Dais (DLYT) 10-Q 15 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 11, 2018
Document And Entity Information
Entity Registrant Name	DAIS ANALYTIC CORP
Entity Central Index Key	1,125,699
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		139,351,432
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,018

CONDENSED BALANCE SHEETS

CONDENSED BALANCE SHEETS - USD ($)	Mar. 31, 2018	Dec. 31, 2017
CURRENT ASSETS:
Cash and cash equivalents	$ 43,276	$ 122,036
Accounts receivable, net	3,571	5,058
Other receivables	9,441	3,598
Inventory	80,435	101,607
Prepaid expenses	36,857	12,294
Total Current Assets	173,580	244,593
Property and equipment, net, including accumulated depreciation of $372,082 and $371,917 at March 31, 2018 and December 31, 2017, respectively	82,034	91,900
OTHER ASSETS:
Deposits	5,080	5,080
Patents, net, including accumulated amortization of $267,292 and $266,915 at March 31, 2018 and December 31, 2017, respectively	125,521	117,606
Total Other Assets	130,601	122,686
TOTAL ASSETS	386,215	459,179
CURRENT LIABILITIES:
Accounts payable, including related party payables of $117,994 and $104,543 at March 31, 2018 and December 31, 2017, respectively	475,076	353,193
Accrued expenses, other, including interest due to related party of $39,413 and $88,441 at March 31, 2018 and December 31, 2017, respectively	388,239	345,654
Accrued compensation and related benefits	1,776,612	1,727,259
Customer deposits	18,481	120,579
Note Payable to related party	1,332,000	1,332,000
Current portion of deferred revenue	486,156	498,656
Derivative liabilities	645,026	243,501
Convertible notes payable, net of unamortized debt discount and deferred debt issuance costs	138,485	3,788
Total Current Liabilities	5,260,075	4,624,630
Total Liabilities	5,260,075	4,624,630
STOCKHOLDERS' DEFICIT
Preferred stock; $0.01 par value; 10,000,000 shares authorized; no shares issued and outstanding
Common stock; $0.01 par value; 240,000,000 shares authorized; 140,608,645 and 140,608,645 shares issued; and 139,351,432 and 139,351,432 shares outstanding at March 31, 2018 and December 31, 2017, respectively	1,406,087	1,406,087
Capital in excess of par value	43,003,003	43,003,003
Accumulated deficit	(47,820,838)	(47,112,429)
Total	(3,411,748)	(2,703,339)
Treasury stock at cost, 1,257,213 shares	(1,462,112)	(1,462,112)
Total Stockholders' Deficit	(4,873,860)	(4,165,451)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 386,215	$ 459,179

CONDENSED BALANCE SHEETS (Paren

CONDENSED BALANCE SHEETS (Parenthetical) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
ASSETS
Accumulated depreciation	$ 372,082	$ 371,917
OTHER ASSETS:
Accumulated amortization	267,292	266,915
CURRENT LIABILITIES:
Accounts payable related party payables	117,994	104,543
Accrued expenses related party	$ 39,413	$ 88,441
STOCKHOLDERS' DEFICIT
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	240,000,000	240,000,000
Common stock, shares issued	140,608,645	140,608,645
Common stock, shares outstanding	139,351,432	139,351,432
Treasury stock shares	1,257,213	1,257,213

CONDENSED STATEMENTS OF OPERATI

CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
REVENUE
Sales	$ 240,674	$ 21,376
Royalty and license fees	12,500
Total revenue	253,174	21,376
COST OF GOODS SOLD	172,172	21,020
GROSS MARGIN	81,002	356
OPERATING EXPENSES
Research and development expenses, net of government grant proceeds of $8,666 and $119,906 for the three months ended March 31, 2018 and 2017, respectively	75,463	66,918
Selling, general and administrative expenses	378,015	339,724
Total operating expenses	453,478	406,642
LOSS FROM OPERATIONS	(372,476)	(406,286)
OTHER INCOME (EXPENSE)
Interest expense	(227,359)	(67,989)
Change in fair value of derivative liabilities	(108,574)
Total other income (expense), net	(335,933)	(67,989)
NET LOSS	$ (708,409)	$ (474,275)
NET LOSS PER COMMON SHARE, BASIC AND DILUTED	$ (0.01)	$ 0
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING, BASIC AND DILUTED	139,351,432	120,873,594

CONDENSED STATEMENTS OF OPERAT5

CONDENSED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Condensed Statements Of Operations
Research and development expenses, net of government grant	$ 8,666	$ 119,906

CONDENSED STATEMENT OF STOCKHOL

CONDENSED STATEMENT OF STOCKHOLDERS’ DEFICIT (Unaudited) - 3 months ended Mar. 31, 2018 - USD ($)	Common Stock	Capital in Excess of Par Value	Accumulated Deficit	Treasury Stock	Total
Beginning Balance, Shares at Dec. 31, 2017	140,608,645
Beginning Balance, Amount at Dec. 31, 2017	$ 1,406,087	$ 43,003,003	$ (47,112,429)	$ (1,462,112)	$ (4,165,451)
Net loss			(708,409)		(708,409)
Ending Balance, Shares at Mar. 31, 2018	140,608,645
Ending Balance, Amount at Mar. 31, 2018	$ 1,406,087	$ 43,003,003	$ (47,820,838)	$ (1,462,112)	$ (4,873,860)

CONDENSED STATEMENTS OF CASH FL

CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (708,409)	$ (474,275)
Adjustments to reconcile net loss to net cash and cash equivalents used in operating activities:
Amortization of deferred debt issue costs	2,614
Depreciation and amortization	10,242	16,841
Change in fair value of derivative liability	108,574
Non-cash interest expenses	117,951
Amortization of debt discount	57,084	51,434
Stock issued for services		12,000
Increase (decrease) in allowance for doubtful accounts		(3,647)
(Increase) decrease in:
Accounts receivable	1,487	3,622
Inventory	21,172	(5,288)
Other receivables	(5,843)	5,908
Prepaid expenses/Other current assets	(24,563)	(43,899)
Increase (decrease) in:
Accounts payable	121,883	142,958
Accrued related party		51,602
Accrued expenses	91,938	8,922
Customer deposits	(102,098)	1,515
Deferred revenue	(12,500)
Net cash used in operating activities	(320,468)	(232,307)
CASH FLOWS FROM INVESTING ACTIVITIES:
Increase in patent costs	(8,292)	(8,832)
Net cash used by investing activities	(8,292)	(8,832)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from note payable - related party		225,000
Proceeds from note payables	250,000
Net cash provided by financing activities	250,000	225,000
Net decrease in cash and cash equivalents	(78,760)	(16,139)
Cash and cash equivalents, beginning of period	122,036	21,066
Cash and cash equivalents, end of period	43,276	4,927
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	1,287	119
NON-CASH FINANCING AND FINANCING ACTIVITIES
Issuance of common stock for settlement of accrued expenses		90,000
Issuance of common stock for settlement of interest due to related party		17,200
Issuance of common stock for deferred debt issuance costs
Debt costs deducted from proceeds of notes	7,500
Issuance of warrants for debt modification		127,064
Initial derivative liability at issuance of note	292,951
Initial debt discount at issuance of note	$ 175,000

Background Information

Background Information	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Note 1. Background Information	Dais Analytic Corporation (the “Company”), a New York corporation, has developed and is commercializing applications using its nanostructure polymer technology. The first commercial product is an energy recovery ventilator (“ERV”) (core and systems) for use in commercial Heating, Ventilating, and Air Conditioning (HVAC) applications. The second commercial product is NanoClear TM The Company is dependent on third parties to manufacture the key components needed for its nanostructured based materials and some portion of the value-added products made with these materials. Accordingly, a suppliers’ failure to supply components in a timely manner, or to supply components that meet the Company’s quality, quantity and cost requirements or technical specifications, or the inability to obtain alternative sources of these components on a timely basis or on acceptable terms, would create delays in production of the Company’s products and/or increase its unit costs of production. Certain of the components or the processes of the Company’s suppliers are proprietary. If the Company was ever required to replace any of its suppliers, it should be able to obtain comparable components from alternative suppliers at comparable costs but this would create a delay in production. The Company’s accompanying condensed financial statements are unaudited, but in the opinion of management reflect all adjustments necessary to fairly state the Company’s financial position, results of operations, stockholders’ deficit and cash flows as of and for the dates and periods presented. The financial statements of the Company are prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information. The unaudited financial statements and notes are presented as permitted by Form 10-Q. Accordingly, certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted although the Company generally believes that the disclosures are adequate to ensure that the information presented is not misleading. The accompanying financial statements and notes should be read in conjunction with the audited financial statements and notes of the Company for the fiscal year ended December 31, 2017 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on April 2, 2018. The results of operations for the three month period ended March 31, 2018 are not necessarily indicative of the results that may be expected for any future quarters or for the entire year ending December 31, 2018.

Going Concern and Management's

Going Concern and Management's Plans	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Note 2. Going Concern and Management's Plans	The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. For the three months ended March 31, 2018, the Company generated a net loss of $708,409 and the Company has incurred significant losses since inception. As of March 31, 2018, the Company had an accumulated deficit of $47,820,838, a stockholders’ deficit of $4,873,860 and cash and cash equivalents of $43,276. The Company used $320,468 and $232,307 of cash from operations during the three months ended March 31, 2018 and 2017, respectively, which was funded by proceeds from borrowings from notes and debentures. There is no assurance that such financing will be available in the future. These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. The Company is currently pursuing the following sources of short and long-term working capital: 1. The Company is holding preliminary discussions with parties who are interested in licensing, purchasing the rights to or establishing a joint venture to commercialize applications of the Company’s technology. 2. The Company is seeking growth capital from certain strategic and/or government (grant) related sources. These sources may, pursuant to any agreements that may be developed in conjunction with such funding, assist in the product definition and design, roll-out and channel penetration of products. 3. The Company is holding discussions with investors and investment banks to obtain debt and/or equity financing. Any failure by the Company to timely procure additional financing or investment adequate to fund the ongoing operations, including planned product development initiatives and commercialization efforts, will have material adverse consequences on the Company’s financial condition, results of operations and cash flows as could any unfavorable terms. There are no assurances the Company will be able to obtain the financing and planned product development commercialization. Accordingly, the Company may not have the ability to continue as a going concern. The financial statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

Significant Accounting Policies

Significant Accounting Policies	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Note 3. Significant Accounting Policies	In the opinion of management, all adjustments necessary for a fair statement of (a) the results of operations for the three-month periods ended March 31, 2018 and 2017, (b) the financial position at March 31, 2018 and December 31, 2017, and (c) the cash flows for the three month periods ended March 31, 2018 and 2017, have been made. The significant accounting policies followed are: Use of estimates Significant estimates underlying the Company’s reported financial position and results of operations include the allowance for doubtful accounts, fair value of unit based compensation, fair value impairment analysis, valuation allowance on deferred taxes and the warranty reserve. Cash and cash equivalents Fair Value of Financial Instruments Inventory Property and equipment Intangible assets Research and development expenses and funding proceeds Revenue recognition In certain instances, the Company’s ConsERV system product may carry a limited warranty of up to two years for all parts contained therein with the exception of the energy recovery ventilator core produced and sold by the Company. The distributor of the ConsERV system may carry a limited warranty of up to ten years. The limited warranty includes replacement of defective parts for the ConsERV system and includes workmanship and material failure for the ConsERV core. The Company recorded an accrual of $91,531 for future warranty expenses at March 31, 2018 and December 31, 2017, which is included in accrued expenses, other. Royalty revenue is recognized as earned. The Company recognized royalty revenue of $0 for the three months ended March 31, 2018 and 2017, respectively. Revenue derived from the sale of licenses is deferred and recognized as license fee revenue on a straight-line basis over the life of the license, or until the license arrangement is terminated. The Company recognized license fee revenue of $12,500 and $0 for the three months ended March 31, 2018 and 2017, respectively. The Company accounts for revenue arrangements with multiple elements under the provisions of the Financial Accounting Standards Boards (FASB) Accounting Standards Codification (ASC) Topic 605-25, “Revenue Recognition-Multiple-Element Arrangements.” In order to account for these agreements, the Company must identify the deliverables included within the agreement and evaluate which deliverables represent separate units of accounting based on if certain criteria are met, including whether the delivered element has stand-alone value to the licensee. The consideration received is allocated among the separate units of accounting, and the applicable revenue recognition criteria are applied to each of the separate units. Derivative Liability Fair Value Measurements The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: · Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. · Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g. interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. · Level 3 - Inputs that are both significant to the fair value measurement and unobservable. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The Company has recorded a derivative liability for its convertible notes which contain variable conversion prices. The table below summarizes the fair values of our financial liabilities as of March 31, 2018: Fair Value at March 31, Fair Value Measurement Using 2018 Level 1 Level 2 Level 3 Derivative liability $ 645,026 $ - $ - $ 645,026 The reconciliation of the derivative liability measured at fair value on a recurring basis using unobservable inputs (Level 3) is as follows for the three months ended March 31, 2018: Balance at beginning of period $ 243,501 Additions to derivative instruments 292,951 Loss on change in fair value of derivative liability 108,574 Balance at end of period $ 645,026 Earnings (loss) per share Recent Accounting Pronouncements In May 2017, the FASB issued ASU 2017-09, “Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting”, which clarifies when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award changes as a result of the change in terms or conditions. If an award is not probable of vesting at the time a change is made, the new guidance clarifies that no new measurement date will be required if there is no change to the fair value, vesting conditions, and classification. This ASU will be applied prospectively and is effective for fiscal years beginning after December 15, 2017, and interim periods within those years, with early adoption permitted. The Company has adopted this standard as of the fiscal year beginning January 1, 2018 and does not expect this standard to have a material impact on its financial statements. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases. The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently evaluating the impact of the pending adoption of the new standard on its financial statements. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers" (Topic 606). The core principle of the ASU is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: 1) identify the contract(s) with a customer, 2) identify the performance obligations in the contract, 3) determine the transaction price, 4) allocate the transaction price to the performance obligations in the contract, and 5) recognize revenue when (or as) the entity satisfies a performance obligation. The Company adopted this ASU in the first quarter of fiscal 2018 on a modified retrospective basis. The adoption of this ASU did not have a material effect on the Company's financial statements.

Accrued Expenses

Accrued Expenses	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Note 4. Accrued Expenses	Accrued expenses consist of the following: March 31, 2018 December 31, 2017 Accrued expenses, other $ 146,540 $ 151,090 Accrued interest 150,168 103,033 Accrued warranty costs 91,531 91,531 $ 388,239 $ 345,654

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Note 5. Related Party Transactions	The Company rents a building that is owned by two stockholders of the Company, one of whom is the Chief Executive Officer. Rent expense for this building is $4,066 per month, including sales tax. The Company recognized rent expense related to this lease of $12,198 in each of the three months ended March 31, 2018 and 2017, respectively. The Company has accrued compensation due to the Chief Executive Officer as of March 31, 2018 and December 31, 2017 of $1,670,752 and $1,631,147, respectively, included in accrued compensation and related benefits in the accompanying balance sheets. On June 24, 2016, the Company entered into a Loan and Security Agreement (“Security Agreement”) with Patricia Tangredi (the “Holder”) pursuant to which the Company issued a Senior Secured Promissory Note for $150,000 (the “Note”). The interest rate is 12% per annum compounded daily with a minimum interest payment of $2,000. The Note grants the Holder a secured interest in the assets of the Company. Ms. Tangredi is the wife of Timothy Tangredi, the Company’s CEO and stockholder, and therefore is a related party of the Company. Pursuant to the Note, the Company is to pay the Holder the principal amount of $150,000 plus all interest due thereon in accordance with terms and conditions of the Security Agreement on the earlier of: (i) the date upon which the Company secures funds, regardless of source, equal to or exceeding, in the aggregate, $1,000,000 or (ii) October 31, 2016. During 2016 to the period ended March 31, 2018, the Holder extended the Note pursuant to various amendments. Pursuant to the amendments, the principal amount due was increased to $1,332,000 with an extended maturity date of April 10, 2018. As consideration for the additional proceeds and modification of the maturity date, the Company issued to the related party warrants to purchase an aggregate of 26,250,000 shares of common stock with an exercise price of $0.01 with a ten year exercise period and 480,000 shares of common stock in 2017. The Company is using the proceeds of the Note and related amendments for working capital purposes. Interest expense on the Note was $39,413 and $13,463 for the three month periods ended March 31, 2018 and 2017, respectively. Accrued interest on the Note was $141,473 and $102,068 at March 31, 2018 and December 31, 2017, respectively. Timothy N. Tangredi, our Chief Executive Officer and Chairman, is a founder and a member of the board of directors of Aegis BioSciences, LLC ("Aegis"). Mr. Tangredi currently owns 52% of Aegis' outstanding equity and spends approximately one to two days per month on Aegis business for which he is compensated by Aegis. Aegis has two exclusive, world-wide licenses from the Company under which it has the right to use and sell products containing our polymer technologies in biomedical and health care applications. Pursuant to the second license, Aegis is required to make royalty payments of 1.5% of the net sales price it receives with respect to any personal hygiene product, surgical drape or clothing products (the latter when employed in medical and animal related fields) and license revenue it receives should Aegis grant a sublicense to a third party. Aegis sold no such products nor has it received any licensing fees requiring a royalty payment be made to us. All obligations for such payments ended on June 2, 2015. On February 27, 2015, the Company, and Timothy N. Tangredi, the Company's Chief Executive Officer entered into an amendment to Mr. Tangredi's Amended and Restated Employment Agreement. Currently, the Company has non-interest bearing accrued compensation due to the Chief Executive Officer for deferred salaries earned and unpaid as described above. The amendment provides that, if at any time during a calendar year, the unpaid compensation is greater than $500,000, Mr. Tangredi must convert $100,000 of unpaid compensation into the Company's common stock during such calendar year. The conversion rate shall be equal to 75% of the average closing price for the Company's common stock for the 30 trading days prior to the date of conversion. The Company shall also pay to Mr. Tangredi a cash payment equal to 20% of the compensation income incurred as a result of the conversion. The Company has waived the conversion requirement from 2015 to the present. Further, at any time any "person" or "group" (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934) becomes the "beneficial owner" (as defined in Rules 13(d)-3 and 13(d)-5 under such Act) of greater of 40% of the then-outstanding voting power of the voting equity interests or a person or group initiate a tender offer for the Company's common stock, Mr. Tangredi may convert unpaid compensation to Class A Convertible Preferred Stock of the Company at $1.50 per share. The Board of Directors waived the requirement to convert $100,000 of unpaid compensation into common stock during 2016. No amounts have been converted under the terms of the Agreement to date. The above terms and amounts are not necessarily indicative of the terms and amounts that would have been incurred had comparable transactions been entered into with independent parties.

Equity Transactions

Equity Transactions	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Note 6. Equity Transactions	Preferred Stock At March 31, 2018 and December 31, 2017, the Company’s Board of Directors has authorized 10,000,000 shares of preferred stock with a par value of $0.01 to be issued in series with terms and conditions to be determined by the Board of Directors. 2,000,000 of the shares of preferred stock has been designated as Class A Preferred Stock. Class A Preferred Stock shall entitle the holder thereof to 150 votes on all matters submitted to a vote of the stockholders of the Corporation. Upon any liquidation, dissolution or winding up of the Corporation, no distribution shall be made to the holders of shares of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Class A Preferred Stock unless, prior thereto, the holders of shares of Class A Preferred Stock shall have received $1.50 per share (the “Stated Amount”). The Class A Preferred Stock shall rank, with respect to the payment of liquidation, dividends and the distribution of assets, senior to the Corporation’s Common Stock. The Holder of the Class A Preferred Stock may convert all or part of the outstanding and unpaid Stated Amount into fully paid and non-assessable shares of the Corporation’s Common Stock at the Conversion Price. The number of shares receivable upon conversion equals the Stated Amount divided by the Conversion Price. The Conversion Price shall be equal to the 75% of the average closing price for the 30 trading days prior to the election to convert. At no time will the Corporation convert any of the Stated Amount into Common Stock if that would result in the Holder beneficially owning more than 49% of the sum of the voting power of the Company’s outstanding shares of Common Stock plus the voting power of the Class A Preferred Stock. No shares of Class A Preferred Stock have been issued. Common Stock At March 31, 2018 and December 31, 2017, the Company’s Board of Directors has authorized 240,000,000 shares of common stock with a par value of $0.01 to be issued in series with terms and conditions to be determined by the Board of Directors. On March 19, 2018, the parties amended the Loan and Security Agreement (“Thirteenth Amendment”) whereby the Maturity Date of the Note was extended to the earlier of (i) the date upon which the Company secures funds, regardless of source, equal to or exceeding, in the aggregate, $1,000,000 or (ii) April 10, 2018. The Company is further obligated to issue 20,000 shares of $0.01 par value common stock valued at $800. The obligations to issue shares of common stock were recorded as interest expense and current liabilities at March 31, 2018. Options In June 2000, November 2009 and February 2015, the Company’s Board of Directors adopted, and the shareholders approved, the 2000 Plan, 2009 Plan and 2015 Plan, respectively (together the “Plans”). The Plans provide for the granting of options to qualified employees of the Company, independent contractors, consultants, directors, and other individuals. The Company’s Board of Directors approved and made available 11,093,886, 15,000,000 and 10,000,000 shares of common stock to be issued pursuant to the 2000 Plan, 2009 Plan and 2015 Plan, respectively. The Plans permit grants of options to purchase common shares authorized and approved by the Company’s Board of Directors. In the three months ended March 31, 2018, there were no options granted, 850,000 options expired/forfeited, and no options exercised. In the three months ended March 31, 2017, there were no options granted, 140,000 options expired/forfeited, and no options exercised. The Plans permit grants of options to purchase commons shares authorized and approved by the Company’s Board of Directors. Stock compensation expense was $0 and $0 for the three months ended March 31, 2018 and 2017, respectively. As of March 31, 2018 and 2017, there was no unrecognized employee stock-based compensation expense related to non-vested stock options. Warrants The Company had outstanding warrants of 27,337,288 and 9,585,358 to purchase the Company’s common stock which were issued in connection with multiple financing arrangements and consulting agreements at March 31, 2018 and 2017, respectively.

Convertible Notes Payable

Convertible Notes Payable	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Note 7. Convertible Notes Payable	The Company’s convertible promissory notes at March 31, 2018 and December 31, 2017 are as follows: March 31, 2018 December 31, 2017 Convertible notes payable, bearing interest at 8%-10% $ 375,000 $ 100,000 Unamortized debt discount (227,083 ) (91,667 ) Unamortized deferred debt issuance cost (9,432 ) (4,545 ) Total $ 138,485 $ 3,788 Current portion 138,485 3,788 February 2018 Notes On February 7, 2018, the Company issued two convertible notes, each with a face amount of $87,500. The notes contain substantially the same terms. The notes and related accrued interest are convertible, at the option of the holders, into shares of the Company’s common stock at a conversion price of 60% of the lowest trading price for 15 days prior to conversion. The notes bear interest at 8% per year and mature on February 7, 2019. The notes contain original issue discount aggregating $17,500 which is being amortized over the life of the notes. The Company has also incurred aggregate legal costs of $7,500 related to the notes. These costs are also being amortized over the life of the notes. The Company received cash proceeds of $157,500. March 2018 Note On March 12, 2018, the Company issued a convertible note, with a face amount of $100,000. The note and related accrued interest are convertible, at the option of the holder, into shares of the Company’s common stock at a conversion price of $0.15 per share. The note provides for an interest payment of 10% of the principal amount of the note, payable before or upon maturity. The note matures six months from the effective date of March 12, 2018. The note contains original issue discount of $20,000 which is being amortized over the life of the note. The Company has also incurred aggregate legal costs of $6,000 related to the note. These costs are also being amortized over the life of the note. The Company received cash proceeds of $80,000. During the three months ended March 31, 2018, the Company amortized $57,084 of debt discount and $2,614 of debt issue costs to interest expense.

Derivative Liabilities

Derivative Liabilities	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Note 8. Derivative Liabilities	The Company has identified certain embedded derivatives related to its convertible notes. Since the notes are convertible into a variable number of shares or have a price reset feature, the conversion features of those notes are recorded as derivative liabilities. The accounting treatment of derivative financial instruments requires that the Company record fair value of the derivatives as of the inception date and to adjust to fair value as of each subsequent balance sheet date. February 2018 Notes The Company identified embedded derivatives related to the conversion features of the February 2018 Notes. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the note and to adjust the fair value as of each subsequent balance sheet date. The Company calculated the fair value of the embedded derivative at the inception of the notes as $283,719, using the Black Scholes Model based on the following assumptions: (1) risk free interest rate of 1.91%; (2) dividend yield of 0%; (3) volatility factor of the expected market price of the Company's common stock of 420%; and (4) an expected life of 1 year. The initial fair value of the embedded debt derivative was allocated $175,000 as debt discount, which will be amortized to interest expense over the original term of the note, with the balance of $108,719 charged to expense at issue date as non-cash interest expense. The Company has recorded additions to the derivative conversion liabilities related to the conversion feature attributable to interest accrued during the period. These additions totaled $4,692 for the three months ended March 31, 2018 and were charged to interest expense. During the three months ended March 31, 2018, the Company recorded expense of $120,183 related to the change in the fair value of the derivative. The fair value of the embedded derivative was $408,594 at March 31, 2018, determined using the Black Scholes Model with the following assumptions: (1) risk free interest rate of 2.09%; (2) dividend yield of 0%; (3) volatility factor of the expected market price of the Company's common stock of 335%; and (4) an expected life of 10 months. October 2017 Note The Company identified embedded derivatives related to the conversion features of the October 2017 note. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the Daisderivatives as of the inception date of the note and to adjust the fair value as of each subsequent balance sheet date. The Company calculated the fair value of the embedded derivative at the inception of the note as $324,426, using the Black Scholes Model based on the following assumptions: (1) risk free interest rate of 1.61%; (2) dividend yield of 0%; (3) volatility factor of the expected market price of the Company's common stock of 407%; and (4) an expected life of 11 months. The initial fair value of the embedded debt derivative was allocated $100,000 as debt discount, which will be amortized to interest expense over the original term of the note, with the balance of $224,426 charged to expense at issue date as non-cash interest expense during the year ended December 31, 2017. The Company has recorded additions to the derivative conversion liabilities related to the conversion feature attributable to interest accrued during the period. These additions totaled $4,540 for the three months ended March 31, 2018 and were charged to interest expense. During the three months ended March 31, 2018, the Company recorded income of $11,609 related to the change in the fair value of the derivative. The fair value of the embedded derivative was $236,432 at March 31, 2018, determined using the Black Scholes Model with the following assumptions: (1) risk free interest rate of 2.01%; (2) dividend yield of 0%; (3) volatility factor of the expected market price of the Company's common stock of 332%; and (4) an expected life of 7 months.

Deferred Revenue

Deferred Revenue	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Note 9. Deferred Revenue	In December 2017, the Company and Zhejiang MENRED Environmental Tech Co, Ltd., Zhejiang Province, China (“Menred”), entered into a License and Supply Agreement (the “Agreement”), effective December 21, 2017. Pursuant to the Agreement, the Company licensed certain intellectual property and improvements to Menred, for use in the manufacture and sale of energy recovery ventilators (“ERV”) and certain other HVAC systems for installation in commercial, residential or industrial buildings in China. Menred also agreed to purchase its requirements of certain products from the Company for Menred’s use, pursuant to the terms and conditions of the Agreement. Menred will also pay royalties, as defined, to the Company on a quarterly basis, based on price and production volume as provided by Menred. No royalties are due within the first year of the Agreement. Also pursuant to the Agreement, the Company is required to purchase 50,000 square meters of Product from Menred for delivery as an annual minimum with a 10,000 square meter minimum order quantity per delivery. The Agreement has a ten-year term with mutually agreed upon five year extensions. The Company recognized license revenue of $12,500 for the period ended March 31, 2018. Deferred revenue for the agreement was $486,156 and $498,656 at March 31, 2018 and December 31, 2017, respectively. The Company recognized royalty revenue of $0 and $0 for March 31, 2018 and 2017, respectively.

Litigation

Litigation	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Note 10. Litigation	From time to time, claims are made against the Company in the ordinary course of its business, which could result in litigation. Claims and associated litigation are subject to inherent uncertainties and unfavorable outcomes could occur, such as monetary damages, fines, penalties or injunctions prohibiting the Company from selling one or more products or engaging in other activities. The occurrence of an unfavorable outcome in any specific period could have a material adverse effect on the Company’s results of operations for that period or future periods. In the third quarter of 2015, the Company commenced an action for the cancellation of the 37,500,000 shares issued to Soex (the "Shares") in connection with a Securities Purchase Agreement, dated January 21, 2014 ("Soex SPA"), and 3,750,000 shares issued to Zan Investment Advisory Limited ("Zan"), which is affiliated with Soex through Aifan Liu, who was appointed as a Company board observer by SOEX and her husband, Xinghong Hua. Sharon Han, General Manager and Chairwoman of Soex, served on our board pursuant to the provisions of the Soex SPA. Ms. Han resigned from the Board of Directors effective February 1, 2016. On April 24, 2014, we entered into a Distribution Agreement (the "Distribution Agreement"), with Soex to distribute certain of the Company’s products in China. As reported in the Company’s Form 10-K for the year ended December 31, 2014 and filed with the Securities and Exchange Commission on April 1, 2015, the Company was entitled to receive, pursuant to the Distribution Agreement, royalties and a $500,000 payment, of which $50,000 has been received, that was due on or before October 24, 2014. Further, the Company reported it had not received any royalties from Soex. Soex is in breach of the Distribution Agreement. As first reported in the Company’s Form 10-Q for the quarter ended June 30, 2015, the Company began pursuing legal action against Soex for breach of the Soex SPA and Distribution Agreement. On July 8, 2015, the Company filed a lawsuit in state courts in Florida against Soex and Zan. Pursuant to the Distribution Agreement, Soex is in material breach of the following: (1) Section 1(a) of the Distribution Agreement for Soex's failure to make a $225,000 payment to the Company for the appointment of Soex as the exclusive distributor of the Products in the Field and Territory (the "Distribution Payment Default") in accordance with the terms set forth in the Distribution Agreement. Such payment was due on October 20, 2014 (the "Payment Date"). (2) Section 8(b) of the Distribution Agreement for Soex's failure to make a $225,000 payment to the Company for the grant of the license and right to manufacture, sell, lease and distribute Products (excluding manufacture of MTM), and to use the Intellectual Property in connection therewith (the "License Payment Default" and, together with the Distribution Payment Default, the "Payment Default") in accordance with the terms set forth in the Distribution Agreement. Such payment was due on the Payment Date. (3) Section 15(b) of the Distribution Agreement for Soex's failure to issue to the Company 25% of the equity (the "Equity Default") of SOEX (Beijing) Environmental Protection Technology Company Limited (the "China Subsidiary"). Because of the material breaches, the Company terminated the Distribution Agreement. As provided in Section 14(e) of the Distribution Agreement, the Company has the right to enforce any obligation due to it by the Soex. As a result, Soex still must (a) pay the remaining $450,000 due under the Distribution Agreement and the amount of royalties due, plus interest at 1.5% per month (18% per year) with interest accruing from the date that payment was due and (b) issue to the Company 25% of the equity of SOEX (Beijing) Environmental Protection Technology Company Limited. As provided in Section 14(b), neither the Company nor Soex shall be liable for compensation, reimbursement, or damages due to loss of profits on sales or anticipated sales or losses due to expenditures, investments or commitments made, or in connection with the establishment, development or maintenance of the business. Further, in consideration of the issuance of the Shares to Soex and the equity to Zan under the Soex SPA was the covenant that Soex would enter into a Distribution Agreement and establish a subsidiary in China and issue shares to the Company in the China Subsidiary. With Soex's Equity Default, Soex breached the Soex SPA and the Company is seeking return of the Shares from Soex in the lawsuit filed in July 2015. The litigation has been moved to the U.S. District Court for the Middle District of Florida where Soex has instituted a counterclaim (Civil Docket Case #: 8:15-CV-02362-MSS-EAJ). The Company believes it has a strong case against Soex because of its breaches of the agreements, however, the Company cannot make any predictions about the success of its action against Soex or whether or not Soex will have the assets to satisfy any judgment. A mediation date of June 20, 2018 has been set by the Court, and agreed to by both Dais and Soex.

Subsequent Event

Subsequent Event	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Note 11. Subsequent Event	No material events have occurred after March 31, 2018 that requires recognition or disclosure in the financial statements except as follows: On April 4, 2018, the Company issued a convertible note, with a face amount of $75,000. The note and related accrued interest are convertible, at the option of the holder, into shares of the Company’s common stock at a conversion price of $0.15 per share. The note provides for an interest payment of 10% of the principal amount of the note, payable before or upon maturity. The note matures six months from the effective date of October 4, 2018. The note contains original issue discount of $20,000 which is being amortized over the life of the note. The Company has also incurred aggregate legal costs of $6,000 related to the note. These costs are also being amortized over the life of the note. The Company received cash proceeds of $60,000. On April 30, 2018, the Company issued a convertible note, with a face amount of $150,000. The note and related accrued interest are convertible, at the option of the holder, into shares of the Company’s common stock at a conversion price of $0.15 per share. The note provides for an interest payment of 10% of the principal amount of the note, payable before or upon maturity. The note matures six months from the effective date of October 30, 2018. The note contains original issue discount of $20,000 which is being amortized over the life of the note. The Company has also incurred aggregate legal costs of $9,000 related to the note. These costs are also being amortized over the life of the note. The Company received cash proceeds of 130,000. On May 7, 2018, the parties amended the Loan and Security Agreement (“Fourteenth Amendment”) whereby the Maturity Date of the Note was extended to the earlier of (i) the date upon which the Company secures funds, regardless of source, equal to or exceeding, in the aggregate, $1,000,000 or (ii) May 22, 2018. The Company is further obligated to issue 20,000 shares of $0.01 par value common stock valued at $600.

Significant Accounting Polici19

Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2018
Significant Accounting Policies Policies
Use of estimates	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates underlying the Company’s reported financial position and results of operations include the allowance for doubtful accounts, fair value of unit based compensation, fair value impairment analysis, valuation allowance on deferred taxes and the warranty reserve.
Cash and cash equivalents	For the purposes of the Statements of Cash Flows, the Company considers all highly liquid debt instruments with a maturity of three months or less to be cash equivalents. Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits. The Company has never experienced losses related to these balances.
Fair Value of Financial Instruments	The Company's financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, deferred revenue, customer deposits and notes payable are carried at historical cost. At March 31, 2018 and 2017 the carrying amounts of these instruments approximated their fair values because of the short-term nature of these instruments.
Inventory	Inventory consists of raw materials, work-in-process and finished goods and is stated at the lower of cost, determined by first-in, first-out method, or market. Market is determined based on the net realizable value, with appropriate consideration given to obsolescence, excessive levels, deterioration and other factors. At March 31, 2018 and December 31, 2017, the Company had $58,114 and $85,173 of raw materials, $8,258 and $9,211 of in-process inventory, and $14,063 and $7,223 of finished inventory, respectively. A reserve is recorded for any inventory deemed excessive or obsolete. No reserve is considered necessary at March 31, 2018 and December 31, 2017.
Property and equipment	Property and equipment are recorded at cost. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets ranging from 3 to 7 years. Leasehold improvements are amortized over the shorter of their estimated useful lives of 5 years or the related lease term. Depreciation expense was $9,865 and $10,502 for the three months ended March 31, 2018 and 2017, respectively. Gains and losses upon disposition are reflected in the Statements of Operations in the period of disposition. Maintenance and repair expenditures are charged to expense as incurred.
Intangible assets	Identified intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company’s existing intangible assets consist solely of patents. Patents are amortized over their estimated useful or economic lives of 17 to 20 years. Patent amortization expense was $377 and $6,339 for the three months ended March 31, 2018 and 2017, respectively. Based on current capitalized costs, total patent amortization expense is estimated to be approximately $12,000 per year for the next four years.
Research and development expenses and funding proceeds	Expenditures for research and development are expensed as incurred. The Company incurred research and development costs of $84,129 and $186,824 for the three months ended March 31, 2018 and 2017, respectively. The Company accounts for proceeds received from government fundings for research as a reduction in research and development costs. The Company recorded proceeds against research and development expenses on the Statements of Operations of $8,666 and $119,906 for the three months ended March 31, 2018 and 2017, respectively.
Revenue recognition	The Company recognizes revenue when the following criteria have been met: persuasive evidence of an arrangement exists, no significant Company obligations remain, collection of the related receivable is reasonably assured, and the fees are fixed or determinable. The Company acts as a principal in its revenue transactions as the Company is the primary obligor in the transactions. Generally, the Company recognizes revenue for its products upon shipment to customers, provided no significant obligations remain and collection is probable. In certain instances, the Company’s ConsERV system product may carry a limited warranty of up to two years for all parts contained therein with the exception of the energy recovery ventilator core produced and sold by the Company. The distributor of the ConsERV system may carry a limited warranty of up to ten years. The limited warranty includes replacement of defective parts for the ConsERV system and includes workmanship and material failure for the ConsERV core. The Company recorded an accrual of $91,531 for future warranty expenses at March 31, 2018 and December 31, 2017, which is included in accrued expenses, other. Royalty revenue is recognized as earned. The Company recognized royalty revenue of $0 for the three months ended March 31, 2018 and 2017, respectively. Revenue derived from the sale of licenses is deferred and recognized as license fee revenue on a straight-line basis over the life of the license, or until the license arrangement is terminated. The Company recognized license fee revenue of $12,500 and $0 for the three months ended March 31, 2018 and 2017, respectively. The Company accounts for revenue arrangements with multiple elements under the provisions of the Financial Accounting Standards Boards (FASB) Accounting Standards Codification (ASC) Topic 605-25, “Revenue Recognition-Multiple-Element Arrangements.” In order to account for these agreements, the Company must identify the deliverables included within the agreement and evaluate which deliverables represent separate units of accounting based on if certain criteria are met, including whether the delivered element has stand-alone value to the licensee. The consideration received is allocated among the separate units of accounting, and the applicable revenue recognition criteria are applied to each of the separate units.
Derivative Liability	The Company has financial instruments that are considered derivatives or contain embedded features subject to derivative accounting. Embedded derivatives are valued separately from the host instrument and are recognized as derivative liabilities in the Company’s balance sheet. The Company measures these instruments at their estimated fair value and recognizes changes in their estimated fair value in results of operations during the period of change.
Fair Value Measurements	The Company accounts for financial instruments in accordance with FASB Accounting Standards Codification (ASC) 820 “Fair value Measurement and Disclosures” (ASC 820). ASC 820 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC 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 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: · Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. · Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g. interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. · Level 3 - Inputs that are both significant to the fair value measurement and unobservable. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The Company has recorded a derivative liability for its convertible notes which contain variable conversion prices. The table below summarizes the fair values of our financial liabilities as of March 31, 2018: Fair Value at March 31, Fair Value Measurement Using 2018 Level 1 Level 2 Level 3 Derivative liability $ 645,026 $ - $ - $ 645,026 The reconciliation of the derivative liability measured at fair value on a recurring basis using unobservable inputs (Level 3) is as follows for the three months ended March 31, 2018: Balance at beginning of period $ 243,501 Additions to derivative instruments 292,951 Loss on change in fair value of derivative liability 108,574 Balance at end of period $ 645,026
Earnings (loss) per share	Basic income (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the weighted average common shares outstanding for the period. Diluted loss per share is computed giving effect to all potentially dilutive common shares. Potentially dilutive common shares may consist of incremental shares issuable upon the exercise of stock options and warrants. In periods in which a net loss has been incurred, all potentially dilutive common shares are considered anti-dilutive and are excluded from the calculation. Common share equivalents of 76,692,403 and 28,287,916 were excluded from the computation of diluted earnings per share for the three ended March 31, 2018 and 2017, respectively, because their effect is anti-dilutive.
Recent Accounting Pronouncements	There are new accounting pronouncements issued by the Financial Accounting Standards Board (“FASB”) which are have been adopted, or not yet effective as follows: In May 2017, the FASB issued ASU 2017-09, “Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting”, which clarifies when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award changes as a result of the change in terms or conditions. If an award is not probable of vesting at the time a change is made, the new guidance clarifies that no new measurement date will be required if there is no change to the fair value, vesting conditions, and classification. This ASU will be applied prospectively and is effective for fiscal years beginning after December 15, 2017, and interim periods within those years, with early adoption permitted. The Company has adopted this standard as of the fiscal year beginning January 1, 2018 and does not expect this standard to have a material impact on its financial statements. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases. The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently evaluating the impact of the pending adoption of the new standard on its financial statements. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers" (Topic 606). The core principle of the ASU is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: 1) identify the contract(s) with a customer, 2) identify the performance obligations in the contract, 3) determine the transaction price, 4) allocate the transaction price to the performance obligations in the contract, and 5) recognize revenue when (or as) the entity satisfies a performance obligation. The Company adopted this ASU in the first quarter of fiscal 2018 on a modified retrospective basis. The adoption of this ASU did not have a material effect on the Company's financial statements.

Significant Accounting Polici20

Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2018
Significant Accounting Policies Tables
Derivative Financial Instruments	Fair Value at March 31, Fair Value Measurement Using 2018 Level 1 Level 2 Level 3 Derivative liability $ 645,026 $ - $ - $ 645,026
Reconciliation of derivative liability	Balance at beginning of period $ 243,501 Additions to derivative instruments 292,951 Loss on change in fair value of derivative liability 108,574 Balance at end of period $ 645,026

Accrued Expenses (Tables)

Accrued Expenses (Tables)	3 Months Ended
	Mar. 31, 2018
Accrued Expenses Tables
Accrued Expenses	March 31, 2018 December 31, 2017 Accrued expenses, other $ 146,540 $ 151,090 Accrued interest 150,168 103,033 Accrued warranty costs 91,531 91,531 $ 388,239 $ 345,654

Convertible Notes Payable (Tabl

Convertible Notes Payable (Tables)	3 Months Ended
	Mar. 31, 2018
Convertible Notes Payable Tables
Convertible Notes Payable	March 31, 2018 December 31, 2017 Convertible notes payable, bearing interest at 8%-10% $ 375,000 $ 100,000 Unamortized debt discount (227,083 ) (91,667 ) Unamortized deferred debt issuance cost (9,432 ) (4,545 ) Total $ 138,485 $ 3,788 Current portion 138,485 3,788

Background Information (Details

Background Information (Details Narrative)	3 Months Ended
	Mar. 31, 2018
Background Information Details Narrative
Date of incorporation	Apr. 30, 1993
State of incorporation	Florida

Going Concern and Management'24

Going Concern and Management's Plans (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Dec. 31, 2016
Going Concern And Managements Plans Details Narrative
Net loss	$ (708,409)	$ (474,275)
Accumulated deficit	(47,820,838)		$ (47,112,429)
Stockholders' deficit	(4,873,860)		(4,165,451)
Cash and cash equivalents	43,276	4,927	$ 122,036	$ 21,066
Net cash used by operating activities	$ (320,468)	$ (232,307)

Significant Accounting Polici25

Significant Accounting Policies (Details 1) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Derivative Liability	$ 645,026	$ 243,501
Level 1 [Member]
Derivative Liability
Level 2 [Member]
Derivative Liability
Level 3 [Member]
Derivative Liability	$ 645,026

Significant Accounting Polici26

Significant Accounting Policies (Details 2) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Significant Accounting Policies Details 2
Balance at beginning of period	$ 243,501
Additions to derivative instruments	292,951
Gain on change in fair value of derivative liability	108,574
Balance at end of period	$ 645,026

Significant Accounting Polici27

Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Inventory raw materials	$ 58,114		$ 85,173
Inventory in process	8,258		9,211
Inventory finished goods	14,063		7,223
Depreciation and amortization expense	9,865	$ 10,502
Patent amortization expense	377	6,339
Future amortization expense, 2019			12,000
Future amortization expense, 2020			12,000
Future amortization expense, 2021			12,000
Future amortization expense, 2022			12,000
Research and development costs	84,129	186,824
Research and development expenses, net of government grant	8,666	119,906
Accrued future warranty expenses	91,531		$ 91,531
Revenue recognition from license agreements	12,500	0
Revenue recognition from royalties	$ 0	$ 0
Common share excluded from diluted earnings per share	76,692,403	28,287,916
Description for product warranty	In certain instances, the Company’s ConsERV system product may carry a limited warranty of up to two years for all parts contained therein with the exception of the energy recovery ventilator core produced and sold by the Company. The distributor of the ConsERV system may carry a limited warranty of up to ten years
Leasehold Improvements [Member]
Property and equipment estimated useful life	5 years
Minimum [Member]
Property and equipment estimated useful life	3 years
Patents estimated useful life	17 years
Maximum [Member]
Property and equipment estimated useful life	7 years
Patents estimated useful life	20 years

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Accrued Expenses Details
Accrued expenses, other	$ 146,540	$ 151,090
Accrued interest	150,168	103,033
Accrued warranty costs	91,531	91,531
Accrued Expenses	$ 388,239	$ 345,654

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	1 Months Ended		3 Months Ended		12 Months Ended
	Jun. 24, 2016	Feb. 27, 2015	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Dec. 31, 2016
Rent expense			$ 12,198	$ 12,198
Lease term description			The lease term will terminate upon 30 days' written notice from landlord or 90 days written termination from us.
Principal loan amount increased			$ 1,332,000			$ 1,332,000
Debt instrument maturity date			Apr. 10, 2018
Accrued interest			$ 141,473		$ 102,068
Accrued compensation			1,670,752	1,631,147
Interest expense			$ 39,413	$ 13,463
Common stock par value per share			$ 0.01		$ 0.01
Loan And Security Agreement [Member]
Senior secured Promissory Note	$ 150,000
Senior secured interest rate	12.00%
Senior secured minimum interest payment	$ 2,000
Principal loan amount	$ 150,000
Security Agreement description	(i) the date upon which the Company secures funds, regardless of source, equal to or exceeding, in the aggregate, $1,000,000 or (ii) October 31, 2016.
Building [Member]
Monthly rent expense			$ 4,066
Related Party [Member]
Warrant issued					26,250,000
Exercise price					$ 0.01
Exercise period					10 years
Issuance of common stock in lieu of cash payment to related party, Shares					480,000
Chief Executive Officer [Member]
Unpaid compensation conversion into common stock amount		$ 100,000				$ 100,000
Conversion rate of common stock description		The conversion rate shall be equal to 75% of the average closing price for the Company's common stock for the 30 trading days prior to the date of conversion. The Company shall also pay to Mr. Tangredi a cash payment equal to 20% of the compensation income incurred as a result of the conversion.
Royalty payments percentage			1.50%
Accrued compensation, description		the unpaid compensation is greater than $500,000
Equity ownership percentage			52.00%
Chief Executive Officer [Member] | Class A Convertible Preferred Stock [Member]
Common stock par value per share		$ 1.50
Voting equity rate beneficial owner		40.00%

Equity Transactions (Details Na

Equity Transactions (Details Narrative)	1 Months Ended	3 Months Ended
	Mar. 19, 2018	Mar. 31, 2018USD ($)Integer$ / sharesshares	Mar. 31, 2017USD ($)shares	Dec. 31, 2017$ / sharesshares	Feb. 28, 2015shares	Nov. 30, 2009shares	Jun. 30, 2000shares
Common stock par value | $ / shares		$ 0.01		$ 0.01
Common stock shares issued		140,608,645		140,608,645
Common stock shares authorized		240,000,000		240,000,000
Preferred stock shares authorized		10,000,000		10,000,000
Preferred stock, par value | $ / shares		$ 0.01		$ 0.01
Options expired/forfeited		850,000	140,000
Stock compensation expense | $		$ 0	$ 0
Outstanding warrants		27,337,288	9,585,358
Class A Preferred Stock [Member]
Preferred stock shares authorized		2,000,000
Preferred stock, par value | $ / shares		$ 1.50
Conversion price common stock, description		The Conversion Price shall be equal to the 75% of the average closing price for the 30 trading days prior to the election to convert
Voting right in percentage		49.00%
Number of votes | Integer		150
Loan And Security Agreement [Member]
Loan and security agreement description	(i) the date upon which the Company secures funds, regardless of source, equal to or exceeding, in the aggregate, $1,000,000 or (ii) April 10, 2018. The Company is further obligated to issue 20,000 shares of $0.01 par value common stock valued at $800.
Board of Directors [Member] | Options [Member] | 2000 Plan [Member]
Common stock shares issued							11,093,886
Board of Directors [Member] | Options [Member] | 2009 Plan [Member]
Common stock shares issued						15,000,000
Board of Directors [Member] | Options [Member] | 2015 Plan [Member]
Common stock shares issued					10,000,000

Convertible Notes Payable (Deta

Convertible Notes Payable (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Convertible Notes Payable Details
Convertible notes payable, bearing interest at 8%-10%	$ 375,000	$ 100,000
Unamortized debt discount	(227,083)	(91,667)
Unamortized deferred debt issuance cost	(9,432)	(4,545)
Total	138,485	3,788
Current portion	$ 138,485	$ 3,788

Convertible Notes Payable (De32

Convertible Notes Payable (Details Narrative) - USD ($)	Mar. 12, 2018	Feb. 07, 2018	Mar. 31, 2018	Mar. 31, 2017
Maturity date of convertible notes payable			Apr. 10, 2018
Amortization of deferred debt issue costs			$ 2,614
Amortization of debt discount			57,084	$ 51,434
March 2018 Note [Member]
Convertible notes payable	$ 100,000
Common stock conversion price per share	$ 0.15
Maturity date of convertible notes payable	Mar. 12, 2018
Amortization of deferred debt issue costs	$ 20,000
Legal costs	6,000
Cash proceeds	$ 80,000
Interest rate	10.00%
February 2018 Notes [Member]
Convertible notes payable		$ 87,500
Maturity date of convertible notes payable		Feb. 7, 2019
Amortization of deferred debt issue costs		$ 17,500
Legal costs		7,500
Cash proceeds		$ 157,500
Description of conversion price		The notes and related accrued interest are convertible, at the option of the holders, into shares of the Company’s common stock at a conversion price of 60% of the lowest trading price for 15 days prior to conversion.
Interest rate		8.00%
Amortization of debt discount			$ 175,000

Derivative Liabilities (Details

Derivative Liabilities (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Debt discount	$ 57,084	$ 51,434
Interest expense	227,359	$ 67,989
October 2017 Note One [Member]
Fair value of the embedded derivative	$ 236,432
Risk free interest rate	2.01%
Dividend yield	0.00%
Volatility	332.00%
Expected life	7 months
Expenses change in the fair value of the derivative	$ 11,609
February 2018 Notes One [Member]
Fair value of the embedded derivative	$ 408,594
Risk free interest rate	2.09%
Dividend yield	0.00%
Volatility	335.00%
Expected life	10 months
Expenses change in the fair value of the derivative	$ 120,183
October 2017 Note [Member]
Fair value of the embedded derivative	$ 324,426
Risk free interest rate	1.61%
Dividend yield	0.00%
Volatility	407.00%
Expected life	11 months
Debt discount			$ 100,000
Additions to the derivatives liabilities	$ 4,540
Non cash interest expense			$ 224,426
February 2018 Notes [Member]
Fair value of the embedded derivative	$ 283,719
Risk free interest rate	1.91%
Dividend yield	0.00%
Volatility	420.00%
Expected life	1 year
Debt discount	$ 175,000
Additions to the derivatives liabilities	4,692
Non cash interest expense	$ 108,719

Deferred Revenue (Details Narra

Deferred Revenue (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
License revenue	$ 12,500
Deferred revenue	486,156		$ 498,656
Royalty revenue	$ 0	$ 0
Zhejiang Province [Member]
License and supply agreement description			The Company is required to purchase 50,000 square meters of Product from Menred for delivery as an annual minimum with a 10,000 square meter minimum order quantity per delivery. The Agreement has a ten-year term with mutually agreed upon five year extensions.

Litigation (Details Narrative)

Litigation (Details Narrative) - USD ($)	Jul. 08, 2015	Apr. 24, 2014	Sep. 30, 2017	Sep. 30, 2015
Soex [Member]
Royalty payments paid		$ 500,000
Royalty received		$ 50,000
Payment due date	Oct. 20, 2014
Failure to make payment	$ 225,000
Percentage of equity default	25.00%
Soex [Member] | Securities Purchase Agreement [Member]
Cancellation of share issued				37,500,000
Soex [Member] | Employment Agreement [Member]
Percentage of equity default			25.00%
Remaining balance to pay			$ 450,000
Interest rate per month			1.50%
Interest rate per year			18.00%
Zan [Member]
Failure to make payment	$ 225,000
Zan [Member] | Securities Purchase Agreement [Member]
Cancellation of share issued				3,750,000

Subsequent Event (Details Narra

Subsequent Event (Details Narrative) - USD ($)	May 07, 2018	Apr. 04, 2018	Apr. 30, 2018	Mar. 19, 2018	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Maturity Date					Apr. 10, 2018
Amortized original issue discount					$ 2,614
Common stock, shares issued					140,608,645		140,608,645
Loan And Security Agreement [Member]
Loan and security agreement description				(i) the date upon which the Company secures funds, regardless of source, equal to or exceeding, in the aggregate, $1,000,000 or (ii) April 10, 2018. The Company is further obligated to issue 20,000 shares of $0.01 par value common stock valued at $800.
Subsequent Event [Member] | Convertible Notes [Member]
Convertible notes payable		$ 75,000	$ 150,000
Interest rate		10.00%	10.00%
Maturity Date		Oct. 4, 2018	Oct. 30, 2018
Amortized original issue discount		$ 20,000	$ 20,000
Legal costs		$ 6,000	$ 9,000
Common stock conversion price per share		$ 0.15	$ 0.15
Cash proceeds		$ 60,000	$ 130,000
Subsequent Event [Member] | Loan And Security Agreement [Member]
Loan and security agreement description	(i) the date upon which the Company secures funds, regardless of source, equal to or exceeding, in the aggregate, $1,000,000 or (ii) May 22, 2018. The Company is further obligated to issue 20,000 shares of $0.01 par value common stock valued at $600.