Dais (DLYT) 10-K 10 Apr 19 2018 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2018	Apr. 09, 2019	Jun. 30, 2018
Document And Entity Information
Entity Registrant Name	DAIS CORP
Entity Central Index Key	0001125699
Document Type	10-K
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Non-accelerated Filer
Entity Public Float			$ 4,494,597
Entity Common Stock, Shares Outstanding		158,416,080
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2018
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false

BALANCE SHEETS

BALANCE SHEETS - USD ($)	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
CURRENT ASSETS:
Cash and cash equivalents	$ 29,300	$ 122,036	$ 21,066
Accounts receivable, net	34,043	5,058
Other receivables	14,348	3,598
Inventory	53,184	101,607
Prepaid expenses	48,654	12,294
Total Current Assets	179,529	244,593
Property and equipment, net	57,420	91,900
OTHER ASSETS:
Deposits	4,780	5,080
Patents, net	150,842	117,606
Total Other Assets	155,622	122,686
TOTAL ASSETS	392,571	459,179
CURRENT LIABILITIES:
Accounts payable, including related party payables of $165,076 and $104,543 at December 31, 2018 and 2017, respectively	632,574	353,193
Accrued expenses, other	702,601	345,654
Accrued compensation and related benefits	1,909,936	1,727,259
Customer deposits	78,816	120,579
Note Payable to related party	1,332,000	1,332,000
Current portion of deferred revenue	448,656	498,656
Derivative liabilities	1,280,188	243,501
Convertible notes payable, net of unamortized debt discount and deferred debt issuance costs	809,197	3,788
Total Current Liabilities	7,193,968	4,624,630
Total Liabilities	7,193,968	4,624,630
STOCKHOLDERS’ DEFICIT
Preferred stock value
Common stock; $0.01 par value; 240,000,000 shares authorized; 149,819,895 and 140,608,645 shares issued and 148,562,682 and 139,351,432 shares outstanding at December 31, 2018 and 2017, respectively	1,498,200	1,406,087
Capital in excess of par value	43,299,705	43,003,003
Accumulated deficit	(50,137,190)	(47,112,429)
Total	(5,339,285)	(2,703,339)
Treasury stock at cost, 1,257,213 and 1,257,213 at December 31, 2018 and 2017, respectively	(1,462,112)	(1,462,112)
Total Stockholders’ Deficit	(6,801,397)	(4,165,451)	$ (2,167,684)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	392,571	459,179
Series A Preferred Stock [Member]
STOCKHOLDERS’ DEFICIT
Preferred stock value
Series B Preferred Stock [Member]
STOCKHOLDERS’ DEFICIT
Preferred stock value

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
CURRENT LIABILITIES:
Accounts payable related party payables	$ 165,076	$ 104,543
STOCKHOLDERS' DEFICIT
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	7,990,000	7,990,000
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	149,819,895	140,608,645
Common stock, shares outstanding	148,562,682	139,351,432
Treasury stock shares	1,257,213	1,257,213
Series A Preferred Stock [Member]
STOCKHOLDERS' DEFICIT
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Series B Preferred Stock [Member]
STOCKHOLDERS' DEFICIT
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000	10,000
Preferred stock, shares issued	10	0
Preferred stock, shares outstanding	10	0

STATEMENTS OF OPERATIONS

STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
REVENUE
Sales	$ 1,331,251	$ 381,590
Royalty and license fees	50,000	1,344
Total Revenue	1,381,251	382,934
COST OF GOODS SOLD	921,394	312,547
GROSS MARGIN	459,857	70,387
OPERATING EXPENSES
Research and development, net of government grant proceeds of $64,894 and $150,912 for the years ended December 31, 2018 and 2017, respectively	253,464	316,612
Selling, general and administrative	1,862,024	2,208,887
TOTAL OPERATING EXPENSES	2,115,488	2,525,499
LOSS FROM OPERATIONS	(1,655,631)	(2,455,112)
OTHER INCOME (EXPENSE)
Interest expense	(1,396,468)	(1,554,803)
Change in fair value of derivative	(322,383)	(134,289)
Gain on extinguishment of debt	349,721	696,261
TOTAL OTHER EXPENSE, NET	(1,369,130)	(992,831)
NET LOSS	$ (3,024,761)	$ (3,447,943)
NET LOSS PER COMMON SHARE, BASIC AND DILUTED	$ (0.02)	$ (0.03)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING, BASIC AND DILUTED	144,457,987	126,707,140

STATEMENTS OF STOCKHOLDERS_ DEF

STATEMENTS OF STOCKHOLDERS’ DEFICIT - USD ($)	1 Months Ended	12 Months Ended
	Apr. 21, 2017	Dec. 31, 2018	Dec. 31, 2017
Preferred Stock
Beginning Balance, Shares
Beginning Balance, Amount
Stock based compensation
Sale of preferred stock, Shares		10
Sale of preferred stock, Amount
Issuance of common stock for services, Shares
Issuance of common stock for services, Amount
Issuance of common stock in lieu of cash payment to related party, Shares
Issuance of common stock in lieu of cash payment to related party, Amount
Issuance of common stock for accrued expenses, Shares
Issuance of common stock for accrued expenses, Amount
Issuance of common stock for debt issue costs, Shares
Issuance of common stock for debt issue costs, Amount
Issuance of common stock for finance cost, Shares
Issuance of common stock for finance cost, Amount
Net loss
Ending Balance, Shares		10
Ending Balance, Amount
Common Stock
Beginning Balance, Shares		140,608,645	121,300,077
Beginning Balance, Amount		$ 1,406,087	$ 1,213,001
Stock based compensation
Sale of preferred stock, Amount
Issuance of common stock for services, Shares		6,000,000	15,050,000
Issuance of common stock for services, Amount		$ 60,000	$ 150,500
Issuance of common stock in lieu of cash payment to related party, Shares			480,000
Issuance of common stock in lieu of cash payment to related party, Amount			$ 4,800
Issuance of common stock for accrued expenses, Shares		2,000,000	3,028,568
Issuance of common stock for accrued expenses, Amount		$ 20,000	$ 30,286
Issuance of common stock for debt issue costs, Shares		1,011,250	750,000
Issuance of common stock for debt issue costs, Amount		$ 10,113	$ 7,500
Issuance of warrants
Issuance of common stock for finance cost, Shares		200,000
Issuance of common stock for finance cost, Amount		$ 2,000
Net loss
Ending Balance, Shares		149,819,895	140,608,645
Ending Balance, Amount		$ 1,498,200	$ 1,406,087
Capital in Excess of Par Value
Beginning Balance, Amount		43,003,003	41,745,913
Stock based compensation			332,966
Sale of preferred stock, Amount		15
Issuance of common stock for services, Amount		240,000	340,000
Issuance of common stock in lieu of cash payment to related party, Amount			12,400
Issuance of common stock for accrued expenses, Amount		20,000	89,714
Issuance of common stock for debt issue costs, Amount		32,687	15,000
Issuance of warrants			467,010
Issuance of common stock for finance cost, Amount		4,000
Net loss
Ending Balance, Amount		43,299,705	43,003,003
Accumulated Deficit
Beginning Balance, Amount		(47,112,429)	(43,664,486)
Stock based compensation
Sale of preferred stock, Amount
Issuance of common stock for services, Amount
Issuance of common stock in lieu of cash payment to related party, Amount
Issuance of common stock for accrued expenses, Amount
Issuance of common stock for debt issue costs, Amount
Issuance of warrants
Issuance of common stock for finance cost, Amount
Net loss		(3,024,761)	(3,447,943)
Ending Balance, Amount		(50,137,190)	(47,112,429)
Treasury Stock
Beginning Balance, Amount		(1,462,112)	(1,462,112)
Stock based compensation
Sale of preferred stock, Amount
Issuance of common stock for services, Amount
Issuance of common stock in lieu of cash payment to related party, Amount
Issuance of common stock for accrued expenses, Amount
Issuance of common stock for debt issue costs, Amount
Issuance of warrants
Issuance of common stock for finance cost, Amount
Net loss
Ending Balance, Amount		(1,462,112)	(1,462,112)
Beginning Balance, Amount		(4,165,451)	(2,167,684)
Stock based compensation			332,966
Sale of preferred stock, Amount		15
Issuance of common stock for services, Shares	750,000
Issuance of common stock for services, Amount		300,000	490,500
Issuance of common stock in lieu of cash payment to related party, Amount			17,200
Issuance of common stock for accrued expenses, Amount		40,000	120,000
Issuance of common stock for debt issue costs, Amount		42,800	22,500
Issuance of warrants			467,010
Issuance of common stock for finance cost, Amount		6,000
Net loss		(3,024,761)	(3,447,943)
Ending Balance, Amount		$ (6,801,397)	$ (4,165,451)

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($)	1 Months Ended		3 Months Ended	9 Months Ended	12 Months Ended
	May 17, 2017	Apr. 21, 2017	Sep. 30, 2018	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss					$ (3,024,761)	$ (3,447,943)
Adjustments to reconcile net loss to net cash and cash equivalents used by operating activities:
Amortization of deferred debt issue costs	$ 24,675	$ 10,000	$ 15,374	$ 21,345	38,803	11,021
Depreciation and amortization					61,088	60,789
Bad debt expense					3,589
Gain on extinguishment of debt					(349,721)	(696,261)
Change in fair value of derivative liability					322,383	134,289
Non-cash interest expenses					493,212	606,531
Fair value of warrant issued for debt modification						467,010
Amortization of debt discount			$ 81,823	207,579	343,883	170,633
Stock issued for finance cost					6,000	1,800
Stock compensation					300,000	793,466
(Increase) decrease in:
Accounts receivable					(32,574)	(3,558)
Inventory					48,423	(24,008)
Other receivables					(10,750)	(3,598)
Prepaid expenses/Other assets					(36,060)	19,124
Increase (decrease) in:
Accounts payable					279,381	(24,930)
Accrued expenses					579,639	453,712
Customer deposits					(41,763)	120,579
Deferred revenue					(50,000)	490,915
Net cash used by operating activities					(1,069,228)	(870,428)
CASH FLOWS FROM INVESTING ACTIVITIES:
Increase in patent costs					(54,744)	(18,940)
Purchases of property and equipment					(5,100)	(2,237)
Net cash used by investing activities					(59,844)	(21,177)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on note payable					(497,796)	(371,425)
Proceeds from note payable - related party						992,000
Proceeds from note payables					1,534,132	372,000
Net cash provided by financing activities					1,036,336	992,575
Net increase (decrease) in cash and cash equivalents					(92,736)	100,970
Cash and cash equivalents, beginning of period				$ 122,036	122,036	21,066
Cash and cash equivalents, end of period					29,300	122,036
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest					195,210	928
NON-CASH FINANCING AND FINANCING ACTIVITIES
Payment of accrued expense with common stock					40,000
Payment of accrued expense with note payable						43,000
Issuance of common stock for settlement of accrued expenses						150,000
Issuance of common stock for settlement of interest due to related party						15,400
Issuance of common stock for deferred debt issuance costs					42,800	22,500
Issuance of common stock for finance cost					6,000
Initial derivative liability at issuance of notes					907,969	436,751
Initial debt discount at issuance of notes					816,750	605,154
Issuance of warrants for debt modification						467,010
Total non-cash change					$ 1,813,519	$ 1,739,815

Background Information

Background Information	12 Months Ended
	Dec. 31, 2018
Notes to Financial Statements
Note 1. Background Information	Dais Analytic Corporation (the “Company”), a New York corporation, has developed and is commercializing applications using its nanostructure polymer technology. The first commercial product, 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.

Going Concern and Management's

Going Concern and Management's Plans	12 Months Ended
	Dec. 31, 2018
Notes to Financial Statements
Note 2. Going Concern and Management's Plans	The accompanying financial statements have been prepared assuming the Company will continue as a going concern. For the year ended December 31, 2018, the Company generated a net loss of $3,024,761 and has incurred significant losses since inception. As of December 31, 2018, the Company has an accumulated deficit of $50,137,190, total stockholders’ deficit of $6,801,397, negative working capital of $7,014,439 and cash and cash equivalents of $29,300. The Company used $1,069,228 and $870,428 of cash from operations during the years ended December 31, 2018 and 2017, respectively, which was funded primarily by proceeds from loans from related parties and equity financings. There is no assurance that any such financing will be available in the future. These factors raise substantial doubt about the Company’s ability to continue as a going concern. 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	12 Months Ended
	Dec. 31, 2018
Notes to Financial Statements
Note 3. Significant Accounting Policies	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 stock based compensation, fair value of derivative liabilities, valuation allowance on deferred taxes and the warranty reserve. Cash and cash equivalents Accounts receivable Concentrations Other receivables Fair Value of Financial Instruments Inventory Property and equipment Intangible assets Long-lived assets Government Funding Research and development expenses and funding proceeds Stock issuance costs Common stock 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 December 31, 2018 and 2017, which is included in accrued expenses, other. Royalty revenue is recognized as earned. The Company recognized royalty revenue of $0 for the years ended December 31, 2018 and 2017, respectively. Revenue derived from the sale of licenses is deferred and recognized as license fee revenue on a straight-line basis over the life of the license, or until the license arrangement is terminated. The Company recognized license fee revenue of $50,000 and $1,344 for the years ended December 31, 2018 and 2017, respectively. The Company accounts for revenue arrangements with multiple elements under the provisions of the Financial Accounting Standards Boards (FASB) Accounting Standards Codification (ASC) Topic 605-25, “Revenue Recognition-Multiple-Element Arrangements.” In order to account for these agreements, the Company must identify the deliverables included within the agreement and evaluate which deliverables represent separate units of accounting based on if certain criteria are met, including whether the delivered element has stand-alone value to the licensee. The consideration received is allocated among the separate units of accounting, and the applicable revenue recognition criteria are applied to each of the separate units. In December 2017, the Company and Zhejiang MENRED Environmental Tech Co, Ltd., Zhejiang Province, China (“Menred”), entered into a License and Supply Agreement (the “Agreement”), effective December 21, 2017. Pursuant to the Agreement, the Company licensed certain intellectual property and improvements to Menred, for use in the manufacture and sale of energy recovery ventilators (“ERV”) and certain other HVAC systems for installation in commercial, residential or industrial buildings in China. Menred also agreed to purchase its requirements of certain products from the Company for Menred’s use, pursuant to the terms and conditions of the Agreement. Menred will also pay royalties, as defined, to the Company on a quarterly basis, based on price and production volume as provided by Menred. No royalties are due within the first year of the Agreement. Also pursuant to the Agreement, the Company is required to purchase 50,000 square meters of Product from Menred for delivery as an annual minimum with a 10,000 square meter minimum order quantity per delivery. The Agreement has a ten-year term with mutually agreed upon five-year extensions. Shipping and handling fees billed to customers are included in revenue. Shipping and handling fees associated with freight are generally included in cost of revenue. Derivative Liability Warranties Stock based compensation The value of each grant is estimated at the grant date using the Black-Scholes option model with the following assumptions for options granted during the years ended December 31, 2018 and 2017. There were no grants in 2018. Years Ended December 31, 2018 2017 Dividend rate - 0 % Risk free interest rate - 2.34 % Expected term - 10 years Expected volatility - 244 % The basis for the above assumptions are as follows: the dividend rate is based upon the Company’s history of dividends; the risk-free interest rate for periods within the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant; the expected term was calculated based on the Company’s historical pattern of options granted and the period of time they are expected to be outstanding; and expected volatility was calculated based upon historical trends in the Company’s common stock for periods prior to the date the Company’s trading information was available. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Based on historical experience of forfeitures, the Company estimated forfeitures at 0% for each of the years ended December 31, 2018 and 2017, respectively. Non-employee stock-based compensation Equity-Based Payments to Non-Employees 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 December 31, 2018: Fair Value at December 31, Fair Value Measurement Using 2018 Level 1 Level 2 Level 3 Derivative liability $ 1,280,188 $ - $ - $ 1,280,188 The reconciliation of the derivative liability measured at fair value on a recurring basis using unobservable inputs (Level 3) is as follows for the years ended December 31, 2018 and 2017: December 31, December 31, 2018 2017 Balance, beginning of year $ 243,501 $ - Additions 1,292,460 1,043,283 Extinguished derivative liability (578,156 ) (934,071 ) Change in fair value of derivative liabilities 322,383 134,289 $ 1,280,188 $ 243,501 Income taxes The Company identifies and evaluates uncertain tax positions, if any, and recognizes the impact of uncertain tax positions for which there is a less than more-likely-than-not probability of the position being upheld when reviewed by the relevant taxing authority. Such positions are deemed to be unrecognized tax benefits and a corresponding liability is established on the balance sheet. The Company has not recognized a liability for uncertain tax positions. If there were an unrecognized tax benefit, the Company would recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. The Company’s 2015 through 2018 tax years remain open and subject to examination by the Internal Revenue Service. 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.

Property and Equipment

Property and Equipment	12 Months Ended
	Dec. 31, 2018
Notes to Financial Statements
Note 4. Property and Equipment	Property and equipment consist of the following: December 31, 2018 2017 Furniture and fixtures $ 20,966 $ 20,966 Computer equipment and software 21,761 21,761 Demonstration equipment 92,733 92,733 Office and lab equipment 308,949 318,649 Leasehold improvements 14,808 9,708 Property and equipment, gross 459,217 463,817 Less accumulated depreciation 401,797 371,917 Property and equipment, net $ 57,420 $ 91,900

Accrued Expenses, Other

Accrued Expenses, Other	12 Months Ended
	Dec. 31, 2018
Notes to Financial Statements
Note 5. Accrued Expenses, Other	Accrued expenses, other consists of the following: December 31, 2018 2017 Accrued expenses, other $ 611,070 $ 254,123 Accrued warranty costs 91,531 91,531 $ 702,601 $ 345,654

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2018
Notes to Financial Statements
Note 6. Related Party Transactions	The Company rents a building that is owned by two stockholders of the Company, one of which is the Chief Executive Officer. Rent expense for this building is $4,066 per month, including sales tax. The Company recognized rent expense (including property tax charges) related to this lease of $56,760 and $56,760 for the years ended December 31, 2018 and 2017, respectively. The lease term will terminate upon 30 days’ written notice from landlord or 90 days written termination from us. The Company has accrued compensation due to the Chief Executive Officer as of December 31, 2018 and 2017 of $1,772,623 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 December 31, 2018, the Holder extended the Note pursuant to various amendments. Pursuant to the amendments, the principal amount due was increased to $1,332,000 with an extended maturity date of 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, valued at $17,200, of which $15,400 was recorded against debt due to related party. On January 28, 2019, the Holder further extended the Note pursuant to an amendment. The maturity date was extended to April 8, 2019, effective as of November 16, 2018. As consideration for the additional extension of the maturity date, the Company will issue 20,000 shares of common stock and a warrant to purchase 1,000,000 shares of common stock with an exercise price of $0.01 and a ten year exercise period. The Company is using the proceeds of the Note and related amendments for working capital purposes. Interest expense on the Note was $159,842 and $88,441 for the years December 31, 2018 and 2017, respectively. Accrued interest on the Note was $261,901 and $102,059 at December 31, 2018 and 2017, respectively. 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. See Note 12 Commitments and Contingencies for further disclosure of the terms of Mr. Tangredi’s employment agreement. 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	12 Months Ended
	Dec. 31, 2018
Notes to Financial Statements
Note 7. Equity Transactions	Preferred Stock At December 31, 2018 and 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. The 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. 10,000 of the shares of preferred stock has been designated as Class B Preferred Stock. The 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. 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. On November 1, 2018, Dais Analytic Corporation (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. 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 or Class B Preferred Stock unless, prior thereto, the holders of shares of Class A or Class B Preferred Stock shall have received $1.50 per share (the “Stated Amount”). The Class A and Class 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. The shares of the Class B Preferred Stock shall be automatically redeemed by the Company at $0.01 per share on the date that Tim N. Tangredi ceases, for any reason, to serve as an officer, director or consultant of the Company. Common Stock At December 31, 2018 and 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. 2018 Transactions: 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 December 31, 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 December 31, 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 8. – 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 8. – 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 December 31, 2018. On October 1, 2018, the Company issued 200,000 shares of common stock, valued at $6,000, as further incentive to an outside investor to continue to issue convertible notes. On October 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) November 16, 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 December 31, 2018. On December 1, 2018, the Company issued 662,500 shares of common stock, valued at $19,875, as further incentive to an outside investor to issue two convertible notes with a face amount of $210,000. (See Note 7. – Convertible Notes Payable). 2017 Transactions: During the year ended December 31, 2017, the Company entered into a series of amendments to the Loan and Security Agreement entered into with a related party. (See Note 6, Related Party Transaction for further discussion). Under the terms of those amendments the Company issued an aggregate of 480,000 shares of common stock valued at $17,200, of which $15,400 was recorded against debt due to related party. For the period ending December 31, 2017, the Company issued a total of 3,028,568 shares of common stock, valued at a total of $120,000, in payment of accrued expenses relating to legal services. For the period ending December 31, 2017, the Company issued an aggregate of 15,050,000 shares of common stock, valued at $490,500, in payment of consulting agreements to outside business consultants. For the period ending December 31, 2017, the Company issued an aggregate of 750,000 shares of common stock, valued at $22,500, as payment of debt issue costs.

Convertible Notes Payable

Convertible Notes Payable	12 Months Ended
	Dec. 31, 2018
Notes to Financial Statements
Note 8. Convertible Notes Payable	The Company’s convertible promissory notes at December 31, 2018 and 2017 are as follows: December 31, 2018 December 31, 2017 Convertible notes payable, bearing interest at 8% $ 1,284,250 $ 100,000 Unamortized debt discount (440,315 ) (91,667 ) Unamortized deferred debt issuance cost (34,738 ) (4,545 ) Total 809,197 3,788 Current portion $ 809,197 $ 3,788 2018 Transactions 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 two 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 from the February 2018 Notes. 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 (the “March 2018 Note”). The March 2018 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 March 2018 Note provides for an interest payment of 10% of the principal amount of the March 2018 Note, payable before or upon maturity. The March 2018 Note matured six months from the effective date of March 12, 2018. The March 2018 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 March 2018 Note. These costs have also been amortized over the life of the March 2018 Note. The Company received cash proceeds of $100,000 from the March 2018 Note. On September 18, 2018, the amount of the original issue discount of $20,000, 10% interest and legal costs of $6,000 were repaid to extend the maturity date of the March 2018 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 the March 2018 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 were 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 provided 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 April 4, 2018. The note contained original issue discount of $15,000, 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 $75,000. The note, interest and costs were paid at maturity. 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. At maturity, the amount of the original issue discount of $30,000, 10% interest and legal costs of $9,000 was paid to extend the maturity date of the note to January 31, 2019. We incurred additional original issue discount of $15,000, 5% interest and legal costs of $4,500 as a result of the extension, payable at maturity. These costs are being amortized over the life of the new note. 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 provided for an interest payment of 10% of the principal amount of this note, payable before or upon maturity. This note matured six months from the effective date of June 1, 2018. This note contained original issue discount of $10,000, payable at maturity, which has been amortized over the life of the note. The Company has also incurred aggregate legal costs of $3,000 related to the note. These costs have also been amortized over the life of this note. The Company received cash proceeds of $50,000. In March 2019, the maturity date of the note was extended to August 15, 2019, effective as of the original maturity date. As consideration for the extension, we have agreed to issue one million shares of common stock for each month that the note is outstanding, commencing in April 2019. 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 have been amortized over the life of this note. The Company received cash proceeds of $100,000. In March 2019, the maturity date of the note was extended to August 15, 2019, effective as of the original maturity date. As consideration for the extension, we have agreed to issue one million shares of common stock for each month that the note is outstanding, commencing in April 2019. 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. At maturity, the amount of the original issue discount of $20,000, 10% interest and legal costs of $6,000 was paid and a new note issued to extend the maturity date of the note to September 4, 2019. We incurred additional original issue discount of $3,000 (face amount of the new note is $103,000) and the new note bears interest at 10% per year. The $3,000 addition to the note is being amortized over the life of the new note. 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 2018 Notes 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 finance costs of $13,125 and 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. On September 18, 2018, the Company issued a convertible note, in the principal amount of $100,000, to replace a note issued in March 2018 as discussed above. 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 September 18, 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. October 2018 Notes On October 5, 2018, the Company issued a convertible note (the “October 2018 Note”), in the principal amount of $135,000. The October 2018 Notes and related accrued interest are convertible, at the option of the holder, into shares of the Company’s common stock at a conversion price of 60% of the lowest trading price for 15 days prior to conversion. The note bears interest at 8% per year and matures on September 28, 2019. The October 2018 Note contained original issue discount aggregating $10,000 which is being amortized over the life of the October 2018 Note. The Company received cash proceeds of $125,000. On October 31, 2018, the Company issued a convertible note, in the principal amount of $150,000, to replace a note issued in April 2018 as discussed above. 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 5% of the principal amount of the note, payable before or upon maturity. This note matures January 31, 2019. This note contains original issue discount of $15,000, payable at maturity, which is being amortized over the life of this note. The Company has also incurred aggregate legal costs of $4,500 related to the note. These costs are also being amortized over the life of this note. November 2018 Notes On November 7, 2018, the Company issued a convertible note (the “November 2018 Note”), in the principal amount of $78,750. The November 2018 Note and related accrued interest are convertible, at the option of the holder, into shares of the Company’s common stock at a conversion price of 60% of the lowest trading price for 15 days prior to conversion. The November 2018 Note bears interest at 8% per year and matures on November 7, 2019. The Company has also incurred aggregate finance costs of $6,750 and legal costs of $3,750 related to the November 2018 Note. These costs are also being amortized over the life of the November 2018 Note. The Company received cash proceeds of $75,000. On November 29, 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 the note, payable before or upon maturity. This note matures six months from the effective date of November 29, 2018. This note contains original issue discount of $10,000, payable at maturity, which is being amortized over the life of this 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. December 2018 Note On December 4, 2018, the Company issued a convertible note, in the principal amount of $103,000, to replace a note issued in June 2018 as discussed above. 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 interest at 10% per year and matures on September 4, 2019. This note contains original issue discount of $3,000, payable at maturity, which is being amortized over the life of this note. On December 7, 2018, the Company issued a convertible note (the “December 2018 Note”), with a face amount of $100,000. This note and related accrued interest are convertible, at the option of the holder, into shares of the Company’s common stock at a conversion price of 60% of the lowest trading price for 15 days prior to conversion. This note bears interest at 10% per year and matures on December 7, 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. During 2018, the Company amortized $343,882 of debt discount and $38,803 of debt issue costs to interest expense. Unamortized debt discount and debt costs of $134,219 and $5,554, respectively, were charged against gain on extinguishment of debt at the time of redemption. At December 31, 2018, unamortized debt discount was $440,315 and unamortized debt issue costs were $34,738. 2017 Transactions On April 21, 2017, the Company issued a convertible note in the amount of $100,000. The note is convertible, at the option of the holder, into shares of the Company’s common stock at a per share price of $0.03, subject to adjustment as provided in the note. The note matures on April 21, 2020. The note contained original issue discount of $10,000 which is being amortized over the life of the note. The Company has also incurred costs of $27,500 related to the note, consisting of $5,000 of legal costs and $22,500 for a commitment fee. These costs are also being amortized over the life of the note. The commitment fee was paid with 750,000 shares of common stock with a value of $22,500. The Company also recorded debt discount of $90,000 related to the embedded derivative, as described in Note 9, which is being amortized over the life of the note. On May 17, 2017, the Company issued two convertible notes, each with a face amount of $135,712. The notes contain substantially the same terms. The notes and related accrued interest are convertible, at the option of the holders, into shares of the Company’s common stock at a conversion price of 60% of the lowest trading price for 15 days prior to conversion. The notes bear interest at 8% per year and mature on May 17, 2018. The notes contained original issue discount aggregating of $24,675 which is being amortized over the life of the notes. The Company has also incurred aggregate legal costs of $11,750 related to the notes. These costs are also being amortized over the life of the notes. The Company also recorded debt discount of $246,750 related to the embedded derivative, as described in Note 9 which is being amortized over the life of the note. The above notes were redeemed during the fourth quarter of 2017. As a result of the extinguishment of the debt and the related derivative liabilities, we recorded a gain of $696,261. On October 31, 2017, the Company issued a convertible note in the amount of $100,000. The note and related accrued interest are convertible, at the option of the holder, into shares of the Company’s common stock at a conversion price of 60% of the lowest trading price for 15 days prior to conversion. The note bears interest at 8% per year and matures on October 31, 2018. The Company incurred legal costs of $5,000 related to the note which are being 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 9, which is being amortized over the life of the 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. During 2017, the Company amortized $170,633 of debt discount and $11,021 of debt issue costs to interest expense. Unamortized debt discount and debt costs of $209,125 and $28,684, respectively, were charged against gain on extinguishment of debt at the time of redemption. At December 31, 2017, unamortized debt discount was $91,667 and unamortized debt issue costs were $4,545.

Derivative Liabilities

Derivative Liabilities	12 Months Ended
	Dec. 31, 2018
Notes to Financial Statements
Note 9. 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. December 2018 Note The Company identified embedded derivatives related to the conversion features of the December 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 $142,108, using the Black Scholes Model based on the following assumptions: (1) risk free interest rate of 2.68%; (2) dividend yield of 0%; (3) volatility factor of the expected market price of the Company’s common stock of 259%; 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 $42,109 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 $1,414 for the year ended December 31, 2018 and were charged to interest expense. During the year ended December 31, 2018, the Company recorded expense of $64,321 related to the change in the fair value of the derivative. The fair value of the embedded derivative was $207,843 at December 31, 2018, determined using the Black Scholes Model with the following assumptions: (1) risk free interest rate of 2.63%; (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 11 months. November 2018 Note The Company identified embedded derivatives related to the conversion features of the November 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 $113,398, using the Black Scholes Model based on the following assumptions: (1) risk free interest rate of 2.74%; (2) dividend yield of 0%; (3) volatility factor of the expected market price of the Company’s common stock of 268%; and (4) an expected life of 1 year. The initial fair value of the embedded debt derivative was allocated $78,750 as debt discount, which will be amortized to interest expense over the original term of the note, with the balance of $34,648 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 $1,930 for the year ended December 31, 2018 and were charged to interest expense. During the year ended December 31, 2018, the Company recorded expense of $48,931 related to the change in the fair value of the derivative. The fair value of the embedded derivative was $164,259 at December 31, 2018, determined using the Black Scholes Model with the following assumptions: (1) risk free interest rate of 2.60%; (2) dividend yield of 0%; (3) volatility factor of the expected market price of the Company’s common stock of 229%; and (4) an expected life of 10 months. October 2018 Note The Company identified embedded derivatives related to the conversion features of the October 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 $195,992, using the Black Scholes Model based on the following assumptions: (1) risk free interest rate of 2.64%; (2) dividend yield of 0%; (3) volatility factor of the expected market price of the Company’s common stock of 274%; and (4) an expected life of 1 year. The initial fair value of the embedded debt derivative was allocated $125,000 as debt discount, which will be amortized to interest expense over the original term of the note, with the balance of $70,992 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 $5,296 for the year ended December 31, 2018 and were charged to interest expense. During the year ended December 31, 2018, the Company recorded expense of $78,573 related to the change in the fair value of the derivative. The fair value of the embedded derivative was $279,861 at December 31, 2018, determined using the Black Scholes Model with the following assumptions: (1) risk free interest rate of 2.60%; (2) dividend yield of 0%; (3) volatility factor of the expected market price of the Company’s common stock of 232%; and (4) an expected life of 9 months. 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 $6,288 for the year ended December 30, 2018 and were charged to interest expense. During the year ended December 31, 2018, the Company recorded expense of $64,052 related to the change in the fair value of the derivative. The fair value of the embedded derivative was $264,757 at December 31, 2018, determined using the Black Scholes Model with the following assumptions: (1) risk free interest rate of 2.60%; (2) dividend yield of 0%; (3) volatility factor of the expected market price of the Company’s common stock of 217%; and (4) an expected life of 8.5 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 $8,800 for the year ended December 31, 2018 and were charged to interest expense. During the year ended December 31, 2018, the Company recorded expense of $31,881 related to the change in the fair value of the derivative. The fair value of the embedded derivative was $193,495 at December 31, 2018, determined using the Black Scholes Model with 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 213%; and (4) an expected life of 6 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 $6,659 for the year ended December 31, 2018, respectively, and were charged to interest expense. During the year ended December 31, 2018, the Company recorded expense of $5,036, related to the change in the fair value of the derivative. The fair value of the embedded derivative was $169,973 at December 31, 2018, determined using the Black Scholes Model with 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 226%; and (4) an expected life of 5 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 $12,833 year ended December 31, 2018 and were charged to interest expense. During the year ended December 31, 2018, the Company recorded 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 $8,514 for the year ended December 31, 2018 and were charged to interest expense. During the year ended December 31, 2018, the Company recorded expense of $29,931 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.

Stock Options and Warrants

Stock Options and Warrants	12 Months Ended
	Dec. 31, 2018
Notes to Financial Statements
Note 10. Stock Options and Warrants	Options In June 2000 and November 2009, the Company’s Board of Directors adopted, and the shareholders approved, the 2000 Plan and 2009 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 and 15,000,000 shares of common stock to be issued pursuant to the 2000 Plan and the 2009 Plan, respectively. On February 27, 2015, the shareholders approved the Dais Analytic Corporation 2015 Stock Incentive Plan (the “2015 Plan”). The number of shares of common stock reserved for issuance under the 2015 Plan is 10,000,000. The Plans and the 2015 Plan permit grants of options to purchase common shares authorized and approved by the Company’s Board of Directors. There were no stock options issued to consultants during the year ended December 31, 2018 and 2017. The following summarizes the information relating to outstanding stock options activity during 2018 and 2017: Common Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at December 31, 2016 18,842,558 $ 0.25 5.06 $ - Granted 10,150,000 0.04 Forfeited or expired (2,100,000 ) 0.14 Outstanding at December 31, 2017 26,892,558 0.17 6.42 $ - Granted - - Forfeited or expired (2,000,000 ) 0.16 Outstanding at December 31, 2018 24,892,558 $ 0.17 5.5 $ - Exercisable at December 31, 2018 24,892,558 $ 0.17 5.5 $ - Stock compensation expense related to options was $0 and $332,966 for the years ended December 31, 2018 and 2017, respectively. The weighted average fair value of options granted at market during 2017 was $0.04 per option. The Company calculated the fair value of the 2017 options using the Black Scholes model with the following assumptions: (1) risk free rate of 2.24%; (2) dividend yield of 0%; (3) volatility factor of the expected market price of the Company's common stock of 185%; and (4) an expected life of 10 years. The exercise price is $0.04 for the options granted in 2017. As of December 31, 2018, there was no of unrecognized employee stock-based compensation expense related to non-vested stock options. Warrants At December 31, 2018, the Company had outstanding warrants to purchase the Company’s common stock which were issued in connection with multiple financing arrangements and consulting agreements. Information relating to these warrants is summarized as follows: Number of Shares Weighted Average Remaining Life (Years) Weighted Average Exercise Price Warrants at December 31, 2016 5,585,358 1.01 $ 0.34 Granted 26,250,000 0.01 Forfeited or expired (4,375,000 ) - Warrants at December 31, 2017 27,460,358 9.29 $ 0.03 Granted - - Forfeited or expired (1,210,358 ) 0.48 Warrants at December 31, 2018 26,250,000 8.70 $ 0.01

Deferred Revenue

Deferred Revenue	12 Months Ended
	Dec. 31, 2018
Notes to Financial Statements
Note 11. 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 $50,000 and $1,344 for the years ended December 31, 2018, respectively. Deferred revenue for the agreement was $448,656 and $498,656 at December 31, 2018 and 2017, respectively. The Company recognized royalty revenue of $0 for the years ended December 31, 2018 and 2017.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2018
Notes to Financial Statements
Note 12. Commitments and Contingencies	The Company has employment agreements with some of its key employees and executives. These agreements provide for minimum levels of compensation during current and future years. In addition, these agreements call for grants of stock options and for payments upon termination of the agreements. The Company entered into an amended and restated employment agreement with Mr. Timothy N. Tangredi, the Company’s President, Chief Executive Officer, and director, dated as of September 14, 2011. Mr. Tangredi’s employment agreement provides for an initial term of three years commencing on September 14, 2011 with the term extending on the second anniversary thereof for an additional two year period and on each subsequent anniversary of the commencement date for an additional year. Mr. Tangredi’s initial base salary is $200,000. Mr. Tangredi’s base salary shall be increased annually, if applicable, by a sum equal to his current base salary multiplied by one third of the percentage increase in the Company’s yearly revenue compared to the Company’s prior fiscal year revenue; provided however any annual increase in Mr. Tangredi’s base salary shall not exceed a maximum of 50% for any given year. Any further increase in Mr. Tangredi’s base salary shall be at the sole discretion of the board of directors or compensation committee (if applicable). Additionally, at the discretion of the Company’s board of directors and its compensation committee, Mr. Tangredi may be eligible for an annual bonus, if any, of up to 100% of his then-effective base salary, if he meets or exceeds certain annual performance goals established by the board of directors. In addition to this bonus, Mr. Tangredi may be eligible for a separate merit bonus if approved by the board of directors, for specific extraordinary events or achievements such as a sale of a division, major license or distribution arrangement or merger. Mr. Tangredi is entitled to medical, disability and life insurance, as well as six weeks of paid time off annually, an automobile allowance, reimbursement of all reasonable business expenses, automobile insurance and maintenance, and executive conference or educational expenses. Under his employment agreement, in addition to any other compensation which he may receive, if the Company completes a secondary public offering, Mr. Tangredi will be granted an option to purchase up to 520,000 shares of the Company’s common stock with an exercise price equal to the fair market value per share on the date of grant. This option will become vested and exercisable in thirds, with one third vested upon grant, another third at the one-year anniversary of the grant, and another third upon the second anniversary of the grant. The option shall have a term of ten years, shall be exercisable for up to three years after termination of employment (unless termination is for cause, in which event it shall expire on the date of termination), shall have a “cashless” exercise feature, and shall be subject to such additional terms and conditions as are then applicable to options granted under such plan provided they do not conflict with the terms set forth in the agreement. If Mr. Tangredi’s employment is terminated for any reason, the Company’s will be obligated to pay him his accrued but unpaid base salary, bonus and accrued vacation pay, and any unreimbursed expenses (“Accrued Sums”). In addition to any Accrued Sums owed, if Mr. Tangredi’s employment is terminated by the Company in the event of his disability or without cause or by Mr. Tangredi for good reason, he shall be entitled to: (i) an amount equal to the sum of (A) the greater of 150% of the base salary then in effect or $320,000 plus (B) the cash bonus and/or merit bonus, if any, awarded for the most recent year; (ii) health and life insurance, a car allowance and other benefits set forth in the agreement until two years following termination of employment, and thereafter to the extent required by COBRA or similar statute; and (iii) all stock options, to the extent they were not exercisable at the time of termination of employment, shall become exercisable in full. In addition to any Accrued Sum owed, in the event of termination upon death, Mr. Tangredi shall be entitled to (i) and (iii) above. In addition to any Accrued Sums owed, in the event that Mr. Tangredi elects to terminate employment within one year following a change in control, he shall receive a lump sum payment equal to the sum of (a) the greater of his then current base salary or $210,000 plus (b) the cash bonus and merit bonus, if any, awarded in the most recent year. In addition, he will be entitled to (ii) and (iii) above. The employment agreement also contains customary covenants restricting the use of the Company’s confidential information and solicitation of employees, which are similarly applicable to other executive officers. In addition the Company is obligated to indemnify Mr. Tangredi for any claims made against him in connection with his employment with the Company, to advance indemnification expenses, and maintain his coverage under the Company’s directors’ and officers’ liability insurance policy. Under the employment agreement, the Company and Mr. Tangredi have agreed that the Company will retain an independent compensation consultant, which may modify the compensation program for Mr. Tangredi and other officers, subject to certain conditions including approval of the board of directors. Notwithstanding the recommendation and board consideration, Mr. Tangredi has the right to continue the current terms of the employment agreement. On February 27, 2015, the Company and Mr. Tangredi entered into an amendment to Mr. Tangredi’s Amended and Restated Employment Agreement. Currently, the Company has non-interest bearing accrued compensation due to the Chief Executive Officer for deferred salaries earned and unpaid as described above. The amendment provides that, if at any time during a calendar year, the unpaid compensation is greater than $500,000, Mr. Tangredi must convert $100,000 of unpaid compensation into the Company’s common stock during such calendar year. The conversion rate shall be equal to 75% of the average closing price for the Company’s common stock for the 30 trading days prior to the date of conversion. The Company shall also pay to Mr. Tangredi a cash payment equal to 20% of the compensation income incurred as a result of the conversion. Further, at any time any "person" or "group" (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934) becomes the "beneficial owner" (as defined in Rules 13(d)-3 and 13(d)-5 under such Act) of greater of 40% of the then-outstanding voting power of the voting equity interests or a person or group initiate a tender offer for the Company's common stock, Mr. Tangredi may convert unpaid compensation to Class A Convertible Preferred Stock of the Company at $1.50 per share. The Board of Directors waived the requirement to convert $100,000 of unpaid compensation into common stock during 2018 and 2017. No amounts have been converted under this agreement to date. 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”). As a result of the above, we terminated the Soex Distribution Agreement. As provided in Section 14(e) of the Soex Distribution Agreement, the Company has the right to enforce any obligation due to us by 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 us 25% of the equity of SOEX (Beijing) Environmental Protection Technology Company Limited. As provided in Section 14(b), neither us 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. The Soex Litigation was moved to the U.S. District Court for the Middle District of Florida where Soex has instituted a counterclaim (Civil Docket Case #: 8:15-CV-02362-MSS-EAJ). 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 between October 22 and 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, Zhongshan Trans-Tech New Material Technology Co. Ltd. Zhongshan, China, (“Transtech”), and the Chairperson of the affiliate and Soex, based on new information learned by the Company. The Company will seek maximum relief and damages for this on-gong 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.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2018
Notes to Financial Statements
Note 13. Income Taxes	On December 22, 2017, the Tax Cuts and Jobs Act (the “Act”), a tax reform bill, was enacted. The Act, among other items, reduces the current federal income tax rate to 21% from 35%. The rate reduction is effective January 1, 2018 and is permanent. The Act has caused the Company’s deferred income taxes to be revalued based upon the tax rate reduction from 35% to 21%. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through income tax expense. Pursuant to the guidance within SEC Staff Accounting Bulletin No. 118 (“SAB 118”), as of December 31, 2017, the Company recognized the provisional effects of the enactment of the Act for which measurement could be reasonably estimated. Since the Company has provided a full valuation allowance against its deferred tax assets, the revaluation of the deferred tax assets did not have a material impact on any period presented. The ultimate impact of the Act may differ from these estimates due to the Company’s continued analysis or further regulatory guidance that may be issued as a result of the Act. As a result of the reduction of the federal corporate income tax rate, the Company reduced the value of its net deferred tax asset by $4,126,000 which was recorded as a corresponding reduction to the valuation allowance during the fourth quarter of 2017. The Company had, subject to limitation, approximately $29,800,000 of net operating loss carryforwards at December 31, 2018, which will expire at various dates beginning in 2019 through 2037. In addition, the Company has research and development tax credits of approximately $333,000 at December 31, 2018 available to offset future taxable income, which will expire from 2030 through 2037. We have provided a 100% valuation allowance for the deferred tax benefits resulting from the net operating loss carryover and our tax credits due to our lack of earnings history. In addressing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences are deductible. The valuation allowance increased by approximately $600,000 and $671,000 for the years ended December 31, 2018 and 2017, respectively. Significant components of deferred tax assets and liabilities are as follows: 2018 2017 Deferred revenue $ 114,000 $ 126,000 Depreciation 6,000 6,000 Accrued compensation 477,000 432,000 Research and development credit 333,000 308,000 Accrued warranty and interest expense 86,000 46,000 Net operating loss carryforward 7,551,000 7,049,000 Valuation allowance (8,567,000 ) (7,967,000 ) $ - $ - A reconciliation of the federal statutory income tax rate to the Company’s effective income tax rate is as follows: December 31, 2018 2017 Federal statutory income tax rate (21.0 )% (35.0 )% State income taxes, net of federal benefit (4.3 ) (4.0 ) Permanent differences 6.3 10.4 Change in valuation allowance 19.0 28.6 Provision for income taxes 0.0 % 0.0 % As of December 31, 2018, the Company has not performed an IRC Section 382 study to determine the amount, if any, of its net operating losses that may be limited as a result of the ownership change percentages during 2018 and prior years. However, the Company will complete the study prior to the utilization of any of its recorded net operating losses. Income Tax returns remain open by statue, generally for the years 2015 through 2018.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2018
Notes to Financial Statements
Note 14. Subsequent Events	No material events have occurred after December 31, 2018 that requires recognition or disclosure in the financial statements except as follows: On January 28, 2019, the Company entered into a Seventeenth Amendment of the Loan and Security Agreement with a related party (described in Note 6), 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 8, 2019. In consideration of the extension of maturity date, the Company will issue 20,000 shares of common stock. On February 20, 2019, the Company issued convertible notes, with a face amount of $155,000. The notes contain substantially the same terms. The notes and related accrued interest are convertible, at the option of the holders, into shares of the Company’s common stock at a conversion price of 60% of the lowest trading price for 15 days prior to conversion. The notes bear interest at 8% per year and mature on February 20, 2020. The notes contain original issue discount aggregating $12,500 which is being amortized over the life of the notes. costs are also being amortized over the life of the notes. The Company received cash proceeds of $142,500. On February 21, 2019, Dais Analytic Corporation Inc. (the “Company”) filed a Certificate of Amendment to its Certificate of Incorporation (the “Charter Amendment”) changing the Company’s name to Dais Corporation (the “Name Change”). On February 26, 2019, the Company received notice from Financial Industry Regulatory Authority (“FINRA”) that the Name Change had been approved and would take effect at the opening of trading on February 27, 2019. On February 21, 2019 the Company amended its Certificate of Incorporation to authorize the issuance of a total number of shares to be 350,000,000, consisting of 340,000,000 shares of common stock, having a par value of $0.01 per share, and 10,000,000 shares of preferred stock, having a par value of $0.01 per share. On March 18, 2019, the Company signed a letter to extend the maturity date to August 15, 2019 of two convertible notes. In exchange the company would pay a minimum of $1,000 per month against the total sum owed and 1 Million shares of common stock each month until the notes are paid in full. On March 18, 2019, the Company signed a letter to extend the maturity date to August 15, 2019 of convertible notes dated June 6, 2018, August 13, 2018 and October 31, 2018. In exchange the company would pay a minimum of $1,000 per month against the total sum owed and 1 Million shares of common stock each month until the notes are paid in full. During February 7, 2019 to March 20, 2019 there were 8,853,398 common shares issued as part of conversion shares in accordance with terms of a $100,000 convertible redeemable note that was due in December 2018. On March 14, 2019, the Company received a written consent in lieu of a meeting in accordance with the New York Business Corporations Act by the holders of 51% of the voting power of the Common Stock authorizing approval of increasing the number of shares of Common Stock the Company is authorized to issue from 340,000,000 to 1,100,000,000.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 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 stock based compensation, fair value of derivative liabilities, valuation allowance on deferred taxes and the warranty reserve.
Cash and cash equivalents	For 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 had no uninsured balances at December 31, 2018. The Company has never experienced any losses related to these balances.
Accounts receivable	Accounts receivable consist primarily of receivables from the sale of the Company’s ERV products and royalties due under license and supply agreements. The Company regularly reviews accounts receivable for any bad debts based on an analysis of the Company’s collection experience, customer credit worthiness and current economic trends. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. Based on management’s review of accounts receivable, no allowance for doubtful accounts was deemed necessary at December 31, 2018 and 2017, respectively.
Concentrations	At December 31, 2018, one customer accounted for 100% of accounts receivable. For the year ended December 31, 2018, three customers accounted for 74% of total revenue. For the year ended December 31, 2017 one customer accounted for 15% of total revenue.
Other receivables	Other receivables consist primarily of receivables from the U.S. Department of Defense and the U.S. Department of Energy (See Note 3 - Research and development expenses and funding proceeds). The Company prepares invoices as it meets funding program milestones. Based on management’s review of other receivables, management has determined that no allowance for other receivables is necessary at December 31, 2018 and 2017.
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 December 31, 2018 and 2017 the carrying amounts of these instruments approximated their fair values because of the short-term nature of these instruments.
Inventory	Inventory consists of raw materials, work-in-process and finished goods and is stated at the lower of cost, determined by first-in, first-out method, or market. Market is determined based on the net realizable value, with appropriate consideration given to obsolescence, excessive levels, deterioration and other factors. At December 31, 2018 and 2017, the Company had $40,341 and $85,173 of raw materials, $12,191 and $9,211 of in-process inventory and $652 and $7,223 of finished goods inventory, respectively. A reserve is recorded for any inventory deemed excessive or obsolete. No reserve is recorded at December 31, 2018 and 2017, respectively.
Property and equipment	Property and equipment is recorded at cost. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets ranging from 3 to 7 years. Leasehold improvements are amortized over the shorter of their estimated useful lives of 5 years or the related lease term. Depreciation and amortization expense were $39,580 and $41,340 for the years ended December 31, 2018 and 2017, respectively. Gains and losses upon disposition are reflected in the Statement of Operations in the period of disposition. Maintenance and repair expenditures are charged to expense as incurred. There were no dispositions of property and equipment in 2018 and 2017.
Intangible assets	Identified intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company’s existing intangible assets consist solely of patents. Patents are amortized over their estimated useful or economic lives of 17 years. Patent amortization expense was $21,508 and $19,449 for the years ended December 31, 2018 and 2017, respectively. Based on current capitalized costs, total patent amortization expense is estimated to be approximately $17,000 per year for the next five years and thereafter.
Long-lived assets	Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the asset may not be recoverable. The Company periodically evaluates whether events and circumstances have occurred that indicate possible impairment. When impairment indicators exist, the Company estimates the future undiscounted net cash flows of the related asset or asset group over the remaining life in measuring whether or not the asset values are recoverable. The Company did not recognize impairment on its long-lived assets during the years ended December 31, 2018 or 2017.
Government Funding	Government funding represents grants from the U.S. Department of Defense and U.S. Department of Energy and are recognized when there is reasonable assurance that the funding will be received and conditions associated with the funding are met. When fundings are received related to property and equipment, the Company reduces the basis of the assets on the balance sheet, resulting in lower depreciation expense over the life of the associated asset. When fundings are received which relate to expense reimbursement they are recorded as a reduction of the associated expense in the period in which the expense is incurred.
Research and development expenses and funding proceeds	Expenditures for research, development and engineering of products are expensed as incurred. The Company incurred research and development costs of $318,359 and $467,524 for the years ended December 31, 2018 and 2017, respectively. The Company accounts for proceeds received from government fundings for research as a reduction in research and development costs. The Company recorded proceeds against research and development expenses on the Statements of Operations of $64,894 and $150,912 for the years ended December 31, 2018 and 2017, respectively.
Stock issuance costs	Stock issuance costs are recorded as a reduction of the related proceeds through a charge to stockholders’ deficit.
Common stock	The Company records common stock issuances when all of the legal requirements for the issuance of such common stock have been satisfied.
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 December 31, 2018 and 2017, which is included in accrued expenses, other. Royalty revenue is recognized as earned. The Company recognized royalty revenue of $0 for the years ended December 31, 2018 and 2017, respectively. Revenue derived from the sale of licenses is deferred and recognized as license fee revenue on a straight-line basis over the life of the license, or until the license arrangement is terminated. The Company recognized license fee revenue of $50,000 and $1,344 for the years ended December 31, 2018 and 2017, respectively. The Company accounts for revenue arrangements with multiple elements under the provisions of the Financial Accounting Standards Boards (FASB) Accounting Standards Codification (ASC) Topic 605-25, “Revenue Recognition-Multiple-Element Arrangements.” In order to account for these agreements, the Company must identify the deliverables included within the agreement and evaluate which deliverables represent separate units of accounting based on if certain criteria are met, including whether the delivered element has stand-alone value to the licensee. The consideration received is allocated among the separate units of accounting, and the applicable revenue recognition criteria are applied to each of the separate units. In December 2017, the Company and Zhejiang MENRED Environmental Tech Co, Ltd., Zhejiang Province, China (“Menred”), entered into a License and Supply Agreement (the “Agreement”), effective December 21, 2017. Pursuant to the Agreement, the Company licensed certain intellectual property and improvements to Menred, for use in the manufacture and sale of energy recovery ventilators (“ERV”) and certain other HVAC systems for installation in commercial, residential or industrial buildings in China. Menred also agreed to purchase its requirements of certain products from the Company for Menred’s use, pursuant to the terms and conditions of the Agreement. Menred will also pay royalties, as defined, to the Company on a quarterly basis, based on price and production volume as provided by Menred. No royalties are due within the first year of the Agreement. Also pursuant to the Agreement, the Company is required to purchase 50,000 square meters of Product from Menred for delivery as an annual minimum with a 10,000 square meter minimum order quantity per delivery. The Agreement has a ten-year term with mutually agreed upon five-year extensions. Shipping and handling fees billed to customers are included in revenue. Shipping and handling fees associated with freight are generally included in cost of revenue.
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.
Warranties	The Company offers a limited warranty generally ranging from one to three years, A provision for product warranties has been recorded at December 31, 2018 and 2017. The Company has not incurred any warranty expense in either 2018 or 2017.
Stock based compensation	The Company recognizes all share-based payments to employees, including grants of employee stock options, as compensation expense in the financial statements based on their fair values. That expense will be recognized over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period) or immediately if the share-based payments vest immediately. The value of each grant is estimated at the grant date using the Black-Scholes option model with the following assumptions for options granted during the years ended December 31, 2018 and 2017. There were no grants in 2018. Years Ended December 31, 2018 2017 Dividend rate - 0 % Risk free interest rate - 2.34 % Expected term - 10 years Expected volatility - 244 % The basis for the above assumptions are as follows: the dividend rate is based upon the Company’s history of dividends; the risk-free interest rate for periods within the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant; the expected term was calculated based on the Company’s historical pattern of options granted and the period of time they are expected to be outstanding; and expected volatility was calculated based upon historical trends in the Company’s common stock for periods prior to the date the Company’s trading information was available. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Based on historical experience of forfeitures, the Company estimated forfeitures at 0% for each of the years ended December 31, 2018 and 2017, respectively.
Non-employee stock-based compensation	The Company’s accounting policy for equity instruments issued to consultants and vendors in exchange for goods and services follows the provisions of ASC 505-50 Equity-Based Payments to Non-Employees
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 December 31, 2018: Fair Value at December 31, Fair Value Measurement Using 2018 Level 1 Level 2 Level 3 Derivative liability $ 1,280,188 $ - $ - $ 1,280,188 The reconciliation of the derivative liability measured at fair value on a recurring basis using unobservable inputs (Level 3) is as follows for the years ended December 31, 2018 and 2017: December 31, December 31, 2018 2017 Balance, beginning of year $ 243,501 $ - Additions 1,292,460 1,043,283 Extinguished derivative liability (578,156 ) (934,071 ) Change in fair value of derivative liabilities 322,383 134,289 $ 1,280,188 $ 243,501
Income taxes	Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes resulting from temporary differences. Such temporary differences result from differences in the carrying value of assets and liabilities for tax and financial reporting purposes. The deferred tax assets and liabilities represent the future tax consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The Company identifies and evaluates uncertain tax positions, if any, and recognizes the impact of uncertain tax positions for which there is a less than more-likely-than-not probability of the position being upheld when reviewed by the relevant taxing authority. Such positions are deemed to be unrecognized tax benefits and a corresponding liability is established on the balance sheet. The Company has not recognized a liability for uncertain tax positions. If there were an unrecognized tax benefit, the Company would recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. The Company’s 2015 through 2018 tax years remain open and subject to examination by the Internal Revenue Service.
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 income (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 and upon the conversion of notes. In periods in which a net loss has been incurred, all potentially dilutive common shares are considered anti-dilutive and thus are excluded from the calculation. Common share equivalents of 109,663,487 and 62,748,350 were excluded from the computation of diluted earnings per share for the years ended December 31, 2018 and 2017, respectively, because their effect is anti-dilutive.
Recent Accounting Pronouncements	There are new accounting pronouncements issued by the Financial Accounting Standards Board (“FASB”) which are 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)	12 Months Ended
	Dec. 31, 2018
Disclosure Significant Accounting Policies Tables Abstract
Stock based compensation	Years Ended December 31, 2018 2017 Dividend rate - 0 % Risk free interest rate - 2.34 % Expected term - 10 years Expected volatility - 244 %
Derivative Financial Instruments	Fair Value at December 31, Fair Value Measurement Using 2018 Level 1 Level 2 Level 3 Derivative liability $ 1,280,188 $ - $ - $ 1,280,188
Reconciliation of derivative liability	December 31, December 31, 2018 2017 Balance, beginning of year $ 243,501 $ - Additions 1,292,460 1,043,283 Extinguished derivative liability (578,156 ) (934,071 ) Change in fair value of derivative liabilities 322,383 134,289 $ 1,280,188 $ 243,501

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2018
Property And Equipment
Property and Equipment	December 31, 2018 2017 Furniture and fixtures $ 20,966 $ 20,966 Computer equipment and software 21,761 21,761 Demonstration equipment 92,733 92,733 Office and lab equipment 308,949 318,649 Leasehold improvements 14,808 9,708 Property and equipment, gross 459,217 463,817 Less accumulated depreciation 401,797 371,917 Property and equipment, net $ 57,420 $ 91,900

Accrued Expenses, Other (Tables

Accrued Expenses, Other (Tables)	12 Months Ended
	Dec. 31, 2018
Accrued Expenses Other
Accrued Expenses	December 31, 2018 2017 Accrued expenses, other $ 611,070 $ 254,123 Accrued warranty costs 91,531 91,531 $ 702,601 $ 345,654

Convertible Notes Payable (Tabl

Convertible Notes Payable (Tables)	12 Months Ended
	Dec. 31, 2018
Convertible Notes Payable
Convertible Notes Payable	December 31, 2018 December 31, 2017 Convertible notes payable, bearing interest at 8% $ 1,284,250 $ 100,000 Unamortized debt discount (440,315 ) (91,667 ) Unamortized deferred debt issuance cost (34,738 ) (4,545 ) Total 809,197 3,788 Current portion $ 809,197 $ 3,788

Stock Options and Warrants (Tab

Stock Options and Warrants (Tables)	12 Months Ended
	Dec. 31, 2018
Stock Options And Warrants
Outstanding stock options activity	Common Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at December 31, 2016 18,842,558 $ 0.25 5.06 $ - Granted 10,150,000 0.04 Forfeited or expired (2,100,000 ) 0.14 Outstanding at December 31, 2017 26,892,558 0.17 6.42 $ - Granted - - Forfeited or expired (2,000,000 ) 0.16 Outstanding at December 31, 2018 24,892,558 $ 0.17 5.5 $ - Exercisable at December 31, 2018 24,892,558 $ 0.17 5.5 $ -
Warrants outstanding	Number of Shares Weighted Average Remaining Life (Years) Weighted Average Exercise Price Warrants at December 31, 2016 5,585,358 1.01 $ 0.34 Granted 26,250,000 0.01 Forfeited or expired (4,375,000 ) - Warrants at December 31, 2017 27,460,358 9.29 $ 0.03 Granted - - Forfeited or expired (1,210,358 ) 0.48 Warrants at December 31, 2018 26,250,000 8.70 $ 0.01

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2018
Income Taxes
Deferred tax assets and deferred tax liabilities	2018 2017 Deferred revenue $ 114,000 $ 126,000 Depreciation 6,000 6,000 Accrued compensation 477,000 432,000 Research and development credit 333,000 308,000 Accrued warranty and interest expense 86,000 46,000 Net operating loss carryforward 7,551,000 7,049,000 Valuation allowance (8,567,000 ) (7,967,000 ) $ - $ -
Reconciliation of the federal statutory income tax rate	December 31, 2018 2017 Federal statutory income tax rate (21.0 )% (35.0 )% State income taxes, net of federal benefit (4.3 ) (4.0 ) Permanent differences 6.3 10.4 Change in valuation allowance 19.0 28.6 Provision for income taxes 0.0 % 0.0 %

Background Information (Details

Background Information (Details Narrative)	12 Months Ended
	Dec. 31, 2018
Background Information
Date of incorporation	April 1993
State of incorporation	Florida

Going Concern and Management'_2

Going Concern and Management's Plans (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Going Concern And Managements Plans
Net loss	$ (3,024,761)	$ (3,447,943)
Accumulated deficit	(50,137,190)	(47,112,429)
Stockholders' deficit	(6,801,397)	(4,165,451)	$ (2,167,684)
Working capital deficit	(7,014,439)
Cash and cash equivalents	29,300	122,036	$ 21,066
Net cash used by operating activities	$ (1,069,228)	$ (870,428)

Significant Accounting Polici_4

Significant Accounting Policies (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Disclosure Significant Accounting Policies Details Abstract
Dividend rate		0.00%
Risk free interest rate		2.34%
Expected term		10 years
Expected volatility		244.00%

Significant Accounting Polici_5

Significant Accounting Policies (Details 1) - USD ($)	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Derivative Liability	$ 1,280,188	$ 243,501
Level 1 [Member]
Derivative Liability
Level 2 [Member]
Derivative Liability
Level 3 [Member]
Derivative Liability	$ 1,280,188

Significant Accounting Polici_6

Significant Accounting Policies (Details 2) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Significant Accounting Policies Details Abstract
Balance, beginning of year	$ 243,501
Additions	1,292,460	1,043,283
Extinguished derivative liability	(578,156)	(934,071)
Change in fair value of derivative liabilities	322,383	134,289
Balance at end of period	$ 1,280,188	$ 243,501

Significant Accounting Polici_7

Significant Accounting Policies (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Allowance for doubtful accounts
Inventory raw materials	40,341	85,173
Inventory in process	12,191	9,211
Inventory finished goods	652	7,223
Depreciation and amortization expense	$ 39,580	41,340
Patents estimated useful life	17 years
Patent amortization expense	$ 21,508	19,449
Future amortization expense, 2018	17,000
Future amortization expense, 2019	17,000
Future amortization expense, 2020	17,000
Future amortization expense, 2021	17,000
Future amortization expense, 2022	17,000
Future amortization expense, thereafter	17,000
Research and development costs	318,359	467,524
Research and development expenses, net of government grant	64,894	150,912
Accrued future warranty expenses	91,531	91,531
Revenue recognition from license fee	50,000	1,344
Revenue recognition from royalties	$ 0	$ 0
Common share excluded from diluted earnings per share	109,663,487	62,748,350
Description for product warranty	In certain instances, the Company’s ConsERV system product may carry a limited warranty of up to two years for all parts contained therein with the exception of the energy recovery ventilator core produced and sold by the Company. The distributor of the ConsERV system may carry a limited warranty of up to ten years.
Intellectual property royalties' agreement description	Also pursuant to the Agreement, the Company is required to purchase 50,000 square meters of Product from Menred for delivery as an annual minimum with a 10,000 square meter minimum order quantity per delivery. The Agreement has a ten-year term with mutually agreed upon five-year extensions.
Estimated forfeitures rate	0.00%	0.00%
One Customer [Member]
Total revenue percentage		15.00%
Accounts receivable percentage	100.00%
Three Customers [Member]
Total revenue percentage	74.00%
Leasehold Improvements [Member]
Property and equipment estimated useful life	5 years
Minimum [Member]
Property and equipment estimated useful life	3 years
Maximum [Member]
Property and equipment estimated useful life	7 years

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Disclosure Property And Equipment Details Abstract
Furniture and fixtures	$ 20,966	$ 20,966
Computer equipment and software	21,761	21,761
Demonstration equipment	92,733	92,733
Office and lab equipment	308,949	318,649
Leasehold improvements	14,808	9,708
Property and equipment, gross	459,217	463,817
Less accumulated depreciation	401,797	371,917
Property and equipment, net	$ 57,420	$ 91,900

Accrued Expenses, Other (Detail

Accrued Expenses, Other (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Disclosure Accrued Expenses Other Details Abstract
Accrued expenses, other	$ 611,070	$ 254,123
Accrued warranty costs	91,531	91,531
Accrued Expenses	$ 702,601	$ 345,654

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	1 Months Ended					12 Months Ended
	Jan. 28, 2019	Oct. 31, 2017	Apr. 21, 2017	Jun. 24, 2016	Feb. 27, 2015	Dec. 31, 2018	Dec. 31, 2017
Rent expense						$ 56,760	$ 56,760
Lease term description						The lease term will terminate upon 30 days’ written notice from landlord or 90 days written termination from us.
Debt instrument maturity date		Oct. 31, 2018	Apr. 21, 2020
Issuance of common stock in lieu of cash payment to related party, Shares			750,000
Issuance of common stock in lieu of cash payment to related party, value						$ 300,000	490,500
Building [Member]
Monthly rent expense						4,066
Loan And Security Agreement [Member] | Patricia Tangredi [Member]
Senior secured Promissory Note				$ 150,000
Senior secured debt, interest rate				12.00%
Senior secured debt, minimum interest payment				$ 2,000
Principal loan amount				$ 150,000		$ 1,332,000
Debt instrument maturity date	Apr. 8, 2019			Oct. 31, 2016		Nov. 16, 2018
Interest expense						$ 159,842	88,441
Accrued interest						$ 261,901	$ 102,059
Description for the terms of repayment of senior debt				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”).
Issuance of common stock in lieu of cash payment to related party, Shares							480,000
Issuance of common stock in lieu of cash payment to related party, value							$ 17,200
Due to related party							15,400
Amendment to agreement, shares to be issued as consideration	20,000
Loan And Security Agreement [Member] | Patricia Tangredi [Member] | Warrant [Member]
Shares issuable upon exercise of warrants or rights	1,000,000					26,250,000
Exercise price	$ 0.01					$ 0.01
Exercise period	10 years					10 years
Chief Executive Officer [Member]
Accrued compensation						$ 1,772,623	$ 1,631,147
The"Tangredi Employment Agreement Amendment" [Member] | Chief Executive Officer [Member]
Description for the conversion of unpaid compensation					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
Change in control, terms of conversion of unpaid compensation					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

Equity Transactions (Details Na

Equity Transactions (Details Narrative)	Nov. 01, 2018$ / sharesshares	May 15, 2018USD ($)shares	May 07, 2018	Oct. 31, 2018	Jul. 31, 2018	Mar. 19, 2018	Oct. 31, 2017USD ($)	Dec. 31, 2018USD ($)Integer$ / sharesshares	Dec. 31, 2017USD ($)$ / sharesshares	Dec. 01, 2018USD ($)shares	Oct. 01, 2018USD ($)shares	Jul. 11, 2018USD ($)shares	Jun. 20, 2018USD ($)shares	Jun. 15, 2018USD ($)shares	Apr. 23, 2018USD ($)shares	Apr. 21, 2017USD ($)
Common stock par value | $ / shares								$ 0.01	$ 0.01
Common stock shares issued								149,819,895	140,608,645
Common stock shares authorized								240,000,000	240,000,000
Preferred stock shares authorized								7,990,000	7,990,000
Preferred stock, shares issued								0	0
Preferred stock, par value | $ / shares								$ 0.01	$ 0.01
Common stock, value | $								$ 1,498,200	$ 1,406,087
Common stock shares issued for services, value | $								300,000	490,500
Convertible note, face amount | $							$ 100,000									$ 100,000
Due to related party | $								$ 165,076	$ 104,543
Conversion price description							The note and related accrued interest are convertible, at the option of the holder, into shares of the Company’s common stock at a conversion price of 60% of the lowest trading price for 15 days prior to conversion.
Legal services [Member]
Common stock shares issued									3,028,568
Common stock, value | $									$ 120,000
Debt issue costs [Member]
Common stock shares issued									750,000
Common stock, value | $									$ 22,500
License and Supply Agreement [Member] | Zhejiang MENRED Environmental Tech Co, Ltd [Member]
Common stock shares issued for services, shares		2,000,000
Common stock shares issued for services, value | $		$ 40,000
Loan And Security Agreement [Member]
Loan and security agreement description			(i) the date upon which the Company secures funds, regardless of source, equal to or exceeding, in the aggregate, $1,000,000 or (ii) May 22, 2018. The Company is further obligated to issue 20,000 shares of $0.01 par value common stock valued at $600.	(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 $600.	(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.	(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.
Common Stock
Common stock shares issued for services, shares								2,000,000	3,028,568
Common stock shares issued for services, value | $								$ 60,000	$ 150,500
Common Stock | Loan And Security Agreement [Member]
Common stock shares issued									480,000
Common stock, value | $									$ 17,200
Due to related party | $									$ 15,400
Outside Investor [Member]
Common stock shares issued											200,000	200,000	148,750
Common stock, value | $											$ 6,000	$ 14,000	$ 8,925
Convertible note, face amount | $												$ 100,000	$ 89,250
Outside Investor [Member] | Two convertible notes [Member]
Common stock shares issued										662,500
Common stock, value | $										$ 19,875
Convertible note, face amount | $										$ 210,000
Outside Business Consultant [Member]
Common stock shares issued														3,000,000
Common stock, value | $														$ 180,000
Consultant [Member] | Consulting Agreement [Member]
Common stock shares issued															3,000,000
Common stock, value | $															$ 120,000
Preferred Class A [Member]
Preferred stock shares authorized								2,000,000
Preferred stock, shares issued								0
Number of votes entitle | Integer								150
Conversion price description								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.
Preferred Class B [Member]
Preferred stock shares authorized								10,000
Number of votes entitle | Integer								150
Voting right description								equal to 51% of the votes to approve certain corporate actions,
Preferred stock redemption price per share | $ / shares								$ 0.01
Class B Redeemable Preferred Stock [Member] | Timothy N. Tangredi [Member]
Preferred stock, shares issued	10
Preferred stock, par value | $ / shares	$ 0.01
Preferred Stock, stated value | $ / shares	$ 1.50
Class A or Class B Preferred Stock [Member] | Stated Amount [Member]
Preferred stock, par value | $ / shares								$ 1.50
Chief Executive Officer [Member]
Preferred stock description	in exchange for $15, pursuant to approval of the Board of Directors of the Company.
Consultants [Member]
Common stock shares issued									15,050,000
Common stock, value | $									$ 490,500

Convertible Notes Payable (Deta

Convertible Notes Payable (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Disclosure Convertible Notes Payable Details Abstract
Convertible notes payable, bearing interest at 8%	$ 1,284,250	$ 100,000
Unamortized debt discount	(440,315)	(91,667)
Unamortized deferred debt issuance cost	(34,738)	(4,545)
Total	809,197	3,788
Current portion	$ 809,197	$ 3,788

Convertible Notes Payable (De_2

Convertible Notes Payable (Details Narrative) - USD ($)	Dec. 07, 2018	Dec. 06, 2018	Dec. 04, 2018	Nov. 07, 2018	Oct. 05, 2018	Aug. 13, 2018	Jun. 07, 2018	Jun. 06, 2018	Jun. 01, 2018	Apr. 04, 2018	Mar. 12, 2018	Feb. 07, 2018	Nov. 29, 2018	Oct. 31, 2018	Sep. 18, 2018	Sep. 17, 2018	Aug. 28, 2018	Jul. 18, 2018	Jun. 22, 2018	Apr. 30, 2018	Oct. 31, 2017	May 17, 2017	May 17, 2017	Apr. 21, 2017	Sep. 30, 2018	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017
Convertible notes payable																					$ 100,000			$ 100,000
Maturity date of convertible notes payable																					Oct. 31, 2018			Apr. 21, 2020
Amortization of deferred debt issue costs																						$ 24,675		$ 10,000	$ 15,374	$ 21,345	$ 38,803	$ 11,021
Debt issue costs to interest expense																											38,803
Legal costs																					$ 5,000	11,750		$ 5,000
Description of conversion price																					The note and related accrued interest are convertible, at the option of the holder, into shares of the Company’s common stock at a conversion price of 60% of the lowest trading price for 15 days prior to conversion.
Amortization of debt discount																									81,823	207,579	343,883	170,633
Gain on extinguishment of debt																					$ 195,675	696,261			$ 154,047	$ 349,721
Common stock price per share																								$ 0.03
Note related costs																								$ 27,500
Commitment fee																								$ 22,500
Common stock shares issued for services, shares																								750,000
Common stock shares issued for services, value																								$ 22,500
Debt discount																					$ 100,000	246,750		$ 90,000
Unamortized debt discount																											(440,315)	(91,667)
Unamortized deferred debt issuance cost																											(34,738)	(4,545)
Convertible Notes [Member]
Convertible notes payable																						135,712	$ 135,712
Maturity date of convertible notes payable																							May 17, 2018
Description of conversion price																							The notes and related accrued interest are convertible, at the option of the holders, into shares of the Company’s common stock at a conversion price of 60% of the lowest trading price for 15 days prior to conversion.
Convertible Notes Payable One [Member]
Convertible notes payable																						$ 135,712	$ 135,712
Maturity date of convertible notes payable																							May 17, 2018
Description of conversion price																							The notes and related accrued interest are convertible, at the option of the holders, into shares of the Company’s common stock at a conversion price of 60% of the lowest trading price for 15 days prior to conversion.
Convertible Note [Member]
Convertible notes payable														$ 150,000
Common stock, conversion price per share														$ 0.15
Maturity date of convertible notes payable														Jan. 31, 2019
Legal costs														$ 4,500
Interest rate														5.00%
Original issue discount														$ 15,000
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		extend the maturity date of the note to September 4, 2019.					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	$ 6,000	$ 3,000										$ 4,250
Proceeds from notes payable							$ 100,000	$ 100,000	$ 50,000										$ 85,000
Description of conversion price																			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
Interest rate		10.00%					10.00%	10.00%	10.00%										8.00%
Amortization of debt discount		$ 20,000					$ 20,000	$ 20,000	$ 10,000
June 2018 Notes [Member] | June 2018 Additional Note [Member]
Convertible notes payable							103,000
Amortization of deferred debt issue costs							$ 3,000
Interest rate							10.00%
Amortization of debt discount							$ 3,000
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				extend the maturity date of the note to January 31, 2019.						The note matures six months from the effective date of April 30, 2018
Legal costs										$ 6,000				$ 9,000						$ 9,000
Proceeds from notes payable										$ 75,000										$ 150,000
Interest rate										10.00%				10.00%						10.00%
Amortization of debt discount										$ 15,000				$ 30,000						$ 30,000
April 2018 Notes [Member] | April 2018 Additional Note [Member]
Legal costs																				$ 4,500
Interest rate																				5.00%
Amortization of debt discount																				$ 15,000
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											The note matured six months from the effective date of March 12, 2018
Legal costs											$ 6,000				$ 6,000
Proceeds from notes payable											$ 100,000
Interest rate											10.00%				10.00%
Amortization of debt discount											$ 20,000
Original issue discount															$ 20,000
March 2018 Note [Member] | Convertible Note [Member]
Convertible notes payable															$ 100,000
Common stock, conversion price per share															$ 0.15
Maturity date description															Note matured six months from the effective date of March 12, 2018
Legal costs															$ 6,000
Interest rate															10.00%
Original issue discount															$ 20,000
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
Proceeds from notes payable												$ 150,000
Description of conversion price												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
Interest rate												8.00%
Amortization of debt discount												$ 17,500
Gain on extinguishment of debt												$ 154,047
December 2017 [Member]
Debt discount																												11,021
Amortized debt discount																												170,633
Unamortized debt discount and debt costs																												209,125
Debt discount charged against gain on extinguishment of debt																												28,684
Unamortized debt discount																												91,667
Unamortized deferred debt issuance cost																												$ 4,545
December 2018 Note [Member]
Convertible notes payable			$ 103,000
Common stock, conversion price per share			$ 0.15
Maturity date of convertible notes payable			Sep. 4, 2019
Interest rate			10.00%
Original issue discount			$ 3,000
Unamortized debt discount																											134,219
Unamortized deferred debt issuance cost																											$ 5,554
December 2018 Note [Member] | Convertible Note [Member]
Convertible notes payable	$ 100,000
Maturity date of convertible notes payable	Dec. 7, 2019
Maturity date description	Company’s common stock at a conversion price of 60% of the lowest trading price for 15 days prior to conversion.
Legal costs	$ 5,000
Proceeds from notes payable	$ 95,000
Interest rate	10.00%
November 2018 Note [Member]
Convertible notes payable				$ 78,750
Maturity date of convertible notes payable				Nov. 7, 2019
Maturity date description				Company’s common stock at a conversion price of 60% of the lowest trading price for 15 days prior to conversion.
Legal costs				$ 3,750
Finance costs				6,750
Proceeds from notes payable				$ 75,000
Interest rate				8.00%
November 2018 Note [Member] | Convertible Note [Member]
Convertible notes payable													$ 50,000
Common stock, conversion price per share													$ 0.15
Maturity date description													This note matures six months from the effective date of November 29, 2018.
Legal costs													$ 3,000
Proceeds from notes payable													$ 50,000
Interest rate													10.00%
Original issue discount													$ 10,000
October 2018 Note [Member] | Convertible Note [Member]
Convertible notes payable					$ 135,000
Maturity date of convertible notes payable					Sep. 28, 2019
Proceeds from notes payable					$ 125,000
Description of conversion price					Company’s common stock at a conversion price of 60% of the lowest trading price for 15 days prior to conversion.
Interest rate					8.00%
Original issue discount					$ 10,000
September 2018 Notes [Member]
Convertible notes payable																$ 131,250
Maturity date of convertible notes payable																Sep. 12, 2019
Legal costs																$ 6,250
Finance costs																13,125
Proceeds from notes payable																$ 125,000
Description of conversion price																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
Interest rate																8.00%
August 2018 Notes [Member]
Convertible notes payable						$ 100,000
Common stock, conversion price per share						$ 0.15
Maturity date description						The note matures six months from the effective date of August 13, 2018
Legal costs						$ 6,000
Proceeds from notes payable						$ 100,000
Interest rate						10.00%
Original issue 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																	The note matures twelve business days from the effective date of August 28, 2018
Proceeds from notes payable																	$ 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
Proceeds from notes payable																		$ 95,000
Description of conversion price																		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
Interest rate																		10.00%

Derivative Liabilities (Details

Derivative Liabilities (Details Narrative) - USD ($)	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017
Volatility				244.00%
Expected life				10 years
Debt discount	$ 81,823	$ 207,579	$ 343,883	$ 170,633
Interest expense			1,396,468	$ 1,554,803
October 2017 Note One [Member]
Fair value of embedded derivative			$ 281,946
Risk free interest rate			2.12%
Dividend yield			0.00%
Volatility			270.00%
Expected life			7 months 15 days
Change in the fair value of the derivative			$ 29,931
October 2017 Note [Member]
Fair value of embedded derivative			$ 324,426
Risk free interest rate			1.61%
Dividend yield			0.00%
Volatility			407.00%
Expected life			11 months
Debt discount			$ 100,000
Interest expense			8,514
Non cash interest expense			224,426
February 2018 Notes One [Member]
Fair value of embedded derivative			$ 296,210
Risk free interest rate			2.25%
Dividend yield			0.00%
Volatility			238.00%
Expected life			5 months 8 days
Change in the fair value of the derivative			$ 342
February 2018 Notes [Member]
Fair value of embedded derivative			$ 283,719
Risk free interest rate			1.91%
Dividend yield			0.00%
Volatility			420.00%
Expected life			1 year
Debt discount			$ 175,000
Interest expense			12,833
Non cash interest expense			108,719
June 2018 Note One [Member]
Fair value of embedded derivative			$ 169,973
Risk free interest rate			2.56%
Dividend yield			0.00%
Volatility			2.26%
Expected life			5 months
Change in the fair value of the derivative			$ 5,036
June 2018 Note [Member]
Fair value of embedded derivative			$ 158,278
Risk free interest rate			2.33%
Dividend yield			0.00%
Volatility			319.00%
Expected life			11 months
Debt discount			$ 89,250
Interest expense			6,659
Non cash interest expense			69,028
July 2018 Note One [Member]
Fair value of embedded derivative			$ 193,495
Risk free interest rate			2.56%
Dividend yield			0.00%
Volatility			213.00%
Expected life			6 months
Change in the fair value of the derivative			$ 31,881
July 2018 Note [Member]
Fair value of embedded derivative			$ 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			8,800
Non cash interest expense			52,814
September 2018 Note One [Member]
Fair value of embedded derivative			$ 264,757
Risk free interest rate			2.60%
Dividend yield			0.00%
Volatility			217.00%
Expected life			8 months 15 days
Change in the fair value of the derivative			$ 64,052
September 2018 Note [Member]
Fair value of embedded derivative			$ 194,417
Risk free interest rate			2.56%
Dividend yield			0.00%
Volatility			290.00%
Expected life			1 year
Debt discount			$ 131,250
Interest expense			6,288
Non cash interest expense			63,167
October 2018 Note One [Member]
Fair value of embedded derivative			$ 279,861
Risk free interest rate			2.60%
Dividend yield			0.00%
Volatility			232.00%
Expected life			9 months
Change in the fair value of the derivative			$ 78,573
October 2018 Note [Member]
Fair value of embedded derivative			$ 195,992
Risk free interest rate			2.64%
Dividend yield			0.00%
Volatility			274.00%
Expected life			1 year
Debt discount			$ 125,000
Interest expense			5,296
Non cash interest expense			70,992
November 2018 Note One [Member]
Fair value of embedded derivative			$ 164,259
Risk free interest rate			2.60%
Dividend yield			0.00%
Volatility			229.00%
Expected life			10 months
Change in the fair value of the derivative			$ 48,931
November 2018 Note [Member]
Fair value of embedded derivative			$ 113,398
Risk free interest rate			2.74%
Dividend yield			0.00%
Volatility			268.00%
Expected life			1 year
Debt discount			$ 78,750
Interest expense			1,930
Non cash interest expense			34,648
December 2018 Note One [Member]
Fair value of embedded derivative			$ 207,843
Risk free interest rate			2.63%
Dividend yield			0.00%
Volatility			219.00%
Expected life			11 months
Change in the fair value of the derivative			$ 64,321
December 2018 Note [Member]
Fair value of embedded derivative			$ 142,108
Risk free interest rate			2.68%
Dividend yield			0.00%
Volatility			259.00%
Expected life			1 year
Debt discount			$ 100,000
Interest expense			1,414
Non cash interest expense			$ 42,109

Stock Options and Warrants (De

Stock Options and Warrants (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Weighted average exercise price of shares granted		$ 0.04
Option [Member]
Outstanding, beginning balance	26,892,558	18,842,558
Stock options granted		10,150,000
Stock options expired/forfeited	(2,000,000)	(2,100,000)
Outstanding, ending balance	24,892,558	26,892,558
Exercisable, ending balance	24,892,558
Weighted average exercise price of shares outstanding, beginning balance	$ 0.17	$ 0.25
Weighted average exercise price of shares granted		0.04
Weighted average exercise price of shares expired/forfeited	0.16	0.14
Weighted average exercise price of shares outstanding, ending balance	0.17	$ 0.17
Weighted average exercise price of shares exercisable, ending balance	$ 0.17
Weighted average remaining contractual term (in years) of shares outstanding, beginning balance	6 years 5 months 1 day	5 years 22 days
Weighted average remaining contractual term (in years) of shares outstanding, ending balance	5 years 6 months	6 years 5 months 1 day
Weighted average remaining contractual term (in years) of shares exercisable, ending balance	5 years 6 months
Aggregate intrinsic value of shares outstanding, Beginning Balance
Aggregate intrinsic value of shares outstanding, Ending Balance
Aggregate intrinsic value of shares exercisable

Stock Options and Warrants (Det

Stock Options and Warrants (Details 1) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Weighted average exercise price of granted		$ 0.04
Warrant [Member]
Outstanding, beginning balance	27,460,358	5,585,358
Common shares granted		26,250,000
Common shares expired/forfeited	(1,210,358)	(4,375,000)
Outstanding, ending balance	26,250,000	27,460,358
Weighted average remaining contractual term (in years) of shares outstanding, begining balance	9 years 3 months 15 days	1 year 4 days
Weighted average remaining contractual term (in years) of shares outstanding, ending balance	8 years 8 months 12 days	9 years 3 months 15 days
Weighted average exercise price of shares outstanding, beginning balance	$ 0.03	$ 0.34
Weighted average exercise price of granted		0.01
Weighted average exercise price of shares expired/forfeited	0.48
Weighted average exercise price of shares outstanding, ending balance	$ 0.01	$ 0.03

Stock Options and Warrants (D_2

Stock Options and Warrants (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Weighted average exercise price of shares granted		$ 0.04
Common stock shares issued	149,819,895	140,608,645
Stock based compensation		$ 332,966
Risk-free interest rate		2.34%
Expected life in years		10 years
Dividend yield		0.00%
Expected volatility		244.00%
2000 Plan [Member]
Common stock shares issued	11,093,886
2009 Plan [Member]
Common stock shares issued	15,000,000
2015 Plan [Member]
Common stock reserved for future issuance	10,000,000
Options [Member]
Risk-free interest rate		2.24%
Expected life in years		10 years
Dividend yield		0.00%
Expected volatility		185.00%
Exercise Price		$ 0.04

Deferred Revenue (Details Narra

Deferred Revenue (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
License revenue	$ 50,000	$ 1,344
Deferred revenue	448,656	498,656
Royalty revenue	$ 0	$ 0
Zhejiang Province [Member]
License and supply agreement description	the Company is required to purchase 50,000 square meters of Product from Menred for delivery as an annual minimum with a 10,000 square meter minimum order quantity per delivery. The License and Supply Agreement has a ten-year term with mutually agreed upon five-year extensions.

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative)	1 Months Ended	12 Months Ended
	Feb. 27, 2015USD ($)Integer$ / shares	Dec. 31, 2018USD ($)shares	Dec. 31, 2017USD ($)	Sep. 30, 2015shares	Jul. 08, 2015USD ($)	Apr. 24, 2014USD ($)
Treasury Stock		$ 1,462,112	$ 1,462,112
Termination of Soex distribution agreement, description		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 us 25% of the equity of SOEX (Beijing) Environmental Protection Technology Company Limited
Soex [Member]
Material breach of agreement terms, description		(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”).
Litigation
Cancellation of share issued | shares				37,500,000
Royalty received						$ 500,000
Payment received						$ 50,000
Zan [Member]
Litigation
Cancellation of share issued | shares				37,500,000
Failure to make payment, amount					$ 225,000
Tangredi [Member] | Employment Agreement [Member]
Base salary		$ 200,000
Date of agreement		Sep. 14, 2011
Percentage of upper limit increment in base salary per year		50.00%
Annual bonus description		Eligible for an annual bonus, if any, of up to 100% of his then-effective base salary.
Term of agreement		3 Years
Option granted to purchase | shares		520,000
Employment termination description		Shall be entitled an amount equal to the sum of (A) the greater of 150% of the base salary then in effect or $320,000 plus (B) the cash bonus and/or merit bonus, if any, awarded for the most recent year.
Amount as cash bonus		$ 320,000
Conditional base salary addition to accrued sums owed		210,000
Upper limit of compensation	$ 500,000
Unpaid compensation if upper limit reaches	$ 100,000
Conversion rate	75.00%
Number of trading days | Integer	30
Percentage of cash payment on compensation income incurred	20.00%
Class A Convertible Preferred Stock | $ / shares	$ 1.50
Voting equity interests	40.00%
Board of Directors [Member] | Employment Agreement [Member]
Unpaid compensation if upper limit reaches		$ 100,000	$ 100,000

Income Taxes (Details)

Income Taxes (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Income Taxes Details 1Abstract
Deferred revenue	$ 114,000	$ 126,000
Depreciation	6,000	6,000
Accrued compensation	477,000	432,000
Research and development credit	333,000	308,000
Accrued warranty and interest expense	86,000	46,000
Net operating loss carryforward	7,551,000	7,049,000
Valuation allowance	(8,567,000)	(7,967,000)
Deferred tax assets and liabilities

Income Taxes (Details 1)

Income Taxes (Details 1)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Disclosure Income Taxes Details Abstract
Federal statutory income tax rate	(21.00%)	(35.00%)
State income taxes, net of federal benefit	(4.30%)	(4.00%)
Permanent differences	6.30%	10.40%
Change in valuation allowance	19.00%	28.60%
Provision for income taxes	0.00%	0.00%

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Taxes Details Narrative Abstract
Net operating loss carry-forward	$ 29,800,000
Net operating loss carry-forward expire year	beginning in 2019 through 2037.
Research and development tax credits	$ 333,000	$ 308,000
Research and development tax credits expire year	from 2030 through 2037.
Change in valuation allowance	$ 600,000	$ 671,000
Deferred tax benefits valuation allowance	100.00%
Current federal income tax rate, Description	The Act, among other items, reduces the current federal income tax rate to 21% from 35%. The rate reduction is effective January 1, 2018 and is permanent.
Net deferred tax assets	$ 4,126,000

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - USD ($)

1 Months Ended

3 Months Ended

9 Months Ended

12 Months Ended

Mar. 20, 2019

Mar. 18, 2019

Feb. 20, 2019

Jan. 28, 2019

Oct. 31, 2017

May 17, 2017

May 17, 2017

Apr. 21, 2017

Sep. 30, 2018

Sep. 30, 2018

Dec. 31, 2018

Dec. 31, 2017

Mar. 14, 2019

Feb. 21, 2019

Description of conversion price

The note and related accrued interest are convertible, at the option of the holder, into shares of the Company’s common stock at a conversion price of 60% of the lowest trading price for 15 days prior to conversion.

Maturity Date

Oct. 31, 2018

Apr. 21, 2020

Amortized original issue discount

$ 24,675

$ 10,000

$ 15,374

$ 21,345

$ 38,803

$ 11,021

Common stock, shares authorized

240,000,000

240,000,000

Preferred stock, par value

$ 0.01

$ 0.01

Preferred stock, shares issued

0

0

Common stock, par value

$ 0.01

$ 0.01

Convertible Notes [Member]

Description of conversion price

The notes and related accrued interest are convertible, at the option of the holders, into shares of the Company’s common stock at a conversion price of 60% of the lowest trading price for 15 days prior to conversion.

Maturity Date

May 17, 2018

Subsequent Event [Member]

Maturity date of note description

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 8, 2019.

Capital stock, shares authorized

350,000,000

Common stock, shares authorized

1,100,000,000

340,000,000

Preferred stock, par value

$ 0.01

Preferred stock, shares issued

10,000,000

Common stock, par value

$ 0.01

Common stock conversion shares issued, shares

8,853,398

Common stock conversion shares issued, amount

$ 100,000

Subsequent Event [Member] | June 6, 2018, August 13, 2018 and October 31, 2018 convertible notes [Member]

Description of extended maturity date

The Company signed a letter to extend the maturity date to August 15, 2019 of convertible notes dated June 6, 2018, August 13, 2018 and October 31, 2018.

Description of monthly payment against extended maturity date of convertible notes

In exchange the company would pay a minimum of $1,000 per month against the total sum owed and 1 Million shares of common stock each month until the notes are paid in full.

Subsequent Event [Member] | Two convertible notes [Member]

Description of extended maturity date

The Company signed a letter to extend the maturity date to August 15, 2019 of two convertible notes.

Description of monthly payment against extended maturity date of convertible notes

In exchange the company would pay a minimum of $1,000 per month against the total sum owed and 1 Million shares of common stock each month until the notes are paid in full.

Subsequent Event [Member] | Convertible Notes [Member]

Debt instrument, face amount

$ 155,000

Description of conversion price

the Company’s common stock at a conversion price of 60% of the lowest trading price for 15 days prior to conversion.

Interest rate

8.00%

Maturity Date

Feb. 20, 2020

Amortized original issue discount

$ 12,500

Proceeds from Issuance of Common Stock

$ 142,500