Advanced Container (ACTX) 10-K 28 May 20 2019 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2019	May 28, 2020	Jun. 30, 2019
Document And Entity Information
Entity Registrant Name	Medtainer, Inc.
Entity Central Index Key	0001096950
Document Type	10-K
Document Period End Date	Dec. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Shell Company	false
Small Business	true
Emerging Growth Company	true
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	No
Entity Filer Category	Non-accelerated Filer
Entity Ex Transition Period	false
Entity Public Float			$ 10,800,000
Entity Common Stock, Shares Outstanding		77,085,272
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2019

Balance Sheets

Balance Sheets - USD ($)	Dec. 31, 2019	Dec. 31, 2018
CURRENT ASSETS:
Cash	$ 17,982	$ 17,374
Accounts receivable	108,836	67,874
Inventories	85,215	172,884
Prepaid expenses	8,967
TOTAL CURRENT ASSETS	221,000	258,132
Property and equipment, net of accumulated depreciation of $118,459 and $90,140, respectively	35,280	62,437
Intangible assets, net of accumulated amortization of $126,322 and $45,514, respectively	1,405,678	1,486,486
Goodwill	1,020,314	1,020,314
Security deposits	7,699	7,699
TOTAL ASSETS	2,689,971	2,835,065
CURRENT LIABILITIES:
Accounts payable and accrued expenses	234,635	189,217
Accrued interest payable	142,464	124,633
Payroll liabilities payable	162,409	111,128
Customer deposits payable	97,310	51,496
Convertible notes payable	81,172	81,172
Notes payable	373,959	373,959
Loans payables - stockholders	627,162	385,660
Capital lease payable		9,522
TOTAL CURRENT LIABILITIES	1,719,111	1,326,787
SHAREHOLDERS' EQUITY DEFICIENCY
Preferred stock, without par value, issuable in series, 10,000,000 shares authorized: none issued
Common stock, par value $0.00001 per share, 100,000,000 shares authorized: 56,700,979 shares issued and outstanding at December 31, 2019, and 55,499,106 shares issued and outstanding at December 31, 2018	567	555
Additional paid In capital	5,905,656	5,034,636
Accumulated deficit	(4,935,363)	(3,526,913)
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)	970,860	1,508,278
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 2,689,971	$ 2,835,065

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Office Equipment Net Depreciation	$ 118,459	$ 90,140
Intangible Assets, net of accumulated amortization	$ 126,322	$ 45,514
Preferred Stock Par Value	$ 0	$ 0
Preferred Stock Shares Authorized	10,000,000	10,000,000
Preferred Stock Shares Issued	0	0
Preferred Stock Shares Outstanding	0	0
Common Stock Par Value	$ 0.00001	$ 0.00001
Common Stock Shares Authorized	100,000,000	100,000,000
Common Stock Shares Issued	56,700,979	55,499,106
Common Stock Shares Outstanding	56,700,979	55,499,106

Statements of Operations

Statements of Operations - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income Statement [Abstract]
Revenues	$ 2,148,466	$ 2,230,330
Cost of sales	1,020,747	1,032,601
Gross profit	1,127,719	1,197,730
Operating expenses:
Advertising and marketing	84,440	45,463
Depreciation and amortization	109,127	71,546
Professional fees	112,829	98,598
Share Based Compernsation	871,032	767,592
Payroll expenses	1,170,829	1,183,973
General and administrative expense	142,271	151,475
Total operating expenses	2,497,678	2,318,647
Loss from operations	(1,369,959)	(1,120,917)
Non-operating income (expense)
Interest expense	(38,491)	(159,386)
Gain on extinguishment of debt		(5,012)
Gain on change in fair value of derivative liability		1,031
Non-operating income (expense)	(38,491)	(153,343)
Loss before income taxes	(1,408,450)	(1,274,260)
Income tax provision benefit
Net loss	$ (1,408,450)	$ (1,274,260)
Basic loss per common share	$ (0.02)	$ (0.02)
Diluted loss per common share	$ (0.02)	$ (0.02)
Basic weighted average common shares outstanding	56,516,046	54,182,109
Diluted weighted average common shares outstanding	57,000,567	54,330,467

Statements of Cash Flows

Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
OPERATING ACTIVITIES:
Net loss	$ (1,408,450)	$ (1,274,260)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense	28,319	26,031
Amortization expense	80,808	45,514
Stock expense for sales agreement		9,100
Share-based Compensation	871,032	767,592
Gain on extinguishment of debt		(5,012)
Gain on change in fair value of derivative liability		(1,031)
Non-cash interest expense		105,507
Changes in operating assets and liabilities
Accounts receivable	(40,962)	20,088
Inventories	87,669	38,768
Prepaid expenses	(8,967)
Accounts payable and accrued expenses	45,418	(91,508)
Accrued interest	17,831	110,046
Payroll liabilities	51,281
Customer deposits	45,814
Payment of security deposits		(210)
NET CASH USED IN OPERATING ACTIVITIES	(230,207)	(249,825)
INVESTING ACTIVITIES:
Acquisition of property and equipment	(1,165)	(12,416)
NET CASH USED IN NVESTING ACTIVITIES	(1,165)	(12,416)
FINANCING ACTIVITIES:
Proceeds from issuance of common stock		120,000
Repayment of note payable		(100,000)
Principal payments on capital lease obligations	(9,522)	(25,707)
Proceeds from stockholder loan	610,393	348,666
Repayment of stockholder loan	(368,891)	(86,000)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	231,980	256,959
INCREASE (DECREASE) IN CASH	608	(5,282)
CASH - BEGINNING OF YEAR	17,374	22,656
CASH - END OF YEAR	17,982	17,374
Non-cash financing activities
Conversion of convertible debt with derivative into common stock		49,658
Common stock issued for the acquisition of intangible assets and goodwill		$ 2,552,314

Shareholders Equity

Shareholders Equity - USD ($)	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Beginning Balance, Shares at Dec. 31, 2017	52,495,113
Beginning Balance, Value at Dec. 31, 2017	$ 525	$ 1,536,002	$ (2,252,653)	$ (716,126)
Issuance of common stock in private placement, Shares	120,000
Issuance of common stock in private placement, Value	$ 1	119,999		120,000
Share Based Compensation, Shares	185,000
Share Based Compensation, Amount	$ 2	767,590		767,592
Common Stock issued of Sales Agreement, Shares	10,000
Common Stock issued of Sales Agreement, Amount		9,100		9,100
Common stock issued upon conversion of convertible debt, Shares	57,741
Common stock issued upon conversion of convertible debt, Amount	$ 1	49,657		49,658
Common Stock issued upon aquisition of Intangible Assets, Shares	2,631,252
Common Stock issued upon aquisition of Intangible Assets, Amount	$ 26	2,552,288		2,552,314
Net loss			(1,274,260)	(1,274,260)
Ending Balance, Shares at Dec. 31, 2018	55,499,106
Ending Balance, Value at Dec. 31, 2018	$ 555	5,034,636	(3,526,913)	1,508,278
Share Based Compensation, Shares	1,200,000
Share Based Compensation, Amount	$ 12	871,020		871,032
Common stock issued in reverse split	1,873
Net loss			(1,408,450)	(1,408,450)
Ending Balance, Shares at Dec. 31, 2019	56,700,979
Ending Balance, Value at Dec. 31, 2019	$ 567	$ 5,905,656	$ (4,935,363)	$ 970,860

Description of Business and Org

Description of Business and Organization	12 Months Ended
	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business and Organization	Note 1 – Description of Business and Organization Medtainer, Inc. (the “Company”) designs, brands and sells proprietary plastic medical grade containers called Medtainers ® The Company was incorporated under the laws of the state of Florida on September 5, 1997. It changed its corporate name to Acology, Inc. on January 9, 2014, and on August 28, 2018, to Medtainer, Inc. Prior to January 1, 2018, the Company sold its products through its wholly owned subsidiary, D&C Distributors LLC, a California limited liability company, which commenced operations on January 29, 2013, and which the Company acquired by merger on March 28, 2014, and performed its printing services through its wholly owned subsidiary, D&C Printing LLC, a California limited liability company, which was established by the Company and commenced operations on April 14, 2015. Commencing on January 1, 2018, the Company has itself conducted all of its business.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2 – Summary of Significant Accounting Policies Accounting Principles The accompanying audited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and with the instructions to Form 10-K and Article 10 of Regulation S-X promulgated by the United States Securities and Exchange Commission (the “SEC”). Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All intercompany balances and transactions have been eliminated. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. Certain of these estimates could be affected by external conditions, including those unique to the Company’s industry, and general economic conditions. It is possible that these external conditions could have an effect on the Company’s estimates that could cause actual results to differ materially from its estimates. The Company re-evaluates all of its accounting estimates at least quarterly based on these conditions and records adjustments when necessary. Significant estimates relied upon in preparing these consolidated financial statements include revenue recognition, accounts receivable reserves, inventory and related reserves, valuations and purchase price allocations related to business combinations, expected future cash flows used to evaluate the recoverability of long-lived assets, estimated fair values of long-lived assets used to record impairment charges related to intangible assets and goodwill, amortization periods, accrued expenses, share-based compensation, and recoverability of the Company’s net deferred tax assets and any related valuation allowance. Financial Statement Reclassification The Company has recast certain prior period current liabilities on its consolidated balance sheets, consisting of accounts payable and accrued liabilities and expenses, to conform to the current period presentation. The Company also recast for the year ended December 31, 2018, $27,557 of operating expenses to cost of goods sold. This recast of operating expenses to cost of goods sold were made to more accurately reflect the absorption calculations used in the current periods. These items had no impact in the Company’s consolidated statements of operations or net cash from or used in operating, financing, or investing in its consolidated cash flow statements. Remaining Performance Obligations As of December 31, 2019, the Company’s backlog of orders that it believed to be firm was $97,310, all which the Company expects to fill during 2020. As of December 31, 2018, its backlog was $51,495, only $9,433 of which was filled during 2019, because three customers, whose orders totaled $42,062, deferred delivery; these orders remain open and those customers have not withdrawn their deposits. Cash The Company considers all short-term highly liquid investments with an original maturity at the date of purchase of 3 months or less to be cash equivalents. Accounts Receivable Included in “Accounts receivable” on the consolidated balance sheets are amounts primarily related to customers. The Company estimates losses on receivables based on known troubled accounts and historical experience of losses incurred. Receivables are considered impaired and written off when it is probable that all contractual payments due will not be collected in accordance with the terms of the related agreement. Based on experience and the judgment of management, the allowance for doubtful accounts was $0 as of December 31, 2019, and December 31, 2018. Inventories Inventories, which consist of products held for resale, are stated at the lower of cost, determined using the first-in first-out method, and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs to complete and dispose of the product. If the Company identifies excess, obsolete or unsalable items, its inventories are written down to their realizable value in the period in which the impairment is first identified. Shipping and handling costs incurred for inventory purchases and product shipments are recorded in cost of sales in the Company’s consolidated statements of operations. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is provided for on a straight-line basis over the useful lives of the assets. For furniture and fixtures the useful life is 7 years. Machinery, equipment, and computers are depreciated over the useful life of 3 to7 years. Leasehold improvements are depreciated over 2 years and were fully depreciated as of December 31, 2019. Expenditures for additions and improvements are capitalized and repairs and maintenance are expensed as incurred. Goodwill and Intangible Assets Goodwill and intangible assets that have indefinite useful lives are not amortized but are evaluated for impairment annually or whenever events or changes in circumstances indicate that their carrying value may not be recoverable. The Company records intangible assets at fair value, estimated using a discounted cash flow approach. The Company amortizes intangible assets that have finite lives using either the straight-line method or based upon estimated future cash flows to approximate the pattern in which the economic benefit of the assets will be utilized. Amortization is recorded over estimated useful lives ranging from 14 to 20 years. The Company reviews intangible assets subject to amortization at least quarterly to determine if any adverse conditions exist or a change in circumstances has occurred that would indicate impairment or a change in the remaining useful life. Conditions that would indicate impairment and trigger a more frequent than quarterly impairment assessment include, but are not limited to, a significant adverse change in legal factors or business climate that could affect the value of an asset, or an adverse action or assessment by a regulator. If the carrying value of an intangible asset exceeds its undiscounted cash flows, the Company will write down the carrying value to its fair value in the period identified. The Company generally calculates fair value as the present value of estimated future cash flows to be generated by the asset using a risk-adjusted discount rate. If the estimate of an intangible asset’s remaining useful life is changed, the Company will amortize its remaining carrying value prospectively over its revised remaining useful life. The Company has conducted annual impairment test of goodwill during the fourth quarter of each year, commencing in the year ended December 31, 2018, in which year it first acquired intangible assets. The Company operates as a single operating segment with one reporting unit and consequently evaluates goodwill for impairment based upon an evaluation of the fair value of the Company as a whole. The estimation of fair value requires significant judgment. Loss resulting from an impairment test will be reflected in operating income in the Company’s consolidated statements of operations. The annual impairment testing process is subjective and requires judgment at many points. If these estimates or their related assumptions change in the future, the Company may be required to record impairment charges for these assets not previously recorded. In January 2017, FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment Intangible assets, domain names, trademarks and non-compete agreements that are deemed to have a definite life are amortized over their estimate useful lives and intangible assets with an indefinite life are assessed for impairment at least annually. Beginning in 2018, the Company has evaluated quarterly the estimated remaining useful life of its intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization. Convertible Instruments The Company evaluates and accounts for conversion options embedded in convertible instruments in accordance with ASC 815, Derivatives and Hedging Activities. GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free-standing derivative financial instruments according to certain criteria. These criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not remeasured at fair value under otherwise applicable GAAP with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. The Company accounts for convertible instruments when it has been determined that the embedded conversion options should not be bifurcated from their host instruments as follows: the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt. The Company accounts for the conversion of convertible debt when a conversion option has been bifurcated using the general extinguishment standards. Debt- and equity-linked derivatives are removed at their carrying amounts and the shares issued are measured at their then-current fair value, with any difference recorded as a gain or loss on extinguishment of the two separate accounting liabilities. Revenue Recognition In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) No. 20l4-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net); Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing; Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients; Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. The became effective for the Company on January 1, 2018, and were adopted using the modified retrospective method. Adoption of the new revenue standards did not change the Company’s revenue recognition, as the majority of its revenues continue to be recognized when the customer takes control of its product. As the Company did not identify any accounting changes that impacted the amount of reported revenues with respect to its product revenues, no adjustment to retained earnings was required upon adoption of the new revenue standards. Under the new revenue standards, the Company recognizes revenues when a customer obtains control of promised goods or services, or when they are shipped to a customer, in an amount that reflects the consideration that it expects to receive in exchange for them. The Company recognizes revenues following the five-step model prescribed under ASU No. 2014-09: (a) identify contract(s) with a customer; (b) identify the performance obligations in the contract; (c) determine the transaction price; (d) allocate the transaction price to the performance obligations in the contract; and (e) recognize revenues when (or as) the Company satisfies its performance obligation. Revenues from product sales are recognized when a customer obtains control of the Company’s product, which occurs at a point in time, typically upon shipment or delivery to the customer. The Company expenses incremental costs of obtaining a contract as and when incurred if the expected amortization period of the asset that it would have recognized is one year or less or the amount is immaterial. Revenues for the years ended December 31, 2019, and December 31, 2018, were as follows: Year Ended December 31, 2019 2018 Revenues % Revenues % Medtainers ® $ 1,391,296 65 $ 1,374,403 62 Humidity pack inserts 357,218 17 397,875 18 Lighters 140,662 6 134,470 6 Printing 83,442 4 82,617 4 Plastic lighter holders 74,547 3 85,367 4 Shipping charges 65,542 3 86,429 4 Jars 23,370 1 21,498 1 Others 12,389 1 47,671 1 Total Revenues $ 2,148,466 100 $ 2,230,330 100 Share-Based Payments In June 2018, FASB issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, Equity—Equity-Based Payments to Non-Employees. Fair Value Measurements The Company has adopted ASC Topic 820, Fair Value Measurements, The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, is carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. The carrying amounts of the Company’s short- and long-term credit obligations approximate fair value because the effective yields on these obligations, which include contractual interest rates taken together with other features such as concurrent issuances of warrants and/or embedded conversion options, are comparable to rates of returns for instruments of similar credit risk. ASC Topic 820 defines fair value 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. ASC Topic 820 also establishes a fair-value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC Topic 820 describes three levels of inputs that may be used to measure fair value: Level 1 – Quoted prices in active markets for identical assets or liabilities Level 2 – Quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 – Inputs that are unobservable (for example cash flow modeling inputs based on assumptions) As of December 31, 2018, and during the year ended December 31, 2019, the Company had no derivative liability. During the year ended December 31, 2018, the Company accounted for a derivative liability in connection with the conversion feature of convertible debt, classified as a Level 3 liability, as the only financial liability measured at fair value on a recurring basis. Advertising Advertising and marketing expenses are charged to operations as incurred. Income Taxes The Company uses the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, Income Taxes. ASC Topic 740.10.30 clarifies accounting for uncertainty in income taxes recognized in an entity’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The Company has no material uncertain tax positions. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in financial institutions, which at times, may exceed the federal deposit insurance coverage of $250,000. The Company has not experienced losses on these accounts and that it is not exposed to significant risks on such accounts. The Company has not experienced losses on accounts receivable and the Company believe that it is not exposed to significant risks with respect to them. Recent accounting pronouncements In February 2016, FASB issued ASU 2016-02, Leases (Topic 842), The Company does not believe there are any other recently issued, but not yet effective, accounting standards that would have a significant impact on the Company’s financial position or results of operations.

Going Concern

Going Concern	12 Months Ended
	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Going Concern	Note 3 – Going Concern The consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. At December 31, 2019, the Company had a working capital deficit of $1,498,111 and an accumulated deficit of $4,935,363. In addition, the Company has generated operating losses since its inception and has notes payable that are currently in default. These factors, among others, raise substantial doubt about the ability of the Company to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the successful execution of its operating plan, which includes increasing sales of existing products and services, introducing additional products and services, controlling operating expenses, negotiating extensions of overdue notes payable and raising either debt or equity financing. There is no assurance that the Company will be able to any of the measures set forth in the previous sentence.

Intangible Assets

Intangible Assets	12 Months Ended
	Dec. 31, 2019
Intangible Assets
Intangible Assets	Note 4 – Intangible Assets The Company has intangible assets described in the next paragraph that are subject to amortization. Intangible Assets not subject to amortization are tested for impairment at least annually. The Company periodically reviews these and other intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. The Company will recognize an impairment loss when the sum of expected undiscounted future cash flows is less that the carrying amount of the asset, to be measured as the difference between the asset’s estimated fair value and its book value. The costs of intangible assets were included in intangible assets on the consolidated balance sheets and amortized as indicated in the next paragraph. On June 8, 2018, the Company acquired patents and patent applications, a trademark and an internet domain related to Medtainer ® Estimated Asset Valuation at December 31, 2019: Description Weighted Average Gross Carrying Value Accumulated Amortization Net Amount U.S. patents 15 years $ 435,000 $ (44,571) $ 390,429 U.S. patents 15 years 435,000 (42,895) 392,105 Canadian patents 20 years 260,000 (20,224) 239,776 European patents 14 years 30,000 (3,262) 26,738 Molds 15 years 150,000 (15,370) 134,630 Trademark Indefinite life 220,000 — 220,000 Domain name Indefinite life 2,000 — 2,000 Intangible Totals $ 1,532,000 $ (126,322) $ 1,405,678 Goodwill $ 1,020,314 $ — $ 1,020,314 Estimated Asset Valuation at December 31, 2018: Description Weighted Average Gross Carrying Value Accumulated Amortization Net Amount U.S. patents 15 years $ 435,000 $ (16,060) $ 418,940 U.S. patents 15 years 435,000 (15,455) 419,545 Canadian patents 20 years 260,000 (7,286) 252,714 European patents 14 years 30,000 (1,1705) 28,825 Molds 15 years 150,000 (5,538) 144,462 Trademark Indefinite life 220,000 — 220,000 Domain name Indefinite life 2,000 — 2,000 Intangible Totals $ 1,532,000 $ (45,514) $ 1,486,486 Goodwill $ 1,020,314 $ — $ 1,020,314

Property and Equipment

Property and Equipment	12 Months Ended
	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Property and Equipment	Note 5 – Property and Equipment Property and equipment consisted of: December 31, 2019 2018 Furniture and fixtures $ 600 $ 600 Machinery and equipment 109,346 108,181 Leasehold improvements 43,793 43,793 153,739 152,574 Accumulated depreciation (118,459) (90,140) $ 35,280 $ 62,434

Convertible Notes Payable and P

Convertible Notes Payable and Promissory Notes Payable	12 Months Ended
	Dec. 31, 2019
Debt Disclosure [Abstract]
Convertible Notes Payable and Promissory Notes Payable	Note 6 – Convertible Notes Payable and Promissory Notes Payable As of December 31, 2019, and December 31, 2018, the Company had the following convertible notes and promissory notes outstanding: December 31, 2019 December 31, 2018 Accrued Accrued Principal Interest Principal Interest Convertible Notes Payable July 2014 $75,000 note, convertible into common stock $ 66,172 $ 23,712 $ 66,172 $ 17,095 at $5.00 per share, 10% interest, currently in default (a) July 2014 $15,000 note, convertible into common stock 15,000 9,125 15,000 7,625 at $5.00 per share, 10% interest, currently in default (a) $ 81,172 $ 32,837 $ 81,172 $ 24,720 Notes Payable November 2014 $300,000 note, due February 2019, $ 298,959 34,627 298,959 $ 24,913 10% interest, currently in default (b) August 2015 $75,000 note, with one-time interest 75,000 75,000 75,000 75,000 charge of $75,000, currently in default (c) 373,959 109,627 373,959 99,913 Total $ 446,131 $ 142,464 $ 455,131 $ 124,633 a. The Company entered into promissory note conversion agreements in the aggregate amount of $90,000 and made $8,828 payment on them as of December 31, 2019. These notes are convertible into shares of the Company’s common stock at a conversion price of $5.00 per share. The loans under these agreements are non-interest-bearing and have no stated maturity date; however, the Company is accruing interest at a 10% annual rate. b. On November 3, 2014, the Company made a promissory note in the principal amount of $300,000 in favor of an unrelated person (the “Old Note”). On February 22, 2018, the Company repaid $100,000 of the principal of the Old Note and made a new promissory note, dated February 22, 2018, in the principal amount of $298,959 in favor of said party (the “New Note”) in satisfaction of the Old Note, which principal amount comprised the unpaid principal amount of $200,000 due on the Old Note after the repayment, and $98,959 of accrued interest on the Old Note. At December 31, 2019, accrued interest on this note was $34,627. The outstanding balance of this note was $298,959 at December 31, 2019, and December 31, 2018. The New Note was due on February 22, 2019. The Company is negotiating an extension. c. On August 15, 2015, the Company made a promissory note in the principal amount of $150,000 in favor of an unrelated party. The note bears interest at 0.48% per annum, provided that the note is paid on or before maturity date, or 2 percentage points over the Wall Street Journal Prime Rate, if it was not repaid on or before the maturity date. Upon an event of default, as defined in the note, interest will be compounded daily. This note matured on August 11, 2016. During the year ended December 31, 2017, the holder of this note agreed to exchange $75,000 of principal and $663 of interest accrued on this note for 500,000 shares of common stock. This exchange was accounted for as an extinguishment of debt resulting in a loss of $683,337. In connection with this exchange, the Company agreed to pay the holder a fee of $75,000 in consideration of his waiving the default under the promissory note, as additional consideration for his agreeing to the exchange and as compensation for his foregoing the interest that would have accrued on the promissory note at the default rate but for the waiver. At December 31, 2019, and December 31, 2018, the note had a balance of $75,000, in addition to the $75,000 fee included in accrued interest. The Company is currently negotiating an extension of the maturity date of this note.

Stockholders Equity

Stockholders Equity	12 Months Ended
	Dec. 31, 2019
Equity [Abstract]
Stockholders Equity	Note 7 – Stockholders’ Equity On February 12, 2018, the Company issued 120,000 shares of common stock to an unrelated party in consideration of $120,000. On June 8, 2018, the Company issued 2,631,252 shares of common stock, valued at $2,552,314, for the purchase of certain patents and patent applications, a trademark and an internet domain. For information regarding the valuation of these assets and the associated goodwill, see Note 4. On September 25, 2018 the Company issued 57,741 shares of common stock upon conversion of the three convertible promissory notes described in subparagraph (2) of Note 6. On March 22, 2019, the Company implemented a reverse split of its common stock on the basis of one share of common stock for each 100 shares of common stock then outstanding. Also, on that date, the Company reduced the number of shares of its authorized common stock from 6,000,000,000 to 100,000,000. The number of authorized shares of preferred stock remained 10,000,000. The effects of the reverse split have been retroactively applied to all periods presented in the consolidated financial statements.

Share Based Compensation

Share Based Compensation	12 Months Ended
	Dec. 31, 2019
Compensation Related Costs [Abstract]
Share Based Compensation	Note 8 – Share-Based Compensation The Company’s 2018 Incentive Award Plan (the “2018 Plan”) became effective on December 1, 2018, under which the Company may issue up to 2,000,000 shares of common stock as incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, and other forms of compensation to employees, directors and consultants. In addition, the 2018 Plan provides for the grant of performance cash awards to employees, directors and consultants. All these shares were reserved on that date. On December 1, 2018, 1,350,000 shares of common stock were awarded to employees in the form of restricted shares and 335,000 shares of common stock were awarded to consultants as compensation. The fair value of these shares on the grant date was $0.01 per share. As of December 31, 2018, 185,000 shares awarded to consultants were vested and none of the shares awarded to employees were vested. The following table shows vesting for financial reporting purposes under GAAP of the shares issued under the 2018 Plan: Shares of Common Stock Vesting Dates Employees Consultants December 31, 2018 — 185,000 January 1, 2019 750,000 — March 31, 2019 — 150,000 June 30, 2019 300,000 — Total vested at December 31, 2019 1,050,000 335,000 The Company made no awards in any other form during the years ended December 31, 2019, and December 31, 2018. The Company expensed $871,032 and $767,592 for share-based compensation in the years ended December 31, 2019, and December 31, 2018, respectively, for its employees and nonemployees in the accompanying consolidated statements of operations.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Note 9 – Income Taxes As of December 31, 2019, the Company had approximately $3,248,000 of net operating loss carryforwards (“NOLs”) available to reduce future taxable income which will begin to expire in 2035. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the assessment, management has established a full valuation allowance against all the deferred tax assets for every period because it is more likely than not that all of the deferred tax assets will be realized. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “2017 Tax Act”) was signed into law, making significant changes to the Internal Revenue Code. Changes include a federal corporate tax rate decrease from 35% to 21% for tax years beginning after December 31, 2017, the transition of U.S. international taxation from a worldwide tax system to a territorial system and a one-time transition tax on the mandatory deemed repatriation of foreign earnings. The Company has estimated its provision for income taxes in accordance with the 2017 Tax Act and the guidance available and, based thereon, has determined that the 2017 Tax Act does not change the determination that it is more likely than not that all of the deferred tax assets will be realized. Accordingly, the Company has kept the full valuation allowance. As a result, the Company recorded no income tax expense during the year ended December 31, 2019. The reconciliation of the effective tax rate to the federal statutory rate is as follows: December 31, 2019 2018 U.S. federal statutory rate (21% ) (21% ) State income tax, net of federal benefit (7% ) (7% ) Change in valuation allowance 28% 28% 0% 0% The components of deferred tax assets were: December 31, 2019 2018 Net operating loss $ 682,000 $ 563,000 Valuation allowance (682,000 ) (563,000) $ — $ —

Capital Leases

Capital Leases	12 Months Ended
	Dec. 31, 2019
Notes to Financial Statements
Capital Leases	Note 10 – Capital Leases During each of the years ended at December 31, 2017, and December 31, 2016, the Company entered a capitalized equipment lease. Each of these leases was payable in 24 monthly installments of $2,000, including interest at the rate of 19.87% per annum. The lessor under these leases was a related party. The Company made its final payments for these leases during June 2018 and May 2019, respectively.

Related-Party Transactions

Related-Party Transactions	12 Months Ended
	Dec. 31, 2019
Notes to Financial Statements
Related-Party Transactions	Note 11 – Related-Party Transactions Loans The Company has received loans from its officers and directors from time to time since its inception. During the year ended December 31, 2019, the Company received loans of $610,393 from its officers and directors and the Company repaid $368,891 of these loans. During the year ended December 31, 2018, the Company received loans of $348,666 from its officers and directors, and the Company repaid $86,000 of these loans. The balance of these loans at December 31, 2019, and December 31, 2018, was $627,162 and $385,660, respectively. All of these loans are non-interest-bearing and have no set maturity date. The Company expects to repay these loans when cash flows become available. Contracts The Company makes capital lease payments for equipment, building lease payments, and products for resale to an entity owned by a related party, who is also one of its executive officers. Payments made to related parties for the years ended December 31, 2019, and December 31, 2018, were as follows: Year Ended December 31, 2019 2018 Capital lease payments $ 10,000 $ 30,498 Building lease payments 105,319 97,698 Purchase of products for resale 74,416 72,898 Total $ 189,735 $ 201,094

Concentrations

Concentrations	12 Months Ended
	Dec. 31, 2019
Risks and Uncertainties [Abstract]
Concentrations	Note 12 – Concentrations For the year ended December 31, 2019, and December 31, 2018, one of the Company’s customers accounted for approximately 10% and 11%, respectively, of total sales. For the year ended December 31, 2019, the Company purchased approximately 36%, of its products for cost of goods sold from one distributor. For the year ended December 31, 2018, the Company purchased approximately 42% and 39%, respectively, of its products for cost of goods sold from two distributors. For the year ended December 31, 2019, three of the Company’s customers accounted for 34%, 21% and 18% of its accounts receivable. As of December 31, 2018, three of the Company’s customers accounted for 35%, 20% and 11% of its accounts receivable.

Commitments

Commitments	12 Months Ended
	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments	Note 13 – Commitments The Company was committed under an operating lease for its premises, under which it made monthly payments of $7,500, plus 100% of operating expenses, until the lease expired June 30, 2018. On September 1, 2018, the Company entered a new operating lease with an entity owned by a related party calling for monthly payments of $8,641, plus 100% of operating expenses, for a term expiring on August 31, 2019. On September 1, 2019, this was amended such that it will expire on August 31, 2020, and the rent thereunder was increased to $8,967 per month. In conjunction with the Asset Purchase Agreement described in Note 4, the Company agreed to purchase a minimum of 30,000 units of product per month. The minimum purchase quantity will increase by 1% on every anniversary of the agreement’s effective date. The purchase price for units is subject to periodic adjustment for changes in the consumer price index. The agreement will expire on April 30, 2031; however, it can be terminated upon payment of $400,000.

Subsequent events

Subsequent events	12 Months Ended
	Dec. 31, 2019
Subsequent Events [Abstract]
Subsequent events	Note 14 – Subsequent Events In December 2019, an outbreak of a novel strain of coronavirus known as COVID-19 originated in Wuhan, China, and has spread to other countries, including the United States. On March 11, 2020, the World Health Organization declared the outbreak to be a pandemic. A number of jurisdictions in the United States, including the State of California, have declared a state of emergency. Further, the governor of the State of California, where the Company’s headquarters, all of its employees and the manufacturer of its Medtainer ® On May 4, 2020, the Company made a note in favor of Customers Bank in the principal amount of $137,690 pursuant to the terms of the Paycheck Protection Program authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act and pursuant to all regulations and guidance promulgated or provided by the SBA and other Federal agencies that are now, or may become, applicable to the loan. The loan bears interest at the rate of 1% per annum. No interest or principal will be required during the first six months after the loan amount was disbursed, although interest will continue to accrue over this deferral period. After the deferral period and after taking into account any loan forgiveness applicable to the loan pursuant to the program, as approved by SBA, any remaining principal and accrued interest will be payable in substantially equal monthly installments over the remaining 18-month term of the loan, in the amount and according to the payment schedule provided by lender. The loan will be forgiven if its proceeds are used for payroll, mortgage interest, rent, and utilities during the 8-week period beginning on May 4, 2020. However, the amount of loan forgiveness will be reduced if less than 75% of the funds is expended for payroll over that period. Because the Company may not require a number of employees such that it would expend these funds for payroll to that extent, a substantial portion of the loan may not be forgiven. In addition, the amount of the loan to be forgiven and other terms of the loan may be affected by regulations and interpretations that have not yet been adopted or, if presently adopted, are changed. On May 21, 2020, the Company issued 20,000,000 Shares of Common Stock to an unrelated party in consideration of $200,000. Management evaluated all other subsequent events when these financial statements were issued and determined that none of them requires this disclosure herein.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Accounting principles	Accounting Principles The accompanying audited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and with the instructions to Form 10-K and Article 10 of Regulation S-X promulgated by the United States Securities and Exchange Commission (the “SEC”).
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All intercompany balances and transactions have been eliminated.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. Certain of these estimates could be affected by external conditions, including those unique to the Company’s industry, and general economic conditions. It is possible that these external conditions could have an effect on the Company’s estimates that could cause actual results to differ materially from its estimates. The Company re-evaluates all of its accounting estimates at least quarterly based on these conditions and records adjustments when necessary. Significant estimates relied upon in preparing these consolidated financial statements include revenue recognition, accounts receivable reserves, inventory and related reserves, valuations and purchase price allocations related to business combinations, expected future cash flows used to evaluate the recoverability of long-lived assets, estimated fair values of long-lived assets used to record impairment charges related to intangible assets and goodwill, amortization periods, accrued expenses, share-based compensation, and recoverability of the Company’s net deferred tax assets and any related valuation allowance.
Financial Statement Reclassification	Financial Statement Reclassification The Company has recast certain prior period current liabilities on its consolidated balance sheets, consisting of accounts payable and accrued liabilities and expenses, to conform to the current period presentation. The Company also recast for the year ended December 31, 2018, $27,557 of operating expenses to cost of goods sold. This recast of operating expenses to cost of goods sold were made to more accurately reflect the absorption calculations used in the current periods. These items had no impact in the Company’s consolidated statements of operations or net cash from or used in operating, financing, or investing in its consolidated cash flow statements.
Remaining Performance Obligations	Remaining Performance Obligations As of December 31, 2019, the Company’s backlog of orders that it believed to be firm was $97,310, all which the Company expects to fill during 2020. As of December 31, 2018, its backlog was $51,495, only $9,433 of which was filled during 2019, because three customers, whose orders totaled $42,062, deferred delivery; these orders remain open and those customers have not withdrawn their deposits.
Cash	Cash The Company considers all short-term highly liquid investments with an original maturity at the date of purchase of 3 months or less to be cash equivalents.
Accounts Receivable	Accounts Receivable Included in “Accounts receivable” on the consolidated balance sheets are amounts primarily related to customers. The Company estimates losses on receivables based on known troubled accounts and historical experience of losses incurred. Receivables are considered impaired and written off when it is probable that all contractual payments due will not be collected in accordance with the terms of the related agreement. Based on experience and the judgment of management, the allowance for doubtful accounts was $0 as of December 31, 2019, and December 31, 2018.
Inventories	Inventories Inventories, which consist of products held for resale, are stated at the lower of cost, determined using the first-in first-out method, and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs to complete and dispose of the product. If the Company identifies excess, obsolete or unsalable items, its inventories are written down to their realizable value in the period in which the impairment is first identified. Shipping and handling costs incurred for inventory purchases and product shipments are recorded in cost of sales in the Company’s consolidated statements of operations.
Property and Equipment	Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is provided for on a straight-line basis over the useful lives of the assets. For furniture and fixtures the useful life is 7 years. Machinery, equipment, and computers are depreciated over the useful life of 3 to7 years. Leasehold improvements are depreciated over 2 years and were fully depreciated as of December 31, 2019. Expenditures for additions and improvements are capitalized and repairs and maintenance are expensed as incurred.
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill and intangible assets that have indefinite useful lives are not amortized but are evaluated for impairment annually or whenever events or changes in circumstances indicate that their carrying value may not be recoverable. The Company records intangible assets at fair value, estimated using a discounted cash flow approach. The Company amortizes intangible assets that have finite lives using either the straight-line method or based upon estimated future cash flows to approximate the pattern in which the economic benefit of the assets will be utilized. Amortization is recorded over estimated useful lives ranging from 14 to 20 years. The Company reviews intangible assets subject to amortization at least quarterly to determine if any adverse conditions exist or a change in circumstances has occurred that would indicate impairment or a change in the remaining useful life. Conditions that would indicate impairment and trigger a more frequent than quarterly impairment assessment include, but are not limited to, a significant adverse change in legal factors or business climate that could affect the value of an asset, or an adverse action or assessment by a regulator. If the carrying value of an intangible asset exceeds its undiscounted cash flows, the Company will write down the carrying value to its fair value in the period identified. The Company generally calculates fair value as the present value of estimated future cash flows to be generated by the asset using a risk-adjusted discount rate. If the estimate of an intangible asset’s remaining useful life is changed, the Company will amortize its remaining carrying value prospectively over its revised remaining useful life. The Company has conducted annual impairment test of goodwill during the fourth quarter of each year, commencing in the year ended December 31, 2018, in which year it first acquired intangible assets. The Company operates as a single operating segment with one reporting unit and consequently evaluates goodwill for impairment based upon an evaluation of the fair value of the Company as a whole. The estimation of fair value requires significant judgment. Loss resulting from an impairment test will be reflected in operating income in the Company’s consolidated statements of operations. The annual impairment testing process is subjective and requires judgment at many points. If these estimates or their related assumptions change in the future, the Company may be required to record impairment charges for these assets not previously recorded. In January 2017, FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment Intangible assets, domain names, trademarks and non-compete agreements that are deemed to have a definite life are amortized over their estimate useful lives and intangible assets with an indefinite life are assessed for impairment at least annually. Beginning in 2018, the Company has evaluated quarterly the estimated remaining useful life of its intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization.
Convertible Instruments	Convertible Instruments The Company evaluates and accounts for conversion options embedded in convertible instruments in accordance with ASC 815, Derivatives and Hedging Activities. GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free-standing derivative financial instruments according to certain criteria. These criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not remeasured at fair value under otherwise applicable GAAP with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. The Company accounts for convertible instruments when it has been determined that the embedded conversion options should not be bifurcated from their host instruments as follows: the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt. The Company accounts for the conversion of convertible debt when a conversion option has been bifurcated using the general extinguishment standards. Debt- and equity-linked derivatives are removed at their carrying amounts and the shares issued are measured at their then-current fair value, with any difference recorded as a gain or loss on extinguishment of the two separate accounting liabilities.
Revenue Recognition	Revenue Recognition In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) No. 20l4-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net); Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing; Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients; Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. The became effective for the Company on January 1, 2018, and were adopted using the modified retrospective method. Adoption of the new revenue standards did not change the Company’s revenue recognition, as the majority of its revenues continue to be recognized when the customer takes control of its product. As the Company did not identify any accounting changes that impacted the amount of reported revenues with respect to its product revenues, no adjustment to retained earnings was required upon adoption of the new revenue standards. Under the new revenue standards, the Company recognizes revenues when a customer obtains control of promised goods or services, or when they are shipped to a customer, in an amount that reflects the consideration that it expects to receive in exchange for them. The Company recognizes revenues following the five-step model prescribed under ASU No. 2014-09: (a) identify contract(s) with a customer; (b) identify the performance obligations in the contract; (c) determine the transaction price; (d) allocate the transaction price to the performance obligations in the contract; and (e) recognize revenues when (or as) the Company satisfies its performance obligation. Revenues from product sales are recognized when a customer obtains control of the Company’s product, which occurs at a point in time, typically upon shipment or delivery to the customer. The Company expenses incremental costs of obtaining a contract as and when incurred if the expected amortization period of the asset that it would have recognized is one year or less or the amount is immaterial. Revenues for the years ended December 31, 2019, and December 31, 2018, were as follows: Year Ended December 31, 2019 2018 Revenues % Revenues % Medtainers ® $ 1,391,296 65 $ 1,374,403 62 Humidity pack inserts 357,218 17 397,875 18 Lighters 140,662 6 134,470 6 Printing 83,442 4 82,617 4 Plastic lighter holders 74,547 3 85,367 4 Shipping charges 65,542 3 86,429 4 Jars 23,370 1 21,498 1 Others 12,389 1 47,613 1 Total Revenues $ 2,148,466 100 $ 2,230,330 100
Share-Based Payments	Share-Based Payments In June 2018, FASB issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, Equity—Equity-Based Payments to Non-Employees.
Fair Value Measurements	Fair Value Measurements The Company has adopted ASC Topic 820, Fair Value Measurements, The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, is carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. The carrying amounts of the Company’s short- and long-term credit obligations approximate fair value because the effective yields on these obligations, which include contractual interest rates taken together with other features such as concurrent issuances of warrants and/or embedded conversion options, are comparable to rates of returns for instruments of similar credit risk. ASC Topic 820 defines fair value 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. ASC Topic 820 also establishes a fair-value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC Topic 820 describes three levels of inputs that may be used to measure fair value: Level 1 – Quoted prices in active markets for identical assets or liabilities Level 2 – Quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 – Inputs that are unobservable (for example cash flow modeling inputs based on assumptions) As of December 31, 2018, and during the year ended December 31, 2019, the Company had no derivative liability. During the year ended December 31, 2018, the Company accounted for a derivative liability in connection with the conversion feature of convertible debt, classified as a Level 3 liability, as the only financial liability measured at fair value on a recurring basis.
Advertising	Advertising Advertising and marketing expenses are charged to operations as incurred.
Income Taxes	Income Taxes The Company uses the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, Income Taxes. ASC Topic 740.10.30 clarifies accounting for uncertainty in income taxes recognized in an entity’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The Company has no material uncertain tax positions.
Concentration of Credit Risk	Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in financial institutions, which at times, may exceed the federal deposit insurance coverage of $250,000. The Company has not experienced losses on these accounts and that it is not exposed to significant risks on such accounts. The Company has not experienced losses on accounts receivable and the Company believe that it is not exposed to significant risks with respect to them.
Recent accounting pronouncements	Recent accounting pronouncements In February 2016, FASB issued ASU 2016-02, Leases (Topic 842), The Company does not believe there are any other recently issued, but not yet effective, accounting standards that would have a significant impact on the Company’s financial position or results of operations.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2019
Summary Of Significant Accounting Policies Tables
Schedule of revenuees	Revenues for the years ended December 31, 2019, and December 31, 2018, were as follows: Year Ended December 31, 2019 2018 Revenues % Revenues % Medtainers ® $ 1,391,296 65 $ 1,374,403 62 Humidity pack inserts 357,218 17 397,875 18 Lighters 140,662 6 134,470 6 Printing 83,442 4 103,234 4 Plastic lighter holders 74,547 3 85,367 4 Shipping charges 65,542 3 86,429 4 Jars 23,370 1 21,498 1 Others 12,389 1 17,358 1 Total Revenues $ 2,148,466 100 $ 2,230,330 100

Intangible Assets (Tables)

Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Estimated Asset Valuation at December 31, 2019: Description Weighted Average Gross Carrying Value Accumulated Amortization Net Amount U.S. patents 15 years $ 435,000 $ (44,571) $ 390,429 U.S. patents 15 years 435,000 (42,895) 392,105 Canadian patents 20 years 260,000 (20,224) 239,776 European patents 14 years 30,000 (3,262) 26,738 Molds 15 years 150,000 (15,370) 134,630 Trademark Indefinite life 220,000 — 220,000 Domain name Indefinite life 2,000 — 2,000 Intangible Totals $ 1,532,000 $ (126,322) $ 1,405,678 Goodwill $ 1,020,314 $ — $ 1,020,314 Estimated Asset Valuation at December 31, 2018: Description Weighted Average Gross Carrying Value Accumulated Amortization Net Amount U.S. patents 15 years $ 435,000 $ (16,060) $ 418,940 U.S. patents 15 years 435,000 (15,455) 419,545 Canadian patents 20 years 260,000 (7,286) 252,714 European patents 14 years 30,000 (1,1705) 28,825 Molds 15 years 150,000 (5,538) 144,462 Trademark Indefinite life 220,000 — 220,000 Domain name Indefinite life 2,000 — 2,000 Intangible Totals $ 1,532,000 $ (45,514) $ 1,486,486 Goodwill $ 1,020,314 $ — $ 1,020,314

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and equipment consisted of: December 31, 2019 2018 Furniture and fixtures $ 600 $ 600 Machinery and equipment 109,346 108,181 Leasehold improvements 43,793 43,793 153,739 152,574 Accumulated depreciation (118,459) (90,140) $ 35,280 $ 62,434

Convertible Notes Payable and_2

Convertible Notes Payable and Promissory Notes Payable (Tables)	12 Months Ended
	Dec. 31, 2019
Convertible Notes Payable And Promissory Notes Payable
Schedule of Convertible Notes Payable and Promissory Notes Payable	December 31, 2019 December 31, 2018 Accrued Accrued Principal Interest Principal Interest Convertible Notes Payable July 2014 $75,000 note, convertible into common stock $ 66,172 $ 23,712 $ 66,172 $ 17,095 at $5.00 per share, 10% interest, currently in default (a) July 2014 $15,000 note, convertible into common stock 15,000 9,125 15,000 7,625 at $5.00 per share, 10% interest, currently in default (a) $ 81,172 $ 32,837 $ 81,172 $ 24,720 Notes Payable November 2014 $300,000 note, due February 2019, $ 298,959 34,627 298,959 $ 24,913 10% interest, currently in default (b) August 2015 $75,000 note, with one-time interest 75,000 75,000 75,000 75,000 charge of $75,000, currently in default (c) 373,959 109,627 373,959 99,913 Total $ 446,131 $ 142,464 $ 455,131 $ 124,633

Share Based Compensation (Table

Share Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2019
Share Based Compensation Tables Abstract
Schedule of share based compensation	Shares of Common Stock Vesting Dates Employees Consultants December 31, 2018 — 185,000 January 1, 2019 750,000 — March 31, 2019 — 150,000 June 30, 2019 300,000 — Total vested at December 31, 2019 1,050,000 335,000

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2019
Income Taxes Tables Abstract
Schedule of tax rate	December 31, 2019 2018 U.S. federal statutory rate (21% ) (21% ) State income tax, net of federal benefit (8% ) (7% ) Change in valuation allowance 28% 28% 0% 0%
Schedule of deferred tax assets	The components of deferred tax assets were: December 31, 2019 2018 Net operating loss $ 682,000 $ 563,000 Valuation allowance (682,000 ) (563,000) $ — $ —

Related-Party Transactions (Tab

Related-Party Transactions (Tables)	12 Months Ended
	Dec. 31, 2019
Related-party Transactions
Schedule of related party transactions	Year Ended December 31, 2019 2018 Capital lease payments $ 10,000 $ 30,498 Building lease payments 105,319 97,698 Purchase of products for resale 74,416 72,898 Total $ 189,735 $ 201,094

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Revenues (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Summary Of Significant Accounting Policies - Revenues
Medtainers®, Revenue	$ 1,391,296	$ 1,374,403
Medtainers®, Percentage	65.00%	62.00%
Humidity pack inserts, Revenue	$ 357,218	$ 397,875
Humidity pack inserts, Percentage	17.00%	18.00%
Lighters, Revenue	$ 140,662	$ 134,470
Lighters, Percentage	6.00%	6.00%
Printing, Revenue	$ 83,442	$ 82,617
Printing, Percentage	4.00%	4.00%
Plastic lighter holders, Revenue	$ 74,547	$ 85,367
Plastic lighter holders, Percentage	3.00%	4.00%
Shipping charges, Revenue	$ 65,542	$ 86,429
Shipping charges, Percentage	3.00%	4.00%
Jars, Revenue	$ 23,370	$ 21,498
Jars, Percentage	1.00%	1.00%
Others, Revenue	$ 12,389	$ 47,613
Others, Percentage	1.00%	1.00%
Total Revenues, Revenue	$ 2,148,466	$ 2,230,330
Total Revenues, Percentage	100.00%	100.00%

Going Concern (Details Narrativ

Going Concern (Details Narrative)	Dec. 31, 2019USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Working Capital Deficit	$ 1,498,111

Intangible Assets (Details)

Intangible Assets (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Net Amount	$ 1,405,678	$ 1,486,486
Certain US Patents 1
Weighted Average Estimated Useful Life	15 years	15 years
Gross Carrying Value	$ 435,000	$ 435,000
Accumulated Amortization	(44,571)	(16,060)
Net Amount	$ 390,429	$ 418,940
Certain US Patents 2
Weighted Average Estimated Useful Life	15 years	15 years
Gross Carrying Value	$ 435,000	$ 435,000
Accumulated Amortization	(42,895)	(15,455)
Net Amount	$ 392,105	$ 419,545
Certain Canadian Patents
Weighted Average Estimated Useful Life	20 years	20 years
Gross Carrying Value	$ 260,000	$ 260,000
Accumulated Amortization	(20,224)	(7,286)
Net Amount	$ 239,776	$ 252,714
Certain European Patents
Weighted Average Estimated Useful Life	14 years	14 years
Gross Carrying Value	$ 30,000	$ 30,000
Accumulated Amortization	(3,262)	(1,175)
Net Amount	$ 26,738	$ 28,825
Molds
Weighted Average Estimated Useful Life	15 years	15 years
Gross Carrying Value	$ 150,000	$ 150,000
Accumulated Amortization	(15,370)	0
Net Amount	134,630	2,000
Trademark
Gross Carrying Value	220,000	220,000
Accumulated Amortization	0	(5,538)
Net Amount	220,000	144,462
Domain Name
Gross Carrying Value	2,000	2,000
Accumulated Amortization	0	0
Net Amount	2,000	220,000
Intangible Totals
Gross Carrying Value	1,532,000	1,532,000
Accumulated Amortization	(126,322)	(45,514)
Net Amount	1,405,678	1,486,486
Goodwill
Gross Carrying Value	1,020,314	1,020,314
Net Amount	$ 1,020,314	$ 1,020,314

Property and Equipment - Proper

Property and Equipment - Property and Equipment (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Property and Equipment, Gross	$ 153,739	$ 152,574
Accumulated Depreciation	(118,459)	(90,140)
Property and Equipment, Net	35,280	62,437
Furniture and Fixtures
Property and Equipment, Gross	600	600
Machinery and Equipment
Property and Equipment, Gross	109,346	108,181
Leasehold Improvements
Property and Equipment, Gross	$ 43,793	$ 43,793

Convertible Notes Payable and_3

Convertible Notes Payable and Promissory Notes Payable (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
July 2014 $75,000 note, convertible into common stock at $5.00 per share, 10% interest, currently in default (a)
Principal	$ 66,172	$ 66,172
Accrued Interest	23,712	17,095
July 2014 $15,000 note, convertible into common stock at $5.00 per share, 10% interest, currently in default (a)
Principal	15,000	15,000
Accrued Interest	9,125	7,625
November 2014 $300,000 note, due February 2019, 10% interest, currently in default (b)
Principal	298,959	298,959
Accrued Interest	34,627	24,913
August 2015 $75,000 note, with one-time interest charge of $75,000, currently in default (c)
Principal	75,000	75,000
Accrued Interest	$ 75,000	$ 75,000

Share Based Compensation (Detai

Share Based Compensation (Details)	12 Months Ended
	Dec. 31, 2019USD ($)
December 31, 2018
Employees
Consultants	185,000
January 1, 2019
Employees	750,000
Consultants
March 31, 2019
Employees
Consultants	150,000
June 30, 2019
Employees	300,000
Consultants
Total vested at December 31, 2019
Employees	1,050,000
Consultants	$ 335,000

Income Taxes (Details)

Income Taxes (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income Taxes Details Abstract
US Federal statutory rate	(21.00%)	(21.00%)
State income tax, net of federal benefit	(7.00%)	(7.00%)
Change in valuation allowance	28.00%	28.00%
Total	0.00%	0.00%

Income Taxes (Details 1)

Income Taxes (Details 1) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Income Taxes Details 1Abstract
Net operating loss	$ 682,000	$ 563,000
Valuation allowance	(682,000)	(563,000)
Total	$ 0	$ 0

Related-Party Transactions (Det

Related-Party Transactions (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Relatedparty Transactions Details Abstract
Capital lease payments	$ 10,000	$ 30,498
Building lease payments	105,319	97,698
Purchase of products for resale	74,416	72,898
Total	$ 189,735	$ 201,094

Concentrations (Details Narrati

Concentrations (Details Narrative)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Purchase Commitment [Member]
Concentration risk percentage	21.00%	20.00%