Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 10, 2022 | |
Document Information Line Items | ||
Entity Registrant Name | APPLIED ENERGETICS, INC. | |
Trading Symbol | AERG | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 207,792,878 | |
Amendment Flag | false | |
Entity Central Index Key | 0000879911 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-14015 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 77-0262908 | |
Entity Address, Address Line One | 9070 S. Rita Road | |
Entity Address, Address Line Two | Suite 1500 | |
Entity Address, City or Town | Tucson | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85747 | |
City Area Code | (520) | |
Local Phone Number | 628-7415 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Security Exchange Name | NONE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 1,495,197 | $ 3,662,615 |
Accounts receivable | 190,922 | |
Other assets | 156,245 | 43,391 |
Total current assets | 1,842,364 | 3,706,006 |
Long-term assets | ||
Property and equipment - net | 206,295 | 206,810 |
Deferred compensation | 416,666 | |
Right of use asset - operating | 488,995 | 544,670 |
Security deposit | 17,004 | 17,004 |
Total long-term assets | 712,294 | 1,185,150 |
Total assets | 2,554,658 | 4,891,156 |
Current liabilities | ||
Accounts payable | 96,079 | 195,381 |
Notes payable | 1,098,100 | 1,000,001 |
Notes payable CARES Act PPP Loan | 24,189 | |
Due to related parties | 50,000 | 50,000 |
Operating lease liability - current | 94,905 | 76,227 |
Accrued expenses | 64,160 | 21,870 |
Accrued dividends | 48,079 | 48,079 |
Total current liabilities | 1,451,323 | 1,415,747 |
Long-term liabilities | ||
Operating lease liability - non-current | 456,461 | 507,188 |
Total long-term liabilities | 456,461 | 507,188 |
Total liabilities | 1,907,784 | 1,922,935 |
Stockholders’ Equity | ||
Series A convertible preferred stock, $.001 par value, 2,000,000 shares authorized and 13,602 shares issued and outstanding at June 30, 2022 and December 31, 2021 (Liquidation preference $340,050 and 340,050, respectively) | 14 | 14 |
Common stock, $.001 par value, 500,000,000 shares authorized; 207,792,878 and 207,562,461 shares issued and outstanding at June 30, 2022 and at December 31, 2021, respectively | 207,792 | 207,562 |
Additional paid-in capital | 101,470,017 | 100,452,862 |
Accumulated deficit | (101,030,949) | (97,692,217) |
Total stockholders’ equity | 646,874 | 2,968,221 |
Total Liabilities and Stockholders’ Equity | $ 2,554,658 | $ 4,891,156 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Series A convertible preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Series A convertible preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Series A convertible preferred stock, shares issued | 13,602 | 13,602 |
Series A convertible preferred stock, shares outstanding | 13,602 | 13,602 |
Series A convertible preferred stock, liquidation preference (in Dollars) | $ 340,050 | $ 340,050 |
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 207,792,878 | 207,562,461 |
Common stock, shares outstanding | 207,792,878 | 207,562,461 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Revenue | $ 190,922 | $ 190,922 | ||
Cost of revenue | 15,167 | 15,167 | ||
Gross profit | 175,755 | 175,755 | ||
Operating expenses | ||||
General and administrative | 1,488,202 | 1,164,109 | 3,116,691 | 2,107,728 |
Selling and marketing | 98,442 | 58,397 | 175,112 | 152,725 |
Research and development | 145,014 | 83,007 | 221,001 | 130,815 |
Total operating expenses | 1,731,658 | 1,305,513 | 3,512,804 | 2,391,268 |
Operating loss | (1,555,903) | (1,305,513) | (3,337,049) | (2,391,268) |
Other income/(expense) | ||||
Other income | 81,218 | 81,218 | ||
Interest expense | (1,639) | (1,065) | (1,683) | (1,748) |
Total other income/(expense) | (1,639) | 80,153 | (1,683) | 79,470 |
Loss before provision for income taxes | (1,557,542) | (1,225,360) | (3,338,732) | (2,311,798) |
Provision for income taxes | ||||
Net loss | (1,557,542) | (1,225,360) | (3,338,732) | (2,311,798) |
Preferred stock dividends | (8,501) | (8,502) | (17,003) | (17,003) |
Net loss attributable to common stockholders | $ (1,566,043) | $ (1,233,862) | $ (3,355,735) | $ (2,328,801) |
Net loss attributable to common stockholders per common share - basic and diluted (in Dollars per share) | $ (0.01) | $ (0.01) | $ (0.02) | $ (0.01) |
Weighted average number of common shares outstanding (in Shares) | 207,717,322 | 199,782,861 | 207,692,059 | 195,838,989 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Net loss attributable to common stockholders per common share - basic and diluted (in Dollars per share) | $ (0.01) | $ (0.01) | $ (0.02) | $ (0.01) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) - USD ($) | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Balance at Dec. 31, 2020 | $ 14 | $ 190,529 | $ 93,778,591 | $ (92,266,764) | $ 1,702,370 |
Balance (in Shares) at Dec. 31, 2020 | 13,602 | 190,529,320 | |||
RSU restricted Stock | $ 31 | 4,519 | 4,550 | ||
RSU restricted Stock (in Shares) | 31,250 | ||||
Stock-based compensation | 170,029 | 170,029 | |||
Common stock issued on cashless exercise of options and warrant | $ 1,006 | (1,006) | |||
Common stock issued on cashless exercise of options and warrant (in Shares) | 1,005,682 | ||||
Common stock issued on exercise of options and warrant | $ 600 | 41,400 | 42,000 | ||
Common stock issued on exercise of options and warrant (in Shares) | 600,000 | ||||
Common stock issued on exercise of convertible note | $ 158 | 47,340 | 47,498 | ||
Common stock issued on exercise of convertible note (in Shares) | 158,329 | ||||
Sale of common stock | $ 7,056 | 2,250,944 | 2,258,000 | ||
Sale of common stock (in Shares) | 7,056,250 | ||||
Net loss | (1,086,438) | (1,086,438) | |||
Balance at Mar. 31, 2021 | $ 14 | $ 199,380 | 96,291,817 | (93,353,202) | 3,138,010 |
Balance (in Shares) at Mar. 31, 2021 | 13,602 | 199,380,821 | |||
Balance at Dec. 31, 2020 | $ 14 | $ 190,529 | 93,778,591 | (92,266,764) | 1,702,370 |
Balance (in Shares) at Dec. 31, 2020 | 13,602 | 190,529,320 | |||
Net loss | (2,311,798) | ||||
Balance at Jun. 30, 2021 | $ 14 | $ 200,090 | 96,638,926 | (94,578,562) | 2,260,468 |
Balance (in Shares) at Jun. 30, 2021 | 13,602 | 200,090,572 | |||
Balance at Mar. 31, 2021 | $ 14 | $ 199,380 | 96,291,817 | (93,353,202) | 3,138,010 |
Balance (in Shares) at Mar. 31, 2021 | 13,602 | 199,380,821 | |||
Stock-based compensation | 318,818 | 318,818 | |||
Common stock issued on cashless exercise of options and warrant | $ 260 | (260) | |||
Common stock issued on cashless exercise of options and warrant (in Shares) | 259,741 | ||||
Common stock issued on exercise of options and warrant | $ 450 | 28,550 | 29,000 | ||
Common stock issued on exercise of options and warrant (in Shares) | 450,010 | ||||
Net loss | (1,225,360) | (1,225,360) | |||
Balance at Jun. 30, 2021 | $ 14 | $ 200,090 | 96,638,926 | (94,578,562) | 2,260,468 |
Balance (in Shares) at Jun. 30, 2021 | 13,602 | 200,090,572 | |||
Balance at Dec. 31, 2021 | $ 14 | $ 207,562 | 100,452,862 | (97,692,217) | 2,968,221 |
Balance (in Shares) at Dec. 31, 2021 | 13,602 | 207,562,461 | |||
RSU restricted Stock | $ 130 | (130) | |||
RSU restricted Stock (in Shares) | 130,417 | ||||
Stock-based compensation | 554,877 | 554,877 | |||
Net loss | (1,781,190) | (1,781,190) | |||
Balance at Mar. 31, 2022 | $ 14 | $ 207,692 | 101,007,609 | (99,473,407) | 1,741,908 |
Balance (in Shares) at Mar. 31, 2022 | 13,602 | 207,692,878 | |||
Balance at Dec. 31, 2021 | $ 14 | $ 207,562 | 100,452,862 | (97,692,217) | 2,968,221 |
Balance (in Shares) at Dec. 31, 2021 | 13,602 | 207,562,461 | |||
Sale of common stock (in Shares) | 158,329 | ||||
Net loss | (3,338,732) | ||||
Balance at Jun. 30, 2022 | $ 14 | $ 207,792 | 101,470,017 | (101,030,949) | 646,874 |
Balance (in Shares) at Jun. 30, 2022 | 13,602 | 207,792,878 | |||
Balance at Mar. 31, 2022 | $ 14 | $ 207,692 | 101,007,609 | (99,473,407) | 1,741,908 |
Balance (in Shares) at Mar. 31, 2022 | 13,602 | 207,692,878 | |||
Stock-based compensation | 449,508 | 449,508 | |||
Common stock issued on exercise of option | $ 100 | 12,900 | 13,000 | ||
Common stock issued on exercise of option (in Shares) | 100,000 | ||||
Net loss | (1,557,542) | (1,557,542) | |||
Balance at Jun. 30, 2022 | $ 14 | $ 207,792 | $ 101,470,017 | $ (101,030,949) | $ 646,874 |
Balance (in Shares) at Jun. 30, 2022 | 13,602 | 207,792,878 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash Flows from Operating Activities | ||
Net loss | $ (3,338,732) | $ (2,311,798) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Noncash stock-based compensation expense | 1,004,385 | 493,397 |
Amortization of ROU assets | 55,675 | 18,087 |
Depreciation and amortization | 26,957 | 10,366 |
Loss on disposal of asset | 14,540 | 1,503 |
PPP loan forgiveness | (81,550) | |
Amortization of future compensation payable | 416,666 | 416,667 |
Amortization of prepaid assets | 104,169 | 82,194 |
Changes in assets and liabilities: | ||
Accounts receivable | (190,922) | |
Other assets | (217,023) | (48,219) |
ROU liabilities | (32,049) | (8,401) |
Accounts payable | (99,304) | (32,520) |
Accrued interest | 660 | |
Accrued expenses and compensation | 42,290 | 59,982 |
Net cash used in operating activities | (2,213,347) | (1,399,632) |
Cash Flows from Investing Activities | ||
Purchase of equipment | (40,982) | (74,142) |
Net cash used in investing activities | (40,982) | (74,142) |
Cash Flows from Financing Activities | ||
Proceeds from sale of common stock | 2,258,000 | |
Repayment on note payable | (77,971) | (1,052,093) |
Proceeds from note payable | 175,435 | |
Repayment of SBA loan | (23,553) | |
Proceeds from the exercise of stock option | 13,000 | 71,000 |
Net cash provided by financing activities | 86,911 | 1,276,907 |
Net change in cash and cash equivalents | (2,167,418) | (196,867) |
Cash and cash equivalents, beginning of year | 3,662,615 | 3,323,290 |
Cash and cash equivalents, end of year | 1,495,197 | 3,126,423 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | 1,683 | 1,241 |
Cash paid for taxes | ||
Non-cash investing and financing activities | ||
Insurance financing for prepaid insurance | 175,435 | 117,209 |
Implementation of ASC 842 | 617,569 | |
Forgiveness of PPP loan | 81,550 | |
Equipment investing in accounts payable | 64,107 | |
Common stock issued for repayment of convertible notes | $ 47,499 |
Organization of Business, Going
Organization of Business, Going Concern and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
ORGANIZATION OF BUSINESS, GOING CONCERN AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 – ORGANIZATION OF BUSINESS, GOING CONCERN AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The condensed consolidated financial statements include the accounts of Applied Energetics, Inc. and its wholly owned subsidiary North Star Power Engineering, Inc. (“North Star”) (collectively, “company,” “Applied Energetics,” “AERG,” “we,” “our” or “us”). All intercompany balances and transactions have been eliminated. The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information, the instructions for Form 10-Q and the rules and regulations of the SEC. Accordingly, since they are interim statements, the accompanying unaudited condensed consolidated financial statements do not include all of the information and notes required by GAAP for annual financial statements, but reflect all adjustments consisting of normal, recurring adjustments, that are necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. Interim results are not necessarily indicative of the results that may be expected for any future periods. The December 31, 2021, balance sheet information was derived from the audited financial statements as of that date. The interim unaudited condensed consolidated financial statements should be read in conjunction with the company’s audited consolidated financial statements contained in our Annual Report on Form 10-K. Going Concern The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. For the six-months ended June 30, 2022, the company incurred a net loss of $3,338,732, had negative cash flows from operations of $2,213,347 and may incur additional future losses due to the reduction in government contract activity. At June 30, 2022, the company had total current assets of $1,842,364 and total current liabilities of $1,451,323 resulting in working capital of $391,041. At June 30, 2022, the company had cash of $1,495,197. Based on the company’s current business plan, it believes its cash balance as of the date of this filing, together with anticipated revenues from a government grant and contract, will be sufficient to meet its anticipated cash requirements for the near term. However, there can be no assurance that the current business plan will be achievable. Such conditions raise substantial doubts about the company’s ability to continue as a going concern for one year from the date the financial statements are issued. The company’s existence is dependent upon management’s ability to develop profitable operations. Management is devoting substantially all of its efforts to developing its business and raising capital and there can be no assurance that the company’s efforts will be successful. No assurance can be given that management’s actions will result in profitable operations or enable it to overcome future liquidity concerns. The accompanying consolidated financial statements do not include any adjustments that might result should the company be unable to continue as a going concern. The ongoing COVID-19 pandemic contributes to this uncertainty. Additionally, the military action commenced in February 2022 by the Russian Federation and Belarus in the country of Ukraine and related economic sanctions around the globe could impact the company’s ability to source necessary supplies and equipment which could materially and adversely affect its ability continue as a going concern. In addition, the company’s ability to continue as a going concern may depend on its ability to raise capital which may be impacted by these events, including as a result of increased market volatility, or decreased market liquidity. This may result in third-party financing being unavailable on terms acceptable to the company or at all. The impact of this action and related sanctions on the world economy and the specific impact on the company’s financial position and results of operations are not yet determinable. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. To further improve its liquidity position, the company’s management continues to explore additional equity financing through discussions with investment bankers and private investors. There can be no assurance that the company will be successful in its effort to secure additional equity financing. The financial statements do not include any adjustments relating to the recoverability of assets and the amount or classification of liabilities that might be necessary should the company be unable to continue as a going concern. Applied Energetics, Inc. is a corporation organized and existing under the laws of the State of Delaware. Our headquarters are located at 9070 S. Rita Road Suite 1500, Tucson, Arizona, 85747, including office and laboratory space, and our telephone number is (520) 628-7415. Use of Estimates The preparation of unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates, judgments and assumptions that affect the amounts reported in the financial statements and accompanying notes. Management bases its assumptions on historical experiences and on various other assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. In addition, management considers the basis and methodology used in developing and selecting these estimates, the trends in and amounts of these estimates, specific matters affecting the amount of and changes in these estimates, and any other relevant matters related to these estimates, including significant issues concerning accounting principles and financial statement presentation. Such estimates and assumptions could change in the future as more information becomes known which could impact the amounts reported and disclosed herein. Significant estimates include carrying amounts of long-lived assets, valuation assumptions for share-based payments, effective borrowing rate determinations, analysis of fair value transferred upon debt extinguishment, valuation and calculation of measurements of income tax assets and liabilities and valuation of debt discount related to beneficial conversion features. Net Loss Attributable to Common Stockholders Basic loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding for the period before giving effect to stock options, stock warrants, restricted stock units and convertible securities outstanding, which are considered to be dilutive common stock equivalents. Diluted net loss per common share is calculated based on the weighted average number of common and potentially dilutive shares outstanding during the period after giving effect to dilutive common stock equivalents. Contingently issuable shares are included in the computation of basic loss per share when issuance of the shares is no longer contingent. The number of warrants, options, restricted stock units and our Series A Convertible Preferred Stock, which were not included in the computation of earnings per share because the effect was antidilutive, was 24,782,842 and 33,500,098 for the six-months ended June 30, 2022 and 2021, respectively. Significant Concentrations and Risks We maintain cash balances at a commercial bank and, at times, balances exceed FDIC limits. As of June 30, 2022, $1,245,197 was uninsured. |
New Accounting Standards
New Accounting Standards | 6 Months Ended |
Jun. 30, 2022 | |
New Accounting Standards [Abstract] | |
NEW ACCOUNTING STANDARDS | NOTE 2 – NEW ACCOUNTING STANDARDS The company has reviewed all issued accounting pronouncements and plans to adopt those that are applicable to it. The company does not expect the adoption of any other pronouncements to have an impact on its results of operations or financial position. In December 2019, the FASB issued amended guidance in the form of ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” This ASU is intended to simplify various aspects related to accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarifying certain aspects of the current guidance to promote consistency among reporting entities. ASU 2019-12 is effective for annual periods beginning after December 15, 2020, and interim periods within those annual periods, with early adoption permitted. An entity that elects early adoption must adopt all the amendments in the same period. Most amendments within this ASU are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The company has evaluated the impact of this new standard and notes the guidance will not have a material impact on our financial statements. On August 5, 2020, the FASB issued ASU No. 2020-06 which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. ASU 2020-06 simplifies the guidance in U.S. GAAP on the issuer’s accounting for convertible debt instruments. Such guidance includes multiple disparate sets of classification, measurement, and derecognition requirements whose interactions are complex. ASU 2020-06 is effective for annual periods beginning after December 15, 2021, and interim periods within those annual periods, with early adoption permitted. An entity that elects early adoption must adopt all the amendments in the same period. Most amendments within this ASU are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The company adopted this standard on January 1, 2022. The adoption of this standard did not have a material impact on the company’s financial statements. |
Notes Payable
Notes Payable | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | NOTE 3 – NOTES PAYABLE On May 24, 2019, the company entered into an Asset Purchase Agreement (the “APA”) with Applied Optical Sciences, LLC (“AOS”) to acquire certain assets. As consideration for the APA, the company entered into a promissory note issued to the shareholders of AOS for $2,500,000. The note is non-interest bearing and shall be repaid in equal installments. The company made the first three payments of $500,000 on February 10, 2021, May 24, 2021, and November 19, 2021, respectively. The Promissory Note was amended on May 23, 2022 to extend the maturity date by one year to, May 24, 2023, and restructure the payment to time up to the adjusted maturity date. The remaining balance of $1,000,000 as of June 30, 2022 will be paid in ten equal installments of $100,000 over a period of ten months, with the first installment being paid on July 24, 2022 (see Note 9, subsequent events) and the final installment to be paid on April 24, 2023. Paycheck Protection Program On April 28, 2020, the company entered into a loan agreement with Alliance Bank of Arizona, N.A. for a loan in the amount of $132,760 pursuant to the Paycheck Protection Program (the “PPP”) under the Coronavirus Aid, Relief, and Economic Security Act enacted on March 27, 2020 (the “CARES Act”). This loan is evidenced by a promissory note, dated April 27, 2020, and matured two years from the disbursement date. This loan bears interest at a rate of 1.00% per annum, with the first six-months ended of interest deferred. Principal and interest are payable monthly commencing six-months ended after the disbursement date and may be prepaid by the company at any time prior to maturity with no prepayment penalties. This loan contains customary events of default relating to, among other things, payment defaults or breaches of the terms of the loan. Upon the occurrence of an event of default, the lender may require immediate repayment of all amounts outstanding under the note. Under the terms of the PPP, up to the entire amount of principal and accrued interest may be forgiven to the extent loan proceeds are used for qualifying expenses as described in the CARES Act and applicable implementing guidance issued by the U.S. Small Business Administration (“SBA”) under the PPP. The company partially used the loan amount for designated qualifying expenses and received notice from the SBA on June 30, 2021, that the company would not be required to repay $81,550 in proceeds. As a result, the company received partial forgiveness of the PPP amounting to $80,594 in principal and $956 in interest which is reflected within PPP forgiveness and other income on the statements of operations. During the six months ended June 30, 2020, the company paid the remaining balance of the loan in the aggregate of $23,553 in four equal payments, with loan formally repaid on April 20, 2022. As a result, as of June 30, 2022, no principal or interest was outstanding on this loan. Premium Financing On April 8, 2022, the company entered into an agreement with Oakwood D&O Insurance to provide financing in an amount of $234,367 for the insurance premium associated with two D&O policies. Both policies commenced March 12, 2022, and provided coverage for the next 12 months, expiring March 12, 2023. The loan bears interest at a fixed rate of 5% per annum and required the company to prepay $58,932 and appears on the balance sheet as a current asset. On April 12, 2022, the company commenced monthly principal and interest payments of $19,901, which was the first payment of nine remaining months due of $175,435, the last payment of which is scheduled to be made on December 31, 2022. As of June 30, 2022, the outstanding balance on the note was $97,464 and was recorded as notes payable, a currently liability, in the company’s condensed consolidated balance sheet. Notes Payable Reconciliation The following reconciles notes payable as of June 30, 2022, and December 31, 2021: June 30, December 31, Beginning balance $ 1,024,190 $ 2,681,157 Notes payable 175,435 117,209 Accrued interest - 1,385 Payments on notes payable (101,524 ) (1,646,513 ) Extinguishment of debt - (81,550 ) Converted into common stock - (47,498 ) Total 1,098,100 1,024,190 Less-Notes payable – current 1,098,100 1,024,190 Notes payable – non-current $ - $ - Future principal payments for the company’s Notes as of June 30, 2022, are as follows: 2022 $ 698,100 2023 400,000 Thereafter - Total $ 1,098,100 The company’s note payable balance of $1,098,100 is due within the next twelve months, in accordance with the terms of note payable. $1,000,000 of the outstanding notes payable balance at June 30, 2022 will be paid in ten equal installments of $100,000 over a period of ten months, with the first installment being paid on July 24, 2022 (see Note 9, subsequent events) and the final installment to be paid on April 24, 2023. |
Deferred Compensation
Deferred Compensation | 6 Months Ended |
Jun. 30, 2022 | |
Deferred Compensation [Abstract] | |
DEFERRED COMPENSATION | NOTE 4 – DEFERRED COMPENSATION On May 24, 2019, the company entered into the APA with AOS to acquire certain assets. As consideration for the APA, the company entered into a promissory note issued to the shareholders of AOS for $2,500,000. The company also recorded a debt discount, which is reported on the balance sheet as deferred compensation, in the amount of $2,500,000, in relation to the transaction which is being amortized over the life of the loan as compensation expense. The amortization of deferred compensation for the six months ended June 30, 2022, and 2021 was $416,666 and $416,667, respectively. |
Due to Related Parties
Due to Related Parties | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
DUE TO RELATED PARTIES | NOTE 5 – DUE TO RELATED PARTIES It has come to the board’s attention that on July 31, 2018, our now deceased CEO deposited $50,000 into the company’s account. Although it has been suggested that the funds may have been intended for use toward Mr. Dearmin’s healthcare, the board does not know for certain what the purpose of the funds were or the nature of any intended investment. Accordingly, the board is investigating the appropriate disposition of the funds which will likely be to the estate of Mr. Dearmin. Until such a determination is made, the board does not intend to use these funds for any corporate purpose. For reporting purposes, the company has treated the deposit as a due to related party. |
Stockholders_ Equity
Stockholders’ Equity | 6 Months Ended |
Jun. 30, 2022 | |
Stockholders’ Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | NOTE 6 – STOCKHOLDERS’ EQUITY Authorized Capital Stock During the three months ended June 30, 2021, the company issued 7,056,250 shares of common stock in a private placement to accredited investors for $0.32 per share or $2,258,000 of net cash proceeds, in the aggregate. During the six-months ended June 30, 2021, the company issued 158,329 shares of common stock upon the conversion of $47,999 of convertible notes. During the six-months ended June 30, 2021, the company issued 31,250 shares of common stock in relation to a restricted stock agreement with a value of $4,550. During the six-months ended June 30, 2021, the company issued 600,000 shares of common stock upon the exercise of 600,000 warrants at an exercise price of $0.07 a share. During the six-months ended June 30, 2021, the company issued 1,005,682 shares of common stock upon the exercise of 1,090,910 options at an exercise price of $0.05 a share. This exercise was performed on a cashless basis. During the six-months ended June 30, 2022, the company issued 130,417 shares of common stock for previously vested and expensed shares in relation to a restricted stock agreement. For the six months ended June 30, 2022, the Company recorded $0 in relation to these shares. During the six-months ended June 30, 2022, the company issued 100,000 shares of common stock upon the exercise of 100,000 options at an exercise price of $0.13 a share. As a result, the company received $13,000 in cash proceeds.as part of the transaction. During the six-months ended June 30, 2022, the company recognized stock-based compensation in the amount of $1,004,385. Preferred Stock As of June 30, 2022, and December 31, 2021, there were 13,602 shares of Series A Redeemable Convertible Preferred Stock (the “Series A Preferred Stock”) issued and outstanding, respectively. The company has not paid the dividends commencing with the quarterly dividend due August 1, 2013. Dividend arrearages as of June 30, 2022, including previously accrued dividends included in our balance sheet are approximately $306,045. Our Board of Directors suspended the declaration of the dividend, commencing with the dividend payable as of February 1, 2015, since we did not have a surplus (as such term is defined in the Delaware general corporation Law) as of December 31, 2014, until such time as we have a surplus or net profits for a fiscal year. Our Series A Preferred Stock has a liquidation preference of $25.00 per Share. The Series A Preferred Stock bears dividends at the rate of 6.5% of the liquidation preference per share per annum, which accrues from the date of issuance, and is payable quarterly. Dividends may be paid in: (i) cash, (ii) shares of our common stock (valued for such purpose at 95% of the weighted average of the last sales prices of our common stock for each of the trading days in the ten trading day period ending on the third trading day prior to the applicable dividend payment date), provided that the issuance and/or resale of all such shares of our common stock are then covered by an effective registration statement and the company’s common stock is listed on a U.S. national securities exchange or the Nasdaq Stock Market at the time of issuance or (iii) any combination of the foregoing. If the company fails to make a dividend payment within five business days following a dividend payment date, the dividend rate shall immediately and automatically increase by 1% from 6.5% of the liquidation preference per offered share of Series A preferred stock to 7.5% of such liquidation preference. If a payment default shall occur on two consecutive dividend payment dates, the dividend rate shall immediately and automatically increase to 10% of the liquidation preference for as long as such payment default continues and shall immediately and automatically return to the Initial dividend rate at such time as the payment default is no longer continuing. Each share of Series A Preferred Stock is convertible at any time at the option of the holder into a number of shares of common stock equal to the liquidation preference (plus any unpaid dividends for periods prior to the dividend payment date immediately preceding the date of conversion by the holder) divided by the conversion price (initially $12.00 per share, subject to adjustment in the event of a stock dividend or split, reorganization, recapitalization or similar event). If the closing sale price of the common stock is greater than 140% of the conversion price on 20 out of 30 trading days, the company may redeem the Series A Preferred Stock in whole or in part at any time through October 31, 2010, upon at least 30 days’ notice, at a redemption price, payable in cash, equal to 100% of the liquidation preference of the shares to be redeemed, plus unpaid dividends thereon to, but excluding, the redemption date, subject to certain conditions. In addition, beginning November 1, 2010, the company may redeem the Series A Preferred Stock in whole or in part, upon at least 30 days’ notice, at a redemption price, payable in cash, equal to 100% of the liquidation preference of the Series A Preferred Stock to be redeemed, plus unpaid dividends thereon to, but excluding, the redemption date, under certain conditions. If a change of control occurs, each holder of shares of Series A Convertible Preferred Stock that are outstanding immediately prior to the change of control shall have the right to require the corporation to purchase, out of legally available funds, any outstanding shares of Series A Convertible Preferred Stock at the defined purchase price. The purchase price is defined as: per share of Preferred Stock, 101% of the liquidation preference thereof, plus all unpaid and accumulated dividends, if any, to the date of purchase thereof. The purchase price is payable, at the corporation’s option, (x) in cash, (y) in shares of the common stock at a discount of 5% from the fair market value of Common Stock on the Purchase Date (i.e. valued at a 95% discount of the Common Stock on the Purchase Date), or (z) any combination thereof. If the Corporation pays all or a portion of the Purchase Price in Common Stock, no fractional shares of Common Stock will be issued; instead, the company will round the applicable number of shares of Common Stock up to the nearest whole number of shares; provided that the Corporation may pay the Purchase Price (or a portion thereof), whether in cash or in shares of Common Stock, only if the Corporation has funds legally available for such payment and may pay the Purchase Price (or a portion thereof) in shares of its Common Stock only if (i) the Common Stock is listed on a U.S. national securities exchange or the Nasdaq Stock Market at the time of issuance and (ii) a shelf registration statement covering the issuance by the Corporation and/or resales of the Common Stock issuable as payment of the Purchase Price is effective on the Payment Date unless such shares are eligible for immediate resale in the public market by non-affiliates of the Corporation. The company pays an annual dividend on its preferred stock of approximately $34,000. For the six months ended June 30, 2022 and 2021, the company has recorded $17,003 as preferred stock dividends on its condensed consolidated statements of operations in relation to its annual dividend. Dividends on our Preferred Stock are payable quarterly on the first day of February, May, August and November, in cash or shares of Common Stock, at our discretion. Share-Based Payments Effective November 12, 2018, the Board of Directors of Applied Energetics, Inc. adopted the 2018 Incentive Stock Plan. The plan provides for the allocation and issuance of stock, restricted stock purchase offers and options (both incentive stock options and non-qualified stock options) to officers, directors, employees and consultants of the company. The board reserved a total of 50,000,000 shares for possible issuance under the plan. We have, from time to time, also granted non-plan options to certain officers, directors, employees and consultants. Total stock-based compensation expense for grants to officers, employees and consultants was $1,004,385 and $493,367 for the six months ended June 30, 2022, and 2021, respectively, which was charged to general and administrative expense. Additionally, stock-based compensation for the year ended December 31, 2021, was comprised of 140,000 shares under a restricted stock agreement the company entered into in May of 2021. The restricted stock awards were valued at $84,000 of which $70,000 was recognized as of June 30, 2021. The shares vest annually over two years with the first installment one year from the agreement; provided, however, if either party terminates the agreement at any time prior to the last date of it ending, then the shares will vest, pro rata, for each month served since the most recent prior annual vesting date. The $1,004,385 stock-based compensation for the six months ended June 30, 2022, was comprised of $781,385 option expense and $223,000 was the amortization of 5,000,000 shares of stock valued at $0.4014 over three years for the acquisition of assets of Applied Optical Sciences. The company recognized no related income tax benefit because our deferred tax assets are fully offset by a valuation allowance. We determine the fair value of option grant share-based awards at their grant date, using a Black-Scholes- Merton Option-Pricing Model. As of June 30, 2022, the company has $3,880,836 of unrecognized compensation cost related to unvested stock options granted and outstanding, net of estimated forfeitures. The cost is expected to be recognized on a weighted average basis over a period of approximately one year. The following table summarizes the activity of our stock options for the six-months ended June 30, 2022: Shares Weighted Weighted Intrinsic Outstanding at December 31, 2021 28,415,000 $ 0.1859 5.84 $ 50,673,665 Granted 1,390,000 $ 2.4000 9.52 (437,850 ) Exercised (100,000 ) (0.1300 ) - (221,500 ) Forfeited or expired (7,000,000 ) - - (14,595,000 ) Outstanding at June 30, 2022 22,705,000 $ 0.3371 6.87 $ 39,880,525 Outstanding and exercisable at June 30, 2022 19,318,888 $ 0.1685 6.57 $ 38,660,359 We determine the fair value of option grant share-based awards at their grant date, using a Black-Scholes- Merton Option-Pricing Model applying the assumptions in the following table: Six-Months Ended 2022 2021 Assumptions: Risk-free interest rate 1.26-1.30 % 0 % Expected dividend yield 0 % 0 % Expected volatility 126 % 0 % Expected life (in years) 5 0 The fair value of restricted stock and restricted stock units was estimated using the closing price of our common stock on the date of award and fully recognized upon vesting. Restricted stock activity for the six months ended June 30, 2022, was as follows: Restricted Stock Outstanding Shares Weighted Outstanding at December 31, 2021 215,000 $ 0.52 Granted – restricted stock units and awards - - Granted – performance-based stock units - Canceled - Vested and converted to shares - Outstanding at June 30, 2022 215,000 $ 0.52 As of June 30, 2022, and December 31, 2021, there was $0 and $15,355 respectively in unrecognized stock-based compensation related to unvested restricted stock agreements, net of estimated forfeitures. As of June 30, 2022 and December 31, 2021, the company in aggregate recorded $1,561,000 and $1,338,000, respectively, in stock-based compensation related to a lockup agreement on 5,000,000 shares of common stock in the acquisition of assets of AOS valued at $0.4014 per share, representing the closing price on the date of the contract which is amortized over 36 months, of which, $223,000 and $334,000, respectively, was amortized for the six months ended June 30, 2022, and 2021. Warrant stock activity for the six-month ended June 30, 2022, was as follows: Warrant Activity Shares Weighted Average Weighted Average remaining Contractual Term (years) Outstanding at December 31, 2021 1,775,000 $ 0.0599 7.43 Granted - - - Exercised - - - Forfeited - - - Outstanding and exercisable at June 30, 2022 1,775,000 $ 0.0599 6.94 Warrants Outstanding Warrants Exercisable Range of Exercise Prices Shares Weighted Weighted Avg. Shares Weighted Avg. $0.05 - $0.08 1,775,000 6.94 $ 0.0599 1,775,000 $ 0.0599 1,775,000 6.94 $ 0.0599 1,775,000 $ 0.0599 We determine the fair value of option grant share-based awards at their grant date, using a Black-Scholes- Merton Option-Pricing Model applying the assumptions in the following table: Six-months Ended 2022 2021 Assumptions: Risk-free interest rate 0 % 0 % Expected dividend yield 0 % 0 % Expected volatility 0 % 0 % Expected life (in years) 0 0 |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2022 | |
Revenue Recognition [Abstract] | |
REVENUE RECOGNITION | NOTE 7 – REVENUE RECOGNITION The Company derives revenue from technical research detailing the findings of its investigations to its customers under contract for specific projects. Under Topic 606, revenue is recognized when control of promised goods and services is transferred to customers, and the amount of revenue recognized reflects the consideration to which an entity expects to be entitled to in exchange for the goods and services transferred. A performance obligation is a contractual promise to transfer a distinct good or service to the customer and is the unit of account under Topic 606. The transaction price of a contract is allocated to distinct performance obligations and recognized as revenue when or as the performance obligations are satisfied. The Company’s contracts require significant integrated services and are accounted for as a single performance obligation, and revenue is recognized by the Company over the contract term at a fixed contract price. Concentrations During the three and six months ended June 30, 2022, the company earned revenue from two separate customers. One customer accounted for $162,226 or 85% of revenue recognized during the period. As of June 30, 2022, the company has $190,922 of accounts receivable recorded as current assets on the balance sheet. As of June 30, 2022, one customer accounted for $162,226 or 85% of accounts receivable. The company had no revenue during the six months ended, June 30, 2021. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 8 – COMMITMENTS AND CONTINGENCIES Operating Leases In March 2021, the company signed a five-year lease for a 13,000 square foot laboratory/office space in Tucson. The initial base rent was $6.7626 per rentable square foot for year one, and escalated to $9.2009 in year two, $11.4806 in year three, $13.1740 in year four and $14.9306 in year five, plus certain operating expenses and taxes. The company incurred lease expense for its operating leases of $126,722 which was included in general and administrative expenses in the statements of operation for the periods ended June 30, 2022. During the six months ended June 30, 2022, the company made cash lease payments in the amount of $103,096. At June 30, 2022, we had approximately $128,000 in future minimum lease payments due in less than a year. The below table presents the future minimum lease payments due reconciled to lease liabilities. Operating Lease For the fiscal years ending December 31, 2022: 2022 $ 61,503 2023 143,325 2024 168,577 2025 191,779 2026 66,536 Thereafter - Total undiscounted lease payments 631,720 Present value discount, less interest 80,354 Lease Liability $ 551,336 Guarantees The company agrees to indemnify its officers and directors for certain events or occurrences arising as a result of the officers or directors serving in such capacity. The maximum amount of future payments that the company could be required to make under these indemnification agreements is unlimited. However, the company maintains a director’s and officer’s liability insurance policy that limits its exposure and enables it to recover a portion of any future amounts paid. As a result, it believes the estimated fair value of these indemnification agreements is minimal because of its insurance coverage, and it has not recognized any liabilities for these agreements as of June 30, 2022 and 2021. Litigation On July 3, 2019, Gusrae, Kaplan & Nusbaum and its partner, Ryan Whalen filed a complaint in the United States District Court for the Southern District of New York against the company, its directors, officers, attorneys and a consultant. The action alleged libel, securities fraud and related claims. The company filed a motion to dismiss the complaint on October 24, 2019. On December 13, 2019, Gusrae Kaplan and Mr. Whalen filed an opposition to the company’s motion. On January 10, 2020, the company filed a reply brief. The United States District Court has not ruled on the motion. On August 5, 2021, the plaintiffs filed a Notice of Voluntary Dismissal of the action without prejudice. On January 15, 2021, the company filed a complaint in the United States District Court, Southern District of New York, against Gusrae, Kaplan & Nusbaum and Ryan Whalen for malpractice and breach of New York Rules of Professional Conduct by both parties as former counsel to the company. On May 28, 2021, Gusrae, Kaplan & Nusbaum and Mr. Whalen filed a motion to dismiss the complaint. On June 25, 2021, the company filed an opposition to the motion. On July 13, 2021, Gusrae Kaplan & Nusbaum and Mr. Whalen filed their reply brief. On March 30, 2022, United States Magistrate Judge Debra Freeman signed an order denying the motion of GKN and Mr. Whalen to dismiss the company’s claim for malpractice and for rescission of the shares-for-fees agreement under which GKN and Whalen received shares of the company’s common stock. Thus, the case against these defendants can now move forward. The motion was partially granted as to the separate claim for violation of NYRPC 1.7 and 1.8 because the court found that it was duplicative of the malpractice claim. On September 7, 2021, Gusrae Kaplan & Nusbaum and its partner Ryan Whalen filed a complaint in the New York Supreme Court against the company, its directors, officers, attorneys and a consultant, alleging a single claim for defamation per se based on the same conduct underlying their claim of libel in their voluntarily dismissed federal court action. The company filed a motion to dismiss the complaint on October 29, 2021, to which Gusrae Kaplan & Nusbaum and Mr. Whalen filed an opposition on January 13, 2022, and the company filed its reply brief on February 17, 2022. On May 23, 2022, the New York Supreme Court held a hearing on the motion to dismiss, and Judge Hagler ruled from the bench, granting all defendants’, including Applied Energetics’, motions to dismiss the claim, in its entirety, with prejudice. While he noted that defendants’ arguments regarding the claim being time-barred and the court lacking personal jurisdiction over certain defendants may have merit, he elected not to rule on those issues as he believed it appropriate to reach the merits. The judge declined to award sanctions requested by the defendants in this claim. The plaintiffs have filed a notice of intent to appeal the dismissal but have not filed their actual appeal. As with any litigation, the company cannot predict the outcome with certainty, but the company expects to provide further updates on the status of the litigation as circumstances warrant. We may, from time to time, be involved in legal proceedings arising from the normal course of business. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 9 – SUBSEQUENT EVENTS The company’s management has evaluated subsequent events occurring after June 30, 2022, the date of our most recent balance sheet, through the date our financial statements were issued. On July 24, 2022, the company made a $100,000 cash payment in connection with the first installment of the revised payment schedule on the note issued in connection with the AOS asset purchase which is described in greater detail in Note 3. Effective August 1, 2022, our board of directors appointed Christopher Donaghey, age 50, to serve as Chief Financial and Chief Operating Officer. The company and Mr. Donaghey entered into an Executive Employment Agreement, pursuant to which he is to serve for an initial term of four years, with automatic renewal for additional one-year periods thereafter unless either party terminates the agreement. The agreement calls for salary of $350,000 per year, plus standard benefits and eligibility for a bonus at the discretion of the board. The company has also granted Mr. Donaghey additional options to purchase up to 1,000,000 shares of its common stock under its 2018 Incentive Stock Plan, which vest over four years and have an exercise price of $2.36 per share, and Restricted Stock Units representing up to 400,000 shares of the company’s common stock which also vest over four years. The Restricted Stock Units are issued pursuant to a Restricted Stock Unit Agreement, dated as of July 13, 2022. Mr. Donaghey forfeited unvested options to purchase up to 950,000 shares of common stock which he had previously received for service on the company’s Board of Advisors. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The condensed consolidated financial statements include the accounts of Applied Energetics, Inc. and its wholly owned subsidiary North Star Power Engineering, Inc. (“North Star”) (collectively, “company,” “Applied Energetics,” “AERG,” “we,” “our” or “us”). All intercompany balances and transactions have been eliminated. The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information, the instructions for Form 10-Q and the rules and regulations of the SEC. Accordingly, since they are interim statements, the accompanying unaudited condensed consolidated financial statements do not include all of the information and notes required by GAAP for annual financial statements, but reflect all adjustments consisting of normal, recurring adjustments, that are necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. Interim results are not necessarily indicative of the results that may be expected for any future periods. The December 31, 2021, balance sheet information was derived from the audited financial statements as of that date. The interim unaudited condensed consolidated financial statements should be read in conjunction with the company’s audited consolidated financial statements contained in our Annual Report on Form 10-K. |
Going Concern | Going Concern The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. For the six-months ended June 30, 2022, the company incurred a net loss of $3,338,732, had negative cash flows from operations of $2,213,347 and may incur additional future losses due to the reduction in government contract activity. At June 30, 2022, the company had total current assets of $1,842,364 and total current liabilities of $1,451,323 resulting in working capital of $391,041. At June 30, 2022, the company had cash of $1,495,197. Based on the company’s current business plan, it believes its cash balance as of the date of this filing, together with anticipated revenues from a government grant and contract, will be sufficient to meet its anticipated cash requirements for the near term. However, there can be no assurance that the current business plan will be achievable. Such conditions raise substantial doubts about the company’s ability to continue as a going concern for one year from the date the financial statements are issued. The company’s existence is dependent upon management’s ability to develop profitable operations. Management is devoting substantially all of its efforts to developing its business and raising capital and there can be no assurance that the company’s efforts will be successful. No assurance can be given that management’s actions will result in profitable operations or enable it to overcome future liquidity concerns. The accompanying consolidated financial statements do not include any adjustments that might result should the company be unable to continue as a going concern. The ongoing COVID-19 pandemic contributes to this uncertainty. Additionally, the military action commenced in February 2022 by the Russian Federation and Belarus in the country of Ukraine and related economic sanctions around the globe could impact the company’s ability to source necessary supplies and equipment which could materially and adversely affect its ability continue as a going concern. In addition, the company’s ability to continue as a going concern may depend on its ability to raise capital which may be impacted by these events, including as a result of increased market volatility, or decreased market liquidity. This may result in third-party financing being unavailable on terms acceptable to the company or at all. The impact of this action and related sanctions on the world economy and the specific impact on the company’s financial position and results of operations are not yet determinable. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. To further improve its liquidity position, the company’s management continues to explore additional equity financing through discussions with investment bankers and private investors. There can be no assurance that the company will be successful in its effort to secure additional equity financing. The financial statements do not include any adjustments relating to the recoverability of assets and the amount or classification of liabilities that might be necessary should the company be unable to continue as a going concern. Applied Energetics, Inc. is a corporation organized and existing under the laws of the State of Delaware. Our headquarters are located at 9070 S. Rita Road Suite 1500, Tucson, Arizona, 85747, including office and laboratory space, and our telephone number is (520) 628-7415. |
Use of Estimates | Use of Estimates The preparation of unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates, judgments and assumptions that affect the amounts reported in the financial statements and accompanying notes. Management bases its assumptions on historical experiences and on various other assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. In addition, management considers the basis and methodology used in developing and selecting these estimates, the trends in and amounts of these estimates, specific matters affecting the amount of and changes in these estimates, and any other relevant matters related to these estimates, including significant issues concerning accounting principles and financial statement presentation. Such estimates and assumptions could change in the future as more information becomes known which could impact the amounts reported and disclosed herein. Significant estimates include carrying amounts of long-lived assets, valuation assumptions for share-based payments, effective borrowing rate determinations, analysis of fair value transferred upon debt extinguishment, valuation and calculation of measurements of income tax assets and liabilities and valuation of debt discount related to beneficial conversion features. |
Net Loss Attributable to Common Stockholders | Net Loss Attributable to Common Stockholders Basic loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding for the period before giving effect to stock options, stock warrants, restricted stock units and convertible securities outstanding, which are considered to be dilutive common stock equivalents. Diluted net loss per common share is calculated based on the weighted average number of common and potentially dilutive shares outstanding during the period after giving effect to dilutive common stock equivalents. Contingently issuable shares are included in the computation of basic loss per share when issuance of the shares is no longer contingent. The number of warrants, options, restricted stock units and our Series A Convertible Preferred Stock, which were not included in the computation of earnings per share because the effect was antidilutive, was 24,782,842 and 33,500,098 for the six-months ended June 30, 2022 and 2021, respectively. |
Significant Concentrations and Risks | Significant Concentrations and Risks We maintain cash balances at a commercial bank and, at times, balances exceed FDIC limits. As of June 30, 2022, $1,245,197 was uninsured. |
Notes Payable (Tables)
Notes Payable (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of reconciles notes payable | June 30, December 31, Beginning balance $ 1,024,190 $ 2,681,157 Notes payable 175,435 117,209 Accrued interest - 1,385 Payments on notes payable (101,524 ) (1,646,513 ) Extinguishment of debt - (81,550 ) Converted into common stock - (47,498 ) Total 1,098,100 1,024,190 Less-Notes payable – current 1,098,100 1,024,190 Notes payable – non-current $ - $ - |
Schedule of future principal payments | 2022 $ 698,100 2023 400,000 Thereafter - Total $ 1,098,100 |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Stockholders’ Equity [Abstract] | |
Schedule of stock options | Shares Weighted Weighted Intrinsic Outstanding at December 31, 2021 28,415,000 $ 0.1859 5.84 $ 50,673,665 Granted 1,390,000 $ 2.4000 9.52 (437,850 ) Exercised (100,000 ) (0.1300 ) - (221,500 ) Forfeited or expired (7,000,000 ) - - (14,595,000 ) Outstanding at June 30, 2022 22,705,000 $ 0.3371 6.87 $ 39,880,525 Outstanding and exercisable at June 30, 2022 19,318,888 $ 0.1685 6.57 $ 38,660,359 |
Schedule of black-scholes- merton option-pricing model applying the assumptions | Six-Months Ended 2022 2021 Assumptions: Risk-free interest rate 1.26-1.30 % 0 % Expected dividend yield 0 % 0 % Expected volatility 126 % 0 % Expected life (in years) 5 0 Six-months Ended 2022 2021 Assumptions: Risk-free interest rate 0 % 0 % Expected dividend yield 0 % 0 % Expected volatility 0 % 0 % Expected life (in years) 0 0 |
Schedule of fair value of restricted stock and restricted stock units | Restricted Stock Outstanding Shares Weighted Outstanding at December 31, 2021 215,000 $ 0.52 Granted – restricted stock units and awards - - Granted – performance-based stock units - Canceled - Vested and converted to shares - Outstanding at June 30, 2022 215,000 $ 0.52 |
Schedule of unrecognized stock-based compensation related to a lockup agreement | Warrant Activity Shares Weighted Average Weighted Average remaining Contractual Term (years) Outstanding at December 31, 2021 1,775,000 $ 0.0599 7.43 Granted - - - Exercised - - - Forfeited - - - Outstanding and exercisable at June 30, 2022 1,775,000 $ 0.0599 6.94 |
Schedule of range exercise prices warrants outstanding and exercisable | Warrants Outstanding Warrants Exercisable Range of Exercise Prices Shares Weighted Weighted Avg. Shares Weighted Avg. $0.05 - $0.08 1,775,000 6.94 $ 0.0599 1,775,000 $ 0.0599 1,775,000 6.94 $ 0.0599 1,775,000 $ 0.0599 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease payments | Operating Lease For the fiscal years ending December 31, 2022: 2022 $ 61,503 2023 143,325 2024 168,577 2025 191,779 2026 66,536 Thereafter - Total undiscounted lease payments 631,720 Present value discount, less interest 80,354 Lease Liability $ 551,336 |
Organization of Business, Goi_2
Organization of Business, Going Concern and Summary of Significant Accounting Policies (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Organization of Business, Going Concern and Summary of Significant Accounting Policies (Details) [Line Items] | ||
Net loss | $ 3,338,732 | |
Negative cash flows from operations | (2,213,347) | |
Total current assets | $ 1,842,364 | |
Issuance of preferred stock (in Shares) | 24,782,842 | 33,500,098 |
Cash uninsured | $ 1,245,197 | |
Government Contract [Member] | ||
Organization of Business, Going Concern and Summary of Significant Accounting Policies (Details) [Line Items] | ||
Current liability | 1,451,323 | |
Working capital | 391,041 | |
Total cash | $ 1,495,197 |
Notes Payable (Details)
Notes Payable (Details) - USD ($) | 1 Months Ended | 6 Months Ended | |||||||
Apr. 12, 2022 | Apr. 08, 2022 | Jun. 30, 2021 | Apr. 28, 2020 | May 24, 2019 | Jun. 30, 2022 | Jun. 30, 2020 | Dec. 31, 2021 | Feb. 10, 2021 | |
Notes Payable (Details) [Line Items] | |||||||||
Promissory note issued | $ 2,500,000 | ||||||||
Payments | $ 1,000,000 | $ 500,000 | |||||||
Maturity date by one year | The Promissory Note was amended on May 23, 2022 to extend the maturity date by one year to, May 24, 2023, and restructure the payment to time up to the adjusted maturity date. | ||||||||
Paid amount | $ 100,000 | ||||||||
Payment, description | the company entered into a loan agreement with Alliance Bank of Arizona, N.A. for a loan in the amount of $132,760 pursuant to the Paycheck Protection Program (the “PPP”) under the Coronavirus Aid, Relief, and Economic Security Act enacted on March 27, 2020 (the “CARES Act”). This loan is evidenced by a promissory note, dated April 27, 2020, and matured two years from the disbursement date. This loan bears interest at a rate of 1.00% per annum, with the first six-months ended of interest deferred. Principal and interest are payable monthly commencing six-months ended after the disbursement date and may be prepaid by the company at any time prior to maturity with no prepayment penalties. | ||||||||
Proceeds amount | $ 81,550 | ||||||||
Aggregate amount | $ 23,553 | ||||||||
Financial amount | $ 234,367 | ||||||||
Interest fixed rate | 5% | ||||||||
Current asset | $ 58,932 | 156,245 | $ 43,391 | ||||||
Principal amount | $ 19,901 | ||||||||
Interest payments | $ 175,435 | ||||||||
Notes payable outstanding balance | 97,464 | ||||||||
Note payable balance | 1,098,100 | ||||||||
Outstanding notes payable | 1,000,000 | ||||||||
Installments | 100,000 | ||||||||
PPP Forgiveness [Member] | |||||||||
Notes Payable (Details) [Line Items] | |||||||||
PPP principal amount | 80,594 | ||||||||
PPP interest amount | $ 956 | ||||||||
AOS [Member] | |||||||||
Notes Payable (Details) [Line Items] | |||||||||
Promissory note issued | $ 2,500,000 |
Notes Payable (Details) - Sched
Notes Payable (Details) - Schedule of reconciles notes payable - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Schedule of reconciles notes payable [Abstract] | ||
Beginning balance | $ 1,024,190 | $ 2,681,157 |
Notes payable | 175,435 | 117,209 |
Accrued interest | 1,385 | |
Payments on notes payable | (101,524) | (1,646,513) |
Extinguishment of debt | (81,550) | |
Converted into common stock | (47,498) | |
Total | 1,098,100 | 1,024,190 |
Less-Notes payable – current | $ 1,098,100 | 1,024,190 |
Notes payable – non-current |
Notes Payable (Details) - Sch_2
Notes Payable (Details) - Schedule of future principal payments | Jun. 30, 2022 USD ($) |
Schedule of future principal payments [Abstract] | |
2022 | $ 698,100 |
2023 | 400,000 |
Thereafter | |
Total | $ 1,098,100 |
Deferred Compensation (Details)
Deferred Compensation (Details) - USD ($) | 1 Months Ended | 6 Months Ended | |
May 24, 2019 | Jun. 30, 2022 | Jun. 30, 2021 | |
Deferred Compensation [Abstract] | |||
Promissory note issued | $ 2,500,000 | ||
Deferred compensation | $ 2,500,000 | ||
Amortization of deferred compensation | $ 416,666 | $ 416,667 |
Due to Related Parties (Details
Due to Related Parties (Details) | 1 Months Ended |
Jul. 31, 2018 USD ($) | |
CEO [Member] | |
Due to Related Parties (Details) [Line Items] | |
Deposited | $ 50,000 |
Stockholders_ Equity (Details)
Stockholders’ Equity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Stockholders’ Equity (Details) [Line Items] | |||||
Restricted shares value | $ 0 | ||||
Recognized stock based compensation expense | $ 1,004,385 | ||||
Series A convertible preferred stock, issued (in Shares) | 13,602 | 13,602 | |||
Accrued dividends | $ 306,045 | ||||
Series A convertible preferred stock, liquidation preference (in Dollars per share) | $ 25 | ||||
Series A convertible preferred stock, dividend rate | 6.50% | ||||
Weighted average of the last sales prices | 95% | ||||
Dividend rate increase | 10% | ||||
Preferred stock conversion price per share (in Dollars per share) | $ 12 | ||||
Stockholders equity, description | If the closing sale price of the common stock is greater than 140% of the conversion price on 20 out of 30 trading days, the company may redeem the Series A Preferred Stock in whole or in part at any time through October 31, 2010, upon at least 30 days’ notice, at a redemption price, payable in cash, equal to 100% of the liquidation preference of the shares to be redeemed, plus unpaid dividends thereon to, but excluding, the redemption date, subject to certain conditions. In addition, beginning November 1, 2010, the company may redeem the Series A Preferred Stock in whole or in part, upon at least 30 days’ notice, at a redemption price, payable in cash, equal to 100% of the liquidation preference of the Series A Preferred Stock to be redeemed, plus unpaid dividends thereon to, but excluding, the redemption date, under certain conditions. | ||||
Common stock discount shares description | The purchase price is payable, at the corporation’s option, (x) in cash, (y) in shares of the common stock at a discount of 5% from the fair market value of Common Stock on the Purchase Date (i.e. valued at a 95% discount of the Common Stock on the Purchase Date), or (z) any combination thereof. | ||||
Preferred stock, annual dividend | $ 34,000 | $ 34,000 | |||
Reserved a total possible issuance under the plan (in Shares) | 50,000,000 | ||||
Total stock-based compensation expense for grants | $ 1,004,385 | 493,367 | |||
Share based compensation of restricted stock agreement shares (in Shares) | 140,000 | ||||
Restricted stock awards value | 84,000 | ||||
Recognized restricted stock awards value | $ 70,000 | ||||
Restricted stock, grants description | The shares vest annually over two years with the first installment one year from the agreement; provided, however, if either party terminates the agreement at any time prior to the last date of it ending, then the shares will vest, pro rata, for each month served since the most recent prior annual vesting date. | ||||
Stock based compensation description | The $1,004,385 stock-based compensation for the six months ended June 30, 2022, was comprised of $781,385 option expense and $223,000 was the amortization of 5,000,000 shares of stock valued at $0.4014 over three years for the acquisition of assets of Applied Optical Sciences. | ||||
Unrecognized stock based compensation | $ 3,880,836 | ||||
Stock based compensation restricted stock agreements | $ 0 | $ 15,355 | |||
Common Stock [Member] | |||||
Stockholders’ Equity (Details) [Line Items] | |||||
Common stock shares (in Shares) | 7,056,250 | 158,329 | |||
Shares issued for convertible notes (in Shares) | 47,999 | ||||
Restricted Stock [Member] | |||||
Stockholders’ Equity (Details) [Line Items] | |||||
Common stock shares (in Shares) | 31,250 | ||||
Stock value issued for restricted stock agreement | $ 4,550 | ||||
Warrant [Member] | |||||
Stockholders’ Equity (Details) [Line Items] | |||||
Common stock shares (in Shares) | 600,000 | ||||
Stock value issued for exercise of warrants (in Shares) | 600,000 | ||||
Warrant exercise price per share (in Dollars per share) | $ 0.07 | ||||
Options [Member] | |||||
Stockholders’ Equity (Details) [Line Items] | |||||
Common stock shares (in Shares) | 1,005,682 | ||||
Common stock option exercise (in Shares) | 1,090,910 | 1,090,910 | |||
Stock option exercise price Per share (in Dollars per share) | $ 0.05 | ||||
Restricted Stock Agreement [Member] | |||||
Stockholders’ Equity (Details) [Line Items] | |||||
Common stock shares (in Shares) | 130,417 | ||||
Options Two [Member] | |||||
Stockholders’ Equity (Details) [Line Items] | |||||
Common stock shares (in Shares) | 100,000 | ||||
Net cash proceeds | $ 13,000 | ||||
Common stock option exercise (in Shares) | 100,000 | ||||
Stock option exercise price Per share (in Dollars per share) | $ 0.13 | ||||
Preferred Stock [Member] | |||||
Stockholders’ Equity (Details) [Line Items] | |||||
Common stock shares (in Shares) | |||||
Liquidation preference | 101% | ||||
Minimum [Member] | |||||
Stockholders’ Equity (Details) [Line Items] | |||||
Liquidation preference | 1% | ||||
Maximum [Member] | |||||
Stockholders’ Equity (Details) [Line Items] | |||||
Liquidation preference | 6.50% | ||||
Private Placement [Member] | |||||
Stockholders’ Equity (Details) [Line Items] | |||||
Common stock shares (in Shares) | 7,056,250 | ||||
Price per share (in Dollars per share) | $ 0.32 | ||||
Net cash proceeds | $ 2,258,000 | ||||
Series A Preferred Stock [Member] | |||||
Stockholders’ Equity (Details) [Line Items] | |||||
Series A convertible preferred stock, issued (in Shares) | 13,602 | 13,602 | |||
Liquidation preference | 7.50% | ||||
Business Combination [Member] | |||||
Stockholders’ Equity (Details) [Line Items] | |||||
Issuable in acquisition, description | As of June 30, 2022 and December 31, 2021, the company in aggregate recorded $1,561,000 and $1,338,000, respectively, in stock-based compensation related to a lockup agreement on 5,000,000 shares of common stock in the acquisition of assets of AOS valued at $0.4014 per share, representing the closing price on the date of the contract which is amortized over 36 months, of which, $223,000 and $334,000, respectively, was amortized for the six months ended June 30, 2022, and 2021. | ||||
Statements of operations [Member] | |||||
Stockholders’ Equity (Details) [Line Items] | |||||
Preferred stock, annual dividend | $ 17,003 | $ 17,003 |
Stockholders_ Equity (Details)
Stockholders’ Equity (Details) - Schedule of stock options | 6 Months Ended |
Jun. 30, 2022 USD ($) $ / shares shares | |
Schedule of stock options [Abstract] | |
Shares Outstanding, Beginning Balance | shares | 28,415,000 |
Weighted Average Exercise Price Outstanding, Beginning Balance | $ / shares | $ 0.1859 |
Weighted Average Contractual Term Outstanding, Beginning Balance | 5 years 10 months 2 days |
Intrinsic Value Outstanding, Beginning Balance | $ | $ 50,673,665 |
Shares Outstanding, Ending Balance | shares | 22,705,000 |
Weighted Average Exercise Price Outstanding, Ending Balance | $ / shares | $ 0.3371 |
Weighted Average Contractual Term Outstanding, Ending Balance | 6 years 10 months 13 days |
Intrinsic Value Outstanding, Ending Balance | $ | $ 39,880,525 |
Shares Outstanding and exercisable, Ending Balance | shares | 19,318,888 |
Weighted Average Exercise Price Outstanding and exercisable, Ending Balance | $ / shares | $ 0.1685 |
Weighted Average Contractual Term Outstanding and exercisable, Ending Balance | 6 years 6 months 25 days |
Intrinsic Value Outstanding and exercisable, Ending Balance | $ | $ 38,660,359 |
Shares, Granted | shares | 1,390,000 |
Weighted Average Exercise Price, Granted | $ / shares | $ 2.4 |
Weighted Average Contractual Term Outstanding, Granted | 9 years 6 months 7 days |
Intrinsic Value, Granted | $ | $ (437,850) |
Shares, Exercised | shares | (100,000) |
Weighted Average Exercise Price, Exercised | $ / shares | $ (0.13) |
Weighted Average Contractual Term Outstanding, Exercised | |
Exercised | $ | $ (221,500) |
Shares, Forfeited or expired | shares | (7,000,000) |
Weighted Average Exercise Price, Forfeited or expired | $ / shares | |
Weighted Average Contractual Term Outstanding, Forfeited or expired | |
Intrinsic Value, Forfeited or expired | $ | $ (14,595,000) |
Stockholders_ Equity (Details_2
Stockholders’ Equity (Details) - Schedule of black-scholes- merton option-pricing model applying the assumptions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Assumptions: | ||
Risk-free interest rate | 0% | |
Expected dividend yield | 0% | |
Expected volatility | 0% | |
Expected life (in years) | 0 years | |
Fair Value of Option [Member] | ||
Assumptions: | ||
Risk-free interest rate | 0% | |
Expected dividend yield | 0% | 0% |
Expected volatility | 0% | 126% |
Expected life (in years) | 0 years | 5 years |
Minimum [Member] | Fair Value of Option [Member] | ||
Assumptions: | ||
Risk-free interest rate | 1.26% | |
Maximum [Member] | Fair Value of Option [Member] | ||
Assumptions: | ||
Risk-free interest rate | 1.30% |
Stockholders_ Equity (Details_3
Stockholders’ Equity (Details) - Schedule of fair value of restricted stock and restricted stock units - Restricted Stock Outstanding [Member] | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
Stockholders’ Equity (Details) - Schedule of fair value of restricted stock and restricted stock units [Line Items] | |
Shares, Outstanding beginning balance | 215,000 |
Weighted Average Fair Value per Share at Grant Date, Outstanding beginning balance (in Dollars per share) | $ / shares | $ 0.52 |
Shares, Granted – restricted stock units and awards | |
Weighted Average Fair Value per Share at Grant Date, Granted – restricted stock units and awards (in Dollars per share) | $ / shares | |
Shares, Granted – performance based stock units | |
Shares, Canceled | |
Shares, Vested and converted to shares | |
Shares, Outstanding ending balance | 215,000 |
Weighted Average Fair Value per Share at Grant Date, Outstanding ending balance (in Dollars per share) | $ / shares | $ 0.52 |
Stockholders_ Equity (Details_4
Stockholders’ Equity (Details) - Schedule of unrecognized stock-based compensation related to a lockup agreement - Warrant Activity [Member] | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
Stockholders’ Equity (Details) - Schedule of unrecognized stock-based compensation related to a lockup agreement [Line Items] | |
Shares Outstanding | shares | 1,775,000 |
Weighted Average Exercise Price | $ / shares | $ 0.0599 |
Weighted Average remaining Contractual Term (years) | 7 years 5 months 4 days |
Shares, Granted | shares | |
Weighted Average Exercise Price, Granted | $ / shares | |
Weighted Average remaining Contractual Term (years), Granted | |
Shares, Exercised | shares | |
Weighted Average Exercise Price, Exercised | $ / shares | |
Weighted Average remaining Contractual Term (years), Exercised | |
Shares, Forfeited | shares | |
Weighted Average Exercise Price, Forfeited | $ / shares | |
Weighted Average remaining Contractual Term (years), Forfeited | |
Shares, Outstanding and exercisable | shares | 1,775,000 |
Weighted Average Exercise Price, Outstanding and exercisable | $ / shares | $ 0.0599 |
Weighted Average Remaining Contractual Term (years), Outstanding and exercisable | 6 years 11 months 8 days |
Stockholders_ Equity (Details_5
Stockholders’ Equity (Details) - Schedule of range exercise prices warrants outstanding and exercisable | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Warrants Outstanding, Shares Outstanding | shares | 1,775,000 |
Warrants Outstanding, Weighted Avg. Remaining Contractual Life in Years | 6 years 11 months 8 days |
Warrants Outstanding, Weighted Avg. Exercise Price | $ / shares | $ 0.0599 |
Warrants Exercisable, Shares Exercisable | shares | 1,775,000 |
Warrants Exercisable, Weighted Avg. Exercise Price | $ / shares | $ 0.0599 |
Range of Exercise Prices $0.05 - $0.08 [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Warrants Outstanding, Shares Outstanding | shares | 1,775,000 |
Warrants Outstanding, Weighted Avg. Remaining Contractual Life in Years | 6 years 11 months 8 days |
Warrants Outstanding, Weighted Avg. Exercise Price | $ / shares | $ 0.0599 |
Warrants Exercisable, Shares Exercisable | shares | 1,775,000 |
Warrants Exercisable, Weighted Avg. Exercise Price | $ / shares | $ 0.0599 |
Revenue Recognition (Details)
Revenue Recognition (Details) | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Revenue Recognition (Details) [Line Items] | |
Accounts receivable | $ 190,922 |
One Customer [Member] | |
Revenue Recognition (Details) [Line Items] | |
Earned revenue | $ 162,226 |
Earned revenue recognized percentage | 85% |
Accounts receivable | $ 162,226 |
Accounts receivable percentage | 85% |
Commitments and Contingencies_2
Commitments and Contingencies (Details) | 3 Months Ended | 6 Months Ended |
Mar. 31, 2021 USD ($) squarefoot | Jun. 30, 2022 USD ($) | |
Commitments and Contingencies (Details) [Line Items] | ||
Operating Lease, Expense | $ 126,722 | |
Cash lease payments | 103,096 | |
Future minimum lease payments | $ 128,000 | |
Square Food Laboratory [Member] | ||
Commitments and Contingencies (Details) [Line Items] | ||
Lease square foot (in squarefoot) | squarefoot | 13,000 | |
Base rent | $ 6.7626 | |
Minimum lease payment sale lease back transactions within two year | 9.2009 | |
Minimum lease payment sale leaseback transactions within three years | 11.4806 | |
Minimum lease payment sale leaseback transactions, within four years | 13.174 | |
Minimum lease payment sale leaseback transactions within five years | $ 14.9306 |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - Schedule of future minimum lease payments | Jun. 30, 2022 USD ($) |
Schedule of future minimum lease payments [Abstract] | |
2022 | $ 61,503 |
2023 | 143,325 |
2024 | 168,577 |
2025 | 191,779 |
2026 | 66,536 |
Thereafter | |
Total undiscounted lease payments | 631,720 |
Present value discount, less interest | 80,354 |
Lease Liability | $ 551,336 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | 1 Months Ended | |
Aug. 01, 2022 | Jul. 24, 2022 | |
Subsequent Events [Abstract] | ||
Cash payment amount (in Dollars) | $ 100,000 | |
Salary per year (in Dollars) | $ 350,000 | |
Additional options to purchase shares of common stock | 1,000,000 | |
Exercise price per share (in Dollars per share) | $ 2.36 | |
Restricted stock units shares of common stock | 400,000 | |
Forfeited unvested options to purchase shares of common stock | 950,000 |