Document and Entity Information
Document and Entity Information | 3 Months Ended |
Jun. 30, 2019 | |
Document And Entity Information | |
Entity Registrant Name | AMMO, INC. |
Entity Central Index Key | 0001015383 |
Document Type | S-1/A |
Document Period End Date | Jun. 30, 2019 |
Amendment Flag | true |
Amendment Description | Amendment No. 5 |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business Flag | true |
Entity Emerging Growth Company | false |
Entity Ex Transition Period | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2017 |
Current Assets: | ||||
Cash | $ 538,983 | $ 2,181,246 | $ 4,381,643 | $ 786,823 |
Accounts receivable, net of allowance for doubtful account of $25,721 at June 30, 2019 and $129,365 at March 31, 2019, $23,046 at March 31, 2018, and $26,046 at December 31, 2017 | 2,958,150 | 1,225,911 | 1,201,117 | 166,731 |
Due from related parties | 34,558 | 19,565 | 14,204 | 18,461 |
Inventories, at lower of cost or market, principally average cost method | 5,553,121 | 4,772,597 | 2,405,007 | 1,792,314 |
Prepaid expenses | 278,030 | 427,551 | 321,074 | 254,732 |
Current portion of right of use assets | 483,872 | |||
Total Current Assets | 9,846,714 | 8,626,870 | 8,323,045 | 3,019,061 |
Equipment, net of accumulated depreciation of $1,098,818 at June 30, 2019 and $516,144 at March 31, 2019 and $113,158 at March 31, 2018, and $77,861 at December 31, 2017 | 21,667,562 | 21,999,787 | 1,241,326 | 769,442 |
Other Assets: | ||||
Deposits | 54,133 | 29,034 | 16,300 | |
Licensing agreements, net of accumulated amortization of $120,833 at June 30, 2019 and $108,833 at March 31, 2019, $58,333 at March 31, 2018, and $45,833 at December 31, 2017 | 129,167 | 141,667 | 191,667 | 204,167 |
Patents, net of accumulated amortization of $191,089 at June 30, 2019 and $134,701 at March 31, 2019, $49,627 at March 31, 2018 and $25,166 at December 31, 2017 | 6,882,916 | 6,939,304 | 900,373 | 924,834 |
Other intangible assets, net of accumulated amortization of $478,672 at June 30, 2019 and $61,803 at March 31, 2019 | 5,433,633 | 5,850,502 | ||
Right of use assets - operating leases | 3,923,050 | |||
TOTAL ASSETS | 47,937,175 | 43,587,164 | 10,672,711 | 4,917,504 |
Current Liabilities: | ||||
Accounts payable | 4,436,087 | 1,920,344 | 479,465 | 476,893 |
Accrued liabilities | 667,383 | 531,434 | 541,210 | 254,774 |
Convertible note payable | 1,575,000 | |||
Note payable related party | 375,000 | 100,000 | ||
Current portion of operating lease liability | 483,872 | |||
Insurance premium note payable | 153,731 | 230,597 | 99,907 | 6,880 |
Current portion of note payable related party | 8,400,000 | 1,500,000 | ||
Contingent consideration payable | 250,000 | 300,000 | ||
Total Current Liabilities | 14,766,073 | 4,482,375 | 1,120,582 | 2,413,547 |
Long-term Liabilities: | ||||
Convertible promissory notes, net of $24,144 of note issuance costs at March 31, 2019 | 275,856 | |||
Contingent consideration payable | 900,000 | 900,000 | ||
Note payable related party | 8,400,000 | |||
Operating lease liability, net of current portion | 3,923,050 | |||
Total Liabilities | 19,589,123 | 14,058,231 | 1,120,582 | 2,413,547 |
Shareholders' Equity: | ||||
Common stock, $0.001 par value, 200,000,000 shares authorized 45,269,908 at June 30, 2019 and 44,013,075, 28,394,503, and 22,487,793 shares issued and outstanding at March 31, 2019 and March 31, 2018, and December 31, 2017 respectively | 45,270 | 44,013 | 28,394 | 22,488 |
Additional paid-in capital | 51,594,749 | 48,935,485 | 17,264,888 | 8,430,394 |
Stock subscription receivable | (5,000) | |||
Accumulated (Deficit) | (23,291,967) | (19,450,565) | (7,741,153) | (5,943,925) |
Total Shareholders' Equity | 28,348,052 | 29,528,933 | 9,552,129 | 2,503,957 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 47,937,175 | $ 43,587,164 | $ 10,672,711 | $ 4,917,504 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2017 |
Allowance for doubtful accounts | $ 25,721 | $ 129,365 | $ 23,046 | $ 26,046 |
Accumulated depreciation | $ 1,098,818 | 516,144 | 113,158 | 77,861 |
Convertible promissory notes, issuance costs | $ 24,144 | |||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 |
Common stock, shares issued | 45,269,908 | 44,013,075 | 28,394,503 | 22,487,793 |
Common stock, shares outstanding | 45,269,908 | 44,013,075 | 28,394,503 | 22,487,793 |
Other Intangible Assets [Member] | ||||
Accumulated amortization | $ 478,672 | $ 61,803 | ||
Licensing Agreements [Member] | ||||
Accumulated amortization | 120,833 | 108,833 | $ 58,333 | $ 45,833 |
Patents [Member] | ||||
Accumulated amortization | $ 191,089 | $ 134,701 | $ 49,627 | $ 25,166 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2017 | |
Net Sales | $ 4,298,580 | $ 1,250,028 | $ 1,960,688 | $ 4,565,652 | $ 1,294,861 |
Cost of Goods Sold, includes depreciation and amortization of $613,569 and $73,295, $506,159 $66,405 and $141,575, respectively, and federal excise taxes of 114,285 of $131,339, $406,255, $194,003, and $132,294, respectively | 4,951,796 | 1,105,456 | 1,667,614 | 4,795,346 | 1,303,586 |
Gross Margin | (653,216) | 144,572 | 293,074 | (229,694) | (8,725) |
Operating Expenses | |||||
Selling and marketing | 221,928 | 351,416 | 585,294 | 1,414,399 | 759,053 |
Corporate general and administrative | 1,099,643 | 678,100 | 589,983 | 3,385,096 | 2,154,498 |
Employee salaries and related expenses | 1,217,692 | 878,988 | 914,258 | 3,855,167 | 1,046,667 |
Depreciation and amortization expense | 454,862 | 15,397 | 5,853 | 96,302 | 7,285 |
Total operating expenses | 2,994,125 | 1,923,901 | 2,095,388 | 8,750,964 | 3,967,503 |
Loss from Operations | (3,647,341) | (1,779,329) | (1,802,314) | (8,980,658) | (3,976,228) |
Other Income/(Expenses) | |||||
Interest expense | (194,061) | (1,497) | 5,086 | (610,600) | (532,752) |
Loss on purchase | (2,118,154) | ||||
Loss on vendor notes receivable foreclosure | (1,279,921) | ||||
(Loss) before Income Taxes | (3,841,402) | (1,780,826) | (1,797,228) | (11,709,412) | (5,788,901) |
Provision for Income Taxes | |||||
Net (Loss) | $ (3,841,402) | $ (1,780,826) | $ (1,797,228) | $ (11,709,412) | $ (5,788,901) |
Basic and fully diluted: | |||||
Weighted average number of shares outstanding | 44,577,950 | 30,393,076 | 26,045,890 | 33,601,569 | 19,279,601 |
(Loss) per share | $ (0.09) | $ (0.06) | $ (0.07) | $ (0.35) | $ (0.30) |
Ammunition Sales [Member] | |||||
Net Sales | $ 1,141,499 | $ 1,250,028 | $ 1,960,688 | $ 3,985,574 | $ 1,294,861 |
Casing Sales [Member] | |||||
Net Sales | $ 3,157,081 | $ 580,078 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||||
Depreciation and amortization | $ 613,569 | $ 73,295 | $ 66,405 | $ 506,159 | $ 141,575 |
Federal excise taxes | $ 114,285 | $ 131,339 | $ 194,003 | $ 406,255 | $ 132,294 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) | Common Shares [Member] | Additional Paid-In Capital [Member] | Subscription Receivable [Member] | Accumulated Deficit [Member] | Total |
Beginning Balance at Dec. 31, 2016 | $ 15,754 | $ 799,180 | $ (167,500) | $ (155,024) | $ 492,410 |
Beginning Balance, shares at Dec. 31, 2016 | 15,754,000 | ||||
Reverse merger and recapitalization | $ 604 | (604) | |||
Reverse merger and recapitalization, shares | 604,371 | ||||
Subscriptions collected | 167,500 | 167,500 | |||
Common stock issued to founders | $ 500 | 145 | 645 | ||
Common stock issued to founders, shares | 500,000 | ||||
Founder shares repurchased | $ (400) | (99,600) | (100,000) | ||
Founder shares repurchased, shares | (400,000) | ||||
Common stock issued for cash | $ 4,641 | 6,034,259 | $ 6,038,900 | ||
Common stock issued for cash , shares | 4,640,822 | 6,733,793 | |||
Common stock issued for payment of legal fees | $ 50 | 123,950 | $ 124,000 | ||
Common stock issued for payment of legal fees, shares | 49,600 | ||||
Subscription receivable | $ 4 | 4,996 | (5,000) | ||
Subscription receivable, shares | 4,000 | ||||
Organizational and fundraising cost | $ 20 | (179,770) | (179,750) | ||
Organizational and fundraising cost, shares | 20,000 | ||||
Common stock issued for licensing agreement | $ 100 | 124,900 | 125,000 | ||
Common stock issued for licensing agreement, shares | 100,000 | ||||
Legal, advisory and consulting fees | $ 495 | 554,130 | 554,625 | ||
Legal, advisory and consulting fees, shares | 495,000 | ||||
Employee stock awards | $ 120 | 159,880 | 160,000 | ||
Employee stock awards, shares | 120,000 | ||||
Shares issued for patents | $ 600 | 749,400 | 750,000 | ||
Shares issued for patents, shares | 600,000 | ||||
Imputed interest on related party note | 46,340 | 46,340 | |||
Issuance of warrants for interest | 46,188 | 46,188 | |||
Issuance of warrants for services | 67,000 | 67,000 | |||
Common stock issued for exercised warrants | |||||
Stock Grants | |||||
Net loss for year ended | (5,788,901) | ||||
Ending Balance at Dec. 31, 2017 | $ 22,488 | 8,430,394 | (5,000) | (5,943,925) | 2,503,957 |
Ending Balance, shares at Dec. 31, 2017 | 22,487,793 | ||||
Subscriptions collected | 5,000 | 5,000 | |||
Common stock issued for cash | $ 5,614 | 9,257,810 | $ 9,263,424 | ||
Common stock issued for cash , shares | 5,614,210 | 5,906,710 | |||
Organizational and fundraising cost | (1,137,211) | $ (1,137,211) | |||
Organizational and fundraising cost, shares | |||||
Employee stock awards | $ 292 | 482,332 | 482,624 | ||
Employee stock awards, shares | 292,500 | ||||
Issuance of warrants for services | 125,000 | 125,000 | |||
Stock grant expense | 106,563 | 106,563 | |||
Stock Grants | 106,563 | ||||
Net loss for year ended | (1,797,228) | (1,797,228) | |||
Ending Balance at Mar. 31, 2018 | $ 28,394 | 17,264,888 | (7,741,153) | 9,552,129 | |
Ending Balance, shares at Mar. 31, 2018 | 28,394,503 | ||||
Common stock issued for cash | $ 5,797 | 10,898,133 | $ 10,903,930 | ||
Common stock issued for cash , shares | 5,796,336 | 15,618,572 | |||
Common stock issued for payment of legal fees | $ 124,000 | ||||
Common stock issued for payment of legal fees, shares | 49,600 | ||||
Organizational and fundraising cost | (1,704,563) | $ (1,704,563) | |||
Organizational and fundraising cost, shares | |||||
Legal, advisory and consulting fees | $ (50) | (123,950) | (124,000) | ||
Legal, advisory and consulting fees, shares | (49,600) | ||||
Employee stock awards | $ 702 | 1,172,272 | 1,172,974 | ||
Employee stock awards, shares | 702,500 | ||||
Common stock issued for exercised warrants | $ 1,973 | 4,765,652 | $ 4,767,625 | ||
Common stock issued for exercised warrants , shares | 1,972,800 | 1,972,800 | |||
Common stock issued for cashless warrant exercise | $ 11 | (11) | |||
Common stock issued for cashless warrant exercise , shares | 10,495 | 10,495 | |||
Common stock issued for services | $ 5 | 22,345 | $ 22,350 | ||
Common stock issued for services, shares | 5,000 | 5,000 | |||
Stock Grants | 703,030 | $ 703,030 | |||
Acquisition stock issuances | $ 6,450 | 14,117,555 | 14,124,005 | ||
Acquisition stock issuances, shares | 6,450,002 | ||||
Common stock issued for convertible notes | $ 731 | 1,820,134 | $ 1,820,865 | ||
Common stock issued for convertible notes, shares | 731,039 | 731,039 | |||
Net loss for year ended | (11,709,412) | $ (11,709,412) | |||
Ending Balance at Mar. 31, 2019 | $ 44,013 | 48,935,485 | (19,450,565) | 29,528,933 | |
Ending Balance, shares at Mar. 31, 2019 | 44,013,075 | ||||
Common stock issued for cash | $ 899 | 1,796,201 | $ 1,797,100 | ||
Common stock issued for cash , shares | 898,550 | 1,256,833 | |||
Employee stock awards | $ 168 | 333,082 | $ 333,250 | ||
Employee stock awards, shares | 167,500 | ||||
Common stock issued for exercised warrants | |||||
Common stock issued for services | $ 63 | 199,937 | $ 200,000 | ||
Common stock issued for services, shares | 63,492 | 63,492 | |||
Stock Grants | 201,512 | $ 201,512 | |||
Common stock issued for convertible notes | $ 127 | 318,099 | $ 318,226 | ||
Common stock issued for convertible notes, shares | 127,291 | 127,291 | |||
Fundraising cost | (189,567) | $ (189,567) | |||
Net loss for year ended | (3,841,402) | (3,841,402) | |||
Ending Balance at Jun. 30, 2019 | $ 45,270 | $ 51,594,749 | $ (23,291,967) | $ 28,348,052 | |
Ending Balance, shares at Jun. 30, 2019 | 45,269,908 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flow - USD ($) | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||||
Net (Loss) | $ (3,841,402) | $ (1,780,826) | $ (1,797,228) | $ (11,709,412) | $ (5,788,901) |
Adjustments to reconcile Net (Loss) to Net Cash provided by operations: | |||||
Depreciation and amortization | 1,068,431 | 88,692 | 72,258 | 599,863 | 148,860 |
Loss on vendor notes receivable foreclosure | 1,279,921 | ||||
Imputed interest | 46,340 | ||||
Debt discount amortization | 24,144 | 151,856 | 356,250 | ||
Stock grants | 201,512 | 111,402 | 106,563 | 703,030 | |
Stock for services | 200,000 | 22,350 | 454,625 | ||
Employee stock awards | 333,250 | 319,375 | 482,624 | 1,172,974 | 160,000 |
Warrants for services and interest | 125,000 | 113,188 | |||
Stock and warrants for promissory note conversion | 358,800 | ||||
Loss on purchase | 2,118,154 | ||||
Interest on convertible promissory note | 18,226 | 151,856 | 74,896 | ||
Changes in Current Assets and Liabilities | |||||
Vendor advances receivable | 186,486 | ||||
Accounts receivable | (1,628,595) | 388,386 | (1,031,385) | (131,113) | (171,812) |
Allowance for doubtful accounts | (103,644) | (3,000) | (3,000) | 106,320 | 26,046 |
Due to (from) related parties | (14,993) | 996 | 4,257 | (5,361) | (18,461) |
Inventories | (780,524) | (718,232) | (612,693) | (2,367,591) | (928,762) |
Prepaid expenses | 149,521 | 115,123 | 101,114 | 215,489 | 183,181 |
Deposits | (25,099) | (132,178) | (16,300) | (12,734) | |
Right of use asset | 117,243 | ||||
Accounts payable | 2,515,743 | (61,293) | 2,572 | 1,440,879 | 418,898 |
Accrued liabilities | 135,949 | (102,864) | 286,435 | 42,289 | 254,774 |
Operating lease liability | (117,243) | ||||
Net cash used in operating activities | (1,747,481) | (1,774,419) | (2,279,783) | (7,294,207) | (3,279,367) |
Cash flows from investing activities | |||||
Purchase of equipment | (250,449) | (566,364) | (507,181) | (2,291,907) | (304,188) |
Jagemann Acquisition | (7,000,000) | ||||
Purchase of patent | (100,000) | (250,000) | (100,000) | ||
Net cash used in investing activities | (250,449) | (566,364) | (607,181) | (9,541,907) | (404,188) |
Cash flow from financing activities | |||||
Convertible note payment | (300,000) | ||||
Note payable related party | 375,000 | ||||
Note payment - related party | (1,500,000) | (500,000) | (960,000) | ||
Insurance premium note payment | (76,866) | (30,134) | (74,429) | (191,275) | (207,033) |
Contingent consideration payment | (50,000) | (50,000) | |||
Convertible promissory note | (1,575,000) | 1,534,000 | |||
Sale of common stock | 1,797,100 | 3,247,030 | 9,263,424 | 10,903,930 | 6,038,900 |
Purchase of common stock | (124,000) | ||||
Common stock issued for exercised warrants | 2,354,125 | 4,767,625 | |||
Collection of stock subscription | 5,000 | 167,500 | |||
Common stock activity - founders shares | (99,355) | ||||
Organizational and fundraising costs | (189,567) | (545,359) | (1,137,211) | (1,704,563) | (179,750) |
Net cash provided by financing activities | 355,667 | 5,025,662 | 6,481,784 | 14,635,717 | 4,460,262 |
Net increase/(decrease) in cash | (1,642,263) | 2,684,879 | 3,594,820 | (2,200,397) | 776,707 |
Cash, beginning of period | 2,181,246 | 4,381,643 | 786,823 | 4,381,643 | 10,116 |
Cash, end of period | 538,983 | 7,066,522 | 4,381,643 | 2,181,246 | 786,823 |
Supplemental cash flow disclosures | |||||
Cash paid during the period for - Interest | 2,038 | 1,497 | 240,523 | 9,105 | |
Cash paid during the period for - Income taxes | |||||
Non-cash investing and financing activities: | |||||
Additional paid-in-capital | (11) | (11) | |||
Common stock | 11 | 11 | |||
Issuance of common stock | 4,624,005 | ||||
Contingent consideration payable | 1,250,000 | ||||
Patent acquisition | (5,874,005) | ||||
Issuance of common stock | 7,381,846 | ||||
Note payable - related party | 10,400,000 | ||||
Acquired Intangible Assets | (5,912,305) | ||||
Acquired Equipment | (11,869,541) | ||||
Convertible promissory note | (300,000) | (1,410,000) | |||
Accrued Liabilities | (52,065) | ||||
Convertible promissory note conversion | 300,000 | 1,462,065 | |||
Right of use assets - operating leases | (4,524,165) | ||||
Operating lease liability | 4,524,165 | ||||
Vendor note receivable foreclosure | |||||
Vendor notes receivable | 1,305,079 | ||||
Vendor advances receivable | (96,552) | ||||
Accounts receivable | (20,965) | ||||
Inventories | (644,447) | ||||
Equipment | (543,115) | ||||
Licensing agreement | (125,000) | ||||
Issuance of common stock | 125,000 | ||||
Insurance premium note payment | 167,456 | 321,966 | 213,913 | ||
Prepaid expense | (167,456) | (321,966) | (213,913) | ||
Common Stock | 604 | ||||
Additional paid-in-capital | (604) | ||||
Prepaid legal services | (224,000) | ||||
Issuance of common stock | 224,000 | ||||
Issuance of common stock | 750,000 | ||||
Patent acquisition | (750,000) | ||||
Stock subscription receivable | (5,000) | ||||
Additional paid-in-capital | 5,000 | ||||
Total non-cash investing and financing activities |
Organization and Business Activ
Organization and Business Activity | 3 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Organization and Business Activity | NOTE 1 – ORGANIZATION AND BUSINESS ACTIVITY We were formed under the name Retrospettiva, Inc. in November 1990 to manufacture and import textile products, including both finished garments and fabrics. We were inactive until the following series of events in December 2016 and March 2017. On December 15, 2016, the Company’s majority shareholders sold 475,681 (11,891,976 pre-split) of their outstanding shares to Mr. Fred W. Wagenhals (“Mr. Wagenhals”) resulting in a change in control of the Company. Mr. Wagenhals was appointed as sole officer and the sole member of the Company’s Board of Directors. The Company also approved (i) doing business in the name AMMO, Inc., (ii) a change to the Company’s OTC trading symbol to POWW, (iii) an agreement and plan of merger to re-domicile and change the Company’s state of incorporation from California to Delaware, and (iv) a 1-for-25 reverse stock split (“Reverse Split”) of the issued and outstanding shares of the common stock of the Company. As a result of the reverse split, the previous issued and outstanding shares of common stock became 580,052 shares; no shareholder was reversed below 100 shares, and all fractional shares resulting from the reverse split were rounded up to the next whole share. All references to the outstanding stock have been retrospectively adjusted to reflect this split. These transactions were effective as of December 30, 2016. On March 17, 2017, the Company entered into a definitive agreement with AMMO, Inc. a Delaware Corporation (PRIVCO) under which the Company acquired all of the outstanding shares of common stock of (PRIVCO). Under the terms of the Agreement, the Company issued 17,285,800 newly issued shares of common stock of the Company. In connection with this transaction the Company retired 475,681 shares of common stock and issued 500,000 shares of common stock to satisfy an issuance commitment. The acquisition was considered to be a capital transaction. The transaction was the equivalent to the issuance by PRIVCO of 604,371 shares to the Company’s shareholders accompanied by a recapitalization. The weighted average number of outstanding shares has been adjusted for this transaction. (PRIVCO) subsequently changes its name to AMMO Munitions, Inc. | NOTE 1 – ORGANIZATION AND BUSINESS ACTIVITY We were formed under the name Retrospettiva, Inc. in November 1990 to manufacture and import textile products, including both finished garments and fabrics. We were inactive until the following series of events in December 2016 and March 2017. On December 15, 2016, the Company’s majority shareholders sold 475,681 (11,891,976 pre-split) of their outstanding shares to Mr. Fred W. Wagenhals (“Mr. Wagenhals”) resulting in a change in control of the Company. Mr. Wagenhals was appointed as sole officer and the sole member of the Company’s Board of Directors. The Company also approved (i) doing business in the name AMMO, Inc., (ii) a change to the Company’s OTC trading symbol to POWW, (iii) an agreement and plan of merger to re-domicile and change the Company’s state of incorporation from California to Delaware, and (iv) a 1-for-25 reverse stock split (“Reverse Split”) of the issued and outstanding shares of the common stock of the Company. As a result of the reverse split, the previous issued and outstanding shares of common stock became 580,052 shares; no shareholder was reversed below 100 shares, and all fractional shares resulting from the reverse split were rounded up to the next whole share. All references to the outstanding stock have been retrospectively adjusted to reflect this split. These transactions were effective as of December 30, 2016. On March 17, 2017, the Company entered into a definitive agreement with AMMO, Inc. a Delaware Corporation (PRIVCO) under which the Company acquired all of the outstanding shares of common stock of (PRIVCO). Under the terms of the Agreement, the Company issued 17,285,800 newly issued shares of common stock of the Company. In connection with this transaction the Company retired 475,681 shares of common stock and issued 500,000 shares of common stock to satisfy an issuance commitment. The acquisition was considered to be a capital transaction. The transaction was the equivalent to the issuance by PRIVCO of 604,371 shares to the Company’s shareholders accompanied by a recapitalization. The weighted average number of outstanding shares has been adjusted for this transaction. (PRIVCO) subsequently changes its name to AMMO Munitions, Inc. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Mar. 31, 2019 | |
Accounting Policies [Abstract] | ||
Summary of Significant Accounting Policies | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Basis The accompanying unaudited consolidated financial statements and related disclosures included in this Quarterly Report on Form 10-Q have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and reflect all adjustments, which consist solely of normal recurring adjustments, needed to fairly present the financial results for these periods. Additionally, these consolidated financial statements and related disclosures are presented pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”). The accompanying consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related disclosures contained in the Company’s Annual Report filed with the SEC on Form 10-K for the year ended March 31, 2019. The results for the three month period June 30, 2019 are not necessarily indicative of the results that may be expected for the entire fiscal year. Accordingly, certain information and note disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to the rules and regulations of the SEC. In the opinion of management, all adjustments have been made, which consist only of normal recurring adjustments necessary for a fair statement of (a) the results of operations for the month periods ended June 30, 2019 and 2018, (b) the financial position at June 30, 2019, and (c) cash flows for the three month periods ended June 30, 2019 and 2018. We use the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP”) and all amounts are expressed in U.S. dollars. The Company has a fiscal year-end of March 31 st Unless the context otherwise requires, all references to “Ammo”, “we”, “us”, “our,” or the “Company” are to AMMO, Inc., a Delaware corporation. Principles of Consolidation The consolidated financial statements include the accounts of AMMO, Inc. and its wholly owned subsidiaries, Enlight Group II, LLC (d/b/a Jagemann Munition Components), SNI, LLC, AMMO Munitions, Inc. and AMMO Technologies, Inc. (inactive). All significant intercompany accounts and transactions are eliminated in consolidation Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the balance sheet and reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents For purposes of the statement of cash flows, we consider highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents. Accounts Receivable and Allowance for Doubtful Accounts Our accounts receivable represents amounts due from customers for products sold and include an allowance for uncollectible accounts which is estimated based on the aging of the accounts receivable and specific identification of uncollectible accounts. At June 30, 2019 and March 31, 2019, we reserved $25,751 and $129,635, respectively, of allowance for doubtful accounts. License Agreements We are a party to a license agreement with Jesse James, a well-known motorcycle designer, and Jesse James Firearms, LLC, a Texas limited liability company, or JJF. The license agreement grants us the exclusive worldwide rights through October 15, 2021 to Mr. James’ image rights and trademarks associated with him in connection with the marketing, promotion, advertising, sale, and commercial exploitation of Jesse James Branded Products. In addition, Mr. James agreed to make himself available for certain promotional activities and to promote Jesse James Branded Products through his own social media outlets. We agreed to pay Mr. James royalty fees on the sale of ammunition and non-ammunition Branded Products and to reimburse him for any out-of-pocket expenses and reasonable travel expenses. We also issued 100,000 shares of our common stock upon the execution of the license agreement with the potential issuance of up to 75,000 additional shares of common stock upon achieving certain gross sales with $15 million in gross sales required to earn the entire 75,000 shares. We are a party to a license agreement with Jeff Rann, a well-known wild game hunter and spokesman for the firearm and ammunition industries. The license agreement grants us through February 2022 the exclusive worldwide rights to Mr. Rann’s image rights and trademarks associated with him in connection with the marketing, promotion, advertising, sale, and commercial exploitation of all Jeff Rann Branded Products. Mr. Rann agreed to make himself available for certain promotional activities and to promote the Branded Products through his own social media outlets. We agreed to pay Mr. Rann royalty fees on the sale of ammunition and non-ammunition Branded Products and to reimburse him for any out-of-pocket expenses and reasonable travel expenses. We also issued 100,000 shares of our common stock upon the execution of the license agreement with the potential issuance of 75,000 additional shares of common stock upon achieving certain gross sales with $15 million in gross sales required to earn the entire 75,000 shares. Amortization expense for the license agreements for the three months ended June 30, 2019 and 2018 were $12,500 and $12,500, respectively. Patents On September 28, 2017, AMMO Technologies Inc. (“ATI”), an Arizona corporation, which is 100% owned by us, merged with Hallam, Inc, a Texas corporation, with ATI being the survivor. Under the terms of the Merger, we issued to Hallam, Inc.’s two shareholders, 600,000 shares of our common stock, subject to restrictions, and payment of $200,000. The first payment of $100,000 to the Hallam, Inc. shareholders was paid on September 13, 2017, and the second payment of $100,000 was paid on February 6, 2018. The shares were valued at $1.25 and the aggregate value of $950,000 was recorded as a patent asset. This asset will be amortized from September 2017, the first full month of the acquired rights, through October 29, 2028. Patent amortization expense for the three months ended June 30, 2019 and 2018 were $21,269 and $21,269, respectively. Under the terms of the Merger, ATI succeeded to all of the assets of Hallam, Inc. and assumed the liabilities of Hallam, Inc., which were none. The primary asset of Hallam, Inc. was an exclusive license to produce projectiles and ammunition using the Hybrid Luminescence Ammunition Technology under patent U.S. 8,402,896 B1 with a publication date of March 26, 2013 owned by University of Louisiana at Lafayette. The license was formally amended and assigned to AMMO Technologies Inc. pursuant to an Assignment and First Amendment to Exclusive License Agreement. Assumption Agreement dated to be effective as of August 22, 2017, the Merger closing date. Under the terms of the Exclusive License Agreement, the Company is obligated to pay a royalty to the patent holder, based on a $0.01 per unit basis for each round of ammunition sold that incorporates this patented technology through October 29, 2028. For the three months ended June 30, 2019 and 2018, the Company accrued $2,558 and $7,147 respectively under this agreement. In August 2018, we applied for additional patent coverage for the manufacturing methods or application of the Hybrid Luminescence Ammunition Technology on a variety of projectile and ammunition types. The costs of filing this patent were expensed, but may be recapitalized pending the outcome of the USPTO’s review of the application. On October 5, 2018, we completed the acquisition of SW Kenetics Inc. ATI succeeded all of the assets of SW Kenetics, Inc. and assumed all of the liabilities. Under the terms of the agreement, we issued to SW Kenetics Inc.’s three shareholders, 1,700,002 restricted shares of our common stock, payment of $250,000, and a payment obligation of $1,250,000 subject to completion of specific milestones that we have recorded as Contingent Consideration Payable. Additionally, the 1,700,002 shares of common stock were issued with claw back provisions to ensure agreed upon objectives are met. The Company has made two payments of $50,000 for the completion of specific milestones to the shareholders of SW Kenetics, Inc. The primary asset of SW Kenetics Inc. was a pending patent for modular projectiles. All rights to patent pending application were assigned and transferred to AMMO Technologies, Inc. pursuant to Intellectual Property Rights Agreement on September 27, 2018. Patent amortization expense for the three months ended June 30, 2019 was $35,119. There was no amortization expense for the patent in the three months ended June 30, 2018 as the acquisition was not yet consummated. We intend to continue building our patent portfolio to protect our proprietary technologies and processes, and will file new applications where appropriate to preserve our rights to manufacture and sell our branded lines of ammunition. Other Intangible Assets On March 15, 2019, Enlight Group II, LLC d/b/a Jagemann Munition Components, a wholly owned subsidiary of AMMO, Inc., completed its acquisition of assets of Jagemann Stamping Company’s ammunition casing manufacturing and sales operations pursuant to the terms of the Amended and Restated Asset Purchase Agreement (See Note 10). The intangible assets acquired include a tradename, customer relationships, and intellectual property. For the three months ended June 30, 2019, amortization of the other intangibles assets was $416,869. Impairment of Long-Lived Assets We continually monitor events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, we assess the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, we recognize an impairment loss based on the excess of the carrying amount over the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell. No impairment expense was recognized for the three months ended June 30, 2019 and 2018. Revenue Recognition We generate revenue from the production and sale of ammunition. We recognize revenue according to ASC 606. When the customer obtains control over the promised goods or services, we record revenue in the amount of consideration that we can expect to receive in exchange for those goods and services. The Company applies the following five-step model to determine revenue recognition: ● Identification of a contract with a customer ● Identification of the performance obligations in the contact ● determination of the transaction price ● allocation of the transaction price to the separate performance allocation ● recognition of revenue when performance obligations are satisfied The Company only applies the five-step model when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception and once the contract is determined to be within the scope of ASC 606, we assess the goods or services promised within each contract and determines those that are performance obligations, and assesses whether each promised good or service is distinct. Our contracts contain a single performance obligation and the entire transaction price is allocated to the single performance obligation. We recognize as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Accordingly, we recognize revenues (net) when the customer obtains control of the Company’s product, which typically occurs upon shipment of the product. For the three months ended June 30, 2019 and 2018, the Company’s customers that comprised more than ten percent (10%) of total revenues and accounts receivable were as follows: PERCENTAGES Revenues Accounts Receivable For the Three-Months ended June 30, 2019 Customers: A 25.9 % 34.6 % B 10.5 % - C - - 36.4 % 34.6 % For the Three-Months ended June 30, 2018 Customers: A - - B 62.4 % 13.0 % C - 53.9 % 62.4 % 66.9 % Advertising Costs We expense advertising costs as they are incurred. We incurred advertising of $94,213 and $146,615 for the three months ended June 30, 2019 and 2018, respectively. Inventories We state inventories at the lower of cost or market. We determine cost using the average cost method. Our inventory consists of raw materials, work in progress, and finished goods. Cost of inventory includes cost of parts, labor, quality control, and all other costs incurred to bring our inventories to condition ready to be sold. We periodically evaluate and adjust inventories for obsolescence. Property and Equipment We state property and equipment at cost, less accumulated depreciation. We capitalize major renewals and improvements, while we charge minor replacements, maintenance, and repairs to current operations. We compute depreciation by applying the straight-line method over estimated useful lives, which are generally five to seven years. Compensated Absences We accrue a liability for compensated absences in accordance with Accounting Standards Codifications 710 – Compensation – General Stock-Based Compensation We account for stock-based compensation at fair value in accordance with SFAS No. 123 and 123 (R) (ASC 718). There were 167,500 shares of common stock issued to employees, members of the Board of Directors, and members of the Advisory Committee for services during the three months ended June 30, 2019. On May 1, 2018, we entered into an employment agreement with Robert D. Wiley, Chief Financial Officer, that included, among other provisions, an equity grant of 100,000 shares of restricted common stock that vests at the rate of 33,333 shares annually for three years. The $250,000 compensation value is being recognized on a straight-line basis over the three-year period covered by the agreement. From September 2018 through March 2019, we entered into seven separate employment agreements that included in total, among other provisions, equity grants of 535,000 shares of restricted common stock that vests annually over the next four years. The total compensation value of $1,376,000 is being recognized on a straight-line basis over the periods covered by each agreement, up to four years. Concentrations of Credit Risk Accounts at banks are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. As of June 30, 2019, our bank account balances exceeded federally insured limits. Income Taxes We file federal and state income tax returns in accordance with the applicable rules of each jurisdiction. We account for income taxes under the asset and liability method in accordance with Accounting Standards Codification 740 - Income Taxes (“ASC 740”). The provision for income taxes includes federal, state, and local income taxes currently payable, and deferred taxes. We recognize deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. We measure deferred tax assets and liabilities using enacted tax rates expected to apply to taxable amounts in years in which those temporary differences are expected to be recovered or settled. If it is more likely than not that some portion or all of a deferred tax asset will not be realized, a valuation allowance is recognized. In accordance with ASC 740, we recognize the effect of income tax positions only if those positions are more likely than not of being sustained. We measure recognized income tax positions at the largest amount that is greater than 50% likely of being realized. We reflect changes in recognition or measurement in the period in which the change in judgment occurs. We currently have substantial net operating loss carryforwards. We have recorded a valuation allowance equal to the net deferred tax assets due to the uncertainty of the ultimate realization of the deferred tax assets. Contingencies Certain conditions may exist as of the date the consolidated financial statements are issued that may result in a loss to us but will only be resolved when one or more future events occur or fail to occur. We assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against us or unasserted claims that may result in such proceedings, we evaluate the perceived merits of any legal proceedings or unasserted claims and the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability is reasonably estimated, the estimated liability would be accrued in our consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of range of possible loss if determinable and material, would be disclosed. On June 6, 2019, an employee requested to mediate an assertion that they were constructively discharged as an employee, while also asserting other alleged governance and employment deficiencies. If the matter is not otherwise resolved, the employee may initiate litigation against the Company, which the Company would aggressively defend. There were no other known contingencies at June 30, 2019. Recent Accounting Pronouncements In May 2014, FASB issued ASU 2014-09, “Revenue from Contracts with Customers”. This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The revised effective date for this ASU is for annual and interim periods beginning on or after December 15, 2017, and early adoption will be permitted, but not earlier than the original effective date of annual and interim periods beginning on or after December 15, 2016, for public entities. We adopted ASU 2014-09 as of January 1, 2018, and it did not have a material impact on the Company’s consolidated results of operations, financial position or cash flows for the period ended June 30, 2019. Sales are initiated in three ways – ● third party sales representative obtains signed purchase order from a customer ● direct contact by in-house sales representatives who obtains signed purchase order ● electronic purchase order from a customer (usually the very large customers) Once a customer’s order is received a sales order is generated by authorized sales or management personnel. Once approved for shipping, the sales order is entered, the inventory control department will pull the purchased items from the inventory or if needed will request the manufacture of a specific product. When the items that were ordered are available for shipment, the merchandise is prepared for shipping and shipped by FedEx or common carrier. All sales are recorded upon shipment and, depending on credit worthiness of customer, the payment terms will vary from thirty (30) to sixty (60) days. No refunds are allowed on any product shipped. Each product manufactured by the Company has standard specifications and performance objectives. The Company has an extensive product testing program and, if the Company were given notice of a product defect by a customer, the Company would request the return of the product so that the manufacturing defect could be identified. From inception to March 31, 2019, the Company has had no returned products related to product warranty. The revenue recognition procedures set forth above have been used by the Company since its inception and are consistent with requirements of ASC 606 “Revenue from Contracts with Customers”. In February 2016, the FASB issued ASU 2016-02 – “Leases (Topic 842)” Under ASU 2016-02, entities will be required to recognize lease asset and lease liabilities by lessees for those leases classified as operating leases. Among other changes in accounting for leases, a lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to (and a lessor) should include payments to be made in optional periods only if the lessee is reasonably certain to exercise an option to extend the lease or not to exercise an option to terminate the lease. Similarly, optional payments to purchase the underlying asset should be included in the measurement of lease assets and lease liabilities only if the lessee is reasonably certain to exercise that purchase option. The amendments in ASU 2016-02 will become effective for fiscal years beginning after December 15, 2018, including interim periods with those fiscal years for public business entities. We adopted Topic 842 as of April 1, 2019. On June 20, 2018, the FASB expanded the scope of Accounting Standards Codification (ASC) 718, Compensation – Stock Compensation, to include share-based payments to nonemployees for goods and services. The accounting board said the amendments in Accounting Standards Update (ASU) No. 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, align the guidance for stock compensation to employees and nonemployees. The amended guidance replaces ASC 505-50, Equity – Equity-Based Payments to Non-Employees. We anticipate that this ASC will not have a material effect on the Company’s financial statements. The amendments in ASU No. 2018-07 apply “to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards,” the FASB said. But the amended guidance does not cover stock compensation that is used to provide financing to the company that issued the shares or stock awards tied to a sale of goods or services as part of a contract accounted for according to ASC 606, Revenue From Contracts With Customers. The amendments are effective for public companies for fiscal years that begin after December 15, 2018, and the quarterly and other interim periods in those years, the FASB said the amended guidance can be applied before it becomes effective, but businesses are not permitted to use the guidance in ASU No. 2018-07 before they have implemented ASC 606. We have evaluated the effect of the adoption of ASU 2018-07 will have on our consolidated results of operations, financial position or cash flows and determine the effects will not be material to the Company’s financial statements. Management does not believe that any other recently issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting pronouncements are issued, we will adopt those that are applicable under the circumstances. Loss Per Common Share We calculate basic loss per share using the weighted-average number of shares of common stock outstanding during each reporting period. Diluted loss per share includes potentially dilutive securities, such as outstanding options and warrants, using various methods, such as the treasury stock or modified treasury stock method, in the determination of dilutive shares outstanding during each reporting period. We have issued warrants to purchase 8,646,216 shares of common stock. All weighted average numbers were adjusted for the reverse stock split and merger transaction. Due to the loss from operations in the three months ended June 30, 2019 and 2018, there are no common shares added to calculate the dilutive EPS for those periods as the effect would be antidilutive. | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Basis We use the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP”) and all amounts are expressed in U.S. dollars. The Company has a fiscal year-end of March 31 st The financial statements and related disclosures as of March 31, 2019, March 31, 2018, and December 31, 2017 are presented pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Unless the context otherwise requires, all references to “AMMO”, “we”, “us”, “our,” or the “Company” are to AMMO, Inc., a Delaware corporation Principles of Consolidation The consolidated financial statements include the accounts of AMMO, Inc. and its wholly owned subsidiaries, Enlight Group II, LLC (d/b/a Jagemann Munition Components), SNI, LLC, AMMO Munitions, Inc. and AMMO Technologies, Inc. (inactive). All significant intercompany accounts and transactions are eliminated in consolidation Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the balance sheet and reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents For purposes of the statement of cash flows, we consider highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents. Accounts Receivable and Allowance for Doubtful Accounts Our accounts receivable represent amounts due from customers for products sold and include an allowance for uncollectible accounts which is estimated based on the aging of the accounts receivable and specific identification of uncollectible accounts. At March 31, 2019, March 31, 2018 and December 31, 2017, we reserved $129,365, $23,046, and $26,046, respectively, of allowance for doubtful accounts. License Agreements We are a party to a license agreement with Jesse James, a well-known motorcycle designer, and Jesse James Firearms, LLC, a Texas limited liability company, or JJF. The license agreement grants us the exclusive worldwide rights through October 15, 2021 to Mr. James’ image rights and trademarks associated with him in connection with the marketing, promotion, advertising, sale, and commercial exploitation of Jesse James Branded Products. In addition, Mr. James agreed to make himself available for certain promotional activities and to promote Jesse James Branded Products through his own social media outlets. We agreed to pay Mr. James royalty fees on the sale of ammunition and non-ammunition Branded Products and to reimburse him for any out-of-pocket expenses and reasonable travel expenses. We also issued 100,000 shares of our common stock upon the execution of the license agreement with the potential issuance of up to 75,000 additional shares of common stock upon achieving certain gross sales with $15 million in gross sales required to earn the entire 75,000 shares. We are a party to a license agreement with Jeff Rann, a well-known wild game hunter and spokesman for the firearm and ammunition industries. The license agreement grants us through February 2022 the exclusive worldwide rights to Mr. Rann’s image rights and trademarks associated with him in connection with the marketing, promotion, advertising, sale, and commercial exploitation of all Jeff Rann Branded Products. Mr. Rann agreed to make himself available for certain promotional activities and to promote the Branded Products through his own social media outlets. We agreed to pay Mr. Rann royalty fees on the sale of ammunition and non-ammunition Branded Products and to reimburse him for any out-of-pocket expenses and reasonable travel expenses. We also issued 100,000 shares of our common stock upon the execution of the license agreement with the potential issuance of 75,000 additional shares of common stock upon achieving certain gross sales with $15 million in gross sales required to earn the entire 75,000 shares. Amortization expense for the license agreements for the year ended March 31, 2019, the three months ended March 31, 2018, and the year ended December 31, 2017 were $50,000, $12,500, and $45,833, respectively. Patent In September 28, 2017, AMMO Technologies Inc. (“ATI”), an Arizona corporation, which is 100% owned by us, merged with Hallam, Inc, a Texas corporation, with ATI being the survivor. Under the terms of the Merger, we issued to Hallam, Inc.’s two shareholders, 600,000 shares of our common stock, subject to restrictions, and payment of $200,000. The first payment of $100,000 to the Hallam, Inc. shareholders was paid on September 13, 2017, and the second payment of $100,000 was paid on February 6, 2018. The shares were valued at $1.25 and the aggregate value of $950,000 was recorded as a patent asset. This asset will be amortized from September 2017, the first full month of the acquired rights, through October 29, 2028. Patent amortization expense for the year ended March 31, 2019, the three months ended March 31, 2018, and the year ended December 31, 2017 were $85,074, $24,461, and $25,166. Under the terms of the Merger, ATI succeeded to all of the assets of Hallam, Inc. and assumed the liabilities of Hallam, Inc., which were none. The primary asset of Hallam, Inc. was an exclusive license to produce projectiles and ammunition using the Hybrid Luminescence Ammunition Technology under patent U.S. 8,402,896 B1 with a publication date of March 26, 2013 owned by University of Louisiana at Lafayette. The license was formally amended and assigned to AMMO Technologies Inc. pursuant to an Assignment and First Amendment to Exclusive License Agreement. Assumption Agreement dated to be effective as of August 22, 2017, the Merger closing date. Under the terms of the Exclusive License Agreement, the Company is obligated to pay a royalty to the patent holder, based on a $0.01 per unit basis for each round of ammunition sold that incorporates this patented technology through October 29, 2028. For year ended March 31, 2019, the three months ended March 31, 2018 and the year ended December 31, 2019, the Company accrued $33,920, $10,783, and $6,000 respectively under this agreement. In August 2018, we applied for additional patent coverage for the manufacturing methods or application of the Hybrid Luminescence Ammunition Technology on a variety of projectile and ammunition types. The costs of filing this patent were expensed, but may be recapitalized pending the outcome of the USPTO’s review of the application. On October 5, 2018, we completed the acquisition of SW Kenetics Inc. on (See Note 7). Under the terms of the Merger, ATI succeeded all of the assets of SW Kenetics, Inc. and assumed all of the liabilities. The primary asset of SW Kenetics Inc. was a pending patent for modular projectiles. All rights to patent pending application were assigned and transferred to AMMO Technologies, Inc. pursuant to Intellectual Property Rights Agreement on September 27, 2018. We intend to continue building our patent portfolio to protect our proprietary technologies and processes, and will file new applications where appropriate to preserve our rights to manufacture and sell our branded lines of ammunition. Other Intangible Assets On March 15, 2019, Enlight Group II, LLC d/b/a Jagemann Munition Components, a wholly owned subsidiary of AMMO, Inc., completed its acquisition of selected assets of Jagemann Stamping Company’s ammunition casing manufacturing and sales operations pursuant to the terms of the Amended and Restated Asset Purchase Agreement (See Note 10). The intangible assets acquired include a tradename, customer relationships, and intellectual property. For the year ended March 31, 2019, amortization of the other intangibles assets was $61,803. Impairment of Long-Lived Assets We continually monitor events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, we assess the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, we recognize an impairment loss based on the excess of the carrying amount over the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell. No impairment expense was recognized for the year ended March 31, 2019, the three month period ended March 31, 2018 or the year ended December 31, 2017. Revenue Recognition We generate revenue from the production and sale of ammunition. We recognize revenue according to ASC 606. When the customer obtains control over the promised goods or services, we record revenue in the amount of consideration that we can expect to receive in exchange for those goods and services. The Company applies the following five-step model to determine revenue recognition: ● identification of a contract with a customer ● identification of the performance obligations in the contact ● determination of the transaction price ● allocation of the transaction price to the separate performance allocation ● recognition of revenue when performance obligations are satisfied The Company only applies the five-step model when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception and once the contract is determined to be within the scope of ASC 606, we assess the goods or services promised within each contract and determines those that are performance obligations, and assesses whether each promised good or service is distinct. Our contracts contain a single performance obligation and the entire transaction price is allocated to the single performance obligation. We recognize as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Accordingly, we recognize revenues (net) when the customer obtains control of the Company’s product, which typically occurs upon shipment of the product. For the year ended March 31, 2019, and the three months ended March 31, 2018 the Company’s customers that comprised more than ten percent (10%) of total revenues and accounts receivable were as follows: For the Year Ended For the Three Months Ended For the Year Ended PERCENTAGES Revenues Accounts Receivable Revenues Accounts Receivable Revenues Accounts Receivable Customers: A 24.6 % 29.4 % - - - - B 19.1 % - - - - - C 10.0 % - 35.5 % 54.6 % 57.8 % 27.4 % D - 19.0 % - - - - E - - 17.1 % 12.6 % - - F - - 15.1 % - - - G - - - - - 20.4 % H - - - - - 12.7 % 53.7 % 48.4 % 67.7 % 67.2 % 57.8 % 60.5 % Advertising Costs We expense advertising costs as they are incurred. We incurred advertising and marketing costs of $554,266 $245,472 and $220,154 for the year ended March 31, 2019, for the three months ended March 31, 2018 and for the year ended December 31, 2017, respectively. Fair Value of Financial Instruments We measure options and warrants at fair value in accordance with Accounting Standards Codification 820 – Fair Value Measurement (“ASC 820”). The objective of ASC 820 is to increase consistency and comparability in fair value measurements and to expand disclosures about fair value measurements. ASC 820 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. ASC 820 specifies a valuation hierarchy based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s own assumptions. These two types of inputs have created the following fair value hierarchy: Level 1 – Quoted prices for identical instruments in active markets; Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. This hierarchy requires us to minimize the use of unobservable inputs and to use observable market data, if available, when estimating fair value. We value all common stock issued for services on the date of the agreements, using the price at which shares were being sold to private investors or at the value of the services performed. We valued warrants issued for the reduction in conversion price for the conversion of Convertible Promissory Notes at the grant date of March 31, 2019 using valuation methods and assumptions that consider, among other factors, the fair value of the underlying stock, risk free interest rate, volatility, and expected life. March 31, 2019 March 31, 2018 December 31, 2017 Risk free interest rate 2.39 % 2.05 % 1.31 - 1.5 % Expected volatility 45 % 195 % 250 % Expected term 2.5 years 1 year 1 - 1.5 years Expected dividend yield 0 % 0 % 0 % Equipment acquired in the March 15, 2019 acquisition of the Jagemann Casings was valued at fair value on the acquisition date by a third party valuation firm. We valued warrants issued for services at the grant date of March 12, 2018 using valuation methods and assumptions that consider, among other factors, the fair value of the underlying stock, risk free interest rate, volatility, and expected life. In the year ended December 31, 2017, Equipment acquired in the foreclosure transaction and the patent were valued on their respective acquisition dates using fair values. Quoted Active Significant Significant Total (Level 1) (Level 2) (Level 3) March 31, 2019 Employee stock awards $ - $ 1,172,974 $ - $ 1,172,974 Executive stock grant expense - 703,030 - 703,030 SWK patent acquisition - - 4,624,005 4,624,005 Jagemann Munition Components acquired intangible assets - - 5,912,305 5,912,305 Stock and warrants issued for convertible promissory notes - 358,800 - 358,800 March 31, 2018 Employee stock awards $ - $ 482,432 $ - $ 482,432 Executive stock grant expense - 106,563 - 106,563 Warrants issued for services - - 125,000 125,000 December 31, 2017 Common stock issued for legal, advisory and consulting fees $ - $ 454,625 $ - $ 454,625 Employee stock awards - 160,000 - 160,000 Common stock for licensing agreement - 125,000 - 125,000 Patent acquisition, noncash element - - 750,000 750,000 Warrants issued for interest - - 46,188 46,188 Warrants issued for services - - 67,000 67,000 Assets acquired in foreclosure - - 543,115 543,115 Common Stock issued for prepaid legal fees - 224,000 - 224,000 Inventories We state inventories at the lower of cost or market. We determine cost using the average cost method. Our inventory consists of raw materials, work in progress, and finished goods. Cost of inventory includes cost of parts, labor, quality control, and all other costs incurred to bring our inventories to condition ready to be sold. We periodically evaluate inventories for obsolescence. Property and Equipment We state property and equipment at cost, less accumulated depreciation. We capitalize major renewals and improvements, while we charge minor replacements, maintenance, and repairs to current operations. We compute depreciation by applying the straight-line method over estimated useful lives, which are generally five to ten years. Compensated Absences We accrue a liability for compensated absences in accordance with Accounting Standards Codifications 710 – Compensation – General. Stock-Based Compensation We account for stock-based compensation at fair value in accordance with SFAS No. 123 and 123 (R) (ASC 718). There were 702,500 shares of common stock issued to employees, members of the Board of Directors, and members of the Advisory Committee for services during the year ended March 31, 2019. On March 12, 2018, we entered into an employment agreement with an executive that included, among other provisions, an equity grant of 400,000 shares of restricted common stock that vests at the rate of 100,000 shares annually for four years. The $660,000 compensation value is being recognized ratably on a straight-line basis over the four-year period covered by the agreement. On May 1, 2018, we entered into an employment agreement with Robert D. Wiley, Chief Financial Officer, that included, among other provisions, an equity grant of 100,000 shares of restricted common stock that vests at the rate of 33,333 shares annually for three years. The $250,000 compensation value is being recognized on a straight-line basis over the three-year period covered by the agreement. From September 2018 through March 2019, we entered into seven separate employment agreements that included in total, among other provisions, equity grants of 535,000 shares of restricted common stock that vests annually over the next four years. The total compensation value of $1,376,000 is being recognized on a straight-line basis over the periods covered by each agreement, up to four years. Concentrations of Credit Risk Accounts at banks are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 at various times. As of March 31, 2019, our bank account balances exceeded federally insured limits. Income Taxes We file federal and state income tax returns in accordance with the applicable rules of each jurisdiction. We account for income taxes under the asset and liability method in accordance with Accounting Standards Codification 740 - Income Taxes (“ASC 740”). The provision for income taxes includes federal, state, and local income taxes currently payable, and deferred taxes. We recognize deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. We measure deferred tax assets and liabilities using enacted tax rates expected to apply to taxable amounts in years in which those temporary differences are expected to be recovered or settled. If it is more likely than not that some portion or all of a deferred tax asset will not be realized, a valuation allowance is recognized. In accordance with ASC 740, we recognize the effect of income tax positions only if those positions are more likely than not of being sustained. We measure recognized income tax positions at the largest amount that is greater than 50% likely of being realized. We reflect changes in recognition or measurement in the period in which the change in judgment occurs. We currently have substantial net operating loss carryforwards. We have recorded a valuation allowance equal to the net deferred tax assets due to the uncertainty of the ultimate realization of the deferred tax assets. Contingencies Certain conditions may exist as of the date the consolidated financial statements are issued that may result in a loss to us but will only be resolved when one or more future events occur or fail to occur. We assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against us or unasserted claims that may result in such proceedings, we evaluate the perceived merits of any legal proceedings or unasserted claims and the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is possible that a material loss has been incurred and the amount of the liability can be estimated, the estimated liability would be accrued in our consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of range of possible loss if determinable and material, would be disclosed. There were no known contingencies at March 31, 2019, March 31, 2018 or December 31, 2017. Recent Accounting Pronouncements In May 2014, FASB issued ASU 2014-09, “Revenue from Contracts with Customers”. This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The revised effective date for this ASU is for annual and interim periods beginning on or after December 15, 2017, and early adoption will be permitted, but not earlier than the original effective date of annual and interim periods beginning on or after December 15, 2016, for public entities. We adopted ASU 2014-09 as of January 1, 2018, and it did not have a material impact on the Company’s consolidated results of operations, financial position or cash flows for the year ended March 31, 2019 and the three months ended March 31, 3018. Sales are initiated in three ways – ● third party sales representative obtains signed purchase order from a customer ● direct contact by in-house sales representatives who obtains signed purchase order ● electronic purchase order from a customer (usually the very large customers) Once a customer’s order is received a sales order is generated by authorized sales or management personnel. Once approved for shipping, the sales order is entered, the inventory control department will pull the purchased items from the inventory or if needed will request the manufacture of a specific product. When the items that were ordered are available for shipment, the merchandise is prepared for shipping and shipped by FedEx or common carrier. All sales are recorded upon shipment and, depending on credit worthiness of customer, the payment terms will vary from thirty (30) to sixty (60) days. No refunds are allowed on any product shipped. Each product manufactured by the Company has standard specifications and performance objectives. The Company has an extensive product testing program and, if the Company were given notice of a product defect by a customer, the Company would request the return of the product so that the manufacturing defect could be identified. From inception to March 31, 2019, the Company has had no returned products related to product warranty. The revenue recognition procedures set forth above have been used by the Company since its inception and are consistent with requirements of ASC 606 “Revenue from Contracts with Customers”. In February 2016, the FASB issued ASU 2016-02 – “Leases (Topic 842)” Under ASU 2016-02, entities will be required to recognize lease asset and lease liabilities by lessees for those leases classified as operating leases. Among other changes in accounting for leases, a lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to (and a lessor) should include payments to be made in optional periods only if the lessee is reasonably certain to exercise an option to extend the lease or not to exercise an option to terminate the lease. Similarly, optional payments to purchase the underlying asset should be included in the measurement of lease assets and lease liabilities only if the lessee is reasonably certain to exercise that purchase option. The amendments in ASU 2016-02 will become effective for fiscal years beginning after December 15, 2018, including interim periods with those fiscal years for public business entities. We are currently evaluating the effect of the adoption of ASU 2016-02 will have on our consolidated results of operations, financial position or cash flows. On June 20, 2018, the FASB expanded the scope of Accounting Standards Codification (ASC) 718, Compensation – Stock Compensation, to include share-based payments to nonemployees for goods and services. The accounting board said the amendments in Accounting Standards Update (ASU) No. 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, align the guidance for stock compensation to employees and nonemployees. The amended guidance replaces ASC 505-50, Equity – Equity-Based Payments to Non-Employees. We anticipate that this ASC will not have a material effect on the Company’s financial statements. The amendments in ASU No. 2018-07 apply “to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards,” the FASB said. But the amended guidance does not cover stock compensation that is used to provide financing to the company that issued the shares or stock awards tied to a sale of goods or services as part of a contract accounted for according to ASC 606, Revenue From Contracts With Customers. The amendments are effective for public companies for fiscal years that begin after December 15, 2018, and the quarterly and other interim periods in those years, the FASB said the amended guidance can be applied before it becomes effective, but businesses are not permitted to use the guidance in ASU No. 2018-07 before they have implemented ASC 606. We have evaluated the effect of the adoption of ASU 2018-07 will have on our consolidated results of operations, financial position or cash flows and determine the effects will not be material to the Company’s financial statements. Management does not believe that any other recently issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting pronouncements are issued, we will adopt those that are applicable under the circumstances. Loss Per Common Share We calculate basic loss per share using the weighted-average number of shares of common stock outstanding during each reporting period. Diluted loss per share includes potentially dilutive securities, such as outstanding options and warrants, using various methods, such as the treasury stock or modified treasury stock method, in the determination of dilutive shares outstanding during each reporting period. We have issued warrants to purchase 8,143,115 shares of common stock that are potentially dilutive. All weighted average numbers were adjusted for the reverse stock split and merger transaction. Due to the loss from operations in the year ended March 31, 2019, the three month period ended March 31, 2018, and the year ended December 31, 2017, there are no common shares added to calculate the dilutive EPS for those periods as the effect would be antidilutive. |
Vendor Notes Receivable
Vendor Notes Receivable | 12 Months Ended |
Mar. 31, 2019 | |
Vendor Notes Receivable | |
Vendor Notes Receivable | NOTE 3 – VENDOR NOTES RECEIVABLE While living in Payson, AZ, a small city 90 minutes north of Phoenix, AMMO’s CEO, Fred Wagenhals, was approached by Payson’s mayor to discuss Advanced Tactical Armament Concepts, LLC (ATAC), an ammunition manufacturing company located in Payson. ATAC was experiencing financial difficulties and the mayor was concerned about the economic effect it would have on his city if ATAC’s manufacturing plant closed down. The mayor asked Mr. Wagenhals if he could develop a plan to salvage the ATAC plant and restore operations. Before Mr. Wagenhals could assist, ATAC’s financial situation worsened and the business ceased operations. ATAC’s bank, WESTERN ALLIANCE BANK, petitioned the bankruptcy court to appoint a receiver to protect the bank’s collateral. Wagenhals approached the bank about resolving the receivership issue and re-opening the business. The bank agreed to delay its action in exchange for an immediate payment of $235,000 by ATAC and an increase of $665,000 in ATAC’s working capital. ATAC borrowed $900,000 plus $135,000 in stipulated interest from a related party of Wagenhals (Mansfield L.L.C.). On October 24, 2016, AMMO, Inc. completed negotiations with Western Alliance Bank to purchase the bank’s position ($1,910,993) as the note holder for $1,550,000. Vendor note receivable consisted of the following at December 31, 2016: Advanced Tactical Armament Concepts, L.L.C. Notes Payable Purchased by Ammo Amount Western Alliance Bank – Balance outstanding as of October 24, 2016 $ 1,910,993 Negotiated Discount with Western Alliance Bank to assume the Note Receivable (360,993 ) AMMO, Inc. Net Purchase Price for Western Alliance Note Payable 1,550,000 Mansfield, LLC Note Outstanding, inclusive of $135,000 fee outstanding 1,035,000 AMMO, Inc. Net Purchase Price to Acquire Notes Receivable of Western Alliance Bank & Mansfield LLC $ 2,585,000 On November 21, 2016 AMMO applied for its’ Federal Firearms License which it received on February 1, 2017. Between November 21, 2016 and February 1, 2017, Wagenhals made an agreement with the owners of ATAC to start production of AMMO, Inc. branded ammunitions. This was accomplished by providing ATAC $219,000 in raw materials and ATAC was advanced $89,000 to pay selected ATAC vendors whose materials were required in the manufacturing process and to re-hire production employees. AMMO negotiated an agreement with the management of ATAC to liquidate the vendor notes advances balance by manufacturing AMMO branded products in the future. ATAC’s operations continued to worsen and on February 20, 2017, a sale was held for the disposition of collateral for Advanced Tactical Armament Concepts, LLC, a Nevada Limited Liability Company. As a secured party, we submitted a creditor bid. Our bid for the sale for the disposition of collateral was the highest and was accepted and we assumed operation of the manufacturing facility. We reflected this transaction in the following manner: Notes Receivable $ (2,585,000 ) Vendor advances receivable 96,552 Accounts receivable 20,965 Inventories 644,447 Equipment 543,115 Loss on notes receivable 1,279,921 $ - The management of AMMO reviewed their options for accounting for the foreclosure on ATAC’s collateral and determined that they had not purchased a business, therefore the assets acquired in foreclosure would have to be assessed for their fair values. The receivables and inventories were valued at their collectible amounts or replacement costs. AMMO had the equipment appraised by a professional appraisal firm. |
Inventories
Inventories | 3 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | ||
Inventories | NOTE 3 – INVENTORIES At June 30, 2019 and March 31, 2019, the inventory balances are composed of: June 30, 2019 March 31, 2019 Finished product $ 2,809,738 $ 2,628,241 Raw materials 2,207,151 1,635,130 Work in process 536,232 509,226 $ 5,553,121 $ 4,772,597 | NOTE 4 – INVENTORIES At March 31, 2019, March 31, 2018, December 31, 2017, the inventory balances consisted of the following: March 31, 2019 March 31, 2018 December 31, 2017 Finished product $ 2,628,241 $ 809,680 $ 1,007,291 Raw materials 1,635,130 1,471,666 764,810 Work in process 509,226 123,661 20,213 $ 4,772,597 $ 2,405,007 $ 1,792,314 |
Property and Equipment
Property and Equipment | 3 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Property and Equipment | NOTE 4 – PROPERTY AND EQUIPMENT We state property and equipment at historical cost less accumulated depreciation. We compute depreciation using the straight-line method at rates intended to depreciate the cost of assets over their estimated useful lives, which are generally five to seven years. Upon retirement or sale of property and equipment, we remove the cost of the disposed assets and related accumulated depreciation from the accounts and any resulting gain or loss is credited or charged to selling, general, and administrative expenses. We charge expenditures for normal repairs and maintenance to expense as incurred. We capitalize additions and expenditures for improving or rebuilding existing assets that extend the useful life. Leasehold improvements made either at the inception of the lease or during the lease term are amortized over the shorter of their economic lives or the lease term including any renewals that are reasonably assured. Property and equipment consisted of the following at June 30, 2019 and March 31, 2019: June 30, 2019 March 31, 2019 Leasehold improvements $ 111,631 $ 98,444 Furniture and fixtures 157,609 154,777 Vehicles 103,511 103,511 Equipment 18,914,770 18,689,140 Tooling 126,190 117,390 Construction in progress 3,352,669 3,352,669 Total property and equipment $ 22,766,380 $ 22,515,931 Less accumulated depreciation (1,098,818 ) (516,144 ) Net property and equipment $ 21,667,562 $ 21,999,787 Depreciation Expense for the three months ended June 30, 2019 and 2018 totaled $582,674 and $54,923, respectively. | NOTE 5 – EQUIPMENT We state property and equipment at historical cost less accumulated depreciation. We compute depreciation using the straight-line method at rates intended to depreciate the cost of assets over their estimated useful lives, which are generally five to ten years. Upon retirement or sale of property and equipment, we remove the cost of the disposed assets and related accumulated depreciation from the accounts and any resulting gain or loss is credited or charged to selling, general, and administrative expenses. We charge expenditures for normal repairs and maintenance to expense as incurred. We capitalize additions and expenditures for improving or rebuilding existing assets that extend the useful life. Leasehold improvements made either at the inception of the lease or during the lease term are amortized over the shorter of their economic lives or the lease term including any renewals that are reasonably assured. Property and equipment consisted of the following at March 31, 2019, March 31, 2018 and December 31, 2017: March 31, 2019 March 31, 2018 December 31, 2017 Leasehold Improvements $ 98,444 $ 17,772 $ 15,475 Furniture and Fixtures 154,777 8,102 33,751 Vehicles 103,511 89,388 36,500 Equipment 18,689,140 879,871 184,626 Tooling 117,390 359,351 579,951 Construction in Progress 3,352,669 - - Total property and equipment $ 22,515,931 $ 1,354,484 $ 847,303 Less accumulated depreciation (516,144 ) (113,158 ) (77,861 ) Net equipment 21,999,787 1,241,326 769,442 Depreciation expense for the year ended March 31, 2019, for the three months ended March 31, 2018, and for the year ended December 31, 2017 totaled $402,986, $35,297, and $77,861, respectively. |
Convertible Note Payable
Convertible Note Payable | 12 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Convertible Note Payable | NOTE 6 – CONVERTIBLE NOTE PAYABLE We entered into an agreement for a short-term convertible note payable to an unrelated party on December 22, 2016 with a 60-day maturity and a $1,875,000 principal balance. The note had a one-time fee of $375,000, which was amortized as interest ratably over the 60-day period. The note is convertible into shares of our common stock and one stock purchase warrant at a conversion price of $1.25 per unit and an exercise price of $2.50. During the year ended December 31, 2017, we recognized $356,250 of interest as amortization of a portion of the one-time interest fee and accrued an additional $74,896 in interest expense. As of December 31, 2017, the balance of the note payable was $1,575,000. During the three months ended March 31, 2018, we recorded no additional interest expense and the note was paid in full. |
Notes Payable - Related Party
Notes Payable - Related Party | 3 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Mar. 31, 2019 | |
Debt Disclosure [Abstract] | ||
Notes Payable - Related Party | NOTE 7 – NOTES PAYABLE – RELATED PARTY In connection with the acquisition of the casing division of Jagemann Stamping Company, a $10,400,000 promissory note was executed and is described in Note 10. The promissory note, under which $500,000 was paid on March 25, 2019 using funds raised for the acquisition, had a remaining balance at March 31, 2019 of $9,900,000. On April 30, 2019, the original due date of the note was subsequently extended to April 1, 2020. The note bears interest per annum at approximately 4.6% payable in arrears monthly until October 1, 2019 when the interest rate increases to 9% per annum payable monthly until principal and accrued interest are paid in full. In May of 2019, the Company paid $1,500,000 on the balance of the note. As of June 30, 2019 and March 31, 2019, we accrued interest of $127,036 and $22,196, respectively, related to the note. The note is secured by all the equipment purchased from Jagemann Stamping Company and was valued at $18,869,541 in the accompanying financial statements. On May 3, 2019, the Company entered into a promissory note of $375,000 with a shareholder of the Company. The note bears interest at a per annum of 2.56%. The note has a maturity date of August 3, 2019. | NOTE 7 – NOTES PAYABLE – RELATED PARTY On December 16, 2016, we and Mansfield, an entity controlled by our Chief Executive Officer, entered into a note purchase and sale agreement to purchase a promissory note held by Mansfield and payable by ATAC. We purchased the promissory note for $1,035,000. The note was repaid on December 31, 2017. Interest on the note was imputed in the amount of $46,340, as there was no stated interest rate in the note document. In connection with the acquisition of the patent on August 22, 2017, we were obligated to pay $200,000 to Hallam, Inc.’s shareholders. The first $100,000 was paid on August 22, 2017, and a note was executed in the amount of $100,000 which was paid in full on February 2, 2018. On August 29, 2017, we borrowed $100,000 from a paid legal consultant to whom we issued warrants to purchase 40,000 shares of common stock with an exercise price of $0.50 per share, expiring two years from date of issuance. The warrants were valued at $46,188 and recognized as interest expense in 2017. The note was paid in full on October 31, 2017. In connection with the acquisition of the casing division of Jagemann Stamping Company, a $10,400,000 promissory note was executed and is described in Note 10. The promissory note, under which $500,000 was paid on March 25, 2019 using funds raised for the acquisition, had a remaining balance at March 31, 2019 of $9,900,000. On April 30, 2019, the original due date of the note was subsequently extended to April 1, 2020. The note bears interest per annum at approximately 4.6% payable in arrears monthly until October 1, 2019 when the interest rate increases to 9% per annum payable monthly until principal and accrued interest are paid in full. In May of 2019, the Company paid $1,500,000 on the balance of the note. As of March 31, 2019, we accrued interest of $22,196 related to the note. The note is secured by all the equipment purchased from Jagemann Stamping Company and was valued at $18,869,541 in the accompanying financial statements. |
Convertible Promissory Notes
Convertible Promissory Notes | 3 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Mar. 31, 2019 | |
Debt Disclosure [Abstract] | ||
Convertible Promissory Notes | NOTE 6 – CONVERTIBLE PROMISSORY NOTES On January 9, 2019, we completed the issuance of 10% Convertible Promissory Notes in the principal amount of $1,710,000 to accredited investors through a private placement in exchange for cash in an equal amount. The principal amounts were raised from the period of October 23, 2018 to December 28, 2018. As a result of the issuance of the Convertible Promissory Notes, the placement agent received an aggregate commission of $171,000, and $5,000 in escrow fees were paid, totaling $176,000 of Note Issuance Costs. As of March 31, 2019, we recorded $151,856 of interest expense related to the Note Issuance Costs. The Maturity Date of the notes is the two year anniversary from the date of issuance. The holders have the option to convert the entire principal of the Convertible Promissory Note into Common Stock at a conversion price equal to $2.50 per share at any time until the Maturity Date, subject to “Qualified Financing.” Qualified Financing means the next equity round of financing of the Company that raises not less than $10,000,000 gross proceeds from institutional(s) or commercial lender(s) in the aggregate with any combination of Common Stock (valued at the close of the Trading Day on the date of the closing for the financing) or debt. In the event of Qualified Financing, the Convertible Promissory Notes will automatically convert 100% of the principal amount into Common Stock at a conversion price equal to $2.50 per share. As of March 31, 2019, we accrued $65,291 of interest expense related to the Convertible Promissory Notes. On February 28, 2019, the company notified the holders of an offer to convert Convertible Promissory Notes and Accrued Interest into Common Stock at a conversion price of $2.00 per share and receive one-half warrant exercisable at $2.40 per share for five years in conjunction with each converted share On March 29, 2019, the Company converted $1,410,000 of Convertible Promissory Notes and $52,065 of Accrued Interest into 731,039 shares of Common Stock and issued Warrants to purchase 365,523 shares of Common Stock. The offer ended on March 29, 2019 at 11:59 PM. As a result of the conversion of the Convertible Promissory Notes, the Company accrued $42,300 for a 3% cash conversion fee on the principal converted payable to the placement agent, Paulson Investment Company. Additionally, $118,351 of Unamortized Note Issuance Costs were amortized and $358,800 of Interest Expenses related to the reduction in conversion price were recognized as result of the conversions. The holders that did not elect to convert their notes during this period have the option to convert their entire principal of the Convertible Promissory Note into Common Stock per the terms of the original agreement. As of March 31, 2019, there was $300,000 in principal remaining and $23,145 of Unamortized Note Issuance Costs. On June 5, 2019, the remaining $300,000 of Convertible Promissory Notes were mandatorily converted into shares of our common stock pursuant to the terms of the Note. The Company converted $300,000 of Convertible Promissory Notes and $18,226 of Accrued Interest were converted into 127,291 shares of Common Stock at a conversion price of $2.50. The Company accrued $9,000 for a 3% cash conversion fee on the principal converted payable to the placement agent, Paulson Investment Company. | NOTE 8 – CONVERTIBLE PROMISSORY NOTES On January 9, 2019, we completed the issuance of 10% Convertible Promissory Notes in the principal amount of $1,710,000 to accredited investors through a private placement in exchange for cash in an equal amount. The principal amounts were raised from the period of October 23, 2018 to December 28, 2018. As a result of the issuance of the Convertible Promissory Notes, the placement agent received an aggregate commission of $171,000, and $5,000 in escrow fees were paid, totaling $176,000 of Note Issuance Costs. As of March 31, 2019, we recorded $151,856 of interest expense related to the Note Issuance Costs. The Maturity Date of the notes is the two year anniversary from the date of issuance. The holders have the option to convert the entire principal of the Convertible Promissory Note into Common Stock at a conversion price equal to $2.50 per share at any time until the Maturity Date, subject to “Qualified Financing.” Qualified Financing means the next equity round of financing of the Company that raises not less than $10,000,000 gross proceeds from institutional(s) or commercial lender(s) in the aggregate with any combination of Common Stock (valued at the close of the Trading Day on the date of the closing for the financing) or debt. In the event of Qualified Financing, the Convertible Promissory Notes will automatically convert 100% of the principal amount into Common Stock at a conversion price equal to $2.50 per share. As of March 31, 2019, we accrued $65,291 of interest expense related to the Convertible Promissory Notes. On February 28, 2019, the company notified the holders of an offer to convert Convertible Promissory Notes and Accrued Interest into Common Stock at a conversion price of $2.00 per share and receive one-half warrant exercisable at $2.40 per share for five years in conjunction with each converted share On March 29, 2019, the Company converted $1,410,000 of Convertible Promissory Notes and $52,065 of Accrued Interest into 731,039 shares of Common Stock and issued Warrants to purchase 365,523 shares of Common Stock. The offer ended on March 29, 2019 at 11:59 PM. As a result of the conversion of the Convertible Promissory Notes, the Company accrued $42,300 for a 3% cash conversion fee on the principal converted payable to the placement agent, Paulson Investment Company. Additionally, $118,351 of Unamortized Note Issuance Costs were amortized and $358,800 of Interest Expenses related to the reduction in conversion price were recognized as result of the conversions. The holders that did not elect to convert their notes during this period have the option to convert their entire principal of the Convertible Promissory Note into Common Stock per the terms of the original agreement. As of March 31, 2019, there was $300,000 in principal remaining and $23,145 of Unamortized Note Issuance Costs. On June 5, 2019, the remaining $300,000 of Convertible Promissory Notes were mandatorily converted into shares of our common stock pursuant to the terms of the Note. The Company converted $300,000 of Convertible Promissory Notes and $18,228 of Accrued Interest were converted into 127,291 shares of Common Stock at a conversion price of $2.50. The Company accrued $9,000 for a 3% cash conversion fee on the principal converted payable to the placement agent, Paulson Investment Company. |
Capital Stock
Capital Stock | 3 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Mar. 31, 2019 | |
Equity [Abstract] | ||
Capital Stock | NOTE 8 – CAPITAL STOCK During the three month period ended June 30, 2019, we issued 1,256,833 shares of common stock as follows: ● 898,550 shares were sold to investors for $1,797,100 ● 127,291 shares were issued for the conversion of Convertible Promissory Notes valued at $318,226 ● 63,492 shares were issued for services valued at $200,000 ● 167,500 shares valued at $333,250 were issued to employees, members of the Board of Directors, and members of the Advisory Committee as compensation In December of 2018, we entered into a placement agreement to secure equity capital from qualified investors to provide funds to our operations. The offering consisted of Units priced at $2.00, which included one share of common stock and one five-year warrant to purchase an additional half-share of common stock for an exercise price of $2.40 per share. Effectively, every two units purchased provided the investor with a five-year warrant at an exercise price of $2.40 per share. Units sold under this agreement totaled 898,550 shares of common stock and 449,275 warrants for $1,797,100 for the three month period ended June 30, 2019. For services provided under the placement agreements, the placement agent collected a 12% cash fee on the sale of every Unit and a fee payable in warrants equaling 12% of the total Units sold. These warrants have a term of five years and an exercise price of $2.00 per share. The cash fee totaled $164,567 for the three month period ended June 30, 2019, including reimbursed expenses. At June 30, 2019, outstanding and exercisable stock purchase warrants consisted of the following: Number of Weighted Averaged Weighted Outstanding at March 31, 2019 $ 8,143,115 $ 2.09 4.35 Granted 503,101 2.36 4.80 Exercised - - - Forfeited or cancelled - - - Outstanding at June 30, 2019 8,646,216 $ 2.11 4.13 Exercisable at June 30, 2019 8,646,216 $ 2.11 4.13 As of June 30, 2019, we had 8,646,216 warrants outstanding. Each warrant provides the holder the right to purchase up to one share of our Common Stock at a predetermined exercise price. The outstanding warrants consist of (1) warrants to purchase an aggregate of 349,060 shares of Common Stock at an average price of $2.50 per share until March 2020; (2) warrants to purchase 966,494 shares of Common Stock at an exercise price of $1.65 per share until April 2025; (3) warrants to purchase 4,601,639 shares of our Common Stock at an exercise price of $2.00 per share over the next three to five years; and (4) warrants to purchase 2,729,023 shares of Common Stock at an exercise price of $2.40 over the next five years. | NOTE 9 – CAPITAL STOCK Our authorized capital consists of 200,000,000 shares of common stock with a par value of $0.001 per share. During the 12-month period ended December 31, 2017, we issued 6,733,793 shares of common stock as follows: ● 604,371 were issued in connection with the acquisition of our business assets ● 100,000 net shares were issued to founding shareholders ● 4,640,822 shares were sold to investors for $6,038,900 ● 544,600 shares valued at $678,625 were issued for legal, advisory, and consulting fees ● 600,000 shares valued at $750,000 were issued to acquire the use of a patent ● 120,000 shares valued at $160,000 were issued to employees as compensation ● 100,000 shares were issued to Jeff Rann for a licensing agreement ● 24,000 shares were issued for other purposes During the three-month period ended March 31, 2018, we issued 5,906,710 shares of common stock as follows: ● 5,614,210 shares were sold to investors for $9,263,424 ● 292,500 shares valued at $482,624 were issued to employees and directors as compensation During the year ended March 31, 2019, we issued 15,618,572 shares of common stock as follows: ● 5,796,336 shares were sold to investors for $10,903,930 ● 1,972,800 shares were issued through exercised warrants of $4,767,625 ● 10,495 shares were issued through a cashless exercise of 14,719 warrants ● 702,500 shares valued at $1,172,974 were issued to employees, members of the Board of Directors, and members of the Advisory Committee as compensation ● 5,000 shares were issued for services valued at $22,350 ● 1,700,002 shares were issued to the shareholders of SW Kenetics, Inc. (subject to claw back provisions) valued $4,624,005 in connection with the acquisition ● 4,750,000 shares were issued to Jagemann Stamping Company valued at $9,500,000 in connection with the acquisition of Jagemann Casings ● 731,039 shares were issued for the conversion of Convertible Promissory Notes valued at $1,820,865 ● 49,600 shares were purchased by the Company for a price of $124,000 In November of 2017, the Board of Directors approved the 2017 Equity Incentive Plan (“the Plan”). Under the Plan, 485,000 shares of the common stock were reserved and authorized to be issued. As of December 31, 2017, 200,000 shares of common stock were approved and issued under the Plan, and we recognized approximately $250,000 of related consulting expense. On January 10, 2018, 200,000 shares were awarded, and we recognized $330,000 of compensation expense. There are 85,000 shares remaining to be issued under the Plan. In October of 2017. we entered into a placement agent agreement to secure equity capital from qualified investors to provide funds to expand our operations. The offering consisted of Units priced at $1.65, which included one share of common stock and one five-year warrant to purchase an additional half-share of common stock for an exercise price of $2.00 per share. Effectively, every two units purchased provided the investor with a five-year warrant at an exercise price of $2.00 per share. Units sold under this arrangement totaled 594,702 shares of common stock and 297,351 warrants for $981,250 during the year ended December 31, 2017, and 5,614,210 shares of common stock and 2,807,105 warrants for a total of $9,263,424 for the three months ended March 31, 2018. The total number of Units covered by this offering was 6,060,606, and the amount was $10,000,000. In March 2018, we entered into a second placement agent agreement with the same terms for up to an additional $3,500,000. For services provided under the placement agreements, the placement agent collected a 12% cash fee on the sale of every Unit and a fee payable in warrants equaling 12% of the total Units sold. These warrants have a term of seven years and an exercise price of $1.65 per share. The cash fee totaled $117,750 for the year ended December 31, 2017 and $1,137,211 for the three months ended March 31, 2018, including reimbursed expenses. Under this agreement, we recognized 71,364 and 673,705 warrants as authorized, but unissued as of December 31, 2017 and March 31, 2018, respectively. In April of 2018, our second placement agreement to secure equity capital from qualified investors to provide funds to our operations ended. Units sold under this agreement during the year ended March 31, 2019 totaled 1,967,886 shares of common stock and 983,943 warrants for $3,247,030. The cash fee totaled $389,644 for the year ended March 31, 2019, including reimbursed expenses. We authorized an additional 236,145 warrants to the placement agent under the terms of the agreement and issued a total of 981,213 warrants to the placement agent for the two placement agent agreements. In December of 2018, we entered into a placement agreement to secure equity capital from qualified investors to provide up to $13,000,000 in funds to our operation. The offering consisted of Units priced at $2.00, which included one share of common stock and one five-year warrant to purchase an additional half-share of common stock for an exercise price of $2.40 per share. Effectively, every two units purchased provided the investor with a five-year warrant at an exercise price of $2.40 per share. Units sold under this agreement totaled 3,828,450 shares of common stock and warrants to purchase 1,914,225 shares of our Common Stock for $7,656,900 for the year ended March 31, 2019. As of June 28, 2019, there is up to $3,546,000 in funds to be provided under this placement agreement. For services provided under the placement agreements, the placement agent collected a 12% cash fee on the sale of every Unit and a fee payable in warrants equaling 12% of the total Units sold. These warrants have a term of five years and an exercise price of $2.00 per share. The cash fee totaled $942,828 for the year ended March 31, 2019, including reimbursed expenses and the fee payable in warrants totaled 459,414 warrants. On March 29, 2019, the Company converted $1,410,000 of Convertible Promissory Notes and $52,065 of Accrued Interest into 731,039 shares of Common Stock and Warrants to purchase 365,523 shares of Common Stock. We accrued $42,300 for a 3% cash conversion fee on the principal converted payable to the placement agent, Paulson Investment Company. At March 31, 2019, March 31, 2018, and December 31, 2017, outstanding and exercisable stock purchase warrants consisted of the following: December 31, 2017 Number of Shares Weighted Averaged Exercise Price Weighted Average Life Remaining (Years) Outstanding at December 31, 2016 720,000 $ 2.22 1.95 Granted 4,542,338 2.23 1.9 Exercised - - - Forfeited or cancelled - - - Outstanding at December 31, 2017 5,262,338 $ 2.43 1.77 Exercisable at December 31, 2017 5,262,338 $ 2.43 1.77 March 31, 2018 Number of Shares Weighted Averaged Exercise Price Weighted Average Life Remaining (Years) Outstanding at December 31, 2017 5,262,338 $ 2.50 1.77 Granted 3,609,822 2.42 5.13 Exercised - - - Forfeited or cancelled - - - Outstanding at March 31, 2018 8,872,160 $ 2.23 2.97 Exercisable at March 31, 2018 8,872,160 $ 2.23 2.97 March 31, 2019 Number of Shares Weighted Averaged Exercise Price Weighted Average Life Remaining (Years) Outstanding at March 31, 2018 8,872,160 $ 2.23 2.97 Granted 4,233,274 2.23 4.62 Exercised (1,987,519 ) 2.41 - Forfeited or cancelled (2,974,800 ) 2.47 - Outstanding at March 31, 2019 8,143,115 $ 2.09 4.35 Exercisable at March 31, 2019 8,143,115 $ 2.09 4.35 As of March 31, 2019, we had 8,143,115 warrants outstanding. Each warrant provides the holder the right to purchase up to one share of our Common Stock at a predetermined exercise price. The outstanding warrants consist of (1) warrants to purchase an aggregate of 349,060 shares of Common Stock at an average price of $2.50 per share until March 2020; (2) warrants to purchase 966,494 shares of Common Stock at an exercise price of $1.65 per share until April 2025; (3) warrants to purchase 4,547,813 shares of our Common Stock of an exercise price of $2.00 per share until over the next five years, and (4) warrants to purchase 2,279,748 shares of Common Stock at an exercise price of $2.40 until March 2024. On May 31, 2018, per the terms of the private offering dated January 25, 2017, we called for the exercise of warrants to purchase a total of 4,947,600 shares of our Common Stock. According to the terms of the Warrant Purchase Agreement, the warrants could be called when the average price of our common stock traded at $5.00 per share or higher, for a consecutive 30 day period. This call provision was met on May 21, 2018. As a result, we issued formal notice to all warrant holders on May 31, 2019, advising them that they had until July 6, 2018, to exercise their warrants, or they would become null and void. The total number of warrants included in the January 25, 2017 offering were 4,947,600 and were priced as follows: 4,790,100 warrants at an exercise price of $2.50, 67,500 warrants at an exercise price of $1.25 and 90,000 warrants at an exercise price of $0.50. As of July 6, 2018, a total of 1,972,800 warrants were exercised to purchase an equivalent 1,972,800 shares of common stock at an average price of $2.42 and 2,974,800 warrants to purchase shares of Common Stock were cancelled. On July 12, 2018, the company filed a Form 8-K to report the activity of this event. Additionally, there was a cashless exercise of 14,719 warrants resulting in the issuance of 10,495 shares of Common Stock unrelated to the call for the exercise of warrants. |
Acquisitions
Acquisitions | 12 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | NOTE 10 – ACQUISITIONS SW Kenetics, Inc. On September 27, 2018, AMMO Technologies, Inc. (“ATI”) entered into a definitive Agreement and Plan of Merger with SW Kenetics Inc. (“SWK”), an Arizona corporation and completed the merger on October 5, 2018. Pursuant to the agreement SWK merged with and into AMMO Technologies, Inc., with ATI being the survivor. Under the terms of the agreement, we issued to SW Kenetics Inc.’s three shareholders, 1,700,002 restricted shares of our common stock, payment of $250,000, and a payment obligation of $1,250,000 subject to completion of specific milestones that we have recorded as Contingent Consideration Payable. Additionally, the 1,700,002 shares of common stock were issued with claw back provisions to ensure agreed upon objectives are met. Included among the list of milestones or events that must be completed are significant revenue goals incorporating the product technology of SWK. The initial payment of $250,000 was made on August 20, 2018. The shares were each valued at $2.72, the weighted average share price of our Common Stock that was publicly traded and sold through private placement. We recorded the total purchase consideration to patents as follows: Cash $ 250,000 Contingent Consideration Payable 1,250,000 Common Stock 1,700 Additional Paid-in Capital 4,622,305 Fair Value of Patent $ 6,124,005 The preliminary fair value of the patent at the date of acquisition was $7,723,166 and resulted in the recognition of gain on bargain purchase of $1,599,161. The estimated fair value was determined by a third-party valuation firm. The valuation firm relied on estimates of future sales and profitability provided by the Company. Subsequently, the Company determined the existing facts and circumstances did not support the original fair value due to delays in obtaining tooling and manufacturing equipment. As a result, the Company adjusted the fair value of the patents from $7,723,166 to $6,124,005, with the difference reducing the previously recognized gain on bargain purchase of $1,599,161. SWK is a research and development firm located in Arizona that has designed a new portfolio of modular projectiles that the Company believes will advance the force capability of the United States military, as well as NATO member countries. SWK filed a patent for their technology, which is now pending with the United States Patent and Trademark Office. On December 13, 2018, the Company made a $50,000 payment to SW Kenetics, Inc. in connection with the completion of a milestone. The $50,000 payment reduced the Contingent Consideration Payable. On February 25, 2019, the Company filed a Current Report on Form 8-K/A to amend the original Form 8-K filed on October 5, 2019 that announced the completion of the acquisition of SW Kenetics, Inc. The Form 8-K/A included the audited financial statements of SW Kenetics, Inc. and the Unaudited Pro Forma Combined and Condensed Financial Information. Jagemann Stamping Company’s Ammunition Casing Division On March 15, 2019, Enlight Group II, LLC (hereinafter referred to as the “Buyer”), a wholly owned subsidiary of AMMO, Inc., completed its acquisition of selected assets of Jagemann Stamping Company’s (“Seller”) ammunition casing, projectile manufacturing, and sales operations (“Jagemann Casings”) pursuant to the terms of the Amended and Restated Asset Purchase Agreement (“Amended APA”) dated March 14, 2019. Pursuant to the terms of the Amended APA, the Company assumed no liabilities related to the Seller’s business and acquired only the assets set forth below: ● Seller’s equipment related to the manufacture of ammunition casings ● Trade name ● Customer Lists ● Intellectual Property owned by and/or developed for specific and sole use in the Seller’s business which is subject to the Amended APA. The items included are all trade secrets, designs, non-registered trademarks, websites and related content, manufacturing methods and processes including, engineering plans, drawings, designs, schematics, operations/systems manuals and handbooks. In accordance with the terms of the Amended APA, Buyer paid Seller a combination of $7,000,000 in cash, $10,400,000 delivered in the form of a Promissory Note, and 4,750,000 shares of AMMO, Inc., common stock valued at $2.00 per share. The fair value of the consideration transferred was valued as of the date of the acquisition as follows: Cash $ 7,000,000 Note Payable 10,400,000 Common Stock 4,750 Additional Paid-in Capital 9,495,250 Total Consideration $ 26,900,000 Total allocation for the consideration recorded for the acquisition is as follows: Equipment $ 18,869,541 Intellectual property 1,773,436 Customer relationships 1,666,774 Tradename 2,472,095 Loss on Purchase 2,118,154 Total Consideration $ 26,900,000 The fair value of the tangible and intangible assets recorded was determined by third party valuation firms. The acquired intangible assets, have remaining useful lives ranging from three to five years. After review, the Company determined that it would not realize the expected cost savings to costs of goods sold due to the significant increase in depreciation, amortization, and interest expenses. Therefore, the Company recognized a loss on purchase of $2,118,154 on the acquisition of Jagemann Casings. Seller is engaged exclusively in the business of full-service stamping involving, among other things, the manufacture and sale of deep drawn stampings for use in the ammunition casing and projectile industries. Pursuant to the Amended APA, Buyer acquired the Seller’s munition and casing division assets (including equipment and intellectual property), and is transitioning the associated employees to its direct workforce to continue the operations at Seller’s Wisconsin facilities. On June 24, 2019, the Company filed a Current Report on Form 8-K/A to amend the original Form 8-K filed on March 18, 2019 that announced the completion of selected assets of Jagemann Sporting Group’s Wisconsin Casing Division. The Form 8-K/A included the audited financial statements of the acquired business and the Unaudited Pro Forma Combined and Condensed Financial Information. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Mar. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | NOTE 11 – ACCRUED LIABILITIES At March 31, 2019, March 31, 2018, and December 31, 2017, accrued liabilities were as follows: March 31, 2019 March 31, 2018 December 31, 2017 Accrued payroll $ 248,027 $ 172,419 $ 145,779 Accrued interest 35,422 - 74,896 Accrued FAET 145,460 133,104 26,075 Accrued professional fees 74,300 99,255 - Other accruals 28,225 136,432 8,024 $ 531,434 $ 541,210 $ 254,774 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 12 – RELATED PARTY TRANSACATIONS On December 16, 2016, we purchased a promissory note in the amount of $1,035,000 from Mansfield L.L.C. (“Mansfield”), a company owned by our CEO, Fred Wagenhals. We paid $75,000 on the note in the year ended December 31, 2016 and $960,000 in the year ended December 31, 2017 and recorded imputed interest of $46,340. From October 2016 through December 2018, our executive offices were located in Scottsdale, Arizona where we lease approximately 5,000 square feet under a month-to-month triple net lease for $3,800 per month. This space housed our principal executive, administration, and marketing functions. Our Chairman, President, and Chief Executive Officer owns the building in which these offices are currently leased. During the year ended March 31, 2019, we paid approximately $168,000 in consulting fees, and $53,013 of rent to related parties. During the period ended March 31, 2018, we paid approximately $69,800 in consulting fees, and $12,434 of rent to related parties. During the year ended December 31, 2017, we paid approximately $212,700 in consulting fees, $143,000 in rents and corporate overhead and reimbursed general corporate expenses of $121,500 to related parties. In connection with the acquisition of the casing division of Jagemann Stamping Company, a promissory note was executed. The promissory note, under which $500,000 was paid on March 25, 2019 using funds raised for the acquisition, had a remaining balance at March 31, 2019 of $9,900,000. On April 30, 2019, the original due date of the note was subsequently extended to April 1, 2020. The note bears interest per annum at approximately 4.6% payable in arrears monthly until October 1, 2019 when the interest rate increases to 9% per annum payable monthly until principal and accrued interest are paid in full. In May of 2019, the Company paid $1,500,000 on the balance of the Note. As of March 31, 2019, we accrued interest of $22,196 related to the note. |
Operating Leases
Operating Leases | 3 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Operating Leases | NOTE 5 – LEASES We lease office, manufacturing, and warehouse space in Scottsdale and Payson, AZ and Manitowoc, WI under contracts we classify as operating leases. None of our leases are financing leases. The Payson lease has an option to renew for five years, and the Manitowoc lease has an option to renew for the three years. As of June 30, 2019, we are fairly certain that we will exercise the renewal options on both leases, and we have included such renewal options in the lease liabilities and the disclosures herein. The Scottsdale lease does not include a renewal option. As of June 30, 2019, the current portion of our operating lease liability was $483,872 and is reported as a current liability. Consolidated lease expense for the three months ended June 30, 2019 was $124,500 including $117,243 of operating lease expense and $7,257 of other lease associated expenses such as association dues, taxes, utilities, and other month to month rentals. Futures minimum lease payments under non-cancellable leases as of June 30, 2019 are as follows: Years Ended March 31, 2020 $ 519,922 2021 693,229 2022 693,229 2023 693,229 2024 640,118 Thereafter 2,168,932 5,408,659 Less: Interest (1,001,737 ) $ 4,406,922 Right of Use Assets and Operating Lease Liabilities on the Balance Sheet: June 30, 2019 Current portion $ 483,872 Long-term, net of current portion 3,923,050 $ 4,406,922 | NOTE 13 – OPERATING LEASES We are obligated under a triple-net operating lease for our 20,000 square foot manufacturing facility located in Payson, Arizona. The terms of the lease require a payment of approximately $10,000 per month, which includes an estimate for utilities, taxes, and repairs. This lease expires in November of 2021. We believe this facility will be adequate to meet our needs in the near future. However, we are making plans to expand our building footprint to accommodate additional automation equipment. We intend to pay for these improvements using working capital and will amortize the costs over the remaining lease period. The following table outlines our future contractual financial obligations associated with this lease by fiscal year in which payment is expected, as of March 31, 2019: 2020 2021 2022 Total Payson Lease $ 120,000 $ 120,000 $ 80,000 $ 320,000 Our executive offices are located in Scottsdale, Arizona where we lease 21,000 square feet of office and warehouse space for $17,702, which will increase by approximately 4.4% each year. This space houses our principal executive, administration, marketing, and research and development functions. The lease expires in December of 2023. The following table outlines our future contractual financial obligations associated with this lease by fiscal period in which payment is expected, as of March 31, 2019: 2020 2021 2022 2023 2024 Total Scottsdale Lease $ 216,591 $ 226,587 $ 236,583 $ 246,580 $ 147,240 $ 1,073,581 Our ammunition casing operations are located in Manitowoc, Wisconsin where we lease approximately 50,000 square feet. The terms of the lease provide for a monthly payment of approximately $32,844. The lease expires in March of 2026 and can be renewed every three years thereafter. The following table outlines our future contractual financial obligations associated with this lease by fiscal period in which payment is expected, as of March 31, 2019: 2020 2021 2022 2023 2024 2025 2026 Total Manitowoc Lease $ 394,128 $ 394,128 $ 394,128 $ 394,128 $ 394,128 $ 394,128 $ 394,128 $ 2,758,896 Additional offices are located in Scottsdale, Arizona where we lease approximately 5,000 square feet under a month-to-month triple net lease for $3,800 per month. Our Chief Executive Officer owns the building in which these offices are leased. Total lease and rent expense for the year ended March 31, 2019, for the three months ended March 31, 2018 and the year ended December 31, 2017 were $272,700, $47,400 and $199,950, respectively. In connection with the acquisition of the casing division of Jagemann Stamping Company, a promissory note was executed. The promissory note, under which $500,000 was paid on March 25, 2019 using funds raised for the acquisition, had a remaining balance at March 31, 2019 of $9,900,000. On April 30, 2019, the original due date of the note was subsequently extended to April 1, 2020. The note bears interest per annum at approximately 4.6% payable in arrears monthly until October 1, 2019 when the interest rate increases to 9% per annum payable monthly until principal and accrued interest are paid in full. In May of 2019, the Company paid $1,500,000 on the balance of the Note. As of March 31, 2019, we accrued interest of $22,196 related to the note. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 14 – INCOME TAXES As of March 31, 2019, we had net operating loss carryforwards of approximately $13,229,231, which will expire beginning at the end of 2036. A valuation allowance has been provided for the deferred tax asset as it is uncertain whether the Company will have future taxable income. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act reduces the corporate tax rate to 21% effective January 1, 2018. Consequently, we have recorded an adjustment to the deferred tax provision for the year ended December 31, 2017. Reconciliation of the benefit (expense) for income taxes with amounts determined by applying the statutory federal income rate of 21% in 2019 and 2018 and 34% in 2017: 2019 2018 2017 Net (Loss) $ (11,709,412 ) $ (1,797,228 ) $ (5,788,901 ) Benefit (expense) for income taxes computed using the statutory rate of 21% in 2019 and 2018 and 34% in 2017 2,458,977 377,418 1,968,226 Non-deductible expense (918,417 ) (161,864 ) (360,952 ) Re-measurement of deferred income taxes due to tax reform - - (632,683 ) Change in valuation allowance (1,540,560 ) (215,554 ) (974,591 ) Provision for income taxes $ - $ - $ - Significant components of the Company’s deferred tax liabilities and assets at March 31, 2019, March 31, 2018, and December 31, 2017 are as follows: 2019 2018 2017 Total deferred tax assets – net operating losses $ 2,778,139 $ 1,237,579 $ 1,022,025 Deferred tax liabilities - - - Net deferred tax assets 2,778,139 1,237,579 $ 1,022,025 Valuation allowance (2,778,139 ) $ (1,237,579 ) $ (1,022,025 ) $ - $ - $ - At March 31, 2019, net operating loss (“NOL”) carry forwards summary follows: Expiring December 31, 2036 $ 139,512 2037 4,727,276 4,866,788 Non-Expiring NOL 2018 1,026,447 2019 7,335,996 Total NOL Carryforward $ 13,229,231 The company has never had an Internal Revenue Service audit; therefore, the tax periods ended December 31, 2016 and 2017 and March 31, 2018 and 2018 are subject to audit. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | NOTE 15 – INTANGIBLE ASSETS Intangible assets consisted of the following: March 31, 2019 Life Licenses Patent Other Intangible Assets Licensing Agreement – Jesse James 5 $ 125,000 $ - $ - Licensing Agreement – Jeff Rann 5 125,000 - - Streak Visual Ammunition patent 11.2 - 950,000 - SWK patent acquisition 15 6,124,005 Jagemann Munition Components: Customer Relationships 3 - - 1,666,774 Intellectual Property 3 - - 1,773,436 Tradename 5 - - 2,472,095 250,000 7,074,005 5,912,305 Accumulated amortization – Licensing Agreements (108,333 ) - - Accumulated amortization – Patents - (134,701 ) - Accumulated amortization – Intangible Assets - - (61,803 ) $ 141,667 $ 6,939,304 $ 5,850,502 March 31, 2018 Life Licenses Patent Other Intangible Assets Licensing Agreement – Jesse James 5 $ 125,000 $ - $ - Licensing Agreement – Jeff Rann 5 125,000 - - Streak Visual Ammunition Patent 11.2 - 950,000 - 250,000 950,000 - Accumulated amortization – Licensing Agreements (58,333 ) - - Accumulated amortization – Patents - (49,627 ) - $ 191,667 $ 900,373 $ - December 31, 2017 Life Licenses Patent Other Intangible Assets Licensing Agreement – Jesse James 5 $ 125,000 $ - $ - Licensing Agreement – Jeff Rann 5 125,000 - - Streak Visual Ammunition Patent 11.2 - 950,000 - 250,000 950,000 - Accumulated amortization – Licensing Agreements (45,833 ) - - Accumulated amortization – Patents - (25,166 ) - $ 204,167 $ 924,834 $ - Amortization expense for the year ended March 31, 2019, for the three-month period ended March 31, 2018, and for the year ended December 31, 2017 was $196,877, $36,961, and $70,999, respectively. |
Subsequent Events
Subsequent Events | 3 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Mar. 31, 2019 | |
Subsequent Events [Abstract] | ||
Subsequent Events | NOTE 9 - SUBSEQUENT EVENTS As of August 13, 2019, the Company received approximately $1.2 million in financing from FSW Funding as a result of recently implemented accounts receivable financing. As of August 13, 2019, we sold an additional 47,500 shares of common stock for $95,000 and issued 23,750 common stock purchase warrants exercisable at $2.40. We accrued commissions of $11,400 and 5,700 warrants payable in connection with the sale of these shares to the placement agent. | NOTE 16 - SUBSEQUENT EVENTS On April 30, 2019, the original due date of the Promissory Note in connection with the acquisition of the casing operations of Jagemann Stamping Company was subsequently extended to April 1, 2020. The note bears interest per annum at approximately 4.6% payable in arrears monthly until October 1, 2019 when the interest rate increases to 9% per annum payable monthly until principal and accrued interest are paid in full. In May of 2019, the Company paid $1,500,000 on the balance of the Note. On May 2, 2019, the Company sold its online store “www.ammodeal.com” to AZ Virtual CFO, LLC. The assets sold include, but are not limited to, the website, all permits and registrations, and the books and records of the website. The purchase price was $50,000 and is to be paid in monthly installments of three percent of the gross revenue arising out of operation of the asset and shall be paid in full by December 1, 2021. AZ Virtual CFO, LLC is owned by Ron Shostack, former Officer and current independent contractor of the Company. On May 3, 2019, the Company entered into a promissory note of $375,000 with a shareholder of the Company. The note bears interest at a per annum of 2.56%. The note has a maturity date of August 3, 2019. On June 5, 2019, the Company entered into an agreement with FSW Funding for an Accounts Receivable Credit Facility. The twenty-four month facility is up to a maximum of $5,000,000 on 85% of eligible accounts and has an annualized interest rate of the Prime Rate published from time to time by the Wall Street Journal plus 4.5%. A fee of 3% of the Maximum Facility will be assessed to the Company. On June 5, 2019, the remaining $300,000 of Convertible Promissory Notes were mandatorily converted into shares of our common stock pursuant to the terms of the Note. The Company converted $300,000 of Convertible Promissory Notes and $18,228 of accrued interest into 127,291 shares of Common Stock at a conversion price of $2.50. The Company accrued $9,000 for a 3% cash conversion fee on the principal converted payable to the placement agent, Paulson Investment Company. As of June 28, 2019, we sold an additional 898,550 shares of common stock for $1,797,100 and issued 449,275 common stock purchase warrants exercisable at $2.40. We accrued commissions of $215,652 and 107,826 warrants payable in connection with the sale of these shares to the placement agent. We issued 63,492 shares of Common Stock for services provided to the Company valued at $209,346. We evaluated subsequent events through the date the financial statements were issued, and determined that there are not any other items to disclose. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Mar. 31, 2019 | |
Accounting Policies [Abstract] | ||
Accounting Basis | Accounting Basis The accompanying unaudited consolidated financial statements and related disclosures included in this Quarterly Report on Form 10-Q have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and reflect all adjustments, which consist solely of normal recurring adjustments, needed to fairly present the financial results for these periods. Additionally, these consolidated financial statements and related disclosures are presented pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”). The accompanying consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related disclosures contained in the Company’s Annual Report filed with the SEC on Form 10-K for the year ended March 31, 2019. The results for the three month period June 30, 2019 are not necessarily indicative of the results that may be expected for the entire fiscal year. Accordingly, certain information and note disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to the rules and regulations of the SEC. In the opinion of management, all adjustments have been made, which consist only of normal recurring adjustments necessary for a fair statement of (a) the results of operations for the month periods ended June 30, 2019 and 2018, (b) the financial position at June 30, 2019, and (c) cash flows for the three month periods ended June 30, 2019 and 2018. We use the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP”) and all amounts are expressed in U.S. dollars. The Company has a fiscal year-end of March 31 st Unless the context otherwise requires, all references to “Ammo”, “we”, “us”, “our,” or the “Company” are to AMMO, Inc., a Delaware corporation. | Accounting Basis We use the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP”) and all amounts are expressed in U.S. dollars. The Company has a fiscal year-end of March 31 st The financial statements and related disclosures as of March 31, 2019, March 31, 2018, and December 31, 2017 are presented pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Unless the context otherwise requires, all references to “AMMO”, “we”, “us”, “our,” or the “Company” are to AMMO, Inc., a Delaware corporation |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of AMMO, Inc. and its wholly owned subsidiaries, Enlight Group II, LLC (d/b/a Jagemann Munition Components), SNI, LLC, AMMO Munitions, Inc. and AMMO Technologies, Inc. (inactive). All significant intercompany accounts and transactions are eliminated in consolidation | Principles of Consolidation The consolidated financial statements include the accounts of AMMO, Inc. and its wholly owned subsidiaries, Enlight Group II, LLC (d/b/a Jagemann Munition Components), SNI, LLC, AMMO Munitions, Inc. and AMMO Technologies, Inc. (inactive). All significant intercompany accounts and transactions are eliminated in consolidation |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the balance sheet and reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the balance sheet and reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the statement of cash flows, we consider highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents. | Cash and Cash Equivalents For purposes of the statement of cash flows, we consider highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Our accounts receivable represents amounts due from customers for products sold and include an allowance for uncollectible accounts which is estimated based on the aging of the accounts receivable and specific identification of uncollectible accounts. At June 30, 2019 and March 31, 2019, we reserved $25,751 and $129,635, respectively, of allowance for doubtful accounts. | Accounts Receivable and Allowance for Doubtful Accounts Our accounts receivable represent amounts due from customers for products sold and include an allowance for uncollectible accounts which is estimated based on the aging of the accounts receivable and specific identification of uncollectible accounts. At March 31, 2019, March 31, 2018 and December 31, 2017, we reserved $129,365, $23,046, and $26,046, respectively, of allowance for doubtful accounts. |
License Agreements | License Agreements We are a party to a license agreement with Jesse James, a well-known motorcycle designer, and Jesse James Firearms, LLC, a Texas limited liability company, or JJF. The license agreement grants us the exclusive worldwide rights through October 15, 2021 to Mr. James’ image rights and trademarks associated with him in connection with the marketing, promotion, advertising, sale, and commercial exploitation of Jesse James Branded Products. In addition, Mr. James agreed to make himself available for certain promotional activities and to promote Jesse James Branded Products through his own social media outlets. We agreed to pay Mr. James royalty fees on the sale of ammunition and non-ammunition Branded Products and to reimburse him for any out-of-pocket expenses and reasonable travel expenses. We also issued 100,000 shares of our common stock upon the execution of the license agreement with the potential issuance of up to 75,000 additional shares of common stock upon achieving certain gross sales with $15 million in gross sales required to earn the entire 75,000 shares. We are a party to a license agreement with Jeff Rann, a well-known wild game hunter and spokesman for the firearm and ammunition industries. The license agreement grants us through February 2022 the exclusive worldwide rights to Mr. Rann’s image rights and trademarks associated with him in connection with the marketing, promotion, advertising, sale, and commercial exploitation of all Jeff Rann Branded Products. Mr. Rann agreed to make himself available for certain promotional activities and to promote the Branded Products through his own social media outlets. We agreed to pay Mr. Rann royalty fees on the sale of ammunition and non-ammunition Branded Products and to reimburse him for any out-of-pocket expenses and reasonable travel expenses. We also issued 100,000 shares of our common stock upon the execution of the license agreement with the potential issuance of 75,000 additional shares of common stock upon achieving certain gross sales with $15 million in gross sales required to earn the entire 75,000 shares. Amortization expense for the license agreements for the three months ended June 30, 2019 and 2018 were $12,500 and $12,500, respectively. | License Agreements We are a party to a license agreement with Jesse James, a well-known motorcycle designer, and Jesse James Firearms, LLC, a Texas limited liability company, or JJF. The license agreement grants us the exclusive worldwide rights through October 15, 2021 to Mr. James’ image rights and trademarks associated with him in connection with the marketing, promotion, advertising, sale, and commercial exploitation of Jesse James Branded Products. In addition, Mr. James agreed to make himself available for certain promotional activities and to promote Jesse James Branded Products through his own social media outlets. We agreed to pay Mr. James royalty fees on the sale of ammunition and non-ammunition Branded Products and to reimburse him for any out-of-pocket expenses and reasonable travel expenses. We also issued 100,000 shares of our common stock upon the execution of the license agreement with the potential issuance of up to 75,000 additional shares of common stock upon achieving certain gross sales with $15 million in gross sales required to earn the entire 75,000 shares. We are a party to a license agreement with Jeff Rann, a well-known wild game hunter and spokesman for the firearm and ammunition industries. The license agreement grants us through February 2022 the exclusive worldwide rights to Mr. Rann’s image rights and trademarks associated with him in connection with the marketing, promotion, advertising, sale, and commercial exploitation of all Jeff Rann Branded Products. Mr. Rann agreed to make himself available for certain promotional activities and to promote the Branded Products through his own social media outlets. We agreed to pay Mr. Rann royalty fees on the sale of ammunition and non-ammunition Branded Products and to reimburse him for any out-of-pocket expenses and reasonable travel expenses. We also issued 100,000 shares of our common stock upon the execution of the license agreement with the potential issuance of 75,000 additional shares of common stock upon achieving certain gross sales with $15 million in gross sales required to earn the entire 75,000 shares. Amortization expense for the license agreements for the year ended March 31, 2019, the three months ended March 31, 2018, and the year ended December 31, 2017 were $50,000, $12,500, and $45,833, respectively. |
Patents | Patents On September 28, 2017, AMMO Technologies Inc. (“ATI”), an Arizona corporation, which is 100% owned by us, merged with Hallam, Inc, a Texas corporation, with ATI being the survivor. Under the terms of the Merger, we issued to Hallam, Inc.’s two shareholders, 600,000 shares of our common stock, subject to restrictions, and payment of $200,000. The first payment of $100,000 to the Hallam, Inc. shareholders was paid on September 13, 2017, and the second payment of $100,000 was paid on February 6, 2018. The shares were valued at $1.25 and the aggregate value of $950,000 was recorded as a patent asset. This asset will be amortized from September 2017, the first full month of the acquired rights, through October 29, 2028. Patent amortization expense for the three months ended June 30, 2019 and 2018 were $21,269 and $21,269, respectively. Under the terms of the Merger, ATI succeeded to all of the assets of Hallam, Inc. and assumed the liabilities of Hallam, Inc., which were none. The primary asset of Hallam, Inc. was an exclusive license to produce projectiles and ammunition using the Hybrid Luminescence Ammunition Technology under patent U.S. 8,402,896 B1 with a publication date of March 26, 2013 owned by University of Louisiana at Lafayette. The license was formally amended and assigned to AMMO Technologies Inc. pursuant to an Assignment and First Amendment to Exclusive License Agreement. Assumption Agreement dated to be effective as of August 22, 2017, the Merger closing date. Under the terms of the Exclusive License Agreement, the Company is obligated to pay a royalty to the patent holder, based on a $0.01 per unit basis for each round of ammunition sold that incorporates this patented technology through October 29, 2028. For the three months ended June 30, 2019 and 2018, the Company accrued $2,558 and $7,147 respectively under this agreement. In August 2018, we applied for additional patent coverage for the manufacturing methods or application of the Hybrid Luminescence Ammunition Technology on a variety of projectile and ammunition types. The costs of filing this patent were expensed, but may be recapitalized pending the outcome of the USPTO’s review of the application. On October 5, 2018, we completed the acquisition of SW Kenetics Inc. ATI succeeded all of the assets of SW Kenetics, Inc. and assumed all of the liabilities. Under the terms of the agreement, we issued to SW Kenetics Inc.’s three shareholders, 1,700,002 restricted shares of our common stock, payment of $250,000, and a payment obligation of $1,250,000 subject to completion of specific milestones that we have recorded as Contingent Consideration Payable. Additionally, the 1,700,002 shares of common stock were issued with claw back provisions to ensure agreed upon objectives are met. The Company has made two payments of $50,000 for the completion of specific milestones to the shareholders of SW Kenetics, Inc. The primary asset of SW Kenetics Inc. was a pending patent for modular projectiles. All rights to patent pending application were assigned and transferred to AMMO Technologies, Inc. pursuant to Intellectual Property Rights Agreement on September 27, 2018. Patent amortization expense for the three months ended June 30, 2019 was $35,119. There was no amortization expense for the patent in the three months ended June 30, 2018 as the acquisition was not yet consummated. We intend to continue building our patent portfolio to protect our proprietary technologies and processes, and will file new applications where appropriate to preserve our rights to manufacture and sell our branded lines of ammunition. | Patent In September 28, 2017, AMMO Technologies Inc. (“ATI”), an Arizona corporation, which is 100% owned by us, merged with Hallam, Inc, a Texas corporation, with ATI being the survivor. Under the terms of the Merger, we issued to Hallam, Inc.’s two shareholders, 600,000 shares of our common stock, subject to restrictions, and payment of $200,000. The first payment of $100,000 to the Hallam, Inc. shareholders was paid on September 13, 2017, and the second payment of $100,000 was paid on February 6, 2018. The shares were valued at $1.25 and the aggregate value of $950,000 was recorded as a patent asset. This asset will be amortized from September 2017, the first full month of the acquired rights, through October 29, 2028. Patent amortization expense for the year ended March 31, 2019, the three months ended March 31, 2018, and the year ended December 31, 2017 were $85,074, $24,461, and $25,166. Under the terms of the Merger, ATI succeeded to all of the assets of Hallam, Inc. and assumed the liabilities of Hallam, Inc., which were none. The primary asset of Hallam, Inc. was an exclusive license to produce projectiles and ammunition using the Hybrid Luminescence Ammunition Technology under patent U.S. 8,402,896 B1 with a publication date of March 26, 2013 owned by University of Louisiana at Lafayette. The license was formally amended and assigned to AMMO Technologies Inc. pursuant to an Assignment and First Amendment to Exclusive License Agreement. Assumption Agreement dated to be effective as of August 22, 2017, the Merger closing date. Under the terms of the Exclusive License Agreement, the Company is obligated to pay a royalty to the patent holder, based on a $0.01 per unit basis for each round of ammunition sold that incorporates this patented technology through October 29, 2028. For year ended March 31, 2019, the three months ended March 31, 2018 and the year ended December 31, 2019, the Company accrued $33,920, $10,783, and $6,000 respectively under this agreement. In August 2018, we applied for additional patent coverage for the manufacturing methods or application of the Hybrid Luminescence Ammunition Technology on a variety of projectile and ammunition types. The costs of filing this patent were expensed, but may be recapitalized pending the outcome of the USPTO’s review of the application. On October 5, 2018, we completed the acquisition of SW Kenetics Inc. on (See Note 7). Under the terms of the Merger, ATI succeeded all of the assets of SW Kenetics, Inc. and assumed all of the liabilities. The primary asset of SW Kenetics Inc. was a pending patent for modular projectiles. All rights to patent pending application were assigned and transferred to AMMO Technologies, Inc. pursuant to Intellectual Property Rights Agreement on September 27, 2018. We intend to continue building our patent portfolio to protect our proprietary technologies and processes, and will file new applications where appropriate to preserve our rights to manufacture and sell our branded lines of ammunition. |
Other Intangible Assets | Other Intangible Assets On March 15, 2019, Enlight Group II, LLC d/b/a Jagemann Munition Components, a wholly owned subsidiary of AMMO, Inc., completed its acquisition of assets of Jagemann Stamping Company’s ammunition casing manufacturing and sales operations pursuant to the terms of the Amended and Restated Asset Purchase Agreement (See Note 10). The intangible assets acquired include a tradename, customer relationships, and intellectual property. For the three months ended June 30, 2019, amortization of the other intangibles assets was $416,869. | Other Intangible Assets On March 15, 2019, Enlight Group II, LLC d/b/a Jagemann Munition Components, a wholly owned subsidiary of AMMO, Inc., completed its acquisition of selected assets of Jagemann Stamping Company’s ammunition casing manufacturing and sales operations pursuant to the terms of the Amended and Restated Asset Purchase Agreement (See Note 10). The intangible assets acquired include a tradename, customer relationships, and intellectual property. For the year ended March 31, 2019, amortization of the other intangibles assets was $61,803. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We continually monitor events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, we assess the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, we recognize an impairment loss based on the excess of the carrying amount over the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell. No impairment expense was recognized for the three months ended June 30, 2019 and 2018. | Impairment of Long-Lived Assets We continually monitor events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, we assess the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, we recognize an impairment loss based on the excess of the carrying amount over the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell. No impairment expense was recognized for the year ended March 31, 2019, the three month period ended March 31, 2018 or the year ended December 31, 2017. |
Revenue Recognition | Revenue Recognition We generate revenue from the production and sale of ammunition. We recognize revenue according to ASC 606. When the customer obtains control over the promised goods or services, we record revenue in the amount of consideration that we can expect to receive in exchange for those goods and services. The Company applies the following five-step model to determine revenue recognition: ● Identification of a contract with a customer ● Identification of the performance obligations in the contact ● determination of the transaction price ● allocation of the transaction price to the separate performance allocation ● recognition of revenue when performance obligations are satisfied The Company only applies the five-step model when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception and once the contract is determined to be within the scope of ASC 606, we assess the goods or services promised within each contract and determines those that are performance obligations, and assesses whether each promised good or service is distinct. Our contracts contain a single performance obligation and the entire transaction price is allocated to the single performance obligation. We recognize as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Accordingly, we recognize revenues (net) when the customer obtains control of the Company’s product, which typically occurs upon shipment of the product. For the three months ended June 30, 2019 and 2018, the Company’s customers that comprised more than ten percent (10%) of total revenues and accounts receivable were as follows: PERCENTAGES Revenues Accounts Receivable For the Three-Months ended June 30, 2019 Customers: A 25.9 % 34.6 % B 10.5 % - C - - 36.4 % 34.6 % For the Three-Months ended June 30, 2018 Customers: A - - B 62.4 % 13.0 % C - 53.9 % 62.4 % 66.9 % | Revenue Recognition We generate revenue from the production and sale of ammunition. We recognize revenue according to ASC 606. When the customer obtains control over the promised goods or services, we record revenue in the amount of consideration that we can expect to receive in exchange for those goods and services. The Company applies the following five-step model to determine revenue recognition: ● identification of a contract with a customer ● identification of the performance obligations in the contact ● determination of the transaction price ● allocation of the transaction price to the separate performance allocation ● recognition of revenue when performance obligations are satisfied The Company only applies the five-step model when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception and once the contract is determined to be within the scope of ASC 606, we assess the goods or services promised within each contract and determines those that are performance obligations, and assesses whether each promised good or service is distinct. Our contracts contain a single performance obligation and the entire transaction price is allocated to the single performance obligation. We recognize as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Accordingly, we recognize revenues (net) when the customer obtains control of the Company’s product, which typically occurs upon shipment of the product. For the year ended March 31, 2019, and the three months ended March 31, 2018 the Company’s customers that comprised more than ten percent (10%) of total revenues and accounts receivable were as follows: For the Year Ended For the Three Months Ended For the Year Ended PERCENTAGES Revenues Accounts Receivable Revenues Accounts Receivable Revenues Accounts Receivable Customers: A 24.6 % 29.4 % - - - - B 19.1 % - - - - - C 10.0 % - 35.5 % 54.6 % 57.8 % 27.4 % D - 19.0 % - - - - E - - 17.1 % 12.6 % - - F - - 15.1 % - - - G - - - - - 20.4 % H - - - - - 12.7 % 53.7 % 48.4 % 67.7 % 67.2 % 57.8 % 60.5 % |
Advertising Costs | Advertising Costs We expense advertising costs as they are incurred. We incurred advertising of $94,213 and $146,615 for the three months ended June 30, 2019 and 2018, respectively. | Advertising Costs We expense advertising costs as they are incurred. We incurred advertising and marketing costs of $554,266 $245,472 and $220,154 for the year ended March 31, 2019, for the three months ended March 31, 2018 and for the year ended December 31, 2017, respectively. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments We measure options and warrants at fair value in accordance with Accounting Standards Codification 820 – Fair Value Measurement (“ASC 820”). The objective of ASC 820 is to increase consistency and comparability in fair value measurements and to expand disclosures about fair value measurements. ASC 820 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. ASC 820 specifies a valuation hierarchy based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s own assumptions. These two types of inputs have created the following fair value hierarchy: Level 1 – Quoted prices for identical instruments in active markets; Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. This hierarchy requires us to minimize the use of unobservable inputs and to use observable market data, if available, when estimating fair value. We value all common stock issued for services on the date of the agreements, using the price at which shares were being sold to private investors or at the value of the services performed. We valued warrants issued for the reduction in conversion price for the conversion of Convertible Promissory Notes at the grant date of March 31, 2019 using valuation methods and assumptions that consider, among other factors, the fair value of the underlying stock, risk free interest rate, volatility, and expected life. March 31, 2019 March 31, 2018 December 31, 2017 Risk free interest rate 2.39 % 2.05 % 1.31 - 1.5 % Expected volatility 45 % 195 % 250 % Expected term 2.5 years 1 year 1 - 1.5 years Expected dividend yield 0 % 0 % 0 % Equipment acquired in the March 15, 2019 acquisition of the Jagemann Casings was valued at fair value on the acquisition date by a third party valuation firm. We valued warrants issued for services at the grant date of March 12, 2018 using valuation methods and assumptions that consider, among other factors, the fair value of the underlying stock, risk free interest rate, volatility, and expected life. In the year ended December 31, 2017, Equipment acquired in the foreclosure transaction and the patent were valued on their respective acquisition dates using fair values. Quoted Active Significant Significant Total (Level 1) (Level 2) (Level 3) March 31, 2019 Employee stock awards $ - $ 1,172,974 $ - $ 1,172,974 Executive stock grant expense - 703,030 - 703,030 SWK patent acquisition - - 4,624,005 4,624,005 Jagemann Munition Components acquired intangible assets - - 5,912,305 5,912,305 Stock and warrants issued for convertible promissory notes - 358,800 - 358,800 March 31, 2018 Employee stock awards $ - $ 482,432 $ - $ 482,432 Executive stock grant expense - 106,563 - 106,563 Warrants issued for services - - 125,000 125,000 December 31, 2017 Common stock issued for legal, advisory and consulting fees $ - $ 454,625 $ - $ 454,625 Employee stock awards - 160,000 - 160,000 Common stock for licensing agreement - 125,000 - 125,000 Patent acquisition, noncash element - - 750,000 750,000 Warrants issued for interest - - 46,188 46,188 Warrants issued for services - - 67,000 67,000 Assets acquired in foreclosure - - 543,115 543,115 Common Stock issued for prepaid legal fees - 224,000 - 224,000 | |
Inventories | Inventories We state inventories at the lower of cost or market. We determine cost using the average cost method. Our inventory consists of raw materials, work in progress, and finished goods. Cost of inventory includes cost of parts, labor, quality control, and all other costs incurred to bring our inventories to condition ready to be sold. We periodically evaluate and adjust inventories for obsolescence. | Inventories We state inventories at the lower of cost or market. We determine cost using the average cost method. Our inventory consists of raw materials, work in progress, and finished goods. Cost of inventory includes cost of parts, labor, quality control, and all other costs incurred to bring our inventories to condition ready to be sold. We periodically evaluate inventories for obsolescence. |
Property and Equipment | Property and Equipment We state property and equipment at cost, less accumulated depreciation. We capitalize major renewals and improvements, while we charge minor replacements, maintenance, and repairs to current operations. We compute depreciation by applying the straight-line method over estimated useful lives, which are generally five to seven years. | Property and Equipment We state property and equipment at cost, less accumulated depreciation. We capitalize major renewals and improvements, while we charge minor replacements, maintenance, and repairs to current operations. We compute depreciation by applying the straight-line method over estimated useful lives, which are generally five to ten years. |
Compensated Absences | Compensated Absences We accrue a liability for compensated absences in accordance with Accounting Standards Codifications 710 – Compensation – General. | Compensated Absences We accrue a liability for compensated absences in accordance with Accounting Standards Codifications 710 – Compensation – General. |
Stock-Based Compensation | Stock-Based Compensation We account for stock-based compensation at fair value in accordance with SFAS No. 123 and 123 (R) (ASC 718). There were 167,500 shares of common stock issued to employees, members of the Board of Directors, and members of the Advisory Committee for services during the three months ended June 30, 2019. On May 1, 2018, we entered into an employment agreement with Robert D. Wiley, Chief Financial Officer, that included, among other provisions, an equity grant of 100,000 shares of restricted common stock that vests at the rate of 33,333 shares annually for three years. The $250,000 compensation value is being recognized on a straight-line basis over the three-year period covered by the agreement. From September 2018 through March 2019, we entered into seven separate employment agreements that included in total, among other provisions, equity grants of 535,000 shares of restricted common stock that vests annually over the next four years. The total compensation value of $1,376,000 is being recognized on a straight-line basis over the periods covered by each agreement, up to four years. | Stock-Based Compensation We account for stock-based compensation at fair value in accordance with SFAS No. 123 and 123 (R) (ASC 718). There were 702,500 shares of common stock issued to employees, members of the Board of Directors, and members of the Advisory Committee for services during the year ended March 31, 2019. On March 12, 2018, we entered into an employment agreement with an executive that included, among other provisions, an equity grant of 400,000 shares of restricted common stock that vests at the rate of 100,000 shares annually for four years. The $660,000 compensation value is being recognized ratably on a straight-line basis over the four-year period covered by the agreement. On May 1, 2018, we entered into an employment agreement with Robert D. Wiley, Chief Financial Officer, that included, among other provisions, an equity grant of 100,000 shares of restricted common stock that vests at the rate of 33,333 shares annually for three years. The $250,000 compensation value is being recognized on a straight-line basis over the three-year period covered by the agreement. From September 2018 through March 2019, we entered into seven separate employment agreements that included in total, among other provisions, equity grants of 535,000 shares of restricted common stock that vests annually over the next four years. The total compensation value of $1,376,000 is being recognized on a straight-line basis over the periods covered by each agreement, up to four years. |
Concentrations of Credit Risk | Concentrations of Credit Risk Accounts at banks are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. As of June 30, 2019, our bank account balances exceeded federally insured limits. | Concentrations of Credit Risk Accounts at banks are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 at various times. As of March 31, 2019, our bank account balances exceeded federally insured limits. |
Income Taxes | Income Taxes We file federal and state income tax returns in accordance with the applicable rules of each jurisdiction. We account for income taxes under the asset and liability method in accordance with Accounting Standards Codification 740 - Income Taxes (“ASC 740”). The provision for income taxes includes federal, state, and local income taxes currently payable, and deferred taxes. We recognize deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. We measure deferred tax assets and liabilities using enacted tax rates expected to apply to taxable amounts in years in which those temporary differences are expected to be recovered or settled. If it is more likely than not that some portion or all of a deferred tax asset will not be realized, a valuation allowance is recognized. In accordance with ASC 740, we recognize the effect of income tax positions only if those positions are more likely than not of being sustained. We measure recognized income tax positions at the largest amount that is greater than 50% likely of being realized. We reflect changes in recognition or measurement in the period in which the change in judgment occurs. We currently have substantial net operating loss carryforwards. We have recorded a valuation allowance equal to the net deferred tax assets due to the uncertainty of the ultimate realization of the deferred tax assets. | Income Taxes We file federal and state income tax returns in accordance with the applicable rules of each jurisdiction. We account for income taxes under the asset and liability method in accordance with Accounting Standards Codification 740 - Income Taxes (“ASC 740”). The provision for income taxes includes federal, state, and local income taxes currently payable, and deferred taxes. We recognize deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. We measure deferred tax assets and liabilities using enacted tax rates expected to apply to taxable amounts in years in which those temporary differences are expected to be recovered or settled. If it is more likely than not that some portion or all of a deferred tax asset will not be realized, a valuation allowance is recognized. In accordance with ASC 740, we recognize the effect of income tax positions only if those positions are more likely than not of being sustained. We measure recognized income tax positions at the largest amount that is greater than 50% likely of being realized. We reflect changes in recognition or measurement in the period in which the change in judgment occurs. We currently have substantial net operating loss carryforwards. We have recorded a valuation allowance equal to the net deferred tax assets due to the uncertainty of the ultimate realization of the deferred tax assets. |
Contingencies | Contingencies Certain conditions may exist as of the date the consolidated financial statements are issued that may result in a loss to us but will only be resolved when one or more future events occur or fail to occur. We assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against us or unasserted claims that may result in such proceedings, we evaluate the perceived merits of any legal proceedings or unasserted claims and the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability is reasonably estimated, the estimated liability would be accrued in our consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of range of possible loss if determinable and material, would be disclosed. On June 6, 2019, an employee requested to mediate an assertion that they were constructively discharged as an employee, while also asserting other alleged governance and employment deficiencies. If the matter is not otherwise resolved, the employee may initiate litigation against the Company, which the Company would aggressively defend. There were no other known contingencies at June 30, 2019. | Contingencies Certain conditions may exist as of the date the consolidated financial statements are issued that may result in a loss to us but will only be resolved when one or more future events occur or fail to occur. We assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against us or unasserted claims that may result in such proceedings, we evaluate the perceived merits of any legal proceedings or unasserted claims and the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is possible that a material loss has been incurred and the amount of the liability can be estimated, the estimated liability would be accrued in our consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of range of possible loss if determinable and material, would be disclosed. There were no known contingencies at March 31, 2019, March 31, 2018 or December 31, 2017. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, FASB issued ASU 2014-09, “Revenue from Contracts with Customers”. This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The revised effective date for this ASU is for annual and interim periods beginning on or after December 15, 2017, and early adoption will be permitted, but not earlier than the original effective date of annual and interim periods beginning on or after December 15, 2016, for public entities. We adopted ASU 2014-09 as of January 1, 2018, and it did not have a material impact on the Company’s consolidated results of operations, financial position or cash flows for the period ended June 30, 2019. Sales are initiated in three ways – ● third party sales representative obtains signed purchase order from a customer ● direct contact by in-house sales representatives who obtains signed purchase order ● electronic purchase order from a customer (usually the very large customers) Once a customer’s order is received a sales order is generated by authorized sales or management personnel. Once approved for shipping, the sales order is entered, the inventory control department will pull the purchased items from the inventory or if needed will request the manufacture of a specific product. When the items that were ordered are available for shipment, the merchandise is prepared for shipping and shipped by FedEx or common carrier. All sales are recorded upon shipment and, depending on credit worthiness of customer, the payment terms will vary from thirty (30) to sixty (60) days. No refunds are allowed on any product shipped. Each product manufactured by the Company has standard specifications and performance objectives. The Company has an extensive product testing program and, if the Company were given notice of a product defect by a customer, the Company would request the return of the product so that the manufacturing defect could be identified. From inception to March 31, 2019, the Company has had no returned products related to product warranty. The revenue recognition procedures set forth above have been used by the Company since its inception and are consistent with requirements of ASC 606 “Revenue from Contracts with Customers”. In February 2016, the FASB issued ASU 2016-02 – “Leases (Topic 842)” Under ASU 2016-02, entities will be required to recognize lease asset and lease liabilities by lessees for those leases classified as operating leases. Among other changes in accounting for leases, a lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to (and a lessor) should include payments to be made in optional periods only if the lessee is reasonably certain to exercise an option to extend the lease or not to exercise an option to terminate the lease. Similarly, optional payments to purchase the underlying asset should be included in the measurement of lease assets and lease liabilities only if the lessee is reasonably certain to exercise that purchase option. The amendments in ASU 2016-02 will become effective for fiscal years beginning after December 15, 2018, including interim periods with those fiscal years for public business entities. We adopted Topic 842 as of April 1, 2019. On June 20, 2018, the FASB expanded the scope of Accounting Standards Codification (ASC) 718, Compensation – Stock Compensation, to include share-based payments to nonemployees for goods and services. The accounting board said the amendments in Accounting Standards Update (ASU) No. 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, align the guidance for stock compensation to employees and nonemployees. The amended guidance replaces ASC 505-50, Equity – Equity-Based Payments to Non-Employees. We anticipate that this ASC will not have a material effect on the Company’s financial statements. The amendments in ASU No. 2018-07 apply “to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards,” the FASB said. But the amended guidance does not cover stock compensation that is used to provide financing to the company that issued the shares or stock awards tied to a sale of goods or services as part of a contract accounted for according to ASC 606, Revenue From Contracts With Customers. The amendments are effective for public companies for fiscal years that begin after December 15, 2018, and the quarterly and other interim periods in those years, the FASB said the amended guidance can be applied before it becomes effective, but businesses are not permitted to use the guidance in ASU No. 2018-07 before they have implemented ASC 606. We have evaluated the effect of the adoption of ASU 2018-07 will have on our consolidated results of operations, financial position or cash flows and determine the effects will not be material to the Company’s financial statements. Management does not believe that any other recently issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting pronouncements are issued, we will adopt those that are applicable under the circumstances. | Recent Accounting Pronouncements In May 2014, FASB issued ASU 2014-09, “Revenue from Contracts with Customers”. This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The revised effective date for this ASU is for annual and interim periods beginning on or after December 15, 2017, and early adoption will be permitted, but not earlier than the original effective date of annual and interim periods beginning on or after December 15, 2016, for public entities. We adopted ASU 2014-09 as of January 1, 2018, and it did not have a material impact on the Company’s consolidated results of operations, financial position or cash flows for the year ended March 31, 2019 and the three months ended March 31, 3018. Sales are initiated in three ways – ● third party sales representative obtains signed purchase order from a customer ● direct contact by in-house sales representatives who obtains signed purchase order ● electronic purchase order from a customer (usually the very large customers) Once a customer’s order is received a sales order is generated by authorized sales or management personnel. Once approved for shipping, the sales order is entered, the inventory control department will pull the purchased items from the inventory or if needed will request the manufacture of a specific product. When the items that were ordered are available for shipment, the merchandise is prepared for shipping and shipped by FedEx or common carrier. All sales are recorded upon shipment and, depending on credit worthiness of customer, the payment terms will vary from thirty (30) to sixty (60) days. No refunds are allowed on any product shipped. Each product manufactured by the Company has standard specifications and performance objectives. The Company has an extensive product testing program and, if the Company were given notice of a product defect by a customer, the Company would request the return of the product so that the manufacturing defect could be identified. From inception to March 31, 2019, the Company has had no returned products related to product warranty. The revenue recognition procedures set forth above have been used by the Company since its inception and are consistent with requirements of ASC 606 “Revenue from Contracts with Customers”. In February 2016, the FASB issued ASU 2016-02 – “Leases (Topic 842)” Under ASU 2016-02, entities will be required to recognize lease asset and lease liabilities by lessees for those leases classified as operating leases. Among other changes in accounting for leases, a lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to (and a lessor) should include payments to be made in optional periods only if the lessee is reasonably certain to exercise an option to extend the lease or not to exercise an option to terminate the lease. Similarly, optional payments to purchase the underlying asset should be included in the measurement of lease assets and lease liabilities only if the lessee is reasonably certain to exercise that purchase option. The amendments in ASU 2016-02 will become effective for fiscal years beginning after December 15, 2018, including interim periods with those fiscal years for public business entities. We are currently evaluating the effect of the adoption of ASU 2016-02 will have on our consolidated results of operations, financial position or cash flows. On June 20, 2018, the FASB expanded the scope of Accounting Standards Codification (ASC) 718, Compensation – Stock Compensation, to include share-based payments to nonemployees for goods and services. The accounting board said the amendments in Accounting Standards Update (ASU) No. 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, align the guidance for stock compensation to employees and nonemployees. The amended guidance replaces ASC 505-50, Equity – Equity-Based Payments to Non-Employees. We anticipate that this ASC will not have a material effect on the Company’s financial statements. The amendments in ASU No. 2018-07 apply “to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards,” the FASB said. But the amended guidance does not cover stock compensation that is used to provide financing to the company that issued the shares or stock awards tied to a sale of goods or services as part of a contract accounted for according to ASC 606, Revenue From Contracts With Customers. The amendments are effective for public companies for fiscal years that begin after December 15, 2018, and the quarterly and other interim periods in those years, the FASB said the amended guidance can be applied before it becomes effective, but businesses are not permitted to use the guidance in ASU No. 2018-07 before they have implemented ASC 606. We have evaluated the effect of the adoption of ASU 2018-07 will have on our consolidated results of operations, financial position or cash flows and determine the effects will not be material to the Company’s financial statements. Management does not believe that any other recently issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting pronouncements are issued, we will adopt those that are applicable under the circumstances. |
Loss Per Common Share | Loss Per Common Share We calculate basic loss per share using the weighted-average number of shares of common stock outstanding during each reporting period. Diluted loss per share includes potentially dilutive securities, such as outstanding options and warrants, using various methods, such as the treasury stock or modified treasury stock method, in the determination of dilutive shares outstanding during each reporting period. We have issued warrants to purchase 8,646,216 shares of common stock. All weighted average numbers were adjusted for the reverse stock split and merger transaction. Due to the loss from operations in the three months ended June 30, 2019 and 2018, there are no common shares added to calculate the dilutive EPS for those periods as the effect would be antidilutive. | Loss Per Common Share We calculate basic loss per share using the weighted-average number of shares of common stock outstanding during each reporting period. Diluted loss per share includes potentially dilutive securities, such as outstanding options and warrants, using various methods, such as the treasury stock or modified treasury stock method, in the determination of dilutive shares outstanding during each reporting period. We have issued warrants to purchase 8,143,115 shares of common stock that are potentially dilutive. All weighted average numbers were adjusted for the reverse stock split and merger transaction. Due to the loss from operations in the year ended March 31, 2019, the three month period ended March 31, 2018, and the year ended December 31, 2017, there are no common shares added to calculate the dilutive EPS for those periods as the effect would be antidilutive. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Mar. 31, 2019 | |
Accounting Policies [Abstract] | ||
Schedule of Concentration | For the three months ended June 30, 2019 and 2018, the Company’s customers that comprised more than ten percent (10%) of total revenues and accounts receivable were as follows: PERCENTAGES Revenues Accounts Receivable For the Three-Months ended June 30, 2019 Customers: A 25.9 % 34.6 % B 10.5 % - C - - 36.4 % 34.6 % For the Three-Months ended June 30, 2018 Customers: A - - B 62.4 % 13.0 % C - 53.9 % 62.4 % 66.9 % | For the year ended March 31, 2019, and the three months ended March 31, 2018 the Company’s customers that comprised more than ten percent (10%) of total revenues and accounts receivable were as follows: For the Year Ended For the Three Months Ended For the Year Ended PERCENTAGES Revenues Accounts Receivable Revenues Accounts Receivable Revenues Accounts Receivable Customers: A 24.6 % 29.4 % - - - - B 19.1 % - - - - - C 10.0 % - 35.5 % 54.6 % 57.8 % 27.4 % D - 19.0 % - - - - E - - 17.1 % 12.6 % - - F - - 15.1 % - - - G - - - - - 20.4 % H - - - - - 12.7 % 53.7 % 48.4 % 67.7 % 67.2 % 57.8 % 60.5 % |
Schedule of Calculations of Fair Value Assumptions | We valued warrants issued for the reduction in conversion price for the conversion of Convertible Promissory Notes at the grant date of March 31, 2019 using valuation methods and assumptions that consider, among other factors, the fair value of the underlying stock, risk free interest rate, volatility, and expected life. March 31, 2019 March 31, 2018 December 31, 2017 Risk free interest rate 2.39 % 2.05 % 1.31 - 1.5 % Expected volatility 45 % 195 % 250 % Expected term 2.5 years 1 year 1 - 1.5 years Expected dividend yield 0 % 0 % 0 % | |
Schedule of Acquisition of Fixed Assets | In the year ended December 31, 2017, Equipment acquired in the foreclosure transaction and the patent were valued on their respective acquisition dates using fair values. Quoted Active Significant Significant Total (Level 1) (Level 2) (Level 3) March 31, 2019 Employee stock awards $ - $ 1,172,974 $ - $ 1,172,974 Executive stock grant expense - 703,030 - 703,030 SWK patent acquisition - - 4,624,005 4,624,005 Jagemann Munition Components acquired intangible assets - - 5,912,305 5,912,305 Stock and warrants issued for convertible promissory notes - 358,800 - 358,800 March 31, 2018 Employee stock awards $ - $ 482,432 $ - $ 482,432 Executive stock grant expense - 106,563 - 106,563 Warrants issued for services - - 125,000 125,000 December 31, 2017 Common stock issued for legal, advisory and consulting fees $ - $ 454,625 $ - $ 454,625 Employee stock awards - 160,000 - 160,000 Common stock for licensing agreement - 125,000 - 125,000 Patent acquisition, noncash element - - 750,000 750,000 Warrants issued for interest - - 46,188 46,188 Warrants issued for services - - 67,000 67,000 Assets acquired in foreclosure - - 543,115 543,115 Common Stock issued for prepaid legal fees - 224,000 - 224,000 |
Vendor Notes Receivable (Tables
Vendor Notes Receivable (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Vendor Notes Receivable | |
Schedule of Vendor Note Receivable | Vendor note receivable consisted of the following at December 31, 2016: Advanced Tactical Armament Concepts, L.L.C. Notes Payable Purchased by Ammo Amount Western Alliance Bank – Balance outstanding as of October 24, 2016 $ 1,910,993 Negotiated Discount with Western Alliance Bank to assume the Note Receivable (360,993 ) AMMO, Inc. Net Purchase Price for Western Alliance Note Payable 1,550,000 Mansfield, LLC Note Outstanding, inclusive of $135,000 fee outstanding 1,035,000 AMMO, Inc. Net Purchase Price to Acquire Notes Receivable of Western Alliance Bank & Mansfield LLC $ 2,585,000 |
Schedule of Disposition of Collateral | We reflected this transaction in the following manner: Notes Receivable $ (2,585,000 ) Vendor advances receivable 96,552 Accounts receivable 20,965 Inventories 644,447 Equipment 543,115 Loss on notes receivable 1,279,921 $ - |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | ||
Schedule of Inventory | At June 30, 2019 and March 31, 2019, the inventory balances are composed of: June 30, 2019 March 31, 2019 Finished product $ 2,809,738 $ 2,628,241 Raw materials 2,207,151 1,635,130 Work in process 536,232 509,226 $ 5,553,121 $ 4,772,597 | At March 31, 2019, March 31, 2018, December 31, 2017, the inventory balances consisted of the following: March 31, 2019 March 31, 2018 December 31, 2017 Finished product $ 2,628,241 $ 809,680 $ 1,007,291 Raw materials 1,635,130 1,471,666 764,810 Work in process 509,226 123,661 20,213 $ 4,772,597 $ 2,405,007 $ 1,792,314 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Schedule of Property and Equipment | Property and equipment consisted of the following at June 30, 2019 and March 31, 2019: June 30, 2019 March 31, 2019 Leasehold improvements $ 111,631 $ 98,444 Furniture and fixtures 157,609 154,777 Vehicles 103,511 103,511 Equipment 18,914,770 18,689,140 Tooling 126,190 117,390 Construction in progress 3,352,669 3,352,669 Total property and equipment $ 22,766,380 $ 22,515,931 Less accumulated depreciation (1,098,818 ) (516,144 ) Net property and equipment $ 21,667,562 $ 21,999,787 | Property and equipment consisted of the following at March 31, 2019, March 31, 2018 and December 31, 2017: March 31, 2019 March 31, 2018 December 31, 2017 Leasehold Improvements $ 98,444 $ 17,772 $ 15,475 Furniture and Fixtures 154,777 8,102 33,751 Vehicles 103,511 89,388 36,500 Equipment 18,689,140 879,871 184,626 Tooling 117,390 359,351 579,951 Construction in Progress 3,352,669 - - Total property and equipment $ 22,515,931 $ 1,354,484 $ 847,303 Less accumulated depreciation (516,144 ) (113,158 ) (77,861 ) Net equipment 21,999,787 1,241,326 769,442 |
Capital Stock (Tables)
Capital Stock (Tables) | 3 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Mar. 31, 2019 | |
Equity [Abstract] | ||
Schedule of Outstanding and Exercisable Stock Purchase Warrants | At June 30, 2019, outstanding and exercisable stock purchase warrants consisted of the following: Number of Weighted Averaged Weighted Outstanding at March 31, 2019 $ 8,143,115 $ 2.09 4.35 Granted 503,101 2.36 4.80 Exercised - - - Forfeited or cancelled - - - Outstanding at June 30, 2019 8,646,216 $ 2.11 4.13 Exercisable at June 30, 2019 8,646,216 $ 2.11 4.13 | At March 31, 2019, March 31, 2018, and December 31, 2017, outstanding and exercisable stock purchase warrants consisted of the following: December 31, 2017 Number of Shares Weighted Averaged Exercise Price Weighted Average Life Remaining (Years) Outstanding at December 31, 2016 720,000 $ 2.22 1.95 Granted 4,542,338 2.23 1.9 Exercised - - - Forfeited or cancelled - - - Outstanding at December 31, 2017 5,262,338 $ 2.43 1.77 Exercisable at December 31, 2017 5,262,338 $ 2.43 1.77 March 31, 2018 Number of Shares Weighted Averaged Exercise Price Weighted Average Life Remaining (Years) Outstanding at December 31, 2017 5,262,338 $ 2.50 1.77 Granted 3,609,822 2.42 5.13 Exercised - - - Forfeited or cancelled - - - Outstanding at March 31, 2018 8,872,160 $ 2.23 2.97 Exercisable at March 31, 2018 8,872,160 $ 2.23 2.97 March 31, 2019 Number of Shares Weighted Averaged Exercise Price Weighted Average Life Remaining (Years) Outstanding at March 31, 2018 8,872,160 $ 2.23 2.97 Granted 4,233,274 2.23 4.62 Exercised (1,987,519 ) 2.41 - Forfeited or cancelled (2,974,800 ) 2.47 - Outstanding at March 31, 2019 8,143,115 $ 2.09 4.35 Exercisable at March 31, 2019 8,143,115 $ 2.09 4.35 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Total Purchase Consideration on Intangible Assets | We recorded the total purchase consideration to patents as follows: Cash $ 250,000 Contingent Consideration Payable 1,250,000 Common Stock 1,700 Additional Paid-in Capital 4,622,305 Fair Value of Patent $ 6,124,005 |
Schedule of Fair Value of Consideration Transferred | The fair value of the consideration transferred was valued as of the date of the acquisition as follows: Cash $ 7,000,000 Note Payable 10,400,000 Common Stock 4,750 Additional Paid-in Capital 9,495,250 Total Consideration $ 26,900,000 |
Schedule of Allocation for Consideration | Total allocation for the consideration recorded for the acquisition is as follows: Equipment $ 18,869,541 Intellectual property 1,773,436 Customer relationships 1,666,774 Tradename 2,472,095 Loss on Purchase 2,118,154 Total Consideration $ 26,900,000 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | At March 31, 2019, March 31, 2018, and December 31, 2017, accrued liabilities were as follows: March 31, 2019 March 31, 2018 December 31, 2017 Accrued payroll $ 248,027 $ 172,419 $ 145,779 Accrued interest 35,422 - 74,896 Accrued FAET 145,460 133,104 26,075 Accrued professional fees 74,300 99,255 - Other accruals 28,225 136,432 8,024 $ 531,434 $ 541,210 $ 254,774 |
Operating Leases (Tables)
Operating Leases (Tables) | 3 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Schedule of Future Minimum Rental Payments for Financing Leases | The following table outlines our future contractual financial obligations associated with this lease by fiscal year in which payment is expected, as of March 31, 2019: 2020 2021 2022 Total Payson Lease $ 120,000 $ 120,000 $ 80,000 $ 320,000 The following table outlines our future contractual financial obligations associated with this lease by fiscal period in which payment is expected, as of March 31, 2019: 2020 2021 2022 2023 2024 Total Scottsdale Lease $ 216,591 $ 226,587 $ 236,583 $ 246,580 $ 147,240 $ 1,073,581 The following table outlines our future contractual financial obligations associated with this lease by fiscal period in which payment is expected, as of March 31, 2019: 2020 2021 2022 2023 2024 2025 2026 Total Manitowoc Lease $ 394,128 $ 394,128 $ 394,128 $ 394,128 $ 394,128 $ 394,128 $ 394,128 $ 2,758,896 | |
Schedule of Futures Minimum Lease Payments Under Non-cancellable Leases | Futures minimum lease payments under non-cancellable leases as of June 30, 2019 are as follows: Years Ended March 31, 2020 $ 519,922 2021 693,229 2022 693,229 2023 693,229 2024 640,118 Thereafter 2,168,932 5,408,659 Less: Interest (1,001,737 ) $ 4,406,922 | |
Summary of Right of Use Assets and Operating Lease Liabilities | Right of Use Assets and Operating Lease Liabilities on the Balance Sheet: June 30, 2019 Current portion $ 483,872 Long-term, net of current portion 3,923,050 $ 4,406,922 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Reconciliation of Benefit (Expense) for Income Taxes | Reconciliation of the benefit (expense) for income taxes with amounts determined by applying the statutory federal income rate of 21% in 2019 and 2018 and 34% in 2017: 2019 2018 2017 Net (Loss) $ (11,709,412 ) $ (1,797,228 ) $ (5,788,901 ) Benefit (expense) for income taxes computed using the statutory rate of 21% in 2019 and 2018 and 34% in 2017 2,458,977 377,418 1,968,226 Non-deductible expense (918,417 ) (161,864 ) (360,952 ) Re-measurement of deferred income taxes due to tax reform - - (632,683 ) Change in valuation allowance (1,540,560 ) (215,554 ) (974,591 ) Provision for income taxes $ - $ - $ - |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax liabilities and assets at March 31, 2019, March 31, 2018, and December 31, 2017 are as follows: 2019 2018 2017 Total deferred tax assets – net operating losses $ 2,778,139 $ 1,237,579 $ 1,022,025 Deferred tax liabilities - - - Net deferred tax assets 2,778,139 1,237,579 $ 1,022,025 Valuation allowance (2,778,139 ) $ (1,237,579 ) $ (1,022,025 ) $ - $ - $ - |
Summary of Operating Loss Carryforwards | At March 31, 2019, net operating loss (“NOL”) carry forwards summary follows: Expiring December 31, 2036 $ 139,512 2037 4,727,276 4,866,788 Non-Expiring NOL 2018 1,026,447 2019 7,335,996 Total NOL Carryforward $ 13,229,231 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consisted of the following: March 31, 2019 Life Licenses Patent Other Intangible Assets Licensing Agreement – Jesse James 5 $ 125,000 $ - $ - Licensing Agreement – Jeff Rann 5 125,000 - - Streak Visual Ammunition patent 11.2 - 950,000 - SWK patent acquisition 15 6,124,005 Jagemann Munition Components: Customer Relationships 3 - - 1,666,774 Intellectual Property 3 - - 1,773,436 Tradename 5 - - 2,472,095 250,000 7,074,005 5,912,305 Accumulated amortization – Licensing Agreements (108,333 ) - - Accumulated amortization – Patents - (134,701 ) - Accumulated amortization – Intangible Assets - - (61,803 ) $ 141,667 $ 6,939,304 $ 5,850,502 March 31, 2018 Life Licenses Patent Other Intangible Assets Licensing Agreement – Jesse James 5 $ 125,000 $ - $ - Licensing Agreement – Jeff Rann 5 125,000 - - Streak Visual Ammunition Patent 11.2 - 950,000 - 250,000 950,000 - Accumulated amortization – Licensing Agreements (58,333 ) - - Accumulated amortization – Patents - (49,627 ) - $ 191,667 $ 900,373 $ - December 31, 2017 Life Licenses Patent Other Intangible Assets Licensing Agreement – Jesse James 5 $ 125,000 $ - $ - Licensing Agreement – Jeff Rann 5 125,000 - - Streak Visual Ammunition Patent 11.2 - 950,000 - 250,000 950,000 - Accumulated amortization – Licensing Agreements (45,833 ) - - Accumulated amortization – Patents - (25,166 ) - $ 204,167 $ 924,834 $ - |
Organization and Business Act_2
Organization and Business Activity (Details Narrative) (10-Q) - shares | Jun. 28, 2019 | Mar. 17, 2017 | Dec. 15, 2016 | Jun. 30, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2017 |
Number of shares sold | 475,681 | ||||||
Number of shares issued for pre split | 11,891,976 | ||||||
Reverse stock split | 1-for-25 reverse stock split ("Reverse Split") of the issued and outstanding shares of the common stock of the Company. As a result of the reverse split, the previous issued and outstanding shares of common stock became 580,052 shares; no shareholder was reversed below 100 shares, and all fractional shares resulting from the reverse split were rounded up to the next whole share. | ||||||
Number of shares issued, post reverse split | 580,052 | ||||||
Number of shares newly issued | 898,550 | 1,256,833 | 5,906,710 | 15,618,572 | 6,733,793 | ||
Number of shares issued to satisfy an issuance commitment | 24,000 | ||||||
PRIVCO Agreement [Member] | |||||||
Number of shares newly issued | 17,285,800 | ||||||
Number of shares retired | 475,681 | ||||||
Number of shares issued to satisfy an issuance commitment | 500,000 | ||||||
Number of shares, equivalent to the issuance | 604,371 |
Organization and Business Act_3
Organization and Business Activity (Details Narrative) - shares | Jun. 28, 2019 | Mar. 17, 2017 | Dec. 15, 2016 | Jun. 30, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2017 |
Number of shares sold | 475,681 | ||||||
Number of shares issued for pre split | 11,891,976 | ||||||
Reverse stock split | 1-for-25 reverse stock split ("Reverse Split") of the issued and outstanding shares of the common stock of the Company. As a result of the reverse split, the previous issued and outstanding shares of common stock became 580,052 shares; no shareholder was reversed below 100 shares, and all fractional shares resulting from the reverse split were rounded up to the next whole share. | ||||||
Number of shares issued, post reverse split | 580,052 | ||||||
Number of shares newly issued | 898,550 | 1,256,833 | 5,906,710 | 15,618,572 | 6,733,793 | ||
Number of shares issued to satisfy an issuance commitment | 24,000 | ||||||
PRIVCO Agreement [Member] | |||||||
Number of shares newly issued | 17,285,800 | ||||||
Number of shares retired | 475,681 | ||||||
Number of shares issued to satisfy an issuance commitment | 500,000 | ||||||
Number of shares, equivalent to the issuance | 604,371 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) (10-Q) - USD ($) | Jun. 28, 2019 | Mar. 25, 2019 | Oct. 05, 2018 | Sep. 27, 2018 | Sep. 27, 2018 | May 01, 2018 | Mar. 12, 2018 | Feb. 06, 2018 | Sep. 28, 2017 | Sep. 13, 2017 | Aug. 22, 2017 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2016 | Aug. 20, 2018 |
Allowance for doubtful accounts | $ 25,721 | $ 129,365 | $ 23,046 | $ 129,365 | $ 129,365 | $ 26,046 | ||||||||||||||
Common stock issued for cash , shares | 898,550 | 1,256,833 | 5,906,710 | 15,618,572 | 6,733,793 | |||||||||||||||
Payment of note payable related party | $ 500,000 | $ 9,900,000 | $ 960,000 | $ 75,000 | ||||||||||||||||
Shares issued for patents, amount | 750,000 | |||||||||||||||||||
Patent amortization expense | $ 36,961 | $ 196,877 | 70,999 | |||||||||||||||||
Cash payment | $ 250,000 | $ 250,000 | ||||||||||||||||||
Contingent Consideration Payable | $ 1,250,000 | 1,250,000 | ||||||||||||||||||
Agreement term, description | Under the terms of the Exclusive License Agreement, the Company is obligated to pay a royalty to the patent holder, based on a $0.01 per unit basis for each round of ammunition sold that incorporates this patented technology through October 29, 2028 | Under the terms of the Exclusive License Agreement, the Company is obligated to pay a royalty to the patent holder, based on a $0.01 per unit basis for each round of ammunition sold that incorporates this patented technology through October 29, 2028 | ||||||||||||||||||
Amortization of other intangible assets | $ 416,869 | $ 61,803 | ||||||||||||||||||
Impairment expense | ||||||||||||||||||||
Concentration Percentage | 10.00% | 10.00% | 10.00% | |||||||||||||||||
Advertising costs | $ 94,213 | $ 146,615 | $ 245,472 | $ 554,266 | $ 220,154 | |||||||||||||||
Common stock issued for services, shares | 63,492 | 63,492 | 5,000 | |||||||||||||||||
Option granted | 3,609,822 | 4,542,338 | ||||||||||||||||||
Contingency | ||||||||||||||||||||
Warrants [Member] | ||||||||||||||||||||
Antidilutive securities excluded from computation of earnings per share, amount | 8,646,216 | 8,143,115 | ||||||||||||||||||
Minimum [Member] | ||||||||||||||||||||
Property and equipment useful life | 5 years | 5 years | ||||||||||||||||||
Customers payment due term | 30 days | 30 days | ||||||||||||||||||
Maximum [Member] | ||||||||||||||||||||
Property and equipment useful life | 7 years | 10 years | ||||||||||||||||||
Federal deposit insurance corporation limit | $ 250,000 | 250,000 | $ 250,000 | $ 250,000 | ||||||||||||||||
Customers payment due term | 60 days | 60 days | ||||||||||||||||||
Employees, Members of Board of Directors and Advisory Committee [Member] | ||||||||||||||||||||
Common stock issued for services, shares | 167,500 | |||||||||||||||||||
Robert D. Wiley [Member] | Employment agreement [Member] | ||||||||||||||||||||
Option granted | 100,000 | 400,000 | ||||||||||||||||||
Options vesting in period | 33,333 | 100,000 | ||||||||||||||||||
Vesting period | 3 years | 4 years | ||||||||||||||||||
Compensation expenses | $ 250,000 | $ 660,000 | ||||||||||||||||||
Three Employee Agreements [Member] | Employment agreement [Member] | ||||||||||||||||||||
Option granted | 535,000 | 535,000 | ||||||||||||||||||
Vesting period | 4 years | 4 years | ||||||||||||||||||
Each compensation value recognized on straight-line basis | $ 1,376,000 | $ 1,376,000 | ||||||||||||||||||
SW Kenetics Inc. [Member] | ||||||||||||||||||||
Number of shares issued in acquisition | 1,700,002 | |||||||||||||||||||
Cash payment | 250,000 | 250,000 | ||||||||||||||||||
Contingent Consideration Payable | $ 1,250,000 | $ 1,250,000 | ||||||||||||||||||
SW Kenetics Inc. [Member] | Claw Back Provisions [Member] | ||||||||||||||||||||
Number of shares issued in acquisition | 1,700,002 | 1,700,002 | ||||||||||||||||||
Cash payment | $ 250,000 | |||||||||||||||||||
SW Kenetics Inc. [Member] | Restricted Stock [Member] | ||||||||||||||||||||
Number of shares issued in acquisition | 1,700,002 | |||||||||||||||||||
SW Kenetics Inc. [Member] | Three Shareholders [Member] | Restricted Stock [Member] | ||||||||||||||||||||
Number of shares issued in acquisition | 1,700,002 | |||||||||||||||||||
Cash payment | $ 250,000 | |||||||||||||||||||
Contingent Consideration Payable | 1,250,000 | |||||||||||||||||||
SW Kenetics Inc. [Member] | Three Shareholders [Member] | Milestone One [Member] | Claw Back Provisions [Member] | ||||||||||||||||||||
Cash payment | 50,000 | |||||||||||||||||||
SW Kenetics Inc. [Member] | Three Shareholders [Member] | Milestone Two [Member] | Claw Back Provisions [Member] | ||||||||||||||||||||
Cash payment | $ 50,000 | |||||||||||||||||||
Hallam, Inc [Member] | ||||||||||||||||||||
Ownership percentage in ATI | 100.00% | |||||||||||||||||||
Licensing Agreements [Member] | ||||||||||||||||||||
Amortization expense | $ 12,500 | 12,500 | $ 12,500 | $ 50,000 | 45,833 | |||||||||||||||
Patents [Member] | ||||||||||||||||||||
Payment of note payable related party | $ 2,558 | $ 10,783 | 7,147 | $ 33,920 | 6,000 | |||||||||||||||
Share price | $ 1.25 | $ 1.25 | $ 1.25 | $ 1.25 | ||||||||||||||||
Shares issued for patents, amount | $ 950,000 | $ 950,000 | ||||||||||||||||||
Patent amortization expense | 21,269 | $ 24,461 | 21,269 | $ 85,074 | $ 25,166 | |||||||||||||||
Number of shares issued in acquisition | 600,000 | |||||||||||||||||||
Patents [Member] | SW Kenetics Inc. [Member] | ||||||||||||||||||||
Patent amortization expense | $ 35,119 | |||||||||||||||||||
Jesse James [Member] | Licensing Agreements [Member] | ||||||||||||||||||||
Common stock issued for cash , shares | 100,000 | 100,000 | ||||||||||||||||||
Additional common stock issued | 75,000 | 75,000 | ||||||||||||||||||
Gross sale | $ 15,000,000 | $ 15,000,000 | ||||||||||||||||||
Jeff Rann [Member] | Licensing Agreements [Member] | ||||||||||||||||||||
Common stock issued for cash , shares | 100,000 | 100,000 | ||||||||||||||||||
Additional common stock issued | 75,000 | 75,000 | ||||||||||||||||||
Gross sale | $ 15,000,000 | $ 15,000,000 | ||||||||||||||||||
Two Shareholders [Member] | Hallam, Inc [Member] | ||||||||||||||||||||
Shares issued for patents, share | 600,000 | |||||||||||||||||||
Payment of note payable related party | $ 200,000 | |||||||||||||||||||
Shareholders [Member] | Hallam, Inc [Member] | ||||||||||||||||||||
Payment of note payable related party | $ 100,000 | $ 100,000 | $ 200,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | Jun. 28, 2019 | Mar. 25, 2019 | Sep. 27, 2018 | May 01, 2018 | Mar. 12, 2018 | Feb. 06, 2018 | Sep. 28, 2017 | Sep. 13, 2017 | Aug. 22, 2017 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2016 |
Allowance for doubtful accounts | $ 25,721 | $ 129,365 | $ 23,046 | $ 129,365 | $ 129,365 | $ 26,046 | |||||||||||
Common stock issued for cash , shares | 898,550 | 1,256,833 | 5,906,710 | 15,618,572 | 6,733,793 | ||||||||||||
Payment of note payable related party | $ 500,000 | $ 9,900,000 | $ 960,000 | $ 75,000 | |||||||||||||
Shares issued for patents, amount | 750,000 | ||||||||||||||||
Patent amortization expense | $ 36,961 | $ 196,877 | 70,999 | ||||||||||||||
Agreement term, description | Under the terms of the Exclusive License Agreement, the Company is obligated to pay a royalty to the patent holder, based on a $0.01 per unit basis for each round of ammunition sold that incorporates this patented technology through October 29, 2028 | Under the terms of the Exclusive License Agreement, the Company is obligated to pay a royalty to the patent holder, based on a $0.01 per unit basis for each round of ammunition sold that incorporates this patented technology through October 29, 2028 | |||||||||||||||
Amortization of other intangible assets | $ 416,869 | $ 61,803 | |||||||||||||||
Impairment expense | |||||||||||||||||
Concentration Percentage | 10.00% | 10.00% | 10.00% | ||||||||||||||
Advertising costs | $ 94,213 | $ 146,615 | $ 245,472 | $ 554,266 | $ 220,154 | ||||||||||||
Common stock issued to employees for services | 702,500 | ||||||||||||||||
Option granted | 3,609,822 | 4,542,338 | |||||||||||||||
Contingency | |||||||||||||||||
Employment agreement [Member] | Robert D. Wiley [Member] | |||||||||||||||||
Option granted | 100,000 | 400,000 | |||||||||||||||
Options vesting in period | 33,333 | 100,000 | |||||||||||||||
Vesting period | 3 years | 4 years | |||||||||||||||
Compensation expenses | $ 250,000 | $ 660,000 | |||||||||||||||
Employment agreement [Member] | Three Employee Agreements [Member] | |||||||||||||||||
Option granted | 535,000 | 535,000 | |||||||||||||||
Vesting period | 4 years | 4 years | |||||||||||||||
Each compensation value recognized on straight-line basis | $ 1,376,000 | $ 1,376,000 | |||||||||||||||
Licensing Agreements [Member] | |||||||||||||||||
Amortization expense | $ 12,500 | 12,500 | $ 12,500 | $ 50,000 | 45,833 | ||||||||||||
Licensing Agreements [Member] | Jesse James [Member] | |||||||||||||||||
Common stock issued for cash , shares | 100,000 | 100,000 | |||||||||||||||
Additional common stock issued | 75,000 | 75,000 | |||||||||||||||
Gross sale | $ 15,000,000 | $ 15,000,000 | |||||||||||||||
Licensing Agreements [Member] | Jeff Rann [Member] | |||||||||||||||||
Common stock issued for cash , shares | 100,000 | 100,000 | |||||||||||||||
Additional common stock issued | 75,000 | 75,000 | |||||||||||||||
Gross sale | $ 15,000,000 | $ 15,000,000 | |||||||||||||||
Patents [Member] | |||||||||||||||||
Payment of note payable related party | $ 2,558 | $ 10,783 | 7,147 | $ 33,920 | 6,000 | ||||||||||||
Share price | $ 1.25 | $ 1.25 | $ 1.25 | $ 1.25 | |||||||||||||
Shares issued for patents, amount | $ 950,000 | $ 950,000 | |||||||||||||||
Patent amortization expense | $ 21,269 | $ 24,461 | $ 21,269 | $ 85,074 | $ 25,166 | ||||||||||||
Warrants [Member] | |||||||||||||||||
Antidilutive securities excluded from computation of earnings per share, amount | 8,646,216 | 8,143,115 | |||||||||||||||
Minimum [Member] | |||||||||||||||||
Property and equipment useful life | 5 years | 5 years | |||||||||||||||
Customers payment due term | 30 days | 30 days | |||||||||||||||
Maximum [Member] | |||||||||||||||||
Property and equipment useful life | 7 years | 10 years | |||||||||||||||
Federal deposit insurance corporation limit | $ 250,000 | $ 250,000 | $ 250,000 | $ 250,000 | |||||||||||||
Customers payment due term | 60 days | 60 days | |||||||||||||||
Hallam, Inc [Member] | |||||||||||||||||
Ownership percentage in ATI | 100.00% | ||||||||||||||||
Hallam, Inc [Member] | Two Shareholders [Member] | |||||||||||||||||
Shares issued for patents, share | 600,000 | ||||||||||||||||
Payment of note payable related party | $ 200,000 | ||||||||||||||||
Hallam, Inc [Member] | Shareholders [Member] | |||||||||||||||||
Payment of note payable related party | $ 100,000 | $ 100,000 | $ 200,000 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Concentration (Details) | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2017 | |
Concentration Percentage | 10.00% | 10.00% | 10.00% | ||
Revenues [Member] | |||||
Concentration Percentage | 67.70% | 53.70% | 57.80% | ||
Accounts Receivable [Member] | |||||
Concentration Percentage | 67.20% | 48.40% | 60.50% | ||
Customer A [Member] | Revenues [Member] | |||||
Concentration Percentage | 24.60% | ||||
Customer A [Member] | Accounts Receivable [Member] | |||||
Concentration Percentage | 29.40% | ||||
Customer B [Member] | Revenues [Member] | |||||
Concentration Percentage | 19.10% | ||||
Customer B [Member] | Accounts Receivable [Member] | |||||
Concentration Percentage | |||||
Customer C [Member] | Revenues [Member] | |||||
Concentration Percentage | 35.50% | 10.00% | 57.80% | ||
Customer C [Member] | Accounts Receivable [Member] | |||||
Concentration Percentage | 54.60% | 27.40% | |||
Customer D [Member] | Revenues [Member] | |||||
Concentration Percentage | |||||
Customer D [Member] | Accounts Receivable [Member] | |||||
Concentration Percentage | 19.00% | ||||
Customer E [Member] | Revenues [Member] | |||||
Concentration Percentage | 17.10% | ||||
Customer E [Member] | Accounts Receivable [Member] | |||||
Concentration Percentage | 12.60% | ||||
Customer F [Member] | Revenues [Member] | |||||
Concentration Percentage | 15.10% | ||||
Customer F [Member] | Accounts Receivable [Member] | |||||
Concentration Percentage | |||||
Customer G [Member] | Revenues [Member] | |||||
Concentration Percentage | |||||
Customer G [Member] | Accounts Receivable [Member] | |||||
Concentration Percentage | 20.40% | ||||
Customer H [Member] | Revenues [Member] | |||||
Concentration Percentage | |||||
Customer H [Member] | Accounts Receivable [Member] | |||||
Concentration Percentage | 12.70% | ||||
Revenues [Member] | |||||
Concentration Percentage | 36.40% | 62.40% | |||
Revenues [Member] | Customer A [Member] | |||||
Concentration Percentage | 25.90% | 0.00% | |||
Revenues [Member] | Customer B [Member] | |||||
Concentration Percentage | 10.50% | 62.40% | |||
Revenues [Member] | Customer C [Member] | |||||
Concentration Percentage | 0.00% | 0.00% | |||
Accounts Receivable [Member] | |||||
Concentration Percentage | 34.60% | 66.90% | |||
Accounts Receivable [Member] | Customer A [Member] | |||||
Concentration Percentage | 34.60% | 0.00% | |||
Accounts Receivable [Member] | Customer B [Member] | |||||
Concentration Percentage | 0.00% | 13.00% | |||
Accounts Receivable [Member] | Customer C [Member] | |||||
Concentration Percentage | 0.00% | 53.90% |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Calculations of Fair Value Assumptions (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2017 | |
Risk Free Interest Rate [Member] | |||
Fair value assumptions, measurement input, percentages | 2.05% | 2.39% | |
Risk Free Interest Rate [Member] | Minimum [Member] | |||
Fair value assumptions, measurement input, percentages | 1.31% | ||
Risk Free Interest Rate [Member] | Maximum [Member] | |||
Fair value assumptions, measurement input, percentages | 1.50% | ||
Expected Volatility [Member] | |||
Fair value assumptions, measurement input, percentages | 195.00% | 45.00% | 250.00% |
Expected Term [Member] | |||
Fair value assumptions, measurement input, term | 1 year | 2 years 6 months | |
Expected Term [Member] | Minimum [Member] | |||
Fair value assumptions, measurement input, term | 1 year | ||
Expected Term [Member] | Maximum [Member] | |||
Fair value assumptions, measurement input, term | 1 year 6 months | ||
Expected Dividend Yield [Member] | |||
Fair value assumptions, measurement input, percentages | 0.00% | 0.00% | 0.00% |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Schedule of Acquisition of Fixed Assets (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2017 | |
Employee stock awards | $ 482,432 | $ 1,172,974 | $ 160,000 | ||
Executive stock grant expense | $ (201,512) | $ (111,402) | (106,563) | (703,030) | |
SWK patent acquisition | 4,624,005 | ||||
Jagemann Munition Components acquired intangible assets | 5,912,305 | ||||
Stock and warrants issued for convertible promissory notes | 358,800 | ||||
Warrants issued for services | 125,000 | 67,000 | |||
Common stock issued for legal, advisory and consulting fees | 454,625 | ||||
Common stock for licensing agreement | 125,000 | ||||
Patent acquisition, noncash element | 750,000 | ||||
Warrants issued for interest | 46,188 | ||||
Assets acquired in foreclosure | 543,115 | ||||
Common Stock issued for prepaid legal fees | 224,000 | ||||
Level 1 [Member] | |||||
Employee stock awards | |||||
Executive stock grant expense | |||||
SWK patent acquisition | |||||
Jagemann Munition Components acquired intangible assets | |||||
Stock and warrants issued for convertible promissory notes | |||||
Warrants issued for services | |||||
Common stock issued for legal, advisory and consulting fees | |||||
Common stock for licensing agreement | |||||
Patent acquisition, noncash element | |||||
Warrants issued for interest | |||||
Assets acquired in foreclosure | |||||
Common Stock issued for prepaid legal fees | |||||
Level 2 [Member] | |||||
Employee stock awards | 482,432 | 1,172,974 | 160,000 | ||
Executive stock grant expense | 106,563 | 703,030 | |||
SWK patent acquisition | |||||
Jagemann Munition Components acquired intangible assets | |||||
Stock and warrants issued for convertible promissory notes | 358,800 | ||||
Warrants issued for services | |||||
Common stock issued for legal, advisory and consulting fees | 454,625 | ||||
Common stock for licensing agreement | 125,000 | ||||
Patent acquisition, noncash element | |||||
Warrants issued for interest | |||||
Assets acquired in foreclosure | |||||
Common Stock issued for prepaid legal fees | 224,000 | ||||
Level 3 [Member] | |||||
Employee stock awards | |||||
Executive stock grant expense | |||||
SWK patent acquisition | 4,624,005 | ||||
Jagemann Munition Components acquired intangible assets | 5,912,305 | ||||
Stock and warrants issued for convertible promissory notes | |||||
Warrants issued for services | $ 125,000 | 67,000 | |||
Common stock issued for legal, advisory and consulting fees | |||||
Common stock for licensing agreement | |||||
Patent acquisition, noncash element | 750,000 | ||||
Warrants issued for interest | 46,188 | ||||
Assets acquired in foreclosure | 543,115 | ||||
Common Stock issued for prepaid legal fees |
Vendor Notes Receivable (Detail
Vendor Notes Receivable (Details Narrative) - USD ($) | 2 Months Ended | 12 Months Ended | ||||
Feb. 01, 2017 | Mar. 31, 2019 | Jun. 05, 2019 | Mar. 29, 2019 | Dec. 31, 2016 | Oct. 24, 2016 | |
Interest amount | $ 22,196 | $ 18,226 | $ 52,065 | |||
Note Holder [Member] | ||||||
Note receivable net | $ 1,550,000 | |||||
Advanced Tactical Armament Concepts, LLC [Member] | ||||||
Payment to overcome ceased operations | 235,000 | |||||
Increase in working capital | 665,000 | |||||
Borrowing amount | 900,000 | |||||
Interest amount | $ 135,000 | |||||
Raw materials | $ 219,000 | |||||
Advanced to vendors | $ 89,000 | |||||
Western Alliance Bank [Member] | ||||||
Note receivable net | $ 1,550,000 | $ 1,910,993 |
Vendor Notes Receivable - Sched
Vendor Notes Receivable - Schedule of Vendor Note Receivable (Details) - USD ($) | Dec. 31, 2016 | Oct. 24, 2016 |
Western Alliance Bank [Member] | ||
Note receivable | $ 1,910,993 | |
Negotiated Discount with Western Alliance Bank to assume the Note Receivable | (360,993) | |
AMMO, Inc. Net Purchase Price for Western Alliance Note Payable | 1,550,000 | $ 1,910,993 |
AMMO, Inc. Net Purchase Price to Acquire Notes Receivable of Western Alliance Bank & Mansfield LLC | 2,585,000 | |
Mansfield, LLC [Member] | ||
Note receivable | $ 1,035,000 |
Vendor Notes Receivable - Sch_2
Vendor Notes Receivable - Schedule of Vendor Note Receivable (Details) (Parenthetical) | Dec. 31, 2016USD ($) |
Mansfield, LLC [Member] | |
Fee outstanding | $ 135,000 |
Vendor Notes Receivable - Sch_3
Vendor Notes Receivable - Schedule of Disposition of Collateral (Details) - USD ($) | Feb. 20, 2017 | Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2017 |
Vendor advances receivable | $ (96,552) | |||
Accounts receivable | (20,965) | |||
Inventories | (644,447) | |||
Equipment | $ (543,115) | |||
Advanced Tactical Armament Concepts, LLC [Member] | ||||
Notes Receivable | $ (2,585,000) | |||
Vendor advances receivable | 96,552 | |||
Accounts receivable | 20,965 | |||
Inventories | 644,447 | |||
Equipment | 543,115 | |||
Loss on notes receivable | 1,279,921 | |||
Notes receivable |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory (Details) - USD ($) | Jun. 30, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||||
Finished product | $ 2,809,738 | $ 2,628,241 | $ 809,680 | $ 1,007,291 |
Raw materials | 2,207,151 | 1,635,130 | 1,471,666 | 764,810 |
Work in process | 536,232 | 509,226 | 123,661 | 20,213 |
Inventory, net | $ 5,553,121 | $ 4,772,597 | $ 2,405,007 | $ 1,792,314 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||||
Depreciation expense | $ 582,674 | $ 54,923 | $ 35,297 | $ 402,986 | $ 77,861 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) | Jun. 30, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2017 |
Total property and equipment | $ 22,766,380 | $ 22,515,931 | $ 1,354,484 | $ 847,303 |
Less accumulated depreciation | (1,098,818) | (516,144) | (113,158) | (77,861) |
Net equipment | 21,667,562 | 21,999,787 | 1,241,326 | 769,442 |
Leasehold Improvements [Member] | ||||
Total property and equipment | 111,631 | 98,444 | 17,772 | 15,475 |
Furniture and Fixtures [Member] | ||||
Total property and equipment | 157,609 | 154,777 | 8,102 | 33,751 |
Vehicles [Member] | ||||
Total property and equipment | 103,511 | 103,511 | 89,388 | 36,500 |
Equipment [Member] | ||||
Total property and equipment | 18,914,770 | 18,689,140 | 879,871 | 184,626 |
Tooling [Member] | ||||
Total property and equipment | 126,190 | 117,390 | 359,351 | 579,951 |
Construction in Progress [Member] | ||||
Total property and equipment | $ 3,352,669 | $ 3,352,669 |
Convertible Note Payable (Detai
Convertible Note Payable (Details Narrative) - USD ($) | Dec. 22, 2016 | Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2017 | Jun. 28, 2019 | Jun. 05, 2019 | Mar. 29, 2019 |
Debt instrument, principal balance | $ 300,000 | ||||||||
Amortization of debt | $ 356,250 | ||||||||
Debt instrument description | The note bears interest per annum at approximately 4.6% payable in arrears monthly until October 1, 2019 when the interest rate increases to 9% per annum payable monthly until principal and accrued interest are paid in full. | ||||||||
Debt instrument conversion price | $ 2.50 | ||||||||
Warrant exercise price | $ 2.40 | ||||||||
Interest expense | $ 18,226 | $ 151,856 | 74,896 | ||||||
Note payable | $ 1,575,000 | $ 300,000 | $ 1,410,000 | ||||||
Short-term Convertible Note Payable [Member] | Unrelated Party [Member] | |||||||||
Debt instrument maturity term | 60 months | ||||||||
Debt instrument, principal balance | $ 1,875,000 | ||||||||
Amortization of debt | $ 375,000 | ||||||||
Debt instrument description | The note is convertible into shares of our common stock and one stock purchase warrant at a conversion price of $1.25 per unit and an exercise price of $2.50. | ||||||||
Debt instrument conversion price | $ 1.25 | ||||||||
Warrant exercise price | $ 2.50 |
Notes Payable - Related Party (
Notes Payable - Related Party (Details Narrative) (10-Q) - USD ($) | May 03, 2019 | May 03, 2019 | Apr. 30, 2019 | Mar. 31, 2019 | Mar. 25, 2019 | Mar. 15, 2019 | May 31, 2019 | Mar. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2019 | Jun. 05, 2019 | Mar. 29, 2019 | Sep. 27, 2018 |
Payment of note payable related party | $ 500,000 | $ 9,900,000 | $ 960,000 | $ 75,000 | ||||||||||
Increase in interest rate | 9.00% | |||||||||||||
Accrued interest | $ 22,196 | $ 22,196 | $ 18,226 | $ 52,065 | ||||||||||
Purchase of equipment | $ 6,124,005 | |||||||||||||
Jageman Stamping Company's [Member] | ||||||||||||||
Purchase of equipment | $ 26,900,000 | |||||||||||||
Purchase of note | 9,900,000 | 500,000 | 9,900,000 | |||||||||||
Jageman Stamping Company's [Member] | Equipment [Member] | ||||||||||||||
Purchase of equipment | 18,869,541 | 18,869,541 | 18,869,541 | |||||||||||
Jageman Stamping Company's [Member] | ||||||||||||||
Payment of note payable related party | 9,900,000 | 500,000 | $ 10,400,000 | |||||||||||
Debt instrument maturity date description | On April 30, 2019, the original due date of the note was subsequently extended to April 1, 2020. | |||||||||||||
Promissory Note [Member] | ||||||||||||||
Debt interest rate | 2.56% | 2.56% | 4.60% | |||||||||||
Increase in interest rate | 9.00% | |||||||||||||
Debt instrument, maturity date | Aug. 3, 2019 | Apr. 1, 2020 | ||||||||||||
Promissory Note [Member] | Shareholder [Member] | ||||||||||||||
Debt interest rate | 2.56% | 2.56% | ||||||||||||
Purchase of note | $ 375,000 | $ 375,000 | ||||||||||||
Debt instrument, maturity date | Aug. 3, 2019 | |||||||||||||
Promissory Note [Member] | Jageman Stamping Company's [Member] | ||||||||||||||
Payment of note payable related party | 9,900,000 | $ 500,000 | $ 10,400,000 | $ 1,500,000 | ||||||||||
Debt instrument maturity date description | On April 30, 2019, the original due date of the note was subsequently extended to April 1, 2020. | |||||||||||||
Debt interest rate | 4.60% | |||||||||||||
Increase in interest rate | 9.00% | |||||||||||||
Accrued interest | $ 22,196 | $ 22,196 | $ 127,036 |
Notes Payable - Related Party_2
Notes Payable - Related Party (Details Narrative) - USD ($) | Mar. 31, 2019 | Mar. 25, 2019 | Feb. 06, 2018 | Feb. 02, 2018 | Sep. 13, 2017 | Aug. 29, 2017 | Aug. 22, 2017 | Dec. 16, 2016 | Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 28, 2019 | Jun. 05, 2019 | Mar. 29, 2019 |
Imputed interest | $ 46,340 | ||||||||||||||||
Payment of note payable related party | $ 500,000 | $ 9,900,000 | 960,000 | $ 75,000 | |||||||||||||
Number of warrants outstanding | 8,143,115 | 8,143,115 | 449,275 | 365,523 | |||||||||||||
Warrant exercise price | $ 2.40 | ||||||||||||||||
Increase in interest rate | 9.00% | ||||||||||||||||
Accrued interest | $ 22,196 | $ 22,196 | $ 18,226 | $ 52,065 | |||||||||||||
Purchase of equipment | $ 250,449 | $ 566,364 | $ 507,181 | $ 2,291,907 | $ 304,188 | ||||||||||||
Until October 1, 2019 [Member] | |||||||||||||||||
Debt interest rate | 4.60% | 4.60% | |||||||||||||||
May 2019 [Member] | |||||||||||||||||
Payment of note payable related party | $ 1,500,000 | ||||||||||||||||
Legal Consultant [Member] | |||||||||||||||||
Payment of note payable related party | $ 100,000 | ||||||||||||||||
Number of warrants outstanding | 40,000 | ||||||||||||||||
Warrant exercise price | $ 0.50 | ||||||||||||||||
Warrant term | 2 years | ||||||||||||||||
Value of warrant | $ 46,188 | ||||||||||||||||
Mansfield, LLC [Member] | Chief Executive Officer [Member] | |||||||||||||||||
Purchase of promissory note | $ 1,035,000 | ||||||||||||||||
Imputed interest | $ 46,340 | ||||||||||||||||
Hallam, Inc [Member] | First Payment [Member] | |||||||||||||||||
Payment of note payable related party | $ 100,000 | ||||||||||||||||
Hallam, Inc [Member] | Second Payment [Member] | |||||||||||||||||
Payment of note payable related party | $ 100,000 | ||||||||||||||||
Hallam, Inc [Member] | Shareholders [Member] | |||||||||||||||||
Payment of note payable related party | $ 100,000 | $ 100,000 | $ 200,000 | ||||||||||||||
Jagemann Stamping Company's [Member] | |||||||||||||||||
Payment of note payable related party | $ 9,900,000 | $ 500,000 | $ 10,400,000 | ||||||||||||||
Debt instrument maturity date description | On April 30, 2019, the original due date of the note was subsequently extended to April 1, 2020. | ||||||||||||||||
Purchase of equipment | $ 18,869,541 |
Convertible Promissory Notes (D
Convertible Promissory Notes (Details Narrative) (10-Q) - USD ($) | Jun. 05, 2019 | Mar. 29, 2019 | Jan. 09, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2017 | Jun. 28, 2019 | Feb. 28, 2019 |
Convertible promissory note principal amount | $ 300,000 | |||||||||
Note Issuance Costs | 24,144 | |||||||||
Interest expense debt | $ 18,226 | 151,856 | 74,896 | |||||||
Conversion price per shares | $ 2.50 | |||||||||
Warrant exercise price | $ 2.40 | |||||||||
Convertible promissory notes | $ 300,000 | $ 1,410,000 | $ 1,575,000 | |||||||
Accrued interest payable | $ 18,226 | $ 52,065 | $ 22,196 | |||||||
Debt instrument conversion shares | 127,291 | 731,039 | 127,291 | 731,039 | ||||||
Number of warrants outstanding | 365,523 | 8,143,115 | 449,275 | |||||||
Debt instrument conversion debt amount | $ 318,226 | $ 1,820,865 | ||||||||
Unamortized note issuance costs | $ 23,145 | |||||||||
Paulson Investment Company [Member] | ||||||||||
Interest expense debt | $ 358,800 | |||||||||
Debt instrument conversion debt amount | $ 9,000 | $ 42,300 | ||||||||
Debt instrument conversion rate | 3.00% | 3.00% | ||||||||
Unamortized note issuance costs | $ 118,351 | |||||||||
Holders [Member] | ||||||||||
Conversion price per shares | $ 2 | |||||||||
Warrant exercise price | $ 2.40 | |||||||||
Common Shares [Member] | ||||||||||
Debt instrument conversion shares | 127,291 | 731,039 | ||||||||
Debt instrument conversion debt amount | $ 127 | $ 731 | ||||||||
Qualified Financing [Member] | ||||||||||
Debt instrument maturity date description | The Maturity Date of the notes is the two year anniversary from the date of issuance. | |||||||||
Conversion price per shares | $ 2.50 | |||||||||
Proceeds for convertible debt | $ 10,000,000 | |||||||||
Qualified Financing [Member] | Common Shares [Member] | ||||||||||
Debt issuance percentage | 100.00% | |||||||||
Conversion price per shares | $ 2.50 | |||||||||
Convertible Promissory Notes [Member] | ||||||||||
Interest expense debt | $ 65,291 | |||||||||
Accredited Investors [Member] | ||||||||||
Debt issuance percentage | 10.00% | |||||||||
Convertible promissory note principal amount | $ 1,710,000 | |||||||||
Note Issuance Costs | 176,000 | |||||||||
Accredited Investors [Member] | Commission Fees [Member] | ||||||||||
Debt instrument fee amount | 171,000 | |||||||||
Accredited Investors [Member] | Escrow Fees [Member] | ||||||||||
Debt instrument fee amount | $ 5,000 |
Convertible Promissory Notes _2
Convertible Promissory Notes (Details Narrative) - USD ($) | Jun. 05, 2019 | Mar. 29, 2019 | Jan. 09, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2017 | Jun. 28, 2019 | Feb. 28, 2019 |
Convertible promissory note principal amount | $ 300,000 | |||||||||
Note Issuance Costs | 24,144 | |||||||||
Interest expense debt | $ 18,226 | 151,856 | 74,896 | |||||||
Conversion price per shares | $ 2.50 | |||||||||
Warrant exercise price | $ 2.40 | |||||||||
Convertible promissory notes | $ 300,000 | $ 1,410,000 | $ 1,575,000 | |||||||
Accrued interest payable | $ 18,226 | $ 52,065 | $ 22,196 | |||||||
Debt instrument conversion shares | 127,291 | 731,039 | 127,291 | 731,039 | ||||||
Number of warrants outstanding | 365,523 | 8,143,115 | 449,275 | |||||||
Debt instrument conversion debt amount | $ 318,226 | $ 1,820,865 | ||||||||
Unamortized note issuance costs | $ 23,145 | |||||||||
June 5, 2019 [Member] | ||||||||||
Conversion price per shares | $ 2.50 | |||||||||
Convertible promissory notes | $ 300,000 | |||||||||
Accrued interest payable | $ 18,228 | |||||||||
Debt instrument conversion shares | 127,291 | |||||||||
Paulson Investment Company [Member] | ||||||||||
Interest expense debt | $ 358,800 | |||||||||
Debt instrument conversion debt amount | $ 9,000 | $ 42,300 | ||||||||
Debt instrument conversion rate | 3.00% | 3.00% | ||||||||
Unamortized note issuance costs | $ 118,351 | |||||||||
Paulson Investment Company [Member] | June 5, 2019 [Member] | ||||||||||
Debt instrument conversion debt amount | $ 9,000 | |||||||||
Debt instrument conversion rate | 3.00% | |||||||||
Holders [Member] | ||||||||||
Conversion price per shares | $ 2 | |||||||||
Warrant exercise price | $ 2.40 | |||||||||
Common Shares [Member] | ||||||||||
Debt instrument conversion shares | 127,291 | 731,039 | ||||||||
Debt instrument conversion debt amount | $ 127 | $ 731 | ||||||||
Qualified Financing [Member] | ||||||||||
Debt instrument maturity date description | The Maturity Date of the notes is the two year anniversary from the date of issuance. | |||||||||
Conversion price per shares | $ 2.50 | |||||||||
Proceeds for convertible debt | $ 10,000,000 | |||||||||
Qualified Financing [Member] | Common Shares [Member] | ||||||||||
Debt issuance percentage | 100.00% | |||||||||
Conversion price per shares | $ 2.50 | |||||||||
Convertible Promissory Notes [Member] | ||||||||||
Interest expense debt | $ 65,291 | |||||||||
Accredited Investors [Member] | ||||||||||
Debt issuance percentage | 10.00% | |||||||||
Convertible promissory note principal amount | $ 1,710,000 | |||||||||
Note Issuance Costs | 176,000 | |||||||||
Accredited Investors [Member] | Commission Fees [Member] | ||||||||||
Debt instrument fee amount | 171,000 | |||||||||
Accredited Investors [Member] | Escrow Fees [Member] | ||||||||||
Debt instrument fee amount | $ 5,000 | |||||||||
Paulson Investment Company [Member] | ||||||||||
Interest expense debt | 358,800 | |||||||||
Debt instrument conversion debt amount | $ 42,300 | |||||||||
Debt instrument conversion rate | 3.00% |
Capital Stock (Details Narrativ
Capital Stock (Details Narrative) (10-Q) - USD ($) | Jun. 28, 2019 | Jun. 05, 2019 | Mar. 29, 2019 | Dec. 15, 2016 | Dec. 31, 2018 | Oct. 31, 2017 | Jun. 30, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2017 |
Common stock issued | 898,550 | 1,256,833 | 5,906,710 | 15,618,572 | 6,733,793 | |||||
Common stock issued, value | $ 1,797,100 | $ 1,797,100 | $ 9,263,424 | $ 10,903,930 | $ 6,038,900 | |||||
Common stock issued for convertible notes | 127,291 | 731,039 | 127,291 | 731,039 | ||||||
Common stock issued for convertible notes, value | $ 318,226 | $ 1,820,865 | ||||||||
Common stock issued for services, shares | 63,492 | 63,492 | 5,000 | |||||||
Common stock issued for services | $ 209,346 | $ 200,000 | $ 22,350 | |||||||
Warrants exercise price | $ 2.40 | |||||||||
Number of stock sold | 475,681 | |||||||||
Warrants issued to purchase common stock | 365,523 | |||||||||
Common Shares [Member] | ||||||||||
Common stock issued | 898,550 | 5,614,210 | 5,796,336 | 4,640,822 | ||||||
Common stock issued, value | $ 899 | $ 5,614 | $ 5,797 | $ 4,641 | ||||||
Common stock issued for convertible notes | 127,291 | 731,039 | ||||||||
Common stock issued for convertible notes, value | $ 127 | $ 731 | ||||||||
Common stock issued for services, shares | 63,492 | 5,000 | ||||||||
Common stock issued for services | $ 63 | $ 5 | ||||||||
Warrants [Member] | ||||||||||
Warrants outstanding | 8,646,216 | |||||||||
Warrants [Member] | Until March 2020 [Member] | ||||||||||
Warrants exercise price | $ 2.50 | |||||||||
Warrants issued to purchase common stock | 349,060 | |||||||||
Warrants [Member] | Until April 2025 [Member] | ||||||||||
Warrants exercise price | $ 1.65 | |||||||||
Warrants issued to purchase common stock | 966,494 | |||||||||
Warrants [Member] | Over Next Three to Five Years [Member] | ||||||||||
Warrants exercise price | $ 2 | |||||||||
Warrants issued to purchase common stock | 4,601,639 | |||||||||
Warrants [Member] | Over Next Five Years [Member] | ||||||||||
Warrants exercise price | $ 2.40 | |||||||||
Warrants issued to purchase common stock | 2,729,023 | |||||||||
Placement Agreement [Member] | ||||||||||
Unit price of offering | $ 2 | $ 1.65 | ||||||||
Warrants exercise price | $ 2 | |||||||||
Warrant terms | 5 years | 5 years | ||||||||
Cash fee in percentage | 12.00% | 12.00% | ||||||||
Cash fee | $ 942,828 | $ 164,567 | $ 1,137,211 | $ 117,750 | ||||||
Placement Agreement [Member] | Common Shares [Member] | ||||||||||
Number of stock sold | 3,828,450 | 898,550 | 5,614,210 | 594,702 | ||||||
Cash fee in percentage | 12.00% | |||||||||
Placement Agreement [Member] | Warrants [Member] | ||||||||||
Warrants exercise price | $ 2 | |||||||||
Number of stock sold | 449,275 | 2,807,105 | 297,351 | |||||||
Number of stock sold, value | $ 1,797,100 | $ 9,263,424 | $ 981,250 | |||||||
Cash fee in percentage | 12.00% | |||||||||
Warrants issued to purchase common stock | 1,914,225 | |||||||||
Investors [Member] | ||||||||||
Common stock issued | 898,550 | |||||||||
Common stock issued, value | $ 1,797,100 | |||||||||
Investors [Member] | Placement Agreement [Member] | ||||||||||
Unit price of offering | $ 2 | |||||||||
Warrants exercise price | $ 2.40 | |||||||||
Warrant terms | 5 years | |||||||||
Offering consisted units description | The offering consisted of Units priced at $2.00, which included one share of common stock and one five-year warrant to purchase an additional half-share of common stock for an exercise price of $2.40 per share. Effectively, every two units purchased provided the investor with a five-year warrant at an exercise price of $2.40 per share. | |||||||||
Employees, Members of Board of Directors and Advisory Committee [Member] | ||||||||||
Common stock issued, value | $ 333,250 | |||||||||
Common stock issued for services, shares | 167,500 | |||||||||
Employees, Members of Board of Directors and Advisory Committee [member] | ||||||||||
Common stock issued | 167,500 |
Capital Stock (Details Narrat_2
Capital Stock (Details Narrative) - USD ($) | Jun. 28, 2019 | Jun. 05, 2019 | Mar. 29, 2019 | Mar. 15, 2019 | Jan. 10, 2019 | Sep. 27, 2018 | Jul. 06, 2018 | May 31, 2018 | Mar. 17, 2017 | Dec. 15, 2016 | Dec. 31, 2018 | Oct. 31, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2017 | Nov. 30, 2017 |
Common stock, shares authorized | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | ||||||||||||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||||||||
Common stock issued | 5,906,710 | 15,618,572 | 6,733,793 | |||||||||||||||
Number of common stock sold | 475,681 | |||||||||||||||||
Common stock issued for services, shares | 63,492 | 63,492 | 5,000 | |||||||||||||||
Common stock issued for services | $ 209,346 | $ 200,000 | $ 22,350 | |||||||||||||||
Acquisition stock issuances | $ 14,124,005 | |||||||||||||||||
Number of common stock issued | 24,000 | |||||||||||||||||
Common stock issued for exercised warrants, shares | 1,972,800 | |||||||||||||||||
Common stock issued for exercised warrants | $ 2,354,125 | $ 4,767,625 | ||||||||||||||||
Common stock issued for cashless warrant exercise, shares | 10,495 | |||||||||||||||||
Common stock issued for cashless warrant exercise | ||||||||||||||||||
Common stock issued for convertible notes, shares | 127,291 | 731,039 | 127,291 | 731,039 | ||||||||||||||
Common stock issued for convertible notes | $ 318,226 | $ 1,820,865 | ||||||||||||||||
Common stock issued for payment of legal fees, shares | 49,600 | |||||||||||||||||
Common stock issued for payment of legal fees | $ 124,000 | 124,000 | ||||||||||||||||
Number of common stock issued plan | 702,500 | |||||||||||||||||
Number of common stock issued plan, value | $ 482,432 | $ 1,172,974 | 160,000 | |||||||||||||||
Warrants exercise price | $ 2.40 | |||||||||||||||||
Number of warrant to purchase shares of common stock | 365,523 | |||||||||||||||||
Convertible promissory notes | $ 300,000 | $ 1,410,000 | $ 1,575,000 | |||||||||||||||
Accrued interest payable | $ 18,226 | $ 52,065 | $ 22,196 | |||||||||||||||
Number of warrants outstanding | 449,275 | 365,523 | 8,143,115 | |||||||||||||||
Until March 2020 [Member] | ||||||||||||||||||
Warrants exercise price | $ 2.50 | |||||||||||||||||
Number of warrant to purchase shares of common stock | 349,060 | |||||||||||||||||
April 2025 [Member] | ||||||||||||||||||
Warrants exercise price | $ 1.65 | |||||||||||||||||
Number of warrant to purchase shares of common stock | 966,494 | |||||||||||||||||
Five Years [Member] | ||||||||||||||||||
Warrants exercise price | $ 2 | |||||||||||||||||
Number of warrant to purchase shares of common stock | 4,547,813 | |||||||||||||||||
Until March 2024 [Member] | ||||||||||||||||||
Warrants exercise price | $ 2.40 | |||||||||||||||||
Number of warrant to purchase shares of common stock | 2,279,748 | |||||||||||||||||
Common Shares [Member] | ||||||||||||||||||
Acquisition stock issuances, shares | 6,450,002 | |||||||||||||||||
Common stock issued for services, shares | 63,492 | 5,000 | ||||||||||||||||
Common stock issued for services | $ 63 | $ 5 | ||||||||||||||||
Acquisition stock issuances | $ 6,450 | |||||||||||||||||
Common stock issued for exercised warrants, shares | 1,972,800 | 1,972,800 | ||||||||||||||||
Common stock issued for exercised warrants | $ 1,973 | |||||||||||||||||
Common stock issued for cashless warrant exercise, shares | 10,495 | |||||||||||||||||
Common stock issued for cashless warrant exercise | $ 11 | |||||||||||||||||
Common stock issued for convertible notes, shares | 127,291 | 731,039 | ||||||||||||||||
Common stock issued for convertible notes | $ 127 | $ 731 | ||||||||||||||||
Common stock issued for payment of legal fees, shares | 49,600 | |||||||||||||||||
Common stock issued for payment of legal fees | $ 50 | |||||||||||||||||
Warrants [Member] | ||||||||||||||||||
Weighted average price | $ 2.36 | $ 2.42 | $ 2.23 | $ 2.23 | ||||||||||||||
Number of warrants to purchase of common stock were cancelled | 2,974,800 | |||||||||||||||||
Warrants [Member] | ||||||||||||||||||
Common stock issued for exercised warrants, shares | 1,972,800 | |||||||||||||||||
Weighted average price | $ 2.42 | |||||||||||||||||
Number of warrants to purchase of common stock were cancelled | 2,974,800 | |||||||||||||||||
2017 Equity Incentive Plan [Member] | ||||||||||||||||||
Number of common stock issued for employee compensation | 200,000 | |||||||||||||||||
Number of common stock issued for employee compensation, value | $ 330,000 | |||||||||||||||||
Number of common stock reserved and authorized | 85,000 | 485,000 | ||||||||||||||||
Number of common stock issued plan | 200,000 | |||||||||||||||||
Number of common stock issued plan, value | $ 250,000 | |||||||||||||||||
SW Kenetics Inc [Member] | ||||||||||||||||||
Acquisition stock issuances, shares | 1,700,002 | |||||||||||||||||
Acquisition stock issuances | $ 7,723,166 | $ 4,624,005 | ||||||||||||||||
Jagemann Stamping Company's [Member] | ||||||||||||||||||
Acquisition stock issuances, shares | 4,750,000 | 4,750,000 | ||||||||||||||||
Acquisition stock issuances | $ 9,500,000 | |||||||||||||||||
Patents [Member] | ||||||||||||||||||
Acquisition stock issuances, shares | 600,000 | |||||||||||||||||
Acquisition stock issuances | $ 750,000 | |||||||||||||||||
Investors [Member] | ||||||||||||||||||
Number of common stock sold | 5,614,210 | 5,796,336 | 4,640,822 | |||||||||||||||
Number of common stock sold, value | $ 9,263,424 | $ 10,903,930 | $ 6,038,900 | |||||||||||||||
Employees [Member] | ||||||||||||||||||
Number of common stock issued for employee compensation | 120,000 | |||||||||||||||||
Number of common stock issued for employee compensation, value | $ 160,000 | |||||||||||||||||
Employees and Directors [Member] | ||||||||||||||||||
Number of common stock issued for employee compensation | 292,500 | |||||||||||||||||
Number of common stock issued for employee compensation, value | $ 482,624 | |||||||||||||||||
Employees and Board of Directors [Member] | ||||||||||||||||||
Number of common stock issued for employee compensation | 702,500 | |||||||||||||||||
Number of common stock issued for employee compensation, value | $ 1,172,974 | |||||||||||||||||
Shareholders [Member] | ||||||||||||||||||
Value of common stock shares | $ 100,000 | |||||||||||||||||
Paulson Investment Company [Member] | ||||||||||||||||||
Common stock issued for convertible notes | $ 42,300 | |||||||||||||||||
Debt instrument conversion rate | 3.00% | |||||||||||||||||
Legal Advisory and Consulting Fees [Member] | ||||||||||||||||||
Common stock issued for services, shares | 544,600 | |||||||||||||||||
Common stock issued for services | $ 678,625 | |||||||||||||||||
PRIVCO Agreement [Member] | ||||||||||||||||||
Acquisition stock issuances, shares | 604,371 | |||||||||||||||||
Number of common stock issued | 500,000 | |||||||||||||||||
Licensing Agreements [Member] | Jeff Rann [Member] | ||||||||||||||||||
Number of common stock issued | 100,000 | |||||||||||||||||
Placement Agreement [Member] | ||||||||||||||||||
Unit price of offering | $ 2 | $ 1.65 | ||||||||||||||||
Warrants exercise price | $ 2 | |||||||||||||||||
Warrant terms | 5 years | 5 years | ||||||||||||||||
Cash fee in percentage | 12.00% | 12.00% | ||||||||||||||||
Cash fee | $ 942,828 | $ 164,567 | $ 1,137,211 | $ 117,750 | ||||||||||||||
Number of warrant unissued as authorized | 673,705 | 71,364 | ||||||||||||||||
Fee payable in warrants shares | 459,414 | |||||||||||||||||
Placement Agreement [Member] | Maximum [Member] | June 28, 2019 [Member] | ||||||||||||||||||
Proceeds from private placement | $ 3,546,000 | |||||||||||||||||
Placement Agreement [Member] | Common Shares [Member] | ||||||||||||||||||
Common stock issued | 6,060,606 | |||||||||||||||||
Value of common stock shares | $ 10,000,000 | |||||||||||||||||
Number of common stock sold | 3,828,450 | 898,550 | 5,614,210 | 594,702 | ||||||||||||||
Cash fee in percentage | 12.00% | |||||||||||||||||
Placement Agreement [Member] | Warrants [Member] | ||||||||||||||||||
Number of common stock sold | 449,275 | 2,807,105 | 297,351 | |||||||||||||||
Number of common stock sold, value | $ 1,797,100 | $ 9,263,424 | $ 981,250 | |||||||||||||||
Warrants exercise price | $ 2 | |||||||||||||||||
Cash fee in percentage | 12.00% | |||||||||||||||||
Number of warrant to purchase shares of common stock | 1,914,225 | |||||||||||||||||
Warrant to purchase shares of common stock value | $ 7,656,900 | |||||||||||||||||
Placement Agreement [Member] | Warrants [Member] | ||||||||||||||||||
Warrant terms | 7 years | |||||||||||||||||
Cash fee in percentage | 12.00% | |||||||||||||||||
Placement Agreement [Member] | Investors [Member] | ||||||||||||||||||
Unit price of offering | $ 2 | |||||||||||||||||
Warrants exercise price | $ 2.40 | |||||||||||||||||
Warrant terms | 5 years | |||||||||||||||||
Offering consisted units description | Effectively, every two units purchased provided the investor with a five-year warrant at an exercise price of $2.40 per share. | |||||||||||||||||
Placement Agreement [Member] | Investors [Member] | Maximum [Member] | ||||||||||||||||||
Proceeds from private placement | $ 13,000,000 | |||||||||||||||||
Second Placement Agreement [Member] | ||||||||||||||||||
Value of common stock shares | $ 3,500,000 | |||||||||||||||||
Second Placement Agreement [Member] | Common Shares [Member] | ||||||||||||||||||
Number of common stock sold | 1,967,886 | |||||||||||||||||
Cash fee | $ 389,644 | |||||||||||||||||
Second Placement Agreement [Member] | Warrants [Member] | ||||||||||||||||||
Number of common stock sold | 983,943 | |||||||||||||||||
Number of common stock sold, value | $ 3,247,030 | |||||||||||||||||
Two Placement Agent Agreements [Member] | ||||||||||||||||||
Number of warrant to purchase shares of common stock | 236,145 | |||||||||||||||||
Warrant issued | 981,213 | |||||||||||||||||
Private Offering [Member] | ||||||||||||||||||
Number of warrant to purchase shares of common stock | 4,947,600 | |||||||||||||||||
Warrant purchase agreement terms | The warrants could be called when the average price of our common stock traded at $5.00 per share or higher, for a consecutive 30 day period. This call provision was met on May 21, 2018. | |||||||||||||||||
January 25, 2017 Offering [Member] | Warrant One [Member] | ||||||||||||||||||
Warrants exercise price | $ 2.50 | |||||||||||||||||
Number of warrant to purchase shares of common stock | 4,947,100 | |||||||||||||||||
January 25, 2017 Offering [Member] | Warrant Two [Member] | ||||||||||||||||||
Warrants exercise price | $ 1.25 | |||||||||||||||||
Number of warrant to purchase shares of common stock | 67,500 | |||||||||||||||||
January 25, 2017 Offering [Member] | Warrant Three [Member] | ||||||||||||||||||
Warrants exercise price | $ 0.50 | |||||||||||||||||
Number of warrant to purchase shares of common stock | 90,000 |
Capital Stock - Schedule of Out
Capital Stock - Schedule of Outstanding and Exercisable Stock Purchase Warrants (Details) - $ / shares | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2017 | |
Number of Shares Granted | 3,609,822 | 4,542,338 | ||
Warrants [Member] | ||||
Number of Shares, Outstanding Beginning | 8,143,115 | 5,262,338 | 8,872,160 | 720,000 |
Number of Shares Granted | 503,101 | 3,609,822 | 4,233,274 | 4,542,338 |
Number of Shares Exercised | (1,987,519) | |||
Number of Shares Forfeited or Cancelled | (2,974,800) | |||
Number of Shares Outstanding Ending | 8,646,216 | 8,872,160 | 8,143,115 | 5,262,338 |
Number of Shares Exercisable | 8,646,216 | 8,872,160 | 8,143,115 | 5,262,338 |
Weighted Average Exercise Price Outstanding Beginning | $ 2.09 | $ 2.50 | $ 2.23 | $ 2.22 |
Weighted Average Exercise Price Granted | 2.36 | 2.42 | 2.23 | 2.23 |
Weighted Average Exercise Price Exercised | 2.41 | |||
Weighted Average Exercise Price Forfeited or Cancelled | 2.47 | |||
Weighted Average Exercise Price Outstanding Ending | 2.11 | 2.23 | 2.09 | 2.50 |
Weighted Average Exercise Price Exercisable | $ 2.11 | $ 2.23 | $ 2.09 | $ 2.43 |
Weighted Average Life Remaining (years) Outstanding Beginning | 4 years 4 months 6 days | 1 year 9 months 7 days | 2 years 11 months 19 days | 1 year 11 months 12 days |
Weighted Average Life Remaining (years), Granted | 4 years 9 months 18 days | 5 years 1 month 16 days | 4 years 7 months 13 days | 1 year 10 months 25 days |
Weighted Average Life Remaining (years) Outstanding Ending | 4 years 1 month 16 days | 2 years 11 months 19 days | 4 years 4 months 6 days | 1 year 9 months 7 days |
Weighted Average Life Remaining (years), Exercisable | 4 years 1 month 16 days | 2 years 11 months 19 days | 4 years 4 months 6 days | 1 year 9 months 7 days |
Acquisitions (Details Narrative
Acquisitions (Details Narrative) - USD ($) | Mar. 15, 2019 | Oct. 05, 2018 | Sep. 27, 2018 | Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2017 | Dec. 13, 2018 | Aug. 20, 2018 |
Cash payment | $ 250,000 | |||||||
Contingent Consideration Payable | 1,250,000 | |||||||
Number of shares issued in acquisition, amount | $ 14,124,005 | |||||||
Loss on purchase | $ (2,118,154) | |||||||
SW Kenetics Inc [Member] | ||||||||
Cash payment | $ 50,000 | |||||||
Contingent Consideration Payable | $ 50,000 | |||||||
Patents [Member] | ||||||||
Number of shares issued in acquisition, shares | 600,000 | |||||||
Number of shares issued in acquisition, amount | $ 750,000 | |||||||
SW Kenetics Inc [Member] | ||||||||
Number of shares issued in acquisition, shares | 1,700,002 | |||||||
Cash payment | 250,000 | |||||||
Contingent Consideration Payable | 1,250,000 | |||||||
Number of shares issued in acquisition, amount | 7,723,166 | $ 4,624,005 | ||||||
Business combination bargain purchase gain recognized amount | 1,599,161 | |||||||
SW Kenetics Inc [Member] | Patents [Member] | Minimum [Member] | ||||||||
Fair value of intangible assets | 7,723,166 | |||||||
SW Kenetics Inc [Member] | Patents [Member] | Maximum [Member] | ||||||||
Fair value of intangible assets | $ 6,124,005 | |||||||
SW Kenetics Inc [Member] | Claw Back Provisions [Member] | ||||||||
Number of shares issued in acquisition, shares | 1,700,002 | 1,700,002 | ||||||
Cash payment | $ 250,000 | |||||||
Common stock weighted average share price | $ 2.72 | |||||||
SW Kenetics Inc [Member] | Restricted Stock [Member] | ||||||||
Number of shares issued in acquisition, shares | 1,700,002 | |||||||
Jagemann Stamping Company's [Member] | ||||||||
Number of shares issued in acquisition, shares | 4,750,000 | 4,750,000 | ||||||
Cash payment | $ 7,000,000 | |||||||
Contingent Consideration Payable | $ 10,400,000 | |||||||
Common stock weighted average share price | $ 2 | |||||||
Number of shares issued in acquisition, amount | $ 9,500,000 | |||||||
Loss on purchase | $ 2,118,154 |
Acquisitions - Schedule of Tota
Acquisitions - Schedule of Total Purchase Consideration on Intangible Assets (Details) | Sep. 27, 2018USD ($) |
Business Combinations [Abstract] | |
Cash | $ 250,000 |
Contingent Consideration payable | 1,250,000 |
Common stock | 1,700 |
Additional Paid-in Capital | 4,622,305 |
Fair Value of Patent | $ 6,124,005 |
Acquisitions - Schedule of Fair
Acquisitions - Schedule of Fair Value of Consideration Transferred (Details) - USD ($) | Mar. 15, 2019 | Sep. 27, 2018 |
Cash | $ 250,000 | |
Common stock | 1,700 | |
Additional Paid-in Capital | (4,622,305) | |
Total Consideration | $ 6,124,005 | |
Jagemann Stamping Company's [Member] | ||
Cash | $ 7,000,000 | |
Note Payable | 10,400,000 | |
Common stock | 4,750 | |
Additional Paid-in Capital | 9,495,250 | |
Total Consideration | $ 26,900,000 |
Acquisitions - Schedule of Allo
Acquisitions - Schedule of Allocation for Consideration (Details) - USD ($) | Mar. 31, 2019 | Mar. 15, 2019 | Sep. 27, 2018 |
Total Consideration | $ 6,124,005 | ||
Jagemann Stamping Company's [Member] | |||
Total Consideration | $ 26,900,000 | ||
Jagemann Stamping Company's [Member] | Equipment [Member] | |||
Total Consideration | $ 18,869,541 | 18,869,541 | |
Jagemann Stamping Company's [Member] | Intellectual Property [Member] | |||
Total Consideration | 1,773,436 | ||
Jagemann Stamping Company's [Member] | Customer Relationships [Member] | |||
Total Consideration | 1,666,774 | ||
Jagemann Stamping Company's [Member] | Tradename [Member] | |||
Total Consideration | 2,472,095 | ||
Jagemann Stamping Company's [Member] | Loss on Purchase [Member] | |||
Total Consideration | $ 2,118,154 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) | Jun. 30, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||||
Accrued payroll | $ 248,027 | $ 172,419 | $ 145,779 | |
Accrued interest | 35,422 | 74,896 | ||
Accrued FAET | 145,460 | 133,104 | 26,075 | |
Accrued professional fees | 74,300 | 99,255 | ||
Other accruals | 28,225 | 136,432 | 8,024 | |
Accrued liabilities | $ 667,383 | $ 531,434 | $ 541,210 | $ 254,774 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) | Mar. 25, 2019USD ($) | Dec. 16, 2016USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2019USD ($)ft² | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018USD ($)ft² | Jun. 05, 2019USD ($) | Mar. 29, 2019USD ($) |
Payment of note payable related party | $ 500,000 | $ 9,900,000 | $ 960,000 | $ 75,000 | |||||
Imputed interest | 46,340 | ||||||||
Debt instrument, description | The note bears interest per annum at approximately 4.6% payable in arrears monthly until October 1, 2019 when the interest rate increases to 9% per annum payable monthly until principal and accrued interest are paid in full. | ||||||||
Accrued interest | $ 22,196 | $ 18,226 | $ 52,065 | ||||||
April 30, 2019 [Member] | |||||||||
Debt maturity date | Apr. 1, 2020 | ||||||||
May 31, 2019 [Member] | |||||||||
Payment of note payable related party | $ 1,500,000 | ||||||||
Related Parties [Member] | |||||||||
Consulting fees | $ 69,800 | 168,000 | 212,700 | ||||||
Rent paid | $ 12,434 | $ 53,013 | 143,000 | ||||||
Reimbursement general corporate expenses | $ 121,500 | ||||||||
Scottsdale [Member] | |||||||||
Area of land | ft² | 21,000 | 5,000 | |||||||
Scottsdale [Member] | Month-to-Month Triple Net Lease [Member] | |||||||||
Area of land | ft² | 5,000 | ||||||||
Lease payment | $ 3,800 | ||||||||
Mansfield, LLC [Member] | |||||||||
Purchase of promissory note | $ 1,035,000 |
Operating Leases (Details Narra
Operating Leases (Details Narrative) (10-Q) - USD ($) | 3 Months Ended | |
Jun. 30, 2019 | Mar. 31, 2019 | |
Notes to Financial Statements | ||
Operating lease liability, current | $ 483,872 | |
Lease expense | 124,500 | |
Operating lease expense | 117,243 | |
Other lease associated expenses | $ 7,257 |
Operating Leases (Details Nar_2
Operating Leases (Details Narrative) | May 30, 2019USD ($) | May 03, 2019 | Apr. 30, 2019 | May 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2019USD ($)ft² | Dec. 31, 2017USD ($) | Mar. 25, 2019USD ($) | Dec. 31, 2018ft² |
Lease payment | $ 47,400 | $ 272,700 | $ 199,950 | ||||||
Debt instrument increase percentage | 9.00% | ||||||||
Repayment of debt | $ 1,500,000 | ||||||||
Promissory Note [Member] | |||||||||
Debt maturity date | Aug. 3, 2019 | Apr. 1, 2020 | |||||||
Debt instrument interest rate percentage | 2.56% | 4.60% | |||||||
Debt instrument increase percentage | 9.00% | ||||||||
Repayment of debt | $ 1,500,000 | ||||||||
Accrued interest | $ 22,196 | ||||||||
Jagemann Stamping Company's [Member] | |||||||||
Promissory note | $ 9,900,000 | $ 500,000 | |||||||
Payson [Member] | |||||||||
Area of land | ft² | 20,000 | ||||||||
Lease payment | $ 10,000 | ||||||||
Lease expiration period | Nov. 30, 2021 | ||||||||
Scottsdale [Member] | |||||||||
Area of land | ft² | 21,000 | 5,000 | |||||||
Lease payment | $ 17,702 | ||||||||
Lease expiration period | Dec. 31, 2023 | ||||||||
Lease description | Our executive offices are located in Scottsdale, Arizona where we lease 21,000 square feet of office and warehouse space for $17,702, which will increase by approximately 4.4% each year. | ||||||||
Scottsdale [Member] | Month-to-Month Triple Net Lease [Member] | |||||||||
Area of land | ft² | 5,000 | ||||||||
Lease payment | $ 3,800 | ||||||||
Manitowoc [Member] | |||||||||
Area of land | ft² | 50,000 | ||||||||
Lease payment | $ 32,844 | ||||||||
Lease expiration period | Mar. 31, 2026 |
Operating Leases - Schedule of
Operating Leases - Schedule of Future Minimum Rental Payments for Operating Leases (Details) | Mar. 31, 2019USD ($) |
Payson [Member] | |
2020 | $ 120,000 |
2021 | 120,000 |
2022 | 80,000 |
Total | 320,000 |
Scottsdale [Member] | |
2020 | 216,591 |
2021 | 226,587 |
2022 | 236,583 |
2023 | 246,580 |
2024 | 147,240 |
Total | 1,073,581 |
Manitowoc [Member] | |
2020 | 394,128 |
2021 | 394,128 |
2022 | 394,128 |
2023 | 394,128 |
2024 | 394,128 |
2025 | 394,128 |
2026 | 394,128 |
Total | $ 2,758,896 |
Operating Leases - Schedule of
Operating Leases - Schedule of Futures Minimum Lease Payments Under Non-cancellable Leases (Details) (10-Q) | Jun. 30, 2019USD ($) |
Notes to Financial Statements | |
2020 | $ 519,922 |
2021 | 693,229 |
2022 | 693,229 |
2023 | 693,229 |
2024 | 640,118 |
Thereafter | 2,168,932 |
Total lease payments | 5,408,659 |
Less: Interest | (1,001,737) |
Present value of lease liabilities | $ 4,406,922 |
Operating Leases - Summary of R
Operating Leases - Summary of Right of Use Assets and Operating Lease Liabilities (Details) (10-Q) - USD ($) | Jun. 30, 2019 | Mar. 31, 2019 |
Notes to Financial Statements | ||
Current portion | $ 483,872 | |
Long-term, net of current portion | 3,923,050 | |
Total operating lease liabilities | $ 4,406,922 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Net operating loss carryforwards | $ 13,229,231 | ||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2036 | ||
Income tax examination description | On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act reduces the corporate tax rate to 21% effective January 1, 2018. Consequently, we have recorded an adjustment to the deferred tax provision for the year ended December 31, 2017. | ||
Statutory federal income rate | 21.00% | 21.00% | 34.00% |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Benefit (expense) for Income Taxes (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Net (Loss) | $ (1,797,228) | $ (11,709,412) | $ (5,788,901) | ||
Benefit (expense) for income taxes computed using the statutory rate of 21% in 2019 and 2018 and 34% in 2017 | 377,418 | 2,458,977 | 1,968,226 | ||
Non-deductible expense | (161,864) | (918,417) | (360,952) | ||
Re-measurement of deferred income taxes due to tax reform | (632,683) | ||||
Change in valuation allowance | (215,554) | (1,540,560) | (974,591) | ||
Provision for income taxes |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | |||
Total deferred tax assets - net operating losses | $ 2,778,139 | $ 1,237,579 | $ 1,022,025 |
Deferred tax liabilities | |||
Net deferred tax assets | 2,778,139 | 1,237,579 | 1,022,025 |
Valuation allowance | (2,778,139) | (1,237,579) | (1,022,025) |
Deferred Tax Assets Net |
Income Taxes - Summary of Opera
Income Taxes - Summary of Operating Loss Carryforwards (Details) | Mar. 31, 2019USD ($) |
Income Tax Disclosure [Abstract] | |
2036 | $ 139,512 |
2037 | 4,727,276 |
Total | 4,866,788 |
Non-Expiring NOL 2018 | 1,026,447 |
Non-Expiring NOL 2019 | 7,335,996 |
Total NOL Carryforward | $ 13,229,231 |
Intangible Assets (Details Narr
Intangible Assets (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 36,961 | $ 196,877 | $ 70,999 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2017 | Jun. 30, 2019 | |
Streak Visual Ammunition patent [Member] | ||||
Licensing agreement, life | 11 years 2 months 12 days | 11 years 2 months 12 days | 11 years 2 months 12 days | |
Intangible assets, Gross | $ 950,000 | $ 950,000 | $ 950,000 | |
SWK Patent Acquisition [Member] | ||||
Licensing agreement, life | 15 years | |||
Intangible assets, Gross | $ 6,124,005 | |||
Customer Relationships [Member] | ||||
Licensing agreement, life | 3 years | |||
Intangible assets, Gross | $ 1,666,774 | |||
Intellectual Property [Member] | ||||
Licensing agreement, life | 3 years | |||
Intangible assets, Gross | $ 1,773,436 | |||
Tradename [Member] | ||||
Licensing agreement, life | 5 years | |||
Intangible assets, Gross | $ 2,472,095 | |||
Licensing Agreements [Member] | ||||
Intangible assets, Gross | 250,000 | 250,000 | 250,000 | |
Accumulated amortization | (58,333) | (108,833) | (45,833) | $ (120,833) |
Intangible assets, net | 191,667 | 141,667 | 204,167 | |
Patents [Member] | ||||
Intangible assets, Gross | 950,000 | 7,074,005 | 950,000 | |
Accumulated amortization | (49,627) | (134,701) | (25,166) | $ (191,089) |
Intangible assets, net | $ 900,373 | 6,939,304 | $ 924,834 | |
Other Intangible Assets [Member] | ||||
Intangible assets, Gross | 5,912,305 | |||
Accumulated amortization | (61,803) | |||
Intangible assets, net | $ 5,850,502 | |||
Jesse James [Member] | ||||
Licensing agreement, life | 5 years | 5 years | 5 years | |
Jesse James [Member] | Licensing Agreements [Member] | ||||
Intangible assets, Gross | $ 125,000 | $ 125,000 | $ 125,000 | |
Jeff Rann [Member] | ||||
Licensing agreement, life | 5 years | 5 years | 5 years | |
Jeff Rann [Member] | Licensing Agreements [Member] | ||||
Intangible assets, Gross | $ 125,000 | $ 125,000 | $ 125,000 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) (10-Q) - USD ($) | Aug. 13, 2019 | Dec. 15, 2016 | Jun. 28, 2019 | Mar. 29, 2019 |
Number of stock sold | 475,681 | |||
Warrants issued to purchase common stock | 365,523 | |||
Warrants exercise price | $ 2.40 | |||
Accrued commissions | $ 215,652 | |||
Warrants payable | $ 107,826 | |||
Subsequent Event [Member] | Common Shares [Member] | ||||
Number of stock sold | 47,500 | |||
Number of stock sold, value | $ 95,000 | |||
Subsequent Event [Member] | Warrants [Member] | ||||
Warrants issued to purchase common stock | 23,750 | |||
Warrants exercise price | $ 2.40 | |||
Subsequent Event [Member] | Warrants [Member] | Placement Agent [Member] | ||||
Accrued commissions | $ 11,400 | |||
Warrants payable | 5,700 | |||
Subsequent Event [Member] | FSW Funding [Member] | ||||
Proceeds from accounts receivable financing | $ 1,200,000 |
Subsequent Events (Details Na_2
Subsequent Events (Details Narrative) - USD ($) | Jun. 28, 2019 | Jun. 05, 2019 | May 30, 2019 | May 03, 2019 | May 02, 2019 | Apr. 30, 2019 | May 31, 2019 | Jun. 30, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2017 | Mar. 29, 2019 |
Debt instrument increase percentage | 9.00% | |||||||||||
Repayment of debt | $ 1,500,000 | |||||||||||
Convertible Promissory Notes | $ 300,000 | $ 1,575,000 | $ 1,410,000 | |||||||||
Conversion of stock, shares issued price per share | $ 2.50 | |||||||||||
Common stock issued | 898,550 | 1,256,833 | 5,906,710 | 15,618,572 | 6,733,793 | |||||||
Stock issued during period, value | $ 1,797,100 | $ 1,797,100 | $ 9,263,424 | $ 10,903,930 | $ 6,038,900 | |||||||
Number of warrants outstanding | 449,275 | 8,143,115 | 365,523 | |||||||||
Warrants exercisable | $ 2.40 | |||||||||||
Accrued commissions | $ 215,652 | |||||||||||
Warrants payable | $ 107,826 | |||||||||||
Common stock issued for services, shares | 63,492 | 63,492 | 5,000 | |||||||||
Common stock issued for services | $ 209,346 | $ 200,000 | $ 22,350 | |||||||||
FSW Funding [Member] | ||||||||||||
Credit facility, maximum | $ 5,000,000 | |||||||||||
Credit facility, percentage | 85.00% | |||||||||||
Credit facility, commitment fee percentage | 4.50% | |||||||||||
Credit facility, prime rate | 3.00% | |||||||||||
Convertible Promissory Notes | $ 300,000 | |||||||||||
Accrued interest | $ 18,228 | |||||||||||
Conversion of stock, shares issued | 127,291 | |||||||||||
Conversion of stock, shares issued price per share | $ 2.50 | |||||||||||
Accrued conversion charge | $ 9,000 | |||||||||||
Accrued conversion fee percentage on principal converted | 3.00% | |||||||||||
AZ Virtual CFO, LLC [Member] | ||||||||||||
Sale of assets, purchase price | $ 50,000 | |||||||||||
Promissory Note [Member] | ||||||||||||
Debt instrument, maturity date | Aug. 3, 2019 | Apr. 1, 2020 | ||||||||||
Debt instrument interest rate percentage | 2.56% | 4.60% | ||||||||||
Debt instrument increase percentage | 9.00% | |||||||||||
Repayment of debt | $ 1,500,000 | |||||||||||
Promissory note | $ 375,000 | |||||||||||
Accrued interest | $ 22,196 |