Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 12, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 0-30454 | |
Entity Registrant Name | Enviro Technologies U.S., Inc. | |
Entity Central Index Key | 0001043894 | |
Entity Tax Identification Number | 82-0266517 | |
Entity Incorporation, State or Country Code | FL | |
Entity Address, Address Line One | 821 NW 57 | |
Entity Address, City or Town | Fort Lauderdale | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33309 | |
City Area Code | 954 | |
Local Phone Number | 958-9968 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 4,950,125 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 119,924 | $ 336,564 |
Accounts receivable, net | 26,700 | 1,176 |
Inventory, net | 117,742 | 113,335 |
Prepaid expenses | 7,805 | 12,174 |
Total current assets | 272,171 | 463,249 |
FIXED ASSETS, NET | 6,953 | 312,468 |
OTHER ASSETS | ||
Operating lease asset | 165,883 | 200,066 |
Security deposit | 10,143 | 10,143 |
Total other assets | 176,026 | 210,209 |
Total assets | 455,150 | 985,926 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued expenses | 360,501 | 323,481 |
Accrued Expenses – related party | 869,565 | 706,315 |
Loans payable, current portion | 111,971 | 65,867 |
Equipment note payable, current portion | 71,812 | |
Operating lease liability, current portion | 49,976 | 46,255 |
Total current liabilities | 1,392,013 | 1,213,730 |
LONG-TERM LIABILITIES: | ||
Operating lease liabilities, less current portion | 115,907 | 153,811 |
Equipment note payable, less current portion | 103,586 | |
Loans payable, less current portion | 150,000 | 196,104 |
Total long-term liabilities | 265,907 | 453,501 |
Total liabilities | 1,657,920 | 1,667,231 |
COMMITMENTS AND CONTINGENCIES (See Note H) | ||
SHAREHOLDERS’ (DEFICIENCY): | ||
Common stock, $.001 par value, 250,000,000 shares authorized; 4,950,125 and 4,950,125 shares issued and outstanding as of September 30, 2021 and December 31, 2020 | 4,951 | 4,951 |
Additional paid-in capital | 15,236,173 | 15,236,173 |
Accumulated deficit | (16,443,894) | (15,922,429) |
Total shareholders’ (deficiency) | (1,202,770) | (681,305) |
Total liabilities and shareholders’ (deficiency) | $ 455,150 | $ 985,926 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common Stock, Par or Stated Value Per Share | $ 0.001 | |
Common Stock, Shares Authorized | 250,000,000 | |
Common Stock, Shares, Outstanding | 4,950,125 | |
Common Stock, Shares, Issued | 4,950,125 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenues, net | $ 29,021 | $ 14,197 | $ 95,885 | $ 41,515 |
Cost of goods sold | 15,915 | 2,947 | 44,128 | 18,146 |
Gross profit | 13,106 | 11,250 | 51,757 | 23,369 |
Costs and expenses: | ||||
Selling, general and administrative | 51,398 | 71,668 | 184,951 | 256,984 |
Professional Fees | 34,795 | 47,698 | 111,195 | 160,802 |
Payroll expenses | 114,910 | 122,832 | 329,504 | 379,073 |
Total costs and expenses | 201,103 | 242,198 | 625,650 | 796,859 |
Loss from operations | (187,997) | (230,948) | (573,893) | (773,490) |
Other income (expenses): | ||||
Other Income | 7,000 | 7,000 | 8,000 | |
Gain on the forgiveness of PPP Loan & Interest | 75,352 | 75,352 | ||
Loss on sale of assets | (15,011) | |||
Interest expense | (238) | (100) | (14,913) | (7,264) |
Total other income (expense) | 82,114 | (100) | 52,428 | 736 |
Net loss before provisions for income taxes | (105,883) | (231,048) | (521,465) | (772,754) |
Provisions for income taxes | ||||
NET LOSS | $ (105,883) | $ (231,048) | $ (521,465) | $ (772,754) |
Net loss per common share - basic and diluted | $ (0.02) | $ (0.05) | $ (0.11) | $ (0.19) |
Weighted average number of common shares outstanding - basic and diluted | 4,950,125 | 4,950,125 | 4,950,125 | 4,144,244 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIENCY) (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance - December 31, 2020 at Dec. 31, 2019 | $ 3,579 | $ 15,094,095 | $ (14,891,621) | $ 206,053 |
Shares, Issued, Beginning Balance at Dec. 31, 2019 | 3,578,625 | |||
Net loss | (772,754) | (772,754) | ||
Balance – September 30, 2021 (unaudited) at Sep. 30, 2020 | $ 4,951 | 15,236,173 | (15,664,375) | (423,251) |
Shares, Issued, Ending Balance at Sep. 30, 2020 | 4,950,125 | |||
Stock issued for exercise of options in exchange for accrued expenses - related parties and accounts payable | $ 1,337 | 132,313 | 133,650 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 1,336,500 | |||
Stock issued for services to employees | $ 35 | 9,765 | 9,800 | |
Stock Issued During Period, Shares, Issued for Services | 35,000 | |||
Balance - December 31, 2020 at Jun. 30, 2020 | $ 4,951 | 15,236,173 | (15,433,327) | (192,203) |
Shares, Issued, Beginning Balance at Jun. 30, 2020 | 4,950,125 | |||
Net loss | (231,048) | (231,048) | ||
Balance – September 30, 2021 (unaudited) at Sep. 30, 2020 | $ 4,951 | 15,236,173 | (15,664,375) | (423,251) |
Shares, Issued, Ending Balance at Sep. 30, 2020 | 4,950,125 | |||
Balance - December 31, 2020 at Dec. 31, 2020 | $ 4,951 | 15,236,173 | (15,922,429) | (681,305) |
Shares, Issued, Beginning Balance at Dec. 31, 2020 | 4,950,125 | |||
Net loss | (521,465) | (521,465) | ||
Balance – September 30, 2021 (unaudited) at Sep. 30, 2021 | $ 4,951 | 15,236,173 | (16,443,894) | (1,202,770) |
Shares, Issued, Ending Balance at Sep. 30, 2021 | 4,950,125 | |||
Balance - December 31, 2020 at Jun. 30, 2021 | $ 4,951 | 15,236,173 | (16,338,011) | (1,096,887) |
Shares, Issued, Beginning Balance at Jun. 30, 2021 | 4,950,125 | |||
Net loss | (105,883) | (105,883) | ||
Balance – September 30, 2021 (unaudited) at Sep. 30, 2021 | $ 4,951 | $ 15,236,173 | $ (16,443,894) | $ (1,202,770) |
Shares, Issued, Ending Balance at Sep. 30, 2021 | 4,950,125 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (521,465) | $ (772,754) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 15,504 | 33,984 |
Amortization of operating lease asset | 34,183 | 31,957 |
Stock issued for services | 9,800 | |
Loss on sale of equipment | 15,011 | |
Gain on the forgiveness of PPP loan and interest | (75,352) | |
Changes in assets and liabilities: | ||
Accounts receivable | (25,524) | 285,856 |
Inventory | (4,407) | (23,776) |
Prepaid expenses | 4,369 | 8,405 |
Accounts payable and accrued expenses | 37,287 | 82,500 |
Operating lease liability | (34,183) | (31,957) |
Accrued expenses – related parties | 163,250 | (41,354) |
Net cash used in operating activities | (391,327) | (417,339) |
Cash Flows from Investing Activities: | ||
Sale of equipment | 275,000 | (5,067) |
Net cash provided by (used in) Investing activities | 275,000 | (5,067) |
Cash Flows from Financing Activities: | ||
Repayment of equipment note payable | (175,398) | (33,564) |
Loan payable issuance | 75,085 | 261,971 |
Net cash (used in) provided by financing activities | (100,313) | 228,407 |
Net decrease in cash and cash equivalents | (216,640) | (193,999) |
Cash and cash equivalents, beginning of period | 336,564 | 674,844 |
Cash and cash equivalents, end of period | 119,924 | 480,845 |
Supplemental Disclosures | ||
Cash paid during the period for interest | 6,184 | 7,264 |
Cash paid during the period for taxes | ||
Supplemental Disclosure of non-cash activities | ||
Stock issued for exercise of options in exchange for accounts payable | 42,000 | |
Stock issued for exercise of options in exchange for accrued expenses - related parties | $ 91,650 |
ORGANIZATION AND OPERATIONS
ORGANIZATION AND OPERATIONS | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND OPERATIONS | NOTE A - ORGANIZATION AND OPERATIONS Enviro Technologies U.S., Inc., a Florida corporation (the “Company”), is a manufacturer and provider of environmental and industrial separation technology. The Company developed, and now manufactures and sells the V-Inline Separator, a technology that efficiently separates liquid/liquid, liquid/solid or liquid/liquid/solid fluid streams with distinct specific gravities. On June 8, 2017, the Company and Florida Precision Aerospace, Inc., a Florida corporation (“FPA”), a wholly-owned subsidiary of the Company, closed the Technology Purchase Agreement dated March 13, 2017 with Schlumberger Technology Corporation, a Texas corporation, Schlumberger Canada Limited, a Canadian entity, and Schlumberger B.V., an entity organized under the laws of the Netherlands (collectively, “Schlumberger”) for the sale of our intellectual property, substantially consisting of Voraxial patents, marks, software and copyrights (the “Intellectual Property”). As part of the agreement, Schlumberger granted us a non-exclusive, worldwide, royalty-free licenses (the “Grant Back Licenses”), to make, use, sell, offer for sale, and import products and processes embodying the Intellectual Property outside the oil and gas market and we entered into a Supply Agreement. Current and potential commercial applications and markets include mining, utilities, manufacturing, waste-to-energy among other industries. FPA is used to manufacture, assemble and test the V-Inline Separator. On August 20, 2020, the Company’s shareholders approved a change of domicile of the Company from Idaho to Florida. On December 28, 2020, the Company received the file stamped Certificate of Domestication and Articles of Incorporation from the Secretary of State of Florida, which was effective on December 18, 2020, thereby completing the change in domicile from Idaho to Florida. In connection with the change in domicile from Idaho to Florida, the Company’s name changed to “Enviro Technologies U.S., Inc.”. |
GOING CONCERN
GOING CONCERN | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GOING CONCERN | NOTE B – GOING CONCERN Since entering into the Technology Purchase Agreement, Supply Agreement and Grant Back License in June 2017, we have generated limited revenues, significantly less than we anticipated, under the terms of any of these agreements. Although the Supply Agreement expired in June 2020, we continue to have a relationship with Schlumberger. The Grant Back License did not expire. There are no assurances that the Grant Back License will ever generate any material ongoing revenues. We intend to continue to seek opportunities for the V-Inline Separator. Our ability to increase our revenues in future periods will depend on a number of factors, many of which are beyond our control, including our ability to generate sales of the V-Inline Separator, our ability to leverage the Grant Back License to generate additional revenues, the continuing impact of the Covid-19 pandemic on the economy in general and the Company in particular, competitive efforts and other general economic trends. There are no assurances we will return to the pre-Covid revenue and profitability levels of 2019 or report profitable operations in the future. Further, the lingering economic impact of the Covid-19 pandemic may have a continued negative effect on the potential for sales of V-inline Separators. At September 30, 2021, we had a working capital deficit of $ 1,119,842 , an accumulated deficit of $ 16,443,894 . We do not have any external sources of liquidity. Our revenues have declined significantly from year ended December 31, 2019, our last full reporting period prior to the start of Covid-19 pandemic and has yet to recover. Covid-19 pandemic has created a very challenging economic condition for our company. In an effort to conserve our cash resources to sustain our operations until such time as the economy begins returning to pre-Covid-19 pandemic activity levels, we have reduced employee hours, continue to accrue a portion of management’s salary, and sold under-utilized equipment. We also have begun marketing our machining capabilities to local manufactures. There are no assurances, however, that these efforts will be sufficient to permit us to pay our operating expenses. In the event we cannot increase our revenues, we may be required to scale back or cease operations, sell or liquidate our assets and possibly seek bankruptcy protection. As a result of the above, there is substantial doubt about the ability of the Company to continue as a going concern and the accompanying condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The accompanying condensed consolidated financial statements do not include any adjustments that may result from the outcome of this uncertainty. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE C - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION The condensed consolidated financial statements presented herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated financial statements should be read in conjunction with the company’s annual consolidated financial statements, notes and accounting policies included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, as filed with the SEC on March 31, 2021. In the opinion of management, all adjustments, which are necessary to provide a fair presentation of financial position as of September 30, 2021, and the related operating results and cash flows for the interim period presented, have been made. The results of operations, for the period presented are not necessarily indicative of the results to be expected for the year. Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of the parent company, Enviro Technologies U.S., Inc., and its wholly-owned subsidiary, Florida Precision Aerospace, Inc. All significant intercompany accounts and transactions have been eliminated. Estimates 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 disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates include valuation of deferred tax assets, allowance for doubtful accounts and allowance for inventory obsolescence. Actual results may differ. Revenue Recognition We account for our revenues in accordance with the Accounting Standard Codification Topic 606, “ Revenue from Contracts with Customers The Company derives its revenue from the sale of the V-Inline Separators and some high precision manufacturing projects. We pursued designing, manufacturing and selling face shields during the Covid-19 quarantine period and are constantly seeking other sources of revenues. Revenues that are generated from high precision manufacturing projects are recognized when we satisfy a performance obligation by transferring control of the promised goods or services to our customers at a point in time, in an amount specified in the contract with our customer and that reflects the consideration we expect to be entitled to in exchange for those goods or services. The Company also assesses our customer’s ability and intention to pay, which is based on a variety of factors including our customer’s historical payment experience and financial condition. Revenues that are generated from sales of V-Inline separators, auxiliary equipment and parts and face shields are typically recognized upon shipment. Our standard agreements generally do not include customer acceptance or post shipment installation provisions. However, if such provisions have been included or there is an uncertainty about customer order, revenue is deferred until we have evidence of customer order and all terms of the agreement have been complied with. As of September 30, 2021, and December 31, 2020, respectively, there was $ 0 of deposits from customers. ENVIRO TECHNOLOGIES U.S., INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2021 (UNAUDITED) ACCOUNTS RECEIVABLE Accounts receivable are presented net of an allowance for doubtful accounts. The company maintains allowances for doubtful accounts for estimated losses. The company reviews the accounts receivable on a periodic basis and makes general and specific allowance when there is a doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, customer’s historical payment history, and its current credit-worthiness and current economic trends. Accounts are written off after exhaustive efforts at collections. At September 30, 2021 and December 31, 2020, the Company has $ 7,044 and $ 7,044 in the allowance for doubtful accounts, respectively. Fair Value of Instruments The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, inventory, accounts payable and accrued expenses at September 30, 2021 and December 31, 2020, approximate their fair value because of their relatively short-term nature. ASC 820 “ Disclosures about Fair Value of Financial Instruments The Company accounts for certain assets and liabilities at fair value. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value is observable in the market. We categorize each of our fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are: Level 1—inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. We have no Level 1 instruments as of September 30, 2021 and December 31, 2020. Level 2— inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques (e.g. the Black-Scholes model) for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, foreign exchange rates, and forward and spot prices for currencies and commodities. We have no Level 2 instruments as of September 30, 2021 and December 31, 2020. Level 3— inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including option pricing models and discounted cash flow models. We have no Level 3 instruments as of September 30, 2021 and December 31, 2020. Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less at the date of purchase to be cash equivalents. The Company maintains its cash balances with various financial institutions. Balances at these institutions may at times exceed the Federal Deposit Insurance Corporate (“FDIC”) limits. As of September 30, 2021 and December 31, 2020, the Company has a cash concentration in excess of FDIC limits of $ 0 and $ 80,014 , respectively. ENVIRO TECHNOLOGIES U.S., INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2021 (UNAUDITED) Inventory Inventory primarily consists of components, including raw material and finished parts for the V-Inline Separator and face shields and is priced at lower of cost or net realizable value. Net realizable value is defined as sales price less cost of completion and disposable and transportation. Inventory may include units being rented on a short term basis or components held by third parties in connection with pilot programs as part of the continuing evaluation by such third parties as to the effectiveness and usefulness of the service to be incorporated into their respective operations. The third parties do not have a contractual obligation to purchase the equipment. The Company maintains the title and risk of loss. Therefore, these units are included in the inventory of the Company. As of September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 Raw materials $ 24,142 $ 30,145 Work in process 20,350 10,240 Finished goods 73,250 72,950 Total $ 117,742 $ 113,335 Inventory amounts are presented net of allowance for inventory reserves of $ 75,785 and $ 75,785 as of September 30, 2021 and December 31, 2020, respectively. Fixed Assets Fixed assets are stated at cost less accumulated depreciation. The cost of maintenance and repairs is expensed to operations as incurred. Depreciation is computed by the straight-line method over the estimated economic useful life of the assets ( 5 - 10 years). Gains and losses recognized from the sales or disposal of assets is the difference between the sales price and the recorded cost less accumulated depreciation less costs of disposal. Net Loss Per Share In accordance with the accounting guidance now codified as FASB ASC Topic 260, “ Earnings per Share” As of September 30, 2021 and 2020, there were 10,000 and 10,000 shares issuable upon the exercise of options, respectively. The Company had a net loss for three and nine months ended September 30, 2021 and 2020; therefore, common stock equivalent shares are excluded from the computation of net loss per share if their effect is anti-dilutive. INCOME TAXES The Company accounts for income taxes under ASC 740-10-25. Under ASC 740-10-25, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740-10-25, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. BUSINESS SEGMENTS The Company operates in one segment and therefore segment information is not presented. ENVIRO TECHNOLOGIES U.S., INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2021 (UNAUDITED) LEASES The Company accounts for leases in accordance with Accounting Standard Codification Topic 842. Advertising Costs Advertising costs are expensed as incurred and are included in general and administrative expenses. There was $ 151 and $ 370 in advertising costs during the three months ended September 30, 2021 and September 30, 2020, respectively. There was $ 635 and $ 3,667 in advertising costs during the nine months ended September 30, 2021 and September 30, 2020, respectively. Stock-Based Compensation The Company accounts for stock-based instruments issued for services in accordance with ASC 718 “ Compensation – Stock Compensation Recent Accounting Pronouncements All newly issued accounting pronouncements, but not yet effective, have been deemed either immaterial or not applicable. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE D - RELATED PARTY TRANSACTIONS For the three months ended September 30, 2021, the Company incurred salary expenses for the Chief Executive Officer of the Company of $ 52,500 , of which a total of $ 0 of salary and accrued salary have been paid. During the nine months ended September 30, 2021, the Company incurred salary expenses for the Chief Executive Officer of the Company of $ 157,500 , of which a total of $ 26,250 salary has been paid. The total unpaid balance as of September 30, 2021 is $ 795,565 and is included in accrued expenses – related party. During the three and nine months ended September 30, 2020, the Company incurred salary expenses for the Chief Executive Officer of the Company of $ 52,500 and $ 157,500 , respectively. During the nine months ended September 30, 2020, a total of $ 75,000 of salary was paid and $ 81,650 of accrued salary were used to exercise the options for Mr. DiBella, Adele DiBella, and two employees of the Company (See Note G). The total unpaid balance as of September 30, 2020 was $611,815 , which were included in accrued expenses – related party. Effective July 1, 2017, our non-employee directors receive a monthly fee of $ 1,000 for serving on the board of directors. During the three and nine months ended September 30, 2021 and 2020, Raynard Veldman, received compensation for being a member of the Company’s board of directors of $ 3,000 and $ 9,000 , respectively. The unpaid balance of $ 21,000 has been included in accrued expenses-related party. Mr. John DiBella does not receive compensation for being a member of the Company’s board of directors. Effective July 1, 2017, Raynard Veldman, a member of the Company’s board of directors, receives a fee of $ 2,500 per month for consulting services. During the three and nine months ended September 30, 2021 and 2020, Mr. Veldman received consulting fees of $ 7,500 and $ 22,500 , respectively. The unpaid balance of $ 53,000 has been included in accrued expenses- related party. During the three months ended September 30, 2020, Mr. Veldman reduced his accrued fees by $ 10,000 to exercise his options (See Note G). As of September 30, 2021 and December 31, 2020 74,000 and $ 42,500 respectively. On June 9, 2020, the Company issued 3,800,000 shares of its common stock to a related party in connection with the exercise of a stock option at an exercise price of $ 0.01 . Mr. DiBella agreed reduce his accrued salary in the amount of $ 3,000 for the exercise of options and an outside consultant agreed to reduce her payable in the amount of $ 35,000 for the exercise of options. |
FIXED ASSETS
FIXED ASSETS | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
FIXED ASSETS | NOTE E – FIXED ASSETS Fixed assets as of September 30, 2021 and December 31, 2020 consist of: September 30, 2021 December 31, 2020 Machinery and equipment $ 490,927 $ 941,473 Furniture and fixtures 14,498 14,498 Autos and Trucks -- 5,294 Total 505,425 961,265 Less: accumulated depreciation (498,472 ) (648,797 ) Fixed Assets, net $ 6,953 $ 312,468 Depreciation expense was $ 206 and $ 11,328 for the three months ended September 30, 2021 and 2020, respectively. Depreciation expense was $ 15,504 and $ 33,984 for the nine months ended September 30, 2021 and 2020, respectively. The Company sold its CNC machining equipment for a sales price of $ 275,000 and incurred a loss of $ 15,011 from the sale of equipment. See Note F below. |
EQUIPMENT NOTE PAYABLE
EQUIPMENT NOTE PAYABLE | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
EQUIPMENT NOTE PAYABLE | NOTE F – EQUIPMENT NOTE PAYABLE In July 2017, the Company entered into a financing agreement for the purchase of CNC machining equipment valued at approximately $ 426,000 . The machining equipment was received in July 2017 and was used for the manufacture of Voraxial Separators under the Supply Agreement and sales of the V-Inline Separators. Under the terms of the agreement the Company made an initial down payment of $ 85,661 and is required to make monthly payments of $ 6,788 through January 2023 . In addition, the Company incurred $ 24,281 of installation costs. In April 2021, the Company entered into a purchase agreement to sell its CNC machining equipment for $ 275,000 . The Company sold the equipment as the utilization of the CNC machining equipment for customer specific projects and the separation equipment decreased due to the Covid-19 pandemic. The Company can still manufacture the Voraxial and V-Inline Separators and manufacture customer specific projects with its current manufacturing equipment. As of September 30, 2021 and December 31, 2020 the amount owed is $ 0 and $ 175,398 , respectively. Schedule of equipment note payable September 30, 2021 (unaudited) December 31, 2020 Equipment note payable $ - $ 175,398 Less: current portion - 71,812 Long-term equipment note payable $ - $ 103,586 |
shareholders_ equity
shareholders’ equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
shareholders’ equity | note G – shareholders’ equity COMMON STOCK On June 9, 2020, the Company issued to 35,000 shares of its common stock to employees at $ 0.28 per share, or $ 9,800 , for services rendered. The Company valued these common shares based on the fair value at the date of grant. On June 9, 2020, the Company issued 770,000 shares of its common stock to our Chief Executive Officer in connection with the exercise of a stock option at an exercise price of $ 0.10 . Mr. DiBella reduced his accrued salary in the amount of $ 77,000 for the exercise of options. On June 9, 2020, the Company issued 100,000 shares of its common stock to Mr. Veldman in connection with the exercise of a stock ENVIRO TECHNOLOGIES U.S., INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2021 (UNAUDITED) option at an exercise price of $ 0.10 . Mr. Veldman reduced his accrued consulting and Board of Director fees in the amount of $ 10,000 for the exercise of options. On June 9, 2020, the Company issued 70,000 shares of its common stock to a consultant in connection with the exercise of a stock option at an exercise price of $ 0.10 . The consultant agreed to reduce her payable in the amount of $ 7,000 for the exercise of options. On June 9, 2020, the Company issued 16,500 shares of its common stock to two employees in connection with the exercise of a stock option at an exercise price of $ 0.10 . Mr. DiBella agreed reduce his accrued salary in the amount of $ 1,650 for the exercise of options. On June 9, 2020, the Company issued 380,000 shares of its common stock to a related party in connection with the exercise of a stock option at an exercise price of $ 0.10 . Mr. DiBella agreed reduce his accrued salary in the amount of $ 3,000 for the exercise of options and an outside consultant agreed to reduce her payable in the amount of $ 35,000 for the exercise of options. Options Information with respect to options outstanding and exercisable at September 30, 2021 is as follows : Number Outstanding Exercise Price Number Exercisable Balance, December 31, 2020 10,000 $0.10 10,000 Issued — — — Expired — — — Forfeited — — — Balance, September 30, 2021 10,000 $0.10 10,000 Exercise Price Number Weighted Average Weighted Number Weighted 0.10 10,000 2.13 $0.10 10,000 $0.10 Total 10,000 — — 10,000 — The aggregate intrinsic value represents the excess amount over the exercise price optionees would have received if all the options have been exercised on the last business day of the period indicated based on the Company’s closing stock price of for such day. The aggregate intrinsic value as of September 30, 2021 is $ 585 . The Company accounts for stock-based instruments issued for services in accordance with ASC 718 “ Compensation – Stock Compensation The Black-Scholes option-pricing model was developed for use in estimating the fair value of traded options, which have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility. Because the Company’s stock options and warrants have characteristics different from those of its traded stock, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing models do not necessarily provide a reliable single measure of the fair value of such stock options. The risk-free interest rate is based upon quoted market yields for United States Treasury debt securities with a term similar to the expected term. The expected dividend yield is based upon the Company’s history of having never issued a dividend and management’s current expectation of future action surrounding dividends. Expected volatility was based on historical data for the trading of our stock on the open market. The expected lives for such grants were based on the simplified method. ENVIRO TECHNOLOGIES U.S., INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2021 (UNAUDITED) REVERSE SPLIT On August 27, 2020 the Company filed Articles of Amendment to its Articles of Incorporation which, on the effective date of September 10, 2020 (the “Effective Date”): • effected a ten for one (10:1) reverse stock split of our outstanding common stock (“Reverse Stock Split”); and • eliminated the existing class of preferred stock and create a new class of blank check preferred stock consisting of 5,000,000 shares. These actions were approved by our shareholders at our 2020 Annual Meeting held on August 20, 2020. As a result of the Reverse Stock Split, on the Effective Date each 10 shares of our common stock issued and outstanding immediately prior to the Effective Date became one share of our common stock on the Effective Date. No fractional shares of common stock were issued to any shareholder in connection with the Reverse Stock Split and all fractional shares which might otherwise be issuable as a result of the Reverse Stock Split were rounded up to the nearest whole share. On the Effective Date, each certificate representing shares of pre-Reverse Stock Split common stock was deemed to represent one-tenth of a share of our post-Reverse Stock Split common stock, subject to rounding for fractional shares. The Reverse Stock Split also affected the Company’s outstanding stock options which resulted in the underlying shares of such instruments being reduced and exercise price being increased proportionally to the Reverse Stock Split ratio. All shares and per share data have been retroactively adjusted for all periods presented to reflect the effects of the Reverse Stock Split. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE H – COMMITMENTS AND CONTINGENCIES SBA AND PPP LOANS On May 4, 2020 , FPA received a loan (the “2020 PPP Loan”) from Bank of America, N.A. in the aggregate amount of $ 111,971 , pursuant to the Paycheck Protection Program (the “PPP”) under Division A, Title I of the CARES Act, which was enacted March 27, 2020. The 2020 PPP Loan, which was in the form of a promissory note dated May 4, 2020 issued by FPA, matures on May 4, 2022 and bears interest at a rate of 1% per annum. The Note may be prepaid by FPA at any time prior to maturity with no prepayment penalties. Funds from the PPP Loan may only be used for payroll costs, costs used to continue group health care benefits, mortgage payments, rent, utilities, and interest on other debt obligations incurred before February 15, 2020. FPA believes it used the entire 2020 PPP Loan amount for qualifying expenses. Under the terms of the PPP Loan, certain amounts of the 2020 PPP Loan may be forgiven if they are used for qualifying expenses as described in the CARES Act. We applied for forgiveness of the PPP Loan in accordance with the terms of the CARES Act and are in discussions with Bank of America. Loan payments are deferred for borrowers who apply for loan forgiveness until SBA remits the borrowers loan forgiveness amount to the lender. On April 5, 2021 , FPA received a loan (the “2021 PPP Loan”) from Cross River Bank. in the aggregate amount of $ 75,085 , pursuant to the PPP under the CARES Act. The 2021 PPP Loan, which was in the form of a promissory note dated April 5, 2021 issued by FPA, has a 60 month term and matures on April 5, 2026 and bears interest at a rate of 1.00% per annum. The note may be prepaid by FPA at any time prior to maturity with no prepayment penalties. Funds from the PPP Loan may only be used for payroll costs, costs used to continue group health care benefits, mortgage payments, rent, utilities, and interest on other debt obligations. FPA intends to use the entire 2021 PPP Loan amount for qualifying expenses. Under the terms of the PPP, certain amounts of the 2021 PPP Loan may be forgiven if they are used for qualifying expenses as described in the CARES Act. Loan payments are deferred for borrowers who apply for loan forgiveness until SBA remits the borrowers loan forgiveness amount to the lender. We have been forgiven for the full amount of the PPP Loan in accordance with the terms of the CARES Act. In accounting for the terms of the PPP Loan, the Company is guided by ASC 470 Debt, and ASC 450-30 Gain contingency. Accordingly, the Company derecognized the PPP Loan liability and related interest of $ 75,352 ENVIRO TECHNOLOGIES U.S., INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2021 (UNAUDITED) On June 23, 2020, FPA executed the standard loan documents required for securing a loan (the “EIDL Loan”) from the SBA under its Economic Injury Disaster Loan (“EIDL”) assistance program in light of the impact of the Covid-19 pandemic on the Company’s business. Pursuant to that certain Loan Authorization and Agreement, the principal amount of the EIDL Loan is up to $ 150,000 , with proceeds to be used for working capital purposes. On July 16, 2020, the Company has requested $ 150,000 in disbursements under the EIDL Loan. The funds were received on July 20, 2020 . Interest accrues at the rate of 3.75 % per annum. Installment payments, including principal and interest, are due monthly beginning July 16, 2022 in the amount of $ 731 . The balance of principal and interest is payable 30 years from the date of the SBA Note . In connection therewith, FPA executed (i) a note for the benefit of the SBA, which contains customary events of default and (ii) a Security Agreement, granting the SBA a security interest in all tangible and intangible personal property of FPA, which also contains customary events of default. As of September 30, 2021, the accrued interest on these loans was $ 8,461 . On July 2, 2021 and July 7, 2021 we received an SBA Grant in the amount of $ 5,000 and $ 2,000 respectively, under the COVID-19 Economic Injury Disaster Loan (EIDL) program. These grants do not need to be repaid and recognized as Other Income on our condensed consolidated statements of operations. September 30, 2021 (unaudited) December 31, 2020 Loans payable $ 261,971 $ 261,971 Less: current portion (111,971 ) (65,867 ) Long-term loans payable $ 150,000 $ 196,104 Litigation On or about October 23, 2017, a claim was filed in the 17th Judicial Circuit Court in and for Broward County in Fort Lauderdale, Florida, by the plaintiff, Industrial and Oilfield Procurement Services, LLC, against our company. The case involves an alleged breach of contract between the parties relating to the purchase and sale of a Voraxial unit in 2015. The plaintiff has demanded a refund and damages. On October 7, 2021, we entered into a settlement agreement with the plaintiff. See Note K below. |
LEASE
LEASE | 9 Months Ended |
Sep. 30, 2021 | |
Lease | |
LEASE | NOTE I - LEASE In December 2018, the Company entered into a three (3) year lease for an office and manufacturing facility located at 821 NW 57 th the company executed the option to extend the lease for three (3) more years. For the three months ended September 30, 2021 and 2020, the total lease cost was $ 20,100 and $ 14,000 , respectively, which includes variable lease cost of approximately $ 8,000 and $ 1,700 , respectively. Variable lease cost primarily relates to common area maintenance, property taxes and insurance on leased real estate. For the nine months ended September 30, 2021 and 2020, the total lease cost was $ 61,000 and$ 53,000 , respectively, which includes variable lease cost of $ 17,100 and $ 11,000 , respectively. For the nine months ended September 30, 2021 and 2020, cash paid for operating lease liabilities was approximately $ 34,000 and$ 32,000 , respectively. |
MAJOR CUSTOMERS
MAJOR CUSTOMERS | 9 Months Ended |
Sep. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
MAJOR CUSTOMERS | NOTE J – MAJOR CUSTOMERS During the nine months ended September 30, 2021, we recorded 86 % of our revenue from two customers, with each representing 61 % and 25 % of total revenues. ENVIRO TECHNOLOGIES U.S., INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2021 (UNAUDITED) During the three months ended September 30, 2021, we recorded 82 % of our revenue from two customers, with each representing 48 % and 34 % of total revenues. During the nine months ended September 30, 2020, we recorded 74 % of our revenue from three customers, with each representing 39 %, 18 % and 17 % of total revenues. During the three months ended September 30, 2020, we recorded 91 % of our revenue from three customers, with each representing 42 %, 30 % and 19 % of total revenues. As of September 30, 2021, three of the Company’s customers represents 52 %, 36 % and 12 % of the total accounts receivable. As of December 31, 2020, three of the Company’s customers represents 68 %, 17 % and 15 % of the accounts receivables. |
subsequent events
subsequent events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
subsequent events | NOTE K – subsequent events As disclosed in Note H, on or about October 23, 2017, a claim was filed in the 17th Judicial Circuit Court in and for Broward County in Fort Lauderdale, Florida, by the plaintiff, Industrial and Oilfield Procurement Services, LLC, against our company. In an effort to avoid the continued costs and expenses of litigation, the parties entered into a settlement agreement on October 7, 2021 whereby the Company paid the plaintiff $ 15,000 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The condensed consolidated financial statements presented herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated financial statements should be read in conjunction with the company’s annual consolidated financial statements, notes and accounting policies included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, as filed with the SEC on March 31, 2021. In the opinion of management, all adjustments, which are necessary to provide a fair presentation of financial position as of September 30, 2021, and the related operating results and cash flows for the interim period presented, have been made. The results of operations, for the period presented are not necessarily indicative of the results to be expected for the year. |
Principles of Consolidation | Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of the parent company, Enviro Technologies U.S., Inc., and its wholly-owned subsidiary, Florida Precision Aerospace, Inc. All significant intercompany accounts and transactions have been eliminated. |
Estimates | Estimates 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 disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates include valuation of deferred tax assets, allowance for doubtful accounts and allowance for inventory obsolescence. Actual results may differ. |
Revenue Recognition | Revenue Recognition We account for our revenues in accordance with the Accounting Standard Codification Topic 606, “ Revenue from Contracts with Customers The Company derives its revenue from the sale of the V-Inline Separators and some high precision manufacturing projects. We pursued designing, manufacturing and selling face shields during the Covid-19 quarantine period and are constantly seeking other sources of revenues. Revenues that are generated from high precision manufacturing projects are recognized when we satisfy a performance obligation by transferring control of the promised goods or services to our customers at a point in time, in an amount specified in the contract with our customer and that reflects the consideration we expect to be entitled to in exchange for those goods or services. The Company also assesses our customer’s ability and intention to pay, which is based on a variety of factors including our customer’s historical payment experience and financial condition. Revenues that are generated from sales of V-Inline separators, auxiliary equipment and parts and face shields are typically recognized upon shipment. Our standard agreements generally do not include customer acceptance or post shipment installation provisions. However, if such provisions have been included or there is an uncertainty about customer order, revenue is deferred until we have evidence of customer order and all terms of the agreement have been complied with. As of September 30, 2021, and December 31, 2020, respectively, there was $ 0 of deposits from customers. |
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE Accounts receivable are presented net of an allowance for doubtful accounts. The company maintains allowances for doubtful accounts for estimated losses. The company reviews the accounts receivable on a periodic basis and makes general and specific allowance when there is a doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, customer’s historical payment history, and its current credit-worthiness and current economic trends. Accounts are written off after exhaustive efforts at collections. At September 30, 2021 and December 31, 2020, the Company has $ 7,044 and $ 7,044 in the allowance for doubtful accounts, respectively. |
Fair Value of Instruments | Fair Value of Instruments The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, inventory, accounts payable and accrued expenses at September 30, 2021 and December 31, 2020, approximate their fair value because of their relatively short-term nature. ASC 820 “ Disclosures about Fair Value of Financial Instruments The Company accounts for certain assets and liabilities at fair value. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value is observable in the market. We categorize each of our fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are: Level 1—inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. We have no Level 1 instruments as of September 30, 2021 and December 31, 2020. Level 2— inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques (e.g. the Black-Scholes model) for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, foreign exchange rates, and forward and spot prices for currencies and commodities. We have no Level 2 instruments as of September 30, 2021 and December 31, 2020. Level 3— inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including option pricing models and discounted cash flow models. We have no Level 3 instruments as of September 30, 2021 and December 31, 2020. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less at the date of purchase to be cash equivalents. The Company maintains its cash balances with various financial institutions. Balances at these institutions may at times exceed the Federal Deposit Insurance Corporate (“FDIC”) limits. As of September 30, 2021 and December 31, 2020, the Company has a cash concentration in excess of FDIC limits of $ 0 and $ 80,014 , respectively. |
Inventory, Policy [Policy Text Block] | Inventory Inventory primarily consists of components, including raw material and finished parts for the V-Inline Separator and face shields and is priced at lower of cost or net realizable value. Net realizable value is defined as sales price less cost of completion and disposable and transportation. Inventory may include units being rented on a short term basis or components held by third parties in connection with pilot programs as part of the continuing evaluation by such third parties as to the effectiveness and usefulness of the service to be incorporated into their respective operations. The third parties do not have a contractual obligation to purchase the equipment. The Company maintains the title and risk of loss. Therefore, these units are included in the inventory of the Company. As of September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 Raw materials $ 24,142 $ 30,145 Work in process 20,350 10,240 Finished goods 73,250 72,950 Total $ 117,742 $ 113,335 Inventory amounts are presented net of allowance for inventory reserves of $ 75,785 and $ 75,785 as of September 30, 2021 and December 31, 2020, respectively. |
Fixed Assets | Fixed Assets Fixed assets are stated at cost less accumulated depreciation. The cost of maintenance and repairs is expensed to operations as incurred. Depreciation is computed by the straight-line method over the estimated economic useful life of the assets ( 5 - 10 years). Gains and losses recognized from the sales or disposal of assets is the difference between the sales price and the recorded cost less accumulated depreciation less costs of disposal. |
Net Loss Per Share | Net Loss Per Share In accordance with the accounting guidance now codified as FASB ASC Topic 260, “ Earnings per Share” As of September 30, 2021 and 2020, there were 10,000 and 10,000 shares issuable upon the exercise of options, respectively. The Company had a net loss for three and nine months ended September 30, 2021 and 2020; therefore, common stock equivalent shares are excluded from the computation of net loss per share if their effect is anti-dilutive. |
INCOME TAXES | INCOME TAXES The Company accounts for income taxes under ASC 740-10-25. Under ASC 740-10-25, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740-10-25, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. |
BUSINESS SEGMENTS | BUSINESS SEGMENTS The Company operates in one segment and therefore segment information is not presented. |
LEASES | LEASES The Company accounts for leases in accordance with Accounting Standard Codification Topic 842. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and are included in general and administrative expenses. There was $ 151 and $ 370 in advertising costs during the three months ended September 30, 2021 and September 30, 2020, respectively. There was $ 635 and $ 3,667 in advertising costs during the nine months ended September 30, 2021 and September 30, 2020, respectively. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based instruments issued for services in accordance with ASC 718 “ Compensation – Stock Compensation |
Recent Accounting Pronouncements | Recent Accounting Pronouncements All newly issued accounting pronouncements, but not yet effective, have been deemed either immaterial or not applicable. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
The Company maintains the title and risk of loss. Therefore, these units are included in the inventory of the Company. As of September 30, 2021 and December 31, 2020: | Inventory primarily consists of components, including raw material and finished parts for the V-Inline Separator and face shields and is priced at lower of cost or net realizable value. Net realizable value is defined as sales price less cost of completion and disposable and transportation. Inventory may include units being rented on a short term basis or components held by third parties in connection with pilot programs as part of the continuing evaluation by such third parties as to the effectiveness and usefulness of the service to be incorporated into their respective operations. The third parties do not have a contractual obligation to purchase the equipment. The Company maintains the title and risk of loss. Therefore, these units are included in the inventory of the Company. As of September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 Raw materials $ 24,142 $ 30,145 Work in process 20,350 10,240 Finished goods 73,250 72,950 Total $ 117,742 $ 113,335 |
FIXED ASSETS (Tables)
FIXED ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Fixed assets as of September 30, 2021 and December 31, 2020 consist of: | Fixed assets as of September 30, 2021 and December 31, 2020 consist of: September 30, 2021 December 31, 2020 Machinery and equipment $ 490,927 $ 941,473 Furniture and fixtures 14,498 14,498 Autos and Trucks -- 5,294 Total 505,425 961,265 Less: accumulated depreciation (498,472 ) (648,797 ) Fixed Assets, net $ 6,953 $ 312,468 |
EQUIPMENT NOTE PAYABLE (Tables)
EQUIPMENT NOTE PAYABLE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of equipment note payable | Schedule of equipment note payable September 30, 2021 (unaudited) December 31, 2020 Equipment note payable $ - $ 175,398 Less: current portion - 71,812 Long-term equipment note payable $ - $ 103,586 |
shareholders_ equity (Tables)
shareholders’ equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Information with respect to options outstanding and exercisable at September 30, 2021 is as follows | Information with respect to options outstanding and exercisable at September 30, 2021 is as follows : Number Outstanding Exercise Price Number Exercisable Balance, December 31, 2020 10,000 $0.10 10,000 Issued — — — Expired — — — Forfeited — — — Balance, September 30, 2021 10,000 $0.10 10,000 Exercise Price Number Weighted Average Weighted Number Weighted 0.10 10,000 2.13 $0.10 10,000 $0.10 Total 10,000 — — 10,000 — |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
These grants do not need to be repaid and recognized as Other Income on our condensed consolidated statements of operations. | On July 2, 2021 and July 7, 2021 we received an SBA Grant in the amount of $ 5,000 and $ 2,000 respectively, under the COVID-19 Economic Injury Disaster Loan (EIDL) program. These grants do not need to be repaid and recognized as Other Income on our condensed consolidated statements of operations. September 30, 2021 (unaudited) December 31, 2020 Loans payable $ 261,971 $ 261,971 Less: current portion (111,971 ) (65,867 ) Long-term loans payable $ 150,000 $ 196,104 |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
[custom:WorkingCapitalDeficit-0] | $ 1,119,842 | |
Retained Earnings (Accumulated Deficit) | $ 16,443,894 | $ 15,922,429 |
The Company maintains the title
The Company maintains the title and risk of loss. Therefore, these units are included in the inventory of the Company. As of September 30, 2021 and December 31, 2020: (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Raw materials | $ 24,142 | $ 30,145 |
Work in process | 20,350 | 10,240 |
Finished goods | 73,250 | 72,950 |
Total | $ 117,742 | $ 113,335 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)Numbershares | Sep. 30, 2020USD ($)shares | Dec. 31, 2020USD ($) | |
Property, Plant and Equipment [Line Items] | |||||
Customer Deposits, Current | $ 0 | ||||
Accounts Receivable, Allowance for Credit Loss, Current | $ 7,044 | $ 7,044 | 7,044 | ||
Cash, FDIC Insured Amount | 0 | 0 | 80,014 | ||
Inventory Valuation Reserves | 75,785 | $ 75,785 | $ 75,785 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares | 10,000 | 10,000 | |||
Number of reportable segments | Number | 1 | ||||
Advertising Expense | $ 151 | $ 370 | $ 635 | $ 3,667 | |
Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 5 years | ||||
Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 10 years |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | Jun. 09, 2020 | Jul. 01, 2017 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | |||||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 795,565 | $ 611,815 | |||||
Professional Fees | $ 34,795 | $ 47,698 | 111,195 | 160,802 | |||
Related Party [Member] | Share-based Payment Arrangement, Option [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
[custom:StockIssuedDuringPeriodSharesNewIssuesOne] | 3,800,000 | ||||||
[custom:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice2-0] | $ 0.01 | ||||||
Increase (Decrease) in Accrued Salaries | $ 3,000 | ||||||
Increase (Decrease) in Accounts Payable | $ 35,000 | ||||||
Chief Executive Officer [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Salary and Wage, NonOfficer, Excluding Cost of Good and Service Sold | 52,500 | 157,500 | |||||
[custom:SalaryPaid] | 0 | 26,250 | |||||
Mr Adele Di Bella [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
[custom:SalaryPaid] | 75,000 | ||||||
Payments to Employees | 81,650 | ||||||
Nonemployee Directors [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
[custom:MonthlyFees] | $ 1,000 | ||||||
Director [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Salary and Wage, NonOfficer, Excluding Cost of Good and Service Sold | 3,000 | 9,000 | |||||
Related Party Transaction, Expenses from Transactions with Related Party | 53,000 | ||||||
Professional Fees | $ 2,500 | $ 7,500 | $ 22,500 | ||||
[custom:AccruedCompensationAndConsultingServices] | $ 10,000 | 74,000 | $ 42,500 | ||||
Di Bella [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 21,000 |
Fixed assets as of September 30
Fixed assets as of September 30, 2021 and December 31, 2020 consist of: (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 505,425 | $ 961,265 |
Less: accumulated depreciation | (498,472) | (648,797) |
Fixed Assets, net | 6,953 | 312,468 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 490,927 | 941,473 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 14,498 | 14,498 |
Autos And Trucks [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 5,294 |
FIXED ASSETS (Details Narrative
FIXED ASSETS (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation | $ 206 | $ 11,328 | $ 15,504 | $ 33,984 |
Gain (Loss) on Disposition of Property Plant Equipment | 15,011 | |||
C N C Machine [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
[custom:SellingPriceofEquipment] | $ 275,000 |
Schedule of equipment note paya
Schedule of equipment note payable (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Equipment note payable | $ 0 | $ 175,398 |
Less: current portion | 71,812 | |
Long-term equipment note payable | $ 103,586 |
EQUIPMENT NOTE PAYABLE (Details
EQUIPMENT NOTE PAYABLE (Details Narrative) - USD ($) | 1 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Sep. 30, 2021 | Jul. 31, 2021 | Dec. 31, 2020 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Notes Payable | $ 0 | $ 175,398 | ||
C N C Machining [Member] | Financing Agreement [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Payments to Acquire Machinery and Equipment | $ 85,661 | |||
[custom:MonthlyPaymentsForMachiningEquipment] | $ 6,788 | |||
[custom:MaturityTerms] | January 2023 | |||
[custom:InstallationCost] | $ 24,281 | |||
Financing Agreement [Member] | C N C Machining [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Machinery and Equipment, Gross | $ 426,000 | |||
Purchase Agreement [Member] | C N C Machining [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
[custom:SellingPriceofEquipment] | $ 275,000 |
Information with respect to opt
Information with respect to options outstanding and exercisable at September 30, 2021 is as follows (Details) | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Beginning balance | 10,000 |
Balance at beginning (per share) | $ / shares | $ 0.10 |
Balance at beginning,exercisable | 10,000 |
Issued | |
Issued (per share) | $ / shares | |
[custom:ShareBasedCompensationArrangementByShareBasedPaymentAwardExercisableOptionsGrantsInPeriodGross] | 0 |
Expired | |
Expired | $ / shares | |
[custom:ShareBasedCompensationArrangementByShareBasedPaymentAwardExercisableOptionsExpirationsInPeriod] | 0 |
Forfeited | |
Forfeited (per share) | $ / shares | |
Forfeited (in share) | 0 |
Balance at ending | 10,000 |
Balance at ending (per share) | $ / shares | $ 0.10 |
Balance at ending (in share) | 10,000 |
Number outstanding | 10,000 |
Weighted average remaining contractual life | 0 years |
Weighted average exercise price | $ / shares | $ 0 |
Number exercisable | 10,000 |
Weighted average exercise price | $ / shares | $ 0 |
Exercise Price One [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number outstanding | 10,000 |
Weighted average remaining contractual life | 2 years 1 month 16 days |
Weighted average exercise price | $ / shares | $ 0.10 |
Number exercisable | 10,000 |
Weighted average exercise price | $ / shares | $ 0.10 |
shareholders_ equity (Details N
shareholders’ equity (Details Narrative) - USD ($) | Jun. 09, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Stock Issued During Period, Value, Issued for Services | $ 9,800 | ||
Share-based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Exercise Price | $ 0 | ||
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Exercisable | 10,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 585 | ||
[custom:PreferredStockShares-0] | 5,000,000 | ||
Share-based Payment Arrangement, Option [Member] | Related Party [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Stock Issued During Period, Shares, New Issues | 380,000 | ||
Share-based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Exercise Price | $ 0.10 | ||
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Exercisable | 35,000 | ||
[custom:AccuredSalary-0] | $ 3,000 | ||
Common Stock [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Stock Issued During Period, Shares, Issued for Services | 35,000 | ||
Stock Issued During Period, Value, Issued for Services | $ 35 | ||
Employees [Member] | Common Stock [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Stock Issued During Period, Shares, Issued for Services | 35,000 | ||
Shares Issued, Price Per Share | $ 0.28 | ||
Stock Issued During Period, Value, Issued for Services | $ 9,800 | ||
Chief Executive Officer [Member] | Share-based Payment Arrangement, Option [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Stock Issued During Period, Shares, New Issues | 770,000 | ||
Share-based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Exercise Price | $ 0.10 | ||
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Exercisable | 77,000 | ||
Raynard Veldman [Member] | Share-based Payment Arrangement, Option [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Stock Issued During Period, Shares, New Issues | 100,000 | ||
Share-based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Exercise Price | $ 0.10 | ||
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Exercisable | 10,000 | ||
Consultant [Member] | Share-based Payment Arrangement, Option [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Stock Issued During Period, Shares, New Issues | 70,000 | ||
Share-based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Exercise Price | $ 0.10 | ||
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Exercisable | 7,000 | ||
Two Employee [Member] | Share-based Payment Arrangement, Option [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Stock Issued During Period, Shares, New Issues | 16,500 | ||
Share-based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Exercise Price | $ 0.10 | ||
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Exercisable | 1,650 |
These grants do not need to be
These grants do not need to be repaid and recognized as Other Income on our condensed consolidated statements of operations. (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Loans payable | $ 261,971 | $ 261,971 |
Less: current portion | (111,971) | (65,867) |
Long-term loans payable | $ 150,000 | $ 196,104 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | Apr. 05, 2021 | Jul. 16, 2020 | May 04, 2020 | Sep. 30, 2021 | Jun. 23, 2020 |
Long-term Debt, Fair Value | $ 731 | ||||
Deposit Liabilities, Accrued Interest | 8,461 | ||||
P P P Loan [Member] | |||||
Debt instrument face amount | $ 75,352 | ||||
Economic Injury Disaster Loan [Member] | Agreement [Member] | |||||
Debt Instrument, Issuance Date | Jul. 20, 2020 | ||||
Debt instrument face amount | $ 150,000 | ||||
[custom:DisbursementsAmount] | $ 150,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.75% | ||||
Debt Instrument, Payment Terms | . The balance of principal and interest is payable 30 years from the date of the SBA Note | ||||
Subsidiaries [Member] | P P P Loan [Member] | Bank Of America N A [Member] | |||||
Debt Instrument, Issuance Date | May 4, 2020 | ||||
Loans Receivable, Fair Value Disclosure | $ 111,971 | ||||
[custom:DescriptionOfDebtObligations] | Funds from the PPP Loan may only be used for payroll costs, costs used to continue group health care benefits, mortgage payments, rent, utilities, and interest on other debt obligations incurred before February 15, 2020. | ||||
Subsidiaries [Member] | P P P Loan [Member] | Cross River Bank [Member] | |||||
Loans Receivable, Fair Value Disclosure | $ 75,085 | ||||
Debt Instrument, Maturity Date | Apr. 5, 2021 |
LEASE (Details Narrative)
LEASE (Details Narrative) - USD ($) | Oct. 28, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 |
Lease | ||||||
Lease option to extend | the company executed the option to extend the lease for three (3) more years. | |||||
Lease, Cost | $ 20,100 | $ 14,000 | $ 61,000 | $ 53,000 | ||
Variable Lease, Cost | 8,000 | $ 1,700 | 17,100 | $ 11,000 | ||
Operating Lease, Liability | $ 34,000 | $ 34,000 | $ 32,000 |
MAJOR CUSTOMERS (Details Narrat
MAJOR CUSTOMERS (Details Narrative) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 82.00% | 91.00% | 86.00% | 74.00% | |
Customer Concentration Risk One [Member] | Revenue Benchmark [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 48.00% | 42.00% | 61.00% | 39.00% | |
Customer Concentration Risk One [Member] | Accounts Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 52.00% | 68.00% | |||
Customer Concentration Risk Two [Member] | Revenue Benchmark [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 34.00% | 30.00% | 25.00% | 18.00% | |
Customer Concentration Risk Two [Member] | Accounts Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 36.00% | 17.00% | |||
Customer Concentration Risk Three [Member] | Revenue Benchmark [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 19.00% | 17.00% | |||
Customer Concentration Risk Three [Member] | Accounts Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 12.00% | 15.00% |
subsequent events (Details Narr
subsequent events (Details Narrative) | Oct. 07, 2021USD ($) |
Subsequent Event [Member] | Settlement Agreement [Member] | |
Subsequent Event [Line Items] | |
Settlement agreement | $ 15,000 |