SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2022

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of contract liabilities

	2021		2020
Customer deposits for commercial products	$	597	$	281
Customer deposits for personal protective equipment		-		713
Total contract liabilities	$	597	$	994

Summary of changes in contract liabilities

Balance at December 31, 2019	$	456
Additions		1,033
Transfers to Revenue		(495	)
Balance at December 31, 2020		994
Additions		591
Customer deposits returned		(713	)
Transfers to Revenue		(275	)
Balance at June 30, 2021	$	597

Schedule of financial instruments

Fair value at December 31, 2020	$	18,684
Change in fair value of Series A Note		(886	)
Change in fair value of Series B Notes		546
Conversion of Series A Notes		(1,834	)
Fair value of Series A and B Notes at June 30, 2021	$	16,510

Summary of Financial instruments measured at fair value

Date of valuation	June 30, 2021			December 31, 2020
Stock price	$	0.51		$	1.30
Conversion price	$	1.32		$	1.32
Term (in years) – Series A Note		1.33			1.83
Term (in years) – Series B Note		0.33			0.83
Volatility – Series A Note		85	%		86	%
Volatility – Series B Note		80	%		80	%
Risk-free interest rate – Series A Note		0.13	%		0.12	%
Risk-free interest rate – Series B Note		0.05	%		0.09	%
Interest rate		18	%		1	%

Schedule of basic and diluted loss per share

	For the Three Months Ended						For the Six Months Ended
(Dollars in thousands)	June 30, 2021			June 30, 2020			June 30, 2021			June 30, 2020
Net income (loss)	$	(1,321	)	$	(13,439	)	$	(4,493	)	$	(11,392	)
Weighted average outstanding shares of common stock		59,842,904			41,716,558			60,467,860			39,867,063
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		59,842,904			41,716,558			60,467,860			39,867,063
Income per share:
Basic net income per share		(0.02	)		(0.32	)		(0.07	)		(0.29	)
Diluted net income per share		(0.02	)		(0.32	)		(0.07	)		(0.29	)

Schedule of diluted net income (loss)

	Three and six months ended June 30,
	2021		2020
Vested stock options from the Company’s 2017 Equity Incentive Plan		3,471,304		3,460,767
Warrants		2,264,091		6,648,446
Shares to be issued upon conversion of convertible payable		115,047		115,047
Total		5,850,442		10,224,260