0001851734-22-000144 | 10-K | XBRL Viewer

Revenue from Contract with Customer [Text Block]

2. REVENUE AND PRODUCT COSTS

On January 1, 2018, the Company adopted FASB ASC Topic 606, Revenue from contracts with customers (“Topic 606”) and, as it had no prior revenue or contracts with customers, there was no transition required nor any impact on prior results. Topic 606 requires entities to recognize revenue through the application of a five-step model, which includes identification of the contract, identification of the performance obligations, determination of the transaction price, allocation of the transaction price to the performance obligations and recognition of revenue as the entity satisfies the performance obligations.

The Company enters into contracts that include various combinations of products, accessories, software and services, each of which are generally distinct and are accounted for as separate performance obligations.

A performance obligation is a promise in a contract to transfer a distinct good or service to a customer, and is the unit of account in Topic 606. For contracts with a single performance obligation, the entire transaction price is allocated to the single performance obligation. For contracts with multiple performance obligations, the Company allocates the contract transaction price to each performance obligation using the Company’s estimate of the standalone selling price (“SSP” or “SSPs”) of each distinct good or service in a contract. The Company determines SSPs based on the relative SSP. If the SSP is not observable through past transactions, the Company estimates the SSP considering available information such as market conditions and internally approved pricing guidelines related to the performance obligations.

Most of the Company’s products and accessories are sold through domestic and international distributors. Performance obligations to deliver products and accessories are generally satisfied at the point in time the Company ships the product, as this is when the customer obtains control of the asset under our standard terms and conditions. Periodically, certain customers request bill and hold transactions for future delivery as scheduled and designated by them. In such cases, revenue is not recognized until after control, title and risk of ownership has transferred which is generally when the customer has requested such transaction under normal billing and payment terms and has been notified that the product (i) has been completed according to customer specifications, (ii) has passed quality control inspections, and (iii) has been tagged and packed for shipment, separated from other inventory and ready for physical transfer to the customer. The value associated with custodial storage services is deemed immaterial in the context of such contracts and in total, and accordingly, none of the transaction price is allocated to such service.

The Company has elected to recognize shipping costs as an expense in cost of revenue when control has transferred to the customer.

Time-based virtual reality system contracts generally include setup, training and the use of software and hardware for a fixed term, generally one to five years and support and upgrade services during the same period. The Company does not sell time-based arrangements without setup, training and support services and therefore revenues for the entire arrangement are recognized on a straight-line basis over the term. When hardware is bundled and not sold separately the Company allocates the contract transaction price to each performance obligation using the SSP of each distinct good and service in the contract.

The timing of revenue recognition may differ from the timing of invoicing to customers. The Company generally has an unconditional right to consideration when customers are invoiced and a receivable is recorded. A contract asset is recognized when revenue is recognized prior to invoicing, or a contract liability (deferred revenue) when revenue will be recognized subsequent to invoicing. At December 31, 2021 the Company’s deferred revenue totaled $265 including $172 related to virtual reality training and $67 related to extended warranties. At December 31, 2020 the Company’s deferred revenue totaled $16, of which $14 related to virtual reality training and $2 related to extended warranties.

The Company may also receive consideration, per terms of a contract, from customers prior to transferring goods to the customer. The Company records customer deposits as a contract liability.

The Company recognizes an asset if there are incremental costs of obtaining a contract with a customer such as commissions. These costs are ascribed to or allocated to the underlying performance obligations in the contract and amortized consistent with the recognition timing of the revenue for any such underlying performance obligations. The Company had no such assets at December 31, 2021 and December 31, 2020. The Company will apply the practical expedient to expense any sales commissions related to performance obligations with an amortization of one year or less when incurred within selling, general and administrative expense.

Estimated costs for the Company’s standard one-year warranty are charged to cost of products sold when revenue is recorded for the related product. Royalties are also charged to cost of products sold.

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

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Note 3 - Acquisition

12 Months Ended

Dec. 31, 2021

Business Combination Disclosure [Text Block]

3.	ACQUISITION

On December 14, 2020, the Company, through a new wholly-owned subsidiary, Wrap Reality, Inc., entered into an Asset Purchase Agreement with NSENA Inc, a Delaware corporation, to acquire all of NSENA’s tangible and intangible assets, properties, and rights held for use in connection with NSENA’s virtual reality training business. The acquisition enhances the Company’s training services primarily targeting law enforcement agencies.

The Company paid to NSENA cash consideration of $210 and recorded a short-term business acquisition liability of $275. The liability was paid $100 by March 15, 2021, $100 by June 15, 2021 and $75 by September 15, 2021. In addition, the Company assumed a $15 liability for unearned revenues. As additional earn-out consideration, the Company agreed to pay NSENA contingent revenue-based consideration based on certain specific prospects that became customers before September 30, 2021. The fair value of the contingent consideration was determined as a $23 additional business acquisition liability but was revalued to $0 in the third quarter of 2021 resulting in a $23 gain included in other income.

The acquisition was accounted for under the acquisition method of accounting. Under acquisition accounting, the acquired tangible and intangible assets and liabilities of NSENA were recorded at their respective fair values. The following table summarizes the estimates of fair value of the assets acquired and liabilities assumed on December 14, 2020:

Equipment	$	10
Software		460
Customer contracts		40
Tradenames		2
Noncompete agreements		10
Deferred revenue		(15	)
Total consideration	$	507

A portion of the fair value of the consideration transferred was assigned to identifiable intangible assets as follows:

Description	Useful life in years		Fair Value
Software		5	$	460
Customer contracts		1		40
Tradenames		1		2
Noncompete agreements		2		10
Total acquired intangible assets			$	512

All assets acquired were determined to be finite-lived intangible assets and are being amortized on a straight-line basis over their estimated useful life with no residual value.

Note 4 - Financial Instruments

12 Months Ended

Dec. 31, 2021

Financial Instruments Disclosure [Text Block]

4.	FINANCIAL INSTRUMENTS

Assets and liabilities recorded at fair value on a recurring basis in the Consolidated Balance Sheets and assets and liabilities measured at fair value on a non-recurring basis or disclosed at fair value, are categorized based upon the level of judgment associated with inputs used to measure their fair values. The accounting guidance for fair value provides a framework for measuring fair value and requires certain disclosures about how fair value is determined. Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The accounting guidance also establishes a three-level valuation hierarchy that prioritizes the inputs to valuation techniques used to measure fair value based upon whether such inputs are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions made by the reporting entity. The three-level hierarchy for the inputs to valuation techniques is briefly summarized as follows:

Level 1—Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date;

Level 2—Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and

Level 3—Unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data.

The Company’s cash equivalent Money Market Funds and short-term investments consisting of U.S. Treasury bill securities are classified as Level 1 because they are valued using quoted market prices.

The following table shows the Company’s cash and cash equivalents, Money Market Funds and short-term investments by significant investment category as of December 31, 2021 and 2020.

	As of December 31, 2021
	Adjusted		Unrealized		Unrealized			Market
	Cost		Gains		Losses			Value
Level 1:
Money Market Funds	$	1,670	$	-	$	-		$	1,670
U.S. Treasury securities considered cash equivalents		-		-		-			-
U.S. Treasury securities in short-term investments		29,989		-		(6	)		29,983
Total Financial Assets	$	31,659	$	-	$	(6	)	$	31,653

	*As of December 31, 2020*
	*Adjusted*		*Unrealized*		*Unrealized*		*Market*
	*Cost*		*Gains*		*Losses*		*Value*
Level 1:
Money Market Funds	$	6,035	$	-	$	-	$	6,035
U.S. Treasury securities considered cash equivalents		9,998		-		-		9,998
U.S. Treasury securities in short-term investments		24,979		15		-		24,994
Total Financial Assets	$	41,012	$	15	$	-	$	41,027

Unrealized gains or losses resulting from our short-term investments are recorded in accumulated other comprehensive gain or loss. During the year ended December 31, 2021 and 2020, $(21) and $15 was recorded to accumulated other comprehensive loss and gain, respectively.

Our financial instruments also include accounts receivable, accounts payable, accrued liabilities and business acquisition liabilities. Due to the short-term nature of these instruments, their fair values approximate their carrying values on the balance sheets.

Note 5 - Inventories, Net

12 Months Ended

Dec. 31, 2021

Inventory Disclosure [Text Block]

5.	INVENTORIES, NET

Inventory is recorded at the lower of cost or net realizable value. The cost of substantially all the Company’s inventory is determined by the FIFO cost method. Inventories consisted of the following:

	December 31,
	2021		2020
Finished goods	$	1,027	$	1,249
Work in process		2		64
Raw materials		537		1,342
Inventories - net	$	1,566	$	2,655

As part of product line exit costs (see Note 1) end of life raw material costs aggregating $621 were written off during the year ended December 31, 2021. During the year ended December 31, 2020 the Company wrote off $68 of raw material and scrap parts primarily due to startup production, model changes and improvements.

Note 6 - Property and Equipment, Net

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment Disclosure [Text Block]

6.	PROPERTY AND EQUIPMENT, NET

Property and equipment consisted of the following:

	December 31,
	2021			2020
Production and lab equipment	$	500		$	148
Tooling		273			81
Computer equipment		467			180
Furniture, fixtures and improvements		176			165
		1,416			574
Accumulated depreciation		(440	)		(217	)
Property and equipment, net	$	976		$	357

Depreciation expense was $297 and $144 for the years ended December 31, 2021 and 2020, respectively. As part of product line exit costs (see Note 1) unamortized production tooling costs of $106 were written off in the second quarter of 2021.

Note 7 - Intangible Assets, Net

12 Months Ended

Dec. 31, 2021

Intangible Assets Disclosure [Text Block]

7. INTANGIBLE ASSETS, NET

Intangible assets consisted of the following:

	December 31,
	2021			2020
Amortizable intangible assets:
Patents	$	416		$	280
Trademarks		134			84
Software		1,212			662
Other		50			50
		1,812			1,076
Accumulated amortization		(174	)		(23	)
Total amortizable		1,638			1,053
Indefinite life assets (non-amortizable)		344			344
Total intangible assets, net	$	1,982		$	1,397

Amortization expense was $182 and $18 for the years ended December 31, 2021 and 2020, respectively. An additional impairment charge of $170 for purchased software was recorded in the second quarter of 2021.

At December 31, 2021, annual amortization of intangible assets, based upon the Company’s existing intangible assets and current useful lives, is estimated to be the following:

2022	$	261
2023		256
2024		256
2025		251
2026		164
Thereafter		450
Total estimated amortization expense	$	1,638

Note 8 - Accounts Payable and Accrued Liabilities

12 Months Ended

Dec. 31, 2021

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

8. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Accounts payable includes $228 and $53 due to related party Syzygy Licensing, LLC (“Syzygy”) as of December 31, 2021 and 2020, respectively. Accounts payable at December 31, 2020 also included $10 due to related party V3 Capital Partners, LLC.

Accrued liabilities consist of the following:

	December 31,
	2021		2020
Patent and legal costs	$	28	$	65
Accrued compensation		628		563
Warranty costs		96		48
Taxes and other		72		45
	$	824	$	721

Accrued compensation includes $305 and $563 in employee bonuses and commissions payable at December 31, 2021 and 2020, respectively.

Note 9 - Leases

12 Months Ended

Dec. 31, 2021

Lessee, Operating Leases [Text Block]

9. LEASES

The Company determines if an arrangement is a lease at inception. The guidance in Topic 842 defines a lease as a contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. Operating lease ROU assets and lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. The Company’s leases do not provide an implicit rate. Due to a lack of financing history or ability, the Company uses an estimate of low-grade debt rate published by the Federal Reserve Bank as its incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. The ROU asset includes any lease payments made and excludes lease incentives and initial direct costs incurred.

For leases beginning on or after January 1, 2019, lease components are accounted for separately from non-lease components for all asset classes. The Company’s leases may contain renewal provisions and escalating rental clauses and generally require the Company to pay utilities, insurance, taxes and other operating expenses. The renewal provisions of the existing lease agreement was not included in the determination of the operating lease liabilities and the ROU assets.

At December 31, 2021 the Company was party to one operating leases for office and production facilities under an agreement that expires in July 2022. The Company has elected the short-term lease exemption such that the new lease standard was applied to leases greater than one year in duration. Leases with an initial term of twelve months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term.

Amortization of ROU operating lease assets was $88 and $122 for the years ended December 31, 2021 and 2020, respectively.

Operating lease expense for capitalized operating leases included in operating activities was $95 and $137 for the years ended December 31, 2021 and 2020, respectively. Operating lease obligations recorded on the balance sheet at December 31, 2021 are:

Operating lease liability- short term	$	56
Operating lease liability - long term		-
Total Operating Lease Liability	$	56

Future lease payments included in the measurement of lease liabilities on the balance sheet at December 31, 2021 for future periods are as follows:

2022	$	57
Total future minimum lease payments		57
Less imputed interest		(1	)
Total	$	56

The weighted average remaining lease term is 0.6 years and the weighted average discount rate is 7%. Variable lease payments totaled $29 and are comprised of taxes and other miscellaneous costs.

The Company did not have any short-term lease expense during the years ended December 31, 2021 and December 31, 2020. The Company does not have any finance leases.

Note 10 - Debt

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Text Block]

10.

DEBT

The Company’s debt at December 31, 2021 and 2020 included operating lease liabilities (see Note 9). The Company’s debt at December 31, 2020 also included business acquisition liabilities (see Note 3).

On May 1, 2020, the Company received loan proceeds of $414 from Bank of America, N.A. (the “Lender”), as a potentially forgivable loan (the “PPP Loan”) from the U.S. Small Business Administration pursuant to the Paycheck Protection Program (the “PPP”) enacted by Congress under Division A, Title 1 of the Coronavirus Aid, Relief, and Economic Security Act (15 U.S.C. 636(a)(36)) (the “CARES Act”), which was enacted March 27, 2020. The PPP Loan was in the form of a two-year Promissory Note dated May 1, 2020 payable to the Lender (the “PPP Note”), bearing interest at a rate of 1% per annum.

Under the terms of the CARES Act, the Company subsequently applied for and in December 2020 was granted forgiveness for the PPP Loan plus interest. The Company’s PPP Loan in the amount of $414 and accrued interest was forgiven in full by the Small Business Administration. The Company recognized $417 in debt forgiveness income as a result of the forgiveness.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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Note 11 - Stockholders' Equity

12 Months Ended

Dec. 31, 2021

Stockholders' Equity Note Disclosure [Text Block]

11.

STOCKHOLDERS’ EQUITY

The Company’s authorized capital consists of 150,000,000 shares of Common Stock, par value $0.0001 per share, and 5,000,000 shares of preferred stock, par value $0.0001 per share (“Preferred Stock”).

2020 Follow-On Public Offering

On June 2, 2020, the Company consummated a follow-on public offering (the “Unit Offering”) whereby the Company offered and sold certain securities consisting of one share of Common Stock and one detachable two-year warrant to purchase one share of Common Stock at an exercise price of $6.00 per share (a “Unit”) at the public offering price of $6.00 per Unit. Pursuant to the Unit Offering, the Company sold 2,066,667 Units, resulting in the Company’s receipt of gross cash proceeds of $12.4 million and net cash proceeds of $11.67 million after deduction of commissions and offering costs.

Summary of Stock Purchase Warrants

The following table summarizes warrant activity during the years ended December 31, 2020 and 2021:

	Number			Average Price Per Share
Shares purchasable under outstanding warrants at January 1, 2020		6,620,620		$	5.41
Stock purchase warrants issued		2,066,667		$	6.00
Stock purchase warrants exercised		(5,155,976	)	$	5.08
Stock purchase warrants expired		(324,401	)	$	5.00
Shares purchasable under outstanding warrants at December 31, 2020		3,206,910		$	6.36
Stock purchase warrants issued		-			-
Stock purchase warrants exercised		(1,815,012	)	$	6.64
Stock purchase warrants expired		(231	)	$	7.58
Shares purchasable under outstanding warrants at December 31, 2021		1,391,667		$	6.00

During the year ended December 31, 2020 the Company received gross proceeds of $26,190 from the exercise of 5,155,976 warrants and paid $1,017 as an agent fee to facilitate exercise of certain warrants resulting in net proceeds of $25,174. Elwood Norris was a Company officer at the time he exercised 333,334 of these warrants at $5.00 per share for cash of $1,667.

During the year ended December 31, 2021 the Company received proceeds of $12,047 from the exercise of 1,815,012 warrants.

The Company has outstanding Common Stock purchase warrants as of December 31, 2021 as follows:

	Number of		Exercise Price
Description	Common Shares		Per Share		Expiration Date
Purchase Warrants		1,391,667	$	6.00	June 1, 2022

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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Note 12 - Share-based Compensation

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Text Block]

12.

SHARE-BASED COMPENSATION

On March 31, 2017, the Company adopted, and the stockholders approved, the 2017 Stock Incentive Plan (the “Plan”) authorizing 2,000,000 shares of Company Common Stock for issuance as stock options and restricted stock units to employees, directors or consultants. In May 2019, the stockholders ratified an increase in the Plan authorizing an additional 2,100,000 shares of Common Stock and in June 2020 ratified a further authorization of 1,900,000 shares of Common Stock for a total of 6,000,000 shares subject to the Plan. In June 2021, the stockholders ratified an increase in the 2017 Stock Incentive Plan authorizing an additional 1,500,000 shares of Common Stock to a total of 7,500,000 shares. At December 31, 2021 there were 1,380,816 shares of Common Stock available for grant under the Plan.

The Company generally recognizes share-based compensation expense on the grant date and over the period of vesting or period that services will be provided.

Stock Options

The following table summarizes stock option activity for the years ended December 31, 2020 and 2021:

				Weighted Average
	*Options on*					*Remaining*		*Aggregate*
	*Common*			*Exercise*		*Contractual*		*Intrinsic*
	*Shares*			*Price*		*Term*		*Value*
Outstanding January 1, 2020		2,928,750		$	2.96		3.71
Granted		1,423,836		$	6.66		-
Exercised		(371,000	)	$	1.90		-
Forfeited, cancelled, expired		(50,000	)	$	3.00		-
Outstanding December 31, 2020		3,931,586		$	4.41		4.80
Granted		1,254,500		$	5.33
Exercised		(915,404	)	$	1.83
Forfeited, cancelled, expired		(334,799	)	$	5.14
Outstanding December 31, 2021		3,935,883		$	5.24		4.79	$	1,608
Exercisable December 31, 2021		2,415,063		$	5.19		2.44	$	1,608

All outstanding options at December 31, 2021 are service-based options.

The Company uses the Black-Scholes option pricing model to determine the fair value of the options granted. The following table summarizes the assumptions used to compute the fair value of options granted to employees and non-employees:

	For the Year Ended
	December 31,
	2021			2020
Expected stock price volatility		50	%		47	%
Risk-free interest rate		0.90	%		0.38	%
Expected dividend yield		0	%		0	%
Expected life of options - years		5.74			5.64
Weighted-average fair value of options granted	$	2.57		$	2.90

Estimated volatility is a measure of the amount by which the Company’s stock price is expected to fluctuate each year during the expected life of awards. The Company’s estimated volatility was based on an average of the historical volatility of peer entities whose stock prices were publicly available. The Company’s calculation of estimated volatility is based on historical stock prices of these peer entities over a period equal to the expected life of the awards. The Company uses the historical volatility of peer entities due to the lack of sufficient historical data of its stock price.

The risk-free interest rate assumption is based upon observed interest rates on zero coupon U.S. Treasury bonds whose maturity period is appropriate for the term of the options. The dividend yield of zero is based on the fact that the Company has never paid cash dividends and has no present intention to pay cash dividends. The Company calculates the expected life of the options using the Simplified Method for the employee stock options as the Company does not have sufficient historical data.

The following table summarizes information about stock options outstanding at December 31, 2021:

				Weighted
				Average		Weighted				Weighted
				Remaining		Average				Average
*Range of*		*Number*		*Contractual*		*Exercise*		*Number*		*Exercise*
*Exercise Prices*		*Outstanding*		*Life (Years)*		*Price*		*Exercisable*		*Price*
$	1.50 - 3.61		652,750		1.32	$	1.61		652,750	$	1.61
$	3.85 - 5.775		2,638,133		5.83	$	5.20		1,373,564	$	5.33
$	5.88 - 8.82		295,000		8.45	$	6.58		38,749	$	6.34
$	11.22		350,000		0.33	$	11.22		350,000	$	11.22

Restricted Stock Units

The Plan provides for the grant of restricted stock units (“RSUs”). RSUs are settled in shares of the Company’s Common Stock as the RSUs become vested. In January 2019 the Company granted 263,087 service-based RSUs to officers and employees vesting over a period of three years. In August and September 2019, the Company granted 45,000 service-based RSUs to employees vesting over a period of three years. In January 2020 the Company granted 73,992 service-based RSUs to officers and directors vesting over a period of three years. In April 2020 the Company granted 122,222 service-based RSUs to employees vesting over a period of three years. Also, in April 2020 the Company granted an officer 35,211 performance-based RSUs. During the period July 2020 to December 2020 the Company granted 114,660 service-based RSU’s to employees vesting over three and four years.

The following table summarizes RSU activity under the Plan for the years ended December 31, 2020 and 2021:

				Weighted Average		Weighted Average
	*Service-Based*			*Grant Date*		*Vesting*
	*RSU's*			*Fair Value*		*Period (Years)*
Unvested at January 1, 2020		308,087		$	6.77	3.0
Granted - service based		310,874		$	6.02
Granted - performance based		35,211		$	4.26
Vested		(144,687	)	$	5.17
Forfeited and cancelled		(81,479	)	$	6.47
Unvested at December 31, 2020		428,006		$	6.13	2.3
Granted - service based		398,662		$	5.59
Vested		(524,491	)	$	5.55
Forfeited and cancelled		(32,874	)	$	6.10
Unvested at December 31, 2021		269,303		$	6.47	2.0

Share-Based Compensation Expense

The Company recorded share-based compensation in its statements of operations for the relevant periods for options and RSUs as follows:

	For the Year Ended
	December 31,
	2021		2020
Selling, general and administrative	$	4,558	$	1,957
Research and development		798		280
Total share-based expense	$	5,356	$	2,237

As of December 31, 2021, total estimated compensation cost of stock options granted and outstanding but not yet vested was $3.0 million which is expected to be recognized over the weighted average period of 2.2 years. As of December 31, 2021, total estimated compensation cost of RSUs granted and outstanding but not yet vested was $1.4 million which is expected to be recognized over the weighted average period of 2.0 years.

Note 13 - Commitments and Contingencies

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Text Block]

13. COMMITMENTS AND CONTINGENCIES

Facility Leases

See Note 9.

Related Party Technology License Agreement

The Company is obligated to pay royalties and development and patent costs pursuant to an exclusive Amended and Restated Intellectual Property License Agreement dated as of September 30, 2016 with Syzygy, a company owned and controlled by stockholder/consultant Mr. Elwood Norris and stockholder/officer Mr. James Barnes. The agreement provides for royalty payments of 4% of revenue from products employing the licensed ensnarement device technology up to an aggregate of $1,000,000 in royalties or until September 30, 2026, whichever occurs earlier. The Company recorded $278 and $143 for royalties incurred during the years ended December 31, 2021 and 2020, respectively.

Purchase Commitments

At December 31, 2021 the Company was committed for approximately $1,466 for future component deliveries and contract services that are generally subject to modification or rescheduling in the normal course of business.

Indemnifications and Guarantees

Our officers and directors are indemnified as to personal liability as provided by the Delaware law and the Company’s articles and bylaws. The Company may also undertake indemnification obligations in the ordinary course of business related to its operations. The Company is unable to estimate with any reasonable accuracy the liability that may be incurred pursuant to any such indemnification obligations now or in the future. Because of the uncertainty surrounding these circumstances, the Company’s current or future indemnification obligations could range from immaterial to having a material adverse impact on its financial position and its ability to continue in the ordinary course of business. The Company has no liabilities recorded for such indemnities.

Regulatory Agencies

The Company is subject to oversight from regulatory agencies regarding firearms that arises in the ordinary course of its business.

Litigation

Securities Litigation

On November 15, 2021, the Hon. Dolly M. Gee of the United States District Court for the Central District of California (the “Court”) granted the motion to dismiss filed by the Company, David Norris (“Norris”), James A. Barnes (“Barnes”), Thomas Smith (“Smith”), Mike Rothans (“Rothans”) and Marc Thomas (“Thomas”) (collectively, “Defendants”) in the action captioned In re Wrap Technologies, Inc. Securities Exchange Act Litigation (the “Securities Action”). The Court granted Defendants’ motion on the grounds that the complaint failed to identify any statement by Defendants that was either false or made with scienter. Concurrently, the Court granted Plaintiff leave to file a second amended complaint on or before December 6, 2021, noting that a failure to file a second amended complaint by that date would result in dismissal of the Securities Action with prejudice. On December 20, 2021, following Plaintiff’s failure to file a second amended complaint, the Court dismissed the Securities Action with prejudice.

Shareholder Derivative Litigation

On November 13, 2020, Naresh Rammohan filed a shareholder derivative action in the United States District Court for the Central District of California against Smith, Barnes, Rothans, Thomas, and Norris, as well as directors Messrs. Scot Cohen, Patrick Kinsella, Michael Parris, and Wayne Walker, alleging unjust enrichment, breach of fiduciary duty, waste of corporate assets, and contribution claims under the Securities Exchange Act of 1934, docketed as Case No. 2:20-cv-10444-DMG-PVCx (the “Rammohan Complaint”). The Company is named as a nominal defendant. On January 20, 2021, Ray Westerman filed a second derivative complaint in the same court against the same parties, alleging breach of fiduciary duty and contribution claims under the Securities Exchange Act of 1934, docketed as Case No. 2:21-cv-00550-DMG-PVCx (the “Westerman Complaint”). On January 22, 2021, Jesse Lowe filed a third derivative complaint in the same court against the same parties, alleging breach of fiduciary duty and asserting various claims under the Securities Exchange Act of 1934, docketed as Case No. 2:21-cv-00597-DMG-PVCx (the “Lowe Complaint”).

On January 27, 2021, Judge Gee entered an order to show cause why the derivative actions should not be consolidated and stayed pending the resolution of the Securities Action, given the “apparent substantial overlap” between the cases. On February 16, 2021, Judge Gee issued an order consolidating the derivative actions under the caption In re Wrap Technologies, Inc. Shareholder Derivative Litigation, Case No. 2:20-10444-DMG-PVCx, (the “Derivative Action”), and stayed the Derivative Action at least until the resolution of the Securities Action, which has been dismissed with prejudice. The Company believes that the Derivative Action is without merit and will vigorously defend against the claims raised therein.

Note 14 - Related Party Transactions

12 Months Ended

Dec. 31, 2021

14. RELATED PARTY TRANSACTIONS

Commencing in October 2017 the Company began reimbursing Mr. Elwood Norris, a consultant and stockholder of the Company, $1.5 per month on a month-to-month basis for laboratory facility costs, for an aggregate of $18 during each year ended December 31, 2021 and 2020, respectively. Mr. Norris retired as the Company’s Chief Technology Officer effective June 30, 2021 and commencing July 1 was engaged as a month-to-month consultant. A greater than 10% stockholder, Mr. Norris was paid a monthly fee of $7.5 per month for aggregate consulting payments of $45 for the six month period ended December 31, 2021.

From April 2020 through December 2020 the Company engaged V3 Capital Partners, LLC (“V3”), a company owned and controlled by Scot Cohen, the Company’s Executive Chairman, to provide certain investor, shareholder and marketing services, in consideration for the payment to V3 of $10 per month on a month-to-month basis for an aggregate of $90 during the year ended December 31, 2020. In addition, the Company paid V3 a bonus of $175 for assistance in a financing that was consummated in July 2020.

See Notes 8, 11 and 13 for additional information on related party transactions and obligations.

Note 15 - Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Text Block]

15. INCOME TAXES

Until its reverse recapitalization on March 31, 2017, the Company was treated as a partnership for federal and state income tax purposes and did not incur income taxes. The Company accounts for income taxes under ASC 740. Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Accounting standards require the consideration of a valuation allowance for deferred tax assets if it is "more likely than not" that some component or all of the benefits of deferred tax assets will not be realized.

The Company did not provide any current or deferred U.S. federal income tax provision or benefit for the periods presented because of operating losses since inception. As of December 31, 2021, the Company has federal net operating loss carryforwards of approximately $52,004 to reduce future taxable income. Approximately $703 will expire in 2037 with the balance having an indefinite carryforward period. Certain changes in stock ownership can result in a limitation on the amount of net operating loss and tax credit carryovers that can be utilized each year. As of December 31, 2021, management has not determined the extent of any such limitations, if any. The Company is subject to taxation in the U.S. and various state jurisdictions. All of the Company’s historical tax years are subject to examination by the Internal Revenue Service and various state jurisdictions due to the generation of net operating losses and credit carryforwards.

The Company provided a full valuation allowance on the net deferred tax asset, consisting primarily of net operating loss carry forwards, because management has determined that it is more likely than not that the Company will not earn income sufficient to realize the deferred tax assets during the carry forward period. As a result of the change in future Federal statutory tax rates due to the passing of the Tax Cuts and Jobs Act of 2017, management determined that the deferred tax assets and liabilities should be valued at a federal statutory rate of 21%.

The Company has not taken a tax position that, if challenged, would have a material effect on the financial statements for the periods ended December 31, 2021 and 2020 applicable under FASB ASC 740. The Company did not recognize any adjustment to the liability for uncertain tax position and therefore did not record any adjustment to the beginning balance of accumulated deficit on the balance sheet.

The provision for(benefit from) income taxes consist of the following:

	Year Ended December 31,
	2021			2020
Current tax benefit	$	-		$	-
Deferred tax benefit		6,409			3,158
Change in valuation allowance		(6,409	)		(3,158	)
Income tax benefit (provision)	$	-		$	-

A reconciliation of the provision for income taxes at the federal statutory rate of 21% to the Company’s provision for income tax is as follows:

	Year Ended December 31,
	2021			2020
Income taxes benefit computed at federal statutory rate	$	5,139		$	2,642
State income taxes, net of federal effect		480			216
Permanent differences and other		790			300
Change in valuation allowance		(6,409	)		(3,158	)
Income tax benefit (provision)	$	-		$	-

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following table presents the significant components of the Company’s deferred tax assets and liabilities for the periods presented:

	December 31,
	2021			2020
Deferred tax assets:
Net operating losses	$	11,773		$	5,444
Research tax credits		60			45
Stock compensation		847			542
Accruals and other		211			169
		12,891			6,200
Deferred tax liabilities:
Depreciation and other		678			396
		678			396
Net deferred tax assets		12,213			5,804
Less valuation allowance		(12,213	)		(5,804	)
Net deferred taxes after valuation allowance	$	-		$	-

In accordance with ASU 2016-09, Compensation-Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting, the Company recognizes windfall tax benefits associated with the exercise of stock options as a component of tax expense (rather than equity). Accordingly, our federal and state operating loss carryforwards include net windfall tax deductions from stock option exercises and RSU vesting of approximately $3,168 and $720 during the years ended December 31, 2021 and 2020, respectively.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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Note 16 - Major Customers and Related Information

12 Months Ended

Dec. 31, 2021

Concentration Risk Disclosure [Text Block]

16. MAJOR CUSTOMERS AND RELATED INFORMATION

Major Customers

For the year ended December 31, 2021, revenues from three distributors accounted for approximately 26%, 19% and 17% of revenues with no other single customer accounting for more than 10% of total revenues. Accounts receivable from three distributors accounted for 48%, 16% and 15% of net accounts receivable at December 31, 2021. For the year ended December 31, 2020, revenues from two distributors accounted for approximately 17% and 16% of revenues with no other single customer accounting for more than 10% of total revenues. These distributors accounted for 28% and 26% of net accounts receivable at December 31, 2020.

The following table summarizes revenues by geographic region. Revenues are attributed to countries based on customer’s delivery location.

	For the Year
	Ended December 31,
	2021		2020
Americas	$	3,357	$	1,443
Europe, Middle East and Africa		2,385		1,046
Asia Pacific		1,987		1,455
	$	7,729	$	3,944

See Note 1 – Concentrations of Risks for information on reliance on suppliers.

Note 17 - Subsequent Events

12 Months Ended

Dec. 31, 2021

Subsequent Events [Text Block]

17. SUBSEQUENT EVENTS

In January 2022 the Company extended the lease term of its Tempe Arizona office and production facility lease from July 31, 2022 to July 31, 2025. The monthly rate commencing August 1, 2022 will be $10 with 4% annual increases.

The Company has evaluated other events subsequent to December 31, 2021 through the date the accompanying financial statements were filed with the Securities and Exchange Commission and noted that there have been no other events or transactions which would affect the Company’s financial statements for the year ended December 31, 2021.

Significant Accounting Policies (Policies)	12 Months Ended
Significant Accounting Policies (Policies)	Dec. 31, 2021
Accounting Policies [Abstract]
Organization and Business Description [Policy Text Block]	Organization and Business Description Wrap Technologies, Inc., a Delaware corporation (the “Company”, “we”, “us”, and “our”), is a publicly traded company with our Common Stock, par value $0.0001 per share (“Common Stock”), listed on the Nasdaq Capital Market (“Nasdaq”) under the trading symbol “WRAP”. The Company is a developer and supplier of public safety products and training services for law enforcement and security personnel. The Company’s primary product is the BolaWrap® remote restraint device. The principal markets for the Company’s proprietary products and services are in North and South America, Europe, Middle East and Asia.
Consolidation, Policy [Policy Text Block]	Principles of Consolidation The Company has one wholly-owned subsidiary, Wrap Reality, Inc. formed in December 2020 (see Note 3) that sells a virtual reality training system primarily targeting law enforcement agencies. The consolidated financial statements include the accounts of this subsidiary after elimination of intercompany transactions and accounts.
Use of Estimates, Policy [Policy Text Block]	Basis of Presentation and Use of Estimates The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions (e.g., share-based compensation valuation, allowance for doubtful accounts, valuation of inventory and intangible assets, warranty reserve, accrued costs, valuation allowance related to deferred tax assets and recognition and measurement of contingencies) that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and affect the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates
Concentration Risk, Credit Risk, Policy [Policy Text Block]	Concentrations of Risk Credit Risk – Financial instruments that potentially subject the Company to concentration of credit risk consisted primarily of cash, cash equivalents, U.S. treasury bills and accounts receivable from customers. The Company maintains its cash and cash equivalent deposits at two domestic financial institutions. The Company is exposed to credit risk in the event of default by a financial institution to the extent that cash and cash equivalents are in excess of the amount insured by the Federal Deposit Insurance Corporation. The Company places its cash and cash equivalents with high-credit quality financial institutions and are managed within established guidelines to mitigate risks. To date, the Company has not experienced any losses on its cash and cash equivalents. Concentrations of Accounts Receivable and Revenue – The Company has a limited number of domestic and international customers. The Company may experience concentrations in both accounts receivable and revenue due to the timing of sales and collections of related payments (see Note 16). Concentration of Suppliers – The Company assembles its BolaWrap products in-house using components and subassemblies from a limited number of suppliers and contract suppliers. In particular, a single supplier is currently the sole manufacturer of the BolaWrap battery assembly and another single supplier is the sole manufacturer of the propulsion component for BolaWrap cassettes. Other parts are sole sourced from other suppliers. If supplier shortages or logistic delays occur, or quality problems arise, production schedules could be significantly delayed or costs significantly increased, which could in turn have a material adverse effect on the Company’s financial condition, results of operation and cash flows. Impact of COVID-19 – In December 2019, a novel strain of coronavirus (“COVID-19”) emerged in China. In March 2020, the World Health Organization declared the outbreak as a pandemic. The extent to which the coronavirus impacts our operations will continue to depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration of the outbreak, new information which may emerge concerning the severity of the coronavirus and the actions to contain the coronavirus or treat its impact, among others. In particular, the continued spread of the coronavirus globally and emergence of new strains could adversely impact our operations, including our manufacturing, logistics and supply chain. Our operations could be negatively affected if employees are quarantined as the result of exposure to a contagious illness. Similarly, travel restrictions resulting from the rapid spread of contagious illnesses may have a material adverse effect on our business and results of operations.
Cash and Cash Equivalents, Policy [Policy Text Block]	Cash and Cash Equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less from the purchase date to be cash equivalents. Cash equivalents consist primarily of amounts invested in Money Market Funds and United States (“U.S.”) Treasury bills and are stated at fair value.
Investment, Policy [Policy Text Block]	Short-Term Investments The Company’s short-term investments consist of U.S. Treasury bills with original maturities beyond three months at the date of purchase and one year or less from the balance sheet date. As of December 31, 2021, all of the Company’s short-term investments were classified as available-for-sale and are carried at estimated fair value with any unrealized gains and losses, unrelated to credit loss factors, included in other comprehensive income in our consolidated statements of stockholders’ equity. We adopted Accounting Standards Codification (“ASC”) Topic 326 issued by the Financial Accounting Standards Board (“FASB”) effective January 1, 2020, and applied the credit loss guidance related to short-term investments prospectively as we had no historical short-term investments. Because we do not have any history of losses for our short-term investments, our expected loss allowance methodology is developed using published or estimated credit default rates for similar investments and current and future economic and market conditions. Any unrealized losses related to credit loss factors are recorded through an allowance for credit losses in other (expense) income, in our consolidated statements of operations, rather than as a reduction to the amortized cost basis in other comprehensive (loss) income, when a decline in fair value has resulted from a credit loss. We determine realized gains or losses on the sale of investments on a specific identification method, and record such gains or losses as other (expense) income, in our consolidated statements of operations. We did not record a credit loss reserve for short-term investments during the years ended December 31, 2021 and 2020.
Share-based Payment Arrangement [Policy Text Block]	Share-Based Compensation The Company follows the fair value recognition provisions issued by the FASB in ASC Topic 718, Stock Compensation (“ASC 718”) and has adopted Accounting Standards Update (“ASU”) 2018-07 for share-based transactions with non-employees. Share-based compensation expense recognized during 2021 and 2020 includes stock option and restricted stock unit compensation expense. The grant date fair value of stock options is determined using the Black-Scholes option-pricing model. The grant date is the date at which an employer and employee or non-employee reach a mutual understanding of the key terms and conditions of a share-based payment award. The Black-Scholes option-pricing model requires inputs including the market price of the Company’s Common Stock on the date of grant, the term that the stock options are expected to be outstanding, the implied stock volatilities of several publicly-traded peers over the expected term of stock options, risk-free interest rate and expected dividend. Each of these inputs is subjective and generally requires significant judgment to determine. The grant date fair value of restricted stock units is based upon the market price of the Company’s Common Stock on the date of the grant. We determine the amount of share-based compensation expense based on awards that we ultimately expect to vest and account for forfeitures as they occur. The fair value of share-based compensation is amortized to compensation expense over the vesting term.
Earnings Per Share, Policy [Policy Text Block]	Loss per Share Basic loss per common share is computed by dividing net loss for the period by the weighted-average number of shares of Common Stock outstanding during the period. Diluted net loss per common share reflects the potential dilution of securities that could share in the earnings of an entity. The Company’s losses for the periods presented cause the inclusion of potential Common Stock instruments outstanding to be antidilutive. Stock options, restricted stock units and warrants exercisable or issuable for a total of 5,596,853 and 7,566,502 shares of Common Stock were outstanding at December 31, 2021 and 2020, respectively. These securities are not included in the computation of diluted net loss per common share for the periods presented as their inclusion would be antidilutive due to losses incurred by the Company.
Accounts Receivable [Policy Text Block]	Accounts Receivable and Allowance for Credit Losses ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) requires that financial assets measured at amortized cost be presented at the net amount expected to be collected. The expected credit losses are developed using an estimated loss rate method that considers historical collection experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The estimated loss rates are applied to accounts receivables with similar risk characteristics such as the length of time the balance has been outstanding and the location of the customer. In certain instances, the Company may identify individual accounts receivable assets that do not share risk characteristics with other accounts receivables, in which case the Company records its expected credit losses on an individual asset basis. If an accounts receivable asset is evaluated on an individual basis, the Company excludes those assets from the portfolios of accounts receivables evaluated on a collective basis. At December 31, 2021 and 2020, the Company had an allowance for credit losses related to accounts receivable of $134 and $10, respectively. If a major customer’s creditworthiness deteriorates, or actual defaults exceed our historical experience, such estimates could change and impact our future reported financial results.
Inventory, Policy [Policy Text Block]	Inventories Inventories are valued at the lower of cost or net realizable value. The cost of substantially all the Company’s inventory is determined by the FIFO cost method. Inventory is comprised of raw materials, assemblies and finished products intended for sale to customers. The Company evaluates the need for reserves for excess and obsolete inventories determined primarily based upon estimates of future demand for the Company’s products. At December 31, 2021 and 2020 the Company had no reserve for obsolescence.
Property, Plant and Equipment, Policy [Policy Text Block]	Property, Equipment and Depreciation Property and equipment is stated at cost. Depreciation on property and equipment is computed over the estimated useful lives of three years using the straight-line method. On any retirement or disposition of property and equipment, the related cost and accumulated depreciation or amortization is removed and a gain or loss recorded.
Business Combinations Policy [Policy Text Block]	Business Combinations Transactions in which the Company obtains control of a business are accounted for according to the acquisition method as described in ASC 805, Business Combinations. The assets acquired and liabilities assumed are recognized and measured at their fair values as of the date control is obtained. The Company measures goodwill as the excess of consideration transferred, which the Company also measures at fair value, over the net of the acquisition date amounts of the identifiable assets acquired and liabilities assumed. Acquisition related costs in connection with a business combination are expensed as incurred. Contingent consideration is recognized and measured at fair value at the acquisition date and until paid is re-measured on a recurring basis and classified as a liability.
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block]	Intangible Assets Intangible assets consisted of (a) capitalized legal fees and filing costs related to obtaining patents and trademarks, (b) customer agreements, tradenames, software, non-solicitation and non-compete agreements acquired in business combinations and valued at fair value at the acquisition date, (c) purchased software, and (d) the purchase cost of indefinite-lived website domains. The estimated useful lives of identifiable intangible assets with definite useful lives have been estimated to be between one and twenty years. Purchased website domain costs with an indefinite useful life are not subject to amortization, but are subject to an annual impairment test, by comparing their carrying amount with their corresponding fair value. For any given intangible asset with an indefinite useful life, if its fair value exceeds its carrying amount no impairment loss shall be recognized. The carrying value of intangibles is periodically reviewed and impairments, if any, are recognized when the future undiscounted cash flows realized from the assets is less than its carrying value.
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block]	Impairment of Long-Lived Assets Long-lived assets and identifiable intangibles held for use are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the sum of undiscounted expected future cash flows is less than the carrying amount of the asset or if changes in facts and circumstances indicate, an impairment loss is recognized and measured using the asset’s fair value. An impairment charge of $170 for purchased software was recorded in 2021. The Company did not recognize any other impairment loss during the years ended December 31, 2021 and 2020.
Classification and Valuation of Warrants [Policy Text Block]	Classification and Valuation of Warrants The Company accounts for warrants as either equity or liabilities based upon the characteristics and provisions of each particular instrument. Warrants valued and classified as equity are recorded as additional paid-in capital based on the issue date fair value and no further adjustment to valuation is made. As of December 31, 2021, the Company has no warrants or other derivative financial instruments that require separate accounting as liabilities and periodic revaluation.
Advertising Cost [Policy Text Block]	Advertising and Promotion Costs Advertising costs are charged to expense as incurred and were $145 and $287 for the years ended December 31, 2021 and 2020, respectively. The Company also incurred product promotion costs for demonstration products delivered to prospective customers of $924 and $747 for the years ended December 31, 2021 and 2020, respectively. Advertising and promotion costs are included in selling, general and administrative expenses in the accompanying statements of operations.
Demonstration and Training Costs [Policy Text Block]	Demonstration and Training Costs The Company maintains a demonstration and training department as a part of its sales and marketing activities and does not charge for product demonstrations or training. Training is not a condition or requirement of sale as most sales are made through distributors to their end customers. The Company conducts local and regional in-person, webinar and on-line demonstrations and use of force and escalation training to support law enforcement agencies with no purchase requirement. Such training, when provided, may occur before or after initial or subsequent purchase or field deployment of the Company’s products. The Company believes that law enforcement trainers and officers that have seen demonstrations or have been trained about its products are more supportive of their departments purchase and deployment of product.
Research and Development Expense, Policy [Policy Text Block]	Research and Development Costs Research and development costs are expensed as incurred.
Contract Manufacturers Policy [Policy Text Block]	Contract Manufacturers The Company employs contract manufacturers for production of certain components and sub-assemblies. The Company may provide parts and components to such parties from time to time but recognizes no revenue or markup on such transactions.
Lessee, Leases [Policy Text Block]	Leases The Company adopted ASC Topic 842, Leases (“Topic 842”) on January 1, 2019. In accordance with the guidance in Topic 842, the Company recognizes lease liabilities and corresponding right-of-use-assets for all leases with terms of greater than 12 months. Leases with a term of 12 months or less will be accounted for in a manner similar to the guidance for operating leases prior to the adoption of Topic 842. Refer to Note 9, Leases for more information.
Revenue from Contract with Customer [Policy Text Block]	Revenue Recognition In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”) and ASC Subtopic 340-40, Other Assets and Deferred Costs - Contracts with Customers (“ASC 340-40”), (collectively, “Topic 606”). On January 1, 2018, the Company adopted Topic 606 and, as it had no prior revenue or contracts with customers, there was no transition required nor any impact on prior results. ASU 2014-09 requires entities to recognize revenue through the application of a five-step model, which includes identification of the contract, identification of the performance obligations, determination of the transaction price, allocation of the transaction price to the performance obligations and recognition of revenue as the entity satisfies the performance obligations. See Note 2 for additional information.
Shipping and Handling Costs [Policy Text Block]	Shipping and Handling Costs Shipping and handling costs are included in cost of revenues. Shipping and handling costs invoiced to customers are included in revenue. Actual shipping and handling costs were $167 and $75 for the years ended December 31, 2021 and 2020, respectively. Actual revenues from shipping and handling were $88 and $63 for the years ended December 31, 2021 and 2020, respectively.
Exit Activity Expenses [Policy Text Block]	Exit Activity Expense During 2021 the Company recorded $747 of product line exit costs related to the wind down and closure of the BolaWrap 100 product line related to a shift in production efforts to a new BolaWrap 150 generation product requiring new tooling, new production equipment and processes and additional licensing. These non-cash inventory costs included end of life raw material write offs of $641 and tooling retirement costs of $106. The $747 of exit costs were recorded as a component of cost of revenues. There was no such expense recorded during the prior year. Development and start-up expense of new products are expensed as incurred except for capitalized equipment and tooling.
Standard Product Warranty, Policy [Policy Text Block]	Warranty Reserves The Company warrants its products and accessories to be free from defects in materials and workmanship for a period of one year from the date of purchase. The warranty is generally limited. The Company currently provides direct warranty service. International market warranties are generally similar to the U.S. market. The Company establishes a warranty reserve based on anticipated warranty claims at the time product revenues are recognized. Factors affecting warranty reserve levels include the number of units sold, anticipated cost of warranty repairs and anticipated rates of warranty claims. The Company evaluates the adequacy of the provision for warranty costs each reporting period. The warranty reserve was $96 and $48 at December 31, 2021 and 2020. Actual warranty costs could differ from estimates.
Segment Reporting, Policy [Policy Text Block]	Segment Information ASC Topic 280, “Segment Reporting,” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. The Company operates as a single segment and will evaluate additional segment disclosure requirements as it expands its operations.
Income Tax, Policy [Policy Text Block]	Income Taxes No income tax expense was recorded for the periods ended December 31, 2021 and 2020 due to losses incurred. Deferred tax assets and liabilities are determined based on temporary differences between the bases of certain assets and liabilities for income tax and financial reporting purposes. The Company maintains a valuation allowance with respect to deferred tax assets. The Company establishes a valuation allowance based upon the potential likelihood of realizing the deferred tax asset and taking into consideration the Company’s financial position and results of operations for the current period. Future realization of the deferred tax benefit depends on the existence of sufficient taxable income within the carry-forward period under the Federal tax laws. Changes in circumstances, such as the Company generating taxable income, could cause a change in judgment about the realizability of the related deferred tax asset. Any change in the valuation allowance will be included in income in the year of the change in estimates.
New Accounting Pronouncements, Policy [Policy Text Block]	Recently Issued Accounting Guidance Adopted First Quarter of 2021: In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. We adopted ASU 2019-12 in the first quarter ended March 31, 2021 and it did not have a significant impact on our financial statements. Other Pronouncements: In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (“Subtopic 470-20”) and Derivatives and Hedging—Contracts in Entity’s Own Equity “(Subtopic 815-40”): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies accounting for convertible instruments by removing major separation models required under current U.S. GAAP. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and it also simplifies the diluted earnings per share calculation in certain areas. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021, with early adoption permitted. The Company is currently evaluating the impact of this standard on its financial statements and related disclosures. In May 2021, the FASB issued ASU No. 2021-05, Leases (Topic 842), Lessors - Certain Leases with Variable Lease Payments. This ASU addresses an issue related to a lessor's accounting for certain leases with variable lease payments. The amendments in this Update affect lessors with lease contracts that (1) have variable lease payments that do not depend on a reference index or a rate and (2) would have resulted in the recognition of a selling loss at lease commencement if classified as a sales-type lease or a direct financing lease. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021. The Company does not expect that the adoption of this standard will have a material effect on the Company’s consolidated financial statements. In October 2021, the FASB issued ASU 2021-08 (“ASU No. 2021-08”), Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, to require that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. The amendments in this update should be applied prospectively and are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements and related disclosures. The Company has reviewed other recently issued, but not yet effective, accounting pronouncements and does not believe the future adoptions of any such pronouncements will be expected to cause a material impact on its financial condition or the results of operations.

Note 3 - Acquisition (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

Equipment	$	10
Software		460
Customer contracts		40
Tradenames		2
Noncompete agreements		10
Deferred revenue		(15	)
Total consideration	$	507

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]

Description	Useful life in years		Fair Value
Software		5	$	460
Customer contracts		1		40
Tradenames		1		2
Noncompete agreements		2		10
Total acquired intangible assets			$	512

Note 4 - Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]

	As of December 31, 2021
	Adjusted		Unrealized		Unrealized			Market
	Cost		Gains		Losses			Value
Level 1:
Money Market Funds	$	1,670	$	-	$	-		$	1,670
U.S. Treasury securities considered cash equivalents		-		-		-			-
U.S. Treasury securities in short-term investments		29,989		-		(6	)		29,983
Total Financial Assets	$	31,659	$	-	$	(6	)	$	31,653

	*As of December 31, 2020*
	*Adjusted*		*Unrealized*		*Unrealized*		*Market*
	*Cost*		*Gains*		*Losses*		*Value*
Level 1:
Money Market Funds	$	6,035	$	-	$	-	$	6,035
U.S. Treasury securities considered cash equivalents		9,998		-		-		9,998
U.S. Treasury securities in short-term investments		24,979		15		-		24,994
Total Financial Assets	$	41,012	$	15	$	-	$	41,027

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Note 5 - Inventories, Net (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Inventory, Current [Table Text Block]

	December 31,
	2021		2020
Finished goods	$	1,027	$	1,249
Work in process		2		64
Raw materials		537		1,342
Inventories - net	$	1,566	$	2,655

Note 6 - Property and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Table Text Block]

	December 31,
	2021			2020
Production and lab equipment	$	500		$	148
Tooling		273			81
Computer equipment		467			180
Furniture, fixtures and improvements		176			165
		1,416			574
Accumulated depreciation		(440	)		(217	)
Property and equipment, net	$	976		$	357

Note 7 - Intangible Assets, Net (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Finite-Lived Intangible Assets [Table Text Block]

	December 31,
	2021			2020
Amortizable intangible assets:
Patents	$	416		$	280
Trademarks		134			84
Software		1,212			662
Other		50			50
		1,812			1,076
Accumulated amortization		(174	)		(23	)
Total amortizable		1,638			1,053
Indefinite life assets (non-amortizable)		344			344
Total intangible assets, net	$	1,982		$	1,397

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

2022	$	261
2023		256
2024		256
2025		251
2026		164
Thereafter		450
Total estimated amortization expense	$	1,638

Note 8 - Accounts Payable and Accrued Liabilities (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Accrued Liabilities [Table Text Block]

	December 31,
	2021		2020
Patent and legal costs	$	28	$	65
Accrued compensation		628		563
Warranty costs		96		48
Taxes and other		72		45
	$	824	$	721

Note 9 - Leases (Tables)

12 Months Ended

Dec. 31, 2021

Lessee, Operating Lease, Disclosure [Table Text Block]

Operating lease liability- short term	$	56
Operating lease liability - long term		-
Total Operating Lease Liability	$	56

Lessee, Operating Lease, Liability, Maturity [Table Text Block]

2022	$	57
Total future minimum lease payments		57
Less imputed interest		(1	)
Total	$	56

Note 11 - Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Warrant Activity [Table Text Block]

	Number			Average Price Per Share
Shares purchasable under outstanding warrants at January 1, 2020		6,620,620		$	5.41
Stock purchase warrants issued		2,066,667		$	6.00
Stock purchase warrants exercised		(5,155,976	)	$	5.08
Stock purchase warrants expired		(324,401	)	$	5.00
Shares purchasable under outstanding warrants at December 31, 2020		3,206,910		$	6.36
Stock purchase warrants issued		-			-
Stock purchase warrants exercised		(1,815,012	)	$	6.64
Stock purchase warrants expired		(231	)	$	7.58
Shares purchasable under outstanding warrants at December 31, 2021		1,391,667		$	6.00

Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]

	Number of		Exercise Price
Description	Common Shares		Per Share		Expiration Date
Purchase Warrants		1,391,667	$	6.00	June 1, 2022

Note 12 - Share-based Compensation (Tables)

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement, Option, Activity [Table Text Block]

				Weighted Average
	*Options on*					*Remaining*		*Aggregate*
	*Common*			*Exercise*		*Contractual*		*Intrinsic*
	*Shares*			*Price*		*Term*		*Value*
Outstanding January 1, 2020		2,928,750		$	2.96		3.71
Granted		1,423,836		$	6.66		-
Exercised		(371,000	)	$	1.90		-
Forfeited, cancelled, expired		(50,000	)	$	3.00		-
Outstanding December 31, 2020		3,931,586		$	4.41		4.80
Granted		1,254,500		$	5.33
Exercised		(915,404	)	$	1.83
Forfeited, cancelled, expired		(334,799	)	$	5.14
Outstanding December 31, 2021		3,935,883		$	5.24		4.79	$	1,608
Exercisable December 31, 2021		2,415,063		$	5.19		2.44	$	1,608

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

	For the Year Ended
	December 31,
	2021			2020
Expected stock price volatility		50	%		47	%
Risk-free interest rate		0.90	%		0.38	%
Expected dividend yield		0	%		0	%
Expected life of options - years		5.74			5.64
Weighted-average fair value of options granted	$	2.57		$	2.90

Share-based Payment Arrangement, Option, Exercise Price Range [Table Text Block]

				Weighted
				Average		Weighted				Weighted
				Remaining		Average				Average
*Range of*		*Number*		*Contractual*		*Exercise*		*Number*		*Exercise*
*Exercise Prices*		*Outstanding*		*Life (Years)*		*Price*		*Exercisable*		*Price*
$	1.50 - 3.61		652,750		1.32	$	1.61		652,750	$	1.61
$	3.85 - 5.775		2,638,133		5.83	$	5.20		1,373,564	$	5.33
$	5.88 - 8.82		295,000		8.45	$	6.58		38,749	$	6.34
$	11.22		350,000		0.33	$	11.22		350,000	$	11.22

Schedule of Nonvested Restricted Stock Units Activity [Table Text Block]

				Weighted Average		Weighted Average
	*Service-Based*			*Grant Date*		*Vesting*
	*RSU's*			*Fair Value*		*Period (Years)*
Unvested at January 1, 2020		308,087		$	6.77	3.0
Granted - service based		310,874		$	6.02
Granted - performance based		35,211		$	4.26
Vested		(144,687	)	$	5.17
Forfeited and cancelled		(81,479	)	$	6.47
Unvested at December 31, 2020		428,006		$	6.13	2.3
Granted - service based		398,662		$	5.59
Vested		(524,491	)	$	5.55
Forfeited and cancelled		(32,874	)	$	6.10
Unvested at December 31, 2021		269,303		$	6.47	2.0

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]

	For the Year Ended
	December 31,
	2021		2020
Selling, general and administrative	$	4,558	$	1,957
Research and development		798		280
Total share-based expense	$	5,356	$	2,237

Note 15 - Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	Year Ended December 31,
	2021			2020
Current tax benefit	$	-		$	-
Deferred tax benefit		6,409			3,158
Change in valuation allowance		(6,409	)		(3,158	)
Income tax benefit (provision)	$	-		$	-

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	Year Ended December 31,
	2021			2020
Income taxes benefit computed at federal statutory rate	$	5,139		$	2,642
State income taxes, net of federal effect		480			216
Permanent differences and other		790			300
Change in valuation allowance		(6,409	)		(3,158	)
Income tax benefit (provision)	$	-		$	-

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

	December 31,
	2021			2020
Deferred tax assets:
Net operating losses	$	11,773		$	5,444
Research tax credits		60			45
Stock compensation		847			542
Accruals and other		211			169
		12,891			6,200
Deferred tax liabilities:
Depreciation and other		678			396
		678			396
Net deferred tax assets		12,213			5,804
Less valuation allowance		(12,213	)		(5,804	)
Net deferred taxes after valuation allowance	$	-		$	-

Note 16 - Major Customers and Related Information (Tables)

12 Months Ended

Dec. 31, 2021

Disaggregation of Revenue [Table Text Block]

	For the Year
	Ended December 31,
	2021		2020
Americas	$	3,357	$	1,443
Europe, Middle East and Africa		2,385		1,046
Asia Pacific		1,987		1,455
	$	7,729	$	3,944

Note 1 - Organization and Summary of Significant Accounting Policies (Details Textual) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2021 USD ($)	Dec. 31, 2021 USD ($) $ / shares shares	Dec. 31, 2020 USD ($) $ / shares shares
Common Stock, Par or Stated Value Per Share (in dollars per share) \| $ / shares		$ 0.0001	$ 0.0001
Number of Wholly-owned Subsidiaries		1
Short-term Investment, Allowance for Credit Loss		$ 0	$ 0
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) \| shares		5,596,853	7,566,502
Accounts Receivable, Allowance for Credit Loss, Ending Balance		$ 134	$ 10
Inventory Valuation Reserves, Ending Balance		$ 0
Property, Plant and Equipment, Useful Life (Year)		3 years
Impairment, Long-Lived Asset, Held-for-Use, Total		$ 0	0
Advertising Expense		145	287
Marketing Expense		924	747
Cost of Revenue, Total		5,734	2,601
Revenue from Contract with Customer, Including Assessed Tax		7,381	3,868
Product Line Exit Expense		747	0
Write-off, Inventory Cost		641
Retiring Cost		106
Standard Product Warranty Accrual, Ending Balance		96	48
Shipping and Handling [Member]
Cost of Revenue, Total		167	75
Revenue from Contract with Customer, Including Assessed Tax		88	$ 63
Computer Software, Intangible Asset [Member]
Impairment, Long-Lived Asset, Held-for-Use, Total	$ 170	$ 170
Minimum [Member]
Finite-Lived Intangible Asset, Useful Life (Year)		1 year
Maximum [Member]
Finite-Lived Intangible Asset, Useful Life (Year)		20 years

Note 2 - Revenue and Product Costs (Details Textual) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Contract with Customer, Liability, Total	$ 265	$ 16
Contract with Customer, Asset, after Allowance for Credit Loss, Total	0	0
Virtual Reality Training [Member]
Contract with Customer, Liability, Total	172	14
Extended Product Warranties [Member]
Contract with Customer, Liability, Total	$ 67	$ 2

Note 3 - Acquisition (Details Textual) - USD ($) $ in Thousands		3 Months Ended	6 Months Ended	12 Months Ended
	Dec. 14, 2020	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2021	Dec. 31, 2020
Payments to Acquire Businesses, Gross				$ (0)	$ 210
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Deferred Revenue	$ 15
Other Nonoperating Income (Expense), Total				$ 15	$ (3)
NSENA Inc. [Member]
Payments to Acquire Businesses, Gross	210
Business Combination, Consideration Transferred, Liabilities Incurred		$ 0	$ 23
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Deferred Revenue	15
Other Nonoperating Income (Expense), Total		$ 23
Acquired Finite-lived Intangible Asset, Residual Value	0
NSENA Inc. [Member] \| Short-term Note Payable [Member]
Business Combination, Consideration Transferred, Liabilities Incurred	275
NSENA Inc. [Member] \| Note Payale on March 15, 2021 [Member]
Business Combination, Consideration Transferred, Liabilities Incurred	100
NSENA Inc. [Member] \| Note Payble on June 15, 2021 [Member]
Business Combination, Consideration Transferred, Liabilities Incurred	100
NSENA Inc. [Member] \| Note Payable on September 15, 2021 [Member]
Business Combination, Consideration Transferred, Liabilities Incurred	$ 75

Note 3 - Acquisition - Estimates of Fair Value of Assets Acquired and Liabilities Assumed (Details) $ in Thousands	Dec. 14, 2020 USD ($)
Equipment	$ 10
Finite-lived Intangibles	512
Deferred revenue	(15)
Total consideration	507
Computer Software, Intangible Asset [Member]
Finite-lived Intangibles	460
Customer Contracts [Member]
Finite-lived Intangibles	40
Trade Names [Member]
Finite-lived Intangibles	2
Noncompete Agreements [Member]
Finite-lived Intangibles	$ 10

Note 3 - Acquisition - Fair Value of Intangible Assets Acquired (Details) $ in Thousands	Dec. 14, 2020 USD ($)
Finite-lived Intangibles	$ 512
Computer Software, Intangible Asset [Member]
Finite-lived Intangibles, useful life (Year)	5 years
Finite-lived Intangibles	$ 460
Customer Contracts [Member]
Finite-lived Intangibles, useful life (Year)	1 year
Finite-lived Intangibles	$ 40
Trade Names [Member]
Finite-lived Intangibles, useful life (Year)	1 year
Finite-lived Intangibles	$ 2
Noncompete Agreements [Member]
Finite-lived Intangibles, useful life (Year)	2 years
Finite-lived Intangibles	$ 10

Note 4 - Financial Instruments (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
OCI, Debt Securities, Available-for-Sale, Unrealized Holding Gain (Loss), before Adjustment, after Tax	$ (21)	$ 15

Note 4 - Financial Instruments - Instruments by Significant Investment Category (Details) - Fair Value, Inputs, Level 1 [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Adjusted cost	$ 31,659	$ 41,012
Unrealized Gains	0	15
Unrealized Losses	(6)	0
Market Value	31,653	41,027
Money Market Funds [Member]
Adjusted cost	1,670	6,035
Unrealized Gains	0	0
Unrealized Losses	0	0
Market Value	1,670	6,035
US Treasury Securities Considered Cash Equivalents [Member]
Adjusted cost	0	9,998
Unrealized Gains	0	0
Unrealized Losses	0	0
Market Value	0	9,998
US Treasury Securities in Short-term Investments [Member]
Adjusted cost	29,989	24,979
Unrealized Gains	0	15
Unrealized Losses	(6)	0
Market Value	$ 29,983	$ 24,994

Note 5 - Inventories, Net (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Inventory Write-down	$ 0	$ (68)
Product Line Exit Costs [Member]
Inventory Write-down	$ 621
Raw Materials and Scrap Parts [Member]
Inventory Write-down		$ (68)

Note 5 - Inventories, Net - Summary of Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Finished goods	$ 1,027	$ 1,249
Work in process	2	64
Raw materials	537	1,342
Inventories - net	$ 1,566	$ 2,655

Note 6 - Property and Equipment, Net (Details Textual) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2021	Dec. 31, 2020
Depreciation, Total		$ 297	$ 144
Production Costs, Period Cost	$ 106

Note 6 - Property and Equipment, Net - Summary of Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Property and equipment, gross	$ 1,416	$ 574
Accumulated depreciation	(440)	(217)
Property and equipment, net	976	357
Production and Lab Equipment [Member]
Property and equipment, gross	500	148
Tooling [Member]
Property and equipment, gross	273	81
Computer Equipment [Member]
Property and equipment, gross	467	180
Furniture and Fixtures [Member]
Property and equipment, gross	$ 176	$ 165

Note 7 - Intangible Assets, Net (Details Textual) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2021	Dec. 31, 2020
Amortization of Intangible Assets, Total		$ 182	$ 18
Impairment, Long-Lived Asset, Held-for-Use, Total		0	$ 0
Computer Software, Intangible Asset [Member]
Impairment, Long-Lived Asset, Held-for-Use, Total	$ 170	$ 170

Note 7 - Intangible Assets, Net - Summary of Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Amortizable intangible assets, gross	$ 1,812	$ 1,076
Accumulated amortization	(174)	(23)
Total estimated amortization expense	1,638	1,053
Indefinite life assets (non-amortizable)	344	344
Total intangible assets, net	1,982	1,397
Patents [Member]
Amortizable intangible assets, gross	416	280
Trademarks [Member]
Amortizable intangible assets, gross	134	84
Computer Software, Intangible Asset [Member]
Amortizable intangible assets, gross	1,212	662
Other Intangible Assets [Member]
Amortizable intangible assets, gross	$ 50	$ 50

Note 7 - Intangible Assets, Net - Future Amortization Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
2022	$ 261
2023	256
2024	256
2025	251
2026	164
Thereafter	450
Total estimated amortization expense	$ 1,638	$ 1,053

Note 8 - Accounts Payable and Accrued Liabilities (Details Textual) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Commissions Payable [Member]
Employee-related Liabilities, Total	$ 305	$ 563
Syzygy Licensing LLC [Member]
Accounts Payable, Total	$ 228	53
V3 Capital Partners, LLC [Member]
Accounts Payable, Total		$ 10

Note 8 - Accounts Payable and Accrued Liabilities - Summary of Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Patent and legal costs	$ 28	$ 65
Accrued compensation	628	563
Warranty costs	96	48
Taxes and other	72	45
Accrued Liabilities, Current, Total	$ 824	$ 721

Note 9 - Leases (Details Textual) - USD ($) $ in Thousands	12 Months Ended
Note 9 - Leases (Details Textual) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Operating Lease, Weighted Average Remaining Lease Term (Year)	7 months 6 days
Operating Lease, Weighted Average Discount Rate, Percent	7.00%
Variable Lease, Payment	$ 29
Short-term Lease, Cost	0	$ 0
Improved Office and Warehouse in Tempe, Arizona [Member]
Operating Lease, Right-of-Use Asset, Amortization Expense	88	122
Operating Lease, Expense	$ 95	$ 137

Note 9 - Leases - Summary of Operating Lease Obligations (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Operating lease liability- short term	$ 56	$ 94
Operating lease liability - long term	0	$ 56
Total Operating Lease Liability	$ 56

Note 9 - Leases - Future Lease Payments (Details) $ in Thousands	Dec. 31, 2021 USD ($)
2022	$ 57
Total future minimum lease payments	57
Less imputed interest	(1)
Total	$ 56

Note 10 - Debt (Details Textual) - USD ($) $ in Thousands		12 Months Ended
Note 10 - Debt (Details Textual) - USD ($) $ in Thousands	May 01, 2020	Dec. 31, 2021	Dec. 31, 2020
Gain (Loss) on Extinguishment of Debt, Total		$ 0	$ 417
Paycheck Protection Program CARES Act [Member]
Proceeds from Issuance of Unsecured Debt	$ 414
Debt Instrument, Term (Year)	2 years
Debt Instrument, Interest Rate, Stated Percentage	1.00%
Long-term Debt, Gross		414
Gain (Loss) on Extinguishment of Debt, Total		$ 417

Note 11 - Stockholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Jun. 02, 2020	Dec. 31, 2021	Dec. 31, 2020
Common Stock, Shares Authorized (in shares)		150,000,000	150,000,000
Common Stock, Par or Stated Value Per Share (in dollars per share)		$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized (in shares)		5,000,000	5,000,000
Preferred Stock, Par or Stated Value Per Share (in dollars per share)		$ 0.0001	$ 0.0001
Proceeds from issuance of Common Stock and Warrants		$ 0	$ 12,400
Proceeds from Warrant Exercises		$ 12,047	$ 26,191
Class of Warrant or Right, Exercised During Period (in shares)		1,815,012,000	5,155,976
Payments of Facilitating Exercise of Warrants			$ 1,017
Proceeds from Warrant Exercises, Net of Exercise Costs			25,174
Officer [Member]
Proceeds from Warrant Exercises			$ 1,667
Class of Warrant or Right, Exercised During Period (in shares)			333,334
Class of Warrant or Right, Exercised During Period, Exercise Price (in dollars per share)			$ 5.00
Warrants Issued with June 2019 Follow-On Offering [Member]
Warrants and Rights Outstanding, Term (Year)	2 years
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)	$ 6.00
June 2020 Follow-on Public Offering [Member]
Number of Shares Per Unit Issued (in shares)	1
Number of Warrants Per Unit (in shares)	1
Shares Issued, Price Per Share (in dollars per share)	$ 6.00
Equity Offering, Units Issued (in shares)	2,066,667
Proceeds from issuance of Common Stock and Warrants	$ 12,400
Proceeds From Issuance of Common Stock and Warrants, Net of Issuance Costs	$ 11,670

Note 11 - Stockholders' Equity - Summary of Warrant Activity (Details) - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Stock purchase warrants exercised, number (in shares)	(1,815,012,000)	(5,155,976)
Purchase Warrants [Member]
Stock purchase warrants outstanding, number (in shares)	3,206,910	6,620,620
Shares purchasable under outstanding warrants, exercise price (in dollars per share)	$ 6.36	$ 5.41
Stock purchase warrants issued, number (in shares)		2,066,667
Stock purchase warrants issued, exercise price (in dollars per share)		$ 6.00
Stock purchase warrants exercised, number (in shares)	(1,815,012)	(5,155,976)
Stock purchase warrants exercised, exercise price (in dollars per share)	$ 6.64	$ 5.08
Stock purchase warrants expired (in shares)	(231)	(324,401)
Stock purchase warrants expired (in dollars per share)	$ 7.58	$ 5.00
Stock purchase warrants outstanding, number (in shares)	1,391,667	3,206,910
Shares purchasable under outstanding warrants, exercise price (in dollars per share)	$ 6.00	$ 6.36

Note 11 - Stockholders' Equity - Outstanding Common Stock Purchase Warrants (Details) - Purchase Warrants Expiring June 18, 2021 [Member]	Dec. 31, 2021 $ / shares shares
Warrants, number of common shares (in shares) \| shares	1,391,667
Warrants, exercise price (in dollars per share) \| $ / shares	$ 6.00

Note 12 - Share-based Compensation (Details Textual) - USD ($) Pure in Thousands	1 Months Ended						2 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Apr. 30, 2020	Jan. 31, 2020	May 31, 2019	Jan. 31, 2019	Sep. 30, 2019	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Mar. 31, 2017
Share-based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate									0.00%	0.00%
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount									$ 3,000.0
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)									2 years 2 months 12 days	2 years
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)									2 years	2 years 3 months 18 days	3 years
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount									$ 1,400
The 2017 Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares)		6,000,000							7,500,000			2,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized (in shares)	1,500,000	1,900,000			2,100,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares)									1,380,816
The 2017 Stock Incentive Plan [Member] \| Restricted Stock Units (RSUs) [Member] \| Share-based Payment Arrangement, Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted (in shares)			122,222				45,000	114,660
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)			3 years				3 years
The 2017 Stock Incentive Plan [Member] \| Restricted Stock Units (RSUs) [Member] \| Share-based Payment Arrangement, Employee [Member] \| Share-based Payment Arrangement, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)								3 years
The 2017 Stock Incentive Plan [Member] \| Restricted Stock Units (RSUs) [Member] \| Share-based Payment Arrangement, Employee [Member] \| Share-based Payment Arrangement, Tranche Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)								4 years
The 2017 Stock Incentive Plan [Member] \| Restricted Stock Units (RSUs) [Member] \| Officers and Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted (in shares)						263,087
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)						3 years
The 2017 Stock Incentive Plan [Member] \| Restricted Stock Units (RSUs) [Member] \| Officers and Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted (in shares)				73,992
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)				3 years
The 2017 Stock Incentive Plan [Member] \| Restricted Stock Units (RSUs) [Member] \| Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted (in shares)			35,211

Note 12 - Share-based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Options on Common Shares, Outstanding (in shares)	3,931,586	2,928,750
Outstanding, weighted average exercise price (in dollars per share)	$ 4.41	$ 2.96
Outstanding, remaining contractual term (Year)	4 years 9 months 14 days	4 years 9 months 18 days	3 years 8 months 15 days
Options on Common Shares, Granted (in shares)	1,254,500	1,423,836
Granted, weighted average exercise price (in dollars per share)	$ 5.33	$ 6.66
Options on Common Shares, Exercised (in shares)	(915,404)	(371,000)
Exercised, weighted average exercise price (in dollars per share)	$ 1.83	$ 1.90
Options on Common Shares, Forfeited, cancelled, expired (in shares)	(334,799)	(50,000)
Forfeited, cancelled, expired, weighted average exercise price (in dollars per share)	$ 5.14	$ 3.00
Options on Common Shares, Outstanding (in shares)	3,935,883	3,931,586	2,928,750
Outstanding, weighted average exercise price (in dollars per share)	$ 5.24	$ 4.41	$ 2.96
Outstanding, aggregate intrinsic value	$ 1,608
Exercisable December 31, 2021 (in shares)	2,415,063
Exercisable weighted average exercise price (in dollars per share)	$ 5.19
Exercisable, remaining contractual term (Year)	2 years 5 months 8 days
Exercisable December 31, 2021	$ 1,608

Note 12 - Share-based Compensation - Summary of Stock Option Valuation Assumptions (Details) - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Weighted-average fair value of options granted (in dollars per share)	$ 2.57	$ 2.90
Share-based Payment Arrangement, Option [Member]
Expected stock price volatility	50.00%	47.00%
Risk-free interest rate	0.90%	0.38%
Expected dividend yield	0.00%	0.00%
Expected life of options (Year)	5 years 8 months 26 days	5 years 7 months 20 days

Note 12 - Share-based Compensation - Information Regarding Stock Options Outstanding (Details)	12 Months Ended
	Dec. 31, 2021 $ / shares shares
Exercise Price Range One [Member]
Lower range (in dollars per share)	$ 1.50
Number outstanding (in shares) \| shares	652,750
Options outstanding, weighted average remaining contractual term (Year)	1 year 3 months 25 days
Options outstanding, weighted average exercise price (in dollars per share)	$ 1.61
Options exercisable, number of shares (in shares) \| shares	652,750
Options exercisable, weighted average exercise price (in dollars per share)	$ 1.61
Exercise Price Range Two [Member]
Lower range (in dollars per share)	$ 3.85
Number outstanding (in shares) \| shares	2,638,133
Options outstanding, weighted average remaining contractual term (Year)	5 years 9 months 29 days
Options outstanding, weighted average exercise price (in dollars per share)	$ 5.20
Options exercisable, number of shares (in shares) \| shares	1,373,564
Options exercisable, weighted average exercise price (in dollars per share)	$ 5.33
Exercise Price Range Three [Member]
Lower range (in dollars per share)	$ 5.88
Number outstanding (in shares) \| shares	295,000
Options outstanding, weighted average remaining contractual term (Year)	8 years 5 months 12 days
Options outstanding, weighted average exercise price (in dollars per share)	$ 6.58
Options exercisable, number of shares (in shares) \| shares	38,749
Options exercisable, weighted average exercise price (in dollars per share)	$ 6.34
Exercise Price Range Four [Member]
Upper range (in dollars per share)	$ 11.22
Number outstanding (in shares) \| shares	350,000
Options outstanding, weighted average remaining contractual term (Year)	3 months 29 days
Options outstanding, weighted average exercise price (in dollars per share)	$ 11.22
Options exercisable, number of shares (in shares) \| shares	350,000
Options exercisable, weighted average exercise price (in dollars per share)	$ 11.22

Note 12 - Share-based Compensation - Summary of RSU Activity (Details) - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Restricted Stock Units (RSUs) [Member]
Awards other than options, unvested, beginning balance (in shares)	428,006	308,087
Awards other than options, unvested, weighted average grant date fair value, beginning balance (in dollars per share)	$ 6.13	$ 6.77
Unvested, vesting period (Year)	2 years	2 years 3 months 18 days	3 years
Awards other than options, Vested (in shares)	(524,491)	(144,687)
Awards other than options, vested, weighted average grant date fair value (in dollars per share)	$ 5.55	$ 5.17
Awards other than options, Forfeited and cancelled (in shares)	(32,874)	(81,479)
Awards other than options, forfeited and cancelled, weighted average grant date fair value (in dollars per share)	$ 6.10	$ 6.47
Awards other than options, unvested, ending balance (in shares)	269,303	428,006	308,087
Awards other than options, unvested, weighted average grant date fair value, ending balance (in dollars per share)	$ 6.47	$ 6.13	$ 6.77
Service-based RSU [Member]
Awards other than options, Granted (in shares)	398,662	310,874
Awards other than options, granted, weighted average grant date fair value (in dollars per share)	$ 5.59	$ 6.02
Performance-based RSU [Member]
Awards other than options, Granted (in shares)		35,211
Awards other than options, granted, weighted average grant date fair value (in dollars per share)		$ 4.26

Note 12 - Share-based Compensation - Allocation of Share-based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Share-based expense	$ 5,356	$ 2,237
Selling, General and Administrative Expenses [Member]
Share-based expense	4,558	1,957
Research and Development Expense [Member]
Share-based expense	$ 798	$ 280

Note 13 - Commitments and Contingencies (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Sep. 30, 2016
Future Component Deliveries and Contract Services [Member]
Purchase Commitment, Remaining Minimum Amount Committed	$ 1,466,000
Related Party Technology License Agreement [Member] \| Syzygy Licensing LLC [Member]
Royalty Payments, Percentage of Product Revenue			4.00%
Maximum Royalties to Be Paid Under Agreement			$ 1,000,000
Royalty Expense	$ 278,000	$ 143,000

Note 14 - Related Party Transactions (Details Textual) - USD ($)	6 Months Ended	7 Months Ended	12 Months Ended
	Dec. 31, 2021	Jul. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Mr. Elwood Norris [Member]
Reimbursement of Expenses to Related Party, Monthly Amount			$ 1,500
Related Party Transaction, Amounts of Transaction			$ 18,000	$ 18,000
Consulting Fees to Related Party, Monthly Amount	$ 7,500
Mr. Elwood Norris [Member] \| Consultant [Member]
Related Party Transaction, Amounts of Transaction	$ 45,000
V3 Capital Partners, LLC [Member]
Related Party Transaction, Amounts of Transaction				90,000
Payment to Related Party, Monthly Amount				$ 10,000
V3 Capital Partners, LLC [Member] \| Bonus for Assistance in a Financing [Member]
Related Party Transaction, Amounts of Transaction		$ 175,000

Note 15 - Income Taxes (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Operating Loss Carryforward Subject to Expiration	$ 703
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%
Domestic Tax Authority [Member]
Operating Loss Carryforwards, Total	$ 52,004
Operating Loss Carryforwards, Tax Deductions From Stock Options Exercises and RSU Vesting	3,168	$ 720
State and Local Jurisdiction [Member]
Operating Loss Carryforwards, Tax Deductions From Stock Options Exercises and RSU Vesting	$ 3,168	$ 720

Note 15 - Income Taxes - Income Tax Expense (Benefits) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Current tax benefit	$ 0	$ 0
Deferred tax benefit	6,409	3,158
Change in valuation allowance	(6,409)	(3,158)
Income tax benefit (provision)	$ 0	$ 0

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Note 15 - Reconciliations of Federal Statutory Rate to Effective Income Tax Rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Income taxes benefit computed at federal statutory rate	$ 5,139	$ 2,642
State income taxes, net of federal effect	480	216
Permanent differences and other	790	300
Change in valuation allowance	(6,409)	(3,158)
Income tax benefit (provision)	$ 0	$ 0

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Note 15 - Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Net operating losses	$ 11,773	$ 5,444
Research tax credits	60	45
Stock compensation	847	542
Accruals and other	211	169
Deferred Tax Assets, Gross, Total	12,891	6,200
Depreciation and other	678	396
Deferred Tax Liabilities, Gross, Total	678	396
Net deferred tax assets	12,213	5,804
Less valuation allowance	(12,213)	(5,804)
Net deferred taxes after valuation allowance	$ 0	$ 0

Note 16 - Major Customers and Related Information (Details Textual) - Customer Concentration Risk [Member]	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Revenue Benchmark [Member]
Number of Major Customers	3	2
Revenue Benchmark [Member] \| Distributor One [Member]
Concentration Risk, Percentage	26.00%	17.00%
Revenue Benchmark [Member] \| Distributor Two [Member]
Concentration Risk, Percentage	19.00%	16.00%
Revenue Benchmark [Member] \| Distributor Three [Member]
Concentration Risk, Percentage	17.00%
Accounts Receivable [Member]
Number of Major Customers	3
Accounts Receivable [Member] \| Distributor One [Member]
Concentration Risk, Percentage	48.00%	28.00%
Accounts Receivable [Member] \| Distributor Two [Member]
Concentration Risk, Percentage	16.00%	26.00%
Accounts Receivable [Member] \| Distributor Three [Member]
Concentration Risk, Percentage	15.00%

Note 16 - Major Customers and Related Information - Disaggregation of Revenue by Geographic Region (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Revenues	$ 7,729	$ 3,944
Americas [Member]
Revenues	3,357	1,443
Europe, Middle East and Africa [Member]
Revenues	2,385	1,046
Asia Pacific [Member]
Revenues	$ 1,987	$ 1,455

Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

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