Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 04, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-14893 | |
Entity Registrant Name | RESEARCH FRONTIERS INCORPORATED | |
Entity Central Index Key | 0000793524 | |
Entity Tax Identification Number | 11-2103466 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 240 CROSSWAYS PARK DRIVE | |
Entity Address, City or Town | WOODBURY | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 11797-2033 | |
City Area Code | 516 | |
Local Phone Number | 364-1902 | |
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Trading Symbol | REFR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 31,650,396 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 1,884,086 | $ 269,964 |
Marketable securities | 2,755,111 | |
Royalty receivables, net of reserves of $1,173,450 in 2022 and $1,016,678 in 2021 | 442,454 | 831,636 |
Prepaid expenses and other current assets | 235,355 | 92,931 |
Total current assets | 2,561,895 | 3,949,642 |
Fixed assets, net | 79,612 | 92,954 |
Operating lease ROU assets | 396,819 | 469,824 |
Deposits and other assets | 33,567 | 33,567 |
Total assets | 3,071,893 | 4,545,987 |
Current liabilities: | ||
Current portion of operating lease liability | 190,001 | 182,091 |
Accounts payable | 31,698 | 66,460 |
Accrued expenses and other | 62,084 | 49,385 |
Deferred revenue | 7,171 | |
Total current liabilities | 290,954 | 297,936 |
Operating lease liability, net of current portion | 367,202 | 464,128 |
Total liabilities | 658,156 | 762,064 |
Shareholders’ equity: | ||
Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 31,650,396 in 2022 and 2021 | 3,165 | 3,165 |
Additional paid-in capital | 123,467,886 | 123,467,886 |
Accumulated deficit | (121,057,314) | (119,687,128) |
Total shareholders’ equity | 2,413,737 | 3,783,923 |
Total liabilities and shareholders’ equity | $ 3,071,893 | $ 4,545,987 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Royalties receivables, reserves | $ 1,173,450 | $ 1,016,678 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 31,650,396 | 31,650,396 |
Common stock, shares outstanding | 31,650,396 | 31,650,396 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Fee income | $ 85,511 | $ 113,937 | $ 259,339 | $ 327,060 |
Operating expenses | 682,239 | 503,078 | 1,282,937 | 1,128,674 |
Research and development | 146,432 | 139,810 | 295,257 | 284,988 |
Total expenses | 828,671 | 642,888 | 1,578,194 | 1,413,662 |
Operating loss | (743,160) | (528,951) | (1,318,855) | (1,086,602) |
Net investment (loss) income | 1,322 | 1,016 | (51,331) | 1,360 |
Net loss | $ (741,838) | $ (527,935) | $ (1,370,186) | $ (1,085,242) |
Basic and diluted net loss per common share | $ (0.02) | $ (0.02) | $ (0.04) | $ (0.03) |
Weighted average number of common shares outstanding | 31,650,396 | 31,650,396 | 31,650,396 | 31,642,686 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2020 | $ 3,158 | $ 123,164,623 | $ (117,840,776) | $ 5,327,005 |
Beginning balance, shares at Dec. 31, 2020 | 31,575,786 | |||
Exercise of options | $ 7 | 86,255 | 86,262 | |
Exercise of options, shares | 74,610 | |||
Net loss | (1,085,242) | (1,085,242) | ||
Ending balance, value at Jun. 30, 2021 | $ 3,165 | 123,250,878 | (118,926,018) | 4,328,025 |
Ending balance, shares at Jun. 30, 2021 | 31,650,396 | |||
Beginning balance, value at Mar. 31, 2021 | $ 3,165 | 123,250,878 | (118,398,083) | 4,855,960 |
Beginning balance, shares at Mar. 31, 2021 | 31,650,396 | |||
Net loss | (527,935) | (527,935) | ||
Ending balance, value at Jun. 30, 2021 | $ 3,165 | 123,250,878 | (118,926,018) | 4,328,025 |
Ending balance, shares at Jun. 30, 2021 | 31,650,396 | |||
Beginning balance, value at Dec. 31, 2021 | $ 3,165 | 123,467,886 | (119,687,128) | 3,783,923 |
Beginning balance, shares at Dec. 31, 2021 | 31,650,396 | |||
Net loss | (1,370,186) | (1,370,186) | ||
Ending balance, value at Jun. 30, 2022 | $ 3,165 | 123,467,886 | (121,057,314) | 2,413,737 |
Ending balance, shares at Jun. 30, 2022 | 31,650,396 | |||
Beginning balance, value at Mar. 31, 2022 | $ 3,165 | 123,467,886 | (120,315,476) | 3,155,575 |
Beginning balance, shares at Mar. 31, 2022 | 31,650,396 | |||
Net loss | (741,838) | (741,838) | ||
Ending balance, value at Jun. 30, 2022 | $ 3,165 | $ 123,467,886 | $ (121,057,314) | $ 2,413,737 |
Ending balance, shares at Jun. 30, 2022 | 31,650,396 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||||
Net loss | $ (741,838) | $ (527,935) | $ (1,370,186) | $ (1,085,242) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||
Depreciation and amortization | 14,409 | 14,941 | |||
Realized loss on marketable securities | 60,143 | ||||
Unrealized loss on marketable securities | 1,650 | ||||
Bad debts | 156,772 | ||||
ROU asset amortization | 73,005 | 73,309 | |||
Change in assets and liabilities: | |||||
Royalty receivables | 232,410 | (231,573) | |||
Prepaid expenses and other current assets | (142,424) | (143,413) | |||
Accounts payable and accrued expenses | (22,063) | 40,823 | |||
Deferred revenue | 7,171 | 26,002 | |||
Operating lease liability | (89,016) | (81,289) | |||
Net cash used in operating activities | (1,079,779) | (1,384,792) | |||
Cash flows from investing activities: | |||||
Purchases of fixed assets | (1,067) | (935) | |||
Purchases of marketable securities | (3,433,633) | ||||
Proceeds from sales of marketable securities | 2,694,968 | 300,000 | |||
Net cash provided by (used in) investing activities | 2,693,901 | (3,134,568) | |||
Cash flows from financing activities: | |||||
Proceeds from exercise of options | 86,262 | ||||
Net cash provided by financing activities | 86,262 | ||||
Net increase (decrease) in cash and cash equivalents | 1,614,122 | (4,433,098) | |||
Cash and cash equivalents at beginning of period | 269,964 | 4,772,705 | $ 4,772,705 | ||
Cash and cash equivalents at end of period | $ 1,884,086 | $ 339,607 | $ 1,884,086 | $ 339,607 | $ 269,964 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All such adjustments are of a normal recurring nature. Operating results for the three and six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2022. The condensed consolidated balance sheet at December 31, 2021 has been derived from the audited consolidated financial statements at that date. For further information, refer to the consolidated financial statements and footnotes thereto included in the Annual Report on Form 10-K relating to Research Frontiers Incorporated for the fiscal year ended December 31, 2021. Certain amounts in the accompanying June 30, 2021 condensed consolidated statements of cash flows have been reclassified to conform to the June 30, 2022 presentation. |
Business
Business | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business | Note 2. Business Research Frontiers Incorporated (“Research Frontiers” or the “Company”) operates in a single business segment which is engaged in the development and marketing of technology and devices to control the flow of light. Such devices, often referred to as “light valves” or suspended particle devices (“SPDs”), use colloidal particles that are either incorporated within a liquid suspension or a film, which is usually enclosed between two sheets of glass or plastic having transparent, electrically conductive coatings on the facing surfaces thereof. At least one of the two sheets is transparent. SPD technology, made possible by a flexible light-control film invented by Research Frontiers, allows the user to instantly and precisely control the shading of glass/plastic manually or automatically. SPD technology has numerous product applications, including SPD-Smart™ windows, sunshades, skylights and interior partitions for homes and buildings; automotive windows, sunroofs, sun visors, sunshades, rear-view mirrors, instrument panels and navigation systems; aircraft windows; museum display panels; eyewear products; and flat panel displays for electronic products. SPD-Smart light control film is now being developed for, or used in, architectural, automotive, marine, aerospace and appliance applications. The Company has primarily utilized its cash, cash equivalents, and investments generated from sales of our common stock, proceeds from the exercise of options and warrants, and royalty fees collected to fund its research and development of SPD light valves, for marketing initiatives, and for other working capital purposes. The Company’s working capital and capital requirements depend upon numerous factors, including the results of research and development activities, competitive and technological developments, the timing and cost of patent filings, and the development of new licensees and changes in the Company’s relationships with its existing licensees. The degree of dependence of the Company’s working capital requirements on each of the foregoing factors cannot be quantified; increased research and development activities and related costs would increase such requirements; the addition of new licensees may provide additional working capital or working capital requirements; and changes in relationships with existing licensees would have a favorable or negative impact depending upon the nature of such changes. We have incurred recurring losses since inception and expect to continue to incur losses as a result of costs and expenses related to our research and continued development of our SPD technology and our corporate general and administrative expenses. Our capital requirements and operations to date have been substantially funded through sales of our common stock, exercise of options and warrants and royalty fees collected. As of June 30, 2022, we had working capital of approximately $ 2.3 1.9 2.4 121.1 300,000 350,000 In the event that we are unable to generate sufficient cash from our operating activities or raise additional funds, we may be required to delay, reduce or severely curtail our operations or otherwise impede our on-going business efforts, which could have a material adverse effect on our business, operating results, financial condition and long-term prospects. The Company may seek to obtain additional funding through future equity issuances. There can be no assurance as to the availability or terms upon which such financing and capital might be available. The eventual success of the Company and generation of positive cash flow will be dependent upon the commercialization of products using the Company’s technology by the Company’s licensees and payments of continuing royalties on account thereof. To date, the Company has not generated sufficient revenue from its licensees to fund its operations. Recent Global Events: On March 11, 2020, the World Health Organization declared the novel strain of coronavirus (“COVID-19”) a global pandemic and recommended containment and mitigation measures worldwide. As a result, the Company expects operations at its facility to continue to be affected in some capacity, as the COVID-19 virus continues to proliferate and the federal, state and local governments under which we operate continue to adopt new rules. The Company has put in place enhanced procedures, such as restricting international and domestic travel, adopting a variety of steps designed to ensure social distancing in our facilities, including working remotely where available, and increasing our cleaning and sanitizing procedures in our facilities, in an effort to protect its employees and communities. Revenues were negatively impacted since the onset of the pandemic due to delays in manufacture of products using our technology. Most of the products using our technology are manufactured by licensees overseas in Europe and Asia who have been similarly affected by the pandemic. The disruption caused by public health crises, such as COVID-19, could result in lower levels of sale activity for products using our technology resulting in lower level of royalties owed to us from the sale of these products. The duration of the potential business disruptions and related financial impact cannot be reasonably estimated at this time, but could materially adversely affect our business, financial condition, results of operations, and cash flows. The Company increased its allowance for uncollectible royalty receivables until the collectability from certain licensees can be better ascertained in the regions affected by COVID-19. In connection with the COVID-19 crisis, Congress passed, and the president signed, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) which, among other things, provides relief for businesses impacted by the pandemic. The Company applied for and received $ 202,052 |
Patent Costs
Patent Costs | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Patent Costs | Note 3. Patent Costs The Company expenses costs relating to the development, acquisition or enforcement of patents due to the uncertainty of the recoverability of these items. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Note 4. Revenue Recognition The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers (Topic 606 ASC 606 follows a five-step approach to determining revenue recognition including: 1) Identification of the contract; 2) Identification of the performance obligations; 3) Determination of the transaction price; 4) Allocation of the transaction price; and 5) Recognition of revenue. The Company determined that its license agreements provide for three performance obligations which include: (i) the Grant of Use to its Patent Portfolio (“Grant of Use”), (ii) Stand-Ready Technical Support (“Technical Support”) including the transfer of trade secrets and other know-how, production of materials, scale-up support, analytical testing, etc., and (iii) access to new Intellectual Property (“IP”) that may be developed sometime during the course of the contract period (“New Improvements”). Given the nature of IP development, such New Improvements are on an unspecified basis and can occur and be made available to licensees at any time during the contract period. When a contract includes more than one performance obligation, the Company needs to allocate the total consideration to each performance obligation based on its relative standalone selling price or estimate the standalone selling price if it is not observable. A standalone selling price is not available for our performance obligations since we do not sell any of the services separately and there is no competitor pricing that is available. As a consequence, the best method for determining standalone selling price of our Grant of Use performance obligation is through a comparison of the average royalty rate for comparable license agreements as compared to our license agreements. Comparable license agreements must consider several factors including: (i) the materials that are being licensed, (ii) the market application for the licensed materials, and (iii) the financial terms in the license agreements that can increase or decrease the risk/reward nature of the agreement. Based on the royalty rate comparison referred to above, any pricing above and beyond the average royalty rate would relate to the Technical Support and New Improvements performance obligations. The Company focuses a significant portion of its time and resources to provide the Technical Support and New Improvements services to its licensees which further supports the conclusions reached using the royalty rate analysis. The Technical Support and New Improvements performance obligations are co-terminus over the term of the license agreement. For purposes of determining the transaction price, and recognizing revenue, the Company combined the Technical Support and New Improvements performance obligations because they have the same pattern of transfer and the same term. We maintain a staff of scientists and other professionals whose primary job responsibilities throughout the year are: (i) being available to respond to Technical Support needs of our licensees, and (ii) developing improvements to our technology which are offered to our licensees as New Improvements. Since the costs incurred to satisfy the Technical Support and New Improvements performance obligations are incurred evenly throughout the year, the value of the Technical Support and New Improvements services are recognized throughout the initial contract period as these performance obligations are satisfied. If the agreement is not terminated at the end of the initial contract period, it will renew on the same terms as the initial contract for a one-year period. Consequently, any fees or minimum annual royalty obligations relating to this renewal contract will be allocated similarly to the initial contract over the additional one-year period. We recognize revenue when or as the performance obligations in the contract are satisfied. For performance obligations that are fulfilled at a point in time, revenue is recognized at the fulfillment of the performance obligation. Since the IP is determined to be a functional license, the value of the Grant of Use is recognized in the first period of the contract term in which the license agreement is in force. The value of the Technical Support and New Improvements obligations is allocated throughout the contract period based on the satisfaction of its performance obligations. If the agreement is not terminated at the end of the contract period, it will renew on the same terms as the original agreement for a one-year period. Consequently, any fees or minimum annual royalties (“MAR”) relating to this renewal contract will be allocated similarly over that additional year. The Company’s license agreements have a variable royalty fee structure (meaning that royalties are a fixed percentage of sales that vary from period to period) and frequently include a minimum annual royalty commitment. In instances when sales of licensed products by its licensees exceed the MAR, the Company recognizes fee income as the amounts have been earned. Typically, the royalty rate for such sales is 10 15 Because of the immediate recognition of the Grant of Use performance obligation: (i) the first period of the contract term will generally have a higher percent allocation of the transaction price under ASC 606 than under the accounting guidance used prior to the adoption of ASC 606, and (ii) the remaining periods in the year will have less of the transaction price recognized under ASC 606 than under the accounting guidance used prior to the adoption of ASC 606. After the initial period in the contract term, the revenue for the remaining periods will be based on the satisfaction of the Technical Support and New Improvements obligations. Since most of our license agreements start as of January 1st, the revenue recognized for the contract under ASC 606 in our first quarter will tend to be higher than the accounting guidance used prior to the adoption of ASC 606. The Company does not have any contract assets under ASC 606 as of June 30, 2022. Certain of the contract fees are accrued by, or paid to, the Company in advance of the period in which they are earned resulting in deferred revenue (contract liabilities). Such excess amounts are recorded as deferred revenue and are recognized as revenue in future periods as earned. Contract assets represent unbilled receivables and are presented within accounts receivable, net on the condensed consolidated balance sheets. The Company operates in a single business segment which is engaged in the development and marketing of technology and devices to control the flow of light. Our revenue source comes from the licensing of this technology and all of these license agreements have similar terms and provisions. The majority of the Company’s licensing fee income comes from the activities of several licensees participating in the automotive market. The Company currently believes that the automotive market will be the largest source of its royalty income over the next several years. The Company’s royalty income from this market may be influenced by numerous factors including various trends affecting demand in the automotive industry and the rate of introduction of new technology in OEM product lines. In addition to these macro factors, the Company’s royalty income from the automotive market could also be influenced by specific factors such as whether the Company’s SPD-SmartGlass technology appears as standard equipment or as an option on a particular vehicle, the number of additional vehicle models that SPD-SmartGlass appears on, the size of each window on a vehicle and the number of windows on a vehicle that use SPD SmartGlass, fluctuations in the total number of vehicles produced by a manufacturer, and in the percentage of cars within each model produced with SPD-SmartGlass, and changes in pricing or exchange rates. As of June 30, 2022, the Company has four license agreements that are in their initial multiyear term (“Initial Term”) with continuing performance obligations going forward. The Initial Term of three of these licenses will end as of December 31, 2022, and one will end December 31, 2024. The Company currently expects that all of these agreements will renew annually at the end of the Initial Term. As of June 30, 2022, the aggregate amount of the revenue to be recognized upon the satisfaction of the remaining performance obligations for the four license agreements is $ 207,000 |
Fee Income
Fee Income | 6 Months Ended |
Jun. 30, 2022 | |
Fee Income | |
Fee Income | Note 5. Fee Income Fee income represents amounts earned by the Company under various license and other agreements relating to technology developed by the Company. During the first six months of 2022, two licensees accounted for 10% or more of fee income of the Company; these licensees accounted for approximately 34 % and 30 % of fee income recognized during such period. During the first six months of 2021, three licensees accounted for 10% or more of fee income of the Company; these licensees accounted for approximately 27 %, 23 % and 11 % of fee income recognized during such period. During the three months ended June 30, 2022, two licensees accounted for 10% or more of fee income of the Company; these licensees accounted for approximately 36 % and 28 % of fee income recognized during such period. During the three months ended June 30, 2021, three licensees accounted for 10% or more of fee income of the Company; these licensees accounted for approximately 27 %, 21 % and 15 % of fee income recognized during such period. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2022 | |
Compensation Related Costs [Abstract] | |
Stock-Based Compensation | Note 6. Stock-Based Compensation The Company has granted options/warrants to consultants. GAAP requires that all stock-based compensation be recognized as an expense in the financial statements and that such costs be measured at the fair value of the award at the date of grant. These awards generally vest ratably over 12 60 During the six months ended June 30, 2022 and 2021, the Company did no There was no As of June 30, 2022, there were 485,500 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 7. Income Taxes Since inception, the Company has incurred losses from operations and as a result has not recorded income tax expense. Benefits related to net operating loss carryforwards and other deferred tax items have been fully reserved since it was more likely than not that the Company would not achieve profitable operations and be able to utilize the benefit of the net operating loss carryforwards. |
Basic and Diluted Loss Per Comm
Basic and Diluted Loss Per Common Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Loss Per Common Share | Note 8. Basic and Diluted Loss Per Common Share Basic net income (loss) per share excludes any dilution. It is based upon the weighted average number of common shares outstanding during the period. Dilutive net income (loss) per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock. The Company’s dilutive loss per share equals basic loss per share for the periods ended June 30, 2022 and 2021, respectively, because all common stock equivalents (i.e ., 2,468,951 2,406,651 |
Equity
Equity | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Equity | Note 9. Equity No options or warrants were exercised during the periods ended June 30, 2022. During the six months ended June 30, 2021, the Company received $ 86,262 39,500 35,110 101,000 The Company did not sell any equity securities during the six months ended June 30, 2022 and 2021. As of June 30, 2022, there were 1,399,991 1,068,960 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2022 | |
Leases | |
Leases | Note 10. Leases The Company determines if an arrangement is a lease at its inception. This determination generally depends on whether the arrangement conveys the right to control the use of an identified fixed asset explicitly or implicitly for a period of time in exchange for consideration. Control of an underlying asset is conveyed if the Company obtains the rights to direct the use of, and to obtain substantially all of the economic benefits from the use of, the underlying asset. Lease expense for variable leases and short-term leases is recognized when the obligation is incurred. The Company has operating leases for certain facilities and equipment with a weighted average remaining lease term of 2.75 5.5 Operating lease expense for the three and six months ended June 30, 2022 was approximately $ 54,000 106,000 Maturities of operating lease liabilities as of June 30, 2022 were as follows: Schedule of Maturities of Operating Lease June 30, 2022 For the year ending December 31, 2022 $ 108,000 For the year ending December 31, 2023 217,000 For the year ending December 31, 2024 222,000 For the year ending December 31, 2025 and beyond 56,000 Total lease payments 603,000 Less: imputed lease interest (45,797 ) Present value of lease liabilities $ 557,203 |
Marketable Securities
Marketable Securities | 6 Months Ended |
Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | Note 11. Marketable Securities The Company classifies investments in marketable securities as trading, available-for-sale or held-to-maturity at the time of purchase and periodically re-evaluates such classification. Trading securities are carried at fair value, with unrealized holding gains and losses included in earnings. Held-to-maturity securities are recorded at cost and are adjusted for the amortization or accretion of premiums or discounts over the life of the related security. Unrealized holding gains and losses of available-for-sale securities are excluded from earnings and are reported as a separate component of accumulated other comprehensive income (loss) until realized. In determining realized gains and losses, the cost of the securities sold is based on the specific identification method. Interest and dividends on the investments are accrued at the balance sheet date. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. Fair value measurements are broken down into three levels based on the reliability of inputs as follows: Level 1 inputs are quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates and yield curves observable at commonly quoted intervals or current market) and contractual prices for the underlying financial instrument, as well as other relevant economic measures. Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. At June 30, 2022, the Company had no 60,143 1,650 No At December 31, 2021, all investments are Level 1 and were classified as trading and consisted of the following: Schedule of Investments Were Classified as Level 1 Trading Securities December 31, 2021 Value of trading Investment Investments Mutual Funds Putnam Short Duration Bond $ 1,972,736 Putnam Ultra Short Duration Income 782,375 $ 2,755,111 Unrealized loss $ 28,522 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases | |
Schedule of Maturities of Operating Lease | Maturities of operating lease liabilities as of June 30, 2022 were as follows: Schedule of Maturities of Operating Lease June 30, 2022 For the year ending December 31, 2022 $ 108,000 For the year ending December 31, 2023 217,000 For the year ending December 31, 2024 222,000 For the year ending December 31, 2025 and beyond 56,000 Total lease payments 603,000 Less: imputed lease interest (45,797 ) Present value of lease liabilities $ 557,203 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investments Were Classified as Level 1 Trading Securities | At December 31, 2021, all investments are Level 1 and were classified as trading and consisted of the following: Schedule of Investments Were Classified as Level 1 Trading Securities December 31, 2021 Value of trading Investment Investments Mutual Funds Putnam Short Duration Bond $ 1,972,736 Putnam Ultra Short Duration Income 782,375 $ 2,755,111 Unrealized loss $ 28,522 |
Business (Details Narrative)
Business (Details Narrative) - USD ($) | 6 Months Ended | |||||
Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Working capital | $ 2,300,000 | |||||
Cash and cash equivalents | 1,884,086 | $ 269,964 | ||||
Shareholders' equity | 2,413,737 | $ 3,155,575 | 3,783,923 | $ 4,328,025 | $ 4,855,960 | $ 5,327,005 |
Accumulated deficit | 121,057,314 | $ 119,687,128 | ||||
PPP Loan [Member] | ||||||
Proceeds from issuance of debt | 202,052 | |||||
Minimum [Member] | ||||||
Non-recurring cash expenses | 300,000 | |||||
Maximum [Member] | ||||||
Non-recurring cash expenses | $ 350,000 |
Revenue Recognition (Details Na
Revenue Recognition (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue recognition | $ 85,511 | $ 113,937 | $ 259,339 | $ 327,060 |
License Agreement [Member] | ||||
Revenue recognition | $ 207,000 | |||
Minimum [Member] | Revenue Benchmark [Member] | License Agreement [Member] | ||||
Royalty rate on selling price | 10% | |||
Maximum [Member] | Revenue Benchmark [Member] | License Agreement [Member] | ||||
Royalty rate on selling price | 15% |
Fee Income (Details Narrative)
Fee Income (Details Narrative) - Revenue Benchmark [Member] - Customer Concentration Risk [Member] | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Licensee One [Member] | ||||
Product Information [Line Items] | ||||
Concentration Risk, Percentage | 36% | 27% | 34% | 27% |
Licensee Two [Member] | ||||
Product Information [Line Items] | ||||
Concentration Risk, Percentage | 28% | 21% | 30% | 23% |
Licensee Three [Member] | ||||
Product Information [Line Items] | ||||
Concentration Risk, Percentage | 15% | 11% |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
2019 Equity Incentive Plan [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||
Shares available for future grant | 485,500 | |
Employees and Directors [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||
Stock options granted | 0 | 0 |
Compensation expense | $ 0 | |
Minimum [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||
Stock based compensation be recognized | 12 months | |
Maximum [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||
Stock based compensation be recognized | 60 months |
Basic and Diluted Loss Per Co_2
Basic and Diluted Loss Per Common Share (Details Narrative) - shares | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Options and Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities effect | 2,468,951 | 2,406,651 |
Equity (Details Narrative)
Equity (Details Narrative) | 6 Months Ended |
Jun. 30, 2022 USD ($) shares | |
Equity [Abstract] | |
Proceeds from exercise of options and warrants | $ | $ 86,262 |
Options and warrant issued in connection with exercises | 39,500 |
Capital stock issued | 35,110 |
Issuance of common stock options and warrants | 101,000 |
Warrants outstanding | 1,399,991 |
Options outstanding | 1,068,960 |
Schedule of Maturities of Opera
Schedule of Maturities of Operating Lease (Details) | Jun. 30, 2022 USD ($) |
Leases | |
For the year ending December 31, 2022 | $ 108,000 |
For the year ending December 31, 2023 | 217,000 |
For the year ending December 31, 2024 | 222,000 |
For the year ending December 31, 2025 and beyond | 56,000 |
Total lease payments | 603,000 |
Less: imputed lease interest | (45,797) |
Present value of lease liabilities | $ 557,203 |
Leases (Details Narrative)
Leases (Details Narrative) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | |
Leases | ||
Weighted average remaining lease term | 2 years 9 months | 2 years 9 months |
Weighted-average discount rate | 5.50% | 5.50% |
Operating lease expense | $ 54,000 | $ 106,000 |
Schedule of Investments Were Cl
Schedule of Investments Were Classified as Level 1 Trading Securities (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Marketable Securities [Line Items] | |||
Marketable securities | $ 2,755,111 | ||
Unrealized loss | $ (1,650) | ||
Fair Value, Inputs, Level 1 [Member] | |||
Marketable Securities [Line Items] | |||
Marketable securities | 2,755,111 | ||
Unrealized loss | 28,522 | ||
Fair Value, Inputs, Level 1 [Member] | Putnam [Member] | Short Duration Bond [Member] | |||
Marketable Securities [Line Items] | |||
Marketable securities | 1,972,736 | ||
Fair Value, Inputs, Level 1 [Member] | Putnam [Member] | Ultra Short Duration Income [Member] | |||
Marketable Securities [Line Items] | |||
Marketable securities | $ 782,375 |
Marketable Securities (Details
Marketable Securities (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |||
Marketable securities | $ 0 | $ 0 | |
Realized loss on marketable securities | 60,143 | ||
Unrealized loss on marketable securities | $ 1,650 | ||
Loss on marketable securities | $ 0 |