Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 06, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 0-30454 | |
Entity Registrant Name | Enviro Technologies U.S., Inc. | |
Entity Central Index Key | 0001043894 | |
Entity Tax Identification Number | 82-0266517 | |
Entity Incorporation, State or Country Code | FL | |
Entity Address, Address Line One | 821 NW 57th Place | |
Entity Address, City or Town | Fort Lauderdale | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33309 | |
City Area Code | (954) | |
Local Phone Number | 958-9968 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 4,950,125 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 271,659 | $ 336,564 |
Accounts receivable, net | 11,687 | 1,176 |
Inventory, net | 116,234 | 113,335 |
Prepaid expenses | 3,691 | 12,174 |
Total current assets | 403,271 | 463,249 |
FIXED ASSETS, NET | 7,159 | 312,468 |
OTHER ASSETS | ||
Operating lease asset | 177,470 | 200,066 |
Security deposit | 10,143 | 10,143 |
Total other assets | 187,613 | 210,209 |
Total assets | 598,043 | 985,926 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued expenses | 373,839 | 323,481 |
Accrued Expenses – related party | 806,565 | 706,315 |
Loans payable, current portion | 111,971 | 65,867 |
Equipment note payable, current portion | 71,812 | |
Operating lease liability, current portion | 48,715 | 46,255 |
Total current liabilities | 1,341,090 | 1,213,730 |
LONG-TERM LIABILITIES: | ||
Operating lease liabilities, less current portion | 128,755 | 153,811 |
Equipment note payable, less current portion | 103,586 | |
Loans payable, less current portion | 225,085 | 196,104 |
Total long-term liabilities | 353,840 | 453,501 |
Total liabilities | 1,694,930 | 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 June 30, 2021 and December 31, 2020 | 4,951 | 4,951 |
Additional paid-in capital | 15,236,173 | 15,236,173 |
Accumulated deficit | (16,338,011) | (15,922,429) |
Total shareholders’ (deficiency) | (1,096,887) | (681,305) |
Total liabilities and shareholders’ (deficiency) | $ 598,043 | $ 985,926 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 250,000,000 | 250,000,000 |
Common Stock, Shares, Issued | 4,950,125 | 4,950,125 |
Common Stock, Shares, Outstanding | 4,950,125 | 4,950,125 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenues, net | $ 29,108 | $ 22,790 | $ 66,864 | $ 27,318 |
Cost of goods sold | 13,368 | 14,434 | 28,212 | 15,199 |
Gross profit | 15,740 | 8,356 | 38,652 | 12,119 |
Costs and expenses: | ||||
Selling, general and administrative | 56,210 | 101,108 | 133,557 | 185,316 |
Professional Fees | 37,570 | 57,892 | 76,397 | 113,104 |
Payroll expenses | 123,886 | 124,871 | 214,594 | 256,241 |
Total costs and expenses | 217,666 | 283,871 | 424,548 | 554,661 |
Loss from operations | (201,926) | (275,515) | (385,896) | (542,542) |
Other income (expenses): | ||||
Other Income | 8,000 | 8,000 | ||
Loss on sale of assets | (15,011) | (15,011) | ||
Interest expense | (7,771) | (3,441) | (14,675) | (7,164) |
Total other income (expense) | (22,782) | 4,559 | (29,686) | 836 |
Net loss before provisions for income taxes | (224,708) | (270,956) | (415,582) | (541,706) |
Provisions for income taxes | ||||
NET LOSS | $ (224,708) | $ (270,956) | $ (415,582) | $ (541,706) |
Net loss per common share - basic and diluted | $ (0.05) | $ (0.07) | $ (0.08) | $ (0.14) |
Weighted average number of common shares outstanding - basic and diluted | 4,950,125 | 3,895,125 | 4,950,125 | 3,736,875 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIENCY) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance - December 31, 2020 at Dec. 31, 2019 | $ 3,579 | $ 15,094,095 | $ (14,891,621) | $ 206,053 |
Shares, Issued, Beginning Balance at Dec. 31, 2019 | 3,578,625 | |||
Stock issued for exercise of options in exchange for accrued expenses - related parties and accounts payable | $ 1,337 | 132,313 | 133,650 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 1,336,500 | |||
Stock issued for services to employees | $ 35 | 9,765 | 9,800 | |
Stock Issued During Period, Shares, Issued for Services | 35,000 | |||
Net loss | (541,706) | (541,706) | ||
Balance – June 30, 2021 (unaudited) at Jun. 30, 2020 | $ 4,951 | 15,236,173 | (15,433,327) | (192,203) |
Shares, Issued, Ending Balance at Jun. 30, 2020 | 4,950,125 | |||
Balance - December 31, 2020 at Mar. 31, 2020 | $ 3,579 | 15,094,095 | (15,162,371) | (64,697) |
Shares, Issued, Beginning Balance at Mar. 31, 2020 | 3,578,625 | |||
Stock issued for exercise of options in exchange for accrued expenses - related parties and accounts payable | $ 1,337 | 132,313 | 133,650 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 1,336,500 | |||
Stock issued for services to employees | $ 35 | 9,765 | 9,800 | |
Stock Issued During Period, Shares, Issued for Services | 35,000 | |||
Net loss | (270,956) | (270,956) | ||
Balance – June 30, 2021 (unaudited) at Jun. 30, 2020 | $ 4,951 | 15,236,173 | (15,433,327) | (192,203) |
Shares, Issued, Ending Balance at Jun. 30, 2020 | 4,950,125 | |||
Balance - December 31, 2020 at Dec. 31, 2020 | $ 4,951 | 15,236,173 | (15,922,429) | (681,305) |
Shares, Issued, Beginning Balance at Dec. 31, 2020 | 4,950,125 | |||
Net loss | (415,582) | (415,582) | ||
Balance – June 30, 2021 (unaudited) at Jun. 30, 2021 | $ 4,951 | 15,236,173 | (16,338,011) | (1,096,887) |
Shares, Issued, Ending Balance at Jun. 30, 2021 | 4,950,125 | |||
Balance - December 31, 2020 at Mar. 31, 2021 | $ 4,951 | 15,236,173 | (16,113,303) | (872,179) |
Shares, Issued, Beginning Balance at Mar. 31, 2021 | 4,950,125 | |||
Net loss | (224,708) | (224,708) | ||
Balance – June 30, 2021 (unaudited) at Jun. 30, 2021 | $ 4,951 | $ 15,236,173 | $ (16,338,011) | $ (1,096,887) |
Shares, Issued, Ending Balance at Jun. 30, 2021 | 4,950,125 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (415,582) | $ (541,706) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 15,298 | 22,656 |
Amortization of operating lease asset | 22,596 | 21,125 |
Stock issued for services | 9,800 | |
Loss on sale of equipment | 15,011 | |
Changes in assets and liabilities: | ||
Accounts receivable | (10,511) | 287,160 |
Inventory | (2,899) | (26,437) |
Prepaid expenses | 8,483 | 8,405 |
Accounts payable and accrued expenses | 50,358 | (30,353) |
Operating lease liability | (22,596) | (21,125) |
Accrued expenses – related parties | 100,250 | 30,000 |
Net cash used in operating activities | (239,592) | (240,475) |
Cash Flows from Investing Activities: | ||
Sale of equipment | 275,000 | (5,067) |
Net cash provided by (used in) Investing activities | 275,000 | (5,067) |
Cash Flows from Financing Activities: | ||
Repayment of equipment note payable | (175,398) | (33,564) |
Loan payable issuance | 75,085 | 111,971 |
Net cash (used in) provided by financing activities | (100,313) | 78,407 |
Net decrease in cash and cash equivalents | (64,905) | (167,135) |
Cash and cash equivalents, beginning of period | 336,564 | 674,844 |
Cash and cash equivalents, end of period | 271,659 | 507,709 |
Supplemental Disclosures | ||
Cash paid during the period for interest | 10,403 | 7,164 |
Cash paid during the period for taxes | ||
Supplemental Disclosure of non-cash investing and financing activities | ||
Operating lease asset obtained in exchange for operating lease liability | ||
Stock issued for exercise of options in exchange for accounts payable | 42,000 | |
Stock issued for exercise of options in exchange for accrued expenses - related parties | $ 91,650 |
ORGANIZATION AND OPERATIONS
ORGANIZATION AND OPERATIONS | 6 Months Ended |
Jun. 30, 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 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 and we entered into a Supply Agreement. 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 | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GOING CONCERN | NOTE B – GOING CONCERN Since entering into the Technology Purchase Agreement, the Grant Back License and a supply agreement 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 June 30, 2021, we had a working capital deficit of $ 937,819 16,338,011 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 | 6 Months Ended |
Jun. 30, 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 June 30, 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 June 30, 2021, and December 31, 2020, respectively, there was $ 0 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 June 30, 2021 and December 31, 2020, the Company has $ 7,044 7,044 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 June 30, 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 June 30, 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 June 30, 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 June 30, 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 June 30, 2021 and December 31, 2020, the Company has a cash concentration in excess of FDIC limits of $ 0 80,014 Inventory Inventory primarily consists of components, including raw material and finished parts for the V-Inline Separator 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 June 30, 2021 and December 31, 2020: June 30, 2021 December 31, 2020 Raw materials $ 24,142 $ 30,145 Work in process 19,142 10,240 Finished goods 72,950 72,950 Total $ 116,234 $ 113,335 Inventory amounts are presented net of allowance for inventory reserves of $ 75,785 75,785 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 Net Loss Per Share In accordance with the accounting guidance now codified as FASB ASC Topic 260, “ Earnings per Share” As of June 30, 2021 and 2020, there were 10,000 10,000 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 LEASES The Company accounts for leases in accordance with Accounting Standard Codification (ASC) Topic 842. Operating lease assets and operating lease liabilities are recognized at the lease commencement date. Operating lease liabilities represent the present value of lease payments not yet paid. Operating lease assets represent our right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives, and impairment of operating lease assets. To determine the present value of lease payments not yet paid, the Company estimates incremental secured borrowing rates corresponding to the maturities of the leases. Advertising Costs Advertising costs are expensed as incurred and are included in general and administrative expenses. There was $ 320 1,434 484 3,297 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 | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE D - RELATED PARTY TRANSACTIONS For the three months ended June 30, 2021, the Company incurred salary expenses for the Chief Executive Officer of the Company of $ 52,500 0 105,000 26,250 743,065 52,500 105,000 75,000 81,650 559,315 Effective July 1, 2017, our non-employee directors receive a monthly fee of $ 1,000 3,000 6,000 18,000 Effective July 1, 2017, Raynard Veldman, a member of the Company’s board of directors, receives a fee of $ 2,500 7,500 15,000 45,500 During the three months ended June 30, 2020, Mr. Veldman reduced his accrued fees by $ 10,000 June 30, 2021 and December 31, 2020 63,500 42,500 On June 9, 2020, the Company issued 3,800,000 0.01 3,000 35,000 |
FIXED ASSETS
FIXED ASSETS | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
FIXED ASSETS | NOTE E – FIXED ASSETS Fixed assets as of June 30, 2021 and December 31, 2020 consist of: June 30, 2021 December 31, 2020 Machinery and equipment $ 490,927 $ 941,473 Furniture and fixtures 14,498 14,498 Autos and Trucks 5,294 5,294 Total 510,719 961,265 Less: accumulated depreciation (503,560 ) (648,797 ) Fixed Assets, net $ 7,159 $ 312,468 Depreciation expense was $ 3,827 11,328 Depreciation expense was $ 15,298 22,656 The Company sold its CNC machining equipment for a sales price of $ 275,000 15,011 |
EQUIPMENT NOTE PAYABLE
EQUIPMENT NOTE PAYABLE | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [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 85,661 6,788 January 2023 24,281 275,000 As of June 30, 2021 and December 31, 2020 the amount owed is $ 0 175,398 Schedule of equipment note payable June 30, 2021 (unaudited) December 31, Equipment note payable $ — $ 175,398 Less: current portion — 71,812 Long-term equipment note payable $ — $ 103,586 |
SHAREHOLDERS_ EQUITY
SHAREHOLDERS’ EQUITY | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
SHAREHOLDERS’ EQUITY | NOTE G – SHAREHOLDERS’ EQUITY COMMON STOCK On June 9, 2020, the Company issued to 35,000 0.28 9,800 On June 9, 2020, the Company issued 770,000 0.10 77,000 On June 9, 2020, the Company issued 100,000 0.10 10,000 On June 9, 2020, the Company issued 70,000 0.10 7,000 On June 9, 2020, the Company issued 16,500 0.10 1,650 On June 9, 2020, the Company issued 380,000 0.10 3,000 35,000 Options Information with respect to options outstanding and exercisable at June 30, 2021 is as follows: Number Outstanding Exercise Price Number Exercisable Balance, December 31, 2020 10,000 $0.10 10,000 Issued — — — Expired — — — Forfeited — — — Balance, June 30, 2021 10,000 $0.10 10,000 Exercise Price Number Weighted Average Weighted Number Weighted 0.10 10,000 2.38 $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 June 30, 2021 is $ 0 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 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 | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE H – COMMITMENTS AND CONTINGENCIES SBA AND PPP LOANS On May 4, 2020 111,971 The 2020 PPP Loan, which was in the form of a promissory note dated May 4, 2020 issued by FPA, matures on May 4, 2022 and bears interest at a rate of 1% per annum. The Note may be prepaid by FPA at any time prior to maturity with no prepayment penalties. Funds from the 2020 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 72,762 On April 5, 2021 75,085 10 between 8 and 24 weeks 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 $ 150,000 150,000 July 20, 2020 3.75 Installment payments, including principal and interest, are due monthly beginning July 16, 2022 in the amount of $ 731 SBA a security interest in all tangible and intangible personal property of FPA June 30, 2021 (unaudited) December 31, 2020 Loans payable $ 337,056 $ 261,971 Less: current portion (111,971 ) (65,867 ) Long-term loans payable $ 225,085 $ 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 | 6 Months Ended |
Jun. 30, 2021 | |
Lease | |
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 4,839 October 31, 2021 three years 3 For the three months ended June 30, 2021 and 2020, the total lease cost was $ 20,126 19,510 5,798 4,771 40,440 39,020 9,064 9,541 22,596 29,032 |
MAJOR CUSTOMERS
MAJOR CUSTOMERS | 6 Months Ended |
Jun. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
MAJOR CUSTOMERS | NOTE J – MAJOR CUSTOMERS During the six months ended June 30, 2021, we recorded 87 71 16 During the three months ended June 30, 2021, we recorded 90 65 25 During the six months ended June 30, 2020, we recorded 72 60 12 During the three months ended June 30, 2020, we recorded 86 73 13 As of June 30, 2021, two of the Company’s customers represents 63 30 As of December 31, 2020, three of the Company’s customers represents 68 17 15 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE K – SUBSEQUENT EVENTS Subsequent to June 30, 2021, FPA received a $ 7,000 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 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 June 30, 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 June 30, 2021, and December 31, 2020, respectively, there was $ 0 |
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 June 30, 2021 and December 31, 2020, the Company has $ 7,044 7,044 |
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 June 30, 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 June 30, 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 June 30, 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 June 30, 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 June 30, 2021 and December 31, 2020, the Company has a cash concentration in excess of FDIC limits of $ 0 80,014 |
Inventory | Inventory Inventory primarily consists of components, including raw material and finished parts for the V-Inline Separator 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 June 30, 2021 and December 31, 2020: June 30, 2021 December 31, 2020 Raw materials $ 24,142 $ 30,145 Work in process 19,142 10,240 Finished goods 72,950 72,950 Total $ 116,234 $ 113,335 Inventory amounts are presented net of allowance for inventory reserves of $ 75,785 75,785 |
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 |
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 June 30, 2021 and 2020, there were 10,000 10,000 |
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 |
LEASES | LEASES The Company accounts for leases in accordance with Accounting Standard Codification (ASC) Topic 842. Operating lease assets and operating lease liabilities are recognized at the lease commencement date. Operating lease liabilities represent the present value of lease payments not yet paid. Operating lease assets represent our right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives, and impairment of operating lease assets. To determine the present value of lease payments not yet paid, the Company estimates incremental secured borrowing rates corresponding to the maturities of the leases. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and are included in general and administrative expenses. There was $ 320 1,434 484 3,297 |
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) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
The Company maintains the title and risk of loss. Therefore, these units are included in the inventory of the Company. As of June 30, 2021 and December 31, 2020: | 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 June 30, 2021 and December 31, 2020: June 30, 2021 December 31, 2020 Raw materials $ 24,142 $ 30,145 Work in process 19,142 10,240 Finished goods 72,950 72,950 Total $ 116,234 $ 113,335 |
FIXED ASSETS (Tables)
FIXED ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Fixed assets as of June 30, 2021 and December 31, 2020 consist of: | Fixed assets as of June 30, 2021 and December 31, 2020 consist of: June 30, 2021 December 31, 2020 Machinery and equipment $ 490,927 $ 941,473 Furniture and fixtures 14,498 14,498 Autos and Trucks 5,294 5,294 Total 510,719 961,265 Less: accumulated depreciation (503,560 ) (648,797 ) Fixed Assets, net $ 7,159 $ 312,468 |
EQUIPMENT NOTE PAYABLE (Tables)
EQUIPMENT NOTE PAYABLE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of equipment note payable | Schedule of equipment note payable June 30, 2021 (unaudited) December 31, Equipment note payable $ — $ 175,398 Less: current portion — 71,812 Long-term equipment note payable $ — $ 103,586 |
SHAREHOLDERS_ EQUITY (Tables)
SHAREHOLDERS’ EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Information with respect to options outstanding and exercisable at June 30, 2021 is as follows: | Information with respect to options outstanding and exercisable at June 30, 2021 is as follows: Number Outstanding Exercise Price Number Exercisable Balance, December 31, 2020 10,000 $0.10 10,000 Issued — — — Expired — — — Forfeited — — — Balance, June 30, 2021 10,000 $0.10 10,000 Exercise Price Number Weighted Average Weighted Number Weighted 0.10 10,000 2.38 $0.10 10,000 $0.10 Total 10,000 — — 10,000 — |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
SBA a security interest in all tangible and intangible personal property of FPA | 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 $ 150,000 150,000 July 20, 2020 3.75 Installment payments, including principal and interest, are due monthly beginning July 16, 2022 in the amount of $ 731 SBA a security interest in all tangible and intangible personal property of FPA June 30, 2021 (unaudited) December 31, 2020 Loans payable $ 337,056 $ 261,971 Less: current portion (111,971 ) (65,867 ) Long-term loans payable $ 225,085 $ 196,104 |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Working capital deficit | $ 937,819 | |
Accumulated deficit | $ (16,338,011) | $ (15,922,429) |
The Company maintains the title
The Company maintains the title and risk of loss. Therefore, these units are included in the inventory of the Company. As of June 30, 2021 and December 31, 2020: (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Raw materials | $ 24,142 | $ 30,145 |
Work in process | 19,142 | 10,240 |
Finished goods | 72,950 | 72,950 |
Total | $ 116,234 | $ 113,335 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)Numbershares | Jun. 30, 2020USD ($)shares | Dec. 31, 2020USD ($) | |
Property, Plant and Equipment [Line Items] | |||||
Customer deposits | $ 0 | $ 0 | $ 0 | ||
Allowance for doubtful accounts | 7,044 | 7,044 | 7,044 | ||
Excess of FDIC limits | 0 | 0 | 80,014 | ||
Allowance for inventory reserves | 75,785 | $ 75,785 | $ 75,785 | ||
Anti-dilutive option | shares | 10,000 | 10,000 | |||
Number of reportable segments | Number | 1 | ||||
Advertising costs | $ 320 | $ 1,434 | $ 484 | $ 3,297 | |
Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful life of assets | 5 years | ||||
Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful life of assets | 10 years |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | Jun. 09, 2020 | Jul. 01, 2017 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | |||||||
Accrued expenses - related party | $ 743,065 | $ 559,315 | |||||
Consulting services | $ 37,570 | $ 57,892 | 76,397 | 113,104 | |||
Related Party [Member] | Share-based Payment Arrangement, Option [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Number of shares issued | 3,800,000 | ||||||
Stock option exercise price (in dollars per shares) | $ 0.01 | ||||||
Increase (Decrease) in Accrued Salaries | $ 3,000 | ||||||
Reduction of payable | $ 35,000 | ||||||
Chief Executive Officer [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Compensation and salary | 52,500 | 105,000 | |||||
Salary paid | 0 | 26,250 | |||||
Mr. Adele DiBella [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Salary paid | 75,000 | ||||||
Salary and accured salary paid | 81,650 | ||||||
Non Employee Directors [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Monthly fees | $ 1,000 | ||||||
Director [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Compensation and salary | 3,000 | 3,000 | 6,000 | 6,000 | |||
Accrued expenses - related party | 45,500 | ||||||
Consulting services | $ 2,500 | 7,500 | $ 7,500 | 15,000 | $ 15,000 | ||
Accrued compensation and consulting services | $ 10,000 | 63,500 | $ 42,500 | ||||
Di Bella [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Accrued expenses - related party | $ 18,000 |
Fixed assets as of June 30, 202
Fixed assets as of June 30, 2021 and December 31, 2020 consist of: (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 510,719 | $ 961,265 |
Less: accumulated depreciation | (503,560) | (648,797) |
Fixed Assets, net | 7,159 | 312,468 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 490,927 | 941,473 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 14,498 | 14,498 |
Autos And Trucks [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 5,294 | $ 5,294 |
FIXED ASSETS (Details Narrative
FIXED ASSETS (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation expense | $ 3,827 | $ 11,328 | $ 15,298 | $ 22,656 |
Gain (Loss) on Disposition of Property Plant Equipment | (15,011) | |||
CNC Machine [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Selling price | $ 275,000 |
Schedule of equipment note paya
Schedule of equipment note payable (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Equipment note payable | $ 0 | $ 175,398 |
Less: current portion | 71,812 | |
Long-term equipment note payable | $ 103,586 |
EQUIPMENT NOTE PAYABLE (Details
EQUIPMENT NOTE PAYABLE (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | ||
Jul. 31, 2017 | Jun. 30, 2021 | Jul. 31, 2021 | Dec. 31, 2020 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Equipment note payable | $ 0 | $ 175,398 | ||
CNC Machining [Member] | Financing Agreement [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Initial payment | $ 85,661 | |||
Monthly payments | $ 6,788 | |||
Maturity Terms | January 2023 | |||
Installation cost | $ 24,281 | |||
Financing Agreement [Member] | CNC Machining [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Equipment value | $ 426,000 | |||
Purchase Agreement [Member] | CNC Machining [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Selling price of equipment | $ 275,000 |
Information with respect to opt
Information with respect to options outstanding and exercisable at June 30, 2021 is as follows: (Details) | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Balance at beginning | 10,000 |
Balance at beginning | $ / shares | $ 0.10 |
Balance at beginning,exercisable | 10,000 |
Issued | |
Issued | $ / shares | |
Issued | 0 |
Expired | |
Expired | $ / shares | |
Expired | 0 |
Forfeited | |
Forfeited | $ / shares | |
Forfeited | 0 |
Balance at ending | 10,000 |
Balance at ending | $ / shares | $ 0.10 |
Balance at ending,exercisable | 10,000 |
Number Outstanding | 10,000 |
Outstanding Weighted Average Exercise Price | $ / shares | $ 0 |
Number Exercisable | 10,000 |
Exercisable Weighted Average Exercise Price | $ / shares | $ 0 |
Exercise Price 0.10 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number Outstanding | 10,000 |
Weighted Average Remaining Contractual Life | 2 years 4 months 17 days |
Outstanding Weighted Average Exercise Price | $ / shares | $ 0.10 |
Number Exercisable | 10,000 |
Exercisable Weighted Average Exercise Price | $ / shares | $ 0.10 |
SHAREHOLDERS_ EQUITY (Details N
SHAREHOLDERS’ EQUITY (Details Narrative) - USD ($) | Jun. 09, 2020 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Number of shares issued for services, value | $ 9,800 | $ 9,800 | ||
Stock option exercise price (in dollars per shares) | $ 0 | |||
Number of shares exercised | 10,000 | |||
Instrinsic value | $ 0 | |||
Preferred stock, shares | 5,000,000 | |||
Share-based Payment Arrangement, Option [Member] | Related Party [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Number of shares issued | 380,000 | |||
Stock option exercise price (in dollars per shares) | $ 0.10 | |||
Number of shares exercised | 35,000 | |||
Accured salary | $ 3,000 | |||
Common Stock [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Number of shares issued for services | 35,000 | 35,000 | ||
Number of shares issued for services, value | $ 35 | $ 35 | ||
Employees [Member] | Common Stock [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Number of shares issued for services | 35,000 | |||
Shares issued price (in dollars per shares) | $ 0.28 | |||
Number of shares issued for services, value | $ 9,800 | |||
Chief Executive Officer [Member] | Share-based Payment Arrangement, Option [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Number of shares issued | 770,000 | |||
Stock option exercise price (in dollars per shares) | $ 0.10 | |||
Number of shares exercised | 77,000 | |||
Raynard Veldman [Member] | Share-based Payment Arrangement, Option [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Number of shares issued | 100,000 | |||
Stock option exercise price (in dollars per shares) | $ 0.10 | |||
Number of shares exercised | 10,000 | |||
Consultant [Member] | Share-based Payment Arrangement, Option [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Number of shares issued | 70,000 | |||
Stock option exercise price (in dollars per shares) | $ 0.10 | |||
Number of shares exercised | 7,000 | |||
Two Employee [Member] | Share-based Payment Arrangement, Option [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Number of shares issued | 16,500 | |||
Stock option exercise price (in dollars per shares) | $ 0.10 | |||
Number of shares exercised | 1,650 |
SBA a security interest in all
SBA a security interest in all tangible and intangible personal property of FPA (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Loans payable | $ 337,056 | $ 261,971 |
Less: current portion | (111,971) | (65,867) |
Long-term loans payable | $ 225,085 | $ 196,104 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | Apr. 05, 2021 | Jul. 16, 2020 | May 04, 2020 | Jun. 30, 2021 |
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Forgiveness amount | $ 72,762 | |||
Debt amount | $ 731 | |||
EconomicInjury Disaster Loan [Member] | Agreement [Member] | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Interest rate | 3.75% | |||
Description of payment | Installment payments, including principal and interest, are due monthly beginning July 16, 2022 in the amount of $731. The balance of principal and interest is payable 30 years from the date of the SBA Note | |||
Subsidiaries [Member] | PPP Loan [Member] | Bank Of America NA [Member] | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Dated | May 4, 2020 | |||
Loan receivable | $ 111,971 | |||
Description of debt obligations | Funds from the 2020 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 | |||
Subsidiaries [Member] | PPP Loan [Member] | Cross River Bank [Member] | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Loan receivable | $ 75,085 | |||
Maturity terms | Apr. 5, 2021 | |||
Covered period | 10 months | |||
Description of borrower's loan forgiveness terms | between 8 and 24 weeks |
LEASE (Details Narrative)
LEASE (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2018 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Lease | |||||
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 on October 31, 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. | ||||
Rent | $ 4,839 | ||||
Lease expiration | Oct. 31, 2021 | ||||
One-time renewal term | 3 years | ||||
Percentage of increased base rent | 300.00% | ||||
Lease, Cost | $ 20,126 | $ 19,510 | $ 40,440 | $ 39,020 | |
Variable Lease, Cost | 5,798 | 4,771 | 9,064 | 9,541 | |
Operating Lease, Liability | $ 22,596 | $ 29,032 | $ 22,596 | $ 29,032 |
MAJOR CUSTOMERS (Details Narrat
MAJOR CUSTOMERS (Details Narrative) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Concentration Risk [Line Items] | |||||
Percentage of revenue from Major customer (in percent) | 90.00% | 86.00% | 87.00% | 72.00% | |
Customer Concentration Risk One [Member] | Revenue Benchmark [Member] | |||||
Concentration Risk [Line Items] | |||||
Percentage of revenue from Major customer (in percent) | 65.00% | 73.00% | 71.00% | 60.00% | |
Customer Concentration Risk One [Member] | Accounts Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Percentage of revenue from Major customer (in percent) | 63.00% | 68.00% | |||
Customer Concentration Risk Two [Member] | Revenue Benchmark [Member] | |||||
Concentration Risk [Line Items] | |||||
Percentage of revenue from Major customer (in percent) | 25.00% | 13.00% | 16.00% | 12.00% | |
Customer Concentration Risk Two [Member] | Accounts Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Percentage of revenue from Major customer (in percent) | 30.00% | 17.00% | |||
Customer Concentration Risk Three [Member] | Accounts Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Percentage of revenue from Major customer (in percent) | 15.00% |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) | 6 Months Ended |
Jun. 30, 2021USD ($) | |
U.S Small Business Administration [Member] | |
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | |
Number of FPA received | $ 7,000 |