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1. Description of Business Stereotaxis designs, manufactures and markets an advanced robotic magnetic navigation system for use in a hospital’s interventional surgical suite, or “interventional lab”, that we believe revolutionizes the treatment of arrhythmias by enabling enhanced safety, efficiency, and efficacy for catheter-based, or interventional, procedures. Our primary products include the Genesis RMN System, the Niobe System, the Odyssey Solution, and related devices. We also offer to our customers the Stereotaxis Imaging Model S x-ray System. The Genesis RMN and Niobe Systems are designed to enable physicians to complete more complex interventional procedures by providing image-guided delivery of catheters through the blood vessels and chambers of the heart to treatment sites. This is achieved using externally applied magnetic fields that govern the motion of the working tip of the catheter, resulting in improved navigation, efficient procedures, and reduced x-ray exposure. In addition to the robotic magnetic navigation systems and their components, Stereotaxis also has developed the Odyssey Solution, which consolidates lab information enabling physicians to focus on the patient for optimal procedure efficiency. The system also features a remote viewing and recording capability called Odyssey Cinema, which is an innovative solution that delivers synchronized content for optimized workflow, advanced care, and improved productivity. This tool includes an archiving capability that allows clinicians to store and replay entire procedures or segments of procedures. This information can be accessed from locations throughout the hospital local area network and over the global Odyssey Network providing physicians with a tool for clinical collaboration, remote consultation, and training. We promote our full suite of products in a typical hospital implementation, subject to regulatory approvals or clearances. This implementation requires a hospital to agree to an upfront capital payment and recurring payments. The upfront capital payment typically includes equipment and installation charges. The recurring payments typically include disposable costs for each procedure, equipment service costs beyond warranty period, and ongoing software updates. In hospitals where our full suite of products has not been implemented, equipment upgrade or expansion can be implemented upon purchasing of the necessary upgrade or expansion. We have received regulatory clearance, licensing and/or CE Mark approvals necessary for us to market the Genesis RMN System in the U.S. and Europe, and we are in the process of obtaining necessary registrations for extending our markets in other countries. The Niobe System, Odyssey Solution, Cardiodrive, and various disposable interventional devices have received regulatory clearance in the U.S., Europe, Canada, China, Japan and various other countries. We have received the regulatory clearance, licensing and/or CE Mark approvals that allow us to market the Vdrive and Vdrive Duo Systems with the V-CAS, V-Loop and V-Sono devices in the U.S., Canada and Europe. The V-CAS Deflect catheter advancement system has been CE Marked for sale in the Europe. Stereotaxis Imaging Model S is CE marked and FDA cleared. We have strategic relationships with technology leaders and innovators in the global interventional market. Through these strategic relationships we provide compatibility between our robotic magnetic navigation system and digital imaging and 3D catheter location sensing technology, as well as disposable interventional devices. The maintenance of these strategic relationships, or the establishment of equivalent alternatives, is critical to our commercialization efforts. There are no guarantees that any existing strategic relationships will continue and efforts are ongoing to ensure the availability of integrated next generation systems and/or equivalent alternatives. We cannot provide assurance as to the timeline of the ongoing availability of such compatible systems or our ability to obtain equivalent alternatives on competitive terms or at all.

2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited financial statements of Stereotaxis, Inc. have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the instructions to Form 10-Q. Accordingly, they do not include all the disclosures required by GAAP for complete financial statements. In the opinion of management, they include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods presented. Operating results for the nine month period ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 or for future operating periods. These interim financial statements and the related notes should be read in conjunction with the annual financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 as filed with the Securities and Exchange Commission (SEC) on March 16, 2020. Risks and Uncertainties The novel coronavirus COVID-19 (“COVID-19”) pandemic has resulted, and is likely to continue to result, in significant disruptions to the economy, as well as business and capital markets around the world. The full extent of the impact of the COVID-19 pandemic on our business, results of operations and financial condition will depend on numerous evolving factors that we may not be able to accurately predict. As a result of the COVID-19 outbreak, we have experienced business disruptions, including travel restrictions on us and our third-party distributors, which have negatively affected our complex sales, marketing, installation, distribution and service network relating to our products and services. The COVID-19 pandemic may continue to negatively affect demand for both our systems and our disposable products by limiting the ability of our sales personnel to maintain their customary contacts with customers as governmental authorities institute prolonged quarantines, travel restrictions, and shelter-in-place orders, or as our customers impose limitations on contacts and in-person meetings that go beyond those imposed by governmental authorities. In addition, many of our hospital customers, for whom the purchase of our system involves a significant capital purchase which may be part of a larger construction project at the customer site (typically the construction of a new building), may themselves be under economic pressures. This may cause delays or cancellations of current purchase orders and other commitments, and may exacerbate the long and variable sales and installation cycles for our robotic systems products. We may also experience significant reductions in demand for our disposable products as our healthcare customers (physicians and hospitals) continue to re-prioritize the treatment of patients and divert resources away from non-coronavirus areas, which we anticipate will lead to the performance of fewer procedures in which our disposable products are used. In addition, patients may consider foregoing or deferring procedures utilizing our products, even if physicians and hospitals are willing to perform them, which could also reduce demand for, and sales of, our disposable products. As of the date of the filing of this Quarterly Report on Form 10-Q, we believe our manufacturing operations and supply chains have been minimally interrupted, but we cannot guarantee that they will not be interrupted more severely in the future. If our manufacturing operations or supply chains are materially interrupted, it may not be possible for us to timely manufacture relevant products at required levels, or at all. A material reduction or interruption to any of our manufacturing processes would have a material adverse effect on our business, operating results, and financial condition. As governmental authorities around the world continue to institute prolonged mandatory closures, social distancing protocols and shelter-in-place orders, or as private parties on whom we rely to operate our business put in place their own protocols that go beyond those instituted by relevant governmental authorities, our ability to adequately staff and maintain our operations or further our product development could be negatively impacted. Any disruption to the capital markets could negatively impact our ability to raise capital. If the capital markets are disrupted for an extended period of time and we need to raise additional capital, such capital may not be available on acceptable terms, or at all. Continued disruptions to the capital markets and other financing sources could also negatively impact our hospital customers’ ability to raise capital or otherwise obtain financing to fund their operations and capital projects. Such could result in delayed spending on current projects, a longer sales cycle for new projects where a large capital commitment is required, and decreased demand for our disposable products as well as an increased risk of customer defaults or delays in payments for our systems installation, service contracts and disposable products. We continue to evaluate and take actions to reduce costs and spending across our organization. We will continue to actively monitor the situation and may take further actions that alter our business operations as may be required by federal, state, or local governmental authorities that may be implemented by our vendors, supplier or customers, or that we determine are in the best interests of our employees, customers, suppliers and shareholders. Compensating Cash Arrangement In July 2020, the Company entered into a letter of credit to support a commitment of less than $0.3 million. As a condition of the letter of credit, the Company is required to maintain a $0.3 million compensating balance until the expiration of the letter of credit. Financial Instruments Financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, and debt. The carrying value of such amounts reported at the applicable balance sheet dates approximates fair value. The Company measures certain financial assets and liabilities at fair value on a recurring basis. General accounting principles for fair value measurement established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (“Level 1”) and the lowest priority to unobservable inputs (“Level 3”). As of September 30, 2020 and December 31, 2019, the Company did not have any financial assets or liabilities valued at fair value on a recurring basis. Revenue and Costs of Revenue The Company accounts for revenue in accordance with Accounting Standards Codification Topic 606 (“ASC 606”), Revenue from Contracts with Customers. We generate revenue from initial capital sales of systems as well as recurring revenue from the sale of our proprietary disposable devices, from royalties paid to the Company on the sale by Biosense Webster of co-developed catheters, and from other recurring revenue including ongoing software updates and service contracts. We account for a contract with a customer when there is a legally enforceable contract between the Company and the customer, the rights of the parties are identified, the contract has commercial substance, and collectability of the contract consideration is probable. We record our revenue based on consideration specified in the contract with each customer, net of any taxes collected from customers that are remitted to government authorities. For contracts containing multiple products and services, the Company accounts for individual products and services as separate performance obligations if they are distinct, which is if a product or service is separately identifiable from other items in the bundled package, and if a customer can benefit from it on its own or with other resources that are readily available to the customer. The Company recognizes revenues as the performance obligations are satisfied by transferring control of the product or service to a customer. For arrangements with multiple performance obligations, revenue is allocated to each performance obligation based on its relative standalone selling price. Standalone selling prices are based on observable prices at which the Company separately sells the products or services. If a standalone selling price is not directly observable, then the Company estimates the standalone selling price considering market conditions and entity-specific factors including, but not limited to, features and functionality of the products and services and market conditions. The Company regularly reviews standalone selling prices and updates these estimates as necessary. Systems: Contracts related to the sale of systems typically contain separate obligations for the delivery of system(s), installation and an implied obligation to provide software enhancements if and when available for one year following installation. Revenue is recognized when the Company transfers control to the customer, which is generally at the point when acceptance occurs that indicates customer acknowledgment of delivery or installation, depending on the terms of the arrangement. Revenue from the implied obligation to deliver software enhancements if and when available is recognized ratably typically over the first year following installation of the system as the customer receives the right to software updates throughout the period and is included in Other Recurring Revenue. The Company’s system contracts generally do not provide a right of return. Systems are generally covered by a one-year assurance type warranty; warranty costs were less than $0.1 million for the periods presented. Revenue from systems delivery and installation represented <span id="xdx_90C_eus-gaap--ConcentrationRiskPercentage1_pii_dp_uPercent_c20200101__20200930__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--RevenueFromSystemDeliveryAndInstallationMember__srt--RangeAxis__srt--MaximumMember_z3akofSOhoOg" title="Revenues percentage">15% and <span id="xdx_907_eus-gaap--ConcentrationRiskPercentage1_pii_dp_uPercent_c20190101__20190930__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--RevenueFromSystemDeliveryAndInstallationMember__srt--RangeAxis__srt--MaximumMember_zqqUz0Au9a87" title="Revenues percentage">8% for the nine months ended September 30, 2020 and 2019, respectively. Disposables: Revenue from sales of disposable products is recognized when control is transferred to the customers, which generally occurs at the time of shipment, but can also occur at the time of delivery depending on the customer arrangement. Disposable products are covered by an assurance type warranty that provides for the return of defective products. Warranty costs were not material for the periods presented. Disposable revenue represented <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_pii_dp_uPercent_c20200101__20200930__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--DisposableRevenueMember_zFgtHyBpYmnf" title="Revenues percentage">27% and <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pii_dp_uPercent_c20190101__20190930__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--DisposableRevenueMember_zXd89zfwSEpi" title="Revenues percentage">33% of revenue for the nine months ended September 30, 2020 and 2019, respectively. Royalty: The Company is entitled to royalty payments from Biosense Webster, payable quarterly based on net revenues from sales of the co-developed catheters. Royalty revenue from the co-developed catheters represented <span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_pii_dp_uPercent_c20200101__20200930__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--RoyaltyRevenueMember_zLW7zAQ5pCCc" title="Revenues percentage">8% and <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_pii_dp_uPercent_c20190101__20190930__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--RoyaltyRevenueMember_zXfAt49OFLDg" title="Revenues percentage">10% of revenue for the nine months ended September 30, 2020 and 2019, respectively. Other Recurring Revenue: Other recurring revenue includes revenue from product maintenance plans, other post warranty maintenance, and the implied obligation to provide software enhancements if and when available for a specified period, typically one year following installation. Revenue from services and software enhancements is deferred and amortized over the service or update period, which is typically one year. Revenue related to services performed on a time-and-materials basis is recognized when performed. Other recurring revenue represented <span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_pii_dp_uPercent_c20200101__20200930__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--OtherRecurringRevenueMember_zwAXdKsFNle6" title="Revenues percentage"><span id="xdx_90E_eus-gaap--ConcentrationRiskPercentage1_pii_dp_uPercent_c20190101__20190930__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--OtherRecurringRevenueMember_zVigLUXf2Png" title="Revenues percentage">46% of revenue for the nine months ended September 30, 2020 and 2019. Sublease Revenue: The adoption of new lease accounting guidance as of January 1, 2019 requires the Company to record sublease income as revenue beginning in 2019. Sublease revenue represented <span id="xdx_902_eus-gaap--ConcentrationRiskPercentage1_pii_dp_uPercent_c20200101__20200930__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--SubleaseRevenueMember_zQJVmiTQF6u2" title="Revenues percentage">4% and <span id="xdx_903_eus-gaap--ConcentrationRiskPercentage1_pii_dp_uPercent_c20190101__20190930__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--SubleaseRevenueMember_zJ0q7lEnUqR6" title="Revenues percentage">3% of revenue for the nine months ended September 30, 2020 and 2019, respectively. Schedule of Revenue Disaggregated by Type <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 85%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three Months Ended September 30</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Nine Months Ended September 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 28%">Systems</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pp0p0_c20200701__20200930__srt--ProductOrServiceAxis__custom--SystemsMember_zYcUZ8p9eaI6" style="width: 14%; text-align: right" title="Total revenue">2,953,005</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_987_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pp0p0_d0_c20190701__20190930__srt--ProductOrServiceAxis__custom--SystemsMember_z5BGcQyNyItl" style="width: 14%; text-align: right">1,696,964</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98D_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pp0p0_c20200101__20200930__srt--ProductOrServiceAxis__custom--SystemsMember_z6alMi4nuqr8" style="width: 14%; text-align: right">2,965,774</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pp0p0_c20190101__20190930__srt--ProductOrServiceAxis__custom--SystemsMember_zr8Yf6WEJx54" style="width: 14%; text-align: right">1,755,015</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Disposables, service and accessories</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pp0p0_c20200701__20200930__srt--ProductOrServiceAxis__custom--DisposablesServiceAndAccessoriesMember_zdDBYQqNbN4l" style="text-align: right">5,504,048</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pp0p0_c20190701__20190930__srt--ProductOrServiceAxis__custom--DisposablesServiceAndAccessoriesMember_z43oQPGSJWyj" style="text-align: right">6,258,252</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pp0p0_c20200101__20200930__srt--ProductOrServiceAxis__custom--DisposablesServiceAndAccessoriesMember_zSvLX049ARZ2" style="text-align: right">16,099,915</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pp0p0_c20190101__20190930__srt--ProductOrServiceAxis__custom--DisposablesServiceAndAccessoriesMember_z7aVK64n3k9f" style="text-align: right">19,515,125</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt">Sublease</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--SubleaseIncome_c20200701__20200930_pp0p0" style="border-bottom: Black 1.5pt solid; text-align: right" title="Sublease">246,530</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_980_eus-gaap--SubleaseIncome_c20190701__20190930_pp0p0" style="border-bottom: Black 1.5pt solid; text-align: right" title="Sublease">246,532</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--SubleaseIncome_c20200101__20200930_pp0p0" style="border-bottom: Black 1.5pt solid; text-align: right" title="Sublease">739,590</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--SubleaseIncome_c20190101__20190930_pp0p0" style="border-bottom: Black 1.5pt solid; text-align: right" title="Sublease">739,593</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total revenue</td><td> </td> <td style="text-align: left">$</td><td id="xdx_986_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_c20200701__20200930_pp0p0" style="text-align: right" title="Total revenue">8,703,583</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_981_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_c20190701__20190930_pp0p0" style="text-align: right" title="Total revenue">8,201,748</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_980_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_c20200101__20200930_pp0p0" style="text-align: right" title="Total revenue">19,805,279</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_987_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_c20190101__20190930_pp0p0" style="text-align: right" title="Total revenue">22,009,733</td><td style="text-align: left"> </td></tr> </table> Transaction price allocated to remaining performance obligations relates to amounts allocated to products and services for which the revenue has not yet been recognized. A significant portion of this amount relates to the Company’s systems contracts and obligations that will be recognized as revenue in future periods. These obligations are generally satisfied within two years after contract inception but may occasionally extend longer. Transaction price representing revenue to be earned on remaining performance obligations on system contracts was approximately $1.2 million as of September 30, 2020. Performance obligations arising from contracts for disposables, royalty and service are generally expected to be satisfied within one year after entering into the contract. The following information summarizes the Company’s contract assets and liabilities: Summary of Contract Assets and Liabilities <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">September 30, 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Contract Assets - unbilled receivables</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--ContractWithCustomerLiability_iI_pp0p0_c20200930__srt--ProductOrServiceAxis__custom--ContractAssetsUnbilledReceivablesMember_zCpQkubOgfrb" style="width: 16%; text-align: right" title="Total deferred revenue">200,134</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--ContractWithCustomerLiability_c20191231__srt--ProductOrServiceAxis__custom--ContractAssetsUnbilledReceivablesMember_pp0p0" style="width: 16%; text-align: right" title="Total deferred revenue">168,445</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Customer deposits</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--ContractWithCustomerLiability_c20200930__srt--ProductOrServiceAxis__custom--CustomerDepositsMember_pp0p0" style="text-align: right" title="Total deferred revenue">162,240</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--ContractWithCustomerLiability_c20191231__srt--ProductOrServiceAxis__custom--CustomerDepositsMember_pp0p0" style="text-align: right" title="Total deferred revenue">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Product shipped, revenue deferred</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ContractWithCustomerLiability_c20200930__srt--ProductOrServiceAxis__custom--ProductShippedRevenueDeferredMember_pp0p0" style="text-align: right" title="Total deferred revenue">929,458</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ContractWithCustomerLiability_c20191231__srt--ProductOrServiceAxis__custom--ProductShippedRevenueDeferredMember_pp0p0" style="text-align: right" title="Total deferred revenue">674,324</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Deferred service and license fees</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--ContractWithCustomerLiability_c20200930__srt--ProductOrServiceAxis__custom--DeferredServiceAndLicenseFeesMember_pp0p0" style="border-bottom: Black 1.5pt solid; text-align: right" title="Total deferred revenue">5,667,573</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--ContractWithCustomerLiability_c20191231__srt--ProductOrServiceAxis__custom--DeferredServiceAndLicenseFeesMember_pp0p0" style="border-bottom: Black 1.5pt solid; text-align: right" title="Total deferred revenue">4,972,389</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total deferred revenue</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ContractWithCustomerLiability_c20200930_pp0p0" style="text-align: right" title="Total deferred revenue">6,759,271</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ContractWithCustomerLiability_c20191231_pp0p0" style="text-align: right" title="Total deferred revenue">5,646,713</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Less: Long-term deferred revenue</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--ContractWithCustomerLiabilityNoncurrent_iNI_pp0p0_di_c20200930_zJDzB3ePnyq7" style="border-bottom: Black 1.5pt solid; text-align: right" title="Less: Long-term deferred revenue">(569,475</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98F_eus-gaap--ContractWithCustomerLiabilityNoncurrent_iNI_pp0p0_di_c20191231_zx1C0Ta9CvWj" style="border-bottom: Black 1.5pt solid; text-align: right" title="Less: Long-term deferred revenue">(554,258</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total current deferred revenue</td><td> </td> <td style="text-align: left">$</td><td id="xdx_981_eus-gaap--ContractWithCustomerLiabilityCurrent_c20200930_pp0p0" style="text-align: right" title="Total current deferred revenue">6,189,796</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_984_eus-gaap--ContractWithCustomerLiabilityCurrent_c20191231_pp0p0" style="text-align: right" title="Total current deferred revenue">5,092,455</td><td style="text-align: left"> </td></tr> </table> The Company invoices its customers based on the billing schedules in its sales arrangements. Contract assets primarily represent the difference between the revenue that was earned but not billed on service contracts and revenue from system contracts that was recognized based on the relative selling price of the related performance obligations and the contractual billing terms in the arrangements. Deferred revenue is primarily related to service contracts, for which the service fees are billed up-front, generally quarterly or annually, and for amounts billed in advance for system contracts for which some performance obligations remain outstanding. For service contracts, the associated deferred revenue is generally recognized ratably over the service period. For system contracts, the associated deferred revenue is recognized when the remaining performance obligations are satisfied. The Company did not have any impairment losses on its contract assets for the periods presented. Revenue recognized for the nine months ended September 30, 2020 and 2019, that was included in the deferred revenue balance at the beginning of each reporting period was $4.7 million and $5.4 million, respectively. Assets Recognized from the Costs to Obtain a Contract with a Customer The Company has determined that sales incentive programs for the Company’s sales team meet the requirements to be capitalized as the Company expects to generate future economic benefits from the related revenue generating contracts after the initial capital sales transaction. The costs capitalized as contract acquisition costs included in prepaid expenses and other assets in the Company’s balance sheet were $0.3 million as of September 30, 2020 and December 31, 2019. The Company did not incur any impairment losses during any of the periods presented. Costs of systems revenue include direct product costs, installation labor and other costs, estimated warranty costs, and initial training and product maintenance costs. These costs are recognized at the time of sale. Costs of disposable revenue include direct product costs and estimated warranty costs and are recognized at the time of sale. Cost of revenue from services and license fees are recognized when incurred. Share-Based Compensation The Company accounts for its grants of stock options, stock appreciation rights, restricted shares, and restricted stock units and for its employee stock purchase plan in accordance with the provisions of general accounting principles for share-based payments. These accounting principles require the determination of the fair value of the share-based compensation at the grant date and the recognition of the related expense over the period in which the share-based compensation vests. The Company utilizes the Black-Scholes valuation model to determine the fair value of stock options and stock appreciation rights at the date of grant. The resulting compensation expense is recognized over the requisite service period, which is generally four years. Restricted shares and units granted to employees are valued at the fair market value at the date of grant. The Company amortizes the fair market value to expense over the service period. If the shares are subject to performance objectives, the resulting compensation expense is amortized over the anticipated vesting period and is subject to adjustment based on the actual achievement of objectives. Net Earnings (Loss) per Common Share Basic earnings (loss) per common share is computed by dividing the net earnings (loss) for the period by the weighted average number of common shares outstanding during the period. In periods where there is net income, we apply the two-class method to calculate basic and diluted net income (loss) per share of common stock, as our Convertible Preferred Stock is a participating security. The two-class method is an earnings allocation formula that treats a participating security as having rights to earnings that otherwise would have been available to common stockholders. In periods where there is a net loss, the two-class method of computing earnings per share does not apply as our Convertible Preferred Stock does not contractually participate in our losses. We compute diluted net income (loss) per common share using net income (loss) as the “control number” in determining whether potential common shares are dilutive, after giving consideration to all potentially dilutive common shares, including stock options, warrants, unvested restricted stock units outstanding during the period and potential issuance of stock upon the conversion of our Convertible Preferred Stock issued and outstanding during the period, except where the effect of such securities would be antidilutive. The following table sets forth the computation of basic and diluted EPS: Schedule of Computation of Basic and Diluted Earnings Per Share <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 100%; margin-right: auto"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49D_20200701__20200930_zHUZsRvF2r72" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_499_20190701__20190930_zHYPqHipMZX3" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20200101__20200930_zU4vkVguWZug" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49A_20190101__20190930_zlZXbbBaAdpf" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three Months Ended September 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Nine Months Ended September 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_408_eus-gaap--NetIncomeLoss_zvvx0xCqvA8c" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 32%; text-align: left">Net income (loss)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">(1,572,972</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">43,748</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">(5,465,609</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">(3,506,790</td><td style="width: 1%; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--PreferredStockDividendsIncomeStatementImpact_iN_di_zp6x67md5Cy2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Cumulative dividend on convertible preferred stock</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(343,101</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(360,647</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,028,950</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,071,351</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_40C_eus-gaap--NetIncomeLossAvailableToCommonStockholdersBasic_zbipRld8PRl7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Net loss attributable to common stockholders</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,916,073</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(316,899</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(6,494,559</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(4,578,141</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_zN6ZhqvZFVqi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Weighted average number of common shares and equivalents:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">74,488,771</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">64,294,153</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">72,004,956</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">61,405,083</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--EarningsPerShareBasic_zuNVT6h70Xsd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Basic EPS</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.03</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.00</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.09</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.07</td><td style="text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--EarningsPerShareDiluted_zAisohauDlrd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Diluted EPS</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.03</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.00</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.09</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.07</td><td style="text-align: left">)</td></tr> </table> The Company did not include any portion of unearned restricted shares, outstanding options, stock appreciation rights, warrants or convertible preferred stock in the calculation of diluted loss per common share because all such securities are anti-dilutive for all periods presented. The application of the two-class method of computing earnings per share under general accounting principles for participating securities is not applicable during these periods because those securities do not contractually participate in its losses. As of September 30, 2020, the Company had <span id="xdx_903_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pii_uShares_c20200101__20200930__us-gaap--AwardTypeAxis__custom--StockOptionsandStockAppreciationRightsMember_z6xWPenyQ9Uh" title="Potential common shares excluded from diluted earnings per share">2,473,241 shares of common stock issuable upon the exercise of outstanding options and stock appreciation rights at a weighted average exercise price of $<span id="xdx_903_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_pii_uUSDPShares_c20200930__us-gaap--AwardTypeAxis__custom--StockOptionsandStockAppreciationRightsMember_zTQFSr8hX2Eg" title="Weighted average exercise price">2.90 per share, <span id="xdx_906_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pii_uShares_c20200101__20200930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zzytBGAA1SOk" title="Potential common shares excluded from diluted earnings per share">15,385 shares of common stock issuable upon the exercise of outstanding warrants at a weighted average exercise price of $<span id="xdx_90F_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pii_uUSDPShares_c20200930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zLN7bRQCFvTc" title="Exercise price of warrants">0.70 per share, <span id="xdx_909_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pii_uShares_c20200101__20200930__us-gaap--StatementClassOfStockAxis__custom--SeriesAConvertiblePreferredStockMember_zS8Z1dJupV3" title="Potential common shares excluded from diluted earnings per share">42,959,259 shares of common stock issuable upon the conversion of Series A Convertible Preferred Stock and accumulated dividends, <span id="xdx_909_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pii_uShares_c20200101__20200930__us-gaap--StatementClassOfStockAxis__custom--SeriesBConvertiblePreferredStockMember_z3N8eFAZQlIh" title="Potential common shares excluded from diluted earnings per share">5,610,121 shares of common stock issuable upon the conversion of Series B Convertible Preferred Stock, and <span id="xdx_90B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iI_pii_uShares_c20200930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zwkTSIZBIiU8" title="Number of unvested restricted share units">1,112,723 shares of unvested restricted share units. Recently Issued Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” as part of its effort to reduce the complexity of accounting standards. The ASU is effective for fiscal years beginning after December 15, 2020. The Company does not expect that the adoption of this new guidance will have a material impact on the Company’s financial results. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments” and also issued subsequent amendments to the initial guidance under ASU 2018-19, ASU 2019-04 and ASU 2019-05. The standard modifies the measurement approach for credit losses on financial instruments, including trade receivables, from an incurred loss method to a current expected credit loss method, otherwise known as “CECL.” The standard requires the measurement of expected credit losses to be based on relevant information, including historical experience, current conditions and a forecast that is supportable. The standard is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years; early adoption is permitted. The standard must be adopted by applying a cumulative adjustment to retained earnings. The Company anticipates adopting the standard in the first quarter of 2023, although it does not expect a significant impact to the Company’s financial results.

Basis of Presentation The accompanying unaudited financial statements of Stereotaxis, Inc. have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the instructions to Form 10-Q. Accordingly, they do not include all the disclosures required by GAAP for complete financial statements. In the opinion of management, they include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods presented. Operating results for the nine month period ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 or for future operating periods. These interim financial statements and the related notes should be read in conjunction with the annual financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 as filed with the Securities and Exchange Commission (SEC) on March 16, 2020.

Risks and Uncertainties The novel coronavirus COVID-19 (“COVID-19”) pandemic has resulted, and is likely to continue to result, in significant disruptions to the economy, as well as business and capital markets around the world. The full extent of the impact of the COVID-19 pandemic on our business, results of operations and financial condition will depend on numerous evolving factors that we may not be able to accurately predict. As a result of the COVID-19 outbreak, we have experienced business disruptions, including travel restrictions on us and our third-party distributors, which have negatively affected our complex sales, marketing, installation, distribution and service network relating to our products and services. The COVID-19 pandemic may continue to negatively affect demand for both our systems and our disposable products by limiting the ability of our sales personnel to maintain their customary contacts with customers as governmental authorities institute prolonged quarantines, travel restrictions, and shelter-in-place orders, or as our customers impose limitations on contacts and in-person meetings that go beyond those imposed by governmental authorities. In addition, many of our hospital customers, for whom the purchase of our system involves a significant capital purchase which may be part of a larger construction project at the customer site (typically the construction of a new building), may themselves be under economic pressures. This may cause delays or cancellations of current purchase orders and other commitments, and may exacerbate the long and variable sales and installation cycles for our robotic systems products. We may also experience significant reductions in demand for our disposable products as our healthcare customers (physicians and hospitals) continue to re-prioritize the treatment of patients and divert resources away from non-coronavirus areas, which we anticipate will lead to the performance of fewer procedures in which our disposable products are used. In addition, patients may consider foregoing or deferring procedures utilizing our products, even if physicians and hospitals are willing to perform them, which could also reduce demand for, and sales of, our disposable products. As of the date of the filing of this Quarterly Report on Form 10-Q, we believe our manufacturing operations and supply chains have been minimally interrupted, but we cannot guarantee that they will not be interrupted more severely in the future. If our manufacturing operations or supply chains are materially interrupted, it may not be possible for us to timely manufacture relevant products at required levels, or at all. A material reduction or interruption to any of our manufacturing processes would have a material adverse effect on our business, operating results, and financial condition. As governmental authorities around the world continue to institute prolonged mandatory closures, social distancing protocols and shelter-in-place orders, or as private parties on whom we rely to operate our business put in place their own protocols that go beyond those instituted by relevant governmental authorities, our ability to adequately staff and maintain our operations or further our product development could be negatively impacted. Any disruption to the capital markets could negatively impact our ability to raise capital. If the capital markets are disrupted for an extended period of time and we need to raise additional capital, such capital may not be available on acceptable terms, or at all. Continued disruptions to the capital markets and other financing sources could also negatively impact our hospital customers’ ability to raise capital or otherwise obtain financing to fund their operations and capital projects. Such could result in delayed spending on current projects, a longer sales cycle for new projects where a large capital commitment is required, and decreased demand for our disposable products as well as an increased risk of customer defaults or delays in payments for our systems installation, service contracts and disposable products. We continue to evaluate and take actions to reduce costs and spending across our organization. We will continue to actively monitor the situation and may take further actions that alter our business operations as may be required by federal, state, or local governmental authorities that may be implemented by our vendors, supplier or customers, or that we determine are in the best interests of our employees, customers, suppliers and shareholders. Compensating Cash Arrangement In July 2020, the Company entered into a letter of credit to support a commitment of less than $0.3 million. As a condition of the letter of credit, the Company is required to maintain a $0.3 million compensating balance until the expiration of the letter of credit.

300000

Financial Instruments Financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, and debt. The carrying value of such amounts reported at the applicable balance sheet dates approximates fair value. The Company measures certain financial assets and liabilities at fair value on a recurring basis. General accounting principles for fair value measurement established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (“Level 1”) and the lowest priority to unobservable inputs (“Level 3”). As of September 30, 2020 and December 31, 2019, the Company did not have any financial assets or liabilities valued at fair value on a recurring basis.

Revenue and Costs of Revenue The Company accounts for revenue in accordance with Accounting Standards Codification Topic 606 (“ASC 606”), Revenue from Contracts with Customers. We generate revenue from initial capital sales of systems as well as recurring revenue from the sale of our proprietary disposable devices, from royalties paid to the Company on the sale by Biosense Webster of co-developed catheters, and from other recurring revenue including ongoing software updates and service contracts. We account for a contract with a customer when there is a legally enforceable contract between the Company and the customer, the rights of the parties are identified, the contract has commercial substance, and collectability of the contract consideration is probable. We record our revenue based on consideration specified in the contract with each customer, net of any taxes collected from customers that are remitted to government authorities. For contracts containing multiple products and services, the Company accounts for individual products and services as separate performance obligations if they are distinct, which is if a product or service is separately identifiable from other items in the bundled package, and if a customer can benefit from it on its own or with other resources that are readily available to the customer. The Company recognizes revenues as the performance obligations are satisfied by transferring control of the product or service to a customer. For arrangements with multiple performance obligations, revenue is allocated to each performance obligation based on its relative standalone selling price. Standalone selling prices are based on observable prices at which the Company separately sells the products or services. If a standalone selling price is not directly observable, then the Company estimates the standalone selling price considering market conditions and entity-specific factors including, but not limited to, features and functionality of the products and services and market conditions. The Company regularly reviews standalone selling prices and updates these estimates as necessary. Systems: Contracts related to the sale of systems typically contain separate obligations for the delivery of system(s), installation and an implied obligation to provide software enhancements if and when available for one year following installation. Revenue is recognized when the Company transfers control to the customer, which is generally at the point when acceptance occurs that indicates customer acknowledgment of delivery or installation, depending on the terms of the arrangement. Revenue from the implied obligation to deliver software enhancements if and when available is recognized ratably typically over the first year following installation of the system as the customer receives the right to software updates throughout the period and is included in Other Recurring Revenue. The Company’s system contracts generally do not provide a right of return. Systems are generally covered by a one-year assurance type warranty; warranty costs were less than $0.1 million for the periods presented. Revenue from systems delivery and installation represented <span id="xdx_90C_eus-gaap--ConcentrationRiskPercentage1_pii_dp_uPercent_c20200101__20200930__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--RevenueFromSystemDeliveryAndInstallationMember__srt--RangeAxis__srt--MaximumMember_z3akofSOhoOg" title="Revenues percentage">15% and <span id="xdx_907_eus-gaap--ConcentrationRiskPercentage1_pii_dp_uPercent_c20190101__20190930__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--RevenueFromSystemDeliveryAndInstallationMember__srt--RangeAxis__srt--MaximumMember_zqqUz0Au9a87" title="Revenues percentage">8% for the nine months ended September 30, 2020 and 2019, respectively. Disposables: Revenue from sales of disposable products is recognized when control is transferred to the customers, which generally occurs at the time of shipment, but can also occur at the time of delivery depending on the customer arrangement. Disposable products are covered by an assurance type warranty that provides for the return of defective products. Warranty costs were not material for the periods presented. Disposable revenue represented <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_pii_dp_uPercent_c20200101__20200930__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--DisposableRevenueMember_zFgtHyBpYmnf" title="Revenues percentage">27% and <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pii_dp_uPercent_c20190101__20190930__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--DisposableRevenueMember_zXd89zfwSEpi" title="Revenues percentage">33% of revenue for the nine months ended September 30, 2020 and 2019, respectively. Royalty: The Company is entitled to royalty payments from Biosense Webster, payable quarterly based on net revenues from sales of the co-developed catheters. Royalty revenue from the co-developed catheters represented <span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_pii_dp_uPercent_c20200101__20200930__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--RoyaltyRevenueMember_zLW7zAQ5pCCc" title="Revenues percentage">8% and <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_pii_dp_uPercent_c20190101__20190930__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--RoyaltyRevenueMember_zXfAt49OFLDg" title="Revenues percentage">10% of revenue for the nine months ended September 30, 2020 and 2019, respectively. Other Recurring Revenue: Other recurring revenue includes revenue from product maintenance plans, other post warranty maintenance, and the implied obligation to provide software enhancements if and when available for a specified period, typically one year following installation. Revenue from services and software enhancements is deferred and amortized over the service or update period, which is typically one year. Revenue related to services performed on a time-and-materials basis is recognized when performed. Other recurring revenue represented <span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_pii_dp_uPercent_c20200101__20200930__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--OtherRecurringRevenueMember_zwAXdKsFNle6" title="Revenues percentage"><span id="xdx_90E_eus-gaap--ConcentrationRiskPercentage1_pii_dp_uPercent_c20190101__20190930__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--OtherRecurringRevenueMember_zVigLUXf2Png" title="Revenues percentage">46% of revenue for the nine months ended September 30, 2020 and 2019. Sublease Revenue: The adoption of new lease accounting guidance as of January 1, 2019 requires the Company to record sublease income as revenue beginning in 2019. Sublease revenue represented <span id="xdx_902_eus-gaap--ConcentrationRiskPercentage1_pii_dp_uPercent_c20200101__20200930__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--SubleaseRevenueMember_zQJVmiTQF6u2" title="Revenues percentage">4% and <span id="xdx_903_eus-gaap--ConcentrationRiskPercentage1_pii_dp_uPercent_c20190101__20190930__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--SubleaseRevenueMember_zJ0q7lEnUqR6" title="Revenues percentage">3% of revenue for the nine months ended September 30, 2020 and 2019, respectively. Schedule of Revenue Disaggregated by Type <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 85%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three Months Ended September 30</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Nine Months Ended September 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 28%">Systems</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pp0p0_c20200701__20200930__srt--ProductOrServiceAxis__custom--SystemsMember_zYcUZ8p9eaI6" style="width: 14%; text-align: right" title="Total revenue">2,953,005</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_987_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pp0p0_d0_c20190701__20190930__srt--ProductOrServiceAxis__custom--SystemsMember_z5BGcQyNyItl" style="width: 14%; text-align: right">1,696,964</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98D_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pp0p0_c20200101__20200930__srt--ProductOrServiceAxis__custom--SystemsMember_z6alMi4nuqr8" style="width: 14%; text-align: right">2,965,774</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pp0p0_c20190101__20190930__srt--ProductOrServiceAxis__custom--SystemsMember_zr8Yf6WEJx54" style="width: 14%; text-align: right">1,755,015</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Disposables, service and accessories</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pp0p0_c20200701__20200930__srt--ProductOrServiceAxis__custom--DisposablesServiceAndAccessoriesMember_zdDBYQqNbN4l" style="text-align: right">5,504,048</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pp0p0_c20190701__20190930__srt--ProductOrServiceAxis__custom--DisposablesServiceAndAccessoriesMember_z43oQPGSJWyj" style="text-align: right">6,258,252</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pp0p0_c20200101__20200930__srt--ProductOrServiceAxis__custom--DisposablesServiceAndAccessoriesMember_zSvLX049ARZ2" style="text-align: right">16,099,915</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pp0p0_c20190101__20190930__srt--ProductOrServiceAxis__custom--DisposablesServiceAndAccessoriesMember_z7aVK64n3k9f" style="text-align: right">19,515,125</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt">Sublease</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--SubleaseIncome_c20200701__20200930_pp0p0" style="border-bottom: Black 1.5pt solid; text-align: right" title="Sublease">246,530</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_980_eus-gaap--SubleaseIncome_c20190701__20190930_pp0p0" style="border-bottom: Black 1.5pt solid; text-align: right" title="Sublease">246,532</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--SubleaseIncome_c20200101__20200930_pp0p0" style="border-bottom: Black 1.5pt solid; text-align: right" title="Sublease">739,590</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--SubleaseIncome_c20190101__20190930_pp0p0" style="border-bottom: Black 1.5pt solid; text-align: right" title="Sublease">739,593</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total revenue</td><td> </td> <td style="text-align: left">$</td><td id="xdx_986_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_c20200701__20200930_pp0p0" style="text-align: right" title="Total revenue">8,703,583</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_981_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_c20190701__20190930_pp0p0" style="text-align: right" title="Total revenue">8,201,748</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_980_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_c20200101__20200930_pp0p0" style="text-align: right" title="Total revenue">19,805,279</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_987_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_c20190101__20190930_pp0p0" style="text-align: right" title="Total revenue">22,009,733</td><td style="text-align: left"> </td></tr> </table> Transaction price allocated to remaining performance obligations relates to amounts allocated to products and services for which the revenue has not yet been recognized. A significant portion of this amount relates to the Company’s systems contracts and obligations that will be recognized as revenue in future periods. These obligations are generally satisfied within two years after contract inception but may occasionally extend longer. Transaction price representing revenue to be earned on remaining performance obligations on system contracts was approximately $1.2 million as of September 30, 2020. Performance obligations arising from contracts for disposables, royalty and service are generally expected to be satisfied within one year after entering into the contract. The following information summarizes the Company’s contract assets and liabilities: Summary of Contract Assets and Liabilities <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">September 30, 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Contract Assets - unbilled receivables</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--ContractWithCustomerLiability_iI_pp0p0_c20200930__srt--ProductOrServiceAxis__custom--ContractAssetsUnbilledReceivablesMember_zCpQkubOgfrb" style="width: 16%; text-align: right" title="Total deferred revenue">200,134</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--ContractWithCustomerLiability_c20191231__srt--ProductOrServiceAxis__custom--ContractAssetsUnbilledReceivablesMember_pp0p0" style="width: 16%; text-align: right" title="Total deferred revenue">168,445</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Customer deposits</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--ContractWithCustomerLiability_c20200930__srt--ProductOrServiceAxis__custom--CustomerDepositsMember_pp0p0" style="text-align: right" title="Total deferred revenue">162,240</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--ContractWithCustomerLiability_c20191231__srt--ProductOrServiceAxis__custom--CustomerDepositsMember_pp0p0" style="text-align: right" title="Total deferred revenue">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Product shipped, revenue deferred</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ContractWithCustomerLiability_c20200930__srt--ProductOrServiceAxis__custom--ProductShippedRevenueDeferredMember_pp0p0" style="text-align: right" title="Total deferred revenue">929,458</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ContractWithCustomerLiability_c20191231__srt--ProductOrServiceAxis__custom--ProductShippedRevenueDeferredMember_pp0p0" style="text-align: right" title="Total deferred revenue">674,324</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Deferred service and license fees</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--ContractWithCustomerLiability_c20200930__srt--ProductOrServiceAxis__custom--DeferredServiceAndLicenseFeesMember_pp0p0" style="border-bottom: Black 1.5pt solid; text-align: right" title="Total deferred revenue">5,667,573</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--ContractWithCustomerLiability_c20191231__srt--ProductOrServiceAxis__custom--DeferredServiceAndLicenseFeesMember_pp0p0" style="border-bottom: Black 1.5pt solid; text-align: right" title="Total deferred revenue">4,972,389</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total deferred revenue</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ContractWithCustomerLiability_c20200930_pp0p0" style="text-align: right" title="Total deferred revenue">6,759,271</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ContractWithCustomerLiability_c20191231_pp0p0" style="text-align: right" title="Total deferred revenue">5,646,713</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Less: Long-term deferred revenue</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--ContractWithCustomerLiabilityNoncurrent_iNI_pp0p0_di_c20200930_zJDzB3ePnyq7" style="border-bottom: Black 1.5pt solid; text-align: right" title="Less: Long-term deferred revenue">(569,475</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98F_eus-gaap--ContractWithCustomerLiabilityNoncurrent_iNI_pp0p0_di_c20191231_zx1C0Ta9CvWj" style="border-bottom: Black 1.5pt solid; text-align: right" title="Less: Long-term deferred revenue">(554,258</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total current deferred revenue</td><td> </td> <td style="text-align: left">$</td><td id="xdx_981_eus-gaap--ContractWithCustomerLiabilityCurrent_c20200930_pp0p0" style="text-align: right" title="Total current deferred revenue">6,189,796</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_984_eus-gaap--ContractWithCustomerLiabilityCurrent_c20191231_pp0p0" style="text-align: right" title="Total current deferred revenue">5,092,455</td><td style="text-align: left"> </td></tr> </table> The Company invoices its customers based on the billing schedules in its sales arrangements. Contract assets primarily represent the difference between the revenue that was earned but not billed on service contracts and revenue from system contracts that was recognized based on the relative selling price of the related performance obligations and the contractual billing terms in the arrangements. Deferred revenue is primarily related to service contracts, for which the service fees are billed up-front, generally quarterly or annually, and for amounts billed in advance for system contracts for which some performance obligations remain outstanding. For service contracts, the associated deferred revenue is generally recognized ratably over the service period. For system contracts, the associated deferred revenue is recognized when the remaining performance obligations are satisfied. The Company did not have any impairment losses on its contract assets for the periods presented. Revenue recognized for the nine months ended September 30, 2020 and 2019, that was included in the deferred revenue balance at the beginning of each reporting period was $4.7 million and $5.4 million, respectively.

100000

0.15

0.08

0.27

0.33

0.08

0.10

0.46

0.04

0.03

Schedule of Revenue Disaggregated by Type <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 85%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three Months Ended September 30</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Nine Months Ended September 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 28%">Systems</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pp0p0_c20200701__20200930__srt--ProductOrServiceAxis__custom--SystemsMember_zYcUZ8p9eaI6" style="width: 14%; text-align: right" title="Total revenue">2,953,005</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_987_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pp0p0_d0_c20190701__20190930__srt--ProductOrServiceAxis__custom--SystemsMember_z5BGcQyNyItl" style="width: 14%; text-align: right">1,696,964</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98D_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pp0p0_c20200101__20200930__srt--ProductOrServiceAxis__custom--SystemsMember_z6alMi4nuqr8" style="width: 14%; text-align: right">2,965,774</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pp0p0_c20190101__20190930__srt--ProductOrServiceAxis__custom--SystemsMember_zr8Yf6WEJx54" style="width: 14%; text-align: right">1,755,015</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Disposables, service and accessories</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pp0p0_c20200701__20200930__srt--ProductOrServiceAxis__custom--DisposablesServiceAndAccessoriesMember_zdDBYQqNbN4l" style="text-align: right">5,504,048</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pp0p0_c20190701__20190930__srt--ProductOrServiceAxis__custom--DisposablesServiceAndAccessoriesMember_z43oQPGSJWyj" style="text-align: right">6,258,252</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pp0p0_c20200101__20200930__srt--ProductOrServiceAxis__custom--DisposablesServiceAndAccessoriesMember_zSvLX049ARZ2" style="text-align: right">16,099,915</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pp0p0_c20190101__20190930__srt--ProductOrServiceAxis__custom--DisposablesServiceAndAccessoriesMember_z7aVK64n3k9f" style="text-align: right">19,515,125</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt">Sublease</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--SubleaseIncome_c20200701__20200930_pp0p0" style="border-bottom: Black 1.5pt solid; text-align: right" title="Sublease">246,530</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_980_eus-gaap--SubleaseIncome_c20190701__20190930_pp0p0" style="border-bottom: Black 1.5pt solid; text-align: right" title="Sublease">246,532</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--SubleaseIncome_c20200101__20200930_pp0p0" style="border-bottom: Black 1.5pt solid; text-align: right" title="Sublease">739,590</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--SubleaseIncome_c20190101__20190930_pp0p0" style="border-bottom: Black 1.5pt solid; text-align: right" title="Sublease">739,593</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total revenue</td><td> </td> <td style="text-align: left">$</td><td id="xdx_986_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_c20200701__20200930_pp0p0" style="text-align: right" title="Total revenue">8,703,583</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_981_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_c20190701__20190930_pp0p0" style="text-align: right" title="Total revenue">8,201,748</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_980_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_c20200101__20200930_pp0p0" style="text-align: right" title="Total revenue">19,805,279</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_987_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_c20190101__20190930_pp0p0" style="text-align: right" title="Total revenue">22,009,733</td><td style="text-align: left"> </td></tr> </table>

2953005

1696964

2965774

1755015

5504048

6258252

16099915

19515125

246530

246532

739590

739593

8703583

8201748

19805279

22009733

1200000

The following information summarizes the Company’s contract assets and liabilities: Summary of Contract Assets and Liabilities <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">September 30, 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Contract Assets - unbilled receivables</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--ContractWithCustomerLiability_iI_pp0p0_c20200930__srt--ProductOrServiceAxis__custom--ContractAssetsUnbilledReceivablesMember_zCpQkubOgfrb" style="width: 16%; text-align: right" title="Total deferred revenue">200,134</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--ContractWithCustomerLiability_c20191231__srt--ProductOrServiceAxis__custom--ContractAssetsUnbilledReceivablesMember_pp0p0" style="width: 16%; text-align: right" title="Total deferred revenue">168,445</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Customer deposits</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--ContractWithCustomerLiability_c20200930__srt--ProductOrServiceAxis__custom--CustomerDepositsMember_pp0p0" style="text-align: right" title="Total deferred revenue">162,240</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--ContractWithCustomerLiability_c20191231__srt--ProductOrServiceAxis__custom--CustomerDepositsMember_pp0p0" style="text-align: right" title="Total deferred revenue">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Product shipped, revenue deferred</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ContractWithCustomerLiability_c20200930__srt--ProductOrServiceAxis__custom--ProductShippedRevenueDeferredMember_pp0p0" style="text-align: right" title="Total deferred revenue">929,458</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ContractWithCustomerLiability_c20191231__srt--ProductOrServiceAxis__custom--ProductShippedRevenueDeferredMember_pp0p0" style="text-align: right" title="Total deferred revenue">674,324</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Deferred service and license fees</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--ContractWithCustomerLiability_c20200930__srt--ProductOrServiceAxis__custom--DeferredServiceAndLicenseFeesMember_pp0p0" style="border-bottom: Black 1.5pt solid; text-align: right" title="Total deferred revenue">5,667,573</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--ContractWithCustomerLiability_c20191231__srt--ProductOrServiceAxis__custom--DeferredServiceAndLicenseFeesMember_pp0p0" style="border-bottom: Black 1.5pt solid; text-align: right" title="Total deferred revenue">4,972,389</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total deferred revenue</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ContractWithCustomerLiability_c20200930_pp0p0" style="text-align: right" title="Total deferred revenue">6,759,271</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ContractWithCustomerLiability_c20191231_pp0p0" style="text-align: right" title="Total deferred revenue">5,646,713</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Less: Long-term deferred revenue</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--ContractWithCustomerLiabilityNoncurrent_iNI_pp0p0_di_c20200930_zJDzB3ePnyq7" style="border-bottom: Black 1.5pt solid; text-align: right" title="Less: Long-term deferred revenue">(569,475</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98F_eus-gaap--ContractWithCustomerLiabilityNoncurrent_iNI_pp0p0_di_c20191231_zx1C0Ta9CvWj" style="border-bottom: Black 1.5pt solid; text-align: right" title="Less: Long-term deferred revenue">(554,258</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total current deferred revenue</td><td> </td> <td style="text-align: left">$</td><td id="xdx_981_eus-gaap--ContractWithCustomerLiabilityCurrent_c20200930_pp0p0" style="text-align: right" title="Total current deferred revenue">6,189,796</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_984_eus-gaap--ContractWithCustomerLiabilityCurrent_c20191231_pp0p0" style="text-align: right" title="Total current deferred revenue">5,092,455</td><td style="text-align: left"> </td></tr> </table>

200134

168445

162240

929458

674324

5667573

4972389

6759271

5646713

569475

554258

6189796

5092455

4700000

5400000

Assets Recognized from the Costs to Obtain a Contract with a Customer The Company has determined that sales incentive programs for the Company’s sales team meet the requirements to be capitalized as the Company expects to generate future economic benefits from the related revenue generating contracts after the initial capital sales transaction. The costs capitalized as contract acquisition costs included in prepaid expenses and other assets in the Company’s balance sheet were $0.3 million as of September 30, 2020 and December 31, 2019. The Company did not incur any impairment losses during any of the periods presented. Costs of systems revenue include direct product costs, installation labor and other costs, estimated warranty costs, and initial training and product maintenance costs. These costs are recognized at the time of sale. Costs of disposable revenue include direct product costs and estimated warranty costs and are recognized at the time of sale. Cost of revenue from services and license fees are recognized when incurred.

300000

Share-Based Compensation The Company accounts for its grants of stock options, stock appreciation rights, restricted shares, and restricted stock units and for its employee stock purchase plan in accordance with the provisions of general accounting principles for share-based payments. These accounting principles require the determination of the fair value of the share-based compensation at the grant date and the recognition of the related expense over the period in which the share-based compensation vests. The Company utilizes the Black-Scholes valuation model to determine the fair value of stock options and stock appreciation rights at the date of grant. The resulting compensation expense is recognized over the requisite service period, which is generally four years. Restricted shares and units granted to employees are valued at the fair market value at the date of grant. The Company amortizes the fair market value to expense over the service period. If the shares are subject to performance objectives, the resulting compensation expense is amortized over the anticipated vesting period and is subject to adjustment based on the actual achievement of objectives.

Net Earnings (Loss) per Common Share Basic earnings (loss) per common share is computed by dividing the net earnings (loss) for the period by the weighted average number of common shares outstanding during the period. In periods where there is net income, we apply the two-class method to calculate basic and diluted net income (loss) per share of common stock, as our Convertible Preferred Stock is a participating security. The two-class method is an earnings allocation formula that treats a participating security as having rights to earnings that otherwise would have been available to common stockholders. In periods where there is a net loss, the two-class method of computing earnings per share does not apply as our Convertible Preferred Stock does not contractually participate in our losses. We compute diluted net income (loss) per common share using net income (loss) as the “control number” in determining whether potential common shares are dilutive, after giving consideration to all potentially dilutive common shares, including stock options, warrants, unvested restricted stock units outstanding during the period and potential issuance of stock upon the conversion of our Convertible Preferred Stock issued and outstanding during the period, except where the effect of such securities would be antidilutive. The following table sets forth the computation of basic and diluted EPS: Schedule of Computation of Basic and Diluted Earnings Per Share <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 100%; margin-right: auto"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49D_20200701__20200930_zHUZsRvF2r72" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_499_20190701__20190930_zHYPqHipMZX3" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20200101__20200930_zU4vkVguWZug" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49A_20190101__20190930_zlZXbbBaAdpf" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three Months Ended September 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Nine Months Ended September 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_408_eus-gaap--NetIncomeLoss_zvvx0xCqvA8c" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 32%; text-align: left">Net income (loss)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">(1,572,972</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">43,748</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">(5,465,609</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">(3,506,790</td><td style="width: 1%; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--PreferredStockDividendsIncomeStatementImpact_iN_di_zp6x67md5Cy2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Cumulative dividend on convertible preferred stock</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(343,101</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(360,647</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,028,950</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,071,351</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_40C_eus-gaap--NetIncomeLossAvailableToCommonStockholdersBasic_zbipRld8PRl7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Net loss attributable to common stockholders</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,916,073</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(316,899</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(6,494,559</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(4,578,141</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_zN6ZhqvZFVqi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Weighted average number of common shares and equivalents:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">74,488,771</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">64,294,153</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">72,004,956</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">61,405,083</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--EarningsPerShareBasic_zuNVT6h70Xsd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Basic EPS</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.03</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.00</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.09</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.07</td><td style="text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--EarningsPerShareDiluted_zAisohauDlrd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Diluted EPS</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.03</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.00</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.09</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.07</td><td style="text-align: left">)</td></tr> </table> The Company did not include any portion of unearned restricted shares, outstanding options, stock appreciation rights, warrants or convertible preferred stock in the calculation of diluted loss per common share because all such securities are anti-dilutive for all periods presented. The application of the two-class method of computing earnings per share under general accounting principles for participating securities is not applicable during these periods because those securities do not contractually participate in its losses. As of September 30, 2020, the Company had <span id="xdx_903_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pii_uShares_c20200101__20200930__us-gaap--AwardTypeAxis__custom--StockOptionsandStockAppreciationRightsMember_z6xWPenyQ9Uh" title="Potential common shares excluded from diluted earnings per share">2,473,241 shares of common stock issuable upon the exercise of outstanding options and stock appreciation rights at a weighted average exercise price of $<span id="xdx_903_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_pii_uUSDPShares_c20200930__us-gaap--AwardTypeAxis__custom--StockOptionsandStockAppreciationRightsMember_zTQFSr8hX2Eg" title="Weighted average exercise price">2.90 per share, <span id="xdx_906_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pii_uShares_c20200101__20200930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zzytBGAA1SOk" title="Potential common shares excluded from diluted earnings per share">15,385 shares of common stock issuable upon the exercise of outstanding warrants at a weighted average exercise price of $<span id="xdx_90F_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pii_uUSDPShares_c20200930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zLN7bRQCFvTc" title="Exercise price of warrants">0.70 per share, <span id="xdx_909_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pii_uShares_c20200101__20200930__us-gaap--StatementClassOfStockAxis__custom--SeriesAConvertiblePreferredStockMember_zS8Z1dJupV3" title="Potential common shares excluded from diluted earnings per share">42,959,259 shares of common stock issuable upon the conversion of Series A Convertible Preferred Stock and accumulated dividends, <span id="xdx_909_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pii_uShares_c20200101__20200930__us-gaap--StatementClassOfStockAxis__custom--SeriesBConvertiblePreferredStockMember_z3N8eFAZQlIh" title="Potential common shares excluded from diluted earnings per share">5,610,121 shares of common stock issuable upon the conversion of Series B Convertible Preferred Stock, and <span id="xdx_90B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iI_pii_uShares_c20200930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zwkTSIZBIiU8" title="Number of unvested restricted share units">1,112,723 shares of unvested restricted share units.

The following table sets forth the computation of basic and diluted EPS: Schedule of Computation of Basic and Diluted Earnings Per Share <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 100%; margin-right: auto"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49D_20200701__20200930_zHUZsRvF2r72" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_499_20190701__20190930_zHYPqHipMZX3" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20200101__20200930_zU4vkVguWZug" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49A_20190101__20190930_zlZXbbBaAdpf" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three Months Ended September 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Nine Months Ended September 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_408_eus-gaap--NetIncomeLoss_zvvx0xCqvA8c" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 32%; text-align: left">Net income (loss)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">(1,572,972</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">43,748</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">(5,465,609</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">(3,506,790</td><td style="width: 1%; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--PreferredStockDividendsIncomeStatementImpact_iN_di_zp6x67md5Cy2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Cumulative dividend on convertible preferred stock</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(343,101</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(360,647</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,028,950</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,071,351</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_40C_eus-gaap--NetIncomeLossAvailableToCommonStockholdersBasic_zbipRld8PRl7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Net loss attributable to common stockholders</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,916,073</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(316,899</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(6,494,559</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(4,578,141</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_zN6ZhqvZFVqi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Weighted average number of common shares and equivalents:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">74,488,771</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">64,294,153</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">72,004,956</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">61,405,083</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--EarningsPerShareBasic_zuNVT6h70Xsd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Basic EPS</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.03</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.00</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.09</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.07</td><td style="text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--EarningsPerShareDiluted_zAisohauDlrd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Diluted EPS</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.03</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.00</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.09</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.07</td><td style="text-align: left">)</td></tr> </table>

-1572972

43748

-5465609

-3506790

343101

360647

1028950

1071351

-1916073

-316899

-6494559

-4578141

74488771

64294153

72004956

61405083

-0.03

-0.00

-0.09

-0.07

-0.03

-0.00

-0.09

-0.07

2473241

2.90

15385

0.70

42959259

5610121

1112723

Recently Issued Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” as part of its effort to reduce the complexity of accounting standards. The ASU is effective for fiscal years beginning after December 15, 2020. The Company does not expect that the adoption of this new guidance will have a material impact on the Company’s financial results. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments” and also issued subsequent amendments to the initial guidance under ASU 2018-19, ASU 2019-04 and ASU 2019-05. The standard modifies the measurement approach for credit losses on financial instruments, including trade receivables, from an incurred loss method to a current expected credit loss method, otherwise known as “CECL.” The standard requires the measurement of expected credit losses to be based on relevant information, including historical experience, current conditions and a forecast that is supportable. The standard is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years; early adoption is permitted. The standard must be adopted by applying a cumulative adjustment to retained earnings. The Company anticipates adopting the standard in the first quarter of 2023, although it does not expect a significant impact to the Company’s financial results.

3. Inventories Inventories consist of the following: Schedule of Inventories <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20200930_zbwq2IGw8s56" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">September 30, 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_499_20191231_zJBtdhHZSlE6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_408_eus-gaap--InventoryRawMaterials_iI_pp0p0_maINzNZ6_zunTG1mjbWHl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Raw materials</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">4,013,147</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">3,063,532</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--InventoryWorkInProcess_iI_pp0p0_maINzNZ6_zqvAyQU4QsOb" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Work in process</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">521,018</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">515,262</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--InventoryFinishedGoods_iI_pp0p0_maINzNZ6_zr0oJM3YUhGc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Finished goods</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,220,520</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,164,187</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--InventoryValuationReserves_iNI_pp0p0_di_msINzNZ6_z3SDGOkmYije" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Reserve for obsolescence</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(3,908,634</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(3,895,451</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_407_eus-gaap--InventoryNet_iTI_pp0p0_mtINzNZ6_zHizxR2U8L9l" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total inventory</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,846,051</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,847,530</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

Inventories consist of the following: Schedule of Inventories <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20200930_zbwq2IGw8s56" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">September 30, 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_499_20191231_zJBtdhHZSlE6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_408_eus-gaap--InventoryRawMaterials_iI_pp0p0_maINzNZ6_zunTG1mjbWHl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Raw materials</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">4,013,147</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">3,063,532</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--InventoryWorkInProcess_iI_pp0p0_maINzNZ6_zqvAyQU4QsOb" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Work in process</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">521,018</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">515,262</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--InventoryFinishedGoods_iI_pp0p0_maINzNZ6_zr0oJM3YUhGc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Finished goods</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,220,520</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,164,187</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--InventoryValuationReserves_iNI_pp0p0_di_msINzNZ6_z3SDGOkmYije" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Reserve for obsolescence</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(3,908,634</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(3,895,451</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_407_eus-gaap--InventoryNet_iTI_pp0p0_mtINzNZ6_zHizxR2U8L9l" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total inventory</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,846,051</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,847,530</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

4013147

3063532

521018

515262

2220520

2164187

3908634

3895451

2846051

1847530

4. Prepaid Expenses and Other Assets <p id="xdx_89A_eus-gaap--DeferredCostsCapitalizedPrepaidAndOtherAssetsDisclosureTextBlock_z6FzKu3K8yCj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">Prepaid expenses and other assets consist of the following: Schedule of Prepaid Expenses and Other Assets <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49F_20200930_zJVOTOnjXsD8" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">September 30, 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_493_20191231_zZ6xTcSayLF4" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_400_eus-gaap--PrepaidExpenseCurrentAndNoncurrent_iI_pp0p0_maPEAOAz4YQ_zqVXjOxwmpe7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Prepaid expenses</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,060,036</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">640,252</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_403_ecustom--PrepaidCommissionsCurrentAndNoncurrent_iI_pp0p0_maPEAOAz4YQ_znGqAUbXqTYg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Prepaid commissions</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">296,488</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">336,594</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--DepositsAssets_iI_pp0p0_maPEAOAz4YQ_zVxfuuf07gkg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Deposits</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">588,345</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">712,179</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--OtherAssets_iI_pp0p0_maPEAOAz4YQ_ztrX354ZRigd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Other assets</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">86,592</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--PrepaidExpenseAndOtherAssets_iTI_pp0p0_mtPEAOAz4YQ_z3FUq3nmwPSe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Total prepaid expenses and other assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,031,461</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,689,025</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--PrepaidExpenseAndOtherAssetsNoncurrent_iNI_pp0p0_di_zbOyKDDDEYn6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Less: Noncurrent prepaid expenses and other assets</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(256,669</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(218,103</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_402_eus-gaap--PrepaidExpenseAndOtherAssetsCurrent_iI_pp0p0_zsVg5FTEJMul" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Total current prepaid expenses and other assets</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,774,792</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,470,922</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

<p id="xdx_89A_eus-gaap--DeferredCostsCapitalizedPrepaidAndOtherAssetsDisclosureTextBlock_z6FzKu3K8yCj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">Prepaid expenses and other assets consist of the following: Schedule of Prepaid Expenses and Other Assets <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49F_20200930_zJVOTOnjXsD8" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">September 30, 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_493_20191231_zZ6xTcSayLF4" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_400_eus-gaap--PrepaidExpenseCurrentAndNoncurrent_iI_pp0p0_maPEAOAz4YQ_zqVXjOxwmpe7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Prepaid expenses</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,060,036</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">640,252</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_403_ecustom--PrepaidCommissionsCurrentAndNoncurrent_iI_pp0p0_maPEAOAz4YQ_znGqAUbXqTYg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Prepaid commissions</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">296,488</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">336,594</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--DepositsAssets_iI_pp0p0_maPEAOAz4YQ_zVxfuuf07gkg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Deposits</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">588,345</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">712,179</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--OtherAssets_iI_pp0p0_maPEAOAz4YQ_ztrX354ZRigd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Other assets</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">86,592</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--PrepaidExpenseAndOtherAssets_iTI_pp0p0_mtPEAOAz4YQ_z3FUq3nmwPSe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Total prepaid expenses and other assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,031,461</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,689,025</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--PrepaidExpenseAndOtherAssetsNoncurrent_iNI_pp0p0_di_zbOyKDDDEYn6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Less: Noncurrent prepaid expenses and other assets</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(256,669</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(218,103</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_402_eus-gaap--PrepaidExpenseAndOtherAssetsCurrent_iI_pp0p0_zsVg5FTEJMul" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Total current prepaid expenses and other assets</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,774,792</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,470,922</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

1060036

640252

296488 336594

588345

712179

86592

2031461

1689025

256669

218103

1774792

1470922

5. Property and Equipment Schedule of Property and Equipment <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">September 30, 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Equipment</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--PropertyPlantAndEquipmentGross_c20200930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--EquipmentMember_pp0p0" style="width: 16%; text-align: right" title="Gross property and equipment">6,556,769</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--PropertyPlantAndEquipmentGross_c20191231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--EquipmentMember_pp0p0" style="width: 16%; text-align: right" title="Gross property and equipment">6,485,873</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Leasehold improvements</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_985_eus-gaap--PropertyPlantAndEquipmentGross_c20200930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_pp0p0" style="border-bottom: Black 1.5pt solid; text-align: right" title="Gross property and equipment">2,338,441</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_980_eus-gaap--PropertyPlantAndEquipmentGross_c20191231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_pp0p0" style="border-bottom: Black 1.5pt solid; text-align: right" title="Gross property and equipment">2,338,441</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--PropertyPlantAndEquipmentGross_c20200930_pp0p0" style="text-align: right" title="Gross property and equipment">8,895,210</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--PropertyPlantAndEquipmentGross_c20191231_pp0p0" style="text-align: right" title="Gross property and equipment">8,824,314</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Less: Accumulated depreciation</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_pp0p0_di_c20200930_zOKgHBn9n81d" style="border-bottom: Black 1.5pt solid; text-align: right" title="Less: Accumulated depreciation">(8,660,352</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_pp0p0_di_c20191231_zRJRyU5QlZG6" style="border-bottom: Black 1.5pt solid; text-align: right" title="Less: Accumulated depreciation">(8,573,871</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Net property and equipment</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98B_eus-gaap--PropertyPlantAndEquipmentNet_iI_pp0p0_c20200930_zrtwdgvyJ96c" style="border-bottom: Black 2.5pt double; text-align: right" title="Net property and equipment">234,858</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98D_eus-gaap--PropertyPlantAndEquipmentNet_c20191231_pp0p0" style="border-bottom: Black 2.5pt double; text-align: right" title="Net property and equipment">250,443</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

Schedule of Property and Equipment <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">September 30, 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Equipment</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--PropertyPlantAndEquipmentGross_c20200930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--EquipmentMember_pp0p0" style="width: 16%; text-align: right" title="Gross property and equipment">6,556,769</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--PropertyPlantAndEquipmentGross_c20191231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--EquipmentMember_pp0p0" style="width: 16%; text-align: right" title="Gross property and equipment">6,485,873</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Leasehold improvements</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_985_eus-gaap--PropertyPlantAndEquipmentGross_c20200930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_pp0p0" style="border-bottom: Black 1.5pt solid; text-align: right" title="Gross property and equipment">2,338,441</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_980_eus-gaap--PropertyPlantAndEquipmentGross_c20191231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_pp0p0" style="border-bottom: Black 1.5pt solid; text-align: right" title="Gross property and equipment">2,338,441</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--PropertyPlantAndEquipmentGross_c20200930_pp0p0" style="text-align: right" title="Gross property and equipment">8,895,210</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--PropertyPlantAndEquipmentGross_c20191231_pp0p0" style="text-align: right" title="Gross property and equipment">8,824,314</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Less: Accumulated depreciation</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_pp0p0_di_c20200930_zOKgHBn9n81d" style="border-bottom: Black 1.5pt solid; text-align: right" title="Less: Accumulated depreciation">(8,660,352</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_pp0p0_di_c20191231_zRJRyU5QlZG6" style="border-bottom: Black 1.5pt solid; text-align: right" title="Less: Accumulated depreciation">(8,573,871</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Net property and equipment</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98B_eus-gaap--PropertyPlantAndEquipmentNet_iI_pp0p0_c20200930_zrtwdgvyJ96c" style="border-bottom: Black 2.5pt double; text-align: right" title="Net property and equipment">234,858</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98D_eus-gaap--PropertyPlantAndEquipmentNet_c20191231_pp0p0" style="border-bottom: Black 2.5pt double; text-align: right" title="Net property and equipment">250,443</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

6556769

6485873

2338441

8895210

8824314

8660352

8573871

234858

250443

6. Leases A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. On January 1, 2019, the Company adopted ASU No. 2016-02 “Leases” (Topic 842) and all subsequent ASUs that modified Topic 842. The Company determines if an arrangement contains a lease at inception. For the Company, Accounting Standards Codification (“ASC 842”) primarily affected the accounting treatment for operating lease agreements in which the Company is the lessee. The Company leases its facilities under operating leases, which were previously not recognized on the Company’s balance sheets. With the adoption of ASC 842, operating lease agreements are required to be recognized on the balance sheet as a right-of-use (“ROU”) asset and a corresponding lease liability. These leases do not have significant rent escalation holidays, concessions, leasehold improvement incentives, or other build-out clauses. Further, the leases do not contain contingent rent provisions. Many of our leases include both lease (i.e., fixed payments including rent, taxes, and insurance costs) and non-lease components (i.e., common-area or other maintenance costs) which are accounted for as a single lease component as we have elected the practical expedient to group lease and non-lease components for all leases. A portion of our principal executive office is subleased to a third party through 2021. The sublease does not have significant rent escalation holidays, concessions, leasehold improvement incentives, or other build-out clauses. In addition, the sublease does not contain contingent rent provisions nor are there options to extend or terminate the sublease. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. The Company elected not to include short-term leases (i.e. leases with initial terms of twelve months or less) on the balance sheet. The calculated amounts of the ROU assets and lease liabilities are impacted by the length of the lease term and the discount rate used to calculate the present value of the minimum lease payments. ASC 842 requires the use of the discount rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception. At September 30, 2020, the weighted average discount rate for operating leases was 9.0% and the weighted average remaining lease term for operating lease term is 1.25 years. The following table represents lease costs and other lease information. Schedule of Lease Costs and Other Lease Information <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 100%; margin-right: auto"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_496_20200701__20200930_z1s9uyFBTjJ3" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49B_20190701__20190930_z7n7jiKITbUi" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_494_20200101__20200930_zZ89GVFIzcHg" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_499_20190101__20190930_z7eqQtlpQB63" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three Months Ended September 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Nine Months Ended September 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_402_eus-gaap--OperatingLeaseCost_maLCzisz_zTQhHzdcWySi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 31%; text-align: left">Operating lease cost</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">585,588</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">585,588</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">1,756,758</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">1,756,759</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--ShortTermLeaseCost_maLCzisz_zK6euRbP3C38" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Short-term lease cost</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">19,084</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">19,671</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">53,858</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">58,311</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--SubleaseIncome_iN_pp0p0_di_msLCzisz_zBaddKLOcDOh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Sublease income</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(246,530</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(246,532</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(739,590</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(739,593</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_406_eus-gaap--LeaseCost_iT_pp0p0_mtLCzisz_zQ9Rvxk5HiE9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total net lease cost</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">358,142</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">358,727</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,071,026</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,075,477</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--OperatingLeasePayments_i_pp0p0" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Cash paid within operating cash flows</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">634,918</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">612,533</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,860,165</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,840,023</td><td style="text-align: left"> </td></tr> </table> The initial recognition of the right of use assets in 2019 was $<span id="xdx_904_eus-gaap--OperatingLeaseRightOfUseAsset_iI_pn5n6_c20190102__us-gaap--AdjustmentsForNewAccountingPronouncementsAxis__us-gaap--AccountingStandardsUpdate201602Member_zUlruuY8Fk3i" title="Right of use assets">6.2 million. Variable lease costs consist primarily of taxes, insurance, and common area or other maintenance costs for our leased facilities and equipment which are paid based on actual costs incurred. Future minimum payments for operating leases with initial or remaining terms of one year or more as of September 30, 2020, excluding sublease income, were as follows: Schedule of Future Minimum Operating Lease Payments <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_490_20200930_zPDQehW6ugR6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">September 30, 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_404_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear_iI_pp0p0_maLOLLPzHaE_zEfYAU79md3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: left">2020</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 20%; text-align: right">583,516</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pp0p0_maLOLLPzHaE_zvPT4VCvYuSj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">2021</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,382,660</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_pp0p0_mtLOLLPzHaE_z6DrCbWassek" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Total lease payments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,966,176</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_pp0p0_di_zdTeMTHavdZi" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 20pt; text-align: left; padding-bottom: 1.5pt">Less: Interest</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(150,204</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_401_eus-gaap--OperatingLeaseLiability_iI_pp0p0_z4DJpnBEvbNf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 2.5pt">Present value of lease liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,815,972</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The undiscounted future cash flows to be received under the sublease are $<span id="xdx_90C_ecustom--LesseeOperatingSubLeaseReceivableOnUndiscountedExcessAmountReminderofFiscalYear_iI_pn5n6_c20200930_zGERZdojPzIb" title="Undiscounted future cash flows to be received under the sublease 2020">0.2 million in 2020 and $1.0 million in 2021.

0.090

P1Y3M

The following table represents lease costs and other lease information. Schedule of Lease Costs and Other Lease Information <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 100%; margin-right: auto"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_496_20200701__20200930_z1s9uyFBTjJ3" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49B_20190701__20190930_z7n7jiKITbUi" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_494_20200101__20200930_zZ89GVFIzcHg" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_499_20190101__20190930_z7eqQtlpQB63" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three Months Ended September 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Nine Months Ended September 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_402_eus-gaap--OperatingLeaseCost_maLCzisz_zTQhHzdcWySi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 31%; text-align: left">Operating lease cost</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">585,588</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">585,588</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">1,756,758</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">1,756,759</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--ShortTermLeaseCost_maLCzisz_zK6euRbP3C38" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Short-term lease cost</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">19,084</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">19,671</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">53,858</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">58,311</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--SubleaseIncome_iN_pp0p0_di_msLCzisz_zBaddKLOcDOh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Sublease income</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(246,530</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(246,532</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(739,590</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(739,593</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_406_eus-gaap--LeaseCost_iT_pp0p0_mtLCzisz_zQ9Rvxk5HiE9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total net lease cost</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">358,142</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">358,727</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,071,026</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,075,477</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--OperatingLeasePayments_i_pp0p0" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Cash paid within operating cash flows</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">634,918</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">612,533</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,860,165</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,840,023</td><td style="text-align: left"> </td></tr> </table>

585588

1756758

1756759

19084

19671

53858

58311

246530

246532

739590

739593

358142

358727

1071026

1075477

634918

612533

1860165

1840023

6200000

Future minimum payments for operating leases with initial or remaining terms of one year or more as of September 30, 2020, excluding sublease income, were as follows: Schedule of Future Minimum Operating Lease Payments <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_490_20200930_zPDQehW6ugR6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">September 30, 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_404_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear_iI_pp0p0_maLOLLPzHaE_zEfYAU79md3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: left">2020</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 20%; text-align: right">583,516</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pp0p0_maLOLLPzHaE_zvPT4VCvYuSj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">2021</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,382,660</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_pp0p0_mtLOLLPzHaE_z6DrCbWassek" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Total lease payments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,966,176</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_pp0p0_di_zdTeMTHavdZi" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 20pt; text-align: left; padding-bottom: 1.5pt">Less: Interest</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(150,204</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_401_eus-gaap--OperatingLeaseLiability_iI_pp0p0_z4DJpnBEvbNf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 2.5pt">Present value of lease liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,815,972</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

583516

2382660

2966176

150204

2815972

200000 1000000

7. Accrued Liabilities Accrued liabilities consist of the following: Schedule of Accrued Liabilities <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_493_20200930_zpLsYFKGoAI5" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">September 30, 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_497_20191231_zJu0oMIsW21f" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40F_eus-gaap--EmployeeRelatedLiabilitiesCurrentAndNoncurrent_iI_pp0p0_maALCANze2l_zSYKR6qr2Pwd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Accrued salaries, bonus, and benefits</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,773,314</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,421,150</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_405_ecustom--AccruedLicensesAndMaintenanceFeesCurrentAndNoncurrent_iI_pp0p0_maALCANze2l_zGvd8YPEoG1g" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accrued licenses and maintenance fees</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">483,879</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">483,879</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--ProductWarrantyAccrual_iI_pp0p0_maALCANze2l_zXewLVer5Mwj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Accrued warranties</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">180,047</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">141,697</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--AccruedIncomeTaxes_iI_pp0p0_maALCANze2l_zH5nh5PD2xC5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accrued taxes</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">195,553</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">206,232</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--AccruedProfessionalFeesCurrentAndNoncurrent_iI_pp0p0_maALCANze2l_zGPMwhuDXFqa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Accrued professional services</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">244,203</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">383,342</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--OtherAccruedLiabilitiesCurrentAndNoncurrent_iI_pp0p0_maALCANze2l_zyJkaggsqXzb" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Other</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">334,651</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">340,321</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--AccruedLiabilitiesCurrentAndNoncurrent_iTI_pp0p0_mtALCANze2l_z8Kw02IcbWD4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total accrued liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,211,647</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,976,621</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--OtherAccruedLiabilitiesNoncurrent_iNI_pp0p0_di_zPoWOvJleDC7" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Less: Long term accrued liabilities</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(255,517</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(255,517</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_40E_eus-gaap--AccruedLiabilitiesCurrent_iI_pp0p0_zrU36UTJlmqh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total current accrued liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,956,130</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,721,104</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

Accrued liabilities consist of the following: Schedule of Accrued Liabilities <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_493_20200930_zpLsYFKGoAI5" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">September 30, 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_497_20191231_zJu0oMIsW21f" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40F_eus-gaap--EmployeeRelatedLiabilitiesCurrentAndNoncurrent_iI_pp0p0_maALCANze2l_zSYKR6qr2Pwd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Accrued salaries, bonus, and benefits</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,773,314</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,421,150</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_405_ecustom--AccruedLicensesAndMaintenanceFeesCurrentAndNoncurrent_iI_pp0p0_maALCANze2l_zGvd8YPEoG1g" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accrued licenses and maintenance fees</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">483,879</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">483,879</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--ProductWarrantyAccrual_iI_pp0p0_maALCANze2l_zXewLVer5Mwj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Accrued warranties</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">180,047</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">141,697</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--AccruedIncomeTaxes_iI_pp0p0_maALCANze2l_zH5nh5PD2xC5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accrued taxes</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">195,553</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">206,232</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--AccruedProfessionalFeesCurrentAndNoncurrent_iI_pp0p0_maALCANze2l_zGPMwhuDXFqa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Accrued professional services</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">244,203</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">383,342</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--OtherAccruedLiabilitiesCurrentAndNoncurrent_iI_pp0p0_maALCANze2l_zyJkaggsqXzb" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Other</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">334,651</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">340,321</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--AccruedLiabilitiesCurrentAndNoncurrent_iTI_pp0p0_mtALCANze2l_z8Kw02IcbWD4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total accrued liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,211,647</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,976,621</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--OtherAccruedLiabilitiesNoncurrent_iNI_pp0p0_di_zPoWOvJleDC7" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Less: Long term accrued liabilities</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(255,517</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(255,517</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_40E_eus-gaap--AccruedLiabilitiesCurrent_iI_pp0p0_zrU36UTJlmqh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total current accrued liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,956,130</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,721,104</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

1773314

1421150

483879 483879

180047

141697

195553

206232

244203

383342

334651

340321

3211647

2976621

255517

2956130

2721104

8. Debt and Credit Facilities The Company had a working capital line of credit with its primary lender, Silicon Valley Bank that matured on <span id="xdx_90E_eus-gaap--LineOfCreditFacilityExpirationDate1_dd_c20200101__20200930__us-gaap--CreditFacilityAxis__us-gaap--RevolvingCreditFacilityMember__us-gaap--IncomeTaxAuthorityAxis__custom--PrimaryLenderMember_zGy4Y4si6RIi">June 30, 2020. The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted on March 27, 2020 in the United States. Among the provisions contained in the CARES Act is the creation of the Paycheck Protection Program that provides for Small Business Administration (“SBA”) Section 7(a) loans for qualified small businesses. The loan can be forgiven as long as the funds are used for payroll related expenses as well as rent and utilities paid during the twenty four week period from the date of the loan and as long as certain headcount levels are maintained. On April 10, 2020, the Company was informed by its lender, Midwest BankCentre (the “Bank”), that the Bank received approval from the SBA to fund the Company’s request for a loan under the SBA’s Paycheck Protection Program (“PPP Loan”). Per the terms of the PPP Loan, the Company received total proceeds of $2,158,310 from the Bank on April 20, 2020. In accordance with the loan forgiveness requirements of the CARES Act, the Company used the full proceeds from the PPP Loan primarily for payroll costs, rent and utilities. The Company anticipates that the loan will be substantially forgiven. To the extent it is not forgiven, the Company would be required to repay that portion beginning in August 2021 with a final installment in April 2022. Interest would be assessed on the amount of the loan not forgiven at a rate of <span id="xdx_907_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pii_dp_c20200420__us-gaap--PlanNameAxis__custom--PaycheckProtectionProgramMember_zS2bziqTmCk8" title="Debt Instrument, Interest Rate, Stated Percentage">1% per annum beginning on the date of the loan, April 20, 2020. In accordance with general accounting principles for fair value measurement, the Company’s debt was measured at fair value (Level 2) as of September 30, 2020. As of September 30, 2020 the fair value of the debt approximated the carrying value of the debt.

2020-06-30

2158310

In accordance with the loan forgiveness requirements of the CARES Act, the Company used the full proceeds from the PPP Loan primarily for payroll costs, rent and utilities.

0.01

9. Convertible Preferred Stock and Stockholders’ Equity The holders of common stock are entitled to one vote for each share held and to receive dividends whenever funds are legally available and when declared by the Board of Directors subject to the rights of holders of all classes of stock having priority rights as dividends. No dividends have been declared or paid as of September 30, 2020. 2020 Equity Financing On May 25, 2020, the Company entered into a Securities Purchase Agreement with certain accredited investors, whereby it, in a direct registered offering, agreed to issue and sell to the investors an aggregate of <span id="xdx_90B_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_c20200524__20200525__us-gaap--SubsidiarySaleOfStockAxis__custom--DirectRegisteredOfferingMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_pii">3,658,537 shares of the Company’s common stock, $<span id="xdx_906_eus-gaap--CommonStockParOrStatedValuePerShare_iI_pii_uUSDPShares_c20200525__us-gaap--SubsidiarySaleOfStockAxis__custom--DirectRegisteredOfferingMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zNz13sm8IwU3">0.001 par value per share, at a price of $<span id="xdx_901_eus-gaap--SaleOfStockPricePerShare_iI_pii_uUSDPShares_c20200525__us-gaap--SubsidiarySaleOfStockAxis__custom--DirectRegisteredOfferingMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zzXvu7RP7HEg">4.10 per share. The Company received net proceeds of approximately $15.0 million, after offering expenses. 2019 Equity Financing and Series B Convertible Preferred Stock On August 7, 2019, the Company entered into a Securities Purchase Agreement with certain institutional and other accredited investors, whereby it, in a private placement, agreed to issue and sell to the investors an aggregate of <span id="xdx_908_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_c20190806__20190807__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--PrivatePlacementMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_pii">6,585,000 shares of the Company’s common stock, $<span id="xdx_900_eus-gaap--CommonStockParOrStatedValuePerShare_iI_pii_uUSDPShares_c20190807__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--PrivatePlacementMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_z6bg7dTZSiig">0.001 par value per share, at a price of $<span id="xdx_900_eus-gaap--SaleOfStockPricePerShare_iI_pii_uUSDPShares_c20190807__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--PrivatePlacementMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zNFFTvKsJHW2">2.05 per share and <span id="xdx_90F_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_c20190806__20190807__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--PrivatePlacementMember__us-gaap--StatementEquityComponentsAxis__custom--SeriesBConvertiblePreferredStockMember_pii">5,610,121 shares of the Company’s Series B Convertible Preferred Stock, $<span id="xdx_900_eus-gaap--PreferredStockParOrStatedValuePerShare_iI_pii_uUSDPShares_c20190807__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--PrivatePlacementMember__us-gaap--StatementEquityComponentsAxis__custom--SeriesBConvertiblePreferredStockMember_zBj2kzLS1wil">0.001 par value per share which are convertible into shares of the Company’s Common Stock, at a price of $<span id="xdx_906_ecustom--ConvertibleSecuritiesConversionPricePerShare_iI_pii_uUSDPShares_c20190807__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--PrivatePlacementMember__us-gaap--StatementEquityComponentsAxis__custom--SeriesBConvertiblePreferredStockMember_z2azNggkW48j">2.05 per share. The Series B Preferred Stock, which is a Common Stock equivalent but non-voting and with a blocker on conversion if the holder would exceed a specified threshold of voting security ownership, is convertible into Common Stock on a one-for-one basis, subject to adjustment for events such as stock splits, combinations and the like as provided in the Purchase Agreement. The Series B Convertible Preferred Stock is reported in the stockholders’ equity section of the Company’s balance sheet. The Company received net proceeds of approximately $23.1 million, after offering expenses. Series A Convertible Preferred Stock and Warrants In September 2016, the Company issued 24,000 shares of Series A Convertible Preferred Stock, par value $0.001 with a stated value of $1,000 per share which are convertible into shares of the Company’s common stock at an initial conversion rate of $0.65 per share and (ii) warrants to purchase an aggregate of 36,923,078 shares of common stock. The convertible preferred shares are entitled to vote on an as-converted basis with the common stock, subject to specified beneficial ownership issuance limitations. The convertible preferred shares bear dividends at a rate of six percent (6%) per annum, which are cumulative and accrue daily from the date of issuance on the $1,000 stated value. Such dividends will not be paid in cash except in connection with any liquidation, dissolution or winding up of the Company or any redemption of the convertible preferred shares. Each holder of convertible preferred shares has the right to require us to redeem such holder’s convertible preferred shares upon the occurrence of specified events, which include certain business combinations, the sale of all or substantially all of the Company’s assets, or the sale of more than <span id="xdx_90F_ecustom--PreferredStockRedemptionTriggeringEventPercentOfCommonStockSoldThreshold_pii_dp_uPercent_c20160901__20160930__us-gaap--StatementClassOfStockAxis__custom--SeriesAConvertiblePreferredStockMember_zSDbkEFomrjl">50% of the outstanding shares of the Company’s common stock. In addition, the Company has the right to redeem the convertible preferred shares in the event of a defined change of control. The convertible preferred shares rank senior to our common stock as to distributions and payments upon the liquidation, dissolution, and winding up of the Company. Since the convertible preferred shares are subject to conditions for redemption that are outside the Company’s control, the convertible preferred shares are presently reported in the mezzanine section of the balance sheet. The warrants issued in conjunction with the convertible preferred stock (the “SPA Warrants”) have an exercise price equal to $0.70 per share subject to adjustments as provided under the terms of the warrants. The warrants are exercisable through September 29, 2021, subject to specified beneficial ownership issuance limitations. Stock Award Plans The Company has various stock plans that permit the Company to provide incentives to employees and directors of the Company in the form of equity compensation. In July 2012, the Compensation Committee of the Board of Directors adopted the 2012 Stock Incentive Plan (the “Plan”) which was subsequently approved by the Company’s shareholders. This plan replaced the 2002 Stock Incentive Plan which expired on March 25, 2012. At September 30, 2020, the Company had 2,043,108 remaining shares of the Company’s common stock to provide for current and future grants under its various equity plans. At September 30, 2020, the total compensation cost related to options, stock appreciation rights, and non-vested stock granted to employees under the Company’s stock award plans but not yet recognized was approximately $3.6 million. This cost will be amortized over a period of up to four years over the underlying estimated service periods and will be adjusted for subsequent changes in actual forfeitures and anticipated vesting periods. <p id="xdx_895_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsAndStockAppreciationRightsAwardActivityTableTextBlock_z4x31jDK9tIl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">A summary of the option and stock appreciation rights activity for the nine month period ended September 30, 2020 is as follows: Summary of Option and Stock Appreciation Rights Activity <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Number of Options/SARs</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="4" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Range of Exercise Price</td> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Weighted Average Exercise Price per Share</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 38%">Outstanding, December 31, 2019</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pii_c20200101__20200930_zrao9aJcFvya" style="width: 16%; text-align: right" title="Number of Options/SARs, Outstanding, Beginning Balance">1,857,599</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1_iS_c20200101__20200930__srt--RangeAxis__srt--MinimumMember_zlCUvO0BRl18" style="width: 15%; text-align: right" title="Range of Exercise Price, Begining Balance">0.74</td><td style="width: 2%; text-align: right">-</td> <td id="xdx_98C_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1_iS_c20200101__20200930__srt--RangeAxis__srt--MaximumMember_z7pwapofgQS3" style="text-align: right; width: 4%">$36.20</td> <td style="width: 1%"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pii_uUSDPShares_c20191231_zz2tNrQAjwLh" style="width: 16%; text-align: right" title="Weighted Average Exercise Price per Share, Outstanding, Beginning Balance">2.22</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pii_c20200101__20200930_zUs8w1JZpqu9" style="text-align: right" title="Number of Options/SARs, Outstanding, Beginning Balance">897,250</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98B_ecustom--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceGranted_c20200101__20200930__srt--RangeAxis__srt--MinimumMember_zhDiWvA1bQMc" style="text-align: right" title="Range of Exercise Price, Granted">3.98</td><td style="text-align: right">-</td> <td id="xdx_98C_ecustom--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceGranted_c20200101__20200930__srt--RangeAxis__srt--MaximumMember_z8iqNTyHKbrk" style="text-align: right">$5.13</td> <td> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pii_uUSDPShares_c20200101__20200930_zafCPOKD6mXj" style="text-align: right" title="Weighted Average Exercise Price per Share, Outstanding, Beginning Balance">4.52</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_iN_pii_di_c20200101__20200930_zIu7wY2cPfd3" style="text-align: right" title="Number of Options/SARs, Outstanding, Beginning Balance">(124,578</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_987_ecustom--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceExercised_c20200101__20200930__srt--RangeAxis__srt--MinimumMember_zGpeDUcJyaXk" style="text-align: right" title="Range of Exercise Price, Exercised">0.74</td><td style="text-align: right">-</td> <td id="xdx_98A_ecustom--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceExercised_c20200101__20200930__srt--RangeAxis__srt--MaximumMember_zFi0M5lM8djb" style="text-align: right">$2.15</td> <td> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pii_uUSDPShares_c20200101__20200930_zxuvJx74fshg" style="text-align: right" title="Weighted Average Exercise Price per Share, Outstanding, Beginning Balance">1.25</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Forfeited</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_iN_pii_di_c20200101__20200930_zrccnCDuPR04" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number of Options/SARs, Outstanding, Beginning Balance">(157,030</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left">$</td><td id="xdx_98D_ecustom--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceForfeited_c20200101__20200930__srt--RangeAxis__srt--MinimumMember_zvyPwCnpDoTc" style="padding-bottom: 1.5pt; text-align: right" title="Range of Exercise Price, Forfeited">0.74</td><td style="padding-bottom: 1.5pt; text-align: right">-</td> <td id="xdx_980_ecustom--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceForfeited_c20200101__20200930__srt--RangeAxis__srt--MaximumMember_zvj7qdEMeZ4i" style="text-align: right">$36.20</td> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice_pii_uUSDPShares_c20200101__20200930_zbgQdbZLXHR7" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted Average Exercise Price per Share, Outstanding, Beginning Balance">5.39</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Outstanding, September 30, 2020</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_pii_c20200101__20200930_zyDM0UyUb0Cf" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of Options/SARs, Outstanding, Beginning Balance">2,473,241</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left">$</td><td id="xdx_986_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1_iE_c20200101__20200930__srt--RangeAxis__srt--MinimumMember_zth3h6CIGm4c" style="padding-bottom: 2.5pt; text-align: right" title="Range of Exercise Price, Ending Balance">0.74</td><td style="padding-bottom: 2.5pt; text-align: right">-</td> <td id="xdx_987_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1_iE_c20200101__20200930__srt--RangeAxis__srt--MaximumMember_zqolj648p1be" style="text-align: right">$35.20</td> <td> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_pii_uUSDPShares_c20200930_zr0CEz8de7R5" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Exercise Price per Share, Outstanding, Beginning Balance">2.90</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_899_eus-gaap--ScheduleOfShareBasedCompensationRestrictedStockUnitsAwardActivityTableTextBlock_zARiBWrbMvd9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">A summary of the restricted stock unit activity for the nine month period ended September 30, 2020 is as follows: Summary of Restricted Stock Unit Activity <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Number of Restricted Stock Units</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Weighted Average Grant Date Fair Value per Unit</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%">Outstanding, December 31, 2019</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iS_pii_c20191231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zATJ6Wn5B4lb" style="width: 18%; text-align: right" title="Number of Restricted Stock Units, Outstanding, Beginning">840,712</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iS_pii_uUSDPShares_c20191231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zZYO1IaXmGte" style="width: 18%; text-align: right" title="Weighted Average Grant Date Fair Value Per Unit, Outstanding, Beginning">1.28</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pii_c20200101__20200930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zUvpF2eNPjn8" style="text-align: right" title="Number of Restricted Stock Units, Granted">420,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pii_uUSDPShares_c20200101__20200930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zcKdEDfLtMpl" style="text-align: right" title="Weighted Average Grant Date Fair Value Per Unit, Granted">4.82</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Vested</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_iN_pii_di_c20200101__20200930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zpCAHYnNcDO1" style="text-align: right" title="Number of Restricted Stock Units, Vested">(147,739</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue_pii_uUSDPShares_c20200101__20200930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zWvwtQYeTPJ7" style="text-align: right" title="Weighted Average Grant Date Fair Value Per Unit, Vested">2.45</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Forfeited</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_iN_pii_di_c20200101__20200930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zJ2qLrTMET6d" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number of Restricted Stock Units, Forfeited">(250</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue_pii_uUSDPShares_c20200101__20200930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zOSdB19zqnOa" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted Average Grant Date Fair Value Per Unit, Forfeited">0.78</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Outstanding, September 30, 2020</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iE_pii_c20200930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z27r3voo1xy4" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of Restricted Stock Units, Outstanding, Ending">1,112,723</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iE_pii_uUSDPShares_c20200930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zs5Edrr3DYh6" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Grant Date Fair Value Per Unit, Outstanding, Ending">2.46</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

one

3658537

0.001

4.10

15000000

6585000

0.001

2.05

5610121

0.001

2.05

23100000

24000 0.001

1000

0.65

36923078

0.06

0.50

0.70

2021-09-29

2043108

3600000

four years

<p id="xdx_895_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsAndStockAppreciationRightsAwardActivityTableTextBlock_z4x31jDK9tIl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">A summary of the option and stock appreciation rights activity for the nine month period ended September 30, 2020 is as follows: Summary of Option and Stock Appreciation Rights Activity <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Number of Options/SARs</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="4" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Range of Exercise Price</td> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Weighted Average Exercise Price per Share</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 38%">Outstanding, December 31, 2019</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pii_c20200101__20200930_zrao9aJcFvya" style="width: 16%; text-align: right" title="Number of Options/SARs, Outstanding, Beginning Balance">1,857,599</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1_iS_c20200101__20200930__srt--RangeAxis__srt--MinimumMember_zlCUvO0BRl18" style="width: 15%; text-align: right" title="Range of Exercise Price, Begining Balance">0.74</td><td style="width: 2%; text-align: right">-</td> <td id="xdx_98C_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1_iS_c20200101__20200930__srt--RangeAxis__srt--MaximumMember_z7pwapofgQS3" style="text-align: right; width: 4%">$36.20</td> <td style="width: 1%"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pii_uUSDPShares_c20191231_zz2tNrQAjwLh" style="width: 16%; text-align: right" title="Weighted Average Exercise Price per Share, Outstanding, Beginning Balance">2.22</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pii_c20200101__20200930_zUs8w1JZpqu9" style="text-align: right" title="Number of Options/SARs, Outstanding, Beginning Balance">897,250</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98B_ecustom--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceGranted_c20200101__20200930__srt--RangeAxis__srt--MinimumMember_zhDiWvA1bQMc" style="text-align: right" title="Range of Exercise Price, Granted">3.98</td><td style="text-align: right">-</td> <td id="xdx_98C_ecustom--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceGranted_c20200101__20200930__srt--RangeAxis__srt--MaximumMember_z8iqNTyHKbrk" style="text-align: right">$5.13</td> <td> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pii_uUSDPShares_c20200101__20200930_zafCPOKD6mXj" style="text-align: right" title="Weighted Average Exercise Price per Share, Outstanding, Beginning Balance">4.52</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_iN_pii_di_c20200101__20200930_zIu7wY2cPfd3" style="text-align: right" title="Number of Options/SARs, Outstanding, Beginning Balance">(124,578</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_987_ecustom--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceExercised_c20200101__20200930__srt--RangeAxis__srt--MinimumMember_zGpeDUcJyaXk" style="text-align: right" title="Range of Exercise Price, Exercised">0.74</td><td style="text-align: right">-</td> <td id="xdx_98A_ecustom--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceExercised_c20200101__20200930__srt--RangeAxis__srt--MaximumMember_zFi0M5lM8djb" style="text-align: right">$2.15</td> <td> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pii_uUSDPShares_c20200101__20200930_zxuvJx74fshg" style="text-align: right" title="Weighted Average Exercise Price per Share, Outstanding, Beginning Balance">1.25</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Forfeited</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_iN_pii_di_c20200101__20200930_zrccnCDuPR04" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number of Options/SARs, Outstanding, Beginning Balance">(157,030</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left">$</td><td id="xdx_98D_ecustom--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceForfeited_c20200101__20200930__srt--RangeAxis__srt--MinimumMember_zvyPwCnpDoTc" style="padding-bottom: 1.5pt; text-align: right" title="Range of Exercise Price, Forfeited">0.74</td><td style="padding-bottom: 1.5pt; text-align: right">-</td> <td id="xdx_980_ecustom--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceForfeited_c20200101__20200930__srt--RangeAxis__srt--MaximumMember_zvj7qdEMeZ4i" style="text-align: right">$36.20</td> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice_pii_uUSDPShares_c20200101__20200930_zbgQdbZLXHR7" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted Average Exercise Price per Share, Outstanding, Beginning Balance">5.39</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Outstanding, September 30, 2020</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_pii_c20200101__20200930_zyDM0UyUb0Cf" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of Options/SARs, Outstanding, Beginning Balance">2,473,241</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left">$</td><td id="xdx_986_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1_iE_c20200101__20200930__srt--RangeAxis__srt--MinimumMember_zth3h6CIGm4c" style="padding-bottom: 2.5pt; text-align: right" title="Range of Exercise Price, Ending Balance">0.74</td><td style="padding-bottom: 2.5pt; text-align: right">-</td> <td id="xdx_987_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1_iE_c20200101__20200930__srt--RangeAxis__srt--MaximumMember_zqolj648p1be" style="text-align: right">$35.20</td> <td> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_pii_uUSDPShares_c20200930_zr0CEz8de7R5" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Exercise Price per Share, Outstanding, Beginning Balance">2.90</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

1857599

0.74

36.20

2.22

897250

3.98 5.13

4.52

124578

0.74 2.15

1.25

157030

0.74 36.20

5.39

2473241

0.74

35.20

2.9

<p id="xdx_899_eus-gaap--ScheduleOfShareBasedCompensationRestrictedStockUnitsAwardActivityTableTextBlock_zARiBWrbMvd9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">A summary of the restricted stock unit activity for the nine month period ended September 30, 2020 is as follows: Summary of Restricted Stock Unit Activity <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Number of Restricted Stock Units</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Weighted Average Grant Date Fair Value per Unit</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%">Outstanding, December 31, 2019</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iS_pii_c20191231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zATJ6Wn5B4lb" style="width: 18%; text-align: right" title="Number of Restricted Stock Units, Outstanding, Beginning">840,712</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iS_pii_uUSDPShares_c20191231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zZYO1IaXmGte" style="width: 18%; text-align: right" title="Weighted Average Grant Date Fair Value Per Unit, Outstanding, Beginning">1.28</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pii_c20200101__20200930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zUvpF2eNPjn8" style="text-align: right" title="Number of Restricted Stock Units, Granted">420,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pii_uUSDPShares_c20200101__20200930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zcKdEDfLtMpl" style="text-align: right" title="Weighted Average Grant Date Fair Value Per Unit, Granted">4.82</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Vested</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_iN_pii_di_c20200101__20200930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zpCAHYnNcDO1" style="text-align: right" title="Number of Restricted Stock Units, Vested">(147,739</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue_pii_uUSDPShares_c20200101__20200930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zWvwtQYeTPJ7" style="text-align: right" title="Weighted Average Grant Date Fair Value Per Unit, Vested">2.45</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Forfeited</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_iN_pii_di_c20200101__20200930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zJ2qLrTMET6d" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number of Restricted Stock Units, Forfeited">(250</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue_pii_uUSDPShares_c20200101__20200930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zOSdB19zqnOa" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted Average Grant Date Fair Value Per Unit, Forfeited">0.78</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Outstanding, September 30, 2020</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iE_pii_c20200930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z27r3voo1xy4" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of Restricted Stock Units, Outstanding, Ending">1,112,723</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iE_pii_uUSDPShares_c20200930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zs5Edrr3DYh6" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Grant Date Fair Value Per Unit, Outstanding, Ending">2.46</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

840712

1.28

420000

4.82

147739

2.45

250

0.78

1112723

2.46

10. Product Warranty Provisions The Company’s standard policy is to warrant all capital systems against defects in material or workmanship for one year following installation. The Company’s estimate of costs to service the warranty obligations is based on historical experience and current product performance trends. A regular review of warranty obligations is performed to determine the adequacy of the reserve and adjustments are made to the estimated warranty liability as appropriate. Accrued warranty, which is included in other accrued liabilities, consists of the following: Schedule of Accrued Warranty <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">September 30, 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: left">Warranty accrual, beginning of the fiscal period</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_988_eus-gaap--ProductWarrantyAccrualClassifiedCurrent_iS_pp0p0_c20191231_z28HMUmg3US3" style="width: 18%; text-align: right" title="Warranty accrual, beginning of the fiscal period">141,697</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--ProductWarrantyAccrualClassifiedCurrent_iS_pp0p0_c20181231_zHqs1YFK9j7a" style="width: 18%; text-align: right" title="Warranty accrual, beginning of the fiscal period">149,464</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accrual adjustment for product warranty</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ProductWarrantyAccrualPreexistingIncreaseDecrease_c20200101__20200930_pp0p0" style="text-align: right" title="Accrual adjustment for product warranty">66,022</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ProductWarrantyAccrualPreexistingIncreaseDecrease_c20190101__20191231_pp0p0" style="text-align: right" title="Accrual adjustment for product warranty">56,118</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Payments made</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_987_eus-gaap--ProductWarrantyAccrualPayments_iN_pp0p0_di_c20200101__20200930_zW5sYrtrpAI3" style="border-bottom: Black 1.5pt solid; text-align: right" title="Payments made">(27,672</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_980_eus-gaap--ProductWarrantyAccrualPayments_iN_pp0p0_di_c20190101__20191231_zRR5IRbbCQNj" style="border-bottom: Black 1.5pt solid; text-align: right" title="Payments made">(63,885</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Warranty accrual, end of the fiscal period</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_982_eus-gaap--ProductWarrantyAccrualClassifiedCurrent_iE_pp0p0_c20200930_z2a4RwuUJN0l" style="border-bottom: Black 2.5pt double; text-align: right" title="Warranty accrual, end of the fiscal period">180,047</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98C_eus-gaap--ProductWarrantyAccrualClassifiedCurrent_iE_pp0p0_c20191231_z4yIo60PvxK4" style="border-bottom: Black 2.5pt double; text-align: right" title="Warranty accrual, end of the fiscal period">141,697</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

one year

Accrued warranty, which is included in other accrued liabilities, consists of the following: Schedule of Accrued Warranty <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">September 30, 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: left">Warranty accrual, beginning of the fiscal period</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_988_eus-gaap--ProductWarrantyAccrualClassifiedCurrent_iS_pp0p0_c20191231_z28HMUmg3US3" style="width: 18%; text-align: right" title="Warranty accrual, beginning of the fiscal period">141,697</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--ProductWarrantyAccrualClassifiedCurrent_iS_pp0p0_c20181231_zHqs1YFK9j7a" style="width: 18%; text-align: right" title="Warranty accrual, beginning of the fiscal period">149,464</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accrual adjustment for product warranty</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ProductWarrantyAccrualPreexistingIncreaseDecrease_c20200101__20200930_pp0p0" style="text-align: right" title="Accrual adjustment for product warranty">66,022</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ProductWarrantyAccrualPreexistingIncreaseDecrease_c20190101__20191231_pp0p0" style="text-align: right" title="Accrual adjustment for product warranty">56,118</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Payments made</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_987_eus-gaap--ProductWarrantyAccrualPayments_iN_pp0p0_di_c20200101__20200930_zW5sYrtrpAI3" style="border-bottom: Black 1.5pt solid; text-align: right" title="Payments made">(27,672</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_980_eus-gaap--ProductWarrantyAccrualPayments_iN_pp0p0_di_c20190101__20191231_zRR5IRbbCQNj" style="border-bottom: Black 1.5pt solid; text-align: right" title="Payments made">(63,885</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Warranty accrual, end of the fiscal period</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_982_eus-gaap--ProductWarrantyAccrualClassifiedCurrent_iE_pp0p0_c20200930_z2a4RwuUJN0l" style="border-bottom: Black 2.5pt double; text-align: right" title="Warranty accrual, end of the fiscal period">180,047</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98C_eus-gaap--ProductWarrantyAccrualClassifiedCurrent_iE_pp0p0_c20191231_z4yIo60PvxK4" style="border-bottom: Black 2.5pt double; text-align: right" title="Warranty accrual, end of the fiscal period">141,697</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

141697

149464

66022

56118

27672

63885

180047

141697

11. Commitments and Contingencies The Company at times becomes a party to claims in the ordinary course of business. Management believes that the ultimate resolution of pending or threatened proceedings will not have a material effect on the financial position, results of operations or liquidity of the Company.

12. Subsequent Events None.