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Sollensys (SOLS)

Cover

Cover - shares6 Months Ended
Jun. 30, 2021Aug. 16, 2021
Cover [Abstract]
Entity Registrant NameSollensys Corp
Entity Central Index Key0001519177
Document Type10-Q
Amendment Flagfalse
Current Fiscal Year End Date--12-31
Entity Small Businesstrue
Entity Shell Companyfalse
Entity Emerging Growth Companyfalse
Entity Current Reporting StatusYes
Document Period End DateJun. 30,
2021
Entity Filer CategoryNon-accelerated Filer
Document Fiscal Period FocusQ2
Document Fiscal Year Focus2021
Entity Common Stock Shares Outstanding99,831,199
Document Quarterly Reporttrue
Document Transition Reportfalse
Entity Interactive Data CurrentYes
Entity File Number333-174581
Entity Incorporation State Country CodeNV
Entity Tax Identification Number80-0651816
Entity Address Address Line 12475 Palm Bay Road NE
Entity Address Address Line 2Suite 120
Entity Address City Or TownPalm Bay
Entity Address Postal Zip Code32905
City Area Code866
Local Phone Number438-7657
Entity Address State Or ProvinceFL

Consolidated Balance Sheet

Consolidated Balance Sheet - USD ($)Jun. 30, 2021Dec. 31, 2020
Current assets:
Cash and cash equivalents $ 347,205 $ 129,624
Inventory54,000 54,000
Prepaid expenses48,549
Total current assets449,754 183,624
Fixed assets2,453,349 0
Total assets2,903,103 183,624
Current liabilities:
Accounts payable21,544 0
Accrued expenses338,024 46,134
Customer deposits - short term92,857 17,143
Mortgage payable -short term38,504 0
Total current liabilities490,929 63,277
Mortgage payable -long term2,461,496
Customer deposits-long term214,286 72,857
Total liabilities3,166,711 136,134
Commitments and contingencies0 0
Stockholders' Equity:
Preferred stock, Series A, $0.001 par value, 10,000,000 shares authorized, no shares issued and outstanding as of June 30, 2020 and December 31, 20190 0
Common stock, $0.001 par value, 300,000,000 shares authorized; 99,635,377 and 99,354,547 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively99,635 99,355
Additional paid-in capital4,486,870 3,390,213
Accumulated deficit(4,850,113)(3,442,078)
Total stockholders' equity(deficit)(263,608)47,490
Total liabilities and equity $ 2,903,103 $ 183,624

Consolidated Balance Sheet (Par

Consolidated Balance Sheet (Parenthetical) - $ / sharesJun. 30, 2021Dec. 31, 2020
Consolidated Balance Sheet
Preferred stock, par value $ 0.001 $ 0.001
Preferred stock, authorized10,000,000 10,000,000
Preferred stock, issued0 0
Preferred stock, outstanding0 0
Common stock, par value $ 0.001 $ 0.001
Common stock, authorized300,000,000 300,000,000
Common stock, issued99,635,377 99,354,547
Common stock, outstanding99,635,377 99,354,547

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)3 Months Ended6 Months Ended
Jun. 30, 2021Jun. 30, 2020Jun. 30, 2021Jun. 30, 2020
Consolidated Statements of Operations (Unaudited)
Revenue $ 38,214 $ 0 $ 109,643 $ 0
Cost of sales30,400 0 62,744 0
Gross profit7,815 0 46,899 0
Operating expenses:
General and administrative expense882,989 12,418 1,446,546 22,480
General and administrative expense-related party0 1,900,000 0 1,900,000
Total operating expenses882,989 1,912,418 1,446,546 1,922,480
Income loss from operations(875,175)(1,912,418)(1,399,647)(1,922,480)
Other income (expense)
Other income1,508 85,771 1,508 85,771
Interest expense9,896 9,896
Total other income (expense)(8,388)85,771 (8,388)85,771
Net loss $ (883,563) $ (1,826,647) $ (1,408,035) $ (1,836,709)
Basic and diluted loss per common share $ (0.01) $ (0.44) $ (0.01) $ (0.44)
Weighted-average number of common shares outstanding:
Basic and diluted99,469,218 4,183,962 99,422,334 4,183,962

Statements of Changes in Stockh

Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)TotalPreferred Stock Series ACommon StockAdditional Paid-In CapitalRetained Earnings (Accumulated Deficit)
Balance, shares at Dec. 31, 20194,183,962
Balance, amount at Dec. 31, 2019 $ (101,809) $ 0 $ 4,184 $ 497,891 $ (603,844)
Net loss(10,062)(10,062)
Balance, shares at Mar. 31, 20204,183,962
Balance, amount at Mar. 31, 2020(111,871)0 $ 4,184 497,891 (613,946)
Balance, shares at Dec. 31, 20194,183,962
Balance, amount at Dec. 31, 2019(101,809) $ 0 $ 4,184 497,891 (603,844)
Net loss(1,836,709)
Balance, shares at Jun. 30, 202019,000,000 4,183,962
Balance, amount at Jun. 30, 2020(38,518) $ 1,900,000 $ 4,184 497,891 (2,440,593)
Balance, shares at Mar. 31, 20204,183,962
Balance, amount at Mar. 31, 2020(111,871) $ 0 $ 4,184 497,891 (613,946)
Net loss(1,826,647)(1,826,647)
Issuance of shares to related party, shares19,000,000
Issuance of shares to related party, amount1,900,000 $ 1,900,000
Balance, shares at Jun. 30, 202019,000,000 4,183,962
Balance, amount at Jun. 30, 2020(38,518) $ 1,900,000 $ 4,184 497,891 (2,440,593)
Balance, shares at Dec. 31, 202099,354,547
Balance, amount at Dec. 31, 202047,490 $ 99,355 3,390,213 (3,442,078)
Net loss(524,472)(524,472)
Private placement of common shares, shares36,572
Private placement of common shares, amount111,501 $ 37 111,464
Balance, shares at Mar. 31, 202199,391,119
Balance, amount at Mar. 31, 2021(365,481)0 $ 99,392 3,501,677 (3,966,550)
Balance, shares at Dec. 31, 202099,354,547
Balance, amount at Dec. 31, 202047,490 $ 99,355 3,390,213 (3,442,078)
Net loss(1,408,035)
Balance, shares at Jun. 30, 202199,635,377
Balance, amount at Jun. 30, 2021(263,608)0 $ 99,635 4,486,870 (4,850,113)
Balance, shares at Mar. 31, 202199,391,119
Balance, amount at Mar. 31, 2021(365,481)0 $ 99,392 3,501,677 (3,966,550)
Net loss(883,563)(883,563)
Private placement of common shares, shares199,893
Private placement of common shares, amount751,076 $ 200 750,876
Stock based compensation, shares44,365
Stock based compensation, amount234,360 $ 44 234,316
Balance, shares at Jun. 30, 202199,635,377
Balance, amount at Jun. 30, 2021 $ (263,608) $ 0 $ 99,635 $ 4,486,870 $ (4,850,113)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)6 Months Ended
Jun. 30, 2021Jun. 30, 2020
Cash flows from operating activities of continuing operations:
Net loss $ (1,408,035) $ (1,836,709)
Stock-based compensation234,360
Stock based compensation -related party1,900,000
Gain on extinguishment of debt(85,771)
Changes in operating assets and liabilities
Prepaid expenses(48,549)
Accounts payable21,544
Accrued expenses291,891
Customer deposits217,142
Net cash used in operating activities(691,647)(22,480)
Cash flows from investing activities
Purchase of fixed assets(2,453,349)0
Net cash used in investing activities(2,454,349)0
Cash flows from financing activities:
Proceeds from sale of common stock862,577
Mortgage loan-fixed assets2,500,000
Related party loans0 22,480
Net cash provided by financing activities3,362,577 22,480
Net increase in cash and cash equivalents217,581 0
Cash and cash equivalents at beginning of period129,624 0
Cash and cash equivalents at end of period347,205 0
Supplemental disclosure of cash flow information:
Cash paid for interest9,896 0
Cash paid for income taxes $ 0 $ 0

ORGANIZATION AND DESCRIPTION OF

ORGANIZATION AND DESCRIPTION OF BUSINESS6 Months Ended
Jun. 30, 2021
ORGANIZATION AND DESCRIPTION OF BUSINESS
Note -1 ORGANIZATION AND DESCRIPTION OF BUSINESSNOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS Sollensys Corp (“Sollensys” or the “Company”) was formerly a development stage company, incorporated in Nevada on September 29, 2010, under the name Health Directory, Inc. On November 30, 2020, Sollensys entered into a share exchange agreement (the “Share Exchange Agreement”) with (i) Eagle Lake Laboratories, Inc., a Florida corporation (“Eagle Lake”), (ii) each of the shareholders of Eagle Lake (the “Eagle Lake Shareholders”), and (iii) Donald Beavers as the representative of the Eagle Lake Shareholders. Among other conditions to the closing of the transactions contemplated by the Share Exchange Agreement (the “Closin g Eagle Lake is a Florida-based science, technology, and engineering solutions corporation offering products that ensure their clients' data integrity through the collection, storage, and transmission. The Company expects to generate revenue with Eagle’s innovative flagship product, the Blockchain Archive Server™ that can be utilized to protect client data from ransomware. Blockchain technology is a leading-edge tool for data security, providing an added layer of security against data loss due to malware. On December 29, 2020, the Company’s Board approved the change in the Company’s fiscal year-end from March 31 to December 31. Common Control Accounting Treatment Sollensys Corp and Eagle Lake were under the common control of the CEO before and after the date of transfer. As a result, the Company adopted the guidance in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 805-50-05-5 for the transfer of net assets between entities under common control to apply a method similar to the pooling-of-interests-method. Under the method, the financial statements of the Company shall report results of operations for the period in which the transfer occurs as though the transfer of the net assets had occurred at the beginning of the period. Results of operations for the period will thus comprise both those of the previously separate entities combined from the beginning of the period to the date the transfer is completed and those of the combined operations from that date to the end of the period. Similarly, the Company shall present the statements of financial position and other financial information presented as of the beginning of the period as though the assets and liabilities had been transferred at that date. Financial statements and financial information presented for prior years also shall be retrospectively adjusted to furnish comparative information. Reverse Stock Split On October 14, 2020, the Company filed with the Secretary of State of Nevada a Certificate of Amendment to its Articles of Incorporation (the “Amendment”) to effect a 1-for-120 reverse stock split (the “Reverse Split”) of the Company’s issued and outstanding common stock. Pursuant to the Amendment, effective as of October 30, 2020, every 120 shares of the issued and outstanding common stock will be converted into one share of common stock, without any change in the par value per share. The Reverse Split became effective on November 2, 2020. Following the effectiveness of the Reverse Split, on November 2, 2020, the number of authorized shares of common stock was reduced from 12,000,000,000 shares to 300,000,000. Additionally, following the Reverse Split, Eagle Lake’s 11,400,000,000 common shares were adjusted to 95,000,000 shares and they continued to maintain 95.8% of the total of 99,193,962 common shares outstanding. No fractional shares of common stock were issued in connection with the Reverse Split. If, as a result of the Reverse Split, a shareholder would otherwise hold a fractional share, the shareholder received, instead of the issuance of such fractional share, one whole share of common stock. As a result, 143,585 additional shares were issued due to the rounding up fractional shares.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES6 Months Ended
Jun. 30, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Note -2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESNOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with the FASB’s ASC, which is the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United States. The unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Eagle Lake. All intercompany accounts and transactions are eliminated in consolidation. Going Concern The accompanying unaudited consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve months following the date of these unaudited consolidated financial statements. The Company has incurred significant operating losses since its inception. As of June 30, 2021, the Company had a working capital deficit of $41,175 and an accumulated deficit of $4,850,113. The Company expect to generate operating cash flow that will be sufficient to fund presently anticipated operations although there can be no assurance. This raises substantial doubt about the Company’s ability to continue as a going concern. Therefore, the Company will need to raise additional funds and is currently exploring alternative sources of financing to supplement expected cash flow. Historically, the Company has raised capital through private placements, as an interim measure to finance working capital needs and may continue to raise additional capital through the sale of common stock or other securities and obtaining some short-term loans. The Company will be required to continue to do so until its operations become profitable. The Company may attempt to raise capital in the near future through the sale of equity or debt financing; however, there can be assurances the Company will be successful in doing so. There can be no assurance that such additional financing will be available to the Company on acceptable terms or at all. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of expenses during the reporting period. The most significant estimates relate to income taxes and contingencies. The Company bases its estimates on historical experience, known or expected trends, and various other assumptions that are believed to be reasonable given the quality of information available as of the date of these consolidated financial statements. The results of these assumptions provide the basis for making estimates about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results could differ from these estimates. Management’s Representation of Interim Financial Statements The accompanying unaudited consolidated financial statements have been prepared by the Company without audit pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The Company uses the same accounting policies in preparing quarterly and annual financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted as allowed by such rules and regulations, and management believes that the disclosures are adequate to make the information presented not misleading. These unaudited consolidated financial statements include all of the adjustments, which in the opinion of management are necessary to a fair presentation of financial position and results of operations. All such adjustments are of a normal and recurring nature. Interim results are not necessarily indicative of results for a full year. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto on December 31, 2020, as presented in the Company’s Annual Report on Form 10-KT filed on March 31, 2021, with the SEC. Revenue Recognition Revenues are accounted for in accordance with the FASB’s Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606). The amount of revenue recognized reflects the consideration which the Company expects to be entitled to receive in exchange for the products and/or services. To achieve this principle, the Company applies the following five steps: 1. Identify the contract with the customer; 2. Identify the performance obligations in the contract; 3. Determine the transaction price; 4. Allocate the transaction price to performance obligations in the contract, and 5. Recognize revenue when or as the Company satisfies a performance obligation. The Company recognizes revenue when the control of the products is transferred to the Company’s customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for these products. Control is generally transferred when products are delivered. The Company’s revenue contracts generally represent a single performance obligation to sell its products to customers. Additionally, the Company recognizes revenue when a service is completed thereby completing a performance obligation. Customer Deposits Under the terms of the Company’s regional service center contracts, the Company requires a substantial deposit in advance of the support work required to be performed by the Company. All deposits that have not been deemed earned by the Company following the guidelines of ASC 606 are considered to be liabilities on the Company’s balance sheet. As of June 30, 2021, the current balance of deposits was $92,857 and the long-term balance was $214,286, compared to $17,143 and $72,857, for the period ended December 31, 2020, respectively. Cash and cash equivalents The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. On June 30, 2021 and December 31, 2020, the Company’s cash equivalents totaled $347,205 and $129,624, respectively. Stock-based Compensation The Company accounts for stock-based compensation using the fair value method following the guidance outlined in Section 718-10 of the FASB ASC for disclosure about stock-based compensation. This section requires a public entity to measure the cost of employee and non-employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which service is provided. No compensation cost is recognized for equity instruments for which service is not provided or rendered. Related party transactions The Company follows ASC 850, Related Party Disclosures Net Loss per Share Net loss per common share is computed by dividing net loss by the weighted average common shares outstanding during the period as defined by ASC Topic 260, “Earnings per Share.” Basic earnings per common share calculations are determined by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations are determined by dividing net income (loss) by the weighted average number of common shares and dilutive common share equivalents outstanding. As of June 30, 2021, there were no common stock equivalents.

ACCRUED EXPENSES

ACCRUED EXPENSES6 Months Ended
Jun. 30, 2021
ACCRUED EXPENSES
Note -3 ACCRUED EXPENSESNOTE 3 – ACCRUED EXPENSES As of June 30, 2021, and December 31, 2020, the balances of accrued expenses were $338,024 and $46,134 respectively. The accrued expenses as of June 30, 2021, were comprised of $38,761 in credit card payables, $158,714 in liabilities associated with maintaining the Company’s servers, $62,345 in liabilities related to the Company’s purchase of a new building and $78,204 in miscellaneous liabilities.

FIXED ASSETS

FIXED ASSETS6 Months Ended
Jun. 30, 2021
Note - 4 FIXED ASSETSNOTE 4 – FIXED ASSETS As of June 30, 2021 and December 31, 2020 fixed assets amounted to $2,453,349 and $-0-, respectively. At June 30, 2021 fixed were comprised of the following: Land and building $ 2,430,782 Furniture and fixtures 8,873 Security deposits 13,694 Total $ 2,453,349 On June 8, 2021, the Company acquired a building in Palm Bay, Florida with approximately 36,810 square feet of office space for $2,430,762 excluding closing costs. Since the building has not yet been occupied, no depreciation has been recorded for the period ended June 30, 2021. The Company purchased the building by entering into a $2,500,000 mortgage. After closing costs and adjustments, the Company received $46,651 in cash at closing. The terms of the mortgage call for monthly interest only payments of approximately $10,000 each through December 2021 at an interest rate of 4.75%. Effective January 8, 2022, monthly mortgage payments of principal and interest of $16,250 each, at an interest rate of 4.75% per annum, with a maturity date of December 8, 2024 and a balloon payment due of approximately $2,270,000. The mortgage is secured by the underlying real estate all equipment and fixtures owned or subsequently acquired, and 500,000 shares of the Company’s common pledged by the Company’s CEO, as well his personal guarantee for the full amount of the mortgage. The 42 month principal payment schedule on the 42 month loan is as follows: 2021 $ -0- 2022 77,931 2023 81,716 2024 2,340,353 Total $ 2,500,000 As of June 30, 2021, the balance of the short-term mortgage payable was $38,504 and the long-term portion was $2,461,496.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY6 Months Ended
Jun. 30, 2021
Stockholders' Equity:
Note -5 STOCKHOLDERS' EQUITYNOTE 5 – STOCKHOLDERS’ EQUITY Series A Preferred Stock On March 21, 2020, the Company filed a Certificate of Designation to authorize 25,000,000 shares of Series A preferred stock, par value $0.001 per share. Among other rights, the holders of Series A preferred stock have the right to convert each share of Series A preferred stock into 50 shares of common stock. On April 1, 2020, the Company issued 19,000,000 shares of Series A preferred stock to the Company’s then-Chief Executive Officer, David Lazar. The fair value of the issuance was estimated at $1,900,000 and recorded as stock-based compensation. Common Stock The Company has authorized 300,000,000 shares of common stock, $0.001 par value per share. As of June 30, 2021 and December 31, 2020, respectively, there were 99,635,377 and 99,327,547 shares of common stock issued and outstanding. During the six months ended June 30, 2021, the Company raised $862,577 from sale of 236,465 shares to investors. Additionally, during the six months ended June 30, 2021, the Company issued an aggregate of 44,365 shares of common stock, valued at $234,360, pursuant to the Sollensys Corp 2021 Equity Incentive Plan to numerous consultants. On June 30, 2021, and December 31, 2020, there were 10,000,000 shares of Series A preferred stock authorized, with -0- shares issued and outstanding at both periods, respectively.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS6 Months Ended
Jun. 30, 2021
SUBSEQUENT EVENTS
Note -6 SUBSEQUENT EVENTSNOTE 6 – SUBSEQUENT EVENTS In accordance with ASC 855-10, management has performed an evaluation of subsequent events from June 30, 2021 through the date the financial statements were available to be issued and noted no subsequent events requiring disclosure except as follows: The Company sold an aggregate of 195,822 shares of common stock to 8 investors and raised $685,377 in proceeds.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)6 Months Ended
Jun. 30, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of PresentationThe accompanying unaudited consolidated financial statements have been prepared in accordance with the FASB’s ASC, which is the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United States. The unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Eagle Lake. All intercompany accounts and transactions are eliminated in consolidation.
Going ConcernThe accompanying unaudited consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve months following the date of these unaudited consolidated financial statements. The Company has incurred significant operating losses since its inception. As of June 30, 2021, the Company had a working capital deficit of $41,175 and an accumulated deficit of $4,850,113. The Company expect to generate operating cash flow that will be sufficient to fund presently anticipated operations although there can be no assurance. This raises substantial doubt about the Company’s ability to continue as a going concern. Therefore, the Company will need to raise additional funds and is currently exploring alternative sources of financing to supplement expected cash flow. Historically, the Company has raised capital through private placements, as an interim measure to finance working capital needs and may continue to raise additional capital through the sale of common stock or other securities and obtaining some short-term loans. The Company will be required to continue to do so until its operations become profitable. The Company may attempt to raise capital in the near future through the sale of equity or debt financing; however, there can be assurances the Company will be successful in doing so. There can be no assurance that such additional financing will be available to the Company on acceptable terms or at all.
Use of EstimatesThe preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of expenses during the reporting period. The most significant estimates relate to income taxes and contingencies. The Company bases its estimates on historical experience, known or expected trends, and various other assumptions that are believed to be reasonable given the quality of information available as of the date of these consolidated financial statements. The results of these assumptions provide the basis for making estimates about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results could differ from these estimates.
Management's Representation of Interim Financial StatementsThe accompanying unaudited consolidated financial statements have been prepared by the Company without audit pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The Company uses the same accounting policies in preparing quarterly and annual financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted as allowed by such rules and regulations, and management believes that the disclosures are adequate to make the information presented not misleading. These unaudited consolidated financial statements include all of the adjustments, which in the opinion of management are necessary to a fair presentation of financial position and results of operations. All such adjustments are of a normal and recurring nature. Interim results are not necessarily indicative of results for a full year. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto on December 31, 2020, as presented in the Company’s Annual Report on Form 10-KT filed on March 31, 2021, with the SEC.
Revenue RecognitionRevenues are accounted for in accordance with the FASB’s Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606). The amount of revenue recognized reflects the consideration which the Company expects to be entitled to receive in exchange for the products and/or services. To achieve this principle, the Company applies the following five steps: 1. Identify the contract with the customer; 2. Identify the performance obligations in the contract; 3. Determine the transaction price; 4. Allocate the transaction price to performance obligations in the contract, and 5. Recognize revenue when or as the Company satisfies a performance obligation. The Company recognizes revenue when the control of the products is transferred to the Company’s customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for these products. Control is generally transferred when products are delivered. The Company’s revenue contracts generally represent a single performance obligation to sell its products to customers. Additionally, the Company recognizes revenue when a service is completed thereby completing a performance obligation.
Customer DepositsUnder the terms of the Company’s regional service center contracts, the Company requires a substantial deposit in advance of the support work required to be performed by the Company. All deposits that have not been deemed earned by the Company following the guidelines of ASC 606 are considered to be liabilities on the Company’s balance sheet. As of June 30, 2021, the current balance of deposits was $92,857 and the long-term balance was $214,286, compared to $17,143 and $72,857, for the period ended December 31, 2020, respectively.
Cash and Cash EquivalentsThe Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. On June 30, 2021 and December 31, 2020, the Company’s cash equivalents totaled $347,205 and $129,624, respectively.
Stock-based CompensationThe Company accounts for stock-based compensation using the fair value method following the guidance outlined in Section 718-10 of the FASB ASC for disclosure about stock-based compensation. This section requires a public entity to measure the cost of employee and non-employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which service is provided. No compensation cost is recognized for equity instruments for which service is not provided or rendered.
Related Party TransactionsThe Company follows ASC 850, Related Party Disclosures
Net Loss per ShareNet loss per common share is computed by dividing net loss by the weighted average common shares outstanding during the period as defined by ASC Topic 260, “Earnings per Share.” Basic earnings per common share calculations are determined by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations are determined by dividing net income (loss) by the weighted average number of common shares and dilutive common share equivalents outstanding. As of June 30, 2021, there were no common stock equivalents.

FIXED ASSETS (Tables)

FIXED ASSETS (Tables)6 Months Ended
Jun. 30, 2021
FIXED ASSETS (Tables)
Schedule of fixed assetsLand and building $ 2,430,782 Furniture and fixtures 8,873 Security deposits 13,694 Total $ 2,453,349
Schedule of principal payment2021 $ -0- 2022 77,931 2023 81,716 2024 2,340,353 Total $ 2,500,000

ORGANIZATION AND DESCRIPTION _2

ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Narrative) - $ / sharesOct. 14, 2020Nov. 30, 2020Jun. 30, 2021Dec. 31, 2020
Stockholders' Equity, Reverse Stock Split1-for-120 reverse stock split
Additional shares issued143,585
Common stock, outstanding99,635,377 99,354,547
Common stock, authorized300,000,000 300,000,000
Common stock, par value $ 0.001 $ 0.001
Share Exchange Agreement [Member] | Eagle Lake Laboratories [Member]
Minority interest100.00%
Common stock, par value $ 0.001
Reverse Stock Split [Member]
Minority interest95.80%
Adjusted reverse stock split shares95,000,000
Common stock, outstanding99,193,962
Common stock, authorized300,000,000

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)Jun. 30, 2021Dec. 31, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Working capital deficit $ (41,175)
Accumulated deficit(4,850,113) $ (3,442,078)
Customer deposits - short term92,857 17,143
Customer deposits - long term214,286 72,857
Cash equivalents $ 347,205 $ 129,624

ACCRUED EXPENSES (Details Narra

ACCRUED EXPENSES (Details Narrative) - USD ($)Jun. 30, 2021Dec. 31, 2020
ACCRUED EXPENSES
Accrued expenses $ 338,024 $ 46,134
Credit card payables38,761
Accrued liabilities maintaining servers158,714
Purchase of new building62,345
Miscellaneous liabilities $ 78,204

FIXED ASSETS (Details)

FIXED ASSETS (Details) - USD ($)Jun. 30, 2021Dec. 31, 2020
Total $ 2,453,349 $ 2,453,349
Land and building
Total2,430,782 2,430,762
Furniture and fixtures
Total8,873 8,873
Security deposits
Total $ 13,694 $ 13,694

FIXED ASSETS (Details 1)

FIXED ASSETS (Details 1)Jun. 30, 2021USD ($)
Annual Principal Payment of mortgage $ 2,500,000
2022 [Member]
Annual Principal Payment of mortgage77,931
2021 [Member]
Annual Principal Payment of mortgage0
2023 [Member]
Annual Principal Payment of mortgage81,716
2024 [Member]
Annual Principal Payment of mortgage $ 2,340,353

FIXED ASSETS (Details Narrative

FIXED ASSETS (Details Narrative)Jun. 08, 2021USD ($)ft²Jun. 30, 2021USD ($)sharesDec. 30, 2020USD ($)Dec. 31, 2020USD ($)
FIXED ASSETS (Details Narrative)
Area of land acuired | ft²36,810
Assets acquired $ 2,430,762
Amortization of fixed assets $ 2,453,349 $ 0
Purchased building by mortgage2,500,000
Received cash at closing46,651
Mortgage call monthly interest payments $ 10,000
Interest rate4.75%
Maturity dateJan. 8,
2022
Balloon payment due $ 2,270,000
Monthly mortgage principal payments16,250
Monthly mortgage interest payments $ 16,250
Shares pledged by CEO | shares500,000
Short-term mortgage payable $ 38,504
Long term mortgage payable $ 2,461,496
Land $ 0

STOCKHOLDERS EQUITY (Details Na

STOCKHOLDERS EQUITY (Details Narrative) - USD ($)1 Months Ended6 Months Ended
Mar. 21, 2021Jun. 30, 2021Dec. 31, 2020Apr. 01, 2020
Common stock, par value $ 0.001 $ 0.001
Common stock, authorized300,000,000 300,000,000
Common stock, issued99,635,377 99,354,547
Common stock, outstanding99,635,377 99,354,547
Stock issued, shares44,365
Stock issued, value $ 234,360
Preferred stock, par value $ 0.001 $ 0.001
Preferred stock, authorized10,000,000 10,000,000
Preferred stock, issued0 0
Preferred stock, outstanding0 0
Investor [Member]
Proceeds from sale of stock $ 862,577
Number of stock sold236,465
Series A Preferred Stock [Member]
Preferred stock, par value $ 0.001 $ 0.001
Preferred stock, authorized25,000,000 10,000,000 10,000,000
Preferred stock, issued0 0
Conversion of right Series A preferred stock descriptionThe holders of Series A preferred stock have the right to convert each share of Series A preferred stock into 50 shares of common stock
Preferred stock, outstanding0 0
Stock-based compensation $ 1,900,000
Series A Preferred Stock [Member] | Chief Executive Officer [Member]
Preferred stock, issued19,000,000

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - Investor [Member]6 Months Ended
Jun. 30, 2021USD ($)shares
Number of investor8
Proceeds from sale of stock | $ $ 685,377
Number of stock sold | shares195,822