Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 14, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-31540 | |
Entity Registrant Name | FLEXIBLE SOLUTIONS INTERNATIONAL INC. | |
Entity Central Index Key | 0001069394 | |
Entity Tax Identification Number | 71-1630889 | |
Entity Incorporation, State or Country Code | A0 | |
Entity Address, Address Line One | 6001 54 Ave. | |
Entity Address, City or Town | Taber | |
Entity Address, State or Province | AB | |
Entity Address, Country | CA | |
Entity Address, Postal Zip Code | T1G 1X4 | |
City Area Code | (403) | |
Local Phone Number | 223-2995 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | FSI | |
Security Exchange Name | NYSEAMER | |
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 | 12,435,532 |
Condensed Interim Consolidated
Condensed Interim Consolidated Balance Sheets - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Current | ||
Cash and cash equivalents | $ 8,943,972 | $ 6,115,099 |
Term deposits | 1,010,241 | 700,000 |
Accounts receivable, net (Note 4) | 6,914,321 | 9,449,857 |
Inventories (Note 5) | 9,440,152 | 14,419,430 |
Prepaid expenses | 1,940,601 | 310,297 |
Total current assets | 28,249,287 | 30,994,683 |
Property, equipment and leaseholds, net (Note 6) | 12,940,325 | 9,709,288 |
Right of use assets (Note 3) | 128,484 | 167,222 |
Intangible assets (Note 8) | 2,320,000 | 2,440,000 |
Long term deposits (Note 9) | 396,154 | 8,540 |
Investments (Note 10) | 6,251,818 | 5,458,895 |
Goodwill (Note 8) | 2,534,275 | 2,534,275 |
Deferred tax asset | 274,289 | 274,289 |
Total Assets | 53,094,632 | 51,587,192 |
Current | ||
Accounts payable | 2,048,419 | 873,904 |
Accrued liabilities | 811,180 | 959,856 |
Deferred revenue | 18,220 | 387,763 |
Income taxes payable | 5,240,892 | 4,486,350 |
Short term line of credit (Note 11) | 2,818,591 | |
Current portion of lease liability (Note 3) | 59,160 | 58,080 |
Current portion of long term debt (Note 12) | 830,760 | 717,612 |
Total current liabilities | 9,008,631 | 10,302,156 |
Lease liability (Note 3) | 69,324 | 109,142 |
Deferred income tax liability | 500,459 | 500,459 |
Long term debt (Note 12) | 7,029,461 | 5,436,465 |
Total Liabilities | 16,607,875 | 16,348,222 |
Stockholders’ Equity | ||
Common stock, value | 12,436 | 12,426 |
Capital in excess of par value | 18,079,409 | 17,523,345 |
Other comprehensive loss | (605,465) | (805,799) |
Accumulated earnings | 16,253,260 | 15,903,964 |
Total stockholders’ equity – controlling interest | 33,739,640 | 32,633,936 |
Non-controlling interests (Note 15) | 2,747,117 | 2,605,034 |
Total Stockholders’ Equity | 36,486,757 | 35,238,970 |
Total Liabilities and Stockholders’ Equity | $ 53,094,632 | $ 51,587,192 |
Condensed Interim Consolidate_2
Condensed Interim Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares issued | 12,435,532 | 12,426,260 |
Common stock, shares outstanding | 12,435,532 | 12,426,260 |
Condensed Interim Consolidate_3
Condensed Interim Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Sales | $ 8,720,621 | $ 11,685,107 | $ 28,899,429 | $ 33,633,530 |
Cost of sales | 7,248,266 | 8,502,551 | 21,303,229 | 22,777,467 |
Gross profit | 1,472,355 | 3,182,556 | 7,596,200 | 10,856,063 |
Operating Expenses | ||||
Wages | 545,255 | 587,935 | 2,004,568 | 1,890,727 |
Administrative salaries and benefits | 392,051 | 220,406 | 1,179,370 | 681,017 |
Insurance | 218,723 | 185,371 | 648,698 | 508,056 |
Office and miscellaneous | 181,349 | 111,832 | 355,139 | 271,144 |
Interest expense | 119,599 | 80,609 | 369,967 | 190,366 |
Professional fees | 97,057 | 131,602 | 239,356 | 597,505 |
Travel | 60,796 | 27,659 | 187,060 | 120,185 |
Consulting | 57,941 | 85,477 | 190,171 | 248,168 |
Research | 52,834 | 19,088 | 90,169 | 63,345 |
Advertising and promotion | 50,909 | 32,705 | 161,318 | 124,910 |
Lease expense | 28,775 | 30,284 | 81,715 | 124,123 |
Investor relations and transfer agent fee | 26,626 | 34,440 | 149,511 | 100,317 |
Telecommunications | 15,640 | 10,879 | 38,650 | 31,438 |
Utilities | 12,249 | 5,451 | 25,223 | 20,635 |
Shipping | 6,032 | 6,042 | 15,798 | 18,943 |
Currency exchange | (6,808) | (20,983) | 9,693 | (9,351) |
Commissions | 529 | 2,985 | 61,459 | |
Total operating expenses | 1,859,028 | 1,549,326 | 5,749,391 | 5,042,987 |
Operating income | (386,673) | 1,633,230 | 1,846,809 | 5,813,076 |
Gain on acquisition of ENP Peru | 335,051 | |||
Gain on investment | 97,254 | (451) | 423,957 | 213,865 |
Interest income | 5,380 | 37,213 | 58,565 | 69,354 |
Income before income tax | (284,039) | 1,669,992 | 2,329,331 | 6,431,346 |
Income taxes | ||||
Income tax expense | (219,712) | (349,181) | (873,861) | (1,604,429) |
Net income for the period including non-controlling interests | (503,751) | 1,320,811 | 1,455,470 | 4,826,917 |
Less: Net income attributable to non-controlling interests | (214,410) | (212,680) | (479,397) | (523,272) |
Net income attributable to controlling interest | $ (718,161) | $ 1,108,131 | $ 976,073 | $ 4,303,645 |
Income per share (basic) | $ (0.06) | $ 0.09 | $ 0.08 | $ 0.35 |
Income per share (diluted) | $ (0.06) | $ 0.09 | $ 0.08 | $ 0.34 |
Weighted average number of common shares (basic) | 12,435,532 | 12,384,746 | 12,434,669 | 12,376,818 |
Weighted average number of common shares (diluted) | 12,496,748 | 12,417,026 | 12,517,064 | 12,479,769 |
Other comprehensive income: | ||||
Net income | $ (503,751) | $ 1,320,811 | $ 1,455,470 | $ 4,826,917 |
Unrealized gain (loss) on foreign currency translations | 140,928 | (70,167) | 200,334 | (29,531) |
Total comprehensive income | (362,823) | 1,250,644 | 1,655,804 | 4,797,386 |
Comprehensive income – non-controlling interest | (214,410) | (212,680) | (479,397) | (523,272) |
Comprehensive income attributable to Flexible Solutions International Inc. | $ (577,233) | $ 1,037,964 | $ 1,176,407 | $ 4,274,114 |
Condensed Interim Consolidate_4
Condensed Interim Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating activities | ||
Net income for the period including non-controlling interests | $ 1,455,470 | $ 4,826,917 |
Adjustments to reconcile net income to net cash: | ||
Stock based compensation | 542,474 | 164,659 |
Depreciation and amortization | 1,215,171 | 811,877 |
Lease right of use depreciation | 38,738 | 37,748 |
Lease right of use financing | 4,822 | 6,687 |
Gain on investment | (423,957) | (213,865) |
Gain on ENP Peru | (335,051) | |
Changes in non-cash working capital items: | ||
(Increase) decrease in accounts receivable | 2,535,536 | (2,638,030) |
(Increase) decrease in inventory | 4,520,141 | (4,780,381) |
Increase in prepaid expenses | (1,630,304) | (50,749) |
Increase (decrease) in accounts payable and accrued liabilities | 1,484,976 | (22,484) |
Increase in income taxes payable | 754,542 | 1,604,429 |
Increase (decrease) in deferred revenue | (369,543) | (70,295) |
Cash provided by (used in) operating activities | 10,128,066 | (658,538) |
Investing activities | ||
Non-controlling interest of 317 Mendota | 200,000 | |
Long term deposits | (387,614) | |
Additional investment in Trio | (470,000) | |
Proceeds of equity investment | 101,034 | 108,750 |
Net purchase of property, equipment and leaseholds | (4,326,208) | (647,232) |
Acquisition of ENP Peru | (499,329) | |
Cash used in investing activities | (4,882,788) | (1,037,811) |
Financing activities | ||
Repayment of short term line of credit | (2,818,591) | (276,079) |
Repayment of long term debt | (542,148) | (2,117,928) |
Loan proceeds received | 2,248,292 | 2,194,000 |
Dividends paid | (626,777) | |
Lease payments | (43,560) | (44,435) |
Distributions to non-controlling interests | (537,314) | (499,789) |
Proceeds from issuance of common stock | 13,600 | 74,020 |
Cash used in financing activities | (2,306,498) | (670,211) |
Effect of exchange rate changes on cash | 200,334 | (29,531) |
Inflow (outflow) of cash | 3,139,114 | (2,396,091) |
Cash and cash equivalents, beginning | 6,815,099 | 6,735,574 |
Cash resources | 9,954,213 | 4,339,483 |
Cash and cash equivalents consists of: | ||
Cash | 8,943,972 | 4,339,483 |
Term Deposits | 1,010,241 | |
Supplemental disclosure of cash flow information: | ||
Income taxes paid | 119,319 | |
Interest paid | 369,967 | 190,366 |
Inventory additions in accounts payable | $ 1,252,540 | $ 422,340 |
Condensed Interim Consolidate_5
Condensed Interim Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Capital in Excess of Par Value [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance at Dec. 31, 2021 | $ 12,355 | $ 16,983,648 | $ 8,882,360 | $ (775,730) | $ 25,102,633 | $ 2,602,843 | $ 27,705,476 |
Balance, shares at Dec. 31, 2021 | 12,355,246 | ||||||
Translation adjustment | 42,543 | 42,543 | 42,543 | ||||
Net income | 1,533,059 | 1,533,059 | 144,477 | 1,677,536 | |||
Common stock issued | $ 23 | 56,917 | 56,940 | 56,940 | |||
Common stock issued, shares | 22,500 | ||||||
Stock-based compensation | 54,271 | 54,271 | 54,271 | ||||
Distributions to non-controlling interests | (265,922) | (265,922) | |||||
Balance at Mar. 31, 2022 | $ 12,378 | 17,094,836 | 10,415,419 | (733,187) | 26,789,446 | 2,481,398 | 29,270,844 |
Balance, shares at Mar. 31, 2022 | 12,377,746 | ||||||
Balance at Dec. 31, 2021 | $ 12,355 | 16,983,648 | 8,882,360 | (775,730) | 25,102,633 | 2,602,843 | 27,705,476 |
Balance, shares at Dec. 31, 2021 | 12,355,246 | ||||||
Net income | 4,826,917 | ||||||
Balance at Sep. 30, 2022 | $ 12,385 | 17,222,297 | 13,186,005 | (805,261) | 29,615,426 | 2,626,326 | 32,241,752 |
Balance, shares at Sep. 30, 2022 | 12,384,746 | ||||||
Balance at Dec. 31, 2021 | $ 12,355 | 16,983,648 | 8,882,360 | (775,730) | 25,102,633 | 2,602,843 | 27,705,476 |
Balance, shares at Dec. 31, 2021 | 12,355,246 | ||||||
Balance at Dec. 31, 2022 | $ 12,426 | 17,523,345 | 15,903,964 | (805,799) | 32,633,936 | 2,605,034 | 35,238,970 |
Balance, shares at Dec. 31, 2022 | 12,426,260 | ||||||
Balance at Mar. 31, 2022 | $ 12,378 | 17,094,836 | 10,415,419 | (733,187) | 26,789,446 | 2,481,398 | 29,270,844 |
Balance, shares at Mar. 31, 2022 | 12,377,746 | ||||||
Translation adjustment | (1,907) | (1,907) | (1,907) | ||||
Net income | 1,662,455 | 1,662,455 | 166,115 | 1,828,570 | |||
Common stock issued | $ 7 | 17,073 | 17,080 | 17,080 | |||
Common stock issued, shares | 7,000 | ||||||
Stock-based compensation | 55,194 | 55,194 | 55,194 | ||||
Distributions to non-controlling interests | (116,934) | (116,934) | |||||
Balance at Jun. 30, 2022 | $ 12,385 | 17,167,103 | 12,077,874 | (735,094) | 28,522,268 | 2,530,579 | 31,052,847 |
Balance, shares at Jun. 30, 2022 | 12,384,746 | ||||||
Translation adjustment | (70,167) | (70,167) | (70,167) | ||||
Net income | 1,108,131 | 1,108,131 | 212,680 | 1,320,811 | |||
Stock-based compensation | 55,194 | 55,194 | 55,194 | ||||
Distributions to non-controlling interests | (116,933) | (116,933) | |||||
Balance at Sep. 30, 2022 | $ 12,385 | 17,222,297 | 13,186,005 | (805,261) | 29,615,426 | 2,626,326 | 32,241,752 |
Balance, shares at Sep. 30, 2022 | 12,384,746 | ||||||
Balance at Dec. 31, 2022 | $ 12,426 | 17,523,345 | 15,903,964 | (805,799) | 32,633,936 | 2,605,034 | 35,238,970 |
Balance, shares at Dec. 31, 2022 | 12,426,260 | ||||||
Translation adjustment | (167,239) | (167,239) | (167,239) | ||||
Net income | 884,369 | 884,369 | 80,125 | 964,494 | |||
Common stock issued | $ 10 | 13,590 | 13,600 | 13,600 | |||
Common stock issued, shares | 9,272 | ||||||
Stock-based compensation | 185,298 | 185,298 | 185,298 | ||||
Balance at Mar. 31, 2023 | $ 12,436 | 17,722,233 | 16,788,333 | (973,038) | 33,549,964 | 2,685,159 | 36,235,123 |
Balance, shares at Mar. 31, 2023 | 12,435,532 | ||||||
Balance at Dec. 31, 2022 | $ 12,426 | 17,523,345 | 15,903,964 | (805,799) | 32,633,936 | 2,605,034 | 35,238,970 |
Balance, shares at Dec. 31, 2022 | 12,426,260 | ||||||
Net income | 1,455,470 | ||||||
Balance at Sep. 30, 2023 | $ 12,436 | 18,079,409 | 16,253,260 | (605,465) | 33,739,640 | 2,747,117 | 36,486,757 |
Balance, shares at Sep. 30, 2023 | 12,435,532 | ||||||
Balance at Mar. 31, 2023 | $ 12,436 | 17,722,233 | 16,788,333 | (973,038) | 33,549,964 | 2,685,159 | 36,235,123 |
Balance, shares at Mar. 31, 2023 | 12,435,532 | ||||||
Translation adjustment | 226,645 | 226,645 | 226,645 | ||||
Net income | 809,865 | 809,865 | 184,862 | 994,727 | |||
Stock-based compensation | 181,228 | 181,228 | 181,228 | ||||
Dividends paid | (626,777) | (626,777) | (626,777) | ||||
Non-controlling interest of 317 Mendota LLC | 200,000 | 200,000 | |||||
Distributions to non-controlling interests | (387,696) | (387,696) | |||||
Balance at Jun. 30, 2023 | $ 12,436 | 17,903,461 | 16,971,421 | (746,393) | 34,140,925 | 2,682,325 | 36,823,250 |
Balance, shares at Jun. 30, 2023 | 12,435,532 | ||||||
Translation adjustment | 140,928 | 140,928 | 140,928 | ||||
Net income | (718,161) | (718,161) | 214,410 | (503,751) | |||
Stock-based compensation | 175,948 | 175,948 | 175,948 | ||||
Distributions to non-controlling interests | (149,618) | (149,618) | |||||
Balance at Sep. 30, 2023 | $ 12,436 | $ 18,079,409 | $ 16,253,260 | $ (605,465) | $ 33,739,640 | $ 2,747,117 | $ 36,486,757 |
Balance, shares at Sep. 30, 2023 | 12,435,532 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION These interim condensed consolidated financial statements (“consolidated financial statements”) include the accounts of Flexible Solutions International, Inc. (the “Company”), its wholly-owned subsidiaries Flexible Fermentation Ltd., NanoChem Solutions Inc. (“NanoChem”), Flexible Solutions Ltd., Flexible Biomass LP, FS Biomass Inc., NCS Deferred Corp., Natural Chem SEZC Ltd., InnFlex Holdings Inc., ENP Peru Investments LLC (“ENP Peru”), its 100 65 In 2022, NanoChem purchased an additional 50 91.67 8.33 65 8.33 In June 2023, the Company purchased an 80 20 The Company and its subsidiaries develop, manufacture and market specialty chemicals which slow the evaporation of water. One product, HEATSAVR®, is marketed for use in swimming pools and spas where its use, by slowing the evaporation of water, allows the water to retain a higher temperature for a longer period of time and thereby reduces the energy required to maintain the desired temperature of the water in the pool. Another product, WATERSAVR®, is marketed for water conservation in irrigation canals, aquaculture, and reservoirs where its use slows water loss due to evaporation. In addition to the water conservation products, the Company also manufactures and markets water-soluble chemicals utilizing thermal polyaspartate biopolymers (hereinafter referred to as “TPAs”), which are beta-proteins manufactured from the common biological amino acid, L-aspartic. TPAs can be formulated to prevent corrosion and scaling in water piping within the petroleum, chemical, utility and mining industries. TPAs are also used as proteins to enhance fertilizers in improving crop yields and can be used as additives for household laundry detergents, consumer care products and pesticides. The TPA division also manufactures two nitrogen conservation products for agriculture that slows nitrogen loss from fields. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | 2. SIGNIFICANT ACCOUNTING POLICIES The condensed interim consolidated financial statements of the Company have been prepared by management in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information, applied on a basis consistent for all periods. Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for a complete set of financial statements. These consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the Securities and Exchange Commission on March 31, 2023. In the opinion of management, all adjustments of a normal recurring nature considered necessary for a fair presentation have been included. The results of operations of any interim period are not necessarily indicative of the results of operations to be expected for the full fiscal year. (a) Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original or remaining maturity of less than three months at the date of purchase to be cash equivalents. Cash and cash equivalents are maintained with several financial institutions. (b) Term Deposits The deposits maintained by the Company with banks comprises term deposits. The Company has two term deposits, the first for $ 700,000 8.25 150 300,000 (c) Inventories and Cost of Sales The Company has three major classes of inventory: completed goods, work in progress and raw materials and supplies. In all classes inventories are stated at the lower of cost and net realizable value. Cost is determined on a first-in, first-out basis or weighted average cost formula to inventories in different subsidiaries. Cost of sales includes all expenditures incurred in bringing the goods to the point of sale. Inventory costs and costs of sales include direct costs of the raw material, inbound freight charges, warehousing costs, handling costs (receiving and purchasing) and utilities and overhead expenses related to the Company’s manufacturing and processing facilities. Shipping and handling charges billed to customers are included in revenue (2023 - $ 381,740 341,918 771,772 783,917 (d) Allowance for Doubtful Accounts The Company provides an allowance for doubtful accounts when management estimates collectability to be uncertain. Accounts receivable are continually reviewed to determine which, if any, accounts are doubtful of collection. In making the determination of the appropriate allowance amount, the Company considers current economic and industry conditions, relationships with each significant customer, overall customer credit-worthiness and historical experience. (e) Property, Equipment, Leaseholds and Intangible Assets The following assets are recorded at cost and depreciated using the methods and annual rates shown below: SCHEDULE OF METHOD OF DEPRECIATION Computer hardware 30% Declining balance Manufacturing equipment 20% Declining balance Office equipment 20% Declining balance Boat 20% Declining balance Building and improvements 10% Declining balance Trailer 30% Declining balance Automobiles Straight-line over 5 years Patents Straight-line over 17 years Technology Straight-line over 10 years Leasehold improvements Straight-line over lease term Customer relationships Straight-line over 15 years Software Straight-line over 3 years (f) Impairment of Long-Lived Assets In accordance with FASB Codification Topic 360, Property, Plant and Equipment (g) Foreign Currency The functional currency of the Company is the U.S. dollar. The functional currency of three of the Company’s subsidiaries is the Canadian dollar. The translation of the Canadian dollar to the reporting currency of the Company, the U.S. dollar, is performed for assets and liabilities using exchange rates in effect at the balance sheet date. Revenue and expense transactions are translated using average exchange rates prevailing during the year. Translation adjustments arising on conversion of the Company’s financial statements from the subsidiary’s functional currency, Canadian dollars, into the reporting currency, U.S. dollars, are excluded from the determination of income (loss) and are disclosed as other comprehensive income in the consolidated statements of income and comprehensive income. Foreign exchange gains and losses relating to transactions not denominated in the applicable local currency are included in operating income (loss) if realized during the year and in comprehensive income (loss) if they remain unrealized at the end of the year. (h) Revenue Recognition The Company generates revenue primarily from energy and water conservation products and biodegradable polymers, as further discussed in Note 16. The Company follows a five-step model for revenue recognition. The five steps are: (1) identification of the contract(s) with the customer, (2) identification of the performance obligation(s) in the contract(s), (3) determination of the transaction price, (4) allocation of the transaction price to the performance obligation, and (5) recognition of revenue when (or as) the performance obligation is satisfied. The Company has fulfilled its performance obligations when control transfers to the customer, which is generally at the time the product is shipped since risk of loss is transferred to the purchaser upon delivery to the carrier. For shipments which are free-on-board shipping point, the Company has elected to account for shipping and handling activities as a fulfillment cost rather than as an additional promised service and performance obligation. Since the Company’s inception, product returns have been insignificant; therefore, no provision has been established for estimated product returns. Deferred revenues consist of products sold to distributors with payment terms greater than the Company’s customary business terms due to lack of credit history or operating in a new market in which the Company has no prior experience. The Company defers the recognition of revenue until the criteria for revenue recognition has been met and payments become due or cash is received from these distributors. (i) Stock Issued in Exchange for Services The Company’s common stock issued in exchange for services is valued at estimated fair market value based upon trading prices of the Company’s common stock on the dates of the stock transactions. The corresponding expense of the services rendered is recognized over the period that the services are performed. (j) Stock-based Compensation The Company recognizes compensation expense for all share-based payments in accordance with FASB Codification Topic 718, Compensation — Stock Compensation The fair value at grant date of stock options is estimated using the Black-Scholes option-pricing model. Compensation expense is recognized on a straight-line basis over the stock option vesting period based on the estimated number of stock options that are expected to vest. Shares are issued from treasury upon exercise of stock options. (k) Other Comprehensive Income Other comprehensive income refers to revenues, expenses, gains and losses that under generally accepted accounting principles are included in comprehensive income, but are excluded from net income as these amounts are recorded directly as an adjustment to stockholders’ equity. The Company’s other comprehensive income is comprised only of unrealized foreign exchange gains and losses related to the translation of subsidiaries’ functional currency into the reporting currency. (l) Income Per Share Basic earnings per share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding in the period. Diluted earnings per share are calculated giving effect to the potential dilution of the exercise of options and warrants. Common equivalent shares, composed of incremental common shares issuable upon the exercise of stock options and warrants are included in diluted net income per share to the extent that these shares are dilutive. Common equivalent shares that have an anti-dilutive effect on net income (loss) per share have been excluded from the calculation of diluted weighted average shares outstanding for the three and nine months ended September 30, 2023 and 2022. (m) Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and would impact the results of operations and cash flows. Estimates and underlying assumptions are reviewed at each period end. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Significant areas requiring the use of management estimates include assumptions and estimates relating to the valuation of goodwill and intangible assets, valuation of assets acquired at fair value, asset impairment analysis, share-based payments, valuation allowances for deferred income tax assets, determination of useful lives of property, equipment and leaseholds and intangible assets, recoverability of accounts receivable, recoverability of investments, discount rates for right of use assets and the valuation of inventory. (n) Fair Value of Financial Instruments Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs described below, of which the first two are considered observable and the last unobservable, that may be used to measure fair value. ● Level 1 – Quoted prices in active markets for identical assets or liabilities. ● Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3 — Unobservable inputs that are supported by little or no market activity which is significant to the fair value of the assets or liabilities. The fair values of cash and cash equivalents, term deposits, accounts receivable, accounts payable, accrued liabilities and the short term line of credit for all periods presented approximate their respective carrying amounts due to the short term nature of these financial instruments. The fair value of the long term debt and lease liabilities for all periods presented approximate their respective carrying amounts due to these financial instruments being at market rates. (o) Contingencies Certain conditions may exist as of the date the consolidated financial statements are issued which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company’s management and its legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, the estimated liability would be accrued in the Company’s consolidated financial statements. If the assessment indicates that a potential material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Legal fees associated with loss contingencies are expensed as incurred. The Company is not aware of any contingencies at the date of these consolidated financial statements. (p) Income Taxes Income taxes are computed by multiplying the Company’s taxable net income by the Company’s effective tax rates. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss carry-forwards, if any. Deferred income 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. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided to reduce the carrying amount of deferred income tax assets if it is considered more likely than not that some portion, or all, of the deferred income tax assets will not be realized. In accordance with FASB Codification Topic 740, Income taxes (q) Risk Management The Company’s credit risk is primarily attributable to its accounts receivable. The amounts presented in the accompanying consolidated balance sheets are net of allowances for doubtful accounts, estimated by the Company’s management based on prior experience and the current economic environment. The Company is exposed to credit-related losses in the event of non-payment by customers. Credit exposure is minimized by dealing with only credit worthy counterparties. Revenue for the Company’s three primary customers totaled $14,020,837 49 19,050,848 57 5,811,847 67 7,452,860 64 4,688,642 68 6,124,424 65 The credit risk on cash is limited because the Company limits its exposure to credit loss by placing its cash with major financial institutions. The Company maintains cash balances at financial institutions which at times exceed federally insured amounts. The Company has not experienced any losses in such accounts. The Company is exposed to foreign exchange and interest rate risk to the extent that market value rate fluctuations materially differ from financial assets and liabilities, subject to fixed long-term rates. In order to manage its exposure to foreign exchange risks, the Company is closely monitoring the fluctuations in the foreign currency exchange rates and the impact on the value of cash, accounts receivable, and accounts payable and accrued liabilities. The Company has not hedged its exposure to currency fluctuations. The Company is exposed to interest rate risk to the extent that the fair value or future cash flows for financial liabilities will fluctuate as a result of changes in market interest rates. The Company is exposed to interest rate risk on its long-term debt. In order to manage its exposure to interest rate risk, the Company is closely monitoring fluctuations in market interest risks and will refinance its long-term debt where possible to obtain more favourable rates. (r) Equity Method Investment The Company accounts for investments using the equity method of accounting if the investment provides the Company the ability to exercise significant influence, but not control, over the investee. Significant influence is generally deemed to exist if the Company’s ownership interest in the voting stock of the investee ranges between 20% and 50%, although other factors, such as representation on the investee’s board of directors, are considered in determining whether the equity method of accounting is appropriate. (s) Goodwill and Intangible Assets Goodwill represents the excess of the purchase price of an acquired entity over the amounts assigned to the assets acquired and liabilities assumed. Goodwill is not amortized, but is reviewed for impairment annually or more frequently if certain impairment conditions arise. The Company performs an annual goodwill impairment review in the fourth quarter of each year at the reporting unit level. The evaluation begins with a qualitative assessment of the factors that could impact the significant inputs used to estimate fair value. If after performing the qualitative assessment, it is determined that it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, including goodwill, then no further analysis is necessary. However, if the results of the qualitative test are unclear, the Company performs a quantitative test, which involves comparing the fair value of a reporting unit with its carrying amount, including goodwill. The Company uses an income-based valuation method, determining the present value of future cash flows, to estimate the fair value of a reporting unit. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired, and no further analysis is necessary. If the fair value of the reporting unit is less than its carrying amount, goodwill impairment would be recognized equal to the amount of the carrying value in excess of the reporting unit’s fair value, limited to the total amount of goodwill allocated to the reporting unit. Intangible assets primarily include trademarks and trade secrets with indefinite lives and customer-relationships with finite lives. Intangible assets with indefinite lives are not amortized but are tested for impairment on an annual basis, or more frequently if indicators of impairment are present. Indefinite lived intangible assets are assessed using either a qualitative or a quantitative approach. The qualitative assessment evaluates factors including macro-economic conditions, industry and company-specific factors, legal and regulatory environments, and historical company performance in assessing fair value. If it is determined that it is more likely than not that the fair value of the intangible asset is less than its carrying value, a quantitative test is then performed. Otherwise, no further testing is required. When using a quantitative approach, the Company compares the fair value of the intangible asset to its carrying amount. If the estimated fair value of the intangible asset is less than the carrying amount of the intangible asset, impairment is indicated, requiring recognition of an impairment charge for the differential. In accordance with FASB Codification Topic 350, Intangibles – Goodwill and Other Finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives. The Company reviews for impairment indicators of finite-lived intangibles and other long-lived assets as described in the “Impairment of Long Lived Assets” significant accounting policy. (t) Recent Accounting Pronouncements The Company has implemented all applicable new accounting pronouncements that are in effect. Those pronouncements did not have any material impact on the consolidated financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2023 | |
Leases | |
LEASES | 3. LEASES Accounting and reporting guidance for leases requires that leases be evaluated and classified as either operating or finance leases by the lessee and as either operating, sales-type or direct financing leases by the lessor. For leases with terms greater than 12 months, the Company records the related right-of-use (“ROU”) asset and lease obligation at the present value of lease payments over the term. Leases may include fixed rental escalation clauses, renewal options and / or termination options that are factored into the determination of lease payments when appropriate. The Company’s operating leases are included in ROU assets, lease liabilities-current portion and lease liability-long term portion in the accompanying consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. The Company’s leases do not usually provide a readily determinable implicit rate; therefore, an estimate of the Company’s incremental borrowing rate is used to discount the lease payments based on information available at the lease commencement date. The discount rate used was 5.5 The table below summarizes the right-of-use asset and lease liability for the nine months ended September 30, 2023 and the year ended December 31, 2022: SUMMARY OF RIGHT-OF-USE ASSET AND LEASE LIABILITY September 30, 2023 December 31, 2022 Right of Use Assets Balance, January 1 $ 167,222 $ 217,267 Right of use assets, beginning balance $ 167,222 $ 217,267 Depreciation (38,738 ) (50,045 ) Balance, end of period $ 128,484 $ 167,222 Right of use assets, ending balance $ 128,484 $ 167,222 Lease Liability Balance, January 1 $ 167,222 $ 217,267 Lease liability, beginning balance $ 167,222 $ 217,267 Lease interest expense 4,812 8,566 Payments (43,550 ) (58,611 ) Balance, end of period $ 128,484 $ 167,222 Lease liability, ending balance $ 128,484 $ 167,222 Short-term portion $ 59,160 $ 58,080 Long-term portion 69,324 109,142 Total $ 128,484 $ 167,222 Undiscounted rent payments for the next four years are as follows: SCHEDULE OF UNDISCOUNTED RENT PAYMENTS 2023 $ 14,520 2024 59,520 2025 61,020 Total $ 135,060 Impact of discounting (6,576 ) Lease liability, September 30, 2023 $ 128,484 |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | 4. ACCOUNTS RECEIVABLE SCHEDULE OF ACCOUNTS RECEIVABLE September 30, 2023 December 31, 2022 Accounts receivable $ 7,203,680 $ 9,739,150 Allowances for doubtful accounts (289,359 ) (289,293 ) Total accounts receivable $ 6,914,321 $ 9,449,857 |
INVENTORIES
INVENTORIES | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 5. INVENTO RIES SCHEDULE OF INVENTORY September 30, 2023 December 31, 2022 Completed goods $ 2,539,460 $ 3,806,646 Raw materials and supplies 6,900,692 10,612,784 Total inventory $ 9,440,152 $ 14,419,430 |
PROPERTY, EQUIPMENT & LEASEHOLD
PROPERTY, EQUIPMENT & LEASEHOLDS | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, EQUIPMENT & LEASEHOLDS | 6. PROPERTY, EQUIPMENT & LEASEHOLDS SCHEDULE OF PROPERTY, EQUIPMENT AND LEASEHOLDS September 30, Accumulated September 30, 2023 Cost Depreciation 2023 Net Buildings and improvements $ 12,180,004 $ 3,729,894 $ 8,450,110 Automobiles 196,255 132,847 63,408 Computer hardware 43,436 42,840 596 Manufacturing equipment 9,498,662 5,533,484 3,965,178 Boat 34,400 29,331 5,069 Office equipment 134,119 119,730 14,389 Trailer 8,873 7,890 983 Leasehold Improvements 88,872 88,872 — Land 440,592 — 440,592 Technology 101,038 101,038 — $ 22,726,251 $ 9,785,926 $ 12,940,325 December 31, Accumulated December 31, 2022 Cost Depreciation 2022 Net Buildings and improvements $ 8,775,629 $ 3,310,920 $ 5,464,709 Automobiles 196,255 107,055 89,200 Computer hardware 43,432 42,663 769 Office equipment 133,280 112,782 20,498 Manufacturing equipment 8,634,063 4,891,736 3,742,327 Trailers 8,857 7,592 1,265 Boat 34,400 27,907 6,493 Leasehold improvements 88,872 88,872 — Technology 100,860 100,860 — Land 384,027 — 384,027 $ 18,399,675 $ 8,690,387 $ 9,709,288 The amount of depreciation expense for nine months ended September 30, 2023 was $ 1,095,171 679,548 |
PATENTS
PATENTS | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
PATENTS | 7. PATENTS SCHEDULE OF PATENTS September 30, 2023 Cost Accumulated September 30, 2023 Net Patents $ 196,069 $ 196,069 $ - December 31, 2022 Cost Accumulated December 31, 2022 Net Patents $ 195,725 $ 195,725 $ - The amount of amortization for the nine months ended September 30, 2023 was $ nil (2022 - $ 12,329 ) and is included in cost of sales in the unaudited condensed interim consolidated statements of operations and comprehensive income. The movement in cost relates solely to foreign exchange differences. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | 8. GOODWILL AND INTANGIBLE ASSETS SCHEDULE OF GOODWILL AND INDEFINITE LIVED INTANGIBLE ASSETS Goodwill Balance as of December 31, 2021 $ 2,534,275 Additions - Impairment - Balance as of December 31, 2022 and September 30, 2023 $ 2,534,275 Indefinite Lived Intangible Assets Balance as of December 31, 2021 $ 770,000 Additions - Impairment - Balance as of December 31, 2022 and September 30, 2023 $ 770,000 Goodwill relates to the acquisition of ENP Investments. Indefinite lived intangible assets consist of trade secrets and trademarks related to the acquisition of ENP Investments. Definite Life Intangible Assets Balance as of December 31, 2021 $ 1,830,000 Amortization (160,000 ) Balance as of December 31, 2022 1,670,000 Amortization (120,000 ) Balance as of September 30, 2023 $ 1,550,000 Definite life intangible assets consist of customer relationships and software related to the acquisition of ENP Investments. Customer relationships and software are amortized over their estimated useful life of 15 3 Estimated amortization expense over the next five years is as follows: SCHEDULE OF ESTIMATED FUTURE AMORTIZATION EXPENSE 2023 $ 160,000 2024 160,000 2025 160,000 2026 160,000 2027 160,000 |
LONG TERM DEPOSITS
LONG TERM DEPOSITS | 9 Months Ended |
Sep. 30, 2023 | |
Long Term Deposits | |
LONG TERM DEPOSITS | 9. LONG TERM DEPOSITS Long term deposits consist of damage deposits held by landlords and security deposits held by various vendors. SCHEDULE OF LONG TERM DEPOSITS September 30, 2023 December 31, 2022 Long term deposits $ 396,154 $ 8,540 |
INVESTMENTS
INVESTMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS | 10. INVESTMENTS ( a ) T 50 % ownership interest in ENP Peru, split between NanoChem ( 41.67 %) and ENP Investments ( 8.33 %), which was acquired in fiscal 2016. ENP Peru is located in Illinois and leases warehouse space. In June 2022, NanoChem acquired an additional 50 % ownership interest at a cost of $ 506,659 paid through a new $ 259,000 mortgage and cash on hand. The 35 % non-controlling interest of the 8.33 % owned by ENP Investments is included in non-controlling interest in these unaudited condensed interim consolidated financial statements. The Company’s investment in ENP Peru was previously accounted for using the equity method, however, it is now consolidated into the unaudited condensed interim consolidated financial statements from the date control was obtained. In June 2023, NanoChem purchased the remaining 8.33 % of ENP Peru from ENP Investments to become full owner. It was determined that ENP Peru did not meet the definition of a business in accordance with FASB Codification Topic 805, Business Combinations , SCHEDULE OF FAIR VALUES OF THE ASSETS ACQUIRED AND LIABILITIES ASSUMED Purchase consideration $ 506,659 Assets acquired: Cash 7,330 Building 3,750,000 Land 150,000 Liabilities assumed: Deferred tax liability (174,582 ) Long term debt (2,849,500 ) Total identifiable net assets: 883,248 Excess of assets acquired over consideration 376,589 Less investment eliminated upon consolidation (41,538 ) Gain on acquisition of ENP Peru $ 335,051 A summary of the Company’s investment follows: SCHEDULE OF EQUITY METHOD INVESTMENT Balance, December 31, 2021 $ 22,642 Return of equity (8,750 ) Gain in equity method investment 27,646 Investment eliminated upon consolidation (41,538 ) Balance, December 31, 2022 and September 30, 2023 $ - ( b ) In December 2018 the Company invested $ 200,000 December 6, 2023 Investments – Equity Method and Joint Ventures ( c ) 500,000 470,000 97,000 10.00 Investments – Equity Securities ( ( d) In January 2019, the Company invested in a Florida based LLC that is engaged in international sales of fertilizer additives. The Company accounts for this investment using the equity method of accounting. According to the operating agreement, the Company has a 50 SCHEDULE OF EQUITY METHOD INVESTMENT Balance, December 31, 2021 $ 3,701,368 Gain in equity method investment 307,527 Return of equity (250,000 ) Balance, December 31, 2022 $ 3,758,895 Gain in equity method investment 422,923 Return of equity (100,000 ) Balance, September 30, 2023 $ 4,081,818 Summarized profit and loss information related to the equity accounted investment is as follows: SUMMARY OF PROFIT AND LOSS INFORMATION RELATED TO EQUITY ACCOUNTED INVESTMENT Nine months Nine months Net sales $ 11,915,398 $ 11,101,350 Gross profit 3,514,142 2,519,331 Net income 845,846 $ 359,938 During the nine months ended September 30, 2023, the Company had sales of $ 7,116,232 7,931,549 2,274,958 2,423,285 e) 500,000 500,000 1,000,000 |
SHORT-TERM LINE OF CREDIT
SHORT-TERM LINE OF CREDIT | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
SHORT-TERM LINE OF CREDIT | 11. SHORT-TERM LINE OF CREDIT (a) 500,000 4,500,000 50 2,000,000 8.5 7.5 The revolving line of credit contains customary affirmative and negative covenants, including the following: compliance with laws, provisions of financial statements and periodic reports, payment of taxes, maintenance of inventory and insurance, maintenance of operating accounts at Stock Yards, Stock Yard’s access to collateral, formation or acquisition of subsidiaries, incurrence of indebtedness, dispositions of assets, granting liens, changes in business, ownership or business locations, engaging in mergers and acquisitions, making investments or distributions and affiliate transactions. NanoChem is a guarantor of 65 2,925,000 35 1,575,000 To secure the repayment of any amounts borrowed under the revolving line of credit, the Company granted Stock Yards a security interest in substantially all of the assets of ENP Investments, exclusive of intellectual property assets. Short-term borrowings outstanding under the revolving line as of September 30, 2023 were $ nil 2,477,794 (b) 4,000,000 80 50 2,000,000 8.5 7.5 The revolving line of credit contains customary affirmative and negative covenants, including the following: compliance with laws, provision of financial statements and periodic reports, payment of taxes, maintenance of inventory and insurance, maintenance of operating accounts at Stock Yards, Stock Yards access to collateral, formation or acquisition of subsidiaries, incurrence of indebtedness, dispositions of assets, granting liens, changes in business, ownership or business locations, engaging in mergers and acquisitions, making investments or distributions and affiliate transactions. The covenants also require that the Company maintain a minimum ratio of qualifying financial assets to the sum of qualifying financial obligations. As of September 30, 2023, the Company was in compliance with all loan covenants. To secure the repayment of any amounts borrowed under the revolving line of credit, the Company granted Stock Yards a security interest in substantially all of the assets of NanoChem, exclusive of intellectual property assets. Short-term borrowings outstanding under the revolving line as of September 30, 2023 were $ nil 340,797 |
LONG TERM DEBT
LONG TERM DEBT | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
LONG TERM DEBT | 12. LONG TERM DEBT ( a ) In October 2020, NanoChem signed a loan for $ 1,980,947 3.85 5 65 nil 30,334 nil nil ( b ) In October 2020, NanoChem signed a loan for $ 894,253 3.85 two years nil 5,816 nil nil (c) 450,000 10 4.35 5 2.5 13,459 13,959 402,137 415,430 ( d ) In June 2022, NanoChem signed a loan for $ 1,935,000 53,176 23,632 1,164,686 1,632,672 ( e) In January 2020 ENP Peru signed a $ 3,000,000 4.35 ten years 2,849,500 92,304 23,632 2,756,573 2,813,015 (f) 259,000 10 years 5.4 10,447 3,568 251,735 256,162 (g) 2,000,000 6.5 50,361 nil 1,036,798 1,036,798 (h) 3,240,000 47,450 nil 2,248,292 nil As of September 30, 2023, Company was in compliance with all loan covenants. SCHEDULE OF LOAN COVENANTS Continuity September 30, 2023 December 31, 2022 Balance, January 1 $ 6,154,077 $ 2,366,598 Balance, beginning of period $ 6,154,077 $ 2,366,598 Plus: Proceeds from loans 2,248,292 3,230,798 Plus: Loan acquired with acquisition of ENP Peru - 2,849,500 Less: Payments on loan (542,148 ) (2,292,819 ) Balance, end of period $ 7,860,221 $ 6,154,077 SCHEDULE OF OUTSTANDING BALANCE LOAN Outstanding balance at December 31, September 30, 2023 December 31, 2022 a) Long term debt – Midland States Bank $ - $ - b) Long term debt – Midland States Bank - - c) Long term debt – Stock Yards Bank & Trust 402,137 415,430 d) Long term debt – Stock Yards Bank & Trust 1,164,686 1,632,672 e) Long term debt – Stock Yards Bank & Trust 2,756,573 2,813,015 f) Long term debt – Stock Yards Bank & Trust 251,735 256,162 g) Long term debt – Stock Yards Bank & Trust 1,036,798 1,036,798 h) Long term debt – Stock Yards Bank & Trust 2,248,292 — Long-term Debt 7,860,221 6,154,077 Less: current portion (830,760 ) (717,612 ) Long-term debt non current $ 7,029,461 $ 5,436,465 |
STOCK OPTIONS
STOCK OPTIONS | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK OPTIONS | 13. STOCK OPTIONS The Company has a stock option plan (“Plan”). The purpose of this Plan is to provide additional incentives to key employees, officers, directors and consultants of the Company and its subsidiaries in order to help attract and retain the best available personnel for positions of responsibility and otherwise promote the success of the Company’s business. It is intended that options issued under this Plan constitute non-qualified stock options. The general terms of awards under the option plan are that 100 5 The following table summarizes the Company’s stock option activities for the year ended December 31, 2022 and the nine month period ended September 30, 2023: SCHEDULE OF STOCK OPTION ACTIVITIES Number of shares Exercise price Weighted average Balance, December 31, 2021 789,500 $ 1.42 4.13 $ 2.78 Granted 981,000 $ 3.55 3.61 $ 3.55 Cancelled or expired (13,486 ) $ 1.70 3.61 $ 2.32 Exercised (71,014 ) $ 1.42 2.44 $ 1.98 Balance, December 31, 2022 1,686,000 $ 1.70 4.13 $ 3.27 Cancelled or expired (12,000 ) $ 3.46 4.13 $ 3.60 Exercised (8,000 ) $ 1.70 $ 1.70 Balance, September 30, 2023 1,666,000 $ 1.75 4.13 $ 3.27 Exercisable, September 30, 2023 664,000 $ 1.75 4.13 $ 2.93 The weighted average remaining contractual life of options outstanding is 3.4 The fair value of each option grant is calculated using the following weighted average assumptions: SCHEDULE OF STOCK OPTION FAIR VALUE ASSUMPTIONS 2022 Expected life – years 3.0 Interest rate 1.76 3.64 Volatility 66.01 69.66 Weighted average fair value of options granted $ 1.46 1.65 During the nine months ended September 30, 2023 and 2022, the Company did not grant any new options to consultants. Options granted in previous quarters resulted in expenses in the amount of $ 47,391 47,380 5,000 5,475 491,013 111,804 There were 8,000 nil 29,500 nil As of September 30, 2023, there was approximately $ 887,957 1.9 The aggregate intrinsic value of vested options outstanding at September 30, 2023 is $ nil nil |
CAPITAL STOCK
CAPITAL STOCK | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
CAPITAL STOCK | 14. CAPITAL STOCK . During the nine months ended September 30, 2023, 8,000 29,500 During the nine months ended September 30 2023, the Company issued 1,272 4,070 In nine months ended September 30, 2023, the Company announced a special dividend of $ 0.05 |
NON-CONTROLLING INTERESTS
NON-CONTROLLING INTERESTS | 9 Months Ended |
Sep. 30, 2023 | |
Noncontrolling Interest [Abstract] | |
NON-CONTROLLING INTERESTS | 15. NON-CONTROLLING INTERESTS ( a ) ENP Investments is a limited liability corporation (“LLC”) that manufactures and distributes golf, turf and ornamental agriculture products in Mendota, Illinois. The Company owns a 65 35 ENP Investments makes cash distributions to its equity owners based on formulas defined within its Ownership Interest Purchase Agreement dated October 1, 2018. Distributions are defined in the Ownership Interest Purchase Agreement as cash on hand to the extent it exceeds current and anticipated long-term and short-term needs, including, without limitation, needs for operating expenses, debt service, acquisitions, reserves, and mandatory distributions, if any. From the effective date of acquisition onward, the minimum distributions requirements under the Ownership Interest Purchase Agreement were satisfied. The total distribution from the effective date of acquisition onward was $ 3,043,833 SCHEDULE OF DISTRIBUTIONS Balance, December 31, 2021 $ 2,602,843 Distribution (689,434 ) Non-controlling interest share of income 691,625 Balance, December 31, 2022 2,605,034 Distribution (537,314 ) Non-controlling interest share of income 490,012 Balance, September 30, 2023 $ 2,557,732 During the nine months ended September 30, 2023, the Company had sales of $ 4,728,562 4,913,342 35 2,154,033 3,634,083 b ) 80 20 SCHEDULE OF NON CONTROLLING INTEREST RELATED TO ACQUISITION Balance, December 31, 2022 $ - Acquisition 200,000 Non-controlling interest share of loss (10,615 ) Balance, September 30, 2023 $ 189,385 |
SEGMENTED, SIGNIFICANT CUSTOMER
SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY | 16. SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY . The Company operates in two (a) (b) The third product line is nitrogen conservation products used for the agriculture industry. These products decrease the loss of nitrogen fertilizer after initial application and allows less fertilizer to be used. These products are made and sold by the Company’s TPA division. The accounting policies of the segments are the same as those described in Note 2, Significant Accounting Policies The Company’s reportable segments are strategic business units that offer different, but synergistic products and services. They are managed separately because each business requires different technology and marketing strategies. Three months ended September 30, 2023: SCHEDULE OF REPORTABLE SEGMENTS EWCP BCPA Total Revenue $ 144,794 $ 8,575,827 $ 8,720,621 Interest expense - 119,599 119,599 Depreciation and amortization 4,380 459,217 463,597 Income tax expense 12,770 206,942 219,712 Segment profit (loss) (22,105 ) (696,056 ) (718,161 ) Segment assets 3,697,284 49,397,348 53,094,632 Expenditures for segment assets - (542,014 ) (542,014 ) Three months ended September 30, 2022: EWCP BCPA Total Revenue $ 179,007 $ 11,506,100 $ 11,685,107 Interest expense - 80,609 80,609 Depreciation and amortization 9,091 330,508 339,599 Income tax expense 24,035 325,146 349,181 Segment profit (loss) 69,376 1,038,755 1,108,131 Segment assets 2,345,580 46,462,283 48,807,863 Expenditures for segment assets - (233,862 ) (233,862 ) Nine months ended September 30, 2023: EWCP BCPA Total Revenue $ 446,056 $ 28,453,373 $ 28,899,429 Interest expense - 369,967 369,967 Depreciation and amortization 13,099 1,202,072 1,215,171 Income tax expense 25,341 848,520 873,861 Segment profit (loss) (215,095 ) 1,191,168 976,073 Segment assets 3,697,284 49,397,348 53,094,632 Expenditures for segment assets - (4,326,208 ) (4,326,208 ) Nine months ended September 30, 2022: EWCP BCPA Total Revenue $ 415,830 $ 33,217,700 $ 33,633,530 Interest expense - 190,366 190,366 Depreciation and amortization 27,537 784,340 811,877 Income tax expense 35,341 1,569,088 1,604,429 Segment profit (loss) (139,362 ) 4,443,007 4,303,645 Segment assets 2,345,580 46,462,283 48,807,863 Expenditures for segment assets - (647,232 ) (647,232 ) The sales generated in the United States and Canada are as follows: SCHEDULE OF REVENUE GENERATED IN UNITED STATES AND CANADA Nine months ended Nine months ended Canada $ 413,265 $ 449,106 United States and abroad 28,486,164 33,184,424 Total $ 28,899,429 $ 33,633,530 The Company’s long-lived assets (property, equipment, leaseholds intangibles, goodwill, and right of use assets) are located in Canada and the United States as follows: SCHEDULE OF LONG-LIVED ASSETS ARE LOCATED IN CANADA AND UNITED STATES September 30, 2023 December 31, 2022 Canada $ 143,811 $ 150,890 United States 17,779,273 14,699,896 Total $ 17,923,084 $ 14,850,786 Three primary customers accounted for $ 14,020,837 49 19,050,848 57 |
COMPARATIVE FIGURES
COMPARATIVE FIGURES | 9 Months Ended |
Sep. 30, 2023 | |
Comparative Figures | |
COMPARATIVE FIGURES | 17. COMPARATIVE FIGURES . Certain of the comparative figures have been reclassified to conform with the current period’s presentation. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 18. SUBSEQUENT EVENTS In October 2023, the Company received the payment of $ 200,000 On November 2, 2023 the Board of Directors voted to cancel all stock options granted to Dan O’Brien on December 14, 2022. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents | (a) Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original or remaining maturity of less than three months at the date of purchase to be cash equivalents. Cash and cash equivalents are maintained with several financial institutions. |
Term Deposits | (b) Term Deposits The deposits maintained by the Company with banks comprises term deposits. The Company has two term deposits, the first for $ 700,000 8.25 150 300,000 |
Inventories and Cost of Sales | (c) Inventories and Cost of Sales The Company has three major classes of inventory: completed goods, work in progress and raw materials and supplies. In all classes inventories are stated at the lower of cost and net realizable value. Cost is determined on a first-in, first-out basis or weighted average cost formula to inventories in different subsidiaries. Cost of sales includes all expenditures incurred in bringing the goods to the point of sale. Inventory costs and costs of sales include direct costs of the raw material, inbound freight charges, warehousing costs, handling costs (receiving and purchasing) and utilities and overhead expenses related to the Company’s manufacturing and processing facilities. Shipping and handling charges billed to customers are included in revenue (2023 - $ 381,740 341,918 771,772 783,917 |
Allowance for Doubtful Accounts | (d) Allowance for Doubtful Accounts The Company provides an allowance for doubtful accounts when management estimates collectability to be uncertain. Accounts receivable are continually reviewed to determine which, if any, accounts are doubtful of collection. In making the determination of the appropriate allowance amount, the Company considers current economic and industry conditions, relationships with each significant customer, overall customer credit-worthiness and historical experience. |
Property, Equipment, Leaseholds and Intangible Assets | (e) Property, Equipment, Leaseholds and Intangible Assets The following assets are recorded at cost and depreciated using the methods and annual rates shown below: SCHEDULE OF METHOD OF DEPRECIATION Computer hardware 30% Declining balance Manufacturing equipment 20% Declining balance Office equipment 20% Declining balance Boat 20% Declining balance Building and improvements 10% Declining balance Trailer 30% Declining balance Automobiles Straight-line over 5 years Patents Straight-line over 17 years Technology Straight-line over 10 years Leasehold improvements Straight-line over lease term Customer relationships Straight-line over 15 years Software Straight-line over 3 years |
Impairment of Long-Lived Assets | (f) Impairment of Long-Lived Assets In accordance with FASB Codification Topic 360, Property, Plant and Equipment |
Foreign Currency | (g) Foreign Currency The functional currency of the Company is the U.S. dollar. The functional currency of three of the Company’s subsidiaries is the Canadian dollar. The translation of the Canadian dollar to the reporting currency of the Company, the U.S. dollar, is performed for assets and liabilities using exchange rates in effect at the balance sheet date. Revenue and expense transactions are translated using average exchange rates prevailing during the year. Translation adjustments arising on conversion of the Company’s financial statements from the subsidiary’s functional currency, Canadian dollars, into the reporting currency, U.S. dollars, are excluded from the determination of income (loss) and are disclosed as other comprehensive income in the consolidated statements of income and comprehensive income. Foreign exchange gains and losses relating to transactions not denominated in the applicable local currency are included in operating income (loss) if realized during the year and in comprehensive income (loss) if they remain unrealized at the end of the year. |
Revenue Recognition | (h) Revenue Recognition The Company generates revenue primarily from energy and water conservation products and biodegradable polymers, as further discussed in Note 16. The Company follows a five-step model for revenue recognition. The five steps are: (1) identification of the contract(s) with the customer, (2) identification of the performance obligation(s) in the contract(s), (3) determination of the transaction price, (4) allocation of the transaction price to the performance obligation, and (5) recognition of revenue when (or as) the performance obligation is satisfied. The Company has fulfilled its performance obligations when control transfers to the customer, which is generally at the time the product is shipped since risk of loss is transferred to the purchaser upon delivery to the carrier. For shipments which are free-on-board shipping point, the Company has elected to account for shipping and handling activities as a fulfillment cost rather than as an additional promised service and performance obligation. Since the Company’s inception, product returns have been insignificant; therefore, no provision has been established for estimated product returns. Deferred revenues consist of products sold to distributors with payment terms greater than the Company’s customary business terms due to lack of credit history or operating in a new market in which the Company has no prior experience. The Company defers the recognition of revenue until the criteria for revenue recognition has been met and payments become due or cash is received from these distributors. |
Stock Issued in Exchange for Services | (i) Stock Issued in Exchange for Services The Company’s common stock issued in exchange for services is valued at estimated fair market value based upon trading prices of the Company’s common stock on the dates of the stock transactions. The corresponding expense of the services rendered is recognized over the period that the services are performed. |
Stock-based Compensation | (j) Stock-based Compensation The Company recognizes compensation expense for all share-based payments in accordance with FASB Codification Topic 718, Compensation — Stock Compensation The fair value at grant date of stock options is estimated using the Black-Scholes option-pricing model. Compensation expense is recognized on a straight-line basis over the stock option vesting period based on the estimated number of stock options that are expected to vest. Shares are issued from treasury upon exercise of stock options. |
Other Comprehensive Income | (k) Other Comprehensive Income Other comprehensive income refers to revenues, expenses, gains and losses that under generally accepted accounting principles are included in comprehensive income, but are excluded from net income as these amounts are recorded directly as an adjustment to stockholders’ equity. The Company’s other comprehensive income is comprised only of unrealized foreign exchange gains and losses related to the translation of subsidiaries’ functional currency into the reporting currency. |
Income Per Share | (l) Income Per Share Basic earnings per share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding in the period. Diluted earnings per share are calculated giving effect to the potential dilution of the exercise of options and warrants. Common equivalent shares, composed of incremental common shares issuable upon the exercise of stock options and warrants are included in diluted net income per share to the extent that these shares are dilutive. Common equivalent shares that have an anti-dilutive effect on net income (loss) per share have been excluded from the calculation of diluted weighted average shares outstanding for the three and nine months ended September 30, 2023 and 2022. |
Use of Estimates | (m) Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and would impact the results of operations and cash flows. Estimates and underlying assumptions are reviewed at each period end. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Significant areas requiring the use of management estimates include assumptions and estimates relating to the valuation of goodwill and intangible assets, valuation of assets acquired at fair value, asset impairment analysis, share-based payments, valuation allowances for deferred income tax assets, determination of useful lives of property, equipment and leaseholds and intangible assets, recoverability of accounts receivable, recoverability of investments, discount rates for right of use assets and the valuation of inventory. |
Fair Value of Financial Instruments | (n) Fair Value of Financial Instruments Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs described below, of which the first two are considered observable and the last unobservable, that may be used to measure fair value. ● Level 1 – Quoted prices in active markets for identical assets or liabilities. ● Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3 — Unobservable inputs that are supported by little or no market activity which is significant to the fair value of the assets or liabilities. The fair values of cash and cash equivalents, term deposits, accounts receivable, accounts payable, accrued liabilities and the short term line of credit for all periods presented approximate their respective carrying amounts due to the short term nature of these financial instruments. The fair value of the long term debt and lease liabilities for all periods presented approximate their respective carrying amounts due to these financial instruments being at market rates. |
Contingencies | (o) Contingencies Certain conditions may exist as of the date the consolidated financial statements are issued which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company’s management and its legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, the estimated liability would be accrued in the Company’s consolidated financial statements. If the assessment indicates that a potential material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Legal fees associated with loss contingencies are expensed as incurred. The Company is not aware of any contingencies at the date of these consolidated financial statements. |
Income Taxes | (p) Income Taxes Income taxes are computed by multiplying the Company’s taxable net income by the Company’s effective tax rates. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss carry-forwards, if any. Deferred income 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. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided to reduce the carrying amount of deferred income tax assets if it is considered more likely than not that some portion, or all, of the deferred income tax assets will not be realized. In accordance with FASB Codification Topic 740, Income taxes |
Risk Management | (q) Risk Management The Company’s credit risk is primarily attributable to its accounts receivable. The amounts presented in the accompanying consolidated balance sheets are net of allowances for doubtful accounts, estimated by the Company’s management based on prior experience and the current economic environment. The Company is exposed to credit-related losses in the event of non-payment by customers. Credit exposure is minimized by dealing with only credit worthy counterparties. Revenue for the Company’s three primary customers totaled $14,020,837 49 19,050,848 57 5,811,847 67 7,452,860 64 4,688,642 68 6,124,424 65 The credit risk on cash is limited because the Company limits its exposure to credit loss by placing its cash with major financial institutions. The Company maintains cash balances at financial institutions which at times exceed federally insured amounts. The Company has not experienced any losses in such accounts. The Company is exposed to foreign exchange and interest rate risk to the extent that market value rate fluctuations materially differ from financial assets and liabilities, subject to fixed long-term rates. In order to manage its exposure to foreign exchange risks, the Company is closely monitoring the fluctuations in the foreign currency exchange rates and the impact on the value of cash, accounts receivable, and accounts payable and accrued liabilities. The Company has not hedged its exposure to currency fluctuations. The Company is exposed to interest rate risk to the extent that the fair value or future cash flows for financial liabilities will fluctuate as a result of changes in market interest rates. The Company is exposed to interest rate risk on its long-term debt. In order to manage its exposure to interest rate risk, the Company is closely monitoring fluctuations in market interest risks and will refinance its long-term debt where possible to obtain more favourable rates. |
Equity Method Investment | (r) Equity Method Investment The Company accounts for investments using the equity method of accounting if the investment provides the Company the ability to exercise significant influence, but not control, over the investee. Significant influence is generally deemed to exist if the Company’s ownership interest in the voting stock of the investee ranges between 20% and 50%, although other factors, such as representation on the investee’s board of directors, are considered in determining whether the equity method of accounting is appropriate. |
Goodwill and Intangible Assets | (s) Goodwill and Intangible Assets Goodwill represents the excess of the purchase price of an acquired entity over the amounts assigned to the assets acquired and liabilities assumed. Goodwill is not amortized, but is reviewed for impairment annually or more frequently if certain impairment conditions arise. The Company performs an annual goodwill impairment review in the fourth quarter of each year at the reporting unit level. The evaluation begins with a qualitative assessment of the factors that could impact the significant inputs used to estimate fair value. If after performing the qualitative assessment, it is determined that it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, including goodwill, then no further analysis is necessary. However, if the results of the qualitative test are unclear, the Company performs a quantitative test, which involves comparing the fair value of a reporting unit with its carrying amount, including goodwill. The Company uses an income-based valuation method, determining the present value of future cash flows, to estimate the fair value of a reporting unit. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired, and no further analysis is necessary. If the fair value of the reporting unit is less than its carrying amount, goodwill impairment would be recognized equal to the amount of the carrying value in excess of the reporting unit’s fair value, limited to the total amount of goodwill allocated to the reporting unit. Intangible assets primarily include trademarks and trade secrets with indefinite lives and customer-relationships with finite lives. Intangible assets with indefinite lives are not amortized but are tested for impairment on an annual basis, or more frequently if indicators of impairment are present. Indefinite lived intangible assets are assessed using either a qualitative or a quantitative approach. The qualitative assessment evaluates factors including macro-economic conditions, industry and company-specific factors, legal and regulatory environments, and historical company performance in assessing fair value. If it is determined that it is more likely than not that the fair value of the intangible asset is less than its carrying value, a quantitative test is then performed. Otherwise, no further testing is required. When using a quantitative approach, the Company compares the fair value of the intangible asset to its carrying amount. If the estimated fair value of the intangible asset is less than the carrying amount of the intangible asset, impairment is indicated, requiring recognition of an impairment charge for the differential. In accordance with FASB Codification Topic 350, Intangibles – Goodwill and Other Finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives. The Company reviews for impairment indicators of finite-lived intangibles and other long-lived assets as described in the “Impairment of Long Lived Assets” significant accounting policy. |
Recent Accounting Pronouncements | (t) Recent Accounting Pronouncements The Company has implemented all applicable new accounting pronouncements that are in effect. Those pronouncements did not have any material impact on the consolidated financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
SCHEDULE OF METHOD OF DEPRECIATION | The following assets are recorded at cost and depreciated using the methods and annual rates shown below: SCHEDULE OF METHOD OF DEPRECIATION Computer hardware 30% Declining balance Manufacturing equipment 20% Declining balance Office equipment 20% Declining balance Boat 20% Declining balance Building and improvements 10% Declining balance Trailer 30% Declining balance Automobiles Straight-line over 5 years Patents Straight-line over 17 years Technology Straight-line over 10 years Leasehold improvements Straight-line over lease term Customer relationships Straight-line over 15 years Software Straight-line over 3 years |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases | |
SUMMARY OF RIGHT-OF-USE ASSET AND LEASE LIABILITY | The table below summarizes the right-of-use asset and lease liability for the nine months ended September 30, 2023 and the year ended December 31, 2022: SUMMARY OF RIGHT-OF-USE ASSET AND LEASE LIABILITY September 30, 2023 December 31, 2022 Right of Use Assets Balance, January 1 $ 167,222 $ 217,267 Right of use assets, beginning balance $ 167,222 $ 217,267 Depreciation (38,738 ) (50,045 ) Balance, end of period $ 128,484 $ 167,222 Right of use assets, ending balance $ 128,484 $ 167,222 Lease Liability Balance, January 1 $ 167,222 $ 217,267 Lease liability, beginning balance $ 167,222 $ 217,267 Lease interest expense 4,812 8,566 Payments (43,550 ) (58,611 ) Balance, end of period $ 128,484 $ 167,222 Lease liability, ending balance $ 128,484 $ 167,222 Short-term portion $ 59,160 $ 58,080 Long-term portion 69,324 109,142 Total $ 128,484 $ 167,222 |
SCHEDULE OF UNDISCOUNTED RENT PAYMENTS | Undiscounted rent payments for the next four years are as follows: SCHEDULE OF UNDISCOUNTED RENT PAYMENTS 2023 $ 14,520 2024 59,520 2025 61,020 Total $ 135,060 Impact of discounting (6,576 ) Lease liability, September 30, 2023 $ 128,484 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
SCHEDULE OF ACCOUNTS RECEIVABLE | SCHEDULE OF ACCOUNTS RECEIVABLE September 30, 2023 December 31, 2022 Accounts receivable $ 7,203,680 $ 9,739,150 Allowances for doubtful accounts (289,359 ) (289,293 ) Total accounts receivable $ 6,914,321 $ 9,449,857 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORY | SCHEDULE OF INVENTORY September 30, 2023 December 31, 2022 Completed goods $ 2,539,460 $ 3,806,646 Raw materials and supplies 6,900,692 10,612,784 Total inventory $ 9,440,152 $ 14,419,430 |
PROPERTY, EQUIPMENT & LEASEHO_2
PROPERTY, EQUIPMENT & LEASEHOLDS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY, EQUIPMENT AND LEASEHOLDS | SCHEDULE OF PROPERTY, EQUIPMENT AND LEASEHOLDS September 30, Accumulated September 30, 2023 Cost Depreciation 2023 Net Buildings and improvements $ 12,180,004 $ 3,729,894 $ 8,450,110 Automobiles 196,255 132,847 63,408 Computer hardware 43,436 42,840 596 Manufacturing equipment 9,498,662 5,533,484 3,965,178 Boat 34,400 29,331 5,069 Office equipment 134,119 119,730 14,389 Trailer 8,873 7,890 983 Leasehold Improvements 88,872 88,872 — Land 440,592 — 440,592 Technology 101,038 101,038 — $ 22,726,251 $ 9,785,926 $ 12,940,325 December 31, Accumulated December 31, 2022 Cost Depreciation 2022 Net Buildings and improvements $ 8,775,629 $ 3,310,920 $ 5,464,709 Automobiles 196,255 107,055 89,200 Computer hardware 43,432 42,663 769 Office equipment 133,280 112,782 20,498 Manufacturing equipment 8,634,063 4,891,736 3,742,327 Trailers 8,857 7,592 1,265 Boat 34,400 27,907 6,493 Leasehold improvements 88,872 88,872 — Technology 100,860 100,860 — Land 384,027 — 384,027 $ 18,399,675 $ 8,690,387 $ 9,709,288 |
PATENTS (Tables)
PATENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF PATENTS | SCHEDULE OF PATENTS September 30, 2023 Cost Accumulated September 30, 2023 Net Patents $ 196,069 $ 196,069 $ - December 31, 2022 Cost Accumulated December 31, 2022 Net Patents $ 195,725 $ 195,725 $ - |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF GOODWILL AND INDEFINITE LIVED INTANGIBLE ASSETS | SCHEDULE OF GOODWILL AND INDEFINITE LIVED INTANGIBLE ASSETS Goodwill Balance as of December 31, 2021 $ 2,534,275 Additions - Impairment - Balance as of December 31, 2022 and September 30, 2023 $ 2,534,275 Indefinite Lived Intangible Assets Balance as of December 31, 2021 $ 770,000 Additions - Impairment - Balance as of December 31, 2022 and September 30, 2023 $ 770,000 Goodwill relates to the acquisition of ENP Investments. Indefinite lived intangible assets consist of trade secrets and trademarks related to the acquisition of ENP Investments. Definite Life Intangible Assets Balance as of December 31, 2021 $ 1,830,000 Amortization (160,000 ) Balance as of December 31, 2022 1,670,000 Amortization (120,000 ) Balance as of September 30, 2023 $ 1,550,000 |
SCHEDULE OF ESTIMATED FUTURE AMORTIZATION EXPENSE | Estimated amortization expense over the next five years is as follows: SCHEDULE OF ESTIMATED FUTURE AMORTIZATION EXPENSE 2023 $ 160,000 2024 160,000 2025 160,000 2026 160,000 2027 160,000 |
LONG TERM DEPOSITS (Tables)
LONG TERM DEPOSITS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Long Term Deposits | |
SCHEDULE OF LONG TERM DEPOSITS | Long term deposits consist of damage deposits held by landlords and security deposits held by various vendors. SCHEDULE OF LONG TERM DEPOSITS September 30, 2023 December 31, 2022 Long term deposits $ 396,154 $ 8,540 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Enp Peru Investments Llc [Member] | |
SCHEDULE OF FAIR VALUES OF THE ASSETS ACQUIRED AND LIABILITIES ASSUMED | SCHEDULE OF FAIR VALUES OF THE ASSETS ACQUIRED AND LIABILITIES ASSUMED Purchase consideration $ 506,659 Assets acquired: Cash 7,330 Building 3,750,000 Land 150,000 Liabilities assumed: Deferred tax liability (174,582 ) Long term debt (2,849,500 ) Total identifiable net assets: 883,248 Excess of assets acquired over consideration 376,589 Less investment eliminated upon consolidation (41,538 ) Gain on acquisition of ENP Peru $ 335,051 |
SCHEDULE OF EQUITY METHOD INVESTMENT | A summary of the Company’s investment follows: SCHEDULE OF EQUITY METHOD INVESTMENT Balance, December 31, 2021 $ 22,642 Return of equity (8,750 ) Gain in equity method investment 27,646 Investment eliminated upon consolidation (41,538 ) Balance, December 31, 2022 and September 30, 2023 $ - |
Florida Based LLC [Member] | |
SCHEDULE OF EQUITY METHOD INVESTMENT | SCHEDULE OF EQUITY METHOD INVESTMENT Balance, December 31, 2021 $ 3,701,368 Gain in equity method investment 307,527 Return of equity (250,000 ) Balance, December 31, 2022 $ 3,758,895 Gain in equity method investment 422,923 Return of equity (100,000 ) Balance, September 30, 2023 $ 4,081,818 |
SUMMARY OF PROFIT AND LOSS INFORMATION RELATED TO EQUITY ACCOUNTED INVESTMENT | Summarized profit and loss information related to the equity accounted investment is as follows: SUMMARY OF PROFIT AND LOSS INFORMATION RELATED TO EQUITY ACCOUNTED INVESTMENT Nine months Nine months Net sales $ 11,915,398 $ 11,101,350 Gross profit 3,514,142 2,519,331 Net income 845,846 $ 359,938 |
LONG TERM DEBT (Tables)
LONG TERM DEBT (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF LOAN COVENANTS | As of September 30, 2023, Company was in compliance with all loan covenants. SCHEDULE OF LOAN COVENANTS Continuity September 30, 2023 December 31, 2022 Balance, January 1 $ 6,154,077 $ 2,366,598 Balance, beginning of period $ 6,154,077 $ 2,366,598 Plus: Proceeds from loans 2,248,292 3,230,798 Plus: Loan acquired with acquisition of ENP Peru - 2,849,500 Less: Payments on loan (542,148 ) (2,292,819 ) Balance, end of period $ 7,860,221 $ 6,154,077 |
SCHEDULE OF OUTSTANDING BALANCE LOAN | SCHEDULE OF OUTSTANDING BALANCE LOAN Outstanding balance at December 31, September 30, 2023 December 31, 2022 a) Long term debt – Midland States Bank $ - $ - b) Long term debt – Midland States Bank - - c) Long term debt – Stock Yards Bank & Trust 402,137 415,430 d) Long term debt – Stock Yards Bank & Trust 1,164,686 1,632,672 e) Long term debt – Stock Yards Bank & Trust 2,756,573 2,813,015 f) Long term debt – Stock Yards Bank & Trust 251,735 256,162 g) Long term debt – Stock Yards Bank & Trust 1,036,798 1,036,798 h) Long term debt – Stock Yards Bank & Trust 2,248,292 — Long-term Debt 7,860,221 6,154,077 Less: current portion (830,760 ) (717,612 ) Long-term debt non current $ 7,029,461 $ 5,436,465 |
STOCK OPTIONS (Tables)
STOCK OPTIONS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
SCHEDULE OF STOCK OPTION ACTIVITIES | The following table summarizes the Company’s stock option activities for the year ended December 31, 2022 and the nine month period ended September 30, 2023: SCHEDULE OF STOCK OPTION ACTIVITIES Number of shares Exercise price Weighted average Balance, December 31, 2021 789,500 $ 1.42 4.13 $ 2.78 Granted 981,000 $ 3.55 3.61 $ 3.55 Cancelled or expired (13,486 ) $ 1.70 3.61 $ 2.32 Exercised (71,014 ) $ 1.42 2.44 $ 1.98 Balance, December 31, 2022 1,686,000 $ 1.70 4.13 $ 3.27 Cancelled or expired (12,000 ) $ 3.46 4.13 $ 3.60 Exercised (8,000 ) $ 1.70 $ 1.70 Balance, September 30, 2023 1,666,000 $ 1.75 4.13 $ 3.27 Exercisable, September 30, 2023 664,000 $ 1.75 4.13 $ 2.93 |
SCHEDULE OF STOCK OPTION FAIR VALUE ASSUMPTIONS | The fair value of each option grant is calculated using the following weighted average assumptions: SCHEDULE OF STOCK OPTION FAIR VALUE ASSUMPTIONS 2022 Expected life – years 3.0 Interest rate 1.76 3.64 Volatility 66.01 69.66 Weighted average fair value of options granted $ 1.46 1.65 |
NON-CONTROLLING INTERESTS (Tabl
NON-CONTROLLING INTERESTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Noncontrolling Interest [Abstract] | |
SCHEDULE OF DISTRIBUTIONS | SCHEDULE OF DISTRIBUTIONS Balance, December 31, 2021 $ 2,602,843 Distribution (689,434 ) Non-controlling interest share of income 691,625 Balance, December 31, 2022 2,605,034 Distribution (537,314 ) Non-controlling interest share of income 490,012 Balance, September 30, 2023 $ 2,557,732 |
SCHEDULE OF NON CONTROLLING INTEREST RELATED TO ACQUISITION | SCHEDULE OF NON CONTROLLING INTEREST RELATED TO ACQUISITION Balance, December 31, 2022 $ - Acquisition 200,000 Non-controlling interest share of loss (10,615 ) Balance, September 30, 2023 $ 189,385 |
SEGMENTED, SIGNIFICANT CUSTOM_2
SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
SCHEDULE OF REPORTABLE SEGMENTS | SCHEDULE OF REPORTABLE SEGMENTS EWCP BCPA Total Revenue $ 144,794 $ 8,575,827 $ 8,720,621 Interest expense - 119,599 119,599 Depreciation and amortization 4,380 459,217 463,597 Income tax expense 12,770 206,942 219,712 Segment profit (loss) (22,105 ) (696,056 ) (718,161 ) Segment assets 3,697,284 49,397,348 53,094,632 Expenditures for segment assets - (542,014 ) (542,014 ) Three months ended September 30, 2022: EWCP BCPA Total Revenue $ 179,007 $ 11,506,100 $ 11,685,107 Interest expense - 80,609 80,609 Depreciation and amortization 9,091 330,508 339,599 Income tax expense 24,035 325,146 349,181 Segment profit (loss) 69,376 1,038,755 1,108,131 Segment assets 2,345,580 46,462,283 48,807,863 Expenditures for segment assets - (233,862 ) (233,862 ) Nine months ended September 30, 2023: EWCP BCPA Total Revenue $ 446,056 $ 28,453,373 $ 28,899,429 Interest expense - 369,967 369,967 Depreciation and amortization 13,099 1,202,072 1,215,171 Income tax expense 25,341 848,520 873,861 Segment profit (loss) (215,095 ) 1,191,168 976,073 Segment assets 3,697,284 49,397,348 53,094,632 Expenditures for segment assets - (4,326,208 ) (4,326,208 ) Nine months ended September 30, 2022: EWCP BCPA Total Revenue $ 415,830 $ 33,217,700 $ 33,633,530 Interest expense - 190,366 190,366 Depreciation and amortization 27,537 784,340 811,877 Income tax expense 35,341 1,569,088 1,604,429 Segment profit (loss) (139,362 ) 4,443,007 4,303,645 Segment assets 2,345,580 46,462,283 48,807,863 Expenditures for segment assets - (647,232 ) (647,232 ) |
SCHEDULE OF REVENUE GENERATED IN UNITED STATES AND CANADA | The sales generated in the United States and Canada are as follows: SCHEDULE OF REVENUE GENERATED IN UNITED STATES AND CANADA Nine months ended Nine months ended Canada $ 413,265 $ 449,106 United States and abroad 28,486,164 33,184,424 Total $ 28,899,429 $ 33,633,530 |
SCHEDULE OF LONG-LIVED ASSETS ARE LOCATED IN CANADA AND UNITED STATES | The Company’s long-lived assets (property, equipment, leaseholds intangibles, goodwill, and right of use assets) are located in Canada and the United States as follows: SCHEDULE OF LONG-LIVED ASSETS ARE LOCATED IN CANADA AND UNITED STATES September 30, 2023 December 31, 2022 Canada $ 143,811 $ 150,890 United States 17,779,273 14,699,896 Total $ 17,923,084 $ 14,850,786 |
BASIS OF PRESENTATION (Details
BASIS OF PRESENTATION (Details Narrative) | 1 Months Ended | 9 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Enp Peru Investments Llc [Member] | |||
Subsidiary company ownership interest rate | 100% | ||
ENP Investments LLC and ENP Mendota [Member] | |||
Subsidiary company ownership interest rate | 65% | ||
ENP Peru [Member] | |||
Subsidiary company ownership interest rate | 65% | ||
Increase decrease in share percentage | 91.67% | ||
Remaining investment owned percentage | 8.33% | 8.33% | |
ENP Peru [Member] | Unrelated Party [Member] | |||
Subsidiary company ownership interest rate | 50% | ||
Mendota LLC [Member] | |||
Subsidiary company ownership interest rate | 80% | ||
Mendota LLC [Member] | Unrelated Party [Member] | |||
Subsidiary company ownership interest rate | 80% | ||
Mendota LLC [Member] | Related Party [Member] | |||
Noncontrolling interest percentage | 20% |
SCHEDULE OF METHOD OF DEPRECIAT
SCHEDULE OF METHOD OF DEPRECIATION (Details) | 9 Months Ended |
Sep. 30, 2023 | |
Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation method used and annual rate | 30% Declining balance |
Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation method used and annual rate | 20% Declining balance |
Office Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation method used and annual rate | 20% Declining balance |
Boat [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation method used and annual rate | 20% Declining balance |
Building and Building Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation method used and annual rate | 10% Declining balance |
Trailer [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation method used and annual rate | 30% Declining balance |
Automobiles [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation method used and annual rate | Straight-line over 5 years |
Patents [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation method used and annual rate | Straight-line over 17 years |
Technology Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation method used and annual rate | Straight-line over 10 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation method used and annual rate | Straight-line over lease term |
Customer Relationships [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation method used and annual rate | Straight-line over 15 years |
Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation method used and annual rate | Straight-line over 3 years |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Product Information [Line Items] | |||||
Deposit | $ 700,000 | $ 700,000 | |||
Term deposits percent | 8.25% | 8.25% | |||
Accured interest | $ 150 | $ 150 | |||
Other term deposit | 300,000 | 300,000 | |||
Sale | 8,720,621 | $ 11,685,107 | 28,899,429 | $ 33,633,530 | |
Cost of sales | 7,248,266 | 8,502,551 | $ 21,303,229 | 22,777,467 | |
Investment [Member] | |||||
Product Information [Line Items] | |||||
Equity method investment, description | Significant influence is generally deemed to exist if the Company’s ownership interest in the voting stock of the investee ranges between 20% and 50%, although other factors, such as representation on the investee’s board of directors, are considered in determining whether the equity method of accounting is appropriate. | ||||
Three Primary Customers [Member] | |||||
Product Information [Line Items] | |||||
Sale | $ 5,811,847 | $ 7,452,860 | $ 14,020,837 | $ 19,050,848 | |
Three Primary Customers [Member] | Revenue from Contract with Customer Benchmark [Member] | |||||
Product Information [Line Items] | |||||
Accounts receivable, after allowance for credit loss, percentage | 67% | 64% | 49% | 57% | |
Three Primary Customers [Member] | Accounts Receivable [Member] | |||||
Product Information [Line Items] | |||||
Sale | $ 4,688,642 | $ 6,124,424 | |||
Accounts receivable, after allowance for credit loss, percentage | 68% | 65% | |||
Shipping and Handling [Member] | |||||
Product Information [Line Items] | |||||
Sale | $ 381,740 | $ 341,918 | |||
Cost of sales | $ 771,772 | $ 783,917 |
SUMMARY OF RIGHT-OF-USE ASSET A
SUMMARY OF RIGHT-OF-USE ASSET AND LEASE LIABILITY (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Leases | ||
Right of use assets, beginning balance | $ 167,222 | $ 217,267 |
Depreciation | (38,738) | (50,045) |
Right of use assets, ending balance | 128,484 | 167,222 |
Lease liability, beginning balance | 167,222 | 217,267 |
Lease interest expense | 4,812 | 8,566 |
Payments | (43,550) | (58,611) |
Lease liability, ending balance | 128,484 | 167,222 |
Short-term portion | 59,160 | 58,080 |
Long-term portion | 69,324 | 109,142 |
Total | $ 128,484 | $ 167,222 |
SCHEDULE OF UNDISCOUNTED RENT P
SCHEDULE OF UNDISCOUNTED RENT PAYMENTS (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Leases | |||
2023 | $ 14,520 | ||
2024 | 59,520 | ||
2025 | 61,020 | ||
Total | 135,060 | ||
Impact of discounting | (6,576) | ||
Lease liability, September 30, 2023 | $ 128,484 | $ 167,222 | $ 217,267 |
LEASES (Details Narrative)
LEASES (Details Narrative) | Sep. 30, 2023 |
Leases | |
Operating leases discount rate | 5.50% |
SCHEDULE OF ACCOUNTS RECEIVABLE
SCHEDULE OF ACCOUNTS RECEIVABLE (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Accounts receivable | $ 7,203,680 | $ 9,739,150 |
Allowances for doubtful accounts | (289,359) | (289,293) |
Total accounts receivable | $ 6,914,321 | $ 9,449,857 |
SCHEDULE OF INVENTORY (Details)
SCHEDULE OF INVENTORY (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Completed goods | $ 2,539,460 | $ 3,806,646 |
Raw materials and supplies | 6,900,692 | 10,612,784 |
Total inventory | $ 9,440,152 | $ 14,419,430 |
SCHEDULE OF PROPERTY, EQUIPMENT
SCHEDULE OF PROPERTY, EQUIPMENT AND LEASEHOLDS (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Cost | $ 22,726,251 | $ 18,399,675 |
Accumulated Depreciation | 9,785,926 | 8,690,387 |
Property, plant and equipment, net, total | 12,940,325 | 9,709,288 |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 12,180,004 | 8,775,629 |
Accumulated Depreciation | 3,729,894 | 3,310,920 |
Property, plant and equipment, net, total | 8,450,110 | 5,464,709 |
Automobiles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 196,255 | 196,255 |
Accumulated Depreciation | 132,847 | 107,055 |
Property, plant and equipment, net, total | 63,408 | 89,200 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 43,436 | 43,432 |
Accumulated Depreciation | 42,840 | 42,663 |
Property, plant and equipment, net, total | 596 | 769 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 9,498,662 | 8,634,063 |
Accumulated Depreciation | 5,533,484 | 4,891,736 |
Property, plant and equipment, net, total | 3,965,178 | 3,742,327 |
Boat [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 34,400 | 34,400 |
Accumulated Depreciation | 29,331 | 27,907 |
Property, plant and equipment, net, total | 5,069 | 6,493 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 134,119 | 133,280 |
Accumulated Depreciation | 119,730 | 112,782 |
Property, plant and equipment, net, total | 14,389 | 20,498 |
Trailer [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 8,873 | 8,857 |
Accumulated Depreciation | 7,890 | 7,592 |
Property, plant and equipment, net, total | 983 | 1,265 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 88,872 | 88,872 |
Accumulated Depreciation | 88,872 | 88,872 |
Property, plant and equipment, net, total | ||
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 440,592 | 384,027 |
Accumulated Depreciation | ||
Property, plant and equipment, net, total | 440,592 | 384,027 |
Developed Technology Rights [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 101,038 | 100,860 |
Accumulated Depreciation | 101,038 | 100,860 |
Property, plant and equipment, net, total |
PROPERTY, EQUIPMENT & LEASEHO_3
PROPERTY, EQUIPMENT & LEASEHOLDS (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 1,095,171 | $ 679,548 |
SCHEDULE OF PATENTS (Details)
SCHEDULE OF PATENTS (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Patents, cost | $ 196,069 | $ 195,725 |
Patents, Accumulated amortization | 196,069 | 195,725 |
Patents, net |
SCHEDULE OF GOODWILL AND INDEFI
SCHEDULE OF GOODWILL AND INDEFINITE LIVED INTANGIBLE ASSETS (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Goodwill | $ 2,534,275 | $ 2,534,275 |
Goodwill, Additions | ||
Goodwill, Impairment | ||
Goodwill | 2,534,275 | 2,534,275 |
Indefinite lived intangible assets, beginning balance | 770,000 | 770,000 |
Indefinite lived intangible assets, Additions | ||
Indefinite lived intangible assets, Impairment | ||
Indefinite lived intangible assets, ending balance | 770,000 | 770,000 |
ENP Investments Limited Liability Corporation (LLC) [Member] | ||
Indefinite lived intangible assets, beginning balance | 1,670,000 | 1,830,000 |
Indefinite lived intangible assets, ending balance | 1,550,000 | 1,670,000 |
Amortization | $ (120,000) | $ (160,000) |
PATENTS (Details Narrative)
PATENTS (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amount of amortization | $ 12,329 |
SCHEDULE OF ESTIMATED FUTURE AM
SCHEDULE OF ESTIMATED FUTURE AMORTIZATION EXPENSE (Details) - Finite-Lived Intangible Assets [Member] | Sep. 30, 2023 USD ($) |
Impairment Effects on Earnings Per Share [Line Items] | |
2023 | $ 160,000 |
2024 | 160,000 |
2025 | 160,000 |
2026 | 160,000 |
2027 | $ 160,000 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS (Details Narrative) | Sep. 30, 2023 |
Software and Software Development Costs [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 3 years |
Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 15 years |
SCHEDULE OF LONG TERM DEPOSITS
SCHEDULE OF LONG TERM DEPOSITS (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Long Term Deposits | ||
Long term deposits | $ 396,154 | $ 8,540 |
SCHEDULE OF FAIR VALUES OF THE
SCHEDULE OF FAIR VALUES OF THE ASSETS ACQUIRED AND LIABILITIES ASSUMED (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Equity Method Investments and Joint Ventures [Abstract] | |
Purchase consideration | $ 506,659 |
Cash | 7,330 |
Building | 3,750,000 |
Land | 150,000 |
Deferred tax liability | (174,582) |
Long term debt | (2,849,500) |
Total identifiable net assets: | 883,248 |
Excess of assets acquired over consideration | 376,589 |
Less investment eliminated upon consolidation | (41,538) |
Gain on acquisition of ENP Peru | $ 335,051 |
SCHEDULE OF EQUITY METHOD INVES
SCHEDULE OF EQUITY METHOD INVESTMENT (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Balance, Beginning | $ 5,458,895 | |
Investment eliminated upon consolidation | $ (41,538) | |
Balance, Ending | 6,251,818 | 5,458,895 |
Enp Peru Investments Llc [Member] | ||
Balance, Beginning | 22,642 | |
Return of equity | (8,750) | |
Gain in equity method investment | 27,646 | |
Investment eliminated upon consolidation | (41,538) | |
Balance, Ending | ||
Florida Based LLC [Member] | ||
Balance, Beginning | 3,758,895 | 3,701,368 |
Return of equity | (100,000) | (250,000) |
Gain in equity method investment | 422,923 | 307,527 |
Balance, Ending | $ 4,081,818 | $ 3,758,895 |
SUMMARY OF PROFIT AND LOSS INFO
SUMMARY OF PROFIT AND LOSS INFORMATION RELATED TO EQUITY ACCOUNTED INVESTMENT (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | ||
Net sales | $ 11,915,398 | $ 11,101,350 |
Gross profit | 3,514,142 | 2,519,331 |
Net income | $ 845,846 | $ 359,938 |
INVESTMENTS (Details Narrative)
INVESTMENTS (Details Narrative) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2022 | Dec. 31, 2020 | Dec. 31, 2018 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2023 | Apr. 30, 2023 | Dec. 31, 2022 | Jan. 31, 2019 | Dec. 01, 2018 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Cash | $ 8,943,972 | $ 4,339,483 | ||||||||||
Debt maturity date | Dec. 06, 2023 | |||||||||||
Payments to Acquire Investments | 470,000 | |||||||||||
Applied Holding Corp [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Investment | $ 200,000 | |||||||||||
Trio Opportunity Corp [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Investment | $ 470,000 | $ 500,000 | ||||||||||
Trio Opportunity Corp [Member] | Common Class B [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Common stock issued, shares | 97,000 | |||||||||||
Share price | $ 10 | |||||||||||
Florida Based LLC [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Sales | 7,116,232 | $ 7,931,549 | ||||||||||
Accounts receivable related parties | $ 2,274,958 | $ 2,423,285 | ||||||||||
Lygos Inc [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Investment | $ 1,000,000 | |||||||||||
Payments to Acquire Investments | $ 500,000 | $ 500,000 | ||||||||||
ENP Peru [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
[custom:RemainningShareOutstanding] | $ 506,659 | |||||||||||
Cash | $ 259,000 | |||||||||||
ENP Investments LLC [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Subsidiary, Ownership Percentage, Parent | 35% | |||||||||||
Enp Peru Investments Llc [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Ownership percentage | 50% | |||||||||||
Nano Chem [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Ownership percentage | 41.67% | |||||||||||
[custom:AdditionalEquityMethodInvestmentOwnershipPercentage-0] | 50% | |||||||||||
ENP Investments, LLC [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Ownership percentage | 8.33% | 8.33% | 8.33% | |||||||||
Florida Based LLC [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Ownership percentage | 50% |
SHORT-TERM LINE OF CREDIT (Deta
SHORT-TERM LINE OF CREDIT (Details Narrative) - USD ($) | 1 Months Ended | ||
Jun. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Line of Credit Facility [Line Items] | |||
Line of credit | $ 2,818,591 | ||
Stock Yard And Bank One [Member] | NanoChem Solutions Inc [Member] | |||
Line of Credit Facility [Line Items] | |||
Loan guaranteed rate | 35% | ||
Line of credit | $ 1,575,000 | ||
Stock Yard And Bank One [Member] | New Agreement [Member] | NanoChem Solutions Inc [Member] | |||
Line of Credit Facility [Line Items] | |||
Loan guaranteed rate | 65% | ||
Line of credit | $ 2,925,000 | ||
Short term borrowings | $ 2,477,794 | ||
Stock Yard And Bank One [Member] | Midland States Bank [Member] | New Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Increasing amount of revolving line of credit | $ 500,000 | ||
Aggregate amount of revolving line of credit | $ 4,500,000 | ||
Percentage of foreign accounts receivable of inventory | 50% | ||
Debt face amount | $ 2,000,000 | ||
Interest rate | 8.50% | 7.50% | |
Stock Bank [Member] | New Agreement [Member] | NanoChem Solutions Inc [Member] | Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Short term borrowings | $ 340,797 | ||
Stock Bank [Member] | Midland States Bank [Member] | New Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Aggregate amount of revolving line of credit | $ 4,000,000 | ||
Percentage of foreign accounts receivable of inventory | 50% | ||
Debt face amount | $ 2,000,000 | ||
Interest rate | 8.50% | 7.50% | |
Eligible percentage of domestic accounts receivable | 80% |
SCHEDULE OF LOAN COVENANTS (Det
SCHEDULE OF LOAN COVENANTS (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Debt Disclosure [Abstract] | ||
Balance, beginning of period | $ 6,154,077 | $ 2,366,598 |
Plus: Proceeds from loans | 2,248,292 | 3,230,798 |
Plus: Loan acquired with acquisition of ENP Peru | 2,849,500 | |
Less: Payments on loan | (542,148) | (2,292,819) |
Balance, end of period | $ 7,860,221 | $ 6,154,077 |
SCHEDULE OF OUTSTANDING BALANCE
SCHEDULE OF OUTSTANDING BALANCE LOAN (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | |||
Long-term Debt | $ 7,860,221 | $ 6,154,077 | $ 2,366,598 |
Less: current portion | (830,760) | (717,612) | |
Long-term debt non current | 7,029,461 | 5,436,465 | |
Midland States Bank [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Long-term Debt | |||
Midland States Bank One [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Long-term Debt | |||
Stock Yards Bank & Trust [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Long-term Debt | 402,137 | 415,430 | |
Stock Yards Bank Trust One [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Long-term Debt | 1,164,686 | 1,632,672 | |
Stock Yards Bank Trust Two [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Long-term Debt | 2,756,573 | 2,813,015 | |
Stock Yards Bank Trust Three [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Long-term Debt | 251,735 | 256,162 | |
Stock Yards Bank Trust Four [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Long-term Debt | 1,036,798 | 1,036,798 | |
Stock Yards Bank Trust Five [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Long-term Debt | $ 2,248,292 |
LONG TERM DEBT (Details Narrati
LONG TERM DEBT (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Jun. 30, 2022 | Oct. 31, 2020 | Jan. 31, 2020 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Jun. 30, 2023 | |
Short-Term Debt [Line Items] | |||||||||
Interest expense | $ 119,599 | $ 80,609 | $ 369,967 | $ 190,366 | |||||
Midland Bank [Member] | NanoChem Solutions Inc [Member] | |||||||||
Short-Term Debt [Line Items] | |||||||||
Debt instrument face amount | $ 894,253 | ||||||||
Debt instrument term | 2 years | ||||||||
Interest expense debt | 5,816 | ||||||||
Debt Long term debt amount | |||||||||
Midland Bank [Member] | NanoChem Solutions Inc [Member] | Prime Rate [Member] | |||||||||
Short-Term Debt [Line Items] | |||||||||
Debt instrument interest rate stated percentage | 3.85% | ||||||||
Stock Yards Bank & Trust [Member] | ENP Realty LLC [Member] | |||||||||
Short-Term Debt [Line Items] | |||||||||
Debt instrument term | 10 years | ||||||||
Stock Yards Bank & Trust [Member] | ENP Realty LLC [Member] | Prime Rate [Member] | |||||||||
Short-Term Debt [Line Items] | |||||||||
Debt instrument interest rate stated percentage | 4.35% | ||||||||
Term Loan [Member] | Nano Chem [Member] | |||||||||
Short-Term Debt [Line Items] | |||||||||
Debt instrument face amount | 2,000,000 | ||||||||
Interest expense debt | 50,361 | ||||||||
Debt Long term debt amount | 1,036,798 | 1,036,798 | $ 1,036,798 | ||||||
Term Loan [Member] | Nano Chem [Member] | Prime Rate [Member] | |||||||||
Short-Term Debt [Line Items] | |||||||||
Debt instrument interest rate stated percentage | 6.50% | ||||||||
Term Loan [Member] | Mendota [Member] | |||||||||
Short-Term Debt [Line Items] | |||||||||
Debt instrument face amount | $ 3,240,000 | ||||||||
Interest expense debt | 47,450 | ||||||||
Debt Long term debt amount | 2,248,292 | 2,248,292 | |||||||
Term Loan [Member] | Midland Bank [Member] | NanoChem Solutions Inc [Member] | |||||||||
Short-Term Debt [Line Items] | |||||||||
Debt instrument face amount | $ 1,980,947 | ||||||||
Debt instrument interest rate stated percentage | 65% | ||||||||
Debt instrument term | 5 years | ||||||||
Interest expense debt | 30,334 | ||||||||
Term Loan [Member] | Midland Bank [Member] | NanoChem Solutions Inc [Member] | Prime Rate [Member] | |||||||||
Short-Term Debt [Line Items] | |||||||||
Debt instrument interest rate stated percentage | 3.85% | ||||||||
Term Loan [Member] | Midland Bank [Member] | ENP Mendota, LLC [Member] | |||||||||
Short-Term Debt [Line Items] | |||||||||
Debt instrument face amount | $ 1,935,000 | $ 450,000 | |||||||
Debt instrument interest rate stated percentage | 2.50% | ||||||||
Debt instrument term | 5 years | ||||||||
Interest expense debt | 13,459 | 13,959 | |||||||
Debt Long term debt amount | 402,137 | 402,137 | 415,430 | ||||||
Term Loan [Member] | Midland Bank [Member] | Nano Chem [Member] | |||||||||
Short-Term Debt [Line Items] | |||||||||
Interest expense debt | 53,176 | 23,632 | |||||||
Debt Long term debt amount | 1,164,686 | 1,164,686 | 1,632,672 | ||||||
Term Loan [Member] | Midland Bank [Member] | ENP Peru One [Member] | |||||||||
Short-Term Debt [Line Items] | |||||||||
Debt instrument face amount | $ 3,000,000 | 2,756,573 | 2,756,573 | 2,813,015 | |||||
Debt instrument term | 10 years | ||||||||
First mortgage | 2,849,500 | ||||||||
Interest expense | 92,304 | 23,632 | |||||||
Term Loan [Member] | Midland Bank [Member] | ENP Peru One [Member] | Prime Rate [Member] | |||||||||
Short-Term Debt [Line Items] | |||||||||
Debt instrument interest rate stated percentage | 4.35% | ||||||||
Term Loan [Member] | Midland Bank [Member] | ENP Peru Investments [Member] | |||||||||
Short-Term Debt [Line Items] | |||||||||
Debt instrument face amount | $ 259,000 | ||||||||
Debt instrument term | 10 years | ||||||||
Interest expense debt | 10,447 | $ 3,568 | |||||||
Debt Long term debt amount | $ 251,735 | $ 251,735 | $ 256,162 | ||||||
Term Loan [Member] | Midland Bank [Member] | ENP Peru Investments [Member] | Prime Rate [Member] | |||||||||
Short-Term Debt [Line Items] | |||||||||
Debt instrument interest rate stated percentage | 5.40% |
SCHEDULE OF STOCK OPTION ACTIVI
SCHEDULE OF STOCK OPTION ACTIVITIES (Details) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Number of shares, Beginning Balance | 1,686,000 | 789,500 |
Weighted average exercise price, Beginning Balance | $ 3.27 | $ 2.78 |
Number of shares, Granted | 981,000 | |
Weighted average exercise price, Granted | $ 3.55 | |
Number of shares, Cancelled or expired | (12,000) | (13,486) |
Weighted average exercise price, Cancelled or expired | $ 3.60 | $ 2.32 |
Number of shares, Exercised | (8,000) | (71,014) |
Exercise price per share, Exercised | $ 1.70 | |
Weighted average exercise price, Exercised | $ 1.70 | $ 1.98 |
Number of shares Exercisable, Ending Balance | 1,666,000 | 1,686,000 |
Weighted average exercise price, Ending Balance | $ 3.27 | $ 3.27 |
Number of shares Exercisable, Ending Balance | 664,000 | |
Weighted average exercise price, Exercisable, Ending Balance | $ 2.93 | |
Minimum [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Exercise price per share, Beginning Balance | 1.70 | 1.42 |
Exercise price per share, Granted | 3.55 | |
Exercise price per share, Cancelled or expired | 3.46 | 1.70 |
Exercise price per share, Exercised | 1.42 | |
Exercise price per share, Ending Balance | 1.75 | 1.70 |
Exercise price per share Exercisable, Ending Balance | 1.75 | |
Maximum [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Exercise price per share, Beginning Balance | 4.13 | 4.13 |
Exercise price per share, Granted | 3.61 | |
Exercise price per share, Cancelled or expired | 4.13 | 3.61 |
Exercise price per share, Exercised | 2.44 | |
Exercise price per share, Ending Balance | 4.13 | $ 4.13 |
Exercise price per share Exercisable, Ending Balance | $ 4.13 |
SCHEDULE OF STOCK OPTION FAIR V
SCHEDULE OF STOCK OPTION FAIR VALUE ASSUMPTIONS (Details) | 12 Months Ended |
Dec. 31, 2022 $ / shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Expected life - years | 3 years |
Minimum [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Interest rate | 1.76% |
Volatility | 66.01% |
Weighted average fair value of options granted | $ 1.46 |
Maximum [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Interest rate | 3.64% |
Volatility | 69.66% |
Weighted average fair value of options granted | $ 1.65 |
STOCK OPTIONS (Details Narrativ
STOCK OPTIONS (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||
Options granted percentage | 100% | ||
Options maximum granted term | 5 years | ||
Weighted-average remaining contractual life | 3 years 4 months 24 days | ||
Number of shares, granted | 981,000 | ||
Stock options exercised | 8,000 | 71,014 | |
Stock vested compensation non vested | $ 887,957 | ||
Weighted average period expected to be recognized | 1 year 10 months 24 days | ||
Canada Revenue Agency [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||
Aggregate intrinsic value of vested options | |||
Consultants [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||
Stock option plan expense | 47,391 | 47,380 | |
Employees [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||
Stock option plan expense | $ 491,013 | $ 111,804 | |
Number of shares, granted | 5,000 | ||
Additional expenses due to options granted | $ 5,475 | ||
Stock options exercised | 8,000 | 29,500 | |
Consultant [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||
Stock options exercised |
CAPITAL STOCK (Details Narrativ
CAPITAL STOCK (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||
Stock options granted | 981,000 | ||
Consultant for services, shares | 1,272 | ||
Consultant for services, value | $ 4,070 | ||
Dividends per share | $ 0.05 | ||
Employee [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||
Stock options granted | 8,000 | 29,500 |
SCHEDULE OF DISTRIBUTIONS (Deta
SCHEDULE OF DISTRIBUTIONS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||
Distribution to noncontrolling interests, Beginning balance | $ 2,605,034 | |||||||
Distribution | $ (149,618) | $ (387,696) | $ (116,933) | $ (116,934) | $ (265,922) | |||
Non-controlling interest share of income | 214,410 | $ 212,680 | 479,397 | $ 523,272 | ||||
Distribution to noncontrolling interests, Ending balance | 2,747,117 | 2,747,117 | $ 2,605,034 | |||||
ENP Investments, LLC [Member] | Ownership Interest Purchase Agreement [Member] | ||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||
Distribution to noncontrolling interests, Beginning balance | $ 2,602,843 | 2,605,034 | $ 2,602,843 | 2,602,843 | ||||
Distribution | (537,314) | (689,434) | ||||||
Non-controlling interest share of income | 490,012 | 691,625 | ||||||
Distribution to noncontrolling interests, Ending balance | $ 2,557,732 | $ 2,557,732 | $ 2,605,034 |
SCHEDULE OF NON CONTROLLING INT
SCHEDULE OF NON CONTROLLING INTEREST RELATED TO ACQUISITION (Details) | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Distribution to noncontrolling interests, Beginning balance | $ 2,605,034 |
Distribution to noncontrolling interests, Ending balance | 2,747,117 |
Mendota LLC [Member] | Ownership Interest Purchase Agreement [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Distribution to noncontrolling interests, Beginning balance | |
Distribution to noncontrolling interests, Acquisition | 200,000 |
Distribution to noncontrolling interests, Non-controlling interest share of loss | (10,615) |
Distribution to noncontrolling interests, Ending balance | $ 189,385 |
NON-CONTROLLING INTERESTS (Deta
NON-CONTROLLING INTERESTS (Details Narrative) - USD ($) | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Partnership distribution to non-controlling interest | $ 537,314 | $ 499,789 | |
Accounts receivable | $ 6,914,321 | $ 9,449,857 | |
ENP Investments, LLC [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Subsidiary company ownership interest rate | 65% | ||
Related party owner ship percentage | 35% | ||
Partnership distribution to non-controlling interest | $ 3,043,833 | ||
Sales | 4,728,562 | $ 4,913,342 | |
Accounts receivable | $ 2,154,033 | $ 3,634,083 | |
Mendota LLC [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Subsidiary company ownership interest rate | 80% | ||
Related party owner ship percentage | 20% |
SCHEDULE OF REPORTABLE SEGMENTS
SCHEDULE OF REPORTABLE SEGMENTS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue from External Customer [Line Items] | ||||
Revenue | $ 8,720,621 | $ 11,685,107 | $ 28,899,429 | $ 33,633,530 |
Interest expense | 119,599 | 80,609 | 369,967 | 190,366 |
Income tax expense | 219,712 | 349,181 | 873,861 | 1,604,429 |
Segment profit (loss) | (718,161) | 1,108,131 | 976,073 | 4,303,645 |
Expenditures for segment assets | (4,326,208) | (647,232) | ||
Segment [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 8,720,621 | 11,685,107 | 28,899,429 | 33,633,530 |
Interest expense | 119,599 | 80,609 | 369,967 | 190,366 |
Depreciation and amortization | 463,597 | 339,599 | 1,215,171 | 811,877 |
Income tax expense | 219,712 | 349,181 | 873,861 | 1,604,429 |
Segment profit (loss) | (718,161) | 1,108,131 | 976,073 | 4,303,645 |
Segment assets | 53,094,632 | 48,807,863 | 53,094,632 | 48,807,863 |
Expenditures for segment assets | (542,014) | (233,862) | (4,326,208) | (647,232) |
EWCP [Member] | Segment [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 144,794 | 179,007 | 446,056 | 415,830 |
Interest expense | ||||
Depreciation and amortization | 4,380 | 9,091 | 13,099 | 27,537 |
Income tax expense | 12,770 | 24,035 | 25,341 | 35,341 |
Segment profit (loss) | (22,105) | 69,376 | (215,095) | (139,362) |
Segment assets | 3,697,284 | 2,345,580 | 3,697,284 | 2,345,580 |
Expenditures for segment assets | ||||
BCPA [Member] | Segment [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 8,575,827 | 11,506,100 | 28,453,373 | 33,217,700 |
Interest expense | 119,599 | 80,609 | 369,967 | 190,366 |
Depreciation and amortization | 459,217 | 330,508 | 1,202,072 | 784,340 |
Income tax expense | 206,942 | 325,146 | 848,520 | 1,569,088 |
Segment profit (loss) | (696,056) | 1,038,755 | 1,191,168 | 4,443,007 |
Segment assets | 49,397,348 | 46,462,283 | 49,397,348 | 46,462,283 |
Expenditures for segment assets | $ (542,014) | $ (233,862) | $ (4,326,208) | $ (647,232) |
SCHEDULE OF REVENUE GENERATED I
SCHEDULE OF REVENUE GENERATED IN UNITED STATES AND CANADA (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Sales | $ 8,720,621 | $ 11,685,107 | $ 28,899,429 | $ 33,633,530 |
CANADA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Sales | 413,265 | 449,106 | ||
United Statesand Abroad [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Sales | $ 28,486,164 | $ 33,184,424 |
SCHEDULE OF LONG-LIVED ASSETS A
SCHEDULE OF LONG-LIVED ASSETS ARE LOCATED IN CANADA AND UNITED STATES (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | $ 17,923,084 | $ 14,850,786 |
CANADA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | 143,811 | 150,890 |
UNITED STATES | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | $ 17,779,273 | $ 14,699,896 |
SEGMENTED, SIGNIFICANT CUSTOM_3
SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY (Details Narrative) | 9 Months Ended | |
Sep. 30, 2023 USD ($) Segments | Sep. 30, 2022 USD ($) | |
Revenue, Major Customer [Line Items] | ||
Number of operating segments | Segments | 2 | |
Accounts Receivable [Member] | Three Customers [Member] | ||
Revenue, Major Customer [Line Items] | ||
Accounts receivable, after allowance for credit loss | $ | $ 14,020,837 | $ 19,050,848 |
Stock option exercise percent | 49% | 57% |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) | 1 Months Ended |
Oct. 31, 2023 USD ($) | |
Subsequent Event [Member] | Applied Holdings [Member] | |
Subsequent Event [Line Items] | |
Payment received | $ 200,000 |