Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 14, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2024 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2024 | |
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 | 12,450,532 |
Condensed Interim Consolidated
Condensed Interim Consolidated Balance Sheets - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Current | ||
Cash | $ 6,843,825 | $ 5,017,583 |
Term deposits (Note 2) | 2,365,613 | 2,690,241 |
Accounts receivable, net (Note 4) | 8,792,696 | 9,843,056 |
Inventories (Note 5) | 10,333,958 | 11,134,889 |
Prepaid expenses and deposits | 586,473 | 1,540,923 |
Total current assets | 28,922,565 | 30,226,692 |
Property, equipment and leaseholds, net (Note 6) | 13,976,733 | 13,171,787 |
Right of use assets (Note 3) | 115,293 | |
Intangible assets (Note 7) | 2,200,000 | 2,280,000 |
Long term deposits (Note 8) | 2,521,905 | 824,254 |
Investments (Note 9) | 5,904,624 | 6,033,960 |
Goodwill (Note 7) | 2,534,275 | 2,534,275 |
Deferred tax asset (Note 2) | 284,794 | 284,794 |
Total Assets | 56,344,896 | 55,471,055 |
Current | ||
Accounts payable | 1,488,836 | 1,984,592 |
Accrued liabilities | 1,258,609 | 284,131 |
Deferred revenue | 79,917 | 148,292 |
Income taxes payable | 5,307,642 | 4,485,213 |
Short term line of credit (Note 10) | 619,844 | 1,810,479 |
Current portion of lease liability (Note 3) | 59,520 | |
Current portion of long term debt (Note 11) | 2,163,602 | 1,281,632 |
Total current liabilities | 10,918,450 | 10,053,859 |
Lease liability (Note 3) | 55,773 | |
Deferred income tax liability (Note 2) | 260,047 | 260,047 |
Long term debt (Note 11) | 6,102,531 | 6,833,304 |
Total Liabilities | 17,281,028 | 17,202,983 |
Stockholders’ Equity | ||
Common stock, value | 12,451 | 12,436 |
Capital in excess of par value | 18,337,510 | 17,932,015 |
Other comprehensive loss | (732,805) | (795,146) |
Accumulated earnings | 18,545,020 | 18,053,051 |
Total stockholders’ equity – controlling interest | 36,162,176 | 35,202,356 |
Non-controlling interests (Note 14) | 2,901,692 | 3,065,716 |
Total Stockholders’ Equity | 39,063,868 | 38,268,072 |
Total Liabilities and Stockholders’ Equity | $ 56,344,896 | $ 55,471,055 |
Condensed Interim Consolidate_2
Condensed Interim Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
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 | 12,450,532 | 12,435,532 |
Common stock, shares outstanding | 12,450,532 | 12,435,532 |
Condensed Interim Consolidate_3
Condensed Interim Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Sales | $ 10,528,739 | $ 10,331,291 | $ 19,753,611 | $ 20,178,808 |
Cost of sales | 6,589,644 | 7,292,438 | 12,994,149 | 14,054,963 |
Gross profit | 3,939,095 | 3,038,853 | 6,759,462 | 6,123,845 |
Operating Expenses | ||||
Wages | 594,384 | 787,621 | 1,245,542 | 1,459,313 |
Administrative salaries and benefits | 289,777 | 394,305 | 707,636 | 787,319 |
Insurance | 229,198 | 228,445 | 473,458 | 429,975 |
Office and miscellaneous | 197,707 | 74,944 | 355,330 | 173,790 |
Interest expense | 157,131 | 115,498 | 332,397 | 250,368 |
Consulting | 142,395 | 69,253 | 242,316 | 132,230 |
Professional fees | 122,470 | 79,532 | 183,465 | 142,299 |
Utilities | 76,256 | 5,487 | 149,932 | 12,974 |
Advertising and promotion | 63,283 | 62,011 | 130,232 | 110,409 |
Research | 62,474 | 15,833 | 189,128 | 37,335 |
Travel | 61,179 | 64,612 | 127,440 | 126,264 |
Currency exchange | 47,681 | 13,925 | 46,046 | 16,501 |
Investor relations and transfer agent fee | 46,174 | 32,993 | 85,478 | 122,885 |
Telecommunications | 15,996 | 10,432 | 29,528 | 23,010 |
Lease expense | 12,195 | 27,645 | 42,345 | 52,940 |
Shipping | 7,014 | 5,100 | 14,843 | 9,766 |
Commissions | 2,985 | |||
Total operating expenses | 2,125,314 | 1,987,636 | 4,355,116 | 3,890,363 |
Operating income | 1,813,781 | 1,051,217 | 2,404,346 | 2,233,482 |
Gain on investment | 115,463 | 256,708 | 298,438 | 326,703 |
Loss on lease termination | (41,350) | |||
Interest income | 61,440 | 41,174 | 109,637 | 53,185 |
Income before income tax | 1,990,684 | 1,349,099 | 2,771,071 | 2,613,370 |
Income taxes | ||||
Income tax expense | (558,251) | (354,372) | (822,429) | (654,149) |
Net income for the period including non-controlling interests | 1,432,433 | 994,727 | 1,948,642 | 1,959,221 |
Less: Net income attributable to non-controlling interests | (142,637) | (184,862) | (201,620) | (264,987) |
Net income attributable to controlling interest | $ 1,289,796 | $ 809,865 | $ 1,747,022 | $ 1,694,234 |
Income per share (basic) | $ 0.10 | $ 0.07 | $ 0.14 | $ 0.14 |
Income per share (diluted) | $ 0.10 | $ 0.06 | $ 0.14 | $ 0.14 |
Weighted average number of common shares (basic) | 12,450,532 | 12,435,532 | 12,450,118 | 12,434,230 |
Weighted average number of common shares (diluted) | 12,480,712 | 12,519,930 | 12,450,118 | 12,498,945 |
Other comprehensive income: | ||||
Net income | $ 1,432,433 | $ 994,727 | $ 1,948,642 | $ 1,959,221 |
Unrealized gain (loss) on foreign currency translations | 35,118 | 226,645 | 62,341 | 59,406 |
Total comprehensive income | 1,467,551 | 1,221,372 | 2,010,983 | 2,018,627 |
Comprehensive income – non-controlling interest | (142,637) | (184,862) | (201,620) | (264,987) |
Comprehensive income attributable to Flexible Solutions International Inc. | $ 1,324,914 | $ 1,036,510 | $ 1,809,363 | $ 1,753,640 |
Condensed Interim Consolidate_4
Condensed Interim Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Operating activities | ||
Net income for the period including non-controlling interest | $ 1,948,642 | $ 1,959,221 |
Adjustments to reconcile net income to cash provided by operations: | ||
Stock based compensation | 379,260 | 366,526 |
Depreciation and amortization | 939,524 | 751,574 |
Lease right of use amortization | 13,694 | 25,687 |
Lease right of use financing | 1,186 | 3,353 |
Loss on termination lease | 41,350 | |
Gain on investment | (298,438) | (326,703) |
Changes in non-cash working capital items: | ||
(Increase) Decrease in accounts receivable | 1,050,360 | 2,014,807 |
(Increase) Decrease in inventories | 800,931 | 3,646,494 |
(Increase) Decrease in prepaid expenses | 954,450 | (558,583) |
Increase (Decrease) in accounts payable and accrued liabilities | 478,723 | (8,821) |
Increase (Decrease) in taxes payable | 822,429 | 405,577 |
Increase (Decrease) deferred revenue | (68,375) | (352,357) |
Cash provided by operating activities | 7,063,736 | 7,926,775 |
Investing activities | ||
Long term deposits | (1,703,091) | (361,616) |
Proceeds of equity method investment distributions | 427,000 | |
Net purchase of property, equipment and leaseholds | (1,663,697) | (3,784,193) |
Non-controlling interest of 317 Mendota | 200,000 | |
Additional investment in Trio | (470,000) | |
Cash (used in) investing activities | (2,939,788) | (4,415,809) |
Financing activities | ||
Repayment of short term line of credit | (1,190,635) | (2,818,591) |
Repayment of long term debt | (373,615) | (361,265) |
Proceeds from loans | 524,812 | 2,248,292 |
Dividends paid | (1,255,053) | (626,777) |
Lease financing costs | (50,790) | (29,040) |
Distributions to non-controlling interest | (365,644) | (387,696) |
Proceeds of issuance of common stock | 26,250 | 13,600 |
Cash (used in) financing activities | (2,684,675) | (1,961,477) |
Effect of exchange rate changes on cash | 62,341 | 59,406 |
Inflow (outflow) of cash | 1,501,614 | 1,608,895 |
Cash and term deposits, beginning | 7,707,824 | 6,815,099 |
Cash and cash equivalents, ending | 9,209,438 | 8,423,994 |
Cash and term deposits are comprised of: | ||
Cash | 6,843,825 | 7,413,753 |
Term deposits | $ 2,365,613 | $ 1,010,241 |
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, 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 | 1,959,221 | ||||||
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 | ||||||
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 Dec. 31, 2023 | $ 12,436 | 17,932,015 | 18,053,051 | (795,146) | 35,202,356 | 3,065,716 | 38,268,072 |
Balance, shares at Dec. 31, 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) | ||||
Distributions to noncontrolling interests | (387,696) | (387,696) | |||||
Non-controlling interest of 317 Mendota LLC | 200,000 | 200,000 | |||||
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 | ||||||
Balance at Dec. 31, 2023 | $ 12,436 | 17,932,015 | 18,053,051 | (795,146) | 35,202,356 | 3,065,716 | 38,268,072 |
Balance, shares at Dec. 31, 2023 | 12,435,532 | ||||||
Translation adjustment | 27,223 | 27,223 | 27,223 | ||||
Net income | 457,226 | 457,226 | 58,983 | 516,209 | |||
Common stock issued | $ 15 | 26,235 | 26,250 | 26,250 | |||
Common stock issued, shares | 15,000 | ||||||
Stock-based compensation | 253,357 | 253,357 | 253,357 | ||||
Balance at Mar. 31, 2024 | $ 12,451 | 18,211,607 | 18,510,277 | (767,923) | 35,966,412 | 3,124,699 | 39,091,111 |
Balance, shares at Mar. 31, 2024 | 12,450,532 | ||||||
Balance at Dec. 31, 2023 | $ 12,436 | 17,932,015 | 18,053,051 | (795,146) | 35,202,356 | 3,065,716 | 38,268,072 |
Balance, shares at Dec. 31, 2023 | 12,435,532 | ||||||
Net income | 1,948,642 | ||||||
Dividends paid | (1,255,053) | ||||||
Balance at Jun. 30, 2024 | $ 12,451 | 18,337,510 | 18,545,020 | (732,805) | 36,162,176 | 2,901,692 | 39,063,868 |
Balance, shares at Jun. 30, 2024 | 12,450,532 | ||||||
Balance at Mar. 31, 2024 | $ 12,451 | 18,211,607 | 18,510,277 | (767,923) | 35,966,412 | 3,124,699 | 39,091,111 |
Balance, shares at Mar. 31, 2024 | 12,450,532 | ||||||
Translation adjustment | 35,118 | 35,118 | 35,118 | ||||
Net income | 1,289,796 | 1,289,796 | 142,637 | 1,432,433 | |||
Stock-based compensation | 125,903 | 125,903 | 125,903 | ||||
Dividends paid | (1,255,053) | (1,255,053) | (1,255,053) | ||||
Distributions to noncontrolling interests | (365,644) | (365,644) | |||||
Balance at Jun. 30, 2024 | $ 12,451 | $ 18,337,510 | $ 18,545,020 | $ (732,805) | $ 36,162,176 | $ 2,901,692 | $ 39,063,868 |
Balance, shares at Jun. 30, 2024 | 12,450,532 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure [Table] | ||||
Net Income (Loss) | $ 1,289,796 | $ 809,865 | $ 1,747,022 | $ 1,694,234 |
Insider Trading Arrangements
Insider Trading Arrangements | 6 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual [Table] | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2024 | |
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 80 65 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 | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | 2. SIGNIFICANT ACCOUNTING POLICIES These consolidated financial statements have been prepared on a historical cost basis, except where otherwise noted, in accordance with accounting principles generally accepted in the United States applicable to a going concern and reflect the policies outlined below. In the opinion of management, the accompanying unaudited condensed interim consolidated financial statements contain all adjustments (all of which are of a normal recurring nature) and disclosures necessary for a fair presentation of the Company’s financial position as of June 30, 2024 and the results of its operations for the three and six months then ended. The consolidated balance sheet as of December 31, 2023 is derived from the December 31, 2023 audited financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S, GAAP have been condensed or omitted. These unaudited condensed interim consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Form 10-K/A for the year ended December 31, 2023. The results of operations for the period ended June 30, 2024 are not necessarily indicative of the operating results that may be expected for the full 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. As of June 30, 2024 and December 31, 2023, the Company did not have any cash equivalents. (b) Term Deposits The Company has four term deposits that are maintained by commercials banks. The first term deposit is for $ 303,954 and matures in February 2025. This deposit pays 1.3 % interest and if withdrawn before maturity, a penalty may be applied. The second term deposit is for $ 731,767 , matures in November 2024 and pays interest at a rate of 3.00 %. If withdrawn before maturity, the greater of the loss of accrued interest or $ 150 , plus 1% of the principal shall be levied. The third term deposit is for $ 1,019,197 and matures in November 2024. This deposit pays 3.85 % and if withdrawn before maturity, the greater of the loss of accrued interest or $ 150 , plus 1% of the principal shall be levied. The fourth term deposit is for $ 310,695 , matures in August 2024 and pays interest at a rate of 3.85 %. If withdrawn before maturity, a penalty may be applied. (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 or 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 (2024 - $ 288,826 286,290 509,167 542,321 (d) Allowance for expected credit losses The Company’s expected credit losses are determined through a review using historical credit loss experience; changes in asset specific characteristics, current conditions, and reasonable and supportable future forecasts, among other specific account data, and is performed at least quarterly. The Company develops and documents its methodology to determine its allowance for expected credit losses. Risk characteristics used by the Company may include customer mix, knowledge of customers and general economic conditions of the various local economics, among others. Specific account balances are written off when management determines the amounts to be uncollectible. Management has reviewed the balance reserved through the allowance for expected losses and believes it is reasonable. (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 Manufacturing equipment 20% Declining balance Office equipment 20% Declining balance Building and improvements 10% Declining balance Automobiles Straight-line over 5 years Technology Straight-line over 10 years Leasehold improvements Straight-line over lease term Customer relationships Straight-line over 15 years (f) Impairment of Long-Lived Assets In accordance with FASB Codification Topic 360, Property, Plant and Equipment (ASC 360), the Company reviews long-lived assets, including, but not limited to, property, equipment and leaseholds, patents and other assets, for impairment annually or whenever events or changes in circumstances indicate the carrying amounts of assets may not be recoverable. The carrying value of long-lived assets is assessed for impairment by evaluating operating performance and future undiscounted cash flows of the underlying assets. If the expected future cash flows of an asset is less than its carrying value, an impairment measurement is indicated. Impairment charges are recorded to the extent that an asset’s carrying value exceeds its fair value. Accordingly, actual results could vary significantly from such estimates. There were no impairment charges during the periods presented. (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 period. 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 15. 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 (ASC 718). Under the fair value recognition provisions of ASC 718, the Company recognizes share-based compensation expense, net of an estimated forfeiture rate, over the requisite service period of the award. 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 per share have been excluded from the calculation of diluted weighted average shares outstanding for the three and six months ended June 30, 2024 and 2023. (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 costing and recoverable value 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, 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 (ASC 740) under the liability method, it is the Company’s policy to provide for uncertain tax positions and the related interest and penalties based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. At June 30, 2024, the Company believes it has appropriately accounted for any unrecognized tax benefits. To the extent the Company prevails in matters for which a liability for an unrecognized benefit is established or is required to pay amounts in excess of the liability, the Company’s effective tax rate in a given financial statement period may be affected. Interest and penalties associated with the Company’s tax positions are recorded as interest expense in the consolidated statements of income and comprehensive income. (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 $ 9,843,563 ( 50 %) for the six months ended June 30, 2024 (2023 - $ 9,276,058 or 46 %) and $ 5,520,361 ( 52 %) for the three months ended June 30, 2024 (2023 - $ 5,172,025 or 50 %). Accounts receivable for the Company’s three primary customers for the six months ended June 30, 2024 totaled $ 4,443,400 or 49 % (2023 - $ 4,172,657 or 56 %). Accounts receivable for the Company’s three primary customers for the three months ended June 30, 2024 totaled $ 4,333,665 or 49 % (2023 - $ 4,172,657 or 56 %; December 31, 2023 - $ 6,561,164 or 67 %). 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 risk to the extent that market value rate fluctuations materially differ for financial assets and liabilities denominated in foreign currencies. In order to manage its exposure to foreign exchange risks, the Company closely monitors 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 subject to fixed long-term interest rates. In order to manage its exposure to interest rate risk, the Company closely monitors 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, (ASC 350), qualitative assessments of goodwill and indefinite-lived intangible assets were performed at December 31, 2023. Based on the results of the assessment, it was determined that it is more likely than not the reporting unit, customer lists and trademarks had a fair value in excess of their carrying amounts. Accordingly, no further impairment testing was completed and no impairment charges related to goodwill or indefinite-lived intangibles were recognized during the three or six months ended June 30, 2024. 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 | 6 Months Ended |
Jun. 30, 2024 | |
Leases | |
LEASES | 3. LEASES Leases are 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 In March 2024, the Company consolidated NanoChem operations into the Peril, IL locations and terminated the lease in Naperville, IL. The Company had to pay a penalty of $ 35,910 5,440 41,350 SUMMARY OF RIGHT-OF-USE ASSET AND LEASE LIABILITY Right of Use Assets Balance at December 31, 2022 $ 167,222 Depreciation (51,929 ) Balance at December 31, 2023 $ 115,293 Depreciation (13,694 ) Early termination of lease (101,599 ) Balance at June 30, 2024 $ - Lease Liability Balance at December 31, 2022 $ 167,222 Lease interest expense 6,151 Payments (58,080 ) Balance at December 31, 2023 $ 115,293 Lease interest expense 1,186 Payments (14,880 ) Early termination of lease (101,599 ) Balance at June 30, 2024 $ - |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | 4. ACCOUNTS RECEIVABLE SCHEDULE OF ACCOUNTS RECEIVABLE June 30, 2024 December 31, 2023 Accounts receivable $ 9,081,600 $ 10,133,249 Allowances for expected credit loss (288,904 ) (290,193 ) Total accounts receivable $ 8,792,696 $ 9,843,056 |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 5. INVENTORIES SCHEDULE OF INVENTORY June 30, 2024 December 31, 2023 Completed goods $ 2,754,018 $ 2,682,158 Raw materials and supplies 7,579,940 8,452,731 Total inventory $ 10,333,958 $ 11,134,889 |
PROPERTY, EQUIPMENT AND LEASEHO
PROPERTY, EQUIPMENT AND LEASEHOLDS | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, EQUIPMENT AND LEASEHOLDS | 6. PROPERTY, EQUIPMENT AND LEASEHOLDS SCHEDULE OF PROPERTY, EQUIPMENT AND LEASEHOLDS June 30, 2024 Accumulated June 30, 2024 Cost Depreciation Net Buildings and improvements $ 12,797,310 $ 4,208,582 $ 8,588,728 Automobiles 196,255 154,424 41,831 Office equipment 122,083 113,956 8,127 Manufacturing equipment 11,220,799 6,323,344 4,897,455 Land 440,592 — 440,592 Leasehold improvements 88,872 88,872 — Technology 99,808 99,808 — $ 24,965,719 $ 10,988,986 $ 13,976,733 December 31, 2023 Accumulated December 31, 2023 Cost Depreciation Net Buildings and improvements $ 12,341,605 $ 3,896,887 $ 8,444,718 Automobiles 196,255 140,040 56,215 Office equipment 177,623 165,048 12,575 Manufacturing equipment 10,017,466 5,799,779 4,217,687 Land 440,592 — 440,592 Leasehold improvements 88,872 88,872 — Technology 103,292 103,292 — $ 23,365,705 $ 10,193,918 $ 13,171,787 Amount of depreciation expense for six months ended June 30, 2024 was: $ 859,524 671,574 In January 2024, the Company lost power during a winter storm and some frozen pipes caused damage at two different locations. Insurance was in place and repairs are currently being made. The Company currently has $ 423,123 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | 7. GOODWILL AND INTANGIBLE ASSETS SCHEDULE OF GOODWILL AND INDEFINITE LIVED INTANGIBLE ASSETS Goodwill Balance as of December 31, 2023 and June 30, 2024 $ 2,534,275 Indefinite Lived Intangible Assets Balance as of December 31, 2023 and June 30, 2024 $ 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, 2022 1,670,000 Amortization (160,000 ) Balances as of December 31, 2023 $ 1,510,000 Amortization (80,000 ) Balances as of June 30, 2024 $ 1,430,000 The amount of amortization for three months ended June 30, 2024 was $ 80,000 80,000 Definite lived intangible assets consist of customer relationships and software related to the acquisition of ENP Investments. Estimated amortization expense over the next five years is as follows: SCHEDULE OF ESTIMATED FUTURE AMORTIZATION EXPENSE 2024 $ 160,000 2025 160,000 2026 160,000 2027 160,000 2028 160,000 |
LONG TERM DEPOSITS
LONG TERM DEPOSITS | 6 Months Ended |
Jun. 30, 2024 | |
Long Term Deposits | |
LONG TERM DEPOSITS | 8. LONG TERM DEPOSITS The Company has security deposits that are long term in nature which consist of damage deposits held by landlords and deposits held by various vendors for equipment purchases. SCHEDULE OF LONG TERM DEPOSITS June 30, 2024 December 31, 2023 Long term deposits $ 2,521,905 $ 824,254 |
INVESTMENTS
INVESTMENTS | 6 Months Ended |
Jun. 30, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS | 9. 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 to other entities in the Company. In June 2022, NanoChem acquired an additional 50 % ownership interest at a cost of $ 506,659 paid through a new cash payment was $ 247,659 259,000 . The 35 % non-controlling interest of the 8.33 8.33 It was determined that ENP Peru did not meet the definition of a business in accordance with FASB Codification Topic 805, Business Combinations (ASC 805), and the acquisition was accounted for as an asset acquisition. The following table summarizes the final purchase price allocation of the consideration paid to the respective fair values of the assets acquired and liabilities assumed in ENP Peru as of the acquisition date. The gain on acquisition of ENP Peru represents a gain on remeasurement of the Company’s equity method investment immediately prior to the acquisition date. 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, 2022 22,642 Return of equity (8,750 ) Gain in equity method investment 27,646 Investment eliminated upon consolidation (41,538 ) Balance, December 31, 2023 and June 30, 2024 $ - ( b ) In December 2018, the Company invested $ 200,000 December 2023 200,000 nil nil ( c ) 500,000 470,000 97,000 10.00 (d) 50 A summary of the Company’s investment follows: SCHEDULE OF EQUITY METHOD INVESTMENT Balance, December 31, 2022 $ 3,758,895 Gain in equity method investment 505,065 Return of equity (200,000 ) Balance, December 31, 2023 4,063,960 Gain in equity method investment 297,664 Return of equity (427,000 ) Balance, June 30, 2024 $ 3,934,624 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 Six months Six months Net sales $ 7,159,499 $ 8,231,298 Gross profit 2,044,578 2,435,858 Net income $ 595,329 $ 653,407 During the six months ended June 30, 2024, the Company had sales of $ 4,812,619 5,091,764 1,390,812 2,073,813 (e) 500,000 500,000 1,000,000 |
SHORT-TERM LINE OF CREDIT
SHORT-TERM LINE OF CREDIT | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
SHORT-TERM LINE OF CREDIT | 10. SHORT-TERM LINE OF CREDIT ( a ) In June 2024, ENP Investments renewed the line of credit with Stock Yards Bank and Trust (“Stock Yards”). The revolving line of credit is for an aggregate amount of up to the lesser of (i) $ 4,500,000 50 2,000,000 8.5 8.5 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 June 30, 2024 were $ nil 1,810,479 (b) 4,000,000 50 2,000,000 8.5 8.5 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 June 30, 2024, the Company was in compliance with all loan covenants. To secure 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 June 30, 2024 were $ 619,844 nil |
LONG TERM DEBT
LONG TERM DEBT | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
LONG TERM DEBT | 11. LONG TERM DEBT (a) 450,000 10 4.35 5 4.5 8,713 8,975 393,488 399,269 To secure repayment of any amounts borrowed under the mortgage, the Company granted Stock Yards a security interest in the real property under the mortgage and all rents on this property. (b) 1,935,000 4.90 three years 65 21,681 37,280 678,987 1,004,748 (c) 3,000,000 4.35 ten years 2,849,500 60,173 61,251 2,698,241 2,737,232 (d) 259,000 10 5.4 6,834 6,960 247,125 250,207 (e) 2,000,000 6.5 50,255 33,139 2,000,000 1,475,188 (f) 3,240,000 93,257 nil 2,248,292 2,248,292 As of June 30, 2024, Company was in compliance with all loan covenants. SCHEDULE OF LOAN COVENANTS Continuity June 30, 2024 December 31, 2023 Balance, January 1 $ 8,114,936 $ 6,154,077 Balance, beginning of period $ 8,114,936 $ 6,154,077 Plus: Proceeds from loans 524,812 2,686,682 Less: Payments on loan (373,615 ) (725,823 ) Balance, end of period $ 8,266,133 $ 8,114,936 SCHEDULE OF OUTSTANDING BALANCE LOAN Outstanding balance June 30, 2024 December 31, 2023 a) Long term debt – Stock Yards Bank & Trust $ 393,488 $ 399,269 b) Long term debt – Stock Yards Bank & Trust 678,987 1,004,748 c) Long term debt – Stock Yards Bank & Trust 2,698,241 2,737,232 d) Long term debt – Stock Yards Bank & Trust 247,125 250,207 e) Long term debt – Stock Yards Bank & Trust 2,000,000 1,475,188 f) Long term debt – Stock Yards Bank & Trust 2,248,292 2,248,292 Long-term debt 8,266,133 8,114,936 Less: current portion (2,163,602 ) (1,281,632 ) Long-term debt non current $ 6,102,531 $ 6,833,304 |
STOCK OPTIONS
STOCK OPTIONS | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK OPTIONS | 12. 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 5 The following table summarizes the Company’s stock option activities for the year ended December 31, 2023 and the six months ended June 30, 2024: SCHEDULE OF STOCK OPTION ACTIVITIES Number of shares Exercise price per share Weighted average exercise price Balance, December 31, 2022 1,686,000 $ 1.70 4.13 $ 3.26 Cancelled or expired (564,000 ) $ 3.46 4.13 $ 3.55 Exercised (8,000 ) $ 1.70 $ 1.70 Balance, December 31, 2023 1,114,000 $ 1.75 3.61 $ 3.13 Granted 950,000 $ 2.00 $ 2.00 Cancelled or expired (108,000 ) $ 1.75 3.61 $ 2.09 Exercised (15,000 ) $ 1.75 $ 1.75 Balance, June 30, 2024 1,941,000 $ 2.00 3.61 $ 2.65 Exercisable, June 30, 2024 810,000 $ 2.00 3.61 $ 2.86 The weighted-average remaining contractual life of outstanding options is 3.55 The fair value of each option grant is calculated using the following weighted average assumptions: SCHEDULE OF STOCK OPTION FAIR VALUE ASSUMPTIONS 2024 Expected life – years 3.0 Interest rate 3.893 4.22 % Volatility 59.72 60.35 % Weighted average fair value of options granted $ 0.71 0.79 During the six months ended June 30, 2024, the Company granted 56,000 nil 19,880 nil 894,000 nil 271,921 nil 87,459 43,730 15,000 nil 8,000 nil As of June 30, 2024, there was approximately $ 696,201 2.04 The aggregate intrinsic value of vested options outstanding at June 30, 2024 is $ nil nil 720 11,520 |
CAPITAL STOCK
CAPITAL STOCK | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
CAPITAL STOCK | 13. CAPITAL STOCK During the six months ended June 30, 2024, 15,000 8,000 In the six months ended June 30, 2024, the Company announced a special dividend of $ 0.10 1,255,053 During the six months ended June 30 2023, the Company issued 1,272 4,070 In the six months ended June 30, 2023, the Company announced a special dividend of $ 0.05 |
NON-CONTROLLING INTERESTS
NON-CONTROLLING INTERESTS | 6 Months Ended |
Jun. 30, 2024 | |
Noncontrolling Interest [Abstract] | |
NON-CONTROLLING INTERESTS | 14. 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 $ 3,591,601 SCHEDULE OF DISTRIBUTIONS Balance, December 31, 2022 $ 2,605,034 Distribution (719,439 ) Non-controlling interest share of income 1,015,604 Balance, December 31, 2023 2,901,199 Distribution (365,644) Non-controlling interest share of income 254,871 Balance, June 30, 2024 $ 2,790,426 During the six months ended June 30, 2024, the Company had sales of $ 2,426,145 2,203,761 350,907 4,225,028 b ) 80 20 SCHEDULE OF NON CONTROLLING INTEREST RELATED TO ACQUISITION Balance, December 31, 2022 $ - Acquisition 200,000 Non-controlling interest share of income (35,483 ) Balance, December 31, 2023 164,517 Non-controlling interest share of income (53,251 ) Balance, June 30, 2024 $ 111,266 |
SEGMENTED, SIGNIFICANT CUSTOMER
SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY | 15. 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 evaluates performance based on profit or loss from operations before income taxes, not including nonrecurring gains and losses and foreign exchange gains and losses 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 June 30, 2024: SCHEDULE OF REPORTABLE SEGMENTS EWCP TPA Total Revenue $ 167,496 $ 10,361,243 $ 10,528,739 Interest expense - 157,131 157,131 Depreciation and amortization 3,828 513,027 516,855 Income tax expense (23,040 ) 581,291 558,251 Segment profit (loss) (198,936 ) 1,488,732 1,289,796 Segment assets 3,366,670 52,978,226 56,344,896 Expenditures for segment assets - (1,186,346 ) (1,186,346 ) Three months ended June 30, 2023: EWCP TPA Total Revenue $ 220,602 $ 10,100,689 $ 10,331,291 Interest expense - 115,498 115,498 Depreciation and amortization 4,440 381,951 386,390 Income tax expense 11,657 342,715 354,372 Segment profit (loss) (41,262 ) 851,127 809,865 Segment assets 3,257,019 49,544,894 52,801,913 Expenditures for segment assets - (3,571,133 ) (3,571,133 ) Six months ended June 30, 2024: EWCP TPA Total Revenue $ 209,104 $ 19,544,507 $ 19,753,611 Interest expense - 332,397 332,397 Depreciation and amortization 7,711 931,813 939,524 Income tax expense 11,900 810,529 822,429 Segment profit (loss) (180,396 ) 1,927,417 1,747,021 Segment assets 3,366,670 52,978,226 56,344,896 Expenditures for segment assets - (1,663,696 ) (1,663,696 ) Six months ended June 30, 2023: EWCP TPA Total Revenue $ 301,262 $ 19,877,546 $ 20,178,808 Interest expense - 250,368 250,368 Depreciation and amortization 8,719 742,855 751,574 Income tax expense 12,571 641,578 654,149 Segment profit (loss) (192,990 ) 1,887,224 1,694,234 Segment assets 3,257,019 49,544,894 52,801,913 Expenditures for segment assets - (3,784,193 ) (3,784,193 ) Sales by territory are shown below: SCHEDULE OF REVENUE GENERATED IN UNITED STATES AND CANADA Six months ended Six months ended Canada $ 223,083 $ 313,058 United States and abroad 19,530,528 19,865,750 Total $ 19,753,611 $ 20,178,808 The Company’s long-lived assets (property, equipment, leaseholds, right of use assets, intangibles, and goodwill) are located in Canada and the United States as follows: SCHEDULE OF LONG-LIVED ASSETS ARE LOCATED IN CANADA AND UNITED STATE June 30, 2024 December 31, 2023 Canada $ 130,116 $ 142,577 United States 18,580,892 17,958,778 Total $ 18,711,008 $ 18,101,355 Three primary customers accounted for $ 9,843,563 50 9,276,058 46 |
COMPARATIVE FIGURES
COMPARATIVE FIGURES | 6 Months Ended |
Jun. 30, 2024 | |
Comparative Figures | |
COMPARATIVE FIGURES | 16. COMPARATIVE FIGURES . Certain of the comparative figures have been reclassified to conform with the current period’s presentation. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 17. SUBSEQUENT EVENTS The Company granted 50,000 On August 9, 2024, the Company sold its position in the Florida LLC and has received proceeds of $ 2,000,000 800,000 6,000,000 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
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. As of June 30, 2024 and December 31, 2023, the Company did not have any cash equivalents. |
Term Deposits | (b) Term Deposits The Company has four term deposits that are maintained by commercials banks. The first term deposit is for $ 303,954 and matures in February 2025. This deposit pays 1.3 % interest and if withdrawn before maturity, a penalty may be applied. The second term deposit is for $ 731,767 , matures in November 2024 and pays interest at a rate of 3.00 %. If withdrawn before maturity, the greater of the loss of accrued interest or $ 150 , plus 1% of the principal shall be levied. The third term deposit is for $ 1,019,197 and matures in November 2024. This deposit pays 3.85 % and if withdrawn before maturity, the greater of the loss of accrued interest or $ 150 , plus 1% of the principal shall be levied. The fourth term deposit is for $ 310,695 , matures in August 2024 and pays interest at a rate of 3.85 %. If withdrawn before maturity, a penalty may be applied. |
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 or 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 (2024 - $ 288,826 286,290 509,167 542,321 |
Allowance for expected credit losses | (d) Allowance for expected credit losses The Company’s expected credit losses are determined through a review using historical credit loss experience; changes in asset specific characteristics, current conditions, and reasonable and supportable future forecasts, among other specific account data, and is performed at least quarterly. The Company develops and documents its methodology to determine its allowance for expected credit losses. Risk characteristics used by the Company may include customer mix, knowledge of customers and general economic conditions of the various local economics, among others. Specific account balances are written off when management determines the amounts to be uncollectible. Management has reviewed the balance reserved through the allowance for expected losses and believes it is reasonable. |
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 Manufacturing equipment 20% Declining balance Office equipment 20% Declining balance Building and improvements 10% Declining balance Automobiles Straight-line over 5 years Technology Straight-line over 10 years Leasehold improvements Straight-line over lease term Customer relationships Straight-line over 15 years |
Impairment of Long-Lived Assets | (f) Impairment of Long-Lived Assets In accordance with FASB Codification Topic 360, Property, Plant and Equipment (ASC 360), the Company reviews long-lived assets, including, but not limited to, property, equipment and leaseholds, patents and other assets, for impairment annually or whenever events or changes in circumstances indicate the carrying amounts of assets may not be recoverable. The carrying value of long-lived assets is assessed for impairment by evaluating operating performance and future undiscounted cash flows of the underlying assets. If the expected future cash flows of an asset is less than its carrying value, an impairment measurement is indicated. Impairment charges are recorded to the extent that an asset’s carrying value exceeds its fair value. Accordingly, actual results could vary significantly from such estimates. There were no impairment charges during the periods presented. |
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 period. 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 15. 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 (ASC 718). Under the fair value recognition provisions of ASC 718, the Company recognizes share-based compensation expense, net of an estimated forfeiture rate, over the requisite service period of the award. 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 per share have been excluded from the calculation of diluted weighted average shares outstanding for the three and six months ended June 30, 2024 and 2023. |
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 costing and recoverable value 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, 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 (ASC 740) under the liability method, it is the Company’s policy to provide for uncertain tax positions and the related interest and penalties based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. At June 30, 2024, the Company believes it has appropriately accounted for any unrecognized tax benefits. To the extent the Company prevails in matters for which a liability for an unrecognized benefit is established or is required to pay amounts in excess of the liability, the Company’s effective tax rate in a given financial statement period may be affected. Interest and penalties associated with the Company’s tax positions are recorded as interest expense in the consolidated statements of income and comprehensive income. |
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 $ 9,843,563 ( 50 %) for the six months ended June 30, 2024 (2023 - $ 9,276,058 or 46 %) and $ 5,520,361 ( 52 %) for the three months ended June 30, 2024 (2023 - $ 5,172,025 or 50 %). Accounts receivable for the Company’s three primary customers for the six months ended June 30, 2024 totaled $ 4,443,400 or 49 % (2023 - $ 4,172,657 or 56 %). Accounts receivable for the Company’s three primary customers for the three months ended June 30, 2024 totaled $ 4,333,665 or 49 % (2023 - $ 4,172,657 or 56 %; December 31, 2023 - $ 6,561,164 or 67 %). 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 risk to the extent that market value rate fluctuations materially differ for financial assets and liabilities denominated in foreign currencies. In order to manage its exposure to foreign exchange risks, the Company closely monitors 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 subject to fixed long-term interest rates. In order to manage its exposure to interest rate risk, the Company closely monitors 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, (ASC 350), qualitative assessments of goodwill and indefinite-lived intangible assets were performed at December 31, 2023. Based on the results of the assessment, it was determined that it is more likely than not the reporting unit, customer lists and trademarks had a fair value in excess of their carrying amounts. Accordingly, no further impairment testing was completed and no impairment charges related to goodwill or indefinite-lived intangibles were recognized during the three or six months ended June 30, 2024. 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) | 6 Months Ended |
Jun. 30, 2024 | |
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 Manufacturing equipment 20% Declining balance Office equipment 20% Declining balance Building and improvements 10% Declining balance Automobiles Straight-line over 5 years Technology Straight-line over 10 years Leasehold improvements Straight-line over lease term Customer relationships Straight-line over 15 years |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases | |
SUMMARY OF RIGHT-OF-USE ASSET AND LEASE LIABILITY | In March 2024, the Company consolidated NanoChem operations into the Peril, IL locations and terminated the lease in Naperville, IL. The Company had to pay a penalty of $ 35,910 5,440 41,350 SUMMARY OF RIGHT-OF-USE ASSET AND LEASE LIABILITY Right of Use Assets Balance at December 31, 2022 $ 167,222 Depreciation (51,929 ) Balance at December 31, 2023 $ 115,293 Depreciation (13,694 ) Early termination of lease (101,599 ) Balance at June 30, 2024 $ - Lease Liability Balance at December 31, 2022 $ 167,222 Lease interest expense 6,151 Payments (58,080 ) Balance at December 31, 2023 $ 115,293 Lease interest expense 1,186 Payments (14,880 ) Early termination of lease (101,599 ) Balance at June 30, 2024 $ - |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
SCHEDULE OF ACCOUNTS RECEIVABLE | SCHEDULE OF ACCOUNTS RECEIVABLE June 30, 2024 December 31, 2023 Accounts receivable $ 9,081,600 $ 10,133,249 Allowances for expected credit loss (288,904 ) (290,193 ) Total accounts receivable $ 8,792,696 $ 9,843,056 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORY | SCHEDULE OF INVENTORY June 30, 2024 December 31, 2023 Completed goods $ 2,754,018 $ 2,682,158 Raw materials and supplies 7,579,940 8,452,731 Total inventory $ 10,333,958 $ 11,134,889 |
PROPERTY, EQUIPMENT AND LEASE_2
PROPERTY, EQUIPMENT AND LEASEHOLDS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY, EQUIPMENT AND LEASEHOLDS | SCHEDULE OF PROPERTY, EQUIPMENT AND LEASEHOLDS June 30, 2024 Accumulated June 30, 2024 Cost Depreciation Net Buildings and improvements $ 12,797,310 $ 4,208,582 $ 8,588,728 Automobiles 196,255 154,424 41,831 Office equipment 122,083 113,956 8,127 Manufacturing equipment 11,220,799 6,323,344 4,897,455 Land 440,592 — 440,592 Leasehold improvements 88,872 88,872 — Technology 99,808 99,808 — $ 24,965,719 $ 10,988,986 $ 13,976,733 December 31, 2023 Accumulated December 31, 2023 Cost Depreciation Net Buildings and improvements $ 12,341,605 $ 3,896,887 $ 8,444,718 Automobiles 196,255 140,040 56,215 Office equipment 177,623 165,048 12,575 Manufacturing equipment 10,017,466 5,799,779 4,217,687 Land 440,592 — 440,592 Leasehold improvements 88,872 88,872 — Technology 103,292 103,292 — $ 23,365,705 $ 10,193,918 $ 13,171,787 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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, 2023 and June 30, 2024 $ 2,534,275 Indefinite Lived Intangible Assets Balance as of December 31, 2023 and June 30, 2024 $ 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, 2022 1,670,000 Amortization (160,000 ) Balances as of December 31, 2023 $ 1,510,000 Amortization (80,000 ) Balances as of June 30, 2024 $ 1,430,000 |
SCHEDULE OF ESTIMATED FUTURE AMORTIZATION EXPENSE | Estimated amortization expense over the next five years is as follows: SCHEDULE OF ESTIMATED FUTURE AMORTIZATION EXPENSE 2024 $ 160,000 2025 160,000 2026 160,000 2027 160,000 2028 160,000 |
LONG TERM DEPOSITS (Tables)
LONG TERM DEPOSITS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Long Term Deposits | |
SCHEDULE OF LONG TERM DEPOSITS | The Company has security deposits that are long term in nature which consist of damage deposits held by landlords and deposits held by various vendors for equipment purchases. SCHEDULE OF LONG TERM DEPOSITS June 30, 2024 December 31, 2023 Long term deposits $ 2,521,905 $ 824,254 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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, 2022 22,642 Return of equity (8,750 ) Gain in equity method investment 27,646 Investment eliminated upon consolidation (41,538 ) Balance, December 31, 2023 and June 30, 2024 $ - |
Florida Based LLC [Member] | |
SCHEDULE OF EQUITY METHOD INVESTMENT | SCHEDULE OF EQUITY METHOD INVESTMENT Balance, December 31, 2022 $ 3,758,895 Gain in equity method investment 505,065 Return of equity (200,000 ) Balance, December 31, 2023 4,063,960 Gain in equity method investment 297,664 Return of equity (427,000 ) Balance, June 30, 2024 $ 3,934,624 |
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 Six months Six months Net sales $ 7,159,499 $ 8,231,298 Gross profit 2,044,578 2,435,858 Net income $ 595,329 $ 653,407 |
LONG TERM DEBT (Tables)
LONG TERM DEBT (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF LOAN COVENANTS | As of June 30, 2024, Company was in compliance with all loan covenants. SCHEDULE OF LOAN COVENANTS Continuity June 30, 2024 December 31, 2023 Balance, January 1 $ 8,114,936 $ 6,154,077 Balance, beginning of period $ 8,114,936 $ 6,154,077 Plus: Proceeds from loans 524,812 2,686,682 Less: Payments on loan (373,615 ) (725,823 ) Balance, end of period $ 8,266,133 $ 8,114,936 |
SCHEDULE OF OUTSTANDING BALANCE LOAN | SCHEDULE OF OUTSTANDING BALANCE LOAN Outstanding balance June 30, 2024 December 31, 2023 a) Long term debt – Stock Yards Bank & Trust $ 393,488 $ 399,269 b) Long term debt – Stock Yards Bank & Trust 678,987 1,004,748 c) Long term debt – Stock Yards Bank & Trust 2,698,241 2,737,232 d) Long term debt – Stock Yards Bank & Trust 247,125 250,207 e) Long term debt – Stock Yards Bank & Trust 2,000,000 1,475,188 f) Long term debt – Stock Yards Bank & Trust 2,248,292 2,248,292 Long-term debt 8,266,133 8,114,936 Less: current portion (2,163,602 ) (1,281,632 ) Long-term debt non current $ 6,102,531 $ 6,833,304 |
STOCK OPTIONS (Tables)
STOCK OPTIONS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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, 2023 and the six months ended June 30, 2024: SCHEDULE OF STOCK OPTION ACTIVITIES Number of shares Exercise price per share Weighted average exercise price Balance, December 31, 2022 1,686,000 $ 1.70 4.13 $ 3.26 Cancelled or expired (564,000 ) $ 3.46 4.13 $ 3.55 Exercised (8,000 ) $ 1.70 $ 1.70 Balance, December 31, 2023 1,114,000 $ 1.75 3.61 $ 3.13 Granted 950,000 $ 2.00 $ 2.00 Cancelled or expired (108,000 ) $ 1.75 3.61 $ 2.09 Exercised (15,000 ) $ 1.75 $ 1.75 Balance, June 30, 2024 1,941,000 $ 2.00 3.61 $ 2.65 Exercisable, June 30, 2024 810,000 $ 2.00 3.61 $ 2.86 |
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 2024 Expected life – years 3.0 Interest rate 3.893 4.22 % Volatility 59.72 60.35 % Weighted average fair value of options granted $ 0.71 0.79 |
NON-CONTROLLING INTERESTS (Tabl
NON-CONTROLLING INTERESTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Noncontrolling Interest [Abstract] | |
SCHEDULE OF DISTRIBUTIONS | SCHEDULE OF DISTRIBUTIONS Balance, December 31, 2022 $ 2,605,034 Distribution (719,439 ) Non-controlling interest share of income 1,015,604 Balance, December 31, 2023 2,901,199 Distribution (365,644) Non-controlling interest share of income 254,871 Balance, June 30, 2024 $ 2,790,426 |
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 income (35,483 ) Balance, December 31, 2023 164,517 Non-controlling interest share of income (53,251 ) Balance, June 30, 2024 $ 111,266 |
SEGMENTED, SIGNIFICANT CUSTOM_2
SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
SCHEDULE OF REPORTABLE SEGMENTS | SCHEDULE OF REPORTABLE SEGMENTS EWCP TPA Total Revenue $ 167,496 $ 10,361,243 $ 10,528,739 Interest expense - 157,131 157,131 Depreciation and amortization 3,828 513,027 516,855 Income tax expense (23,040 ) 581,291 558,251 Segment profit (loss) (198,936 ) 1,488,732 1,289,796 Segment assets 3,366,670 52,978,226 56,344,896 Expenditures for segment assets - (1,186,346 ) (1,186,346 ) Three months ended June 30, 2023: EWCP TPA Total Revenue $ 220,602 $ 10,100,689 $ 10,331,291 Interest expense - 115,498 115,498 Depreciation and amortization 4,440 381,951 386,390 Income tax expense 11,657 342,715 354,372 Segment profit (loss) (41,262 ) 851,127 809,865 Segment assets 3,257,019 49,544,894 52,801,913 Expenditures for segment assets - (3,571,133 ) (3,571,133 ) Six months ended June 30, 2024: EWCP TPA Total Revenue $ 209,104 $ 19,544,507 $ 19,753,611 Interest expense - 332,397 332,397 Depreciation and amortization 7,711 931,813 939,524 Income tax expense 11,900 810,529 822,429 Segment profit (loss) (180,396 ) 1,927,417 1,747,021 Segment assets 3,366,670 52,978,226 56,344,896 Expenditures for segment assets - (1,663,696 ) (1,663,696 ) Six months ended June 30, 2023: EWCP TPA Total Revenue $ 301,262 $ 19,877,546 $ 20,178,808 Interest expense - 250,368 250,368 Depreciation and amortization 8,719 742,855 751,574 Income tax expense 12,571 641,578 654,149 Segment profit (loss) (192,990 ) 1,887,224 1,694,234 Segment assets 3,257,019 49,544,894 52,801,913 Expenditures for segment assets - (3,784,193 ) (3,784,193 ) |
SCHEDULE OF REVENUE GENERATED IN UNITED STATES AND CANADA | Sales by territory are shown below: SCHEDULE OF REVENUE GENERATED IN UNITED STATES AND CANADA Six months ended Six months ended Canada $ 223,083 $ 313,058 United States and abroad 19,530,528 19,865,750 Total $ 19,753,611 $ 20,178,808 |
SCHEDULE OF LONG-LIVED ASSETS ARE LOCATED IN CANADA AND UNITED STATE | The Company’s long-lived assets (property, equipment, leaseholds, right of use assets, intangibles, and goodwill) are located in Canada and the United States as follows: SCHEDULE OF LONG-LIVED ASSETS ARE LOCATED IN CANADA AND UNITED STATE June 30, 2024 December 31, 2023 Canada $ 130,116 $ 142,577 United States 18,580,892 17,958,778 Total $ 18,711,008 $ 18,101,355 |
BASIS OF PRESENTATION (Details
BASIS OF PRESENTATION (Details Narrative) | 6 Months Ended |
Jun. 30, 2024 | |
317 Mendota LLC [Member] | |
Subsidiary company ownership interest rate | 80% |
ENP Investments LLC and ENP Mendota [Member] | |
Subsidiary company ownership interest rate | 65% |
SCHEDULE OF METHOD OF DEPRECIAT
SCHEDULE OF METHOD OF DEPRECIATION (Details) | 6 Months Ended |
Jun. 30, 2024 | |
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 |
Building and Building Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation method used and annual rate | 10% Declining balance |
Automobiles [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation method used and annual rate | Straight-line over 5 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 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Product Information [Line Items] | |||||
Sales | $ 10,528,739 | $ 10,331,291 | $ 19,753,611 | $ 20,178,808 | |
Cost of sales | 6,589,644 | 7,292,438 | $ 12,994,149 | 14,054,963 | |
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] | Revenue from Contract with Customer Benchmark [Member] | |||||
Product Information [Line Items] | |||||
Sales | $ 5,520,361 | $ 5,172,025 | $ 9,843,563 | $ 9,276,058 | |
Concentration risk threshold percentage | 52% | 50% | 50% | 46% | |
Three Primary Customers [Member] | Accounts Receivable [Member] | |||||
Product Information [Line Items] | |||||
Sales | $ 4,333,665 | $ 4,172,657 | $ 4,443,400 | $ 4,172,657 | $ 6,561,164 |
Concentration risk threshold percentage | 49% | 56% | 49% | 56% | 67% |
Shipping and Handling [Member] | |||||
Product Information [Line Items] | |||||
Sales | $ 288,826 | $ 286,290 | |||
Cost of sales | 509,167 | $ 542,321 | |||
First Term [Member] | |||||
Product Information [Line Items] | |||||
Deposits | $ 303,954 | $ 303,954 | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.30% | 1.30% | |||
Second Term [Member] | |||||
Product Information [Line Items] | |||||
Deposits | $ 731,767 | $ 731,767 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3% | 3% | |||
Minimum interest penalty | $ 150 | $ 150 | |||
Third Term [Member] | |||||
Product Information [Line Items] | |||||
Deposits | $ 1,019,197 | $ 1,019,197 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.85% | 3.85% | |||
Minimum interest penalty | $ 150 | $ 150 | |||
Fourth Term [Member] | |||||
Product Information [Line Items] | |||||
Deposits | $ 310,695 | $ 310,695 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.85% | 3.85% |
SUMMARY OF RIGHT-OF-USE ASSET A
SUMMARY OF RIGHT-OF-USE ASSET AND LEASE LIABILITY (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Leases | ||
Right of use assets, beginning balance | $ 115,293 | $ 167,222 |
Depreciation | (13,694) | (51,929) |
Right of use assets, early termination of lease | (101,599) | |
Right of use assets, ending balance | 115,293 | |
Lease liability, beginning balance | 115,293 | 167,222 |
Lease interest expense | 1,186 | 6,151 |
Payments | (14,880) | (58,080) |
Lease liability, early termination of lease | (101,599) | |
Lease liability, ending balance | $ 115,293 |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Leases | ||
Operating leases discount rate | 5.50% | |
Payment of penalty | $ 35,910 | |
Security deposit | 5,440 | |
Loss on terminating lease | $ 41,350 |
SCHEDULE OF ACCOUNTS RECEIVABLE
SCHEDULE OF ACCOUNTS RECEIVABLE (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Receivables [Abstract] | ||
Accounts receivable | $ 9,081,600 | $ 10,133,249 |
Allowances for expected credit loss | (288,904) | (290,193) |
Total accounts receivable | $ 8,792,696 | $ 9,843,056 |
SCHEDULE OF INVENTORY (Details)
SCHEDULE OF INVENTORY (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Completed goods | $ 2,754,018 | $ 2,682,158 |
Raw materials and supplies | 7,579,940 | 8,452,731 |
Total inventory | $ 10,333,958 | $ 11,134,889 |
SCHEDULE OF PROPERTY, EQUIPMENT
SCHEDULE OF PROPERTY, EQUIPMENT AND LEASEHOLDS (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Cost | $ 24,965,719 | $ 23,365,705 |
Accumulated Depreciation | 10,988,986 | 10,193,918 |
Property, plant and equipment, net, total | 13,976,733 | 13,171,787 |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 12,797,310 | 12,341,605 |
Accumulated Depreciation | 4,208,582 | 3,896,887 |
Property, plant and equipment, net, total | 8,588,728 | 8,444,718 |
Automobiles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 196,255 | 196,255 |
Accumulated Depreciation | 154,424 | 140,040 |
Property, plant and equipment, net, total | 41,831 | 56,215 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 122,083 | 177,623 |
Accumulated Depreciation | 113,956 | 165,048 |
Property, plant and equipment, net, total | 8,127 | 12,575 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 11,220,799 | 10,017,466 |
Accumulated Depreciation | 6,323,344 | 5,799,779 |
Property, plant and equipment, net, total | 4,897,455 | 4,217,687 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 440,592 | 440,592 |
Accumulated Depreciation | ||
Property, plant and equipment, net, total | 440,592 | 440,592 |
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 | ||
Developed Technology Rights [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 99,808 | 103,292 |
Accumulated Depreciation | 99,808 | 103,292 |
Property, plant and equipment, net, total |
PROPERTY, EQUIPMENT AND LEASE_3
PROPERTY, EQUIPMENT AND LEASEHOLDS (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 859,524 | $ 671,574 |
Accrued liability for funds received | $ 423,123 |
SCHEDULE OF GOODWILL AND INDEFI
SCHEDULE OF GOODWILL AND INDEFINITE LIVED INTANGIBLE ASSETS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Dec. 31, 2023 | |
Goodwill | $ 2,534,275 | $ 2,534,275 | $ 2,534,275 | |
Indefinite lived intangible assets | 770,000 | 770,000 | 770,000 | |
Amortization | (80,000) | $ (80,000) | ||
ENP Investments Limited Liability Corporation (LLC) [Member] | ||||
Definite lived intangible assets, beginning balance | 1,510,000 | 1,670,000 | ||
Amortization | (80,000) | (160,000) | ||
Definite lived intangible assets, ending balance | $ 1,430,000 | $ 1,430,000 | $ 1,510,000 |
SCHEDULE OF ESTIMATED FUTURE AM
SCHEDULE OF ESTIMATED FUTURE AMORTIZATION EXPENSE (Details) - Finite-Lived Intangible Assets [Member] | Jun. 30, 2024 USD ($) |
Impairment Effects on Earnings Per Share [Line Items] | |
2024 | $ 160,000 |
2025 | 160,000 |
2026 | 160,000 |
2027 | 160,000 |
2028 | $ 160,000 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS (Details Narrative) - USD ($) | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization | $ 80,000 | $ 80,000 |
SCHEDULE OF LONG TERM DEPOSITS
SCHEDULE OF LONG TERM DEPOSITS (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Long Term Deposits | ||
Long term deposits | $ 2,521,905 | $ 824,254 |
SCHEDULE OF FAIR VALUES OF THE
SCHEDULE OF FAIR VALUES OF THE ASSETS ACQUIRED AND LIABILITIES ASSUMED (Details) | 6 Months Ended |
Jun. 30, 2024 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 ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Balance, Beginning | $ 6,033,960 | |
Investment eliminated upon consolidation | (41,538) | |
Balance, Ending | 5,904,624 | $ 6,033,960 |
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 | 4,063,960 | 3,758,895 |
Return of equity | (427,000) | (200,000) |
Gain in equity method investment | 297,664 | 505,065 |
Balance, Ending | $ 3,934,624 | $ 4,063,960 |
SUMMARY OF PROFIT AND LOSS INFO
SUMMARY OF PROFIT AND LOSS INFORMATION RELATED TO EQUITY ACCOUNTED INVESTMENT (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | ||
Net sales | $ 7,159,499 | $ 8,231,298 |
Gross profit | 2,044,578 | 2,435,858 |
Net income | $ 595,329 | $ 653,407 |
INVESTMENTS (Details Narrative)
INVESTMENTS (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2022 | Dec. 31, 2020 | Dec. 31, 2018 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2021 | Dec. 31, 2023 | Oct. 31, 2023 | Apr. 30, 2023 | Jan. 31, 2019 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||||||||||
Business Combination, Consideration Transferred | $ 506,659 | ||||||||||
Cash | 6,843,825 | $ 5,017,583 | |||||||||
Investment | $ 200,000 | ||||||||||
Debt maturity | 2023-12 | ||||||||||
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 | $ 500,000 | $ 470,000 | |||||||||
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 | 4,812,619 | $ 5,091,764 | |||||||||
Accounts receivable related parties | $ 1,390,812 | $ 2,073,813 | |||||||||
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] | |||||||||||
Business Combination, Consideration Transferred | $ 506,659 | ||||||||||
Cash | 247,659 | ||||||||||
Mortgage | $ 259,000 | ||||||||||
ENP Investments LLC [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Subsidiary, Ownership Percentage, Noncontrolling Owner | 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% | ||||||||||
ENP Investments LLC [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Ownership percentage | 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, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Line of Credit Facility [Line Items] | |||
Line of credit | $ 619,844 | $ 1,810,479 | |
Stock Yard And Bank One [Member] | Noncontrolling Interest [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 | $ 1,810,479 | ||
Stock Yard And Bank One [Member] | Midland States Bank [Member] | New Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Aggregate amount of revolving line of credit | $ 4,500,000 | ||
Percentage of domestic accounts receivable of inventory | 50% | ||
Debt face amount | $ 2,000,000 | ||
Interest rate | 8.50% | 8.50% | |
Stock Bank [Member] | New Agreement [Member] | NanoChem Solutions Inc [Member] | Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Short term borrowings | $ 619,844 | ||
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 | ||
Debt face amount | $ 2,000,000 | ||
Interest rate | 8.50% | 8.50% | |
Eligible percentage of domestic accounts receivable | 50% |
SCHEDULE OF LOAN COVENANTS (Det
SCHEDULE OF LOAN COVENANTS (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Debt Disclosure [Abstract] | ||
Balance, beginning of period | $ 8,114,936 | $ 6,154,077 |
Plus: Proceeds from loans | 524,812 | 2,686,682 |
Less: Payments on loan | (373,615) | (725,823) |
Balance, end of period | $ 8,266,133 | $ 8,114,936 |
SCHEDULE OF OUTSTANDING BALANCE
SCHEDULE OF OUTSTANDING BALANCE LOAN (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | |||
Long-term debt | $ 8,266,133 | $ 8,114,936 | $ 6,154,077 |
Less: current portion | (2,163,602) | (1,281,632) | |
Long-term debt non current | 6,102,531 | 6,833,304 | |
Stock Yards Bank and Trust [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Long-term debt | 393,488 | 399,269 | |
Stock Yards Bank and Trust One [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Long-term debt | 678,987 | 1,004,748 | |
Stock Yards Bank and Trust Two [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Long-term debt | 2,698,241 | 2,737,232 | |
Stock Yards Bank and Trust Three [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Long-term debt | 247,125 | 250,207 | |
Stock Yards Bank and Trust Four [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Long-term debt | 2,000,000 | 1,475,188 | |
Stock Yards Bank and Trust Five [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Long-term debt | $ 2,248,292 | $ 2,248,292 |
LONG TERM DEBT (Details Narrati
LONG TERM DEBT (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Jan. 31, 2020 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Stock Yards Bank and Trust [Member] | ENP Realty LLC [Member] | ||||||
Short-Term Debt [Line Items] | ||||||
Debt instrument term | 3 years | 10 years | ||||
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 | |||||
Debt instrument interest rate stated percentage | 6.50% | |||||
Interest expense debt | $ 50,255 | $ 33,139 | ||||
Debt Long term debt amount | 2,000,000 | $ 1,475,188 | ||||
Term Loan [Member] | Mendota [Member] | ||||||
Short-Term Debt [Line Items] | ||||||
Debt instrument face amount | 3,240,000 | |||||
Interest expense debt | 93,257 | |||||
Debt Long term debt amount | 2,248,292 | 2,248,292 | ||||
Term Loan [Member] | Midland Bank [Member] | ENP Mendota, LLC [Member] | ||||||
Short-Term Debt [Line Items] | ||||||
Debt instrument face amount | $ 450,000 | |||||
Debt instrument term | 5 years | |||||
Debt instrument interest rate stated percentage | 4.50% | |||||
Interest expense debt | 8,713 | 8,975 | ||||
Debt Long term debt amount | 393,488 | 399,269 | ||||
Term Loan [Member] | Midland Bank [Member] | Nano Chem [Member] | ||||||
Short-Term Debt [Line Items] | ||||||
Debt instrument face amount | $ 1,935,000 | |||||
Debt instrument interest rate stated percentage | 4.90% | |||||
Interest expense debt | 21,681 | 37,280 | ||||
Debt Long term debt amount | 678,987 | 1,004,748 | ||||
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 | |||||
Debt instrument interest rate stated percentage | 5.40% | |||||
Interest expense debt | 6,834 | 6,960 | ||||
Debt Long term debt amount | 247,125 | 250,207 | ||||
Purchase of fund interest rate percentage | 65% | |||||
Term Loan [Member] | Midland Bank [Member] | ENP Peru One [Member] | ||||||
Short-Term Debt [Line Items] | ||||||
Debt instrument face amount | $ 3,000,000 | |||||
Debt instrument term | 10 years | |||||
Debt instrument interest rate stated percentage | 4.35% | |||||
Debt Long term debt amount | 2,698,241 | $ 2,737,232 | ||||
First mortgage | $ 2,849,500 | |||||
Interest expense | $ 60,173 | $ 61,251 |
SCHEDULE OF STOCK OPTION ACTIVI
SCHEDULE OF STOCK OPTION ACTIVITIES (Details) - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Number of shares, Beginning Balance | 1,114,000 | 1,686,000 |
Weighted average exercise price, Beginning Balance | $ 3.13 | $ 3.26 |
Number of shares, Cancelled or expired | (108,000) | (564,000) |
Weighted average exercise price, Cancelled or expired | $ 2.09 | $ 3.55 |
Number of shares, Exercised | (15,000) | (8,000) |
Exercise price per share, Exercised | $ 1.75 | $ 1.70 |
Weighted average exercise price, Exercised | $ 1.75 | $ 1.70 |
Number of shares, Granted | 950,000 | |
Exercise price per share, Granted | $ 2 | |
Weighted average exercise price, Granted | $ 2 | |
Number of shares, Ending Balance | 1,941,000 | 1,114,000 |
Weighted average exercise price, Ending Balance | $ 2.65 | $ 3.13 |
Number of shares Exercisable, Ending Balance | 810,000 | |
Weighted average exercise price, Exercisable, Ending Balance | $ 2.86 | |
Minimum [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Exercise price per share, Beginning Balance | 1.75 | 1.70 |
Exercise price per share, Cancelled or expired | 1.75 | 3.46 |
Exercise price per share, Ending Balance | 2 | 1.75 |
Exercise price per share Exercisable, Ending Balance | 2 | |
Maximum [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Exercise price per share, Beginning Balance | 3.61 | 4.13 |
Exercise price per share, Cancelled or expired | 3.61 | 4.13 |
Exercise price per share, Ending Balance | 3.61 | $ 3.61 |
Exercise price per share Exercisable, Ending Balance | $ 3.61 |
SCHEDULE OF STOCK OPTION FAIR V
SCHEDULE OF STOCK OPTION FAIR VALUE ASSUMPTIONS (Details) | 6 Months Ended |
Jun. 30, 2024 $ / 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 | 3.893% |
Volatility | 59.72% |
Weighted average fair value of options granted | $ 0.71 |
Maximum [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Interest rate | 4.22% |
Volatility | 60.35% |
Weighted average fair value of options granted | $ 0.79 |
STOCK OPTIONS (Details Narrativ
STOCK OPTIONS (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Options granted percentage | 100% | ||
Vested term | 5 years | ||
Options maximum granted term | 5 years | ||
Weighted-average remaining contractual life | 3 years 6 months 18 days | ||
Stock options granted | 950,000 | ||
Stock options exercised | 15,000 | 8,000 | |
Stock vested compensation non vested | $ 696,201 | ||
Weighted average period expected to be recognized | 2 years 14 days | ||
Canada Revenue Agency [Member] | |||
Aggregate intrinsic value of vested options | |||
Aggregate intrinsic value of vested options exercised | $ 720 | $ 11,520 | |
Consultants [Member] | |||
Stock options granted | 56,000 | ||
Stock option expense | $ 19,880 | ||
Stock options exercised | |||
Employees [Member] | |||
Stock options granted | 894,000 | ||
Stock option expense | $ 271,921 | ||
Additional expenses due to options granted | $ 87,459 | $ 43,730 | |
Stock options exercised | 15,000 | 8,000 |
CAPITAL STOCK (Details Narrativ
CAPITAL STOCK (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Stock options exercised | 15,000 | 8,000 | |||
Dividends per share | $ 0.10 | $ 0.05 | $ 0.10 | $ 0.05 | |
Dividend paid | $ 1,255,053 | $ 626,777 | $ 1,255,053 | ||
Consultant for services, shares | 1,272 | ||||
Consultant for services, value | $ 4,070 | ||||
Share-Based Payment Arrangement, Option [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Stock options exercised | 15,000 | 8,000 |
SCHEDULE OF DISTRIBUTIONS (Deta
SCHEDULE OF DISTRIBUTIONS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Non-controlling interests, Balance | $ 3,065,716 | ||||
Distribution | $ (365,644) | $ (387,696) | |||
Non-controlling interest share of income | 142,637 | $ 184,862 | 201,620 | $ 264,987 | |
Non-controlling interests, Balance | 2,901,692 | 2,901,692 | $ 3,065,716 | ||
ENP Investments, LLC [Member] | Ownership Interest Purchase Agreement [Member] | |||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Non-controlling interests, Balance | 2,901,199 | $ 2,605,034 | 2,605,034 | ||
Distribution | (365,644) | (719,439) | |||
Non-controlling interest share of income | 254,871 | 1,015,604 | |||
Non-controlling interests, Balance | $ 2,790,426 | $ 2,790,426 | $ 2,901,199 |
SCHEDULE OF NON CONTROLLING INT
SCHEDULE OF NON CONTROLLING INTEREST RELATED TO ACQUISITION (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Non-controlling interests, Balance | $ 3,065,716 | |
Non-controlling interests, Balance | 2,901,692 | $ 3,065,716 |
317 Mendota LLC [Member] | Ownership Interest Purchase Agreement [Member] | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Non-controlling interests, Balance | 164,517 | |
Non-controlling interests, Acquisition | 200,000 | |
Non-controlling interest share of income | (53,251) | (35,483) |
Non-controlling interests, Balance | $ 111,266 | $ 164,517 |
NON-CONTROLLING INTERESTS (Deta
NON-CONTROLLING INTERESTS (Details Narrative) - USD ($) | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Partnership distribution to non-controlling interest | $ 365,644 | $ 387,696 | |
Accounts receivable | $ 8,792,696 | $ 9,843,056 | |
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 | $ 3,591,601 | ||
Sales | 2,426,145 | $ 2,203,761 | |
Accounts receivable | $ 350,907 | $ 4,225,028 | |
317 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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue from External Customer [Line Items] | ||||
Revenue | $ 10,528,739 | $ 10,331,291 | $ 19,753,611 | $ 20,178,808 |
Depreciation and amortization | 939,524 | 751,574 | ||
Income tax expense | 558,251 | 354,372 | 822,429 | 654,149 |
Segment profit (loss) | 1,289,796 | 809,865 | 1,747,022 | 1,694,234 |
Expenditures for segment assets | (1,663,697) | (3,784,193) | ||
Segment [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 10,528,739 | 10,331,291 | 19,753,611 | 20,178,808 |
Interest expense | 157,131 | 115,498 | 332,397 | 250,368 |
Depreciation and amortization | 516,855 | 386,390 | 939,524 | 751,574 |
Income tax expense | 558,251 | 354,372 | 822,429 | 654,149 |
Segment profit (loss) | 1,289,796 | 809,865 | 1,747,021 | 1,694,234 |
Segment assets | 56,344,896 | 52,801,913 | 56,344,896 | 52,801,913 |
Expenditures for segment assets | (1,186,346) | (3,571,133) | (1,663,696) | (3,784,193) |
EWCP [Member] | Segment [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 167,496 | 220,602 | 209,104 | 301,262 |
Interest expense | ||||
Depreciation and amortization | 3,828 | 4,440 | 7,711 | 8,719 |
Income tax expense | (23,040) | 11,657 | 11,900 | 12,571 |
Segment profit (loss) | (198,936) | (41,262) | (180,396) | (192,990) |
Segment assets | 3,366,670 | 3,257,019 | 3,366,670 | 3,257,019 |
Expenditures for segment assets | ||||
TPA [Member] | Segment [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 10,361,243 | 10,100,689 | 19,544,507 | 19,877,546 |
Interest expense | 157,131 | 115,498 | 332,397 | 250,368 |
Depreciation and amortization | 513,027 | 381,951 | 931,813 | 742,855 |
Income tax expense | 581,291 | 342,715 | 810,529 | 641,578 |
Segment profit (loss) | 1,488,732 | 851,127 | 1,927,417 | 1,887,224 |
Segment assets | 52,978,226 | 49,544,894 | 52,978,226 | 49,544,894 |
Expenditures for segment assets | $ (1,186,346) | $ (3,571,133) | $ (1,663,696) | $ (3,784,193) |
SCHEDULE OF REVENUE GENERATED I
SCHEDULE OF REVENUE GENERATED IN UNITED STATES AND CANADA (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total | $ 10,528,739 | $ 10,331,291 | $ 19,753,611 | $ 20,178,808 |
CANADA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total | 223,083 | 313,058 | ||
United States and Abroad [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total | $ 19,530,528 | $ 19,865,750 |
SCHEDULE OF LONG-LIVED ASSETS A
SCHEDULE OF LONG-LIVED ASSETS ARE LOCATED IN CANADA AND UNITED STATE (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | $ 18,711,008 | $ 18,101,355 |
CANADA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | 130,116 | 142,577 |
UNITED STATES | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | $ 18,580,892 | $ 17,958,778 |
SEGMENTED, SIGNIFICANT CUSTOM_3
SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY (Details Narrative) | 6 Months Ended | |
Jun. 30, 2024 USD ($) Segments | Jun. 30, 2023 USD ($) | |
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 | $ | $ 9,843,563 | $ 9,276,058 |
Stock option exercise percent | 50% | 46% |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | ||
Aug. 09, 2024 | Jul. 31, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | |
Subsequent Event [Line Items] | ||||
Granted stock option, shares | 950,000 | |||
Employees [Member] | ||||
Subsequent Event [Line Items] | ||||
Granted stock option, shares | 894,000 | |||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Proceeds from sale of investments | $ 2,000,000 | |||
Proceeds from sale of investments | 800,000 | |||
Selling price | $ 6,000,000 | |||
Subsequent Event [Member] | Employees [Member] | ||||
Subsequent Event [Line Items] | ||||
Granted stock option, shares | 50,000 |