Dais (DLYT) 10-Q 21 Nov 22 2022 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2022	Nov. 21, 2022
Cover [Abstract]
Entity Registrant Name	DAIS CORPORATION
Entity Central Index Key	0001125699
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Sep. 30, 2022
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2022
Entity Common Stock Shares Outstanding		10,619,331
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	000-53554
Entity Incorporation State Country Code	NY
Entity Tax Identification Number	14-1760865
Entity Address Address Line 1	11552 Prosperous Drive
Entity Address City Or Town	Odessa
Entity Address State Or Province	FL
Entity Address Postal Zip Code	33556
City Area Code	727
Local Phone Number	375-8484
Entity Interactive Data Current	Yes

CONDENSED BALANCE SHEETS

CONDENSED BALANCE SHEETS - USD ($)	Sep. 30, 2022	Dec. 31, 2021
CURRENT ASSETS:
Cash	$ 151,557	$ 773,423
Accounts receivable, net	76,250	51,917
Inventory	194,045	72,067
Prepaid expenses	126,563	32,637
Total Current Assets	548,415	930,044
Property and equipment, net	34,797	13,353
OTHER ASSETS:
Deposits	4,780	4,780
Patents, net	154,777	152,924
Total Other Assets	159,557	157,704
TOTAL ASSETS	742,769	1,101,101
CURRENT LIABILITIES:
Accounts payable, including related party payables of $275,490 and $282,729 at September 30, 2022 and December 31, 2021, respectively	1,003,450	922,305
Accrued expenses, other, including interest due to related party of $2,611,291 and $2,153,723 at September 30, 2022 and December 31, 2021, respectively	3,540,601	2,945,918
Accrued compensation and related benefits	2,230,974	2,208,692
Customer deposits	336,416	35,306
Advance payment received for convertible note	15,000	15,000
Advance payment received for purchase of common stock	30,000	30,000
Notes payable to related parties	2,537,697	2,174,897
Current portion of deferred revenue	261,156	298,656
Note payable - due within one year	376,000	376,000
Convertible notes payable, net of unamortized discount and debt costs of $377,813 and $1,437,838, respectively	1,612,037	194,162
Total Current Liabilities	11,943,331	9,200,936
Notes payable - due after one year	150,000	272,340
Total Liabilities	12,093,331	9,473,276
STOCKHOLDERS' DEFICIT
Preferred stock, undesignated; $0.01 par value; 7,990,000 shares authorized; no shares issued and outstanding	0	0
Common stock; $0.01 par value; 1,100,000,000 shares authorized; 10,619,331 and 9,415,425 shares issued and 10,618,702 and 9,414,796 shares outstanding at September 30, 2022 and December 31, 2021, respectively	106,193	94,154
Common stock to be issued, 1,000,000 and no shares, respectively	10,000	0
Capital in excess of par value	51,189,596	50,818,885
Accumulated deficit	(61,194,239)	(57,823,102)
Total Stockholders Deficit Before Treasury Stock	(9,888,450)	(6,910,063)
Treasury stock at cost, 629 shares at September 30, 2022 and December 31, 2021, respectively	(1,462,112)	(1,462,112)
Total Stockholders' Deficit	(11,350,562)	(8,372,175)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	742,769	1,101,101
Series A Preferred Stock [Member]
STOCKHOLDERS' DEFICIT
Preferred stock, value	0	0
Series B Preferred Stock [Member]
STOCKHOLDERS' DEFICIT
Preferred stock, value	$ 0	$ 0

CONDENSED BALANCE SHEETS (Paren

CONDENSED BALANCE SHEETS (Parenthetical) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Common stock, shares par value	$ 0.01	$ 0.01
Common stock, shares authorized	1,100,000,000	1,100,000,000
Common stock, shares issued	10,619,331	9,415,425
Common stock, shares outstanding	10,618,702	9,414,796
Treasury stock shares	629	629
Related party payables included in accounts payable	$ 275,490	$ 282,729
Note payable - due within one year, net of unamortized discount and debt costs	377,813	1,437,838
Interest payable, related party included in accrued expenses	$ 2,611,291	$ 2,153,723
Common stock, shares To Be issued	1,000,000	1,000,000
Series B Preferred Stock [Member]
Preferred stock, shares par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000	10,000
Preferred stock, shares issued	10	10
Preferred stock, shares outstanding	10	10
Preferred Stock Undesignated [Member]
Preferred stock, shares 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
Preferred Stock Series A [Member]
Preferred stock, shares 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

CONDENSED STATEMENTS OF OPERATI

CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
REVENUE
Sales	$ 492,394	$ 116,864	$ 653,288	$ 288,854
Royalty and license fees	12,500	12,500	37,500	37,500
Total Revenue	504,894	129,364	690,788	326,354
COST OF GOODS SOLD	381,214	90,749	610,859	173,639
GROSS MARGIN	123,680	38,615	79,929	152,715
OPERATING EXPENSES
Research and development, net of government grant proceeds of $0, $28,651, $0 and $89,617, respectively	85,887	29,814	212,508	69,660
Selling, general and administrative	430,455	305,833	1,259,080	1,590,907
TOTAL OPERATING EXPENSES	516,342	335,647	1,471,588	1,660,567
LOSS FROM OPERATIONS	(392,662)	(297,032)	(1,391,659)	(1,507,852)
OTHER INCOME (EXPENSE)
Interest expense	(800,072)	(110,938)	(2,103,604)	(471,746)
Forgiveness of debt income	124,126	146,685	124,126	146,685
Change in fair value of derivative liabilities	0	0	0	2,241,678
Gain on extinguishment of debt	0	0	0	1,148,554
TOTAL OTHER INCOME (EXPENSE), NET	(675,946)	38,459	(1,979,478)	3,067,883
NET INCOME (LOSS)	$ (1,068,608)	$ (261,285)	$ (3,371,137)	$ 1,557,319
NET INCOME (LOSS) PER COMMON SHARE, BASIC	$ (0.10)	$ 0.03	$ (0.33)	$ 0.35
NET LOSS PER COMMON SHARE, DILUTED	$ (0.10)	$ (0.03)	$ (0.33)	$ (0.19)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING, BASIC	11,170,719	9,414,796	10,107,546	4,494,649
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING, DILUTED	11,170,719	9,414,796	10,107,546	8,360,950

CONDENSED STATEMENT OF STOCKHOL

CONDENSED STATEMENT OF STOCKHOLDERS DEFICIT (Unaudited) - USD ($)	Total	Preferred Stock	Common Stock	Comman Stock To Be Issued [Member]	Capital in Excess of Par Value	Retained Earnings (Accumulated Deficit)	Treasury Stock
Balance, shares at Dec. 31, 2020		10	278,757
Balance, amount at Dec. 31, 2020	$ (12,456,727)	$ 0	$ 2,788		$ 45,976,660	$ (56,974,063)	$ (1,462,112)
Net income for the three months ended March 31, 2021	1,743,060	$ 0	$ 0		0	1,743,060	0
Balance, shares at Mar. 31, 2021		10	278,757
Balance, amount at Mar. 31, 2021	(10,713,667)	$ 0	$ 2,788		45,976,660	(55,231,003)	(1,462,112)
Balance, shares at Dec. 31, 2020		10	278,757
Balance, amount at Dec. 31, 2020	(12,456,727)	$ 0	$ 2,788		45,976,660	(56,974,063)	(1,462,112)
Net income for the three months ended March 31, 2021	1,557,319
Balance, shares at Sep. 30, 2021		10	9,415,425
Balance, amount at Sep. 30, 2021	(7,260,817)	$ 0	$ 94,154		49,523,885	(55,416,744)	(1,462,112)
Balance, shares at Mar. 31, 2021		10	278,757
Balance, amount at Mar. 31, 2021	(10,713,667)	$ 0	$ 2,788		45,976,660	(55,231,003)	(1,462,112)
Shares and warrants issued for services, shares			2,100,000
Shares and warrants issued for services, amount	751,457	0	$ 21,000		730,457	0	0
Shares and warrants issued for settlement of debt, shares			7,036,668
Shares and warrants issued for settlement of debt, amount	2,687,134	0	$ 70,366		2,616,768	0	0
Net income for the three months ended June 30, 2021	75,544	$ 0	$ 0		0	75,544	0
Balance, shares at Jun. 30, 2021		10	9,415,425
Balance, amount at Jun. 30, 2021	(7,199,532)	$ 0	$ 94,154		49,323,885	(55,155,459)	(1,462,112)
Net income for the three months ended March 31, 2021	(261,285)	0	0		0	(261,285)	0
Warrants issued with debt	110,000	0	0		110,000	0	0
Beneficial conversion feature of debt	90,000	$ 0	$ 0		90,000	0	0
Balance, shares at Sep. 30, 2021		10	9,415,425
Balance, amount at Sep. 30, 2021	(7,260,817)	$ 0	$ 94,154		49,523,885	(55,416,744)	(1,462,112)
Balance, shares at Dec. 31, 2021		10	9,415,425
Balance, amount at Dec. 31, 2021	(8,372,175)	$ 0	$ 94,154	$ 0	50,818,885	(57,823,102)	(1,462,112)
Net loss for the three months ended March 31, 2022	(1,082,530)	$ 0	$ 0		0	(1,082,530)	0
Balance, shares at Mar. 31, 2022		10	9,415,425
Balance, amount at Mar. 31, 2022	(9,454,705)	$ 0	$ 94,154		50,818,885	(58,905,632)	(1,462,112)
Balance, shares at Dec. 31, 2021		10	9,415,425
Balance, amount at Dec. 31, 2021	(8,372,175)	$ 0	$ 94,154	0	50,818,885	(57,823,102)	(1,462,112)
Net income for the three months ended March 31, 2021	(3,371,137)
Balance, shares at Sep. 30, 2022		10	10,619,331
Balance, amount at Sep. 30, 2022	(11,350,562)	$ 0	$ 106,193	10,000	51,189,596	(61,194,239)	(1,462,112)
Balance, shares at Mar. 31, 2022		10	9,415,425
Balance, amount at Mar. 31, 2022	(9,454,705)	$ 0	$ 94,154		50,818,885	(58,905,632)	(1,462,112)
Net income for the three months ended March 31, 2021	(1,219,999)	0	$ 0		0	(1,219,999)	0
Beneficial conversion feature of debt	200,000				200,000
Shares issued for conversion of debt and finance cost, shares			457,500
Shares issued for conversion of debt and finance cost, amount	45,750	0	$ 4,575		41,175	0	0
Cashless exercise of warrants, shares			396,637
Cashless exercise of warrants, amount	0	$ 0	$ 3,966		(3,966)	0	0
Shares Cancelled - to be reissued, shares			(1,000,000)
Shares Cancelled - to be reissued, amount			$ (10,000)	10,000
Balance, shares at Jun. 30, 2022		10	9,269,562
Balance, amount at Jun. 30, 2022	(10,428,954)	$ 0	$ 92,695	10,000	51,056,094	(60,125,631)	(1,462,112)
Net income for the three months ended March 31, 2021	(1,068,608)	0	0	0	0	(1,068,608)	0
Beneficial conversion feature of debt	100,000	0	$ 0	0	100,000	0	0
Cashless exercise of warrants, shares			879,769
Cashless exercise of warrants, amount	0	0	$ 8,798	0	(8,798)	0	0
Shares issued for conversion of debt, shares			470,000
Shares issued for conversion of debt, amount	47,000	$ 0	$ 4,700	0	42,300	0	0
Balance, shares at Sep. 30, 2022		10	10,619,331
Balance, amount at Sep. 30, 2022	$ (11,350,562)	$ 0	$ 106,193	$ 10,000	$ 51,189,596	$ (61,194,239)	$ (1,462,112)

CONDENSED STATEMENTS OF CASH FL

CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ (3,371,137)	$ 1,557,319
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	21,451	15,767
Stock based compensation	0	751,457
Change in fair value of derivative liability	0	(2,241,678)
Forgiveness of debt	(122,340)	(146,685)
Gain on extinguishment of debt	0	(1,148,554)
Non-cash interest expenses	750	124,290
Amortization of debt discount and debt costs	1,360,025	32,557
(Increase) decrease in:
Accounts receivable	(24,333)	(62,266)
Inventory	(121,978)	(27,261)
Other receivables	0	6,169
Prepaid expenses/Other assets	(93,926)	(39,021)
Increase (decrease) in:
Accounts payable	81,145	87,060
Accrued expenses	616,965	388,764
Customer deposits	301,110	13,331
Deferred revenue	(37,500)	(37,500)
Net cash used in operating activities	(1,389,768)	(726,251)
CASH FLOWS FROM INVESTING ACTIVITIES:
Increase in property and equipment	(28,035)	(11,541)
Increase in patent costs	(16,713)	(13,577)
Net cash used in investing activities	(44,748)	(25,118)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from notes payable - related parties	362,800	49,297
Proceeds from note payable	449,850	825,340
Repayment of note payable	0	(26,200)
Net cash provided by financing activities	812,650	848,437
Net decrease in cash	(621,866)	97,068
Cash, beginning of period	773,423	36,516
Cash, end of period	151,557	133,584
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	154,398	0
NON-CASH FINANCING AND FINANCING ACTIVITIES
Issuance of common stock and warrants upon settlement of notes and accrued interest	0	2,687,134
Issuance of common stock upon conversion of notes	92,750	0
Notes and accrued interest settled with common stock and warrants	0	2,107,414
Beneficial conversion feature of convertible debt	240,002	90,000
Derivative liability extinguished	0	1,728,274
Relative fair value of warrant, recorded as debt discount	59,998	110,000
Common stock to be issued for finance cost, accrued and recorded as debt discount	0	120,990
Original issue discount, deducted from proceeds and recorded as debt discount	0	20,000
Debt costs deducted from proceeds	$ 0	$ 3,000

Background Information

Background Information	9 Months Ended
	Sep. 30, 2022
Background Information
Background Information	Note 1. Background Information Dais Corporation (“Dais”, “us,” “we,”, the “Company”), a New York corporation, is a nano-structured polymer technology materials company having developed and now commercializing products using its family of nanomaterial called Aqualyte. Aqualyte itself is the first product being commercialized. The second commercial product is called ConsERV, a fixed plate energy recovery ventilator which we believe is useful in meeting building indoor fresh air requirements while saving energy and lowering emissions for most forms of heating, ventilation, and air conditioning (HVAC) equipment. The Company was incorporated in April 1993 and its corporate headquarters is in Odessa, Florida. The Company is dependent on third parties to manufacture the key components needed for its nanostructured 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. Basis of Presentation The Company’s accompanying condensed financial statements are unaudited, but in the opinion of management reflect all adjustments necessary to fairly state the Company’s financial position, results of operations, stockholders’ deficit and cash flows as of and for the dates and periods presented. The financial statements of the Company are prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information. The unaudited financial statements and notes are presented as permitted by Form 10-Q. Accordingly, certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted although the Company generally believes that the disclosures are adequate to ensure that the information presented is not misleading. The accompanying financial statements and notes should be read in conjunction with the audited financial statements and notes of the Company for the fiscal year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on April 15, 2022. The results of operations for the three- and nine-month periods ended September 30, 2022 are not necessarily indicative of the results that may be expected for any future quarters or for the entire year ending December 31, 2022.

Going Concern and Managements P

Going Concern and Managements Plans	9 Months Ended
	Sep. 30, 2022
Going Concern and Managements Plans
Going Concern and Management's Plans	Note 2. Going Concern and Management’s Plans The accompanying financial statements have been prepared assuming the Company will continue as a going concern. The Company has incurred significant losses since inception, incurred a loss of $3,371,137 for the nine months ended September 30, 2022, and, as of September 30, 2022, the Company has an accumulated deficit of $61,194,239, total stockholders’ deficit of $11,350,562, negative working capital of $11,394,916 and cash of $151,557. The Company used $1,389,768 and $726,251 of cash in operations during the nine months ended September 30, 2022, and 2021, respectively, which was funded primarily by proceeds from loans from related parties and others. 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 guided by its Financial Advisor is actively working with targeted third parties who have or are interested in licensing, purchasing the rights to, or establishing a joint venture to commercialize applications of the Company’s technology; and, 2. The Company continues to seek capital from key 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 actively working with newer investors, private equity companies, purchase order financing parties, and its existing debt holders to restructure its existing debt and obtain short and long-term working and growth capital. 3. Management believes: 1. In the face of world-wide supply chain, financial market gyrations, geopolitical events, and continuing pandemic related issues the market(s) demand for its product(s) is entering a more sluggish period but not due to interest the company’s products. 2. The effect on the company’s ability to raise new funds or on its current and projected cash position resulting from slower growth in sales and revenues due to a regional or world-wide economic downturn is placing heavy pressures on management to widen the approaches to targeted places to seek growth resources. Management with Board approval is seeking to monetize one use (license, outright sale, etc.) of a particular asset. Monetizing the entire technology would be done to extract the maximum value of the technology for the benefit of the company’s stakeholder at a higher short-term cost. Whereas monetizing a technology segment would be pursued to raise sufficient cash to continue in smaller, more concentrated manner. 3. We believe our current cash position and our projected ability to obtain additional sources of cash flow from operations and investments for the balance of 2022 supporting the company’s operations needed to manufacture and create sales of ConsERV and Aqualyte product is more challenged as it relates to the public markets. However, with investors (PE groups, Family funds, individuals, etc.) savvy in the areas the Company is working are increasing resource commitments in such opportunities. There is no assurance, in these times of uncharted cause/effect with companies, markets, and people, that management or the Board will be successful in securing needed funds to fund business continuation or secure growth capital funding. 4. The Senior Secured Note Holder has advised Management it is exploring its options in this matter. We believe the Company’s prospects to secure growth funding are good. The company has shown solid progress over the last three quarters, removed a serious impediment to growth by completing a ‘debt to equity’ program because where the convertible noteholders debt positions were converted into equity (common stock and warrants), introduced a popular new line of our ConsERV equipment having improved performance and pricing to a growing independent sales channel through-out North America, reached agreement (now moving to contract stage) in late 4Q 2022 between the company and its Senior Secured Note Holder (having deep rights with the assets of the Company which are pledged as security for repayment of the Note), and for creating the basis of a long term business relationship with a well-known, multi-national corporation interested in using the Company’s products for its own and third-party use. There are no assurances we will be able to obtain the financing and planned product development commercialization. Accordingly, we 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 we be unable to continue as a going concern.

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Sep. 30, 2022
Significant Accounting Policies
Significant Accounting Policies	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. Revenue recognition - In certain instances, the Company’s ConsERV system product may carry a limited warranty of up to one year for all parts contained therein except for the energy recovery ventilator core produced and sold by the Company. The distributor of the ConsERV system may carry a limited warranty of up to ten years. The limited warranty includes replacement of defective parts for the ConsERV system and includes workmanship and material failure for the ConsERV core. The Company recorded an accrual of $91,531 for future warranty expenses at September 30, 2022, and December 31, 2021, which is included in accrued expenses, other. Royalty revenue is recognized as earned. The Company recognized royalty revenue of $0 for the three and nine months ended September 30, 2022 and 2021, respectively. Revenue derived from the sale of licenses is deferred and recognized as license fee revenue on a straight-line basis over the life of the license, or until the license arrangement is terminated. The Company recognized license fee revenue of $12,500 and $12,500 for the three months ended September 30, 2022 and 2021, respectively and $37,500 and $37,500 for the nine months ended September 30, 2022 and 2021, respectively. The Company accounts for revenue arrangements with multiple elements under the provisions of ASC Topic 605-25, “Revenue Recognition-Multiple-Element Arrangements.” 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. Cash and cash equivalents - Concentrations - Fair Value of Financial Instruments - Inventory - Property and equipment - Intangible assets Research and development expenses and funding proceeds - Derivative Liability Fair Value Measurements The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: · Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. · Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g. interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. · Level 3 - Inputs that are both significant to the fair value measurement and unobservable. The reconciliation of the derivative liability measured at fair value on a recurring basis using unobservable inputs (Level 3) is as follows for the nine months ended September 30, 2021: September 30, 2021 Balance, beginning of period $ 3,845,662 Additions 124,290 Extinguished derivative liability (1,728,274 ) Change in fair value of derivative liabilities (2,241,678 ) Balance, end of period $ - Earnings (loss) per share Reconciliation of diluted loss per share for the nine-month period ended September 30, 2021, is as follows: Nine Months Ended September 30, 2021 Net income attributable to common shareholders $ 1,557,319 Income attributable to note derivatives Change in fair value of derivatives (2,241,678 ) Gain on extinguishment of debt (1,148,554 ) Expense attributable to note derivatives Interest expense 216,378 Diluted loss attributable to common shareholders $ (1,616,535 ) Basic shares outstanding 4,494,649 Derivative notes and interest shares 3,866,301 Diluted shares outstanding 8,360,950 Diluted loss per share $ (0.19 ) The Company had no derivative liabilities so measured for the three and nine months ended September 30, 2022 and accordingly no diluted loss per share over those periods. Recent Accounting Pronouncements -

Accrued Expenses Other

Accrued Expenses Other	9 Months Ended
	Sep. 30, 2022
Accrued Expenses Other
Accrued Expenses, Other	Note 4. Accrued Expenses, Other Accrued expenses, other consists of the following: September 30, December 31, 2022 2021 Accrued expenses, other $ 664,845 $ 656,810 Accrued interest 2,784,225 2,197,577 Accrued warranty costs 91,531 91,531 $ 3,540,601 $ 2,945,918

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2022
Related Party Transactions
Related Party Transactions	Note 5. 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 related to this lease of $12,198 and $12,198 for the three months ended September 30, 2022 and 2021, respectively and $36,594 and $36,594 for the nine months ended September 30, 2022 and 2021, respectively. The lease term will terminate upon 30 days’ written notice from landlord or 90 days written termination from us. The lease is considered to be short term or month to month. The Company has accrued compensation due to the Chief Executive Officer as of September 30, 2022 and December 31, 2021 of $2,098,636 and $2,071,380, 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 the entity known as PKT -- Strategic Assets, LLC (the “Holder”) pursuant to which the Company issued a Senior Secured Promissory Note for $150,000 (the “Note”). The Note has an 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 all the assets of the Company. During 2016 to the period ended September 30, 2022, the Holder extended the Note pursuant to various amendments. Pursuant to the amendments, the principal amount and interest totaled $5,137,188 (including fees and other expenses) at September 30, 2022. We received advances aggregating $362,800 during 2022. The Holder’s corporation is controlled by Ms. Tangredi, related to Tim Tangredi: the Company’s CEO and stockholder, and therefore, is a Related Party of the Company. The Company is to pay the Holder the principal, plus all interest and fees due 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 November 1, 2021, which as of the date of filing, has expired. (ii) The Holder has not declared the Note in Default as the Parties have reached terms to address several issues including the extension of the Maturity Date (the “Maturity Date”). A binding agreement is being prepared for the parties to execute by the end of the fourth quarter of 2022. (iii) The Company has recorded interest expense of $242,055 and $67,099 for the three-month periods ended September 30, 2022, and 2021, respectively and $611,516 and $197,452 for the nine-month periods ended September 30, 2022, and 2021, respectively. (iv) The Company made a payment of fees and accrued interest totaling $154,398 during the nine months ended September 30, 2022. Accrued interest was $2,609,491 and $2,152,373 on September 30, 2022, and December 31, 2021 On October 12, 2019, the Company entered a promissory note with an entity controlled by our Chief Executive Officer in the amount of $10,000. The note bears interest at 10% per year and matured on October 12, 2021. Interest expense on the note was $150 for each of the three-month periods ended September 30, 2022 and 2021, respectively, and was $450 for each of the nine month periods ended September 30, 2022 and 2021, respectively. Accrued interest was $1,800 and $1,350 at September 30, 2022 and December 31, 2021, respectively. The Holder has not declared the Note in Default or extended the Maturity Date. On April 29, 2022, the Company received a loan of $100,000 from its Chief Executive Officer. This was repaid in full on May 17, 2022. On February 27, 2015, the Company, and Tim N. Tangredi, the Company’s Chief Executive Officer entered 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 because of the conversion. The Company has waived the conversion requirement from 2015 to the present. Further, at any time any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934) becomes the “beneficial owner” (as defined in Rules 13(d)-3 and 13(d)-5 under such Act) of greater of 40% of the then-outstanding voting power of the voting equity interests of the Company or a person or group initiate a tender offer for the Company’s common stock, Mr. Tangredi may convert unpaid compensation into Class A Convertible Preferred Stock (“Class A Preferred Stock”) of the Company at a conversion price of $1.50 per share. The Board of Directors waived the requirement to convert $100,000 of unpaid compensation into common stock during 2016. No amounts have been converted under the terms of the Tangredi Employment Agreement Amendment to date. The above terms and amounts are not necessarily indicative of the terms and amounts that would have been incurred had comparable transactions been entered into with independent parties.

Equity Transactions

Equity Transactions	9 Months Ended
	Sep. 30, 2022
Equity Transactions
Equity Transactions	Note 6. Equity Transactions Preferred Stock At September 30, 2022 and December 31, 2021, the Company’s Board of Directors had 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 had 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 had been designated as Class B Preferred Stock. The Class B Stock includes the right to vote in an amount equal to 51% of the votes to approve certain corporate actions, including, without limitation, changing the name of the Company and increasing the number of authorized shares. During January and February 2022, after the Company’s fiscal year ended December 31, 2021, the Company’s Board of Directors, with input from the Company’s financial advisors, completed its reevaluation of the Company’s capital structure, including the advisability of authorizing addition series of preferred stock, par value $0.01 (“Preferred Stock”). The Board of Directors determined that it was in the best interests of the Company and its stockholders to authorize four new series of Preferred Stock (sometimes referred to as “New Series of Preferred Stock”). As a result, the Board of Directors and management with the assistance of its outside financial advisors prepared a Certificate of Amendment to its Certificate of Incorporation for the purpose authorizing the four New Series of Preferred Stock, which was subject to the filing by the Company of a Certificate of Amendment with the Department of State of the State of New York (“Certificate of Amendment”). To implement the authorization of the four New Series of Preferred Stock, the Certificate of Amendment was submitted to the Department of State on March 17, 2022, and was accepted for filing on March 22, 2022. The recently authorized New Series of Preferred Stock included: (i) Series C Convertible Preferred Stock, consisting of 100,000 shares, all of which were to be issued following acceptance of the Certificate of Amendment by the Department of State, to two (2) third-party accredited investors who had provided bona fide financial consulting services to the Company; (ii) Series D Convertible Preferred Stock, consisting of 10,000 shares, which shares may be issued, at the sole discretion of the Board of Directors, from time to time, to consultants and other third parties for, among other purposes, new services to the Company and for other good and valuable consideration, none of which shares have been issued; (iii) Series E Convertible Preferred Stock, consisting of 250,000 shares, all of which were to be issued following final acceptance of the Certificate of Amendment by the Department of State, being issued to three (3) “accredited investors” including the Company’s financial advisors in consideration for their capital contributions to the Company; and (iv) Series F Convertible Preferred Stock consisting of 1,500,000 shares which are intended to be issued to several long-tenured key employees and the Company’s Board of Directors in consideration for previously rendered services to the Company as well as to certain noteholders and others under agreements and arrangements that have been authorized by the Board of Directors. Equity issuances within these various classes will take place during the fourth quarter of 2022. Common Stock As of September 30, 2022 and December 31, 2021, the Company has 1,100,000,000 authorized 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. 2022 Common Stock Transactions During May 2022, the Company issued 457,500 shares of common stock upon the conversion of $45,000 of notes payable, plus $750 of costs. During July 2022, the Company issued 470,000 shares of common stock upon the conversion of $47,000 of notes payable. The company issued 1,276,406 shares of common stock upon the cashless exercise of 1,510,000 common stock warrants. The Company cancelled 1,000,000 shares of common stock, which are to be reissued in the future. In connection with a note issued in September 2022, the Company issued a warrant to purchase 1,000,000 shares of common stock to the lender. The warrant has an exercise price of $0.30 per share and expires on September 7, 2027. 2021 Common Stock Transactions During the nine months ended September 30, 2021, the Company issued 7,036,668 shares of common stock and 3,576,733 common stock purchase warrants in settlement of convertible notes payable and related accrued interest. The shares were valued at $1,829,534 and the warrants were valued at $857,600. Of these warrants, 3,266,733 have expired at September 30, 2022, and 310,000 were exercised on a cashless basis into 203,103 shares of common stock in 2022. During the nine months ended September 30, 2021, the Company issued 2,100,000 shares of common stock, valued at $567,000, for services.

Convertible Notes Payable and E

Convertible Notes Payable and Exchange Program	9 Months Ended
	Sep. 30, 2022
Convertible Notes Payable and Exchange Program
Convertible Notes Payable and Exchange Program	Note 7. Convertible Notes Payable and Exchange Program Debt to Equity Exchange Program In the period from June 2017 through the end of December 2019, the Company entered eight Convertible Note Holder agreements with eight Note Holders totaling, with all fees, interest, and principal, $2,008,812 as of December 31, 2020. The notes were not considered to be in default and were being renegotiated at March 31, 2021. Subsequently, as of May 31, 2021, each Convertible Noteholder received their fees, interest, and principal totaling $2,107,414 in shares of Common stock of the Company (at $0.030 per share) with 50% warrant coverage (1 year cash warrant with a strike price of 0.30). All documents were executed by June 30, 2021, with all equity/warrants issued by July 31, 2021. The Company issued 7,036,668 Common shares, and 3,576,733 Warrant shares in this transaction. Please note all Warrant Shares expired as of May 15, 2022 per the terms and conditions of the Warrant document. 2022 Convertible Notes On September 7, 2022, the Company entered a convertible promissory note in the amount of $100,000. The note matures on September 7, 2023 and bears interest at 8% per year. In connection with this note, the Company has issued a warrant to purchase 1,000,000 shares of common stock to the lender. The warrant has an exercise price of $0.30 per share and expires on September 7, 2027. The relative fair value of the warrant was $59,998, determined using the Black Scholes Model with the following assumptions: (1) risk free interest rate of 3.37%; (2) dividend yield of 0%; (3) volatility factor of the expected market price of the Company’s common stock of 360%; and (4) an expected life of 5 years. The note is convertible into shares of common stock at a fixed conversion price of $0.10 per share. The company has recorded a beneficial conversion feature of $40,002. Amortization of discount was $6,575 for the three and nine months ended September 30, 2022. On August 20, 2022, the Company entered a convertible promissory note in the amount of $49,850. The note matures on the earlier of February 20, 2023 or 10 days after demand and bears interest at 8% per year. The note is convertible into shares of common stock at a fixed conversion price of $0.30 per share. On June 15, 2022, the Company entered two convertible promissory notes aggregating $300,000. The notes mature on the earlier of December 15, 2022 or 10 days after demand and bear interest at 8% per year. The Company received proceeds of $300,000. The notes are convertible into shares of common stock at a fixed conversion price of $0.30 per share. The Company has recorded debt discount of $200,000, related to the beneficial conversion feature of the notes. The discount will be amortized to interest expense over the six-month term of the notes, and $100,546 and $118,032 was amortized during the three and nine months ended September 30, 2022, respectively. 2021 Convertible Notes On September 20, 2021, the Company entered a convertible promissory note with GS Capital Partners, LLC. The note matured on September 20, 2022 and bears interest at 8% per year. The Company received proceeds of $197,000, after deduction of $20,000 of original issue discount and $3,000 of costs. In connection with this note, the Company has issued a warrant to purchase 1,466,666 shares of common stock to the lender. The warrant has an exercise price of $0.15 per share and expires on September 21, 2026. The relative fair value of the warrant was $110,000, determined using the Black Scholes Model with the following assumptions: (1) risk free interest rate of 0.84%; (2) dividend yield of 0%; (3) volatility factor of the expected market price of the Company’s common stock of 389%; and (4) an expected life of 5 years. The note is convertible into shares of common stock at a fixed conversion price of $0.10 per share. The company has recorded a beneficial conversion feature of $90,000. Amortization of discount and costs was $49,488 and $6,721 for the three months ended September 30, 2022 and 2021, respectively, and $160,072 and $6,721 for the nine months ended September 30, 2022 and 2021, respectively. The note matured on September 20, 2022. The lender has not declared a default as both parties are actively discussing a mutually beneficial path forward. It is expected an agreement will be reached in the fourth quarter of 2022. During the fourth quarter of 2021, the Company entered twenty convertible promissory notes with various holders aggregating $1,412,000. The notes mature one year from issuance and bear interest at 8% per year. The Company received proceeds of $1,287,000, after deduction of $117,000 of original issue discount and $8,000 of costs. In connection with the notes, the Company has issued warrants to purchase 10,463,332 shares of common stock to the lenders. The warrants have an exercise price of $0.15 per share and expire five years from the date of issuance. The relative fair value of the warrants was $1,366,127, determined using the Black Scholes Model with the following assumptions: (1) risk free interest rate of 0.84% - 1.33%; (2) dividend yield of 0%; (3) volatility factor of the expected market price of the Company’s common stock of 386% - 389%; and (4) an expected life of 5 years. The notes are convertible into shares of common stock at a fixed conversion price of $0.10 per share. A total of $1,412,000 has been recorded as debt discount, and 8,000 has been recorded as deferred debt costs. The discount and costs will be amortized to interest expense over the term of the notes Amortization of discount and costs was $334,176 and $1,033,668 for the three and nine months ended September 30, 2022, respectively. During May 2022, the Company issued 457,500 shares of common stock upon the conversion of $45,000 of notes payable, plus $750 of costs. Unamortized discount and debt costs related to the principal converted were $21,206 and $514, respectively, which were charged against interest expense upon conversion. During July 2022, the Company issued 470,000 shares of common stock upon the conversion of $47,000 of notes payable. Unamortized discount related to the principal converted was $19,958, which was charged against interest expense upon conversion. The Company’s convertible promissory notes at September 30, 2022 and December 31, 2021 are as follows: September 30, 2022 December 31, 2021 Convertible notes payable, bearing interest at 8-10% $ 2,036,850 $ 1,453,960 Unamortized debt discount (385,108 ) (1,428,726 ) Unamortized deferred debt issuance cost (817 ) (9,112 ) Total 1,650,925 194,162 Current portion $ 1,650,925 $ 194,162

Notes Payable

Notes Payable	9 Months Ended
	Sep. 30, 2022
Notes Payable
Notes Payable	Note 8. Notes Payable Paycheck Protection Program Loans On January 25, 2021, the Company received $122,340 in a loan borrowed from a bank pursuant to the Paycheck Protection Program under the CARES Act guaranteed by the Small Business Administration (“SBA”), which we expect to be forgiven in part or in full, subject to our compliance with the conditions of the Paycheck Protection Program. If not forgiven, the terms on the note provide for interest at 1% per year and the note mature in 24 months, with 18 monthly payments of $8,146 beginning after the initial 6-month deferral period for payments. The loan and related accrued interest of $1,786 was forgiven on July 12, 2022.

Derivative Liabilities

Derivative Liabilities	9 Months Ended
	Sep. 30, 2022
Derivative Liabilities
Derivative Liabilities	Note 9. Derivative Liabilities The Company had identified certain embedded derivatives related to its convertible notes. Since the notes were convertible into a variable number of shares or have a price reset feature, the conversion features of those notes were 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. The Company has recorded additions to the derivative conversion liabilities related to the conversion feature attributable to interest accrued during the period. These additions totaled $0 and $106,366 for the three months ended September 30, 2021 and 2020, respectively, and $124,290 and $368,312 for the nine months ended September 30, 2021 and 2020, respectively and were charged to interest expense. During the three and nine months ended September 30, 2021, through the date of settlement of the debt, the Company recorded income of $0 and $2,241,678 related to the change in the fair value of the derivatives. The fair value of the embedded derivatives was $1,728,274 at the date of settlement, determined using the Black Scholes Model with the following assumptions: (1) risk free interest rate of 0.01%; (2) dividend yield of 0%; (3) volatility factor of the expected market price of the Company’s common stock of 315%; and (4) an expected life of 3 months. During the three and nine months ended September 30, 2020, the Company recorded expense of $208,916 and income of $376,282, respectively, related to the change in the fair value of the derivatives. During the second quarter of 2021 the Company issued 7,036,668 shares of common stock, valued at $1,829,534 and 2,826,733 warrants, valued at $857,600, in settlement of $1,453,960 of notes payable and $653,454 of accrued interest. Derivative liability of $1,728,274 was extinguished because of the settlement. The Company recorded a gain on extinguishment of $1,148,554.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies
Commitments and Contingencies	Note 10. Commitments and Contingencies 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 2015, the Company commenced an action for the cancellation of shares issued to Soex (the “Shares”) in connection with a breached Securities Purchase Agreement and Distribution Agreement entered 2014. The Soex Litigation was tried in U.S. District Court for the Middle District of Florida in October of 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 lawsuit 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-going and growing illegal misuse the Company’s Intellectual Property. The Company feels this third action will lead in a judgment in favor of the Company. On October 8, 2021 the Company was notified of a unusual order by the Federal District Court judge who oversaw the initial 2018 proceedings. This activity was initiated at the request of Soex’s counsel. The Order awards the defendant (Soex) $300,568 in attorney’s fees and $82,096 in costs for a total award of $382,664 to be paid by Dais. The Order doesn’t specify the date by which the award needs to be paid. The sum is recorded in accrued liabilities. The Company will vigorously defend itself against this Order, as well as move on all possible avenues open to it to stop, what Management believes, is an on-going misuse of the Company’s core Intellectual Property. The Company believes - based on the content of the Order and other admissions and actions on the part of others - it has a chance to prevail in an appeal to the benefit of the Company and its shareholders. Accounts Payable The firms below have pursued legal action against the Company to collect overdue accounts payable sums. The Company is working with each to enter into a settlement plan, or “pay overtime” payment plan. To date the Company has an agreement in place with SoftinWay. Company Sum Owned Payment Plan Legal Action Old Dominion Freight Line $ 13,576.95 No Yes Power Plant Services $ 85,199.11 No Yes SoftinWay $ 3,850.00 Yes Yes The O-Ring Store $ 10,334.00 No Yes Total $ 113,960.06

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2022
Subsequent Events
Subsequent Events	Note 11. Subsequent Events 1. On October 5, 2022, the sums of $30,000 and $62,800 (total $92,800) borrowed from the PKT Strategic Technologies, LLC, on July 28, 2022, Senior Note Holder under the same terms and conditions as the existing sums of money which have been loaned to the Company since June 16, 2016, was repaid. Interest on this sum for this period remains to be repaid. This interest payment is an item covered by the pending updated Senior Secured Note Holder agreement referred to Related Party, Note 3. 2. On October 24, 2022, the Company received $48,000 pursuant to the terms and conditions of the Senior Secured Promissory Noteholder held by PKT Strategic Assets, LLC. The note is secured by all the company’s assets including but not limited to the Company’s cash, receivables, inventory, WIP, patents, etc. 3. On October 31, 2022, the Company received $72,000 (another additive amount to the initial loan made since June 2016) pursuant to the terms and conditions of the Senior Secured Promissory Noteholder held by PKT Strategic Assets, LLC. The note is secured by all the company’s assets including but not limited to the Company’s cash, receivables, inventory, WIP, patents, etc. 4. On November 4, 2022, the Company borrowed $25,000 from JEB Partners, L.P., a Delaware limited partnership. Interest on the one-year note is 10% and JEB Partners will receive a warrant for 100,000 common shares, five-year term, strike price of $.15, and a price per of $.10 per share if Company defaults on repayment. Full document being prepared for signing by the parties prior to December 15, 2022. 5. On August 31, 2022, the Company received $270,000 (another additive amount to the initial loan made June 2016) pursuant to the terms and conditions of the Senior Secured Promissory Noteholder held by PKT Strategic Assets, LLC. The note is secured by all the company’s assets including but not limited to the Company’s cash, receivables, inventory, WIP, patents, etc. No other material events have occurred after September 30, 2022, requiring recognition or disclosure in the financials.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2022
Significant Accounting Policies
Use of estimates	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.
Revenue recognition	Revenue recognition - In certain instances, the Company’s ConsERV system product may carry a limited warranty of up to one year for all parts contained therein except for the energy recovery ventilator core produced and sold by the Company. The distributor of the ConsERV system may carry a limited warranty of up to ten years. The limited warranty includes replacement of defective parts for the ConsERV system and includes workmanship and material failure for the ConsERV core. The Company recorded an accrual of $91,531 for future warranty expenses at September 30, 2022, and December 31, 2021, which is included in accrued expenses, other. Royalty revenue is recognized as earned. The Company recognized royalty revenue of $0 for the three and nine months ended September 30, 2022 and 2021, respectively. Revenue derived from the sale of licenses is deferred and recognized as license fee revenue on a straight-line basis over the life of the license, or until the license arrangement is terminated. The Company recognized license fee revenue of $12,500 and $12,500 for the three months ended September 30, 2022 and 2021, respectively and $37,500 and $37,500 for the nine months ended September 30, 2022 and 2021, respectively. The Company accounts for revenue arrangements with multiple elements under the provisions of ASC Topic 605-25, “Revenue Recognition-Multiple-Element Arrangements.” 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.
Cash and cash equivalents	Cash and cash equivalents -
Concentrations	Concentrations -
Fair Value of Financial Instruments	Fair Value of Financial Instruments -
Inventory	Inventory -
Property and equipment	Property and equipment -
Intangible assets	Intangible assets
Research and development expenses and funding proceeds	Research and development expenses and funding proceeds -
Derivative liability	Derivative Liability
Fair Value Measurements	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. The reconciliation of the derivative liability measured at fair value on a recurring basis using unobservable inputs (Level 3) is as follows for the nine months ended September 30, 2021: September 30, 2021 Balance, beginning of period $ 3,845,662 Additions 124,290 Extinguished derivative liability (1,728,274 ) Change in fair value of derivative liabilities (2,241,678 ) Balance, end of period $ -
Earnings (loss) per share	Earnings (loss) per share Reconciliation of diluted loss per share for the nine-month period ended September 30, 2021, is as follows: Nine Months Ended September 30, 2021 Net income attributable to common shareholders $ 1,557,319 Income attributable to note derivatives Change in fair value of derivatives (2,241,678 ) Gain on extinguishment of debt (1,148,554 ) Expense attributable to note derivatives Interest expense 216,378 Diluted loss attributable to common shareholders $ (1,616,535 ) Basic shares outstanding 4,494,649 Derivative notes and interest shares 3,866,301 Diluted shares outstanding 8,360,950 Diluted loss per share $ (0.19 ) The Company had no derivative liabilities so measured for the three and nine months ended September 30, 2022 and accordingly no diluted loss per share over those periods.
Recent Accounting Pronouncements	Recent Accounting Pronouncements -

Significant Accounting Polici_3

Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2022
Significant Accounting Policies
Schedule of reconciliation of the derivative liability	September 30, 2021 Balance, beginning of period $ 3,845,662 Additions 124,290 Extinguished derivative liability (1,728,274 ) Change in fair value of derivative liabilities (2,241,678 ) Balance, end of period $ -
Schedule of Reconciliation of diluted loss per share	Nine Months Ended September 30, 2021 Net income attributable to common shareholders $ 1,557,319 Income attributable to note derivatives Change in fair value of derivatives (2,241,678 ) Gain on extinguishment of debt (1,148,554 ) Expense attributable to note derivatives Interest expense 216,378 Diluted loss attributable to common shareholders $ (1,616,535 ) Basic shares outstanding 4,494,649 Derivative notes and interest shares 3,866,301 Diluted shares outstanding 8,360,950 Diluted loss per share $ (0.19 )

Accrued Expenses Other (Tables)

Accrued Expenses Other (Tables)	9 Months Ended
	Sep. 30, 2022
Accrued Expenses Other
Schedule of accrued expenses, other	September 30, December 31, 2022 2021 Accrued expenses, other $ 664,845 $ 656,810 Accrued interest 2,784,225 2,197,577 Accrued warranty costs 91,531 91,531 $ 3,540,601 $ 2,945,918

Convertible Notes Payable and_2

Convertible Notes Payable and Exchange Program (Tables)	9 Months Ended
	Sep. 30, 2022
Convertible Notes Payable and Exchange Program
Schedule of convertible notes payable	September 30, 2022 December 31, 2021 Convertible notes payable, bearing interest at 8-10% $ 2,036,850 $ 1,453,960 Unamortized debt discount (385,108 ) (1,428,726 ) Unamortized deferred debt issuance cost (817 ) (9,112 ) Total 1,650,925 194,162 Current portion $ 1,650,925 $ 194,162

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies
Schedule of pursued legal action	Company Sum Owned Payment Plan Legal Action Old Dominion Freight Line $ 13,576.95 No Yes Power Plant Services $ 85,199.11 No Yes SoftinWay $ 3,850.00 Yes Yes The O-Ring Store $ 10,334.00 No Yes Total $ 113,960.06

Going Concern and Managements_2

Going Concern and Managements Plans (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Equity Transactions
Net income (loss)	$ (3,371,137)
Accumulated deficit	(61,194,239)		$ (57,823,102)
Total stockholders' deficit	(11,350,562)
Working capital deficit	(11,394,916)
Net cash used in operating activities	1,389,768	$ 726,251
Cash and cash equivalents	$ 151,557

Significant Accounting Polici_4

Significant Accounting Policies (Details)	9 Months Ended
	Sep. 30, 2021 USD ($)
Significant Accounting Policies
Balance, beginning of period	$ 3,845,662
Additions	124,290
Extinguished derivatives liability	(1,728,274)
Change in fair value of derivative liabilities	(2,241,678)
Balance, Endinng of period	$ 0

Significant Accounting Polici_5

Significant Accounting Policies (Details 1)	9 Months Ended
	Sep. 30, 2021 USD ($) $ / shares shares
Significant Accounting Policies
Net income attributable to common shareholders	$ 1,557,319
Income attributable to note derivatives
Change in fair value of derivatives	(2,241,678)
Gain on extinguishment of debt	(1,148,554)
Expense attributable to note derivatives
Interest expense	216,378
Diluted loss attributable to common shareholders	$ (1,616,535)
Basic shares outstanding | shares	4,494,649
Derivative notes and interest shares | shares	3,866,301
Diluted shares outstanding | shares	8,360,950
Diluted loss per share | $ / shares	$ (0.19)

Significant Accounting Polici_6

Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Anti-dilutive common shares	29,996,165	7,193,399	32,576,731
Royalty revenues	$ 0	$ 0	$ 0	$ 0
License fees revenue	12,500	12,500	37,500	37,500
Uninsured balances	0		0		$ 483,000
Inventory raw materials	182,377		182,377		59,631
warranty expenses			91,531		91,531
Inventory in process	11,668		11,668		1,844
Future amortization expenses 2022	19,400		19,400
Future amortization expenses 2023	19,400		19,400
Future amortization expenses 2024	19,400		19,400
Future amortization expenses 2025	19,400		19,400
Future amortization expenses 2026	19,400		19,400
Inventory finished goods	0		0		$ 10,592
Depreciation expense	2,424	367	6,591	1,722
Research and development expenses	85,887	58,465	$ 212,508	159,277
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
License and Supply Agreement [Member] | Zhejiang MENRED Environmental Tech Co, Ltd [Member]
Agreement, description			the Company is required to purchase 50,000 square meters of Product from Menred for delivery as an annual minimum with a 10,000 square meter minimum order quantity per delivery. The Agreement has a ten-year term with mutually agreed upon five-year extensions
Research and development expenses	0	$ 28,651	$ 0	89,617
Account receivables [Member]
Concentration of risk, percentage			92%		100%
Number of customers			one		two
Revenue [Member]
Concentration of risk, percentage		75%	60%
Number of customers		three	one
Intangible Assets [Member]
Amortization expense	$ 5,078	$ 4,795	$ 14,860	$ 14,045
Estimated useful lives of patents			17 years

Accrued Expenses Other (Details

Accrued Expenses Other (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Accrued Expenses Other
Accrued expenses, other	$ 664,845	$ 656,810
Accrued interest	2,784,225	2,197,577
Accrued warranty costs	91,531	91,531
Total accrued expenses	$ 3,540,601	$ 2,945,918

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)		1 Months Ended			3 Months Ended		9 Months Ended
	Oct. 12, 2019	Apr. 29, 2022	Jun. 24, 2016	Feb. 27, 2015	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Rent expense					$ 12,198	$ 12,198	$ 36,594	$ 36,594
Lease term description							The lease term will terminate upon 30 days’ written notice from landlord or 90 days written termination from us. The lease is considered to be short term or month to month
Interest expense					242,055	67,099	$ 611,516	197,452
Accrued interest					2,609,491		2,609,491		$ 2,152,373
Payment of fees							154,398
Interest expense					800,072	110,938	2,103,604	471,746
Building [Member]
Monthly rent expense							4,066
Mr. Tangredi [Member]
Conversion price				$ 1.50
Unpaid compensation				$ 500,000
Unpaid compensation convert into common stock amount				$ 100,000
Conversion rate				75%
Percentage of cash payment compensation income				20%
Converted unpaid compensation into common stock				$ 100,000
Mr. Tangredi [Member] | Class A Convertible Preferred Stock [Member]
Beneficial owner description				greater of 40% of the then-outstanding voting power of the voting
Patricia Tangredi [Member] | Loan And Security Agreement [Member]
Debt instrument maturity date			Nov. 01, 2021
Advances received							362,800
Interest rate			12%
Senior secured promissory note			$ 150,000
Principal amount and interest totaled			5,137,188
Senior secured debt, minimum interest payment			2,000
Exceeding amount			$ 1,000,000
Chief Executive Officer [Member]
Accrued interest					1,800		1,800		1,350
Debt instrument maturity date	Oct. 12, 2021
Interest expense					150	$ 150	450	$ 450
Interest bearing per year	10%
Accrued compensation					$ 2,098,636		$ 2,098,636		$ 2,071,380
Promissory note	$ 10,000
Received loan		$ 100,000

Equity Transactions (Details Na

Equity Transactions (Details Narrative)	1 Months Ended			9 Months Ended
	Sep. 30, 2022 integer $ / shares shares	Jul. 31, 2022 USD ($) shares	May 31, 2022 USD ($) shares	Sep. 30, 2022 USD ($) integer $ / shares shares	Sep. 30, 2021 USD ($) shares	Dec. 31, 2021 $ / shares shares
Common stock shares authorized	1,100,000,000			1,100,000,000		1,100,000,000
Common stock par value | $ / shares	$ 0.01			$ 0.01		$ 0.01
Shares and warrants issued for settlement of debt					7,036,668
Common stock purchase warrants					3,576,733
Common stock shares issued, amount | $					$ 1,829,534
Common stock purchase warrants, amount | $					$ 857,600
Common stock shares issued for services, shares					2,100,000
Warrants expired	3,266,733			3,266,733
Warrants exercised				310,000
Common stock shares exercised				203,103
Common stock shares issued for services, amount | $					$ 567,000
Warrant issunce description	In connection with a note issued in September 2022, the Company issued a warrant to purchase 1,000,000 shares of common stock to the lender. The warrant has an exercise price of $0.30 per share and expires on September 7, 2027
2022 [Member]
Issued shares of common stock upon conversion of notes payable		470,000	457,500
Conversion of notes payable | $		$ 47,000	$ 45,000
Issued shares of common stock upon conversion of notes payable, Cost | $			$ 750
Issued shares of common stock upon the cashless exercise of common stock warrants				1,276,406
Cashless exercise of common stock warrants | $				$ 1,510,000
Number of cancelled shares of common stock				1,000,000
Board of Directors [Member]
Preferred stock, shares authorized	10,000,000			10,000,000		10,000,000
Preferred stock, par value | $ / shares	$ 0.01			$ 0.01		$ 0.01
Series B Preferred Stock [Member]
Preferred stock, shares authorized	10,000			10,000		10,000
Preferred stock, shares par value | $ / shares	$ 0.01			$ 0.01		$ 0.01
Voting right description				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
Series A Preferred Stock [Member]
Voting right description				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
Preferred stock, shares authorized	2,000,000			2,000,000
Preferred stock, number of votes | integer	150			150
Preferred stock Series C [Member]
Preferred stock, shares authorized	100,000			100,000
Preferred stock Series D [Member]
Preferred stock, shares authorized	10,000			10,000
Preferred stock Series E [Member]
Preferred stock, shares authorized	250,000			250,000
Preferred stock Series F [Member]
Preferred stock, shares authorized	1,500,000			1,500,000

Convertible Notes Payable and_3

Convertible Notes Payable and Exchange Program (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Convertible Notes Payable and Exchange Program (Details)
Convertible notes payable, bearing interest at 8- 10%	$ 2,036,850	$ 1,453,960
Unamortized debt discount	(385,108)	(1,428,726)
Unamortized deferred debt issuance cost	(817)	(9,112)
Total convertible promissory note	1,650,925	194,162
Current portion	$ 1,650,925	$ 194,162

Convertible Notes Payable and_4

Convertible Notes Payable and Exchange Program (Details Narrative) - USD ($)		1 Months Ended				3 Months Ended			9 Months Ended
	Sep. 07, 2022	Aug. 20, 2022	Jun. 15, 2022	May 31, 2022	Sep. 30, 2021	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Jul. 31, 2022	May 31, 2021	Dec. 31, 2020
Common stock shares issued, shares				457,500							470,000
Common stock shares issued, amount				$ 45,000							$ 47,000
Common stock conversion note payable costs				750
Unamortized discount				21,206							$ 19,958
Debt costs				$ 514
Aggregated convertible promissory note						$ 2,036,850	$ 1,453,960		$ 2,036,850
Proceeds from convertible note									0	$ 2,107,414
Debt discount						385,108	1,428,726		385,108
Amortization of discount									1,360,025	32,557
Debt original issue discount									$ 0	$ 20,000
Dividend yield									0%
Volatility rate									315%
2021 Convertible Notes [Member]
Warrants expiry date					Sep. 20, 2022
Bear interest rate					8%
Proceeds from convertible note					$ 197,000
Conversion price					$ 0.10			$ 0.10		$ 0.10
Warrants issued					1,466,666			1,466,666		1,466,666
Debt original issue discount					$ 20,000
Fair value of warrants					$ 110,000			$ 110,000		$ 110,000
Amortization of discount and costs						49,488		$ 6,721	$ 160,072	$ 6,721
Expected life					5 years
Dividend yield					0%
Warrants, per share price					$ 0.15			$ 0.15		$ 0.15
Debt costs					$ 3,000
Beneficial conversion feature					$ 90,000
Risk free interest rate					0.84%
Volatility rate					389%
Warrant expiry date					September 21, 2026
Convertible Note [Member]
Debt costs							8,000
Aggregated convertible promissory note							$ 1,412,000
Bear interest rate							8%
Proceeds from convertible note							$ 1,287,000
Debt discount							$ 8,000
Warrants issued							10,463,332
Debt original issue discount							$ 117,000
Fair value of warrants							$ 1,366,127
Amortization of discount and costs						$ 334,176			$ 1,033,668
Expected life							5 years
Dividend yield							0%
Warrants, per share price							$ 0.15
Risk free interest rate, minimum							0.84%
Risk free interest rate, maximum							1.33%
Volatility rate, Minimum							386%
Volatility rate, Maximum							389%
Convertible notes, Amount							$ 1,412,000
Debt to Equity Exchange Program
Principal amount												$ 2,107,414	$ 2,008,812
Description of convertible note agreements									the Company (at $0.030 per share) with 50% warrant coverage (1 year cash warrant with a strike price of 0.30). All documents were executed by June 30, 2021, with all equity/warrants issued by July 31, 2021
Issued common shares						7,036,668			7,036,668
Issued warrants shares						3,576,733			3,576,733
Warrants expiry date									May 15, 2022
2022 Convertible Notes
Warrants expiry date	Sep. 07, 2023	Feb. 20, 2023	Dec. 15, 2022
Aggregated convertible promissory note	$ 100,000	$ 49,850	$ 300,000
Bear interest rate	8%	8%	8%
Proceeds from convertible note			$ 300,000
Conversion price	$ 0.10	$ 0.30	$ 0.30
Debt discount	$ 40,002		$ 200,000
Amortized to interest expense						$ 100,546			$ 118,032
Amortization of discount						$ 6,575			$ 6,575
Warrants issued	1,000,000
Exercise price	$ 0.30
Fair value of the warrant	$ 59,998
Expiry date	Sep. 07, 2027
Description of Black Scholes Model	(1) risk free interest rate of 3.37%; (2) dividend yield of 0%; (3) volatility factor of the expected market price of the Company’s common stock of 360%; and (4) an expected life of 5 years

Notes Payable (Details Narrativ

Notes Payable (Details Narrative) - Paycheck Protection Program [Member] - USD ($)		1 Months Ended
	Jul. 12, 2022	Jan. 25, 2022	May 21, 2022
Loan amount			$ 122,340
Interest rate		1%
Monthly payment		$ 8,146
Loan and accrued interest forgiven	$ 1,786

Derivative Liabilities (Details

Derivative Liabilities (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Derivative Liabilities
Change in fair value of derivative liabilities	$ 0			$ 2,241,678
Shares and warrants issued for settlement of debt				7,036,668
Shares and warrants issued for settlement of debt, value				$ 1,829,534
Warrants issued				2,826,733
Warrants issued, value				$ 857,600
Settlement of debt				1,453,960
Accrued interest			$ 653,454
Derivative liability			1,728,274
Gain on extinguishment			1,148,554
Derivative income					$ 376,282
Derivative expense		$ 208,916
Non-cash interest expenses	$ 0	$ 106,366		124,290	$ 368,312
Derivative liability extinguished			$ 0	$ 1,728,274
Risk free interest rate			0.01%
Volatility rate			315%
Expected life			3 years
Dividend yield			0%

Commitments and Contingencies_2

Commitments and Contingencies (Details)	9 Months Ended
	Sep. 30, 2022 USD ($)
Total	$ 113,960
Old Dominion Freight Line [Member]
Sum Owned	$ 13,576
Payment Plan	No
Legal Action	Yes
Power Plant Services [Member]
Sum Owned	$ 85,199
Payment Plan	No
Legal Action	Yes
SoftinWay[Member]
Sum Owned	$ 3,850
Payment Plan	Yes
Legal Action	Yes
The O-Ring Store [Member]
Sum Owned	$ 10,334
Payment Plan	No
Legal Action	Yes

Commitments and Contingencies_3

Commitments and Contingencies (Details Narrative) - October 8, 2021 [Member] - Soex [Member]	9 Months Ended
	Sep. 30, 2022 USD ($)
Attorneys fees	$ 300,568
Cost related to defendant	82,096
Total award to defendant	$ 382,664

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - USD ($)		1 Months Ended					9 Months Ended
	Oct. 05, 2022	Nov. 04, 2022	Oct. 31, 2022	Oct. 24, 2022	Sep. 30, 2022	Aug. 31, 2022	Sep. 30, 2022	Sep. 30, 2021
Proceeds from note payable						$ 270,000	$ 449,850	$ 825,340
Warrant issunce description					In connection with a note issued in September 2022, the Company issued a warrant to purchase 1,000,000 shares of common stock to the lender. The warrant has an exercise price of $0.30 per share and expires on September 7, 2027
Subsequent Event
Proceeds from note payable	$ 62,800
PKT Strategic Technologies | Subsequent Event
Proceeds from note payable	30,000
Loan borrowed	$ 92,800
PKT Strategic Assets [Member] | Subsequent Event
Proceeds from note payable			$ 72,000	$ 48,000
JEB Partners [Member] | Subsequent Event
Loan borrowed		$ 25,000
Warrant issunce description		Interest on the one-year note is 10% and JEB Partners will receive a warrant for 100,000 common shares, five-year term, strike price of $.15, and a price per of $.10 per share if Company defaults on repayment