Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 25, 2022 | |
Cover [Abstract] | ||
Entity Registrant Name | CHASE PACKAGING CORPORATION | |
Entity Central Index Key | 0001025771 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | true | |
Entity Shell Company | true | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Jun. 30, 2022 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Entity Common Stock Shares Outstanding | 62,379,759 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 0-21609 | |
Entity Incorporation State Country Code | DE | |
Entity Tax Identification Number | 93-1216127 | |
Entity Interactive Data Current | Yes | |
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 | |
Local Phone Number | 741-1500 |
CONDENSED BALANCE SHEETS
CONDENSED BALANCE SHEETS - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 465,934 | $ 497,135 |
TOTAL ASSETS | 465,934 | 497,135 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued expenses | 860 | 477 |
TOTAL CURRENT LIABILITIES | 860 | 477 |
STOCKHOLDERS' EQUITY: | ||
Preferred stock, $1.00 par value; 4,000,000 authorized: Series A 10% Convertible preferred stock; 50,000 shares designated; 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 shares outstanding as of June 30, 2022 and December 31, 2021 | 624 | 624 |
Treasury stock, $0.00001 par value 497,587 shares as of June 30, 2022 and December 31, 2021 | (49,759) | (49,759) |
Additional paid-in capital | 8,493,912 | 8,493,912 |
Accumulated deficit | (7,979,703) | (7,948,119) |
TOTAL STOCKHOLDERS' EQUITY | 465,074 | 496,658 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 465,934 | $ 497,135 |
CONDENSED BALANCE SHEETS (Paren
CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
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 | $ 0.00001 |
Treasury Stock, Shares Issued | 497,587 | 497,587 |
10% Series A Convertible Preferred Stock [Member] | ||
Preferred Stock, Shares Designated | 50,000 | 50,000 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
CONDENSED STATEMENTS OF OPERATIONS (Unaudited) | ||||
NET SALES | $ 0 | $ 0 | $ 0 | $ 0 |
EXPENSES: | ||||
General and administrative expense | 9,761 | 16,428 | 31,862 | 40,792 |
LOSS FROM OPERATIONS | (9,761) | (16,428) | (31,862) | (40,792) |
OTHER INCOME | ||||
Interest and other income | 250 | 32 | 278 | 54 |
TOTAL OTHER INCOME | 250 | 32 | 278 | 54 |
LOSS BEFORE INCOME TAXES | (9,511) | (16,396) | (31,584) | (40,738) |
Provision for income taxes | 0 | 0 | 0 | 0 |
NET LOSS | $ (9,511) | $ (16,396) | $ (31,584) | $ (40,738) |
BASIC AND DILUTED LOSS PER COMMON SHARE | $ 0 | $ 0 | $ 0 | $ 0 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC AND DILUTED | 61,882,172 | 61,882,172 | 61,882,172 | 61,882,172 |
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, 2020 | 0 | 62,379,759 | 497,587 | |||
Balance, amount at Dec. 31, 2020 | $ 568,194 | $ 0 | $ 624 | $ (49,759) | $ 7,043,022 | $ (6,425,693) |
Net loss | (24,342) | $ 0 | $ 0 | $ 0 | 0 | (24,342) |
Balance, shares at Mar. 31, 2021 | 0 | 62,379,759 | 497,587 | |||
Balance, amount at Mar. 31, 2021 | 543,852 | $ 0 | $ 624 | $ (49,759) | 7,043,022 | (6,450,035) |
Balance, shares at Dec. 31, 2020 | 0 | 62,379,759 | 497,587 | |||
Balance, amount at Dec. 31, 2020 | 568,194 | $ 0 | $ 624 | $ (49,759) | 7,043,022 | (6,425,693) |
Net loss | (40,738) | |||||
Balance, shares at Jun. 30, 2021 | 0 | 62,379,759 | 497,587 | |||
Balance, amount at Jun. 30, 2021 | 527,456 | $ 0 | $ 624 | $ (49,759) | 7,043,022 | (6,466,431) |
Balance, shares at Mar. 31, 2021 | 0 | 62,379,759 | 497,587 | |||
Balance, amount at Mar. 31, 2021 | 543,852 | $ 0 | $ 624 | $ (49,759) | 7,043,022 | (6,450,035) |
Net loss | (16,396) | $ 0 | $ 0 | $ 0 | 0 | (16,396) |
Balance, shares at Jun. 30, 2021 | 0 | 62,379,759 | 497,587 | |||
Balance, amount at Jun. 30, 2021 | 527,456 | $ 0 | $ 624 | $ (49,759) | 7,043,022 | (6,466,431) |
Balance, shares at Dec. 31, 2021 | 0 | 62,379,759 | 497,587 | |||
Balance, amount at Dec. 31, 2021 | 496,658 | $ 0 | $ 624 | $ (49,759) | 8,493,912 | (7,948,119) |
Net loss | (22,073) | $ 0 | $ 0 | $ 0 | 0 | (22,073) |
Balance, shares at Mar. 31, 2022 | 0 | 62,379,759 | 497,587 | |||
Balance, amount at Mar. 31, 2022 | 474,585 | $ 0 | $ 624 | $ (49,759) | 8,493,912 | (7,970,192) |
Balance, shares at Dec. 31, 2021 | 0 | 62,379,759 | 497,587 | |||
Balance, amount at Dec. 31, 2021 | 496,658 | $ 0 | $ 624 | $ (49,759) | 8,493,912 | (7,948,119) |
Net loss | (31,584) | |||||
Balance, shares at Jun. 30, 2022 | 0 | 62,379,759 | 497,587 | |||
Balance, amount at Jun. 30, 2022 | 465,074 | $ 0 | $ 624 | $ (49,759) | 8,493,912 | (7,979,703) |
Balance, shares at Mar. 31, 2022 | 0 | 62,379,759 | 497,587 | |||
Balance, amount at Mar. 31, 2022 | 474,585 | $ 0 | $ 624 | $ (49,759) | 8,493,912 | (7,970,192) |
Net loss | (9,511) | $ 0 | $ 0 | $ 0 | 0 | (9,511) |
Balance, shares at Jun. 30, 2022 | 0 | 62,379,759 | 497,587 | |||
Balance, amount at Jun. 30, 2022 | $ 465,074 | $ 0 | $ 624 | $ (49,759) | $ 8,493,912 | $ (7,979,703) |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (31,584) | $ (40,738) |
Change in operating assets and liabilities: | ||
Accounts payable and accrued expenses | 383 | (1,646) |
Net cash used in operating activities | (31,201) | (42,384) |
CASH FLOWS FROM INVESTING ACTIVITIES | 0 | 0 |
CASH FLOWS FROM FINANCING ACTIVITIES | 0 | 0 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (31,201) | (42,384) |
Cash and cash equivalents, beginning of period | 497,135 | 570,671 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 465,934 | 528,287 |
Cash paid for: | ||
Interest | 0 | 0 |
Income taxes | $ 0 | $ 0 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2022 | |
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. The interim condensed financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in the financial statements prepared in accordance with generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations, although we believe that the disclosures made are adequate to provide for fair presentation and a reasonable understanding of the information presented. The Interim Condensed Financial Statements should be read in conjunction with the financial statements and the related notes, as well as Management’s Discussion and Analysis of Financial Condition and Results of Operations, included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, previously filed with the SEC. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of financial position as of June 30, 2022, results of operations for the three and six months ended June 30, 2022 and 2021, and cash flows for the six months ended June 30, 2022 and 2021, as applicable, have been made. The results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of the operating results for the full fiscal year or any future periods. The accounting policies followed by the Company are set forth in Note 3 to the Company’s financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2021, which is incorporated herein by reference. Specific reference is made to that report for a description of the Company’s securities and the notes to financial statements. |
LIQUIDITY
LIQUIDITY | 6 Months Ended |
Jun. 30, 2022 | |
LIQUIDITY | |
Liquidity | NOTE 2 - LIQUIDITY At June 30, 2022 and December 31, 2021, the Company had cash and cash equivalents of approximately $465,934 and $497,135, respectively, consisting of money market funds and U.S. Treasury Bills. Our net losses incurred for the six months ended June 30, 2022 and 2021, amounted to $31,584 and $40,738, respectively, and we had working capital of approximately $465,074 and $496,658 at June 30, 2022 and December 31, 2021, respectively. Management believes that its cash and cash equivalents are sufficient for its business activities for at least the next twelve months and for the costs of seeking an acquisition of an operating business. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2022 | |
SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS | |
Significant Accounting Policies And Recent Accounting Pronouncements | NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS: 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 June 30, 2022 and December 31, 2021, the Company had cash in insured accounts in the amount of $15,934 and $47,135, respectively, and cash equivalents (Treasury and government securities) held in financial institutions that were uninsured by Federal Deposit Insurance Corporation in the amount of $450,000 and $450,000, 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 June 30, 2022 and December 31, 2021, 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 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. Corresponding expenses for employee and non-employee services are recognized over the requisite service period, which is typically the vesting period. Treasury Stock The Company accounts for treasury stock using the cost method. There were 497,587 shares of Class A common stock held in treasury, purchased at a total cumulative cost of approximately $49,759, as of June 30, 2022 and December 31, 2021. Recent Accounting Pronouncements In August 2020, the FASB issued ASU 2020-06, Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging- Contracts in Entity’s Own Equity (Subtopic 815-40), Debt: Debt with Conversion and Other Options Earnings Per Share In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832) - Disclosures by Business Entities about Government Assistance Recent Accounting Pronouncements - To Be Adopted The FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) 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. |
BASIC AND DILUTED NET LOSS PER
BASIC AND DILUTED NET LOSS PER COMMON SHARE | 6 Months Ended |
Jun. 30, 2022 | |
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 common stock equivalents (warrants - Note 5) from the calculation of diluted loss per share for the three and six months ended June 30, 2022 and 2021, respectively, which, if included, would have an antidilutive effect. |
WARRANTS AND PREFERRED STOCKS
WARRANTS AND PREFERRED STOCKS | 6 Months Ended |
Jun. 30, 2022 | |
WARRANTS AND PREFERRED STOCKS | |
Warrants And Preferred Stocks: | NOTE 5 - 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, 2021 6,909,000 $ 0.15 1.18 Granted — — — Extended — — — Exercised — — — Forfeited/expired — — — Outstanding at June 30, 2022 6,909,000 $ 0.15 0.68 Exercisable at June 30, 2022 6,909,000 $ 0.15 0.68 As of June 30, 2022 and December 31, 2021, the average remaining contractual life of the outstanding warrants was 0.68 years and 1.18 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 Preferred Stock, of which 50,000 shares have been designated as Series A 10% Convertible Preferred Stock. As of June 30, 2022 and December 31, 2021, there was no preferred stock issued or outstanding. |
STOCKHOLDERS EQUITY AND STOCKBA
STOCKHOLDERS EQUITY AND STOCKBASED COMPENSATION | 6 Months Ended |
Jun. 30, 2022 | |
STOCKHOLDERS EQUITY AND STOCKBASED COMPENSATION | |
Stockholders' Equity And Stock-based Compensation | NOTE 6 - STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION: At June 30, 2022 and December 31, 2021, the Company had 61,882,172 common shares outstanding. Also outstanding were warrants relating to 6,909,000 shares of common stock, all totaling 68,791,172 shares of common stock and all common stock equivalents, outstanding at June 30, 2022 and December 31, 2021. The Company did not incur any stock-based compensation or issue common or preferred stock or any other equity instruments during the six months ended June 30, 2022 or 2021. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2022 | |
FAIR VALUE MEASUREMENTS | |
Fair Value Measurements | NOTE 7 - 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 six months ended June 30, 2022 or 2021. 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 six months ended June 30, 2022 or 2021 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 June 30, 2022 and December 31, 2021, respectively: Carrying Amount In Balance Sheet June 30, Fair Value June 30, Fair Value Measurement Using 2022 2022 Level 1 Level 2 Level 3 Assets: Treasury and government securities $ 450,000 $ 450,000 $ 450,000 $ — $ — Money market funds 15,934 15,934 15,934 — — Total Assets $ 465,934 $ 465,934 $ 465,934 $ — $ — 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 $ — $ — |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2022 | |
COMMITMENTS AND CONTINGENCIES | |
Commitments And Contingencies | NOTE 8 - 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 | 6 Months Ended |
Jun. 30, 2022 | |
SUBSEQUENT EVENTS | |
Subsequent Events | NOTE 9 - SUBSEQUENT EVENTS: The Company has evaluated subsequent events from June 30, 2022 through the issuance date of these financial statements, and there are no events requiring disclosure. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS(Policies) | 6 Months Ended |
Jun. 30, 2022 | |
SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS(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 June 30, 2022 and December 31, 2021, the Company had cash in insured accounts in the amount of $15,934 and $47,135, respectively, and cash equivalents (Treasury and government securities) held in financial institutions that were uninsured by Federal Deposit Insurance Corporation in the amount of $450,000 and $450,000, 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 June 30, 2022 and December 31, 2021, 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 | 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. Corresponding expenses for employee and non-employee services are recognized over the requisite service period, which is typically the vesting period. |
Treasury Stock | The Company accounts for treasury stock using the cost method. There were 497,587 shares of Class A common stock held in treasury, purchased at a total cumulative cost of approximately $49,759, as of June 30, 2022 and December 31, 2021. |
Recent Accounting Pronouncements | In August 2020, the FASB issued ASU 2020-06, Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging- Contracts in Entity’s Own Equity (Subtopic 815-40), Debt: Debt with Conversion and Other Options Earnings Per Share In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832) - Disclosures by Business Entities about Government Assistance |
Recent Accounting Pronouncements - To Be Adopted | The FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) 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. |
WARRANTS AND PREFERRED STOCKS (
WARRANTS AND PREFERRED STOCKS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 % Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Outstanding at December 31, 2021 6,909,000 $ 0.15 1.18 Granted — — — Extended — — — Exercised — — — Forfeited/expired — — — Outstanding at June 30, 2022 6,909,000 $ 0.15 0.68 Exercisable at June 30, 2022 6,909,000 $ 0.15 0.68 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
FAIR VALUE MEASUREMENTS | |
Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis | Carrying Amount In Balance Sheet June 30, Fair Value June 30, Fair Value Measurement Using 2022 2022 Level 1 Level 2 Level 3 Assets: Treasury and government securities $ 450,000 $ 450,000 $ 450,000 $ — $ — Money market funds 15,934 15,934 15,934 — — Total Assets $ 465,934 $ 465,934 $ 465,934 $ — $ — 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 $ — $ — |
LIQUIDITY (Details Narrative)
LIQUIDITY (Details Narrative) - USD ($) | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
LIQUIDITY | |||
Net Loss | $ 31,584 | $ 40,738 | |
Cash And Cash Equivalents | 465,934 | $ 497,135 | |
Working Capital | $ 465,074 | $ 496,658 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | ||
Cash, Fdic Insured | $ 15,934 | $ 47,135 |
Cash Equivalents, Fdic Uninsured | $ 450,000 | $ 450,000 |
Treasury Stock, Shares Issued | 497,587 | 497,587 |
Treasury Stock, $0.00001 Par Value 497,587 Shares As Of June 30, 2022 And December 31, 2021 | $ 49,759 | $ 49,759 |
BASIC AND DILUTED NET LOSS PE_2
BASIC AND DILUTED NET LOSS PER COMMON SHARE (Details Narrative) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
BASIC AND DILUTED NET LOSS PER COMMON SHARE | ||||
Common Stock Share Excluded From Computation Of Earning Per Share | 6,909,000 | 6,909,000 | 6,909,000 | 6,909,000 |
WARRANTS AND PREFERRED STOCKS_2
WARRANTS AND PREFERRED STOCKS (Details) | 6 Months Ended |
Jun. 30, 2022 | |
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% |
WARRANTS AND PREFERRED STOCKS_3
WARRANTS AND PREFERRED STOCKS (Details 1) - Warrant [Member] | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
Number Of Warrants/options Outstanding, Beginning | shares | 6,909,000 |
Number Of Warrants/options Outstanding, Ending | shares | 6,909,000 |
Number Of Warrants/options Outstanding, Exercisable | shares | 6,909,000 |
Weighted Average Exercise Price Outstanding, Begenning | $ / shares | $ 0.15 |
Weighted Average Exercise Price Outstanding, Ending | $ / shares | 0.15 |
Weighted Average Exercise Price Outstanding, Exercisable | $ / shares | $ 0.15 |
Weighted Average Remaining Contractual Life Outstanding, Beginning | 1 year 2 months 4 days |
Weighted Average Remaining Contractual Life Outstanding, Ending | 8 months 4 days |
Weighted Average Remaining Contractual Life Outstanding, Exercisable | 8 months 4 days |
WARRANTS AND PREFERRED STOCKS_4
WARRANTS AND PREFERRED STOCKS (Details Narrative) - USD ($) | 2 Months Ended | 6 Months Ended | 12 Months Ended |
Sep. 07, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | |
Preferred stock, shares authorized | 4,000,000 | 4,000,000 | |
Number of warrants outstanding | 6,909,000 | ||
Modification expense | $ 1,450,890 | ||
Expiry date | Mar. 07, 2023 | ||
Warrant (Member) | |||
Weighted Average Remaining Contractual Life Outstanding, Beginning | 1 year 2 months 4 days | ||
Warrant (Member) | 2021 Extension of Warrant Terms [Member] | |||
Weighted Average Remaining Contractual Life Outstanding, Beginning | 8 months 4 days | 1 year 2 months 4 days | |
10% Series A Convertible Preferred Stock [Member] | |||
Preferred Stock, Shares Designated | 50,000 | 50,000 |
STOCKHOLDERS EQUITY AND STOCK_2
STOCKHOLDERS EQUITY AND STOCKBASED COMPENSATION (Details Narrative) - shares | Jun. 30, 2022 | Dec. 31, 2021 |
STOCKHOLDERS EQUITY AND STOCKBASED COMPENSATION | ||
Total Outstanding Shares | 68,791,172 | |
Common Stock, Shares Outstanding | 61,882,172 | 61,882,172 |
Number Of Warrants/options Outstanding | 6,909,000 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets At Fair Value On Recurring Basis | $ 465,934 | $ 497,135 |
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 | 465,934 | 497,135 |
Treasury and government securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets At Fair Value On Recurring Basis | 450,000 | 450,000 |
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 | 450,000 |
Money market funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets At Fair Value On Recurring Basis | 15,934 | 47,135 |
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 | 15,934 | 47,135 |
Carrying Value [Member] | ||
Assets At Fair Value On Recurring Basis | 465,934 | 497,135 |
Carrying Value [Member] | Treasury and government securities [Member] | ||
Assets At Fair Value On Recurring Basis | 450,000 | 450,000 |
Carrying Value [Member] | Money market funds [Member] | ||
Assets At Fair Value On Recurring Basis | $ 15,934 | $ 47,135 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
10% Series A Convertible Preferred Stock [Member] | |
Annual Salary | $ 17,000 |