Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019USD ($)shares | |
Document And Entity Information | |
Entity Registrant Name | BioCrude Technologies USA, Inc. |
Entity Central Index Key | 0001690384 |
Document Type | 10-K |
Document Period End Date | Dec. 31, 2019 |
Entity File Number | 000-55818 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity a Well-known Seasoned Issuer | No |
Entity a Voluntary Filer | No |
Entity's Reporting Status Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | false |
Entity Small Business | true |
Entity Shell Company | false |
Entity Interactive Data Current | Yes |
Entity Incorporation, State or Country Code | NV |
Entity Public Float | $ | $ 0 |
Entity Common Stock, Shares Outstanding | shares | 50,483,836 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2019 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
CURRENT ASSETS | ||
Cash | $ 305 | $ 13,829 |
Property, plant and equipment | 23,752 | 27,145 |
TOTAL ASSETS | 24,057 | 40,974 |
CURRENT LIABILITIES | ||
Accounts payable and accrued liabilities | 28,238 | 4,253 |
Accounts payable and accrued liabilities - related parties | 200,436 | 83,301 |
Convertible notes | 33,334 | |
Loans payable | 155,503 | 136,354 |
TOTAL LIABILITIES | 384,177 | 257,242 |
STOCKHOLDERS' DEFICIT | ||
Common stock, $0.001 par value, 75,000,000 shares authorized, 50,483,836 and outstanding (December 31, 2018 - 50,430,342) | 50,484 | 50,430 |
Additional Paid in Capital | 7,617,783 | 7,472,119 |
Accumulated other comprehensive income | 28,671 | 28,631 |
Deficit | (8,055,454) | (7,766,354) |
TOTAL STOCKHOLDERS' DEFICIT ATTRIBUTABLE TO EQUITY SHAREHOLDERS' OF THE COMPANY | (358,516) | (215,174) |
NON-CONTROLLING INTEREST | (1,604) | (1,094) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ 24,057 | $ 40,974 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized | 75,000,000 | 75,000,000 |
Common stock, outstanding | 50,483,836 | 50,430,342 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
OPERATING EXPENSES | ||
General and administrative | $ 274,261 | $ 808,508 |
LOSS FROM OPERATIONS | (274,261) | (808,508) |
Accretion and Interest expense | (15,366) | (86,713) |
Income tax expense | ||
NET LOSS | (289,627) | (895,221) |
OTHER COMPREHENSIVE LOSS | ||
Translation to reporting currency | 57 | (4) |
TOTAL COMPREHENSIVE LOSS | (289,570) | (895,225) |
Net Loss Attributable to Equity shareholders of the Company | (289,100) | (894,128) |
Net Loss Attributable to Non-controlling interest | (527) | (1,093) |
NET LOSS | (289,627) | (895,221) |
Total Comprehensive Loss Attributable to Equity shareholders of the Company | (289,060) | (894,131) |
Total Comprehensive Loss Attributable to Non-controlling interest | (510) | (1,094) |
TOTAL COMPREHENSIVE LOSS | $ (289,570) | $ (895,225) |
Loss per share - basic and diluted (in dollars per share) | $ (0.01) | $ (0.02) |
Weighted average number of shares outstanding - basic and diluted (in shares) | 50,450,503 | 50,119,633 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Deficit | Total equity attributable to equity shareholders of the Company | Noncontrolling Interest | Total |
Beginning balance at Dec. 31, 2017 | $ 50,054 | $ 6,366,787 | $ 28,634 | $ (6,872,226) | $ (426,751) | $ (426,751) | |
Beginning balance (in shares) at Dec. 31, 2017 | 50,054,643 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock issued for services | $ 164 | 656,516 | 656,680 | 656,680 | |||
Stock issued for services (in shares) | 164,170 | ||||||
Stock issued for convertible debts | $ 206 | 338,916 | 339,122 | 339,122 | |||
Stock issued for convertible debts (in shares) | 205,529 | ||||||
Stock issued for cash | $ 6 | 23,994 | 24,000 | 24,000 | |||
Stock issued for cash (in shares) | 6,000 | ||||||
Beneficial conversion feature | 85,906 | 85,906 | 85,906 | ||||
Foreign currency translation loss | (3) | (3) | (1) | (4) | |||
Net loss | (894,128) | (894,128) | (1,093) | (895,221) | |||
End balance at Dec. 31, 2018 | $ 50,430 | 7,472,119 | 28,631 | (7,766,354) | (215,174) | (1,094) | (216,268) |
End balance (in shares) at Dec. 31, 2018 | 50,430,342 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock issued for services | $ 2 | 5,998 | 6,000 | 6,000 | |||
Stock issued for services (in shares) | 1,500 | ||||||
Stock issued for convertible debts | $ 40 | 59,960 | 60,000 | 60,000 | |||
Stock issued for convertible debts (in shares) | 40,000 | ||||||
Stock issued for cash | $ 12 | 46,372 | 46,384 | 46,384 | |||
Stock issued for cash (in shares) | 11,596 | ||||||
Beneficial conversion feature | 33,334 | 33,334 | 33,334 | ||||
Foreign currency translation loss | 40 | 40 | 17 | 57 | |||
Net loss | (289,100) | (289,100) | (527) | (289,627) | |||
End balance at Dec. 31, 2019 | $ 50,484 | $ 7,617,783 | $ 28,671 | $ (8,055,454) | $ (358,516) | $ (1,604) | $ (360,120) |
End balance (in shares) at Dec. 31, 2019 | 50,483,836 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
CASHFLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (289,627) | $ (895,221) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Accretion and interest expenses | 15,366 | 86,713 |
Amortization | 3,393 | |
Stock issued for services | 36,000 | 656,680 |
Forgiveness accrued interest | (1,302) | |
Foreign exchange | 3,708 | (15,570) |
Changes in operating assets and liabilities | ||
Prepaid expenses | ||
Accounts payable and accruals | 23,848 | (78,893) |
Accounts payable and accrued liabilities-related party | 118,436 | (171,030) |
Net cash used in operating activities | (90,177) | (417,321) |
CASH FLOWS FROM FINANCING ACTIVIITIES: | ||
Proceeds from issuance of convertible debt | 20,000 | 357,460 |
Proceeds from private placement | 46,384 | 24,000 |
Proceeds of loans payable | 10,212 | |
Net cash provided by financing activities | 76,596 | 381,460 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property, plant and equipment | (27,145) | |
Net cash used in investing activities | (27,145) | |
Effect of exchange rate changes on cash | 57 | (4) |
CHANGE IN CASH DURING THE YEAR | (13,524) | (63,010) |
CASH BEGINNING | 13,829 | 76,839 |
CASH ENDING | 305 | 13,829 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION | ||
Cash paid for income taxes | ||
Interest paid | ||
Noncash investing and financing activities: | ||
Beneficial conversion feature discount related to the issuance of convertible debt | 33,334 | 85,907 |
Conversion of convertible debt to common stock | 60,000 | 339,122 |
Stock issued for services | 36,000 | 656,680 |
Forgiveness accrued interest | $ 1,302 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION Nature of Operations Biocrude Technologies USA, Inc. (the “Company”) was incorporated under the laws of the State of Nevada on December 29, 2015. The Company’s principal business objective is to provide resource management expertise and services, catering to commercial, municipal, and industrial customers, primarily in the areas of solid waste management and recycling services. Going Concern The Company’s consolidated financial statements are prepared on a going concern basis in accordance with United States generally accepted accounting principles (“US GAAP”) which contemplate the realization of assets and discharge of liabilities and commitments in the normal course of business. The Company has not generated operating revenues to date, and has accumulated losses of $8,055,454 since inception. The Company has funded its operations through the issuance of capital stock, convertible debt, loans, and advances from related parties. Management plans to raise additional funds through equity and/or debt financings. There is no certainty that further funding will be available as needed. These factors raise substantial doubt about the ability of the Company to continue operating as a going concern. The Company’s ability to continue its operations as a going concern, realize the carrying value of its assets, and discharge its liabilities in the normal course of business is dependent upon its ability to raise new capital sufficient to fund its commitments and ongoing losses, and ultimately on generating profitable operations. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation and Principles of Consolidation These consolidated financial statements and related notes are presented in accordance with US GAAP and are presented in United States dollars. The accompanying consolidated financial statements incude the accounts of its 70% owned subsidiary, Biocrude Technologies (Hong Kong) Limited (“Biocrude HK”). All significant inter-company transactions and balances have been eliminated upon consolidation. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant areas requiring management’s estiamtes and assumptions include determining the fair value of transactions involving shares common stock. Actual results could differ from those estimates. Reclassifications Certain prior period amounts in the accompanying audited consolidated financial statements have been reclassified to conform to the current period’s presentation. These reclassifications had no effect on the results of operations or financial position for any period presented. Fair Value Measurements The Company adopted the provisions of ASC Topic 820, “Fair Value Measurements and Disclosures”, which defines fair value as used in numerous accounting pronouncements, establishes a framework for measuring fair value and expands disclosure of fair value measurements. The estimated fair value of certain financial instruments, including cash and cash equivalents, payables to related parties, and accounts payable and accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. ASC 820 defines fair value as the exchange price 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. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that be used to measure fair value: Level 1 - quoted prices in active markets for identical assets or Level 2 - quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 - inputs that are unobservable (for example cash flow modeling inputs based on assumptions) The Company’s financial assets and liabilities are subsequent measured at amortized cost, but their carrying amount approximates their fair value due to the short period of time until maturity. Foreign Currency Translation and Transaction The Company’s functional currency was the United Stated dollar. Biocrude HK maintain its accounting records in its local currency, the Hong Kong dollar. Foreign exchange gains and losses on the settlement of foreign currency transactions are included in foreign exchange expense. Except for translations of intercompany balances, all translations of monetary balances to the functional currency at the year-end exchange rate are included in foreign exchange expense. The translations of intercompany balances to the functional currency at the year end exchange rate are included in accumulated other comprehensive income or loss. The Company has not, to the date of these consolidated financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations. Cash and cash equivalents Cash and cash equivalents consist of cash balances and highly-liquid instruments with an original maturity of three months or less. As at December 31, 2019 and 2018, the Company does not have cash equivalents. Property, plant and equipment Property, plant and equipment are recorded at cost and depreciated to its estimated residual values using the straight-line method over its estimated useful lives of 8 yaers. Share-based Expense ASC 718, “ Compensation – Stock Compensation The Company accounts for stock-based compensation issued to non-employees and consultants in accordance with the provisions of ASC 505-50, “ Equity – Based Payments to Non-Employees.” Income Taxes Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income for the years in which those differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income statement in the period that includes the date of enactment. Additionally, ASC 740: Income Taxes, requires the Company to recognize in its financial statements the impact of a tax position that is more likely than not to be sustained upon examination based on the technical merits of the position. Earnings Per Share Information FASB ASC 260, “Earnings Per Share” provides for calculation of “basic” and “diluted” earnings per share. Basic earnings per share includes no dilution and is computed by dividing net loss available to common shareholders by the weighted average common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity similar to fully diluted earnings per share. Basic and diluted loss per share were the same, at the reporting dates, as there were no common stock equivalents outstanding. |
CONVERTIBLE NOTES
CONVERTIBLE NOTES | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE NOTES | NOTE 3 – CONVERTIBLE NOTES During the year ended December 31, 2019, the Company issued convertible notes for proceeds of $20,000 (2018 - $357,460). The convertible notes bear interest rates of 4% (2018 – 3% - 4%), are convertible into common stock of the Company at a fixed price of $1.50 per share anytime prior to its maturity date of December 31, 2019. On initial recognition, the Company recognized a beneifical conversion feature of $33,334 (2018 - $25,906). During the year ended December 31, 2019, the Company issued 40,000 common shares of the Company for conversion of 4 convertible notes, for a total amount of $60,000, with the accrued interest of same being waived as a part of the conversion settlement. All remaining unamortized beneficial conversion was recognized as an expenses upon the conversion settlement. As at December 31, 2019, there are no outstanding convertible loans. Details of convertible notes outstanding as at December 31, 2019 and 2018 is as follow: Maturity date Conversion Price De cember 31, 2019 December 31, 2018 December 31, 2019 $1.50 — 20.000 December 31, 2019 $1.50 — 20,000 Total principal outstanding — 40,000 Less: Beneficial conversion feature not amortized — (6,667) $ — $ 33,333 |
LOANS PAYABLE
LOANS PAYABLE | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
LOANS PAYABLE | NOTE 4 – LOANS PAYABLE As at December 31, 2019, the Company has loans payable of $134,566 (December 31, 2018 – $122,781) in principal and accrued interest of $20,937 (December 31, 2018 - $18,193) outstanding. These loans bear an interest rate of 4%, are unsecured and have extended maturities until December 31, 2021. Included in the balance of loans payable as at December 31, 2019, $47,888 (December 31, 2018 - $34,280) was due to a director of the Company. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 5 - INCOME TAXES The Company has established a valuation allowance against deferred tax assets due to the uncertainty surrounding the realization of such assets as evidenced by the cumulative losses from operations through December 31, 2019. Management periodically evaluates the recoverability of the deferred tax assets. At such time as it is determined that it is more likely than not that deferred assets are realizable, the valuation allowance will be reduced accordingly and recorded as a tax benefit. A reconciliation of income taxes at statutory rates is as follows: Years Ended December 31, 2019 2018 LOSS BEFORE INCOME TAXES $ (289,627) $ (895,221) Statutory tax rate 21% 21% Expected recovery at statutory rate (60,822) (187,996) Non-deductible expenses 2,100 18,040 Temporal differences 534 — Change in valuation allowance 58,188 169,956 Income tax expense $ — $ — The Company’s tax-effected deferred income tax assets and liabilities are estimated as follows: Years Ended December 31, 2019 2018 Non-capital losses $ (543,000) $ (485,000) Valuation allowance 543,000 485,000 Net deferred tax asset $ — $ — The Company has non-capital losses carried forward of approximately $2,588,000 which expire between 2028 and 2039. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 6 - RELATED PARTY TRANSACTIONS As at December 31, 2019, the “CEO” of the Company and a director had advanced the Company a cumulative $200,436 (2018 - $83,301) net of repayments for the payment of the Company’s operating expenses. These amounts are unsecured, without interest and payable on demand and are included in accounts payable and accrued liabilities – related parties. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of presentation and Principles of Consolidation | Basis of presentation and Principles of Consolidation These consolidated financial statements and related notes are presented in accordance with US GAAP and are presented in United States dollars. The accompanying consolidated financial statements incude the accounts of its 70% owned subsidiary, Biocrude Technologies (Hong Kong) Limited (“Biocrude HK”). All significant inter-company transactions and balances have been eliminated upon consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant areas requiring management’s estiamtes and assumptions include determining the fair value of transactions involving shares common stock. Actual results could differ from those estimates. |
Reclassifications | Reclassifications Certain prior period amounts in the accompanying audited consolidated financial statements have been reclassified to conform to the current period’s presentation. These reclassifications had no effect on the results of operations or financial position for any period presented. |
Fair Value Measurements | Fair Value Measurements The Company adopted the provisions of ASC Topic 820, “Fair Value Measurements and Disclosures”, which defines fair value as used in numerous accounting pronouncements, establishes a framework for measuring fair value and expands disclosure of fair value measurements. The estimated fair value of certain financial instruments, including cash and cash equivalents, payables to related parties, and accounts payable and accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. ASC 820 defines fair value as the exchange price 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. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that be used to measure fair value: Level 1 - quoted prices in active markets for identical assets or Level 2 - quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 - inputs that are unobservable (for example cash flow modeling inputs based on assumptions) The Company’s financial assets and liabilities are subsequent measured at amortized cost, but their carrying amount approximates their fair value due to the short period of time until maturity. |
Foreign Currency Translation and Transaction | Foreign Currency Translation and Transaction The Company’s functional currency was the United Stated dollar. Biocrude HK maintain its accounting records in its local currency, the Hong Kong dollar. Foreign exchange gains and losses on the settlement of foreign currency transactions are included in foreign exchange expense. Except for translations of intercompany balances, all translations of monetary balances to the functional currency at the year-end exchange rate are included in foreign exchange expense. The translations of intercompany balances to the functional currency at the year end exchange rate are included in accumulated other comprehensive income or loss. The Company has not, to the date of these consolidated financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consist of cash balances and highly-liquid instruments with an original maturity of three months or less. As at December 31, 2019 and 2018, the Company does not have cash equivalents. |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment are recorded at cost and depreciated to its estimated residual values using the straight-line method over its estimated useful lives of 8 years. |
Share-based Expense | Share-based Expense ASC 718, “ Compensation – Stock Compensation The Company accounts for stock-based compensation issued to non-employees and consultants in accordance with the provisions of ASC 505-50, “ Equity – Based Payments to Non-Employees.” |
Income Taxes | Income Taxes Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income for the years in which those differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income statement in the period that includes the date of enactment. Additionally, ASC 740: Income Taxes, requires the Company to recognize in its financial statements the impact of a tax position that is more likely than not to be sustained upon examination based on the technical merits of the position. |
Earnings Per Share Information | Earnings Per Share Information FASB ASC 260, “Earnings Per Share” provides for calculation of “basic” and “diluted” earnings per share. Basic earnings per share includes no dilution and is computed by dividing net loss available to common shareholders by the weighted average common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity similar to fully diluted earnings per share. Basic and diluted loss per share were the same, at the reporting dates, as there were no common stock equivalents outstanding. |
CONVERTIBLE NOTES (Tables)
CONVERTIBLE NOTES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of convertible notes | Details of convertible notes outstanding as at December 31, 2019 and 2018 is as follow: Maturity date Conversion Price De cember 31, 2019 December 31, 2018 December 31, 2019 $1.50 — 20.000 December 31, 2019 $1.50 — 20,000 Total principal outstanding — 40,000 Less: Beneficial conversion feature not amortized — (6,667) $ — $ 33,333 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of reconciliation of income taxes at statutory rates | A reconciliation of income taxes at statutory rates is as follows: Years Ended December 31, 2019 2018 LOSS BEFORE INCOME TAXES $ (289,627) $ (895,221) Statutory tax rate 21% 21% Expected recovery at statutory rate (60,822) (187,996) Non-deductible expenses 2,100 18,040 Temporal differences 534 — Change in valuation allowance 58,188 169,956 Income tax expense $ — $ — |
Schedule of deferred income tax assets and liabilities | The Company’s tax-effected deferred income tax assets and liabilities are estimated as follows: Years Ended December 31, 2019 2018 Non-capital losses $ (543,000) $ (485,000) Valuation allowance 543,000 485,000 Net deferred tax asset $ — $ — |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Details Narrative) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accumulated losses | $ (8,055,454) | $ (7,766,354) |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | ||
Cash equivalents | $ 0 | $ 0 |
Property, plant and equipment useful lives | 8 years |
CONVERTIBLE NOTES (Details)
CONVERTIBLE NOTES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Maturity date | Dec. 31, 2019 | |
Total principal outstanding | $ 40,000 | |
Less: Beneficial conversion feature not amortized | (6,667) | |
Convertible notes | $ 33,334 | |
Convertible Notes [Member] | ||
Maturity date | Dec. 31, 2019 | |
Conversion price (in dollars per share) | $ 1.50 | $ 1.50 |
Total principal outstanding | $ 20,000 | |
Convertible Notes Two [Member] | ||
Maturity date | Dec. 31, 2019 | |
Conversion price (in dollars per share) | $ 1.50 | $ 1.50 |
Total principal outstanding | $ 20,000 |
CONVERTIBLE NOTES (Details Narr
CONVERTIBLE NOTES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Proceeds from convertible notes | $ 20,000 | $ 357,460 |
Interest rate | 4.00% | |
Weighted average price of common stock | $ 1.50 | |
Maturity date | Dec. 31, 2019 | |
Beneficial Conversion Feature | $ 33,334 | $ 25,906 |
Debt Conversion, Converted Instrument, Shares Issued | 40,000 | |
Debt Conversion, Converted Instrument, Amount | $ 60,000 | |
Minimum [Member] | ||
Interest rate | 3.00% | |
Maximum [Member] | ||
Interest rate | 4.00% |
LOANS PAYABLE (Details Narrativ
LOANS PAYABLE (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Interest rate | 4.00% | |
Loans payable | $ 134,566 | $ 122,781 |
Maturity date | Dec. 31, 2019 | |
Accrued interest | $ 20,937 | 18,193 |
Director [Member] | ||
Loans payable | $ 47,888 | $ 34,280 |
Loans Payable [Member] | ||
Interest rate | 4.00% | |
Maturity date | Dec. 31, 2021 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
LOSS BEFORE INCOME TAXES | $ (289,627) | $ (895,221) |
Statutory tax rate | 21.00% | 21.00% |
Expected recovery at statutory rate | $ (60,822) | $ (187,996) |
Non-deductible expenses | 2,100 | 18,040 |
Temporal differences | 534 | |
Change in valuation allowance | 58,188 | 169,956 |
Income Tax Expense |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Non-capital losses | $ 543,000 | $ 485,000 |
Valuation allowance | (543,000) | (485,000) |
Net deferred tax asset |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Income Tax Disclosure [Abstract] | |
Non-capital losses carried forward | $ 2,588,000 |
Income tax expiration Period | Between 2028 and 2039 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Chief Executive Officer [Member] | ||
Advances from related parties | $ 200,436 | $ 83,301 |
Related Parties [Member] | Loans Payable [Member] | ||
Description of collateral | Loan is unsecured | |
Description of interest rate terms | Bears no interest | |
Description of repayment terms | Loan is repayable on demand |