Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 14, 2023 | |
Cover [Abstract] | ||
Entity Registrant Name | ENERTECK CORPORATION | |
Entity Central Index Key | 0001128353 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Jun. 30, 2023 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2023 | |
Entity Common Stock Shares Outstanding | 36,380,690 | |
Document Quarterly 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 | |
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 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 24,278 | $ 1,035 |
Inventory | 184,331 | 185,316 |
Accounts receivable | 2,750 | 6,950 |
Prepaid expenses | 49,018 | 15,237 |
Total current assets | 260,377 | 208,538 |
Intangible assets, net of accumulated amortization of $56,250 and $50,000, respectively | 93,750 | 100,000 |
depreciation of $269,306 and $269,274, respectively | 6,241 | 6,273 |
TOTAL ASSETS | 360,368 | 314,811 |
Current liabilities | ||
Accounts payable | 318,290 | 276,876 |
Customer advances | 50,900 | 50,900 |
Related party notes and advances | 4,472,500 | 4,112,500 |
Accrued compensation | 5,067,812 | 4,963,987 |
Accrued interest | 2,554,886 | 2,397,780 |
Accrued liabilities | 332,372 | 301,103 |
Total liabilities | 12,796,760 | 12,103,146 |
Stockholders' deficit | ||
Preferred stock, $.001 par value, authorized 10,000,000 shares, none issued and outstanding at June 30, 2023 and December 31, 2022 | 0 | 0 |
Common stock, $.001 par value, authorized 100,000,000 shares, 36,380,690 issued and outstanding at June 30, 2023 and December 31, 2022 | 36,381 | 36,381 |
Additional paid-in capital | 29,495,837 | 29,495,837 |
Accumulated deficit | (41,968,610) | (41,320,553) |
Total stockholders' deficit | (12,436,392) | (11,788,335) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ 360,368 | $ 314,811 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Intangible assets, net of accumulated amortization | $ 56,250 | $ 50,000 |
Accumulated depreciation of Property and equipment, net | $ 269,306 | $ 269,274 |
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 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||
Revenues | $ 5,500 | $ 44,889 | $ 5,500 | $ 76,060 |
Cost of goods sold | 985 | 11,161 | 985 | 21,278 |
Gross profit | 4,515 | 33,728 | 4,515 | 54,782 |
General and administrative expenses | ||||
Wages | 133,978 | 133,968 | 268,006 | 268,008 |
Depreciation and amortization | 3,141 | 3,141 | 6,282 | 6,282 |
Other selling, general and administrative | 112,955 | 91,142 | 220,144 | 203,262 |
Total expenses | 250,074 | 228,251 | 494,432 | 477,552 |
Operating loss | (245,559) | (194,523) | (489,917) | (422,770) |
Other income (expense) | ||||
Interest income | 4 | 1 | 7 | 2 |
Other (expense) income | (446) | 0 | (1,041) | 2,372 |
Interest expense | (79,604) | (73,899) | (157,106) | (145,265) |
Net loss | $ (325,605) | $ (268,421) | $ (648,057) | $ (565,661) |
Loss per common share | ||||
Basic and diluted | $ (0.01) | $ (0.01) | $ (0.02) | $ (0.02) |
Weighted average shares outstanding | ||||
Basic and diluted | 36,380,690 | 36,380,690 | 36,380,690 | 36,380,690 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS DEFICIT (Unaudited) - USD ($) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) |
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) |
Net loss | (565,661) | $ 0 | 0 | (565,661) |
Balance, shares at Jun. 30, 2022 | 36,380,690 | |||
Balance, amount at Jun. 30, 2022 | (11,151,648) | $ 36,381 | 29,495,837 | (40,683,866) |
Balance, shares at Mar. 31, 2022 | 36,380,690 | |||
Balance, amount at Mar. 31, 2022 | (10,883,227) | $ 36,381 | 29,495,837 | (40,415,445) |
Net loss | (268,421) | $ 0 | 0 | (268,421) |
Balance, shares at Jun. 30, 2022 | 36,380,690 | |||
Balance, amount at Jun. 30, 2022 | (11,151,648) | $ 36,381 | 29,495,837 | (40,683,866) |
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) |
Net loss | (648,057) | $ 0 | 0 | (648,057) |
Balance, shares at Jun. 30, 2023 | 36,380,690 | |||
Balance, amount at Jun. 30, 2023 | (12,436,392) | $ 36,381 | 29,495,837 | (41,968,610) |
Balance, shares at Mar. 31, 2023 | 36,380,690 | |||
Balance, amount at Mar. 31, 2023 | (12,110,787) | $ 36,381 | 29,495,837 | (41,643,005) |
Net loss | (325,605) | $ 0 | 0 | (325,605) |
Balance, shares at Jun. 30, 2023 | 36,380,690 | |||
Balance, amount at Jun. 30, 2023 | $ (12,436,392) | $ 36,381 | $ 29,495,837 | $ (41,968,610) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (648,057) | $ (565,661) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 6,282 | 6,282 |
Effects of changes in operating assets and liabilities: | ||
Accounts receivable | 4,200 | (7,539) |
Inventory | 985 | (107,018) |
Prepaid expenses | (33,781) | (35,558) |
Accounts payable | 65,593 | 67,475 |
Accrued interest | 157,106 | 144,412 |
Accrued compensation | 103,825 | 107,650 |
Accrued liabilities | 31,269 | 22,759 |
Deferred revenue | 0 | (695) |
NET CASH USED IN OPERATING ACTIVITIES | (312,578) | (367,893) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Capital expenditures | 0 | 0 |
NET CASH USED IN INVESTING ACTIVITIES | 0 | 0 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from financing prepaid insurance | 0 | 0 |
Payments on prepaid insurance financing | (24,179) | (17,995) |
Proceeds from notes payable | 0 | 0 |
Proceeds from related party notes and advances | 360,000 | 400,000 |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 335,821 | 382,005 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 23,243 | 14,112 |
CASH AND CASH EQUIVALENTS, beginning of period | 1,035 | 23,625 |
CASH AND CASH EQUIVALENTS, end of period | 24,278 | 37,737 |
Cash paid for: | ||
Interest | 0 | 576 |
Non-cash financing activities: | ||
Financed portion of prepaid insurance | $ 51,571 | $ 46,293 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2023 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | NOTE 1 – BASIS OF PRESENTATION Nature of Operations: EnerTeck Corporation, a Delaware corporation, and its wholly owned subsidiary, EnerTeck Chemical Corp. (“EnerTeck Sub”) (collectively referred to as the “Company”) are headquartered in Houston, Texas. The Company specializes in the sales, marketing and manufacture of a fuel borne catalytic engine treatment for diesel engines known as EnerBurn®. The use of EnerBurn in diesel engines improves fuel economy, lowers smoke, and decreases engine wear and the dangerous emissions of both Nitrogen Oxide (NOx) and microscopic airborne solid matter (particulates). Principal target markets have included the trucking, heavy construction, maritime shipping, railroad and mining industries, as well as federal, state and international government applications. Key uncertainties and risks to the Company include, but are not limited to, if and how quickly the EnerBurn technology is accepted by the market and the effects future technological changes and environmental regulatory requirements may have on the need for diesel fuel additives. Basis of Presentation The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), and should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company’s Annual Report filed with the SEC on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the consolidated financial statements which would substantially duplicate the disclosure contained in the audited consolidated financial statements for fiscal 2022 as reported in the Form 10-K have been omitted. Use of Estimates In preparing the accompanying interim unaudited condensed consolidated financial statements, management has made certain estimates and assumptions that affect reported amounts in the interim unaudited condensed consolidated financial statements and disclosures of contingencies. Actual results may differ from those estimates. Inventory Inventory primarily consists of market ready EnerBurn plus raw materials required to manufacture the products. Inventory is valued at the lower of cost or net realizable value, using the average cost method. Finished product costs amounted to approximately $78,000 and $79,000 at June 30, 2023 and December 31, 2022, respectively, and includes required blending costs to bring the Company’s products to their finished state. Accounts Receivable and Expected Credit Losses Account receivables represent uncollateralized obligations due from customers of the Company and are recorded at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts to reflect any loss anticipated on the accounts receivable balances and charged to the provision for doubtful accounts. The Company calculates this allowance based on historical write-offs, level of past due accounts and relationships with and economic status of the customers. Accounts are written off as bad debts when all collection efforts have failed, and the account is deemed uncollectible. Accounts receivable balances as of June 30, 2023, December 31, 2022 and January 1, 2022 are $2,750, $6,950 and $0, respectively. The Company incorporated the measurement of expected credit losses on accounts receivable under the new methodology using a forward-looking approach that incorporates lifetime expected credit losses based on historical information, current conditions, and reasonable and supportable forecasts. The Company reviews customer accounts using various factors, including but not limited to the customer’s current financial condition, ability to pay and the volume and level of historical write-offs. Based on the Company’s review of these factors, management has provided allowances for doubtful accounts of $0, $6,722 and $6,722 as of June 30, 2023, December 31, 2022 and January 1, 2022, respectively. Intangible Assets The Company follows the provisions of FASB ASC 350, Goodwill and Other Intangible Assets The Company has determined its intangible assets to have a finite life of 12 years. Amortization expense for the three months ended June 30, 2023 and 2022 was $3,125 and $3,125, respectively and $6,250 and $6,250 for the six months ended June 30, 2023 and 2022, respectively. Revenue Recognition The Company follows Accounting Standards Update (ASU) 2014-09, 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, the Company recognized revenue of $0 for the three months ended June 30, 2022 and $695 for the six months ended June 30, 2022. The remaining performance obligations on these contracts as of June 30, 2022 was $0. There were no such contracts entered into in 2023, consequently, revenue for the three and six months ended June 30, 2023 was $0, nor were there any remaining performance obligations as of June 30, 2023. In the following table, revenues have been disaggregated for the periods indicated: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (unaudited) (unaudited) Revenues - domestic $ 5,500 $ 44,889 $ 5,500 $ 76,060 Revenues - foreign - - - - Total revenues $ 5,500 $ 44,889 $ 5,500 $ 76,060 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 for 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 includes costs related to the manufacture of the Company’s product EnerBurn. The primary costs included are raw materials that are mixed to produce the finished product that is then sold to customers and/or distributors. Other costs included are packaging and freight. Going Concern In accordance with ASC Subtopic 205-40, Going Concern The accompanying condensed 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 three months ended June 30, 2023 and 2022, the Company incurred recurring net losses of $325,605 and $268,421, respectively, and $648,057 and $565,661 during the six months ended June 30, 2023 and 2022, 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 condensed 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 the Company’s historical operating results and satisfying 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. Adoption of New Accounting Standard On January 1, 2023, the Company adopted ASU 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, The Company’s adoption of ASC 326 did not require prior-period adjustment, nor is there a material impact to current results. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2023 | |
PROPERTY AND EQUIPMENT | |
PROPERTY AND EQUIPMENT | NOTE 2 – PROPERTY AND EQUIPMENT Property and equipment consisted of the following: June 30, December 31, 2023 2022 (unaudited) Furniture and fixtures $ 30,909 $ 30,909 Equipment 244,638 244,638 275,547 275,547 Less: accumulated depreciation 269,306 269,274 Total property and equipment, net $ 6,241 $ 6,273 Depreciation expense for the three months ended June 30, 2023 and 2022 was $16 and $16, respectively, and $32 and $32 for the six months ended June 30, 2023 and 2022, respectively. |
LOSS PER COMMON SHARE
LOSS PER COMMON SHARE | 6 Months Ended |
Jun. 30, 2023 | |
LOSS PER COMMON SHARE | |
LOSS PER COMMON SHARE | NOTE 3 – 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: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (unaudited) (unaudited) Net loss $ (325,605 ) $ (268,421 ) $ (648,057 ) $ (565,661 ) Weighted average common shares outstanding: Basic and diluted 36,380,690 36,380,690 36,380,690 36,380,690 Basic and diluted loss per share $ (0.01 ) $ (0.01 ) $ (0.02 ) $ (0.02 ) For the three and six months ended June 30, 2023 and 2022, 4,940,000 stock warrants were excluded from diluted earnings per share because they are considered anti-dilutive. For the three and six months ended June 30, 2023 and 2022, 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 six months ended June 30, 2023 and 2022 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 DEFICIT
STOCKHOLDERS DEFICIT | 6 Months Ended |
Jun. 30, 2023 | |
STOCKHOLDERS DEFICIT | |
STOCKHOLDERS' DEFICIT | NOTE 4 – STOCKHOLDERS’ DEFICIT During the three and six months ended June 30, 2023 and 2022, no equity activity occurred. |
STOCK WARRANTS AND OPTIONS
STOCK WARRANTS AND OPTIONS | 6 Months Ended |
Jun. 30, 2023 | |
STOCK WARRANTS AND OPTIONS | |
STOCK WARRANTS AND OPTIONS | NOTE 5 – STOCK WARRANTS AND OPTIONS Stock Warrants No warrants were issued or exercised, nor were there any warrants that expired, during the three and six months ended June 30, 2023 and 2022. An unaudited summary of warrants outstanding and exercisable as of June 30, 2023 were: Weighted Average Exercisable Exercise Number of Remaining Number of Price Warrants Life in Years Warrants $ 0.60 3,340,000 3.5 3,340,000 $ 0.75 100,000 3.5 100,000 $ 0.30 1,500,000 3.5 1,500,000 4,940,000 4,940,000 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. No options were issued or exercised, nor were there any options that expired, during the three and six months ended June 30, 2023 and 2022. An unaudited summary of the activity of the Company’s stock options for the six months ended June 30, 2023 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, 2022 $ 0.32 1,235,070 $ - $ - Expired - - - Granted - - - Exercised - - - Forfeited - - - Balance as of June 30, 2023 $ 0.32 1,235,070 1.81 $ 0.09 $ - Vested and exercisable as of June 30, 2023 $ 0.32 1,235,070 1.81 $ 0.09 $ - |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2023 | |
INCOME TAXES | |
INCOME TAXES | NOTE 6 – 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. The Company has historically incurred net losses and therefore has no tax liability or tax expense. At June 30, 2023, the Company’s net deferred tax asset had a full valuation allowance against it. |
RELATED PARTY NOTES AND ADVANCE
RELATED PARTY NOTES AND ADVANCES | 6 Months Ended |
Jun. 30, 2023 | |
RELATED PARTY NOTES AND ADVANCES | |
RELATED PARTY NOTES AND ADVANCES | NOTE 7 – 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. During the six months ended June 30, 2023, a shareholder/director advanced $360,000 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 June 30, 2023 and December 31, 2022, 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 June 30, 2023, and December 31, 2022, the Company owed approximately $5.1 and $5.0 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 between the Company and BATL or between the Company and the Shareholder during the three and six months ended June 30, 2023 and 2022. During the three and six months ended June 30, 2023 and 2022, the Company had sales to related parties of $0 and $0, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and contingencies (Note 8) | |
COMMITMENTS AND CONTINGENCIES | NOTE 8 -- COMMITMENTS AND CONTINGENCIES 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 three months ended June 30, 2023 and 2022 totaled $14,416 and $14,283, respectively, and $28,700 and $28,567 for the six months ended June 30, 2023 and 2022, respectively. |
RECENTLY ISSUED ACCOUNTING PRON
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2023 | |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | NOTE 9 -- RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS 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 | 6 Months Ended |
Jun. 30, 2023 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 10 – SUBSEQUENT EVENTS There have been no material subsequent events after the close of the quarter ended June 30, 2023. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
BASIS OF PRESENTATION | |
Nature of Operations | EnerTeck Corporation, a Delaware corporation, and its wholly owned subsidiary, EnerTeck Chemical Corp. (“EnerTeck Sub”) (collectively referred to as the “Company”) are headquartered in Houston, Texas. The Company specializes in the sales, marketing and manufacture of a fuel borne catalytic engine treatment for diesel engines known as EnerBurn®. The use of EnerBurn in diesel engines improves fuel economy, lowers smoke, and decreases engine wear and the dangerous emissions of both Nitrogen Oxide (NOx) and microscopic airborne solid matter (particulates). Principal target markets have included the trucking, heavy construction, maritime shipping, railroad and mining industries, as well as federal, state and international government applications. Key uncertainties and risks to the Company include, but are not limited to, if and how quickly the EnerBurn technology is accepted by the market and the effects future technological changes and environmental regulatory requirements may have on the need for diesel fuel additives. |
Basis of Presentation | The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), and should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company’s Annual Report filed with the SEC on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the consolidated financial statements which would substantially duplicate the disclosure contained in the audited consolidated financial statements for fiscal 2022 as reported in the Form 10-K have been omitted. |
Use of Estimates | In preparing the accompanying interim unaudited condensed consolidated financial statements, management has made certain estimates and assumptions that affect reported amounts in the interim unaudited condensed consolidated financial statements and disclosures of contingencies. Actual results may differ from those estimates. |
Inventory | Inventory primarily consists of market ready EnerBurn plus raw materials required to manufacture the products. Inventory is valued at the lower of cost or net realizable value, using the average cost method. Finished product costs amounted to approximately $78,000 and $79,000 at June 30, 2023 and December 31, 2022, respectively, and includes required blending costs to bring the Company’s products to their finished state. |
Accounts Receivable | Account receivables represent uncollateralized obligations due from customers of the Company and are recorded at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts to reflect any loss anticipated on the accounts receivable balances and charged to the provision for doubtful accounts. The Company calculates this allowance based on historical write-offs, level of past due accounts and relationships with and economic status of the customers. Accounts are written off as bad debts when all collection efforts have failed, and the account is deemed uncollectible. Accounts receivable balances as of June 30, 2023, December 31, 2022 and January 1, 2022 are $2,750, $6,950 and $0, respectively. The Company incorporated the measurement of expected credit losses on accounts receivable under the new methodology using a forward-looking approach that incorporates lifetime expected credit losses based on historical information, current conditions, and reasonable and supportable forecasts. The Company reviews customer accounts using various factors, including but not limited to the customer’s current financial condition, ability to pay and the volume and level of historical write-offs. Based on the Company’s review of these factors, management has provided allowances for doubtful accounts of $0, $6,722 and $6,722 as of June 30, 2023, December 31, 2022 and January 1, 2022, respectively. |
Intangible Assets | The Company follows the provisions of FASB ASC 350, Goodwill and Other Intangible Assets The Company has determined its intangible assets to have a finite life of 12 years. Amortization expense for the three months ended June 30, 2023 and 2022 was $3,125 and $3,125, respectively and $6,250 and $6,250 for the six months ended June 30, 2023 and 2022, respectively. |
Revenue Recognition | The Company follows Accounting Standards Update (ASU) 2014-09, 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, the Company recognized revenue of $0 for the three months ended June 30, 2022 and $695 for the six months ended June 30, 2022. The remaining performance obligations on these contracts as of June 30, 2022 was $0. There were no such contracts entered into in 2023, consequently, revenue for the three and six months ended June 30, 2023 was $0, nor were there any remaining performance obligations as of June 30, 2023. In the following table, revenues have been disaggregated for the periods indicated: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (unaudited) (unaudited) Revenues - domestic $ 5,500 $ 44,889 $ 5,500 $ 76,060 Revenues - foreign - - - - Total revenues $ 5,500 $ 44,889 $ 5,500 $ 76,060 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 for 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 includes costs related to the manufacture of the Company’s product EnerBurn. The primary costs included are raw materials that are mixed to produce the finished product that is then sold to customers and/or distributors. Other costs included are packaging and freight. |
Going Concern | In accordance with ASC Subtopic 205-40, Going Concern The accompanying condensed 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 three months ended June 30, 2023 and 2022, the Company incurred recurring net losses of $325,605 and $268,421, respectively, and $648,057 and $565,661 during the six months ended June 30, 2023 and 2022, 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 condensed 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 the Company’s historical operating results and satisfying 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. |
Adoption of New Accounting Standard | On January 1, 2023, the Company adopted ASU 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, The Company’s adoption of ASC 326 did not require prior-period adjustment, nor is there a material impact to current results. |
BASIS OF PRESENTATION (Tables)
BASIS OF PRESENTATION (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
BASIS OF PRESENTATION | |
Schedule of revenue | Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (unaudited) (unaudited) Revenues - domestic $ 5,500 $ 44,889 $ 5,500 $ 76,060 Revenues - foreign - - - - Total revenues $ 5,500 $ 44,889 $ 5,500 $ 76,060 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
PROPERTY AND EQUIPMENT | |
Schedule of property and equipment | June 30, December 31, 2023 2022 (unaudited) Furniture and fixtures $ 30,909 $ 30,909 Equipment 244,638 244,638 275,547 275,547 Less: accumulated depreciation 269,306 269,274 Total property and equipment, net $ 6,241 $ 6,273 |
LOSS PER COMMON SHARE (Tables)
LOSS PER COMMON SHARE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
LOSS PER COMMON SHARE | |
Schedule of basic and diluted loss per share | Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (unaudited) (unaudited) Net loss $ (325,605 ) $ (268,421 ) $ (648,057 ) $ (565,661 ) Weighted average common shares outstanding: Basic and diluted 36,380,690 36,380,690 36,380,690 36,380,690 Basic and diluted loss per share $ (0.01 ) $ (0.01 ) $ (0.02 ) $ (0.02 ) |
STOCK WARRANTS AND OPTIONS (Tab
STOCK WARRANTS AND OPTIONS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 3.5 3,340,000 $ 0.75 100,000 3.5 100,000 $ 0.30 1,500,000 3.5 1,500,000 4,940,000 4,940,000 |
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, 2022 $ 0.32 1,235,070 $ - $ - Expired - - - Granted - - - Exercised - - - Forfeited - - - Balance as of June 30, 2023 $ 0.32 1,235,070 1.81 $ 0.09 $ - Vested and exercisable as of June 30, 2023 $ 0.32 1,235,070 1.81 $ 0.09 $ - |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue | $ 5,500 | $ 44,889 | $ 5,500 | $ 76,060 |
Domestic [Member] | ||||
Revenue | 5,500 | 44,889 | 5,500 | 76,060 |
Foreign [Member] | ||||
Revenue | $ 0 | $ 0 | $ 0 | $ 0 |
BASIS OF PRESENTATION (Details
BASIS OF PRESENTATION (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Jan. 01, 2022 | |
Inventory, finished product costs | $ 78,000 | $ 79,000 | ||||
Allowances for doubtful accounts | $ 0 | 0 | 6,722 | $ 6,722 | ||
Revenue recognized | 0 | $ 0 | 0 | $ 695 | ||
Account receivable | 2,750 | 2,750 | $ 6,950 | $ 0 | ||
Performance obligations | 0 | 0 | 0 | 0 | ||
Net loss | (325,605) | (268,421) | (648,057) | (565,661) | ||
Amortization expenses | $ 3,125 | $ 3,125 | $ 6,250 | $ 6,250 | ||
Intellectual Property [Member] | ||||||
Intangible assets, finite life | 12 years |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
PROPERTY AND EQUIPMENT | ||
Furniture and fixtures | $ 30,909 | $ 30,909 |
Equipment | 244,638 | 244,638 |
Property plant and equipment gross | 275,547 | 275,547 |
Less: accumulated depriciation | 269,306 | 269,274 |
Total property and equipment, net | $ 6,241 | $ 6,273 |
PROPERTY AND EQUIPMENT (Detai_2
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
PROPERTY AND EQUIPMENT | ||||
Depreciation expense | $ 16 | $ 16 | $ 32 | $ 32 |
LOSS PER COMMON SHARE (Details)
LOSS PER COMMON SHARE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
LOSS PER COMMON SHARE | ||||
Net loss | $ (325,605) | $ (268,421) | $ (648,057) | $ (565,661) |
Weighted average common shares outstanding: Basic and diluted | 36,380,690 | 36,380,690 | 36,380,690 | 36,380,690 |
Basic and diluted loss per share | $ (0.01) | $ (0.01) | $ (0.02) | $ (0.02) |
LOSS PER COMMON SHARE (Details
LOSS PER COMMON SHARE (Details Narrative) - shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2022 | |
Stock Options [Member] | ||
Antidilutive securities earnings per share amount | 1,235,070 | 1,235,070 |
Warrants [Member] | ||
Antidilutive securities earnings per share amount | 4,940,000 | 4,940,000 |
STOCK WARRANTS AND OPTIONS (Det
STOCK WARRANTS AND OPTIONS (Details) | 6 Months Ended |
Jun. 30, 2023 shares | |
Number of Warrants | 4,940,000 |
Exercisable Number of Warrants | 4,940,000 |
Exercise Price $0.60 [Member] | |
Number of Warrants | 3,340,000 |
Exercisable Number of Warrants | 3,340,000 |
Weighted Average Remaining Life in Years | 3 years 6 months |
Exercise Price $0.75 [Member] | |
Number of Warrants | 100,000 |
Exercisable Number of Warrants | 100,000 |
Weighted Average Remaining Life in Years | 3 years 6 months |
Exercise Price $0.30 [Member] | |
Number of Warrants | 1,500,000 |
Exercisable Number of Warrants | 1,500,000 |
Weighted Average Remaining Life in Years | 3 years 6 months |
STOCK WARRANTS AND OPTIONS (D_2
STOCK WARRANTS AND OPTIONS (Details 1) | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Weighted average exercise price | |
Outstanding at beginning | $ 0.32 |
Expired | 0 |
Granted | $ 0 |
Exercised | shares | 0 |
Forfeited | shares | 0 |
Outstanding at the end | $ 0.32 |
Vested and exercisable | $ 0.32 |
Number of optioned shares | |
Outstanding at beginning | shares | 1,235,070 |
Expired | shares | 0 |
Granted | shares | 0 |
Exercised | shares | 0 |
Forfeited | shares | 0 |
Outstanding at the end | shares | 1,235,070 |
Vested and exercisable | shares | 1,235,070 |
Weighted Average Remaining Contractual Term in Years | 1 year 9 months 21 days |
Weighted Average Remaining Contractual Term in Years vested and exercisable | 1 year 9 months 21 days |
Weighted average fair value grant date, Expired | $ 0 |
Weighted average fair value grant date, Exercised | 0 |
Weighted average fair value grant date, Forfeited | 0 |
Weighted average fair value grant date, Granted | 0 |
Outstanding at ending | 0.09 |
Weighted average Fair value of options vested and exercisable during the period | $ 0.09 |
STOCK WARRANTS AND OPTIONS (D_3
STOCK WARRANTS AND OPTIONS (Details Narrative) - 2003 Option Plan [Member] - shares | 3 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2003 | |
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 |
RELATED PARTY NOTES AND ADVAN_2
RELATED PARTY NOTES AND ADVANCES (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||
Dec. 11, 2013 | Dec. 10, 2010 | Jun. 01, 2010 | Oct. 20, 2011 | Jun. 20, 2011 | Jul. 20, 2010 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | 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 | 12% | ||||||||||||||||
Convertible promissory note | $ 100,000 | ||||||||||||||||
Sales to related party | $ 0 | $ 0 | $ 0 | $ 0 | |||||||||||||
Accrued compensation | 5,067,812 | 5,067,812 | $ 4,963,987 | ||||||||||||||
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 | Jul. 20, 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 | 360,000 | 620,000 | $ 435,000 | $ 625,000 | $ 570,000 | $ 445,000 | |||||||||||
Customer deposit | $ 37,500 | ||||||||||||||||
Chief Executive Officer And Other Employees [Member] | |||||||||||||||||
Accrued compensation | $ 5,100,000 | $ 5,100,000 | $ 5,000,000 | ||||||||||||||
BATL Trading, Inc [Member] | |||||||||||||||||
Shareholders ownership percentage | 100% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Commitments and contingencies (Note 8) | ||||
Rent expense | $ 14,416 | $ 28,567 | $ 28,700 | $ 14,283 |