Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2021 | May 10, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 1-13810 | |
Entity Registrant Name | Socket Mobile, Inc. | |
Entity Central Index Key | 0000944075 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 39700 Eureka Drive | |
Entity Address, City or Town | Newark | |
Entity Address, State or Province | CA | |
Entity Address, Country | US | |
Entity Address, Postal Zip Code | 94560 | |
Country Region | United States of America | |
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 | 7,128,384 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Revenues | $ 4,812,979 | $ 4,220,686 |
Cost of revenues | 2,238,936 | 1,996,971 |
Gross profit | 2,574,043 | 2,223,715 |
Operating expenses: | ||
Research and development | 931,034 | 880,638 |
Sales and marketing | 660,462 | 767,796 |
General and administrative | 740,537 | 666,116 |
Total operating expenses | 2,332,033 | 2,314,550 |
Operating income (loss) | 242,010 | (90,835) |
Interest expense, net | (48,701) | (19,492) |
Other income | 10,082 | 20,000 |
Net income (loss) before income taxes | 203,391 | (90,327) |
Income tax expense | 489 | |
Net income (loss) | $ 202,902 | $ (90,327) |
Net income (loss) per share: | ||
Basic | $ 0.03 | $ (0.01) |
Diluted | $ 0.03 | $ (0.01) |
Weighted average shares outstanding: | ||
Basic | 6,484,391 | 6,014,007 |
Diluted | 7,305,988 | 6,014,007 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 4,961,278 | $ 2,121,763 |
Accounts receivable, net | 2,407,313 | 2,112,514 |
Inventories, net | 3,724,916 | 3,195,842 |
Prepaid expenses and other current assets | 388,156 | 335,386 |
Deferred cost on shipments to distributors | 178,834 | 170,016 |
Total current assets | 11,660,497 | 7,935,521 |
Property and equipment: | ||
Machinery and office equipment | 2,327,214 | 2,286,268 |
Computer equipment | 1,524,841 | 1,412,030 |
Property and equipment, gross | 3,852,055 | 3,698,298 |
Accumulated depreciation | (2,994,137) | (2,850,635) |
Property and equipment, net | 857,918 | 847,663 |
Intangible assets, net | 1,909,433 | |
Other long-term assets | 148,146 | 159,039 |
Deferred tax assets | 5,506,934 | 5,506,934 |
Operating lease right-of-use asset | 512,472 | 609,331 |
Total assets | 20,595,400 | 15,058,488 |
Current liabilities: | ||
Accounts payable and accrued expenses | 2,031,934 | 1,372,701 |
Accrued payroll and related expenses | 542,749 | 375,511 |
Deferred revenue on shipments to distributors | 524,872 | 450,591 |
Short term portion of deferred service revenue | 22,704 | 25,522 |
Note Payable – current portion | 500,000 | |
Subordinated convertible notes payable, net of discount | 140,593 | 169,619 |
Subordinated convertible notes payable, net of discount-related party | 1,179,437 | 1,272,138 |
Operating lease – current portion | 495,695 | 483,254 |
Total current liabilities | 5,437,984 | 4,149,336 |
Long-term portion of deferred service revenue | 24,636 | 28,794 |
Long-term portion of note payable | 500,000 | |
Long-term portion of operating lease | 130,047 | 258,097 |
Total liabilities | 6,092,667 | 4,436,227 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value: Authorized – 20,000,000 shares, Issued and outstanding – 7,125,371 shares at March 31, 2021 and 6,102,630 shares at December 31, 2020 | 7,125 | 6,103 |
Additional paid-in capital | 65,410,070 | 61,733,522 |
Accumulated deficit | (50,914,462) | (51,117,364) |
Total stockholders’ equity | 14,502,733 | 10,622,261 |
Total liabilities and stockholders’ equity | $ 20,595,400 | $ 15,058,488 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Common stock par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 7,125,371 | 6,102,630 |
Common stock, shares outstanding | 7,125,371 | 6,102,630 |
Condensed Statement of Stockhol
Condensed Statement of Stockholders' Equity (Unaudited) - USD ($) | Common Stock | Additional Paid-In Capital | Retained Earnings / Accumulated Deficit | Total |
Beginning Balance at Dec. 31, 2019 | $ 6,018 | $ 61,066,971 | $ (47,838,763) | $ 13,234,226 |
Beginning Balance (in shares) at Dec. 31, 2019 | 6,017,674 | |||
Repurchase of common stock | $ (5) | (8,491) | (8,496) | |
Repurchase of common stock (in shares) | (4,967) | |||
Cancellation of restricted stock | $ (3) | 3 | ||
Cancellation of restricted stock (in shares) | (3,200) | |||
Conversion of convertible note | ||||
Stock-based compensation | 132,055 | 132,065 | ||
Net income (loss) | (90,327) | (90,327) | ||
Ending Balance at Mar. 31, 2020 | $ 6,010 | 61,190,548 | (47,929,090) | 13,267,468 |
Ending Balance (in shares) at Mar. 31, 2020 | 6,009,507 | |||
Beginning Balance at Dec. 31, 2020 | $ 6,103 | 61,733,522 | (51,117,364) | 10,622,261 |
Beginning Balance (in shares) at Dec. 31, 2020 | 6,102,630 | |||
Vesting of restricted stocks | $ 39 | (39) | ||
Vesting of restricted stocks (in shares) | 38,775 | |||
Cancellation of restricted stock | $ (3) | 3 | ||
Cancellation of restricted stock (in shares) | (2,755) | |||
Exercise of stock options | $ 713 | 1,710,945 | 1,711,658 | |
Exercise of stock options (in shares) | 713,349 | |||
Issuance of common stock for intangible assets | $ 184 | 1,686,956 | 1,687,140 | |
Issuance of common stock for intangible assets (in shares) | 184,332 | |||
Conversion of convertible note | $ 89 | 129,911 | 130,000 | |
Conversion of convertible note (in shares) | 89,040 | |||
Stock-based compensation | 148,772 | 148,772 | ||
Net income (loss) | 202,902 | 202,902 | ||
Ending Balance at Mar. 31, 2021 | $ 7,125 | $ 65,410,070 | $ (50,914,462) | $ 14,502,733 |
Ending Balance (in shares) at Mar. 31, 2021 | 7,125,371 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating activities | ||
Net income (loss) | $ 202,902 | $ (90,327) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Stock-based compensation | 148,772 | 132,065 |
Depreciation and amortization | 164,017 | 147,279 |
Amortization of debt discount | 8,273 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (294,799) | 22,515 |
Inventories | (529,074) | (115,811) |
Prepaid expenses and other current assets | (52,770) | 6,045 |
Accounts payable and accrued expenses | 436,940 | (91,243) |
Accrued payroll and related expenses | 167,238 | (29,180) |
Net deferred revenue on shipments to distributors | 65,463 | (10,026) |
Deferred service revenue | (6,976) | (8,047) |
Net change in operating lease | (18,750) | (14,060) |
Net cash provided by (used in) operating activities | 291,236 | (50,790) |
Investing activities | ||
Purchases of equipment | (163,379) | (154,681) |
Net cash used in investing activities | (163,379) | (154,681) |
Financing activities | ||
Payments on finance leases | (4,111) | |
Common stock repurchase and related expenses | (8,496) | |
Proceeds from borrowings under bank line of credit agreement | 3,980,000 | |
Repayments of borrowings under bank line of credit agreement | (3,452,957) | |
Proceeds from note payable | 1,000,000 | |
Repayments of bank term loan | (125,000) | |
Stock options exercised | 1,711,658 | |
Net cash provided by financing activities | 2,711,658 | 389,436 |
Net increase in cash and cash equivalents | 2,839,515 | 183,965 |
Cash and cash equivalents at beginning of period | 2,121,763 | 958,860 |
Cash and cash equivalents at end of period | 4,961,278 | 1,142,825 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | 39,327 | 19,650 |
Non-cash investing and financing activities | ||
Conversion of note payable | 130,000 | |
Acquisition of intangible assets | $ 1,909,433 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Basis of Presentation | NOTE 1 Basis of Presentation The accompanying unaudited condensed financial statements of Socket Mobile, Inc. (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring accruals considered necessary for fair presentation have been included. The results of operations for the interim periods are not necessarily indicative of the operating results for the full fiscal year or any future period. These financial statements should be read in conjunction with the audited financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. We continue to monitor developments of the COVID-19 pandemic. The extent of the impact of the COVID-19 pandemic to our businesses, operating results, cash flows, liquidity and financial condition will be primarily driven by the severity and duration of the pandemic, the impact of new strains and variants of the coronavirus, the pandemic’s impact on the economies and the administration of vaccines. Those primary drivers are beyond our knowledge and control, and as a result, it is difficult to predict the cumulative impact that pandemic will have on our future sales, operating results, cash flows and financial condition. Furthermore, the impact to our businesses, operating results, cash flows, liquidity and financial condition may be further adversely impacted if the COVID-19 global pandemic continues to exist or worsens for a prolonged period of time or if plans to administer vaccines are delayed. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Summary of Significant Accounting Policies | NOTE 2 — Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates, and such differences may be material to the financial statements. Cash Equivalents and Fair Value of Financial Instruments The Company considers all highly liquid investments purchased with a maturity date of 90 days or less at date of purchase to be cash equivalents. At March 31, 2021 and December 31, 2020, all of the Company’s cash and cash equivalents consisted of amounts held in demand deposit accounts in banks. The aggregate cash balance on deposit in these accounts are insured by the Federal Deposit Insurance Corporation up to $250,000. The Company’s cash balance on deposit in these accounts may, at times, exceed the federally insured limits. The Company has never experienced any losses in such accounts. The carrying value of the Company’s cash and cash equivalents, accounts receivable, accounts payable, debt and foreign exchange contracts approximate fair value due to the relatively short period of time to maturity. Revenue Recognition and Deferred Revenue On January 1, 2017, the Company adopted ASC 606 “Revenue from Contracts with Customers” and implemented a new revenue recognition policy. Instead of deferring 100% of revenue and cost of revenue until products are sold by distributors, the new policy recognizes revenue on sales to distributors when shipping of product is completed and title transfers to the distributor, less a reserve for estimated product returns (sales and cost of sales). The reserves are based on estimates of future returns calculated from actual return history, primarily from stock rotations, plus knowledge of pending returns outside of the norm. At March 31, 2021, the deferred revenue and deferred cost on shipments to distributors were $524,872 and $178,834, respectively, compared to $450,591 and $170,016, respectively, at December 31, 2020. The Company also earns revenue from its SocketCare extended warranty program, which provides extended warranty and accidental breakage coverage for selected products. For the quarters ended March 31, 2021 and 2020, SocketCare revenue was approximately $7,400 and $9,900, respectively. A SocketCare warranty purchased at the time of product purchase provides for coverage in either a three-year or a five-year term. The Company additionally offers comprehensive coverage and warranty term extensions. Revenues from SocketCare services are recognized ratably over the life of the extended warranty contract. The amount of unrecognized SocketCare service revenue is classified as deferred service revenue and presented on the Company’s balance sheet in its short- and long-term components. At March 31, 2021, the balance of unrecognized SocketCare service revenue was approximately $47,000. Cost of Sales and Gross Margins Cost of sales primarily consists of the costs to manufacture our products, including the costs of materials, contract manufacturing, shipping costs, personnel and related expenses including stock-based compensation, equipment and facility expenses, warranty costs and inventory excess and obsolete provisions. The factors that impact our gross margins are the cost of materials, the mix of products and the extent to which we are able to efficiently utilize our manufacturing capacity. Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842), which requires a lessee to recognize a liability representing future lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. For operating leases, a lessee is required to recognize at inception a right-of-use asset and a lease liability equal to the net present value of the lease payments, with lease expense recognized over the lease term on a straight-line basis. For leases with a term of twelve months or less, ASU 2016-02 allows a reporting entity to make an accounting policy election to not recognize a right-of-use asset and a lease liability, and to recognize lease expense on a straight-line basis. The Company adopted ASU 2016-02 effective January 1, 2019. At March 31, 2021, the balances of right-of-use assets and liabilities for the operating lease are approximately $0.51 million and $0.62 million, respectively, compared to approximately $0.60 million and $0.74 million, respectively, at December 31, 2020. Goodwill In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The amendments in this update eliminate Step 2 from the goodwill impairment test. The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The Company tests its goodwill for impairment annually as of September 30th or more frequently when events or circumstances indicate that the carrying value of the Company’s single reporting unit more likely than not exceeds its fair value. No goodwill impairment of goodwill was recorded in the quarter ended March 31, 2021. Recently Issued Financial Accounting Standards From time to time, new accounting pronouncements are issued by the FASB or other standards setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, management believes that the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s financial position, results of operations or cash flows upon adoption. |
Note 3 - Acquisitions
Note 3 - Acquisitions | 3 Months Ended |
Mar. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Note 3 - Acquisitions | NOTE 3 — Acquisition On February 26, 2021, the Company entered into the 2021 Technology Transfer Agreement with SpringCard SAS (“SpringCard”). SpringCard is a market leader at the forefront of innovative electronic design and development. Its contactless and wireless solutions support a wide range of customers, from large international corporations to locally focused companies. Under the 2021 Technology Transfer Agreement, the Company acquired an irrevocable, perpetual, non-exclusive, transferable, worldwide, unlimited, unrestricted, royalty-free, fully paid-up right and license to SpringCard’s Contactless Technology Package for use in the Company’s Contactless Reader/Writer products, D600 and S550. SpringCard received 184,332 shares of the Company’s common stock, subject to a collar, and a 10-year warrant to purchase up to an aggregate of 50,000 shares of the Company’s common stock at the price of $10.85 per share in four equal lots of 12,500 shares each, with each lot exercisable on or after January 1st of 2022, 2023, 2024 and 2025, respectively, until the expiration date of warrant. The common stock was issued on March 29, 2021. The fair value of intangible assets acquired is based on the closing stock price of $7.65 on March 29, 2021. On April 20, 2021, the Company agreed to pay SpringCard the sum of $192,293 to resolve all issues that have arisen due to clerical issues in the implementation of the 2021 Technology Transfer Agreement. The Company and SpringCard both agreed that, with this payment, the Company shall have no further financial obligation to SpringCard under the 2021 Technology Transfer Agreement. The Unaudited Condensed Balance Sheets include the intangible assets of the acquired technology at the value of $1,909,433. The SpringCard intangible assets will be amortized over their estimated useful lives of fifteen years on a straight-line basis, commencing April 1, 2021. The estimated future amortization of intangible assets is as follows: Fiscal Year Amount 2021 (April 1, 2021 to December 31, 2021) $ 95,472 2022 127,296 2023 127,296 2024 127,296 2025 127,296 Thereafter 1,304,777 $ 1,909,433 |
Note 4 - Inventories
Note 4 - Inventories | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 4 — Inventories Inventories consist principally of raw materials and sub-assemblies, which are stated at the lower of cost (first-in, first-out) or market. Inventories at March 31, 2021 and December 31, 2020 were as follows: March 31, December 31, 2021 2020 Raw materials and sub-assemblies $ 4,087,028 $ 3,642,377 Finished goods 393,831 281,104 Inventory reserves (755,943 ) (727,639 ) Inventory, net $ 3,724,916 $ 3,195,842 |
Note 5 - Bank Financing Arrange
Note 5 - Bank Financing Arrangements | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Bank Financing Arrangements | NOTE 5 — Bank Financing Arrangements The Company initially entered into a Business Financing Agreement with Western Alliance Bank (the “Bank”), an Arizona corporation, on February 27, 2014, and this agreement has been amended and extended through the years. Seventh Financing Agreement On January 8, 2020, the Company entered into the Seventh Amended and Restated Business Financing Agreement with the Bank which extends the maturity date of the Company’s revolving line of credit to January 31, 2022. Eighth Financing Agreement On August 28, 2020, the Company entered into the Eighth Amended and Restated Business Financing Agreement with the Bank. The Bank consented to the issuance of subordinated debt in the amount less than $2,000,000, at the annual interest rate less than 10% and maturing no sooner than 3 years. Amended and Restated Business Financing Agreement On January 29, 2021, the Company entered into an Amended and Restated Business Financing Agreement (the “Financing Agreement”) with the Bank. The agreement increased the Domestic Line of Credit to $3.0 million, including a $2.0 million revolving facility and $1.0 million nonformula loan. The $1.0 million nonformula loan was enrolled in the CalCap Collateral Support Program and advanced on February 16, 2021. The Company will make a principal reduction payment of $125,000, plus all accrued but unpaid interest on the 30th day of each of April, July, October and January. The Financing Agreement also extended the maturity date of both the Domestic and EXIM Line of Credit to January 31, 2023. Amounts outstanding under the CalCap loan at March 31, 2021 are as follows: March 31, 2021 Long-term portion of CalCap loan $ 500,000 Current portion of CalCap loan 500,000 CalCap loan $ 1,000,000 During the three months ended March 31, 2020, total repayment of the term loan was $125,000. Total amount borrowed under the domestic and international lines was $3,980,000 and the total repayment was $3,452,957. Amounts outstanding under the term loan and bank credit facilities at March 31, 2020 are $208,333 and $1,939,492, respectively. Interest expense on the CalCap loan for three months ended March 31, 2021 was $4,306. Accrued interest payable related to the amounts outstanding under the CalCap loan at March 31, 2021 was $2,917. Interest expense on the term loan for the three months ended March 31, 2020 was $4,027. Interest expense on the amounts drawn under the Company’s bank credit lines during the three months ended March 31, 2020 was $15,601. Accrued interest payable related to the amounts outstanding under the term loan and bank credit facilities as of March 31, 2020 was $14,560. |
Note 6 - Secured Subordinated C
Note 6 - Secured Subordinated Convertible Notes Payable | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Secured Subordinated Convertible Notes Payable | NOTE 6 — Secured Subordinated Convertible Notes Payable On August 31, 2020, the Company completed a secured subordinated convertible note financing of $1,530,000, including $1,350,000 from officers, directors, and family members. Because the financing involved such parties related to the Company, a special committee of the Board comprising the Board’s disinterested directors approved the financing. The funds raised are used to increase the Company’s working capital balances. The notes have a three-year term that accrue interest at 10% per annum and mature on August 30, 2023. The interest on the notes is payable quarterly in cash. The holder of each note may require the Company to repay the principal amount of the note plus accrued interest at any time after August 31, 2021. The principal amount of each note is convertible at any time, at the option of the holder, into shares of the Company’s common stock at a conversion price of $1.46 per share, which was the market closing price of the common stock on Friday, August 28, 2020, the closing date of the financing. The notes did not contain a beneficial conversion feature because the conversion price is higher than the market closing price on the date of the notes payable. The notes are secured by the assets of the Company and are subordinated to amounts outstanding under the Company’s working capital bank line of credit with Western Alliance Bank. Total issuance costs associated with the financing is $96,515, and the costs are presented in the balance sheet as a direct deduction from the original notes payable balance of $1,530,000 as a contra-liability. The issuance costs are amortized over three years, the term of the notes payable, and the amortization expense is reported as interest expense. The amortization of debt discount for the quarter ended March 31, 2021 was $8,273. The remaining debt discount of $79,970 will be amortized through August 30, 2023. As of March 31, 2021, two noteholders elected to convert note principal of $130,000 into shares of Common Stock, $0.001 par value per shares, at the conversion price. Total interest expense recognized related to the convertible note for the quarter ended March 31, 2021 was $44,544. |
Note 7 - Segment Information an
Note 7 - Segment Information and Concentrations | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information and Concentrations | NOTE 7 — Segment Information and Concentrations Segment Information The Company operates in the mobile barcode scanning and RFID/NFC data capture market. Mobile scanning typically consists of mobile devices such as smartphones or tablets, with mobile scanning or NFC peripherals for data collection, and third-party vertical applications software. The Company distributes its products in the United States and foreign countries primarily through distributors and resellers. The Company markets its products primarily through application developers whose applications are designed to work with Company’s products. Revenues for the geographic areas for three months ended March 31, 2021 and 2020 were as follows: Three Months Ended March 31, Revenues: 2021 2020 United States $ 3,563,055 $ 3,143,409 Europe 777,580 615,529 Asia and rest of world 472,344 461,748 Total revenues $ 4,812,979 $ 4,220,686 Export revenues are attributable to countries based on the location of the Company’s customers. The Company does not hold long-lived assets in foreign locations. Major Customers Customers who accounted for at least 10% of the Company’s total revenues for the three months ended March 31, 2021 and 2020 were as follows: Three Months Ended March 31, 2021 2020 Ingram Micro, Inc. 25 % 36 % BlueStar, Inc. 29 % 17 % Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk include cash, cash equivalents and accounts receivable. The Company invests its cash in demand deposit accounts in banks and the Company has not experienced losses on the investments. The Company’s trade accounts receivables are primarily with distributors. The Company performs ongoing credit evaluations of its customers’ financial condition, but the Company generally requires no collateral. Reserves are maintained for potential credit losses, and such losses have been within management’s expectations. Customers who accounted for at least 10% of the Company’s accounts receivable balances at March 31, 2021 and December 31, 2020 were as follows: March 31, December 31, 2021 2020 Ingram Micro Inc. 30 % 34 % BlueStar, Inc. 30 % 29 % ScanSource, Inc. 12 % 13 % Bluestar Europe DistributionBV * 11 % *Customer accounted for less than 10% of the Companys accounts receivable balances Concentration of Suppliers Several of the Company’s component parts are produced by a sole or limited number of suppliers. Shortages could occur in these essential materials due to increased demand, or to an interruption of supply. Suppliers may choose to restrict credit terms or require advance payments causing delays in the procurement of essential materials. If the Company were unable to procure certain of such materials, it could have a material adverse effect upon its results. For the three months ended March 31, 2021 and 2020, the top two suppliers accounted for 37% and 60%, respectively, of the inventory purchases. At March 31, 2021 and December 31, 2020, 17% and 15%, respectively, of the Company’s accounts payable balances were concentrated with a single supplier. |
Note 8 - Stock-Based Compensati
Note 8 - Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | NOTE 8 — Stock-Based Compensation The Company recognizes the compensation cost in the financial statements for all stock-based awards to employees, including grants of stock options and restricted stocks, based on the fair value of the awards as of the date that the awards are issued. Compensation cost for stock-based awards is recognized on a straight-line basis over the vesting period. The fair values of stock options are generally determined using a binomial lattice valuation model which incorporates assumptions about expected volatility, risk-free interest rate, dividend yield, and expected life. There were no stock options granted for the three months ended March 31, 2021 and 2020. The restricted stocks are issued to employees and consultants and are held in escrow by the Company until the shares vest on the schedule of 15% after year one, 20% after year two, 25% after year three and 40% after year four, subject to the employees and consultants being a continuing service provider on each of the vesting dates. If the service or employment is terminated, unvested shares revert to the Company. Shares are registered at grant, so share owners may vote at the annual stockholder meeting. Restricted stocks are granted at zero cost basis. Compensation cost of the restricted stocks is recognized on a straight-line basis over the 4-year vesting period. For the three months ended March 31, 2021 and 2020, the Company awarded 285,950 and 287,000 shares of restricted stock, respectively. Due to the existence of restrictions on sale or transfer until the stocks vest, the Company does not count the restricted stocks as issued and outstanding shares until they vest. Total stock-based compensation expense for the three months ended March 31, 2021 and 2020, was $148,772 and $132,065, respectively. |
Note 9 - Net Income (Loss) Per
Note 9 - Net Income (Loss) Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Income Statement [Abstract] | |
Net Income (Loss) Per Share | NOTE 9 — Net Income (Loss) Per Share The following table sets forth the reconciliation of basic shares to diluted shares and the computation of basic and diluted net income (loss) per share: Three Months Ended March 31, 2021 2020 Numerator: Net income (loss) $ 202,902 $ (90,327 ) Net income (loss) allocated to restricted stock award 17,365 (1,547 ) Adjusted net income (loss) for basic earnings per share $ 185,537 $ (88,780 ) Denominator: Weighted average shares outstanding used in computing Basic 6,484,391 6,014,007 Effect of dilutive stock options 821,597 Diluted 7,305,988 6,014,007 Net income (loss) per share applicable to common stockholders: Basic $ 0.03 $ (0.01 ) Diluted $ 0.03 $ (0.01 ) In the three months ended March 31, 2021, 50,000 warrants and 1,007,081 conversion shares were excluded as their effect would be anti-dilutive. In the three months ended March 31, 2020, 2,536,925 stock options and restricted stock were excluded in the calculation of diluted net loss per share because their effect would be anti-dilutive. |
Note 10 - Commitments and Conti
Note 10 - Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 10 — Commitments and Contingencies Operating Lease Obligations The Company leases office space under a non-cancelable operating lease that provides the Company approximately 37,100 square feet in Newark, California. The lease agreement expires on June 30, 2022. Monthly base rent increases four percent per year annually on July 1 st The Company adopted ASU 2016-02, Leases (Topic 842) effective January 1, 2019 and restated its reported results in January 2018, including the recognition of additional operating lease right-of-use assets and liabilities using a discount rate of 6.25% per annum. The operating lease expense was allocated in cost of goods sold and operating costs based on department headcount and amounted to $107,765 and $103,208 for the first quarter of 2021 and 2020, respectively. On March 31, 2021, the balances of right-of-use assets and liabilities for the operating lease are approximately $0.51 million and $0.63 million, respectively, compared to approximately $0.61 million and $0.74 million, respectively, at December 31, 2020. Cash payments included in the measurement of our operating lease liabilities were $126,516 and $117,268 for the three months ended March 31, 2021 and 2020, respectively. Future minimum lease payments under the operating lease at March 31, 2021 are shown below: Annual minimum payments: Amount 2021 (April 1 to December 31, 2021) 389,305 2022 (through June 30, 2022) 262,789 Total minimum payments 652,094 Less: Present value factor (26,352 ) Total operating lease liabilities 625,742 Less: Current portion of operating lease (495,695 ) Long-term portion of operating lease $ 130,047 Finance Lease Obligations The new standard, ASU 2016-02 classifies lessee leases into two types, operating and finance. On March 31, 2021, the Company has no equipment under finance lease. On March 31, 2020, equipment with a cost of $100,584 was subject to financing arrangements. The accumulated depreciation of the assets associated with the finance leases as of March 31, 2020 amounted to $96,578. Purchase Commitments As of March 31, 2021, the Company has non-cancelable purchase commitments for inventory to be used in the ordinary course of business of approximately $8,689,000. Legal Matters The Company is subject to disputes, claims, requests for indemnification and lawsuits arising in the ordinary course of business. Under the indemnification provisions of the Company’s customer agreements, the Company routinely agrees to indemnify and defend its customers against infringement of any patent, trademark, copyright, trade secrets, or other intellectual property rights arising from customers’ legal use of the Company’s products or services. The exposure to the Company under these indemnification provisions is generally limited to the total amount paid for the indemnified products. However, certain indemnification provisions potentially expose the Company to losses in excess of the aggregate amount received from the customer. To date, there have been no claims against the Company by its customers pertaining to such indemnification provisions, and no amounts have been recorded. The Company is currently not a party to any material legal proceedings. |
Note 11 - Subsequent Events
Note 11 - Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 11 — Subsequent Events Between April 1, 2021 and May 10, 2021, 45,000 stock options and 8,125 restricted stocks have been granted from the 2004 Equity Incentive Plan. |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates, and such differences may be material to the financial statements. |
Cash Equivalents and Fair Value of Financial Instruments | Cash Equivalents and Fair Value of Financial Instruments The Company considers all highly liquid investments purchased with a maturity date of 90 days or less at date of purchase to be cash equivalents. At March 31, 2021 and December 31, 2020, all of the Company’s cash and cash equivalents consisted of amounts held in demand deposit accounts in banks. The aggregate cash balance on deposit in these accounts are insured by the Federal Deposit Insurance Corporation up to $250,000. The Company’s cash balance on deposit in these accounts may, at times, exceed the federally insured limits. The Company has never experienced any losses in such accounts. The carrying value of the Company’s cash and cash equivalents, accounts receivable, accounts payable, debt and foreign exchange contracts approximate fair value due to the relatively short period of time to maturity. |
Revenue Recognition and Deferred Revenue | Revenue Recognition and Deferred Revenue On January 1, 2017, the Company adopted ASC 606 “Revenue from Contracts with Customers” and implemented a new revenue recognition policy. Instead of deferring 100% of revenue and cost of revenue until products are sold by distributors, the new policy recognizes revenue on sales to distributors when shipping of product is completed and title transfers to the distributor, less a reserve for estimated product returns (sales and cost of sales). The reserves are based on estimates of future returns calculated from actual return history, primarily from stock rotations, plus knowledge of pending returns outside of the norm. At March 31, 2021, the deferred revenue and deferred cost on shipments to distributors were $524,872 and $178,834, respectively, compared to $450,591 and $170,016, respectively, at December 31, 2020. The Company also earns revenue from its SocketCare services program which provides for extended warranty and accidental breakage coverage for selected products. For the quarters ended March 31, 2021 and 2020, the SocketCare revenue was approxiamtely $7,400 and $9,900, respectively. Service purchased at the time of product purchase provides for coverage in three-year and five-year terms. The Company additionally offers comprehensive coverage and program term extensions. Revenues from the SocketCare services program are recognized ratably over the life of the extended warranty contract. The amount of unrecognized SocketCare service revenue is classified as deferred service revenue and presented on the Company’s balance sheet in its short- and long-term components. At March 31, 2021, the balance of unrecognized SocketCare service revenue was approximately $47,000. |
Cost of Sales and Gross Margins | Cost of Sales and Gross Margins Cost of sales primarily consists of the costs to manufacture our products, including the costs of materials, contract manufacturing, shipping costs, personnel and related expenses including stock-based compensation, equipment and facility expenses, warranty costs and inventory excess and obsolete provisions. The factors that impact our gross margins are the cost of materials, the mix of products and the extent to which we are able to efficiently utilize our manufacturing capacity. |
Leases | Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires a lessee to recognize a liability representing future lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. For operating leases, a lessee is required to recognize at inception a right-of-use asset and a lease liability equal to the net present value of the lease payments, with lease expense recognized over the lease term on a straight-line basis. For leases with a term of twelve months or less, ASU 2016-02 allows a reporting entity to make an accounting policy election to not recognize a right-of-use asset and a lease liability, and to recognize lease expense on a straight-line basis. The Company adopted ASU 2016-02 effective January 1, 2019. At March 31, 2021, the balances of right-of-use assets and liabilities for the operating lease are approximately $0.51 million and $0.62 million, respectively, compared to approximately $0.60 million and $0.74 million, respectively, at December 31, 2020. |
Goodwill | Goodwill In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU) 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The amendments in this update eliminate Step 2 from the goodwill impairment test. The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The Company tests its goodwill for impairment annually as of September 30th or more frequently when events or circumstances indicate that the carrying value of the Company’s single reporting unit more likely than not exceeds its fair value. |
Recently Issued Financial Accounting Standards | Recently Issued Financial Accounting Standards From time to time, new accounting pronouncements are issued by the FASB or other standards setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, management believes that the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s financial position, results of operations or cash flows upon adoption. |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Acquisitions | |
Future amortization of intangible asset | The SpringCard intangible assets will be amortized over their estimated useful lives of fifteen years on a straight-line basis, commencing April 1, 2021. The estimated future amortization of intangible assets is as follows: Fiscal Year Amount 2021 (April 1, 2021 to December 31, 2021) $ 95,472 2022 127,296 2023 127,296 2024 127,296 2025 127,296 Thereafter 1,304,777 $ 1,909,433 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory components | Inventories consist principally of raw materials and sub-assemblies, which are stated at the lower of cost (first-in, first-out) or market. Inventories at March 31, 2021 and December 31, 2020 were as follows: March 31, December 31, 2021 2020 Raw materials and sub-assemblies $ 4,087,028 $ 3,642,377 Finished goods 393,831 281,104 Inventory reserves (755,943 ) (727,639 ) Inventory, net $ 3,724,916 $ 3,195,842 |
Segment Information and Concent
Segment Information and Concentrations (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Revenue by geographic areas | Revenues for the geographic areas for three months ended March 31, 2021 and 2020 were as follows: Three Months Ended March 31, Revenues: 2021 2020 United States $ 3,563,055 $ 3,143,409 Europe 777,580 615,529 Asia and rest of world 472,344 461,748 Total revenues $ 4,812,979 $ 4,220,686 |
Major customers accounted for at least 10% of total revenues | Customers who accounted for at least 10% of the Company’s total revenues for the three months ended March 31, 2021 and 2020 were as follows: Three Months Ended March 31, 2021 2020 Ingram Micro, Inc. 25 % 36 % BlueStar, Inc. 29 % 17 % |
Major customers accounted for at least 10% of net accounts receivable balances | Customers who accounted for at least 10% of the Company’s accounts receivable balances at March 31, 2021 and December 31, 2020 were as follows: March 31, December 31, 2021 2020 Ingram Micro Inc. 30 % 34 % BlueStar, Inc. 30 % 29 % ScanSource, Inc. 12 % 13 % Bluestar Europe DistributionBV * 11 % *Customer accounted for less than 10% of the Companys accounts receivable balances |
Net Income (Loss) Per Share App
Net Income (Loss) Per Share Applicable to Common Stockholders (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Net income (loss) per share: | |
Net Income (Loss) Per Share | The following table sets forth the reconciliation of basic shares to diluted shares and the computation of basic and diluted net income (loss) per share: Three Months Ended March 31, 2021 2020 Numerator: Net income (loss) $ 202,902 $ (90,327 ) Net income (loss) allocated to restricted stock award 17,365 (1,547 ) Adjusted net income (loss) for basic earnings per share $ 185,537 $ (88,780 ) Denominator: Weighted average shares outstanding used in computing Basic 6,484,391 6,014,007 Effect of dilutive stock options 821,597 Diluted 7,305,988 6,014,007 Net income (loss) per share applicable to common stockholders: Basic $ 0.03 $ (0.01 ) Diluted $ 0.03 $ (0.01 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future minimum payments for operating leases | Future minimum lease payments under the operating lease at March 31, 2021 are shown below: Annual minimum payments: Amount 2021 (April 1 to December 31, 2021) 389,305 2022 (through June 30, 2022) 262,789 Total minimum payments 652,094 Less: Present value factor (26,352 ) Total operating lease liabilities 625,742 Less: Current portion of operating lease (495,695 ) Long-term portion of operating lease $ 130,047 |
Inventory Components (Details)
Inventory Components (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Notes to Financial Statements | ||
Raw materials and sub-assemblies | $ 4,087,028 | $ 3,642,377 |
Finished goods | 393,831 | 281,104 |
Inventory reserves | (755,943) | (727,639) |
Inventories, net | $ 3,724,916 | $ 3,195,842 |
Amortization of Intangible Asse
Amortization of Intangible Assets (Details) | Mar. 31, 2021USD ($) |
Notes to Financial Statements | |
2021 (April 1, 2021 to December 31, 2021) | $ 95,472 |
2022 | 127,296 |
2023 | 127,296 |
2024 | 127,296 |
2025 | 127,296 |
Thereafter | 1,304,777 |
Total | $ 1,909,433 |
Bank Financing Arrangements (De
Bank Financing Arrangements (Details Narrative) | Jan. 29, 2021USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) |
Amount outstanding | $ 1,939,492 | ||
Amount borrowed | 3,980,000 | ||
Amount repaid | 3,452,957 | ||
Interest expense | 15,601 | ||
Accrued interest payable | 14,560 | ||
Domestic Line of Credit | |||
Aggregate maximum advance amount | $ 3,000,000 | ||
Borrowing capacity description | 80% of qualified receivables | ||
Debt reference rate | U.S. Prime Rate | ||
Basis point added to reference rate of debt | 0.0075 | ||
Line of credit expiration date | Jan. 31, 2023 | ||
Amount outstanding | $ 1,000,000 | ||
Interest expense | 4,306 | ||
Accrued interest payable | $ 2,917 | ||
Foreign Line of Credit | |||
Aggregate maximum advance amount | $ 500,000 | ||
Borrowing capacity description | 80% of qualified receivables | ||
Debt reference rate | U.S. Prime Rate | ||
Basis point added to reference rate of debt | 0.0075 | ||
Line of credit expiration date | Jan. 31, 2023 | ||
Term Loan | |||
Amount outstanding | 208,333 | ||
Amount repaid | 125,000 | ||
Interest expense | $ 4,027 |
Amounts Outstanding under CalCa
Amounts Outstanding under CalCap Loan (Detail) | Mar. 31, 2021USD ($) |
Notes to Financial Statements | |
Long-term portion of CalCap loan | $ 500,000 |
Current-portion of CalCap loan | 500,000 |
CalCap loan balance | $ 1,000,000 |
Secured Subordinated Convertibl
Secured Subordinated Convertible Notes Payable (Details Narrative) | Aug. 31, 2020USD ($)$ / shares | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) |
Related Party Convertible Notes Payable Details Narrative | ||||
Convertible notes issued | $ 1,530,000 | |||
Convertible notes issued – related party | $ 1,350,000 | |||
Subordinated convertible notes payable, net of discount-related party | $ 1,179,437 | $ 1,272,138 | ||
Subordinated convertible notes payable, net of discount | 140,593 | $ 169,619 | ||
Conversion price convertible at any time | $ / shares | $ 1.46 | |||
Annual interest rate on short term convertible notes payable, compounded quarterly | 0.10 | |||
Secured subordinated convertible notes payable maturity date | Aug. 30, 2023 | |||
Convertible note issuance costs | 96,515 | |||
Amortization of debt discount | 8,273 | |||
Note principal converted | 130,000 | |||
Remaining debt discount | $ 79,970 |
Revenues By Geographic Areas (D
Revenues By Geographic Areas (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues | $ 4,812,979 | $ 4,220,686 |
United States | ||
Revenues | 3,563,055 | 3,143,409 |
Europe | ||
Revenues | 777,580 | 615,529 |
Asia Pacific | ||
Revenues | $ 472,344 | $ 461,748 |
Major customers accounted for a
Major customers accounted for at least 10% of total revenues (Details) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Ingram Micro Inc. | ||
Percent of total revenues | 0.25 | 0.36 |
Threshold percentage for disclosure | 0.10 | 0.10 |
BlueStar, Inc. | ||
Percent of total revenues | 0.29 | 0.17 |
Threshold percentage for disclosure | 0.10 | 0.10 |
Major Customers as a Percentage
Major Customers as a Percentage of Net Accounts Receivable Balances (Details) | Mar. 31, 2021 | Dec. 31, 2020 |
Ingram Micro Inc. | ||
Percent of net accounts receivable balances | 0.30 | 0.34 |
Threshold percentage for disclosure | 0.10 | 0.10 |
BlueStar, Inc. | ||
Percent of net accounts receivable balances | 0.30 | 0.29 |
Threshold percentage for disclosure | 0.10 | 0.10 |
ScanSource, Inc. | ||
Percent of net accounts receivable balances | 0.12 | 0.13 |
Threshold percentage for disclosure | 0.10 | 0.10 |
BlueStar Europe DistributionBV | ||
Percent of net accounts receivable balances | 0.11 | |
Threshold percentage for disclosure | 0.10 | 0.10 |
Concentration of Suppliers (Det
Concentration of Suppliers (Details Narrative) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |||
Accounts payable balances with a single supplier | 0.17 | 0.15 | |
Percentage of inventory purchases from top two suppliers | 0.37 | 0.60 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Notes to Financial Statements | ||
Stock-based compensation expenses | $ 148,772 | $ 132,065 |
Restricted stock granted | 285,950 | 287,000 |
Net Income (Loss) per Share (De
Net Income (Loss) per Share (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Numerator: | ||
Net income (loss) | $ 202,902 | $ (90,327) |
Net income (loss) allocated to restricted stock award | 17,365 | (1,547) |
Adjusted net income (loss) for basic earnings per share | $ 185,537 | $ (88,780) |
Denominator: Weighted average shares outstanding used in computing net income (loss) per share: | ||
Basic | 6,484,391 | 6,014,007 |
Effect of dilutive stock options | 821,597 | |
Diluted | 7,305,988 | 6,014,007 |
Net income (loss) per share applicable to common stockholders: | ||
Basic | $ 0.03 | $ (0.01) |
Diluted | $ 0.03 | $ (0.01) |
Securities Excluded from Calcul
Securities Excluded from Calculation of Diluted Net Loss Per Share (Details Narrative) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Warrants | ||
Antidilutive Securities Excluded from Calculation of Diluted Net Income (Loss) Per Share | 50,000 | |
Stock Options and Restricted Stocks | ||
Antidilutive Securities Excluded from Calculation of Diluted Net Income (Loss) Per Share | 1,007,081 | 2,536,925 |
Commitments and Contingencies_2
Commitments and Contingencies (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Notes to Financial Statements | |||
Rental expense for operating lease | $ 107,765 | $ 103,208 | |
Operating lease cash payments | 126,516 | 117,268 | |
Non-cancelable purchase commitments for inventory | 8,689,000 | ||
Original cost of equipment under finance leases | 100,584 | ||
Finance lease accumulated depreciation | $ 96,578 | ||
Operating lease right-of-use asset | 512,472 | $ 609,331 | |
Operating lease right-of-use liabilities | $ 625,742 | $ 741,351 |
Future Minimum Payments For Ope
Future Minimum Payments For Operating Leases (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Annual minimum payments: | ||
2021 (April 1, 2021 to December 31, 2021) | $ 389,305 | |
2022 (through June 30, 2022) | 262,789 | |
Total minimum payments | 652,094 | |
Less: Present value factor | (26,352) | |
Total operating lease liabilities | 625,742 | $ 741,351 |
Less: Current portion of operating lease | 495,695 | 483,254 |
Long term portion of operating lease | $ 130,047 | $ 258,097 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent events | Between April 1, 2021 and May 10, 2021, 45,000 stock options and 8,125 restricted stocks have been granted from the 2004 Equity Incentive Plan. |