HighCom Global Security (HCGS) 10-Q 14 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 01, 2016
Document And Entity Information
Entity Registrant Name	BLASTGARD INTERNATIONAL INC.
Entity Central Index Key	1,102,358
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		366,976,178
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,016

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Current assets
Cash	$ 133,223	$ 109,251
Accounts receivable	1,412,904	980,972
Inventory	1,921,291	1,206,222
Prepaid and other current assets	23,750	20,000
Total current assets	3,491,168	2,316,445
Property & equipment, net	176,594	171,107
Intangible property, net	136,190	148,379
Goodwill	2,061,649	2,061,649
Deposits	10,254	10,254
Total Assets	5,875,855	4,707,834
Current liabilities
Accounts payable	1,132,435	755,879
Accrued expenses	107,021	124,966
Customer deposits and deferred revenue	6,589	80,919
Current portion notes payable	701,617	311,257
Total current liabilities	1,947,662	1,273,021
Contingent liability
Notes payable, net of current portion		300,000
Derivative liability, net	172,304	20,742
Total liabilities	2,119,966	1,593,763
Stockholders' Equity
Preferred Stock, 1,000 shares authorized; $.001 par value; 0 and 0 issued and outstanding
Common Stock, $.001 par value, 500,000,000 shares authorized; 366,976,178 and 336,976,178 shares issued and outstanding respectively	366,976	336,976
Additional paid-in capital	18,100,382	17,791,640
Minority interest	23,685	13,264
Accumulated deficit	(14,735,154)	(15,027,809)
Total stockholders' equity	3,755,889	3,114,071
Total Liabilities and Stockholders' Equity	$ 5,875,855	$ 4,707,834

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Preferred Stock shares authorized	1,000	1,000
Preferred Stock par value	$ 0.001	$ 0.001
Preferred Stock shares issued	0	0
Preferred Stock shares outstanding	0	0
Common Stock par value	$ 0.001	$ 0.001
Common Stock shares authorized	500,000,000	500,000,000
Common Stock shares issued	366,976,178	336,976,178
Common Stock shares outstanding	366,976,178	336,976,178

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Revenues	$ 2,812,357	$ 532,891	$ 4,757,632	$ 4,461,761
Direct costs	1,854,910	320,722	3,157,034	2,557,352
Gross Profit	957,447	212,169	1,600,598	1,904,409
Operating expenses:
General and administrative	515,635	263,289	1,284,593	1,020,018
Research and Development	43,386	7,564	57,699	35,760
Stock based compensation	38,742	173,131	38,742	257,989
Amortization and depreciation	18,759	13,380	56,096	38,280
Total operating expenses	616,522	457,364	1,437,130	1,352,047
Operating income (loss)	340,925	(245,195)	163,468	552,362
Non-operating activity
Other income (expense)		(45,000)		(45,000)
Gains (losses) on settlement of debt			300,200
Gain (loss) on derivative liability	(107,620)	439,762	(63,361)	112,518
Interest expenses	(34,282)	(37,542)	(97,231)	(112,075)
Total other income (expense)	(141,902)	357,220	139,608	(44,557)
Income(loss) before income taxes	199,023	112,025	303,076	507,805
Less minority interest income(loss)	(6,982)	1,786	(10,421)	(14,918)
Net Income(loss)	$ 192,041	$ 113,811	$ 292,655	$ 492,887
Earnings (loss) per share:
Basic
Dilutive
Weighted average shares outstanding
Basic	366,976,178	328,960,205	364,238,952	328,592,670
Dilutive	366,976,178	349,136,788	364,238,952	359,102,302

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash Flows from Operating Activities:
Net (loss) income	$ 292,655	$ 492,887
Adjustment to reconcile Net Income to net cash (used) provided by operations:
Minority interest (gain) loss	10,421	14,918
Impairment loss on investment		45,000
Stock based compensation	38,742	257,989
Depreciation and amortization	56,096	38,280
Amortization of debt discount	88,201	87,878
Gain on settlement of debt	(300,200)
(Gain) loss on derivative	63,361	(112,518)
Changes in assets and liabilities:
Accounts receivable	(431,932)	(133,569)
Inventory	(715,069)	(399,098)
Other operating assets	(3,750)	(8,000)
Accounts payable and accruals	658,811	(52,039)
Customer deposits	(74,330)	(179,998)
Net Cash (Used) Provided by Operating Activities	(316,994)	51,731
Cash Flows from Investing Activities:
Purchase of property and equipment	(7,087)	(52,799)
Net Cash Used by Investing Activities	(7,087)	(52,799)
Cash Flows from Financing Activities:
Proceeds from issuance of note payable	655,190	226,610
Repayments of notes payable	(307,137)	(173,922)
Net Cash Provided by Financing Activities	348,053	52,688
Net increase/decrease in Cash	23,972	51,620
Cash at beginning of period	109,251	15,187
Cash at end of period	133,223	66,807
Supplemental cash flow information:
Interest paid	6,860	20,508
Taxes paid
Supplemental Schedule of Noncash Investing and Financing Activities
January 2016, the Company issued 30,000,000 common shares in satisfaction of $300,000 of convertible debt	300,000
January 2016, the Company financed the acquisition of certain equipment through a promissory note in the amount of $42,307.	$ 42,307

Consolidated Statements of Cas6

Consolidated Statements of Cash Flows (Parenthetical) - shares	1 Months Ended
	Jan. 31, 2016	Nov. 30, 2015	Sep. 30, 2015
Statement of Cash Flows [Abstract]
Number of common stock issued in satisfaction of convertible debt	30,000,000	5,570,321	3,000,000

Consolidated Statement of Chang

Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Paid Additional In Capital [Member]	Minority Interest [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2014	$ 328,405	$ 17,356,271	$ (11,282)	$ (16,016,905)	$ 1,656,489
Balance, shares at Dec. 31, 2014	328,405,857
Stock issued as satisfaction of debt	$ 8,571	77,382			85,953
Stock issued as satisfaction of debt, shares	8,570,321
Options issued for services		357,987			357,987
Net Income			24,546	989,096	1,013,642
Balance at Dec. 31, 2015	$ 336,976	17,791,640	13,264	(15,027,809)	3,114,071
Balance, shares at Dec. 31, 2015	336,976,178
Stock issued as satisfaction of debt	$ 30,000	270,000			300,000
Stock issued as satisfaction of debt, shares	30,000,000
Options issued for services		38,742			38,742
Net Income			10,421	292,655	303,076
Balance at Sep. 30, 2016	$ 366,976	$ 18,100,382	$ 23,685	$ (14,735,154)	$ 3,755,889
Balance, shares at Sep. 30, 2016	366,976,178

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Basis of Presentation	(1) Basis of Presentation The consolidated balance sheet as of September 30, 2016, the consolidated statements of operations for the three and nine months ended September 30, 2016 and 2015, and consolidated statements of cash flows for the nine months ended September 30, 2016 and 2015 have been prepared by us without audit. In the opinion of Management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments) necessary to present fairly in all material respects our financial position as of September 30, 2016 and results of operations for the three and nine months ended September 30, 2016 and 2015, and cash flows for the nine months ended September 30, 2016 and 2015. The results of operations and cash flows for the periods indicated above are not necessarily indicative of the results to be expected for the full year. This report should be read in conjunction with our Form 10-K for our fiscal year ended December 31, 2015. All material intercompany transactions have been eliminated. BlastGard International, Inc. (the “Company”) was incorporated on September 26, 2003 as BlastGard Technologies, Inc. (“BTI”) in the State of Florida, to design and market proprietary blast mitigation materials. The Company created, designs, develops and markets proprietary blast mitigation materials. The Company’s patent-pending BlastWrap® technology effectively mitigates blast effects and suppresses post-blast fires. The Company sub-contracts the manufacturing of products to licensed and qualified production facilities. The Company went public through a shell merger on January 31, 2004. On March 31, 2004, the Company changed its name to BlastGard International, Inc. On March 4, 2011, the Company completed the acquisition of HighCom Securities, Inc and subsidiaries. These financial statements include the assets liabilities and activity of the following: BlastGard International, Inc. ® BlastGard Technologies Inc. is a dormant Florida corporation. HighCom Securities, Inc. Going Concern The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustments relating to the recoverability of assets and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company’s continuation as a going concern was dependent upon its ability to generate sufficient cash flow to meet its obligations on a timely basis and ultimately to attain profitability. The Company plans to continue to generate necessary cash flows through operations. However, should the Company’s sales not provide sufficient cash flow; the Company can raise additional working capital through debt and/or equity financings. There is no assurance the Company will be successful in producing sufficient sales revenues or obtaining additional funding through debt and equity financings. Business Segments Although the Company accounts for its operations in two separate corporations, all of its business operations are associated with Security for Individuals and Property. BlastGard International, Inc. primarily provides for corporate administration, and only has incidental sales of an immaterial amount. HighCom sales represent in excess of 99% of total sales. Therefore the Company has determined that all business operations should be aggregated together and not reported as separate operating segments. Accounting Policies Principles of Consolidation These consolidated financial statements include the assets and liabilities of BlastGard International, Inc. and its subsidiaries as of September 30, 2016 and December 31, 2015. All material intercompany transactions have been eliminated. Use of Estimates The preparation of financial statements in accordance with generally accepted accounting principles required management to make estimates and assumptions that affected the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considered all highly liquid debt instruments with original maturities of three months or less when acquired to be cash equivalents. Financial Instruments The carrying amounts of cash, receivables and current liabilities approximated fair value due to the short-term maturity of the instruments. Debt obligations were carried at cost, which approximated fair value due to the prevailing market rate for similar instruments. Fair Value Measurement All financial and nonfinancial assets and liabilities were recognized or disclosed at fair value in the financial statements. This value was evaluated on a recurring basis (at least annually). Generally accepted accounting principles in the United States define 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 a measurement date. The accounting principles also established a fair value hierarchy which required an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Three levels of inputs were used to measure fair value. Level 1: Quotes market prices in active markets for identical assets or liabilities. Level 2: Observable market based inputs or unobservable inputs that were corroborated by market data. Level 3: Unobservable inputs that were not corroborated by market data. Accounts Receivable Accounts receivable consisted of amounts due from customers based in the United States and abroad. The Company considered accounts more than 30 days old to be past due. The Company used the allowance method for recognizing bad debts. When an account was deemed uncollectible, it was written off against the allowance. The Company generally does not require collateral for its accounts receivable. Management deems all accounts receivable to be collectable at September 30, 2016. Inventory Inventory was stated at the lower of cost (first-in, first-out) or market. Market was generally considered to be net realizable value. Inventory consisted of materials used to manufacture the Company’s product and finished goods ready for sale. Property and Equipment Property and equipment were stated at cost. Depreciation was calculated using the straight-line method over the estimated useful lives of the related assets, ranging from three to seven years. Expenditures for additions and improvements were capitalized, while repairs and maintenance costs were expensed as incurred. The cost and related accumulated depreciation of property and equipment sold or otherwise disposed of were removed from the accounts and any gain or loss was recorded in the year of disposal. Impairment of Long-Lived Assets The Company evaluates the carrying value of its long-lived assets at least annually. Impairment losses were recorded on long-lived assets used in operations when indicators of impairment were present and the undiscounted future cash flows estimated to be generated by those assets were less than the assets’ carrying amount. If such assets were impaired, the impairment to be recognized was measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of were reported at the lower of the carrying value or fair value, less costs to sell. Debt Issue Costs The costs related to the issuance of debt were capitalized and amortized to interest expense using the straight-line method over the lives of the related debt. The straight-line method results in amortization that was not materially different from that calculated under the effective interest Revenue Recognition The Company recognizes revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability is reasonably assured. The Company’s product and return policy allows for merchandise purchased directly from the Company to be returned after obtaining a Return Authorization Number during the 30 day period following date of shipment by the Company for a refund of the purchase price. Research and Development Research and development costs were expensed as incurred. Research and development costs totaled $43,386 and $7,564 for the three months ended September 30, 2016 and 2015, respectively. Research and development costs totaled $57,699 and $35,760 for the nine months ended September 30, 2016 and 2015, respectively. Advertising Advertising costs for tradeshows and social media were expensed as incurred. Advertising costs of $48,615 and $48,960 were incurred during the nine months ended September 30, 2016 and 2015, respectively. Shipping and Freight Costs The Company includes shipping costs in cost of goods sold. Income Taxes Income taxes were provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related primarily to differences between the recorded book basis and the tax basis of assets and liabilities for financial and income tax reporting. Deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities were recovered or settled. Deferred tax assets were also recognized for operating losses that were available to offset future taxable income and tax credits that were available to offset future federal income taxes, less the effect of any allowances considered necessary. The company use guidance provided by ASC-740-10, Accounting for Uncertainty in Income Taxes, for reporting uncertain tax provisions. Stock-based Compensation We use the Black-Scholes option pricing model to estimate the fair value of stock-based awards on the date of grant, using assumptions for volatility, expected term, risk-free interest rate and dividend yield. We have used one grouping for the assumptions as our option grants were primarily basic with similar characteristics. The expected term of options granted has been derived based upon our history of actual exercise behavior and represents the period of time that options granted were expected to be outstanding. Historical data was also used to estimate option exercises and employee terminations. Estimated volatility was based upon our historical market price at consistent points in a period equal to the expected life of the options. The risk-free interest rate was based on the U.S. Treasury yield curve in effect at the time of grant and the dividend yield was based on the historical dividend yield. Compensation expense for stock based compensation is recognized over the vesting period. Income (Loss) per Common Share Basic net loss per share excludes the impact of common stock equivalents. Diluted net income (loss) per share utilizes the average market price per share when applying the treasury stock method in determining common stock equivalents. As of September 30, 2016, there were 38,000,000 vested common stock options outstanding, which were not included in the calculation of net income per share-diluted because they were anti-dilutive. In addition, at September 30, 2016 the Company had 41,801,793 remaining warrants outstanding issued in connection with convertible promissory notes that were also not included because they were anti-dilutive. Recent Accounting Pronouncements We have reviewed the FASB issued Accounting Standards Update (“ASU”) accounting pronouncements and interpretations thereof that have effectiveness dates during the periods reported and in future periods. The Company has carefully considered the new pronouncements that alter previous generally accepted accounting principles and does not believe that any new or modified principles will have a material impact on the corporation’s reported financial position or operations in the near term. The applicability of any standard is subject to the formal review of our financial management and certain standards are under consideration. Reference is made to these recent accounting pronouncements as if they are set forth therein in their entirety.

Inventory

Inventory	9 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
Inventory	(2) Inventory Our inventory is made up of raw materials, work in progress and finished goods. Our inventory is maintained at our manufacturing facilities. September 30, December 31, 2016 2015 (unaudited) Raw materials $ 960,350 $ 489,303 Work in process 42,985 7,303 Finished Goods 917,956 709,616 TOTAL $ 1,921,291 $ 1,206,222

Property and Equipment, Net

Property and Equipment, Net	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Property and Equipment, Net	(3) Property and Equipment, Net Property and equipment are comprised of the following at September 30, 2016 and December 31, 2015 September 30, 2016 December 31, 2015 Equipment $ 401,036 $ 353,880 Furniture 104,802 102,564 Moulds 45,060 45,060 Test Range 110,802 110,802 661,700 612,306 Less accumulated depreciation (485,106 ) (441,199 ) Property and equipment, net $ 176,594 $ 171,107 Depreciation expense for the next five years ended September 30, 2017 $ 55,779 2018 44,375 2019 36,708 2020 27,931 2021 7,373 $ 172,166 Depreciation expense for the nine months ended September 30, 2016 and 2015 was $29,263 and $17,508.

Intangible Assets, Net

Intangible Assets, Net	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets, Net	(4) Intangible Assets, Net Intangible Assets are comprised of the following at September 30, 2016 and December 31, 2015: September 30, 2016 December 31, 2016 2016 2015 Patents and Trademarks $ 161,278 $ 161,278 Websites 80,000 80,000 Lists 500,000 500,000 Research and Development 55,000 55,000 796,278 796,278 Less accumulated amortization (660,088 ) (647,899 ) Intangible assets, net $ 136,190 $ 148,379 Amortization expense for the next five years ended September 30, 2017 $ 16,252 2018 16,252 2019 16,252 2020 16,252 2021 13,960 $ 78,968 Amortization expense for the nine months ended September 30, 2016 and 2015 was $12,189 and $7,392.

Notes Payable

Notes Payable	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Notes Payable	(5) Notes Payable Notes payable at September 30, 2016 and December 31, 2015 as detailed below, is summarized as follows: September 30, 2016 (unaudited) December 31, 2015 Convertible promissory notes – accrued expenses - 391,025 Revolving credit - 190,232 Acquisition debt 30,000 30,000 Note payable – related party 427,617 - Note payable – equipment 18,803 - Note payable - individual 200,000 - Credit card payable – American express 25,197 - 701,617 611,257 Less current maturities (701,617 ) (311,257 ) $ - $ 300,000 Conversion of Accrued Expenses. On March 8, 2011, BlastGard’s Board of Directors ratified, adopted and approved that James F. Gordon’s accrued salary of $160,000 (20 months at $8,000 per month covering May-December 2009, January-October 2010 and January-February 2011); Michael J. Gordon’s accrued salary of $160,000 (20 months at $8,000 per month covering May-December 2009, January-October 2010 and January-February 2011); and Morse & Morse, PLLC’s accrued legal bill of $67,025 be converted into a Convertible Non-Interest Bearing Demand Note, convertible into Common Shares of BlastGard at $.05 per share at the noteholder(s) discretion. On May 3, 2011, BlastGard’s Board of Directors ratified, adopted and approved $100,000 in additional compensation to Michael J. Gordon as CEO, of which $50,000 be converted into a Convertible Non-Interest Bearing Demand Note, convertible into Common Shares of BlastGard at $.05 per share at the noteholder(s) discretion and $50,000 issued in Common Stock at $.05 per share. On November 11, 2013, the Board of Directors approved the lowering the conversion price for $.05 per share to $.01 per share on these notes. These notes were paid off in January 2016 through a conversion of $300,000 into 30,000,000 shares of Common Stock, and the balance being paid in cash. The 2011 convertible promissory notes consisted of the following at September 30, 2016 and December 31, 2015: September 30, 2016 December 31, 2015 Convertible promissory note, $210,000, issued January 31, 2011, due on September 30, 2011, 6% interest rate $ - $ 180,000 Convertible promissory note, $160,000, issued January 31, 2011, due on January 31, 2012, 6% interest rate - 144,000 Convertible promissory note, $67,025, issued January 31, 2011, due on September 30, 2011, 6% interest rate - 67,025 - 391,025 Less: current maturities - (91,025 ) $ - $ 300,000 The Company had issued 104,333,335 warrants with the convertible debt. The 41,801,793 warrants which remain outstanding are currently exercisable at $0.009 and expire in 2018. Due to changes in the terms, the warrants are re-valued, using the Black-Scholes method each quarter. On August 23, 2013, 28,923,342 warrants were exercised and on September 2, 2014, 33,608,200 warrants were exercised. At September 30, 2016 the remaining 41,801,793 warrants were valued at approximately $420,810, with an unamortized debt discount of $248,506, and a net value of $172,304. These amounts are presented as a derivative liability, net on the balance sheet. Revolving Credit Facilities The Company also acquired various revolving credit facilities in the acquisition of HighCom Security, Inc. HighCom had been paying interest only on the loans. The revolving credit facilities consist of the following at September 30, 2016 and December 31, 2015: September 30, 2016 December 31, 2015 Line of credit from Regions Bank, $100,000, interest only at 8% annually, due on demand $ - $ 53,649 Revolving credit card facility with Wells Fargo Bank, $150,000, interest only at 7.5% annually, due on demand, unsecured - 136,583 - 190,232 Less: current maturities - (190,232 ) $ - $ - Acquisition Debt On March 4, 2011, the Company issued a note payable in association with the purchase of HighCom Security Inc. and on March 31, 2011, the Company issued a note payable in association with the purchase of Acer product designs. These acquisition notes have the following balances at September 30, 2016 and December 31, 2015: September 30, 2016 December 31, 2015 Acquisition note for the purchase of Acer product designs, original amount $30,000, no interest 30,000 30,000 30,000 30,000 Less: current maturities (30,000 ) (30,000 ) $ - $ - Note payable – Related Party During the nine months ended September 30, 2016, the Company’s CEO, Michael Gordon incurred expenses on behalf of, and made advances to the Company in order to provide the Company with funds to carry on its operations. These advances are pursuant to Mr. Gordon obtaining a personal demand promissory note at a rate of 5.54% per annum. As of September 30, 2016, the amount due for these expenses and advances on behalf of the Company is $427,617. Note payable - Equipment The Company financed the acquisition of certain equipment through a promissory note. The note is payable in monthly installments of $2,350, is non-interest bearing, and has a maturity date of May 17, 2017. The note is secured by equipment. As of September 30, 2016 the balance of this note was $18,803. Note payable – Individual On September 8, 2016, the Company issued a demand promissory note to an individual in the amount of $200,000 at a rate of 18% per annum. Principal and accrued interest is payable no sooner than 90 days and no later than 120 days from issuance. Credit card payable – American Express The Company utilizes an American Express credit card to facilitate short term cash flow demands. Off Balance Sheet Arrangements We currently have no off-balance sheet arrangements. Canadian corporation has the right to nominate and appoint at least 50% of the Board Members. In 2013, in connection with 8464091 Canada Inc. acquiring over majority control of the Company’s Common Stock from a former affiliated third party, the Company agreed that the Canadian corporation has the right to nominate and appoint to the Board at least 50% of the Board members. Pursuant to this right, 8464091 Canada has nominated and the Board has appointed to the Board four members, which include, Paul Sparkes, Craig Campbell, Andrew Griffith and David Frum. Subsequently in September 2016, Craig Campbell, for personal reasons, resigned from the board. Also, the Canadian corporation has the right to participate in future financings up to its pro rata share of Common Stock of the Company.

Shareholders' Equity

Shareholders' Equity	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Shareholders' Equity	(6) Shareholders’ Equity Preferred stock The Company was authorized to issue 1,000 shares of $.001 par value preferred stock. The Company may divide and issue the Preferred Shares in series. Each Series, when issued, shall be designated to distinguish them from the shares of all other series. The relative rights and preferences of these series include preference of dividends, redemption terms and conditions, amount payable upon shares of voluntary or involuntary liquidation, terms and condition of conversion as well as voting powers. None of our shares of preferred stock are outstanding. Common stock issuances The Company has issued various shares of common stock as described below pursuant to debt conversions. No commissions were paid in connection with these conversions and exemption from registration is claimed under Section 3(a)(9) of the Securities Act of 1933, as amended. In September 2015, the Company issued 3,000,000 common shares in a debt conversion in the amount of $30,000. In November 2015, the Company issued 5,570,321 common shares in a debt conversion in the amount of $55,953. In January 2016, the Company issued 30,000,000 common shares in a debt conversion in the amount of $300,000. 366,976,178 shares were issued and outstanding at September 30, 2016. Stock Compensation The Company periodically offered options to purchase stock in the Company to vendors and employees. There were 25,000,000 options granted during the 3rd quarter of 2015 to three key employees and 1,500,000 options granted during the 3 rd The Board’s policy with respect to options is to grant options at the fair market value of the stock on the date of grant. Options generally become fully vested after one year from the date of grant and expire five years from the date of grant. During the years ended December 31, 2013 and 2012 there were 0 and 0 options granted, respectively and 0 and 1,450,000 expired un-exercised, respectively. On March 25, 2014, the Board of Directors approved granting all four directors 500,000 shares exercisable at $.02 per share. The options are for 5 years and are fully-vested, non-statutory stock options. The options to purchase 500,000 shares of the Company’s Common Stock, effective March 25, 2014, at an exercise price of $0.01 per share were granted to the following persons: Michael J. Gordon, Paul W. Henry, Solomon Mayer and Keith Brill. The options to purchase 750,000 shares of the Corporation’s Common Stock, effective March 10, 2015, at an exercise price of $0.01 per share were granted to the following persons: Michael J. Gordon, Paul W. Henry, Solomon Mayer and Keith Brill. There were no net cash proceeds from the exercise of stock options during the year ended December 31, 2015. At September 30, 2016 and December 31, 2015, there was no unrecognized compensation cost related to share-based payments which was expected to be recognized in the future The following table represents stock option activity as of and for the nine months ended September 30, 2016: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Options Outstanding - January 1, 2016 66,750,000 $ 0.01 5.9 years - Granted - - Exercised - - Forfeited/expired/cancelled (6,250,000 ) Options Outstanding – September 30, 2016 60,500,000 $ 0.01 5.1 years $ - Outstanding Exercisable – January 1, 2016 38,000,000 $ 0.01 5.9 years $ - Outstanding Exercisable – September 30, 2016 41,125,000 $ 0.01 5.1 years $ - The total grant date fair value of options vested during the nine months ended September 30, 2016 and 2015 was $38,742 and $84,858 respectively. The following table represents stock warrant activity as of and for the nine months ended September 30, 2016: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Warrants Outstanding - January 1, 2016 41,801,793 $ 0.009. 2.8 years $ - Granted - Exercised - - Forfeited/expired/cancelled - Warrants Outstanding – September 30, 2016 41,801,793 $ 0.009 2.1 years $ - Outstanding Exercisable – January 1, 2016 41,801,793 $ 0.009 2.8 years $ - Outstanding Exercisable – September 30, 2016 41,801,793 $ 0.009 2.1 years $ - Derivative Liability We review the terms of convertible debt issues to determine whether there are embedded derivative instruments, including embedded conversion options, which are required to be bifurcated and accounted for separately as derivative financial instruments. In circumstances where the host instrument contains more than one embedded derivative instrument, including the conversion option, that is required to be bifurcated, the bifurcated derivative instruments are accounted for as a single, compound derivative instrument Bifurcated embedded derivatives are initially recorded at fair value and are then revalued at each reporting date with changes in the fair value reported as non-operating income or expense. When the equity or convertible debt instruments contain embedded derivative instruments that are to be bifurcated and accounted for as liabilities, the total proceeds received are first allocated to the fair value of all the bifurcated derivative instruments. The remaining proceeds, if any, are then allocated to the host instruments themselves, usually resulting in those instruments being recorded at a discount from their face value. The discount from the face value of the convertible debt, together with the stated interest on the instrument, is amortized over the life of the instrument through periodic charges to interest expense, using the effective interest method. During 2011, the Company entered into certain convertible debt agreements with warrants attached. Because the warrant values exceeded the note values after the beneficial conversion feature discount, the warrants have been bifurcated out and recorded separately. The initial value was the fair value less the fair value of the debt discount. The difference between the amortized fair value and the revalued fair value at each reporting period is recorded as a derivative liability. This derivative liability will change every reporting period based on the current market conditions. The Company used the following Black-Scholes assumptions in arriving at the fair value of the warrants as of September 30, 2016 and December 31, 2015. September 30, 2016 December 31, 2015 Expected Life in Years 2.1 2.9 Risk-free Interest Rates 1.14 % 1.76 % Volatility 267.87 % 281.15 % Dividend Yield 0 % 0 % The Derivative Liability consists of the following as of September 30, 2016 and December 31, 2015: September 30, December 31, 2016 2015 Fair Value of embedded warrants $ 420,810 $ 357,449 Unamortized discount (248,506 ) (336,707 ) $ 172,304 $ 20,742

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	(7) Income Taxes The Company incurred a net operating profit for the nine months ended September 30, 2016, and has realized net income in various prior periods presented. Due to the deferred tax attributes of the derivatives and a deferred tax asset from prior periods, which was fully allowed for, no income tax benefit or expense has been presented. Any tax liability associated with any profits was offset by the deferred tax assets and changing in the valuation allowance on those tax assets.

Concentration of Credit Risk fo

Concentration of Credit Risk for Cash	9 Months Ended
	Sep. 30, 2016
Concentration Of Credit Risk For Cash
Concentration of Credit Risk for Cash	(8) Concentration of Credit Risk for Cash The Company has concentrated its credit risk for cash by maintaining deposits in a financial institution, which may at times exceed the amounts covered by insurance provided by the United States Federal Deposit Insurance Corporation (“FDIC”). At September 30, 2016, the Company had no funds in excess of the FDIC insurance limits.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	(9) Commitments and Contingencies From time to time the Company may be a party to litigation matters involving claims against the Company. Management believes that there are no current matters that would have a material effect on the Company’s financial position or results of operations. Office Lease We do not own any real estate properties. BlastGard entered into a lease agreement in January 1, 2009 for office space in Clearwater Florida, which was expanded to two offices in 2011 to accommodate HighCom Security. In 2012, BlastGard moved into a larger office space. Rental payment under the new lease is $373 per month on a month to month basis. HighCom leases office and manufacturing space in Columbus, Ohio. In February 2011, the Company entered into a nine-month lease agreement for approximately 11,200 square feet of office and warehouse space in Columbus, OH. In June 2012, the Company entered into a one-year lease agreement for approximately 16,200 square feet of office and warehouse space in Columbus, OH. In June 2013, the Company entered into a three-year lease agreement for approximately 24,160 square feet of office and warehouse space in Columbus, OH. Rental payment under the new lease is $6,967 per month through August 2016. In October 2015, the Company entered into a three-year lease agreement for approximately 38,000 square feet of office and warehouse space in Columbus, OH. Rental payment under the new lease is $9,627 per month on a month to month basis until June 2016 and then $8,901 through October 2018. HighCom rented approximately 900 square feet of office space in Aurora, CO on a short-term lease which expired on May 31, 2014 at a rental of $518 per month. On January 1, 2015, HighCom secured similar office space in Centennial, CO for one year at a rental of $525 per month, which was renewed January 2016 for one year. Rent expense for the nine months ended September 30, 2016 and 2015 was approximately $96,882 and $111,287. Prior Litigation Matter Verde Partners Family Limited Partnership On April 2, 2009, the Company entered into a Settlement Agreement to settle our outstanding civil litigation. The Company will pay the sum of $125,000 over 18 months. The first monthly payment was paid within 30 days after the Defendants deliver to the Company’s counsel an original executed version of the Agreement and a promissory note in the amount of the remaining principal balance to bear interest in the amount of 6% per annum. Upon Verde’s receipt of the payment and promissory note, the parties shall jointly dismiss with prejudice all litigation between them, including the Pinellas County action and the Federal action. The company and Verde also entered into a license agreement whereby BlastGard obtains a fully paid up non-exclusive license for the 2 Verde patents for the remaining life of those patents in exchange for the Company paying Verde a 2% royalty for the life of the patents (which expired in the 2 nd

Material Agreements and Transac

Material Agreements and Transactions	9 Months Ended
	Sep. 30, 2016
Material Agreements And Transactions
Material Agreements and Transactions	(10) Material Agreements and Transactions On November 11, 2013, the Board of Directors approved the following transactions: (i) the issuance of 2,000,000 shares to corporate counsel; and pursuant to his position as chairman of the Company’s advisory board an option to purchase 2,000,000 shares of Common Stock which vested on January 1, 2014 and an option to purchase 2,000,000 shares which will vest on January 1, 2015, exercisable at $.009 per share so long as Mr. Keifner is still serving as chairman of the Company’s advisory board on the vesting date. In his capacity, Mr. Kiefner will serve as a lasison between the Company and its principal shareholder, to attend meetings of the Company’s board of directors, to meet with the Company’s officers on a regular basis and provide corporate counsel; (ii) lowering the conversion price from $.05 per share to $.01 per share of certain notes described in Note 5 in the Notes to Financial Statements; and (iii) granting options to purchase an aggregate of 25,000,000 shares of Common Stock to Michael J. Gordon, Michael L. Bundy and Chad Wright with options exercisable at $.01 per share from the vesting date through the expiration date of said options. These options have cliff vesting where they are exercisable over a period of time, but they can become immediately vested in the event certain revenue goals are achieved. In the event the Company achieves $10 million in sales in a calendar year, 25% of the total options will automatically vest. An additional 25% will vest when the Company achieves $20 million in sales in a calendar year and 50% of the total options granted will automatically vest when the Company achieves $30 million in sales in a calendar year.

Gain on Settlement of Debt

Gain on Settlement of Debt	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Gain On Settlement of Debt	(11) Gain on settlement of debt During the quarter ended March 31, 2016, the Company negotiated the settlement of an account payable to a single vendor for invoices from 2010 that were on the books of HighCom when acquired in March 2011. The vendor has conceded the full amount as settled, resulting in a gain on settlement of debt in the amount of $300,200.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	(12) Subsequent Events The Company has evaluated all subsequent events through the filing date of this form 10Q for appropriate accounting and disclosures, and there are no subsequent event disclosures required.

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Basis of Presentation	(1) Basis of Presentation The consolidated balance sheet as of September 30, 2016, the consolidated statements of operations for the three and nine months ended September 30, 2016 and 2015, and consolidated statements of cash flows for the nine months ended September 30, 2016 and 2015 have been prepared by us without audit. In the opinion of Management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments) necessary to present fairly in all material respects our financial position as of September 30, 2016 and results of operations for the three and nine months ended September 30, 2016 and 2015, and cash flows for the nine months ended September 30, 2016 and 2015. The results of operations and cash flows for the periods indicated above are not necessarily indicative of the results to be expected for the full year. This report should be read in conjunction with our Form 10-K for our fiscal year ended December 31, 2015. All material intercompany transactions have been eliminated. BlastGard International, Inc. (the “Company”) was incorporated on September 26, 2003 as BlastGard Technologies, Inc. (“BTI”) in the State of Florida, to design and market proprietary blast mitigation materials. The Company created, designs, develops and markets proprietary blast mitigation materials. The Company’s patent-pending BlastWrap® technology effectively mitigates blast effects and suppresses post-blast fires. The Company sub-contracts the manufacturing of products to licensed and qualified production facilities. The Company went public through a shell merger on January 31, 2004. On March 31, 2004, the Company changed its name to BlastGard International, Inc. On March 4, 2011, the Company completed the acquisition of HighCom Securities, Inc and subsidiaries. These financial statements include the assets liabilities and activity of the following: BlastGard International, Inc. ® BlastGard Technologies Inc. is a dormant Florida corporation. HighCom Securities, Inc.
Going Concern	Going Concern The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustments relating to the recoverability of assets and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company’s continuation as a going concern was dependent upon its ability to generate sufficient cash flow to meet its obligations on a timely basis and ultimately to attain profitability. The Company plans to continue to generate necessary cash flows through operations. However, should the Company’s sales not provide sufficient cash flow; the Company can raise additional working capital through debt and/or equity financings. There is no assurance the Company will be successful in producing sufficient sales revenues or obtaining additional funding through debt and equity financings.
Business Segments	Business Segments Although the Company accounts for its operations in two separate corporations, all of its business operations are associated with Security for Individuals and Property. BlastGard International, Inc. primarily provides for corporate administration, and only has incidental sales of an immaterial amount. HighCom sales represent in excess of 99% of total sales. Therefore the Company has determined that all business operations should be aggregated together and not reported as separate operating segments.
Principles of Consolidation	Principles of Consolidation These consolidated financial statements include the assets and liabilities of BlastGard International, Inc. and its subsidiaries as of September 30, 2016 and December 31, 2015. All material intercompany transactions have been eliminated.
Use of Estimates	Use of Estimates The preparation of financial statements in accordance with generally accepted accounting principles required management to make estimates and assumptions that affected the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considered all highly liquid debt instruments with original maturities of three months or less when acquired to be cash equivalents.
Financial Instruments	Financial Instruments The carrying amounts of cash, receivables and current liabilities approximated fair value due to the short-term maturity of the instruments. Debt obligations were carried at cost, which approximated fair value due to the prevailing market rate for similar instruments.
Fair Value Measurement	Fair Value Measurement All financial and nonfinancial assets and liabilities were recognized or disclosed at fair value in the financial statements. This value was evaluated on a recurring basis (at least annually). Generally accepted accounting principles in the United States define 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 a measurement date. The accounting principles also established a fair value hierarchy which required an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Three levels of inputs were used to measure fair value. Level 1: Quotes market prices in active markets for identical assets or liabilities. Level 2: Observable market based inputs or unobservable inputs that were corroborated by market data. Level 3: Unobservable inputs that were not corroborated by market data.
Accounts Receivable	Accounts Receivable Accounts receivable consisted of amounts due from customers based in the United States and abroad. The Company considered accounts more than 30 days old to be past due. The Company used the allowance method for recognizing bad debts. When an account was deemed uncollectible, it was written off against the allowance. The Company generally does not require collateral for its accounts receivable. Management deems all accounts receivable to be collectable at September 30, 2016.
Inventory	Inventory Inventory was stated at the lower of cost (first-in, first-out) or market. Market was generally considered to be net realizable value. Inventory consisted of materials used to manufacture the Company’s product and finished goods ready for sale.
Property and Equipment	Property and Equipment Property and equipment were stated at cost. Depreciation was calculated using the straight-line method over the estimated useful lives of the related assets, ranging from three to seven years. Expenditures for additions and improvements were capitalized, while repairs and maintenance costs were expensed as incurred. The cost and related accumulated depreciation of property and equipment sold or otherwise disposed of were removed from the accounts and any gain or loss was recorded in the year of disposal.
Impairment of Long-lived Assets	Impairment of Long-Lived Assets The Company evaluates the carrying value of its long-lived assets at least annually. Impairment losses were recorded on long-lived assets used in operations when indicators of impairment were present and the undiscounted future cash flows estimated to be generated by those assets were less than the assets’ carrying amount. If such assets were impaired, the impairment to be recognized was measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of were reported at the lower of the carrying value or fair value, less costs to sell.
Debt Issue Costs	Debt Issue Costs The costs related to the issuance of debt were capitalized and amortized to interest expense using the straight-line method over the lives of the related debt. The straight-line method results in amortization that was not materially different from that calculated under the effective interest
Revenue Recognition	Revenue Recognition The Company recognizes revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability is reasonably assured. The Company’s product and return policy allows for merchandise purchased directly from the Company to be returned after obtaining a Return Authorization Number during the 30 day period following date of shipment by the Company for a refund of the purchase price.
Research and Development	Research and Development Research and development costs were expensed as incurred. Research and development costs totaled $43,386 and $7,564 for the three months ended September 30, 2016 and 2015, respectively. Research and development costs totaled $57,699 and $35,760 for the nine months ended September 30, 2016 and 2015, respectively.
Advertising	Advertising Advertising costs for tradeshows and social media were expensed as incurred. Advertising costs of $48,615 and $48,960 were incurred during the nine months ended September 30, 2016 and 2015, respectively.
Shipping and Freight Costs	Shipping and Freight Costs The Company includes shipping costs in cost of goods sold.
Income Taxes	Income Taxes Income taxes were provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related primarily to differences between the recorded book basis and the tax basis of assets and liabilities for financial and income tax reporting. Deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities were recovered or settled. Deferred tax assets were also recognized for operating losses that were available to offset future taxable income and tax credits that were available to offset future federal income taxes, less the effect of any allowances considered necessary. The company use guidance provided by ASC-740-10, Accounting for Uncertainty in Income Taxes, for reporting uncertain tax provisions.
Stock-based Compensation	Stock-based Compensation We use the Black-Scholes option pricing model to estimate the fair value of stock-based awards on the date of grant, using assumptions for volatility, expected term, risk-free interest rate and dividend yield. We have used one grouping for the assumptions as our option grants were primarily basic with similar characteristics. The expected term of options granted has been derived based upon our history of actual exercise behavior and represents the period of time that options granted were expected to be outstanding. Historical data was also used to estimate option exercises and employee terminations. Estimated volatility was based upon our historical market price at consistent points in a period equal to the expected life of the options. The risk-free interest rate was based on the U.S. Treasury yield curve in effect at the time of grant and the dividend yield was based on the historical dividend yield. Compensation expense for stock based compensation is recognized over the vesting period.
Income (loss) Per Common Share	Income (Loss) per Common Share Basic net loss per share excludes the impact of common stock equivalents. Diluted net income (loss) per share utilizes the average market price per share when applying the treasury stock method in determining common stock equivalents. As of September 30, 2016, there were 38,000,000 vested common stock options outstanding, which were not included in the calculation of net income per share-diluted because they were anti-dilutive. In addition, at September 30, 2016 the Company had 41,801,793 remaining warrants outstanding issued in connection with convertible promissory notes that were also not included because they were anti-dilutive.
Recent Accounting Pronouncements	Recent Accounting Pronouncements We have reviewed the FASB issued Accounting Standards Update (“ASU”) accounting pronouncements and interpretations thereof that have effectiveness dates during the periods reported and in future periods. The Company has carefully considered the new pronouncements that alter previous generally accepted accounting principles and does not believe that any new or modified principles will have a material impact on the corporation’s reported financial position or operations in the near term. The applicability of any standard is subject to the formal review of our financial management and certain standards are under consideration. Reference is made to these recent accounting pronouncements as if they are set forth therein in their entirety.

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
Summary of Inventory	Our inventory is made up of raw materials, work in progress and finished goods. Our inventory is maintained at our manufacturing facilities. September 30, December 31, 2016 2015 (unaudited) Raw materials $ 960,350 $ 489,303 Work in process 42,985 7,303 Finished Goods 917,956 709,616 TOTAL $ 1,921,291 $ 1,206,222

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment are comprised of the following at September 30, 2016 and December 31, 2015 September 30, 2016 December 31, 2015 Equipment $ 401,036 $ 353,880 Furniture 104,802 102,564 Moulds 45,060 45,060 Test Range 110,802 110,802 661,700 612,306 Less accumulated depreciation (485,106 ) (441,199 ) Property and equipment, net $ 176,594 $ 171,107
Schedule of Depreciation Expense	Depreciation expense for the next five years ended September 30, 2017 $ 55,779 2018 44,375 2019 36,708 2020 27,931 2021 7,373 $ 172,166

Intangible Assets, Net (Tables)

Intangible Assets, Net (Tables)	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	Intangible Assets are comprised of the following at September 30, 2016 and December 31, 2015: September 30, 2016 December 31, 2016 2016 2015 Patents and Trademarks $ 161,278 $ 161,278 Websites 80,000 80,000 Lists 500,000 500,000 Research and Development 55,000 55,000 796,278 796,278 Less accumulated amortization (660,088 ) (647,899 ) Intangible assets, net $ 136,190 $ 148,379
Schedule of Amortization of Future Expense	Amortization expense for the next five years ended September 30, 2017 $ 16,252 2018 16,252 2019 16,252 2020 16,252 2021 13,960 $ 78,968

Notes Payable (Tables)

Notes Payable (Tables)	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Schedule of Notes Payable	Notes payable at September 30, 2016 and December 31, 2015 as detailed below, is summarized as follows: September 30, 2016 (unaudited) December 31, 2015 Convertible promissory notes – accrued expenses - 391,025 Revolving credit - 190,232 Acquisition debt 30,000 30,000 Note payable – related party 427,617 - Note payable – equipment 18,803 - Note payable - individual 200,000 - Credit card payable – American express 25,197 - 701,617 611,257 Less current maturities (701,617 ) (311,257 ) $ - $ 300,000
Schedule of Convertible Promissory Notes	The 2011 convertible promissory notes consisted of the following at September 30, 2016 and December 31, 2015: September 30, 2016 December 31, 2015 Convertible promissory note, $210,000, issued January 31, 2011, due on September 30, 2011, 6% interest rate $ - $ 180,000 Convertible promissory note, $160,000, issued January 31, 2011, due on January 31, 2012, 6% interest rate - 144,000 Convertible promissory note, $67,025, issued January 31, 2011, due on September 30, 2011, 6% interest rate - 67,025 - 391,025 Less: current maturities - (91,025 ) $ - $ 300,000
Schedule of Revolving Credit Facilities	The revolving credit facilities consist of the following at September 30, 2016 and December 31, 2015: September 30, 2016 December 31, 2015 Line of credit from Regions Bank, $100,000, interest only at 8% annually, due on demand $ - $ 53,649 Revolving credit card facility with Wells Fargo Bank, $150,000, interest only at 7.5% annually, due on demand, unsecured - 136,583 - 190,232 Less: current maturities - (190,232 ) $ - $ -
Schedule of Acquisition Debt	These acquisition notes have the following balances at September 30, 2016 and December 31, 2015: September 30, 2016 December 31, 2015 Acquisition note for the purchase of Acer product designs, original amount $30,000, no interest 30,000 30,000 30,000 30,000 Less: current maturities (30,000 ) (30,000 ) $ - $ -

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Schedule of Stock Option Activity	The following table represents stock option activity as of and for the nine months ended September 30, 2016: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Options Outstanding - January 1, 2016 66,750,000 $ 0.01 5.9 years - Granted - - Exercised - - Forfeited/expired/cancelled (6,250,000 ) Options Outstanding – September 30, 2016 60,500,000 $ 0.01 5.1 years $ - Outstanding Exercisable – January 1, 2016 38,000,000 $ 0.01 5.9 years $ - Outstanding Exercisable – September 30, 2016 41,125,000 $ 0.01 5.1 years $ -
Schedule of Stock Warrant Activity	The following table represents stock warrant activity as of and for the nine months ended September 30, 2016: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Warrants Outstanding - January 1, 2016 41,801,793 $ 0.009. 2.8 years $ - Granted - Exercised - - Forfeited/expired/cancelled - Warrants Outstanding – September 30, 2016 41,801,793 $ 0.009 2.1 years $ - Outstanding Exercisable – January 1, 2016 41,801,793 $ 0.009 2.8 years $ - Outstanding Exercisable – September 30, 2016 41,801,793 $ 0.009 2.1 years $ -
Schedule of Stock Options Valuation Assumptions	The Company used the following Black-Scholes assumptions in arriving at the fair value of the warrants as of September 30, 2016 and December 31, 2015. September 30, 2016 December 31, 2015 Expected Life in Years 2.1 2.9 Risk-free Interest Rates 1.14 % 1.76 % Volatility 267.87 % 281.15 % Dividend Yield 0 % 0 %
Schedule of Derivative Liability Consists	The Derivative Liability consists of the following as of September 30, 2016 and December 31, 2015: September 30, December 31, 2016 2015 Fair Value of embedded warrants $ 420,810 $ 357,449 Unamortized discount (248,506 ) (336,707 ) $ 172,304 $ 20,742

Basis of Presentation (Details

Basis of Presentation (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Research and development expenses	$ 43,386	$ 7,564	$ 57,699	$ 35,760
Advertising costs			$ 48,615	$ 48,960
Vested common stock option outstanding	38,000,000		38,000,000
Convertible Promissory Notes [Member]
Anti dilutive securities			41,801,793

Inventory - Summary of Inventor

Inventory - Summary of Inventory (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 960,350	$ 489,303
Work in process	42,985	7,303
Finished goods	917,956	709,616
Total	$ 1,921,291	$ 1,206,222

Property and Equipment, Net (De

Property and Equipment, Net (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 29,263	$ 17,508

Property and Equipment, Net - S

Property and Equipment, Net - Schedule of Property and Equipment (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Equipment	$ 401,036	$ 353,880
Furniture	104,802	102,564
Moulds	45,060	45,060
Test range	110,802	110,802
Total of property and equipment	661,700	612,306
Less accumulated depreciation	(485,106)	(441,199)
Property and equipment, net	$ 176,594	$ 171,107

Property and Equipment, Net -30

Property and Equipment, Net - Schedule of Depreciation Expense (Details)	9 Months Ended
	Sep. 30, 2016USD ($)
Property, Plant and Equipment [Abstract]
2,017	$ 55,779
2,018	44,375
2,019	36,708
2,020	27,931
2,021	7,373
Total	$ 172,166

Intangible Assets, Net (Details

Intangible Assets, Net (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 12,189	$ 7,392

Intangible Assets, Net - Schedu

Intangible Assets, Net - Schedule of Intangible Assets (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Intangible assets	$ 796,278	$ 796,278
Less accumulated amortization	(660,088)	(647,899)
Intangible assets, net	136,190	148,379
Research and Development
Intangible assets	55,000	55,000
Patents and Trademarks [Member]
Intangible assets	161,278	161,278
Websites [Member]
Intangible assets	80,000	80,000
Lists [Member]
Intangible assets	$ 500,000	$ 500,000

Intangible Assets, Net - Sche33

Intangible Assets, Net - Schedule of Amortization of Future Expense (Details)	Sep. 30, 2016USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2,017	$ 16,252
2,018	16,252
2,019	16,252
2,020	16,252
2,021	13,960
Total	$ 78,968

Notes Payable (Details Narrativ

Notes Payable (Details Narrative) - USD ($)

May 03, 2011

Mar. 08, 2011

Jan. 31, 2016

Nov. 30, 2015

Sep. 30, 2015

Sep. 30, 2016

Sep. 30, 2015

Sep. 08, 2016

Dec. 31, 2015

Sep. 02, 2014

Nov. 11, 2013

Aug. 23, 2013

Apr. 02, 2009

Share based compensation

$ 38,742

$ 257,989

Debt converted into convertible non-interest bearing demand note

$ 300,000

$ 55,953

$ 30,000

Conversion of stock amount

$ 300,000

Conversion of stock shares issued

30,000,000

Issuance of warrants to convertible debt

104,333,335

Warrants outstanding

41,801,793

Warrants exercisable price per share

$ 0.009

Warrants expitraion date

expire in 2018

Number of warrants exercised

33,608,200

28,923,342

Fair value of warrants

$ 420,810

Unamortized debt discount

248,506

Unamortized debt discount. Net

$ 172,304

Debt instruments interest rate

5.54%

6.00%

Notes payable to related party current

$ 427,617

Debt monthly installment

2,350

Debt instruments maturity date

May 17, 2017

Notes payable - equipment

$ 18,803

Individual [Member]

Debt instruments interest rate

18.00%

Debt instrument face amount

$ 200,000

Morse & Morse, PLLC's [Member]

Accrued legal bill

$ 67,025

James F. Gordon's [Member]

Accrued salary

$ 160,000

Accrued salary description

20 months at $8,000 per month covering May-December 2009, January-October 2010 and January-February 2011.

Michael J. Gordon's [Member]

Accrued salary

$ 160,000

Accrued salary description

20 months at $8,000 per month covering May-December 2009, January-October 2010 and January-February 2011.

Share based compensation

$ 100,000

Debt converted into convertible non-interest bearing demand note

$ 50,000

Conversion price per share

$ 0.05

$ 0.05

Number of shares issued during period

$ 50,000

Michael J. Gordon's [Member] | Maximum [Member]

Conversion price per share

0.05

Michael J. Gordon's [Member] | Minimum [Member]

Conversion price per share

$ 0.01

Notes Payable - Schedule of Not

Notes Payable - Schedule of Notes Payable (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Debt Disclosure [Abstract]
Convertible promissory notes - accrued expenses		$ 391,025
Revolving credit		190,232
Acquisition debt	30,000	30,000
Note payable – related party	427,617
Note payable - equipment	18,803
Note payable - individual	200,000
Credit card payable - american express	25,197
Note payable, net	701,617	611,257
Less current maturities	(701,617)	(311,257)
Total		$ 300,000

Notes Payable - Schedule of Con

Notes Payable - Schedule of Convertible Promissory Notes (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Total convertible promissory note		$ 391,025
Less: current maturities		(91,025)
Net convertible promissory note		300,000
Convertible Promissory Note One [Member]
Total convertible promissory note		180,000
Convertible Promissory Note Two [Member]
Total convertible promissory note		144,000
Convertible Promissory Note Three [Member]
Total convertible promissory note		$ 67,025

Notes Payable - Schedule of C37

Notes Payable - Schedule of Convertible Promissory Notes (Details) (Parenthetical) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Debt maturity date	May 17, 2017
Convertible Promissory Note One [Member]
Convertible debt		$ 210,000
Debt instruments interest rate		6.00%
Debt maturity date		Sep. 30, 2011
Convertible Promissory Note Two [Member]
Convertible debt		$ 160,000
Debt instruments interest rate		6.00%
Debt maturity date		Jan. 31, 2012
Convertible Promissory Note Three [Member]
Convertible debt		$ 67,025
Debt instruments interest rate		6.00%
Debt maturity date		Sep. 30, 2011

Notes Payable - Schedule of Rev

Notes Payable - Schedule of Revolving Credit Facilities (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Total revolving credit facilities		$ 190,232
Less: current maturities		(190,232)
Net
Regions Bank [Member]
Total revolving credit facilities		53,649
Wells Fargo Bank [Member]
Total revolving credit facilities		$ 136,583

Notes Payable - Schedule of R39

Notes Payable - Schedule of Revolving Credit Facilities (Details) (Parenthetical)	12 Months Ended
	Dec. 31, 2015USD ($)
Regions Bank [Member]
Procceds from line of credits	$ 100,000
Line of credit facility interest rate uringperiod	8.00%
Wells Fargo Bank [Member]
Procceds from line of credits	$ 150,000
Line of credit facility interest rate uringperiod	7.50%

Notes Payable - Schedule of Acq

Notes Payable - Schedule of Acquisition Debt (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Debt Disclosure [Abstract]
Acquisition note for the purchase of acer product designs	$ 30,000	$ 30,000
Total acquisition debt	30,000	30,000
Less: current maturities	(30,000)	(30,000)
Net acquisition note

Notes Payable - Schedule of A41

Notes Payable - Schedule of Acquisition Debt (Details) (Parenthetical) - USD ($)	3 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Debt Disclosure [Abstract]
Acquisition amount original amount	$ 30,000	$ 30,000
Acquition debt interest

Shareholders' Equity (Details N

Shareholders' Equity (Details Narrative) - USD ($)	Mar. 10, 2015	Mar. 25, 2014	Jan. 31, 2016	Nov. 30, 2015	Sep. 30, 2015	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2015
Preferred stock shares authorized							1,000				1,000
Preferred stock par value							$ 0.001				$ 0.001
Debt instruments converted into common stock			$ 300,000	$ 55,953	$ 30,000
Debt instruments converted into common stock, value			30,000,000	5,570,321	3,000,000
Common stock shares issued							366,976,178				336,976,178
Common stock shares outstanding							366,976,178				336,976,178
Option granted						25,000,000			0	0
Option un-exercised									0	1,450,000
Option purchase during period	750,000
Option exercise price	$ 0.01
Grant date fair value of options vested							$ 38,742	$ 84,858
Three Key Employees [Member]
Option granted						1,500,000
Four Directors [Member]
Option un-exercised		500,000
Option exercisable price per share		$ 0.02
Option vested period		5 years
Option purchase during period		500,000
Option exercise price		$ 0.01

Shareholders' Equity - Schedule

Shareholders' Equity - Schedule of Stock Option Activity (Details) - USD ($)	Mar. 10, 2015	Sep. 30, 2015	Sep. 30, 2016	Dec. 31, 2013	Dec. 31, 2012
Shares, granted		25,000,000		0	0
Weighted-average exercise price, exercised	$ 0.01
Options [Member]
Shares outstanding, beginning balance			66,750,000
Shares exercisable, beginning balance			38,000,000
Shares, granted
Shares, exercised
Shares, forfeited/expired/cancelled			(6,250,000)
Shares outstanding, ending balance			60,500,000
Shares exercisable, ending balance			41,125,000
Weighted-average exercise price, outstanding, beginning			$ 0.01
Weighted-average exercise price, exercisable, beginning			0.01
Weighted-average exercise price, exercised
Weighted-average exercise price, outstanding, ending			0.01
Weighted-average exercise price, exercisable, ending			$ 0.01
Weighted-average remaining contractual terms (years), outstanding beginning			5 years 10 months 24 days
Weighted-average remaining contractual terms (years), exercisable			5 years 10 months 24 days
Weighted-average remaining contractual terms (years), outstanding, ending			5 years 1 month 6 days
Weighted-average remaining contractual terms (years), exercisable			5 years 1 month 6 days
Aggregate intrinsic value, share exercisable, beginning
Aggregate intrinsic value, share outstanding, ending
Aggregate intrinsic value, share exercisable, ending

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of Stock Warrant Activity (Details) - Warrants [Member]	9 Months Ended
	Sep. 30, 2016USD ($)$ / sharesshares
Shares outstanding, beginning balance | shares	41,801,793
Warrants exercisable, beginning balance | shares	41,801,793
Shares granted | shares
Shares exercised | shares
Shares forfeited/expired/cancelled | shares
Shares outstanding, ending balance | shares	41,801,793
Warrants exercisable, ending balance | shares	41,801,793
Weighted average exercise price, outstanding, beginning | $ / shares	$ 0.009
Weighted average exercise price, exercisable, beginning | $ / shares	0.009
Weighted average exercise price, granted | $ / shares
Weighted average exercise price, exercised | $ / shares
Weighted average exercise price, forfeited/expired/cancelled | $ / shares
Weighted average exercise price, outstanding, ending | $ / shares	0.009
Weighted average exercise price, exercisable, ending | $ / shares	$ 0.009
Weighted average remaining contractual terms (years), outstanding beginning	2 years 9 months 18 days
Weighted average remaining contractual terms (years), outstanding ending	2 years 1 month 6 days
Weighted average remaining contractual terms (years), exercisable beginning	2 years 9 months 18 days
Weighted average remaining contractual terms (years), exercisable ending	2 years 1 month 6 days
Aggregate intrinsic value, outstanding, beginning | $
Aggregate intrinsic value, exercisable | $
Aggregate intrinsic value, outstanding, ending | $
Aggregate intrinsic value, exercisable | $

Stockholders' Equity - Schedu45

Stockholders' Equity - Schedule of Stock Options Valuation Assumptions (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Equity [Abstract]
Expected life in years	2 years 1 month 6 days	2 years 10 months 24 days
Risk-free interest rates	1.14%	1.76%
Volatility	267.87%	281.15%
Dividend yield	0.00%	0.00%

Shareholders' Equity - Schedul

Shareholders' Equity - Schedule of Derivative Liability Consists (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Debt Disclosure [Abstract]
Fair value of embedded warrants	$ 420,810	$ 357,449
Unamortized discount	(248,506)	(336,707)
Derivative liability, net	$ 172,304	$ 20,742

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative)	Jan. 02, 2015USD ($)	May 31, 2014USD ($)ft²	Apr. 02, 2009USD ($)	Sep. 30, 2016USD ($)	Aug. 31, 2016USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Dec. 31, 2012USD ($)	Oct. 31, 2015ft²	Jun. 30, 2013ft²	Jun. 30, 2012ft²	Feb. 28, 2011ft²
Area of lease land		900
Rent expense | $	$ 525	$ 518		$ 9,627	$ 6,967	$ 96,882	$ 111,287	$ 373
Litigation settlement amount | $			$ 125,000
Debt instruments interest rate			6.00%	5.54%		5.54%
Royalty percentage			2.00%
October 2018 [Member]
Rent expense | $						$ 8,901
Six Month Lease [Member]
Area of lease land												11,200
One Year Lease Agreement [Member]
Area of lease land											16,200
Three Year Lease Agreement [Member]
Area of lease land									38,000	24,160

Material Agreements and Trans48

Material Agreements and Transactions (Details Narrative) - $ / shares	Mar. 10, 2015	Nov. 11, 2013	May 03, 2011
Option purchase during period	750,000
Michael J. Gordon's [Member]
Option purchase during period		25,000,000
Option exercisable price per share		$ 0.01
Conversion price per share		$ 0.05	$ 0.05
Sale of year description		In the event the Company achieves $10 million in sales in a calendar year, 25% of the total options will automatically vest. An additional 25% will vest when the Company achieves $20 million in sales in a calendar year and 50% of the total options granted will automatically vest when the Company achieves $30 million in sales in a calendar year.
Minimum [Member] | Michael J. Gordon's [Member]
Conversion price per share		$ 0.01
Maximum [Member] | Michael J. Gordon's [Member]
Conversion price per share		$ 0.05
Board of Directors [Member]
Issuance shares to corporate counsel		2,000,000
Option purchase during period		2,000,000
Option exercisable price per share		$ 0.009
Board of Directors [Member] | Minimum [Member]
Conversion price per share		0.01
Board of Directors [Member] | Maximum [Member]
Conversion price per share		$ 0.05

Gain on Settlement of Debt (Det

Gain on Settlement of Debt (Details Narrative)	9 Months Ended
	Sep. 30, 2016USD ($)
Debt Disclosure [Abstract]
Gain on settlement of debt	$ 300,200