Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 06, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | PURADYN FILTER TECHNOLOGIES INC | |
Entity Central Index Key | 1,019,787 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 69,016,468 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,018 |
CONDENSED BALANCE SHEETS
CONDENSED BALANCE SHEETS - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash | $ 184,607 | $ 54,438 |
Accounts receivable, net of allowance for uncollectible accounts of $17,000 and $17,000, respectively | 568,770 | 270,896 |
Inventories, net | 512,923 | 400,764 |
Prepaid expenses and other current assets | 147,575 | 69,355 |
Total current assets | 1,413,875 | 795,453 |
Property and equipment, net | 35,274 | 45,327 |
Other noncurrent assets | 576,412 | 532,540 |
Total assets | 2,025,561 | 1,373,320 |
Current liabilities: | ||
Accounts payable | 332,609 | 186,696 |
Accrued liabilities | 420,734 | 362,804 |
Sales incentives | 99,128 | |
Capital lease obligation | 1,567 | 3,443 |
Deferred compensation | 1,577,271 | 1,626,003 |
Notes Payable - stockholders | 600,000 | 7,988,349 |
Total Current Liabilities | 2,932,181 | 10,266,423 |
Notes Payable - stockholders | 7,989,622 | |
Total Liabilities | 10,921,803 | 10,266,423 |
Commitments and contingencies (Note 12) | ||
Stockholders' deficit: | ||
Preferred stock, $.001 par value: Authorized shares - 500,000; None issued and outstanding | ||
Common stock, $.001 par value, Authorized shares - 100,000,000; Issued and outstanding 69,016,468 and 69,016,468, respectively | 69,016 | 69,016 |
Additional paid-in capital | 53,623,892 | 53,599,160 |
Accumulated deficit | (62,589,150) | (62,561,279) |
Total stockholders' deficit | (8,896,242) | (8,893,103) |
Total liabilities and stockholders' deficit | $ 2,025,561 | $ 1,373,320 |
CONDENSED BALANCE SHEETS (Paren
CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for uncollectible accounts of accounts receivable | $ 17,000 | $ 17,000 |
Preferred stock, par value per share | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value per share | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 69,016,468 | 69,016,468 |
Common stock, shares outstanding | 69,016,468 | 69,016,468 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,152,462 | $ 575,170 | $ 2,038,202 | $ 1,264,160 |
Cost of products sold | 690,959 | 536,399 | 1,195,401 | 979,111 |
Gross Profit | 461,503 | 38,771 | 842,801 | 285,049 |
Costs and expenses: | ||||
Salaries and wages | 196,450 | 204,151 | 389,718 | 417,088 |
Selling and administrative | 175,513 | 150,021 | 325,583 | 293,361 |
Total operating costs | 371,963 | 354,172 | 715,301 | 710,449 |
Income / (Loss) from operations | 89,540 | (315,401) | 127,500 | (425,400) |
Other income (expense): | ||||
Interest expense | (80,668) | (67,624) | (155,371) | (133,169) |
Total other expense, net | (80,668) | (67,624) | (155,371) | (133,169) |
Net income / (loss) before income tax expense | 8,872 | (383,025) | (27,871) | (558,569) |
Provision for income taxes | ||||
Net Income / (loss) | $ 8,872 | $ (383,025) | $ (27,871) | $ (558,569) |
Basic income / (loss) per common share | $ 0 | $ (0.01) | $ 0 | $ (0.01) |
Diluted income / (loss) per common share | $ 0 | $ (0.01) | $ 0 | $ (0.01) |
Weighted average common shares outstanding (basic and diluted) | 69,016,468 | 69,016,468 | 69,016,468 | 69,016,468 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating activities | ||
Net loss | $ (27,871) | $ (558,569) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 20,611 | 15,887 |
Provision for slow moving inventory | 13,610 | 121,998 |
Compensation expense on stock-based arrangements with employees and consultants | 24,733 | 21,397 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (297,874) | (72,538) |
Inventories | (125,769) | 86,629 |
Prepaid expenses and other current assets | (78,219) | (1,798) |
Other assets | 850 | |
Sales incentives | (99,128) | |
Accounts payable | 145,910 | (4,527) |
Deferred compensation | (48,732) | 7,819 |
Accrued liabilities | 57,930 | 27,994 |
Net cash used in operating activities | (413,949) | (355,708) |
Investing activities | ||
Capitalized patent costs | (55,279) | (33,703) |
Purchases of property and equipment | (5,245) | |
Net cash used in investing activities | (55,279) | (38,948) |
Financing activities | ||
Proceeds from issuance of notes payable to stockholders | 601,273 | 440,000 |
Repayment of note payable to stockholder | (50,000) | |
Payment of capital lease obligations | (1,876) | (1,878) |
Net cash provided by financing activities | 599,397 | 388,122 |
Net increase / (decrease) in cash | 130,169 | (6,534) |
Cash at beginning of period | 54,438 | 12,806 |
Cash at end of period | 184,607 | 6,272 |
Supplemental cash flow information: | ||
Cash paid for interest | 109,167 | 120,669 |
Forgiveness of stockholder loan and accrued interest | $ 26,373 |
Basis of Presentation, Going Co
Basis of Presentation, Going Concern and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation, Going Concern and Summary of Significant Accounting Policies | 1. Basis of Presentation, Going Concern and Summary of Significant Accounting Policies Organization Puradyn Filter Technologies Incorporated (the Company), a Delaware corporation, is engaged in the manufacturing, distribution and sale of bypass oil filtration systems under the trademark Puradyn ® Basis of Presentation The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim information and with the instructions to Form 10-Q and Regulation S-K. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments consisting of a normal and recurring nature considered necessary for a fair presentation have been included. Operating results for the three-month and six-month periods ended June 30, 2018 may not necessarily be indicative of the results that may be expected for the year ending December 31, 2018. For further information, refer to the Company's financial statements and footnotes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2017. Revenue Recognition The Company recognizes revenue from product sales to customers, distributors and resellers when products that do not require further services or installation by the Company are shipped, when there are no uncertainties surrounding customer acceptance and when collectability is reasonably assured. Cash received by the Company prior to shipment is recorded as deferred revenue. Sales are made to customers under terms allowing certain limited rights of return and other limited product and performance warranties for which provision has been made in the accompanying financial statements. Amounts billed to customers in sales transactions related to shipping and handling, represent revenues earned for the goods provided and are included in net sales. Costs of shipping and handling are included in cost of products sold. The Company accounts for revenue in accordance with Topic 606 which was adopted at the beginning of fiscal year 2018 using the modified retrospective method. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Company did not recognize any cumulative-effect adjustment to retained earnings upon adoption as the effect was immaterial. The adoption of these standards did not have a material impact on the Company's condensed statements of operations in during the six months ended June 30, 2018. Use of Estimates The preparation of condensed financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the condensed financial statements and accompanying notes. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents include all highly liquid investments with original maturities of three months or less at the time of purchase. At June 30, 2018 and December 31, 2017, the Company did not have any cash equivalents. Fair Value of Financial Instruments The carrying amounts of cash, accounts receivable, prepaid expenses and other assets, accounts payable, accrued liabilities and notes payable to stockholder approximate their fair values as of June 30, 2018 and December 31, 2017, respectively, because of their short-term natures. Accounts Receivable Accounts receivable are recorded at fair value on the date revenue is recognized. The Company provides allowances for doubtful accounts for estimated losses resulting from the inability of its customers to repay their obligation. If the financial condition of the Company's customers were to deteriorate, resulting in an impairment of their ability to repay, additional allowances may be required. The Company provides for potential uncollectible accounts receivable based on specific customer identification and historical collection experience adjusted for existing market conditions. If market conditions decline, actual collection experience may not meet expectations and may result in decreased cash flows and increased bad debt expense. The policy for determining past due status is based on the contractual payment terms of each customer, which are generally net 30 or net 60 days. Once collection efforts by the Company and its collection agency are exhausted, the determination for charging off uncollectible receivables is made. Inventories Inventories are stated at the lower of cost or market using the first in, first out (FIFO) method. Production costs, consisting of labor and overhead, are applied to ending finished goods inventories at a rate based on estimated production capacity. Excess production costs are charged to cost of products sold. Provisions have been made to reduce excess or obsolete inventories to their net realizable value. Property and Equipment Property and equipment are stated at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful lives of the related assets, except for assets held under capital leases, for which the Company records depreciation and amortization based on the shorter of the assets useful life or the term of the lease. The estimated useful lives of property and equipment range from 3 to 5 years. Upon sale or retirement, the cost and related accumulated depreciation and amortization are eliminated from their respective accounts, and the resulting gain or loss is included in results of operations. Repairs and maintenance charges, which do not increase the useful lives of the assets, are charged to operations as incurred. Patents Patents are stated at cost. Amortization is provided using the straight-line method over the estimated useful lives of the patents. The estimated useful lives of patents are 17 to 20 years. Upon retirement, the cost and related accumulated amortization are eliminated from their respective accounts, and the resulting gain or loss is included in results of operations. Impairment of Long-Lived Assets Management assesses the recoverability of its long-lived assets when indicators of impairment are present. If such indicators are present, recoverability of these assets is determined by comparing the undiscounted net cash flows estimated to result from those assets over the remaining life to the assets net carrying amounts. If the estimated undiscounted net cash flows are less than the net carrying amount, the assets would be adjusted to their fair value, based on appraisal or the present value of the undiscounted net cash flows. Product Warranty Costs As required by FASB ASC 460, Guarantors Guarantees The Company accrues for warranty costs based on the expected material and labor costs to provide warranty replacement products. The methodology used in determining the liability for warranty cost is based upon historical information and experience. The Company's warranty reserve is included in accrued liabilities in the accompanying condensed financial statements and is calculated as the gross sales multiplied by the historical warranty expense return rate. For the six months ended June 30, 2018, there was no change to the reserve for warranty liability as the reserve balance was deemed sufficient to absorb any warranty costs that might be incurred from the sales activity for the period. The following table shows the changes in the aggregate product warranty liability for the six -months ended June 30, 2018: Balance as of December 31, 2017 $ 20,000 Less: Payments made Add: Provision for current period warranties Balance as of June 30, 2018 (unaudited) $ 20,000 Advertising Costs Advertising costs are expensed as incurred. During the three and six months ended June, 2018 and 2017, advertising costs incurred by the Company totaled approximately $2,904 and $3,333, $0 and $0, respectively, and are included in selling and administrative expenses in the accompanying statements of operations. Engineering and Development Research and development costs are expensed as incurred. During the three and six months ended June 30, 2018 and 2017, engineering and development costs incurred by the Company totaled $1,384 and $2,813, and $1,575 and $1,575, respectively, and are included in selling and administrative expenses in the accompanying statements of operations. Income Taxes The Company accounts for income taxes under FASB ASC 740, Income Taxes Stock Option Plans We adopted FASB ASC 718, Compensation-Stock Compensation, The Company leases its employees from a payroll leasing company. The Companys leased employees meet the definition of employees as specified by FASB Interpretation No. 44 for purposes of applying FASB ASC 718. Stock options and warrants issued to consultants and other non-employees as compensation for services provided to the Company are accounted for based on the fair value of the services provided or the estimated fair market value of the option or warrant, whichever is more reliably measurable in accordance with Equity, , Compensation-Stock Compensation, Credit Risk The Company minimizes the concentration of credit risk associated with its cash by maintaining its cash with high quality federally insured financial institutions. However, cash balances in excess of the FDIC insured limit of $250,000 are at risk. At June 30, 2018 and December 31, 2017, respectively, the Company did not have cash balances above the FDIC insured limit. The Company performs ongoing evaluations of its significant trade accounts receivable customers and generally does not require collateral. An allowance for doubtful accounts is maintained against trade accounts receivable at levels which management believes is sufficient to cover probable credit losses. The Company also has some customer concentrations, and the loss of business from one or a combination of these significant customers, or an unexpected deterioration in their financial condition, could adversely affect the Companys operations. Please refer to Note 15 for further details. Basic and Diluted Loss Per Share The Company uses ASC 260-10, "Earnings Per Share" for calculating the basic and diluted income (loss) per share. The Company computes basic income (loss) per share by dividing net income (loss) and net income (loss) attributable to common shareholders by the weighted average number of common shares outstanding. As of June 30, 2018 and 2017, there were 13,276,412 and 4,497,662 shares issuable upon the exercise of options and warrants, respectively. Common stock equivalent shares are excluded from the computation of net loss per share if their effect is anti-dilutive. The Company had net income for the three month period ended June 30, 2018. A separate computation of diluted earnings per share is presented using the treasury stock method and the common stock equivalents did not have any effect on net income per share. Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, " Revenue from Contracts with Customers (Topic 606) Revenue Recognition The Company adopted these standards at the beginning of fiscal year 2018 using the modified retrospective method. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The adoption of these standards did not have a material impact on the Company's Condensed Statements of Operations during the six months ended June 30, 2018. All other newly issued accounting pronouncements not yet effective have been deemed either immaterial or not applicable. |
Going Concern
Going Concern | 6 Months Ended |
Jun. 30, 2018 | |
Going Concern [Abstract] | |
Going Concern | 2. Going Concern The Company's financial statements have been prepared on the assumption that it will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company has sustained losses since inception and used net cash in operations of $413,949 and $355,708 during the six-months ended June 30, 2018 and 2017, respectively. As a result, the Company has had to rely stockholder loans and related parties to fund its activities to date. These recurring operating losses, liabilities exceeding assets and the reliance on cash inflows from two stockholders led the Companys independent registered public accounting firm, Liggett & Webb, P.A., to include a statement in its audit report relating to the Companys audited financial statements for the year ended December 31, 2017 expressing substantial doubt as to the Companys ability to continue as a going concern. The financial statements do not include any adjustments that may result from the outcome of this uncertainty. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | 3. Inventories Inventories consisted of the following at June 30, 2018 and December 31, 2017, respectively: June 30, 2018 December 31, 2017 (Unaudited) Raw materials $ 1,036,774 $ 901,600 Work In Progress 125,932 Finished goods 133,375 16,848 Valuation allowance (657,226 ) (643,616 ) Inventory, net $ 512,923 $ 400,764 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 6 Months Ended |
Jun. 30, 2018 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepaid Expenses and Other Current Assets | 4. Prepaid Expenses and Other Current Assets At June 30, 2018 and December 31, 2017, prepaid expenses and other current assets consisted of the following: June 30, 2018 December 31, 2017 (Unaudited) Prepaid expenses $ 86,740 $ 26,648 Deposits 60,835 42,707 $ 147,575 $ 69,355 |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 5. Property and Equipment At June 30, 2018 and December 31, 2017, property and equipment consisted of the following: June 30, 2018 December 31, 2017 (Unaudited) Machinery and equipment $ 1,045,217 $ 1,045,217 Furniture and fixtures 56,558 56,558 Leasehold improvements 152,322 152,322 Software and website development 88,842 88,842 Computer hardware and software 153,249 153,249 1,496,188 1,496,188 Less accumulated depreciation and amortization (1,460,914 ) (1,450,861 ) $ 35,274 $ 45,327 Depreciation and amortization expense of property and equipment for the three and six months ended June 30, 2018 and 2017 is $5,026 and $10,053, and $4,420 and $9,097, respectively. |
Patents
Patents | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Patents | 6. Patents Included in other assets at June 30, 2018 and December 31, 2017 are capitalized patent costs as follows: June 30, 2018 December 31, 2017 (Unaudited) Patent costs $ 614,151 $ 558,873 Less accumulated amortization (72,709 ) (62,153 ) $ 541,442 $ 496,720 Amortization expense for the three and six months ended June 30, 2018 and 2017 amounted to $6,823, $10,558, and $3,395 and $6,790, respectively. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2018 | |
Leases [Abstract] | |
Leases | 7. Leases The Company leases its office and warehouse facilities in Boynton Beach, Florida under a long-term non-cancellable lease agreement, which contains renewal options and rent escalation clauses. As of June 30, 2018, a security deposit of $34,970 is included in noncurrent assets in the accompanying balance sheet. On September 27, 2012 the Company entered into a non-cancellable six-year lease agreement for the same facilities commencing August 1, 2013 and expiring July 31, 2019. The total minimum lease payments over the term of the current lease amount to $180,826. On June 29, 2018, the Company entered into a non-cancellable five-year lease for the same facilities commencing August 1, 2019 and expiring July 31, 2024. The lease will require an initial rent of $14,899 per month, beginning August 1, 2019 for the first year, increasing by 3% per year to $16,769 per month in the fifth year. In addition, the Company is responsible for all operating expenses and utilities. As part of the lease the landlord has agreed to reimburse the Company $58,000 towards the replacement of air conditioning units, upon written request. As of June 30, 2018 the Company has not requested or received any of the reimbursement. In January 2015 the Company entered into a capital lease for office equipment in the amount of $15,020. As of June 30, 2018 and December 31, 2017 the balance under capital lease obligations was $1,567 and $3,443, respectively. |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Jun. 30, 2018 | |
Accrued Liabilities [Abstract] | |
Accrued Liabilities | 8. Accrued Liabilities At June 30, 2018 and December 31, 2017, accrued liabilities consisted of the following: June 30, 2018 December 31, 2017 (Unaudited) Accrued vacation and benefits $ 68,107 $ 69,025 Accrued expenses relating to vendors and others 156,309 136,681 Accrued warranty costs 20,000 20,000 Accrued interest payable relating to stockholder notes 160,591 115,039 Deferred rent 15,727 22,059 $ 420,734 $ 362,804 |
Deferred Compensation
Deferred Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Compensation Related Costs [Abstract] | |
Deferred Compensation | 9. Deferred Compensation Deferred compensation represents amounts owed to three employees for salary. As there is no written agreement with these employees which memorializes the terms of the salary deferral, only a voluntary election to do so. It is possible that the employees could demand payment in full at any time. As of June 30, 2018 and December 31, 2017 the Company recorded deferred compensation of $1,577,271 and $1,626,003, respectively. |
Sales Incentives
Sales Incentives | 6 Months Ended |
Jun. 30, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Sales Incentives | 10. Sales Incentives The Company entered into an exclusive distribution agreement for the worldwide rights to sell its product in the oil and gas industry effective September 7, 2017. The agreement included an incentive program that rewarded credits toward future product redeemable only if targeted quarterly goals are achieved. The incentive-earning period ended on June 30, 2018, and no incentives were earned. The exclusivity agreement continues at a minimum through the end of 2018. |
Notes Payable to Stockholders -
Notes Payable to Stockholders - Related Party | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Notes Payable to Stockholders - Related Party | 11. Notes Payable to Stockholders Related Party On March 28, 2002 the Company executed a binding agreement with one of its principal stockholders, who is also the former Chief Executive Officer, now Executive Chairman of the Board, to fund up to $6.1 million. Under the terms of the agreement, the Company can draw amounts as needed to fund operations. Amounts drawn bear interest at the BBA LIBOR Daily Floating Rate plus 1.4 percentage points (3.79% and 3.61% per annum at June 30, 2018 and 2017 respectively), payable monthly and were to become due and payable on December 31, 2005 or upon a change in control of the Company or the consummation of any other financing over $7.0 million. Beginning in March 2006, annually, through February 2012, the maturity date for the agreement was extended annually from December 31, 2007, to December 31, 2018. On May 9, 2018 he extended the maturity rate to December 31, 2019. During the six months ended June 30, 2018 we borrowed an additional $26,272 from our Executive Chairman, together with an $325,000 under a demand note not covered by this line of credit. This demand note bears interest at 4% per annum. As of June 30, 2018 and December 31, 2017 we owed him an aggregate of $8,314,622 and $7,988,349, respectively, which represented approximately 75% and 78% of our total liabilities, respectively. On May 9, 2018 he extended the maturity date to December 31, 2019. While he has continued to fund our working capital needs at reduced levels and extend the due date of the obligation for an additional year, he is under no contractual obligation to do so. During 2017 he advised us he does not expect to continue to provide working capital advances to us at historic amounts. If we are unable to meet our obligation to our Executive Chairman prior to maturity, he has advised us that he may forgive all, or substantially all, of this obligation. In November 2017, the Company received an additional loan in the amount of $25,000 from a former member of the Board of Directors. The loan bears interest at a rate of 5% per annum and is due December 31, 2018. From April 1, 2018 through May 15, 2018, the Company received additional loans in the amount of $250,000 from a related party to both the Companys Executive Chairman and its Chief Executive Officer, as advances for working capital needs. The amounts are non-interest bearing and are payable upon demand. On July 15, 2018, $250,000 was repaid. During the three and six months ended June 30, 2018 and 2017, the Company incurred interest expense of $80,354 and $65,083, and $154,719 and $131,841, respectively, on its loan from the Executive Chairman of the Board, which is included in interest expense in the accompanying statements of operations as well as interest expense of $310 and $620 for the three and six months ended June 30, 2018 related to the loan from one if its former Board members. These amounts, in addition to interest expense of $4 and $481, and $32 and $575 for the three and six months ended June 30, 2018 and 2017, respectively, related to capital lease obligations, financing and loans from a stockholder. Notes payable and capital leases consisted of the following at June 30, 2018 and December 31, 2017: June 30, 2018 December 31, 2017 Notes payable to stockholders $ 8,589,622 $ 7,988,349 Capital lease obligation 1,567 3,443 8,591,189 7,991,792 Less: current maturities (601,567 ) (7,991,792 ) Long-term maturities $ 7,989,622 $ Maturities of Long Term Obligations for Five Years and Beyond The minimum annual principal payments of notes payable and capital lease obligations at June 30, 2018 were: 2018 $ 601,567 2019 7,989,622 $ 8,591,189 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies Agreements On May 18, 2018 we entered into a letter agreement with Mr. Edward S. Vittoria pursuant to he agreed to be employed by us as our Chief Executive Officer for an initial term ending May 31, 2019, which such term may be extended by mutual agreement upon terms and conditions to be mutually agreed upon to prior to the expiration of such initial term. Under the terms of the letter agreement we agreed to pay him: (i) an annual base salary of $200,000, payable in accordance with our normal payroll practices; (ii) an annual cash bonus to be awarded by our Board of Directors in January in a minimum amount of $50,000; and (iii) granted him options to purchase 6,500,000 shares of our common stock, vesting one-third in arrears, at an exercise price equal to fair market value on the date of grant pursuant to the terms and conditions of our 2018 Equity Compensation Plan. He is also entitled to: (i) participate in all of our benefit programs currently existing or hereafter made available to executive and/or salaried; (ii) an amount of annual paid vacation consistent with his position and length of service to us; and (iii) reimbursement for all reasonable, out of-pocket expenses incurred by him On September 7, 2017 the Company entered into an exclusive distribution agreement with NOW, Inc. (DNOW) for the worldwide rights to sell its product in the oil and gas industry. As part of this agreement, the distributor could receive sales incentive credits toward future product, based upon the difference in current pricing and new pricing detailed in the agreement. The credits toward future product are only redeemable if targeted quarterly goals are achieved. If the goals are not achieved the credits will be carried forward and are redeemable when the quarterly goals are achieved. Refer to Note 10. The incentive-earning period ended on June 30, 2018, and no incentives were earned. The exclusivity agreement continues at a minimum through the end of 2018. On September 27, 2012, the Company entered into a 72 month lease for its corporate offices and warehouse facility in Boynton Beach, Florida. On June 29, 2018, the lease was extended an additional 5 years. The renewed lease commences August 1, 2019 and expiring on July 31, 2024 and requires an initial rent of $14,899 per month beginning in the second month of the first year, increasing in varying amounts to $16,769 per month in the fifth year. In addition, the Company is responsible for all operating expenses and utilities. As part of the lease the landlord has agreed to reimburse the Company $58,000 towards the replacement of air conditioning units, upon written request. As of June 30, 2018 the Company has not requested or received any of the reimbursement. On October 20, 2009, the Company entered into a consulting agreement for management and strategic development services with Boxwood Associates, Inc., pursuant to which the Company pays a $2,000 monthly service fee. The contract remains in effect until terminated by either party providing 30 days written notice. A former member of our board of directors and a significant stockholder is President of Boxwood Associates, Inc. Refer to Note 14. |
Stock Options and Warrants
Stock Options and Warrants | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Options and Warrants | 13. Stock Options and Warrants For the three and six months ended June 30, 2018 and June 30, 2017, respectively, the Company recorded non-cash stock-based compensation expense of $14,392 and $24,733, and $10,517 and $21,397, respectively, relating to employee stock options and warrants issued for consulting services. Stock options and warrants issued to consultants and other non-employees as compensation for services provided to the Company are accounted for based on the fair value of the services provided or the estimated fair market value of the option or warrant, whichever is more reliably measurable in accordance with FASB ASC 505, Equity, Compensation Stock Compensation On April 12, 2018 the Board of Directors approved the adoption of a 2018 Equity Compensation Plan. The Company has reserved 10,000,000 shares of our common stock for grants under this plan. The 2018 Plan provides for the granting of both incentive and non-qualified stock options to key personnel, including officers, directors, consultants and advisors to the Company, at the discretion of the Board of Directors. Each plan limits the exercise price of the options at no less than the quoted market price of the common stock on the date of grant. The option term is determined by the Board of the Directors, provided that no option may be exercisable more than 10 years after the date of its grant and, in the case of an incentive option granted to an eligible employee owning more than 10% of the Companys common stock, no more than five years after the date of the grant. Generally, under both plans, options to employees vest over three years at 33.33% per annum unless the Board of Directors designates a different vesting schedule. On April 12, 2018, the Company granted employees and directors options to purchase 4,475,000 shares of the Companys common stock, at exercise prices ranging from $0.0189 to $0.208 per share. The options vest over a three-year period and expire April 12, 2028. The fair value of the options totaled $69,989 using the Black-Scholes option pricing model with the following assumptions: i) risk free interest rate of 2.64%, ii) expected life of 5 years, iii) dividend yield of 0%, iv) expected volatility of 217%. On April 30, 2018 our Chairman and Former CEO voluntarily cancelled the grant on April 12, 2018 of options awarded him to purchase an aggregate of 1,400,000 shares of the common stock. On May 18, 2018, the Company, upon recommendation and approval by the compensation committee of the board of directors, granted its new Chief Executive Officer, options to purchase 6,500,000 shares of the Companys common stock, at an exercise price of $0.017 per share. The options vest over a three-year period and expire May 18, 2028. The fair value of the options totaled $101,437 using the Black-Scholes option pricing model with the following assumptions: i) risk free interest rate of 2.64%, ii) expected life of 5 years, iii) dividend yield of 0%, iv) expected volatility of 217%. A summary of the Companys stock option plans as of June 30, 2018, and changes during the six month period then ended is presented below: Six Months Ended June 30, 2018 Number of Options Weighted Average Exercise Price Options outstanding at December 31, 2017 3,180,000 $ 0.20 Options granted 10,975,000 $ 0.02 Options exercised Options forfeited (1,408,334 ) $ 0.02 Options expired (291,666 ) $ 0.25 Options at end of period 12,455,000 $ 0.06 Options exercisable at June 30, 2018 2,860,000 $ 0.19 Changes in the Companys non-vested options for the six months ended June 30, 2018 are summarized as follows: Six Months Ended June 30, 2018 Number of Options Weighted Average Exercise Price Nonvested options at December 31, 2017 270,840 $ 0.15 Granted 10,975,000 $ 0.02 Vested (242,506 ) $ 0.16 Forfeited (1,408,334 ) $ 0.22 Nonvested options at June 30, 2018 9,595,000 $ 0.18 Options Outstanding Options Exercisable Range of Exercise Price Number Outstanding Remaining Average Contractual Life (In Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $0.017- $0.30 12,445,000 8.36 $ 0.06 2,860,000 $ 0.19 Totals 12,445,000 8.36 $ 0.06 2,860,000 $ 0.19 A summary of the Companys warrant activity as of June 30, 2018 and changes during the six-month period then ended is presented below: Six months ended June 30, 2018 Warrants Weighted Warrants outstanding at December 31, 2017 990,162 $ 0.24 Granted Expired (168,750 ) $ 0.35 Warrants outstanding at June 30, 2018 821,412 $ 0.17 Warrants Outstanding Range of Exercise Price Number Outstanding Remaining Average Contractual Life (In Years) Weighted Average Exercise Price 821,412 1.80 $ 0.17 Totals 821,412 1.80 $ 0.17 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 14. Related Party Transactions On March 28, 2002 the Company executed a binding agreement with one of its principal stockholders, who is also the former Chief Executive Officer, now Executive Chairman of the Board, to fund up to $6.1 million. Under the terms of the agreements, the Company can draw amounts as needed to fund operations. Amounts drawn bear interest at the BBA LIBOR Daily Floating Rate plus 1.4 percentage points (3.78% per annum at June 30, 2018), payable monthly and were to become due and payable on December 31, 2005 or upon a change in control of the Company or consummation of any other financing over $7.0 million. Beginning in March 2006, annually, through February 2012, the maturity date for the agreement was extended annually from December 31, 2007, to December 31, 2018. On May 9, 2018, he extended the maturity date to December 31, 2019. If we are unable to meet our obligation to our Executive Chairman prior to maturity, he has advised us that he may forgive all, or substantially all, of this obligation. During the six months ended June 30, 2018 we borrowed an additional $26,272 from our Executive Chairman, together with an $325,000 under a demand note not covered by this line of credit. This demand note bears interest at 4% per annum. As of June 30, 2018 and December 31, 2017 we owed him an aggregate of $8,314,622 and $7,988,349, respectively, which represented approximately 75% and 78% of our total liabilities, respectively. On May 9, 2018 he extended the maturity date to December 31, 2019. While he has continued to fund our working capital needs at reduced levels and extend the due date of the obligation for an additional year, he is under no contractual obligation to do so. During 2017 he advised us he does not expect to continue to provide working capital advances to us at historic amounts. If we are unable to meet our obligation to our Executive Chairman prior to maturity, he has advised us that he may forgive all, or substantially all, of this obligation. From April 1, 2018 through May 15, 2018, the Company received additional loans in the amount of $250,000 from a related party to both the Companys Executive Chairman and its Chief Executive Officer, as advances for working capital needs. The amounts are non-interest bearing and are payable upon demand. On July 15, 2018, $250,000 was repaid. On April 12, 2018, the Company granted our Chairman and Former CEO options to purchase 1,400,000 shares of the Companys common stock, at exercise price of $0.208 per share. The options vest over a three-year period and expire April 12, 2028. On April 30, 2018 our Chairman and Former CEO voluntarily cancelled the grant on April 12, 2018 of options awarded him to purchase an aggregate of 1,400,000 shares of the common stock. On May 18, 2018, the Company, upon recommendation and approval by the compensation committee of the board of directors, granted its new Chief Executive Officer, options to purchase 6,500,000 shares of the Companys common stock, at an exercise price of $0.017 per share. The options vest over a three-year period and expire May 18, 2028. On May 18, 2018 Mr. Edward S. Vittoria was appointed Chief Executive Officer of Puradyn Filter Technologies Incorporated and as a member of its Board of Directors. Immediately prior to such appointment, Mr. Joseph V. Vittoria resigned from his position as Chief Executive Officer, and has been appointed Executive Chairman of the Board of Directors. Since December 2017 Mr. Edward Vittoria has been providing advisory services to our company. He is the son of Mr. Joseph V. Vittoria. In November 2017, the Company received an additional loan in the amount of $25,000 from a former member of the Board of Directors and a significant stockholder. The loan bears interest at a rate of 5% per annum and is due December 31, 2018. On October 20, 2009, the Company entered into a consulting agreement with Boxwood Associates, Inc., whereby the Company pays $2,000 monthly for management and strategic development services performed. The contract remains in effect until terminated by either party providing 30 days written notice. During each of three and six months ended June 30, 2018 and 2017, we paid Boxwood Associates, Inc. $12,000 and $6,000, respectively under this agreement. A former member of our board of directors is President of Boxwood Associates, Inc. |
Major Customers
Major Customers | 6 Months Ended |
Jun. 30, 2018 | |
Risks and Uncertainties [Abstract] | |
Major Customers | 15. Major Customers There are concentrations of credit risk with respect to accounts receivables due to the amounts owed by two customers at June 30, 2018 whose balances each represented approximately 65%, and 22%, for a total of 87% of total accounts receivables. Comparatively, there are concentrations of credit risk with respect to accounts receivables due to the amounts owed by two customers at December 31, 2017 whose balances each represented approximately 53%, and 30%, for a total of 83% of total accounts receivables. Sales to two customers for the six months ended June 30, 2018 and 2017 were 66% and 32% of total sales. The loss of business from one or a combination of the Companys significant customers, or an unexpected deterioration in their financial condition, could adversely affect the Companys operations. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. Subsequent Events Only July 15, 2018 the Company repaid a loan in the amount of $250,000 from a related party to both the Companys Executive Chairman and its CEO. |
Basis of Presentation, Going 22
Basis of Presentation, Going Concern and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Organization | Organization Puradyn Filter Technologies Incorporated (the Company), a Delaware corporation, is engaged in the manufacturing, distribution and sale of bypass oil filtration systems under the trademark Puradyn ® |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim information and with the instructions to Form 10-Q and Regulation S-K. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments consisting of a normal and recurring nature considered necessary for a fair presentation have been included. Operating results for the three-month and six-month periods ended June 30, 2018 may not necessarily be indicative of the results that may be expected for the year ending December 31, 2018. For further information, refer to the Company's financial statements and footnotes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2017. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue from product sales to customers, distributors and resellers when products that do not require further services or installation by the Company are shipped, when there are no uncertainties surrounding customer acceptance and when collectability is reasonably assured. Cash received by the Company prior to shipment is recorded as deferred revenue. Sales are made to customers under terms allowing certain limited rights of return and other limited product and performance warranties for which provision has been made in the accompanying financial statements. Amounts billed to customers in sales transactions related to shipping and handling, represent revenues earned for the goods provided and are included in net sales. Costs of shipping and handling are included in cost of products sold. The Company accounts for revenue in accordance with Topic 606 which was adopted at the beginning of fiscal year 2018 using the modified retrospective method. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Company did not recognize any cumulative-effect adjustment to retained earnings upon adoption as the effect was immaterial. The adoption of these standards did not have a material impact on the Company's condensed statements of operations in during the six months ended June 30, 2018. |
Use of Estimates | Use of Estimates The preparation of condensed financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the condensed financial statements and accompanying notes. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include all highly liquid investments with original maturities of three months or less at the time of purchase. At June 30, 2018 and December 31, 2017, the Company did not have any cash equivalents. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of cash, accounts receivable, prepaid expenses and other assets, accounts payable, accrued liabilities and notes payable to stockholder approximate their fair values as of June 30, 2018 and December 31, 2017, respectively, because of their short-term natures. |
Accounts Receivable | Accounts Receivable Accounts receivable are recorded at fair value on the date revenue is recognized. The Company provides allowances for doubtful accounts for estimated losses resulting from the inability of its customers to repay their obligation. If the financial condition of the Company's customers were to deteriorate, resulting in an impairment of their ability to repay, additional allowances may be required. The Company provides for potential uncollectible accounts receivable based on specific customer identification and historical collection experience adjusted for existing market conditions. If market conditions decline, actual collection experience may not meet expectations and may result in decreased cash flows and increased bad debt expense. The policy for determining past due status is based on the contractual payment terms of each customer, which are generally net 30 or net 60 days. Once collection efforts by the Company and its collection agency are exhausted, the determination for charging off uncollectible receivables is made. |
Inventories | Inventories Inventories are stated at the lower of cost or market using the first in, first out (FIFO) method. Production costs, consisting of labor and overhead, are applied to ending finished goods inventories at a rate based on estimated production capacity. Excess production costs are charged to cost of products sold. Provisions have been made to reduce excess or obsolete inventories to their net realizable value. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful lives of the related assets, except for assets held under capital leases, for which the Company records depreciation and amortization based on the shorter of the assets useful life or the term of the lease. The estimated useful lives of property and equipment range from 3 to 5 years. Upon sale or retirement, the cost and related accumulated depreciation and amortization are eliminated from their respective accounts, and the resulting gain or loss is included in results of operations. Repairs and maintenance charges, which do not increase the useful lives of the assets, are charged to operations as incurred. |
Patents | Patents Patents are stated at cost. Amortization is provided using the straight-line method over the estimated useful lives of the patents. The estimated useful lives of patents are 17 to 20 years. Upon retirement, the cost and related accumulated amortization are eliminated from their respective accounts, and the resulting gain or loss is included in results of operations. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Management assesses the recoverability of its long-lived assets when indicators of impairment are present. If such indicators are present, recoverability of these assets is determined by comparing the undiscounted net cash flows estimated to result from those assets over the remaining life to the assets net carrying amounts. If the estimated undiscounted net cash flows are less than the net carrying amount, the assets would be adjusted to their fair value, based on appraisal or the present value of the undiscounted net cash flows. |
Product Warranty Costs | Product Warranty Costs As required by FASB ASC 460, Guarantors Guarantees The Company accrues for warranty costs based on the expected material and labor costs to provide warranty replacement products. The methodology used in determining the liability for warranty cost is based upon historical information and experience. The Company's warranty reserve is included in accrued liabilities in the accompanying condensed financial statements and is calculated as the gross sales multiplied by the historical warranty expense return rate. For the six months ended June 30, 2018, there was no change to the reserve for warranty liability as the reserve balance was deemed sufficient to absorb any warranty costs that might be incurred from the sales activity for the period. The following table shows the changes in the aggregate product warranty liability for the six -months ended June 30, 2018: Balance as of December 31, 2017 $ 20,000 Less: Payments made Add: Provision for current period warranties Balance as of June 30, 2018 (unaudited) $ 20,000 |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred. During the three and six months ended June, 2018 and 2017, advertising costs incurred by the Company totaled approximately $2,904 and $3,333, $0 and $0, respectively, and are included in selling and administrative expenses in the accompanying statements of operations. |
Engineering and Development | Engineering and Development Research and development costs are expensed as incurred. During the three and six months ended June 30, 2018 and 2017, engineering and development costs incurred by the Company totaled $1,384 and $2,813, and $1,575 and $1,575, respectively, and are included in selling and administrative expenses in the accompanying statements of operations. |
Income Taxes | Income Taxes The Company accounts for income taxes under FASB ASC 740, Income Taxes |
Stock Option Plans | Stock Option Plans We adopted FASB ASC 718, Compensation-Stock Compensation, The Company leases its employees from a payroll leasing company. The Companys leased employees meet the definition of employees as specified by FASB Interpretation No. 44 for purposes of applying FASB ASC 718. Stock options and warrants issued to consultants and other non-employees as compensation for services provided to the Company are accounted for based on the fair value of the services provided or the estimated fair market value of the option or warrant, whichever is more reliably measurable in accordance with Equity, , Compensation-Stock Compensation, |
Credit Risk | Credit Risk The Company minimizes the concentration of credit risk associated with its cash by maintaining its cash with high quality federally insured financial institutions. However, cash balances in excess of the FDIC insured limit of $250,000 are at risk. At June 30, 2018 and December 31, 2017, respectively, the Company did not have cash balances above the FDIC insured limit. The Company performs ongoing evaluations of its significant trade accounts receivable customers and generally does not require collateral. An allowance for doubtful accounts is maintained against trade accounts receivable at levels which management believes is sufficient to cover probable credit losses. The Company also has some customer concentrations, and the loss of business from one or a combination of these significant customers, or an unexpected deterioration in their financial condition, could adversely affect the Companys operations. Please refer to Note 15 for further details. |
Basic and Diluted Loss Per Share | Basic and Diluted Loss Per Share The Company uses ASC 260-10, "Earnings Per Share" for calculating the basic and diluted income (loss) per share. The Company computes basic income (loss) per share by dividing net income (loss) and net income (loss) attributable to common shareholders by the weighted average number of common shares outstanding. As of June 30, 2018 and 2017, there were 13,276,412 and 4,497,662 shares issuable upon the exercise of options and warrants, respectively. Common stock equivalent shares are excluded from the computation of net loss per share if their effect is anti-dilutive. The Company had net income for the three month period ended June 30, 2018. A separate computation of diluted earnings per share is presented using the treasury stock method and the common stock equivalents did not have any effect on net income per share. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, " Revenue from Contracts with Customers (Topic 606) Revenue Recognition The Company adopted these standards at the beginning of fiscal year 2018 using the modified retrospective method. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The adoption of these standards did not have a material impact on the Company's Condensed Statements of Operations during the six months ended June 30, 2018. All other newly issued accounting pronouncements not yet effective have been deemed either immaterial or not applicable. |
Basis of Presentation, Going 23
Basis of Presentation, Going Concern and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Product Warrant Liability | The following table shows the changes in the aggregate product warranty liability for the six -months ended June 30, 2018: Balance as of December 31, 2017 $ 20,000 Less: Payments made Add: Provision for current period warranties Balance as of June 30, 2018 (unaudited) $ 20,000 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following at June 30, 2018 and December 31, 2017, respectively: June 30, 2018 December 31, 2017 (Unaudited) Raw materials $ 1,036,774 $ 901,600 Work In Progress 125,932 Finished goods 133,375 16,848 Valuation allowance (657,226 ) (643,616 ) Inventory, net $ 512,923 $ 400,764 |
Prepaid Expenses and Other Cu25
Prepaid Expenses and Other Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | At June 30, 2018 and December 31, 2017, prepaid expenses and other current assets consisted of the following: June 30, 2018 December 31, 2017 (Unaudited) Prepaid expenses $ 86,740 $ 26,648 Deposits 60,835 42,707 $ 147,575 $ 69,355 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | At June 30, 2018 and December 31, 2017, property and equipment consisted of the following: June 30, 2018 December 31, 2017 (Unaudited) Machinery and equipment $ 1,045,217 $ 1,045,217 Furniture and fixtures 56,558 56,558 Leasehold improvements 152,322 152,322 Software and website development 88,842 88,842 Computer hardware and software 153,249 153,249 1,496,188 1,496,188 Less accumulated depreciation and amortization (1,460,914 ) (1,450,861 ) $ 35,274 $ 45,327 Depreciation and amortization expense of property and equipment for the three and six months ended June 30, 2018 and 2017 is $5,026 and $10,053, and $4,420 and $9,097, respectively. |
Patents (Tables)
Patents (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of capitalized patent costs included in other assets | Included in other assets at June 30, 2018 and December 31, 2017 are capitalized patent costs as follows: June 30, 2018 December 31, 2017 (Unaudited) Patent costs $ 614,151 $ 558,873 Less accumulated amortization (72,709 ) (62,153 ) $ 541,442 $ 496,720 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accrued Liabilities [Abstract] | |
Schedule of Accrued Liabilities | At June 30, 2018 and December 31, 2017, accrued liabilities consisted of the following: June 30, 2018 December 31, 2017 (Unaudited) Accrued vacation and benefits $ 68,107 $ 69,025 Accrued expenses relating to vendors and others 156,309 136,681 Accrued warranty costs 20,000 20,000 Accrued interest payable relating to stockholder notes 160,591 115,039 Deferred rent 15,727 22,059 $ 420,734 $ 362,804 |
Notes Payable to Stockholders29
Notes Payable to Stockholders - Related Party (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable and Capital Leases | Notes payable and capital leases consisted of the following at June 30, 2018 and December 31, 2017: June 30, 2018 December 31, 2017 Notes payable to stockholders $ 8,589,622 $ 7,988,349 Capital lease obligation 1,567 3,443 8,591,189 7,991,792 Less: current maturities (601,567 ) (7,991,792 ) Long-term maturities $ 7,989,622 $ |
Schedule of Maturities of Long-Term Obligations | The minimum annual principal payments of notes payable and capital lease obligations at June 30, 2018 were: 2018 $ 601,567 2019 7,989,622 $ 8,591,189 |
Stock Options and Warrants (Tab
Stock Options and Warrants (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Options Activity | A summary of the Companys stock option plans as of June 30, 2018, and changes during the six month period then ended is presented below: Six Months Ended June 30, 2018 Number of Options Weighted Average Exercise Price Options outstanding at December 31, 2017 3,180,000 $ 0.20 Options granted 10,975,000 $ 0.02 Options exercised Options forfeited (1,408,334 ) $ 0.02 Options expired (291,666 ) $ 0.25 Options at end of period 12,455,000 $ 0.06 Options exercisable at June 30, 2018 2,860,000 $ 0.19 |
Schedule of Nonvested Options Activity | Changes in the Companys non-vested options for the six months ended June 30, 2018 are summarized as follows: Six Months Ended June 30, 2018 Number of Options Weighted Average Exercise Price Nonvested options at December 31, 2017 270,840 $ 0.15 Granted 10,975,000 $ 0.02 Vested (242,506 ) $ 0.16 Forfeited (1,408,334 ) $ 0.22 Nonvested options at June 30, 2018 9,595,000 $ 0.18 |
Summary of Options Outstanding by Price Range | Options Outstanding Options Exercisable Range of Exercise Price Number Outstanding Remaining Average Contractual Life (In Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $0.017- $0.30 12,445,000 8.36 $ 0.06 2,860,000 $ 0.19 Totals 12,445,000 8.36 $ 0.06 2,860,000 $ 0.19 |
Summary of Warrants Activity | A summary of the Companys warrant activity as of June 30, 2018 and changes during the six-month period then ended is presented below: Six months ended June 30, 2018 Warrants Weighted Warrants outstanding at December 31, 2017 990,162 $ 0.24 Granted Expired (168,750 ) $ 0.35 Warrants outstanding at June 30, 2018 821,412 $ 0.17 |
Summary of Warrants Outstanding by Price Range | Warrants Outstanding Range of Exercise Price Number Outstanding Remaining Average Contractual Life (In Years) Weighted Average Exercise Price 821,412 1.80 $ 0.17 Totals 821,412 1.80 $ 0.17 |
Basis of Presentation, Going 31
Basis of Presentation, Going Concern and Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Cash equivalents | |||||
Advertising costs | 2,904 | $ 0 | 3,333 | $ 0 | |
Engineering and development costs | 1,384 | $ 1,575 | 2,813 | $ 1,575 | |
FDIC insured limit | $ 250,000 | $ 250,000 | $ 250,000 | ||
Shares excluded from computation loss per share | 13,276,412 | 4,497,662 | |||
Minimum [Member] | |||||
Property and equipment, estimated useful life | 3 years | ||||
Estimated useful lives of patents | 17 years | ||||
Maximum [Member] | |||||
Property and equipment, estimated useful life | 5 years | ||||
Estimated useful lives of patents | 20 years |
Basis of Presentation, Going 32
Basis of Presentation, Going Concern and Summary of Significant Accounting Policies (Product Warrant Liability) (Details) | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Accounting Policies [Abstract] | |
Balance as of December 31, 2017 | $ 20,000 |
Less: Payments made | |
Add: Provision for current period warranties | |
Balance as of June 30, 2018 | $ 20,000 |
Going Concern (Details)
Going Concern (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Going Concern [Abstract] | ||
Net cash used in operating activities | $ 413,949 | $ 355,708 |
Inventories (Details)
Inventories (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,036,774 | $ 901,600 |
Work In Progress | 125,932 | |
Finished goods | 133,375 | 16,848 |
Valuation allowance | (657,226) | (643,616) |
Inventory, net | $ 512,923 | $ 400,764 |
Prepaid Expenses and Other Cu35
Prepaid Expenses and Other Current Assets (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid expenses | $ 86,740 | $ 26,648 |
Deposits | 60,835 | 42,707 |
Prepaid expenses and other current assets | $ 147,575 | $ 69,355 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | $ 1,496,188 | $ 1,496,188 | $ 1,496,188 | ||
Less accumulated depreciation and amortization | (1,460,914) | (1,460,914) | (1,450,861) | ||
Property and equipment, net | 35,274 | 35,274 | 45,327 | ||
Depreciation and amortization expense of property and equipment | 5,026 | $ 4,420 | 10,053 | $ 9,097 | |
Machinery and Equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 1,045,217 | 1,045,217 | 1,045,217 | ||
Furniture and Fixtures [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 56,558 | 56,558 | 56,558 | ||
Leasehold Improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 152,322 | 152,322 | 152,322 | ||
Software and website development [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 88,842 | 88,842 | 88,842 | ||
Computer hardware and software [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | $ 153,249 | $ 153,249 | $ 153,249 |
Patents (Details)
Patents (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Patent costs | $ 614,151 | $ 614,151 | $ 558,873 | ||
Less accumulated amortization | (72,709) | (72,709) | (62,153) | ||
Patent costs, less accumulated amortization | 541,442 | 541,442 | $ 496,720 | ||
Amortization expense | $ 6,823 | $ 3,395 | $ 10,558 | $ 6,790 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) | 1 Months Ended | 6 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 27, 2012 | |
Operating Leased Assets [Line Items] | ||||
Security deposit | $ 34,970 | |||
Annual increase percentage | 3.00% | |||
Lease expiration date | Jul. 31, 2024 | |||
Capital leased assets - office equipment, gross | 15,020 | |||
Rent expense in fifth year | $ 16,769 | |||
Lease reimburse amount that is agreed by landlord | 58,000 | |||
Rent expense | $ 14,899 | |||
Capital lease obligations | $ 1,567 | $ 3,443 | ||
Office and Warehouse Facilities, Boynton Beach, Florida [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Aggregate total minimum lease payments | $ 180,826 | |||
Lease expiration date | Jul. 31, 2019 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Accrued Liabilities [Abstract] | ||
Accrued vacation and benefits | $ 68,107 | $ 69,025 |
Accrued expenses relating to vendors and others | 156,309 | 136,681 |
Accrued warranty costs | 20,000 | 20,000 |
Accrued interest payable relating to stockholder notes | 160,591 | 115,039 |
Deferred rent | 15,727 | 22,059 |
Accrued liabilities | $ 420,734 | $ 362,804 |
Deferred Compensation (Details)
Deferred Compensation (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Compensation Related Costs [Abstract] | ||
Deferred compensation | $ 1,577,271 | $ 1,626,003 |
Notes Payable to Stockholders41
Notes Payable to Stockholders - Related Party (Details) - USD ($) | Jul. 15, 2018 | May 09, 2018 | Jan. 06, 2016 | May 15, 2018 | Nov. 30, 2017 | Mar. 28, 2002 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||||||||||
Notes Payable - stockholders | $ 600,000 | $ 600,000 | $ 7,988,349 | ||||||||
Proceeds from related party loan | $ 601,273 | $ 440,000 | |||||||||
Board of Directors [Member] | Unsecured Loan [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount of debt instrument | $ 25,000 | ||||||||||
Interest rate on outstanding term loan | 5.00% | 5.00% | |||||||||
Maturity date | Dec. 31, 2018 | ||||||||||
Board of Directors [Member] | Unsecured Loan [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maturity date | Dec. 31, 2019 | ||||||||||
Executive Chairman and CEO [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Proceeds from related party loan | $ 250,000 | ||||||||||
Executive Chairman and CEO [Member] | Subsequent Event [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayments of related party loan | $ 250,000 | ||||||||||
Note Payable to Chairman of Board [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest expense, debt | $ 80,354 | $ 154,719 | $ 65,083 | $ 131,841 | |||||||
Note Payable to Chairman of Board [Member] | Executive Officer [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount of debt instrument | $ 6,100,000 | ||||||||||
Percent in addition to BBA LIBOR | 1.40% | ||||||||||
Interest rate on outstanding term loan | 3.78% | 3.61% | 3.78% | 3.61% | |||||||
Maturity date | Dec. 31, 2005 | ||||||||||
Maximum amount of additional financing the company may obtain that will affect the repayment provisions of the debt instrument | $ 7,000,000 | ||||||||||
Proceeds from stockholder loan | $ 26,272 | ||||||||||
Notes Payable - stockholders | $ 8,314,622 | $ 8,314,622 | $ 7,988,349 | ||||||||
Percentage of total liabilities | 75.00% | 75.00% | 78.00% | ||||||||
Note Payable to Chairman of Board [Member] | Executive Officer [Member] | Demand note [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate on outstanding term loan | 4.00% | 4.00% | |||||||||
Proceeds from stockholder loan | $ 325,000 | ||||||||||
Note Payable to Chairman of Board [Member] | Chief Executive Officer [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maturity date | Dec. 31, 2019 | ||||||||||
Note Payable to Chairman of Board [Member] | Former Board of Directors Member [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest expense, debt | $ 310 | 620 | |||||||||
Interest expense related to capital lease obligations | $ 4 | $ 32 | $ 481 | $ 575 |
Notes Payable to Stockholders42
Notes Payable to Stockholders - Related Party (Schedule of Notes Payable and Capital Leases) (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
Notes payable to stockholders | $ 8,589,622 | $ 7,988,349 |
Capital lease obligation | 1,567 | 3,443 |
Total obligations | 8,591,189 | 7,991,792 |
Less: current maturities | (601,567) | (7,991,792) |
Long-term maturities | $ 7,989,622 |
Notes Payable to Stockholders43
Notes Payable to Stockholders - Related Party (Schedule of Maturities of Long-Term Obligations) (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
2,018 | $ 601,567 | |
2,019 | 7,989,622 | |
Total obligations | $ 8,591,189 | $ 7,991,792 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | Oct. 20, 2009 | Jun. 29, 2018 | May 18, 2018 | Jun. 30, 2018 | Sep. 27, 2012 |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||
Options granted | 10,975,000 | ||||
Lease term | 72 months | ||||
Lease expiration date | Jul. 31, 2024 | ||||
Annual increase percentage | 3.00% | ||||
Rent expense in fifth year | $ 16,769 | ||||
Lease reimburse amount that is agreed by landlord | 58,000 | ||||
Rent expense | $ 14,899 | ||||
Consulting Agreement with Boxwood Associates, Inc. [Member] | |||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||
Monthly fee under agreement | $ 2,000 | ||||
Notice period to terminate the agreement | 30 days | ||||
Letter agreement with Mr. Edward S. Vittoria [Member] | Chief Executive Officer [Member] | |||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||
Annual base salary | $ 200,000 | ||||
Options granted | 6,500,000 | ||||
Cash portion of payment | $ 50,000 |
Stock Options and Warrants (Sto
Stock Options and Warrants (Stock Options Narrative) (Details) - USD ($) | Apr. 12, 2018 | May 18, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense | $ 14,392 | $ 10,517 | $ 24,733 | $ 21,397 | ||
Unrecognized compensation cost | $ 180,427 | $ 34,596 | $ 180,427 | $ 34,596 | ||
Employees and directors [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
Warrants to purchase common stock | 4,475,000 | |||||
Expiration date | Apr. 12, 2028 | |||||
Fair value of the options | $ 69,989 | |||||
Risk free interest rate | 2.64% | |||||
Expected life | 5 years | |||||
Dividend yield | 0.00% | |||||
Expected volatility | 217.00% | |||||
Options cancelled | 1,400,000 | |||||
Employees and directors [Member] | Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Exercise price | $ 0.0189 | |||||
Employees and directors [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Exercise price | $ 0.208 | |||||
New Chief Executive Officer [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
Warrants to purchase common stock | 6,500,000 | |||||
Exercise price | $ 0.017 | |||||
Expiration date | May 18, 2028 | |||||
Fair value of the options | $ 101,437 | |||||
Risk free interest rate | 2.64% | |||||
Expected life | 5 years | |||||
Dividend yield | 0.00% | |||||
Expected volatility | 217.00% | |||||
2018 Equity Compensation Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock reserved for future issuance | 10,000,000 | |||||
Exercisable period | 10 years | |||||
Percentage of common stock own by employee | 10.00% | |||||
Grants period | 5 years | |||||
Vesting period | 3 years | |||||
Vesting percentage | 33.33% |
Stock Options and Warrants (Sum
Stock Options and Warrants (Summary of Stock Options Activity) (Details) | 6 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Options | |
Options outstanding at December 31, 2017 | shares | 3,180,000 |
Options granted | shares | 10,975,000 |
Options exercised | shares | |
Options forfeited | shares | (1,408,334) |
Options expired | shares | (291,666) |
Options at end of period | shares | 12,455,000 |
Options exercisable at June 30, 2018 | shares | 2,860,000 |
Weighted Average Exercise Price | |
Options outstanding at December 31, 2017 | $ / shares | $ 0.20 |
Options granted | $ / shares | 0.02 |
Options exercised | $ / shares | |
Options forfeited | $ / shares | 0.02 |
Options expired | $ / shares | 0.25 |
Options at end of period | $ / shares | 0.06 |
Options exercisable at June 30, 2018 | $ / shares | $ 0.19 |
Stock Options and Warrants (Sch
Stock Options and Warrants (Schedule of Nonvested Options Activity) (Details) | 6 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Non-Vested stock option activity, shares: | |
Nonvested options at December 31, 2017 | shares | 270,840 |
Granted | shares | 10,975,000 |
Vested | shares | (242,506) |
Forfeited | shares | (1,408,334) |
Nonvested options at June 30, 2018 | shares | 9,595,000 |
Non-Vested stock option activity, weighted average exercise price: | |
Nonvested options at December 31, 2017 | $ / shares | $ 0.15 |
Granted | $ / shares | 0.02 |
Vested | $ / shares | 0.16 |
Forfeited | $ / shares | 0.22 |
Nonvested options at June 30, 2018 | $ / shares | $ 0.18 |
Stock Options and Warrants (S48
Stock Options and Warrants (Summary of Options Outstanding by Price Range) (Details) | 6 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding | shares | 12,445,000 |
Remaining Average Contractual Life | 8 years 4 months 9 days |
Weighted Average Exercise Price, Outstanding | $ 0.06 |
Number Exercisable | shares | 2,860,000 |
Weighted Average Exercise Price, Exercisable | $ 0.19 |
Range of Exercise Price [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Price, lower limit | 0.017 |
Range of Exercise Price, upper limit | $ 0.30 |
Number Outstanding | shares | 12,445,000 |
Remaining Average Contractual Life | 8 years 4 months 9 days |
Weighted Average Exercise Price, Outstanding | $ 0.06 |
Number Exercisable | shares | 2,860,000 |
Weighted Average Exercise Price, Exercisable | $ 0.19 |
Stock Options and Warrants (S49
Stock Options and Warrants (Summary of Warrants Activity) (Details) - Warrant [Member] | 6 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Warrant activity, number of shares: | |
Warrants outstanding at December 31, 2017 | shares | 990,162 |
Granted | shares | |
Expired | shares | (168,750) |
Warrants outstanding at June 30, 2018 | shares | 821,412 |
Warrants outstanding at December 31, 2017 | $ / shares | $ 0.24 |
Granted | $ / shares | |
Expired | $ / shares | 0.35 |
Warrants outstanding at June 30, 2018 | $ / shares | $ 0.17 |
Stock Options and Warrants (S50
Stock Options and Warrants (Summary of Warrants Outstanding by Price Range) (Details) | 6 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Share Based Compensation Shares Authorized Under Equity Instruments Other Than Options Exercise Price Range [Line Items] | |
Number outstanding | shares | 821,412 |
Remaining Average Contractual Life | 1 year 9 months 18 days |
Weighted average exercise price, outstanding | $ / shares | $ 0.17 |
Range of Exercise Price [Member] | |
Share Based Compensation Shares Authorized Under Equity Instruments Other Than Options Exercise Price Range [Line Items] | |
Number outstanding | shares | 821,412 |
Remaining Average Contractual Life | 1 year 9 months 18 days |
Weighted average exercise price, outstanding | $ / shares | $ 0.17 |
Related Party Transactions - Re
Related Party Transactions - Related Party (Details) - USD ($) | Jul. 15, 2018 | May 09, 2018 | Apr. 12, 2018 | Jan. 06, 2016 | Oct. 20, 2009 | May 18, 2018 | May 15, 2018 | Apr. 30, 2018 | Nov. 30, 2017 | Mar. 28, 2002 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | |||||||||||||||
Notes Payable - stockholders | $ 600,000 | $ 600,000 | $ 7,988,349 | ||||||||||||
Proceeds from related party loan | 601,273 | $ 440,000 | |||||||||||||
Consulting Agreement with Boxwood Associates, Inc. [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Monthly fee under agreement | $ 2,000 | ||||||||||||||
Notice period to terminate the agreement | 30 days | ||||||||||||||
Payments to consultants | $ 12,000 | $ 12,000 | $ 6,000 | $ 6,000 | |||||||||||
New Chief Executive Officer [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Warrants to purchase common stock | 6,500,000 | ||||||||||||||
Exercise price | $ 0.017 | ||||||||||||||
Vesting period | 3 years | ||||||||||||||
Expiration date | May 18, 2028 | ||||||||||||||
Chairman and Former CEO [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Warrants to purchase common stock | 1,400,000 | ||||||||||||||
Exercise price | $ 0.208 | ||||||||||||||
Vesting period | 3 years | ||||||||||||||
Expiration date | Apr. 12, 2028 | ||||||||||||||
Options cancelled | 1,400,000 | ||||||||||||||
Executive Officer [Member] | Note Payable to Chairman of Board [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Face amount of debt instrument | $ 6,100,000 | ||||||||||||||
Percent in addition to BBA LIBOR | 1.40% | ||||||||||||||
Interest rate on outstanding term loan | 3.78% | 3.61% | 3.78% | 3.61% | |||||||||||
Maturity date | Dec. 31, 2005 | ||||||||||||||
Maximum amount of additional financing the company may obtain that will affect the repayment provisions of the debt instrument | $ 7,000,000 | ||||||||||||||
Proceeds from stockholder loan | $ 26,272 | ||||||||||||||
Notes Payable - stockholders | $ 8,314,622 | $ 8,314,622 | $ 7,988,349 | ||||||||||||
Percentage of total liabilities | 75.00% | 75.00% | 78.00% | ||||||||||||
Executive Officer [Member] | Note Payable to Chairman of Board [Member] | Demand note [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Interest rate on outstanding term loan | 4.00% | 4.00% | |||||||||||||
Proceeds from stockholder loan | $ 325,000 | ||||||||||||||
Board of Directors [Member] | Unsecured Loan [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Face amount of debt instrument | $ 25,000 | ||||||||||||||
Interest rate on outstanding term loan | 5.00% | 5.00% | |||||||||||||
Maturity date | Dec. 31, 2018 | ||||||||||||||
Board of Directors [Member] | Unsecured Loan [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Maturity date | Dec. 31, 2019 | ||||||||||||||
Chief Executive Officer [Member] | Note Payable to Chairman of Board [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Maturity date | Dec. 31, 2019 | ||||||||||||||
Executive Chairman and CEO [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Proceeds from related party loan | $ 250,000 | ||||||||||||||
Executive Chairman and CEO [Member] | Subsequent Event [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Repayments of related party loan | $ 250,000 |
Major Customers (Details)
Major Customers (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)item | Jun. 30, 2017USD ($) | Dec. 31, 2017item | |
Concentration Risk [Line Items] | |||||
Net sales | $ | $ 1,152,462 | $ 575,170 | $ 2,038,202 | $ 1,264,160 | |
Accounts Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 87.00% | 83.00% | |||
Number of customers representing concentration risk percentage | item | 2 | 2 | |||
Accounts Receivable [Member] | Customer One [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 65.00% | 53.00% | |||
Accounts Receivable [Member] | Customer Two [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 22.00% | 30.00% | |||
Sales [Member] | Two Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 66.00% | 32.00% |
Subsequent Events (Details)
Subsequent Events (Details) | Jul. 15, 2018USD ($) |
Subsequent Event [Member] | Executive Chairman and CEO [Member] | |
Subsequent Event [Line Items] | |
Repayment of related party loan | $ 250,000 |