Advanced Container (ACTX) 10-Q 16 Nov 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Nov. 16, 2020
Document And Entity Information
Entity Registrant Name	ADVANCED CONTAINER TECHNOLOGIES, INC.,
Entity Central Index Key	0001096950
Document Type	10-Q
Document Period End Date	Sep. 30, 2020
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 Common Stock, Shares Outstanding		51,006,524
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2020

Balance Sheets

Balance Sheets - USD ($)	Sep. 30, 2020	Dec. 31, 2019
CURRENT ASSETS:
Cash	$ 170,762	$ 17,982
Accounts receivable	100,803	108,836
Inventories	153,661	85,215
Prepaid inventories	12,000
Prepaid expenses	10,436	8,967
TOTAL CURRENT ASSETS	447,662	221,000
Property and equipment, net of accumulated depreciation of $134,364 and $118,459, respectively	59,378	35,280
Intangible assets, net of accumulated amortization of $186,928 and $126,322, respectively	1,345,072	1,405,678
Goodwill	1,020,314	1,020,314
Security deposits	8,699	7,699
TOTAL ASSETS	2,881,125	2,689,971
CURRENT LIABILITIES:
Accounts payable and accrued expenses	355,807	234,635
Accrued interest payable	120,427	142,464
Payroll liabilities payable	223,831	162,409
Customer deposits payable	74,495	97,310
Convertible notes payable	81,172	81,172
Notes payable	373,959	373,959
Payroll Protection Program note payable	79,715
Loans payables - stockholders	439,602	627,162
TOTAL CURRENT LIABILITIES	1,749,008	1,719,111
LONG –TERM LIABILITIES:
Paycheck Protection Program loan	57,975
Loan payable - stockholder	108,791
TOTAL LONG –TERM LIABILITIES	166,766
TOTAL LIABILITIES	1,915,774	1,719,111
SHAREHOLDERS' EQUITY DEFICIENCY
Preferred stock, $0.00001 par value: 10,000,000 shares authorized; 1,000,000 shares designated Series A Convertible Preferred Stock; 1,000,000 outstanding at September 30, 2020, and 0 shares outstanding at December 31, 2019	10
Common stock, $0.00001 par value, 100,000,000 shares authorized; 1,001,446 shares issued and outstanding at September 30, 2020, and 961,034 shares issued and outstanding at December 31, 2019	10	10
Additional paid In capital	6,404,279	5,906,213
Accumulated deficit	(5,438,948)	(4,935,363)
TOTAL STOCKHOLDERS' EQUITY	965,351	970,860
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 2,881,125	$ 2,689,971

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Office Equipment Net Depreciation	$ 134,364	$ 118,459
Intangible Assets, net of accumulated amortization	$ 186,928	$ 126,322
Preferred Stock Par Value	$ 0.00001	$ 0.00001
Preferred Stock Shares Authorized	10,000,000	10,000,000
Preferred Stock Shares Issued	1,000,000	1,000,000
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	1,001,446	961,034
Common Stock Shares Outstanding	1,001,446	961,034

Statements of Operations

Statements of Operations - USD ($)	3 Months Ended		6 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Jun. 30, 2019	Sep. 30, 2020
Income Statement [Abstract]
Revenues	$ 671,853	$ 526,143	$ 1,562,206	$ 1,521,022
Cost of goods sold	349,087	271,444	742,928	767,133
Gross profit	322,766	254,699	819,278	753,889
Operating expenses:
Advertising and marketing	1,428	23,654	51,289	12,755
Bad Debt	862			33,332
Depreciation and amortization	24,787	27,087	82,734	73,307
Professional fees	38,015	6,730	72,213	133,425
Share Based Compernsation		150,676	720,356	298,077
Payroll	106,958	281,523	880,532	516,004
General and administrative	54,476	31,857	108,692	172,064
Total operating expenses	226,526	521,527	1,915,816	1,238,964
Operating profit (loss)	96,240	(266,828)	(1,096,538)	(485,075)
Non-operating expense)
EIDL grant				10,000
Interest expense	(9,503)	(9,503)	(28,988)	(28,510)
Non-operating (expense), net	(9,503)	(9,503)	(28,988)	(18,510)
Incom (loss) before income taxes	86,737	(276,331)	(1,125,526)	(503,585)
Income tax provision
Net income (loss)	$ 86,737	$ (276,331)	$ (849,195)	$ (503,585)
Basic profit (loss) per common share	$ 0.09	$ (0.29)	$ (1.18)	$ (0.61)
Diluted profit (loss) per common share	$ 0.07	$ (0.29)	$ (1.16)	$ (0.44)
Basic weighted average common shares outstanding	1,001,446	957,681	956,843	826,121
Diluted weighted average common shares outstanding	1,308,013	966,118	966,118	1,136,047

Statements of Cash Flows

Statements of Cash Flows - USD ($)	6 Months Ended	9 Months Ended
	Jun. 30, 2019	Sep. 30, 2020
OPERATING ACTIVITIES:
Net loss	$ (849,195)	$ (503,585)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	22,128	15,902
Share-based Compensation	720,356	298,076
Amortization	60,606	60,606
Bad debt		33,332
Decrease (increase) in operating assets:
Accounts receivable	(12,672)	(25,299)
Inventories	2,210	(68,446)
Prepaid inventories		(12,000)
Prepaid expenses	(5,750)	(1,469)
Payment of security deposits		(1,000)
Accounts payable and accrued expenses	100,786	121,172
Accrued interest payable	18,510	(22,037)
Payroll liabilities payable	16,243	61,422
Customer deposits payable	32,757	(22,815)
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES	(170,352)	(66,141)
INVESTING ACTIVITIES:
Acquisition of property and equipment	(1,165)	(40,000)
NET CASH USED IN NVESTING ACTIVITIES	(1,165)	(40,000)
FINANCING ACTIVITIES:
Proceeds from issuance of common stock		200,000
Proceeds from Paycheck Protection Program		137,690
Principal payments on capital lease obligations	(9,522)
Proceeds from stockholder loan	516,327	168,868
Repayment of stockholder loan	(337,619)	(247,637)
NET CASH PROVIDED BY FINANCING ACTIVITIES	169,186	258,921
INCREASE IN CASH	(2,331)	152,780
CASH - BEGINNING OF YEAR	17,374	17,982
CASH - END OF YEAR	$ 15,043	$ 170,762

Shareholders Equity

Shareholders Equity - USD ($)	Series A Preferred Stock	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Beginning Balance, Shares at Dec. 31, 2018		940,663
Beginning Balance, Value at Dec. 31, 2018		$ 9	$ 5,035,182	$ (3,526,913)	$ 1,508,278
Common stock issued in reverse split		32
Share Based Compensation, Shares		20,339
Share Based Compensation, Amount		$ 1	569,679		569,680
Net loss				(849,195)	(849,195)
Ending Balance, Shares at Jun. 30, 2019		961,034
Ending Balance, Value at Jun. 30, 2019		$ 10	5,604,861	(4,376,108)	1,228,763
Share Based Compensation, Amount			150,676		150,676
Net loss				(276,331)	(276,331)
Ending Balance, Shares at Sep. 30, 2019		961,034
Ending Balance, Value at Sep. 30, 2019		$ 10	5,755,537	(4,652,439)	1,103,108
Beginning Balance, Shares at Dec. 31, 2019		961,034
Beginning Balance, Value at Dec. 31, 2019		$ 10	5,906,213	(4,935,363)	970,860
Issuance of common stock in private placement, Shares		338,983
Issuance of common stock in private placement, Value		$ 3	199,997		200,000
Share Based Compensation, Shares		5,085
Share Based Compensation, Amount			298,076		298,076
Adjustment for fractional shares issued		1,429
Net loss				(590,322)	(590,322)
Ending Balance, Shares at Jun. 30, 2020		1,306,531
Ending Balance, Value at Jun. 30, 2020		$ 13	6,404,286	(5,525,685)	878,614
Beginning Balance, Shares at Dec. 31, 2019		961,034
Beginning Balance, Value at Dec. 31, 2019		$ 10	5,906,213	(4,935,363)	970,860
Net loss					(503,585)
Ending Balance, Shares at Sep. 30, 2020	1,000,000	1,001,446
Ending Balance, Value at Sep. 30, 2020	$ 10	$ 10	6,404,279	(5,438,948)	965,351
Beginning Balance, Shares at Jun. 30, 2020		1,306,531
Beginning Balance, Value at Jun. 30, 2020		$ 13	6,404,286	(5,525,685)	878,614
Shares retired in exchange for Series A preferred stock, Shares		(305,085)
Shares retired in exchange for Series A preferred stock, Value		$ (3)	3
Issuance of Series A preferred shares, Shares	1,000,000
Issuance of Series A preferred shares, Value	$ 10		(10)
Net loss				86,737	86,737
Ending Balance, Shares at Sep. 30, 2020	1,000,000	1,001,446
Ending Balance, Value at Sep. 30, 2020	$ 10	$ 10	$ 6,404,279	$ (5,438,948)	$ 965,351

Business

Business	9 Months Ended
	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business	Note 1 – BUSINESS Advanced Container Technologies, Inc. (the “Company”) is in the businesses of (i) selling and distributing hydroponic containers called “AgPods” (the “AgPod Business”) and (ii) designing, branding and selling proprietary plastic medical grade containers that can store pharmaceuticals, herbs, teas and other solids or liquids and can grind solids and shred herbs, as well as selling other products such as humidity control inserts, smell-proof bags, lighters, and plastic lighter holders, and providing private labeling and branding for purchasers of the Company’s containers and the other products (the “Container Business”). The Company changed its corporate name to Advanced Container Technologies, Inc. on October 3, 2020, and entered into the AgPod Business on October 9, 2020, upon its acquisition of all of the shares of Advanced Container Technologies, Inc., a California corporation (“ACT”) that was incorporated on June 2, 2020. For further information regarding this acquisition, see Note 14. On October 9, 2020, the Company transferred substantially all of the assets and certain liabilities relating to the Container Business to its wholly owned subsidiary, Med X Technologies, Inc., a California corporation (“Med X”) that was incorporated on August 27, 2020. For further information regarding this acquisition, see Note 14. Prior to January 1, 2019, the Company conducted its various businesses through wholly owned subsidiaries. Since January 1, 2019, the Company has conducted all of its sales, production and distribution under the parent entity. On October 8, 2020, the outstanding shares of the Company’s common were reverse split, such that every 59 shares then outstanding were combined into one share of common stock. The share and per-share data contained in this current report, including the financial statements that are part hereof, have been adjusted to reflect this reverse split and the 1-for-100 reverse split that occurred on March 22, 2019. For further information, see Note 14.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2 – SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the United States Securities and Exchange Commission (the “SEC”). Accordingly, they do not contain all information and footnotes required by GAAP for annual financial statements. In the opinion of the Company’s management, the accompanying unaudited financial statements contain all the adjustments necessary (consisting only of normal recurring accruals) to present the financial position of the Company as of September 30, 2020, and the results of operations and cash flows for the periods presented. The results of operations for the nine months ended September 30, 2020, are not necessarily indicative of the operating results for the full fiscal year or any future period. These unaudited consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on May 28, 2020. Principles of Consolidation These unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. 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 the Company’s estimates could be affected by external conditions, including those unique to its 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. Cash The Company considers all short-term highly liquid investments with an original maturity at the date of purchase of three 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 September 30, 2020, and December 31, 2019. For the nine months ended September 30, 2020, and September 30, 2019, the Company recorded $33,332 and $0 in bad debt, respectively. 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 goods sold 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 5 years. Leasehold improvements are depreciated over the 2-year lease term. Expenditures for additions and improvements are capitalized; 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 the carrying value may not be recoverable. The Company records intangible assets at fair value, estimated using a discounted cash flow approach. The Company amortizes its intangible assets that have finite lives using either the straight-line method or base on 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 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 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 the remaining carrying value of the intangible asset prospectively over the revised remaining useful life. The Company conducted its annual impairment test of goodwill during the fourth quarter of the year ended December 31, 2019. The Company operates as a single operating segment with one reporting unit and consequently evaluates goodwill for impairment base on an evaluation of the fair value of the Company as a whole. The estimation of fair value requires significant judgement. Any loss resulting from an impairment test will be reflected in operating expense in the Company’s consolidated statements of income. 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 There was no impairment of intangible assets, long-lived assets or goodwill during the nine months ended September 30, 2020. 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. Revenue Recognition In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) No. 20 l4-09, 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 new revenue standards became effective for the Company on January 1, 2018, and were adopted using the modified retrospective method. The 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. Under the new revenue standards, the Company recognizes revenues when its customer obtains control of promised goods or services, or when they are shipped to that customer, in an amount that reflects the consideration which it expects to receive in exchange for them. The Company recognizes revenues following the five- step model prescribed under ASU No. 2014-09: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) the Company satisfies its performance obligation. Revenues from product sales are recognized when the 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. The following table summarizes revenue from contracts with customers for the three months and the nine months ended September 30, 2020, and September 30, 2019: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Product $ 644,729 $ 501,156 $ 1,447,679 $ 1,502,240 Service 27,124 24,987 73,343 59,966 Total $ 671,853 $ 526,143 $ 1,521,022 $ 1,562,206 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 the provisions of 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) Advertising Advertising and marketing expenses are charged to operations as incurred. For the three months ended September 30, 2020, and September 30, 2019, the Company expensed $1,428 and $23,654, respectively. For the nine months ended September 30, 2020, and September 30, 2019, the Company expensed $12,755 and $51,289, respectively. 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 the accounting for uncertainty in income taxes recognized in an enterprise’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 a financial institution, which at times, may exceed the Federal depository insurance coverage (FDIC) of $250,000 per account. The Company has not experienced losses on these accounts and management believes that the Company is not exposed to significant risks on such accounts. The Company recorded bad debt of $862 and $33,332 for the three and nine months ended September 30, 2020, respectively, on accounts receivable. For the nine months ended September 30, 2019, the Company did not record bad debt. Accounting for Leases In February 2016, FASB issued ASU 2016-02, Leases (Topic 842),

Going Concern

Going Concern	9 Months Ended
	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Going Concern	Note 3 – Going Concern The accompanying 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 September 30, 2020, the Company had a working capital deficit of $1,301,346. 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 while introducing additional products and services, controlling operating expenses, negotiating extensions of existing loans and raising either debt or equity financing. There is no assurance that the Company will be able to increase sales or to obtain or extend financing on acceptable terms, or at all, or successfully execute any of the other measures set forth in the previous sentence.

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 30, 2020
Intangible Assets
Intangible Assets	Note 4 – Intangible Assets Intangible assets that are subject to amortization are reviewed for potential impairment whenever events or circumstances indicate that carrying amounts may not be recoverable. Assets not subject to amortization are tested for impairment at least annually. The Company has intangible assets subject to amortization as described in the next paragraph. These costs were included in intangible assets on the balance sheet and amortized as indicated in the next paragraph. The Company will periodically review these and other intangible assets for impairment that it may acquire 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. On June 8, 2018, the Company acquired certain patents and patent applications, a trademark and an internet domain related to “Medtainer ® Balances at September 30, 2020: Weighted Average Gross Carrying Accumulated Description Estimated Useful Life Value Amortization Net Amount Certain U.S. patents 15 years $ 435,000 $ (65,957 ) $ 369,043 Certain U.S. patents 15 years 435,000 (63,476 ) 371,524 Certain Canadian patents 20 years 260,000 (29,925 ) 230,075 Certain European patents 14 years 30,000 (4,827 ) 25,173 Molds 15 years 150,000 (22,743 ) 127,257 Trademark Indefinite life 220,000 — 220,000 Domain name Indefinite life 2,000 — 2,000 Intangible Totals $ 1,532,000 $ (186,928 ) $ 1,345,072 Goodwill $ 1,020,314 — $ 1,020,314 Balances at December 31, 2019: Weighted Average Gross Carrying Accumulated Description Estimated Useful Life Value Amortization Net Amount Certain U.S. patents 15 years $ 435,000 $ (44,571 ) $ 390,429 Certain U.S. patents 15 years 435,000 (42,895 ) 392,105 Certain Canadian patents 20 years 260,000 (20,224 ) 239,776 Certain 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

Convertible Notes Payable and N

Convertible Notes Payable and Notes Payable	9 Months Ended
	Sep. 30, 2020
Debt Disclosure [Abstract]
Convertible Notes Payable and Notes Payable	Note 5 – Convertible Notes Payable and Notes Payable As of September 30, 2020, and December 31, 2019, the Company had the following convertible notes and promissory notes outstanding: September 30, 2020 December 31, 2019 Principal Accrued Principal Accrued Convertible Notes Payable (a) July 2014 $75,000 Note convertible into common stock at $295 per share, 10% interest, in default $ 66,172 $ 28,674 $ 66,172 $ 23,712 July 2014 $15,000 Note convertible into common stock at $295 per share, 10% interest, in default 15,000 10,250 15,000 9,125 Total Convertible Notes Payable $ 81,172 $ 38,924 $ 81,172 $ 32,837 Notes Payable November 2014 $300,000 Note, 10% interest, due February 2019, in default (b) $ 298,959 $ 6,503 $ 298,959 $ 34,627 August 2015 $75,000 Note, with a one-time interest charge of $75,000, in default (c) 75,000 75,000 75,000 75,000 Total Promissory Notes Payable $ 373,959 $ 81,503 $ 373,959 $ 109,627 Total $ 455,131 $ 120,427 $ 455,131 $ 142,464 a. The Company entered into promissory note conversion agreements in the aggregate amount of $90,000. Payments of $8,828 have been made on these notes as of September 30, 2020. 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 on 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 September 30, 2020, accrued interest on this note was $6,503. The outstanding balance of this note was $298,959 at September 30, 2020, and December 31, 2019. The New Note was due on February 22, 2019. The Company is negotiating an extension. The Company made interest payments in the amount of $20,182 and $50,976 during the 12 months ended December 31, 2019, and the nine months ended September 30, 2020. c. On August 15, 2015, the Company made a promissory note in the 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 is not repaid on or before the maturity date. This note matured on August 11, 2016. Upon an event of default, as defined in the note, interest shall be compounded daily. The Company is currently negotiating an extension of the maturity date for the balance. During the year ended December 13, 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 September 30, 2020, and December 31, 2019, the note had a balance of $75,000 in addition to the $75,000 fee included in accrued interest.

Paycheck Protection Loan

Paycheck Protection Loan	9 Months Ended
	Sep. 30, 2020
Notes to Financial Statements
Paycheck Protection Loan	Note 6 – Paycheck Protection Loan 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 Small Business Administration (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 and has a 2-year term. On June 5, 2020, the CARES Act was amended by the Paycheck Protection Program Flexibility Act of 2020. The Company has recognized $79,715 as a short-term loan and $57,975 as a long term loan. Under the CARES Act, as so amended, • The loan will be forgiven if its proceeds are used for payroll, mortgage interest, rent, and utilities during the 24-week period beginning on May 4, 2020, although the Company may elect to utilize the 8-week period that was in effect prior to the amendment (such 24- or 8-week period being the “covered period”). The Company has not determined whether it will make this election. The amount of loan forgiveness will be reduced if less than 60% of the funds is expended for payroll over the covered period. • No interest or principal will be required until the date on which the amount of forgiveness determined is remitted to the lender, 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 the SBA, any remaining principal and accrued interest will be payable in substantially equal monthly installments over the remaining loan term, in the amount and according to the payment schedule provided by the lender. • Under the amendment to the CARES Act, the Company may apply to the lender to extend the term of the loan to 5 years and expects to do so, but no assurance can be given that the lender will agree to the extension. • The Company may delay the payment of employer payroll taxes until December 31, 2021, with respect to up to 50% of the amounts due and December 31, 2022, with respect to the remaining amounts due up to 50%.

Stockholders Equity

Stockholders Equity	9 Months Ended
	Sep. 30, 2020
Equity [Abstract]
Stockholders Equity	Note 7 – Stockholders’ Equity On March 22, 2019, the Company implemented a reverse split of its common stock on the basis of one new 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. On May 21, 2020, the Company issued 338,983 shares of Common Stock to an unrelated party in consideration of $200,000. On July 30, 2020, the Company filed a certificate of amendment with the Secretary of State of the State of Florida, pursuant to which a series of 1,000,000 of its 10,000,000 authorized shares was created, which series is named Series A Convertible Preferred Stock (“Series A Preferred Stock”). Each share of Series A Preferred Stock is convertible into 18 shares of Common Stock, has the dividend and distribution rights and redemption rights of the shares of Common Stock into which it is convertible, is not redeemable and has voting power equal to the combined voting power of all other of classes and series of the Company’s capital stock. On July 31, 2020, the Company entered into an Employment Agreement with its chief executive officer. Under this agreement, which has a 5-year term that began on August 1, 2020, he receives an initial salary of $195,000 per year; is entitled to an annual incentive based on the Company’s performance and other criteria determined by the Board of Directors, not to exceed 20% of the sum of the Company’s net income plus certain non-cash expenses for each year; is eligible for long-term compensation and other benefits to the same extent as other senior executives. Under the Employment Agreement, the Company agreed to exchange 305,085 of his shares of common stock for 1,000,000 shares of Series A Preferred Stock; upon the consummation of this exchange, these shares, together with his 20,848 remaining shares of common stock, gave him voting control of the Company. In the event that his employment is terminated by him for Good Reason or by the Company otherwise than for Cause, he will be entitled to receive 2.99 times his then current salary as severance pay, pro rata annual incentive, vesting of awards under long-term plans and certain health care and disability benefits. In the event of his disability, he will be entitled to benefits similar to those described in the previous sentence, but not to severance pay. The Employment Agreement defines “Good Reason” as any of the following events: (i) the Board’s materially and adversely changing his duties, authority or responsibilities, otherwise than as permitted by The Employment Agreement, (ii) the Board’s requiring him to report to any person or body other than the Board, (iii) the Board’s or the Company’s reducing his base salary or incentive opportunities, (iv) the Company’s relocating its principal place of business so as to result in an increase in the Executive’s one-way commute of more than thirty (30) miles, (v) prior to August 1, 2021, the Company’s failure to pay his base salary to the extent that the Company is able to do while meeting its current trade obligations or (vi) on and after August 1, 2021, the Company’s failure to pay his base salary earned on and after that date as and when due. The events described in clauses (i)-(iv) may be cured, but those described in clauses (v) and (vi) may not be cured. The Employment Agreement defines “Cause” as (i) his conviction of or entry of a plea of guilty or nolo contendere to any felony involving moral turpitude, fraud, theft, breach of trust or other similar acts, that has a substantial and adverse effect on his qualifications or ability to perform his duties, (ii) his engaging in conduct constituting willful misconduct, gross negligence or fraud that results in significant economic harm to the Company or (iii) after February 28, 2021, his continued failure substantially to perform his duties, if such failure is not remedied within 45 days after he receives from the Board written notice thereof, specifying in reasonable detail the particulars of such continued failure. In the nine months ended September 30, 2020, the Company reconciled the effects of fractional shares to the number of shares held as outstanding by the stock transfer agent and reflected the net difference of 1,429 shares in the consolidated statement of stockholders’ equity.

Share Based Compensation

Share Based Compensation	9 Months Ended
	Sep. 30, 2020
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 the 2018 Plan, the Company may issue up to 33,898 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, 22,882 shares of common stock were awarded to employees in the form of restricted shares and 5,678 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, 31,356 shares awarded to consultants were vested and none of the shares awarded to employees were vested. During the nine months ended September 30, 2019, 2,542 shares awarded to consultants vested and 17,797 shares awarded to employees were vested. During the nine months ended September 30, 2020, 5,095 shares awarded to employees vested. During the nine months ended September 30, 2020, all of the shares awarded to employees were vested. The Company made no awards in any other form during the nine months ending September 30, 2020, and September 30, 2019. The Company expensed $298,076 and $720,356 for share-based compensation in the nine months ended September 30, 2020, and September 30, 2019, respectively, for its employees and nonemployees in the accompanying consolidated statements of operations. The following table summarizes vesting for financial reporting purposes under GAAP of the common stock issued under the 2018 Plan: Vesting Dates Employees Consultants December 31, 2018 — 3,136 January 1, 2019 12,712 — March 31, 2019 — 2,542 June 30, 2019 5,085 — June 30, 2020 5,085 — Total shares vested at September 30, 2020 22,882 5,678

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Note 9 – Income Taxes The Company had approximately $3,248,000 net operating loss carryforwards (“NOLs”) that are available to reduce future taxable income as of December 31, 2019, 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 not 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 has kept the full valuation allowance. As a result, the Company recorded no income tax expense during the nine months ended September 30, 2020.

Capital Leases

Capital Leases	9 Months Ended
	Sep. 30, 2020
Notes to Financial Statements
Capital Leases	Note 10 – Capital Leases During each of the years ended 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	9 Months Ended
	Sep. 30, 2020
Notes to Financial Statements
Related-Party Transactions	Note 11 – Related-Party Transactions Loans The Company has received loans from stockholders from time to time since 2014. During the nine months ended September 30, 2020, the Company received loans of $168,868 from its officers and directors and repaid $247,637. The balances of these loans at September 30, 2020, and December 31, 2019, were $548,393 and $627,162, respectively. At September 30, 2020, the balance of one of these loans was $174,066, which bears interest at the Applicable Federal Rate, and is to be repaid commencing January 1, 2021, in equal monthly payments until its maturity on December 1, 2023. The balance of the other loan is non-interest-bearing and has no fixed maturity date; the Company expects to repay this loan when cash flows become available. Contracts The Company makes capital lease payments for equipment, building lease payments, and products for resale from an entity owned by a related party, who is also one of its executive officers. Payments made to the related party for the three months and the nine months ended September 30, 2019, and September 30, 2018, were as follows: Three Months Ended Nine Months Ended September 30, 2020 2019 2020 2019 Capital lease payments $ — $ — $ — $ 10,000 Building lease payments 27,613 26,574 81,495 78,417 Equipment purchase 40,000 — 40,000 — Purchase of products for resale 21,419 16,530 49,411 68,559 Total paid to related party $ 89,032 $ 43,104 $ 170,906 $ 156,976

Concentrations

Concentrations	9 Months Ended
	Sep. 30, 2020
Risks and Uncertainties [Abstract]
Concentrations	Note 12 – Concentrations For the nine months ended September 30, 2020, and September 30, 2019, one of the Company’s customers accounted for approximately 8% and 11% of total sales; respectively. For the three months ended September 30, 2020, and September 30, 2019, one of the Company’s customers accounted for approximately 13% and 10%, respectively, of total sales. For the nine months ended September 30, 2020, the Company purchased approximately 55% and 18% of its products for cost from two distributors. For the nine months ended September 30, 2019, the Company purchased approximately 43% and 33% of its products from two distributors. For the three months ended September 30, 2020, the Company purchased approximately 57% and 12% of its products from two distributors. For the three months ended September 30, 2019, the Company purchased approximately 42% and 41% of its products from two distributors. As of September 30, 2020, one of the Company’s customers accounted for 46% of its accounts receivable, and another accounted for 10% of its accounts receivable. As of December 31, 2019, three of the Company’s customers accounted for 34%, 21% and 18%, respectively.

Commitments

Commitments	9 Months Ended
	Sep. 30, 2020
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 (see Note 10) calling for monthly payments of $8,641, plus 100% of operating expenses, for a term expiring on August 31, 2019. On September 1, 2019, the lease of the Company’s premises was amended such that it expires on August 31, 2020, and the rent thereunder was increased to $8,967 per month. On September 1, 2020, the lease of the Company’s premises was amended such that it expires on August 31, 2021, and the rent thereunder was increased to $9,007 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% every anniversary of its effective date. The purchase price for units is subject to periodic adjustment for changes in the consumer price index. The agreement expires on April 30, 2031; however, it can be terminated by a payment of $400,000.

Subsequent events

Subsequent events	9 Months Ended
	Sep. 30, 2020
Subsequent Events [Abstract]
Subsequent events	Note 14 – Subsequent Events The Company entered into an Exchange Agreement, dated as of August 14, 2020, by and among the Company, ACT and all of the shareholders of ACT (the “Shareholders”). The Exchange Agreement was amended on September 9, 2020. The closing under the Exchange Agreement, as so amended, occurred on October 9, 2020, upon the satisfaction of certain conditions precedent, which are described below, such that the Shareholders exchanged, on a pro rata basis, their shares in ACT for 50,000,000 shares of the Common Stock. As a result of the exchange, ACT became the wholly owned subsidiary of the Company. Simultaneously with closing, substantially all of the Company’s assets and certain liabilities relating to the Container Business were assigned to and assumed by Med X. Among the above conditions precedent were (i) the Company’s filing of a certificate of amendment to its articles of incorporation, whereby (A) the Company’s corporate name was changed to Advanced Container Technologies, Inc. (the “Name Change”), and (B) the outstanding shares of the Company’s common stock were reverse split , such that every 59 outstanding shares were combined into one new share (the “Reverse Split”) and (ii) the processing by the Financial Industry Regulatory Authority, Inc. of an Issuer Company-Related Action Notification Form in relation to the Name Change and the Reverse Split. As a result of the Name Change, which occurred on October 3, 2020, the Company’s corporate name became Advanced Container Technologies, Inc. As a result of the Reverse Split, the number of outstanding shares of the Company’s Common Stock was reduced to 1,001,860 immediately prior to the exchange. By virtue of the consummation of the exchange, in which the Company issued 50,000,000 shares of Common Stock to the Shareholders on October 9, 2020. There are 51,001,860 shares of the Company’s Common Stock outstanding. ACT and GP Solutions, Inc. (“GP”) entered into a Distributorship Agreement, dated as of August 6, 2020 (the “Distributorship Agreement”), under which GP granted to ACT the exclusive right to sell and distribute GP’s products within the United States and its territories. GP’s products AgPods. The Distributorship Agreement has an initial term that will expire on December 31, 2025. ACT may renew the Distributorship Agreement indefinitely as long as it purchases the lesser of (i) 100 AgPods or (ii) GP’s total output of AgPods in the last calendar year of any term. ACT has no business other than that which it conducts under the Distributorship Agreement. Management has evaluated all other subsequent events when these financial statements were issued and has determined that none of them requires disclosure herein.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the United States Securities and Exchange Commission (the “SEC”). Accordingly, they do not contain all information and footnotes required by GAAP for annual financial statements. In the opinion of the Company’s management, the accompanying unaudited financial statements contain all the adjustments necessary (consisting only of normal recurring accruals) to present the financial position of the Company as of September 30, 2020, and the results of operations and cash flows for the periods presented. The results of operations for the nine months ended September 30, 2020, are not necessarily indicative of the operating results for the full fiscal year or any future period. These unaudited consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on May 28, 2020.
Principles of Consolidation	Principles of Consolidation These unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. 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 the Company’s estimates could be affected by external conditions, including those unique to its 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.
Cash	Cash The Company considers all short-term highly liquid investments with an original maturity at the date of purchase of three 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 September 30, 2020, and December 31, 2019. For the nine months ended September 30, 2020, and September 30, 2019, the Company recorded $33,332 and $0 in bad debt, respectively.
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 goods sold 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 5 years. Leasehold improvements are depreciated over the 2-year lease term. Expenditures for additions and improvements are capitalized; 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 the carrying value may not be recoverable. The Company records intangible assets at fair value, estimated using a discounted cash flow approach. The Company amortizes its intangible assets that have finite lives using either the straight-line method or base on 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 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 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 the remaining carrying value of the intangible asset prospectively over the revised remaining useful life. The Company conducted its annual impairment test of goodwill during the fourth quarter of the year ended December 31, 2019. The Company operates as a single operating segment with one reporting unit and consequently evaluates goodwill for impairment base on an evaluation of the fair value of the Company as a whole. The estimation of fair value requires significant judgement. Any loss resulting from an impairment test will be reflected in operating expense in the Company’s consolidated statements of income. 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 There was no impairment of intangible assets, long-lived assets or goodwill during the nine months ended September 30, 2020.
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.
Revenue Recognition	Revenue Recognition In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) No. 20 l4-09, 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 new revenue standards became effective for the Company on January 1, 2018, and were adopted using the modified retrospective method. The 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. Under the new revenue standards, the Company recognizes revenues when its customer obtains control of promised goods or services, or when they are shipped to that customer, in an amount that reflects the consideration which it expects to receive in exchange for them. The Company recognizes revenues following the five- step model prescribed under ASU No. 2014-09: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) the Company satisfies its performance obligation. Revenues from product sales are recognized when the 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. The following table summarizes revenue from contracts with customers for the three months and the nine months ended September 30, 2020, and September 30, 2019: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Product $ 644,729 $ 501,156 $ 1,447,679 $ 1,502,240 Service 27,124 24,987 73,343 59,966 Total $ 671,853 $ 526,143 $ 1,521,022 $ 1,562,206
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 the provisions of 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)
Advertising	Advertising Advertising and marketing expenses are charged to operations as incurred. For the three months ended September 30, 2020, and September 30, 2019, the Company expensed $1,428 and $23,654, respectively. For the nine months ended September 30, 2020, and September 30, 2019, the Company expensed $12,755 and $51,289, respectively.
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 the accounting for uncertainty in income taxes recognized in an enterprise’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 a financial institution, which at times, may exceed the Federal depository insurance coverage (FDIC) of $250,000 per account. The Company has not experienced losses on these accounts and management believes that the Company is not exposed to significant risks on such accounts. The Company recorded bad debt of $862 and $33,332 for the three and nine months ended September 30, 2020, respectively, on accounts receivable. For the nine months ended September 30, 2019, the Company did not record bad debt.
Accounting for Leases	Accounting for Leases In February 2016, FASB issued ASU 2016-02, Leases (Topic 842),

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2020
Summary Of Significant Accounting Policies Tables
Schedule of revenuees	Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Product $ 644,729 $ 501,156 $ 1,447,679 $ 1,502,240 Service 27,124 24,987 73,343 59,966 Total $ 671,853 $ 526,143 $ 1,521,022 $ 1,562,206

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Balances at September 30, 2020: Weighted Average Gross Carrying Accumulated Description Estimated Useful Life Value Amortization Net Amount Certain U.S. patents 15 years $ 435,000 $ (65,957 ) $ 369,043 Certain U.S. patents 15 years 435,000 (63,476 ) 371,524 Certain Canadian patents 20 years 260,000 (29,925 ) 230,075 Certain European patents 14 years 30,000 (4,827 ) 25,173 Molds 15 years 150,000 (22,743 ) 127,257 Trademark Indefinite life 220,000 — 220,000 Domain name Indefinite life 2,000 — 2,000 Intangible Totals $ 1,532,000 $ (186,928 ) $ 1,345,072 Goodwill $ 1,020,314 — $ 1,020,314 Balances at December 31, 2019: Weighted Average Gross Carrying Accumulated Description Estimated Useful Life Value Amortization Net Amount Certain U.S. patents 15 years $ 435,000 $ (44,571 ) $ 390,429 Certain U.S. patents 15 years 435,000 (42,895 ) 392,105 Certain Canadian patents 20 years 260,000 (20,224 ) 239,776 Certain 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

Convertible Notes Payable and P

Convertible Notes Payable and Promissory Notes Payable (Tables)	9 Months Ended
	Sep. 30, 2020
Convertible Notes Payable And Promissory Notes Payable
Schedule of Convertible Notes Payable and Promissory Notes Payable	September 30, 2020 December 31, 2019 Principal Accrued Principal Accrued Convertible Notes Payable (a) July 2014 $75,000 Note convertible into common stock at $295 per share, 10% interest, in default $ 66,172 $ 28,674 $ 66,172 $ 23,712 July 2014 $15,000 Note convertible into common stock at $295 per share, 10% interest, in default 15,000 10,250 15,000 9,125 Total Convertible Notes Payable $ 81,172 $ 38,924 $ 81,172 $ 32,837 Notes Payable November 2014 $300,000 Note, 10% interest, due February 2019, in default (b) $ 298,959 $ 6,503 $ 298,959 $ 34,627 August 2015 $75,000 Note, with a one-time interest charge of $75,000, in default (c) 75,000 75,000 75,000 75,000 Total Promissory Notes Payable $ 373,959 $ 81,503 $ 373,959 $ 109,627 Total $ 455,131 $ 120 ,427 $ 455,131 $ 142,464

Share Based Compensation (Table

Share Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2020
Share Based Compensation Tables Abstract
Schedule of share based compensation	Vesting Dates Employees Consultants December 31, 2018 — 3,136 January 1, 2019 12,712 — March 31, 2019 — 2,542 June 30, 2019 5,085 — June 30, 2020 5,085 — Total shares vested at September 30, 2020 22,882 5,678

Related-Party Transactions (Tab

Related-Party Transactions (Tables)	9 Months Ended
	Sep. 30, 2020
Related-party Transactions
Schedule of related party transactions	Three Months Ended Nine Months Ended September 30, 2020 2019 2020 2019 Capital lease payments $ — $ — $ — $ 10,000 Building lease payments 27,613 26,574 81,495 78,417 Equipment purchase 40,000 — 40,000 — Purchase of products for resale 21,419 16,530 49,411 68,559 Total paid to related party $ 89,032 $ 43,104 $ 170,906 $ 156,976

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Revenues (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2020	Sep. 30, 2019
Summary Of Significant Accounting Policies - Revenues
Product	$ 644,729	$ 501,156	$ 1,447,679	$ 1,502,240
Service	27,124	24,987	73,343	59,966
Total	$ 671,853	$ 526,143	$ 1,521,022	$ 1,562,206

Going Concern (Details Narrativ

Going Concern (Details Narrative)	Sep. 30, 2020USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Working Capital Deficit	$ 1,301,346

Intangible Assets (Details)

Intangible Assets (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Net Amount	$ 1,345,072	$ 1,405,678
Certain US Patents 1
Weighted Average Estimated Useful Life	15 years	15 years
Gross Carrying Value	$ 435,000	$ 435,000
Accumulated Amortization	(65,957)	(44,571)
Net Amount	$ 369,043	$ 390,429
Certain US Patents 2
Weighted Average Estimated Useful Life	15 years	15 years
Gross Carrying Value	$ 435,000	$ 435,000
Accumulated Amortization	(63,476)	(42,895)
Net Amount	$ 371,524	$ 392,105
Certain Canadian Patents
Weighted Average Estimated Useful Life	20 years	20 years
Gross Carrying Value	$ 260,000	$ 260,000
Accumulated Amortization	(29,925)	(20,224)
Net Amount	$ 230,075	$ 239,776
Certain European Patents
Weighted Average Estimated Useful Life	14 years	14 years
Gross Carrying Value	$ 30,000	$ 30,000
Accumulated Amortization	(4,827)	(3,262)
Net Amount	$ 25,173	$ 26,738
Molds
Weighted Average Estimated Useful Life	15 years	15 years
Gross Carrying Value	$ 150,000	$ 2,000
Accumulated Amortization	(22,743)
Net Amount	127,257	2,000
Trademark
Gross Carrying Value	220,000	150,000
Accumulated Amortization		(15,370)
Net Amount	220,000	134,630
Domain Name
Gross Carrying Value	2,000	220,000
Accumulated Amortization
Net Amount	2,000	220,000
Intangible Totals
Gross Carrying Value	1,532,000	1,532,000
Accumulated Amortization	(186,928)	(126,322)
Net Amount	1,345,072	1,405,678
Goodwill
Gross Carrying Value	1,020,314	1,020,314
Net Amount	$ 1,020,314	$ 1,020,314

Convertible Notes Payable and_2

Convertible Notes Payable and Promissory Notes Payable (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
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	28,674	23,712
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	10,250	9,125
November 2014 $300,000 note, due February 2019, 10% interest, currently in default (b)
Principal	298,959	298,959
Accrued Interest	6,503	34,627
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)	9 Months Ended
	Sep. 30, 2019USD ($)
December 31, 2018
Employees
Consultants	3,136
January 1, 2019
Employees	12,712
Consultants
March 31, 2019
Employees
Consultants	2,542
June 30, 2019
Employees	5,085
Consultants
June 30, 2020
Employees	5,085
Consultants
Total vested at June 30, 2020
Employees	22,882
Consultants	$ 5,678

Related-Party Transactions (Det

Related-Party Transactions (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Relatedparty Transactions Details Abstract
Capital lease payments				$ 10,000
Building lease payments	27,613	26,574	81,495	78,417
Equipment purchase	40,000		40,000
Purchase of products for resale	21,419	16,530	49,411	68,559
Total paid to related party	$ 89,032	$ 43,104	$ 170,906	$ 156,976

Concentrations (Details Narrati

Concentrations (Details Narrative)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Risks and Uncertainties [Abstract]
Concentration risk percentage	8.00%	11.00%