Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Jan. 24, 2014 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'AMERICAN FIBER GREEN PRODUCTS, INC. | ' |
Entity Central Index Key | '0001009925 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 12,383,155 |
Document Fiscal Period Focus | 'Q3 | ' |
Document Fiscal Year Focus | '2013 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Current Assets | ' | ' |
Cash and cash equivalents | $274 | $1,483 |
Accounts receivable | 15,082 | 65,693 |
Total Current Assets | 15,356 | 67,176 |
Property and equipment, net of accumulated depreciation of $48,934 and $44,130, respectively | 15,581 | 20,385 |
Notes receivable, related parties | 222,326 | 150,171 |
Interest receivable, related parties | 91,527 | 79,829 |
TOTAL ASSETS | 344,790 | 317,561 |
Current Liabilities | ' | ' |
Accounts payable | 180,972 | 213,133 |
Accrued expenses | 6,208 | 1,953 |
Deferred salaries | 992,548 | 945,298 |
Accrued interest payable | 964,518 | 914,653 |
Convertible notes payable, related party | 284,500 | 284,500 |
Note payable, related party | 422,036 | 492,231 |
Total Current Liabilities | 2,850,782 | 2,851,768 |
TOTAL LIABILITIES | 2,850,782 | 2,851,768 |
Stockholders' Deficit | ' | ' |
Preferred stock: 5,000,000 authorized; $0.001 par value; no shares issued and outstanding | ' | ' |
Common stock: 350,000,000 authorized; $0.001 par value 12,383,155 and 11,543,235 shares issued and outstanding | 12,383 | 11,543 |
Additional paid in capital | 2,639,986 | 2,556,826 |
Accumulated deficit | -5,158,361 | -5,102,576 |
Total Stockholders' Deficit | -2,505,992 | -2,534,207 |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $344,790 | $317,561 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
ASSETS | ' | ' |
Accumulated depreciation | $48,934 | $44,130 |
Stockholders' Deficit | ' | ' |
Preferred stock; par value | $0.00 | $0.00 |
Preferred Stock; shares authorized | 5,000,000 | 5,000,000 |
Preferred stock; shares issued | 0 | 0 |
Preferred stock; shares outstanding | 0 | 0 |
Common stock; par value | $0.00 | $0.00 |
Common Stock; shares authorized | 350,000,000 | 350,000,000 |
Common stock; shares issued | 12,383,155 | 11,543,235 |
Common stock; shares outstanding | 12,383,155 | 11,543,235 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operation (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Consolidated Statements Of Operation | ' | ' | ' | ' |
Revenues | $24,727 | $115,320 | $270,438 | $170,320 |
Cost of sales | 2,284 | ' | 72,224 | ' |
Gross Profit | 22,443 | 115,320 | 198,214 | 170,320 |
Operating Expenses | ' | ' | ' | ' |
Compensation | 18,928 | ' | 139,872 | ' |
General and administrative | 20,837 | 92,842 | 75,961 | 270,794 |
Total operating expenses | 39,765 | 92,842 | 215,833 | 270,794 |
Net loss from operations | -17,322 | 22,478 | -17,619 | -100,474 |
Other income (expense) | ' | ' | ' | ' |
Interest expense | -15,702 | -27,076 | -49,864 | -82,413 |
Interest Income | 4,813 | 4,276 | 11,698 | 12,537 |
Income taxes | ' | ' | ' | ' |
Net loss | ($28,211) | ($322) | ($55,785) | ($170,350) |
BASIC AND DILUTED LOSS PER SHARE | $0 | $0 | $0 | ($0.01) |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | 12,383,155 | 11,543,235 | 12,315,716 | 11,543,235 |
Consolidated_Statement_of_Shar
Consolidated Statement of Shareholders' Deficit (USD $) | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Begining balance, Amount at Dec. 31, 2010 | $11,386 | $2,423,383 | ($4,767,996) | ($2,333,227) |
Begining balance, Shares at Dec. 31, 2010 | 11,385,735 | ' | ' | ' |
Net income/loss | ' | ' | -132,935 | -132,935 |
Endings balance, Amount at Dec. 31, 2011 | 11,386 | 2,423,383 | -4,900,931 | -2,466,162 |
Begining balance, Shares at Dec. 31, 2011 | 11,385,735 | ' | ' | ' |
Shares issued in exchange for services, Shares | 157,500 | ' | ' | ' |
Shares issued in exchange for services, Amount | 157 | 91,193 | ' | 91,350 |
Options issued | ' | 42,250 | ' | 42,250 |
Net income/loss | ' | ' | -201,645 | -201,645 |
Endings balance, Amount at Dec. 31, 2012 | 11,543 | 2,556,826 | -5,102,576 | -2,534,207 |
Endings balance, Shares at Dec. 31, 2012 | 11,543,235 | ' | ' | ' |
Shares issued in exchange for services, Shares | 839,920 | ' | ' | ' |
Shares issued in exchange for services, Amount | 840 | 83,160 | ' | 84,000 |
Net income/loss | ' | ' | -55,785 | -55,785 |
Endings balance, Amount at Sep. 30, 2013 | $12,383 | $2,639,986 | ($5,158,361) | ($2,505,992) |
Endings balance, Shares at Sep. 30, 2013 | 12,383,155 | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Cash Flows from Operating Activities: | ' | ' |
Net loss | ($55,785) | ($170,350) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 4,804 | 5,807 |
Stock-based compensation | 84,000 | ' |
Forgiveness of debt | ' | ' |
(Increase) decrease in operating assets: | ' | ' |
Accounts receivable | 50,611 | -1,280 |
Non-trade receivables and other assets | -4,813 | -12,537 |
Note receivable, net | ' | ' |
Increase (decrease) in operating liabilities: | ' | ' |
Accounts payable and accrued expenses | -27,906 | 77,909 |
Deferred compensation | 47,250 | 46,310 |
Total adjustments | 153,946 | 116,209 |
Net Cash Provided (Used) by Operations | 98,161 | -54,141 |
Cash Flows from Investing Activities: | ' | ' |
Acquisition of property and equipment | ' | ' |
Net Cash Used in Investing Activities | ' | ' |
Cash Flows from Financing Activities: | ' | ' |
Related party loans, net | -115,072 | -27,016 |
Increase in interest payable to related parties | 15,702 | ' |
Increase in deposit on equipment | ' | -6,104 |
Proceeds from issuance of stock | ' | 91,350 |
Net Cash Provided by Financing Activities | -99,370 | 58,230 |
Net Increase (Decrease) in Cash and Cash Equivalents | -1,209 | 4,089 |
Cash and Cash Equivalents, beginning of period | 1,483 | 4,057 |
Cash and Cash Equivalents, end of period | 274 | 8,146 |
Supplemental Disclosure Information: | ' | ' |
Cash paid for interest | ' | ' |
Cash paid for taxes | ' | ' |
ORGANIZATION_AND_BUSINESS
ORGANIZATION AND BUSINESS | 9 Months Ended |
Sep. 30, 2013 | |
Notes to Financial Statements | ' |
1. ORGANIZATION AND BUSINESS | ' |
American Fiber Green Products, Inc. (AFBG) came into existence as a result of the following transactions: | |
In March of 1993, William Amour founded Amour Hydro Press, Inc. (AHP) to conduct research and development to commercialize proprietary technology that would allow the Company to process waste fiberglass and resins into new commercially viable products. | |
In January of 1996 the Board of Directors authorized the merger of AHP with Amour Fiber Core, Inc. a Washington corporation. Each common share of Amour Hydro Press, Inc. was exchanged for 280 common shares of Amour Fiber Core, Inc. The authorized shares of Amour Fiber Core, Inc. were 5,000,000 shares. The company operated under this configuration until June 1998 when the Board of Directors approved a three for one forward split (3:1) increasing the authorized shares from 5,000,000 to 15,000,000 common shares. Amendments to the Articles of Incorporation were filed with the State of Washington. Although approved and recorded, the 3:1 forward split was not reported to the transfer agent of the Company. The resulting change in common stock was from 3,675,996 to 11,027,988 common shares issued and outstanding. | |
Within months of these actions, William Amour, founder and driving force behind the business was diagnosed with cancer and died in 1999. Attempts by the board to continue the operation of Amour Fiber Core, Inc. resulted in substantially more debt and ultimately the cessation of operations. The value of the company was in the exclusive rights to the proprietary technology, as well as the resources developed to source raw material and vendors and the ability to create viable products from waste material. There were 884 shareholders of record at the time of William Amour's passing and they remained committed to the success of the Company. The Company ceased operations in January 2000, however, management continued to search for investors to be able to restart production. | |
On September 15, 2001, after several months of discussion and negotiations, Kenneth McCleave incorporated American Leisure Products, Inc. a Florida corporation, of which he was the sole shareholder of the 100,000 issued and outstanding shares for the purpose of merger with Amour Fiber Core, Inc. The terms and conditions of said merger included Mr. McCleave's assistance in resolution of a number of problems restricting Amour. Litigation with the landlord and disgruntled note holders threatened the collapse of the Company unless amicable resolution was achieved. The terms of the merger were established and the concerns were resolved over the subsequent 24 months. | |
In May of 2004, following appropriate shareholder consent and board action, Amour Fiber Core, Inc. (Washington) merged with a newly formed Nevada corporation of the same name and with the same issued and outstanding shares 11,027,988. Amour Fiber Core, Inc. (Nevada) has authorized 350,000,000 common and 5,000,000 preferred shares. | |
On May 24, 2004, Amour Fiber Core, Inc. (Nevada) then entered into an Agreement and Plan of Merger with American Leisure Products, Inc., a Florida corporation with a total issued and outstanding 100,000 common shares. A 1:6 reverse split of the Amour Fiber Core, Inc. shares held by the AFC shareholders reduced the issued and outstanding common shares of AFC (Nevada) from 11,027,988 to 1,837,998. The merger called for each share of ALP to convert to 73.52 shares of Amour Fiber Core, Inc. (Nevada). The sole shareholder of ALP received 7,352,000 shares of Amour Fiber Core, Inc. (Nevada) in the merger (i.e. a conversion ratio of 73.52:1). Following this transaction, Amour Fiber Core, Inc. (Nevada) had 9,189,998 shares outstanding. | |
Following this merger and in keeping with the Shareholder Consent and subsequent board action, the name of Amour Fiber Core, Inc. (Nevada) was changed to American Fiber Green Products, Inc. American Leisure Products, Inc. (a Florida corporation) became a wholly owned subsidiary of American Fiber Green Products, Inc. The assets and opportunities of American Fiber Green Products, Inc. (f/k/a Amour Nevada and Amour Washington) were moved to a newly formed, Amour Fiber Core, Inc., (a Florida Corporation) as a wholly owned subsidiary. The resulting structure is American Fiber Green Products, Inc. (Nevada) holding 100% of the stock of American Leisure Products, Inc. (Florida) and Amour Fiber Core, Inc. (Florida). |
GOING_CONCERN
GOING CONCERN | 9 Months Ended |
Sep. 30, 2013 | |
Notes to Financial Statements | ' |
2. GOING CONCERN | ' |
The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. The Company's continued existence is dependent upon the Company's ability to obtain additional debt and/or equity financing. The Company has incurred losses since inception, has an accumulated deficit, and negative cash flows from operating activities. These factors raise substantial doubt about the ability of the Company to continue as a going concern. | |
The Company anticipates beginning construction of a pilot plant within the next 12 months and expects to complete the project and to begin production of scrapped fiberglass reclamation as a raw material within the next 24 months. Although the cost of construction is not readily determinable, the Company estimates the cost to be approximately $550,000 for the pilot plant and as much as $1.6M for a full function plant. Management plans to raise additional funds through the sale of sub-licensing agreements, project financings or through future sales of their common stock, until such time as the Company's revenues are sufficient to meet its cost structure, and ultimately achieve profitable operations. There is no assurance that the Company will be successful in raising additional capital or achieving profitable operations. The consolidated financial statements do not include any adjustments that might result from the outcome of these uncertainties. |
FINANCIAL_STATEMENTS
FINANCIAL STATEMENTS | 9 Months Ended |
Sep. 30, 2013 | |
Notes to Financial Statements | ' |
3. FINANCIAL STATEMENTS | ' |
In the opinion of management, all adjustments consisting only of normal recurring adjustments necessary for a fair statement of (a) the results of operations for the three and nine months ended September 30, 2013 and 2012, (b) the financial position at September 30, 2013 and December 31, 2012, and (c) cash flows for the nine months ended September 30, 2013 and 2012, have been made. | |
The unaudited financial statements and notes are presented as permitted by Form 10-Q. Accordingly, certain information and note disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted. The accompanying financial statements and notes should be read in conjunction with the audited financial statements and notes of the Company for the fiscal year ended December 31, 2012. The results of operations for the three and nine months ended September 30, 2013 and 2012 are not necessarily indicative of those to be expected for the entire year. | |
The accompanying consolidated financial statements include the activity of the Company and its wholly owned subsidiaries. All intercompany transactions have been eliminated in consolidation. | |
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America 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 consolidated financial statements, and the reported amounts of revenues and expenses during the reported periods. Actual results could materially differ from those estimates. |
NOTES_RECEIVABLE
NOTES RECEIVABLE | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Notes to Financial Statements | ' | ||||||||
4. NOTES RECEIVABLE | ' | ||||||||
The Company has made loans to several companies, both owned by officers and stockholders of the Company and to unrelated parties. The purpose of these loans was to invest in other fiberglass manufacturing businesses in order to facilitate the development and production of fiberglass products. The Company does not expect repayment of these amounts to occur during the next 12 months. | |||||||||
Notes receivable are made up of the following: | |||||||||
2013 | 2012 | ||||||||
Note receivable, related party, 10% interest, past maturity | 53,600 | 52,452 | |||||||
Note receivable, related party, 10% interest, past maturity | 20,253 | 20,253 | |||||||
Note receivable, related party, 8% interest, past maturity | 17,700 | 14,700 | |||||||
Note receivable, related party, 8% interest | 130,773 | 62,766 | |||||||
$ | 222,326 | $ | 150,171 | ||||||
Less Current Portion | - | - | |||||||
Based on rates and terms of the notes, the Company has recognized $4,813 and $4,276 of interest income for the three months ended September 30, 2013 and 2012, respectively. For the nine months ended September 30, 2013 and 2012, the Company has recognized $11,698 and $12,537 of interest income, respectively. The accumulated interest receivable, under these notes, is $91,527 and $79,829 as of September 30, 2013 and December 31, 2012, respectively. | |||||||||
The above related party transactions are not necessarily indicative of the terms and amounts that would have been incurred had comparable agreements been made with independent parties. |
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Notes to Financial Statements | ' | ||||
5. STOCKHOLDERS' EQUITY | ' | ||||
Founder Shares | |||||
In May 2004, the Board of Amour Fiber Core Inc. a Washington corporation approved to reincorporate it in Nevada and reduce the number of shares outstanding. It merged into a newly organized Nevada corporation (also named "Amour Fiber Core, Inc."), and each share of Amour Fiber Core, Inc. (Washington) was converted into 1/6 of a share of Amour Fiber Core, Inc. (Nevada). As a result, the surviving corporation, Amour Fiber Core, Inc. (Nevada) has a total of (1,837,998) shares outstanding. Amour Fiber Core Inc. (Nevada) has 350 million shares of Common Stock authorized and 5 million shares of "blank check" preferred authorized. | |||||
On May 24, 2004, Amour Fiber Core, Inc. (Nevada) then entered into an Agreement and Plan of Merger with American Leisure Products, Inc., a Florida corporation with a total issued and outstanding of 100,000 common shares. The 1:6 reverse split of the Amour Fiber Core, Inc. shares held by the AFC shareholders reduced the issued and outstanding common shares of AFC (Nevada) from 11,027,988 to 1,837,998. The merger called for each share of ALP to convert to 73.52 shares of Amour Fiber Core, Inc. (Nevada). The sole shareholder of ALP received 7,352,000 shares of Amour Fiber Core, Inc. (Nevada) in this reverse merger. Following the transaction, Amour Fiber Core, Inc. (Nevada) had 9,189,998 shares outstanding. The assets of ALP (Tooling) were added to the assets of AFC in a purchase transaction with a corresponding capital contribution amount of $50,000 recorded as Additional Paid-In Capital. | |||||
At the time of this reverse merger, the smaller combining entity (ALP), a) holds a majority of the voting rights, (80.0%) of the combined company (AFC) common shares outstanding; and b) comprises the senior management of the combined company. | |||||
The Company issued 157,500 shares of common stock in exchange for services during the year ended December 31, 2012. These shares were valued at the fair market value of the stock at the date of grant, resulting in the recognition of $91,350 in compensation expense. | |||||
In accordance with the employment agreement of the officer, provision is made for the issuance of 100,000 options. The Company has valued the options, using the Black Scholes Method, resulting in compensation expense in the amount of $42,250 was recognized in 2012. The following assumptions were used in the calculation: | |||||
Weighted Average: | |||||
Dividend rate | 0 | % | |||
Risk-free interest rate | 0.062 | % | |||
Expected lives (years) | 3 | ||||
Expected price volatility | 213.6 | % | |||
Forfeiture Rate | 0 | % |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2013 | |
Notes to Financial Statements | ' |
6. RELATED PARTY TRANSACTIONS | ' |
The Company is currently operating in a facility leased and operated by Tampa Fiberglass Inc. (TFI). TFI is owned by Ken McCleave, Chairman of AFGP. No occupancy cost has been charged to AFBG by TFI during 2013 or 2012. There is no assurance that this favorable treatment will continue in the future if AFBG begins to facilitate operations at that site. | |
The Company entered into an employment agreement with a key employee. The employment agreement is for a period of three years, with prescribed percentage increases beginning in 2007. Increases for 2007 and 2008 were waived. A 5% increase was effective 1/1/09 for a total annual rate under the employment agreement of $63,000. The employment contract has been continued without change, on agreement with parties involved, and is expected to be renewed in 2013. The Company expects to renegotiate the terms and conditions of the contract. Compensation is currently accrued (see footnote “Deferred Wages”), as specified within the terms of the employment contract. The contract specifies minimum bonus of $15,000 (other than minimum is at discretion of the Board of Directors) and annual options (100,000 options, effective June 1st, at a strike price of average closing price of prior month). Both the bonus and options were waved in prior years, due to lack of revenue producing activity. | |
The Company anticipates that it will enter into employment contracts with two other key employees in 2013 under similar terms and conditions. Specifics will be determined by the Compensation Committee and approved by the Board of Directors. | |
In prior years, accounts payable includes related party payables, which have been reclassified to notes payable for the three and nine months ended September 30, 2013 and the year ended December 31, 2012. | |
The above related party transactions are not necessarily indicative of the terms and amounts that would have been incurred had comparable agreements been made with independent parties. |
DEFERRED_SALARIES
DEFERRED SALARIES | 9 Months Ended |
Sep. 30, 2013 | |
Notes to Financial Statements | ' |
7. DEFERRED SALARIES | ' |
The Company has accrued salaries owed to four individuals. Three of the individuals' employment contracts are expired. All balances due are fixed without any interest or other escalating cost. The Company does not expect to make any payments on these deferred wages during the next twelve months, but the balances are classified as current liabilities. | |
Deferred wages are $992,548 and $945,298 as of September 30, 2013 and December 31, 2012, respectively. |
CONVERTIBLE_NOTES_PAYABLE
CONVERTIBLE NOTES PAYABLE | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Notes to Financial Statements | ' | ||||||||
8. CONVERTIBLE NOTES PAYABLE | ' | ||||||||
The Company has issued convertible notes payables to the following individuals: | |||||||||
30-Sep-13 | 31-Dec-12 | ||||||||
Three notes payable to Robert Chlipala or assigns dated June 4, 1998, July 10, 1999 and December 11, 1999, interest rate at 10.5%, 10.5% and 0% respectively principle and interest payable on demand, convertible to common stock at $0.05 per share. | 133,000 | 133,000 | |||||||
One note payable to Gerald Rau or assigns, dated 4/1/2000, interest rate at 8.75%, past due and convertible to common stock at $0.05 per share | 101,500 | 101,500 | |||||||
Three notes payable to Les Smyth or assigns, dated September 15, 1998, June 14, 1999 and June 14, 1999, interest rates at 14%, past due and convertible to common stock at $0.05 per share | 50,000 | 50,000 | |||||||
Total convertible notes | 284,500 | 284,500 | |||||||
The Company acquired the above notes as of the date of merger, May 24, 2004. In the negotiations, the original notes were modified to include a conversion feature, in exchange for indefinitely extending the payment date. At the time of the debt modification, the conversion rate was based on the then fair market value of the stock. The Company examined the agreement and based on calculations determined that there was no beneficial conversion at that time, as the face value was equivalent to the conversion. The Conversion feature was extended to interest accrued, through the date of the modification only. | |||||||||
The loans are convertible into shares of common stock at a rate of $0.05 per share, the then fair market value of the shares. The total original amount of the loans still outstanding at September 30, 2013 is $284,500 plus previously accrued interest of $222,655, through the date of modification. The total common shares, if converted, would be approximately 10,143,000 shares as of September 30, 2013. | |||||||||
As of September 30, 2013 and December 31, 2012, the above notes had accrued interest payable of $625,945 and $612,034, respectively. |
NOTES_PAYABLE_RELATED_PARTIES
NOTES PAYABLE - RELATED PARTIES | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Notes to Financial Statements | ' | ||||||||
9. NOTES PAYABLE - RELATED PARTIES | ' | ||||||||
Related party notes payables are due to PAC (Public Acquisition Company (a wholly owned business of Kenneth McCleave and Daniel Hefner), Nimble Boat Works (a wholly owned business of Kenneth McCleave), and Daniel L. Hefner (President and Chief Executive Officer of AFGP) for cash advances made to AFGP. | |||||||||
30-Sep-13 | 31-Dec-12 | ||||||||
Eight notes payable Due to PAC, dated May 14, 2004, through December 2012, interest rates at 10% and 8%, principle and interest due on demand | $ | 360,529 | $ | 402,320 | |||||
Note Payable to ICF, interest rate at 8%, payable on demand | 7,000 | 7,000 | |||||||
Two notes payable to Due to Nimble Boat Works, interest rate at 8% payable on demand | - | 9,275 | |||||||
Three notes to Due to Dan Hefner, interest rate at 8%, payable on demand | 49,714 | 63,458 | |||||||
Three notes to Due to Kenneth McCleave, interest rate at 8%, payable on demand | 4,793 | 10,178 | |||||||
Total other long-term payables | $ | 422,036 | $ | 492,231 | |||||
Interest accrued on the above loans is $338,573 and $302,619 at September 30, 2013 and December 31, 2012, respectively. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2013 | |
Notes to Financial Statements | ' |
10. COMMITMENTS AND CONTINGENCIES | ' |
The Company follows ASC 450-20, Loss Contingencies, to report accounting for contingencies. Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. There were no commitments or contingencies as of September 30, 2013. | |
The Company's operations are subject to production of a new processing technology. Significant technical and regulatory changes can have a dramatic effect on product opportunities. Design and development of new processes are critical elements to achieve and maintain profitability in the Company's new industry segment. | |
The Company operates under several storage leases for its operations. Currently, all arrangements have been made on a month to month basis. Terms are expected to be defined upon the production at those sights. | |
The Company may be subject to federal, state and local environmental laws and regulations. The Company does not anticipate expenditures to comply with such laws and does not believe that regulations will have a material impact on the Company's financial position, results of operations, or liquidity. The Company believes that its operations comply, in all material respects, with applicable federal, state, and local environmental laws and regulations. | |
In the normal course of business, the Company may become a party to litigation matters involving claims against the Company. The Company's management is unaware of any pending or threatened assertions and there are no current matters that would have a material effect on the Company’s financial position or results of operations. |
NOTES_RECEIVABLE_Tables
NOTES RECEIVABLE (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Notes Receivable Tables | ' | ||||||||
Notes Receivable | ' | ||||||||
Notes receivable are made up of the following: | |||||||||
2013 | 2012 | ||||||||
Note receivable, related party, 10% interest, past maturity | 53,600 | 52,452 | |||||||
Note receivable, related party, 10% interest, past maturity | 20,253 | 20,253 | |||||||
Note receivable, related party, 8% interest, past maturity | 17,700 | 14,700 | |||||||
Note receivable, related party, 8% interest | 130,773 | 62,766 | |||||||
$ | 222,326 | $ | 150,171 | ||||||
Less Current Portion | - | - |
STOCKHOLDERS_EQUITY_Tables
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Stockholders Equity Tables | ' | ||||
Options, using Black Scholes Method, resulting in compensation expense | ' | ||||
The following assumptions were used in the calculation: | |||||
Weighted Average: | |||||
Dividend rate | 0 | % | |||
Risk-free interest rate | 0.062 | % | |||
Expected lives (years) | 3 | ||||
Expected price volatility | 213.6 | % | |||
Forfeiture Rate | 0 | % |
CONVERTIBLE_NOTES_PAYABLE_Tabl
CONVERTIBLE NOTES PAYABLE (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Convertible Notes Payable Tables | ' | ||||||||
Convertible notes payables | ' | ||||||||
The Company has issued convertible notes payables to the following individuals: | |||||||||
30-Sep-13 | 31-Dec-12 | ||||||||
Three notes payable to Robert Chlipala or assigns dated June 4, 1998, July 10, 1999 and December 11, 1999, interest rate at 10.5%, 10.5% and 0% respectively principle and interest payable on demand, convertible to common stock at $0.05 per share. | 133,000 | 133,000 | |||||||
One note payable to Gerald Rau or assigns, dated 4/1/2000, interest rate at 8.75%, past due and convertible to common stock at $0.05 per share | 101,500 | 101,500 | |||||||
Three notes payable to Les Smyth or assigns, dated September 15, 1998, June 14, 1999 and June 14, 1999, interest rates at 14%, past due and convertible to common stock at $0.05 per share | 50,000 | 50,000 | |||||||
Total convertible notes | 284,500 | 284,500 |
NOTES_PAYABLE_RELATED_PARTIES_
NOTES PAYABLE - RELATED PARTIES (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Notes Payable - Related Parties Tables | ' | ||||||||
Notes Payable | ' | ||||||||
30-Sep-13 | 31-Dec-12 | ||||||||
Eight notes payable Due to PAC, dated May 14, 2004, through December 2012, interest rates at 10% and 8%, principle and interest due on demand | $ | 360,529 | $ | 402,320 | |||||
Note Payable to ICF, interest rate at 8%, payable on demand | 7,000 | 7,000 | |||||||
Two notes payable to Due to Nimble Boat Works, interest rate at 8% payable on demand | - | 9,275 | |||||||
Three notes to Due to Dan Hefner, interest rate at 8%, payable on demand | 49,714 | 63,458 | |||||||
Three notes to Due to Kenneth McCleave, interest rate at 8%, payable on demand | 4,793 | 10,178 | |||||||
Total other long-term payables | $ | 422,036 | $ | 492,231 |
NOTES_RECEIVABLE_Details
NOTES RECEIVABLE (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Note receivable, related party | $222,326 | $150,171 |
Less Current Portion | ' | ' |
10% Interest, Past Maturity [Member] | ' | ' |
Note receivable, related party | 53,600 | 52,452 |
10% Interest, Past Maturity One [Member] | ' | ' |
Note receivable, related party | 20,253 | 20,253 |
8% Interest, Past Maturity [Member] | ' | ' |
Note receivable, related party | 17,700 | 14,700 |
8% Interest [Member] | ' | ' |
Note receivable, related party | $130,773 | $62,766 |
NOTES_RECEIVABLE_Details_Narra
NOTES RECEIVABLE (Details Narrative) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Notes Receivable Details Narrative | ' | ' | ' | ' | ' |
Interest income | $4,813 | $4,276 | $11,698 | $12,537 | ' |
Accumulated interest receivable | ' | ' | $91,527 | ' | $79,829 |
STOCKHOLDERS_EQUITY_Details
STOCKHOLDERS' EQUITY (Details) | 9 Months Ended |
Sep. 30, 2013 | |
Stockholders Equity Details | ' |
Dividend rate | 0.00% |
Risk-free interest rate | 0.06% |
Expected lives (years) | '3 years |
Expected price volatility | 213.60% |
Forfeiture Rate | 0.00% |
STOCKHOLDERS_EQUITY_Details_Na
STOCKHOLDERS' EQUITY (Details Narrative) (USD $) | 12 Months Ended |
Dec. 31, 2012 | |
Stockholders Equity Details | ' |
Common stock in exchange for services | 157,500 |
Common stock valued at fair market value of the stock date of grant, resulting in recognition | $91,350 |
Provision made for issuance of options with employment agreement of officer | 100,000 |
Compensation expense options valued in amount | $42,250 |
DEFERRED_SALARIES_Details_Narr
DEFERRED SALARIES (Details Narrative) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Deferred Salaries Details Narrative | ' | ' |
Deferred wages | $992,548 | $945,298 |
CONVERTIBLE_NOTES_PAYABLE_Deta
CONVERTIBLE NOTES PAYABLE (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Total convertible notes | $284,500 | $284,500 |
Three notes payable to Robert Chlipala [Member] | ' | ' |
Total convertible notes | 133,000 | 133,000 |
One note payable to Gerald Rau [Member] | ' | ' |
Total convertible notes | 101,500 | 101,500 |
Three notes payable to Les Smyth [Member] | ' | ' |
Total convertible notes | $50,000 | $50,000 |
CONVERTIBLE_NOTES_PAYABLE_Deta1
CONVERTIBLE NOTES PAYABLE (Details Narrative) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Convertible Notes Payable Details Narrative | ' | ' |
Common shares, converted | 10,143,000 | ' |
Accrued interest payable | $625,945 | $612,034 |
Original amount of the loans | 284,500 | ' |
Previous accrued interest | $222,655 | ' |
NOTES_PAYABLE_RELATED_PARTIES_1
NOTES PAYABLE - RELATED PARTIES (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Total other long-term payables | $422,036 | $492,231 |
Eight notes payable Due to PAC, dated May 14, 2004, through December 2012, interest rates at 10% and 8%, principle and interest due on demand [Member] | ' | ' |
Total other long-term payables | 360,529 | 402,320 |
Note Payable to ICF, interest rate at 8%, payable on demand [Member] | ' | ' |
Total other long-term payables | 7,000 | 7,000 |
Two notes payable to Due to Nimble Boat Works, interest rate at 8% payable on demand [Member] | ' | ' |
Total other long-term payables | ' | 9,275 |
Three notes to Due to Dan Hefner, interest rate at 8%, payable on demand [Member] | ' | ' |
Total other long-term payables | 49,714 | 63,458 |
Three notes to Due to Kenneth McCleave, interest rate at 8%, payable on demand [Member] | ' | ' |
Total other long-term payables | $4,793 | $10,178 |
NOTES_PAYABLE_RELATED_PARTIES_2
NOTES PAYABLE - RELATED PARTIES (Details Narrative) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Notes Payable - Related Parties Details Narrative | ' | ' |
Interest accrued | $338,573 | $302,619 |