Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2021 | May 17, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | Enviro Technologies U.S., Inc. | |
Entity Central Index Key | 0001043894 | |
Document Type | 10-Q | |
Entity Incorporation, State or Country Code | ID | |
Entity File Number | 000-30454 | |
Document Period End Date | Mar. 31, 2021 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Reporting Status Current | Yes | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 4,950,125 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 173,337 | $ 336,564 |
Accounts receivable, net | 35,473 | 1,176 |
Inventory, net | 113,719 | 113,335 |
Prepaid expenses | 13,939 | 12,174 |
Total current assets | 336,468 | 463,249 |
FIXED ASSETS, NET | 300,997 | 312,468 |
OTHER ASSETS | ||
Operating lease asset | 188,863 | 200,066 |
Security deposit | 10,143 | 10,143 |
Total other assets | 199,006 | 210,209 |
Total assets | 836,471 | 985,926 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued expenses | 356,586 | 323,481 |
Accrued Expenses - related party | 743,565 | 706,315 |
Loans payable, current portion | 102,545 | 65,867 |
Equipment note payable, current portion | 72,800 | 71,812 |
Operating lease liability, current portion | 47,474 | 46,255 |
Total current liabilities | 1,322,970 | 1,213,730 |
LONG-TERM LIABILITIES: | ||
Operating lease liabilities, less current portion | 141,389 | 153,811 |
Equipment note payable, less current portion | 84,865 | 103,586 |
Loans payable, less current portion | 159,426 | 196,104 |
Total long-term liabilities | 385,680 | 453,501 |
Total liabilities | 1,708,650 | 1,667,231 |
COMMITMENTS AND CONTINGENCIES (See Note H) | ||
SHAREHOLDERS' (DEFICIENCY): | ||
Common stock, $.001 par value, 250,000,000 shares authorized; 4,950,125 and 4,950,125 shares issued and outstanding as of March 31, 2021 and December 31, 2020 | 4,951 | 4,951 |
Additional paid-in capital | 15,236,173 | 15,236,173 |
Accumulated deficit | (16,113,303) | (15,922,429) |
Total shareholders' (deficiency) | (872,179) | (681,305) |
Total liabilities and shareholders' (deficiency) | $ 836,471 | $ 985,926 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized | 250,000,000 | 250,000,000 |
Common stock, issued | 4,950,125 | 4,950,125 |
Common stock, outstanding | 4,950,125 | 4,950,125 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Revenues, net | $ 37,755 | $ 4,528 |
Cost of goods sold | 14,844 | 765 |
Gross profit | 22,911 | 3,763 |
Costs and expenses: | ||
General and administrative | 77,347 | 84,208 |
Professional fees | 38,827 | 55,212 |
Payroll expense | 90,708 | 131,370 |
Total costs and expenses | 206,882 | 270,790 |
Loss from operations | (183,971) | (267,027) |
Other expenses: | ||
Interest expense | (6,903) | (3,723) |
Total other expense | (6,903) | (3,723) |
Net loss before provisions for income taxes | (190,874) | (270,750) |
Provisions for income taxes | ||
NET LOSS | $ (190,874) | $ (270,750) |
Weighted average number of common shares outstanding - basic and diluted (in shares) | 4,950,125 | 3,578,625 |
Loss per common share - basic and diluted (in dollars per share) | $ (0.04) | $ (0.08) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIENCY) (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Total |
Balance at beginning at Dec. 31, 2019 | $ 3,579 | $ 15,094,095 | $ (14,891,621) | $ 206,053 |
Balance at beginning (in shares) at Dec. 31, 2019 | 3,578,625 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | (270,750) | (270,750) | ||
Balance at ending at Mar. 31, 2020 | $ 3,579 | 15,094,095 | (15,162,371) | (64,697) |
Balance at ending (in shares) at Mar. 31, 2020 | 3,578,625 | |||
Balance at beginning at Dec. 31, 2020 | $ 4,951 | 15,236,173 | (15,922,429) | (681,305) |
Balance at beginning (in shares) at Dec. 31, 2020 | 4,950,125 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | (190,874) | (190,874) | ||
Balance at ending at Mar. 31, 2021 | $ 4,951 | $ 15,236,173 | $ (16,113,303) | $ (872,179) |
Balance at ending (in shares) at Mar. 31, 2021 | 4,950,125 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (190,874) | $ (270,750) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation | 11,471 | 11,328 |
Amortization of operating lease asset | 11,203 | 10,474 |
Changes in assets and liabilities: | ||
Accounts receivable | (34,297) | 296,662 |
Inventory | (384) | (19,629) |
Prepaid expenses | (1,765) | (4,900) |
Accounts payable and accrued expenses | 33,105 | (62,853) |
Operating lease liability | (11,203) | (10,474) |
Accrued expenses - related party | 37,250 | 52,500 |
Net cash (used in) provided by operating activities | (145,494) | 2,358 |
Cash Flows from Investing Activities: | ||
Purchase of equipment | (5,067) | |
Net cash used in Investing activities | (5,067) | |
Cash Flows from Financing Activities: | ||
Repayment of equipment note payable | (17,733) | (16,640) |
Net cash used in financing activities | (17,733) | (16,640) |
Net decrease in cash and cash equivalents | (163,227) | (19,349) |
Cash and cash equivalents, beginning of period | 336,564 | 674,844 |
Cash and cash equivalents, end of period | 173,337 | 655,495 |
Supplemental Disclosures | ||
Cash paid during the period for interest | 2,631 | 3,723 |
Cash paid during the period for taxes |
ORGANIZATION AND OPERATIONS
ORGANIZATION AND OPERATIONS | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND OPERATIONS | NOTE A - ORGANIZATION AND OPERATIONS Enviro Technologies U.S., Inc., a Florida corporation (the “Company”), is a manufacturer and provider of environmental and industrial separation technology. The Company developed, and now manufactures and sells the V-Inline Separator, a technology that efficiently separates liquid/liquid, liquid/solid or liquid/liquid/solid fluid streams with distinct specific gravities. On June 8, 2017, the Company and Florida Precision Aerospace, Inc., a Florida corporation (“FPA”), a wholly-owned subsidiary of the Company, closed the transactions contemplated by the Technology Purchase Agreement dated March 13, 2017 with Schlumberger Technology Corporation, a Texas corporation, Schlumberger Canada Limited, a Canadian entity, and Schlumberger B.V., an entity organized under the laws of the Netherlands (collectively, “Schlumberger”) for the sale of our intellectual property, substantially consisting of Voraxial patents, marks, software and copyrights (the “Intellectual Property”). As part of the agreement, Schlumberger granted us a non-exclusive, worldwide, royalty-free licenses (the “Grant Back Licenses”), to make, use, sell, offer for sale, and import products and processes embodying the Intellectual Property outside the oil and gas market. Current and potential commercial applications and markets include mining, utilities, manufacturing, waste-to-energy among other industries. FPA is used to manufacture, assemble and test the V-Inline Separator. On August 20, 2020, the Company’s shareholders approved a change of domicile of the Company from Idaho to Florida. On December 28, 2020, the Company received the file stamped Certificate of Domestication and Articles of Incorporation from the Secretary of State of Florida, which was effective on December 18, 2020, thereby completing the change in domicile from Idaho to Florida. In connection with the change in domicile from Idaho to Florida, the Company’s name changed to “Enviro Technologies U.S., Inc.”. |
GOING CONCERN
GOING CONCERN | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
GOING CONCERN | NOTE B – GOING CONCERN Since entering into the Technology Purchase Agreement, Supply Agreement and Grant Back License in June 2017, we have generated limited revenues, significantly less than we anticipated, under the terms of any of these agreements. Although the Supply Agreement expired in June 2020, we continue to have a relationship with Schlumberger. The Grant Back License did not expire. There are no assurances that the Grant Back License will ever generate any material ongoing revenues. We intend to continue to seek opportunities for the V-Inline Separator. Our ability to increase our revenues in future periods will depend on a number of factors, many of which are beyond our control, including our ability to generate sales of the V-Inline Separator, our ability to leverage the Grant Back License to generate additional revenues, the continuing impact of the Covid-19 pandemic on the economy in general and the Company in particular, competitive efforts and other general economic trends. There are no assurances we will return to the pre-Covid revenue and profitability levels of 2019 or report profitable operations in the future. Further, the lingering economic impact of the Covid-19 pandemic may have a continued negative effect on the potential for sales of V-inline Separators. At March 31, 2021, we had a working capital deficit of $986,502, an accumulated deficit of $16,113,303. We do not have any external sources of liquidity. Our revenues have declined significantly from quarter ended and year ended December 31, 2019, our last full reporting period prior to the start of Covid-19 pandemic and has yet to recover. Covid-19 pandemic has created a very challenging economic condition for our company. In an effort to conserve our cash resources to sustain our operations until such time as the economy begins returning to pre-Covid-19 pandemic activity levels, we have reduced employee hours and accrued a portion of management’s salary. We also have begun marketing our machining capabilities to local manufactures. There are no assurances, however, that these efforts will be sufficient to permit us to pay our operating expenses. In the event we cannot increase our revenues, we may be required to scale back or cease operations, sell or liquidate our assets and possibly seek bankruptcy protection. As a result of the above, there is substantial doubt about the ability of the Company to continue as a going concern and the accompanying condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The accompanying condensed consolidated financial statements do not include any adjustments that may result from the outcome of this uncertainty. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE C - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION The condensed consolidated financial statements presented herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated financial statements should be read in conjunction with the company’s annual consolidated financial statements, notes and accounting policies included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, as filed with the SEC on March 31, 2021. In the opinion of management, all adjustments, which are necessary to provide a fair presentation of financial position as of March 31, 2021, and the related operating results and cash flows for the interim period presented, have been made. The results of operations, for the period presented are not necessarily indicative of the results to be expected for the year. Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of the parent company, Enviro Technologies U.S., Inc., and its wholly-owned subsidiary, Florida Precision Aerospace, Inc. All significant intercompany accounts and transactions have been eliminated. Estimates The preparation of consolidated 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 disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates include valuation of deferred tax assets, allowance for doubtful accounts and allowance for inventory obsolescence. Actual results may differ. Revenue Recognition We account for our revenues in accordance with the Accounting Standard Codification Topic 606, “ Revenue from Contracts with Customers The Company derives its revenue from the sale of the V-Inline Separators and some high precision manufacturing projects. We pursued designing, manufacturing and selling face shields during the Covid-19 quarantine period and are constantly seeking other sources of revenues. Revenues that are generated from high precision manufacturing projects are recognized when we satisfy a performance obligation by transferring control of the promised goods or services to our customers at a point in time, in an amount specified in the contract with our customer and that reflects the consideration we expect to be entitled to in exchange for those goods or services. The Company also assesses our customer’s ability and intention to pay, which is based on a variety of factors including our customer’s historical payment experience and financial condition. Revenues that are generated from sales of V-Inline separators, auxiliary equipment and parts and face shields are typically recognized upon shipment. Our standard agreements generally do not include customer acceptance or post shipment installation provisions. However, if such provisions have been included or there is an uncertainty about customer order, revenue is deferred until we have evidence of customer order and all terms of the agreement have been complied with. As of March 31, 2021, and December 31, 2020, respectively, there was $0 of deposits from customers. ACCOUNTS RECEIVABLE Accounts receivable are presented net of an allowance for doubtful accounts. The company maintains allowances for doubtful accounts for estimated losses. The company reviews the accounts receivable on a periodic basis and makes general and specific allowance when there is a doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, customer’s historical payment history, and its current credit-worthiness and current economic trends. Accounts are written off after exhaustive efforts at collections. At March 31, 2021 and December 31, 2020, the Company has $7,044 and $7,044 in the allowance for doubtful accounts, respectively. Fair Value of Instruments The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, inventory, accounts payable and accrued expenses at March 31, 2021 and December 31, 2020, approximate their fair value because of their relatively short-term nature. ASC 820 “ Disclosures about Fair Value of Financial Instruments The Company accounts for certain assets and liabilities at fair value. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value is observable in the market. We categorize each of our fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are: Level 1—inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. We have no Level 1 instruments as of March 31, 2021 and December 31, 2020. Level 2— inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques (e.g. the Black-Scholes model) for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, foreign exchange rates, and forward and spot prices for currencies and commodities. We have no Level 2 instruments as of March 31, 2021 and December 31, 2020. Level 3— inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including option pricing models and discounted cash flow models. We have no Level 3 instruments as of March 31, 2021 and December 31, 2020. Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less at the date of purchase to be cash equivalents. The Company maintains its cash balances with various financial institutions. Balances at these institutions may at times exceed the Federal Deposit Insurance Corporate (“FDIC”) limits. As of March 31, 2021 and December 31, 2020, the Company has a cash concentration in excess of FDIC limits of $0 and $80,014, respectively. Inventory Inventory primarily consists of components, including raw material and finished parts for the V-Inline Separator and face shields and is priced at lower of cost or net realizable value. Net realizable value is defined as sales price less cost of completion and disposable and transportation. Inventory may include units being rented on a short term basis or components held by third parties in connection with pilot programs as part of the continuing evaluation by such third parties as to the effectiveness and usefulness of the service to be incorporated into their respective operations. The third parties do not have a contractual obligation to purchase the equipment. The Company maintains the title and risk of loss. Therefore, these units are included in the inventory of the Company. As of March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Raw materials $ 30,529 $ 30,145 Work in process 10,240 10,240 Finished goods 72,950 72,950 Total $ 113,719 $ 113,335 Inventory amounts are presented net of allowance for inventory reserves of $75,785 and $75,785 as of March 31, 2021 and December 31, 2020, respectively. Fixed Assets Fixed assets are stated at cost less accumulated depreciation. The cost of maintenance and repairs is expensed to operations as incurred. Depreciation is computed by the straight-line method over the estimated economic useful life of the assets (5-10 years). Gains and losses recognized from the sales or disposal of assets is the difference between the sales price and the recorded cost less accumulated depreciation less costs of disposal. Net Loss Per Share In accordance with the accounting guidance now codified as FASB ASC Topic 260, “ Earnings per Share” As of March 31, 2021 and 2020, there were 10,000 and 1,346,500 shares issuable upon the exercise of options, respectively. The Company had a net loss for the periods ended March 31, 2021 and 2020; therefore, common stock equivalent shares are excluded from the computation of net loss per share if their effect is anti-dilutive. INCOME TAXES The Company accounts for income taxes under ASC 740-10-25. Under ASC 740-10-25, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740-10-25, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. BUSINESS SEGMENTS The Company operates in one segment and therefore segment information is not presented. LEASES The Company accounts for leases in accordance with Accounting Standard Codification Topic 842. Advertising Costs Advertising costs are expensed as incurred and are included in general and administrative expenses. There was $168 and $1,863 in advertising costs during the periods ended March 31, 2021 and March 31, 2020, respectively. Stock-Based Compensation The Company accounts for stock-based instruments issued for services in accordance with ASC 718 “ Compensation – Stock Compensation Recent Accounting Pronouncements All newly issued accounting pronouncements, but not yet effective, have been deemed either immaterial or not applicable. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE D - RELATED PARTY TRANSACTIONS For the three months ended March 31, 2021, the Company incurred salary expenses for the Chief Executive Officer of the Company of $52,500. During the three months ended March 31, 2021, a total of $26,250 of salary and accrued salary have been paid. The total unpaid balance as of March 31, 2021 is $690,565 and is included in accrued expenses – related party. For the three month ended March 31, 2020, the Company incurred salary expenses for the Chief Executive Officer of the Company of $52,500. Of these amounts, $0 had been paid for the three months ended March 31, 2020. The total unpaid balance as of March 31, 2021 and December 31, 2020 are $663,465 and $664,315, respectively, which are included in accrued expenses – related party. During the three months ended March 31, 2021 and 2020, Mr. Veldman, received compensation for being a member of the Company’s board of directors of $3,000 and $3,000, respectively. The unpaid balance has been included in accrued expenses-related party. Mr. John DiBella does not receive compensation for being a member of the Company’s board of directors. Effective July 1, 2017, Raynard Veldman, a member of the Company’s board of directors, receives a fee of $2,500 per month for consulting services. During the three months ended March 31, 2021 and 2020, Mr. Veldman received consulting fees of $7,500 and $7,500, respectively. The unpaid balance has been included in accrued expenses- related party. As of March 31, 2021 and December 31, 2020 |
FIXED ASSETS
FIXED ASSETS | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
FIXED ASSETS | NOTE E – FIXED ASSETS Fixed assets as of March 31, 2021 and December 31, 2020 consist of: March 31, 2021 December 31, 2020 Machinery and equipment $ 941,473 $ 941,473 Furniture and fixtures 14,498 14,498 Autos and Trucks 5,294 5,294 Total 961,265 961,265 Less: accumulated depreciation (660,268 ) (648,797 ) Fixed Assets, net $ 300,997 $ 312,468 Depreciation expense was $11,471 and $11,328 for the three months ended March 31, 2021 and 2020, respectively. |
EQUIPMENT NOTE PAYABLE
EQUIPMENT NOTE PAYABLE | 3 Months Ended |
Mar. 31, 2021 | |
Notes Payable [Abstract] | |
EQUIPMENT NOTE PAYABLE | NOTE F – EQUIPMENT NOTE PAYABLE In July 2017, the Company entered into a financing agreement for the purchase of CNC machining equipment valued at approximately $426,000. The machining equipment was received in July 2017 and was used for the manufacture of Voraxial Separators under the Supply Agreement and sales of the V-Inline Separators. Under the terms of the agreement the Company made an initial down payment of $85,661 and is required to make monthly payments of $6,788 through January 2023. In addition, the Company incurred $24,281 of installation costs. As of March 31, 2021 and December 31, 2020 the amount owed is $157,665 and $175,398, respectively. See NOTE K “SUBSEQUENT EVENTS”. March 31, 2021 (unaudited) December 31, 2020 Equipment note payable $ 157,665 $ 175,398 Less: current portion 72,800 71,812 Long-term equipment note payable $ 84,865 $ 103,586 |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | note G – shareholders’ equity Options Number Outstanding Exercise Price Number Exercisable Balance, December 31, 2020 10,000 $0.10 10,000 Issued — — — Expired — — — Forfeited — — — Balance, March 31, 2021 10,000 $0.10 10,000 Exercise Price Number Weighted Average Weighted Number Weighted 0.10 10,000 2.63 $0.10 10,000 $0.10 Total 10,000 — — 10,000 — The aggregate intrinsic value represents the excess amount over the exercise price optionees would have received if all the options have been exercised on the last business day of the period indicated based on the Company’s closing stock price of for such day. The aggregate intrinsic value as of March 31, 2021 is $1,500. The Company accounts for stock-based instruments issued for services in accordance with ASC 718 “ Compensation – Stock Compensation The Black-Scholes option-pricing model was developed for use in estimating the fair value of traded options, which have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility. Because the Company’s stock options and warrants have characteristics different from those of its traded stock, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing models do not necessarily provide a reliable single measure of the fair value of such stock options. The risk-free interest rate is based upon quoted market yields for United States Treasury debt securities with a term similar to the expected term. The expected dividend yield is based upon the Company’s history of having never issued a dividend and management’s current expectation of future action surrounding dividends. Expected volatility was based on historical data for the trading of our stock on the open market. The expected lives for such grants were based on the simplified method. REVERSE SPLIT On August 27, 2020 the Company filed Articles of Amendment to its Articles of Incorporation which, on the effective date of September 10, 2020 (the “Effective Date”): • effected a ten for one (10:1) reverse stock split of our outstanding common stock (“Reverse Stock Split”); and • eliminated the existing class of preferred stock and create a new class of blank check preferred stock consisting of 5,000,000 shares. These actions were approved by our shareholders at our 2020 Annual Meeting held on August 20, 2020. As a result of the Reverse Stock Split, on the Effective Date each 10 shares of our common stock issued and outstanding immediately prior to the Effective Date became one share of our common stock on the Effective Date. No fractional shares of common stock were issued to any shareholder in connection with the Reverse Stock Split and all fractional shares which might otherwise be issuable as a result of the Reverse Stock Split were rounded up to the nearest whole share. On the Effective Date, each certificate representing shares of pre-Reverse Stock Split common stock was deemed to represent one-tenth of a share of our post-Reverse Stock Split common stock, subject to rounding for fractional shares. The Reverse Stock Split also affected the Company’s outstanding stock options which resulted in the underlying shares of such instruments being reduced and exercise price being increased proportionally to the Reverse Stock Split ratio. All shares and per share data have been retroactively adjusted for all periods presented to reflect the effects of the Reverse Stock Split. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE H – COMMITMENTS AND CONTINGENCIES SBA AND PPP LOANS On May 4, 2020, FPA received a loan (the “PPP Loan”) from Bank of America, N.A. in the aggregate amount of $111,971, pursuant to the Paycheck Protection Program (the “PPP”) under Division A, Title I of the CARES Act, which was enacted March 27, 2020. The PPP Loan, which was in the form of a Note dated May 4, 2020 issued by FPA, matures on May 4, 2022 and bears interest at a rate of 1% per annum, payable monthly commencing on November 6, 2020. The Note may be prepaid by FPA at any time prior to maturity with no prepayment penalties. Funds from the PPP Loan may only be used for payroll costs, costs used to continue group health care benefits, mortgage payments, rent, utilities, and interest on other debt obligations incurred before February 15, 2020. FPA believes it used the entire PPP Loan amount for qualifying expenses. Under the terms of the PPP Loan, certain amounts of the PPP Loan may be forgiven if they are used for qualifying expenses as described in the CARES Act. We intend to apply for forgiveness of the PPP Loan in accordance with the terms of the CARES Act. On June 23, 2020, FPA executed the standard loan documents required for securing a loan (the “EIDL Loan”) from the SBA under its Economic Injury Disaster Loan (“EIDL”) assistance program in light of the impact of the Covid-19 pandemic on the Company’s business. Pursuant to that certain Loan Authorization and Agreement, the principal amount of the EIDL Loan is up to $150,000, with proceeds to be used for working capital purposes. On July 16, 2020, the Company has requested $150,000 in disbursements under the EIDL Loan. The funds were received on July 20, 2020. Interest accrues at the rate of 3.75% per annum. Installment payments, including principal and interest, are due monthly beginning June 23, 2021 (12 months from the date of the SBA note) in the amount of $731. The balance of principal and interest is payable 30 years from the date of the SBA Note. In connection therewith, FPA executed (i) a note for the benefit of the SBA, which contains customary events of default and (ii) a Security Agreement, granting the SBA a security interest in all tangible and intangible personal property of FPA, which also contains customary events of default. March 31, 2021 (unaudited) December 31, 2020 Loans payable $ 261,971 $ 261,971 Less: current portion (102,545 ) (65,867 ) Long-term loans payable $ 159,426 $ 196,104 Litigation On or about October 23, 2017, a claim was filed in the 17th Judicial Circuit Court in and for Broward County in Fort Lauderdale, Florida, by the plaintiff, Industrial and Oilfield Procurement Services, LLC, against our company. The case involves an alleged breach of contract between the parties relating to the purchase and sale of a Voraxial unit in 2015. The plaintiff has demanded a refund and damages. We are defending the case vigorously. |
LEASE
LEASE | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
LEASE | NOTE I - LEASE In December 2018, the Company entered into a three (3) year lease for an office and manufacturing facility located at 821 NW 57 th For the three months ended March 31, 2021 and 2020, the total lease cost was $20,220 and $19,510, respectively, which includes variable lease cost of $5,704 and $4,771, respectively. Variable lease cost primarily relates to common area maintenance, property taxes and insurance on leased real estate. For the three months ended March 31, 2021 and 2020, cash paid for operating lease liabilities was $14,516 and $14,516, respectively. |
MAJOR CUSTOMERS
MAJOR CUSTOMERS | 3 Months Ended |
Mar. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
MAJOR CUSTOMERS | NOTE J – MAJOR CUSTOMERS During the three months ended March 31, 2021, we recorded 76% of our revenue from one customer. During the three months ended March 31, 2020, we recorded 96% of our revenue from two customers, with each representing 57% and 39% of total revenues. As of March 31, 2021, one of the Company’s customers represents 81% of the total accounts receivable. As of December 31, 2020, three of the Company’s customers represents 68%, 17% and 15% of the accounts receivables. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE K – SUBSEQUENT EVENTS On April 5, 2021, FPA received a loan (the “2021 PPP Loan”) from Cross River Bank. in the aggregate amount of $75,085, pursuant to the PPP under Division A, Title I of the CARES Act, which was enacted March 27, 2020. The 2021 PPP Loan, which was in the form of a promissory note dated April 5, 2021 issued by FPA, has a 60 month term and matures on April 5, 2026 and bears interest at a rate of 1.00% per annum, payable monthly commencing on April 5, 2022. The note may be prepaid by FPA at any time prior to maturity with no prepayment penalties. Funds from the PPP Loan may only be used for payroll costs, costs used to continue group health care benefits, mortgage payments, rent, utilities, and interest on other debt obligations. FPA intends to use the entire 2021 PPP Loan amount for qualifying expenses. Under the terms of the PPP, certain amounts of the 2021 PPP Loan may be forgiven if they are used for qualifying expenses as described in the CARES Act. In April 2021, the Company entered into a purchase agreement to sell its CNC machining equipment for $275,000. The machining equipment was received in July 2017 and was used for the manufacture of customer specific projects along with the largest Voraxial and V-Inline Separators. The Company sold the equipment as the utilization of the CNC machining equipment for customer specific projects and the separation equipment decreased due to the Covid-19 pandemic. The Company can still manufacture the Voraxial and V-Inline Separators and manufacture customer specific projects with its current manufacturing equipment. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The condensed consolidated financial statements presented herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated financial statements should be read in conjunction with the company’s annual consolidated financial statements, notes and accounting policies included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, as filed with the SEC on March 31, 2021. In the opinion of management, all adjustments, which are necessary to provide a fair presentation of financial position as of March 31, 2021, and the related operating results and cash flows for the interim period presented, have been made. The results of operations, for the period presented are not necessarily indicative of the results to be expected for the year. |
PRINCIPLES OF CONSOLIDATION | Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of the parent company, Enviro Technologies U.S., Inc., and its wholly-owned subsidiary, Florida Precision Aerospace, Inc. All significant intercompany accounts and transactions have been eliminated. |
ESTIMATES | Estimates The preparation of consolidated 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 disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates include valuation of deferred tax assets, allowance for doubtful accounts and allowance for inventory obsolescence. Actual results may differ. |
REVENUE RECOGNITION | Revenue Recognition We account for our revenues in accordance with the Accounting Standard Codification Topic 606, “ Revenue from Contracts with Customers The Company derives its revenue from the sale of the V-Inline Separators and some high precision manufacturing projects. We pursued designing, manufacturing and selling face shields during the Covid-19 quarantine period and are constantly seeking other sources of revenues. Revenues that are generated from high precision manufacturing projects are recognized when we satisfy a performance obligation by transferring control of the promised goods or services to our customers at a point in time, in an amount specified in the contract with our customer and that reflects the consideration we expect to be entitled to in exchange for those goods or services. The Company also assesses our customer’s ability and intention to pay, which is based on a variety of factors including our customer’s historical payment experience and financial condition. Revenues that are generated from sales of V-Inline separators, auxiliary equipment and parts and face shields are typically recognized upon shipment. Our standard agreements generally do not include customer acceptance or post shipment installation provisions. However, if such provisions have been included or there is an uncertainty about customer order, revenue is deferred until we have evidence of customer order and all terms of the agreement have been complied with. As of March 31, 2021, and December 31, 2020, respectively, there was $0 of deposits from customers. |
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE Accounts receivable are presented net of an allowance for doubtful accounts. The company maintains allowances for doubtful accounts for estimated losses. The company reviews the accounts receivable on a periodic basis and makes general and specific allowance when there is a doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, customer’s historical payment history, and its current credit-worthiness and current economic trends. Accounts are written off after exhaustive efforts at collections. At March 31, 2021 and December 31, 2020, the Company has $7,044 and $7,044 in the allowance for doubtful accounts, respectively. |
FAIR VALUE OF INSTRUMENTS | Fair Value of Instruments The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, inventory, accounts payable and accrued expenses at March 31, 2021 and December 31, 2020, approximate their fair value because of their relatively short-term nature. ASC 820 “ Disclosures about Fair Value of Financial Instruments The Company accounts for certain assets and liabilities at fair value. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value is observable in the market. We categorize each of our fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are: Level 1—inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. We have no Level 1 instruments as of March 31, 2021 and December 31, 2020. Level 2— inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques (e.g. the Black-Scholes model) for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, foreign exchange rates, and forward and spot prices for currencies and commodities. We have no Level 2 instruments as of March 31, 2021 and December 31, 2020. Level 3— inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including option pricing models and discounted cash flow models. We have no Level 3 instruments as of March 31, 2021 and December 31, 2020. |
CASH AND CASH EQUIVALENTS | Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less at the date of purchase to be cash equivalents. The Company maintains its cash balances with various financial institutions. Balances at these institutions may at times exceed the Federal Deposit Insurance Corporate (“FDIC”) limits. As of March 31, 2021 and December 31, 2020, the Company has a cash concentration in excess of FDIC limits of $0 and $80,014, respectively. |
INVENTORY | Inventory Inventory primarily consists of components, including raw material and finished parts for the V-Inline Separator and face shields and is priced at lower of cost or net realizable value. Net realizable value is defined as sales price less cost of completion and disposable and transportation. Inventory may include units being rented on a short term basis or components held by third parties in connection with pilot programs as part of the continuing evaluation by such third parties as to the effectiveness and usefulness of the service to be incorporated into their respective operations. The third parties do not have a contractual obligation to purchase the equipment. The Company maintains the title and risk of loss. Therefore, these units are included in the inventory of the Company. As of March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Raw materials $ 30,529 $ 30,145 Work in process 10,240 10,240 Finished goods 72,950 72,950 Total $ 113,719 $ 113,335 Inventory amounts are presented net of allowance for inventory reserves of $75,785 and $75,785 as of March 31, 2021 and December 31, 2020, respectively. |
FIXED ASSETS | Fixed Assets Fixed assets are stated at cost less accumulated depreciation. The cost of maintenance and repairs is expensed to operations as incurred. Depreciation is computed by the straight-line method over the estimated economic useful life of the assets (5-10 years). Gains and losses recognized from the sales or disposal of assets is the difference between the sales price and the recorded cost less accumulated depreciation less costs of disposal. |
NET LOSS PER SHARE | Net Loss Per Share In accordance with the accounting guidance now codified as FASB ASC Topic 260, “ Earnings per Share” As of March 31, 2021 and 2020, there were 10,000 and 1,346,500 shares issuable upon the exercise of options, respectively. The Company had a net loss for the periods ended March 31, 2021 and 2020; therefore, common stock equivalent shares are excluded from the computation of net loss per share if their effect is anti-dilutive. |
INCOME TAXES | INCOME TAXES The Company accounts for income taxes under ASC 740-10-25. Under ASC 740-10-25, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740-10-25, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. |
BUSINESS SEGMENTS | BUSINESS SEGMENTS The Company operates in one segment and therefore segment information is not presented. |
LEASES | LEASES The Company accounts for leases in accordance with Accounting Standard Codification Topic 842. |
ADVERTISING COSTS | Advertising Costs Advertising costs are expensed as incurred and are included in general and administrative expenses. There was $168 and $1,863 in advertising costs during the periods ended March 31, 2021 and March 31, 2020, respectively. |
STOCK-BASED COMPENSATION | Stock-Based Compensation The Company accounts for stock-based instruments issued for services in accordance with ASC 718 “ Compensation – Stock Compensation |
RECENT ACCOUNTING PRONOUNCEMENTS | Recent Accounting Pronouncements All newly issued accounting pronouncements, but not yet effective, have been deemed either immaterial or not applicable. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of inventory | Therefore, these units are included in the inventory of the Company. As of March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Raw materials $ 30,529 $ 30,145 Work in process 10,240 10,240 Finished goods 72,950 72,950 Total $ 113,719 $ 113,335 |
FIXED ASSETS (Tables)
FIXED ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of fixed assets | Fixed assets as of March 31, 2021 and December 31, 2020 consist of: March 31, 2021 December 31, 2020 Machinery and equipment $ 941,473 $ 941,473 Furniture and fixtures 14,498 14,498 Autos and Trucks 5,294 5,294 Total 961,265 961,265 Less: accumulated depreciation (660,268 ) (648,797 ) Fixed Assets, net $ 300,997 $ 312,468 |
EQUIPMENT NOTE PAYABLE (Tables)
EQUIPMENT NOTE PAYABLE (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Payable [Abstract] | |
Schedule of future minimum payments | As of March 31, 2021 and December 31, 2020 the amount owed is $157,665 and $175,398, respectively. See NOTE K “SUBSEQUENT EVENTS”. March 31, 2021 (unaudited) December 31, 2020 Equipment note payable $ 157,665 $ 175,398 Less: current portion 72,800 71,812 Long-term equipment note payable $ 84,865 $ 103,586 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of options | Number Outstanding Exercise Price Number Exercisable Balance, December 31, 2020 10,000 $0.10 10,000 Issued — — — Expired — — — Forfeited — — — Balance, March 31, 2021 10,000 $0.10 10,000 Exercise Price Number Weighted Average Weighted Number Weighted 0.10 10,000 2.63 $0.10 10,000 $0.10 Total 10,000 — — 10,000 — |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of loans payables | The balance of principal and interest is payable 30 years from the date of the SBA Note. In connection therewith, FPA executed (i) a note for the benefit of the SBA, which contains customary events of default and (ii) a Security Agreement, granting the SBA a security interest in all tangible and intangible personal property of FPA, which also contains customary events of default. March 31, 2021 (unaudited) December 31, 2020 Loans payable $ 261,971 $ 261,971 Less: current portion (102,545 ) (65,867 ) Long-term loans payable $ 159,426 $ 196,104 |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Working capital deficit | $ 986,502 | |
Accumulated deficit | $ (16,113,303) | $ (15,922,429) |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Raw materials | $ 30,529 | $ 30,145 |
Work in process | 10,240 | 10,240 |
Finished goods | 72,950 | 72,950 |
Total | $ 113,719 | $ 113,335 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 3 Months Ended | ||
Mar. 31, 2021USD ($)Numbershares | Mar. 31, 2020USD ($)shares | Dec. 31, 2020USD ($) | |
Customer deposits | $ 0 | $ 0 | |
Allowance for doubtful accounts | 7,044 | 7,044 | |
Excess of FDIC limits | $ 0 | 80,014 | |
Anti-dilutive option | shares | 10,000 | 1,346,500 | |
Advertising costs | $ 168 | $ 1,863 | |
Allowance for inventory reserves | $ 75,785 | $ 75,785 | |
Number of reportable segments | Number | 1 | ||
Minimum [Member] | |||
Estimated useful life of assets | 5 years | ||
Maximum [Member] | |||
Estimated useful life of assets | 10 years |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | Jul. 01, 2017 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 |
Consulting services | $ 38,827 | $ 55,212 | ||
Chief Executive Officer [Member] | ||||
Compensation and salary | 52,500 | 52,500 | ||
Salary and accured salary paid | 26,250 | |||
Salary paid | 0 | |||
Accrued expenses - related party | 690,565 | 663,465 | $ 664,315 | |
Raynard Veldman [Member] | ||||
Compensation and salary | 3,000 | 3,000 | ||
Consulting services | $ 2,500 | 7,500 | $ 7,500 | |
Accrued compensation and consulting services | $ 53,000 | $ 42,500 |
FIXED ASSETS (Details)
FIXED ASSETS (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Total | $ 961,265 | $ 961,265 |
Less: accumulated depreciation | (660,268) | (648,797) |
Fixed Assets, net | 300,997 | 312,468 |
Machinery and Equipment [Member] | ||
Total | 941,473 | 941,473 |
Furniture and Fixtures [Member] | ||
Total | 14,498 | 14,498 |
Autos and Trucks [Member] | ||
Total | $ 5,294 | $ 5,294 |
FIXED ASSETS (Details Narrative
FIXED ASSETS (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 11,471 | $ 11,328 |
EQUIPMENT NOTE PAYABLE (Details
EQUIPMENT NOTE PAYABLE (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Notes Payable [Abstract] | ||
Equipment note payable | $ 157,665 | $ 175,398 |
Less: current portion | 72,800 | 71,812 |
Long-term equipment note payable | $ 84,865 | $ 103,586 |
EQUIPMENT NOTE PAYABLE (Detai_2
EQUIPMENT NOTE PAYABLE (Details Narrative) - USD ($) | 1 Months Ended | ||
Jul. 31, 2017 | Mar. 31, 2021 | Dec. 31, 2020 | |
Equipment note payable | $ 157,665 | $ 175,398 | |
Financing Agreement [Member] | CNC Machining [Member] | |||
Equipment value | $ 426,000 | ||
Initial payment | 85,661 | ||
Monthly payments | 6,788 | ||
Installation cost | $ 24,281 | ||
Maturity Terms | January 2023 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Number Outstanding | |
Balance at beginning | 10,000 |
Issued | |
Expired | |
Exercised | |
Forfeited | |
Balance at ending | 10,000 |
Range of Exercise Price | |
Balance at beginning | $ / shares | $ 0.10 |
Issued | $ / shares | |
Expired | $ / shares | |
Exercised | $ / shares | |
Forfeited | $ / shares | |
Balance at ending | $ / shares | $ 0.10 |
Number Exercisable | |
Balance at beginning | 10,000 |
Issued | |
Expired | |
Forfeited | |
Balance at ending | 10,000 |
SHAREHOLDERS' EQUITY (Details 1
SHAREHOLDERS' EQUITY (Details 1) | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Exercise Price | |
Number Outstanding | shares | 10,000 |
Weighted Average Remaining Contractual Life | |
Outstanding Weighted Average Exercise Price | |
Exercise Price 0.10 [Member] | |
Exercise Price | $ 0.10 |
Number Outstanding | shares | 10,000 |
Weighted Average Remaining Contractual Life | 2 years 7 months 17 days |
Outstanding Weighted Average Exercise Price | $ 0.10 |
Number Exercisable | shares | 10,000 |
Exercisable Weighted Average Exercise Price | $ 0.10 |
SHAREHOLDERS' EQUITY (Details N
SHAREHOLDERS' EQUITY (Details Narrative) - USD ($) | Aug. 27, 2020 | Mar. 31, 2021 |
Stockholders' Equity Note [Abstract] | ||
Aggregate intrinsic value | $ 1,500 | |
Description of reverse stock split | • effected a ten for one (10:1) reverse stock split of our outstanding common stock (“Reverse Stock Split”); and • eliminated the existing class of preferred stock and create a new class of blank check preferred stock consisting of 5,000,000 shares. |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Loans payable | $ 261,971 | $ 261,971 |
Less: current portion | (102,545) | (65,867) |
Long-term loans payable | $ 159,426 | $ 196,104 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | May 04, 2020 | Jul. 16, 2020 | Jun. 23, 2020 |
Economic Injury Disaster Loan [Member] | Agreement [Member] | |||
Principal amount | $ 150,000 | ||
Disbursements amount | $ 150,000 | ||
Interest rate | 3.75% | ||
Description of payment | Installment payments, including principal and interest, are due monthly beginning June 23, 2021 (12 months from the date of the SBA note) in the amount of $731. The balance of principal and interest is payable 30 years from the date of the SBA Note. | ||
Dated | Jul. 20, 2020 | ||
Florida Precision Aerospace, Inc. [Member] | PPP Loan [Member] | Bank of America, N.A. [Member] | |||
Loan receivable | $ 111,971 | ||
Maturity terms | May 4, 2022 | ||
Payment start date | Nov. 6, 2020 | ||
Dated | May 4, 2020 | ||
Description of debt obligations | Funds from the PPP Loan may only be used for payroll costs, costs used to continue group health care benefits, mortgage payments, rent, utilities, and interest on other debt obligations incurred before February 15, 2020. |
LEASE (Details Narrative)
LEASE (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | |
Dec. 31, 2018 | Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | |||
Description of termination of use agreement | In December 2018, the Company entered into a three (3) year lease for an office and manufacturing facility located at 821 NW 57th Place, Fort Lauderdale, FL 33309. The lease is $4,839 per month, which includes common area maintenance, taxes and insurance and expires in October 2021. The lease has a one-time renewal option for three years and an increased base rent of 3%. The Company has the option to terminate the lease with three months’ notice. | ||
Lease term | 3 years | ||
Rent | $ 4,839 | ||
Lease expiration | Oct. 31, 2021 | ||
One-time renewal term | 3 years | ||
Percentage of increased base rent | 3.00% | ||
Total lease | $ 20,220 | $ 19,510 | |
Operating lease liabilities | 14,516 | 14,516 | |
Variable lease cost | $ 5,704 | $ 4,771 |
MAJOR CUSTOMERS (Details Narrat
MAJOR CUSTOMERS (Details Narrative) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Sales Revenue [Member] | Customer One [Member] | |||
Percentage of revenue from Major customer (in percent) | 76.00% | 57.00% | |
Sales Revenue [Member] | Customer Two [Member] | |||
Percentage of revenue from Major customer (in percent) | 96.00% | 39.00% | |
Accounts Receivable [Member] | Customer One [Member] | |||
Percentage of revenue from Major customer (in percent) | 81.00% | 68.00% | |
Accounts Receivable [Member] | Customer Two [Member] | |||
Percentage of revenue from Major customer (in percent) | 17.00% | ||
Accounts Receivable [Member] | Customer Three [Member] | |||
Percentage of revenue from Major customer (in percent) | 15.00% |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member] - USD ($) | Apr. 30, 2021 | Apr. 05, 2021 |
Purchase agreement [Member] | ||
Purchase machining equipment | $ 275,000 | |
PPP Loan [Member] | Cross River Bank [Member] | ||
Principal amount | $ 75,085 | |
Maturity terms | Apr. 5, 2026 | |
Dated | Apr. 5, 2021 | |
Description of debt obligations | Funds from the PPP Loan may only be used for payroll costs, costs used to continue group health care benefits, mortgage payments, rent, utilities, and interest on other debt obligations | |
Interest rate | 1.00% |