XML 18 R9.htm IDEA: XBRL DOCUMENT
v3.23.2

Note 2 - Summary of Significant Accounting Policies | 6 Months Ended
--- | ---
Jun. 30, 2023
Notes to Financial Statements |
Significant Accounting Policies [Text Block] | 2. Summary of significant accounting policies The significant accounting policies and estimates used in preparation of the condensed consolidated financial statements are described in the Company’s audited consolidated financial statements as of and for the year ended December 31, 2022, and the notes thereto, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the Securities and Exchange Commission, or the SEC, on March 9, 2023. There have been no material changes in the Company’s significant accounting policies during the three and six months ended June 30, 2023. Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates ("ASU") of the Financial Accounting Standards Board (“FASB”) and pursuant to the rules and regulations of the SEC. Accordingly, they do not include all the information and footnotes required by such accounting principles for complete financial statements. In the opinion of management, all adjustments (which include normal recurring adjustments) considered necessary to present fairly each of the condensed consolidated balance sheet as of June 30, 2023, the condensed consolidated statements of operations for the three and six months ended June 30, 2023 and June 30, 2022, the condensed consolidated statements of stockholders' equity for the three and six months ended June 30, 2023 and June 30, 2022 and the condensed consolidated statements of cash flows for the six months ended June 30, 2023 and June 30, 2022, as applicable, have been made. The condensed consolidated balance sheet as of December 31, 2022 has been derived from the Company’s audited consolidated financial statements as of such date, but it does not include all disclosures required by U.S. GAAP. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements for the period ended December 31, 2022, which are included on Form 10-K filed with the Securities and Exchange Commission on March 9, 2023. The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of results that may be expected for the year ending December 31, 2023. Principles of consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its Subsidiaries, both of which are wholly-owned subsidiaries. Significant inter-company accounts and transactions have been eliminated in consolidation. Use of estimates The preparation of the condensed consolidated financial statements requires management of the Company to make a number of estimates and assumptions relating to the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of expenses during the period. Significant items subject to such estimates and assumptions include the carrying amount and valuation of long-lived assets, valuation allowances for deferred tax assets, the determination of stock-based compensation expense and the determination of the fair value of stock warrants issued. Actual results could differ from those estimates. Cash and cash equivalents The Company considers all highly liquid instruments with original or remaining maturities of ninety days or less at the date of purchase to be cash equivalents. The Company maintains its cash balances in large financial institutions. Periodically, such balances may be in excess of federally insured limits. Inventory Inventory is stated at the lower of cost or net realizable value. Cost is recorded on a first-in, first-out basis using the weighted average method. Net realizable value is determined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The Company records a write-down, if necessary, to reduce the carrying value of inventory to its net realizable value. The effect of these write-downs is to establish a new cost basis in the related inventory, which is not subsequently written up. Net loss per share Basic net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss by the weighted average number of common share equivalents outstanding for the period determined using the treasury-stock method or the if-converted method, as applicable. For purposes of this calculation, stock options, restricted stock units (RSUs) and warrants to purchase common stock are considered to be common stock equivalents and are only included in the calculation of diluted net loss per share when their effect is dilutive. The following shares underlying outstanding convertible notes, stock options, RSUs and warrants to purchase common stock were anti-dilutive due to a net loss in the periods presented and, therefore, were excluded from the dilutive weighted average securities computation for the three and six months ended June 30, as indicated below:
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
Excluded potentially dilutive weighted average securities (1): |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Options to purchase common stock |  |  | 417,749 |  |  |  | 1,020,949 |  |  |  | 704,316 |  |  |  | 1,023,814 |
Unvested restricted stock units |  |  | 6,181,141 |  |  |  | 4,126,930 |  |  |  | 5,770,715 |  |  |  | 4,277,456 |
Financing warrants to purchase common stock |  |  | 6,372 |  |  |  | 6,372 |  |  |  | 6,372 |  |  |  | 6,372 |
Total potential dilutive weighted average securities |  |  | 6,605,262 |  |  |  | 5,154,251 |  |  |  | 6,481,403 |  |  |  | 5,307,642 |
(1) | Securities are presented on a weighted average outstanding calculation as required if the securities were dilutive.
Property, plant and equipment, net Property, plant and equipment are stated at cost net of accumulated depreciation. Depreciation on property, plant and equipment is calculated on the straight-line basis over the estimated useful lives of the assets. Leasehold improvements are depreciated over the shorter of the life of the asset or the remaining term of the lease. We periodically evaluate our property, plant and equipment assets for indications that the carrying amount of an asset may not be recoverable. Intellectual property, net Intellectual property consists of patent applications contributed to the Company by the founding stockholders and patent applications for technology developed by the Company. The useful life of this intellectual property has been determined to be ten years and the assets are being amortized straight-line over this period. The Company periodically evaluates its intangible and other long-lived assets for indications that the carrying amount of an asset may not be recoverable and the remaining estimated lives of its long-lived assets. The Company evaluates the need to record impairment during each reporting period. Investment in LINICO Investments, which may be made from time to time for strategic reasons (and not to engage in the business of investments) are included in non-current assets in the condensed consolidated balance sheets. Investments are recorded at cost and the Company analyzes the value of investments on a quarterly basis. Leases The Company determines if an arrangement is a lease at inception. Operating lease right-of-use assets (“ROU assets”) and short-term and long-term lease liabilities are included in the condensed consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating and finance lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Company’s lease terms may include options to extend or terminate the lease. Lease expense for lease payments is recognized on a straight-line basis over the lease term. For lease agreements with terms less than 12 months, the Company has elected the short-term lease measurement and recognition exemption, and the Company recognizes such lease payments on a straight-line basis over the lease term. Segment and geographic information Our chief operating decision maker (“CODM”) is the Chief Executive Officer. Operating segments are defined as components of an enterprise engaging in business activities for which discrete financial information is available and regularly reviewed by the CODM in deciding how to allocate resources and in assessing performance. The CODM views its operations and manages its business in one operating segment, and the Company operates in only one geographic segment. Concentration of credit risk The Company did not generate significant revenue during the three and six months ended June 30, 2023 and 2022, respectively, except for nominal revenue generated during the second quarter of 2022 from the sale of inventory. The Company did not have a trade receivable balance as of June 30, 2023 and December 31, 2022. The accounts receivable balance on the Company's condensed consolidated balance sheets as of June 30, 2023 consisted of proceeds from a non-recurring engineering (NRE) agreement with 6K Energy and the sale of equipment. The accounts receivable balance on the Company's consolidated balance sheets as of December 31, 2022 consisted of proceeds from the sale of equipment. Research and development Research and development expenditures are expensed as incurred. Recent accounting pronouncements There were no recent accounting pronouncements or changes in accounting pronouncements during the six months ended June 30, 2023 that are of significance or potential significance to the Company.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for all significant accounting policies of the reporting entity. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147483426/235-10-50-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 235 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//235/tableOfContent + Details
Name: | us-gaap_SignificantAccountingPoliciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration