| ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ORGANIZATION/NATURE OF BUSINESS Proteo, Inc. and Proteo Marketing, Inc.
("PMI"), a Nevada corporation, which began operations in November 2000, entered into a reorganization and stock exchange
agreement in December 2000 with Proteo Biotech AG ("PBAG"), a German corporation, incorporated in Kiel, Germany. Pursuant
to the terms of the agreement, all of the shareholders of PBAG exchanged their common stock for 2,500,000 shares of PMI common
stock. As a result, PBAG became a wholly owned subsidiary of PMI. Proteo Inc.'s common stock is quoted on the OTC Pink under the
symbol "PTEO." Effective December 31, 2004, PMI merged into Proteo, Inc. PBAG and Proteo, Inc. are hereinafter collectively
referred to as the "Company." The Company intends to develop, promote
and market pharmaceuticals and other biotech products. The Company is focused on the development of pharmaceuticals based on the
human protein Elafin. Elafin is a human protein that naturally occurs in human skin, lungs, and mammary glands. The Company believes
Elafin may be useful in the treatment of post-surgery damage to tissue, complications resulting from organ transplantation, pulmonary
hypertension, as well as other diseases. Since its inception, the Company has primarily
been engaged in the research and development of its proprietary product Elafin. Once the research and development phase is complete,
the Company will seek to obtain the various governmental regulatory approvals for the marketing of Elafin. The Company has not
generated any significant revenues from product sales. The Company believes that none of its planned products will produce sufficient
revenues in the near future. There are no assurances that the Company will be able to obtain regulatory approvals for marketing
of Elafin, or if approved, that Elafin will be accepted in the marketplace. CONCENTRATIONS The Company maintains substantially all
of its cash in bank accounts at a private German commercial bank. The Company's bank accounts at this financial institution are
presently protected by the voluntary Deposit Protection Fund of The German Private Commercial Banks. As such, the Company's bank
is a member of this deposit protection fund. The Company has not experienced any losses in these bank accounts. The Company's research and development
activities and most of its assets are located in Germany. The Company's operations are subject to various political, economic,
and other risks and uncertainties inherent in Germany and the European Union. OTHER RISKS AND UNCERTAINTIES The Company will require substantial additional
funding for continuing research and development, obtaining regulatory approval, and for the commercialization of its products.
Management plans to generate revenues from product sales, but there are no products currently approved and there are no purchase
commitments for any of the proposed products. Additionally, the Company may generate revenues from out-licensing activities. There
can be no assurance that further out-licensing may be achieved or whether such will generate significant profit. In the absence
of significant sales and profits, the Company will be required to seek to raise additional funds to meet its working capital requirements
through the additional placement of debt and/or equity securities. There is no assurance that the Company will be able to obtain
sufficient additional funds when needed, or that such funds, if available, will be obtainable on terms satisfactory to the Company.
If we are unable to receive additional financing when needed, we may choose to delay or reduce other spending including Elafin
research and development spending. The Company has cash approximating $100,000
as of December 31, 2019 to support current and future operations. This is an increase of $11,000 over the December 31, 2018 cash
balance of approximately $89,000. Such cash is held by the Subsidiary in Germany in Euros. The Company does not intend to repatriate
any amount of this cash to the United States as it will be used to fund the Subsidiary’s continued operations. As for periods
beyond this filing, we expect to continue to direct the majority of our research and development expenses towards the development
of Elafin. It is extremely difficult for us to reasonably estimate all future research and development costs associated with Elafin
due to the number of unknowns and uncertainties associated with preclinical and clinical trial development. The Company's line of future pharmaceutical
products being developed by its German subsidiary are considered drugs or biologics, and as such, are governed by the Federal Food
and Drug and Cosmetics Act and by the regulations of state agencies and various foreign government agencies. There can be no assurance
that the Company will obtain the regulatory approvals required to market its products. The pharmaceutical products under development
in Germany will be subject to more stringent regulatory requirements because they are recombinant proteins for use in humans. The
Company has no experience in obtaining regulatory approvals for these types of products. Therefore, the Company will be subject
to the risks of delays in obtaining or failing to obtain regulatory clearance and other uncertainties, including financial, operational,
technological, regulatory and other risks associated with an emerging business, including the potential risk of business failure. As substantially all of the Company's operations
are in Germany, they are exposed to risks related to fluctuations in foreign currency exchange rates. The Company does not utilize
derivative instruments to hedge against such exposure. PRINCIPLES OF CONSOLIDATION The consolidated financial statements have
been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and include
the accounts of Proteo, Inc. and PBAG, its wholly owned subsidiary. All significant intercompany accounts and transactions have
been eliminated in consolidation. The Company classifies noncontrolling interests
as part of consolidated net earnings and includes the accumulated amount of noncontrolling interests as part of stockholders' deficit.
Earnings (loss) per share reflects amounts attributable only to the Company, excluding noncontrolling interests. Increases and
decreases in the Company's controlling financial interests in consolidated subsidiaries will be reported in equity similar to treasury
stock transactions. If a change in ownership of a consolidated subsidiary results in loss of control and deconsolidation, any retained
ownership interests are remeasured with the gain or loss reported in net earnings. The Company has a substantive contractual arrangement
that specifies the attribution of net earnings and loss not to exceed the noncontrolling interest (see Note 3). USE OF ESTIMATES The Company prepares its consolidated financial
statements in conformity with GAAP, which requires management to make estimates and assumptions that affect the reported amounts
of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported
amounts of revenues (if any) and expenses during the reporting period. Significant estimates made by management include, among
others, realizability of long-lived assets, revenue recognition estimates for the Development Agreement, and estimates for deferred
tax asset valuation allowances. Actual results could materially differ from such estimates. FAIR VALUE OF FINANCIAL INSTRUMENTS The Fair Value Measurements and Disclosures
Topic of the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”
or the “Codification”) requires disclosure of fair value information about financial instruments when it is practicable
to estimate that value. Management believes that the carrying amounts of the Company's financial instruments, consisting primarily
of cash and cash equivalents, receivables, and accounts payable and accrued liabilities approximate their fair value at December
31, 2019 and 2018 due to their short-term nature. The Company did not have any assets or liabilities that were measured at fair
value on a recurring or non-recurring basis as of December 31, 2019 or 2018. FOREIGN CURRENCY Assets and liabilities of the Company's
German operations are translated from Euros (the functional currency) into U.S. dollars (the reporting currency) at period-end
exchange rates. Expense and grant receipts are translated at weighted average exchange rates for the period. Net exchange gains
or losses resulting from such translation are excluded from the consolidated statements of operations and are included in comprehensive
income (loss) and accumulated in a separate component of stockholders' deficit. Accumulated other comprehensive loss approximated
$34,000 and $31,000 at December 31, 2019 and 2018, respectively. The Company records quarterly payables
related to a certain licensing agreement (Note 7) which are denominated in Euros. For each reporting period, the Company translates
the quarterly amount to U.S. dollars at the exchange rate effective on that date. If the exchange rate changes between when the
liability is incurred and the time payment is made, a foreign exchange gain or loss results. The Company made no payments under
this licensing agreement during the years ended December 31, 2019 and 2018. Additionally, the Company computes a foreign
exchange gain or loss at each balance sheet date on all recorded transactions denominated in foreign currencies that have not been
settled. The difference between the exchange rate that could have been used to settle the transaction on the date it occurred and
the exchange rate at the balance sheet date is the unrealized gain or loss that is currently recognized. The Company recorded unrealized
foreign currency transaction gains of approximately $13,000 and $30,000 for the years ended December 31, 2019 and 2018, respectively,
which are included in interest and other income, net in the accompanying consolidated statements of operations and comprehensive
income (loss). CASH AND CASH EQUIVALENTS The Company considers all highly liquid
temporary cash investments with original maturities of three months or less to be cash equivalents. Cash and cash equivalents consist
primarily of deposits with banks. RESEARCH AND DEVELOPMENT ACTIVITIES The Company capitalizes the cost of supplies
used in its research and development activities if such supplies are deemed to have alternative future uses, usually in other research
and development projects. Such costs are expensed as used to research and development expenses in the accompanying consolidated
statements of operations. All other research and development costs are expensed as incurred. The costs of materials that are acquired
for a particular research and development project and that have no alternative future uses (in other research and development projects
or otherwise) and therefore no separate economic values are expensed as research and development costs at the time the costs are
incurred. Nonrefundable advance payments for goods
or services that have the characteristics that will be used or rendered for future research and development activities are deferred
and capitalized as prepaid expenses. Such amounts are expensed to research and development as the related goods and services are
received. The Company may receive grants from the
German government which are used to fund research and development activities (see Note 6). Grant funds to be received for the reimbursement
of qualified research and development expenses are offset against such expenses in the accompanying consolidated statements of
operations and comprehensive loss when the related expenses are incurred. LONG-LIVED ASSETS Property and equipment are recorded at
cost and depreciated using the straight-line method over their expected useful lives, which range from 3 to 14 years. Leasehold
improvements are amortized over the expected useful life of the improvement or the remaining lease term, whichever is shorter.
Expenditures for normal maintenance and repairs are charged to income, and significant improvements are capitalized. The cost and
related accumulated depreciation or amortization of assets are removed from the accounts upon retirement or other disposition;
any resulting gain or loss is reflected in the consolidated statements of operations and comprehensive loss. GAAP requires that long-lived assets be
reviewed for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable.
If the cost basis of a long-lived asset is greater than the projected future undiscounted net cash flows from such asset, an impairment
loss is recognized. Impairment losses are calculated as the difference between the cost basis of an asset and its estimated fair
value. Assets to be disposed are reported at the lower of the carrying amount or fair value less costs to sell. Management believes
that no indicators of impairment existed for property and equipment as of or during the years ended December 31, 2019 and 2018. REVENUE RECOGNITION On January 1, 2018 the Company adopted
ASC Topic 606, Revenue from Contracts with Customers (Topic 606). Adoption of the new standard did not result in any change to
the Company’s retained earnings as of January 1, 2018. As of the adoption date and through December 31, 2019, management
determined that there were no revenues which were deemed to be within the scope of Topic 606. During the year ended December 31, 2018,
the Company’s revenue consisted primarily of funding received under the Development Agreement, as described more fully in
Note 5. Amounts received under this agreement were initially deferred and recognized as revenue over the projected performance
period in direct relation to development expenses incurred. During the year ended December 31, 2018,
the Company also recognized revenue in connection with a government grant. As described more fully in Note 6, funding received
under this grant were generally recognized as an offset to related expenses incurred, and that revenue was only recognized to the
extent that funding received exceeded related expenses incurred. There were no revenues recorded during
the year ended December 31, 2019. INCOME TAXES The Company accounts for income taxes using
the liability method in accordance with ASC Topic 740-10, Income Taxes. Deferred tax assets and liabilities are recognized for
future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities
and their respective tax bases. A valuation allowance is provided for significant deferred tax assets when it is more likely than
not that such assets will not be recovered. The Company also follows the provisions
of ASC Topic 740-10 relating to accounting for uncertain tax positions. Under ASC Topic 740-10, the Company must recognize the
tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination
by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements
from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate
resolution. The Company has not recognized any liabilities for uncertain tax positions as a result of ASC Topic 740-10. The Company
expects any resolution of unrecognized tax benefits, if created, would occur while the full valuation allowance of deferred tax
assets is maintained; therefore, the Company does not expect to have any unrecognized tax benefits that, if recognized, would affect
the effective tax rate. The Company will recognize interest and
penalties related to any unrecognized tax benefits within the income tax expense line in the accompanying consolidated statements
of operations. As of December 31, 2019 and 2018, management believes the Company has no unrecognized tax benefits. The Company’s income tax returns
remain open for examination by taxing authorities for a statutory defined period of time. The Company is currently not under examination
by any taxing authorities. EARNINGS (LOSS) PER COMMON SHARE Basic earnings (loss) per common share
is computed based on the weighted average number of shares outstanding for the period. Diluted earnings (loss) per common share
is computed by dividing net income (loss) available to common stockholders by the weighted average shares outstanding assuming
all dilutive potential common shares were issued. There were no dilutive potential common shares outstanding at December 31, 2019
or 2018. SUBSEQUENT EVENTS Management has evaluated subsequent events
through the date the accompanying financial statements were filed with the SEC for transactions and other events which may require
adjustment of and/or disclosure in such financial statements. As described in Note 3, 8,500,000 shares
of Common Stock were issued in February 2020 for total consideration approximating $210,000. On March 10, 2020, the World Health Organization
declared the coronavirus outbreak to be a pandemic. Actions taken around the world to help mitigate the spread of the coronavirus
include restrictions on travel, quarantines in certain areas, and forced closures for certain types of public places and businesses. The coronavirus and actions taken to mitigate
it have had and are expected to continue to have an adverse impact on the economies and financial markets of many countries, including
the geographical areas in which the Company operates. While it is unknown how long these conditions will last and what the complete
financial effects will be to the Company, the Company believes it reasonably possible that it is vulnerable to the risk of a near-term
severe impact. The coronavirus has caused a substantial
disruption in U.S. and international financial markets. The Company cannot at this point determine the subsequent near and long-term
impact of the COVID-19 pandemic on the value of the Company. COMPREHENSIVE INCOME (LOSS) Total comprehensive income (loss) represents
the net change in stockholders' deficit during a period from sources other than transactions with stockholders and as such, includes
net earnings or loss. For the Company, other comprehensive income (loss) represents the foreign currency translation adjustments,
which are recorded as components of stockholders' deficit. SEGMENTS OF AN ENTERPRISE AND RELATED INFORMATION The Company considers itself to operate
in one segment and has had no revenues from principal operations from inception. See Note 2 for information on long-lived assets
located in Germany. SIGNIFICANT RECENT ACCOUNTING PRONOUNCEMENTS In February 2016, the FASB issued ASU 2016-02,
Leases (Topic 842), which requires, among other things, lessees to recognize for all leases (with the exception of short-term leases)
a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, and a right-of-use asset,
which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term.
ASU 2016-02 is effective for the Company for the year beginning January 1, 2019. The adoption of this standard did not have a material
effect on the Company’s consolidated financial statements and related disclosures due to the short-term nature of its leases.
For these short-term leases, the Company has elected to not recognize lease assets and lease liabilities. Lease expense for such
leases are recognized on a straight-line basis over the lease term. |
