Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 10, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Period Focus | Q2 | |
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 Tax Identification Number | 94-3155066 | |
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, Postal Zip Code | 94560 | |
City Area Code | (510) | |
Local Phone Number | 933-3000 | |
Title of 12(b) Security | Common stock, $0.001 Par Value per Share | |
Trading Symbol | SCKT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 7,174,213 |
Condensed Statements of Operati
Condensed Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenues | $ 5,952,890 | $ 2,715,024 | $ 10,765,869 | $ 6,935,710 |
Cost of revenues | 2,697,747 | 1,353,498 | 4,936,683 | 3,350,469 |
Gross profit | 3,255,143 | 1,361,526 | 5,829,186 | 3,585,241 |
Operating expenses: | ||||
Research and development | 972,292 | 859,510 | 1,903,326 | 1,740,148 |
Sales and marketing | 734,026 | 722,160 | 1,394,488 | 1,489,956 |
General and administrative | 734,490 | 589,730 | 1,475,027 | 1,255,846 |
Total operating expenses | 2,440,808 | 2,171,400 | 4,772,841 | 4,485,950 |
Operating income (loss) | 814,335 | (809,874) | 1,056,345 | (900,709) |
Interest expense, net | (51,428) | (8,149) | (100,129) | (27,641) |
Other income | 50,000 | 10,082 | 70,000 | |
Net income (loss) before income taxes | 762,907 | (768,023) | 966,298 | (858,350) |
Current income tax expense | (5,800) | (6,289) | ||
Deferred income tax benefit | 1,870,000 | 1,870,000 | ||
Net income (loss) | $ 2,627,107 | $ (768,023) | $ 2,830,009 | $ (858,350) |
Net income (loss) per share: | ||||
Basic | $ 0.34 | $ (0.13) | $ 0.38 | $ (0.14) |
Diluted | $ 0.27 | $ (0.13) | $ 0.31 | $ (0.14) |
Weighted average shares outstanding: | ||||
Basic | 7,128,768 | 6,009,383 | 6,808,339 | 6,011,695 |
Diluted | 8,907,352 | 6,009,383 | 8,593,630 | 6,011,695 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 4,919,968 | $ 2,121,763 |
Accounts receivable, net | 2,468,281 | 2,112,514 |
Inventories, net | 4,019,510 | 3,195,842 |
Prepaid expenses and other current assets | 775,392 | 335,386 |
Deferred cost on shipments to distributors | 179,267 | 170,016 |
Total current assets | 12,362,418 | 7,935,521 |
Property and equipment: | ||
Machinery and office equipment | 2,395,518 | 2,286,268 |
Computer equipment | 1,597,771 | 1,412,030 |
Property and equipment, gross | 3,993,289 | 3,698,298 |
Accumulated depreciation | (3,138,075) | (2,850,635) |
Property and equipment, net | 855,214 | 847,663 |
Intangible assets, net | 1,877,609 | |
Other long-term assets | 135,076 | 159,039 |
Deferred tax assets | 7,376,934 | 5,506,934 |
Operating lease right-of-use asset | 413,810 | 609,331 |
Total assets | 23,021,061 | 15,058,488 |
Current liabilities: | ||
Accounts payable and accrued expenses | 1,722,750 | 1,372,701 |
Accrued payroll and related expenses | 648,352 | 375,511 |
Deferred revenue on shipments to distributors | 529,973 | 450,591 |
Short term portion of deferred service revenue | 20,344 | 25,522 |
Note Payable – current portion | 500,000 | |
Subordinated convertible notes payable, net of discount | 141,566 | 169,619 |
Subordinated convertible notes payable, net of discount-related party | 1,186,737 | 1,272,138 |
Operating lease – current portion | 508,328 | 483,254 |
Total current liabilities | 5,258,050 | 4,149,336 |
Long-term portion of deferred service revenue | 20,450 | 28,794 |
Long-term portion of note payable | 375,000 | |
Long-term portion of operating lease | 258,097 | |
Total liabilities | 5,653,500 | 4,436,227 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value: Authorized – 20,000,000 shares, Issued and outstanding – 7,139,084 shares at June 30, 2021 and 6,102,630 shares at December 31, 2020 | 7,139 | 6,103 |
Additional paid-in capital | 65,647,777 | 61,733,522 |
Accumulated deficit | (48,287,355) | (51,117,364) |
Total stockholders’ equity | 17,367,561 | 10,622,261 |
Total liabilities and stockholders’ equity | $ 23,021,061 | $ 15,058,488 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 7,139,084 | 6,102,630 |
Common stock, shares outstanding | 7,139,084 | 6,102,630 |
Condensed Statements of Stockho
Condensed Statements of Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2019 | $ 6,018 | $ 61,066,971 | $ (47,838,763) | $ 13,234,226 |
Common Stock, Shares, Outstanding, Beginning Balance at Dec. 31, 2019 | 6,017,674 | |||
Cancellation of restricted stock | $ (3) | 3 | ||
Cancellation of restricted stock, in shares | (3,200) | |||
Stock-based compensation | 132,065 | 132,065 | ||
Net income (loss) | (90,327) | (90,327) | ||
Common Stock, Shares, Outstanding, Ending Balance at Mar. 31, 2020 | 6,009,507 | |||
Repurchase and retirement of common stock | $ (5) | (8,491) | (8,496) | |
Ending balance, value at Mar. 31, 2020 | $ 6,010 | 61,190,548 | (47,929,090) | 13,267,468 |
Repurchase and retirement of common stock, in shares | (4,967) | |||
Beginning balance, value at Dec. 31, 2019 | $ 6,018 | 61,066,971 | (47,838,763) | 13,234,226 |
Common Stock, Shares, Outstanding, Beginning Balance at Dec. 31, 2019 | 6,017,674 | |||
Conversion of convertible note | ||||
Stock-based compensation | 263,434 | |||
Net income (loss) | (858,350) | |||
Common Stock, Shares, Outstanding, Ending Balance at Jun. 30, 2020 | 6,009,109 | |||
Repurchase and retirement of common stock | (8,025) | |||
Ending balance, value at Jun. 30, 2020 | $ 6,009 | 61,322,389 | (48,697,113) | 12,631,285 |
Beginning balance, value at Mar. 31, 2020 | $ 6,010 | 61,190,548 | (47,929,090) | 13,267,468 |
Common Stock, Shares, Outstanding, Beginning Balance at Mar. 31, 2020 | 6,009,507 | |||
Cancellation of restricted stock | $ (1) | 472 | 471 | |
Cancellation of restricted stock, in shares | (398) | |||
Stock-based compensation | 131,369 | 131,369 | ||
Net income (loss) | (768,023) | (768,023) | ||
Common Stock, Shares, Outstanding, Ending Balance at Jun. 30, 2020 | 6,009,109 | |||
Ending balance, value at Jun. 30, 2020 | $ 6,009 | 61,322,389 | (48,697,113) | 12,631,285 |
Beginning balance, value at Dec. 31, 2020 | $ 6,103 | 61,733,522 | (51,117,364) | $ 10,622,261 |
Common Stock, Shares, Outstanding, Beginning Balance at Dec. 31, 2020 | 6,102,630 | 6,102,630 | ||
Vesting of restricted stock | $ 39 | (39) | ||
Vesting of restricted stock | 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 intrangible 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 | ||
Common Stock, Shares, Outstanding, Ending Balance at Mar. 31, 2021 | 7,125,371 | |||
Ending balance, value at Mar. 31, 2021 | $ 7,125 | 65,410,070 | (50,914,462) | 14,502,733 |
Beginning balance, value at Dec. 31, 2020 | $ 6,103 | 61,733,522 | (51,117,364) | $ 10,622,261 |
Common Stock, Shares, Outstanding, Beginning Balance at Dec. 31, 2020 | 6,102,630 | 6,102,630 | ||
Conversion of convertible note | $ 130,000 | |||
Stock-based compensation | 320,780 | |||
Net income (loss) | $ 2,830,009 | |||
Common Stock, Shares, Outstanding, Ending Balance at Jun. 30, 2021 | 7,139,084 | |||
Repurchase and retirement of common stock | $ (1,176) | |||
Ending balance, value at Jun. 30, 2021 | $ 7,139 | 65,647,777 | (48,287,355) | 17,367,561 |
Beginning balance, value at Mar. 31, 2021 | $ 7,125 | $ 65,410,070 | $ (50,914,462) | $ 14,502,733 |
Common Stock, Shares, Outstanding, Beginning Balance at Mar. 31, 2021 | 7,125,371 | |||
Vesting of restricted stock | 1 | (1) | ||
Cancellation of restricted stock | $ (3) | $ 3 | ||
Cancellation of restricted stock, in shares | (3,250) | |||
Exercise of stock options | $ 16 | 66,873 | 66,889 | |
Exercise of stock options, in shares | 16,063 | |||
Stock-based compensation | 172,008 | 172,008 | ||
Net income (loss) | 2,627,107 | $ 2,627,107 | ||
Common Stock, Shares, Outstanding, Ending Balance at Jun. 30, 2021 | 7,139,084 | |||
Vesting of restricted stock, in shares | 900 | |||
Repurchase and retirement of common stock | (1,176) | $ (1,176) | ||
Ending balance, value at Jun. 30, 2021 | $ 7,139 | $ 65,647,777 | $ (48,287,355) | $ 17,367,561 |
Condensed Statement of Cash Flo
Condensed Statement of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Operating activities | ||
Net income (loss) | $ 2,830,009 | $ (858,350) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Stock-based compensation | 320,780 | 263,434 |
Depreciation and amortization | 352,849 | 290,498 |
Amortization of debt discount | 16,546 | |
Deferred tax benefits | (1,870,000) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (355,767) | 1,066,894 |
Inventories | (823,668) | (74,801) |
Prepaid expenses and other current assets | (440,006) | 56,788 |
Accounts payable and accrued expenses | 127,756 | (253,163) |
Accrued payroll and related expenses | 272,841 | (108,172) |
Net deferred revenue on shipments to distributors | 70,131 | (98,493) |
Deferred service revenue | (13,522) | (12,143) |
Net change in operating lease | (37,502) | (28,121) |
Net cash provided by (used in) operating activities | 450,447 | 244,371 |
Investing activities | ||
Purchases of equipment | (304,613) | (256,183) |
Net cash used in investing activities | (304,613) | (256,183) |
Financing activities | ||
Payments on finance leases | (8,291) | |
Repurchase and retirement of common stock | (1,176) | (8,025) |
Proceeds from borrowings under bank line of credit agreement | 4,630,000 | |
Repayments of borrowings under bank line of credit agreement | (5,592,449) | |
Proceeds from note payable | 1,000,000 | 1,208,700 |
Repayments of note payable | (125,000) | (250,000) |
Stock options exercised | 1,778,547 | |
Net cash provided by (used in) financing activities | 2,652,371 | (20,065) |
Net increase (decrease) in cash and cash equivalents | 2,798,205 | (31,877) |
Cash and cash equivalents at beginning of period | 2,121,763 | 958,860 |
Cash and cash equivalents at end of period | 4,919,968 | 926,983 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | 90,933 | 30,640 |
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 | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
NOTE 1 — 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 business, 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 global economy and the administration and effectiveness of vaccines. Those primary drivers are beyond our knowledge and control, and as a result, it is difficult to predict the cumulative impact that the pandemic will have on our future sales, operating results, cash flows and financial condition. Furthermore, the impact to our business, 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. |
NOTE 2 _ Summary of Significant
NOTE 2 — Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
NOTE 2 — 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 June 30, 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 With the adoption of ASC 606 “Revenue from Contracts with Customers” in January 2017, the Company recognizes revenue on sales to distributors when shipping of product is completed and title transfers to 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 June 30, 2021, the deferred revenue and deferred cost on shipments to distributors were $ 529,973 179,267 450,591 170,016 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 June 30, 2021 and 2020, SocketCare revenue was approximately $ 6,700 8,600 40,800 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 June 30, 2021, the balances of right-of-use assets and liabilities for the operating lease were$ 413,810 508,328 609,331 741,351 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 Recently Issued Financial Accounting Standards From time to time, new accounting pronouncements are issued by the FASB or other standards setting bodies and 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 _ Acquisition of Intangi
NOTE 3 — Acquisition of Intangible Assets | 6 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
NOTE 3 — Acquisition of Intangible Assets | NOTE 3 — Acquisition of Intangible Assets On February 26, 2021 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 50,000 10.85 March 29, 2021 7.65 192,293 The Unaudited Condensed Balance Sheets include the intangible assets of the acquired technology at the initial value of $ 1,877,609 The SpringCard intangible assets will be amortized over their estimated useful lives of fifteen years on a straight-line basis, which commenced on April 1, 2021. The estimated future amortization of intangible assets is as follows: Fiscal Year Amount 2021 (July 1, 2021 to December 31, 2021) $ 63,648 2022 127,296 2023 127,296 2024 127,296 2025 127,296 Thereafter 1,304,777 Total $ 1,877,609 |
NOTE 4 _ Inventories
NOTE 4 — Inventories | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
NOTE 4 — 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 June 30, 2021 and December 31, 2020 were as follows: June 30, December 31, 2021 2020 Raw materials and sub-assemblies $ 4,429,107 $ 3,642,377 Finished goods 396,346 281,104 Inventory reserves 805,943 727,639 Inventory, net $ 4,019,510 $ 3,195,842 |
NOTE 5 _ Bank Financing Arrange
NOTE 5 — Bank Financing Arrangements | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
NOTE 5 — 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 3,000,000 , including a $ 2,000,000 1,000,000 nonformula loan. The $1,000,000 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 June 30, 2021 are as follows: June 30, 2021 Current portion of CalCap loan $ 500,000 Long-term portion of CalCap loan 375,000 CalCap loan $ 875,000 During the six months ended June 30, 2020, total repayment of the term loan, initiated in March 2018, was $ 250,000 4,630,000 5,592.449 Interest expense on the CalCap loan for the three and six months ended June 30, 2021 was $ 11,580 17,552 2,431 1,896 5,922 3,783 19,384 |
NOTE 6 _ Secured Subordinated C
NOTE 6 — Secured Subordinated Convertible Notes Payable | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
NOTE 6 — 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 1,350,000 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 August 30, 2023 1.46 Total issuance costs associated with the financing are $ 96,515 16,546 71,697 During the six months ended June 30, 2021, two noteholders elected to convert note principal of $ 130,000 Total interest expense recognized related to the convertible notes for the three and six months ended June 30, 2021 was $ 43,177 87,721 |
NOTE 7 _ Segment Information an
NOTE 7 — Segment Information and Concentrations | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
NOTE 7 — 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 the Company’s products. Revenues by geographic areas for the three and six months ended June 30, 2021 and 2020 were as follows: Three Months Ended Six Months Ended 2021 2020 2021 2020 Revenues: Americas $ 4,753,436 $ 2,242,225 $ 8,316,490 $ 5,385,634 Europe 875,945 200,012 1,653,526 815,541 Asia Pacific 323,509 272,787 795,853 734,535 Total revenues $ 5,952,890 $ 2,715,024 $ 10,765,869 $ 6,935,710 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 and six months ended June 30, 2021 and 2020 were as follows: Three Months Ended Six Months Ended 2021 2020 2021 2020 Ingram Micro Inc. 27 % 29 % 26 % 33 % BlueStar, Inc. 32 % 25 % 31 % 20 % ScanSource, Inc. 12 % 14 % 10 % 10 % 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 June 30, 2021 and December 31, 2020 were as follows: June 30, December 31, 2021 2020 BlueStar, Inc. 33 % 29 % Ingram Micro Inc. 26 % 34 % ScanSource, Inc. 26 % 13 % Bluestar Europe Distribution BV — * 11 % * Customer accounted for less than 10% of the Company 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 due to an interruption of supply. Suppliers may choose to restrict credit terms or require advance payments causing delays in the procurement of essential materials. The Company’s inability to procure certain materials could have a material adverse effect on the Company’s results. For the three months ended June 30, 2021 and 2020, the top two suppliers accounted for 46 54 19 15 |
NOTE 8 _ Stock-Based Compensati
NOTE 8 — Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
NOTE 8 — 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 stock, 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 182,000 37,000 The shares of restricted stock 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. Shares of restricted stock are granted at zero cost basis. Compensation cost of the restricted stock is recognized on a straight-line basis over the 4-year vesting period. For the six months ended June 30, 2021 and 2020, the Company awarded 302,425 293,000 742,131 Total stock-based compensation expense for the three and six months ended June 30, 2021 was $ 172,008 320,780 131,369 263,434 |
NOTE 9 _ Net Income (Loss) Per
NOTE 9 — Net Income (Loss) Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
NOTE 9 — 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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Numerator: Net income (loss) $ 2,627,107 $ (768,023 ) $ 2,830,009 $ (858,350 ) Net income (loss) allocated to restricted stock award 226,630 (45,890 ) 243,205 (40,262 ) Adjusted net income (loss) for basic earnings per share $ 2,400,477 $ (722,133 ) $ 2,586,804 $ (818,088 ) Convertible note interest 43,177 — 88,755 — Adjusted net income (loss) for diluted earnings per share $ 2,443,654 $ (722,133 ) $ 2,675,559 $ (818,088 ) Denominator:: Weighted average shares outstanding used in computing net income (loss) per share: Basic 7,128,768 6,009,383 6,808,339 6,011,695 Effect of dilutive stock options 819,680 — 826,387 — Effect of convertible note weighted shares 958,904 — 958,904 — Diluted 8,907,352 6,009,383 8,593,630 6,011,695 Net income (loss) per share applicable to common stockholders: Basic $ 0.34 $ (0.13 ) $ 0.38 $ (0.14 ) Diluted $ 0.27 $ (0.13 ) $ 0.31 $ (0.14 ) In the three and six months ended June 30, 2021, 45,000 50,000 In the three and six months ended June 30, 2020, 2,259,937 394,506 |
NOTE 10 _ Income Taxes
NOTE 10 — Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
NOTE 10 — Income Taxes | NOTE 10 — Income Taxes In the first half of 2021, the differences between the financial income and taxable income included a tax deduction of $ 7.97 320,780 6.69 The Company recorded no deferred tax benefit for the losses in the six months ended June 30, 2020. |
NOTE 11 _ Commitments and Conti
NOTE 11 — Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
NOTE 11 — Commitments and Contingencies | NOTE 11 — 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 In January 2019, the Company adopted ASU 2016-02, Leases (Topic 842) and recognized a right-to-use asset and a lease liability using a discount rate of 6.25% per annum. On June 30, 2021, the balances of right-of-use assets and liabilities for the operating lease were approximately 413,810 508,328 609,331 741,351 The Newark office space lease expense was $ 107,218 214,437 Cash payments included in the measurement of the Company’s operating lease liabilities were $ 126,516 253,032 117,268 234,537 Future minimum lease payments under the operating lease at June 30, 2021 are shown below: Annual minimum payments: Amount 2021 (July 1 to December 31, 2021) 262,789 2022 (through June 30, 2022) 262,789 Total minimum payments 525,578 Less: Present value factor (17,250 ) Total operating lease liabilities 508,328 Less: Current portion of operating lease (508,328 ) Long-term portion of operating lease — Purchase Commitments As of June 30, 2021, the Company has non-cancelable purchase commitments for inventory to be used in the ordinary course of business of approximately $ 10,858,000 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 12 _ Subsequent Events
NOTE 12 — Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
NOTE 12 — Subsequent Events | NOTE 12 — Subsequent Events The Company evaluated subsequent events and transactions that occurred between July 1, 2021 through the date of this report, the date that the unaudited condensed financial statements were issued. Other than described below, the Company did not identify any subsequent events that would have required adjustment or disclosure in the unaudited condensed financial statements. 4,000 The Company issued 35,129 |
NOTE 2 _ Summary of Significa_2
NOTE 2 — Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 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 June 30, 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 With the adoption of ASC 606 “Revenue from Contracts with Customers” in January 2017, the Company recognizes revenue on sales to distributors when shipping of product is completed and title transfers to 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 June 30, 2021, the deferred revenue and deferred cost on shipments to distributors were $ 529,973 179,267 450,591 170,016 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 June 30, 2021 and 2020, SocketCare revenue was approximately $ 6,700 8,600 40,800 |
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 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 June 30, 2021, the balances of right-of-use assets and liabilities for the operating lease were$ 413,810 508,328 609,331 741,351 |
Goodwill | 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 |
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 and 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 _ Acquisition of Intan_2
NOTE 3 — Acquisition of Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Amortization | Fiscal Year Amount 2021 (July 1, 2021 to December 31, 2021) $ 63,648 2022 127,296 2023 127,296 2024 127,296 2025 127,296 Thereafter 1,304,777 Total $ 1,877,609 |
NOTE 4 _ Inventories (Tables)
NOTE 4 — Inventories (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | June 30, December 31, 2021 2020 Raw materials and sub-assemblies $ 4,429,107 $ 3,642,377 Finished goods 396,346 281,104 Inventory reserves 805,943 727,639 Inventory, net $ 4,019,510 $ 3,195,842 |
NOTE 5 _ Bank Financing Arran_2
NOTE 5 — Bank Financing Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
CalCap loan balance | June 30, 2021 Current portion of CalCap loan $ 500,000 Long-term portion of CalCap loan 375,000 CalCap loan $ 875,000 |
NOTE 7 _ Segment Information _2
NOTE 7 — Segment Information and Concentrations (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Revenue by Geographic | Three Months Ended Six Months Ended 2021 2020 2021 2020 Revenues: Americas $ 4,753,436 $ 2,242,225 $ 8,316,490 $ 5,385,634 Europe 875,945 200,012 1,653,526 815,541 Asia Pacific 323,509 272,787 795,853 734,535 Total revenues $ 5,952,890 $ 2,715,024 $ 10,765,869 $ 6,935,710 |
Major customers accounted for at least 10% of total revenues | Three Months Ended Six Months Ended 2021 2020 2021 2020 Ingram Micro Inc. 27 % 29 % 26 % 33 % BlueStar, Inc. 32 % 25 % 31 % 20 % ScanSource, Inc. 12 % 14 % 10 % 10 % |
Concentration of Credit Risk | June 30, December 31, 2021 2020 BlueStar, Inc. 33 % 29 % Ingram Micro Inc. 26 % 34 % ScanSource, Inc. 26 % 13 % Bluestar Europe Distribution BV — * 11 % * Customer accounted for less than 10% of the Company accounts receivable balances |
NOTE 9 _ Net Income (Loss) Pe_2
NOTE 9 — Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Net Income (Loss) Per Share | Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Numerator: Net income (loss) $ 2,627,107 $ (768,023 ) $ 2,830,009 $ (858,350 ) Net income (loss) allocated to restricted stock award 226,630 (45,890 ) 243,205 (40,262 ) Adjusted net income (loss) for basic earnings per share $ 2,400,477 $ (722,133 ) $ 2,586,804 $ (818,088 ) Convertible note interest 43,177 — 88,755 — Adjusted net income (loss) for diluted earnings per share $ 2,443,654 $ (722,133 ) $ 2,675,559 $ (818,088 ) Denominator:: Weighted average shares outstanding used in computing net income (loss) per share: Basic 7,128,768 6,009,383 6,808,339 6,011,695 Effect of dilutive stock options 819,680 — 826,387 — Effect of convertible note weighted shares 958,904 — 958,904 — Diluted 8,907,352 6,009,383 8,593,630 6,011,695 Net income (loss) per share applicable to common stockholders: Basic $ 0.34 $ (0.13 ) $ 0.38 $ (0.14 ) Diluted $ 0.27 $ (0.13 ) $ 0.31 $ (0.14 ) |
NOTE 11 _ Commitments and Con_2
NOTE 11 — Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future minimum lease payments | Annual minimum payments: Amount 2021 (July 1 to December 31, 2021) 262,789 2022 (through June 30, 2022) 262,789 Total minimum payments 525,578 Less: Present value factor (17,250 ) Total operating lease liabilities 508,328 Less: Current portion of operating lease (508,328 ) Long-term portion of operating lease — |
NOTE 2 _ Summary of Significa_3
NOTE 2 — Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Product Information [Line Items] | |||||
Deferred revenue on shipments to distributors | $ 529,973 | $ 529,973 | $ 450,591 | ||
Deferred cost on shipments to distributors | 179,267 | 179,267 | 170,016 | ||
Revenues | 5,952,890 | $ 2,715,024 | 10,765,869 | $ 6,935,710 | |
Operating Lease, Right-of-Use Asset | 413,810 | 413,810 | 609,331 | ||
Operating Lease, Liability | 508,328 | 508,328 | $ 741,351 | ||
Goodwill, Impairment Loss | 0 | ||||
Service [Member] | |||||
Product Information [Line Items] | |||||
Unrecognized SocketCare service revenue | 40,800 | $ 40,800 | |||
Service [Member] | |||||
Product Information [Line Items] | |||||
Revenues | $ 6,700 | $ 8,600 |
Amortization (Details)
Amortization (Details) | Jun. 30, 2021USD ($) |
Business Combination and Asset Acquisition [Abstract] | |
2021 (July 1, 2021 to December 31, 2021) | $ 63,648 |
2022 | 127,296 |
2023 | 127,296 |
2024 | 127,296 |
2025 | 127,296 |
Thereafter | 1,304,777 |
Total | $ 1,877,609 |
NOTE 3 _ Acquisition of Intan_3
NOTE 3 — Acquisition of Intangible Assets (Details Narrative) - USD ($) | 6 Months Ended | |||
Jun. 30, 2021 | Mar. 29, 2021 | Feb. 26, 2021 | Dec. 31, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Acquisition date | Feb. 26, 2021 | |||
Number of common shares issued | 184,332 | |||
Number of warrants issued | 50,000 | |||
Intangible asset valuation date | Mar. 29, 2021 | |||
Agreed cash payment | $ 192,293 | |||
Value of acquired intangible asset | $ 1,877,609 | |||
Warrant [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Share price | $ 7.65 | $ 10.85 |
Inventories (Details)
Inventories (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials and sub-assemblies | $ 4,429,107 | $ 3,642,377 |
Finished goods | 396,346 | 281,104 |
Inventory reserves | (805,943) | (727,639) |
Inventory, net | $ 4,019,510 | $ 3,195,842 |
CalCap loan balance (Details)
CalCap loan balance (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Current portion of CalCap loan | $ 500,000 | |
Long-term portion of CalCap loan | 375,000 | |
CalCap loan | $ 875,000 |
NOTE 5 _ Bank Financing Arran_3
NOTE 5 — Bank Financing Arrangements (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jan. 29, 2021 | |
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Initiation Date | Jan. 29, 2021 | ||||
Line of credit expiration date | Jan. 31, 2023 | ||||
Repayments of Debt | $ 125,000 | $ 250,000 | |||
Proceeds from borrowings under bank line of credit | 4,630,000 | ||||
Repayments of Bank Debt | 5,592,449 | ||||
Interest Expense | $ 51,428 | $ 8,149 | 100,129 | 27,641 | |
Domestic Line of Credit [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Aggregate maximum advance amount | $ 3,000,000 | ||||
Domestic Revolving Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Aggregate maximum advance amount | 2,000,000 | ||||
Term Loan [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Aggregate maximum advance amount | $ 1,000,000 | ||||
Repayments of Debt | 250,000 | ||||
Interest Expense | 11,580 | 1,896 | 17,552 | 5,922 | |
Interest Payable | $ 2,431 | $ 2,431 | |||
Credit Line [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Interest Expense | $ 3,783 | $ 19,384 |
NOTE 6 _ Secured Subordinated_2
NOTE 6 — Secured Subordinated Convertible Notes Payable (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 36 Months Ended | ||||
Jun. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Aug. 30, 2023 | Aug. 31, 2020 | Aug. 28, 2020 | |
Short-term Debt [Line Items] | |||||||
Convertible Subordinated Debt | $ 1,530,000 | ||||||
Subordinated Borrowing, Interest Rate | 10.00% | ||||||
Subordinated Borrowing, Due Date | Aug. 30, 2023 | ||||||
Conversion price | $ 1.46 | ||||||
Payments of Debt Issuance Costs | $ 96,515 | ||||||
Amortization of Debt Discount (Premium) | $ 16,546 | ||||||
Unamortized debt discount | $ 71,697 | 71,697 | |||||
Conversion of Stock, Amount Converted | 130,000 | ||||||
Interest expense | $ 43,177 | $ 87,721 | |||||
Related Party [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Convertible Subordinated Debt | $ 1,350,000 |
Revenue by Geographic (Details)
Revenue by Geographic (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenues | $ 5,952,890 | $ 2,715,024 | $ 10,765,869 | $ 6,935,710 |
Americas [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenues | 4,753,436 | 2,242,225 | 8,316,490 | 5,385,634 |
EMEA [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenues | 875,945 | 200,012 | 1,653,526 | 815,541 |
Asia Pacific [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenues | $ 323,509 | $ 272,787 | $ 795,853 | $ 734,535 |
Major customers accounted for a
Major customers accounted for at least 10% of total revenues (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Ingram Micro [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
ScanSource, Inc. | 0.27 | 0.29 | 0.26 | 0.33 |
Blue Star [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
ScanSource, Inc. | 0.32 | 0.25 | 0.31 | 0.20 |
Scan Source [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
ScanSource, Inc. | 0.12 | 0.14 | 0.10 | 0.10 |
Concentration of Credit Risk (D
Concentration of Credit Risk (Details) | Jun. 30, 2021 | Dec. 31, 2020 | |
Blue Star [Member] | |||
Revenue, Major Customer [Line Items] | |||
Bluestar Europe Distribution BV | 0.33 | 0.29 | |
Ingram Micro [Member] | |||
Revenue, Major Customer [Line Items] | |||
Bluestar Europe Distribution BV | 0.26 | 0.34 | |
Scan Source [Member] | |||
Revenue, Major Customer [Line Items] | |||
Bluestar Europe Distribution BV | 0.26 | 0.13 | |
Bluestar Europe [Member] | |||
Revenue, Major Customer [Line Items] | |||
Bluestar Europe Distribution BV | [1] | 0.11 | |
[1] | Customer accounted for less than 10% of the Company accounts receivable balances |
NOTE 7 _ Segment Information _3
NOTE 7 — Segment Information and Concentrations (Details Narrative) - Supplier Concentration Risk [Member] | 3 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Revenue, Major Customer [Line Items] | |||
Percentage of inventory purchases from top two suppliers | 46.00% | 54.00% | |
Accounts payable balances with a single supplier | 19.00% | 15.00% |
NOTE 8 _ Stock-Based Compensa_2
NOTE 8 — Stock-Based Compensation (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Aug. 13, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |||||||
Stock option granted | 182,000 | 37,000 | |||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 4,000 | 302,425 | 293,000 | ||||
Oustanding restricted stock | 742,131 | 742,131 | |||||
Share-based Payment Arrangement, Noncash Expense | $ 172,008 | $ 148,772 | $ 131,369 | $ 132,065 | $ 320,780 | $ 263,434 |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Numerator: | ||||||
Net income (loss) | $ 2,627,107 | $ 202,902 | $ (768,023) | $ (90,327) | $ 2,830,009 | $ (858,350) |
Net income (loss) allocated to restricted stock award | 226,630 | (45,890) | 243,205 | (40,262) | ||
Adjusted net income (loss) for basic earnings per share | 2,400,477 | (722,133) | 2,586,804 | (818,088) | ||
Convertible note interest | 43,177 | 88,755 | ||||
Adjusted net income (loss) for diluted earnings per share | $ 2,443,654 | $ (722,133) | $ 2,675,559 | $ (818,088) | ||
Denominator:: Weighted average shares outstanding used in computing net income (loss) per share: | ||||||
Basic | 7,128,768 | 6,009,383 | 6,808,339 | 6,011,695 | ||
Effect of dilutive stock options | 819,680 | 826,387 | ||||
Effect of convertible note weighted shares | 958,904 | 958,904 | ||||
Diluted | 8,907,352 | 6,009,383 | 8,593,630 | 6,011,695 | ||
Net income (loss) per share applicable to common stockholders: | ||||||
Basic | $ 0.34 | $ (0.13) | $ 0.38 | $ (0.14) | ||
Diluted | $ 0.27 | $ (0.13) | $ 0.31 | $ (0.14) |
NOTE 9 _ Net Income (Loss) Pe_3
NOTE 9 — Net Income (Loss) Per Share (Details Narrative) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Calculation of Diluted Net Income (Loss) Per Share | 50,000 | |||
Restricted Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Calculation of Diluted Net Income (Loss) Per Share | 45,000 | 394,506 | 45,000 | 394,506 |
Warrant [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Calculation of Diluted Net Income (Loss) Per Share | 50,000 | |||
Share-based Payment Arrangement, Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Calculation of Diluted Net Income (Loss) Per Share | 2,259,937 | 2,259,937 |
NOTE 10 _ Income Taxes (Details
NOTE 10 — Income Taxes (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||||
Employee stock option income tax effects | $ 7,970,000 | |||||
Share-based Payment Arrangement, Noncash Expense | $ 172,008 | $ 148,772 | $ 131,369 | $ 132,065 | 320,780 | $ 263,434 |
Taxable loss | $ 6,690,000 |
Future minimum lease payments (
Future minimum lease payments (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Annual minimum payments: | ||
2021 (July 1 to December 31, 2021) | $ 262,789 | |
2022 (through June 30, 2022) | 262,789 | |
Total minimum payments | 525,578 | |
Less: Present value factor | (17,250) | |
Total operating lease liabilities | 508,328 | $ 741,351 |
Less: Current portion of operating lease | (508,328) | (483,254) |
Long-term portion of operating lease | $ 258,097 |
NOTE 11 _ Commitments and Con_3
NOTE 11 — Commitments and Contingencies (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |||||
Operating Lease, Right-of-Use Asset | $ 413,810 | $ 413,810 | $ 609,331 | ||
Operating Lease, Liability | 508,328 | 508,328 | $ 741,351 | ||
Lease expense | 107,218 | 214,437 | |||
Operating Lease, Payments | 126,516 | $ 117,268 | 253,032 | $ 234,537 | |
Purchase Obligation, to be Paid, Year One | $ 10,858,000 | $ 10,858,000 |
NOTE 12 _ Subsequent Events (De
NOTE 12 — Subsequent Events (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Aug. 13, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | |
Subsequent Events [Abstract] | |||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 4,000 | 302,425 | 293,000 | ||
Stock Issued During Period, Value, Stock Options Exercised | $ 35,129 | $ 66,889 | $ 1,711,658 |