Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Document Information Line Items | ||
Entity Registrant Name | U.S. Lighting Group, Inc. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 97,617,735 | |
Amendment Flag | false | |
Entity Central Index Key | 0001536394 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity File Number | 000-55689 | |
Entity Incorporation, State or Country Code | FL | |
Entity Interactive Data Current | No |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 109,000 | $ 108,000 |
Accounts receivable | 160,000 | 541,000 |
Accounts receivable, related party | 30,000 | |
Inventories, net | 245,000 | 212,000 |
Prepaid expenses and other current assets | 63,000 | 17,000 |
Total Current Assets | 577,000 | 908,000 |
Property and equipment, net | 1,514,000 | 1,419,000 |
Total Assets | 2,091,000 | 2,327,000 |
Current Liabilities | ||
Accounts payable | 312,000 | 363,000 |
Accrued expenses | 75,000 | 75,000 |
Accrued payroll to an officer | 481,000 | 442,000 |
Customer advance payments | 84,000 | 29,000 |
Line of credit | 35,000 | 49,000 |
Convertible notes payable | 57,000 | 55,000 |
Loans payable, current portion, net of discount of $3,000 and $8,000, respectively | 159,000 | 163,000 |
Loans payable, related party – current portion | 2,265,000 | 2,619,000 |
Total Current Liabilities | 3,468,000 | 3,795,000 |
Loans payable, net of current portion | 485,000 | 396,000 |
Total Liabilities | 3,953,000 | 4,191,000 |
Commitments and Contingencies | ||
Shareholders’ Deficit | ||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized; no shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively | ||
Common stock, $0.0001 par value, 100,000,000 shares authorized; 96,975,735 and 95,970,735 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively | 10,000 | 10,000 |
Additional paid-in-capital | 17,585,000 | 17,435,000 |
Accumulated deficit | (19,457,000) | (19,309,000) |
Total Shareholders’ Deficit | (1,862,000) | (1,864,000) |
TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT | $ 2,091,000 | $ 2,327,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Loans payable current portion, net of discount (in Dollars) | $ 3,000 | $ 8,000 |
Preferred stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 96,975,735 | 95,970,735 |
Common stock, shares outstanding | 96,975,735 | 95,970,735 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Sales | $ 944,000 | $ 756,000 |
Cost of goods sold | 406,000 | 226,000 |
Gross profit | 538,000 | 530,000 |
Operating expenses | ||
Selling, general and administrative expenses | 562,000 | 521,000 |
Product development costs | 84,000 | 95,000 |
Total operating expenses | 646,000 | 616,000 |
Loss from operations | (108,000) | (86,000) |
Other income (expense) | ||
Lease income, related party | 15,000 | |
Gain on extinguishment of debt, related party | 9,000 | |
Interest expense, related party | (35,000) | (33,000) |
Interest expense | (29,000) | (10,000) |
Total other expense | (40,000) | (43,000) |
Net Loss | $ (148,000) | $ (129,000) |
BASIC INCOME (LOSS) PER SHARE (in Dollars per share) | $ 0 | $ 0 |
DILUTED INCOME (LOSS) PER SHARE (in Dollars per share) | $ 0 | $ 0 |
WEIGHTED – AVERAGE COMMON SHARES OUTSTANDING BASIC AND DILUTED (in Shares) | 96,454,679 | 90,431,970 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Shareholders’ Deficit (Unaudited) - USD ($) | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Balance at Dec. 31, 2019 | $ 9,000 | $ 16,447,000 | $ (19,794,000) | $ (3,338,000) | |
Balance (in Shares) at Dec. 31, 2019 | 90,347,526 | ||||
Net proceeds from sale of common stock | $ 1,000 | 49,000 | 50,000 | ||
Net proceeds from sale of common stock (in Shares) | 200,000 | ||||
Net Loss | (129,000) | (129,000) | |||
Balance at Mar. 31, 2020 | $ 10,000 | 16,496,000 | (19,923,000) | (3,417,000) | |
Balance (in Shares) at Mar. 31, 2020 | 90,547,526 | ||||
Balance at Dec. 31, 2020 | $ 10,000 | 17,435,000 | (19,309,000) | (1,864,000) | |
Balance (in Shares) at Dec. 31, 2020 | 95,970,735 | ||||
Net proceeds from sale of common stock | 150,000 | 150,000 | |||
Net proceeds from sale of common stock (in Shares) | 1,005,000 | ||||
Net Loss | (148,000) | (148,000) | |||
Balance at Mar. 31, 2021 | $ 10,000 | $ 17,585,000 | $ (19,457,000) | $ (1,862,000) | |
Balance (in Shares) at Mar. 31, 2021 | 96,975,735 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash Flows from Operating Activities | ||
Net Loss | $ (148,000) | $ (129,000) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation | 46,000 | 13,000 |
Amortization of right of use asset | 13,000 | |
Amortization of debt discount | 5,000 | 6,000 |
Gain on extinguishment of debt | (9,000) | |
Provision for inventory reserves | (1,000) | |
Accrued interest on loans | 2,000 | 3,000 |
Accrued interest on related party loans | 36,000 | 33,000 |
(Increase) Decrease in: | ||
Accounts receivable | 381,000 | 12,000 |
Inventories | (33,000) | (20,000) |
Prepaid expenses and other | (46,000) | (41,000) |
(Decrease) Increase in: | ||
Accounts payable | (51,000) | 25,000 |
Accrued expenses | (14,000) | |
Accrued payroll to an officer | 39,000 | 13,000 |
Change in lease liability | (10,000) | |
Customer advanced payments | 55,000 | 40,000 |
Net cash provided by (used in) operating activities | 277,000 | (57,000) |
Cash Flows from Investing Activities | ||
Purchase of property and equipment | (141,000) | (2,000) |
Net cash used in investing activities | (141,000) | (2,000) |
Cash Flows from Financing Activities | ||
Proceeds from sale of common stock | 150,000 | 50,000 |
Proceeds from secured convertible note payable | 88,000 | |
Proceeds from loans payable | 125,000 | 150,000 |
Payment of loans payable | (45,000) | (71,000) |
Payments of line of credit | (14,000) | |
Payment of finance lease | (4,000) | |
Proceeds from notes payable related party | 40,000 | |
Payments on notes payable related party | (351,000) | (94,000) |
Net cash provided by (used in) financing activities | (135,000) | 159,000 |
Net increase in cash and cash equivalents | 1,000 | 100,000 |
Cash and cash equivalents beginning of period | 108,000 | 107,000 |
Cash and cash equivalents end of period | 109,000 | 207,000 |
Supplemental Cash Flow Information | ||
Interest paid | 16,000 | 5,000 |
Taxes paid | ||
Non-cash Financing Activities | ||
Offset accounts receivable, related party with notes payable, related party | $ 30,000 |
Basis of Presentation and Liqui
Basis of Presentation and Liquidity | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND LIQUIDITY | NOTE 1 – BASIS OF PRESENTATION AND LIQUIDITY The accompanying interim condensed financial statements of the Company are unaudited, but in the opinion of management contain all adjustments, including normal recurring adjustments, necessary to present fairly our financial position at March 31, 2021, the results of operations for the three months ended March 31, 2021 and 2020, and cash flows for the three months ended March 31, 2021 and 2020. The balance sheet as of December 31, 2020 is derived from the Company’s audited financial statements. Certain information and footnote disclosures normally included in financial statements that have been prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. We believe that the disclosures contained in these condensed financial statements are adequate to make the information presented herein not misleading. For further information, refer to the financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, as filed with the Securities and Exchange Commission on March 24, 2021. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2021. COVID-19 Considerations Through the date these financial statements were issued, the COVID-19 pandemic did not have a net material impact on our operating results. In the future, the pandemic may cause reduced demand for our products if, for example, the pandemic results in a recessionary economic environment, which negatively effects the consumers who purchase our products. Our ability to operate without significant negative operational impact from the COVID-19 pandemic will in part depend on our ability to protect our employees and our supply chain. The Company has endeavored to follow the recommended actions of government and health authorities to protect our employees. Through the date that these financial statements were issued, we maintained the consistency of our operations during the onset of the COVID-19 pandemic. However, the uncertainty resulting from the pandemic could result in an unforeseen disruption to our workforce and supply chain (for example an inability of a key supplier or transportation supplier to source and transport materials) that could negatively impact our operations. Through the date that these financial statements were issued, the COVID-19 pandemic has not negatively impacted the Company’s liquidity position as of such date, and the Company continues to generate cash flows to meet its short-term liquidity needs, and it expects to maintain access to the capital markets. The Company has not observed any material impairments of its assets or a significant change in the fair value of its assets due to the COVID-19 pandemic. Liquidity The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. During the three months ended March 31, 2021, the Company realized a net loss of $148,000, and cash provided by operating activities was $277,000, compared to cash used in operating activities of $57,000 in the prior year period. Based on current projections, we believe our available cash on-hand, our current efforts to market and sell our products, and our ability to significantly reduce expenses, will provide sufficient cash resources to satisfy our operational needs, for at least one year from the date these financial statements are issued. At March 31, 2021, the Company had cash on hand in the amount of $109,000. Management estimates that the current funds on hand will be sufficient to continue operations through June 30, 2021. No assurance can be given that any future financing will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company can obtain additional financing, it may contain undue restrictions on our operations in the case of debt financing, or cause substantial dilution for our stockholders, in the case or equity financing. In conjunction with the Company’s capital raising efforts, management is working to improve its cash flows by increasing its private label manufacturing opportunities for high volume and low overhead production orders, and managing its operating expenses to support planned revenue growth. However, no assurance can be given that these efforts will be successful. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary Intellitronix Corp. On January 11, 2021, the Company created a new subsidiary called Cortes Campers, LLC, domiciled in Wyoming. Cortes Campers, LLC was created to market tow behind travel trailers for the recreational vehicle market and has had no sales as of the date of this report. Cortes Campers, LLC is 99% owned by the Company and 1% owned by Paul Spivak, the Company’s CEO. Intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the U.S requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the financial statement date, and reported amounts of revenue and expenses during the reporting period. Significant estimates are used in valuing our allowances for doubtful accounts, reserves for inventory obsolescence, valuing derivative liabilities, valuing equity instruments issued for services, and valuation allowance for deferred tax assets, among others. Actual results could differ from these estimates. Segment Reporting The Company operates in one segment for the manufacture and distribution of our products. In accordance with the “Segment Reporting” Topic of the ASC, the Company’s chief operating decision maker has been identified as the Chief Executive Officer and President, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Existing guidance, which is based on a management approach to segment reporting, establishes requirements to report selected segment information quarterly and to report annually entity-wide disclosures about products and services, major customers, and the countries in which the entity holds material assets and reports revenue. All material operating units qualify for aggregation under “Segment Reporting” due to their similar customer base and similarities in: economic characteristics; nature of products and services; and procurement, manufacturing and distribution processes. Since the Company operates in one segment, all financial information required by “Segment Reporting” can be found in the accompanying consolidated financial statements. Loss per Share Calculations Basic earnings per share are computed by dividing net income (loss) available to common shareholders by the weighted-average number of common shares available. Diluted earnings per share is computed by dividing the net income applicable to common shareholders by the weighted average number of common shares outstanding plus the number of additional common shares that would have been outstanding if all dilutive potential common shares had been issued using the treasury stock method. Potential common shares are excluded from the computation when their effect is antidilutive. The dilutive effect of potentially dilutive securities is reflected in diluted net income per share if the exercise prices were lower than the average fair market value of common shares during the reporting period. Warrants to acquire 20,000 shares of common stock, and 226,356 shares of common stock issuable under convertible note agreements, have been excluded from the calculation of weighted average common shares outstanding at March 31, 2021, as their effect would have been anti-dilutive. Warrants to acquire 4,104,000 shares of common stock have been excluded from the calculation of weighted average common shares outstanding at March 31, 2020, as their effect would have been anti-dilutive. Revenue Recognition The Company recognizes revenue in accordance with Accounting Standard Update (“ASU”) No. 2014-09. This standard provides authoritative guidance clarifying the principles for recognizing revenue and developing a common revenue standard for U.S. generally accepted accounting principles. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in the exchange for those goods or services. Under this guidance, revenue is recognized when control of promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company reviews its sales transactions to identify contractual rights, performance obligations, and transaction prices, including the allocation of prices to separate performance obligations, if applicable. Revenue and costs of sales are recognized once products are delivered to the customer’s control and performance obligations are satisfied. In the following table, revenue is disaggregated by major product line for the three months ended March 31, 2021: Sales Channels LED digital gauges and automotive electronics and accessories LED lighting tubes and bulbs Total Business to business $ 582,000 $ - $ 582,000 Direct to consumer 360,000 - 360,000 Total $ 942,000 $ 2,000 $ 944,000 In the following table, revenue is disaggregated by major product line for the three months ended March 31, 2020: Sales Channels LED digital gauges and automotive electronics and accessories LED lighting tubes and bulbs Total Business to business $ 325,000 $ - $ 325,000 Direct to consumer 430,000 - 430,000 Total $ 755,000 $ 1,000 $ 756,000 Products sold by the Company are distinct individual products. The products are offered for sale as finished goods only, and there are no performance obligations required post-shipment for customers to derive the expected value from them. Most of the Company’s sales are received through several eBay web-commerce websites, which requires customer payment at time of order placement. Customer advanced payments were $84,000 and $29,000 at March 31, 2021 and December 31, 2020, respectively, and are recorded as a liability on the consolidated balance sheets. The Company does offer a 30-day return policy from the date of shipment. The Company also provides a limited lifetime warranty on its products. Due to a limited history of returns, the Company does not maintain a warranty reserve. Cash and Cash Equivalents Cash and cash equivalents include all highly liquid investments with remaining maturities of three months or less at the date of purchase. Cash equivalents include funds held in a PayPal account. Accounts Receivable The Company evaluates the collectability of its trade accounts receivable based on a number of factors. In circumstances where the Company becomes aware of a specific customer’s inability to meet its financial obligations to the Company, a specific reserve for bad debts is estimated and recorded, which reduces the recognized receivable to the estimated amount the Company believes will ultimately be collected. In addition to specific customer identification of potential bad debts, bad debt charges are recorded based on the Company’s historical losses and an overall assessment of past due trade accounts receivable outstanding. The allowance for doubtful accounts and returns is established through a provision reducing the carrying value of receivables. At March 31, 2021 and December 31, 2020, the Company determined that no allowance for doubtful accounts was necessary. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is computed on a first-in, first-out basis. The Company’s inventories consist almost entirely of finished goods as of March 31, 2021 and December 31, 2020. The Company provides inventory reserves based on excess and obsolete inventories determined primarily by future demand forecasts. The write down amount is measured as the difference between the cost of the inventory and market based upon assumptions about future demand and charged to the provision for inventory, which is a component of cost of sales. At the point of the loss recognition, a new, lower cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. At March 31, 2021 and December 31, 2020, the Company determined that no reserve for excess and obsolete inventory was necessary. Property and Equipment Property and equipment are carried at cost less accumulated depreciation and amortization. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. The Company has determined the estimated useful lives of its property and equipment, as follows: Building 40 years Building improvements 7 years Vehicles 5 years Production equipment 5 years Office equipment 3 years Furniture and fixtures 7 years Maintenance and repairs are charged to expense as incurred. The cost and accumulated depreciation of assets sold or otherwise disposed of are removed from the related accounts and the resulting gain or loss is reflected in the statements of operations. Management assesses the carrying value of property and equipment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If there is an indication of impairment, management prepares an estimate of future cash flows expected to result from the use of the asset and its eventual disposition. If these cash flows are less than the carrying amount of the asset, an impairment loss is recognized to write down the asset to its estimated fair value. The Company did not record an impairment loss for the three months ended March 31, 2021 and 2020. Product Development Costs Product development costs are expensed in the period incurred. The costs primarily consist of prototype and testing costs. Product development costs for the three months ended March 31, 2021 and 2020, were $84,000 and $95,000, respectively. Shipping and Handling Costs The Company’s shipping and handling costs relating to inbound and outbound freight are reported as cost of goods sold in the consolidated Statements of Operations. The Company classifies amounts billed to customers for shipping fees as revenues. Income Taxes Income tax expense is based on pretax financial accounting income. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. Valuation allowances are recorded to reduce deferred tax assets to the amount that will more likely than not be realized. The Company has recorded a valuation allowance against its deferred tax assets as of March 31, 2021 and December 31, 2020. The Company accounts for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50 percent likely of being realized upon settlement. The Company classifies the liability for unrecognized tax benefits as current to the extent that the Company anticipates payment (or receipt) of cash within one year. Interest and penalties related to uncertain tax positions are recognized in the provision for income taxes. Advertising Costs Advertising costs are expensed as incurred and are included in selling, general and administrative expenses. Advertising costs were $4,000 and $2,000 for the three months ended March 31, 2021 and 2020, respectively. Concentrations The Company maintains the majority of its cash balances with one financial institution, in the form of demand deposits. Periodically, the Company had cash deposits that exceeded the federally insured limit of $250,000. The Company believes that no significant concentration of credit risk exists with respect to these cash balances because of its assessment of the creditworthiness and financial viability of the financial institution. Sales. Accounts receivable. Purchases from vendors. Fair Value Measurements The Company determines the fair value of its assets and liabilities based on the exchange price in U.S. dollars that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses a fair value hierarchy with three levels of inputs, of which the first two are considered observable and the last unobservable, to measure fair value: ● Level 1 — Quoted prices in active markets for identical assets or liabilities. ● Level 2 — Inputs, other than Level 1, that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The carrying amounts of financial instruments such as cash, accounts receivable, inventories, accounts payable and accrued liabilities, accrued payroll liabilities, and advanced customer deposits, approximate the related fair values due to the short-term maturities of these instruments. The carrying values of the line of credit and notes payable approximate their fair values due to the fact that the interest rates on these obligations are based on prevailing market interest rates. Recently Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments. ASU 2016-13 requires entities to use a forward-looking approach based on current expected credit losses (“CECL”) to estimate credit losses on certain types of financial instruments, including trade receivables. This may result in the earlier recognition of allowances for losses. ASU 2016-13 is effective for the Company beginning January 1, 2023, and early adoption is permitted. The Company does not believe the potential impact of the new guidance and related codification improvements will be material to its financial position, results of operations and cash flows. Other recent accounting pronouncements issued by the FASB, its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future financial statements. |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 3 – PROPERTY AND EQUIPMENT Property and equipment consist of the following at March 31, 2021 and December 31, 2020: March 31, 2021 December 31, Building and improvements $ 651,000 $ 645,000 Land 96,000 96,000 Vehicles 461,000 411,000 Production equipment 715,000 630,000 Office equipment 35,000 35,000 Furniture and fixtures 48,000 48,000 Total property and equipment cost 2,006,000 1,865,000 Less: accumulated depreciation and amortization (492,000 ) (446,000 ) Property and equipment, net $ 1,514,000 $ 1,419,000 Depreciation expense for the three months ended March 31, 2021 and 2020 was $46,000 and $13,000, respectively. |
Accrued Payroll to Officer
Accrued Payroll to Officer | 3 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
ACCRUED PAYROLL TO OFFICER | NOTE 4 – ACCRUED PAYROLL TO OFFICER Beginning in January 2018, the Company’s President voluntarily elected to defer payment of his employment compensation. The balance of the compensation owed to the Company’s President was $481,000 and $442,000 as of March 31, 2021 and December 31, 2020, respectively. |
Line of Credit
Line of Credit | 3 Months Ended |
Mar. 31, 2021 | |
Line of Credit Facility [Abstract] | |
LINE OF CREDIT | NOTE 5 – LINE OF CREDIT On April 28, 2020, the Company obtained a $50,000 unsecured line of credit from KeyBank. The line of credit carries an interest rate of 3.25% per annum. The balance outstanding on the line of credit was $35,000 and $49,000 at March 31, 2021 and December 31, 2020, respectively. |
Loans Payable to Related Partie
Loans Payable to Related Parties | 3 Months Ended |
Mar. 31, 2021 | |
Loans Payable To Related Parties [Abstract] | |
LOANS PAYABLE TO RELATED PARTIES | NOTE 6 – LOANS PAYABLE TO RELATED PARTIES Loans payable to related parties consists of the following at March 31, 2021 and December 31, 2020: March 31, December 31, Loan payable to officers/shareholders (a) $ 1,805,000 $ 2,130,000 Loan payable to related party (b) 125,000 125,000 Loan payable to related party – past due (c) - 34,000 Loan payable to related party – (d) 335,000 330,000 Total loans payable to related parties 2,265,000 2,619,000 Loans payable to related parties, current portion (2,265,000 ) (2,619,000 ) Loans payable to related parties, net of current portion $ - $ - a. On December 1, 2016, the Company acquired Intellitronix Corporation from the Company’s President and shareholder. The Company agreed to pay $4,000,000 in exchange for all the shares of Intellitronix Corporation. The sixty-month loan matures in December 2021, requires monthly payments of $74,000, carries an interest rate of 6.25%, and is secured by the assets of Intellitronix Corporation. The loan balance on December 31, 2020, including accrued interest, was $2,130,000. During the three months ended March 31, 2021, the Company accrued interest of $31,000 and made principal loan payments of $356,000, leaving a balance outstanding of $1,805,000 at March 31, 2021. b. During the year ended December 31, 2017, the Company’s President and shareholder, contributed $125,000 of working capital to the Company. The contributed working capital balance were converted into a loan with no interest rate, and due on demand. The loan balance was $125,000 on both March 31, 2021 and December 31, 2020. c. In July 2016, the Company assumed an obligation of Solei Systems, Inc, an entity owned by the Company’s President and shareholder. The Company agreed to enter into a note agreement with Huntington National Bank for $60,000. The loan has an interest rate of 6.00% and requires a monthly payment of $1,000. The loan balance on December 31, 2020 was $34,000. During the three months ended March 31, 2021, the Company and Huntington National Bank agreed to settle the past due loan and interest balance for a total of $25,000, and the Company recorded a gain on extinguishment of debt for $9,000, leaving no balance remaining at March 31, 2021. d. On April 24, 2020, the Company entered into a loan agreement (the “Loan Agreement”) with the Company’s President and shareholder, Paul Spivak (the “Lender”), pursuant to which the Company borrowed $408,000 from the Lender. The Loan has a term of twelve months and carries an interest rate of 6.00%. The loan balance on December 31, 2020 was $330,000. During the three months ended March 31, 2021, the Company accrued interest of $5,000, leaving a balance outstanding of $335,000 at March 31, 2021. |
Loans Payable
Loans Payable | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
LOANS PAYABLE | NOTE 7 – LOANS PAYABLE Loan payable consisted of the following as of March 31, 2021 and December 31, 2020: March 31, 2021 December 31, PayPal Working Capital Loan, net of discount (a) $ 32,000 $ 38,000 PayPal Working Capital Loan, net of discount (b) 10,000 14,000 Secured promissory note (c) 58,000 86,000 Secured promissory note (d) 265,000 265,000 Vehicle loans (e) 167,000 131,000 Equipment loan (f) 15,000 16,000 Equipment loan (g) 15,000 17,000 Equipment loan (h) 85,000 - Loan discount (3,000 ) (8,000 ) Total loans payable 644,000 559,000 Loans payable, current portion (159,000 ) (163,000 ) Loans payable, net of current portion $ 485,000 $ 396,000 a. On August 12, 2019, the Company entered into a PayPal Working Capital loan. The principal amount of the loan was for $216,000. The Company received net proceeds of $200,000, net of loan fees of $16,000. The loan has a 20-month term and requires monthly payments equal to 20% of monthly PayPal sales proceeds, but no less than $11,000 every 90-day period. The loan balance on December 31, 2020 was $38,000. During the three months ended March 31, 2021, the Company made principal payments of $6,000, leaving a total of $32,000 owed at March 31, 2021. b. On November 25, 2019, the Company entered into a PayPal Working Capital loan. The principal amount of the loan was for $66,000. The Company received net proceeds of $50,000, net of loan fees of $16,000. The loan has a 20-month term and requires monthly payments equal to 20% of monthly PayPal sales proceeds, but no less than $3,300 every 90-day period. The loan balance on December 31, 2020 was $14,000. During the three months ended March 31, 2021, the Company made principal payments of $4,000, leaving a total of $10,000 owed at March 31, 2021. c. On March 12, 2020, the Company entered into a loan agreement with Celtic Bank in the principal amount of $150,000 with interest at 32.09% per annum and due on September 12, 2021. The loan requires minimum monthly principal and interest payments of $11,000 and is secured by the Company’s assets and future sales and is personally guaranteed by the Company’s CEO. The loan balance on December 31, 2020 was $86,000. During the three months ended March 31, 2021, the Company made principal payments of $28,000, leaving a total of $58,000 owed at March 31, 2021. d. On August 26, 2020, the Company entered into a loan agreement with Apex Commercial Capital Corp. in the principal amount of $266,000 with interest at 9.49% per annum and due on September 10, 2030. The loan requires one hundred nineteen (119) monthly payments of $2,322, with a final balloon payment on the one hundred twentieth (120) month, or September 10, 2030, of $224,835. The loan is guaranteed by the Company and the Company’s Chief Executive Officer and secured by the Company’s real estate. The loan balance on December 31, 2020 was $265,000. During the three months ended March 31, 2021, the Company made principal payments of less than $1,000, leaving a total of $265,000 owed at March 31, 2021. e. The Company purchases vehicles for its Chief Executive Officer and for research and development activities. Generally, vehicles are sold or traded in at the end of the vehicle loan period. The aggregate vehicle loan balance on three vehicles was $131,000 at December 31, 2020, with an original loan period of 72 to 144 months, and interest rates of zero percent to 10.99%. During the three months ended March 31, 2021, the Company purchased a vehicle for $40,000, with a 72 month loan term, and an interest rate of 4.15%, and made total principal payments of $4,000 on its vehicle loans, leaving an aggregate loan balance on four vehicles of $167,000 at March 31, 2021. f. On August 3, 2020, the Company entered into a $18,000 term loan with Leaf Capital related to the purchase of production equipment. The loan requires monthly payments over the term of 36 months, has an interest rate of 8.48% per annum, and is secured by the production equipment. The loan balance on December 31, 2020 was $16,000. During the three months ended March 31, 2021, the Company made principal payments of $1,000, leaving a total of $15,000 owed at March 31, 2021. g. On November 29, 2020, the Company entered into a $17,000 term loan with CIT Bank related to the purchase of software for its production equipment. The loan requires monthly payments over the term of 36 months, has an interest rate of 13.18% per annum, and is personally guaranteed by the Company’s CEO. The loan balance was $17,000 at December 31, 2020. During the three months ended March 31, 2021, the Company made principal payments of $2,000, leaving a total of $15,000 owed at March 31, 2021. h. On February 22, 2021, the Company entered into a $86,000 term loan with CIT Bank related to the purchase of production equipment. The loan requires monthly payments over the term of 36 months, has an interest rate of 9.96% per annum, and is personally guaranteed by the Company’s CEO. During the three months ended March 31, 2021, the Company made principal payments of $1,000, leaving a total of $85,000 owed at March 31, 2021. The aggregate amount of the loan fees recorded in 2019, related to PayPal Working Capital Loans, was $32,000 and was recorded as a valuation discount to be amortized over the life of the PayPal Working Capital Loans. The unamortized valuation discount was $8,000 at December 31, 2020. During the three months ended March 31, 2021, amortization of valuation discount of $5,000 was recorded as an interest cost, leaving a $3,000 remaining unamortized balance of the valuation discount at March 31, 2021. |
Convertible Secured Notes Payab
Convertible Secured Notes Payable | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE SECURED NOTES PAYABLE | NOTE 8 – CONVERTIBLE SECURED NOTES PAYABLE The Company issued convertible secured debentures (“Convertible Notes”) to accredited investors with interest at 10% per annum, a term of eighteen months, and secured by all of the assets of the Company and its subsidiaries. The Convertible Notes provide a conversion right, in which the principal amount of the Convertible Notes, together with any accrued but unpaid interest, could be converted into the Company’s common stock at a conversion price at $0.25 per share. The Convertible Notes balance on December 31, 2020, including accrued interest of $5,000, was $55,000. During the three months ended March 31, 2021, the Company accrued additional interest of $2,000, leaving a total of $57,000 owed at March 31, 2021. As of March 31, 2021, the Convertible Notes were convertible into 226,356 shares of common stock. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS’ EQUITY | NOTE 9 – SHAREHOLDERS’ EQUITY Common shares issued for cash During the three months ended March 31, 2021 and 2020, the Company received proceeds of $150,000 and $50,000 on the private placement of 1,005,000 and 200,000 shares of common stock, at an average price of $0.15 and $0.25 per share, respectively. Summary of Warrants A summary of warrants for the period ended March 31, 2021, is as follows: Number Weighted Warrants Price Balance outstanding, December 31, 2020 20,000 0.25 Warrants granted - - Warrants exercised - - Warrants expired or forfeited - - Balance outstanding, March 31, 2021 20,000 $ 0.25 Balance exercisable, March 31, 2021 20,000 $ 0.25 Information relating to outstanding warrants at March 31, 2021, summarized by exercise price, is as follows: Outstanding Exercisable Weighted Weighted Average Average Exercise Price Shares Life (Years) Exercise Price Shares Exercise $ 0.25 20,000 0.44 $ 0.25 20,000 $ 0.25 In conjunction with the sale of a portion of the common shares issued as part of its private offering discussed above, the Company issued eighteen-month warrants to purchase shares of common stock at an exercise price of $0.25. The weighted-average remaining contractual life of warrants outstanding and exercisable at March 31, 2021 was 0.44 years. The outstanding and exercisable warrants at an intrinsic value of $1,000 at March 31, 2021. |
Legal Proceedings
Legal Proceedings | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Text Block Supplement [Abstract] | |
LEGAL PROCEEDINGS | NOTE 10 – LEGAL PROCEEDINGS Intellitronix Corporation is a defendant in a lawsuit filed by Michael A. Kunzman & Associates, Inc. for alleged nonpayment of manufacturer’s representation commissions. The lawsuit was filed on August 24, 2020 and is currently pending in the Circuit Court for Oakland County, Michigan. Intellitronix Corporation denies the allegations and intends to assert, upon leave of Court, a counterclaim to recover its damages. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 11 – SUBSEQUENT EVENTS US Lighting Group, Inc created a new subsidiary called Fusion X Marine, LLC on April 12, 2021, domiciled in Wyoming, to sell boats and other related products to the recreational marine market. Fusion X Marine is 99% owned by the Company and 1% owned by Paul Spivak, the Company’s CEO. Subsequent to March 31, 2021, the Company received proceeds of $89,000 on the private placement of 592,000 shares of common stock, at a price of $0.15 per share, and the Company issued 50,000 shares of common stock for services received from a vendor. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary Intellitronix Corp. On January 11, 2021, the Company created a new subsidiary called Cortes Campers, LLC, domiciled in Wyoming. Cortes Campers, LLC was created to market tow behind travel trailers for the recreational vehicle market and has had no sales as of the date of this report. Cortes Campers, LLC is 99% owned by the Company and 1% owned by Paul Spivak, the Company’s CEO. Intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the U.S requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the financial statement date, and reported amounts of revenue and expenses during the reporting period. Significant estimates are used in valuing our allowances for doubtful accounts, reserves for inventory obsolescence, valuing derivative liabilities, valuing equity instruments issued for services, and valuation allowance for deferred tax assets, among others. Actual results could differ from these estimates. |
Segment Reporting | Segment Reporting The Company operates in one segment for the manufacture and distribution of our products. In accordance with the “Segment Reporting” Topic of the ASC, the Company’s chief operating decision maker has been identified as the Chief Executive Officer and President, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Existing guidance, which is based on a management approach to segment reporting, establishes requirements to report selected segment information quarterly and to report annually entity-wide disclosures about products and services, major customers, and the countries in which the entity holds material assets and reports revenue. All material operating units qualify for aggregation under “Segment Reporting” due to their similar customer base and similarities in: economic characteristics; nature of products and services; and procurement, manufacturing and distribution processes. Since the Company operates in one segment, all financial information required by “Segment Reporting” can be found in the accompanying consolidated financial statements. |
Loss per Share Calculations | Loss per Share Calculations Basic earnings per share are computed by dividing net income (loss) available to common shareholders by the weighted-average number of common shares available. Diluted earnings per share is computed by dividing the net income applicable to common shareholders by the weighted average number of common shares outstanding plus the number of additional common shares that would have been outstanding if all dilutive potential common shares had been issued using the treasury stock method. Potential common shares are excluded from the computation when their effect is antidilutive. The dilutive effect of potentially dilutive securities is reflected in diluted net income per share if the exercise prices were lower than the average fair market value of common shares during the reporting period. Warrants to acquire 20,000 shares of common stock, and 226,356 shares of common stock issuable under convertible note agreements, have been excluded from the calculation of weighted average common shares outstanding at March 31, 2021, as their effect would have been anti-dilutive. Warrants to acquire 4,104,000 shares of common stock have been excluded from the calculation of weighted average common shares outstanding at March 31, 2020, as their effect would have been anti-dilutive. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue in accordance with Accounting Standard Update (“ASU”) No. 2014-09. This standard provides authoritative guidance clarifying the principles for recognizing revenue and developing a common revenue standard for U.S. generally accepted accounting principles. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in the exchange for those goods or services. Under this guidance, revenue is recognized when control of promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company reviews its sales transactions to identify contractual rights, performance obligations, and transaction prices, including the allocation of prices to separate performance obligations, if applicable. Revenue and costs of sales are recognized once products are delivered to the customer’s control and performance obligations are satisfied. In the following table, revenue is disaggregated by major product line for the three months ended March 31, 2021: Sales Channels LED digital gauges and automotive electronics and accessories LED lighting tubes and bulbs Total Business to business $ 582,000 $ - $ 582,000 Direct to consumer 360,000 - 360,000 Total $ 942,000 $ 2,000 $ 944,000 In the following table, revenue is disaggregated by major product line for the three months ended March 31, 2020: Sales Channels LED digital gauges and automotive electronics and accessories LED lighting tubes and bulbs Total Business to business $ 325,000 $ - $ 325,000 Direct to consumer 430,000 - 430,000 Total $ 755,000 $ 1,000 $ 756,000 Products sold by the Company are distinct individual products. The products are offered for sale as finished goods only, and there are no performance obligations required post-shipment for customers to derive the expected value from them. Most of the Company’s sales are received through several eBay web-commerce websites, which requires customer payment at time of order placement. Customer advanced payments were $84,000 and $29,000 at March 31, 2021 and December 31, 2020, respectively, and are recorded as a liability on the consolidated balance sheets. The Company does offer a 30-day return policy from the date of shipment. The Company also provides a limited lifetime warranty on its products. Due to a limited history of returns, the Company does not maintain a warranty reserve. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include all highly liquid investments with remaining maturities of three months or less at the date of purchase. Cash equivalents include funds held in a PayPal account. |
Accounts Receivable | Accounts Receivable The Company evaluates the collectability of its trade accounts receivable based on a number of factors. In circumstances where the Company becomes aware of a specific customer’s inability to meet its financial obligations to the Company, a specific reserve for bad debts is estimated and recorded, which reduces the recognized receivable to the estimated amount the Company believes will ultimately be collected. In addition to specific customer identification of potential bad debts, bad debt charges are recorded based on the Company’s historical losses and an overall assessment of past due trade accounts receivable outstanding. The allowance for doubtful accounts and returns is established through a provision reducing the carrying value of receivables. At March 31, 2021 and December 31, 2020, the Company determined that no allowance for doubtful accounts was necessary. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Cost is computed on a first-in, first-out basis. The Company’s inventories consist almost entirely of finished goods as of March 31, 2021 and December 31, 2020. The Company provides inventory reserves based on excess and obsolete inventories determined primarily by future demand forecasts. The write down amount is measured as the difference between the cost of the inventory and market based upon assumptions about future demand and charged to the provision for inventory, which is a component of cost of sales. At the point of the loss recognition, a new, lower cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. At March 31, 2021 and December 31, 2020, the Company determined that no reserve for excess and obsolete inventory was necessary. |
Property and Equipment | Property and Equipment Property and equipment are carried at cost less accumulated depreciation and amortization. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. The Company has determined the estimated useful lives of its property and equipment, as follows: Building 40 years Building improvements 7 years Vehicles 5 years Production equipment 5 years Office equipment 3 years Furniture and fixtures 7 years Maintenance and repairs are charged to expense as incurred. The cost and accumulated depreciation of assets sold or otherwise disposed of are removed from the related accounts and the resulting gain or loss is reflected in the statements of operations. Management assesses the carrying value of property and equipment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If there is an indication of impairment, management prepares an estimate of future cash flows expected to result from the use of the asset and its eventual disposition. If these cash flows are less than the carrying amount of the asset, an impairment loss is recognized to write down the asset to its estimated fair value. The Company did not record an impairment loss for the three months ended March 31, 2021 and 2020. |
Product Development Costs | Product Development Costs Product development costs are expensed in the period incurred. The costs primarily consist of prototype and testing costs. Product development costs for the three months ended March 31, 2021 and 2020, were $84,000 and $95,000, respectively. |
Shipping and Handling Costs | Shipping and Handling Costs The Company’s shipping and handling costs relating to inbound and outbound freight are reported as cost of goods sold in the consolidated Statements of Operations. The Company classifies amounts billed to customers for shipping fees as revenues. |
Income Taxes | Income Taxes Income tax expense is based on pretax financial accounting income. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. Valuation allowances are recorded to reduce deferred tax assets to the amount that will more likely than not be realized. The Company has recorded a valuation allowance against its deferred tax assets as of March 31, 2021 and December 31, 2020. The Company accounts for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50 percent likely of being realized upon settlement. The Company classifies the liability for unrecognized tax benefits as current to the extent that the Company anticipates payment (or receipt) of cash within one year. Interest and penalties related to uncertain tax positions are recognized in the provision for income taxes. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and are included in selling, general and administrative expenses. Advertising costs were $4,000 and $2,000 for the three months ended March 31, 2021 and 2020, respectively. |
Concentrations | Concentrations The Company maintains the majority of its cash balances with one financial institution, in the form of demand deposits. Periodically, the Company had cash deposits that exceeded the federally insured limit of $250,000. The Company believes that no significant concentration of credit risk exists with respect to these cash balances because of its assessment of the creditworthiness and financial viability of the financial institution. Sales. Accounts receivable. Purchases from vendors. |
Fair Value Measurements | Fair Value Measurements The Company determines the fair value of its assets and liabilities based on the exchange price in U.S. dollars that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses a fair value hierarchy with three levels of inputs, of which the first two are considered observable and the last unobservable, to measure fair value: ● Level 1 — Quoted prices in active markets for identical assets or liabilities. ● Level 2 — Inputs, other than Level 1, that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The carrying amounts of financial instruments such as cash, accounts receivable, inventories, accounts payable and accrued liabilities, accrued payroll liabilities, and advanced customer deposits, approximate the related fair values due to the short-term maturities of these instruments. The carrying values of the line of credit and notes payable approximate their fair values due to the fact that the interest rates on these obligations are based on prevailing market interest rates. |
Recently Accounting Pronouncements | Recently Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments. ASU 2016-13 requires entities to use a forward-looking approach based on current expected credit losses (“CECL”) to estimate credit losses on certain types of financial instruments, including trade receivables. This may result in the earlier recognition of allowances for losses. ASU 2016-13 is effective for the Company beginning January 1, 2023, and early adoption is permitted. The Company does not believe the potential impact of the new guidance and related codification improvements will be material to its financial position, results of operations and cash flows. Other recent accounting pronouncements issued by the FASB, its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of revenue is disaggregated | Sales Channels LED digital gauges and automotive electronics and accessories LED lighting tubes and bulbs Total Business to business $ 582,000 $ - $ 582,000 Direct to consumer 360,000 - 360,000 Total $ 942,000 $ 2,000 $ 944,000 Sales Channels LED digital gauges and automotive electronics and accessories LED lighting tubes and bulbs Total Business to business $ 325,000 $ - $ 325,000 Direct to consumer 430,000 - 430,000 Total $ 755,000 $ 1,000 $ 756,000 |
Schedule of property and equipment estimated useful lives | Building 40 years Building improvements 7 years Vehicles 5 years Production equipment 5 years Office equipment 3 years Furniture and fixtures 7 years |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | March 31, 2021 December 31, Building and improvements $ 651,000 $ 645,000 Land 96,000 96,000 Vehicles 461,000 411,000 Production equipment 715,000 630,000 Office equipment 35,000 35,000 Furniture and fixtures 48,000 48,000 Total property and equipment cost 2,006,000 1,865,000 Less: accumulated depreciation and amortization (492,000 ) (446,000 ) Property and equipment, net $ 1,514,000 $ 1,419,000 |
Loans Payable to Related Part_2
Loans Payable to Related Parties (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Loans Payable To Related Parties [Abstract] | |
Schedule of loans payable to related parties | March 31, December 31, Loan payable to officers/shareholders (a) $ 1,805,000 $ 2,130,000 Loan payable to related party (b) 125,000 125,000 Loan payable to related party – past due (c) - 34,000 Loan payable to related party – (d) 335,000 330,000 Total loans payable to related parties 2,265,000 2,619,000 Loans payable to related parties, current portion (2,265,000 ) (2,619,000 ) Loans payable to related parties, net of current portion $ - $ - a. On December 1, 2016, the Company acquired Intellitronix Corporation from the Company’s President and shareholder. The Company agreed to pay $4,000,000 in exchange for all the shares of Intellitronix Corporation. The sixty-month loan matures in December 2021, requires monthly payments of $74,000, carries an interest rate of 6.25%, and is secured by the assets of Intellitronix Corporation. The loan balance on December 31, 2020, including accrued interest, was $2,130,000. During the three months ended March 31, 2021, the Company accrued interest of $31,000 and made principal loan payments of $356,000, leaving a balance outstanding of $1,805,000 at March 31, 2021. b. During the year ended December 31, 2017, the Company’s President and shareholder, contributed $125,000 of working capital to the Company. The contributed working capital balance were converted into a loan with no interest rate, and due on demand. The loan balance was $125,000 on both March 31, 2021 and December 31, 2020. c. In July 2016, the Company assumed an obligation of Solei Systems, Inc, an entity owned by the Company’s President and shareholder. The Company agreed to enter into a note agreement with Huntington National Bank for $60,000. The loan has an interest rate of 6.00% and requires a monthly payment of $1,000. The loan balance on December 31, 2020 was $34,000. During the three months ended March 31, 2021, the Company and Huntington National Bank agreed to settle the past due loan and interest balance for a total of $25,000, and the Company recorded a gain on extinguishment of debt for $9,000, leaving no balance remaining at March 31, 2021. d. On April 24, 2020, the Company entered into a loan agreement (the “Loan Agreement”) with the Company’s President and shareholder, Paul Spivak (the “Lender”), pursuant to which the Company borrowed $408,000 from the Lender. The Loan has a term of twelve months and carries an interest rate of 6.00%. The loan balance on December 31, 2020 was $330,000. During the three months ended March 31, 2021, the Company accrued interest of $5,000, leaving a balance outstanding of $335,000 at March 31, 2021. |
Loans Payable (Tables)
Loans Payable (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of loans payable | March 31, 2021 December 31, PayPal Working Capital Loan, net of discount (a) $ 32,000 $ 38,000 PayPal Working Capital Loan, net of discount (b) 10,000 14,000 Secured promissory note (c) 58,000 86,000 Secured promissory note (d) 265,000 265,000 Vehicle loans (e) 167,000 131,000 Equipment loan (f) 15,000 16,000 Equipment loan (g) 15,000 17,000 Equipment loan (h) 85,000 - Loan discount (3,000 ) (8,000 ) Total loans payable 644,000 559,000 Loans payable, current portion (159,000 ) (163,000 ) Loans payable, net of current portion $ 485,000 $ 396,000 a. On August 12, 2019, the Company entered into a PayPal Working Capital loan. The principal amount of the loan was for $216,000. The Company received net proceeds of $200,000, net of loan fees of $16,000. The loan has a 20-month term and requires monthly payments equal to 20% of monthly PayPal sales proceeds, but no less than $11,000 every 90-day period. The loan balance on December 31, 2020 was $38,000. During the three months ended March 31, 2021, the Company made principal payments of $6,000, leaving a total of $32,000 owed at March 31, 2021. b. On November 25, 2019, the Company entered into a PayPal Working Capital loan. The principal amount of the loan was for $66,000. The Company received net proceeds of $50,000, net of loan fees of $16,000. The loan has a 20-month term and requires monthly payments equal to 20% of monthly PayPal sales proceeds, but no less than $3,300 every 90-day period. The loan balance on December 31, 2020 was $14,000. During the three months ended March 31, 2021, the Company made principal payments of $4,000, leaving a total of $10,000 owed at March 31, 2021. c. On March 12, 2020, the Company entered into a loan agreement with Celtic Bank in the principal amount of $150,000 with interest at 32.09% per annum and due on September 12, 2021. The loan requires minimum monthly principal and interest payments of $11,000 and is secured by the Company’s assets and future sales and is personally guaranteed by the Company’s CEO. The loan balance on December 31, 2020 was $86,000. During the three months ended March 31, 2021, the Company made principal payments of $28,000, leaving a total of $58,000 owed at March 31, 2021. d. On August 26, 2020, the Company entered into a loan agreement with Apex Commercial Capital Corp. in the principal amount of $266,000 with interest at 9.49% per annum and due on September 10, 2030. The loan requires one hundred nineteen (119) monthly payments of $2,322, with a final balloon payment on the one hundred twentieth (120) month, or September 10, 2030, of $224,835. The loan is guaranteed by the Company and the Company’s Chief Executive Officer and secured by the Company’s real estate. The loan balance on December 31, 2020 was $265,000. During the three months ended March 31, 2021, the Company made principal payments of less than $1,000, leaving a total of $265,000 owed at March 31, 2021. e. The Company purchases vehicles for its Chief Executive Officer and for research and development activities. Generally, vehicles are sold or traded in at the end of the vehicle loan period. The aggregate vehicle loan balance on three vehicles was $131,000 at December 31, 2020, with an original loan period of 72 to 144 months, and interest rates of zero percent to 10.99%. During the three months ended March 31, 2021, the Company purchased a vehicle for $40,000, with a 72 month loan term, and an interest rate of 4.15%, and made total principal payments of $4,000 on its vehicle loans, leaving an aggregate loan balance on four vehicles of $167,000 at March 31, 2021. f. On August 3, 2020, the Company entered into a $18,000 term loan with Leaf Capital related to the purchase of production equipment. The loan requires monthly payments over the term of 36 months, has an interest rate of 8.48% per annum, and is secured by the production equipment. The loan balance on December 31, 2020 was $16,000. During the three months ended March 31, 2021, the Company made principal payments of $1,000, leaving a total of $15,000 owed at March 31, 2021. g. On November 29, 2020, the Company entered into a $17,000 term loan with CIT Bank related to the purchase of software for its production equipment. The loan requires monthly payments over the term of 36 months, has an interest rate of 13.18% per annum, and is personally guaranteed by the Company’s CEO. The loan balance was $17,000 at December 31, 2020. During the three months ended March 31, 2021, the Company made principal payments of $2,000, leaving a total of $15,000 owed at March 31, 2021. h. On February 22, 2021, the Company entered into a $86,000 term loan with CIT Bank related to the purchase of production equipment. The loan requires monthly payments over the term of 36 months, has an interest rate of 9.96% per annum, and is personally guaranteed by the Company’s CEO. During the three months ended March 31, 2021, the Company made principal payments of $1,000, leaving a total of $85,000 owed at March 31, 2021. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of warrant | Number Weighted Warrants Price Balance outstanding, December 31, 2020 20,000 0.25 Warrants granted - - Warrants exercised - - Warrants expired or forfeited - - Balance outstanding, March 31, 2021 20,000 $ 0.25 Balance exercisable, March 31, 2021 20,000 $ 0.25 |
Schedule of warrants outstanding | Outstanding Exercisable Weighted Weighted Average Average Exercise Price Shares Life (Years) Exercise Price Shares Exercise $ 0.25 20,000 0.44 $ 0.25 20,000 $ 0.25 |
Basis of Presentation and Liq_2
Basis of Presentation and Liquidity (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accounting Policies [Abstract] | ||
Net loss | $ 148,000 | |
Cash provided by operating activities | 277,000 | $ (57,000) |
Cash on hand | $ 109,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021USD ($)shares | Mar. 31, 2020USD ($)shares | Dec. 31, 2020USD ($) | |
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Ownership, percentage | 99.00% | ||
Number of segment | 1 | ||
Customer advanced payments (in Dollars) | $ 84,000 | $ 29,000 | |
Product development costs (in Dollars) | $ 84,000 | $ 95,000 | |
Income tax settlement, description | The second step is to measure the tax benefit as the largest amount that is more than 50 percent likely of being realized upon settlement. | ||
Advertising costs (in Dollars) | $ 4,000 | $ 2,000 | |
Cash deposits (in Dollars) | $ 250,000 | ||
Sales Revenue, Net [Member] | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Number of customers | 3 | 3 | |
Concentration risks percentage | 10.00% | 10.00% | |
Accounts Receivable [Member] | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Number of customers | 3 | 2 | |
Net Purchase [Member] | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Concentration risks percentage | 10.00% | 10.00% | |
Number of vendors | 2 | 3 | |
Paul Spivak [Member] | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Ownership, percentage | 1.00% | ||
Convertible Note Agreements [Member] | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Shares of common stock (in Shares) | shares | 226,356 | ||
Warrant [Member] | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Shares of common stock (in Shares) | shares | 20,000 | ||
Common stock excluded (in Shares) | shares | 4,104,000 | ||
Raw Materials [Member] | Net Purchase [Member] | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Concentration risks percentage | 59.00% | 29.00% | |
Customer One [Member] | Sales Revenue, Net [Member] | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Concentration risks percentage | 24.00% | 39.00% | |
Customer One [Member] | Accounts Receivable [Member] | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Concentration risks percentage | 27.00% | 30.00% | |
Customer Two [Member] | Sales Revenue, Net [Member] | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Concentration risks percentage | 22.00% | 15.00% | |
Customer Two [Member] | Accounts Receivable [Member] | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Concentration risks percentage | 25.00% | 26.00% | |
Customer Three [Member] | Sales Revenue, Net [Member] | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Concentration risks percentage | 15.00% | 12.00% | |
Customer Three [Member] | Accounts Receivable [Member] | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Concentration risks percentage | 21.00% | ||
Vendor One [Member] | Net Purchase [Member] | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Concentration risks percentage | 19.00% | 16.00% | |
Vendor Two [Member] | Net Purchase [Member] | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Concentration risks percentage | 15.00% | 12.00% | |
Vendor Three [Member] | Net Purchase [Member] | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Concentration risks percentage | 11.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of revenue is disaggregated - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Total | $ 944,000 | $ 756,000 |
LED digital gauges and automotive electronics and accessories [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total | 942,000 | 755,000 |
LED lighting tubes and bulbs [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total | 2,000 | 1,000 |
Business to business [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total | 582,000 | 325,000 |
Business to business [Member] | LED digital gauges and automotive electronics and accessories [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total | 582,000 | 325,000 |
Business to business [Member] | LED lighting tubes and bulbs [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total | ||
Direct to consumer/online [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total | 360,000 | 430,000 |
Direct to consumer/online [Member] | LED digital gauges and automotive electronics and accessories [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total | 360,000 | 430,000 |
Direct to consumer/online [Member] | LED lighting tubes and bulbs [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of property and equipment estimated useful lives | 3 Months Ended |
Mar. 31, 2021 | |
Building [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of property and equipment estimated useful lives [Line Items] | |
Property and equipment estimated useful lives | 40 years |
Building improvements [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of property and equipment estimated useful lives [Line Items] | |
Property and equipment estimated useful lives | 7 years |
Vehicles [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of property and equipment estimated useful lives [Line Items] | |
Property and equipment estimated useful lives | 5 years |
Production equipment [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of property and equipment estimated useful lives [Line Items] | |
Property and equipment estimated useful lives | 5 years |
Office equipment [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of property and equipment estimated useful lives [Line Items] | |
Property and equipment estimated useful lives | 3 years |
Furniture and fixtures [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of property and equipment estimated useful lives [Line Items] | |
Property and equipment estimated useful lives | 7 years |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 46,000 | $ 13,000 |
Property and Equipment (Detai_2
Property and Equipment (Details) - Schedule of property and equipment - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,006,000 | $ 1,865,000 |
Less: accumulated depreciation and amortization | (492,000) | (446,000) |
Property and equipment, net | 1,514,000 | 1,419,000 |
Building and improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 651,000 | 645,000 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 96,000 | 96,000 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 461,000 | 411,000 |
Production equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 715,000 | 630,000 |
Office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 35,000 | 35,000 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 48,000 | $ 48,000 |
Accrued Payroll to Officer (Det
Accrued Payroll to Officer (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Payables and Accruals [Abstract] | ||
Accrued payroll to officer | $ 481,000 | $ 442,000 |
Line of Credit (Details)
Line of Credit (Details) - USD ($) | Apr. 28, 2020 | Mar. 31, 2021 | Dec. 31, 2020 |
Line of Credit Facility [Abstract] | |||
Unsecured line of credit | $ 50,000 | ||
Interest rate | 3.25% | ||
Line of credit outstanding amount | $ 35,000 | $ 49,000 |
Loans Payable to Related Part_3
Loans Payable to Related Parties (Details) - USD ($) | Dec. 01, 2016 | Jul. 31, 2016 | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2017 | Apr. 24, 2020 |
Loans Payable To Officers Shareholders [Member] | ||||||
Loans Payable to Related Parties (Details) [Line Items] | ||||||
Periodic payment | $ 4,000,000 | |||||
Maturity date description | The sixty-month loan matures in December 2021, requires monthly payments of $74,000, carries an interest rate of 6.25%, and is secured by the assets of Intellitronix Corporation. | |||||
Monthly payments | $74,000 | |||||
Interest rate | 6.25% | |||||
Accrued interest amount | $ 31,000 | $ 2,130,000 | ||||
Loan balance | 356,000 | |||||
Leaving balance outstanding | 1,805,000 | |||||
Loan payable to related party [Member] | ||||||
Loans Payable to Related Parties (Details) [Line Items] | ||||||
Loan balance | 125,000 | 125,000 | ||||
Working capital | $ 125,000 | |||||
Loan Payable To Related Party Past Due [Member] | ||||||
Loans Payable to Related Parties (Details) [Line Items] | ||||||
Periodic payment | $ 1,000 | |||||
Loan balance | $ 60,000 | 34,000 | ||||
Interest rate | 6.00% | |||||
Interest | 25,000 | |||||
Gain on extinguishment of debt | 9,000 | |||||
Paul Spivak [Member] | ||||||
Loans Payable to Related Parties (Details) [Line Items] | ||||||
Accrued interest amount | 5,000 | |||||
Loan balance | $ 330,000 | |||||
Interest rate | 6.00% | |||||
Borrowed from the lender | $ 408,000 | |||||
Balance outstanding | $ 335,000 |
Loans Payable to Related Part_4
Loans Payable to Related Parties (Details) - Schedule of loans payable to related parties - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Total loans payable to related parties | $ 2,265,000 | $ 2,619,000 | |
Loans payable to related parties, current portion | (2,265,000) | (2,619,000) | |
Loans payable to related parties, net of current portion | |||
Loan payable to officers/shareholders [Member] | |||
Debt Instrument [Line Items] | |||
Total loans payable to related parties | [1] | 1,805,000 | 2,130,000 |
Loan payable to related party [Member] | |||
Debt Instrument [Line Items] | |||
Total loans payable to related parties | [2] | 125,000 | 125,000 |
Loan payable to related party – past due [Member] | |||
Debt Instrument [Line Items] | |||
Total loans payable to related parties | [3] | 34,000 | |
Loan payable to related party One [Member] | |||
Debt Instrument [Line Items] | |||
Total loans payable to related parties | [4] | $ 335,000 | $ 330,000 |
[1] | On December 1, 2016, the Company acquired Intellitronix Corporation from the Company’s President and shareholder. The Company agreed to pay $4,000,000 in exchange for all the shares of Intellitronix Corporation. The sixty-month loan matures in December 2021, requires monthly payments of $74,000, carries an interest rate of 6.25%, and is secured by the assets of Intellitronix Corporation. The loan balance on December 31, 2020, including accrued interest, was $2,130,000. During the three months ended March 31, 2021, the Company accrued interest of $31,000 and made principal loan payments of $356,000, leaving a balance outstanding of $1,805,000 at March 31, 2021. | ||
[2] | During the year ended December 31, 2017, the Company’s President and shareholder, contributed $125,000 of working capital to the Company. The contributed working capital balance were converted into a loan with no interest rate, and due on demand. The loan balance was $125,000 on both March 31, 2021 and December 31, 2020. | ||
[3] | In July 2016, the Company assumed an obligation of Solei Systems, Inc, an entity owned by the Company’s President and shareholder. The Company agreed to enter into a note agreement with Huntington National Bank for $60,000. The loan has an interest rate of 6.00% and requires a monthly payment of $1,000. The loan balance on December 31, 2020 was $34,000. During the three months ended March 31, 2021, the Company and Huntington National Bank agreed to settle the past due loan and interest balance for a total of $25,000, and the Company recorded a gain on extinguishment of debt for $9,000, leaving no balance remaining at March 31, 2021. | ||
[4] | On April 24, 2020, the Company entered into a loan agreement (the “Loan Agreement”) with the Company’s President and shareholder, Paul Spivak (the “Lender”), pursuant to which the Company borrowed $408,000 from the Lender. The Loan has a term of twelve months and carries an interest rate of 6.00%. The loan balance on December 31, 2020 was $330,000. During the three months ended March 31, 2021, the Company accrued interest of $5,000, leaving a balance outstanding of $335,000 at March 31, 2021. |
Loans Payable (Details)
Loans Payable (Details) - USD ($) | Aug. 03, 2020 | Feb. 22, 2021 | Nov. 29, 2020 | Aug. 26, 2020 | Mar. 12, 2020 | Nov. 25, 2019 | Aug. 12, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Loans Payable (Details) [Line Items] | |||||||||||
Working capital loan | $ 32,000 | ||||||||||
Debt instrument, unamortized discount | $ 8,000 | ||||||||||
Interest cost | $ 5,000 | ||||||||||
Remaining unamortized discount | 3,000 | ||||||||||
PayPal Working Capital Loan, net of discount one [Member] | |||||||||||
Loans Payable (Details) [Line Items] | |||||||||||
Principal amount of loan | $ 216,000 | ||||||||||
Net proceeds | $ 200,000 | ||||||||||
Loan fees | $16,000 | ||||||||||
Loans payable, description | The loan has a 20-month term and requires monthly payments equal to 20% of monthly PayPal sales proceeds, but no less than $11,000 every 90-day period. | ||||||||||
Principal payments | 6,000 | 38,000 | |||||||||
Balance owed | 32,000 | ||||||||||
PayPal Working Capital Loan, net of discount Two [Member] | |||||||||||
Loans Payable (Details) [Line Items] | |||||||||||
Principal amount of loan | $ 66,000 | ||||||||||
Net proceeds | $ 50,000 | ||||||||||
Loan fees | $16,000 | ||||||||||
Loans payable, description | The loan has a 20-month term and requires monthly payments equal to 20% of monthly PayPal sales proceeds, but no less than $3,300 every 90-day period. | ||||||||||
Principal payments | 4,000 | 14,000 | |||||||||
Balance owed | 10,000 | ||||||||||
Notes payable to Celtic Bank [Member] | Loan Agreement [Member] | |||||||||||
Loans Payable (Details) [Line Items] | |||||||||||
Principal amount of loan | $ 150,000 | ||||||||||
Principal payments | 28,000 | 86,000 | |||||||||
Balance owed | 58,000 | ||||||||||
Interest rate | 32.09% | ||||||||||
Monthly principal amount | $ 11,000 | ||||||||||
Apex Commercial Capital Corp. [Member] | |||||||||||
Loans Payable (Details) [Line Items] | |||||||||||
Principal amount of loan | $ 266,000 | ||||||||||
Loans payable, description | The loan requires one hundred nineteen (119) monthly payments of $2,322, with a final balloon payment on the one hundred twentieth (120) month, or September 10, 2030, of $224,835. | ||||||||||
Principal payments | 1,000 | $ 265,000 | |||||||||
Balance owed | 265,000 | ||||||||||
Interest rate | 9.49% | ||||||||||
Vehicle loans [Member] | |||||||||||
Loans Payable (Details) [Line Items] | |||||||||||
Loans payable, description | The aggregate vehicle loan balance on three vehicles was $131,000 at December 31, 2020, with an original loan period of 72 to 144 months, and interest rates of zero percent to 10.99%. | ||||||||||
Principal payments | 4,000 | ||||||||||
Purchased amount | $ 40,000 | $ 131,000 | |||||||||
Interest rate | 4.15% | ||||||||||
Aggregate loan balance | $ 167,000 | ||||||||||
Equipment Loan One [Member] | |||||||||||
Loans Payable (Details) [Line Items] | |||||||||||
Principal amount of loan | $ 18,000 | ||||||||||
Principal payments | 16,000 | ||||||||||
Balance owed | $ 15,000 | ||||||||||
Interest rate | 8.48% | ||||||||||
Loan term | 36 months | ||||||||||
Principle payment | 1,000 | ||||||||||
Equipment Loan Two [Member] | |||||||||||
Loans Payable (Details) [Line Items] | |||||||||||
Principal amount of loan | $ 17,000 | ||||||||||
Principal payments | 2,000 | $ 17,000 | |||||||||
Balance owed | 15,000 | ||||||||||
Interest rate | 13.18% | ||||||||||
Loan term | 36 years | ||||||||||
Equipment Loan Three [Member] | |||||||||||
Loans Payable (Details) [Line Items] | |||||||||||
Principal amount of loan | $ 86,000 | ||||||||||
Principal payments | 1,000 | ||||||||||
Balance owed | $ 85,000 | ||||||||||
Interest rate | 9.96% | ||||||||||
Loan term | 36 years |
Loans Payable (Details) - Sched
Loans Payable (Details) - Schedule of loans payable - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 | |
Loans Payable (Details) - Schedule of loans payable [Line Items] | |||
Total loans payable | $ 644,000 | $ 559,000 | |
Loans payable, current portion | (159,000) | (163,000) | |
Loans payable, net of current portion | 485,000 | 396,000 | |
PayPal Working Capital Loan, Net of Discount One [Member] | |||
Loans Payable (Details) - Schedule of loans payable [Line Items] | |||
Total loans payable | [1] | 32,000 | 38,000 |
PayPal Working Capital Loan, Net of Discount Two [Member] | |||
Loans Payable (Details) - Schedule of loans payable [Line Items] | |||
Total loans payable | [2] | 10,000 | 14,000 |
Secured Promissory Note One [Member] | |||
Loans Payable (Details) - Schedule of loans payable [Line Items] | |||
Total loans payable | [3] | 58,000 | 86,000 |
Secured Promissory Note Two [Member] | |||
Loans Payable (Details) - Schedule of loans payable [Line Items] | |||
Total loans payable | [4] | 265,000 | 265,000 |
Vehicle Loans [Member] | |||
Loans Payable (Details) - Schedule of loans payable [Line Items] | |||
Total loans payable | [5] | 167,000 | 131,000 |
Equipment Loan One [Member] | |||
Loans Payable (Details) - Schedule of loans payable [Line Items] | |||
Total loans payable | [6] | 15,000 | 16,000 |
Equipment Loan Two [Member] | |||
Loans Payable (Details) - Schedule of loans payable [Line Items] | |||
Total loans payable | [7] | 15,000 | 17,000 |
Equipment Loan Three [Member] | |||
Loans Payable (Details) - Schedule of loans payable [Line Items] | |||
Total loans payable | [8] | 85,000 | |
Loan Discount [Member] | |||
Loans Payable (Details) - Schedule of loans payable [Line Items] | |||
Total loans payable | $ (3,000) | $ (8,000) | |
[1] | On August 12, 2019, the Company entered into a PayPal Working Capital loan. The principal amount of the loan was for $216,000. The Company received net proceeds of $200,000, net of loan fees of $16,000. The loan has a 20-month term and requires monthly payments equal to 20% of monthly PayPal sales proceeds, but no less than $11,000 every 90-day period. The loan balance on December 31, 2020 was $38,000. During the three months ended March 31, 2021, the Company made principal payments of $6,000, leaving a total of $32,000 owed at March 31, 2021. | ||
[2] | On November 25, 2019, the Company entered into a PayPal Working Capital loan. The principal amount of the loan was for $66,000. The Company received net proceeds of $50,000, net of loan fees of $16,000. The loan has a 20-month term and requires monthly payments equal to 20% of monthly PayPal sales proceeds, but no less than $3,300 every 90-day period. The loan balance on December 31, 2020 was $14,000. During the three months ended March 31, 2021, the Company made principal payments of $4,000, leaving a total of $10,000 owed at March 31, 2021. | ||
[3] | On March 12, 2020, the Company entered into a loan agreement with Celtic Bank in the principal amount of $150,000 with interest at 32.09% per annum and due on September 12, 2021. The loan requires minimum monthly principal and interest payments of $11,000 and is secured by the Company’s assets and future sales and is personally guaranteed by the Company’s CEO. The loan balance on December 31, 2020 was $86,000. During the three months ended March 31, 2021, the Company made principal payments of $28,000, leaving a total of $58,000 owed at March 31, 2021. | ||
[4] | On August 26, 2020, the Company entered into a loan agreement with Apex Commercial Capital Corp. in the principal amount of $266,000 with interest at 9.49% per annum and due on September 10, 2030. The loan requires one hundred nineteen (119) monthly payments of $2,322, with a final balloon payment on the one hundred twentieth (120) month, or September 10, 2030, of $224,835. The loan is guaranteed by the Company and the Company’s Chief Executive Officer and secured by the Company’s real estate. The loan balance on December 31, 2020 was $265,000. During the three months ended March 31, 2021, the Company made principal payments of less than $1,000, leaving a total of $265,000 owed at March 31, 2021. | ||
[5] | The Company purchases vehicles for its Chief Executive Officer and for research and development activities. Generally, vehicles are sold or traded in at the end of the vehicle loan period. The aggregate vehicle loan balance on three vehicles was $131,000 at December 31, 2020, with an original loan period of 72 to 144 months, and interest rates of zero percent to 10.99%. During the three months ended March 31, 2021, the Company purchased a vehicle for $40,000, with a 72 month loan term, and an interest rate of 4.15%, and made total principal payments of $4,000 on its vehicle loans, leaving an aggregate loan balance on four vehicles of $167,000 at March 31, 2021. | ||
[6] | On August 3, 2020, the Company entered into a $18,000 term loan with Leaf Capital related to the purchase of production equipment. The loan requires monthly payments over the term of 36 months, has an interest rate of 8.48% per annum, and is secured by the production equipment. The loan balance on December 31, 2020 was $16,000. During the three months ended March 31, 2021, the Company made principal payments of $1,000, leaving a total of $15,000 owed at March 31, 2021. | ||
[7] | On November 29, 2020, the Company entered into a $17,000 term loan with CIT Bank related to the purchase of software for its production equipment. The loan requires monthly payments over the term of 36 months, has an interest rate of 13.18% per annum, and is personally guaranteed by the Company’s CEO. The loan balance was $17,000 at December 31, 2020. During the three months ended March 31, 2021, the Company made principal payments of $2,000, leaving a total of $15,000 owed at March 31, 2021. | ||
[8] | On February 22, 2021, the Company entered into a $86,000 term loan with CIT Bank related to the purchase of production equipment. The loan requires monthly payments over the term of 36 months, has an interest rate of 9.96% per annum, and is personally guaranteed by the Company’s CEO. During the three months ended March 31, 2021, the Company made principal payments of $1,000, leaving a total of $85,000 owed at March 31, 2021. |
Convertible Secured Notes Pay_2
Convertible Secured Notes Payable (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | ||
Convertible debt, description | The Company issued convertible secured debentures (“Convertible Notes”) to accredited investors with interest at 10% per annum, a term of eighteen months, and secured by all of the assets of the Company and its subsidiaries. | |
Conversion price (in Dollars per share) | $ 0.25 | |
Proceeds from issuance of convertible notes | $ 5,000 | |
Balance of convertible notes | $ 55,000 | |
Accrued additional interest | $ 2,000 | |
Principal amount | $ 57,000 | |
Common stock convertible shares (in Shares) | 226,356 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Shareholders' Equity (Details) [Line Items] | ||
Weighted average exercise price | $ 0.15 | $ 0.25 |
Exercise price | $ 0.25 | |
Weighted-average remaining contractual life of warrants outstanding and exercisable. | 160 days | |
Intrinsic value of warrants outstanding and exercisable | $ 1,000 | |
Private Placement [Member] | ||
Shareholders' Equity (Details) [Line Items] | ||
Sale of common stock | 1,005,000 | 200,000 |
Common Stock [Member] | ||
Shareholders' Equity (Details) [Line Items] | ||
Received proceeds | $ 150,000 | $ 50,000 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - Schedule of warrant | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Schedule of warrant [Abstract] | |
Number of warrants outstanding, beginning balance | shares | 20,000 |
Weighted average exercise price outstanding, beginning balance | $ / shares | $ 0.25 |
Number of warrants, granted | shares | |
Weighted average exercise price, warrants granted | $ / shares | |
Number of warrants, exercised | shares | |
Weighted average exercise price, warrants exercised | $ / shares | |
Number of warrants, expired or forfeited | shares | |
Weighted average exercise price, warrants expired or forfeited | $ / shares | |
Number of warrants outstanding, ending balance | shares | 20,000 |
Weighted average exercise price outstanding, ending balance | $ / shares | $ 0.25 |
Number of warrants, exercisable | shares | 20,000 |
Weighted average exercise price, exercisable | $ / shares | $ 0.25 |
Shareholders' Equity (Details_2
Shareholders' Equity (Details) - Schedule of warrants outstanding - Warrant [Member] | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Shareholders' Equity (Details) - Schedule of warrants outstanding [Line Items] | |
Outstanding warrants, exercise price per share | $ 0.25 |
Outstanding warrants, shares (in Shares) | shares | 20,000 |
Outstanding warrants, life (years) | 160 days |
Outstanding warrants, weighted average exercise price | $ 0.25 |
Exercisable warrants, shares (in Shares) | shares | 20,000 |
Exercisable warrants, weighted average exercise price | $ 0.25 |
Subsequent Events (Details)
Subsequent Events (Details) | 3 Months Ended |
Mar. 31, 2021USD ($)$ / sharesshares | |
Subsequent Events (Details) [Line Items] | |
Subsequent Event, Description | US Lighting Group, Inc created a new subsidiary called Fusion X Marine, LLC on April 12, 2021, domiciled in Wyoming, to sell boats and other related products to the recreational marine market. Fusion X Marine is 99% owned by the Company and 1% owned by Paul Spivak, the Company’s CEO. |
Common Stock [Member] | |
Subsequent Events (Details) [Line Items] | |
Issuance of shares for services | 50,000 |
Common Stock [Member] | Private Placement [Member] | |
Subsequent Events (Details) [Line Items] | |
Proceeds from issuance of share (in Dollars) | $ | $ 89,000 |
Common stock shares issued | 592,000 |
Shares Issued, Price Per Share (in Dollars per share) | $ / shares | $ 0.15 |