SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2021

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of contract liabilities

Contract liabilities is made up of the following as of September 30, 2021 and December 31, 2020 (in thousands):

	2021		2020
Customer deposits for commercial products	$	611	$	281
Customer deposits for personal protective equipment		-		713
Total contract liabilities	$	611	$	994

Summary of changes in contract liabilities

The following table summarizes the changes in contract liabilities during the nine months ended September 30, 2021 and year ended December 31, 2020 (in thousands):

Balance at December 31, 2019	$	456
Additions		1,033
Transfers to Revenue		(495	)
Balance at December 31, 2020		994
Additions		435
Customer deposits returned		(713	)
Transfers to Revenue		(105	)
Balance at September 30, 2021	$	611

Schedule of assets and liabilities measured at fair value

Fair value at December 31, 2020	$	18,684
Change in fair value of Series A Note		(1,020	)
Change in fair value of Series B Notes		(91	)
Conversion of Series A Notes		(2,881	)
Fair value of Series A and B Notes at September 30, 2021	$	14,692

Schedule of financial instruments

Date of valuation	September 30, 2021			December 31, 2020
Stock price	$	0.73		$	1.30
Conversion price	$	1.32		$	1.32
Term (in years) – Series A Note		1.08			1.83
Term (in years) – Series B Note		0.08			0.83
Volatility – Series A Note		85	%		86	%
Volatility – Series B Note		80	%		80	%
Risk-free interest rate – Series A Note		0.11	%		0.12	%
Risk-free interest rate – Series B Note		0.07	%		0.09	%
Interest rate		18	%		1	%

Schedule of basic and diluted loss per share

	For the Three Months Ended						For the Nine months Ended
(Dollars in thousands)	September 30, 2021			September 30, 2020			September 30, 2021			September 30, 2020
Net income (loss)	$	(4,343	)	$	(2,751	)	$	(8,835	)	$	(14,144	)
Weighted average outstanding shares of common stock		62,174,822			41,344,256			49,294,190			43,647,388
Dilutive potential common stock shares from:		-			-			-
Vested Stock options from the Company’s 2017 Equity Incentive Plan		-			-			-
Conversion of convertible notes		-			-			-
Common stock and common stock equivalents		62,174,822			41,344,256			49,294,190			43,647.388
Income per share:
Basic net income per share		(0.07	)		(0.07	)		(0.18	)		(0.32	)
Diluted net income per share		(0.07	)		(0.07	)		(0.18	)		(0.32	)

Schedule of diluted net income (loss)

	Three and nine months ended September 30,
	2021		2020
Vested stock options from the Company’s 2017 Equity Incentive Plan		3,845,124		3,517,577
Warrants		1,565,447		6,648,446
Shares to be issued upon conversion of convertible payable		115,047		115,047
Total		5,525,618		10,281,070