Dais (DLYT) 10-Q 14 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 10, 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	Sep. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		147,900,182
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,018
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Ex Transition Period	false

CONDENSED BALANCE SHEETS

CONDENSED BALANCE SHEETS - USD ($)	Sep. 30, 2018	Dec. 31, 2017
CURRENT ASSETS:
Cash and cash equivalents	$ 204,264	$ 122,036
Accounts receivable, net	19,839	5,058
Other receivables	11,270	3,598
Inventory	40,422	101,607
Prepaid expenses	63,906	12,294
Total Current Assets	339,701	244,593
Property and equipment, net, including accumulated depreciation of $391,811 and $371,917 at September 30, 2018 and December 31, 2017, respectively	62,306	91,900
OTHER ASSETS:
Deposits	4,780	5,080
Patents, net, including accumulated amortization of $284,050 and $266,915 at September 30, 2018 and December 31, 2017, respectively	147,503	117,606
Total Other Assets	152,283	122,686
TOTAL ASSETS	554,290	459,179
CURRENT LIABILITIES:
Accounts payable, including related party payables of $150,096 and $104,543 at September 30, 2018 and December 31, 2017, respectively	564,011	353,193
Accrued expenses, other, including interest due to related party of $221,612 and $102,059 at September 30, 2018 and December 31, 2017, respectively	624,598	345,654
Accrued compensation and related benefits	1,874,603	1,727,259
Customer deposits	215,117	120,579
Note Payable to related party	1,332,000	1,332,000
Current portion of deferred revenue	461,156	498,656
Derivative liabilities	600,832	243,501
Convertible notes payable, net of unamortized debt discount and deferred debt issuance costs	709,060	3,788
Total Current Liabilities	6,381,377	4,624,630
Total Liabilities	6,381,377	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; 148,957,395 and 140,608,645 shares issued; and 147,700,182 and 139,351,432 shares outstanding at September 30, 2018 and December 31, 2017, respectively	1,489,575	1,406,087
Capital in excess of par value	43,282,440	43,003,003
Accumulated deficit	(49,136,990)	(47,112,429)
Total	(4,364,975)	(2,703,339)
Treasury stock at cost, 1,257,213 shares	(1,462,112)	(1,462,112)
Total Stockholders' Deficit	(5,827,087)	(4,165,451)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 554,290	$ 459,179

CONDENSED BALANCE SHEETS (Paren

CONDENSED BALANCE SHEETS (Parenthetical) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
ASSETS
Accumulated depreciation	$ 391,811	$ 371,917
OTHER ASSETS:
Accumulated amortization	284,050	266,915
CURRENT LIABILITIES:
Accounts payable related party payables	150,096	104,543
Accrued expenses related party	$ 221,612	$ 102,059
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	148,757,395	140,608,645
Common stock, shares outstanding	147,700,182	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		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
REVENUE
Sales	$ 342,058	$ 112,686	$ 878,336	$ 249,086
Royalty and license fees	12,500		37,500
Total revenue	354,558	112,686	915,836	249,086
COST OF GOODS SOLD	213,661	91,767	607,163	207,776
GROSS MARGIN	140,897	20,919	308,673	41,310
OPERATING EXPENSES
Research and development, net	56,983	66,053	197,195	229,074
Selling, general and administrative	401,910	341,082	1,492,330	1,241,484
TOTAL OPERATING EXPENSES	458,893	407,135	1,689,525	1,470,558
LOSS FROM OPERATIONS	(317,996)	(386,216)	(1,380,852)	(1,429,248)
OTHER INCOME (EXPENSE)
Interest expense, net income	(387,398)	(200,117)	(877,110)	(777,870)
Change in fair value of derivative liabilities	(94,713)	9,307	(116,320)	204,482
Gain on extinguishment of debt	154,047		349,721
TOTAL OTHER INCOME (EXPENSE), NET	(328,064)	(190,810)	(643,709)	(573,388)
NET LOSS	$ (646,060)	$ (577,026)	$ (2,024,561)	$ (2,002,636)
NET LOSS PER COMMON SHARE, BASIC AND DILUTED	$ (0.01)	$ (0.01)	$ (0.01)	$ (0.02)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING, BASIC AND DILUTED	147,678,443	127,901,432	143,222,751	124,792,864

CONDENSED STATEMENT OF STOCKHOL

CONDENSED STATEMENT OF STOCKHOLDERS' DEFICIT (Unaudited) - 9 months ended Sep. 30, 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)
Shares issued for services and accrued expenses, Shares	8,348,750
Shares issued for services and accrued expenses, Amount	$ 83,488	279,437			362,925
Net loss			(2,024,561)		(2,024,561)
Ending Balance, Shares at Sep. 30, 2018	148,957,395
Ending Balance, Amount at Sep. 30, 2018	$ 1,489,575	$ 43,282,440	$ (49,136,990)	$ (1,462,112)	$ (5,827,087)

CONDENSED STATEMENTS OF CASH FL

CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (2,024,561)	$ (2,002,636)
Adjustments to reconcile net loss to net cash and cash equivalents used in operating activities:
Amortization of deferred debt issue costs	21,345	8,226
Depreciation and amortization	46,729	47,288
Gain on extinguishment of debt	(349,721)
Change in fair value of derivative liability	116,320	(204,482)
Non-cash interest expenses	323,669	372,389
Fair value of warrant for debt modification		212,457
Amortization of debt discount	207,579	115,673
Stock issued for finance cost		1,800
Stock compensation	300,000	180,000
(Increase) decrease in:
Accounts receivable	(14,781)	374
Inventory	61,185	(67,373)
Other receivables
Prepaid expenses/Other current assets	(59,284)	(3,277)
Deposits	300
Increase (decrease) in:
Accounts payable	210,818	206,102
Accrued related party
Accrued expenses	466,288	331,030
Customer Deposits	94,538	152,219
Deferred revenue	(37,500)	(7,741)
Net cash used in operating activities	(637,076)	(657,951)
CASH FLOWS FROM INVESTING ACTIVITIES:
Increase in patent costs	(47,032)	(16,560)
Purchases of property and equipment		(2,237)
Net cash used in investing activities	(47,032)	(18,797)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from note payable - related party		405,000
Proceeds from note payables	1,189,132	277,000
Repayment of note	(422,796)
Net cash provided by financing activities	766,336	682,000
Net decrease (increase) in cash and cash equivalents	82,228	5,252
Cash and cash equivalents, beginning of period	122,036	21,066
Cash and cash equivalents, end of period	204,264	26,318
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	143,215	119
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Payment of accrued expense with note payable		43,000
Payment of accrued expense with common stock	40,000
Issuance of common stock for settlement of accrued expenses		102,000
Issuance of common stock for settlement of interest due to related party		15,400
Issuance of common stock for deferred debt issuance costs	22,925	22,500
Debt costs deducted from proceeds of notes	23,000	16,750
Issuance of warrants for debt modification		212,457
Initial derivative liability at issuance of note	604,219	709,140
Initial debt discount at issuance of note	$ 513,000	$ 371,425

Background Information

Background Information	9 Months Ended
	Sep. 30, 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, ConsERV TM 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 and may briefly affect the Company’s operations. 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 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 and nine month periods ended September 30, 2018 are not necessarily indicative of the results that may be expected for any future periods or for the entire year ending December 31, 2018.

Going Concern and Management's

Going Concern and Management's Plans	9 Months Ended
	Sep. 30, 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 nine months ended September 30, 2018, the Company generated a net loss of $2,024,561 and the Company has incurred significant losses since inception. As of September 30, 2018, the Company had an accumulated deficit of $49,136,990, a stockholders’ deficit of $5,827,087 and cash and cash equivalents of $204,264. The Company used $637,076 and $657,951 of cash from operations during the nine months ended September 30, 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 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; and 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	9 Months Ended
	Sep. 30, 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 and nine month periods ended September 30, 2018 and 2017, (b) the financial position at September 30, 2018 and December 31, 2017, and (c) the cash flows for the nine month periods ended September 30, 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 September 30, 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 and nine months ended September 30, 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 and $37,500 and $0 for the nine months ended September 30, 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 September 30, 2018: Fair Value at September 30, Fair Value Measurement Using 2018 Level 1 Level 2 Level 3 Derivative liability $ 600,832 $ - $ - $ 600,832 The reconciliation of the derivative liability measured at fair value on a recurring basis using unobservable inputs (Level 3) is as follows for the nine months ended September 30, 2018: Balance at beginning of period $ 243,501 Additions to derivative instruments 819,167 Extinguished derivative liabilities (578,156 ) Loss on change in fair value of derivative liability 116,320 Balance at end of period $ 600,832 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	9 Months Ended
	Sep. 30, 2018
Notes to Financial Statements
Note 4. Accrued Expenses	Accrued expenses consist of the following: September 30, 2018 December 31, 2017 Accrued expenses, other $ 164,283 $ 151,090 Accrued interest 368,784 103,033 Accrued warranty costs 91,531 91,531 $ 624,598 $ 345,654

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2018
Notes to Financial Statements
Note 5. Related Party Transactions	The Company leases a building, per lease agreement entered into on March 18, 2005, that is owned by two stockholders of the Company, one of whom is the Company’s Chief Executive Officer. The rental expense for this building is $4,066 per month, including sales tax. The Company recognized rent expense related to this lease of $12,198 and $36,594 for the three months and the nine months ended September 30, 2018 and 2017, respectively. The Company has accrued compensation due to the Chief Executive Officer as of September 30, 2018 and December 31, 2017 of $1,747,290 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 (the “Maturity Date”). During 2016 to the period ended September 30, 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 November 16, 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, from the date of issuance 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 $40,289 and $21,719 for the three months and $119,553 and $52,685 for the nine month periods ended September 30, 2018 and 2017, respectively. Accrued interest on the Note was $221,612 and $102,059 at September 30, 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 (the “Tangredi Employment Agreement 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 Tangredi Employment Agreement 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 of the Company or a person or group initiate a tender offer for the Company’s common stock, Mr. Tangredi may convert unpaid compensation into Class A Convertible Preferred Stock (“Class A Preferred Stock”) of the Company at a conversion price of $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 Tangredi Employment Agreement Amendment 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	9 Months Ended
	Sep. 30, 2018
Notes to Financial Statements
Note 6. Equity Transactions	Preferred Stock At September 30, 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 Company. Upon any liquidation, dissolution or winding up of the Company, 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 Company’s Common Stock. The Holder (as defined in the Class A Preferred Stock certificate of designations) of the Class A Preferred Stock may convert all or part of the outstanding and unpaid Stated Amount (as defined in the Class A Preferred Stock certificate of designations) into fully paid and non-assessable shares of the Company’s common stock at the Conversion Price (as defined in the Class A Preferred Stock certificate of designations). 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 Company 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 September 30, 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 common stock valued at $800. The obligations to issue shares of common stock were recorded as interest expense and current liabilities at September 30, 2018. On April 23, 2018, the Company entered into a consulting agreement with an outside business consultant. Under the terms of the consulting agreement, services commenced on April 23, 2018 and continued for three months. The Company issued to the consultant 3,000,000 shares of common stock, valued at $120,000. All shares earned under the agreement are considered earned in full and beneficially owned as of April 25, 2018. 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. The obligations to issue shares of common stock were recorded as interest expense and current liabilities at September 30, 2018. On May 15, 2018, the Company issued 2,000,000 shares of common stock as consideration towards past services rendered, valued at $40,000, in accordance with the License and Supply Agreement with Zhejiang MENRED Environmental Tech Co, Ltd. effective December 21, 2017. The value of the shares issued was included in accrued expenses at December 31, 2017. On June 15, 2018, the Company issued 3,000,000 shares of common stock, valued at $180,000, pursuant to an agreement with an outside business consultant. On June 20, 2018, the Company issued 148,750 shares of common stock, valued at $8,925, as further incentive to an outside investor to issue a convertible note with a face amount of $89,250. (See Note 7. – Convertible Notes Payable). On July 11, 2018, the Company issued 200,000 shares of common stock, valued at $14,000, as further incentive to an outside investor to issue a convertible note with a face amount of $100,000. (See Note 7. – Convertible Notes Payable). On July 31, 2018, the parties amended the Loan and Security Agreement (“Fifteenth 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) August 22, 2018. The Company is further obligated to issue 20,000 shares of $0.01 par value common stock valued at $1,200. The obligations to issue shares of common stock were recorded as interest expense and current liabilities at September 30, 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 nine months ended September 30, 2018, there were no options granted, 1,250,000 options expired/forfeited, and no options were exercised. In the nine months ended September 30, 2017, there were no options granted, 1,150,000 options expired/forfeited, and no options were exercised. The Plans permit grants of options to purchase shares of common stock authorized and approved by the Company’s Board of Directors. Stock compensation expense was $0 for the three and nine months ended September 30, 2018 and 2017, respectively. As of September 30, 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 26,250,000 and 16,835,358 to purchase the Company’s common stock which were issued in connection with multiple financing arrangements and consulting agreements at September 30, 2018 and December 31, 2017, respectively.

Convertible Notes Payable

Convertible Notes Payable	9 Months Ended
	Sep. 30, 2018
Notes to Financial Statements
Note 7. Convertible Notes Payable	The Company’s convertible promissory notes at September 30, 2018 and December 31, 2017 are as follows: September 30, 2018 December 31, 2017 Convertible notes payable, bearing interest at 8%-10% $ 995,500 $ 100,000 Unamortized debt discount (262,869 ) (91,667 ) Unamortized deferred debt issuance cost (23,571 ) (4,545 ) Total $ 709,060 $ 3,788 Current portion 709,060 3,788 October 2017 Note On October 31, 2017, the Company issued a convertible note (the “October Note”) in the amount of $100,000. This note and accrued interest were convertible, at the option of the holder, 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. This note bore interest at 8% per year and matured on October 31, 2018. The Company incurred legal costs of $5,000 related to this note which have been amortized over the life of the note. The Company also recorded debt discount of $100,000 related to the embedded derivative, as described in Note 8, which has been amortized over the life of this note. The note was redeemed during the second quarter of 2018. As a result of the extinguishment of the debt and the related derivative liabilities, we recorded a gain of $195,675. February 2018 Notes On February 7, 2018, the Company issued two convertible notes (the “February 2018 Notes”), each in the principal amount of $87,500. The February 2018 Notes contained substantially the same terms. The February 2018 Notes and accrued interest were 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 bore interest at 8% per year and matured on February 7, 2019. The February 2018 Notes contained original issue discount aggregating $17,500 which has been amortized over the life of the February 2018 Notes. The Company has also incurred aggregate legal costs of $7,500 related to the notes. These costs have also been amortized over the life of the February 2018 Notes. The Company received cash proceeds of $150,000. These February 2018 Notes were redeemed during the third quarter of 2018. As a result of the extinguishment of the debt and the related derivative liabilities, we recorded a gain of $154,047. March 2018 Note On March 12, 2018, the Company issued a convertible note, in the principal amount of $100,000. This note and 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. This note provides for an interest payment of 10% of the principal amount of the note, payable before or upon maturity. This note matured six months from the effective date of March 12, 2018. The note contains original issue discount of $20,000, payable at maturity, which has been amortized over the life of the note. The Company has also incurred aggregate legal costs of $6,000 related to the note. These costs have also been amortized over the life of this note. The Company received cash proceeds of $100,000. On September 18, 2018, the amount of the original issue discount of $20,000, 10% interest and legal costs of $6,000 was repaid to extend the maturity date of the note to March 18, 2019. We incurred additional original issue discount of $20,000, 10% interest and legal costs of $6,000 as a result of the extension. These costs are being amortized over the life of this new note. April 2018 Notes On April 4, 2018, the Company issued a convertible note, in the principal amount of $75,000. This note and 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. This note provides for an interest payment of 10% of the principal amount of the note, payable before or upon maturity. This note matures six months from the effective date of April 4, 2018. The note contains original issue discount of $20,000, payable at maturity, 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 this note. The Company received cash proceeds of $75,000. On April 30, 2018, the Company issued a convertible note, in the principal amount of $150,000. This note and 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 April 30, 2018. The note contains original issue discount of $30,000, payable at maturity, 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 $150,000. June 2018 Notes On June 1, 2018, the Company issued a convertible note, in the principal amount of $50,000. This note and 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. This note provides for an interest payment of 10% of the principal amount of this note, payable before or upon maturity. This note matures six months from the effective date of June 1, 2018. This note contains original issue discount of $10,000, payable at maturity, which is being amortized over the life of the note. The Company has also incurred aggregate legal costs of $3,000 related to the note. These costs are also being amortized over the life of this note. The Company received cash proceeds of $50,000. On June 6, 2018, the Company issued a convertible note, in the principal amount of $100,000. This note and 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. This note provides for an interest payment of 10% of the principal amount of this note, payable before or upon maturity. This note matures six months from the effective date of June 6, 2018. This note contains original issue discount of $20,000, payable at maturity, which is being amortized over the life of this 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 this note. The Company received cash proceeds of $100,000. On June 7, 2018, the Company issued a convertible note, in the principal amount of $100,000. This note and 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. This note provides for an interest payment of 10% of the principal amount of this note, payable before or upon maturity. This note matures six months from the effective date of June 7, 2018. This note contains original issue discount of $20,000, payable at maturity, which is being amortized over the life of this 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 this note. The Company received cash proceeds of $100,000. On June 22, 2018, the Company issued a convertible note (the “June 22, 2018 Note”), in the principal amount of $89,250. The June 22, 2018 Note and 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 June 22, 2018 Note bears interest at 8% per year and matures on June 4, 2019. The Company has also incurred aggregate legal costs of $4,250 related to the June 22, 2018 Note. These costs are also being amortized over the life of the June 22, 2018 Note. The Company received cash proceeds of $85,000. July 2018 Note On July 18, 2018, the Company issued a convertible note (the “July 2018 Note”), with a face amount of $100,000. This note and 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. This note bears interest at 10% per year and matures on July 10, 2019. The Company has also incurred aggregate legal costs of $5,000 related to the note. These costs are also being amortized over the life of this note. The Company received cash proceeds of $95,000. August 2018 Notes On August 13, 2018, the Company issued a convertible note, in the principal amount of $100,000. This note and 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. This note provides for an interest payment of 10% of the principal amount of the note, payable before or upon maturity. This note matures six months from the effective date of August 13, 2018. This note contains original issue discount of $20,000, payable at maturity, which is being amortized over the life of this 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 this note. The Company received cash proceeds of $100,000. On August 28, 2018, the Company entered an agreement for a short term loan, with a principal amount of $59,132. The agreement provides for an interest payment of 8% of the principal amount of the note, payable before or upon maturity. The note matures twelve business days from the effective date of August 28, 2018. The Company received cash proceeds of $59,132. The note was repaid on September 21, 2018. September Note On September 17, 2018, the Company issued a convertible note (the “September 2018 Note”), in the principal amount of $131,250. The September 2018 Note 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 September 2018 Note bears interest at 8% per year and matures on September 12, 2019. The Company has also incurred aggregate legal costs of $6,250 related to the September 2018 Note. These costs are also being amortized over the life of the September 2018 Note. The Company received cash proceeds of $125,000. During the three months ended September 30, 2018, the Company amortized $81,823 of debt discount and $15,374 of debt issue costs to interest expense. During the nine months ended September 30, 2018, the Company amortized $207,579 of debt discount and $21,345 of debt issue costs to interest expense.

Derivative Liabilities

Derivative Liabilities	9 Months Ended
	Sep. 30, 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. September 2018 Note The Company identified embedded derivatives related to the conversion features of the September 2018 Note. 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 note as $194,417, using the Black Scholes Model based on the following assumptions: (1) risk free interest rate of 2.56%; (2) dividend yield of 0%; (3) volatility factor of the expected market price of the Company’s common stock of 290%; and (4) an expected life of 1 year. The initial fair value of the embedded debt derivative was allocated $131,250 as debt discount, which will be amortized to interest expense over the original term of the note, with the balance of $63,167 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 $1,075 for the three and nine months ended September 30, 2018 and were charged to interest expense. During the three and nine months ended September 30, 2018, the Company recorded expense of $63,767 related to the change in the fair value of the derivative. The fair value of the embedded derivative was $259,259 at September 30, 2018, determined using the Black Scholes Model with the following assumptions: (1) risk free interest rate of 2.59%; (2) dividend yield of 0%; (3) volatility factor of the expected market price of the Company’s common stock of 275%; and (4) an expected life of 11.5 months. July 2018 Note The Company identified embedded derivatives related to the conversion features of the July 2018 Note. 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 note as $152,814, using the Black Scholes Model based on the following assumptions: (1) risk free interest rate of 2.36%; (2) dividend yield of 0%; (3) volatility factor of the expected market price of the Company’s common stock of 320%; and (4) an expected life of 1 year. 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 $52,814 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 $4,146 for the three and nine months ended September 30, 2018 and were charged to interest expense. During the three and nine months ended September 30, 2018, the Company recorded expense of $29,512 related to the change in the fair value of the derivative. The fair value of the embedded derivative was $186,472 at September 30, 2018, determined using the Black Scholes Model with the following assumptions: (1) risk free interest rate of 2.475%; (2) dividend yield of 0%; (3) volatility factor of the expected market price of the Company’s common stock of 249%; and (4) an expected life of 9 months. June 2018 Note The Company identified embedded derivatives related to the conversion features of the June 22, 2018 Note. 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 note as $158,278, using the Black Scholes Model based on the following assumptions: (1) risk free interest rate of 2.33%; (2) dividend yield of 0%; (3) volatility factor of the expected market price of the Company’s common stock of 319%; and (4) an expected life of 11 months. The initial fair value of the embedded debt derivative was allocated 89,250 as debt discount, which will be amortized to interest expense over the original term of the note, with the balance of $69,028 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 $3,060 and $3,371 for the three and nine months ended September 30, 2018, respectively, and were charged to interest expense. During the three and nine months ended September 30, 2018, the Company recorded income of $6,046 and $6,548, respectively, related to the change in the fair value of the derivative. The fair value of the embedded derivative was $155,101 at September 30, 2018, determined using the Black Scholes Model with the following assumptions: (1) risk free interest rate of 2.36%; (2) dividend yield of 0%; (3) volatility factor of the expected market price of the Company’s common stock of 219%; and (4) an expected life of 8 months. 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 periods. These additions totaled $2,609 and $12,833 for the three and nine months ended September 30, 2018, respectively, and were charged to interest expense. During the three and nine months ended September 30, 2018, the Company recorded expense of $7,479 and income of $342, respectively, related to the change in the fair value of the derivative. The fair value of the embedded derivative was $296,210 at the time of the redemption of the underlying debt, determined using the Black Scholes Model with the following assumptions: (1) risk free interest rate of 2.25%; (2) dividend yield of 0%; (3) volatility factor of the expected market price of the Company’s common stock of 238%; and (4) an expected life of 5.25 months. This amount has been credited to gain on extinguishment upon redemption. October 2017 Note The Company identified embedded derivatives related to the conversion features of the October Note. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the Dais 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 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 $0 and $8,514 for the three and nine months ended September 30, 2018, respectively, and were charged to interest expense. During the three and nine months ended September 30, 2018, the Company recorded expense of $0 and $29,931, respectively, related to the change in the fair value of the derivative. The fair value of the embedded derivative was $281,946 at the time of the redemption of the underlying debt, determined using the Black Scholes Model with the following assumptions: (1) risk free interest rate of 2.12%; (2) dividend yield of 0%; (3) volatility factor of the expected market price of the Company’s common stock of 270%; and (4) an expected life of 7.5 months. This amount has been credited to gain on extinguishment upon redemption.

Deferred Revenue

Deferred Revenue	9 Months Ended
	Sep. 30, 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 “License and Supply Agreement”), effective December 21, 2017. Pursuant to the License and Supply 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 License and Supply 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 License and Supply Agreement. Also pursuant to the License and Supply 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 License and Supply Agreement has a ten-year term with mutually agreed upon five year extensions. The Company recognized license revenue of $12,500 and $37,500 for the three and nine months ended September 30, 2018, respectively. Deferred revenue for the agreement was $461,156 and $498,656 at September 30, 2018 and December 31, 2017, respectively. The Company recognized royalty revenue of $0 for September 30, 2018 and 2017, respectively.

Litigation

Litigation	9 Months Ended
	Sep. 30, 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 for this case was moved to the U.S. District Court for the Middle District of Florida where Soex instituted a counterclaim (Civil Docket Case #: 8:15-CV-02362-MSS-EAJ). A Mediation between the Parties was held in Tampa on June 20th, 2018 as set by the court and agreed to by Dais and Soex. A mutually agreeable arrangement was not reached. On the same date, the Company filed a second law suit against Soex and Liwei Cao (a former Dais employee) for breach of contract, a wide-spread, growing misuse and theft of Dais Intellectual Property. The Company’s complaint alleges Soex and Cao of purposefully joined forces and are wrongfully using and manufacturing product using the Company’s Intellectual Property. The Company will defend itself by every method open to it seeking Soex and its affiliates, and Cao immediately cease and desist the manufacturing and use of all of the Company’s Intellectual Property. Further the Company will seek, based on its firm belief, maximum damages allowed caused to by Soex, its affiliates, and Cao inappropriate use, manufacturing, etc. of the Company’s Intellectual Property, and it feels that the second case will lead to a judgment in favor of the Company. On September 19, 2018, a pre-trial conference was held in Tampa finding a trial date set for October 22, 2018. The trial for the original case was held on October 22, 2018 through October 24, 2018. The jury at the conclusion of the trial did not award monetary damages to either party for claims or counterclaims. On October 24, 2018, the Company initiated a third law suit against an affiliate of Soex (Transtech), and the Chairperson of the affiliate and Soex, on testimony given during the trial where a formal admission was made during court proceedings this affiliate is illegally using the Company’s Intellectual Property. The Company will seek maximum relief and damages for this on-going and growing illegal misuse the Company’s Intellectual Property. The Company feels this third action will lead in a judgment in favor of the Company.

Subsequent Event

Subsequent Event	9 Months Ended
	Sep. 30, 2018
Notes to Financial Statements
Note 11. Subsequent Event	No material events have occurred after September 30, 2018 that requires recognition or disclosure in the financial statements except as follows: On October 1, 2018, the Company issued 200,000 shares of common stock, valued at $6,000, as further incentive to an outside investor for a convertible note in the principal amount of $100,000. On October 5, 2018, the Company issued a convertible note, in the principal amount of $135,000. The note 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 matures on October 5, 2019. The note contains original issue discount of $10,000 which is being amortized over the life of the note. These costs are also being amortized over the life of the notes. The Company received cash proceeds of $125,000. On October 16, 2018, the Company redeemed the April 4, 2018 convertible note described in Note 7. The redemption payment was $103,500, representing the outstanding principal amount of $75,000 plus the legal fees, interest and original issue discount aggregating $28,500. The obligations under the convertible note is considered satisfied by both parties. On October 30, 2018, half of the amount of the original issue discount of $15,000, 10% interest and legal costs of $4,500 was repaid to extend the maturity date of the convertible note issued on April 30, 2018. We incurred additional original issue discount of $30,000, 10% interest and legal costs of $9,000 as a result of the extension. These costs are being amortized over the life of the note. On October 31, 2018, the parties amended the Loan and Security Agreement (“Sixteenth 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) November 16, 2018. The Company is further obligated to issue 20,000 shares of $0.01 par value common stock valued at $1,200. On November 1, 2018, the Company issued ten (10) shares of Class B Redeemable Preferred Stock par value $0.01 per share (“Class B Stock”) having a stated value of $1.50 per share to Timothy N. Tangredi, the Company’s Chief Executive Officer, in exchange for $15, pursuant to approval of the Board of Directors of the Company. Pursuant to the Company’s Certificate of Incorporation, as amended, the Company established 10,000 shares of the Class B Stock. The Class B Stock includes the right to vote in an amount equal to 51% of the votes to approve certain corporate actions, including, without limitation, changing the name of the Company and increasing the number of authorized shares.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2018
Significant Accounting 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 September 30, 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 September 30, 2018 and December 31, 2017, the Company had $25,958 and $85,173 of raw materials, $9,859 and $9,211 of in-process inventory, and $4,605 and $7,223 of finished inventory, respectively. A reserve is recorded for any inventory deemed excessive or obsolete. No reserve is considered necessary at September 30, 2018 and December 31, 2017.
Property and equipment	–
Intangible assets	–
Research and development expenses and funding proceeds	Expenditures for research and development are expensed as incurred. The Company incurred research and development costs of $81,272 and $80,891 for the three months ended and $246,499 and $376,388 for the nine months ended September 30, 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 $24,289 and $14,838 for the three months ended and $49,304 and $147,314 for the nine months ended September 30, 2018 and 2017, respectively.
Revenue recognition	The Company has adopted the new revenue recognition guidelines in accordance with ASC 606, Revenue from Contracts with Customers (ASC 606), commencing from the period under this report. The Company analyzes its contracts to assess that they are within the scope and in accordance with ASC 606. In determining the appropriate amount of revenue to be recognized as the Company fulfills its obligations under each of its agreements, whether for goods and services or licensing, the Company performs the following steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations based on estimated selling prices; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. 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 September 30, 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 and nine months ended September 30, 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 and $37,500 and $0 for the nine months ended September 30, 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 September 30, 2018: Fair Value at September 30, Fair Value Measurement Using 2018 Level 1 Level 2 Level 3 Derivative liability $ 600,832 $ - $ - $ 600,832 The reconciliation of the derivative liability measured at fair value on a recurring basis using unobservable inputs (Level 3) is as follows for the nine months ended September 30, 2018: Balance at beginning of period $ 243,501 Additions to derivative instruments 819,167 Extinguished derivative liabilities (578,156 ) Loss on change in fair value of derivative liability 116,320 Balance at end of period $ 600,832
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 69,964,573 and 35,487,916 were excluded from the computation of diluted earnings per share for the three and nine months ended September 30, 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 Polici_3

Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2018
Disclosure Significant Accounting Policies Tables Abstract
Derivative Financial Instruments	Fair Value at September 30, Fair Value Measurement Using 2018 Level 1 Level 2 Level 3 Derivative liability $ 600,832 $ - $ - $ 600,832
Reconciliation of derivative liability	Balance at beginning of period $ 243,501 Additions to derivative instruments 819,167 Extinguished derivative liabilities (578,156 ) Loss on change in fair value of derivative liability 116,320 Balance at end of period $ 600,832

Accrued Expenses (Tables)

Accrued Expenses (Tables)	9 Months Ended
	Sep. 30, 2018
Accrued Expenses
Accrued Expenses	September 30, 2018 December 31, 2017 Accrued expenses, other $ 164,283 $ 151,090 Accrued interest 368,784 103,033 Accrued warranty costs 91,531 91,531 $ 624,598 $ 345,654

Convertible Notes Payable (Tabl

Convertible Notes Payable (Tables)	9 Months Ended
	Sep. 30, 2018
Convertible Notes Payable
Convertible Notes Payable	September 30, 2018 December 31, 2017 Convertible notes payable, bearing interest at 8%-10% $ 995,500 $ 100,000 Unamortized debt discount (262,869 ) (91,667 ) Unamortized deferred debt issuance cost (23,571 ) (4,545 ) Total $ 709,060 $ 3,788 Current portion 709,060 3,788

Background Information (Details

Background Information (Details Narrative)	9 Months Ended
	Sep. 30, 2018
Background Information
State of incorporation	New York

Going Concern and Management'_2

Going Concern and Management's Plans (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
Going Concern And Managements Plans
Net loss	$ (646,060)	$ (577,026)	$ (2,024,561)	$ (2,002,636)
Accumulated deficit	(49,136,990)		(49,136,990)		$ (47,112,429)
Stockholders' deficit	(5,827,087)		(5,827,087)		(4,165,451)
Cash and cash equivalents	$ 204,264	$ 26,318	204,264	26,318	$ 122,036	$ 21,066
Net cash used by operating activities			$ (637,076)	$ (657,951)

Significant Accounting Polici_4

Significant Accounting Policies (Details 1) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Derivative Liability	$ 600,832	$ 243,501
Level 1 [Member]
Derivative Liability
Level 2 [Member]
Derivative Liability
Level 3 [Member]
Derivative Liability	$ 600,832

Significant Accounting Polici_5

Significant Accounting Policies (Details 2) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Significant Accounting Policies Details Abstract
Balance at beginning of period			$ 243,501
Additions to derivative instruments			819,167
Extinguished derivative liabilities			(578,156)
Gain on change in fair value of derivative liability	$ 94,713	$ (9,307)	116,320	$ (204,482)
Balance at end of period	$ 600,832		$ 600,832

Significant Accounting Polici_6

Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Inventory raw materials	$ 25,958		$ 25,958		$ 85,173
Inventory in process	9,859		9,859		9,211
Inventory finished goods	4,605		4,605		7,223
Depreciation and amortization expense	9,863	$ 10,356	29,594	$ 31,314
Patent amortization expense	4,833	4,206	17,135	15,974
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	81,272	80,891	246,499	376,388
Research and development expenses, net of government grant	24,289	14,838	49,304	147,314
Accrued future warranty expenses	91,531		91,531		$ 91,531
License revenue	12,500		37,500
Royalty revenue	$ 0	$ 0	$ 0	$ 0
Common share excluded from diluted earnings per share	69,964,573	35,487,916
Description for product warranty			<font style="font: 10pt Times New Roman, Times, Serif">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</font></p>" id="sjs-D18">&lt;p style="margin: 0; text-align: justify">&lt;font style="font: 10pt Times New Roman, Times, Serif">In certain instances, the Company&#146;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&lt;/font>&lt;/p>
Leasehold Improvements [Member]
Property plant and equipment, estimated useful lives			The shorter of their estimated useful lives of 5 years or the related lease term.
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 ($)	Sep. 30, 2018	Dec. 31, 2017
Disclosure Accrued Expenses Other Details Abstract
Accrued expenses, other	$ 164,283	$ 151,090
Accrued interest	368,784	103,033
Accrued warranty costs	91,531	91,531
Accrued Expenses	$ 624,598	$ 345,654

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	1 Months Ended		3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 24, 2016	Feb. 27, 2015	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
Rent expense			$ 12,198	$ 12,198	$ 36,594	$ 36,594
Principal loan amount increased			1,332,000		1,332,000			$ 1,332,000
Accrued interest			221,612		221,612		$ 102,059
Accrued compensation			1,747,290		1,747,290		$ 1,631,147
Interest expense			$ 40,289	$ 21,719	$ 119,553	$ 52,685
Common stock par value per share			$ 0.01		$ 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 (the “Maturity Date”).</p>" id="sjs-B14">&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(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 (the &#8220;Maturity Date&#8221;).&lt;/p>
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		<font style="font: 10pt Times New Roman, Times, Serif">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.</font></p>" id="sjs-C24">&lt;p style="margin: 0pt">&lt;font style="font: 10pt Times New Roman, Times, Serif">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.&lt;/font>&lt;/p>
Royalty payments percentage			1.50%		1.50%
Accrued compensation, description		<font style="font: 10pt Times New Roman, Times, Serif">the unpaid compensation is greater than $500,000</font></p>" id="sjs-C26">&lt;p style="margin: 0pt; text-align: justify">&lt;font style="font: 10pt Times New Roman, Times, Serif">the unpaid compensation is greater than $500,000&lt;/font>&lt;/p>
Equity ownership percentage			52.00%		52.00%
Chief Executive Officer [Member] | Class A Convertible Preferred Stock [Member]
Price per share		$ 1.50
Voting equity rate beneficial owner		40.00%

Equity Transactions (Details Na

Equity Transactions (Details Narrative)	May 07, 2018	Jul. 31, 2018	Mar. 19, 2018	Sep. 30, 2018USD ($)Integer$ / sharesshares	Sep. 30, 2017USD ($)	Sep. 30, 2018USD ($)Integer$ / sharesshares	Sep. 30, 2017USD ($)shares	Jul. 11, 2018USD ($)shares	Jun. 20, 2018USD ($)shares	Jun. 15, 2018USD ($)shares	May 15, 2018USD ($)shares	Apr. 23, 2018USD ($)shares	Dec. 31, 2017USD ($)$ / sharesshares	Feb. 28, 2015shares	Nov. 30, 2009shares	Jun. 30, 2000shares
Common stock, par value | $ / shares				$ 0.01		$ 0.01							$ 0.01
Common stock, shares issued				148,757,395		148,757,395							140,608,645
Common stock, value | $				$ 1,489,575		$ 1,489,575							$ 1,406,087
Common stock, shares authorized				240,000,000		240,000,000							240,000,000
Preferred stock shares authorized				10,000,000		10,000,000							10,000,000
Preferred stock, par value | $ / shares				$ 0.01		$ 0.01							$ 0.01
Options expired/forfeited						1,250,000	1,150,000
Stock compensation expense | $				$ 0	$ 0	$ 0	$ 0
Outstanding warrants				26,250,000		26,250,000							16,835,358
Class A Preferred Stock [Member]
Preferred stock shares authorized				2,000,000		2,000,000
Price per share | $ / shares				$ 1.50		$ 1.50
Conversion price common stock, description						<font style="font: 10pt Times New Roman, Times, Serif">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.</font></p>" id="sjs-G14">&lt;p style="margin: 0; text-align: justify">&lt;font style="font: 10pt Times New Roman, Times, Serif">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.&lt;/font>&lt;/p>
Voting right in percentage						49.00%
Number of votes | Integer				150		150
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
License and Supply Agreement [Member] | Zhejiang MENRED Environmental Tech Co, Ltd [Member]
Common stock, shares issued											2,000,000
Common stock, value | $											$ 40,000
Outside Investor [Member]
Common stock, shares issued								200,000	148,750
Common stock, value | $								$ 14,000	$ 8,925
Convertible note, face amount | $								$ 100,000	$ 89,250
Outside Business Consultant [Member]
Common stock, shares issued										3,000,000
Common stock, value | $										$ 180,000
Loan And Security Agreement [Member]
Loan and security agreement description	<font style="font: 10pt Times New Roman, Times, Serif">(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.</font></p>" id="sjs-B34">&lt;p style="margin: 0; text-align: justify">&lt;font style="font: 10pt Times New Roman, Times, Serif">(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.&lt;/font>&lt;/p>	<font style="font: 10pt Times New Roman, Times, Serif">(i) the date upon which the Company secures funds, regardless of source, equal to or exceeding, in the aggregate, $1,000,000 or (ii) August 22, 2018. The Company is further obligated to issue 20,000 shares of $0.01 par value common stock valued at $1,200.</font></p>" id="sjs-C34">&lt;p style="margin: 0; text-align: justify">&lt;font style="font: 10pt Times New Roman, Times, Serif">(i) the date upon which the Company secures funds, regardless of source, equal to or exceeding, in the aggregate, $1,000,000 or (ii) August 22, 2018. The Company is further obligated to issue 20,000 shares of $0.01 par value common stock valued at $1,200.&lt;/font>&lt;/p>	<font style="font: 10pt Times New Roman, Times, Serif">(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 common stock valued at $800.</font></p>" id="sjs-D34">&lt;p style="margin: 0pt; text-align: justify">&lt;font style="font: 10pt Times New Roman, Times, Serif">(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 common stock valued at $800.&lt;/font>&lt;/p>
Consulting Agreement [Member] | Consultant [Member]
Common stock, shares issued												3,000,000
Common stock, value | $												$ 120,000

Convertible Notes Payable (Deta

Convertible Notes Payable (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Disclosure Convertible Notes Payable Details Abstract
Convertible notes payable, bearing interest at 8%-10%	$ 995,500	$ 100,000
Unamortized debt discount	(262,869)	(91,667)
Unamortized deferred debt issuance cost	(23,571)	(4,545)
Total	709,060	3,788
Current portion	$ 709,060	$ 3,788

Convertible Notes Payable (De_2

Convertible Notes Payable (Details Narrative) - USD ($)	Aug. 13, 2018	Jun. 07, 2018	Jun. 06, 2018	Jun. 01, 2018	Apr. 04, 2018	Mar. 12, 2018	Feb. 07, 2018	Sep. 18, 2018	Sep. 17, 2018	Aug. 28, 2018	Jul. 18, 2018	Jun. 22, 2018	Apr. 30, 2018	Oct. 31, 2017	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Amortization of deferred debt issue costs															$ 15,374		$ 21,345	$ 8,226
Amortization of debt discount															81,823		207,579	115,673
Gain on extinguishment of debt															$ 154,047		$ 349,721
September 2018 Notes [Member]
Convertible notes payable									$ 131,250
Maturity date of convertible notes payable									Sep. 12, 2019
Legal costs									$ 6,250
Cash proceeds									$ 125,000
Description of conversion price									<font style="font: 10pt Times New Roman, Times, Serif">The note 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.</font></p>" id="sjs-J10">&lt;p style="margin: 0; text-align: justify">&lt;font style="font: 10pt Times New Roman, Times, Serif">The note and related accrued interest are convertible, at the option of the holders, into shares of the Company&#8217;s common stock at a conversion price of 60% of the lowest trading price for 15 days prior to conversion.&lt;/font>&lt;/p>
Interest rate									8.00%
August 2018 Notes [Member]
Convertible notes payable	$ 100,000
Common stock, conversion price per share	$ 0.15
Maturity date description	<font style="font: 10pt Times New Roman, Times, Serif">The note matures six months from the effective date of August 13, 2018.</font></p>" id="sjs-B15">&lt;p style="margin: 0; text-align: justify">&lt;font style="font: 10pt Times New Roman, Times, Serif">The note matures six months from the effective date of August 13, 2018.&lt;/font>&lt;/p>
Legal costs	$ 6,000
Cash proceeds	$ 100,000
Interest rate	10.00%
Issuence discount	$ 20,000
August 2018 Notes [Member] | Agreement [Member]
Convertible notes payable										$ 59,132
Maturity date of convertible notes payable										Sep. 21, 2018
Maturity date description										<font style="font: 10pt Times New Roman, Times, Serif">The note matures twelve business days from the effective date of August 28, 2018.</font></p>" id="sjs-K23">&lt;p style="margin: 0; text-align: justify">&lt;font style="font: 10pt Times New Roman, Times, Serif">The note matures twelve business days from the effective date of August 28, 2018.&lt;/font>&lt;/p>
Cash proceeds										$ 59,132
Interest rate										8.00%
July 2018 Notes [Member]
Convertible notes payable											$ 100,000
Maturity date of convertible notes payable											Jul. 10, 2019
Legal costs											$ 5,000
Cash proceeds											$ 95,000
Description of conversion price											<font style="font: 10pt Times New Roman, Times, Serif">The note 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.</font></p>" id="sjs-L31">&lt;p style="margin: 0; text-align: justify">&lt;font style="font: 10pt Times New Roman, Times, Serif">The note and related accrued interest are convertible, at the option of the holders, into shares of the Company&#8217;s common stock at a conversion price of 60% of the lowest trading price for 15 days prior to conversion.&lt;/font>&lt;/p>
Interest rate											10.00%
June 2018 Notes [Member]
Convertible notes payable		$ 100,000	$ 100,000	$ 50,000								$ 89,250
Common stock, conversion price per share		$ 0.15	$ 0.15	$ 0.15
Maturity date of convertible notes payable												Jun. 4, 2019
Maturity date description		The note matures six months from the effective date of June 7, 2018	The note matures six months from the effective date of June 6, 2018	The note matures six months from the effective date of June 1, 2018
Legal costs		$ 6,000	$ 6,000	$ 3,000								$ 4,250
Cash proceeds		$ 100,000	$ 100,000	$ 50,000								$ 85,000
Description of conversion price												<font style="font: 10pt Times New Roman, Times, Serif">The note 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.</font></p>" id="sjs-M40">&lt;p style="margin: 0; text-align: justify">&lt;font style="font: 10pt Times New Roman, Times, Serif">The note and related accrued interest are convertible, at the option of the holders, into shares of the Company&#8217;s common stock at a conversion price of 60% of the lowest trading price for 15 days prior to conversion.&lt;/font>&lt;/p>
Interest rate		10.00%	10.00%	10.00%								8.00%
Amortization of debt discount		$ 20,000	$ 20,000	$ 10,000
April 2018 Notes [Member]
Convertible notes payable					$ 75,000								$ 150,000
Common stock, conversion price per share					$ 0.15								$ 0.15
Maturity date description					The note matures six months from the effective date of April 4, 2018								The note matures six months from the effective date of April 30, 2018
Legal costs					$ 6,000								$ 9,000
Cash proceeds					$ 75,000								$ 150,000
Interest rate					10.00%								10.00%
Amortization of debt discount					$ 20,000								$ 30,000
March 2018 Note [Member]
Convertible notes payable						$ 100,000
Common stock, conversion price per share						$ 0.15
Maturity date of convertible notes payable								Mar. 18, 2019
Maturity date description						<font style="font: 10pt Times New Roman, Times, Serif">The note matured six months from the effective date of March 12, 2018.</font></p>" id="sjs-G55">&lt;p style="margin: 0pt; text-align: justify">&lt;font style="font: 10pt Times New Roman, Times, Serif">The note matured six months from the effective date of March 12, 2018.&lt;/font>&lt;/p>
Legal costs						$ 6,000		$ 6,000
Cash proceeds						$ 100,000
Interest rate						10.00%		10.00%
Amortization of debt discount						$ 20,000
Issuence discount								$ 20,000
March 2018 Note [Member] | March 2018 Additional Note [Member]
Legal costs								$ 6,000
Interest rate								10.00%
Issuence discount								$ 20,000
October 2017 Note [Member]
Convertible notes payable														$ 100,000
Maturity date of convertible notes payable														Oct. 31, 2018
Legal costs														$ 5,000
Description of conversion price														<font style="font: 10pt Times New Roman, Times, Serif">The note and related accrued interest were convertible, at the option of the holder, 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.</font></p>" id="sjs-O69">&lt;p style="margin: 0; text-align: justify">&lt;font style="font: 10pt Times New Roman, Times, Serif">The note and related accrued interest were convertible, at the option of the holder, into shares of the Company&#8217;s common stock at a conversion price of 60% of the lowest trading price for 15 days prior to conversion.&lt;/font>&lt;/p>
Interest rate														8.00%
Amortization of debt discount														$ 100,000
Gain on extinguishment of debt														$ 195,675
February 2018 Notes [Member] | Convertible Notes [Member]
Convertible notes payable							$ 87,500
Maturity date of convertible notes payable							Feb. 7, 2019
Legal costs							$ 7,500
Cash proceeds							$ 150,000
Description of conversion price							<font style="font: 10pt Times New Roman, Times, Serif">The February 2018 Notes and related accrued interest were 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.</font></p>" id="sjs-H78">&lt;p style="margin: 0pt; text-align: justify">&lt;font style="font: 10pt Times New Roman, Times, Serif">The February 2018 Notes and related accrued interest were convertible, at the option of the holders, into shares of the Company&#8217;s common stock at a conversion price of 60% of the lowest trading price for 15 days prior to conversion.&lt;/font>&lt;/p>
Interest rate							8.00%
Amortization of debt discount							$ 17,500
Gain on extinguishment of debt							$ 154,047

Derivative Liabilities (Details

Derivative Liabilities (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Debt discount	$ 81,823		$ 207,579	$ 115,673
Interest expense	387,398	$ 200,117	877,110	$ 777,870
October 2017 Note One [Member]
Fair value of embedded derivative	$ 281,946		$ 281,946
Risk free interest rate	2.12%		2.12%
Dividend yield	0.00%		0.00%
Volatility	270.00%		270.00%
Expected life	7 months 15 days		7 months 15 days
Interest expense	$ 0		$ 8,514
Change in fair value of derivative recorded income and expense	0		29,931
October 2017 Note [Member]
Fair value of embedded derivative	324,426		$ 324,426
Risk free interest rate			1.61%
Dividend yield			0.00%
Volatility			407.00%
Expected life			11 months
Debt discount					$ 100,000
Non cash interest expense					$ 224,426
February 2018 Notes One [Member]
Fair value of embedded derivative	$ 296,210		$ 296,210
Risk free interest rate	2.25%		2.25%
Dividend yield	0.00%		0.00%
Volatility	238.00%		238.00%
Expected life	5 months 8 days		5 months 8 days
Interest expense	$ 2,609		$ 12,833
Change in fair value of derivative recorded income and expense	7,479		342
February 2018 Notes [Member]
Fair value of embedded derivative	$ 283,719		$ 283,719
Risk free interest rate	1.91%		1.91%
Dividend yield	0.00%		0.00%
Volatility	420.00%		420.00%
Expected life	1 year		1 year
Debt discount	$ 175,000		$ 175,000
Non cash interest expense			108,719
June 2018 Note One [Member]
Fair value of embedded derivative	$ 155,101		$ 155,101
Risk free interest rate	2.36%		2.36%
Dividend yield	0.00%		0.00%
Volatility	219.00%		219.00%
Expected life	11 months		11 months
Change in fair value of derivative recorded income and expense	$ 6,046		$ 6,548
June 2018 Note [Member]
Fair value of embedded derivative	$ 158,278		$ 158,278
Risk free interest rate	2.33%		2.33%
Dividend yield	0.00%		0.00%
Volatility	319.00%		319.00%
Expected life	11 months		11 months
Debt discount	$ 89,250		$ 89,250
Interest expense	3,060		3,371
Non cash interest expense			69,028
July 2018 Note One [Member]
Fair value of embedded derivative	$ 186,472		$ 186,472
Risk free interest rate	2.47%		2.47%
Dividend yield	0.00%		0.00%
Volatility	249.00%		249.00%
Expected life	9 months		9 months
Change in fair value of derivative recorded income and expense	$ 29,512		$ 29,512
July 2018 Note [Member]
Fair value of embedded derivative	152,814		$ 152,814
Risk free interest rate			2.36%
Dividend yield			0.00%
Volatility			320.00%
Expected life			1 year
Debt discount			$ 100,000
Interest expense	4,146		4,146
Non cash interest expense			52,814
September 2018 Note One [Member]
Fair value of embedded derivative	$ 259,259		$ 259,259
Risk free interest rate	2.59%		2.59%
Dividend yield	0.00%		0.00%
Volatility	275.00%		275.00%
Expected life	11 months 15 days		11 months 15 days
Change in fair value of derivative recorded income and expense	$ 63,767		$ 63,767
September 2018 Note [Member]
Fair value of embedded derivative	$ 194,417		$ 194,417
Risk free interest rate	2.56%		2.56%
Dividend yield	0.00%		0.00%
Volatility	290.00%		290.00%
Expected life	1 year		1 year
Debt discount	$ 131,250		$ 131,250
Interest expense	$ 1,075		1,075
Non cash interest expense			$ 63,167

Deferred Revenue (Details Narra

Deferred Revenue (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
License revenue	$ 12,500		$ 37,500
Deferred revenue	$ 461,156		$ 461,156		$ 498,656
Zhejiang Province [Member]
License and supply agreement description					<font style="font: 10pt Times New Roman, Times, Serif">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 License and Supply Agreement has a ten-year term with mutually agreed upon five year extensions.</font></p>" id="sjs-F6">&lt;p style="margin: 0pt; text-align: justify">&lt;font style="font: 10pt Times New Roman, Times, Serif">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 License and Supply Agreement has a ten-year term with mutually agreed upon five year extensions.&lt;/font>&lt;/p>

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 ($)	Nov. 01, 2018	Oct. 16, 2018	Oct. 05, 2018	Apr. 04, 2018	Oct. 31, 2018	Oct. 30, 2018	Apr. 30, 2018	Oct. 01, 2018	Sep. 30, 2018	Dec. 31, 2017
Common stock, shares issued									148,757,395	140,608,645
Common stock, shares value									$ 1,489,575	$ 1,406,087
Common stock, par value									$ 0.01	$ 0.01
Preferred stock, par value									$ 0.01	$ 0.01
Preferred stock, shares issued									0	0
April 2018 Notes [Member]
Convertible notes payable principal				$ 75,000			$ 150,000
Legal costs				6,000			9,000
Proceeds from issuance of convertible debt				$ 75,000			$ 150,000
Subsequent Event [Member]
Convertible notes payable principal								$ 100,000
Common stock, shares issued								200,000
Common stock, shares value								$ 6,000
Subsequent Event [Member] | Convertible Notes [Member]
Convertible notes payable principal			$ 135,000
Description of conversion price			<font style="font: 10pt Times New Roman, Times, Serif">The Company’s common stock at a conversion price of 60% of the lowest trading price for 15 days prior to conversion.</font></p>" id="sjs-D17">&lt;p style="margin: 0; text-align: justify">&lt;font style="font: 10pt Times New Roman, Times, Serif">The Company&#8217;s common stock at a conversion price of 60% of the lowest trading price for 15 days prior to conversion.&lt;/font>&lt;/p>
Interest rate			8.00%
Maturity date			Oct. 5, 2019
Issuence discount			$ 10,000
Proceeds from issuance of convertible debt			$ 125,000
Subsequent Event [Member] | Convertible Notes [Member] | April 2018 Notes One [Member]
Interest rate						10.00%
Legal costs						$ 9,000
Issuence discount						$ 30,000
Subsequent Event [Member] | Convertible Notes [Member] | April 2018 Notes [Member]
Convertible notes payable principal		$ 75,000
Interest rate						10.00%
Legal costs						$ 4,500
Issuence discount						$ 15,000
Redemption payment		103,500
Legal fees, interest and original issue discount amount		$ 28,500
Subsequent Event [Member] | Sixteenth Amendment [Member]
Common stock, shares issued					20,000
Common stock, shares value					$ 1,200
Security agreement description					<font style="font: 10pt Times New Roman, Times, Serif">(i) the date upon which the Company secures funds, regardless of source, equal to or exceeding, in the aggregate, $1,000,000 or (ii) November 16, 2018.</font></p>" id="sjs-F36">&lt;p style="margin: 0; text-align: justify">&lt;font style="font: 10pt Times New Roman, Times, Serif">(i) the date upon which the Company secures funds, regardless of source, equal to or exceeding, in the aggregate, $1,000,000 or (ii) November 16, 2018.&lt;/font>&lt;/p>
Common stock, par value					$ 0.01
Subsequent Event [Member] | Preferred Class B [Member] | Timothy N. Tangredi [Member]
Preferred stock, par value	$ 0.01
Preferred stock, shares issued	10
Preferred stock stated value	$ 1.50
Preferred stock exchange value	$ 15
Subsequent event description	<font style="font: 10pt Times New Roman, Times, Serif">Pursuant to the Company’s Certificate of Incorporation, as amended, the Company established 10,000 shares of the Class B Stock. The Class B Stock includes the right to vote in an amount equal to 51% of the votes to approve certain corporate actions, including, without limitation, changing the name of the Company and increasing the number of authorized shares.</font></p>" id="sjs-B43">&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&lt;font style="font: 10pt Times New Roman, Times, Serif">Pursuant to the Company&#8217;s Certificate of Incorporation, as amended, the Company established 10,000 shares of the Class B Stock. The Class B Stock includes the right to vote in an amount equal to 51% of the votes to approve certain corporate actions, including, without limitation, changing the name of the Company and increasing the number of authorized shares.&lt;/font>&lt;/p>