Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 16, 2020 | |
Details | ||
Registrant CIK | 0001092570 | |
Fiscal Year End | --12-31 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 000-27031 | |
Entity Registrant Name | FULLNET COMMUNICATIONS INC. | |
Entity Incorporation, State or Country Code | OK | |
Entity Tax Identification Number | 73-1473361 | |
Entity Address, Address Line One | 201 Robert S. Kerr Avenue, Suite 210 | |
Entity Address, City or Town | Oklahoma City | |
Entity Address, State or Province | OK | |
Entity Address, Postal Zip Code | 73102 | |
City Area Code | 405 | |
Local Phone Number | 236-8200 | |
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 | 15,097,749 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (June 30, 2020 Unaudited) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 1,169,022 | $ 612,005 |
Accounts receivable, net | 26,286 | 943 |
Prepaid expenses and other current assets | 31,601 | 19,986 |
Total current assets | 1,226,909 | 632,934 |
PROPERTY AND EQUIPMENT, net | 61,136 | 57,751 |
OTHER ASSETS AND INTANGIBLE ASSETS | 27,455 | 18,250 |
RIGHT OF USE LEASED ASSET | 541,424 | 618,333 |
TOTAL ASSETS | 1,856,924 | 1,327,268 |
CURRENT LIABILITIES | ||
Accounts payable | 50,024 | 50,786 |
Accrued and other liabilities | 425,151 | 475,776 |
Operating lease liability - current portion | 110,449 | 103,651 |
Deferred revenue | 772,110 | 508,861 |
Total current liabilities | 1,357,734 | 1,139,074 |
OPERATING LEASE LIABILITY - net of current portion | 430,975 | 514,682 |
Total liabilities | 1,788,709 | 1,653,756 |
SHAREHOLDERS' EQUITY (DEFICIT) | ||
Preferred Stock, Value | 351,708 | 554,516 |
Common Stock, Value | 151 | 145 |
Additional paid-in capital | 9,046,502 | 8,939,519 |
Accumulated deficit | (9,330,146) | (9,820,668) |
Total shareholders' equity (deficit) | 68,215 | (326,488) |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) | $ 1,856,924 | $ 1,327,268 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (June 30, 2020 Unaudited) - Parenthetical - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
Details | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 568,257 | 875,054 |
Preferred Stock, Shares Outstanding | 568,257 | 875,054 |
Common Stock, Par or Stated Value Per Share | $ 0.00001 | $ 0.00001 |
Common Stock, Shares Authorized | 40,000,000 | 40,000,000 |
Common Stock, Shares, Issued | 15,097,749 | 14,539,675 |
Common Stock, Shares, Outstanding | 15,097,749 | 14,539,675 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
REVENUES | ||||
Total revenue | $ 935,823 | $ 618,444 | $ 2,538,605 | $ 1,776,256 |
OPERATING COSTS AND EXPENSES | ||||
Cost of revenue | 137,427 | 81,707 | 379,622 | 238,905 |
Selling, general and administrative expenses | 498,802 | 465,480 | 1,664,658 | 1,414,639 |
Depreciation and amortization | 2,353 | 4,082 | 6,752 | 12,362 |
Total operating costs and expenses | 638,582 | 551,269 | 2,051,032 | 1,665,906 |
INCOME FROM OPERATIONS | 297,241 | 67,175 | 487,573 | 110,350 |
OTHER INCOME | 1,049 | 12,134 | 2,949 | 105,006 |
INTEREST EXPENSE | 0 | 0 | 0 | (277) |
Net Income (Loss) Attributable to Parent | 298,290 | 79,309 | 490,522 | 215,079 |
Preferred stock dividends | (13,163) | (20,636) | (46,701) | (61,908) |
Net income available to common shareholders | $ 285,127 | $ 58,673 | $ 443,821 | $ 153,171 |
Earnings Per Share | ||||
Basic income per share | $ 0.02 | $ 0 | $ 0.03 | $ 0.01 |
Diluted income per share | $ 0.02 | $ 0 | $ 0.02 | $ 0.01 |
Weighted Average Number of Shares Outstanding, Basic | 15,034,706 | 14,539,675 | 14,707,561 | 14,187,084 |
Weighted Average Number of Shares Outstanding, Diluted | 18,876,162 | 16,192,390 | 17,957,425 | 15,857,856 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT) (UNAUDITED) - USD ($) | Common Stock | Preferred Stock | Additional Paid In Capital | Accumulated Deficit | Total |
Equity Balance, Starting at Dec. 31, 2018 | $ 136 | $ 638,849 | $ 8,765,712 | $ (10,137,958) | $ (733,261) |
Shares Outstanding, Starting at Dec. 31, 2018 | 13,621,009 | 987,102 | |||
Shares Granted, Value, Share-based Payment Arrangement, after Forfeiture | $ 0 | $ 0 | 21,968 | 0 | 21,968 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 0 | 0 | |||
Amortization of increasing dividend rate preferred stock discount | $ 0 | $ 10,087 | (10,087) | 0 | 0 |
Stock Issued During Period, Value, Stock Options Exercised | $ 0 | $ 0 | 116 | 0 | 116 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 38,666 | 0 | |||
Net Income (Loss) | $ 0 | $ 0 | 0 | 215,079 | 215,079 |
Equity Balance, Ending at Sep. 30, 2019 | $ 145 | $ 648,936 | 8,796,398 | (9,922,879) | (477,400) |
Shares Outstanding, Ending at Sep. 30, 2019 | 14,539,675 | 987,102 | |||
Exercise of options by reducing deferred compensation payable, Value | $ 5 | $ 0 | 1,435 | 0 | 1,440 |
Exercise of options by reducing deferred compensation payable, Shares | 480,000 | 0 | |||
Warrants issued, amount | $ 0 | $ 0 | 15,358 | 0 | 15,358 |
Warrants issued, shares | 0 | 0 | |||
Warrants exercised, amount | $ 4 | $ 0 | 1,896 | 0 | 1,900 |
Warrants exercised, shares | 400,000 | 0 | |||
Equity Balance, Starting at Jun. 30, 2019 | $ 145 | $ 645,573 | 8,797,779 | (10,002,188) | (558,691) |
Shares Outstanding, Starting at Jun. 30, 2019 | 14,539,675 | 987,102 | |||
Shares Granted, Value, Share-based Payment Arrangement, after Forfeiture | $ 0 | $ 0 | 1,982 | 0 | 1,982 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 0 | 0 | |||
Amortization of increasing dividend rate preferred stock discount | $ 0 | $ 3,363 | (3,363) | 0 | 0 |
Net Income (Loss) | 0 | 0 | 0 | 79,309 | 79,309 |
Equity Balance, Ending at Sep. 30, 2019 | $ 145 | $ 648,936 | 8,796,398 | (9,922,879) | (477,400) |
Shares Outstanding, Ending at Sep. 30, 2019 | 14,539,675 | 987,102 | |||
Equity Balance, Starting at Dec. 31, 2019 | $ 145 | $ 554,516 | 8,939,519 | (9,820,668) | (326,488) |
Shares Outstanding, Starting at Dec. 31, 2019 | 14,539,675 | 875,054 | |||
Shares Granted, Value, Share-based Payment Arrangement, after Forfeiture | $ 0 | $ 0 | 25,076 | 0 | 25,076 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 0 | 0 | |||
Amortization of increasing dividend rate preferred stock discount | $ 0 | $ 5,393 | (5,393) | 0 | 0 |
Stock Issued During Period, Value, Stock Options Exercised | $ 1 | $ 0 | 399 | 0 | 400 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 100,000 | 0 | |||
Net Income (Loss) | $ 0 | $ 0 | 0 | 490,522 | 490,522 |
Equity Balance, Ending at Sep. 30, 2020 | $ 151 | $ 351,708 | 9,046,502 | (9,330,146) | 68,215 |
Shares Outstanding, Ending at Sep. 30, 2020 | 15,097,749 | 568,257 | |||
Common stock issued for repurchase of preferred stock, Value | $ 5 | $ 0 | 22,899 | 0 | 22,904 |
Common stock issued for repurchase of preferred stock, Shares | 458,074 | 0 | |||
Preferred stock repurchased, Value | $ 0 | $ (235,951) | 37,927 | 0 | (198,024) |
Preferred stock repurchased, Shares | 0 | (356,797) | |||
Repurchased preferred stock assigned to settle related party liability, Value | $ 0 | $ 27,750 | 26,075 | 0 | 53,825 |
Repurchased preferred stock assigned to settle related party liability, Shares | 0 | 50,000 | |||
Equity Balance, Starting at Jun. 30, 2020 | $ 150 | $ 349,910 | 9,046,267 | (9,628,436) | (232,109) |
Shares Outstanding, Starting at Jun. 30, 2020 | 14,997,749 | 568,257 | |||
Shares Granted, Value, Share-based Payment Arrangement, after Forfeiture | $ 0 | $ 0 | 1,634 | 0 | 1,634 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 0 | 0 | |||
Amortization of increasing dividend rate preferred stock discount | $ 0 | $ 1,798 | (1,798) | 0 | 0 |
Stock Issued During Period, Value, Stock Options Exercised | $ 1 | $ 0 | 399 | 0 | 400 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 100,000 | 0 | |||
Net Income (Loss) | $ 0 | $ 0 | 0 | 298,290 | 298,290 |
Equity Balance, Ending at Sep. 30, 2020 | $ 151 | $ 351,708 | $ 9,046,502 | $ (9,330,146) | $ 68,215 |
Shares Outstanding, Ending at Sep. 30, 2020 | 15,097,749 | 568,257 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 490,522 | $ 215,079 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 6,752 | 12,362 |
Noncash lease expense | 76,909 | 109,901 |
Stock options and warrants expense | 25,076 | 37,326 |
Provision for (recovery of) uncollectible accounts receivable | 832 | (1,698) |
Common stock issued for prior preferred stock repurchase charged to expense | 3,280 | 0 |
Net (increase) decrease in | ||
Accounts receivable | (26,175) | 6,351 |
Prepaid expenses and other assets | (20,820) | (10,528) |
Accounts payable | (762) | (7,426) |
Accounts payable - related party | 0 | 2,098 |
Accrued and other liabilities | 3,200 | 17,281 |
Deferred revenue | 263,249 | 74,763 |
Operating lease obligation | (76,909) | (97,670) |
Net cash provided by operating activities | 745,154 | 357,839 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Cash paid for property and equipment | (10,137) | 0 |
Net cash used in investing activities | (10,137) | 0 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Principal payments on borrowings under notes payable - related party | 0 | (27,888) |
Exercise of options | 0 | 116 |
Exercise of warrants | 400 | 1,900 |
Payments for repurchase of preferred stock | (178,400) | 0 |
Net cash used in financing activities | (178,000) | (25,872) |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 557,017 | 331,967 |
Cash and Cash Equivalents, at Carrying Value, Beginning Balance | 612,005 | 246,237 |
Cash and Cash Equivalents, at Carrying Value, Ending Balance | 1,169,022 | 578,204 |
Supplemental Cash Flow Information | ||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | 0 | 277 |
Cash Flow, Noncash Investing and Financing Activities Disclosure | ||
Right of use assets and operating lease liabilities recognized | 0 | 1,077,123 |
Repurchased preferred stock assigned to settle related party liability | 53,825 | 0 |
Common stock issued in connection with repurchase of preferred stock | 19,624 | 0 |
Amortization of increasing dividend rate preferred stock discount | 5,393 | 10,087 |
Exercise of options by reducing deferred compensation payable | 0 | 1,440 |
Purchase of fixed asset through Accounts payable related party | $ 0 | $ 4,632 |
1. UNAUDITED INTERIM FINANCIAL
1. UNAUDITED INTERIM FINANCIAL STATEMENTS | 9 Months Ended |
Sep. 30, 2020 | |
Notes | |
1. UNAUDITED INTERIM FINANCIAL STATEMENTS | 1. UNAUDITED INTERIM FINANCIAL STATEMENTS The unaudited condensed consolidated financial statements and related notes of FullNet Communications and its subsidiaries (“we”, “our”, collectively, the “Company”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to such rules and regulations. The accompanying unaudited condensed consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements of the Company and notes thereto for the year ended December 31, 2019. Certain reclassifications have been made to prior period balances to conform with the presentation for the current period. These reclassifications did not impact the net income for the prior period. The information furnished reflects, in the opinion of management, all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the results of the interim periods presented. Operating results of the interim period are not necessarily indicative of the amounts that will be reported for the year ended December 31, 2020. COVID-19 Pandemic As the global spread of COVID-19 continues, the pandemic has disrupted economies worldwide and its ultimate impacts are uncertain. While the ultimate impacts of COVID-19 cannot be determined, they have had and will continue to have material and adverse economic effects, and the pandemic could materially and adversely affect the Company’s business, financial condition and results of operations, although it has yet to do so. Recently Adopted Accounting Pronouncements In August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) No. 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract”. This guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing costs incurred to develop or obtain internal-use software. The guidance is effective for interim and annual periods beginning after December 15, 2019. The Company adopted this guidance effective January 1, 2020. The adoption of ASU No. 2018-15 did not have a material impact on the Company's consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, "Simplifying the Test for Goodwill Impairment", which removes the second step of the goodwill impairment test that requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. This guidance is effective prospectively for interim and annual reporting periods beginning after December 15, 2019. The Company adopted this guidance effective January 1, 2020. The adoption of ASU No. 2017-04 did not have a material impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13 (as amended through June 2020), “Financial Instruments—Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments”. ASU No. 2016-13 introduced a new forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables, contract assets and held-to-maturity debt securities. The Company chose early adoption of this guidance effective January 1, 2020. The adoption of ASU No. 2016-13 did not have a material impact on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU No. 2019-12, "Simplifying the Accounting for Income Taxes", which simplifies the accounting for income taxes by removing certain exceptions to the general principles for income taxes. This guidance is effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. The Company is evaluating the impact of this guidance on its consolidated financial statements. Income (Loss) Per Share Income (loss) per share – basic is calculated by dividing net income (loss) by the weighted average number of shares of stock outstanding during the year, including shares issuable without additional consideration. Income per share, assuming dilution, is calculated by dividing net income by the weighted average number of shares outstanding during the year adjusted for the effect of dilutive potential shares calculated using the treasury stock method for options and warrants and the “if converted” method for convertible preferred stock. The reconciliation of basic and diluted income per share are as follows: Three Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Net income: Net income from operations $ 298,290 $ 79,309 $ 490,522 $ 215,079 Preferred stock dividends (13,163) (20,636) (46,701) (61,908) Net income available to common shareholders 285,127 58,673 443,821 153,171 Basic income per share: Weighted average common shares outstanding used in income per share 15,034,706 14,539,675 14,707,561 14,187,084 Basic income per share 0.02 0.00 0.03 0.01 Diluted income per share: Shares used in diluted income per share 18,876,162 16,192,390 17,957,425 15,857,856 Diluted income per share 0.02 0.00 0.02 0.01 Computation of shares used in income per share: Weighted average shares and share equivalents outstanding – basic 15,034,706 14,539,675 14,707,561 14,187,084 Effect of dilutive stock options 3,568,267 1,386,846 2,989,353 1,377,907 Effect of dilutive warrants 273,189 265,869 260,511 264,977 Effect of convertible promissory note - - - 27,888 Weighted average shares and share equivalents outstanding – diluted 18,876,162 16,192,390 17,957,425 15,857,856 Schedule of Anti-dilutive Securities Excluded Three Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Stock options - - 263,000 - Preferred stock 568,257 987,102 568,257 987,102 Total anti-dilutive securities excluded 568,257 987,102 831,257 987,102 Anti-dilutive securities consist of stock options, warrants, and convertible promissory notes whose exercise price or conversion price, respectively, was greater than the average market price of the common stock. |
2. MANAGEMENT'S PLANS
2. MANAGEMENT'S PLANS | 9 Months Ended |
Sep. 30, 2020 | |
Notes | |
2. MANAGEMENT'S PLANS | 2. MANAGEMENT'S PLANS On August 27, 2014, FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s ability to Continue as a Going Concern, which requires management to assess a company’s ability to continue as a going concern within one year from financial statement issuance and to provide related footnote disclosures in certain circumstances. The Company has historically experienced significant operating losses with cumulative losses from inception of approximately $9.3 million. These losses have resulted in a negative working capital position of approximately $131,000 at September 30, 2020, of which approximately $269,000 of the Company’s current liabilities is owed to its officers and directors, and approximately $772,000 of the Company’s current liabilities is deferred revenue. The Company’s officers and directors, who are also major shareholders, have agreed to not seek payment of any of the amounts owed to them if such payment would jeopardize the Company’s ability to continue as a going concern. The deferred revenue represents advance payments for services from the Company’s customers which will be satisfied by its delivery of services in the normal course of business and will not require settlement in cash. The Company started a number of initiatives in 2017 which included revenue enhancement initiatives, cost saving initiatives and the sale of excess assets. The Company has been successful with its revenue enhancement and cost saving initiatives, and in selling certain excess assets in the third quarter of 2018 and the first quarter of 2019. As a result of these initiatives, the Company has been able to generate net income and positive net cash flow for each of the past two years. The Company generated positive cash flow from its operating activities of approximately $745,000 and $358,000, for the nine months ended September 30, 2020 and 2019, respectively. In addition, the Company was able to generate net income of approximately $491,000 and $215,000, for the nine months ended September 30, 2020 and 2019, respectively. Management expects that the success of its revenue enhancement and cost saving initiatives will provide the Company with sufficient liquidity for it to operate for the next 12 months. As a result of the revenue enhancement initiatives, the cost saving initiatives and the excess asset sales, the Company has been able to significantly improve its working capital position and alleviate any substantial doubt about the Company’s ability to continue as a going concern as defined by ASU 2014-05. We believe that the actions discussed above mitigate the substantial doubt raised by our prior operating losses and satisfy our estimated liquidity needs 12 months from the issuance of the financial statements. However, we cannot predict, with certainty, the outcome of our actions to generate additional liquidity, including the availability of additional debt financing, or whether such actions would generate the expected liquidity as currently planned. Additionally, a failure to generate additional liquidity could negatively impact our ability to effectively execute our business plan. |
3. STOCK BASED COMPENSATION
3. STOCK BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2020 | |
Notes | |
3. STOCK BASED COMPENSATION | 3. STOCK BASED COMPENSATION The following table summarizes the Company’s employee stock option activity for the nine months ended September 30, 2020: Schedule of Employee Stock Option Activity Options Weighted average exercise price Weighted average remaining contractual life (yrs) Aggregate Intrinsic value Options outstanding, December 31, 2019 2,318,835 $ 0.010 6.42 Options exercisable, December 31, 2019 1,628,165 $ 0.007 6.00 $ 37,682 Options issued during the period 2,036,000 $ 0.015 Options forfeited during the period (10,000) $ 0.019 Options outstanding September 30, 2020 4,344,835 $ 0.012 7.48 Options exercisable September 30, 2020 3,085,835 $ 0.012 6.79 $ 273,094 During the nine months ended September 30, 2020, 2,036,000 nonqualified employee stock options were granted with an exercise price of $0.01 per option for 1,108,000 options and $0.02 for 928,000 options. The options were valued using Black-Scholes option pricing model on the respective date of issuance and the fair value of the options was determined to be $29,270 of which $20,506 was recognized as stock-based compensation expense for the nine months ended September 30, 2020. 1,108,000 of the stock options will vest one-third on each annual anniversary of the grant date (February 28, 2020), and 928,000 of the stock options vested immediately at the grant date (June 3, 2020). All will expire ten years from the date of the grant. Total stock-based compensation expense for the nine months ended September 30, 2020 was $23,118 of which $20,506 was related to options issued during the nine months ended September 30, 2020 and $2,612 was related to options issued in prior years. Stock-based compensation is measured at the grant date, based on the calculated fair value of the option, and is recognized as an expense on a straight-line basis over the requisite employee service period (generally the vesting period of the grant). The Black-Scholes option pricing model was used with the following weighted-average assumptions for options granted during the nine months ended September 30, 2020: 2020 Risk free interest rate 0.38% - 0.89% Expected lives (in years) 5 Expected volatility 208% - 236% Dividend yield 0% |
4. WARRANT ACTIVITY
4. WARRANT ACTIVITY | 9 Months Ended |
Sep. 30, 2020 | |
Notes | |
4. WARRANT ACTIVITY | 4. WARRANT ACTIVITY The following table summarizes the Company’s warrant activity for the nine months ended September 30, 2020: Warrants Weighted average exercise price Weighted average remaining contractual life (yrs) Aggregate Intrinsic value Warrants outstanding December 31, 2019 290,000 $ 0.004 3.41 Warrants exercisable December 31, 2019 290,000 $ 0.004 3.41 $ 7,550 Warrants issued during the period 100,000 $ 0.004 Warrants exercised during the period (100,000) $ 0.004 Warrants outstanding September 30, 2020 290,000 $ 0.004 2.66 Warrants exercisable September 30, 2020 290,000 $ 0.004 2.66 $ 27,879 During the nine months ended September 30, 2020, 100,000 common stock purchase warrants were granted with an exercise price of $0.004 per warrant. The warrants were valued using the Black-Scholes warrant pricing model on the date of issuance and the fair value of the shares was determined to be $1,958, which was recognized as expense for the nine months ended September 30, 2020. These warrants vested immediately upon grant (June 2, 2020) and were subsequently exercised during the nine months ended September 30, 2020. |
5. SERIES A CONVERTIBLE PREFERR
5. SERIES A CONVERTIBLE PREFERRED STOCK | 9 Months Ended |
Sep. 30, 2020 | |
Notes | |
5. SERIES A CONVERTIBLE PREFERRED STOCK | 5. SERIES A CONVERTIBLE PREFERRED STOCK On March 13, 2020, the Company’s board of directors determined that it was in the best interest of the Company and its shareholders to conserve the Company’s working capital at this time and not make the annual dividend payment for the year ended December 31, 2019, on its Series A convertible preferred stock. The Company has never made an annual dividend payment on its Series A convertible preferred stock. As of September 30, 2020, the aggregate outstanding accumulated arrearages of cumulative dividend was $156,713 or if issued in common shares, 1,565,561 shares. During June 2020, the Company repurchased 356,797 shares of its Series A convertible preferred stock in return for the issuance of 392,477 shares of its common stock with a fair value of $19,624 and a payment of $178,400. The Company assigned 50,000 shares of the repurchased Series A convertible preferred stock to settle a related party liability of $53,825, and the remaining 306,797 shares were cancelled. Also during June 2020, an additional 65,597 shares of common stock with a fair value of $3,280 were issued and $9,541 was paid to a former preferred shareholder to equitably adjust the repurchase price of the Series A convertible preferred shares at the end of 2019 to those made in the second quarter of 2020. As of September 30, 2020, there were 568,257 shares of Series A convertible preferred stock outstanding. The amortization of the increasing dividend rate preferred stock discount for the nine months ended September 30, 2020 was $5,393. |
6. LEASES
6. LEASES | 9 Months Ended |
Sep. 30, 2020 | |
Notes | |
6. LEASES | 6. LEASES We determine if a contract contains a lease by evaluating the nature and substance of the agreement. The only lease that we have is the real estate lease for our headquarters facility, which was originally executed on December 2, 1999, and which has been extended several times. This lease was renewed for a term of five additional years. We recognize lease expense for this lease on a straight-line basis over the lease term. We used our incremental borrowing rate (8.5%) in determining the present value of the lease payments over the lease expiration date of December 31, 2024. At September 30, 2020, the remaining future cash payments under our lease total to $646,986. For the nine months ended September 30, 2020, we amortized $76,909 of our operating right-of-use, or ROU, asset and made payments of the associated lease liability for the same amount. At September 30, 2020, an operating ROU asset and liability of $541,424, each, are included on our condensed consolidated balance sheet. For the nine months ended September 30, 2020, our fixed operating lease cost was $114,174, which is included within operating costs and expenses in our condensed consolidated statement of operations. For the nine months ended September 30, 2019, our fixed operating lease cost was $178,567. Future minimum lease payments under non-cancellable operating lease as of September 30, 2020, were as follows: Year ending December 31, 2020 (three months remaining) $ 38,058 2021 152,232 2022 152,232 2023 152,232 2024 152,232 Total future minimum lease payments 646,986 Present value of discount (105,562) Current portion lease liability (110,449) Long-term lease liability $ 430,975 |
1. UNAUDITED INTERIM FINANCIA_2
1. UNAUDITED INTERIM FINANCIAL STATEMENTS: Recently Adopted Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Policies | |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) No. 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract”. This guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing costs incurred to develop or obtain internal-use software. The guidance is effective for interim and annual periods beginning after December 15, 2019. The Company adopted this guidance effective January 1, 2020. The adoption of ASU No. 2018-15 did not have a material impact on the Company's consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, "Simplifying the Test for Goodwill Impairment", which removes the second step of the goodwill impairment test that requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. This guidance is effective prospectively for interim and annual reporting periods beginning after December 15, 2019. The Company adopted this guidance effective January 1, 2020. The adoption of ASU No. 2017-04 did not have a material impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13 (as amended through June 2020), “Financial Instruments—Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments”. ASU No. 2016-13 introduced a new forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables, contract assets and held-to-maturity debt securities. The Company chose early adoption of this guidance effective January 1, 2020. The adoption of ASU No. 2016-13 did not have a material impact on the Company’s consolidated financial statements. |
1. UNAUDITED INTERIM FINANCIA_3
1. UNAUDITED INTERIM FINANCIAL STATEMENTS: Recently Issued Accounting Pronouncements Not Yet Adopted (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Policies | |
Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Issued Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU No. 2019-12, "Simplifying the Accounting for Income Taxes", which simplifies the accounting for income taxes by removing certain exceptions to the general principles for income taxes. This guidance is effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. The Company is evaluating the impact of this guidance on its consolidated financial statements. |
1. UNAUDITED INTERIM FINANCIA_4
1. UNAUDITED INTERIM FINANCIAL STATEMENTS: Income (Loss) Per Share (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Policies | |
Income (Loss) Per Share | Income (Loss) Per Share Income (loss) per share – basic is calculated by dividing net income (loss) by the weighted average number of shares of stock outstanding during the year, including shares issuable without additional consideration. Income per share, assuming dilution, is calculated by dividing net income by the weighted average number of shares outstanding during the year adjusted for the effect of dilutive potential shares calculated using the treasury stock method for options and warrants and the “if converted” method for convertible preferred stock. The reconciliation of basic and diluted income per share are as follows: Three Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Net income: Net income from operations $ 298,290 $ 79,309 $ 490,522 $ 215,079 Preferred stock dividends (13,163) (20,636) (46,701) (61,908) Net income available to common shareholders 285,127 58,673 443,821 153,171 Basic income per share: Weighted average common shares outstanding used in income per share 15,034,706 14,539,675 14,707,561 14,187,084 Basic income per share 0.02 0.00 0.03 0.01 Diluted income per share: Shares used in diluted income per share 18,876,162 16,192,390 17,957,425 15,857,856 Diluted income per share 0.02 0.00 0.02 0.01 Computation of shares used in income per share: Weighted average shares and share equivalents outstanding – basic 15,034,706 14,539,675 14,707,561 14,187,084 Effect of dilutive stock options 3,568,267 1,386,846 2,989,353 1,377,907 Effect of dilutive warrants 273,189 265,869 260,511 264,977 Effect of convertible promissory note - - - 27,888 Weighted average shares and share equivalents outstanding – diluted 18,876,162 16,192,390 17,957,425 15,857,856 Schedule of Anti-dilutive Securities Excluded Three Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Stock options - - 263,000 - Preferred stock 568,257 987,102 568,257 987,102 Total anti-dilutive securities excluded 568,257 987,102 831,257 987,102 Anti-dilutive securities consist of stock options, warrants, and convertible promissory notes whose exercise price or conversion price, respectively, was greater than the average market price of the common stock. |
1. UNAUDITED INTERIM FINANCIA_5
1. UNAUDITED INTERIM FINANCIAL STATEMENTS: COVID-19 Pandemic (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Tables/Schedules | |
COVID-19 Pandemic | COVID-19 Pandemic As the global spread of COVID-19 continues, the pandemic has disrupted economies worldwide and its ultimate impacts are uncertain. While the ultimate impacts of COVID-19 cannot be determined, they have had and will continue to have material and adverse economic effects, and the pandemic could materially and adversely affect the Company’s business, financial condition and results of operations, although it has yet to do so. |
1. UNAUDITED INTERIM FINANCIA_6
1. UNAUDITED INTERIM FINANCIAL STATEMENTS: Income (Loss) Per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Tables/Schedules | |
Schedule of Earnings Per Share, Basic and Diluted | Three Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Net income: Net income from operations $ 298,290 $ 79,309 $ 490,522 $ 215,079 Preferred stock dividends (13,163) (20,636) (46,701) (61,908) Net income available to common shareholders 285,127 58,673 443,821 153,171 Basic income per share: Weighted average common shares outstanding used in income per share 15,034,706 14,539,675 14,707,561 14,187,084 Basic income per share 0.02 0.00 0.03 0.01 Diluted income per share: Shares used in diluted income per share 18,876,162 16,192,390 17,957,425 15,857,856 Diluted income per share 0.02 0.00 0.02 0.01 Computation of shares used in income per share: Weighted average shares and share equivalents outstanding – basic 15,034,706 14,539,675 14,707,561 14,187,084 Effect of dilutive stock options 3,568,267 1,386,846 2,989,353 1,377,907 Effect of dilutive warrants 273,189 265,869 260,511 264,977 Effect of convertible promissory note - - - 27,888 Weighted average shares and share equivalents outstanding – diluted 18,876,162 16,192,390 17,957,425 15,857,856 |
1. UNAUDITED INTERIM FINANCIA_7
1. UNAUDITED INTERIM FINANCIAL STATEMENTS: Income (Loss) Per Share: Schedule of Anti-dilutive Securities Excluded (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Tables/Schedules | |
Schedule of Anti-dilutive Securities Excluded | Schedule of Anti-dilutive Securities Excluded Three Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Stock options - - 263,000 - Preferred stock 568,257 987,102 568,257 987,102 Total anti-dilutive securities excluded 568,257 987,102 831,257 987,102 |
3. STOCK BASED COMPENSATION_ Sc
3. STOCK BASED COMPENSATION: Schedule of Employee Stock Option Activity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Tables/Schedules | |
Schedule of Employee Stock Option Activity | Schedule of Employee Stock Option Activity Options Weighted average exercise price Weighted average remaining contractual life (yrs) Aggregate Intrinsic value Options outstanding, December 31, 2019 2,318,835 $ 0.010 6.42 Options exercisable, December 31, 2019 1,628,165 $ 0.007 6.00 $ 37,682 Options issued during the period 2,036,000 $ 0.015 Options forfeited during the period (10,000) $ 0.019 Options outstanding September 30, 2020 4,344,835 $ 0.012 7.48 Options exercisable September 30, 2020 3,085,835 $ 0.012 6.79 $ 273,094 |
3. STOCK BASED COMPENSATION_ Fa
3. STOCK BASED COMPENSATION: Fair Value Assumptions for options granted (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Tables/Schedules | |
Fair Value Assumptions for options granted | 2020 Risk free interest rate 0.38% - 0.89% Expected lives (in years) 5 Expected volatility 208% - 236% Dividend yield 0% |
4. WARRANT ACTIVITY_ Schedule o
4. WARRANT ACTIVITY: Schedule of Warrant Activity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Tables/Schedules | |
Schedule of Warrant Activity | Warrants Weighted average exercise price Weighted average remaining contractual life (yrs) Aggregate Intrinsic value Warrants outstanding December 31, 2019 290,000 $ 0.004 3.41 Warrants exercisable December 31, 2019 290,000 $ 0.004 3.41 $ 7,550 Warrants issued during the period 100,000 $ 0.004 Warrants exercised during the period (100,000) $ 0.004 Warrants outstanding September 30, 2020 290,000 $ 0.004 2.66 Warrants exercisable September 30, 2020 290,000 $ 0.004 2.66 $ 27,879 |
6. LEASES_ Schedule of Future M
6. LEASES: Schedule of Future Minimum Rental Payments for Operating Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Tables/Schedules | |
Schedule of Future Minimum Rental Payments for Operating Leases | Year ending December 31, 2020 (three months remaining) $ 38,058 2021 152,232 2022 152,232 2023 152,232 2024 152,232 Total future minimum lease payments 646,986 Present value of discount (105,562) Current portion lease liability (110,449) Long-term lease liability $ 430,975 |
1. UNAUDITED INTERIM FINANCIA_8
1. UNAUDITED INTERIM FINANCIAL STATEMENTS: Income (Loss) Per Share: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net income: | ||||
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ 298,290 | $ 79,309 | $ 490,522 | $ 215,079 |
Preferred stock dividends | (13,163) | (20,636) | (46,701) | (61,908) |
Net income available to common shareholders | $ 285,127 | $ 58,673 | $ 443,821 | $ 153,171 |
Basic income per share: | ||||
Weighted average shares and share equivalents outstanding –basic | 15,034,706 | 14,539,675 | 14,707,561 | 14,187,084 |
Basic income per share | $ 0.02 | $ 0 | $ 0.03 | $ 0.01 |
Diluted income per share: | ||||
Shares used in diluted income per share | 18,876,162 | 16,192,390 | 17,957,425 | 15,857,856 |
Diluted income per share | $ 0.02 | $ 0 | $ 0.02 | $ 0.01 |
Computation of shares used in income per share: | ||||
Weighted Average Number of Shares Outstanding, Basic | 15,034,706 | 14,539,675 | 14,707,561 | 14,187,084 |
Effect of dilutive stock options | $ 3,568,267 | $ 1,386,846 | $ 2,989,353 | $ 1,377,907 |
Effect of dilutive warrants | 273,189 | 265,869 | 260,511 | 264,977 |
Effect of convertible promissory note | $ 0 | $ 0 | $ 0 | $ 27,888 |
Weighted Average Number of Shares Outstanding, Diluted | 18,876,162 | 16,192,390 | 17,957,425 | 15,857,856 |
1. UNAUDITED INTERIM FINANCIA_9
1. UNAUDITED INTERIM FINANCIAL STATEMENTS: Income (Loss) Per Share: Schedule of Anti-dilutive Securities Excluded (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Details | ||||
Anti-dilutive Securities Excluded, Stock Options | 0 | 0 | 263,000 | 0 |
Preferred stock | 568,257 | 987,102 | 568,257 | 987,102 |
Total anti-dilutive securities excluded | 568,257 | 987,102 | 831,257 | 987,102 |
2. MANAGEMENT'S PLANS (Details)
2. MANAGEMENT'S PLANS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Details | ||||
Net cash provided by operating activities | $ 745,154 | $ 357,839 | ||
Net Income (Loss) Attributable to Parent | $ 298,290 | $ 79,309 | $ 490,522 | $ 215,079 |
3. STOCK BASED COMPENSATION_ _2
3. STOCK BASED COMPENSATION: Schedule of Employee Stock Option Activity (Details) - Employee stock options - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance | 2,318,835 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance | $ 0.010 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 7 years 5 months 23 days | 6 years 5 months 1 day | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 1,628,165 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 0.007 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 6 years 9 months 14 days | 6 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 37,682 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 2,036,000 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 0.015 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | (10,000) | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | $ 0.019 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 4,344,835 | 2,318,835 | 4,344,835 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance | $ 0.012 | $ 0.010 | $ 0.012 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 3,085,835 | 1,628,165 | 3,085,835 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 0.012 | $ 0.007 | $ 0.012 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 273,094 | $ 37,682 | $ 273,094 |
3. STOCK BASED COMPENSATION (De
3. STOCK BASED COMPENSATION (Details) | 9 Months Ended |
Sep. 30, 2020USD ($)$ / sharesshares | |
Share-based Payment Arrangement, Expense | $ | $ 23,118 |
Nonqualified employee stock options | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 2,036,000 |
Non-qualified Options 1 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 1,108,000 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares | $ 0.01 |
Non-qualified Options 2 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 928,000 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares | $ 0.02 |
3. STOCK BASED COMPENSATION_ _3
3. STOCK BASED COMPENSATION: Fair Value Assumptions for options granted (Details) - Employee stock options | 9 Months Ended |
Sep. 30, 2020 | |
Risk free interest rate | 0.0038 |
Expected lives (in years) | 5 years |
Expected volatility | 2.08 |
Dividend yield | 0 |
4. WARRANT ACTIVITY_ Schedule_2
4. WARRANT ACTIVITY: Schedule of Warrant Activity (Details) - Warrants - shares | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance | 290,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 2 years 7 months 28 days | 3 years 4 months 28 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 290,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 2 years 7 months 28 days | 3 years 4 months 28 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 100,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 290,000 | 290,000 | 290,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 290,000 | 290,000 | 290,000 |
4. WARRANT ACTIVITY (Details)
4. WARRANT ACTIVITY (Details) - Warrant 1 | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 100,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ / shares | $ 0.004 |
5. SERIES A CONVERTIBLE PREFE_2
5. SERIES A CONVERTIBLE PREFERRED STOCK (Details) | 9 Months Ended |
Sep. 30, 2020USD ($)shares | |
Details | |
Aggregate outstanding accumulated arrearages of cumulative dividend | $ 156,713 |
Aggregate outstanding accumulated arrearages of cumulative dividend, Shares | shares | 1,565,561 |
Amortization of the increasing dividend rate preferred stock discount | $ 5,393 |
6. LEASES (Details)
6. LEASES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Details | ||||
Operating Leases, Future Minimum Payments Due | $ 646,986 | |||
Noncash lease expense | 76,909 | $ 109,901 | ||
RIGHT OF USE LEASED ASSET | 541,424 | $ 618,333 | ||
Fixed operating lease cost | $ 114,174 | |||
Cash paid for amounts included in the measurement of lease liability | $ 178,567 |
6. LEASES_ Schedule of Future_2
6. LEASES: Schedule of Future Minimum Rental Payments for Operating Leases (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Details | ||
2020 (three months remaining) | $ 38,058 | |
2021 | 152,232 | |
2022 | 152,232 | |
2023 | 152,232 | |
2024 | 152,232 | |
Total future minimum lease payments | 646,986 | |
Present value of discount | (105,562) | |
Operating lease liability - current portion | (110,449) | $ (103,651) |
Long-term lease liability | $ 430,975 |