Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Apr. 17, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Entity Registrant Name | ENERTECK CORPORATION | ||
Entity Central Index Key | 0001128353 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Current Reporting Status | Yes | ||
Document Period End Date | Dec. 31, 2022 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2022 | ||
Entity Common Stock Shares Outstanding | 36,380,690 | ||
Entity Public Float | $ 1,130,000 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 0-31981 | ||
Entity Incorporation State Country Code | DE | ||
Entity Tax Identification Number | 47-0929885 | ||
Entity Interactive Data Current | Yes | ||
Icfr Auditor Attestation Flag | false | ||
Entity Address Address Line 1 | 10701 Corporate Drive | ||
Entity Address Address Line 2 | Suite 150 | ||
Entity Address City Or Town | Stafford | ||
Entity Address State Or Province | TX | ||
Entity Address Postal Zip Code | 77477 | ||
City Area Code | 281 | ||
Local Phone Number | 240-1787 | ||
Auditor Location | Oklahoma City, Oklahoma | ||
Security 12g Title | Common Stock ($.001 par value) | ||
Auditor Name | Weaver and Tidwell, L.L.P. | ||
Auditor Firm Id | 410 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 1,035 | $ 23,625 |
Inventory | 185,316 | 79,697 |
Accounts receivable | 6,950 | 0 |
Prepaid expenses | 15,237 | 14,721 |
Total current assets | 208,538 | 118,043 |
Inventory, net of current portion | 0 | 37,524 |
Intangible assets, net of accumulated amortization of $50,000 and $37,500, respectively | 100,000 | 112,500 |
Property and equipment, net of accumulated depreciation of $269,274 and $269,210, respectively | 6,273 | 1,113 |
TOTAL ASSETS | 314,811 | 269,180 |
Current liabilities | ||
Accounts payable | 276,876 | 209,452 |
Customer advances | 50,900 | 50,900 |
Related party notes and advances | 4,112,500 | 3,492,500 |
Accrued compensation | 4,963,987 | 4,748,687 |
Accrued interest | 2,397,780 | 2,099,926 |
Accrued liabilities | 301,103 | 253,007 |
Deferred revenue | 0 | 695 |
Total liabilities | 12,103,146 | 10,855,167 |
Stockholders' deficit | ||
Preferred stock, $0.001 par value, authorized 10,000,000 shares, none issued and outstanding at December 31, 2022 and 2021 | 0 | 0 |
Common stock, $0.001 par value, authorized 100,000,000 shares, 36,380,690 issued and outstanding at December 31, 2022 and 2021 | 36,381 | 36,381 |
Additional paid-in capital | 29,495,837 | 29,495,837 |
Accumulated deficit | (41,320,553) | (40,118,205) |
Total stockholders' deficit | (11,788,335) | (10,585,987) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ 314,811 | $ 269,180 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
CONSOLIDATED BALANCE SHEETS | ||
Intangible assets, net of accumulated amortization | $ 50,000 | $ 37,500 |
Accumulated depreciation of Property and equipment, net | $ 269,274 | $ 269,210 |
Preferred stock, shares par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Preferred stock, shares issued | 0 | 0 |
Common stock, shares par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 36,380,690 | 36,380,690 |
Common stock, shares outstanding | 36,380,690 | 36,380,690 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | ||
Revenues | $ 100,302 | $ 67,068 |
Cost of goods sold | 64,343 | 9,987 |
Gross profit | 35,959 | 57,081 |
General and administrative expenses | ||
Wages | 535,342 | 533,386 |
Depreciation and amortization | 12,564 | 12,708 |
Stock-based compensation | 0 | 202,816 |
Other selling, general and administrative | 402,233 | 397,032 |
Total expenses | 950,139 | 1,145,942 |
Operating loss | (914,180) | (1,088,861) |
Other income (expense) | ||
Interest income | 6 | 4 |
Other income | 11,313 | 11,493 |
Interest expense | (299,487) | (272,414) |
Gain on forgiveness of debt | 0 | 146,200 |
Net loss | $ (1,202,348) | $ (1,203,578) |
Loss per common share Basic and diluted | $ (0.03) | $ (0.03) |
Weighted Average Number Of Share Outstanding Basic and diluted | 36,380,690 | 36,380,690 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS DEFICIT - USD ($) | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit |
Balance, shares at Dec. 31, 2020 | 36,380,690 | |||
Balance, amount at Dec. 31, 2020 | $ (9,585,225) | $ 36,381 | $ 29,293,021 | $ (38,914,627) |
Stock-based compensation | 202,816 | 0 | 202,816 | 0 |
Net loss | (1,203,578) | $ 0 | 0 | (1,203,578) |
Balance, shares at Dec. 31, 2021 | 36,380,690 | |||
Balance, amount at Dec. 31, 2021 | (10,585,987) | $ 36,381 | 29,495,837 | (40,118,205) |
Stock-based compensation | 0 | |||
Net loss | (1,202,348) | $ 0 | 0 | (1,202,348) |
Balance, shares at Dec. 31, 2022 | 36,380,690 | |||
Balance, amount at Dec. 31, 2022 | $ (11,788,335) | $ 36,381 | $ 29,495,837 | $ (41,320,553) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (1,202,348) | $ (1,203,578) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 12,564 | 12,708 |
Stock-based compensation | 0 | 202,816 |
Bad debt expense | 0 | 6,091 |
Gain on forgiveness of debt | 0 | (146,200) |
Effects of changes in operating assets and liabilities: | ||
Accounts receivable | (6,950) | 30,515 |
Inventory | (68,095) | (4,550) |
Prepaid expenses | (516) | (2,169) |
Accounts payable | 115,411 | 59,297 |
Accrued interest | 297,854 | 271,914 |
Accrued compensation | 215,300 | 239,883 |
Accrued liabilities | 48,096 | 35,632 |
Deferred revenue | (695) | (8,333) |
NET CASH USED IN OPERATING ACTIVITIES | (589,379) | (505,974) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Capital expenditures | (5,224) | 0 |
NET CASH USED IN INVESTING ACTIVITIES | (5,224) | 0 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Payments on prepaid insurance financing | (47,987) | (65,321) |
Proceeds from notes payable | 0 | 73,100 |
Proceeds from related party notes and advances | 620,000 | 435,000 |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 572,013 | 442,779 |
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | (22,590) | (63,195) |
CASH AND CASH EQUIVALENTS, beginning of period | 23,625 | 86,820 |
CASH AND CASH EQUIVALENTS, end of period | 1,035 | 23,625 |
Cash paid for: | ||
Interest | 1,355 | 500 |
Non-cash financing activities: | ||
Financed portion of prepaid insurance | $ 46,293 | $ 62,850 |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2022 | |
ORGANIZATION AND NATURE OF OPERATIONS | |
ORGANIZATION AND NATURE OF OPERATIONS | NOTE 1 - ORGANIZATION AND NATURE OF OPERATIONS EnerTeck Corporation, formerly Gold Bond Resources, Inc. was incorporated under the laws of the State of Washington on July 30, 1935. On January 9, 2003, the Company acquired EnerTeck Chemical Corp. (“EnerTeck Sub”) as its wholly owned operating subsidiary. As a result of the acquisition, the Company is a holding company, with EnerTeck Sub as its only operating business. Subsequent to this transaction, on November 24, 2003, the Company changed its domicile from the State of Washington to the State of Delaware, changed its name from Gold Bond Resources, Inc. to EnerTeck Corporation. EnerTeck Sub, the Company’s wholly owned operating subsidiary, is a Houston-based corporation. It was incorporated in the State of Texas on November 29, 2000 and was formed for the purpose of commercializing a diesel fuel specific combustion catalyst known as EnerBurn (TM), as well as other combustion enhancement and emission reduction technologies for diesel fuel. EnerTeck Sub’s primary product is EnerBurn and is registered for highway use in all USA diesel applications. The products are used primarily in on-road vehicles, locomotives and diesel marine engines throughout the United States and select foreign markets. During 2012, EnerTeck acquired a 40% membership interest in EnerTeck Environmental, LLC (“Environmental”). Environmental was formed for the purpose of marketing and selling diesel fuel emission reduction technology with the creators of such specific technology. Such company is presently inactive with no business operations. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Consolidation: Segment Reporting: Segment Reporting Cash and Cash Equivalents: Inventory: Finished product costs amounted to approximately $79,000 and $89,000 at December 31, 2022 and 2021, respectively, and include required blending costs to bring the Company’s products to their finished state. Accounts Receivable: Concentrations of Credit Risk: Property and Equipment: Intangible Assets: Goodwill and Other Intangible Assets The Company has determined its intellectual property to have a finite life of 12 years. Amortization expense was $12,500 for the years ended December 31, 2022 and 2021. Revenue Recognition: Revenues from Contracts with Customers While the Company has had some direct customers over the years, the principal method of selling the Company’s product EnerBurn is through the use of independent distributors, for both domestic and international markets. The transaction price for each sale is explicitly stated within the contract with a customer. The Company does not accept returns nor does it provide warranty on its product’s performance, as control of performance is based on the proper utilization by the final user. Normal payment terms for domestic sales to both customers and distributors shipping within the United States are net 30 days. All foreign shipments are cash in advance of shipment from the Company’s location. The Company’s sole performance obligation to customers and distributors is the manufacturing and shipment of EnerBurn. Revenues from sales of the Company’s product are recognized at the point when a customer or distributor order has been completed and shipped. Sales of all product are f.o.b. shipping point. All sales contracts between the individual distributor and end customer are the responsibility of the individual distributor and the amount of mark up above the distributors’ wholesale price per unit is the purview of the distributor. The Company may from time to time enter into contracts to sell exclusive distributorship rights to certain markets for a fee. The contracts typically contain a term of market exclusivity as well as other performance obligations. The Company has determined the performance obligations on these types of contracts are satisfied evenly over the term of the contract and recognizes revenue evenly over the term of the contract. For such contracts that were classified as deferred revenue at the beginning of 2022 and 2021, the Company recognized revenue of $695 and $8,333 for the years ended December 31, 2022 and 2021. The remaining performance obligations on these contracts as of December 31, 2022 is $0. In the following table, revenues have been disaggregated for the years indicated: Year Ended December 31, 2022 2021 Revenues - domestic $ 100,302 $ 67,068 Revenues - foreign - - Total revenues $ 100,302 $ 67,068 As stated above, the Company does not accept returns nor does it provide warranty on its product’s performance, as control of performance is based on the proper utilization by the final user. The Company periodically tests the product manufactured prior to shipment for its proprietary quality standards and guarantees to the distributors that the product will always maintain the level of strict quality standard that is integral to the performance of its product for the end customer. The Company will provide a Certificate of Analysis, (“C of A”) on each shipment of its product, if requested by the customer. The C of A provides proof that the product is manufactured to meet chemical specifications that insure performance standards. Cost of Goods Sold: Income Taxes: Earnings per Share: ”Earnings Per Share” Use of Estimates: Fair value measurements: Stock Options and Warrants: The Company values warrant and option awards using the Black-Scholes option pricing model. Stock options and warrants expire on the dates designated in the instrument. The Board has agreed and can agree in the future to issue replacement options and warrants, on a case-by-case basis, if they so determine, that to be appropriate at the time however there is no set policy in place to do so. Forfeitures of any options are accounted for as they occur. Sales Tax: Ability to Continue as a Going Concern In accordance with ASC Subtopic 205-40, Going Concern, management evaluates whether relevant conditions and events that, when considered in the aggregate, indicate that it is probable the Company will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued. When relevant conditions or events, considered in the aggregate, initially indicate that it is probable that the Company will be unable to meet its obligations as they become due within one year after the date that the consolidated financial statements are issued (and therefore they raise substantial doubt about the Company’s ability to continue as a going concern), management evaluates whether its plans that are intended to mitigate those conditions and events, when implemented, will alleviate substantial doubt about the Company’s ability to continue as a going concern. Management’s plans are considered only to the extent that 1) it is probable that the plans will be effectively implemented and 2) it is probable that the plans will mitigate the conditions or events that raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. During the years ended December 31, 2022 and 2021, the Company incurred recurring net losses of $1,202,348 and $1,203,578, respectively. Further, most of the Company’s notes payable are overdue and payment may be demanded at any time. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. The Company’s continuation as a going concern is contingent upon its ability to obtain additional financing and to generate revenues and cash flow to meet its obligations on a timely basis. The Company has been able to obtain cash in the past through private placements and issuing promissory notes and believes that these avenues will remain available to the Company. These financings are intended to mitigate the substantial doubt raised by our historical operating results and satisfying our estimated liquidity needs 12 months from the issuance of the consolidated financial statements. However, there is no certainty that additional financing can be obtained in the future at terms acceptable to the Company. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2022 | |
PROPERTY AND EQUIPMENT | |
PROPERTY AND EQUIPMENT | NOTE 3 - PROPERTY AND EQUIPMENT At December 31, 2022 and 2021 property and equipment consisted of the following: December 31, 2022 2021 Furniture and fixtures $ 30,909 $ 30,909 Equipment 244,638 239,414 275,547 270,323 Less: accumulated depreciation 269,274 269,210 Total property and equipment, net $ 6,273 $ 1,113 Depreciation expense totaled $64 and $208 for the years ended December 31, 2022 and 2021, respectively. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2022 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 4 - FAIR VALUE OF FINANCIAL INSTRUMENTS The Company follows ASC Topic 820-10 as it relates to financial assets and financial liabilities, which defines fair value, establishes a framework for measuring fair value under GAAP and expands disclosures about fair value measurements. ASC Topic 820-10 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Hierarchical levels, as defined in this guidance and directly related to the amount of subjectivity associated with the inputs to fair valuations of these assets and liabilities are as follows: Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 – Inputs that are both significant to the fair value measurement and unobservable. The reported fair values for financial instruments that use Level 2 and Level 3 inputs to determine fair value are based on a variety of factors and assumptions. Accordingly, certain fair values may not represent actual values of the financial instruments that could have been realized as of December 31, 2022 and 2021 or that will be realized in the future and do not include expenses that could be incurred in an actual sale or settlement. Financial instruments consist of cash and cash equivalents, trade receivable, trade payable and related party notes payable. With the exception of the related party notes payable, the carrying value of the financial instruments approximates fair value due to the short-term nature of these items. The carrying value of the related party notes payable may not represent the fair values of these financial instruments. |
LOSS PER COMMON SHARE
LOSS PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2022 | |
LOSS PER COMMON SHARE | |
LOSS PER COMMON SHARE | NOTE 5 - LOSS PER COMMON SHARE The Company follows ASC 260, ”Earnings Per Share” The following table sets forth the computation of basic and diluted loss per share: Year Ended December 31, 2022 2021 Net loss $ (1,202,348 ) $ (1,203,578 ) Weighted average common shares outstanding: Basic and diluted 36,380,690 36,380,690 Basic and diluted loss per share $ (0.03 ) $ (0.03 ) For the years ended December 31, 2022 and 2021, 4,940,000 stock warrants were excluded from diluted earnings per share because they are considered anti-dilutive. For the years ended December 31, 2022 and 2021, 1,235,070 stock options were excluded from diluted earnings per share because they are considered anti-dilutive. Further, the calculation of diluted weighted-average shares outstanding for the years ended December 31, 2022 and 2021 exclude potential shares, related to the outstanding convertible notes payable, which if converted, would be anti-dilutive and would have a significant impact on the total number of shares outstanding, once exercised. |
STOCKHOLDERS EQUITY
STOCKHOLDERS EQUITY | 12 Months Ended |
Dec. 31, 2022 | |
STOCKHOLDERS EQUITY | |
STOCKHOLDERS' EQUITY | NOTE 6 - STOCKHOLDERS’ EQUITY During the years ended December 31, 2022 and 2021 no equity activity occurred. |
STOCK WARRANTS AND OPTIONS
STOCK WARRANTS AND OPTIONS | 12 Months Ended |
Dec. 31, 2022 | |
STOCK WARRANTS AND OPTIONS | |
STOCK WARRANTS AND OPTIONS | NOTE 7 - STOCK WARRANTS AND OPTIONS Stock Warrants No warrants were issued or exercised, nor were there any warrants that expired, during the year ended December 31, 2022. On July 3, 2021, and effective retroactively to May 17, 2021, the Board of Directors authorized and approved the extension of the expiration dates of 2,050,000 warrants exercisable at $0.60 per share that expired on May 17, 2021 to December 31, 2026. On July 3, 2021, the Board of Directors authorized and approved the extension of the expiration dates of 1,290,000 warrants exercisable at $0.60 per share that expired on August 9, 2021 to December 31, 2026. An additional 1,250,000 warrants expired on August 9, 2021 that were not extended. On July 3, 2021, the Board of Directors authorized and approved the extension of the expiration dates of 100,000 warrants exercisable at $0.75 per share due to expire on September 9, 2021 to December 31, 2026. On July 3, 2021, the Board of Directors authorized and approved the extension of the expiration dates of 750,000 warrants exercisable at $0.30 per share due to expire on November 8, 2021 to December 31, 2026. On July 3, 2021, the Board of Directors also granted 250,000 warrants to each of the three directors that have an exercise price of $0.30 per share and expire on December 31, 2026. A summary of warrants outstanding and exercisable as of December 31, 2022 were: Weighted Average Exercisable Exercise Number of Remaining Number of Price Warrants Life in Years Warrants $ 0.60 3,340,000 4.0 3,340,000 $ 0.75 100,000 4.0 100,000 $ 0.30 1,500,000 4.0 1,500,000 4,940,000 4,940,000 The following assumptions were used to value the stock warrant grants for year ended December 31, 2021: Years Ended December 31, 2022 2021 Expected volatility - 248.01 % Expected dividend yield - - Risk-free interest rates - 0.86 % Expected term (in years) - 5.0 The computation of expected volatility during the year ended December 31, 2021 was based on historical volatility. Historical volatility was calculated from historical data for the time approximately equal to the expected term of the option award starting from the grant date. The risk-free interest rate assumption is based upon the U.S. Treasury yield curve in effect at the time of grant for the period corresponding with the expected life of the option. During the year ended December 31, 2021, $154,073 was recognized as stock-based compensation associated with the issuance and extension of expired warrants. No stock-based compensation was recognized during the year ended December 31, 2022. Stock Options In September 2003, shareholders of the Company approved an employee stock option plan (the “2003 Option Plan”) authorizing the issuance of options to purchase up to 1,000,000 shares of common stock. The 2003 Option Plan is intended to give the Company greater ability to attract, retain, and motivate officers, key employees, directors and consultants; and is intended to provide the Company with the ability to provide incentives more directly linked to the success of the Company’s business and increases in shareholder value. During the third quarter of 2013, the board of directors increased the number of shares reserved for issuance under the 2003 Option Plan from 1,000,000 to 1,250,000 which was increased by the board to 1,750,000 during the third quarter of 2018. On July 3, 2021, the Board of Directors authorized and approved the extension of the expiration dates of 141,667 options exercisable at $0.60 per share due to expire on August 9, 2021 for an additional term of five years, and authorized and approved the extension of 165,010 options exercisable at $0.30 per share due to expire on August 2, 2021 for an additional term of five years. In addition, on July 3, 2021, the Board also granted a total of 247,516 options to employees which options have an exercise price of $0.20 per share and expire five years thereafter, On July 21, 2021, the Board of Directors also authorized and approved the extension of 150,000 options exercisable at $0.30 per share due to expire on September 21, 2021 for an additional term of five years. A summary of the activity of the Company’s stock options for the years ended December 31, 2022 and 2021 is presented below: Weighted Weighted Weighted Average Average Average Number of Remaining Optioned Aggregate Exercise Optioned Contractual Grant Date Intrinsic Price Shares Term in Years Fair Value Value Balance as of December 31, 2020 $ 0.36 1,133,388 $ - $ - Expired 0.41 (602,511 ) 0.21 Granted 0.33 704,193 0.07 Exercised - - - Forfeited - - - Balance as of December 31, 2021 $ 0.32 1,235,070 $ - $ - Expired - - - Granted - - - Exercised - - - Forfeited - - - Balance as of December 31, 2022 $ 0.32 1,235,070 2.31 $ 0.09 $ - Vested and exercisable as of December 31, 2022 $ 0.32 1,235,070 2.31 $ 0.09 $ - The following assumptions were used to value the stock option grants for nine months ended December 31, 2021: Years Ended December 31, 2022 2021 Expected volatility - 247.84 % Expected dividend yield - - Risk-free interest rates - 0.83 % Expected term (in years) - 5.0 The computation of expected volatility during the year ended December 31, 2021 was based on historical volatility. Historical volatility was calculated from historical data for the time approximately equal to the expected term of the option award starting from the grant date. The risk-free interest rate assumption is based upon the U.S. Treasury yield curve in effect at the time of grant for the period corresponding with the expected life of the option. During the year ended December 31, 2021, $48,743 was recognized as stock-based compensation associated with the extension of expired options and the issuance of new options. No stock-based compensation was recognized during the year ended December 31, 2022. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
INCOME TAXES | |
INCOME TAXES | NOTE 8 - INCOME TAXES The Company follows the asset and liability method of accounting for income taxes under ASC 740, “Income Taxes.” Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statements 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. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. EnerTeck has incurred net losses since the merger with Gold Bond and, therefore, has no tax liability. The net deferred tax asset generated by the loss carry-forward has been fully reserved. The cumulative operating loss carry-forward is approximately $26,795,000 at December 31, 2022 and expires beginning in 2023. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities. As of December 31, 2022, and 2021, the Company has recorded no unrecognized tax benefits or related penalty and interest. Additionally, the Company does not expect any unrecognized tax benefits to change significantly over the next twelve months. A reconciliation of the expected U.S. income tax expense (benefit) to income taxes is as follows: Year Ended December 31, 2022 2021 Expected tax expense (benefit) at U.S. statutory rate $ (252,000 ) $ (253,000 ) Change in valuation allowance 780,000 249,000 Other (528,000 ) 4,000 Total income tax expense/(benefit) $ - $ - Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts reported for income tax purposes at the enacted tax rates in effect when the differences are anticipated to reverse. A deferred tax asset will be reduced by a valuation allowance when, based on the Company’s estimates, it is more likely than not that a portion of those assets will not be realized in a future period. Components of deferred income taxes are as follows: December 31, 2022 2021 Net operating loss carry forwards $ 5,627,000 $ 5,420,000 Deferred compensation costs and other 1,546,000 973,000 Valuation allowance (7,173,000 ) (6,393,000 ) Net deferred tax assets/(liabilities) $ - $ - |
RELATED PARTY NOTES AND ADVANCE
RELATED PARTY NOTES AND ADVANCES | 12 Months Ended |
Dec. 31, 2022 | |
RELATED PARTY NOTES AND ADVANCES | |
RELATED PARTY NOTES AND ADVANCES | NOTE 9 – RELATED PARTY NOTES AND ADVANCES On July 7, 2009, the Company entered into a $100,000 unsecured promissory note with an officer, due on demand. Interest is payable at 12% per annum. Also, on December 11, 2009, the Company entered into a $50,000 note with a shareholder/director. Interest is 5% per annum. The principal balance of the note was due on the earlier of December 11, 2013, or upon completion by the Company of equity financing in excess of $1.0 million in gross proceeds. Interest on the loan is payable on the maturity date at the rate of 5% per annum. These notes are now overdue for payment. On June 1, 2010, the Company entered into a $50,000 convertible promissory note with a shareholder/director which was due on June 1, 2013 and accrues interest at 8.0% per annum payable at maturity and which may be converted at any time into shares of common stock. The assignment of the conversion feature of the note resulted in a loan discount being recorded. The discount amount of $36,207 was fully amortized over the original thirty-six-month term of the debt as additional interest expense. This note is now overdue for payment. On June 1, 2010, the Company entered into $300,000 of convertible promissory notes with a shareholder/director which was due on June 1, 2013 and accrues interest at 8.0% per annum payable at maturity and which may be converted at any time into shares of common stock the number of which is to be determined at that time. This note is now overdue for payment. On July 20, 2010, the Company entered into $400,000 convertible promissory notes with a shareholder/director which was due on July 20, 2013 and accrues interest at 8.0% per annum payable at maturity and which may be converted at any time into shares of common stock. This note is now overdue for payment. On July 20, 2010, the Company entered into a $100,000 convertible promissory note with a shareholder which was due on July 20, 2013 and accrues interest at 8.0% per annum payable at maturity and which may be converted at any time into shares of common stock. This note is now overdue for payment. On December 10, 2010, the Company entered into $150,000 of convertible promissory notes with a shareholder/director which was due on December 10, 2013 and accrues interest at 8.0% per annum payable at maturity and which may be converted at any time into shares of common stock. This note is now overdue for payment. On June 20, 2011, the Company entered into a $150,000 convertible promissory note with a shareholder/director which shall be due and payable on June 20, 2014 and accrues interest at 8.0% per annum payable at maturity and which may be converted at any time into shares of common stock. This note is now overdue for payment. On October 20, 2011, the Company entered into a $70,000 convertible promissory note with a shareholder/director which was due on October 20, 2014 and accrues interest at 8.0% per annum payable at maturity and which may be converted at any time into shares of common stock. This note is now overdue for payment. During the year ended December 31, 2018, a shareholder/director advanced $445,000 to the Company for working capital requirements. In addition, the Company reclassified a previous customer deposit of $37,500 originally received from a shareholder/director, made on behalf of a now deceased distributor, from customer deposits to shareholder deposits, as the original projected sale in question is no longer viable. The Company expects amounts advanced will be either (i) applied against a stock subscription to be issued at a future date or (ii) repaid at a future date as the parties shall determine. Until otherwise agreed, such amounts advanced have been recorded as an additional payable bearing no interest. During the year ended December 31, 2019, a shareholder/director advanced $570,000 to the Company for working capital requirements. The Company expects amounts advanced will be either (i) applied against a stock subscription to be issued at a future date or (ii) repaid at a future date as the parties shall determine. Until otherwise agreed, such amounts advanced have been recorded as an additional payable bearing no interest. During the year ended December 31, 2020, a shareholder/director advanced $625,000 to the Company for working capital requirements. The Company expects amounts advanced will be either (i) applied against a stock subscription to be issued at a future date or (ii) repaid at a future date as the parties shall determine. Until otherwise agreed, such amounts advanced have been recorded as an additional payable bearing no interest. During the year ended December 31, 2021, a shareholder/director advanced $435,000 to the Company for working capital requirements. The Company expects amounts advanced will be either (i) applied against a stock subscription to be issued at a future date or (ii) repaid at a future date as the parties shall determine. Until otherwise agreed, such amounts advanced have been recorded as an additional payable bearing no interest. During the year ended December 31, 2022, a shareholder/director advanced $620,000 to the Company for working capital requirements. The Company expects amounts advanced will be either (i) applied against a stock subscription to be issued at a future date or (ii) repaid at a future date as the parties shall determine. Until otherwise agreed, such amounts advanced have been recorded as an additional payable bearing no interest. The Company determined it is not practicable to estimate the fair value of outstanding debt as of December 31, 2022 and 2021, as the outstanding debt is private, there is no clarity as to when interest payments or principal payments will ultimately be made (or be called by the debt holders), and the Company lacks the internal expertise to calculate fair value of these debt instruments and would incur excessive costs to obtain a third-party valuation. Other Related Party Transactions As of December 31, 2022 and 2021, the Company owed approximately $5.0 million and $4.7 million, respectively, to its chief executive officer and other employees of the Company. The CEO and employees agreed to salary deferrals pending available resources to make such payments. One of the Company’s shareholders owns 100% of BATL Trading, Inc., which is a distributor of EnerBurn. There was no activity during 2022 and 2021 between the Company and BATL or between the Company and the Shareholder. During the years ended December 31, 2022 and 2021, the Company had sales to related parties of $0. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 10 - COMMITMENTS AND CONTINGENCIES Office Lease The Company follows ASU 2016-02, “Leases (Topic 842)” In January 2021, the Company executed an additional one-year amendment to the lease for office space for the period March 1, 2021 through February 28, 2022. As permitted by ASC 842-20-25-2 the Company has elected to not record the short-term lease on the consolidated balance sheets. In November 2021, the Company executed an additional one-year amendment to the lease for office space for the period March 1, 2022 through February 28, 2023. As permitted by ASC 842-20-25-2 the Company has elected to not record the short-term lease on the consolidated balance sheets. In January 2023, the Company executed an additional one-year amendment to the lease for office space for the period March 1, 2023 through February 29, 2024. As permitted by ASC 842-20-25-2 the Company has elected to not record the short-term lease on the consolidated balance sheets. Rent expense for the years ended December 31, 2022 and 2021 totaled $55,022 and $57,471, respectively, and is recorded within other selling, general and administrative expenses on the consolidated statements of operations. Future minimum rentals due under non-cancelable operating leases are approximately as follow: Year Ending December 31, 2023 $ 54,440 2024 9,073 2025 - 2026 - 2027 - Thereafter - $ 63,513 |
CONCENTRATION OF CREDIT RISK
CONCENTRATION OF CREDIT RISK | 12 Months Ended |
Dec. 31, 2022 | |
CONCENTRATION OF CREDIT RISK | |
CONCENTRATION OF CREDIT RISK | NOTE 11 - CONCENTRATION OF CREDIT RISK Financial instruments that potentially subject the Company to concentration of credit risk are accounts receivable. The Company performs ongoing credit evaluations as to the financial condition of its customers. Generally, no collateral is required. The Company at times has cash in bank in excess of Federal Deposit Insurance Corporation (“FDIC”) insurance limits. For the year ended December 31, 2022, four distributors made up 92% of sales and represented 100% of total accounts receivable at December 31, 2022. For the year ended December 31, 2021, four distributors made up 98% of sales and represented 0% of total accounts receivable at December 31, 2021. |
RECENTLY ISSUED ACCOUNTING PRON
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2022 | |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | NOTE 12 - RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying consolidated financial statements. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2022 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 13 - SUBSEQUENT EVENTS During the first quarter of 2023 the Company received total advances from a shareholder/director in the amount of $205,000. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Consolidation | Basis of Consolidation: |
Segment Reporting | Segment Reporting: Segment Reporting |
Cash and Cash Equivalents | Cash and Cash Equivalents: |
Inventory | Inventory: Finished product costs amounted to approximately $79,000 and $89,000 at December 31, 2022 and 2021, respectively, and include required blending costs to bring the Company’s products to their finished state. |
Accounts Receivable | Accounts Receivable: |
Concentrations of Credit Risk | Concentrations of Credit Risk: |
Property and Equipment | Property and Equipment: |
Intangible Assets | Intangible Assets: Goodwill and Other Intangible Assets The Company has determined its intellectual property to have a finite life of 12 years. Amortization expense was $12,500 for the years ended December 31, 2022 and 2021. |
Revenue Recognition | Revenue Recognition: Revenues from Contracts with Customers While the Company has had some direct customers over the years, the principal method of selling the Company’s product EnerBurn is through the use of independent distributors, for both domestic and international markets. The transaction price for each sale is explicitly stated within the contract with a customer. The Company does not accept returns nor does it provide warranty on its product’s performance, as control of performance is based on the proper utilization by the final user. Normal payment terms for domestic sales to both customers and distributors shipping within the United States are net 30 days. All foreign shipments are cash in advance of shipment from the Company’s location. The Company’s sole performance obligation to customers and distributors is the manufacturing and shipment of EnerBurn. Revenues from sales of the Company’s product are recognized at the point when a customer or distributor order has been completed and shipped. Sales of all product are f.o.b. shipping point. All sales contracts between the individual distributor and end customer are the responsibility of the individual distributor and the amount of mark up above the distributors’ wholesale price per unit is the purview of the distributor. The Company may from time to time enter into contracts to sell exclusive distributorship rights to certain markets for a fee. The contracts typically contain a term of market exclusivity as well as other performance obligations. The Company has determined the performance obligations on these types of contracts are satisfied evenly over the term of the contract and recognizes revenue evenly over the term of the contract. For such contracts that were classified as deferred revenue at the beginning of 2022 and 2021, the Company recognized revenue of $695 and $8,333 for the years ended December 31, 2022 and 2021. The remaining performance obligations on these contracts as of December 31, 2022 is $0. In the following table, revenues have been disaggregated for the years indicated: Year Ended December 31, 2022 2021 Revenues - domestic $ 100,302 $ 67,068 Revenues - foreign - - Total revenues $ 100,302 $ 67,068 As stated above, the Company does not accept returns nor does it provide warranty on its product’s performance, as control of performance is based on the proper utilization by the final user. The Company periodically tests the product manufactured prior to shipment for its proprietary quality standards and guarantees to the distributors that the product will always maintain the level of strict quality standard that is integral to the performance of its product for the end customer. The Company will provide a Certificate of Analysis, (“C of A”) on each shipment of its product, if requested by the customer. The C of A provides proof that the product is manufactured to meet chemical specifications that insure performance standards. |
Cost of Goods Sold | Cost of Goods Sold: |
Income Taxes | Income Taxes: |
Earnings per Share | Earnings per Share: ”Earnings Per Share” |
Use of Estimates | Use of Estimates: |
Fair value measurements | Fair value measurements: |
Stock Options and Warrants | Stock Options and Warrants: The Company values warrant and option awards using the Black-Scholes option pricing model. Stock options and warrants expire on the dates designated in the instrument. The Board has agreed and can agree in the future to issue replacement options and warrants, on a case-by-case basis, if they so determine, that to be appropriate at the time however there is no set policy in place to do so. Forfeitures of any options are accounted for as they occur. |
Sales Tax | Sales Tax: |
Ability to Continue as a Going Concern | In accordance with ASC Subtopic 205-40, Going Concern, management evaluates whether relevant conditions and events that, when considered in the aggregate, indicate that it is probable the Company will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued. When relevant conditions or events, considered in the aggregate, initially indicate that it is probable that the Company will be unable to meet its obligations as they become due within one year after the date that the consolidated financial statements are issued (and therefore they raise substantial doubt about the Company’s ability to continue as a going concern), management evaluates whether its plans that are intended to mitigate those conditions and events, when implemented, will alleviate substantial doubt about the Company’s ability to continue as a going concern. Management’s plans are considered only to the extent that 1) it is probable that the plans will be effectively implemented and 2) it is probable that the plans will mitigate the conditions or events that raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. During the years ended December 31, 2022 and 2021, the Company incurred recurring net losses of $1,202,348 and $1,203,578, respectively. Further, most of the Company’s notes payable are overdue and payment may be demanded at any time. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. The Company’s continuation as a going concern is contingent upon its ability to obtain additional financing and to generate revenues and cash flow to meet its obligations on a timely basis. The Company has been able to obtain cash in the past through private placements and issuing promissory notes and believes that these avenues will remain available to the Company. These financings are intended to mitigate the substantial doubt raised by our historical operating results and satisfying our estimated liquidity needs 12 months from the issuance of the consolidated financial statements. However, there is no certainty that additional financing can be obtained in the future at terms acceptable to the Company. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of revenue | Year Ended December 31, 2022 2021 Revenues - domestic $ 100,302 $ 67,068 Revenues - foreign - - Total revenues $ 100,302 $ 67,068 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
PROPERTY AND EQUIPMENT | |
Schedule of property and equipment | December 31, 2022 2021 Furniture and fixtures $ 30,909 $ 30,909 Equipment 244,638 239,414 275,547 270,323 Less: accumulated depreciation 269,274 269,210 Total property and equipment, net $ 6,273 $ 1,113 |
LOSS PER COMMON SHARE (Tables)
LOSS PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
LOSS PER COMMON SHARE | |
Schedule of basic and diluted loss per share | Year Ended December 31, 2022 2021 Net loss $ (1,202,348 ) $ (1,203,578 ) Weighted average common shares outstanding: Basic and diluted 36,380,690 36,380,690 Basic and diluted loss per share $ (0.03 ) $ (0.03 ) |
STOCK WARRANTS AND OPTIONS (Tab
STOCK WARRANTS AND OPTIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
STOCK WARRANTS AND OPTIONS | |
Schedule of warrants outstanding and exercisable | Weighted Average Exercisable Exercise Number of Remaining Number of Price Warrants Life in Years Warrants $ 0.60 3,340,000 4.0 3,340,000 $ 0.75 100,000 4.0 100,000 $ 0.30 1,500,000 4.0 1,500,000 4,940,000 4,940,000 |
Following fair value assumptions of stock options | Years Ended December 31, 2022 2021 Expected volatility - 248.01 % Expected dividend yield - - Risk-free interest rates - 0.86 % Expected term (in years) - 5.0 Years Ended December 31, 2022 2021 Expected volatility - 247.84 % Expected dividend yield - - Risk-free interest rates - 0.83 % Expected term (in years) - 5.0 |
Schedule of activity for stock options | Weighted Weighted Weighted Average Average Average Number of Remaining Optioned Aggregate Exercise Optioned Contractual Grant Date Intrinsic Price Shares Term in Years Fair Value Value Balance as of December 31, 2020 $ 0.36 1,133,388 $ - $ - Expired 0.41 (602,511 ) 0.21 Granted 0.33 704,193 0.07 Exercised - - - Forfeited - - - Balance as of December 31, 2021 $ 0.32 1,235,070 $ - $ - Expired - - - Granted - - - Exercised - - - Forfeited - - - Balance as of December 31, 2022 $ 0.32 1,235,070 2.31 $ 0.09 $ - Vested and exercisable as of December 31, 2022 $ 0.32 1,235,070 2.31 $ 0.09 $ - |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INCOME TAXES | |
Schedule of reconciliation of income tax | Year Ended December 31, 2022 2021 Expected tax expense (benefit) at U.S. statutory rate $ (252,000 ) $ (253,000 ) Change in valuation allowance 780,000 249,000 Other (528,000 ) 4,000 Total income tax expense/(benefit) $ - $ - |
Schedule of Component of deferred tax assets | December 31, 2022 2021 Net operating loss carry forwards $ 5,627,000 $ 5,420,000 Deferred compensation costs and other 1,546,000 973,000 Valuation allowance (7,173,000 ) (6,393,000 ) Net deferred tax assets/(liabilities) $ - $ - |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of Future minimum rentals due under non-cancelable operating leases | Year Ending December 31, 2023 $ 54,440 2024 9,073 2025 - 2026 - 2027 - Thereafter - $ 63,513 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Total Revenue | $ 100,302 | $ 67,068 |
Domestic [Member] | ||
Total Revenue | 100,302 | 67,068 |
Foreign [Member] | ||
Total Revenue | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Allowances for doubtful accounts | $ 6,722 | $ 6,722 | $ 631 |
Accounts receivable | 6,950 | 0 | $ 36,606 |
Inventory, finished product costs | 79,000 | 89,000 | |
Deferred Revenue, Revenue Recognized | 695 | 8,333 | |
Performance obligations | 0 | ||
Net losses | (1,202,348) | (1,203,578) | |
Amortization expenses | $ 12,500 | $ 12,500 | |
Intellectual Property [Member] | |||
Intangible assets, finite life | 12 years | ||
Minimum [Member] | Property, Plant and Equipment [Member] | |||
Estimated useful life | 5 years | ||
Maximum [Member] | Property, Plant and Equipment [Member] | |||
Estimated useful life | 7 years |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
PROPERTY AND EQUIPMENT | ||
Furniture and fixtures | $ 30,909 | $ 30,909 |
Equipment | 244,638 | 239,414 |
Property plant and equipment gross | 275,547 | 270,323 |
Less: accumulated depriciation | 269,274 | 269,210 |
Total property and equipment, net | $ 6,273 | $ 1,113 |
PROPERTY AND EQUIPMENT (Detai_2
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
PROPERTY AND EQUIPMENT | ||
Depreciation expense | $ 64 | $ 208 |
LOSS PER COMMON SHARE (Details)
LOSS PER COMMON SHARE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
LOSS PER COMMON SHARE | ||
Net loss | $ (1,202,348) | $ (1,203,578) |
Weighted average common shares outstanding: Basic and diluted | 36,380,690 | 36,380,690 |
Basic and diluted loss per share | $ (0.03) | $ (0.03) |
LOSS PER COMMON SHARE (Details
LOSS PER COMMON SHARE (Details Narrative) - shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Potentially dilutive securities excluded from the computation of EPS | 36,380,690 | 36,380,690 |
Stock Options [Member] | ||
Potentially dilutive securities excluded from the computation of EPS | 1,235,070 | 1,235,070 |
Warrants [Member] | ||
Potentially dilutive securities excluded from the computation of EPS | 4,940,000 | 4,940,000 |
STOCK WARRANTS AND OPTIONS (Det
STOCK WARRANTS AND OPTIONS (Details) | 12 Months Ended |
Dec. 31, 2022 shares | |
Number of Warrants | 4,940,000 |
Exercisable Number of Warrants | 4,940,000 |
Exercise Price $0.75 [Member] | |
Number of Warrants | 100,000 |
Weighted Average Remaining Life in Years | 4 years |
Exercisable Number of Warrants | 100,000 |
Exercise Price $0.30 [Member] | |
Number of Warrants | 1,500,000 |
Weighted Average Remaining Life in Years | 4 years |
Exercisable Number of Warrants | 1,500,000 |
Exercise Price $0.60 [Member] | |
Number of Warrants | 3,340,000 |
Weighted Average Remaining Life in Years | 4 years |
Exercisable Number of Warrants | 3,340,000 |
STOCK WARRANTS AND OPTIONS (D_2
STOCK WARRANTS AND OPTIONS (Details 1) - Stock warrant [Member] | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Expected volatility | 0% | 248.01% |
Expected dividend yield | 0% | 0% |
Risk free interest rate | 0% | 0.86% |
Expected term (in years) | 5 years |
STOCK WARRANTS AND OPTIONS (D_3
STOCK WARRANTS AND OPTIONS (Details 2) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
STOCK WARRANTS AND OPTIONS | ||
Weighted average exercise price, Outstanding at beginning | $ 0.32 | $ 0.36 |
Weighted average exercise price, Expired | 0 | 0.41 |
Weighted average exercise price, Granted | 0 | 0.33 |
Weighted average exercise price, Outstanding at the end | 0.32 | $ 0.32 |
Weighted average exercise price, Vested and exercisable | $ 0.32 | |
Number of optioned shares, Outstanding at beginning | 1,235,070 | 1,133,388 |
Number of optioned shares, Expired | (602,511) | |
Number of optioned shares, Granted | 704,193 | |
Number of optioned shares, Outstanding at the end | 1,235,070 | 1,235,070 |
Number of optioned shares, Vested and exercisable | 1,235,070 | |
Weighted Average Remaining Contractual Term in Years | 2 years 3 months 21 days | |
Weighted Average Remaining Contractual Term in Years vested and exercisable | 2 years 3 months 21 days | |
Weighted average fair value grant date, Outstanding at beginning | $ 0 | $ 0 |
Weighted average fair value grant date, Expired | 0 | 0.21 |
Weighted average fair value grant date, Granted | 0 | 0.07 |
Weighted average fair value grant date, Exercised | 0 | 0 |
Weighted average fair value grant date, Forfeited | 0 | 0 |
Weighted average fair value grant date, Outstanding at ending | 0.09 | $ 0 |
Weighted average Fair value of options vested and exercisable during the period | $ 0.09 |
STOCK WARRANTS AND OPTIONS (D_4
STOCK WARRANTS AND OPTIONS (Details 3) - Stock options [Member] | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Expected volatility | 0% | 247.84% |
Expected dividend yield | 0% | 0% |
Risk free interest rate | 0% | 0.83% |
Expected term (in years) | 5 years |
STOCK WARRANTS AND OPTIONS (D_5
STOCK WARRANTS AND OPTIONS (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Aug. 09, 2021 | Sep. 30, 2013 | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2003 | |
Warrants Extended Expiration Date Description | On July 3, 2021, and effective retroactively to May 17, 2021, the Board of Directors authorized and approved the extension of the expiration dates of 2,050,000 warrants exercisable at $0.60 per share that expired on May 17, 2021 to December | ||||
Stock-based compensation | $ 0 | $ 202,816 | |||
Stock option exercise price | $ 0 | $ 0.41 | |||
2003 Option Plan [Member] | |||||
Description of option plan | During the third quarter of 2013, the board of directors increased the number of shares reserved for issuance under the 2003 Option Plan from 1,000,000 to 1,250,000 which was increased by the board to 1,750,000 during the third quarter of 2018. | ||||
Common stock, shares reserved for future issuance | 1,000,000 | ||||
Stock warrant [Member] | |||||
Stock-based compensation | $ 154,073 | ||||
Stock Options [Member] | |||||
Stock-based compensation | $ 48,743 | ||||
Stock Options [Member] | July 3, 2021 [Member] | |||||
Stock option exercisable | 141,667 | ||||
Stock option exercise price | $ 0.60 | ||||
Stock option expire date | Aug. 09, 2021 | ||||
Stock option term | 5 years | ||||
Warrants [Member] | July 3, 2021 [Member] | |||||
Warrants expired | 1,250,000 | ||||
Exercise price | $ 0.60 | ||||
Warrants Expire date | Aug. 09, 2021 | ||||
Warrants outstanding | 1,290,000 | ||||
Stock Warrants 1 [Member] | July 3, 2021 [Member] | |||||
Exercise price | $ 0.75 | ||||
Warrants Expire date | Sep. 09, 2021 | ||||
Warrants outstanding | 100,000 | ||||
Stock Warrants 2 [Member] | July 3, 2021 [Member] | |||||
Exercise price | $ 0.30 | ||||
Warrants Expire date | Nov. 08, 2021 | ||||
Warrants outstanding | 750,000 | ||||
Stock Warrants 3 [Member] | July 3, 2021 [Member] | |||||
Exercise price | $ 0.30 | ||||
Warrants Expire date | Dec. 31, 2026 | ||||
Warrants outstanding | 250,000 | ||||
Stock Option 1 [Member] | July 3, 2021 [Member] | |||||
Stock option exercisable | 165,010 | ||||
Stock option exercise price | $ 0.30 | ||||
Stock option expire date | Aug. 02, 2021 | ||||
Stock option term | 5 years | ||||
Stock Option 2 [Member] | July 3, 2021 [Member] | |||||
Stock option exercisable | 247,516 | ||||
Stock option exercise price | $ 0.20 | ||||
Stock option term | 5 years | ||||
Stock Option 3 [Member] | July 21, 2021 [Member] | |||||
Stock option exercisable | 150,000 | ||||
Stock option exercise price | $ 0.30 | ||||
Stock option expire date | Sep. 21, 2021 | ||||
Stock option term | 5 years |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
INCOME TAXES | ||
Expected tax expense (benfit) at U.S. statutoey rate | $ (252,000) | $ (253,000) |
Change in valuation allowance | 780,000 | 249,000 |
Other | (528,000) | 4,000 |
Total Income Tax Expenses (Benefit) | $ 0 | $ 0 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
INCOME TAXES | ||
Net operating loss carry forward | $ 5,627,000 | $ 5,420,000 |
Deferred compensation cost and other | 1,546,000 | 973,000 |
Valuation allowance | (7,173,000) | (6,393,000) |
Net deferred tax assets/(liabilities) | $ 0 | $ 0 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
INCOME TAXES | |
Cumulative operating loss carry forward | $ 26,795,000 |
Operating loss carry forward expiration date | expires beginning in 2023 |
RELATED PARTY NOTES AND ADVAN_2
RELATED PARTY NOTES AND ADVANCES (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||||||
Dec. 11, 2013 | Dec. 10, 2010 | Jun. 01, 2010 | Oct. 20, 2011 | Jun. 20, 2011 | Jul. 20, 2010 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 11, 2009 | Jul. 07, 2009 | |
Gross proceeds | $ 1,000,000 | ||||||||||||
Interest rate | 5% | 12% | |||||||||||
Convertible promissory note | $ 100,000 | ||||||||||||
Accrued compensation | $ 4,963,987 | $ 4,748,687 | |||||||||||
Director One [Member] | |||||||||||||
Interest rate | 8% | 8% | 8% | ||||||||||
Convertible promissory note | $ 150,000 | $ 300,000 | $ 100,000 | ||||||||||
Maturity date | Dec. 10, 2013 | Jun. 01, 2013 | |||||||||||
Director [Member] | |||||||||||||
Interest rate | 5% | 8% | 8% | 8% | 8% | 5% | |||||||
Convertible promissory note | $ 50,000 | $ 70,000 | $ 150,000 | $ 400,000 | $ 50,000 | ||||||||
Maturity date | Jun. 01, 2013 | Oct. 20, 2014 | Jun. 20, 2014 | Jul. 20, 2013 | |||||||||
Amortization of debt discount | $ 36,207 | ||||||||||||
Proceeds from related party notes and advances | 620,000 | 435,000 | $ 625,000 | $ 570,000 | $ 445,000 | ||||||||
Customer deposit | $ 37,500 | ||||||||||||
Chief Executive Officer And Other Employees [Member] | |||||||||||||
Accrued compensation | $ 5,000,000 | $ 4,700,000 | |||||||||||
BATL Trading, Inc [Member] | |||||||||||||
Shareholders ownership percentage | 100% |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) | Dec. 31, 2022 USD ($) |
COMMITMENTS AND CONTINGENCIES | |
2023 | $ 54,440 |
2024 | 9,073 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
Thereafter | 0 |
Total | $ 63,513 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
COMMITMENTS AND CONTINGENCIES | ||
Rent expense | $ 55,022 | $ 57,471 |
CONCENTRATION OF CREDIT RISK (D
CONCENTRATION OF CREDIT RISK (Details Narrative) - Four distributors [Member] | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Percentage of total sales | 92% | 98% |
Percentage of total account recceivables | 100% | 0% |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Proceeds from related party notes and advances | $ 620,000 | $ 435,000 | |
Subsequent Event [Member] | |||
Proceeds from related party notes and advances | $ 205,000 |