Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 14, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Entity Registrant Name | CHASE PACKAGING CORPORATION | ||
Entity Central Index Key | 0001025771 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Small Business | true | ||
Entity Shell Company | true | ||
Entity Emerging Growth Company | false | ||
Entity Current Reporting Status | Yes | ||
Document Period End Date | Dec. 31, 2021 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 | ||
Entity Common Stock Shares Outstanding | 62,379,759 | ||
Entity Public Float | $ 8,138,568 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 0-21609 | ||
Entity Incorporation State Country Code | DE | ||
Entity Tax Identification Number | 93-1216127 | ||
Entity Address Address Line 1 | PO Box 126 | ||
Entity Address City Or Town | Rumson | ||
Entity Address State Or Province | NJ | ||
Entity Address Postal Zip Code | 07760 | ||
City Area Code | 732 | ||
Icfr Auditor Attestation Flag | false | ||
Auditor Name | Pinnacle Accountancy Group of Utah | ||
Auditor Location | Utah | ||
Auditor Firm Id | 6117 | ||
Local Phone Number | 741.1500 | ||
Entity Interactive Data Current | Yes |
CONDENSED BALANCE SHEETS
CONDENSED BALANCE SHEETS - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 497,135 | $ 570,671 |
TOTAL ASSETS | 497,135 | 570,671 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued expenses | 477 | 2,477 |
TOTAL CURRENT LIABILITIES | 477 | 2,477 |
STOCKHOLDERS' EQUITY: | ||
Preferred stock, $1.00 par value; 4,000,000 authorized: Series A 10% Convertible preferred stock; 50,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $0.00001 par value 200,000,000 shares authorized; 62,379,759 shares issued and 61,882,172 outstanding as of December 31, 2021 and December 31, 2020 | 624 | 624 |
Treasury stock, $0.00001 par value 497,587 shares as of December 31, 2021 and December 31, 2020 | (49,759) | (49,759) |
Additional paid-in capital | 8,493,912 | 7,043,022 |
Accumulated deficit | (7,948,119) | (6,425,693) |
TOTAL STOCKHOLDERS' EQUITY | 496,658 | 568,194 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 497,135 | $ 570,671 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, shares par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 4,000,000 | 4,000,000 |
Common stock, shares par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 62,379,759 | 62,379,759 |
Common stock, shares outstanding | 61,882,172 | 61,882,172 |
Treasury stock, shares par value | $ 0.00001 | $ 0.10 |
Trasury Stock, shares issued | 497,587 | 497,587 |
10% Series A Convertible Preferred Stock [Member] | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, shares authorized | 50,000 | 50,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
CONDENSED STATEMENTS OF OPERATIONS (Unaudited) | ||
NET SALES | $ 0 | $ 0 |
OPERATING EXPENSES: | ||
General and administrative expense | 71,653 | 192,044 |
LOSS FROM OPERATIONS | (71,653) | (192,044) |
OTHER INCOME (EXPENSE) | ||
Warrant modification expense | (1,450,890) | 0 |
Interest and other income | 117 | 1,010 |
TOTAL OTHER INCOME (EXPENSE) | (1,450,773) | 1,010 |
LOSS BEFORE INCOME TAXES | (1,522,426) | (191,034) |
Provision for income taxes | 0 | 0 |
NET LOSS | $ (1,522,426) | $ (191,034) |
LOSS PER COMMON SHARE - BASIC AND DILUTED | $ (0.02) | $ 0 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC AND DILUTED | 61,882,172 | 61,608,402 |
CONDENSED STATEMENT OF CHANGES
CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS EQUITY (Unaudited) - USD ($) | Total | Preferred Stock | Common Stock | Treasury Stock | Additional Paid-In Capital | Accumulated Deficit |
Balance, shares at Dec. 31, 2019 | 61,479,759 | 497,587 | ||||
Balance, amount at Dec. 31, 2019 | $ 669,228 | $ 0 | $ 615 | $ (49,759) | $ 6,953,031 | $ (6,234,659) |
Stock based compensation expense, shares | 900,000 | |||||
Stock based compensation expense, amount | 90,000 | 0 | $ 9 | 0 | 89,991 | 0 |
Net loss for the year ended December 31, 2020 | (191,034) | 0 | $ 0 | $ 0 | 0 | (191,034) |
Balance, shares at Dec. 31, 2020 | 62,379,759 | 497,587 | ||||
Balance, amount at Dec. 31, 2020 | 568,194 | 0 | $ 624 | $ (49,759) | 7,034,022 | (6,425,693) |
Net loss for the year ended December 31, 2020 | (1,522,426) | 0 | 0 | 0 | 0 | (1,522,426) |
Modification of warrants, expiration of 6,909,000 warrants extended to March 7, 2023 | 1,450,890 | $ 0 | $ 0 | $ 0 | 1,450,890 | 0 |
Balance, shares at Dec. 31, 2021 | 62,379,759 | 497,587 | ||||
Balance, amount at Dec. 31, 2021 | $ 496,658 | $ 624 | $ (49,759) | $ 8,493,912 | $ (7,948,119) |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (1,522,426) | $ (191,034) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Warrant modification expense | 1,450,890 | 0 |
Stock based compensation | 0 | 90,000 |
Change in assets and liabilities: | ||
Accounts payable and accrued expenses | (2,000) | (7,442) |
Net cash used in operating activities | (73,536) | (108,476) |
CASH FLOWS FROM INVESTING ACTIVITIES | 0 | 0 |
CASH FLOWS FROM FINANCING ACTIVITIES | 0 | 0 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (73,536) | (108,476) |
Cash and cash equivalents, at beginning of year | 570,671 | 679,147 |
CASH AND CASH EQUIVALENTS, END OF YEAR | 497,135 | 570,671 |
Cash paid for: | ||
Interest | 0 | 0 |
Income taxes | $ 0 | $ 0 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2021 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | NOTE 1 - BASIS OF PRESENTATION: Chase Packaging Corporation (“the Company”), a Delaware Corporation, previously manufactured woven paper mesh for industrial applications and polypropylene mesh fabric bags for agricultural use, and distributed agricultural packaging manufactured by other companies. Management’s plans for the Company include securing a merger or acquisition, raising additional capital, and other strategies designed to optimize shareholder value. However, no assurance can be given that management will be successful in its efforts. The failure to achieve these plans will have a material adverse effect on the Company’s financial position, results of operations, and ability to continue as a going concern. |
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2021 | |
NEW ACCOUNTING PRONOUNCEMENTS | |
NEW ACCOUNTING PRONOUNCEMENTS | NOTE 2 - NEW ACCOUNTING PRONOUNCEMENTS: Recently Adopted Accounting Pronouncements Intangibles, Goodwill and Other Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework Changes to the Disclosure Requirements for Fair Value Measurement - Recent Accounting Pronouncements – To Be Adopted The Company does not believe that other standards, which have been issued but are not yet effective, will have a significant impact on its financial statements. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considers all highly liquid investments that are readily convertible into cash with a remaining maturity of three months or less at the time of acquisition to be cash equivalents. The Company maintains its cash and cash equivalents balances with high credit quality financial institutions. As of December 31, 2021 and 2020, the Company had cash in insured accounts in the amount of $47,135 and $70,671, respectively, and cash equivalents (Treasury and government securities) held in financial institutions that were uninsured by Federal Deposit Insurance Corporation in the amount of approximately $450,000 and $500,000 respectively. Income Taxes The asset and liability method is used in accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for operating loss and tax credit carry forwards and for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured assuming enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets unless it is more likely than not that such asset will be realized. The Company follows FASB Interpretation of “Accounting for Uncertainty in Income Taxes.” At December 31, 2021 and December 31, 2020, the Company evaluated its tax positions and did not have any unrecognized tax benefits. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company currently has no federal or state tax examinations in progress. Accounting for Stock Based Compensation The stock-based compensation expense incurred by the Company for employees and directors is based on the employee model of ASC 718, and the fair market value of the options is measured at the grant date. Under ASC 718 employee is defined as “An individual over whom the grantor of a share-based compensation award exercises or has the right to exercise sufficient control to establish an employer-employee relationship based on common law as illustrated in case law and currently under U.S. “tax regulations.” Our consultants do not meet the employer-employee relationship as defined by the IRS and therefore are accounted for under ASC 718 as amended by ASU 2018-07. As such, the grant date is the measurement date of an award’s fair value. |
BASIC AND DILUTED NET LOSS PER
BASIC AND DILUTED NET LOSS PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2021 | |
BASIC AND DILUTED NET LOSS PER COMMON SHARE | |
BASIC AND DILUTED NET LOSS PER COMMON SHARE | NOTE 4 - BASIC AND DILUTED NET LOSS PER COMMON SHARE: Basic loss per common share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding. Diluted loss per share is computed by dividing the net loss by the sum of the weighted-average number of shares of common stock outstanding plus the dilutive effect of shares issuable through the exercise of common stock equivalents. We have excluded 6,909,000 and 6,909,000 common stock equivalents (warrants - Note 6) from the calculation of diluted loss per share for the years ended December 31, 2021 and 2020, respectively, which, if included, would have an antidilutive effect. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
INCOME TAXES | |
INCOME TAXES | NOTE 5 - INCOME TAXES: On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (the “Tax Act”), which significantly changed U.S. tax law. The Act lowered the Company’s U.S. statutory federal income tax rate from 35% to 21% effective January 1, 2018, while also imposing a deemed repatriation tax on previously deferred foreign income. The Act also created a new minimum tax on certain future foreign earnings. The Act will impact the Company’s income tax expense (benefit) from continuing operations in future periods (approximate 25% effective combined federal and state corporate tax rate). The Company has recorded a full valuation allowance on its net deferred tax assets and therefore any impact on the value of the company’s deferred tax assets will be offset by a change in the valuation allowance. Our tax provision is determined using an estimate of our annual effective tax rate adjusted for discrete items, if any, that are taken into account in the relevant period. The 2021 and 2020 annual effective tax rate is estimated to be a combined 25%, respectively for the U.S. combined federal and state statutory tax rates. We review tax uncertainties in light of changing facts and circumstances and adjust them accordingly. As of December 31, 2021 and 2020, there were no tax contingencies or unrecognized tax positions recorded. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities recognized for financial reporting, and the amounts recognized for income tax purposes. The significant components of deferred tax assets (at an approximate 25% effective tax rate) as of December 31, 2021 and 2020, respectively, are as follows: December 31, 2021 December 31, 2020 Deferred tax assets and valuation allowances consist of: Deferred tax assets: Net operating loss carry forwards $ 315,000 $ 310,000 Less valuation allowance (315,000 ) (310,000 ) Net deferred tax assets $ - $ - The Company has a net operating loss carry forward for federal and state tax purposes of approximately $1,259,000 and $1,241,000 as of December 31, 2021 and 2020, respectively, that is potentially available to offset future taxable income. The Company, had approximately $1,000 in net operating losses expire in the current year. The Act changes the rules on net operating loss carry forwards. The 20-year limitation was eliminated for losses incurred after January 1, 2018, giving the taxpayer the ability to carry forward losses indefinitely. However, net operating loss carry forward arising after January 1, 2018, will now be limited to 80 percent of taxable income. For financial reporting purposes, no deferred tax asset was recognized because at December 31, 2021 and 2020, management estimates that it is more likely than not that substantially all of the net operating losses will expire unused. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences are deductible. The timing and manner in which we can utilize our net operating loss carry forward and future income tax deductions in any year may be limited by provisions of the Internal Revenue Code regarding the change in ownership of corporations. Such limitation may have an impact on the ultimate realization of our carry forwards and future tax deductions. Section 382 of the Internal Revenue Code (“Section 382”) imposes limitations on a corporation’s ability to utilize net operating losses if it experiences an “ownership change.” In general terms, an ownership change may result from transactions increasing the ownership of certain stockholders in the stock of a corporation by more than 50 percentage points over a three-year period. Any unused annual limitation may be carried over to later years, and the amount of the limitation may under certain circumstances be increased by the built-in gains in assets held by us at the time of the change that are recognized in the five-year period after the change. Upon review of the ownership shifts, there has not been an ownership change as defined under Section 382. The following is a reconciliation of the tax derived by applying the statutory rate to the earnings before income taxes, and comparing that to the recorded income tax (expense) benefits: Year ended December 31, 2021 2020 Tax benefits (expense) at statutory rate 25 % 25 % Unrecognized tax benefits (expense) of current period tax losses (25 )% (25 )% Effective tax rate - - The Company had no uncertain tax positions that would necessitate recording of a tax related liability. The Company’s tax returns for the years ended December 31, 2021, 2020 and 2019 are open for examination under Federal Statute of Limitations. |
WARRANTS AND PREFERRED STOCKS
WARRANTS AND PREFERRED STOCKS | 12 Months Ended |
Dec. 31, 2021 | |
WARRANTS AND PREFERRED STOCKS | |
WARRANTS AND PREFERRED STOCKS | NOTE 6 - WARRANTS AND PREFERRED STOCKS: Warrants 2021 Extension of Warrant Terms On September 7, 2021, the Company, acting by resolution of its Board of Directors, amended and extended the expiration date of its outstanding warrants to purchase up to 6,909,000 shares of common stock. In addition to extending the expiration date to March 7, 2023, the Company removed (i) a provision automatically exercising the Warrants on a “cashless” basis of its stock traded above the exercise price for the five (5) days prior to expiration and (ii) the right of warrant holders to participate in any distribution to its stockholders by the Company, to the extent the warrants were unexercised at the time of such a distribution; the exercise price and all other terms of the original warrant agreement remain the same. The warrants modification expense of $1,450,890 was computed as the incremental value of the modified warrants over the unmodified warrants on the modification date. Assumptions used in the Black Scholes option-pricing model for these warrants were as follows: Average risk-free interest rate 0.15 % Average expected life-years 1.5 Expected volatility 238.97 % Expected dividends 0 % Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Outstanding at December 31, 2019 6,909,000 0.15 1.69 Granted - - - Extended - - - Exercised - - - Forfeited/expired - - - Outstanding at December 31, 2020 6,909,000 $ 0.15 0.68 Granted - - - Extended 6,909,000 0.15 1.5 Exercised - - - Forfeited/expired (6,909,000 ) 0.15 - Outstanding at December 31, 2021 6,909,000 $ 0.15 1.18 Exercisable at December 31, 2021 6,909,000 $ 0.15 1.18 As of December 31, 2021 and 2020, the average remaining contractual life of the outstanding warrants was 1.18 years and 0.68 year, respectively. The warrants will expire on March 7, 2023. Series A 10% Convertible Preferred Stock The Company has authorized 4,000,000 shares of Series A 10% Convertible Preferred Stock. As of December 31, 2021 and December 31, 2020, there was no preferred stock outstanding. |
EQUITY TRANSACTIONS
EQUITY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
EQUITY TRANSACTIONS | |
EQUITY TRANSACTIONS | NOTE 7 - EQUITY TRANSACTION: On April 20, 2020, the Board of Directors authorized the issuance of 100,000 shares of restricted common stock each to 7 directors and to the Chief Finance officer/ Secretary, valued at approximately $10,000 each for a total of $80,000 based on the closing bid price as quoted on the OTC on April 17, 2020 of $0.10 per share reflecting the last trade on April 8, 2020. On April 23, 2020, the Board of Directors authorized a consulting fee to be paid to William R. Cast in the form of 100,000 shares of restricted common stock valued at approximately $10,000 based on the closing bid price as quoted on the OTC on April 22, 2020 of $0.10 per share reflecting the last trade on April 8, 2020. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2021 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | NOTE 8 - FAIR VALUE MEASUREMENTS: ASC 820, “Fair Value Measurements and Disclosure,” (“ASC 820”) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, not adjusted for transaction costs. ASC 820 also establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels giving the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels are described below: Level 1 Inputs - Unadjusted quoted prices in active markets for identical assets or liabilities that is accessible by the Company; Level 2 Inputs - Quoted prices in markets that are not active or financial instruments for which all significant inputs are observable, either directly or indirectly; Level 3 Inputs - Unobservable inputs for the asset or liability including significant assumptions of the Company and other market participants. There were no transfers in or out of any level during the years ended December 31, 2021 or 2020. Except for those assets and liabilities which are required by authoritative accounting guidance to be recorded at fair value in the Company’s balance sheets, the Company has elected not to record any other assets or liabilities at fair value, as permitted by ASC 820. No events occurred during the years ended December 31, 2021 or 2020 which would require adjustment to the recognized balances of assets or liabilities which are recorded at fair value on a nonrecurring basis. The Company determines fair values for its investment assets as follows: Cash equivalents at fair value - the Company’s cash equivalents, at fair value, consist of money market funds - marked to market. The Company’s money market funds are classified within Level 1 of the fair value hierarchy since they are valued using quoted market prices from an exchange. The following tables provide information on those assets measured at fair value on a recurring basis as of December 31, 2021 and December 31, 2020, respectively: Carrying Amount In Balance Sheet December 31, Fair Value December 31, Fair Value Measurement Using 2021 2021 Level 1 Level 2 Level 3 Assets: Treasury and government securities $ 450,000 $ 450,000 $ 450,000 $ — $ — Money market funds 47,135 47,135 47,135 — — Total Assets $ 497,135 $ 497,135 $ 497,135 $ — $ — Carrying Amount In Balance Sheet December 31, Fair Value December 31, Fair Value Measurement Using 2020 2020 Level 1 Level 2 Level 3 Assets: Treasury and government securities $ 500,000 $ 500,000 $ 500,000 $ - $ - Money market funds 70,671 70,671 70,671 - - Total Assets $ 570,671 $ 570,671 $ 570,671 $ - $ - |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 9 - COMMITMENTS AND CONTINGENCIES: The Company’s Board of Directors has agreed to pay the Company’s Chief Financial Officer an annual salary of $17,000. No other officers or directors of the Company receive cash compensation other than reimbursement of out-of-pocket expenses incurred in connection with Company business and development. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 10 - SUBSEQUENT EVENTS: The Company has evaluated subsequent events from December 31, 2021 through the issuance date of these financial statements, and there are no events requiring disclosure. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Use of Estimates: | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | The Company considers all highly liquid investments that are readily convertible into cash with a remaining maturity of three months or less at the time of acquisition to be cash equivalents. The Company maintains its cash and cash equivalents balances with high credit quality financial institutions. As of December 31, 2021 and 2020, the Company had cash in insured accounts in the amount of $47,135 and $70,671, respectively, and cash equivalents (Treasury and government securities) held in financial institutions that were uninsured by Federal Deposit Insurance Corporation in the amount of approximately $450,000 and $500,000 respectively. |
Income Taxes | The asset and liability method is used in accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for operating loss and tax credit carry forwards and for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured assuming enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets unless it is more likely than not that such asset will be realized. The Company follows FASB Interpretation of “Accounting for Uncertainty in Income Taxes.” At December 31, 2021 and December 31, 2020, the Company evaluated its tax positions and did not have any unrecognized tax benefits. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company currently has no federal or state tax examinations in progress. |
Accounting for Stock Based Compensation | The stock-based compensation expense incurred by the Company for employees and directors is based on the employee model of ASC 718, and the fair market value of the options is measured at the grant date. Under ASC 718 employee is defined as “An individual over whom the grantor of a share-based compensation award exercises or has the right to exercise sufficient control to establish an employer-employee relationship based on common law as illustrated in case law and currently under U.S. “tax regulations.” Our consultants do not meet the employer-employee relationship as defined by the IRS and therefore are accounted for under ASC 718 as amended by ASU 2018-07. As such, the grant date is the measurement date of an award’s fair value. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
INCOME TAXES | |
Schedule of deferred tax assets | December 31, 2021 December 31, 2020 Deferred tax assets and valuation allowances consist of: Deferred tax assets: Net operating loss carry forwards $ 315,000 $ 310,000 Less valuation allowance (315,000 ) (310,000 ) Net deferred tax assets $ - $ - |
Schedule of income tax (expense) benefits | Year ended December 31, 2021 2020 Tax benefits (expense) at statutory rate 25 % 25 % Unrecognized tax benefits (expense) of current period tax losses (25 )% (25 )% Effective tax rate - - |
WARRANTS AND PREFERRED STOCKS (
WARRANTS AND PREFERRED STOCKS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
WARRANTS AND PREFERRED STOCKS (Tables) | |
Summary of assumptions used in Black Scholes option-pricing model | Average risk-free interest rate 0.15 % Average expected life-years 1.5 Expected volatility 238.97 % Expected dividends 0 % |
Schedule of Share-based Compensation, Warrant Options | Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Outstanding at December 31, 2019 6,909,000 0.15 1.69 Granted - - - Extended - - - Exercised - - - Forfeited/expired - - - Outstanding at December 31, 2020 6,909,000 $ 0.15 0.68 Granted - - - Extended 6,909,000 0.15 1.5 Exercised - - - Forfeited/expired (6,909,000 ) 0.15 - Outstanding at December 31, 2021 6,909,000 $ 0.15 1.18 Exercisable at December 31, 2021 6,909,000 $ 0.15 1.18 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
FAIR VALUE MEASUREMENTS | |
Schedule of assets and liabilities measured at fair value on a recurring basis | Carrying Amount In Balance Sheet December 31, Fair Value December 31, Fair Value Measurement Using 2021 2021 Level 1 Level 2 Level 3 Assets: Treasury and government securities $ 450,000 $ 450,000 $ 450,000 $ — $ — Money market funds 47,135 47,135 47,135 — — Total Assets $ 497,135 $ 497,135 $ 497,135 $ — $ — Carrying Amount In Balance Sheet December 31, Fair Value December 31, Fair Value Measurement Using 2020 2020 Level 1 Level 2 Level 3 Assets: Treasury and government securities $ 500,000 $ 500,000 $ 500,000 $ - $ - Money market funds 70,671 70,671 70,671 - - Total Assets $ 570,671 $ 570,671 $ 570,671 $ - $ - |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Cash, FDIC insured | $ 47,135 | $ 70,671 |
Cash equivalents, FDIC uninsured | $ 450,000 | $ 500,000 |
BASIC AND DILUTED NET LOSS PE_2
BASIC AND DILUTED NET LOSS PER COMMON SHARE (Details Narrative) - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
BASIC AND DILUTED NET LOSS PER COMMON SHARE | ||
Common stock share excluded from computation of earning per share | 6,909,000 | 6,909,000 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
INCOME TAXES | ||
Tax benefits (expense) at statutory rate | 25.00% | 25.00% |
Unrecognized tax benefits (expense) of current period tax losses | (25.00%) | (25.00%) |
Effective tax rate | 0.00% | 0.00% |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |
Dec. 22, 2017 | Dec. 31, 2021 | Dec. 31, 2020 | |
INCOME TAXES | |||
Net operating loss carry-forwards | $ 1,259,000 | $ 1,241,000 | |
Statutory federal income tax rate | The Act lowered the Company’s U.S. statutory federal income tax rate from 35% to 21% effective January 1, 2018 | ||
Percentage of effective combined federal and state corporate tax rate | 25.00% | 25.00% | 25.00% |
Percentage of taxable income | 80.00% | ||
Reduction in realizable deferred tax assets | 1.00% | ||
Net operating loss | $ 1,000 |
WARRANTS AND PREFERRED STOCKS_2
WARRANTS AND PREFERRED STOCKS (Details) | 12 Months Ended |
Dec. 31, 2021 | |
WARRANTS AND PREFERRED STOCKS (Tables) | |
Average risk-free interest rate | 0.15% |
Average expected life- years | 1 year 6 months |
Expected volatility | 238.97% |
Expected dividends | 0.00% |
WARRANTS AND PREFERRED STOCKS_3
WARRANTS AND PREFERRED STOCKS (Details 1) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Number of warrants/options outstanding, Begenning | 6,909,000 | |
Weighted Average Remaining Contractual Life (Years) | ||
Weighted average remaining contractual life outstanding, beginning | 1 year 2 months 4 days | 8 months 4 days |
Warrant (Member) | ||
Number of warrants/options outstanding, Begenning | 6,909,000 | 6,909,000 |
Number of Warrants | ||
Granted | 0 | 0 |
Extended | 6,909,000 | 0 |
Exercised | 0 | 0 |
Forfeited/expired | 6,909,000 | 0 |
Exercisable | (6,909,000) | |
Number of warrants/options exercisable, Ending | 6,909,000 | |
Weighted Average Exercise Price | ||
Weighted average exercise price outstanding, Begenning | $ 0.15 | $ 0.15 |
Weighted average exercise price outstanding, Ending | 0.15 | $ 0.15 |
Weighted average exercise price outstanding, Forfeited | 0.15 | |
Weighted average exercise price outstanding, Exercisable | $ 0.15 | |
Weighted Average Remaining Contractual Life (Years) | ||
Weighted average remaining contractual life outstanding, beginning | 8 months 5 days | 1 year 8 months 8 days |
Weighted average remaining contractual life outstanding, Granted | 0 years | 0 years |
Weighted average remaining contractual life outstanding, Extended | 1 year 6 months | 0 years |
Weighted average remaining contractual life outstanding, Exercised | 0 years | 0 years |
Weighted average remaining contractual life outstanding, Forfeited/expired | 0 years | 0 years |
Weighted average remaining contractual life outstanding, Ending | 1 year 2 months 4 days | 8 months 4 days |
Weighted average remaining contractual life outstanding, Exercisable | 1 year 2 months 4 days |
WARRANTS AND PREFERRED STOCKS_4
WARRANTS AND PREFERRED STOCKS (Details Narrative) - USD ($) | Jul. 09, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Preferred stock, shares authorized | 4,000,000 | 4,000,000 | ||
Average remaining contractual life | 1 year 2 months 4 days | 8 months 4 days | ||
Warrants modification expense | $ 1,450,890 | $ 0 | ||
Number of warrants/options outstanding, beginning | 6,909,000 | 6,909,000 | ||
Warrant (Member) | ||||
Average remaining contractual life | 8 months 5 days | 1 year 8 months 8 days | ||
Number of warrants/options outstanding, beginning | 6,909,000 | 6,909,000 | 6,909,000 | |
Expiry date | Mar. 7, 2023 | |||
Warrant (Member) | 2019 Extension of Warrant Terms [Member] | ||||
Average remaining contractual life | 8 months 5 days | 1 year 8 months 9 days | ||
Warrants modification expense | $ 1,450,890 | |||
Number of warrants/options outstanding, beginning | 6,909,000 | |||
Maturity date | Sep. 7, 2021 | |||
Per share price | $ 0.15 |
EQUITY TRANSACTIONS (Details Na
EQUITY TRANSACTIONS (Details Narrative) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Apr. 23, 2020 | Apr. 20, 2020 |
EQUITY TRANSACTIONS | ||||
Common stock value per director | $ 10,000 | |||
Common stock value | $ 624 | $ 624 | $ 10,000 | $ 80,000 |
Bid price | $ 0.10 | $ 0.10 | ||
Consulting fees paid to wiliam r cast in shares | 100,000 | |||
Common stock, shares authorized | 200,000,000 | 200,000,000 | 100,000 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets at fair value on recurring basis | $ 497,135 | $ 570,671 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets at fair value on recurring basis | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets at fair value on recurring basis | 0 | 0 |
Fair Value [Member] | ||
Assets at fair value on recurring basis | 497,135 | 570,671 |
Treasury and government securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets at fair value on recurring basis | 450,000 | 500,000 |
Treasury and government securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets at fair value on recurring basis | 0 | 0 |
Treasury and government securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets at fair value on recurring basis | 0 | 0 |
Treasury and government securities [Member] | Fair Value [Member] | ||
Assets at fair value on recurring basis | 450,000 | 500,000 |
Money market funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets at fair value on recurring basis | 47,135 | 70,671 |
Money market funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets at fair value on recurring basis | 0 | 0 |
Money market funds [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets at fair value on recurring basis | 0 | 0 |
Money market funds [Member] | Fair Value [Member] | ||
Assets at fair value on recurring basis | 47,135 | 70,671 |
Carrying Value [Member] | ||
Assets at fair value on recurring basis | 497,135 | 570,671 |
Carrying Value [Member] | Treasury and government securities [Member] | ||
Assets at fair value on recurring basis | 450,000 | 500,000 |
Carrying Value [Member] | Money market funds [Member] | ||
Assets at fair value on recurring basis | $ 47,135 | $ 0 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Chief Financial Officer [Member] | |
Annual salary | $ 17,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Net operating loss carry forwards | $ 315,000 | $ 310,000 |
Less valuation allowance | (315,000) | (310,000) |
Net deferred tax assets | $ 0 | $ 0 |