EnerTeck (ETCK) 10-K 17 Apr 18 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2017	Apr. 16, 2018	Jun. 30, 2017
Document And Entity Information
Entity Registrant Name	ENERTECK CORPORATION
Entity Central Index Key	1,128,353
Document Type	10-K
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 2,751,000
Entity Common Stock, Shares Outstanding		36,380,690
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,017

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 19,373	$ 6,372
Inventory	124,708	128,746
Accounts receivable - trade, net	19,137	14,890
Employee advances		860
Representative advances	1,471
Prepaid expenses	18,838	11,801
Total current assets	183,527	162,669
Intellectual Property	150,000	150,000
Website costs, net of accumulated amortization of $17,099 and $10,551, respectively	15,639	22,187
Property and equipment, net of accumulated depreciation of $365,741 and $364,293, respectively	2,959	1,998
Total assets	352,125	336,854
Current liabilities
Accounts payable	130,631	175,405
Stockholder advances and notes	1,380,000	2,159,000
Customer deposits	87,500
Accrued compensation	3,879,284	3,573,985
Accrued interest	1,138,049	1,034,861
Accrued liabilities - other	107,755	95,729
Total current liabilities	6,723,219	7,038,980
Stockholder advances, net of current maturities	1,044,250
Accrued interest, net of current interest	107,846
Deferred lease liability	7,535	11,148
Total liabilities	7,882,850	7,050,128
Commitments and contingencies (Note 7)
Stockholders' deficit
Preferred stock, $.001 par value, 100,000,000 shares authorized, none issued
Common stock, $.001 par value, 100,000,000 shares authorized 31,153,543 and 30,653,543 shares issued and outstanding, respectively	31,154	30,654
Additional paid-in capital	28,100,037	27,981,469
Accumulated deficit	(35,661,916)	(34,725,397)
Total stockholders' deficit	(7,530,725)	(6,713,274)
Total liabilities and stockholders' deficit	$ 352,125	$ 336,854

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Current assets
Accumulated depreciation on website costs, net	$ 17,099	$ 10,551
Accumulated depreciation on property and equipment, net	$ 365,741	$ 364,293
Stockholders' equity (deficit)
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, Authorized	100,000,000	100,000,000
Preferred stock, Issued	0	0
Common stock, par value	$ 0.001	$ .001
Common stock, Authorized	100,000,000	100,000,000
Common stock, Issued	31,153,543	30,653,543
Common stock, outstanding	31,153,543	30,653,543

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Consolidated Statements Of Operations
Product Sales	$ 232,804	$ 200,566
Cost of goods sold	45,475	33,762
Gross profit	187,329	166,804
General and administrative expenses:
Wages	548,437	687,054
Stock based compensation	19,068	1,236,397
Depreciation and amortization	7,994	16,018
Other selling, general and administrative	286,374	395,067
Total operating expenses	861,873	2,334,536
Operating loss	(674,544)	(2,167,732)
Other income (expense):
Interest income	19	3
Other (expense) income	(45,554)	10,452
Interest expense	(216,440)	(209,147)
Net loss	$ (936,519)	$ (2,366,424)
Net loss per common share: Basic and diluted	$ (0.03)	$ (0.08)
Weighted average number of common shares outstanding: Basic and diluted	30,832,994	30,628,210

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT - USD ($)	Common Stock [Member]	Additional Paid-In Capital	Accumulated Deficit	Total
Beginning Balance, Shares at Dec. 31, 2015	30,581,867
Beginning Balance, Amount at Dec. 31, 2015	$ 30,582	$ 26,723,641	$ (32,358,973)	$ (5,604,750)
Sale of Stock, Shares	71,676
Sale of Stock, Amount	$ 72	21,431		21,503
Issuance of employee options		38,560		38,560
Extension of options/warrants		1,020,580		1,020,580
Vesting of options		7,852		7,852
Warrants to Board of Directors		169,405		169,405
Net loss			(2,366,424)	(2,366,424)
Ending Balance, Shares at Dec. 31, 2016	30,653,543
Ending Balance, Amount at Dec. 31, 2016	$ 30,654	27,981,469	(34,725,397)	(6,713,274)
Sale of Stock, Shares	500,000
Sale of Stock, Amount	$ 500	99,500		100,000
Vesting of options		19,068		19,068
Net loss			(936,519)	(936,519)
Ending Balance, Shares at Dec. 31, 2017	31,153,543
Ending Balance, Amount at Dec. 31, 2017	$ 31,154	$ 28,100,037	$ (35,661,916)	$ (7,530,725)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Consolidated Statements Of Cash Flows
Net loss	$ (936,519)	$ (2,366,424)
Adjustments to reconcile net loss to cash from operating activities:
Depreciation and amortization	7,994	16,018
Warrants and options issued, vested and extended	19,068	1,236,397
Other non-cash transactions		(3,113)
Changes in operating assets and liabilities:
Accounts receivable	(4,247)	25,286
Representative advances	(1,471)
Employee advances	860
Deferred rent	(3,613)
Inventory	4,038	30,919
Prepaid expenses	44,906	19,612
Accounts payable	(44,774)	(5,774)
Customer deposits	87,500	(24,831)
Accrued interest payable	211,034	209,147
Accrued liabilities	310,605	409,198
NET CASH USED IN OPERATING ACTIVITIES	(304,619)	(453,565)
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(2,407)	(541)
NET CASH USED IN INVESTING ACTIVITIES	(2,407)	(541)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from sales of common stock	100,000	11,453
Financed insurance premium payments	(45,223)
Related party stock purchase advances	265,250	439,000
NET CASH PROVIDED BY FINANCING ACTIVITIES	320,027	450,453
NET CHANGE IN CASH AND CASH EQUIVALENTS	13,001	(3,653)
Cash and cash equivalents, beginning of year	6,372	10,025
Cash and cash equivalents, end of year	19,373	6,372
Cash paid for:
Income tax
Interest	5,407
Noncash investing and financing activities:
Stock and warrants issued for capitalized website costs
Conversion of notes payable and accrued interest to stock
Financed portion of insurance notes	$ 51,943

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Business and Basis of Presentation EnerTeck Corporation, formerly Gold Bond Resources, Inc. was incorporated under the laws of the State of Washington on July 30, 1935. On January 9, 2003, the Company acquired EnerTeck Chemical Corp. ("EnerTeck Sub") as its wholly owned operating subsidiary. As a result of the acquisition, the Company is a holding company, with EnerTeck Sub as its only operating business. Subsequent to this transaction, on November 24, 2003, the Company changed its domicile from the State of Washington to the State of Delaware, changed its name from Gold Bond Resources, Inc. to EnerTeck Corporation. EnerTeck Sub, the Company's wholly owned operating subsidiary, is a Houston-based corporation. It was incorporated in the State of Texas on November 29, 2000 and was formed for the purpose of commercializing a diesel fuel specific combustion catalyst known as EnerBurn (TM), as well as other combustion enhancement and emission reduction technologies for diesel fuel. EnerTeck Sub’s primary product is EnerBurn and is registered for highway use in all USA diesel applications. The products are used primarily in on-road vehicles, locomotives and diesel marine engines throughout the United States and select foreign markets. During 2012, EnerTeck acquired a 40% membership interest in EnerTeck Environmental, LLC (“Environmental”). Environmental was formed for the purpose of marketing and selling diesel fuel emission reduction technology with the creators of such specific technology. Principles of Consolidation The consolidated financial statements include the accounts of EnerTeck Corporation and its wholly-owned subsidiary, EnerTeck Chemical Corp. All significant inter-company accounts and transactions are eliminated in consolidation. Cash and Cash Equivalents The Company considers all highly liquid instruments purchased with an original maturity of three (3) months or less to be cash and cash equivalents. Inventory Inventory primarily consists of market ready EnerBurn plus raw materials required to manufacture the products. Inventory has been valued at the lower of cost or market, using the average cost method. Finished product costs amounted to approximately $52,000 and $17,000 at December 31, 2017 and 2016, respectively, and includes required blending costs to bring our products to their finished state. Accounts Receivable Accounts receivable represent uncollateralized obligations due from customers of the Company and are recorded at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts to reflect any loss anticipated on the accounts receivable balances and charged to the provision for doubtful accounts. The Company calculates this allowance based on historical write-offs, level of past due accounts and relationships with and economic status of the customers. Accounts are written off as bad debts when all collection efforts have failed, and the account is deemed uncollectible. Management has provided allowances for doubtful accounts of $51,000 as of both December 31, 2017 and 2016. Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is provided for on the straight-line or accelerated method over the estimated useful lives of the assets. The average lives range from five (5) to seven (7) years. Maintenance and repairs that neither materially add to the value of the property nor appreciably prolong its life are charged to expense as incurred. Betterments or renewals are capitalized when incurred. Depreciation expense totaled $1,446 and $900 for the years ended December 31, 2017 and 2016, respectively. Intangible Assets The Company follows the provisions of FASB ASC 350, Goodwill and Other Intangible Assets Revenue Recognition The Company recognizes revenues when evidence of a completed transaction and customer acceptance exists, and when title passes, if applicable. Revenues from sales of product and equipment are recognized at the point when a customer order has been shipped and invoiced. Income Taxes Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax basis of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. Accrued interest and penalties associated with uncertain tax positions are recognized as part of the income tax provision. The Company has no uncertain tax provisions. Income (Loss) Per Common Share Basic income (loss) per common share is computed by dividing the net income (loss) applicable to common stockholders by the weighted average number of common shares outstanding. Diluted net income (loss) per common share is computed by dividing the net income (loss) applicable to common stockholders, adjusted on an "as if converted" basis, by the weighted average number of common shares outstanding plus potential dilutive securities. The calculation of diluted weighted-average shares outstanding for the years ended December 31, 2017 and December 31, 2016, respectively, excludes 1,200,879 and 4,986,334 shares and 1,200,879 and 5,153,001 issuable upon the exercise of outstanding stock options and warrants because their effect would be anti-dilutive. Further, the calculation of diluted weighted-average shares outstanding for the years ended December 31, 2017 and 2016 exclude potential shares related to the outstanding convertible notes payable, which if converted, would be anti-dilutive and would have a significant impact on the total number of shares outstanding, once exercised. Management Estimates and Assumptions The accompanying consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America which require 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 consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Fair value measurements The Company estimates fair value at a price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market for the asset or liability. The valuation techniques require inputs that are categorized using a three-level hierarchy, from highest to lowest level of observable inputs, as follows: (1) significant observable inputs, including unadjusted quoted prices for identical assets or liabilities in active markets (“Level 1”), (2) significant other observable inputs, including direct or indirect market data for similar assets or liabilities in active markets or identical assets or liabilities in less active markets (“Level 2”) and (3) significant unobservable inputs, including those that require considerable judgment for which there is little or no market data (“Level 3”). When multiple input levels are required for a valuation, the Company categorizes the entire fair value measurement according to the lowest level of input that is significant to the measurement even though other significant inputs that are more readily observable may have also utilized. The Company’s consolidated financial instruments recorded on the balance sheet include cash and cash equivalents, trade receivables and trade payables. The carrying amounts approximate fair value because of the short-term nature of these items. Stock Options and Warrants Compensation cost for equity awards is based on the fair value of the equity instrument on the date of grant and is recognized over the period during which an employee is required to provide service in exchange for the award. Compensation cost for liability awards is based on the fair value of the vested award at the end of each period. The Company also issues equity awards to nonemployees. The fair value of these option awards is estimated when the award recipient completes the contracted professional services. The Company recognizes expense for the estimated total value of the awards during the period from their issuance until performance completion, at which time the estimated expense is adjusted to the final value of the award as measured at performance completion. Forfeitures of any options are accounted for as they occur. The Company values warrant and option awards using the Black-Scholes option pricing model. Stock options and warrants expire on the dates designated in the instrument. The Board have agreed and can agree in the future to issue replacement options and warrants, on a case by case basis, if they so determine, that to be appropriate at the time however there is no set policy in place to do so. Taxes Collected The Company collects sales taxes assessed by governmental authorities imposed on certain sales to customers. Sales taxes collected are included in revenues; net amounts paid are reported as expenses in the consolidated statement of operations. Website Costs Total website costs of $32,738 are being amortized over their expected useful life of five years. Amortization for 2017 and for 2016 was $6,548 and $6,547 per year, respectively. Future amortization is expected to be as follows: $6,548 for 2018 and 2019, with final amortization of $2,543 in 2020. Going Concern In accordance with ASC Subtopic 205-40, Going Concern, management evaluates whether relevant conditions and events that, when considered in the aggregate, indicate that it is probable the Company will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued. When relevant conditions or events, considered in the aggregate, initially indicate that it is probable that the Company will be unable to meet its obligations as they become due within one year after the date that the consolidated financial statements are issued (and therefore they raise substantial doubt about the Company’s ability to continue as a going concern), management evaluates whether its plans that are intended to mitigate those conditions and events, when implemented, will alleviate substantial doubt about the Company’s ability to continue as a going concern. Management’s plans are considered only to the extent that 1) it is probable that the plans will be effectively implemented and 2) it is probable that the plans will mitigate the conditions or events that raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. During the years ended December 31, 2017 and 2016, the Company incurred recurring net losses of $937,000 and $2,366,000, respectively. Further, most of the Company’s notes payable are overdue and payment may be demanded at any time. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. The Company’s continuation as a going concern is contingent upon its ability to obtain additional financing and to generate revenues and cash flow to meet its obligations on a timely basis. The Company has been able to obtain cash in the past through private placements and issuing promissory notes and believes that these avenues will remain available to the Company. Management believes that these financings are probable of occurring and mitigating the substantial doubt raised by our historical operating results and satisfying the Company’s estimated liquidity needs 12 months from the issuance of the consolidated financial statements. No assurance can be made that these efforts will be successful. Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue From Contracts With Customers In July 2015, the FASB issued ASU 2015-11, “ Inventory: Simplifying the Measurement of Inventory” In February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842) On March 30, 2016, the FASB issued ASU 2016-09, “ Compensation - Stock Compensation Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying consolidated financial statements.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
NOTE 2 - PROPERTY AND EQUIPMENT	At December 31, 2017 and 2016 property and equipment consisted of the following: Useful Lives 2017 Amount 2016 Amount Furniture and fixtures 5-7 $ 66,966 $ 64,557 Equipment 5-7 301,734 301,734 Less: Accumulated depreciation (365,741 ) (364,293 ) Net property and equipment $ 2,959 $ 1,998

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
NOTE 3- INCOME TAXES	On December 22, 2017, the President signed the Tax Cuts and Jobs Act (“U.S. Tax Reform”), which enacts a wide range of changes to the U.S. Corporate income tax system. The impact of U.S. Tax Reform primarily represents our estimates of revaluing our U.S. deferred tax assets and liabilities based on the rates at which they are expected to be recognized in the future. For U.S. federal purposes the corporate statutory income tax rate was reduced from 35% to 21%, effective for the 2018 tax year. Based on our historical financial performance, at December 31, 2017 we have a net deferred tax asset position that we have remeasured at the lower corporate rate of 21%. This decrease in the rate will result in tax expense to adjust net deferred tax assets to the reduced value but this expense will be completely offset with a decrease in the valuation allowance currently established. Therefore, net deferred taxes at December 31, 2017 will be zero. EnerTeck has incurred net losses since the merger with Gold Bond and, therefore, has no tax liability. The net deferred tax asset generated by the loss carry-forward has been fully reserved. The cumulative operating loss carry-forward is approximately $23,601,000 at December 31, 2017, and expires beginning in 2023. The tax effect of the loss carry-forward for 2017 and thereafter is computed utilizing the newly passed federal corporate tax rate of 21%. Deferred income taxes consisted of the following at December 31, 2017 and 2016: 2017 2016 Deferred tax assets: Net operating loss carryforwards $ 4,956,000 $ 7,932,000 Deferred compensation costs and other 1,076,000 1,696,000 Valuation allowance (6,032,000 ) (9,628,000 ) $ - $ - The change in the valuation allowance for the years ended December 31, 2017 and 2016, 3,596,000 and $890,000, respectively. The following is a reconciliation of the income tax expense (benefit) the years ended December 31, 2017 and 2016: 2017 2016 Income tax expense (benefit) $ (328,000 ) $ (828,000 ) Impact of U.S. tax reform 4,022,000 - Change in valuation allowance (3,596,000 ) 890,000 Other (98,000 ) (62,000 ) Income tax expense $ - $ -

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
NOTE 4 - STOCKHOLDERS' EQUITY	Common Stock During the second quarter of 2016, the Company issued 71,676 shares of common stock to two accredited investors for an aggregate of $21,503 received in a private placement offering of common stock at $0.30 per share. Of such proceeds, $10,050 was received in the fourth quarter of 2015 and $11,453 was received in the first quarter of 2016. During the third quarter of 2017, the Company issued 500,000 shares of common stock to two accredited investors for an aggregate of $100,000 received in a private placement offering of common stock at $0.20 per share.

STOCK WARRANTS AND OPTIONS

STOCK WARRANTS AND OPTIONS	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
NOTE 5 - STOCK WARRANTS AND OPTIONS	Stock Warrants During the third quarter of 2016, the Board of Directors extended the term of 3,590,000 warrants with a strike price of $0.60 per share and an additional 100,000 warrants with the strike price of $0.75 per share for an additional five years. In addition to the foregoing, there were 750,000 warrants granted to the Board of Directors during 2016. No warrants were exercised for the years ended December 31, 2017 and 2016. Due to the extension of all warrants previously set to expire during 2016, no warrants expired during the years ended December 31, 2016. During the first quarter of 2017, 166,667 warrants, expired. No warrants were issued during 2017. The fair value of warrants issued in 2016 was $1,130,645, as estimated using the Black-Scholes Model. The following assumptions were used in these calculations for 2016: 2016 Expected dividend yield 0.0 % Expected term 5 yrs Expected volatility 202 % Risk-free interest rate 1.2 % Fair value per warrant $ 0.26 Warrants outstanding and exercisable as of December 31, 2017 were: Weighted Number of Average Remaining Exercisable Number of Exercise Price Warrants Life Warrant $ 0.60 3,590,000 3.5 3,590,000 $ 0.75 100,000 3.7 100,000 $ 0.50 546,334 2.7 546,334 $ 0.30 750,000 3.9 750,000 4,986,334 4,986,334 Stock Options In September 2003, shareholders of the Company approved an employee stock option plan (the “2003 Option Plan”) authorizing the issuance of options to purchase up to 1,000,000 shares of common stock. The 2003 Option Plan is intended to give the Company greater ability to attract, retain, and motivate officers, key employees, directors and consultants; and is intended to provide the Company with the ability to provide incentives more directly linked to the success of the Company’s business and increases in shareholder value. During the third quarter of 2013, the board of directors increased the number of shares reserved for issuance under the 2003 Option Plan from 1,000,000 to 1,250,000. To date, while no shares of common stock have been issued under the employee option plan, 1,201,000 options are currently outstanding at December 31, 2017. During the third quarter of 2016 the Board of Directors extended 225,001 employee options with a strike price of $0.60 per share, which were otherwise due to expire during 2016. In addition, the Board issued an additional 227,510 employee stock options for calendar year 2016, for the year 2016 and 2015 at a strike price of $0.30 per share. This amounted to 113,755 employee share options for each of the years. An additional 150,000 options with a $0.30 strike price were granted during 2016 as part of a grievance settlement agreement with an employee. These additional options fully vested during the year-ended December 31, 2017, and related stock compensation expense of $19,068 and $7,852 was recognized for the years ended December 31, 2017 and 2016, respectively. The fair value of options extended during 2016 was $1,020,580 at the date of grant and was recognized along with $46,412 fair value for the newly issued employee options as non-cash compensation for the year ended December 31, 2016, as estimated using the Black-Scholes Model with the following weighted average assumptions: 2016 Expected dividend yield 0.0 % Expected term 5 yrs Expected volatility 201 % Risk-free interest rate 1.07 % Fair value per option $ 0.17 The expected term of the options represents the estimated period of time until exercise and is based on the Company’s historical experience of similar options, giving consideration to the contractual terms, vesting schedules and expectations of future employee behavior. The expected stock price volatility is based on the historical volatility of our stock. The risk-free interest rate is based on the U.S. Treasury bill rate in effect at the time of grant with an equivalent expected term or life. The Company has not paid dividends in the past and does not currently plan to pay any dividends in the future. No employee options were issued during 2017. It is expected that 82,500 authorized employee options for 2017 will be issued during 2018, along with approximately the same number for calendar year 2018. Information regarding activity for stock options under our plan is as follows: 2017 2016 Weighted Weighted Average average Number of Exercise Number of exercise shares Price shares price Outstanding at beginning of year 1,200,879 $ 0.38 823,369 $ 0.41 Options granted - 377,510 0.30 Options exercised - - - - Options forfeited/expired - - - - Outstanding at end of year 1,200,879 $ 0.38 1,200,879 $ 0.38 Options exercisable at end of year 1,200,879 1,088,379 Non-vested options at end of year - 112,500 Weighted-average Remaining contractual term – all options 26.6 mo. 2.2 yrs 44.3 mo. 3.2 yrs Weighted-average Remaining contractual term – vested options 2.2 yrs 3.1 yrs Fair value of options vested during the year $ 19,068 $ 7,532 Aggregate intrinsic value $ - $ -

RELATED PARTY NOTES AND ADVANCE

RELATED PARTY NOTES AND ADVANCES	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
NOTE 6 - RELATED PARTY NOTES AND ADVANCES	Related party notes and advances On July 7, 2009, the Company entered into a $100,000 unsecured promissory note with an officer, due on demand. Interest is payable at 12% per annum. Also, on December 11, 2009, the Company entered into a $50,000 note with a shareholder/director. Interest is 5% per annum. The principal balance of the note was due on the earlier of December 11, 2013, or upon completion by the Company of equity financing in excess of $1.0 million in gross proceeds. Interest on the loan is payable on the maturity date at the rate of 5% per annum. This note is now overdue for payment. On June 1, 2010, the Company entered into a $50,000 convertible promissory note with a shareholder/director which was due on June 1, 2013 and accrues interest at 8.0% per annum payable at maturity and which may be converted at any time into shares of common stock. The assignment of the conversion feature of the note resulted in a loan discount being recorded. The discount amount of $36,207 was fully amortized over the original thirty-six month term of the debt as additional interest expense. This note is now overdue for payment. On June 1, 2010, the Company entered into $300,000 of convertible promissory notes with a shareholder/director which was due on June 1, 2013 and accrues interest at 8.0% per annum payable at maturity and which may be converted at any time into shares of common stock the number of which is to be determined at that time. This note is now overdue for payment. On July 20, 2010, the Company entered into $400,000 convertible promissory notes with a shareholder/director which was due on July 20, 2013 and accrues interest at 8.0% per annum payable at maturity and which may be converted at any time into shares of common stock. This note is now overdue for payment. On July 20, 2010, the Company entered into a $100,000 convertible promissory note with a shareholder which was due on July 20, 2013 and accrues interest at 8.0% per annum payable at maturity and which may be converted at any time into shares of common stock. This note is now overdue for payment. On December 10, 2010, the Company entered into $150,000 of convertible promissory notes with a shareholder/director which was due on December 10, 2013 and accrues interest at 8.0% per annum payable at maturity and which may be converted at any time into shares of common stock. This note is now overdue for payment. On June 20, 2011, the Company entered into a $150,000 convertible promissory note with a shareholder/director which shall be due and payable on June 20, 2014 and accrues interest at 8.0% per annum payable at maturity and which may be converted at any time into shares of common stock. This note is now overdue for payment. On October 20, 2011, the Company entered into a $70,000 convertible promissory note with a shareholder/director which was due on October 20, 2014 and accrues interest at 8.0% per annum payable at maturity and which may be converted at any time into shares of common stock. This note is now overdue for payment. During 2010 and 2012, such shareholder/director advanced the Company $100,000 and $370,000 respectively. Such advances are due on demand and bear interest at 8% and 8% per annum respectively. During the second quarter of 2015, $320,000 of the advances during 2012 were converted into 3,173,811 shares of common stock of the Company. During the first quarter of 2018, all of the advances during 2010 totaling $100,000 and the remaining $50,000 of advances during 2012 were converted into shares of common stock of the Company. See Note 9 – Subsequent Events. During 2015, such shareholder/director contributed $200,000 to the Company expected to be applied to stock subscriptions to be issued at a future date. Such advances do not bear interest. This amount has been recorded as additional notes payable. During the first quarter of 2018, the Company agreed to issue and the shareholder/director agreed to accept 800,000 shares of common stock in full consideration for the total amount of $200,000 contributed in 2015. See Note 9 – Subsequent Events. During 2016, such shareholder/director contributed $430,000 and a second shareholder/director contributed an additional $9,000, respectively, to the Company expected to be applied to stock subscriptions to be issued at a future date. Such advances do not bear interest. These amounts have been recorded as additional notes payable. During the first quarter of 2018, the Company agreed to issue and the shareholder/director agreed to accept 2,150,000 shares of common stock in full consideration for the total amount of $430,000 contributed in 2016. See Note 9 – Subsequent Events. During 2017, such shareholder/director contributed $264,250 and a second shareholder/director contributed an additional $1,000, respectively, to the Company expected to be applied to stock subscriptions to be issued at a future date. Such advances do not bear interest. During the first quarter of 2018, the Company agreed to issue and the shareholder/director agreed to accept 1,321,250 shares of common stock in full consideration for the total amount of $264,250 contributed in 2017. See Note – Subsequent Events. The Company determined it is not practicable to estimate the fair value of outstanding debt as of December 31, 2017 or 2016, as the outstanding debt is private, there is no clarity as to when interest payments or principal payments will ultimately be made (or be called by the debt holders), and the Company lacks the internal expertise to calculate fair value of these debt instruments and would incur excessive costs to obtain a third-party valuation. Other related party transactions As of December 31, 2017 and 2016, the Company owed approximately $3.9 million and $3.5 million, respectively, to its chief executive officer and other employees of the Company. The CEO and employees agreed to salary deferrals pending available resources to make such payments. One of the Company’s shareholders owns 100% of BATL Trading, Inc., which is a distributor of EnerBurn. There was one sale for $41,250 to BATL Trading, Inc. during 2017 and no activity during 2016.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
NOTE 7 - COMMITMENTS AND CONTINGENCIES	Office Lease EnerTeck leases office space under a non-cancelable operating lease. Future minimum rentals due under non-cancelable operating leases with an original maturity of at least one-year are approximately as follow: 2018 54,000 2019 36,000 Total $ 90,000 This lease provides for a rent-free period as well as increasing rental payments. In accordance with generally accepted accounting principles, rent expense for financial statement purposes is being recognized on a straight-line basis over the lease term. A deferred lease liability arises from the timing difference in the recognition of rent expense and the actual payment of rent. Rent expense for the years ended December 31, 2017 and 2016 totaled $50,699 and $51,054, respectively.

CONCENTRATION OF CREDIT RISK

CONCENTRATION OF CREDIT RISK	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
NOTE 8 - CONCENTRATION OF CREDIT RISK	Financial instruments that potentially subject EnerTeck to concentration of credit risk are accounts receivable. The Company performs ongoing credit evaluations as to the financial condition of its customers. Generally, no collateral is required. EnerTeck at times has cash in bank in excess of Federal Deposit Insurance Corporation (“FDIC”) insurance limits. For the year ended December 31, 2017 customers of three distributors made up 72% of sales and for the year ended December 31, 2016, 73% of total sales were with customers of two distributors. Those two customers represented 0% and 90% of total accounts receivable at December 31, 2017 and 2016.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
NOTE 9 - SUBSEQUENT EVENTS	Subsequent to the year ended December 31, 2017, on January 31, 2018, a shareholder/director acquired an aggregate of 5,227,147 shares of common stock in full satisfaction and discharge of certain obligations of the Company with respect to various advances and contributions made by such shareholder/director. Such transaction was effected pursuant to a 2017 Consolidated Conversion and Subscription Agreement entered into as of January 31, 2018 (the “2017 Conversion Agreement”) pursuant to which (i) such shareholder/director converted $100,000 advanced on July 10, 2010 bearing interest at 8.0% per annum (the “2010 Advance”) into 250,000 shares of common stock at a conversion price of $0.40 per share; (ii) such shareholder/director converted $50,000 advanced on December 31, 2012 bearing interest at 8.0% per annum (the (“2012 Advance”) into 166,667 shares of common stock at a conversion price of $0.30 per share; (iii) the Company agreed to issue and such shareholder/director agreed to accept 539,230 shares of common stock at $0.20 per share in full payment of accrued and unpaid interest on the 2010 Advance and 2012 Advance which totaled $107,846; (iv) the Company agreed to issue and such shareholder/director agreed to accept 800,000 shares of common stock at $0.25 per share in full consideration for an aggregate of $200,000, bearing no interest, contributed to the Company between July 29 and December 2, 2015, and expected to be applied to stock subscriptions to be issued at a future date; (v) the Company agreed to issue and such shareholder/director agreed to accept 2,150,000 shares of common stock at $0.20 per share in full consideration for aggregate of $430,000, bearing no interest, contributed to the Company between February 9 and November 30, 2016, and expected to be applied to stock subscriptions to be issued at a future date; and (vi) the Company agreed to issue and such shareholder/director agreed to accept 1,321,250 shares of common stock at $0.20 per share in full consideration for an aggregate of $264,250, bearing no interest, contributed to the Company between January 5 and October 24, 2017 and expected to be applied to stock subscriptions to be issued at a future date. During the first quarter of 2018, a shareholder/director advanced $215,000 to the Company for working capital requirements. The Company expects amounts advanced will be either (i) applied against a stock subscription to be issued at a future date or (ii) repaid at a future date as the parties shall determine. Until otherwise agreed, such amounts advanced have been recorded as an additional note payable bearing no interest.

SUMMARY OF SIGNIFICANT ACCOUN16

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2017
Summary Of Significant Accounting Policies Policies
Business and Basis of Presentation	EnerTeck Corporation, formerly Gold Bond Resources, Inc. was incorporated under the laws of the State of Washington on July 30, 1935. On January 9, 2003, the Company acquired EnerTeck Chemical Corp. ("EnerTeck Sub") as its wholly owned operating subsidiary. As a result of the acquisition, the Company is a holding company, with EnerTeck Sub as its only operating business. Subsequent to this transaction, on November 24, 2003, the Company changed its domicile from the State of Washington to the State of Delaware, changed its name from Gold Bond Resources, Inc. to EnerTeck Corporation. EnerTeck Sub, the Company's wholly owned operating subsidiary, is a Houston-based corporation. It was incorporated in the State of Texas on November 29, 2000 and was formed for the purpose of commercializing a diesel fuel specific combustion catalyst known as EnerBurn (TM), as well as other combustion enhancement and emission reduction technologies for diesel fuel. EnerTeck Sub’s primary product is EnerBurn and is registered for highway use in all USA diesel applications. The products are used primarily in on-road vehicles, locomotives and diesel marine engines throughout the United States and select foreign markets. During 2012, EnerTeck acquired a 40% membership interest in EnerTeck Environmental, LLC (“Environmental”). Environmental was formed for the purpose of marketing and selling diesel fuel emission reduction technology with the creators of such specific technology.
Principles of Consolidation	The consolidated financial statements include the accounts of EnerTeck Corporation and its wholly-owned subsidiary, EnerTeck Chemical Corp. All significant inter-company accounts and transactions are eliminated in consolidation.
Cash and Cash Equivalents	The Company considers all highly liquid instruments purchased with an original maturity of three (3) months or less to be cash and cash equivalents.
Inventory	Inventory primarily consists of market ready EnerBurn plus raw materials required to manufacture the products. Inventory has been valued at the lower of cost or market, using the average cost method. Finished product costs amounted to approximately $52,000 and $17,000 at December 31, 2017 and 2016, respectively, and includes required blending costs to bring our products to their finished state.
Accounts Receivable	Accounts receivable represent uncollateralized obligations due from customers of the Company and are recorded at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts to reflect any loss anticipated on the accounts receivable balances and charged to the provision for doubtful accounts. The Company calculates this allowance based on historical write-offs, level of past due accounts and relationships with and economic status of the customers. Accounts are written off as bad debts when all collection efforts have failed, and the account is deemed uncollectible. Management has provided allowances for doubtful accounts of $51,000 as of both December 31, 2017 and 2016.
Property and Equipment	Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is provided for on the straight-line or accelerated method over the estimated useful lives of the assets. The average lives range from five (5) to seven (7) years. Maintenance and repairs that neither materially add to the value of the property nor appreciably prolong its life are charged to expense as incurred. Betterments or renewals are capitalized when incurred. Depreciation expense totaled $1,446 and $900 for the years ended December 31, 2017 and 2016, respectively.
Intangible Assets	The Company follows the provisions of FASB ASC 350, Goodwill and Other Intangible Assets
Revenue Recognition	The Company recognizes revenues when evidence of a completed transaction and customer acceptance exists, and when title passes, if applicable. Revenues from sales of product and equipment are recognized at the point when a customer order has been shipped and invoiced.
Income Taxes	Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax basis of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. Accrued interest and penalties associated with uncertain tax positions are recognized as part of the income tax provision. The Company has no uncertain tax provisions.
Income (Loss) Per Common Share	Basic income (loss) per common share is computed by dividing the net income (loss) applicable to common stockholders by the weighted average number of common shares outstanding. Diluted net income (loss) per common share is computed by dividing the net income (loss) applicable to common stockholders, adjusted on an "as if converted" basis, by the weighted average number of common shares outstanding plus potential dilutive securities. The calculation of diluted weighted-average shares outstanding for the years ended December 31, 2017 and December 31, 2016, respectively, excludes 1,200,879 and 4,986,334 shares and 1,200,879 and 5,153,001 issuable upon the exercise of outstanding stock options and warrants because their effect would be anti-dilutive. Further, the calculation of diluted weighted-average shares outstanding for the years ended December 31, 2017 and 2016 exclude potential shares related to the outstanding convertible notes payable, which if converted, would be anti-dilutive and would have a significant impact on the total number of shares outstanding, once exercised.
Management Estimates and Assumptions	The accompanying consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America which require 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 consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Fair value measurements	The Company estimates fair value at a price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market for the asset or liability. The valuation techniques require inputs that are categorized using a three-level hierarchy, from highest to lowest level of observable inputs, as follows: (1) significant observable inputs, including unadjusted quoted prices for identical assets or liabilities in active markets (“Level 1”), (2) significant other observable inputs, including direct or indirect market data for similar assets or liabilities in active markets or identical assets or liabilities in less active markets (“Level 2”) and (3) significant unobservable inputs, including those that require considerable judgment for which there is little or no market data (“Level 3”). When multiple input levels are required for a valuation, the Company categorizes the entire fair value measurement according to the lowest level of input that is significant to the measurement even though other significant inputs that are more readily observable may have also utilized. The Company’s consolidated financial instruments recorded on the balance sheet include cash and cash equivalents, trade receivables and trade payables. The carrying amounts approximate fair value because of the short-term nature of these items.
Stock Options and Warrants	Compensation cost for equity awards is based on the fair value of the equity instrument on the date of grant and is recognized over the period during which an employee is required to provide service in exchange for the award. Compensation cost for liability awards is based on the fair value of the vested award at the end of each period. The Company also issues equity awards to nonemployees. The fair value of these option awards is estimated when the award recipient completes the contracted professional services. The Company recognizes expense for the estimated total value of the awards during the period from their issuance until performance completion, at which time the estimated expense is adjusted to the final value of the award as measured at performance completion. Forfeitures of any options are accounted for as they occur. The Company values warrant and option awards using the Black-Scholes option pricing model. Stock options and warrants expire on the dates designated in the instrument. The Board have agreed and can agree in the future to issue replacement options and warrants, on a case by case basis, if they so determine, that to be appropriate at the time however there is no set policy in place to do so.
Taxes Collected	The Company collects sales taxes assessed by governmental authorities imposed on certain sales to customers. Sales taxes collected are included in revenues; net amounts paid are reported as expenses in the consolidated statement of operations.
Website Costs	Total website costs of $32,738 are being amortized over their expected useful life of five years. Amortization for 2017 and for 2016 was $6,548 and $6,547 per year, respectively. Future amortization is expected to be as follows: $6,548 for 2018 and 2019, with final amortization of $2,543 in 2020.
Going Concern	In accordance with ASC Subtopic 205-40, Going Concern, management evaluates whether relevant conditions and events that, when considered in the aggregate, indicate that it is probable the Company will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued. When relevant conditions or events, considered in the aggregate, initially indicate that it is probable that the Company will be unable to meet its obligations as they become due within one year after the date that the consolidated financial statements are issued (and therefore they raise substantial doubt about the Company’s ability to continue as a going concern), management evaluates whether its plans that are intended to mitigate those conditions and events, when implemented, will alleviate substantial doubt about the Company’s ability to continue as a going concern. Management’s plans are considered only to the extent that 1) it is probable that the plans will be effectively implemented and 2) it is probable that the plans will mitigate the conditions or events that raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. During the years ended December 31, 2017 and 2016, the Company incurred recurring net losses of $937,000 and $2,366,000, respectively. Further, most of the Company’s notes payable are overdue and payment may be demanded at any time. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. The Company’s continuation as a going concern is contingent upon its ability to obtain additional financing and to generate revenues and cash flow to meet its obligations on a timely basis. The Company has been able to obtain cash in the past through private placements and issuing promissory notes and believes that these avenues will remain available to the Company. Management believes that these financings are probable of occurring and mitigating the substantial doubt raised by our historical operating results and satisfying the Company’s estimated liquidity needs 12 months from the issuance of the consolidated financial statements. No assurance can be made that these efforts will be successful.
Recently Issued Accounting Pronouncements	In May 2014, the FASB issued ASU 2014-09, Revenue From Contracts With Customers In July 2015, the FASB issued ASU 2015-11, “ Inventory: Simplifying the Measurement of Inventory” In February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842) On March 30, 2016, the FASB issued ASU 2016-09, “ Compensation - Stock Compensation Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying consolidated financial statements.

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2017
Property And Equipment Tables
PROPERTY AND EQUIPMENT	At December 31, 2017 and 2016 property and equipment consisted of the following: Useful Lives 2017 Amount 2016 Amount Furniture and fixtures 5-7 $ 66,966 $ 64,557 Equipment 5-7 301,734 301,734 Less: Accumulated depreciation (365,741 ) (364,293 ) Net property and equipment $ 2,959 $ 1,998

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2017
Income Taxes Tables
Deferred income taxes	2017 2016 Deferred tax assets: Net operating loss carryforwards $ 4,956,000 $ 7,932,000 Deferred compensation costs and other 1,076,000 1,696,000 Valuation allowance (6,032,000 ) (9,628,000 ) $ - $ -
Reconciliation of income tax expense	2017 2016 Income tax expense (benefit) $ (328,000 ) $ (828,000 ) Impact of U.S. tax reform 4,022,000 - Change in valuation allowance (3,596,000 ) 890,000 Other (98,000 ) (62,000 ) Income tax expense $ - $ -

STOCK WARRANTS AND OPTIONS (Tab

STOCK WARRANTS AND OPTIONS (Tables)	12 Months Ended
	Dec. 31, 2017
Fair value of option	2016 Expected dividend yield 0.0 % Expected term 5 yrs Expected volatility 201 % Risk-free interest rate 1.07 % Fair value per option $ 0.17
Warrants outstanding and exercisable	Weighted Number of Average Remaining Exercisable Number of Exercise Price Warrants Life Warrant $ 0.60 3,590,000 3.5 3,590,000 $ 0.75 100,000 3.7 100,000 $ 0.50 546,334 2.7 546,334 $ 0.30 750,000 3.9 750,000 4,986,334 4,986,334
Activity for stock options	2017 2016 Weighted Weighted Average average Number of Exercise Number of exercise shares Price shares price Outstanding at beginning of year 1,200,879 $ 0.38 823,369 $ 0.41 Options granted - 377,510 0.30 Options exercised - - - - Options forfeited/expired - - - - Outstanding at end of year 1,200,879 $ 0.38 1,200,879 $ 0.38 Options exercisable at end of year 1,200,879 1,088,379 Non-vested options at end of year - 112,500 Weighted-average Remaining contractual term – all options 26.6 mo. 2.2 yrs 44.3 mo. 3.2 yrs Weighted-average Remaining contractual term – vested options 2.2 yrs 3.1 yrs Fair value of options vested during the year $ 19,068 $ 7,532 Aggregate intrinsic value $ - $ -
Stock Warrants [Member]
Fair value of option	2016 Expected dividend yield 0.0 % Expected term 5 yrs Expected volatility 202 % Risk-free interest rate 1.2 % Fair value per warrant $ 0.26

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2017
Commitments And Contingencies Tables
Future minimum rentals due	EnerTeck leases office space under a non-cancelable operating lease. Future minimum rentals due under non-cancelable operating leases with an original maturity of at least one-year are approximately as follow: 2018 54,000 2019 36,000 Total $ 90,000

SUMMARY OF SIGNIFICANT ACCOUN21

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2012
State of incorporation	Washington
Date of incorporation	Jul. 30, 1935
Inventory, Finished Goods	$ 52,000	$ 17,000
Allowances for doubtful accounts	51,000	51,000
Depreciation expense	$ 1,446	$ 900
Diluted weighted-average shares outstanding	1,200,879	5,153,001
Diluted weighted-average shares outstanding excludes	1,200,879	4,986,334
Website costs	$ 32,738
Amortization of website costs	6,548	$ 6,547
Amortization for 2018	6,548
Amortization for 2019	6,548
Amortization for 2020	2,543
Net losses incurred	$ (936,519)	$ (2,366,424)
Website Costs [Member]
Estimated useful lives of the assets	5 Years
Minimum [Member]
Estimated useful lives of the assets	5 Years
Maximum [Member]
Estimated useful lives of the assets	7 Years
EnerTeck Environmental, LLC [Member]
Membership interest			40.00%

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Less: Accumulated Depreciation	$ (365,741)	$ (364,293)
Net Property and Equipment	2,959	1,998
Furniture And Fixtures [Member]
Gross Property and Equipment	$ 66,966	$ 64,557
Furniture And Fixtures [Member] | Minimum [Member]
Estimated useful lives	5 years	5 years
Furniture And Fixtures [Member] | Maximum [Member]
Estimated useful lives	7 years	7 years
Equipment [Member]
Gross Property and Equipment	$ 301,734	$ 301,734
Equipment [Member] | Minimum [Member]
Estimated useful lives	5 years	5 years
Equipment [Member] | Maximum [Member]
Estimated useful lives	7 years	7 years

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Deferred tax assets:
Net operating loss carryforwards	$ 4,956,000	$ 7,932,000
Deferred compensation costs and other	1,076,000	1,696,000
Valuation allowance	(6,032,000)	(9,628,000)
Net Deferred tax assets

INCOME TAXES (Details 1)

INCOME TAXES (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Income Taxes Details
Income tax expense (benefit)	$ (328,000)	$ (828,000)
Impact of U.S. tax reform	4,022,000
Change in valuation allowance	(3,596,000)	890,000
Other	(98,000)	(62,000)
Income tax expense

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Operating loss carry-forward	$ 23,601,000
Operating loss carry-forward expiry year	2,023
Change in the valuation allowance	$ 3,596,000	$ 890,000
Maximum [Member]
Income tax rate	35.00%
Minimum [Member]
Income tax rate	21.00%

STOCKHOLDERS' EQUITY (Details N

STOCKHOLDERS' EQUITY (Details Narrative)	3 Months Ended				12 Months Ended
	Sep. 30, 2017USD ($)Integer$ / sharesshares	Jun. 30, 2016USD ($)Integer$ / sharesshares	Mar. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Proceeds from sales of common stock					$ 100,000	$ 11,453
Investor [Member]
Proceeds from sales of common stock	$ 100,000	$ 21,503	$ 11,453	$ 10,050
Common stock, shares issued | shares	500,000	71,676
Exercise price of common stock | $ / shares	$ 0.20	$ 0.30
Number of Investors | Integer	2	2

STOCK WARRANTS AND OPTIONS (Det

STOCK WARRANTS AND OPTIONS (Details) - Stock Warrants [Member]	12 Months Ended
	Dec. 31, 2016$ / shares
Expected dividend yield	0.00%
Expected term	5 years
Expected volatility	202.00%
Risk-free interest rate	1.20%
Fair value per warrant	$ 0.26

STOCK WARRANTS AND OPTIONS (D28

STOCK WARRANTS AND OPTIONS (Details 1)	12 Months Ended
	Dec. 31, 2017shares
Number of Warrants	4,986,334
Exercisable Number of Warrants	4,986,334
Exercise Price $0.60 [Member]
Number of Warrants	3,590,000
Weighted Average Remaining Life	3 years 6 months
Exercisable Number of Warrants	3,590,000
Exercise Price $0.75 [Member]
Number of Warrants	100,000
Weighted Average Remaining Life	3 years 8 months 12 days
Exercisable Number of Warrants	100,000
Exercise Price $0.50 [Member]
Number of Warrants	546,334
Weighted Average Remaining Life	2 years 8 months 12 days
Exercisable Number of Warrants	546,334
Exercise Price $0.30 [Member]
Number of Warrants	750,000
Weighted Average Remaining Life	3 years 10 months 10 days
Exercisable Number of Warrants	750,000

STOCK WARRANTS AND OPTIONS (D29

STOCK WARRANTS AND OPTIONS (Details 2) - 2003 Option Plan [Member]	12 Months Ended
	Dec. 31, 2016$ / shares
Expected dividend yield	0.00%
Expected term	5 years
Expected volatility	201.00%
Risk-free interest rate	1.07%
Fair value per option	$ 0.17

STOCK WARRANTS AND OPTIONS (D30

STOCK WARRANTS AND OPTIONS (Details 3) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Number of shares
Outstanding at beginning of year	1,200,879	823,369
Options granted		377,510
Options exercised
Options forfeited/expired
Outstanding at end of year	1,200,879	1,200,879
Options exercisable at end of year	1,200,879	1,088,379
Non-vested options at end of year		112,500
Weighted average exercise price
Outstanding at beginning of year	$ 0.38	$ 0.41
Options granted		0.30
Options exercised
Options forfeited/expired
Outstanding at end of year	$ 0.38	$ 0.38
Weighted-average Remaining contractual term all options	2 years 2 months 12 days	3 years 2 months 12 days
Weighted-average Remaining contractual term vested options	2 years 2 months 12 days	3 years 1 month 6 days
Fair value of options vested during the period	$ 19,068	$ 7,532
Aggregate intrinsic value

STOCK WARRANTS AND OPTIONS (D31

STOCK WARRANTS AND OPTIONS (Details Narrative) - USD ($)	3 Months Ended	9 Months Ended	12 Months Ended
	Mar. 31, 2017	Sep. 30, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2013	Sep. 30, 2003
Fair value of warrants				$ 1,130,645
Number of warrants expired	166,667
Stock options granted in period				113,755
Extension of options/warrants				$ 1,020,580
Fair value for the newly issued employee options				46,412
Options outstanding			1,201,000
Stock compensation expense			$ 19,068	$ 7,852
Expected employee options			82,500
Stock option [Member] | Grievance Settlement Agreement [Member]
Extended warrants strike price				$ 0.30
Stock options granted in period				150,000
2003 Option Plan [Member]
Extended warrants		225,001
Extended warrants strike price		$ 0.60
Common stock, shares reserved for future issuance						1,250,000	1,000,000
Board of Directors [Member]
Number of warrants granted				$ 750,000
Board of Directors [Member] | Strike price $0.75 [Member]
Extended warrants		100,000
Extended warrants strike price		$ 0.75
Extended term of warrants		5 years
Board of Directors [Member] | Strike price $0.60 [Member]
Extended warrants		3,590,000
Extended warrants strike price		$ 0.60
Extended term of warrants		5 years
Stock Options Two [Member]
Extended warrants				227,510	227,510
Extended warrants strike price				$ 0.30	$ 0.30

RELATED PARTY NOTES AND ADVAN32

RELATED PARTY NOTES AND ADVANCES (Details Narrative) - USD ($)	Dec. 10, 2010	Jun. 01, 2010	Dec. 11, 2009	Jul. 07, 2009	Oct. 20, 2011	Jun. 20, 2011	Jul. 20, 2010	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2012	Dec. 31, 2010	Dec. 31, 2015	Jun. 30, 2015
Sales during period								$ 45,475	$ 33,762
BATL Trading, Inc [Member]
Holding percentage								100.00%
Sales during period								$ 41,250
Director [Member]
Convertible promissory note	$ 150,000	$ 50,000	$ 50,000		$ 70,000	$ 150,000	$ 400,000
Interest rate	8.00%	8.00%	5.00%		8.00%	8.00%	8.00%			8.00%	8.00%
Note due date	Dec. 10, 2013	Jun. 1, 2013	Dec. 11, 2013		Oct. 20, 2014	Jun. 20, 2014	Jul. 20, 2013
Equity financing			$ 1,000,000
Discount amount		$ 36,207
Debt discount amortized period		36 months
Due to related party								$ 264,250	$ 430,000	$ 370,000	$ 100,000	$ 200,000	$ 320,000
Converted shares													3,173,811
Principal balance term			The principal balance of the note was due on the earlier of December 11, 2013, or upon completion by the Company of equity financing in excess of $1.0 million in gross proceeds.
Director [Member] | First Quarter 2018 [Member]
Due to related party										$ 50,000	$ 100,000
Common stock issuable shares								1,321,250	2,150,000			800,000
Common stock issuable shares, value								$ 264,250	$ 430,000			$ 200,000
Officer [Member]
Convertible promissory note				$ 100,000
Interest rate				12.00%
Director One [Member]
Convertible promissory note		$ 300,000					$ 100,000
Interest rate		8.00%					8.00%
Note due date		Jun. 1, 2013					Jul. 20, 2013
Due to related party								1,000	9,000
Chief Executive Officer [Member]
Due to officer and other employees								$ 3,900,000	$ 3,500,000

COMMITMENTS AND CONTINGENCIES33

COMMITMENTS AND CONTINGENCIES (Details)	Dec. 31, 2017USD ($)
Commitments And Contingencies Details
2,018	$ 54,000
2,019	36,000
Total	$ 90,000

COMMITMENTS AND CONTINGENCIES34

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Commitments And Contingencies Details Narrative
Rent expense	$ 50,699	$ 51,054

CONCENTRATION OF CREDIT RISK (D

CONCENTRATION OF CREDIT RISK (Details Narrative) - One Customer [Mmember] - Integer	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Total sales percentage	72.00%	73.00%
Total accounts receivable percentage	0.00%	90.00%
Number of distributors	3	2

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - USD ($)	Dec. 10, 2010	Jun. 01, 2010	Dec. 11, 2009	Jan. 31, 2018	Oct. 20, 2011	Jun. 20, 2011	Jul. 20, 2010	Mar. 31, 2018	Dec. 31, 2012	Dec. 31, 2010	Dec. 31, 2017	Dec. 31, 2016
Common stock, par value											$ 0.001	$ .001
Director [Member]
Convertible promissory note	$ 150,000	$ 50,000	$ 50,000		$ 70,000	$ 150,000	$ 400,000
Interest rate	8.00%	8.00%	5.00%		8.00%	8.00%	8.00%		8.00%	8.00%
Subsequent Event [Member] | Director [Member]
Common stock shares acquired				5,227,147
Common stock issuable shares				539,230
Common stock, par value				$ 0.20
Common stock issuable shares, value				$ 107,846
Due to related party								$ 215,000
Related party debt terms of repayment								The Company expects amounts advanced will be either (i) applied against a stock subscription to be issued at a future date or (ii) repaid at a future date as the parties shall determine
Subsequent Event [Member] | Director [Member] | 2010 Advance [Member]
Common stock issuable shares				250,000
Conversion price per share				$ 0.40
Subsequent Event [Member] | Director [Member] | 2012 Advance [Member]
Common stock issuable shares				166,667
Conversion price per share				$ 0.30
Subsequent Event [Member] | Director [Member] | Between January 5 and October 24, 2017 [Member]
Common stock issuable shares				1,321,250
Common stock, par value				$ 0.20
Common stock issuable shares, value				$ 264,250
Subsequent Event [Member] | Director [Member] | Between February 9 and November 30, 2016 [Member]
Common stock issuable shares				2,150,000
Common stock, par value				$ 0.20
Common stock issuable shares, value				$ 430,000
Subsequent Event [Member] | Director [Member] | Between July 29 and December 2, 2015 [Member]
Common stock issuable shares				800,000
Common stock, par value				$ 0.25
Common stock issuable shares, value				$ 200,000
Subsequent Event [Member] | Director [Member] | July 10, 2010 [Member] | 2017 Conversion Agreement [Member]
Convertible promissory note				$ 100,000
Interest rate				8.00%
Subsequent Event [Member] | Director [Member] | December 31, 2012 [Member] | 2017 Conversion Agreement [Member]
Convertible promissory note				$ 50,000
Interest rate				8.00%