Health Discovery (HDVY) 10-Q 14 May 21 2021 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2021	May 14, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2021
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2021
Current Fiscal Year End Date	--12-31
Entity File Number	333-62216
Entity Registrant Name	Health Discovery Corp
Entity Central Index Key	0001141788
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		404,044,937
Incorporation state	GA

Balance Sheets (Unaudited)

Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current assets:
Cash	$ 731	$ 917
Prepaid expenses	15	15
Total current assets	746	932
Patents, net of accumulated amortization of $3,986	0	0
Total assets	746	932
Current liabilities:
Accounts payable	320	128
Dividends payable	207	207
Accrued interest	14	10
Convertible debt	212	212
Total current liabilities	753	557
Total liabilities	753	557
Shareholders' (deficit) equity:
Convertible preferred stock, no par value, 90,000,000 shares authorized: 20,991,891 issued and outstanding at both March 31, 2021 and December 31, 2020	217	217
Common stock, no par value, 900,000,000 shares authorized: 404,044,937 shares issued and outstanding at both March 31, 2021 and December 31, 2020	30,297	30,297
Accumulated deficit	(30,521)	(30,139)
Total shareholders' (deficit) equity	(7)	375
Total liabilities and shareholders' (deficit) equity	$ 746	$ 932

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Preferred stock, no par value	$ 0	$ 0
Preferred stock, shares authorized	90,000,000	90,000,000
Preferred stock, shares issued	20,991,891	20,991,891
Preferred stock, shares outstanding	20,991,891	20,991,891
Common stock, no par value	$ 0	$ 0
Common stock, shares authorized	900,000,000	900,000,000
Common stock, shares issued	404,044,937	404,044,937
Common stock, shares outstanding	404,044,937	404,044,937

Statements of Operations (Unaud

Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Operating expenses:
Professional and consulting fees	$ 64	$ 25
Legal fees	185	152
Compensation	102	106
Other general and administrative expenses	27	41
Total operating expenses	378	324
Loss from operations	(378)	(324)
Other (expense) income, net:
Interest income	0	1
Interest expense	(4)	0
Change in fair value of common stock warrants liability	0	(1,194)
Other expense, net	(4)	(1,193)
Net loss	$ (382)	$ (1,517)
Net loss per share (basic and diluted)	$ (0.001)	$ (0.004)
Weighted average shares outstanding (basic and diluted)	404,044,937	388,646,386

Statements of Shareholders' Equ

Statements of Shareholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands	Series D Convertible Preferred Stock	Common Stock	Accumulated Deficit	Total
Beginning balance, shares at Dec. 31, 2019		388,646,386
Beginning balance, value at Dec. 31, 2019		$ 28,910	$ (29,380)	$ (470)
Promissory note and accrued interest converted to Series D convertible preferred stock, shares	20,991,891
Promissory note and accrued interest converted to Series D convertible preferred stock, value	$ 217			217
Net loss			(1,517)	(1,517)
Ending balance, shares at Mar. 31, 2020	20,991,891	388,646,386
Ending balance, value at Mar. 31, 2020	$ 217	$ 28,910	(30,897)	(1,770)
Beginning balance, shares at Dec. 31, 2020	20,991,891	404,044,937
Beginning balance, value at Dec. 31, 2020	$ 217	$ 30,297	(30,139)	375
Net loss			(382)	(382)
Ending balance, shares at Mar. 31, 2021	20,991,891	404,044,937
Ending balance, value at Mar. 31, 2021	$ 217	$ 30,297	$ (30,521)	$ (7)

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash flows from operating activities
Net loss	$ (382)	$ (1,517)
Adjustments to reconcile net loss to net cash used in operating activities:
Change in fair value of common stock warrants liability	0	1,194
Changes in operating assets and liabilities:
Accounts payable	192	8
Accrued wages	0	23
Accrued liabilities	0	152
Accrued interest	4	0
Net cash used in operating activities	(186)	(140)
Net decrease in cash	(186)	(140)
Cash, beginning of period	917	2,296
Cash, end of period	731	2,156
Non-cash Financing and Investing Activities
Conversion of debt to Series D convertible preferred stock	$ 0	$ 217

1. Basis of Presentation

1. Basis of Presentation	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Basis of Presentation	Note 1 - BASIS OF PRESENTATION Health Discovery Corporation (the “Company”) is a machine learning company that uses advanced mathematical techniques to analyze large amounts of data to uncover patterns that might otherwise be undetectable. The Company operates primarily in the field of molecular diagnostics where such tools are critical to scientific discovery. The terms artificial intelligence and machine learning are sometimes used to describe pattern recognition tools. Our mission is to use our patents and clinical partnerships principally to identify patterns that can advance the science of medicine, as well as to advance the effective use of our technology in other diverse business disciplines, including the high-tech, financial, and healthcare technology markets. Our historical foundation lies in the molecular diagnostics field where we have made a number of discoveries that may play a role in developing more personalized approaches to the diagnosis and treatment of certain diseases. However, our Support Vector Machines (“SVM”) assets in particular have broad applicability in many other fields. Intelligently applied, our pattern recognition technology can be a portal between enormous amounts of otherwise undecipherable data and truly meaningful discovery. Our principal asset is our intellectual property, which includes advanced mathematical algorithms called SVM, as well as biomarkers that we discovered by applying our SVM techniques to complex genetic and proteomic data. Biomarkers are biological indicators or genetic expression signatures of certain disease states. Our intellectual property is protected by 21 patents that have been issued or are currently pending around the world. Our business model has evolved over time to respond to business trends that intersect with our technological expertise and our capacity to professionally manage these opportunities. In the beginning, we sought only to use our SVMs internally in order to discover and license our biomarker signatures to various diagnostic and pharmaceutical companies. Today, our commercialization efforts include: utilization of our discoveries and knowledge to help develop diagnostic and prognostic predictive tests; licensing of the SVM technologies directly to diagnostic companies; and, the potential formation of new ventures with domain experts in other fields where our pattern recognition technology holds commercial promise. The accompanying interim financial statements included in this report are unaudited but reflect all adjustments which, in the opinion of management, are necessary for a fair presentation of the financial position and results of operations for the interim periods presented for the Company. All such adjustments are of a normal recurring nature. The accounting principles followed by the Company and the methods of applying these principles conform with accounting principles generally accepted in the United States of America (“GAAP”). Interim results are not necessarily indicative of the results of a full year’s operations and should be read in conjunction with the financial statements and footnotes included in the Company’s annual report on Form 10-K for the year ended December 31, 2020. Liquidity and Going Concern The Company has prepared its financial statements on a “going concern” basis, which presumes that it will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company’s ability to continue as a going concern is dependent upon our licensing arrangements with third parties, achieving profitable operations, obtaining additional financing, successfully bringing the Company’s technologies to the market and successfully pursuing infringement opportunities. The outcome of these matters cannot be predicted at this time. The Company’s financial statements have been prepared on a going concern basis and do not include any adjustments to the amounts and classifications of the assets and liabilities that might be necessary should the Company be unable to continue in business. If the going concern assumption was not appropriate for the Company’s financial statements then adjustments would be necessary in the carrying values of assets and liabilities, the reported expenses and the balance sheet classifications used. Such adjustments may be material. At March 31, 2021 and April 30, 2021, the Company had approximately $731,000 and $670,000 in cash on hand, respectively. As a result, the Company estimates cash will be depleted in less than one year from the date that these financial statements are available to be issued, if the Company does not generate sufficient cash to support operations. The Company’s plan to have sufficient cash to support operations is comprised of generating revenue through providing services related to those patents, pursuing infringement opportunities and obtaining additional equity or debt financing. While the Company believes these efforts may increase the value of the Company, there is no guarantee that the Company will be successful in these efforts. We estimate cash will be depleted by the first quarter of 2022 unless we are able to increase revenues or raise additional capital. In March 2020, the World Health Organization declared COVID-19 outbreak a pandemic and the President of the United States declared it a national emergency. The COVID-19 pandemic remains a rapidly evolving situation. The extent of the impact of COVID-19 on our business and financial results will depend on future developments, including the duration and speed of the outbreak within the markets in which we operate, government actions and programs, and the related impact on consumer confidence and spending, all of which are highly uncertain. Estimates and assumptions In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts in the financial statements. Actual results could differ significantly from those estimates due to risks and uncertainties, including uncertainty in the current economic environment due to the outbreak of a novel strain of the coronavirus (“COVID-19”). Segments In making decisions regarding resource allocation and assessing performance, our chief executive officer and president view our operations and manages our business as one operating segment.

2. Significant Accounting Polic

2. Significant Accounting Policies	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Significant Accounting Policies	Note 2 – SIGNIFICANT ACCOUNTING POLICIES Patents Initial costs paid to purchase patents are capitalized and amortized using the straight-line method over the remaining life of the patent, generally 17 years, beginning on the date the patent is issued. Annual patent maintenance costs and annual license and renewal registration fees are expensed as period costs. If the applied for patents are abandoned or are not issued, the Company will expense the costs capitalized to date in the period of abandonment or earlier if abandonment appears probable. The carrying value of patents is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For the three months ended March 31, 2021 and 2020 there was no amortization charged to operations and there were no impairments to the Company’s patent assets, which are fully amortized. Common Stock Warrants Liability The Company has, from time to time beginning in 2014, issued convertible preferred stock, preferred stock warrants, common stock, common stock warrants, and fully vested options to purchase shares of common stock in excess of its available shares of underlying stock to be issued. In the event the number of shares or warrants of common stock granted exceeds the number of shares available if the holders exercised all of the previously issued outstanding options and warrants, the Company accounts for this excess as a derivative which is recorded as a common stock warrants liability, which is adjusted to fair value at the end of each reporting period. If and when the Company authorizes sufficient shares of common stock and preferred stock, the common stock warrants liability is reclassified to equity at the fair value of the liability at the date of reclassification. The Company accounts for the See further discussion in Note 6 – Statement of Shareholders’ Equity (Deficit) and Note 7– Common Stock Warrants Liability. Cash Cash includes cash deposited with financial institutions. Periodically, we maintain deposits in financial institutions in excess of government-insured limits. We believe we are not exposed to significant credit risk and to date, we have not realized any losses on these deposits.

3. Net Loss Per Share

3. Net Loss Per Share	3 Months Ended
	Mar. 31, 2021
Earnings Per Share [Abstract]
Net loss per share	Note 3 – NET LOSS PER SHARE Basic earnings per share (“EPS”) is computed by dividing income or loss available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options, convertible promissory notes payable, convertible preferred stock, and warrants. The computation of basic and diluted earnings per share was as follows: Three Months Ended March 31, 2021 2020 Net loss, in thousands $ (382 ) $ (1,517 ) Weighted average shares outstanding – basic and diluted 404,044,937 388,646,386 Loss per share – basic and diluted $ (0.001 ) $ (0.004 ) Anti-dilutive shares excluded: Shares issuable on conversion of options and warrants 82,529,119 53,557,188 Shares issuable on conversion of convertible debt 16,421,183 – Shares issuable on conversion of Series D convertible preferred stock 20,991,891 20,991,891 The dilutive effect of 9,880,525 and 9,176,867 options and warrants were also excluded from diluted weighted average shares during the three months ended March 31, 2021 and 2020, respectively, because the strike or conversion price was below the average share price during the related period.

4. Stock-Based Compensation and

4. Stock-Based Compensation and Other Equity Based Payments	3 Months Ended
	Mar. 31, 2021
Equity [Abstract]
Stock-Based Compensation and Other Equity Based Payments	Note 4 – STOCK-BASED COMPENSATION and other EQUITY BASED PAYMENTS As of March 31, 2021, there was no unrecognized cost related to stock option grants because the outstanding option awards either completed their vesting schedule or the option awards immediately vested. As the market closing price was $0.0398 on March 31, 2021, there was $3.1 million aggregate intrinsic value of all options and warrants outstanding and exercisable as of March 31, 2021. The following schedule summarizes common stock option information as of December 31, 2020 and March 31, 2021. Shares Weighted-Average Outstanding, December 31, 2020 63,875,000 $ 0.025 Granted – – Exercised – – Forfeited – – Outstanding and exercisable, March 31, 2021 63,875,000 $ 0.025 The following schedule summarizes common stock warrant information as of December 31, 2020 and March 31, 2021. Shares Weighted-Average Outstanding, December 31, 2020 115,983,781 $ 0.025 Granted – – Exercised – – Forfeited – – Outstanding, March 31, 2021 115,983,781 $ 0.025 At both March 31, 2021 and December 31, 2020, the Company had 63,875,000 options outstanding with exercise prices ranging from $0.003 to $0.070, and 115,983,781 warrants outstanding with exercise prices ranging from $0.005 to $0.075.

5. Patents

5. Patents	3 Months Ended
	Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Patents	Note 5 – PATENTS The Company’s principal asset is its intellectual property, which includes advanced mathematical algorithms called Support Vector Machines (“SVM”), as well as biomarkers that we discovered by applying its SVM techniques to complex genetic and proteomic data. Biomarkers are biological indicators or genetic expression signatures of certain disease states. The Company’s intellectual property is protected by 21 patents that have been issued or are currently pending around the world. The patents have expirations ranging from 2022 to 2033. Initial costs paid to purchase patents are capitalized and amortized using the straight-line method over the remaining life of the patent. For the three months ended March 31, 2021 and 2020 there was no amortization charged to operations and there were no impairments to the Company’s patent assets, which are fully amortized. Annual patent maintenance costs and annual license and renewal registration fees are expensed as period costs.

6. Shareholders' Equity (Defici

6. Shareholders' Equity (Deficit)	3 Months Ended
	Mar. 31, 2021
Equity [Abstract]
Shareholders' Equity (Deficit)	Note 6 – SHAREHOLDERS’ EQUITY (DEFICIT) Authorized capital At March 31, 2021 and December 31, 2020, the Company’s authorized capital consisted of 900,000,000 shares of common stock and 90,000,000 shares of preferred stock. Series B Preferred Stock The Company sold to individual investors a total of 19,402,675 shares of Series B preferred shares for $1,490,015, net of associated expenses, in 2009. The Series B preferred shares were converted into common stock of the Company in the fourth quarter of 2014, which was the fifth anniversary of the date of issuance as outlined in the original purchase agreement. There are currently no Series B preferred shares outstanding. Dividends were accrued for the Series B preferred stock in the amount of $373,346 as of December 31, 2014. The Company gave the Series B holders the choice of either (1) common stock for the amount of the dividend accrued based upon the price of $0.05 per share or (2) to defer payment of the dividend in cash until the Company is able to pay, at the sole discretion of the Company. During the first quarter of 2015, $166,709 in dividends were paid with the issuance of 3,334,179 shares of common stock. The remaining accrued dividend of $206,637 is reflected as current liability as of March 31, 2021 and December 31, 2020. Series C Preferred Stock In the fourth quarter of 2013, the Board of Directors authorized the issuance of Series C preferred shares in private placement transactions. As of December 31, 2014, and 2015, the Company had issued a total of 6,640,000 and 30,000,000 preferred shares, respectively. The Series C preferred shares were fully subscribed in the third quarter 2015. The Company received total net proceeds of $900,000, of which $568,000 was received during the year ended December 31, 2015. The Series C preferred shares were accompanied by $0.03 warrants and $0.03 contingency warrants. The contingency warrants were to be issued only if the Company had not attained profitability by the end of the first quarter 2016. Because the Company did not attain profitability by the end of first quarter 2016, the contingency warrants were issued. The warrant holders must exercise fifty percent of the warrants if the market price for the Company’s common stock is $0.20 for a period of thirty consecutive calendar days. The holders must also exercise fifty percent of the warrants if the market price for the Company’s common stock is $0.30 for a period of thirty consecutive calendar days. The warrants were valued at $0.022 each using the Black Scholes Method. The Series C preferred stock were to be converted into common stock of the Company at the option of the holder, without the payment of additional consideration by the holder. The shares of Series C preferred stock must be converted into common stock of the Company either by the demand by the shareholder or at the fifth anniversary of the date of issuance. During the first quarter of 2019, the Series C preferred stock was converted to common stock. There are currently no Series C preferred shares outstanding. Series D Preferred Stock The Company’s Series D preferred stock has the following rights and preferences: Dividend rights pari passu Voting rights Conversion rights Liquidation rights pari passu In February 2020, the Company effected the conversion of its $200,000 outstanding promissory note, plus accrued interest of $16,688, into shares of its Series D preferred stock. The note holders retain their outstanding warrants to purchase an aggregate of 41,983,781 shares of the Company’s common stock at a weighted average price of $0.0103. Each warrant expires on July 31, 2029. Common Stock In June 2020, the Chairman of the Board and the Company entered into an agreed upon settlement whereby accrued wages of $212,500 were immediately converted into 15,398,551 shares of the Company’s common stock at a conversion price of $0.0138. All of these issuances of equity securities were made in reliance upon exemptions from registration pursuant to Section 4(2) under the Securities Act of 1933, as amended. At both March 31, 2021 and December 31, 2020, the Company had 63,875,000 options outstanding with exercise prices ranging from $0.003 to $0.070, and 115,983,781 warrants outstanding with exercise prices ranging from $0.005 to $0.075.

7. Common Stock Warrants Liabil

7. Common Stock Warrants Liability	3 Months Ended
	Mar. 31, 2021
Investments, All Other Investments [Abstract]
Common Stock Warrants Liability	Note 7 – COMMON STOCK WARRANTS LIABILITY The common stock warrants liability is recorded based upon the vested number of warrants or other equity-linked instruments outstanding which exceed the number of authorized shares available to meet the assumed exercise or conversion of such instruments at each reporting period. The common stock warrants liability is recorded based upon the number of warrants which exceed the number of common shares available to meet the exercised options and warrants using the Black-Scholes option-pricing model. In the three months ended March 31, 2020, the Company recorded an expense of $1,194,000 related to the change in fair value of the common stock warrants liability. At March 31, 2021 and December 31, 2020, the common stock warrants liability was zero as the Company reclassified the common stock warrants liability to equity, as our shareholders approved the necessary increase in authorized share capital at our annual shareholder meeting held in May 2020. The Company now has adequate authorized shares available to meet the assumed exercise or conversion of its issued options, warrants, convertible debt and convertible preferred stock. The following table presents a reconciliation of the Company’s common stock warrants liability for the three months ended March 31, 2020 (in thousands): Common Stock Warrants Liability Balance, December 31, 2019 $ 1,898 Change in fair value of common stock warrants liability 1,194 Balance, March 31, 2020 $ 3,092 The Company has determined that the common stock warrants liability is a Level 3 measurement within the fair value hierarchy.

8. Convertible Debt

8. Convertible Debt	3 Months Ended
	Mar. 31, 2021
Debt Disclosure [Abstract]
Convertible Debt	Note 8 – CONVERTIBLE DEBT In April 2019, the Company issued a convertible promissory note in the amount of $200,000 to Mr. George McGovern, the Chairman and Chief Executive Officer of the Company, and Mr. James Dengler, a Company shareholder (the “Note Holders”) for funds advanced to the Company. The promissory note was approved by the Company’s board of directors in 2018, for funds advanced to the Company from August 2018 through March 2019 and the promissory note was executed in April 2019 by the Company. This promissory note contained an 8% annual interest rate, and the Note Holders had the right to convert the principal and unpaid accrued interest of the promissory note (the “2019 Convertible Promissory Note”) into shares of the Company’s Series D convertible preferred stock at a conversion price based upon the price of the Company’s common stock on the date of advancement of the loan amount (the “Conversion Price”). Because the loan proceeds were advanced on multiple dates, the Conversion Price varies depending upon the price of the Company’s common stock on the date of advancement of the loan amount. The right of conversion (optional) was solely at the Note Holders’ discretion. On December 31, 2019, the Note Holders notified the Company of their election to convert the 2019 Convertible Promissory Note into shares of the Company’s Series D convertible preferred stock. As a result, the Note Holders received 20,991,891 shares of the Company’s Series D convertible preferred stock in February 2020. In June 2020, $212,000 in accrued wages was converted into a convertible promissory note in the same amount with our chief executive officer. The promissory note and accrued interest are convertible into common stock of the Company at a conversion price of $0.0138. The conversion price is based upon the closing price of the Company’s common stock on June 1, 2020. The promissory note bears interest at an annual rate of 8%.

9. Fair Value Measurement

9. Fair Value Measurement	3 Months Ended
	Mar. 31, 2021
Fair Value Disclosures [Abstract]
9. Fair Value Measurement	Note 9 – FAIR VALUE MEASUREMENT The carrying values of our prepaid expenses and accounts payable approximate their recorded values due to the short-term nature of these instruments. The common stock warrants liability is recorded based on the number of warrants which exceed the number of common shares available to meet the exercised options and warrants using the Black-Scholes option pricing model. The Company has determined that the common stock warrants liability is a Level 3 measurement within the fair value hierarchy. See further discussion of the Common Stock Warrants Liability in Note 7 – Common Stock Warrants Liability. On January 1, 2021, the Company adopted the provisions of Accounting Standards Update (“ASU”) No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement.” The new standard modifies the disclosure requirements on fair value measurements in Topic 820, “Fair Value Measurement.” Certain requirements were removed such as the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, certain requirements were modified and certain disclosures were added such as the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period. The adoption of this standard did not have a material impact on the Company’s financial position, results of operations and cash flows.

10. Commitments and Contingenci

10. Commitments and Contingencies	3 Months Ended
	Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 10 – COMMITMENTS AND CONTINGENCIES Operating Leases The Company does not own any real property. The Company leases approximately 300 square feet of office space in Atlanta, Georgia, pursuant to a short-term lease as of January 2021. The Company currently pays base rent in the amount of $636 per month. Legal Proceedings Intel Matter In September 2016, the Company initiated an Interference proceeding between the Company and Intel Corporation (“Intel”) with United States Patent and Trademark Office (“USPTO”) for Interference between the Company’s pending patent application covering SVM-Recursive Feature Elimination (“SVM-RFE”) and Intel’s Patent No. 7,685,077, entitled “Recursive Feature Eliminating Method based on a Support Vector Machine”. On February 27, 2019, the USPTO ruled in favor of the Company on the SVM-RFE Patents. The Patent Trial and Appeal Board of the USPTO issued its decision, finding that the Company is entitled to claim exclusive rights to the SVM-RFE technology. The decision, issued by Administrative Patent Judge James Moore, ordered Intel’s patent to be cancelled. The decision also dismissed Intel’s motions challenging the validity of the Company’s pending claims and issued patents covering SVM-RFE. On July 23, 2020, the Company filed an infringement lawsuit against Intel. This infringement suit pertains to the Company’s SVM-RFE. The lawsuit was filed in the United States District Court for the Western District of Texas, Waco Division. On February 27, 2021, Intel filed a Petition for Inter Partes Legal fees for this matter were $89,000 and $0 for the three months ended March 31, 2021 and 2020, respectively. Quirk and Bear Matter On February 7, 2020, two shareholders of the Company, William F. Quirk, Jr. (“Quirk”) and Cindy Bear (“Bear”), filed a complaint and motion for a temporary restraining order and preliminary injunction in DeKalb County Superior Court. Among the items in the motion, Quirk and Bear requested to have a special meeting of the shareholders and Quirk and Bear alleged misconduct by the Company and its directors. At the time of the Quirk and Bear complaint, the Company had stated its intent to schedule a shareholder meeting no later than June 30, 2020 and in fact did hold the shareholder meeting on May 27, 2020. On March 2, 2020, Quirk and Bear filed a notice of dismissal in DeKalb County. Quirk and Bear subsequently filed a new lawsuit in Fulton County Superior Court based on substantially similar allegations and seeking similar relief. On March 4, 2020, the Fulton County court ordered a hearing on the emergency motion for a temporary restraining order against the Company for the following day. At the hearing on March 5, 2020, Quirk and Bear presented their version of the facts through affidavits submitted by both Quirk and Bear, arguing that the affidavits supported the emergency relief they sought. The judge denied the motion and did not enter a temporary restraining order. The court set an evidentiary hearing on Quirk and Bear’s motion for a preliminary injunction for March 27, 2020. Due to the Covid-19 pandemic and multiple requests by Quirk and Bear, the scheduling of the hearing was cancelled. Quirk and Bear did not attempt to reschedule it. On September 2, 2020, the Company moved to dismiss the complaint on the grounds that Quirk and Bear lacked standing and failed to state claims for relief. Facing the Company’s motion to dismiss, on September 23, 2020 Quirk voluntarily dismissed his claims against the Company. Because this was the second dismissal of these claims, that dismissal was with prejudice and constitutes an adjudication of the merits under O.C.G.A. § 9-11-41(a)(3). Bear remained a plaintiff in the case. Due to Bear’s refusal to participate in discovery and repeated violations of the Court’s orders, the Company filed a Motion for Involuntary Dismissal of Plaintiff’s Complaint with Prejudice and Incorporated Memorandum of Law on March 2, 2021. Among the request in the motion, the Company asked the Court to award attorney’s fees and costs against Bear as a result of abusive litigation. Subsequently, the Court held a hearing regarding the Company’s motion on March 25, 2021. At that hearing, the Court ordered Bear to appear for her deposition to be taken remotely on March 31, 2021 and April 1, 2021. The Court warned Bear that her failure to appear at these depositions or to participate fully in them would result in the dismissal of the case with prejudice. Bear did not appear for the March 31, 2021 deposition. As a result, on April 6, 2021, the Court issued an Order Granting Motion for Involuntary Dismissal of Plaintiff’s Complaint with Prejudice and Final Order and Judgment (the “Ruling”) against Bear. Among other findings in the Ruling, the Court found that Bear knowingly and willfully failed to participate in discovery and violated the Court’s orders. Consequently, the Court entered final judgment against Bear and in favor of the Company on all counts. In light of the Court’s ruling, the Company intends to seek reimbursement of its attorneys’ fees and costs against Bear for bringing the action. Legal fees for this matter were $43,000 and $152,000 for the three months ended March 31, 2021 and 2020, respectively. Venning Matter On September 24, 2020, the Company accepted service of a lawsuit filed by Laurie Venning (“Venning”) and one of his companies, Vennwest Global Technologies, Inc. (“Vennwest”) from Alberta, Canada. The Vennwest lawsuit contains virtually identical claims against HDC that Quirk and Bear alleged. For this reason, the Company believes Venning, Quirk, Bear and others coordinated their irresponsible and costly attacks against the Company, its directors and others. As Quirk’s dismissal and the Bear judgment reflects, the Company believes these claims are without merit and serve only to deplete the Company’s resources to the detriment of its shareholders. On November 2, 2020, the Company moved to dismiss the complaint or stay the action pending the conclusion of the Quirk and Bear case, on the grounds that the first-filed derivative case would serve as res judicata to preclude the later-filed case. On November 30, 2020, Vennwest filed its response, and on December 15, 2020, the Company filed its reply. The motion remains pending. The Company will vigorously defend itself against these claims and evaluate all options against the plaintiffs including, but not limited to, pursuing counterclaims. Although the Company believes that it will ultimately be successful in its defense, there can be no assurance that the Company will be successful in its defense. Should Vennwest be successful, the outcome could have a material adverse effect on the Company. Legal fees for this matter were $20,000 and $0 for the three months ended March 31, 2021 and 2020, respectively.

11. Recent Accounting Pronounce

11. Recent Accounting Pronouncements	3 Months Ended
	Mar. 31, 2021
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	Note 11 – RECENT ACCOUNTING PRONOUNCEMENTS Not yet adopted Financial Instruments – Credit Losses

12. Subsequent Events

12. Subsequent Events	3 Months Ended
	Mar. 31, 2021
Subsequent Events [Abstract]
Subsequent Events	Note 12 – SUBSEQUENT EVENTS AND COVID-19 The Company has evaluated subsequent events occurring through the date that the financial statements were available to be issued, for events requiring recording or disclosure in the March 31, 2021 financial statements. Other than disclosed earlier in these financial statements, there were no material events or transactions occurring during this period requiring recognition or disclosure.

2. Significant Accounting Pol_2

2. Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Patents	Patents Initial costs paid to purchase patents are capitalized and amortized using the straight-line method over the remaining life of the patent, generally 17 years, beginning on the date the patent is issued. Annual patent maintenance costs and annual license and renewal registration fees are expensed as period costs. If the applied for patents are abandoned or are not issued, the Company will expense the costs capitalized to date in the period of abandonment or earlier if abandonment appears probable. The carrying value of patents is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For the three months ended March 31, 2021 and 2020 there was no amortization charged to operations and there were no impairments to the Company’s patent assets, which are fully amortized.
Common Stock Warrants Liability	Common Stock Warrants Liability The Company has, from time to time beginning in 2014, issued convertible preferred stock, preferred stock warrants, common stock, common stock warrants, and fully vested options to purchase shares of common stock in excess of its available shares of underlying stock to be issued. In the event the number of shares or warrants of common stock granted exceeds the number of shares available if the holders exercised all of the previously issued outstanding options and warrants, the Company accounts for this excess as a derivative which is recorded as a common stock warrants liability, which is adjusted to fair value at the end of each reporting period. If and when the Company authorizes sufficient shares of common stock and preferred stock, the common stock warrants liability is reclassified to equity at the fair value of the liability at the date of reclassification. The Company accounts for the See further discussion in Note 6 – Statement of Shareholders’ Equity (Deficit) and Note 7– Common Stock Warrants Liability.
Cash	Cash Cash includes cash deposited with financial institutions. Periodically, we maintain deposits in financial institutions in excess of government-insured limits. We believe we are not exposed to significant credit risk and to date, we have not realized any losses on these deposits.

3. Net Loss Per Share (Tables)

3. Net Loss Per Share (Tables)	3 Months Ended
	Mar. 31, 2021
Earnings Per Share [Abstract]
Computation of earnings per share	The computation of basic and diluted earnings per share was as follows: Three Months Ended March 31, 2021 2020 Net loss, in thousands $ (382 ) $ (1,517 ) Weighted average shares outstanding – basic and diluted 404,044,937 388,646,386 Loss per share – basic and diluted $ (0.001 ) $ (0.004 ) Anti-dilutive shares excluded: Shares issuable on conversion of options and warrants 82,529,119 53,557,188 Shares issuable on conversion of convertible debt 16,421,183 – Shares issuable on conversion of Series D convertible preferred stock 20,991,891 20,991,891

4. Stock-Based Compensation a_2

4. Stock-Based Compensation and Other Equity Based Payments (Tables)	3 Months Ended
	Mar. 31, 2021
Equity [Abstract]
Schedule of stock option activity	The following schedule summarizes common stock option information as of December 31, 2020 and March 31, 2021. Shares Weighted-Average Outstanding, December 31, 2020 63,875,000 $ 0.025 Granted – – Exercised – – Forfeited – – Outstanding and exercisable, March 31, 2021 63,875,000 $ 0.025
Schedule of common stock warrant activity	The following schedule summarizes common stock warrant information as of December 31, 2020 and March 31, 2021. Shares Weighted-Average Outstanding, December 31, 2020 115,983,781 $ 0.025 Granted – – Exercised – – Forfeited – – Outstanding, March 31, 2021 115,983,781 $ 0.025

7. Common Stock Warrants Liab_2

7. Common Stock Warrants Liability (Tables)	3 Months Ended
	Mar. 31, 2021
Investments, All Other Investments [Abstract]
Reconciliation of warrant liability	The following table presents a reconciliation of the Company’s common stock warrants liability for the three months ended March 31, 2020 (in thousands): Common Stock Warrants Liability Balance, December 31, 2019 $ 1,898 Change in fair value of common stock warrants liability 1,194 Balance, March 31, 2020 $ 3,092

1. Basis of Presentation (Detai

1. Basis of Presentation (Details Narrative) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Cash	$ 731	$ 917	$ 2,156	$ 2,296

2. Significant Accounting Pol_3

2. Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Accounting Policies [Abstract]
Amortization of patents	$ 0	$ 0
Impairment of intangible assets	$ 0	$ 0

3. Net Loss Per Share (Details

3. Net Loss Per Share (Details - Earnings per Share) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Net loss, in thousands	$ (382)	$ (1,517)
Weighted average shares outstanding - basic and diluted	404,044,937	388,646,386
Loss per share - basic and diluted	$ (0.001)	$ (0.004)
Options and Warrants [Member]
Antidilutive shares excluded	82,529,119	53,557,188
Conversion of Convertible Debt [Member]
Antidilutive shares excluded	16,421,183	0
Conversion of Series D Convertible Preferred Stock [Member]
Antidilutive shares excluded	20,991,891	20,991,891

3. Net Loss Per Share (Detail_2

3. Net Loss Per Share (Details Narrative) - Options and Warrants [Member] - shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Antidilutive shares	82,529,119	53,557,188
Strike Price below Average Price [Member]
Antidilutive shares	9,880,525	9,176,867

4. Stock-Based Compensation a_3

4. Stock-Based Compensation and Other Equity Based Payments (Details - Option Activity) - Stock Options [Member]	3 Months Ended
	Mar. 31, 2021$ / sharesshares
Number of Options
Number of Options Outstanding, Beginning | shares	63,875,000
Number of Options Granted | shares	0
Number of Options Exercised | shares	0
Number of Options Forfeited | shares	0
Number of Options Outstanding, Ending | shares	63,875,000
Weighted Average Exercise Price
Weighted Average Exercise Price Outstanding, Beginning | $ / shares	$ 0.025
Weighted Average Exercise Price Granted | $ / shares	0
Weighted Average Exercise Price Exercised | $ / shares	0
Weighted Average Exercise Price Forfeited | $ / shares	0
Weighted Average Exercise Price Outstanding, Ending | $ / shares	$ 0.025

4. Stock-Based Compensation a_4

4. Stock-Based Compensation and Other Equity Based Payments (Details - Warrant Activity) - Warrants [Member]	3 Months Ended
	Mar. 31, 2021$ / sharesshares
Number of Warrants
Number of Warrants Outstanding, Beginning | shares	115,983,781
Number of Warrants Granted | shares	0
Number of Warrants Exercised | shares	0
Number of Warrants Forfeited | shares	0
Number of Warrants Outstanding, Ending | shares	115,983,781
Weighted Average Exercise Price
Weighted Average Exercise Price Outstanding, Beginning | $ / shares	$ 0.025
Weighted Average Exercise Price Granted | $ / shares	0
Weighted Average Exercise Price Exercised | $ / shares	0
Weighted Average Exercise Price Forfeited | $ / shares	0
Weighted Average Exercise Price Outstanding, Ending | $ / shares	$ 0.025

4. Stock-Based Compensation a_5

4. Stock-Based Compensation and Other Equity Based Payments (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Stock Options [Member]
Options outstanding	63,875,000	63,875,000
Options outstanding exercise price ranges	$0.003 to $0.070
Unrecognized compensation expense	$ 0
Warrants [Member]
Warrants outstanding	115,983,781	115,983,781
Warrants outstanding exercise price ranges	$0.005 to $0.075
Options and Warrants [Member]
Aggregate intrinsic value outstanding	$ 3,100,000
Aggregate intrinsic value exercisable	$ 3,100,000

5. Patents (Details Narrative)

5. Patents (Details Narrative)	3 Months Ended
	Mar. 31, 2021Integer
Goodwill and Intangible Assets Disclosure [Abstract]
Number of patents	21
Patent expiration dates	2022 to 2033

6. Stockholders' Equity (Defici

6. Stockholders' Equity (Deficit) (Details Narrative) - USD ($)	2 Months Ended	3 Months Ended	6 Months Ended
	Feb. 28, 2020	Mar. 31, 2021	Jun. 30, 2020	Dec. 31, 2020
Stock Options [Member]
Options outstanding		63,875,000		63,875,000
Options outstanding exercise price ranges		$0.003 to $0.070
Warrants [Member]
Warrants outstanding		115,983,781		115,983,781
Warrant exercise price		$ 0.025		$ 0.025
Warrants outstanding exercise price ranges		$0.005 to $0.075
Chairman of the Board [Member]
Issuance of common stock in settlement of accrued wages, shares			15,398,551
Issuance of common stock in settlement of accrued wages, value			$ 212,500
Conversion price			$ 0.0138
Series D Convertible Preferred Stock [Member]
Debt converted, original amount converted	$ 200,000
Interest converted	$ 16,688
Promissory Note Holders [Member]
Warrants outstanding		41,983,781
Warrant exercise price		$ 0.0103
Warrant expiration date		Jul. 31, 2029
Series B Preferred Stock [Member]
Accrued dividend		$ 206,637		$ 206,637

7. Common Stock Warrants Liab_3

7. Common Stock Warrants Liability (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)
Investments, All Other Investments [Abstract]
Warrant liability, beginning balance	$ 1,898
Common stock warrants liability	1,194
Warrant liability, ending balance	$ 3,092

8. Convertible Debt (Details Na

8. Convertible Debt (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2021	Jun. 30, 2020
Promissory Note Holders [Member] | Series D Convertible Preferred Stock [Member]
Debt converted, shares issued	20,991,891
Accrued Wages [Member]
Wages converted into promissory note		$ 212,000
Debt interest rate		8.00%
Debt conversion price		$ 0.0138

10. Commitments and Contingen_2

10. Commitments and Contingencies (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Legal fees	$ 185	$ 152
Intel Matter [Member]
Legal fees	89	0
Quirk and Bear Matter [Member]
Legal fees	43	152
Venning Matter [Member]
Legal fees	$ 20	$ 0