding Common Stock purchase warrants as of September 30, 2021 Number of Exercise Price Description Common Shares Per Share Expiration Date Purchase Warrants 1,391,667 $ 6.00 June 1, 2022 |
Note 11 - Share-based Compensat
Note 11 - Share-based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | 11. SHARE-BASED COMPENSATION On March 31, 2017, 2017 Plan May 2019, June 2020 June 2021, 2017 September 30, 2021 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. Stock Options The following table summarizes stock option activity for the nine September 30, 2021: Weighted Average Options on Remaining Aggregate Common Exercise Contractual Intrinsic Shares Price Term Value Outstanding December 31, 2020 3,931,586 $ 4.41 4.80 Granted 982,500 $ 5.57 Exercised (915,404 ) $ 1.83 Forfeited, cancelled, expired (319,799 ) $ 5.12 Outstanding September 30, 2021 3,678,883 $ 5.30 5.47 $ 4,335 Exercisable September 30, 2021 1,904,711 $ 4.37 3.01 $ 3,493 Options outstanding at December 31, 2020 December 1, 2024. September 30, 2021 no The Company recorded $836 and $2,065 of stock option compensation expense for employees, directors and consultants for the three nine September 30, 2021, three nine September 30, 2020, The Company uses the Black-Scholes option pricing model to determine the fair value of the options granted. The following table summarizes the assumptions used to compute the fair value of options granted to employees and non-employees: For the Nine Months Ended September 30, 2021 2020 Expected stock price volatility 50 % 46 % Risk-free interest rate 0.90 % 0.38 % Forfeiture rate 0 % 0 % Expected dividend yield 0 % 0 % Expected life of options - years 5.74 6.15 Weighted-average fair value of options granted $ 2.57 $ 3.43 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 risk-free interest rate assumption is based upon observed interest rates on zero zero no not Restricted Stock Units The Plan provides for the grant of restricted stock units (“ RSUs nine September 30, 2021: Weighted Average Weighted Average Service-Based Grant Date Vesting RSU's Fair Value Period (in Years) Unvested at December 31, 2020 428,006 $ 6.13 Granted - service based 352,890 $ 5.72 Vested (421,407 ) $ 5.63 Forfeited and cancelled (32,874 ) $ 6.10 Unvested at September 30, 2021 326,615 $ 6.34 2.1 Compensation expense for RSUs was $467 and $2,245 for the three nine September 30, 2021, three nine September 30, 2020, Share-Based Compensation Expense The Company recorded share-based compensation for options and RSUs in its statements of operations for the relevant periods as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Selling, general and administrative $ 1,093 $ 468 $ 3,722 $ 1,393 Research and development 210 78 588 169 Total share-based expense $ 1,303 $ 546 $ 4,310 $ 1,562 As of September 30, 2021, not September 30, 2021, not |
Note 12 - Commitments and Conti
Note 12 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 12. COMMITMENTS AND CONTINGENCIES Facility Leases See Note 8. Related Party Technology License Agreement The Company is obligated to pay royalties and pay development and patent costs pursuant to that certain exclusive Amended and Restated Intellectual Property License Agreement dated as of September 30, 2016, Syzygy Agreement September 30, 2026, three nine September 30, 2021 three nine September 30, 2020, Purchase Commitments At September 30, 2021 Securities Litigation On September 23, 2020, Norris Barnes Smith No. 2 20 08760 Cobden Complaint BolaWrap Pilot Program 10 20 10b 5 July 31, 2020 September 23, 2020. On October 1, 2020, second No. 2 20 09030 Mercurio Complaint October 15, 2020, third Thomas April 29, 2020 September 23, 2020, Earley Complaint No. 2 20 09444 On November 3, 2020, three In re Wrap Technologies, Inc. Securities Exchange Act Litigation No. 20 8760 Securities Action January 7, 2021, January 21, 2021, March 12, 2021, April 26, 2021, July 23, 2021. March 12, 2021, April 26, 2021. Shareholder Derivative Litigation On November 13, 2020, 1934, No. 2:20 10444 Rammohan Complaint January 20, 2021, second 1934, No. 2:21 00550 Westerman Complaint January 22, 2021, third 1934, No. 2:21 00597 Lowe Complaint The above-mentioned derivative cases were each been transferred to Judge Gee as cases related to the Securities Action. On February 16, 2021, In re Wrap Technologies, Inc. Shareholder Derivative Litigation No. 2:20 10444 Derivative Action March 9, 2021, Other Legal Information The Company may no September 30, 2021 no |
Note 13 - Related Party Transac
Note 13 - Related Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 13. RELATED PARTY TRANSACTIONS Commencing in October 2017 nine September 30, 2021 2020, July 1, 2021 See Notes 7, 11 12 |
Note 14 - Major Customers and R
Note 14 - Major Customers and Related Information | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | 14. MAJOR CUSTOMERS AND RELATED INFORMATION For the three September 30, 2021, two no 10% three September 30, 2020, one no 10% For the nine September 30, 2021, two no 10% nine September 30, 2020, three no 10% At September 30, 2021, two no 10% December 31, 2020 no 10% The following table summarizes revenues by geographic region. Revenues are attributed to countries based on customer’s delivery location. For the Three Months For the Nine Months Ended September 30, Ended September 30, 2021 2020 2021 2020 Americas $ 1,088 $ 384 $ 2,837 $ 788 Europe, Middle East and Africa 745 51 2,424 653 Asia Pacific (28 ) 572 19 1,088 $ 1,805 $ 1,007 $ 5,280 $ 2,529 |
Note 15 - Subsequent Events
Note 15 - Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 15. SUBSEQUENT EVENTS In October 2021 150. 150 100 The Company evaluated other subsequent events for their potential impact on the financial statements and disclosures through the date the financial statements were available to be issued, and determined that, except as disclosed herein, no |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Business Description and Business Description [Policy Text Block] | Organization and Business Description Wrap Technologies, Inc., a Delaware corporation (the “ Company we us our Common Stock Nasdaq |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The Company’s unaudited interim condensed consolidated financial statements included herein have been prepared in accordance with the instructions to Form 10 8 X SEC ( U.S. GAAP not December 31, 2020 10 March 4, 2021. December 31, 2020 December 31, 2020 10 not Where necessary, the prior year’s information has been reclassified to conform to the current year presentation. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The Company has one December 2020, |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions (e.g., stock-based compensation valuation, allowance for doubtful accounts, valuation of inventory and intangible assets, warranty reserve, accrued expense and recognition and measurement of contingencies) that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and affect the reported amounts of revenue and expense during the reporting period. Actual results could materially differ from those estimates. |
Earnings Per Share, Policy [Policy Text Block] | 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, restricted stock units and warrants exercisable or issuable for a total of 5,397,165 shares of Common Stock were outstanding at September 30, 2021. not |
Exit Activity Expenses [Policy Text Block] | Exit Activity Expense During the second June 30, 2021 100 150 three September 30, 2021. The $747 of exit costs were recorded as a component of cost of revenues. There was no such expense recorded during the prior year. Development and start-up expense of new products are expensed as incurred except for capitalized equipment and tooling. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Issued Accounting Guidance Adopted the First Quarter of 2021: In December 2019, 2019 12, Income Taxes (Topic 740 ): Simplifying the Accounting for Income Taxes ASU 2019 12 2019 12 740 2019 12 first March 31, 2021 not Other Pronouncements: In August 2020, 2020 06, Debt Debt with Conversion and Other Options ( Subtopic 470 20 ) and Derivatives and Hedging Contracts in Entity s Own Equity (Subtopic 815 40 ): Accounting for Convertible Instruments and Contracts in an Entity s Own Equity December 15, 2021, The Company has reviewed other recently issued, but not not |
Note 3 - Fair Value Measureme_2
Note 3 - Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | As of September 30, 2021 Adjusted Unrealized Unrealized Market Cost Gains Losses Value Level 1: Money Market Funds $ 1,535 $ - $ - $ 1,535 U.S. Treasury securities considered cash equivalents - - - - U.S. Treasury securities in short-term investments 29,993 11 - 30,004 Total Financial Assets $ 31,528 $ 11 $ - $ 31,539 As of December 31, 2020 Adjusted Unrealized Unrealized Market Cost Gains Losses Value Level 1: Money Market Funds $ 6,035 $ - $ - $ 6,035 U.S. Treasury securities considered cash equivalents 9,998 - - 9,998 U.S. Treasury securities in short-term investments 24,979 15 - 24,994 Total Financial Assets $ 41,012 $ 15 $ - $ 41,027 |
Note 4 - Inventories, Net (Tabl
Note 4 - Inventories, Net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | September 30, December 31, 2021 2020 Finished goods $ 1,796 $ 1,249 Work in process 142 64 Raw materials 402 1,342 Inventories, net 2,340 2,655 Less allowance for obsolescence (56 ) - Inventories - net $ 2,284 $ 2,655 |
Note 5 - Property and Equipme_2
Note 5 - Property and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | September 30, December 31, 2021 2020 Production and lab equipment $ 450 $ 148 Tooling 188 81 Computer equipment 408 180 Furniture, fixtures and improvements 177 165 1,223 574 Accumulated depreciation (335 ) (217 ) Property and equipment, net $ 888 $ 357 |
Note 6 - Intangible Assets, N_2
Note 6 - Intangible Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | September 30, December 31, 2021 2020 Amortizable intangible assets: Patents $ 368 $ 280 Trademarks 125 84 Software 1,023 662 Other 50 50 1,566 1,076 Accumulated amortization (138 ) (23 ) Total amortizable 1,428 1,053 Indefinite life assets (non-amortizable) 344 344 Total intangible assets, net $ 1,772 $ 1,397 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | 2021 (3 months) $ 60 2022 223 2023 218 2024 218 2025 218 Thereafter 491 Total estimated amortization expense $ 1,428 |
Note 7 - Accounts Payable and_2
Note 7 - Accounts Payable and Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | September 30, December 31, 2021 2020 Patent and legal costs $ 22 $ 65 Accrued compensation 972 563 Warranty costs 82 48 Consulting costs 269 2 Taxes and other 21 43 $ 1,366 $ 721 |
Note 8 - Leases (Tables)
Note 8 - Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Lessee, Operating Lease, Disclosure [Table Text Block] | Operating lease liability- short term $ 79 Operating lease liability - long term - Total Operating Lease Liability $ 79 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | 2021 (3 months) $ 24 2022 58 Total future minimum lease payments 82 Less imputed interest (3 ) Total $ 79 |
Note 10 - Stockholders' Equity
Note 10 - Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Share-based Payment Arrangement, Outstanding Award, Activity, Excluding Option [Table Text Block] | Number Average Price Per Share Shares purchasable under outstanding warrants at December 31, 2020 3,206,910 $ 6.36 Stock purchase warrants issued - - Stock purchase warrants exercised (1,815,012 ) $ 6.64 Stock purchase warrants expired (231 ) $ 7.58 Shares purchasable under outstanding warrants at September 30, 2021 1,391,667 $ 6.00 |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | Number of Exercise Price Description Common Shares Per Share Expiration Date Purchase Warrants 1,391,667 $ 6.00 June 1, 2022 |
Note 11 - Share-based Compens_2
Note 11 - Share-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 December 31, 2020 3,931,586 $ 4.41 4.80 Granted 982,500 $ 5.57 Exercised (915,404 ) $ 1.83 Forfeited, cancelled, expired (319,799 ) $ 5.12 Outstanding September 30, 2021 3,678,883 $ 5.30 5.47 $ 4,335 Exercisable September 30, 2021 1,904,711 $ 4.37 3.01 $ 3,493 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | For the Nine Months Ended September 30, 2021 2020 Expected stock price volatility 50 % 46 % Risk-free interest rate 0.90 % 0.38 % Forfeiture rate 0 % 0 % Expected dividend yield 0 % 0 % Expected life of options - years 5.74 6.15 Weighted-average fair value of options granted $ 2.57 $ 3.43 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | Weighted Average Weighted Average Service-Based Grant Date Vesting RSU's Fair Value Period (in Years) Unvested at December 31, 2020 428,006 $ 6.13 Granted - service based 352,890 $ 5.72 Vested (421,407 ) $ 5.63 Forfeited and cancelled (32,874 ) $ 6.10 Unvested at September 30, 2021 326,615 $ 6.34 2.1 |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Selling, general and administrative $ 1,093 $ 468 $ 3,722 $ 1,393 Research and development 210 78 588 169 Total share-based expense $ 1,303 $ 546 $ 4,310 $ 1,562 |
Note 14 - Major Customers and_2
Note 14 - Major Customers and Related Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | For the Three Months For the Nine Months Ended September 30, Ended September 30, 2021 2020 2021 2020 Americas $ 1,088 $ 384 $ 2,837 $ 788 Europe, Middle East and Africa 745 51 2,424 653 Asia Pacific (28 ) 572 19 1,088 $ 1,805 $ 1,007 $ 5,280 $ 2,529 |
Note 1 - Organization and Sum_2
Note 1 - Organization and Summary of Significant Accounting Policies (Details Textual) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021USD ($)$ / shares | Jun. 30, 2021USD ($)$ / shares | Sep. 30, 2020USD ($) | Jun. 30, 2021USD ($)$ / shares | Sep. 30, 2021USD ($)$ / sharesshares | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)$ / shares | |
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Number of Wholly-owned Subsidiaries | 1 | 1 | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | shares | 5,397,165 | ||||||
Product Line Exit Expense | $ 0 | $ 747 | $ 0 | $ 747 | $ 0 | $ 0 | |
Write-off, Inventory Cost | 54 | 531 | |||||
Retiring Cost | $ 106 | ||||||
Raw Material Purchase Reserve | $ 110 | $ 110 | |||||
Inventory Valuation Reserves, Ending Balance | $ 56 | $ 56 | $ 0 |
Note 2 - Revenue and Product _2
Note 2 - Revenue and Product Expense (Details Textual) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Contract with Customer, Liability, Total | $ 240 | $ 16 |
Contract with Customer, Asset, after Allowance for Credit Loss, Total | 0 | 0 |
Virtual Reality Training [Member] | ||
Contract with Customer, Liability, Total | 152 | 14 |
Extended Product Warranties [Member] | ||
Contract with Customer, Liability, Total | $ 88 | $ 2 |
Note 3 - Fair Value Measureme_3
Note 3 - Fair Value Measurements (Details Textual) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Marketable Securities, Unrealized Gain (Loss), Total | $ 11 |
Note 3 - Fair Value Measureme_4
Note 3 - Fair Value Measurements - Instruments by Significant Investment Category (Details) - Fair Value, Inputs, Level 1 [Member] - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Adjusted Cost | $ 31,528 | $ 41,012 |
Unrealized Gains | 11 | 15 |
Unrealized Losses | 0 | 0 |
Market Value | 31,539 | 41,027 |
Money Market Fund [Member] | ||
Adjusted Cost | 1,535 | 6,035 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Market Value | 1,535 | 6,035 |
US Treasury Securities Considered Cash Equivalents [Member] | ||
Adjusted Cost | 0 | 9,998 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Market Value | 0 | 9,998 |
US Treasury Securities in Short-term Investments [Member] | ||
Adjusted Cost | 29,993 | 24,979 |
Unrealized Gains | 11 | 15 |
Unrealized Losses | 0 | 0 |
Market Value | $ 30,004 | $ 24,994 |
Note 4 - Inventories, Net (Deta
Note 4 - Inventories, Net (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Jun. 30, 2021 | |
Write-off, Inventory Cost | $ 54 | $ 531 |
Note 4 - Inventories, Net - Sum
Note 4 - Inventories, Net - Summary of Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Finished goods | $ 1,796 | $ 1,249 |
Work in process | 142 | 64 |
Raw materials | 402 | 1,342 |
Inventories, gross | 2,340 | 2,655 |
Less allowance for obsolescence | (56) | 0 |
Inventories - net | $ 2,284 | $ 2,655 |
Note 5 - Property and Equipme_3
Note 5 - Property and Equipment, Net (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Depreciation, Depletion and Amortization, Total | $ 69 | $ 35 | $ 191 | $ 82 | |
Production Costs, Period Cost | $ 106 |
Note 5 - Property and Equipme_4
Note 5 - Property and Equipment, Net - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Property and equipment, gross | $ 1,223 | $ 574 |
Accumulated depreciation | (335) | (217) |
Property and equipment, net | 888 | 357 |
Production and Lab Equipment [Member] | ||
Property and equipment, gross | 450 | 148 |
Tooling [Member] | ||
Property and equipment, gross | 188 | 81 |
Computer Equipment [Member] | ||
Property and equipment, gross | 408 | 180 |
Furniture and Fixtures [Member] | ||
Property and equipment, gross | $ 177 | $ 165 |
Note 6 - Intangible Assets, N_3
Note 6 - Intangible Assets, Net (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Amortization of Intangible Assets, Total | $ 48 | $ 3 | $ 145 | $ 9 |
Impairment of Intangible Assets, Finite-lived | $ 170 | $ 0 | ||
Computer Software, Intangible Asset [Member] | ||||
Impairment of Intangible Assets, Finite-lived | $ 170 |
Note 6 - Intangible Assets, N_4
Note 6 - Intangible Assets, Net - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Amortizable intangible assets, gross | $ 1,566 | $ 1,076 |
Accumulated amortization | (138) | (23) |
Total estimated amortization expense | 1,428 | 1,053 |
Indefinite life assets (non-amortizable) | 344 | 344 |
Total intangible assets, net | 1,772 | 1,397 |
Patents [Member] | ||
Amortizable intangible assets, gross | 368 | 280 |
Trademarks [Member] | ||
Amortizable intangible assets, gross | 125 | 84 |
Computer Software, Intangible Asset [Member] | ||
Amortizable intangible assets, gross | 1,023 | 662 |
Other Intangible Assets [Member] | ||
Amortizable intangible assets, gross | $ 50 | $ 50 |
Note 6 - Intangible Assets, N_5
Note 6 - Intangible Assets, Net - Future Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
2021 (3 months) | $ 60 | |
2022 | 223 | |
2023 | 218 | |
2024 | 218 | |
2025 | 218 | |
Thereafter | 491 | |
Total estimated amortization expense | $ 1,428 | $ 1,053 |
Note 7 - Accounts Payable and_3
Note 7 - Accounts Payable and Accrued Liabilities (Details Textual) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Syzygy Licensing LLC [Member] | ||
Accounts Payable, Total | $ 134 | $ 53 |
V3 Capital Partners, LLC [Member] | ||
Accounts Payable, Total | $ 10 |
Note 7 - Accounts Payable and_4
Note 7 - Accounts Payable and Accrued Liabilities - Summary of Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Patent and legal costs | $ 22 | $ 65 |
Accrued compensation | 972 | 563 |
Warranty costs | 82 | 48 |
Consulting costs | 269 | 2 |
Taxes and other | 21 | 43 |
Accrued Liabilities, Current, Total | $ 1,366 | $ 721 |
Note 8 - Leases (Details Textua
Note 8 - Leases (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 21 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | |
Operating Lease, Right-of-Use Asset, Amortization Expense | $ 21 | $ 31 | $ 67 | $ 91 | |
Operating Lease, Expense | $ 23 | $ 34 | $ 73 | $ 103 | |
Finance Lease, Weighted Average Remaining Lease Term (Year) | 9 months 18 days | 9 months 18 days | 9 months 18 days | ||
Operating Lease, Weighted Average Discount Rate, Percent | 7.00% | 7.00% | 7.00% |
Note 8 - Leases - Summary of Op
Note 8 - Leases - Summary of Operating Lease Obligations (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Operating lease liability- short term | $ 79 | $ 94 |
Operating lease liability - long term | 0 | $ 56 |
Total Operating Lease Liability | $ 79 |
Note 8 - Leases - Future Lease
Note 8 - Leases - Future Lease Payments (Details) $ in Thousands | Sep. 30, 2021USD ($) |
2021 (3 months) | $ 24 |
2022 | 58 |
Total future minimum lease payments | 82 |
Less imputed interest | (3) |
Total | $ 79 |
Note 9 - Other Liabilities (Det
Note 9 - Other Liabilities (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Business Combination, Acquisition Related Costs | $ 298 | |||
Business Combination, Contingent Consideration, Liability, Total | $ 0 | $ 0 | 275 | |
Contingent Consideration | $ 23 | |||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ (23) | $ 0 | ||
Other Income [Member] | ||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ (23) |
Note 10 - Stockholders' Equit_2
Note 10 - Stockholders' Equity (Details Textual) - $ / shares | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Common Stock, Shares Authorized (in shares) | 150,000,000 | 150,000,000 | 150,000,000 |
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Preferred Stock, Shares Authorized (in shares) | 5,000,000 | 5,000,000 | 5,000,000 |
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Note 10 - Stockholders' Equit_3
Note 10 - Stockholders' Equity - Summary of Warrant Activity (Details) - Purchase Warrants [Member] | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Shares purchasable under outstanding warrants, beginning balance (in shares) | shares | 3,206,910 |
Shares purchasable, average price per share, beginning balance (in dollars per share) | $ / shares | $ 6.36 |
Stock purchase warrants issued (in shares) | shares | 0 |
Stock purchase warrants issued (in dollars per share) | $ / shares | $ 0 |
Stock purchase warrants exercised (in shares) | shares | (1,815,012) |
Stock purchase warrants exercised (in dollars per share) | $ / shares | $ 6.64 |
Stock purchase warrants expired (in shares) | shares | (231) |
Stock purchase warrants expired (in dollars per share) | $ / shares | $ 7.58 |
Shares purchasable under outstanding warrants, ending balance (in shares) | shares | 1,391,667 |
Shares purchasable, average price per share, ending balance (in dollars per share) | $ / shares | $ 6 |
Note 10 - Stockholders' Equit_4
Note 10 - Stockholders' Equity - Oustanding Common Stock Purchase Warrants (Details) - Purchase Warrants [Member] | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Purchase Warrants, Number of Common Shares (in shares) | shares | 1,391,667 |
Warrants, exercise price (in dollars per share) | $ / shares | $ 6 |
Purchase Warrants, Expiration Date | Jun. 1, 2022 |
Note 11 - Share-based Compens_3
Note 11 - Share-based Compensation (Details Textual) - USD ($) $ / shares in Units, Pure in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Jun. 30, 2021 | Jun. 30, 2020 | May 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance (in shares) | 3,678,883 | 3,678,883 | 3,931,586 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance (in dollars per share) | $ 5.30 | $ 5.30 | $ 4.41 | ||||||
Share-based Payment Arrangement, Expense | $ 1,303 | $ 546 | $ 4,310 | $ 1,562 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | 0.00% | |||||||
The 2017 Stock Incentive Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 7,500,000 | 6,000,000 | 2,000,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized (in shares) | 1,500,000 | 1,900,000 | 2,100,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares) | 1,667,338 | 1,667,338 | |||||||
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | $ 4,300 | $ 4,300 | |||||||
The 2017 Stock Incentive Plan [Member] | Performance-based Options [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance (in shares) | 100,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance (in dollars per share) | $ 5.46 | ||||||||
Share-based Payment Arrangement, Expense | $ 0 | $ 0 | |||||||
The 2017 Stock Incentive Plan [Member] | Share-based Payment Arrangement, Option [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | ||||||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 2 years 3 months 18 days | ||||||||
The 2017 Stock Incentive Plan [Member] | Share-based Payment Arrangement, Option [Member] | Employees, Directors and Consultants [Member] | |||||||||
Share-based Payment Arrangement, Expense | 836 | 319 | $ 2,065 | $ 599 | |||||
The 2017 Stock Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | |||||||||
Share-based Payment Arrangement, Expense | 467 | $ 227 | $ 2,245 | $ 963 | |||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 2 years 1 month 6 days | ||||||||
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 1,718 | $ 1,718 |
Note 11 - Share-based Compens_4
Note 11 - Share-based Compensation - Summary of Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | Dec. 31, 2020$ / sharesshares | |
Options on Common Shares, Outstanding (in shares) | shares | 3,931,586 | |
Outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 4.41 | |
Outstanding, remaining contractual term (Year) | 5 years 5 months 19 days | 4 years 9 months 18 days |
Options on Common Shares, Granted (in shares) | shares | 982,500 | |
Granted, weighted average exercise price (in dollars per share) | $ / shares | $ 5.57 | |
Options on Common Shares, Exercised (in shares) | shares | (915,404) | |
Exercised, weighted average exercise price (in dollars per share) | $ / shares | $ 1.83 | |
Options on Common Shares, Forfeited, cancelled, expired (in shares) | shares | (319,799) | |
Forfeited, cancelled, expired, weighted average exercise price (in dollars per share) | $ / shares | $ 5.12 | |
Options on Common Shares, Outstanding (in shares) | shares | 3,678,883 | 3,931,586 |
Outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 5.30 | $ 4.41 |
Outstanding, aggregate intrinsic value | $ | $ 4,335 | |
Options on Common Shares, Exercisable (in shares) | shares | 1,904,711 | |
Exercisable weighted average exercise price (in dollars per share) | $ / shares | $ 4.37 | |
Exercisable, remaining contractual term (Year) | 3 years 3 days | |
Exercisable, aggregate intrinsic value | $ | $ 3,493 |
Note 11 - Share-based Compens_5
Note 11 - Share-based Compensation - Summary of Stock Option Valuation Assumptions (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Expected stock price volatility | 50.00% | 46.00% |
Risk-free interest rate | 0.90% | 0.38% |
Forfeiture rate | 0.00% | 0.00% |
Expected dividend yield | 0.00% | 0.00% |
Expected life of options (Year) | 5 years 8 months 26 days | 6 years 1 month 24 days |
Weighted-average fair value of options granted (in dollars per share) | $ 2.57 | $ 3.43 |
Note 11 - Share-based Compens_6
Note 11 - Share-based Compensation - Summary of RSU Activity (Details) - Restricted Stock Units (RSUs) [Member] | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Awards other than options, unvested, beginning balance (in shares) | shares | 428,006 |
Awards other than options, unvested, weighted average grant date fair value, beginning balance (in dollars per share) | $ / shares | $ 6.13 |
Awards other than options, Granted - service based (in shares) | shares | 352,890 |
Awards other than options, granted - service based, weighted average grant date fair value (in dollars per share) | $ / shares | $ 5.72 |
Awards other than options, Vested (in shares) | shares | (421,407) |
Awards other than options, vested, weighted average grant date fair value (in dollars per share) | $ / shares | $ 5.63 |
Awards other than options, Forfeited and cancelled (in shares) | shares | (32,874) |
Awards other than options, forfeited and cancelled, weighted average grant date fair value (in dollars per share) | $ / shares | $ 6.10 |
Awards other than options, unvested, ending balance (in shares) | shares | 326,615 |
Awards other than options, unvested, weighted average grant date fair value, ending balance (in dollars per share) | $ / shares | $ 6.34 |
Weighted average vesting period (Year) | 2 years 1 month 6 days |
Note 11 - Share-based Compens_7
Note 11 - Share-based Compensation - Allocation of Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based expense | $ 1,303 | $ 546 | $ 4,310 | $ 1,562 |
Selling, General and Administrative Expenses [Member] | ||||
Share-based expense | 1,093 | 468 | 3,722 | 1,393 |
Research and Development Expense [Member] | ||||
Share-based expense | $ 210 | $ 78 | $ 588 | $ 169 |
Note 12 - Commitments and Con_2
Note 12 - Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2016 | |
Contractual Obligation, Total | $ 713 | $ 713 | |||
Estimated Litigation Liability | 0 | 0 | |||
Related Party Technology License Agreement [Member] | Syzygy Licensing LLC [Member] | |||||
Royalty Payments, Percentage of Product Revenue | 4.00% | ||||
Maximum Royalties to Be Paid Under Agreement | $ 1,000 | ||||
Royalty Expense | $ 65 | $ 37 | $ 185 | $ 90 |
Note 13 - Related Party Trans_2
Note 13 - Related Party Transactions (Details Textual) - Mr. Elwood Norris [Member] - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Reimbursement of Expenses to Related Party, Monthly Amount | $ 1,500 | |
Related Party Transaction, Amounts of Transaction | $ 13,000 | $ 13,000 |
Note 14 - Major Customers and_3
Note 14 - Major Customers and Related Information (Details Textual) - Customer Concentration Risk [Member] | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Revenue Benchmark [Member] | |||||
Number of Major Customers | 2 | 2 | 3 | ||
Revenue Benchmark [Member] | Distributor One [Member] | |||||
Concentration Risk, Percentage | 41.00% | 49.00% | 27.00% | 39.00% | |
Revenue Benchmark [Member] | Distributor Two [Member] | |||||
Concentration Risk, Percentage | 29.00% | 21.00% | 12.00% | ||
Revenue Benchmark [Member] | Agencies [Member] | |||||
Number of Major Customers | 1 | ||||
Revenue Benchmark [Member] | Distributor Three [Member] | |||||
Concentration Risk, Percentage | 11.00% | ||||
Accounts Receivable [Member] | |||||
Number of Major Customers | 2 | 2 | |||
Accounts Receivable [Member] | Distributor One [Member] | |||||
Concentration Risk, Percentage | 45.00% | 28.00% | |||
Accounts Receivable [Member] | Distributor Two [Member] | |||||
Concentration Risk, Percentage | 22.00% | 26.00% |
Note 14 - Major Customers and_4
Note 14 - Major Customers and Related Information - Disaggregation of Revenue by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues | $ 1,805 | $ 1,007 | $ 5,280 | $ 2,529 |
Americas [Member] | ||||
Revenues | 1,088 | 384 | 2,837 | 788 |
Europe, Middle East and Africa [Member] | ||||
Revenues | 745 | 51 | 2,424 | 653 |
Asia Pacific [Member] | ||||
Revenues | $ (28) | $ 572 | $ 19 | $ 1,088 |