Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 12, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | EAU TECHNOLOGIES, INC. | |
Entity Central Index Key | 1,170,816 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
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 Common Stock, Shares Outstanding | 28,575,371 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,015 |
BALANCE SHEETS (Unaudited)
BALANCE SHEETS (Unaudited) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
CURRENT ASSETS | ||
Cash | $ 227,427 | $ 259,805 |
Accounts receivable, net | 9,473 | 56,296 |
Accounts receivable - related party, net | 2,323 | 1,500 |
Prepaid expense | 28,346 | 47,438 |
Inventory, net | 183,354 | 72,290 |
Total current assets | 450,923 | 437,239 |
PROPERTY AND EQUIPMENT, net of accumulated depreciation of $120,721 | 0 | 0 |
OTHER ASSETS | ||
Intellectual property, net of accumulated amortization of $8,445 and $7,428 | 146,797 | 138,101 |
Total other assets | 146,797 | 138,101 |
Total assets | 597,720 | 575,430 |
CURRENT LIABILITIES | ||
Accounts payable | 159,170 | 161,787 |
Accounts payable - related party | 7,014 | 8,454 |
Accrued expenses | 41,538 | 44,694 |
Accrued interest | 3,098,565 | 2,611,490 |
Warranty reserve | 140,000 | 140,000 |
Advance deposits on machine orders | 309,660 | 542,793 |
Advance deposits on machine orders - related party | 612,163 | 413,595 |
Short term notes payable - related party | 130,000 | 1,290,000 |
Unsecured short term advances - related party | 305,000 | 5,000 |
Convertible notes payable – related party, net of discounts of $11,600 and $0 | 6,135,227 | 4,986,827 |
Total current liabilities | 10,938,337 | 10,204,640 |
Total Liabilities | 10,938,337 | 10,204,640 |
STOCKHOLDERS' EQUITY (DEFICIT) | ||
Common stock, $.0001 par value; 50,000,000 shares authorized; 28,575,371 and 28,575,371 issued and outstanding, respectively | 2,858 | 2,858 |
Additional paid in capital | 45,772,527 | 45,726,127 |
Accumulated deficit | (56,116,002) | (55,358,195) |
Total stockholders' equity (deficit) | (10,340,617) | (9,629,210) |
Total liabilities and stockholders' equity (deficit) | $ 597,720 | $ 575,430 |
BALANCE SHEETS (Unaudited) (Par
BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Accumulated Depreciation on Property and Equipment | $ 120,721 | $ 120,721 |
Liabilities | ||
Discount on Convertible notes payable | $ 11,600 | $ 0 |
Stockholders Equity | ||
Common Stock shares par value | $ .001 | $ .001 |
Common Stock shares Authorized | 50,000,000 | 50,000,000 |
Common Stock shares Issued | 28,575,371 | 28,575,371 |
Common Stock shares Outstanding | 28,575,371 | 28,575,371 |
UNAUDITED STATEMENTS OF OPERATI
UNAUDITED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
NET REVENUES - RELATED PARTY | $ 25,191 | $ 2,593 | $ 56,420 | $ 4,089 |
NET REVENUES | 85,072 | 51,628 | 799,762 | 847,057 |
TOTAL REVENUES | 110,263 | 54,221 | 856,182 | 851,146 |
COST OF GOODS SOLD | 41,132 | 7,189 | 316,553 | 285,101 |
GROSS PROFIT | 69,131 | 47,032 | 539,629 | 566,045 |
OPERATING EXPENSES | ||||
Depreciation and amortization | 339 | 339 | 1,017 | 1,017 |
General and administrative | 277,800 | 413,030 | 780,519 | 1,159,012 |
Total operating expenses | 278,139 | 413,369 | 781,536 | 1,160,029 |
INCOME (LOSS) FROM OPERATIONS | (209,008) | (366,337) | (241,907) | (593,984) |
OTHER INCOME (EXPENSE) | ||||
Interest expense | (182,341) | (160,570) | (523,199) | (447,337) |
Interest income | 46 | 12 | 99 | 46 |
Rental income | 2,400 | 2,400 | 7,200 | 7,200 |
Gain on settlement of debt | 0 | 27,000 | 0 | 27,000 |
Total other income (expense) | (179,895) | (131,158) | (515,900) | (413,091) |
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES | (388,903) | (497,495) | (757,807) | (1,007,075) |
PROVISION FOR INCOME TAXES | 0 | 0 | 0 | 0 |
NET LOSS | $ (388,903) | $ (497,495) | $ (757,807) | $ (1,007,075) |
BASIC AND DILUTED NET LOSS PER SHARE | $ (0.01) | $ (0.02) | $ (0.03) | $ (0.04) |
WEIGHTED AVERAGE OF SHARES OUTSTANDING | 28,575,371 | 28,575,371 | 28,575,371 | 28,575,371 |
STATEMENTS OF CASH FLOWS (Unaud
STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (757,807) | $ (1,007,075) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 1,017 | 1,017 |
Warrants and options vested or issued for services | 0 | 1,452 |
Discount of note payable | 34,800 | 31,847 |
Gain on settlement of debt | 0 | (27,000) |
Changes in operating assets and liabilities: | ||
Decrease in accounts receivable | 46,823 | 10,230 |
(Increase) in accounts receivable – related party | (823) | 0 |
Decrease in prepaid expense | 19,092 | 29,732 |
Decrease (Increase) in inventory | (111,064) | 51,764 |
(Decrease) in accounts payable | (4,057) | (145,609) |
(Decrease) increase in advance deposits for machine orders | (233,133) | 3,610 |
Increase in advance deposits for machine orders – related party | 198,568 | 14,200 |
Increase (decrease) in accrued expenses | (3,156) | 73,476 |
Increase in accrued interest | 487,075 | 415,065 |
Net cash (used) in operating activities | (322,665) | (547,291) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Payments for intellectual property | (9,713) | (9,519) |
Net cash (used) in investing activities | (9,713) | (9,519) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from unsecured short term advances - related party | 300,000 | 860,000 |
Net cash provided by financing activities | 300,000 | 860,000 |
NET INCREASE (DECREASE) IN CASH | (32,378) | 303,190 |
Cash, beginning of period | 259,805 | 2,654 |
Cash, end of period | 227,427 | 305,844 |
Supplemental Disclosures of Cash Flow Information: | ||
Cash paid during the period for: Interest paid | 1,324 | 425 |
Cash paid during the period for: Income Taxes paid | $ 0 | $ 0 |
1. BASIS OF PRESENTATION
1. BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | The accompanying condensed financial statements were prepared by the Company without audit pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. In managements opinion all necessary adjustments, which consist primarily of normal recurring adjustments, to the financial statements have been made to present fairly the financial position and results of operations and cash flows. The results of operations for the respective periods presented are not necessarily indicative of the results for the respective complete years. The financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014. Certain prior period amounts have been reclassified in the condensed financial statements to conform to current period presentation. |
2. INVENTORIES
2. INVENTORIES | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
2. INVENTORIES | The composition of inventories is as follows at: September 30, 2015 December 31, 2014 Finished goods $ 64,184 $ - Raw materials 509,807 426,927 Allowance for obsolete inventory (390,637 ) (390,637 ) $ 183,354 $ 72,290 |
3. WARRANTY RESERVE
3. WARRANTY RESERVE | 9 Months Ended |
Sep. 30, 2015 | |
Guarantees [Abstract] | |
3. WARRANTY RESERVE | The Company warrants its products against defects in materials and workmanship for a period of three years. The Company reviews the historical experience of failure rates and estimates the rate of warranty claims that will be made and has accrued a warranty reserve for these anticipated future warranty costs. If actual results differ from the estimates, the Company would adjust the estimated warranty liability. Changes in the warranty reserve for the Nine months ended September 30, 2015, and for the year ended December 31, 2014 are as follows: September 30, 2015 December 31, 2014 Warranty reserve at beginning of period $ 140,000 $ 160,000 Costs accrued for additional warranties 6,622 1,001 Service obligations honored (6,622 ) (1,001 ) Reduction in accrued estimate - (20,000 ) Warranty reserve at end of period $ 140,000 $ 140,000 |
4. CONVERTIBLE NOTES PAYABLE -
4. CONVERTIBLE NOTES PAYABLE - RELATED PARTIES | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
4. CONVERTIBLE NOTES PAYABLE - RELATED PARTIES | At various times throughout 2014, funds totaling $1,160,000 were advanced to the Company by Mr. Ullrich, a related party. In April 2015, the Company entered into a loan agreement with this related party which formalized those advances into a note payable. This balance has been included on the balance sheet in related party notes payable as of December 31, 2014. The loan agreement provides for interest at a rate of 10% annually and will mature on November 30, 2015. The outstanding balance under the Loan Agreement is convertible into shares of the Companys common stock at $0.31 per share and no principal or interest payments are due until maturity. The Loan Agreement provides that accrued interest and the outstanding principal balance can be prepaid, in whole or in part, at any time without premium or penalty. In connection with the negotiation of the Loan Agreement, the Company also granted a warrant to purchase up to 1,160,000 shares of the Companys common stock at an exercise of $0.31 per share. The warrant expires in April 2020. Due to the warrants issued in connection with the loan, the Company recognized a debt discount of $46,400 in interest expense. In April 2014, the Company entered into a loan agreement with Mr. Ullrich, a related party, which formalized $303,300 in advances into a note payable. The loan agreement provides for interest at a rate of 10% annually and has been extended to mature on November 30, 2015. The outstanding balance under the Loan Agreement is convertible into shares of the Companys common stock at $0.31 per share and no principal or interest payments are due until maturity. The Loan Agreement provides that accrued interest and the outstanding principal balance can be prepaid, in whole or in part, at any time without premium or penalty. In connection with the negotiation of the Loan Agreement, the Company also granted a warrant to purchase up to 303,300 shares of the Companys common stock at an exercise of $0.31 per share. The warrant expires in April, 2019. In May 2013, the Company entered into Promissory Notes (Promissory Notes) with Peter Ullrich and Theodore Jacoby, related parties. Mr. Ullrich agreed to lend the Company $80,000 and Mr. Jacoby agreed to lend the Company $50,000. The Promissory Notes provide for interest at a rate of 10% annually. No principal or interest payments are due until maturity. The Promissory Notes provide that accrued interest and the outstanding principal balance can be prepaid, in whole or in part, at any time without premium or penalty. In November 2013, the Company entered into Amended Promissory Note agreements to extend the notes from November 2013 to May 2014. In May 2014, the Promissory Notes were again extended to May 2015. In January 2013, the Company entered into a loan agreement with a related party. The principal amount of the Note is $1,325,000. The Loan Agreement provides for interest at a rate of 10% annually and had an initial maturity of November 30, 2013. The loan agreement was subsequently amended to provide a maturity date of November 30, 2015. The outstanding balance under the Loan Agreement is convertible into shares of the Companys common stock at $0.31 per share and no principal or interest payments are due until maturity. The Loan Agreement provides that accrued interest and the outstanding principal balance can be prepaid, in whole or in part, at any time without premium or penalty. In connection with the negotiation of the Loan Agreement, the Company also granted a warrant to purchase up to 1,325,000 shares of the Companys common stock at an exercise of $0.31 per share. The warrant expires on January 31, 2018. Due to the warrants issued in connection with the loan, the Company recognized a debt discount of $26,500 in interest expense. The Company also recognized approximately $26,500 in interest expense related to the amortization of this debt discount. In September 2005, the Company entered into a Senior Convertible Note (the Note) with Water Science, a related party, in exchange for $3,000,000. Pursuant to the debt agreement, the Note accrues interest at the rate of 3% per annum and was initially due, principal and interest together, on September 16, 2008. In June 2008, Water Science agreed to extend the maturity date of the Note to March 16, 2009. In March 2009, the Company and Water Science agreed to extend the maturity date to September 16, 2009 and increase the interest rate to 10%. No principal or interest payments need to be paid during the loan period. In October 2008, as part of a new financing agreement, the Company amended the Note and changed the conversion rate from $3.00 per share to $1.00 per share. The Note may be converted into 3,000,000 shares of the Companys $0.0001 par value common stock prior to the maturity date, and at any time, by the holder at a price per share equal to $1.00 per share, subject to certain other conversion adjustments. The Company granted a security interest in all of the Companys assets as collateral for the loan. In connection with the original issuance of the Note, the Company granted a three year warrant to purchase up to two million shares of the Companys $0.0001 par value common stock with an exercise price of $2.76 per share. Beginning in 2009 and each year thereafter, the Company entered into agreements with Water Science to extend the maturity date of the Note by an additional year. Most recently, in March 2015 the Company entered into an agreement with Water Science to extend the Note until November 30, 2015. In December 2011, the Company entered into an agreement to convert $358,527 of accrued interest into a new convertible note. Simple interest accrued at a rate of 10% per annum on the unpaid principal amount outstanding and the loan was set to mature on November 30, 2013, at which time accrued interest and the outstanding principal balance shall be due. The agreement contains an optional conversion right, whereby the Lender may convert all or any portion of the outstanding principal and interest due into shares of the Companys common stock at a price per share equal to $1.00 per share. In connection with the issuance of the convertible note, the Company granted a five year warrant to purchase up to 358,527 shares of the Companys $0.0001 par value common stock with an exercise price of $0.31 per share. In March 2015, the Company entered into agreements with Mr. Ullrich to extend the $358,527 Note and the $1,325,000 Note until November 30, 2015. |
5. RELATED PARTY TRANSACTIONS
5. RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
5. RELATED PARTY TRANSACTIONS | Sales to Affiliates Convertible Notes Payable and Short Term Notes Payable Advances Unsecured Short Term Advances |
6. CAPITAL STOCK
6. CAPITAL STOCK | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
6. CAPITAL STOCK | The Company has certain notes payable to related parties that are convertible into shares of the Companys common stock. See Note 4. |
7. GOING CONCERN
7. GOING CONCERN | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
7. GOING CONCERN | At September 30, 2015 the Company had deficit working capital, deficit equity and has sustained recurring losses from operations, all of which raise substantial doubt about the Companys ability to continue as a going concern. The financial statements have been prepared on a going concern basis, which contemplates continuity of operations, realization of assets and satisfaction of liabilities in the ordinary course of business. However, as a result of recurring operating losses, such realization of assets and satisfaction of liabilities are subject to uncertainty, which raises substantial doubt about the Company's ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Our auditors have issued their Independent Registered Public Accountants Report on the Company's financial statements for the fiscal year ended December 31, 2014 with an explanatory paragraph regarding the Company's ability to continue as a going concern. The Company estimates that it may need up to $1,200,000 for the upcoming twelve months to execute its business plan. Management plans to mitigate its losses in the near term through the further development and marketing of its trademarks, brand and product offerings. |
8. SUMMARY OF SIGNIFICANT ACCOU
8. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
8. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Receivables Receivables represent valid claims against debtors for sales or other charges arising on or before the balance-sheet date and are reduced to their estimated net realizable value. The Company estimates allowances for doubtful accounts based on the aged receivable balances and historical losses. The Company charges off uncollectible accounts receivable when management estimates no possibility of collecting the related receivable. Basic and Fully Diluted Loss Per Share Basic and Fully Diluted net loss per share is computed using the weighted-average number of common shares outstanding during the period. For the Three Months Ended For the Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Net Income (loss) (numerator) $ (388,903 ) $ (497,495 ) $ (757,807 ) $ (1,007,075 ) Shares (denominator) 28,575,371 28,575,371 28,575,371 28,575,371 Per share amount $ (0.01 ) $ (0.02 ) $ (0.03 ) $ (0.04 ) The Companys outstanding stock options and warrants have been excluded from the basic net loss per share calculation for the three and nine month period ended September 30, 2015 and 2014, because they are anti-dilutive. Stock Based-Compensation Expense Stock-based compensation is calculated according to FASB ASC Topic 718, Compensation Stock Compensation The following table is a summary of the status of the warrants and options granted and outstanding at September 30, 2015: Number of Options and Warrants Weighted Average Exercise Price Outstanding at beginning of period 6,413,154 $ 0.31 Granted 1,160,000 $ 0.31 Exercised - $ - Forfeited (232,500 ) $ 0.31 Expired - $ - Outstanding at end of period 7,340,654 $ 0.31 A summary of the status of the warrants and options outstanding at September 30, 2015 is presented below: Warrants Outstanding Warrants Exercisable Range of Exercise Prices Number Outstanding Weighted-Average Remaining Contractual Life Weighted-Average Exercise Price Number Exercisable Weighted-Average Exercise Price $.01-.50 7,340,654 3.1 years $0.31 7,340,654 $0.31 The fair value of each warrant and option granted is estimated on the date granted using the Binomial pricing model. |
9. SUBSEQUENT EVENTS
9. SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
9. SUBSEQUENT EVENTS | In October 2015, the Company obtained an unsecured short term advance of $125,000 from Peter Ullrich a member of the Board of Directors of the Company. The final agreement to document the advances has not been signed, and the material terms are not final. It is anticipated that the final loan will be at 10% simple interest and conversion rights into Company common stock. The material terms of the final agreement will be disclosed in subsequent filings with the Securities and Exchange Commission. In accordance with ASC 855, management evaluated events subsequent to September 30, 2015 and concluded there were no other events or transactions during this period that required recognition or disclosure in its financial statements. |
8. SUMMARY OF SIGNIFICANT ACC15
8. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Receivables | Receivables represent valid claims against debtors for sales or other charges arising on or before the balance-sheet date and are reduced to their estimated net realizable value. The Company estimates allowances for doubtful accounts based on the aged receivable balances and historical losses. The Company charges off uncollectible accounts receivable when management estimates no possibility of collecting the related receivable. |
Basic and Fully Diluted Loss Per Share | Basic and Fully Diluted net loss per share is computed using the weighted-average number of common shares outstanding during the period. For the Three Months Ended For the Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Net Income (loss) (numerator) $ (388,903 ) $ (497,495 ) $ (757,807 ) $ (1,007,075 ) Shares (denominator) 28,575,371 28,575,371 28,575,371 28,575,371 Per share amount $ (0.01 ) $ (0.02 ) $ (0.03 ) $ (0.04 ) The Companys outstanding stock options and warrants have been excluded from the basic net loss per share calculation for the three and nine month period ended September 30, 2015 and 2014, because they are anti-dilutive. |
Stock Based-Compensation Expense | Stock-based compensation is calculated according to FASB ASC Topic 718, Compensation Stock Compensation The following table is a summary of the status of the warrants and options granted and outstanding at September 30, 2015: Number of Options and Warrants Weighted Average Exercise Price Outstanding at beginning of period 6,413,154 $ 0.31 Granted 1,160,000 $ 0.31 Exercised - $ - Forfeited (232,500 ) $ 0.31 Expired - $ - Outstanding at end of period 7,340,654 $ 0.31 A summary of the status of the warrants and options outstanding at September 30, 2015 is presented below: Warrants Outstanding Warrants Exercisable Range of Exercise Prices Number Outstanding Weighted-Average Remaining Contractual Life Weighted-Average Exercise Price Number Exercisable Weighted-Average Exercise Price $.01-.50 7,340,654 3.1 years $0.31 7,340,654 $0.31 The fair value of each warrant and option granted is estimated on the date granted using the Binomial pricing model. |
2. INVENTORIES (Tables)
2. INVENTORIES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Composition of Inventories | September 30, 2015 December 31, 2014 Finished goods $ 64,184 $ - Raw materials 509,807 426,927 Allowance for obsolete inventory (390,637 ) (390,637 ) $ 183,354 $ 72,290 |
3. WARRANTY RESERVE (Tables)
3. WARRANTY RESERVE (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Guarantees [Abstract] | |
Warranty Reserve | The Company warrants its products against defects in materials and workmanship for a period of three years. The Company reviews the historical experience of failure rates and estimates the rate of warranty claims that will be made and has accrued a warranty reserve for these anticipated future warranty costs. If actual results differ from the estimates, the Company would adjust the estimated warranty liability. Changes in the warranty reserve for the Nine months ended September 30, 2015, and for the year ended December 31, 2014 are as follows: September 30, 2015 December 31, 2014 Warranty reserve at beginning of period $ 140,000 $ 160,000 Costs accrued for additional warranties 6,622 1,001 Service obligations honored (6,622 ) (1,001 ) Reduction in accrued estimate - (20,000 ) Warranty reserve at end of period $ 140,000 $ 140,000 |
8. SUMMARY OF SIGNIFICANT ACC18
8. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Summary Of Significant Accounting Policies Tables | |
Basic and Fully Diluted net loss per share using weighted-average number of common shares outstanding | For the Three Months Ended For the Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Net Income (loss) (numerator) $ (388,903 ) $ (497,495 ) $ (757,807 ) $ (1,007,075 ) Shares (denominator) 28,575,371 28,575,371 28,575,371 28,575,371 Per share amount $ (0.01 ) $ (0.02 ) $ (0.03 ) $ (0.04 ) |
Summary of the status of warrants and options granted and outstanding | Number of Options and Warrants Weighted Average Exercise Price Outstanding at beginning of period 6,413,154 $ 0.31 Granted 1,160,000 $ 0.31 Exercised - $ - Forfeited (232,500 ) $ 0.31 Expired - $ - Outstanding at end of period 7,340,654 $ 0.31 |
Status of warrants outstanding | Warrants Outstanding Warrants Exercisable Range of Exercise Prices Number Outstanding Weighted-Average Remaining Contractual Life Weighted-Average Exercise Price Number Exercisable Weighted-Average Exercise Price $.01-.50 7,340,654 3.1 years $0.31 7,340,654 $0.31 |
2. INVENTORIES (Details)
2. INVENTORIES (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Notes to Financial Statements | ||
Finished goods | $ 64,184 | $ 0 |
Raw materials | 509,807 | 426,927 |
Allowance for obsolete inventory | (390,637) | (390,637) |
Total | $ 183,354 | $ 72,290 |
3. WARRANTY RESERVE (Details)
3. WARRANTY RESERVE (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Notes to Financial Statements | ||
Warranty reserve at beginning of period | $ 140,000 | $ 160,000 |
Costs accrued for additional warranties | 6,622 | 1,001 |
Service obligations honored | (6,622) | (1,001) |
Reduction in accrued estimate | 0 | (20,000) |
Warranty reserve at end of period | $ 140,000 | $ 140,000 |
5. RELATED PARTY TRANSACTIONS (
5. RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Related Party Transactions Details Narrative | |||||
Sales | $ 25,191 | $ 2,593 | $ 56,420 | $ 4,089 | |
Received and recorded advance from Water Science | 612,163 | 612,163 | $ 413,595 | ||
Advances to employees | $ 2,323 | $ 2,323 | $ 1,500 |
8. SUMMARY OF SIGNIFICANT ACC22
8. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Notes to Financial Statements | ||||
Net Loss (numerator) | $ (388,903) | $ (497,495) | $ (757,807) | $ (1,007,075) |
Shares (denominator) | 28,575,371 | 28,575,371 | 28,575,371 | 28,575,371 |
Per share amount | $ (.01) | $ (.02) | $ (.03) | $ (.04) |
8. SUMMARY OF SIGNIFICANT ACC23
8. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Number of Options and Warrants | |
Outstanding at beginning of period | 6,413,154 |
Granted | 1,160,000 |
Exercised | 0 |
Forfeited | (232,500) |
Expired | 0 |
Outstanding at end of period | 7,340,654 |
Weighted Average Exercise Price | |
Outstanding at beginning of period | $ / shares | $ .31 |
Granted | $ / shares | .31 |
Exercised | $ / shares | 0 |
Forfeited | $ / shares | .31 |
Expired | $ / shares | 0 |
Outstanding at end of period | $ / shares | $ .31 |
8. SUMMARY OF SIGNIFICANT ACC24
8. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - $ / shares | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Notes to Financial Statements | ||
Exercise Prices, Range Minimum | $ .01 | |
Exercise Prices, Range Maximum | $ .50 | |
Warrants Outstanding | ||
Number Outstanding | 7,340,654 | 6,413,154 |
Weighted-Average Remaining Contractual Life | 3 years 1 month 6 days | |
Weighted-Average Exercise Price | $ .31 | |
Warrants Exercisable | ||
Number Exercisable | 7,340,654 | |
Weighted-Average Exercise Price | $ .31 |
8. SUMMARY OF SIGNIFICANT ACC25
8. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Notes to Financial Statements | ||
Stock-based compensation expense recognized | $ 0 | $ 484 |