Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Dec. 16, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | Plastic2Oil, Inc. | |
Entity Central Index Key | 0001381105 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 124,756,158 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2019 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
CURRENT ASSETS: | ||
Cash | $ 1,033 | $ 47,808 |
Prepaid expenses and other current assets | 15,583 | 11,575 |
TOTAL CURRENT ASSETS | 16,616 | 59,383 |
Property, plant and equipment, net | 516,595 | 537,190 |
Property held for sale (Note 5) | 180,237 | 180,237 |
Deposits | 18,800 | 18,800 |
TOTAL ASSETS | 732,248 | 795,610 |
CURRENT LIABILITIES: | ||
Accounts payable | 1,880,908 | 1,846,669 |
Accrued expenses | 1,711,928 | 1,688,224 |
Accrued officer salary | 1,380,000 | 1,200,000 |
Secured promissory notes and interest - related parties, current portion | 11,022,843 | 9,924,418 |
Capital leases | 22,868 | 22,210 |
TOTAL CURRENT LIABILITIES | 16,018,547 | 14,681,521 |
LONG-TERM LIABILITIES: | ||
Asset retirement obligations | 69,424 | 67,897 |
Secured promissory notes and accrued interest - related parties | 692,227 | 632,533 |
Secured promissory notes and accrued interest | 142,093 | 130,274 |
TOTAL LONG-TERM LIABILITIES | 903,744 | 830,704 |
TOTAL LIABILITIES | 16,922,291 | 15,512,225 |
STOCKHOLDERS' DEFICIT: | ||
Common stock, par $0.001; 250,000,000 authorized, 124,756,158 shares issued and outstanding | 124,756 | 124,756 |
Additional paid in capital | 67,199,658 | 67,199,658 |
Accumulated other comprehensive income | 87,259 | 154,599 |
Accumulated deficit | (83,601,716) | (82,195,628) |
TOTAL STOCKHOLDERS' DEFICIT | (16,190,043) | (14,716,615) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ 732,248 | $ 795,610 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 124,756,158 | 124,756,158 |
Common stock, shares outstanding | 124,756,158 | 124,756,158 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
OPERATING EXPENSES | ||||
Professional Fees | $ 18,309 | $ 27,834 | $ 87,324 | $ 83,118 |
Compensation | 104,370 | 104,446 | 318,221 | 359,231 |
General and administrative expenses | 35,016 | 51,304 | 117,433 | 181,252 |
Depreciation of property, plant and equipment and accretion of long-term liability | 7,373 | 87,663 | 22,120 | 275,231 |
TOTAL OPERATING EXPENSES | 165,068 | 271,247 | 545,098 | 898,832 |
LOSS FROM OPERATIONS | (165,068) | (271,247) | (545,098) | (898,832) |
OTHER (INCOME) EXPENSES | ||||
Interest expense, net | 292,049 | 254,390 | 861,503 | 736,578 |
Other income , net | (513) | (10,514) | ||
TOTAL OTHER (INCOME) EXPENSES, NET | 292,049 | 254,390 | 860,989 | 726,064 |
(LOSS) BEFORE INCOME TAXES | (457,117) | (525,637) | (1,406,087) | (1,624,896) |
Provision for Income taxes | ||||
NET LOSS | $ (457,117) | $ (525,637) | $ (1,406,087) | $ (1,624,896) |
Basic and diluted loss per share | $ 0 | $ 0 | $ (0.01) | $ (0.01) |
Weighted average number of shares outstanding | 124,756,158 | 124,756,158 | 124,756,158 | 124,756,158 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
NET LOSS | $ (457,117) | $ (525,637) | $ (1,406,087) | $ (1,624,896) |
OTHER COMPREHENSIVE INCOME, NET OF INCOME TAX | ||||
Foreign currency items | 27,886 | (45,612) | 87,259 | 35,500 |
COMPREHENSIVE LOSS | $ (429,231) | $ (571,250) | $ (1,318,828) | $ (1,589,396) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Deficit (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid in Capital [Member] | Accumulated Deficit [Member] | Other Comprehensive Income (Loss) [Member] | Total |
Balance at Dec. 31, 2017 | $ 124,756 | $ 67,176,992 | $ (79,418,137) | $ (28,445) | $ (12,144,834) |
Balance, shares at Dec. 31, 2017 | 124,756,158 | ||||
To book Stock Compensation expense related to granting of stock options at $0.05 | 10,668 | 10,668 | |||
Foreign currency adjustment | 58,066 | 58,066 | |||
Net loss | (580,917) | (580,917) | |||
Balance at Mar. 31, 2018 | $ 124,756 | 67,187,660 | (79,999,054) | 29,621 | (12,657,017) |
Balance, shares at Mar. 31, 2018 | 124,756,158 | ||||
Balance at Dec. 31, 2017 | $ 124,756 | 67,176,992 | (79,418,137) | (28,445) | (12,144,834) |
Balance, shares at Dec. 31, 2017 | 124,756,158 | ||||
Foreign currency adjustment | 35,500 | ||||
Net loss | (1,624,896) | ||||
Balance at Sep. 30, 2018 | $ 124,756 | 67,195,658 | (81,043,033) | 35,550 | (13,687,069) |
Balance, shares at Sep. 30, 2018 | 124,756,158 | ||||
Balance at Mar. 31, 2018 | $ 124,756 | 67,187,660 | (79,999,054) | 29,621 | (12,657,017) |
Balance, shares at Mar. 31, 2018 | 124,756,158 | ||||
To book Stock Compensation expense related to granting of stock options at $0.05 | 3,999 | 3,999 | |||
Foreign currency adjustment | 51,541 | 51,541 | |||
Net loss | (518,342) | (518,342) | |||
Balance at Jun. 30, 2018 | $ 124,756 | 67,191,659 | (80,517,396) | 81,162 | (13,119,819) |
Balance, shares at Jun. 30, 2018 | 124,756,158 | ||||
To book Stock Compensation expense related to granting of stock options at $0.05 | 3,999 | 3,999 | |||
Foreign currency adjustment | (45,612) | (45,612) | |||
Net loss | (525,637) | (525,637) | |||
Balance at Sep. 30, 2018 | $ 124,756 | 67,195,658 | (81,043,033) | 35,550 | (13,687,069) |
Balance, shares at Sep. 30, 2018 | 124,756,158 | ||||
Balance at Dec. 31, 2018 | $ 124,756 | 67,199,658 | (82,195,628) | 154,599 | (14,716,615) |
Balance, shares at Dec. 31, 2018 | 124,756,158 | ||||
Foreign currency adjustment | (46,897) | (46,897) | |||
Net loss | (472,347) | (472,347) | |||
Balance at Mar. 31, 2019 | $ 124,756 | 67,199,658 | (82,667,975) | 107,702 | (15,235,859) |
Balance, shares at Mar. 31, 2019 | 124,756,158 | ||||
Balance at Dec. 31, 2018 | $ 124,756 | 67,199,658 | (82,195,628) | 154,599 | (14,716,615) |
Balance, shares at Dec. 31, 2018 | 124,756,158 | ||||
Foreign currency adjustment | 87,259 | ||||
Net loss | (1,406,087) | ||||
Balance at Sep. 30, 2019 | $ 124,756 | 67,199,658 | (83,601,716) | 87,259 | (16,190,043) |
Balance, shares at Sep. 30, 2019 | 124,756,158 | ||||
Balance at Mar. 31, 2019 | $ 124,756 | 67,199,658 | (82,667,975) | 107,702 | (15,235,859) |
Balance, shares at Mar. 31, 2019 | 124,756,158 | ||||
Foreign currency adjustment | (48,329) | (48,329) | |||
Net loss | (476,624) | (476,624) | |||
Balance at Jun. 30, 2019 | $ 124,756 | 67,199,658 | (83,144,599) | 59,373 | (15,760,812) |
Balance, shares at Jun. 30, 2019 | 124,756,158 | ||||
Foreign currency adjustment | 27,886 | 27,886 | |||
Net loss | (457,117) | (457,117) | |||
Balance at Sep. 30, 2019 | $ 124,756 | $ 67,199,658 | $ (83,601,716) | $ 87,259 | $ (16,190,043) |
Balance, shares at Sep. 30, 2019 | 124,756,158 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Deficit (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 |
Statement of Stockholders' Equity [Abstract] | |||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 |
Shares issued price per share | $ 0.05 | $ 0.05 | $ 0.05 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
NET LOSS | $ (1,406,087) | $ (1,624,896) |
Reconciliation of loss to net cash used in operations: | ||
Depreciation of property plant and equipment | 22,120 | 131,501 |
Accretion of long-term liability | 143,732 | |
Accrued interest expense | 829,427 | 715,933 |
Amortization of debt discount | 10,766 | |
Stock or options issued for services | 18,666 | |
Working capital changes: | ||
Prepaid expenses and other current assets | (4,007) | (17,910) |
Accounts payable | 28,271 | (15,313) |
Accrued expenses and accrued office salary | 203,704 | 216,889 |
NET CASH USED IN OPERATING ACTIVITIES | (315,806) | (431,398) |
CASH FLOW FROM INVESTMENT ACTIVITIES: | ||
Release of restricted cash | 100,524 | |
NET CASH PROVIDED BY INVESTING ACTIVITIES | 100,524 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Cash proceeds from secured promissory notes - related parties | 272,534 | 252,930 |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 272,534 | 252,930 |
Foreign currency exchange effect on cash | (3,503) | |
NET DECREASE IN CASH | (46,775) | (77,944) |
CASH AT BEGINNING OF PERIOD | 47,808 | 172,286 |
CASH AT END OF PERIOD | 1,033 | 94,342 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid for income taxes | ||
Cash paid for interest | $ 48 | $ 16 |
Organization and Going Concern
Organization and Going Concern | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Going Concern | NOTE 1 – ORGANIZATION AND GOING CONCERN Plastic2Oil, Inc. (the “Company” or “P2O”) was originally incorporated as 310 Holdings, Inc. (“310”) in the State of Nevada on April 20, 2006. 310 had no significant activity from inception through 2009. On April 24, 2009, the Company’s founder, former CEO and Chief of Technology, John Bordynuik, purchased 63% of the issued and outstanding shares of 310. During 2009, the Company changed its name to JBI, Inc. and began operations of its main business operation, transforming waste plastics to oil and other fuel products. During 2014, the Company changed its name to Plastic2Oil, Inc. P2O is a combination of proprietary technologies and processes developed by P2O, which convert waste plastics into fuel. P2O currently, as of the date of this filing, has two processors at its Niagara Falls, NY facility (the “Niagara Falls Facility”). Both processors are currently idle, and have been, since December 2013. Our P2O business has begun the transition from research and development to a commercial manufacturing and production business. In the short term, we plan to grow mainly by attempting to re-initiate production by processing fuel, selling processors with a royalty arrangement, licensing technology, and or searching out other revenue generating activities related to the use of our proprietary technology. Longer term, we plan to search out other opportunistic options to fully utilize all of the underlying assets of the Company. Going Concern Currently, we do not have sufficient cash to operate our business, which has forced us to suspend our operations until we receive a capital infusion or cash advances on the sale of our processors. We are currently attempting to raise capital through the sale of assets and or through other means including the use of debt and or equity and equity equivalents that will allow us to re start the production of fuel and provide working capital for the Company. These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which contemplates continuation of the Company as a going concern, which assumes the realization of assets and satisfaction of liabilities and commitments in the normal course of business. The Company has experienced net losses from continuing operations of $1,406,087, and $1,624,896, for the nine months ended September 30, 2019, and 2018, respectively. At September 30, 2019, the Company had a net working capital deficit of $16,001,931, and an accumulated deficit of $83,601,716. These factors raise substantial doubt about the Company’s ability to continue as a going concern and to operate in the normal course of business. The Company has funded its activities to date almost exclusively from equity financings and loans from related parties. For the years ended December 31, 2018 and 2017, the Company’s auditors included a going concern opinion in its report on the Company’s audited financial statements for such periods. The Company will continue to require substantial funds to continue the expansion of its P2O business to achieve commercial productions, and to resume sales and marketing efforts. Management’s plans in order to meet its operating cash flow requirements include financing activities such as private placements of its common stock, issuances of debt and convertible debt instruments. The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts of liabilities that might be necessary should we be unable to continue in existence. |
Summary of Accounting Policies
Summary of Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Accounting Policies | NOTE 2 – SUMMARY OF ACCOUNTING POLICIES Basis of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Plastic2Oil of NY#1 Inc., Plastic2Oil (Canada) Inc., JBI CDE Inc., Plastic2Oil Re One Inc., JBI Re #1 Inc.. The following companies are inactive- Plastic2Oil Marine Inc., Javaco, and Pak-it. All intercompany transactions and balances have been eliminated in consolidation. Amounts in the consolidated financial statements are expressed in US dollars. Interim Disclosure In the opinion of management, the accompanying unaudited condensed financial statements include all adjustments, which are considered necessary for a fair presentation of the results for the periods presented. These condensed consolidated financial statements are presented in considerably less detail than complete financial statements that are intended to present financial position, results of operations, and cash flows in conformity with generally accepted accounting principles. For this reason, they should be read in conjunction with the entity’s most recent complete financial statements included in its annual report for the year ended December 31, 2018 on Form 10-K filed with the Securities and Exchange Commission (the SEC) on June 4, 2019 that include all the disclosures required by generally accepted accounting principles. Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Significant estimates include amounts for impairment of long-lived assets, share based compensation, asset retirement obligations, accrued liabilities, and valuation of options and warrants. Cash and Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. The Company held no cash equivalents at September 30, 2019 or December 31, 2018. Property, Plant and Equipment Property, plant and equipment are recorded at cost. Depreciation is provided using the straight-line method over the estimated useful lives of the various classes of assets, and capital-leased assets are given useful lives coinciding with the asset classification they are classified as follows: Leasehold improvements lesser of useful life or term of the lease Machinery and office equipment 3-15 years Furniture and fixtures 7 years Office and industrial buildings 15 -30 years Gains and losses on depreciable assets retired or sold are recognized in the statements of operations in the year of disposal. Repairs and maintenance expenditures are expensed as incurred and expenditures that increase the value or useful life of the asset are capitalized. Impairment of Long-Lived Assets The Company reviews for impairment of long-lived assets on an asset by asset basis. Impairment is recognized on properties held for use when the expected undiscounted cash flows for a property are less than its carrying amount at which time the property is written-down to fair value. Properties held for sale are recorded at the lower of the carrying amount or the expected sales price less costs to sell. The sale or disposal of a “component of an entity” is treated as discontinued operations. During the nine months ended September 30, 2019 and 2018, the Company did not record any impairment losses on property, plant and equipment. Asset Retirement Obligations The fair value of the estimated asset retirement obligation is recognized in the consolidated balance sheets when identified and a reasonable estimate of fair value can be made. The asset retirement cost, equal to the estimated fair value of the asset retirement obligation, is capitalized as part of the cost of the related long-lived asset. The balance of the asset retirement obligation is determined through an assessment made by the Company’s engineers, of the total costs expected to be incurred by the Company when closing a facility. The total estimated cost is then discounted using the current market rates to determine the present value of the asset as of the date of this valuation. As of the date of the creation of the asset retirement obligation in the amount of $58,363, the Company determined the present value of the obligation using a discount rate equal to 2.96%. The present value of the asset retirement obligation is then capitalized in the condensed consolidated balance sheets and is depreciated over the asset’s estimated useful life and is included in depreciation and accretion expense in the condensed consolidated statements of operations. Increases in the asset retirement obligation resulting from the passage of time are recorded as accretion of asset retirement obligations in the condensed consolidated statements of operations. Actual expenditures incurred are charged against the accumulated obligation. As of September 30, 2019 and December 31, 2018, the carrying value of the asset retirement obligations was $69,424 and $67,897, respectively. These costs include disposal of plastic and other non-hazardous waste, site closing labor, testing, and sampling of the site upon closure. Environmental Contingencies The Company records environmental liabilities at their undiscounted amounts on its balance sheets as other current or long-term liabilities when environmental assessments indicate that remediation efforts are probable and the costs can be reasonably estimated. These costs may be discounted to reflect the time value of money if the timing of the cash payments is fixed or reliably determinable and extends beyond a current period. Estimates of our liabilities are based on currently available facts, existing technology and presently enacted laws and regulations, taking into consideration the likely effects of other societal and economic factors, and include estimates of associated legal costs. These amounts also consider prior experience in remediating contaminated sites, other companies’ clean-up experience and data released by the Environmental Protection Agency (EPA) or other organizations. The company estimates are subject to revision in future periods based on actual costs or new circumstances. We capitalize costs that benefit future periods and we recognize a current period charge in operation and maintenance expense when clean-up efforts do not benefit future periods. We evaluate any amounts paid directly or reimbursed by government sponsored programs and potential recoveries or reimbursements of remediation costs from third parties including insurance coverage separately from our liability. Recovery is evaluated based on the creditworthiness or solvency of the third party, among other factors. When recovery is assured, the company records and reports an asset separately from the associated liability on our balance sheets. No amounts for recovery have been accrued to date. Foreign Currency Translation The condensed consolidated financial statements have been translated into U.S. dollars in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 830. All monetary items have been translated using the exchange rates in effect at the balance sheet date. All non-monetary items have been translated using the historical exchange rates at the time of transactions. Income statement amounts have been translated using the average exchange rate for the year. There were no material foreign exchange gains or losses that are included in the condensed consolidated statements of operations for the nine months ended September 30, 2019 and 2018, respectively. Income Taxes The Company utilizes the asset and liability method to measure and record deferred income tax assets and liabilities. Deferred tax assets and liabilities reflect the future income tax effects of temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and are measured using enacted tax rates that apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. ASC 740-10 prescribes a recognition threshold that a tax position is required to meet before being recognized in the financial statements and provides guidance on recognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition issues. To date, the Company has not been assessed, nor paid, any interest or penalties. Stock-Based Compensation Stock-based compensation is accounted for based on the requirements of ASC 718 – “Compensation –Stock Compensation, , Improvements to Employee Share-Based Payment Accounting. In June 2018, the FASB issued ASU No. 2018-07, Improvements to Nonemployee Share-Based Payment Accounting, Loss Per Share The financial statements include basic and diluted per share information. Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted average number of shares of common stock and potentially outstanding shares of common stock during each period. Common stock equivalents are excluded from the computation of diluted loss per share when their effect is anti-dilutive. For the three and nine months ended September 30, 2019, potential dilutive common stock equivalents consisted 1,600,000 shares underlying common stock warrants and 3,720,000 shares underlying stock options, which were not included in the calculation of the diluted loss per share because their effect was anti-dilutive. For the three and nine months ended September 30, 2018, potential dilutive common stock equivalents consisted 4,600,000 shares underlying common stock warrants and 6,580,000 shares underlying stock options, which were not included in the calculation of the diluted loss per share because their effect was anti-dilutive. Concentrations and Credit Risk Financial instruments, which potentially expose the Company to concentrations of credit risk, consist principally of operating demand deposit accounts and accounts receivable. The Company’s policy is to place our operating demand deposit accounts with high credit quality financial institutions that are insured by the FDIC, however, account balances may at times exceed insured limits. Fair Value of Financial Instruments The carrying amounts of cash, accounts payable, accrued expenses, capital leases, and promissory notes, approximate fair value because of the short-term nature of these items, or prevailing interest rates. Reclassification Certain reclassifications have been made in the prior period’s consolidated financial statements to conform to the current period’s presentation. Such reclassifications had no effect on stockholders’ deficit or net loss. Recently Issued Accounting Pronouncements Management does not believe that there are any recently issued, but not yet effective accounting pronouncements, if adopted, that would have a material effect on the accompanying consolidated financial statements. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | NOTE 3 - PROPERTY, PLANT AND EQUIPMENT, NET Property, Plant and Equipment consist of the following at: As of September 30, 2019 Cost Accumulated Depreciation Net Book Machinery and office equipment $ 47,137 $ (47,060 ) $ 78 Furniture and fixtures 14,166 (14,166 ) - Land 109,203 - 109,203 Asset retirement obligation 58,363 (14,521 ) 43,842 Office and industrial buildings 542,449 (178,977 ) 363,472 Equipment under capital lease 53,257 (53,257 ) - Total $ 824,575 $ (307,981 ) $ 516,595 As of December 31, 2018 Cost Accumulated Depreciation Net Book Machinery and office equipment $ 47,137 $ (47,057 ) $ 80 Furniture and fixtures 14,166 (14,166 ) - Land 109,203 - 109,203 Asset retirement obligation 58,363 (12,497 ) 45,866 Office and industrial buildings 542,449 (160,408 ) 382,481 Equipment under capital lease 53,257 (53,257 ) - Total $ 824,575 $ (287,385 ) $ 537,190 For the nine months ended September 30, 2019 and 2018, the Company recognized $22,120 and $275,231, and for the three months ended September 30, 2019 and 2018, $7,373 and $87,663, respectively, of depreciation expense. At September 30, 2019 and 2018, machinery and equipment with a cost of $53,257 and accumulated amortization of $53,257 and $53,257, respectively, were under capital lease. During the year ended December 31, 2018, we recorded an impairment loss on property, plant and equipment of $635,770 in accordance with ASC 360-10-50-2 due to the carrying amount exceeding the estimated long-lived assets fair value. This impairment loss was primarily attributable to the write down of equipment and office and industrial buildings. Management’s assessment was triggered by the minimal operations of the business. Management estimated the undiscounted cash flows that may be generated from the long-lived assets by estimating their fair value less estimated costs. |
Property Held for Sale
Property Held for Sale | 9 Months Ended |
Sep. 30, 2019 | |
Property Held For Sale | |
Property Held for Sale | NOTE 4 - PROPERTY HELD FOR SALE The Company has offered for sale its land and building of its blending site located in Thorold, Ontario. Canada. The Company no longer requires the land or building as part of its plans to, either assemble and or manufacture, or license its technology. The land and building are currently listed for sale and the Company anticipates a sale in less than twelve (12) months. Accordingly, these assets have been reclassified from property, plant and equipment to property held for sale. The Company has determined the fair value of its property held for sale exceeds its carrying value and no valuation allowance is necessary. The net book value of the land and building of $180,237 has been presented in the accompanying balance sheet as property held for sale at September 30, 2019 and December 31, 2018. |
Secured Promissory Notes - Rela
Secured Promissory Notes - Related Parties | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Secured Promissory Notes - Related Parties | NOTE 5 – SECURED PROMISSORY NOTES - RELATED PARTIES Related Party Secured Promissory Notes, including accrued interest, consists of the following at periods ended: As of As of Secured Demand Promissory Note - $1,664,000 Canadian dollars in 2015 and $505,000 Canadian dollars in 2016, bearing interest of 4% to 12% per annum, respectively, with the company CEO. $ 2,056,605 $ 1,907,636 Secured Demand Promissory Note - $358,850 in February and March of 2015 and $150,000 in February of 2016, bearing interest of 4% to 12% per annum, respectively, with company CEO 660,432 628,382 Secured Demand Promissory Note - $100,000 Canadian dollars in February 16, 2018 bearing interest of 4% per annum, payable on demand and secured by the blending site property located at 1776 Allanport, Road, Thorold, Ontario CA with a company Director 80,531 75,892 Secured Demand Promissory Note - $125,000, July 11, 2018 bearing interest of 4% per annum, payable on demand and secured by the blending site property located at 1776 Allanport Road, Thorold, Ontario CA with a company Director 130,553 126,711 Secured Demand Promissory Note - $125,000 in July 31, 2018 bearing interest of 4% per annum, payable on demand and secured by the blending site property located at 1776 Allanport Road, Thorold, Ontario CA. with a company Director. 130,583 126,740 Secured Demand Promissory Note - $20,000 Canadian dollars in February of 2019 bearing interest of 4% per annum, payable on demand and secured by the blending site property located at 1776 Allanport Road, Thorold, Ontario CA. with a Company Director 15,491 - Secured Demand Promissory Note - $170,000 Canadian dollars in first, second and third quarters of 2019 bearing interest of 4% per annum, payable on demand and secured by the blending site property located at 1776 Allanport Road, Thorold, Ontario CA. with the Company’s CEO 130,386 - Secured Promissory Notes with the company’s CEO ($1,000,000 in November 19, 2014) bearing interest of 12% per annum compounded annually, together with a five-year warrant to purchase up to one million shares of the Company’s common stock at an exercise price of $0.12 per share, and payable upon maturity in 2019 and secured by a security interest in substantially all of the assets of the Company and its subsidiaries. The Secured Promissory Note became past due on November 19, 2019. The Company is currently is discussion with the company’s CEO on extending the Secured Promissory Notes. 1,743,784 1,595,798 Secured Promissory Notes with the company’s CEO - $1,000,000 in August 29, 2013 and $2,000,000 in September 30, 2014) bearing interest of 12% per annum compounded annually, payable upon maturity in 2018 and extended in July of 2019 until December 31, 2020. In consideration for the extension, the Company issued 3,000,000 options with an exercise price of $.02. Loan is secured by a security interest in substantially all of the assets of the Company and its subsidiaries. 5,941,206 5,463,259 Secured Promissory Note -$100,000 in August 24, 2016 bearing interest of 12% per annum compounded annually, together with a five-year warrant to purchase up to one million shares of the Company’s common stock at an exercise price of $0.12 per share, and payable upon maturity in 2021 and secured by a security interest in substantially all of the assets of the Company and its subsidiaries with a company Director. 141,451 129,685 Secured Demand Promissory Note - $170,000 Canadian dollars in the first, second and third quarters of 2019, bearing interest of 4% per annum, payable on demand and secured by the blending site property located at 1776 -Allanport, Road, Thorold, Ontario CA. with a Company Director 130,567 - Secured Promissory Note -$400,000 in October 18, 2016 bearing interest of 12% per annum compounded annually, together with a five-year warrant to purchase up to one million shares of the Company’s common stock at an exercise price of $0.12 per share, and payable upon maturity in 2021 and secured by a security interest in substantially all of the assets of the Company and its subsidiaries with a company Director. 553,481 502,848 Total 11,715,070 10,556,951 Less: Current Portion Short Term Secured Promissory Notes – related parties $ 11,022,843 $ 9,924,418 Long Term Secured promissory notes – related parties $ 692,227 $ 632,533 Continuity of Secured Promissory Notes – Related Party As of As of Face value of secured promissory notes $ 7,268,664 $ 6,996,441 Accrued interest on secured promissory notes payable 4,456,273 3,581,343 Less: Unamortized debt discount (9,867 ) (20,833 ) Carrying value of Secured Promissory Notes – Related parties $ 11,715,070 $ 10,556,951 The following annual payments of principal and interest are required over the next three years in respect to these short term and long term secured promissory notes with related parties: Years Ending December 31, Annual Payments 2019 $ 5,081,637 2020 5,941,206 2021 692,227 Total $ 11,715,070 |
Secured Promissory Note
Secured Promissory Note | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Secured Promissory Note | NOTE 6 – SECURED PROMISSORY NOTE Secured promissory note consists of the following at periods ended: As of As of Secured Promissory Note -$100,000 in August 10, 2016 bearing interest of 12% per annum compounded annually, together with a five-year warrant to purchase up to one million shares of the Company’s common stock at an exercise price of $0.12 per share, and payable upon maturity in 2021 and secured by a security interest in substantially all of the assets of the Company and its subsidiaries. $ 142,093 $ 130,274 Total 142,093 130,274 Less: current portion - - Secured promissory note $ 142,093 $ 130,724 Continuity of Secured Promissory Note As of As of Face value of August 10, 2016 secured promissory note $ 100,000 $ 100,000 Total face value of secured promissory note 100,000 100,000 Discount on August 10, 2016 secured promissory note (100,000 warrants) (2,000 ) (2,000 ) Accretion of discount on secured promissory note ($100,000 ) 1,234 933 Interest on secured promissory note 42,859 31,341 Carrying value of Secured Promissory Note $ 142,093 $ 130,274 The following annual payments of principal and interest are required in respect to these secured notes payable: Years Ending December 31, Annual Payments 2019 - 2020 - 2021 142,093 Total $ 142,093 |
Capital Lease
Capital Lease | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Capital Lease | NOTE 7 - CAPITAL LEASE The Capital Lease consists of the following at periods ending: As of As of Equipment capital lease bears interest at 3.9% per annum, secured by the equipment and matured on May 10, 2016, Principal and interest were due, in their entirety, at maturity. The maturity was extended to May 10, 2016 by the Lessor. The capital lease is in default. $ 22,868 (1) $ 22,210 (1) Total 22,868 22,210 Less: current portion 22,868 22,210 Capital leases $ - $ - (1) Includes accrued interest. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 8 – COMMITMENTS AND CONTINGENCIES Commitments Plastic2Oil Marine, Inc., one of the Company’s subsidiaries, which is currently not operating and presently is inactive, entered into a consulting service contract in 2010 with a company owned by the Company’s chief executive officer. The contract provides the related company with a share of the operating income earned from Plastic2Oil technology installed on marine vessels which are owned by the related company. The contract provides a minimum future payment equal to fifty percent of the operating income generated from the operations of two of the most profitable marine vessel processors and 10% from all other marine vessel processors. As of September 30, 2019 and December 31, 2018, there were no currently installed marine vessel processors pursuant to the contract. Contingencies. As of September 30, 2019, the Company is involved in litigation and claims, which arise from time to time in the normal course of business. In the opinion of management, based upon the information and facts known to them, any liability that may arise from such contingencies would not have a material adverse effect on the unaudited condensed consolidated financial statements of the Company. |
Warrants
Warrants | 9 Months Ended |
Sep. 30, 2019 | |
Warrants and Rights Note Disclosure [Abstract] | |
Warrants | NOTE 9 - WARRANTS The following table summarizes the activities for the period. Warrants The following table summarizes the activities for the quarter ended September 30, 2019 and year ended December 31, 2018: Warrants Number Weighted Average Exercise Price Weighted Average Remaining Term OUTSTANDING, December 31, 2018 1,600,000 $ 0.12 1.09 OUTSTANDING, September 30, 2019 1,600,000 $ 0.12 1.09 There were no warrants issued or expired during the three or nine months ended September 30, 2019. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans and Awards | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans and Awards | NOTE 10 – STOCK-BASED COMPENSATION PLANS AND AWARDS Employee Incentive Plan The Company’s stock incentive plan is administered by the Board of Directors that authorizes the grant or award of incentive stock options, non-qualified stock options (NQSO), restricted stock awards (RSA), stock appreciation rights, dividend equivalent rights, performance unit awards and phantom shares. The Company issues new shares of common stock upon the exercise of stock options. Any shares associated with options forfeited are added back to the number of shares that underlie stock options to be granted under the stock incentive plan. The Company made available 10,000,000 common shares that were registered, approved, and filed on November 17, 2012 for issuance under the plan. The Company has issued non-qualified stock option awards as described below. The Company estimates the fair value of nonqualified stock awards using a Black-Scholes Option Pricing model (“Black-Scholes model”). The fair value of each stock award is estimated on the date of grant using the Black-Scholes model, which requires an assumption of dividend yield, risk free interest rates, volatility, forfeiture rates and expected option life. The risk-free interest rates are based on the U.S. Treasury yield for a period consistent with the expected term of the option in effect at the time of the grant. Expected volatilities are based on the historical volatility of our common stock over the expected option term. The expected term of options granted is based on a review of historical employee termination rates and option exercises. There were 3,500,000 options granted during the three and nine months ended September 30, 2019. Options were granted to employees, a consultant of the Company, the Company’s CEO, and two Directors. As of September 30, 2019, 3,720,000 options were outstanding, of which 220,000 are fully vested and 3,500,000 are not vested. There are 6,280,000 options available for grant as of September 30, 2019. The stock awards were valued using a Black-Scholes model on the date of grant and the follow assumptions: expected term of 5 years, a risk free rate of 2.82%, volatility of 355.41%, and no assumed dividend yield. A summary of stock option activity as of September 30, 2019 and 2018, and changes during the nine month periods ended September 30, 2019 and 2018 are set forth below: Outstanding Stock Weighted- Exercise Aggregate Intrinsic Balance as of December 31, 2018 220,000 $ .41 $ Options Granted 3,500,000 .02 $ Balance as of September 30, 2019 3,720,000 $ 0.04 $ Exercisable as of September 30, 2019 220,000 $ 0.41 $ Outstanding Stock Options Weighted- Aggregate Balance as of December 31, 2017 4,380,000 $ 1.12 $ – Balance as of September 30, 2018 4,380,000 $ 0.42 $ – Exercisable as of September 30, 2018 2,330,000 $ 0.72 $ – (1) There was no intrinsic value associated with options outstanding, exercisable and expected to vest as of September 30, 2019, as the stock price was below the lowest option exercise price or was not vested. Aggregate intrinsic value represents total pretax intrinsic value (the difference between PTO’s closing stock price on September 30, 2019 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on September 30, 2019. The intrinsic value will change based on the fair market value of PTO’s stock. A summary of stock options not yet vested as of September 30, 2019 is set forth below: Number of Options Weighted- Grant-Date Fair Value Non-vested as of January 1, 2019 25,000 $ 0.01 Options Granted 3,500,000 $ 0.02 Vested (25,000 ) $ 0.01 Non-vested as of September 30, 2019 3,500,000 $ 0.02 There were no options granted during the three or nine months ended September 30, 2018. As of September 30, 2018, 4,380,000 options were outstanding of which 2,330,000 were fully vested. As of September 30, 2018, there was $37,333 of unrecognized compensation expense for options outstanding not yet vested. . During the nine month period ended September 30, 2019, there were no NQSOs that were cancelled or forfeited. The weighted-average remaining contractual life of the non-qualified stock options outstanding and exercisable, as of September 30, 2019 were approximately 9.5 years and 4 years, respectively. Share-based compensation represents both stock options based expense and stock grant expense. Stock compensation expense is included in general and administrative expense for the periods then ended. At September 30, 2019, the Company had approximately $70,000 of total unamortized share-based compensation expense, related to stock option plans that will be recognized over the weighted average remaining period of 2 years. |
Related Party Transactions and
Related Party Transactions and Balances | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions and Balances | NOTE 11 – RELATED PARTY TRANSACTIONS AND BALANCES As of September 30, 2019 and December 31, 2018, Richard Heddle, CEO is due $1,380,000 and $1,200,000 in accrued payroll, respectively, which is included in Accrued Officers Salary on the consolidated balance sheets. At September 30, 2019 and December 31, 2018, the company’s accounts payable and accrued expenses included $132,217 outstanding balance due to Heddle Marine Services, a business controlled by Mr. Richard Heddle, the company’s Chief Executive Officer and member of the Company’s board of directors. The amounts payable arose from payments made in 2014 by Heddle Marine on behalf of the Company to a logistics company to transport fuel from the Niagara Falls site to the blending tanks at our facility in Thorold, Ontario, as well as for labor and material provided by Heddle Marine towards upkeep of our Canadian facilities including 2015 cleanup costs incurred in order to terminate the lease with Avondale properties on the discontinued (RRON) Operation. See also Note 5 for secured promissory notes with related parties. Plastic2Oil Marine, Inc., one of the Company’s subsidiaries, which is currently not operating, entered into a consulting service contract in 2010 with a company owned by Mr. Heddle, who later (in 2014) became the Company’s Chief Executive Officer. The contract provides the related company with a share of the operating income earned from Plastic2Oil technology installed on marine vessels which are owned by the related company. The contract provides a minimum future payment equal to fifty percent of the operating income generated from the operations of two of the most profitable marine vessel processors and 10% from all other marine vessel processors. As of September 30, 2019 and December 31, 2018, there were no currently installed marine vessel processors pursuant to the contract. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 12 – SUBSEQUENT EVENTS The Company received $30,000 on October 1, 2019, $15,000 on October 21, 2019, $15,000 on October 29, 2019, $30,000 on November 18, 2019 and $30,000 on November 22, 2019, all in Canadian funds, from the Company’s CEO and Directors in the form of demand secured promissory notes. The advances bear interest at 4%. |
Summary of Accounting Policies
Summary of Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Plastic2Oil of NY#1 Inc., Plastic2Oil (Canada) Inc., JBI CDE Inc., Plastic2Oil Re One Inc., JBI Re #1 Inc.. The following companies are inactive- Plastic2Oil Marine Inc., Javaco, and Pak-it. All intercompany transactions and balances have been eliminated in consolidation. Amounts in the consolidated financial statements are expressed in US dollars. |
Interim Disclosure | Interim Disclosure In the opinion of management, the accompanying unaudited condensed financial statements include all adjustments, which are considered necessary for a fair presentation of the results for the periods presented. These condensed consolidated financial statements are presented in considerably less detail than complete financial statements that are intended to present financial position, results of operations, and cash flows in conformity with generally accepted accounting principles. For this reason, they should be read in conjunction with the entity’s most recent complete financial statements included in its annual report for the year ended December 31, 2018 on Form 10-K filed with the Securities and Exchange Commission (the SEC) on June 4, 2019 that include all the disclosures required by generally accepted accounting principles. |
Estimates | Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Significant estimates include amounts for impairment of long-lived assets, share based compensation, asset retirement obligations, accrued liabilities, and valuation of options and warrants. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. The Company held no cash equivalents at September 30, 2019 or December 31, 2018. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are recorded at cost. Depreciation is provided using the straight-line method over the estimated useful lives of the various classes of assets, and capital-leased assets are given useful lives coinciding with the asset classification they are classified as follows: Leasehold improvements lesser of useful life or term of the lease Machinery and office equipment 3-15 years Furniture and fixtures 7 years Office and industrial buildings 15 -30 years Gains and losses on depreciable assets retired or sold are recognized in the statements of operations in the year of disposal. Repairs and maintenance expenditures are expensed as incurred and expenditures that increase the value or useful life of the asset are capitalized. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews for impairment of long-lived assets on an asset by asset basis. Impairment is recognized on properties held for use when the expected undiscounted cash flows for a property are less than its carrying amount at which time the property is written-down to fair value. Properties held for sale are recorded at the lower of the carrying amount or the expected sales price less costs to sell. The sale or disposal of a “component of an entity” is treated as discontinued operations. During the nine months ended September 30, 2019 and 2018, the Company did not record any impairment losses on property, plant and equipment. |
Asset Retirement Obligations | Asset Retirement Obligations The fair value of the estimated asset retirement obligation is recognized in the consolidated balance sheets when identified and a reasonable estimate of fair value can be made. The asset retirement cost, equal to the estimated fair value of the asset retirement obligation, is capitalized as part of the cost of the related long-lived asset. The balance of the asset retirement obligation is determined through an assessment made by the Company’s engineers, of the total costs expected to be incurred by the Company when closing a facility. The total estimated cost is then discounted using the current market rates to determine the present value of the asset as of the date of this valuation. As of the date of the creation of the asset retirement obligation in the amount of $58,363, the Company determined the present value of the obligation using a discount rate equal to 2.96%. The present value of the asset retirement obligation is then capitalized in the condensed consolidated balance sheets and is depreciated over the asset’s estimated useful life and is included in depreciation and accretion expense in the condensed consolidated statements of operations. Increases in the asset retirement obligation resulting from the passage of time are recorded as accretion of asset retirement obligations in the condensed consolidated statements of operations. Actual expenditures incurred are charged against the accumulated obligation. As of September 30, 2019 and December 31, 2018, the carrying value of the asset retirement obligations was $69,424 and $67,897, respectively. These costs include disposal of plastic and other non-hazardous waste, site closing labor, testing, and sampling of the site upon closure. |
Environmental Contingencies | Environmental Contingencies The Company records environmental liabilities at their undiscounted amounts on its balance sheets as other current or long-term liabilities when environmental assessments indicate that remediation efforts are probable and the costs can be reasonably estimated. These costs may be discounted to reflect the time value of money if the timing of the cash payments is fixed or reliably determinable and extends beyond a current period. Estimates of our liabilities are based on currently available facts, existing technology and presently enacted laws and regulations, taking into consideration the likely effects of other societal and economic factors, and include estimates of associated legal costs. These amounts also consider prior experience in remediating contaminated sites, other companies’ clean-up experience and data released by the Environmental Protection Agency (EPA) or other organizations. The company estimates are subject to revision in future periods based on actual costs or new circumstances. We capitalize costs that benefit future periods and we recognize a current period charge in operation and maintenance expense when clean-up efforts do not benefit future periods. We evaluate any amounts paid directly or reimbursed by government sponsored programs and potential recoveries or reimbursements of remediation costs from third parties including insurance coverage separately from our liability. Recovery is evaluated based on the creditworthiness or solvency of the third party, among other factors. When recovery is assured, the company records and reports an asset separately from the associated liability on our balance sheets. No amounts for recovery have been accrued to date. |
Foreign Currency Translation | Foreign Currency Translation The condensed consolidated financial statements have been translated into U.S. dollars in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 830. All monetary items have been translated using the exchange rates in effect at the balance sheet date. All non-monetary items have been translated using the historical exchange rates at the time of transactions. Income statement amounts have been translated using the average exchange rate for the year. There were no material foreign exchange gains or losses that are included in the condensed consolidated statements of operations for the nine months ended September 30, 2019 and 2018, respectively. |
Income Taxes | Income Taxes The Company utilizes the asset and liability method to measure and record deferred income tax assets and liabilities. Deferred tax assets and liabilities reflect the future income tax effects of temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and are measured using enacted tax rates that apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. ASC 740-10 prescribes a recognition threshold that a tax position is required to meet before being recognized in the financial statements and provides guidance on recognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition issues. To date, the Company has not been assessed, nor paid, any interest or penalties. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation is accounted for based on the requirements of ASC 718 – “Compensation –Stock Compensation, , Improvements to Employee Share-Based Payment Accounting. In June 2018, the FASB issued ASU No. 2018-07, Improvements to Nonemployee Share-Based Payment Accounting, |
Loss Per Share | Loss Per Share The financial statements include basic and diluted per share information. Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted average number of shares of common stock and potentially outstanding shares of common stock during each period. Common stock equivalents are excluded from the computation of diluted loss per share when their effect is anti-dilutive. For the three and nine months ended September 30, 2019, potential dilutive common stock equivalents consisted 1,600,000 shares underlying common stock warrants and 3,720,000 shares underlying stock options, which were not included in the calculation of the diluted loss per share because their effect was anti-dilutive. For the three and nine months ended September 30, 2018, potential dilutive common stock equivalents consisted 4,600,000 shares underlying common stock warrants and 6,580,000 shares underlying stock options, which were not included in the calculation of the diluted loss per share because their effect was anti-dilutive. |
Concentrations and Credit Risk | Concentrations and Credit Risk Financial instruments, which potentially expose the Company to concentrations of credit risk, consist principally of operating demand deposit accounts and accounts receivable. The Company’s policy is to place our operating demand deposit accounts with high credit quality financial institutions that are insured by the FDIC, however, account balances may at times exceed insured limits. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of cash, accounts payable, accrued expenses, capital leases, and promissory notes, approximate fair value because of the short-term nature of these items, or prevailing interest rates. |
Reclassification | Reclassification Certain reclassifications have been made in the prior period’s consolidated financial statements to conform to the current period’s presentation. Such reclassifications had no effect on stockholders’ deficit or net loss. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Management does not believe that there are any recently issued, but not yet effective accounting pronouncements, if adopted, that would have a material effect on the accompanying consolidated financial statements. |
Summary of Accounting Policie_2
Summary of Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Property, Plant and Equipment Useful Life | Depreciation is provided using the straight-line method over the estimated useful lives of the various classes of assets, and capital-leased assets are given useful lives coinciding with the asset classification they are classified as follows: Leasehold improvements lesser of useful life or term of the lease Machinery and office equipment 3-15 years Furniture and fixtures 7 years Office and industrial buildings 15 -30 years |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, Plant and Equipment consist of the following at: As of September 30, 2019 Cost Accumulated Depreciation Net Book Machinery and office equipment $ 47,137 $ (47,060 ) $ 78 Furniture and fixtures 14,166 (14,166 ) - Land 109,203 - 109,203 Asset retirement obligation 58,363 (14,521 ) 43,842 Office and industrial buildings 542,449 (178,977 ) 363,472 Equipment under capital lease 53,257 (53,257 ) - Total $ 824,575 $ (307,981 ) $ 516,595 As of December 31, 2018 Cost Accumulated Depreciation Net Book Machinery and office equipment $ 47,137 $ (47,057 ) $ 80 Furniture and fixtures 14,166 (14,166 ) - Land 109,203 - 109,203 Asset retirement obligation 58,363 (12,497 ) 45,866 Office and industrial buildings 542,449 (160,408 ) 382,481 Equipment under capital lease 53,257 (53,257 ) - Total $ 824,575 $ (287,385 ) $ 537,190 |
Secured Promissory Notes - Re_2
Secured Promissory Notes - Related Parties (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Related Party Notes Payable | Related Party Secured Promissory Notes, including accrued interest, consists of the following at periods ended: As of As of Secured Demand Promissory Note - $1,664,000 Canadian dollars in 2015 and $505,000 Canadian dollars in 2016, bearing interest of 4% to 12% per annum, respectively, with the company CEO. $ 2,056,605 $ 1,907,636 Secured Demand Promissory Note - $358,850 in February and March of 2015 and $150,000 in February of 2016, bearing interest of 4% to 12% per annum, respectively, with company CEO 660,432 628,382 Secured Demand Promissory Note - $100,000 Canadian dollars in February 16, 2018 bearing interest of 4% per annum, payable on demand and secured by the blending site property located at 1776 Allanport, Road, Thorold, Ontario CA with a company Director 80,531 75,892 Secured Demand Promissory Note - $125,000, July 11, 2018 bearing interest of 4% per annum, payable on demand and secured by the blending site property located at 1776 Allanport Road, Thorold, Ontario CA with a company Director 130,553 126,711 Secured Demand Promissory Note - $125,000 in July 31, 2018 bearing interest of 4% per annum, payable on demand and secured by the blending site property located at 1776 Allanport Road, Thorold, Ontario CA. with a company Director. 130,583 126,740 Secured Demand Promissory Note - $20,000 Canadian dollars in February of 2019 bearing interest of 4% per annum, payable on demand and secured by the blending site property located at 1776 Allanport Road, Thorold, Ontario CA. with a Company Director 15,491 - Secured Demand Promissory Note - $170,000 Canadian dollars in first, second and third quarters of 2019 bearing interest of 4% per annum, payable on demand and secured by the blending site property located at 1776 Allanport Road, Thorold, Ontario CA. with the Company’s CEO 130,386 - Secured Promissory Notes with the company’s CEO ($1,000,000 in November 19, 2014) bearing interest of 12% per annum compounded annually, together with a five-year warrant to purchase up to one million shares of the Company’s common stock at an exercise price of $0.12 per share, and payable upon maturity in 2019 and secured by a security interest in substantially all of the assets of the Company and its subsidiaries. The Secured Promissory Note became past due on November 19, 2019. The Company is currently is discussion with the company’s CEO on extending the Secured Promissory Notes. 1,743,784 1,595,798 Secured Promissory Notes with the company’s CEO - $1,000,000 in August 29, 2013 and $2,000,000 in September 30, 2014) bearing interest of 12% per annum compounded annually, payable upon maturity in 2018 and extended in July of 2019 until December 31, 2020. In consideration for the extension, the Company issued 3,000,000 options with an exercise price of $.02. Loan is secured by a security interest in substantially all of the assets of the Company and its subsidiaries. 5,941,206 5,463,259 Secured Promissory Note -$100,000 in August 24, 2016 bearing interest of 12% per annum compounded annually, together with a five-year warrant to purchase up to one million shares of the Company’s common stock at an exercise price of $0.12 per share, and payable upon maturity in 2021 and secured by a security interest in substantially all of the assets of the Company and its subsidiaries with a company Director. 141,451 129,685 Secured Demand Promissory Note - $170,000 Canadian dollars in the first, second and third quarters of 2019, bearing interest of 4% per annum, payable on demand and secured by the blending site property located at 1776 -Allanport, Road, Thorold, Ontario CA. with a Company Director 130,567 - Secured Promissory Note -$400,000 in October 18, 2016 bearing interest of 12% per annum compounded annually, together with a five-year warrant to purchase up to one million shares of the Company’s common stock at an exercise price of $0.12 per share, and payable upon maturity in 2021 and secured by a security interest in substantially all of the assets of the Company and its subsidiaries with a company Director. 553,481 502,848 Total 11,715,070 10,556,951 Less: Current Portion Short Term Secured Promissory Notes – related parties $ 11,022,843 $ 9,924,418 Long Term Secured promissory notes – related parties $ 692,227 $ 632,533 |
Schedule of Secured Promissory Related Party | Continuity of Secured Promissory Notes – Related Party As of As of Face value of secured promissory notes $ 7,268,664 $ 6,996,441 Accrued interest on secured promissory notes payable 4,456,273 3,581,343 Less: Unamortized debt discount (9,867 ) (20,833 ) Carrying value of Secured Promissory Notes – Related parties $ 11,715,070 $ 10,556,951 |
Schedule of Annual Repayments to Related Party | The following annual payments of principal and interest are required over the next three years in respect to these short term and long term secured promissory notes with related parties: Years Ending December 31, Annual Payments 2019 $ 5,081,637 2020 5,941,206 2021 692,227 Total $ 11,715,070 |
Secured Promissory Notes (Table
Secured Promissory Notes (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Secured Debt | Secured promissory note consists of the following at periods ended: As of As of Secured Promissory Note -$100,000 in August 10, 2016 bearing interest of 12% per annum compounded annually, together with a five-year warrant to purchase up to one million shares of the Company’s common stock at an exercise price of $0.12 per share, and payable upon maturity in 2021 and secured by a security interest in substantially all of the assets of the Company and its subsidiaries. $ 142,093 $ 130,274 Total 142,093 130,274 Less: current portion - - Secured promissory note $ 142,093 $ 130,724 |
Schedule of Secured Promissory Notes | Continuity of Secured Promissory Note As of As of Face value of August 10, 2016 secured promissory note $ 100,000 $ 100,000 Total face value of secured promissory note 100,000 100,000 Discount on August 10, 2016 secured promissory note (100,000 warrants) (2,000 ) (2,000 ) Accretion of discount on secured promissory note ($100,000 ) 1,234 933 Interest on secured promissory note 42,859 31,341 Carrying value of Secured Promissory Note $ 142,093 $ 130,274 |
Schedule of Annual Repayments | The following annual payments of principal and interest are required in respect to these secured notes payable: Years Ending December 31, Annual Payments 2019 - 2020 - 2021 142,093 Total $ 142,093 |
Capital Leases (Tables)
Capital Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Mortgages Payable and Capital Leases | The Capital Lease consists of the following at periods ending: As of As of Equipment capital lease bears interest at 3.9% per annum, secured by the equipment and matured on May 10, 2016, Principal and interest were due, in their entirety, at maturity. The maturity was extended to May 10, 2016 by the Lessor. The capital lease is in default. $ 22,868 (1) $ 22,210 (1) Total 22,868 22,210 Less: current portion 22,868 22,210 Capital leases $ - $ - (1) Includes accrued interest. |
Warrants (Tables)
Warrants (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Warrants and Rights Note Disclosure [Abstract] | |
Schedule of Warrants Activity | The following table summarizes the activities for the quarter ended September 30, 2019 and year ended December 31, 2018: Warrants Number Weighted Average Exercise Price Weighted Average Remaining Term OUTSTANDING, December 31, 2018 1,600,000 $ 0.12 1.09 OUTSTANDING, September 30, 2019 1,600,000 $ 0.12 1.09 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans and Awards (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | A summary of stock option activity as of September 30, 2019 and 2018, and changes during the nine month periods ended September 30, 2019 and 2018 are set forth below: Outstanding Stock Weighted- Exercise Aggregate Intrinsic Balance as of December 31, 2018 220,000 $ .41 $ Options Granted 3,500,000 .02 $ Balance as of September 30, 2019 3,720,000 $ 0.04 $ Exercisable as of September 30, 2019 220,000 $ 0.41 $ Outstanding Stock Options Weighted- Aggregate Balance as of December 31, 2017 4,380,000 $ 1.12 $ – Balance as of September 30, 2018 4,380,000 $ 0.42 $ – Exercisable as of September 30, 2018 2,330,000 $ 0.72 $ – (1) There was no intrinsic value associated with options outstanding, exercisable and expected to vest as of September 30, 2019, as the stock price was below the lowest option exercise price or was not vested. Aggregate intrinsic value represents total pretax intrinsic value (the difference between PTO’s closing stock price on September 30, 2019 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on September 30, 2019. The intrinsic value will change based on the fair market value of PTO’s stock. |
Summary of Stock Option Not Yet Vested | A summary of stock options not yet vested as of September 30, 2019 is set forth below: Number of Options Weighted- Grant-Date Fair Value Non-vested as of January 1, 2019 25,000 $ 0.01 Options Granted 3,500,000 $ 0.02 Vested (25,000 ) $ 0.01 Non-vested as of September 30, 2019 3,500,000 $ 0.02 |
Organization and Going Concern
Organization and Going Concern (Details Narrative) - USD ($) | Apr. 24, 2009 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 |
Net loss from continuing operations | $ 457,117 | $ 525,637 | $ 1,406,087 | $ 1,624,896 | ||
Working capital deficit | 16,001,931 | 16,001,931 | ||||
Accumulated deficit | $ (83,601,716) | $ (83,601,716) | $ (82,195,628) | |||
John Bordynuik [Member] | ||||||
Percentage of ownership | 63.00% |
Summary of Accounting Policie_3
Summary of Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Cash equivalents | |||||
Impairment losses on property, plant and equipment | 635,770 | ||||
Asset retirement obligations | 58,363 | $ 58,363 | |||
Percentage of discount rate | 2.96% | ||||
Carrying value of asset retirement obligations | $ 69,424 | $ 69,424 | $ 67,897 | ||
Warrants [Member] | |||||
Antidilutive securities excluded from computation of earnings per share | 1,600,000 | 4,600,000 | 1,600,000 | 4,600,000 | |
Stock Options [Member] | |||||
Antidilutive securities excluded from computation of earnings per share | 3,720,000 | 6,580,000 | 3,720,000 | 6,580,000 |
Summary of Accounting Policie_4
Summary of Accounting Policies - Schedule of Property, Plant and Equipment Useful Life (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Leasehold Improvements [Member] | |
Property plant and equipment useful life description | lesser of useful life or term of the lease |
Machinery and Office Equipment [Member] | Minimum [Member] | |
Property plant and equipment useful life | 3 years |
Machinery and Office Equipment [Member] | Maximum [Member] | |
Property plant and equipment useful life | 15 years |
Furniture and Fixtures [Member] | |
Property plant and equipment useful life | 7 years |
Office and Industrial Buildings [Member] | Minimum [Member] | |
Property plant and equipment useful life | 15 years |
Office and Industrial Buildings [Member] | Maximum [Member] | |
Property plant and equipment useful life | 30 years |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Depreciation expense | $ 7,373 | $ 87,663 | $ 22,120 | $ 275,231 | |
Impairment losses on property, plant and equipment | $ 635,770 | ||||
Machinery and Office Equipment [Member] | |||||
Machinery and equipment cost | 53,257 | 53,257 | 53,257 | 53,257 | |
Accumulated amortization | 53,257 | 53,257 | 53,257 | 53,257 | |
Machinery and equipment cost under capital lease | $ 53,257 | $ 53,257 | $ 53,257 | $ 53,257 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Cost | $ 824,575 | $ 824,575 |
Accumulated Depreciation | (307,981) | (287,385) |
Net Book Value | 516,595 | 537,190 |
Machinery and Office Equipment [Member] | ||
Cost | 47,137 | 47,137 |
Accumulated Depreciation | (47,060) | (47,057) |
Net Book Value | 78 | 80 |
Furniture and Fixtures [Member] | ||
Cost | 14,166 | 14,166 |
Accumulated Depreciation | (14,166) | (14,166) |
Net Book Value | ||
Land [Member] | ||
Cost | 109,203 | 109,203 |
Accumulated Depreciation | ||
Net Book Value | 109,203 | 109,203 |
Asset Retirement Obligation [Member] | ||
Cost | 58,363 | 58,363 |
Accumulated Depreciation | (14,521) | (12,497) |
Net Book Value | 43,842 | 45,866 |
Office and Industrial Buildings [Member] | ||
Cost | 542,449 | 542,449 |
Accumulated Depreciation | (178,977) | (160,408) |
Net Book Value | 363,472 | 382,481 |
Equipment Under Capital Lease [Member] | ||
Cost | 53,257 | 53,257 |
Accumulated Depreciation | (53,257) | (53,257) |
Net Book Value |
Property Held for Sale (Details
Property Held for Sale (Details Narrative) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Property Held For Sale | ||
Net book value of land and building | $ 180,237 | $ 180,237 |
Secured Promissory Notes - Re_3
Secured Promissory Notes - Related Parties - Schedule of Related Party Notes Payable (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Long Term Secured promissory notes - related Parties | $ 142,093 | $ 130,274 | |
Related Party [Member] | |||
Secured debt, total | 11,715,070 | 10,556,951 | |
Less: Current Portion Short Term Secured Promissory Notes - Related Parties | 11,022,843 | 9,924,418 | |
Long Term Secured promissory notes - related Parties | 692,227 | 632,533 | |
Related Party [Member] | Secured Demand Promissory Note 1 [Member] | |||
Secured debt, total | 2,056,605 | 1,907,636 | |
Related Party [Member] | Secured Demand Promissory Note 2 [Member] | |||
Secured debt, total | 660,432 | 628,382 | |
Related Party [Member] | Secured Demand Promissory Note 3 [Member] | |||
Secured debt, total | 80,531 | 75,892 | |
Related Party [Member] | Secured Demand Promissory Note 4 [Member] | |||
Secured debt, total | 130,553 | 126,711 | |
Related Party [Member] | Secured Demand Promissory Note 5 [Member] | |||
Secured debt, total | 130,583 | 126,740 | |
Related Party [Member] | Secured Demand Promissory Note 6 [Member] | |||
Secured debt, total | 15,491 | ||
Related Party [Member] | Secured Demand Promissory Note 7 [Member] | |||
Secured debt, total | 130,386 | ||
Related Party [Member] | Secured Promissory Notes 1 [Member] | |||
Secured debt, total | 1,743,784 | 1,595,798 | |
Related Party [Member] | Secured Promissory Notes 2 [Member] | |||
Secured debt, total | 5,941,206 | 5,463,259 | |
Related Party [Member] | Secured Promissory Notes 3 [Member] | |||
Secured debt, total | 141,451 | 129,685 | |
Related Party [Member] | Secured Demand Promissory Note 8 [Member] | |||
Secured debt, total | 130,567 | ||
Related Party [Member] | Secured Promissory Notes 4 [Member] | |||
Secured debt, total | $ 553,481 | $ 502,848 |
Secured Promissory Notes - Re_4
Secured Promissory Notes - Related Parties - Schedule of Related Party Notes Payable (Details) (Parenthetical) | Oct. 18, 2016USD ($)$ / sharesshares | Aug. 24, 2016USD ($)$ / sharesshares | Sep. 30, 2019$ / sharesshares | Sep. 30, 2018shares | Dec. 31, 2018$ / sharesshares | Sep. 30, 2019CAD ($)shares | Jun. 30, 2019CAD ($) | Mar. 31, 2019CAD ($) | Feb. 28, 2019CAD ($) | Jul. 31, 2018USD ($) | Jul. 11, 2018USD ($) | Feb. 16, 2018CAD ($) | Dec. 31, 2016CAD ($) | Feb. 29, 2016USD ($) | Dec. 31, 2015CAD ($) | Mar. 31, 2015USD ($) | Feb. 28, 2015USD ($) | Nov. 19, 2014USD ($) | Sep. 30, 2014USD ($) | Aug. 29, 2013USD ($) |
Number of options issued | shares | 3,500,000 | |||||||||||||||||||
Options exercise price, per share | $ / shares | $ 0.02 | |||||||||||||||||||
Secured Demand Promissory Note 1 [Member] | CEO [Member] | Minimum [Member] | ||||||||||||||||||||
Debt bearing interest rate per annum | 4.00% | 4.00% | ||||||||||||||||||
Secured Demand Promissory Note 1 [Member] | CEO [Member] | Maximum [Member] | ||||||||||||||||||||
Debt bearing interest rate per annum | 12.00% | 12.00% | ||||||||||||||||||
Secured Demand Promissory Note 1 [Member] | CEO [Member] | CAD [Member] | ||||||||||||||||||||
Secured notes related party | $ 505,000 | $ 1,664,000 | ||||||||||||||||||
Secured Demand Promissory Note 2 [Member] | CEO [Member] | ||||||||||||||||||||
Secured notes related party | $ 150,000 | $ 358,850 | $ 358,850 | |||||||||||||||||
Secured Demand Promissory Note 2 [Member] | CEO [Member] | Minimum [Member] | ||||||||||||||||||||
Debt bearing interest rate per annum | 4.00% | 4.00% | 4.00% | |||||||||||||||||
Secured Demand Promissory Note 2 [Member] | CEO [Member] | Maximum [Member] | ||||||||||||||||||||
Debt bearing interest rate per annum | 12.00% | 12.00% | 12.00% | |||||||||||||||||
Secured Demand Promissory Note 3 [Member] | Director [Member] | ||||||||||||||||||||
Debt bearing interest rate per annum | 4.00% | |||||||||||||||||||
Secured Demand Promissory Note 3 [Member] | Director [Member] | CAD [Member] | ||||||||||||||||||||
Secured notes related party | $ 100,000 | |||||||||||||||||||
Secured Demand Promissory Note 4 [Member] | Director [Member] | ||||||||||||||||||||
Secured notes related party | $ 125,000 | |||||||||||||||||||
Debt bearing interest rate per annum | 4.00% | |||||||||||||||||||
Secured Demand Promissory Note 5 [Member] | Director [Member] | ||||||||||||||||||||
Secured notes related party | $ 125,000 | |||||||||||||||||||
Debt bearing interest rate per annum | 4.00% | |||||||||||||||||||
Secured Demand Promissory Note 6 [Member] | Director [Member] | ||||||||||||||||||||
Debt bearing interest rate per annum | 4.00% | |||||||||||||||||||
Secured Demand Promissory Note 6 [Member] | Director [Member] | CAD [Member] | ||||||||||||||||||||
Secured notes related party | $ 20,000 | |||||||||||||||||||
Secured Demand Promissory Note 7 [Member] | CEO [Member] | ||||||||||||||||||||
Debt bearing interest rate per annum | 4.00% | 4.00% | 4.00% | |||||||||||||||||
Secured Demand Promissory Note 7 [Member] | CEO [Member] | CAD [Member] | ||||||||||||||||||||
Secured notes related party | $ 170,000 | $ 170,000 | $ 170,000 | |||||||||||||||||
Secured Promissory Notes 1 [Member] | CEO [Member] | ||||||||||||||||||||
Secured notes related party | $ 1,000,000 | |||||||||||||||||||
Debt bearing interest rate per annum | 12.00% | 12.00% | ||||||||||||||||||
Warrant term | 5 years | 5 years | ||||||||||||||||||
Warrant to purchase shares of common stock | shares | 1,000,000 | 1,000,000 | ||||||||||||||||||
Warrants exercise price per share | $ / shares | $ 0.12 | $ 0.12 | ||||||||||||||||||
Notes maturity date, decription | Maturity in 2019. | Maturity in 2019. | ||||||||||||||||||
Secured Promissory Notes 2 [Member] | CEO [Member] | ||||||||||||||||||||
Secured notes related party | $ 2,000,000 | $ 1,000,000 | ||||||||||||||||||
Debt bearing interest rate per annum | 12.00% | |||||||||||||||||||
Notes maturity date, decription | Maturity in 2018 and extended in July of 2019 until December 31, 2020. | 2018 and extended in July of 2019 until December 31, 2020 | ||||||||||||||||||
Number of options issued | shares | 3,000,000 | 3,000,000 | ||||||||||||||||||
Options exercise price, per share | $ / shares | $ 0.02 | $ 0.02 | ||||||||||||||||||
Secured Promissory Notes 2 [Member] | Related Party [Member] | ||||||||||||||||||||
Debt bearing interest rate per annum | 12.00% | |||||||||||||||||||
Warrant term | 5 years | |||||||||||||||||||
Secured Promissory Notes 3 [Member] | Director [Member] | ||||||||||||||||||||
Secured notes related party | $ 100,000 | |||||||||||||||||||
Debt bearing interest rate per annum | 12.00% | |||||||||||||||||||
Warrant term | 5 years | |||||||||||||||||||
Warrant to purchase shares of common stock | shares | 1,000,000 | |||||||||||||||||||
Warrants exercise price per share | $ / shares | $ 0.12 | |||||||||||||||||||
Notes maturity date, decription | Maturity in 2021. | |||||||||||||||||||
Secured Demand Promissory Note 8 [Member] | Director [Member] | ||||||||||||||||||||
Debt bearing interest rate per annum | 4.00% | 4.00% | 4.00% | |||||||||||||||||
Secured Demand Promissory Note 8 [Member] | Director [Member] | CAD [Member] | ||||||||||||||||||||
Secured notes related party | $ 170,000 | $ 170,000 | $ 170,000 | |||||||||||||||||
Secured Promissory Notes 4 [Member] | Director [Member] | ||||||||||||||||||||
Secured notes related party | $ 400,000 | |||||||||||||||||||
Debt bearing interest rate per annum | 12.00% | |||||||||||||||||||
Warrant term | 5 years | |||||||||||||||||||
Warrant to purchase shares of common stock | shares | 1,000,000 | |||||||||||||||||||
Warrants exercise price per share | $ / shares | $ 0.12 | |||||||||||||||||||
Notes maturity date, decription | Maturity in 2021. |
Secured Promissory Notes - Re_5
Secured Promissory Notes - Related Parties - Schedule of Secured Promissory Related Party (Details) - Related Party [Member] - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Carrying value of secured promissory notes- related parties | $ 11,715,070 | $ 10,556,951 |
Secured Promissory Notes [Member] | ||
Face value of secured promissory notes | 7,268,664 | 6,996,441 |
Accrued interest on secured promissory notes | 4,456,273 | 3,581,343 |
Less: Unamortized debt discount | (9,867) | (20,833) |
Carrying value of secured promissory notes- related parties | $ 11,715,070 | $ 10,556,951 |
Secured Promissory Notes - Re_6
Secured Promissory Notes - Related Parties - Schedule of Annual Repayments to Related Party (Details) | Sep. 30, 2019USD ($) |
2019 | |
2020 | |
2021 | 142,093 |
Total | 142,093 |
Related Party [Member] | |
2019 | 5,081,637 |
2020 | 5,941,206 |
2021 | 692,227 |
Total | $ 11,715,070 |
Secured Promissory Notes - Sche
Secured Promissory Notes - Schedule of Secured Debt (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Secured promissory notes | $ 142,093 | $ 130,274 |
Secured Notes Payable [Member] | ||
Secured debt, total | 142,093 | 130,274 |
Less: current portion | ||
Secured promissory notes | 142,093 | 130,274 |
Secured Notes Payable [Member] | Secured Promissory Notes [Member] | ||
Secured debt, total | $ 142,093 | $ 130,274 |
Secured Promissory Notes - Sc_2
Secured Promissory Notes - Schedule of Secured Debt (Details) (Parenthetical) - Secured Promissory Notes [Member] | Aug. 10, 2016USD ($)$ / sharesshares |
Secured promissory note | $ | $ 100,000 |
Debt bearing interest | 12.00% |
Warrant term | 5 years |
Warrant to purchase shares of common stock | shares | 1,000,000 |
Warrants exercise price per share | $ / shares | $ 0.12 |
Notes maturity period | Maturity in 2021. |
Secured Promissory Notes - Sc_3
Secured Promissory Notes - Schedule of Secured Promissory Notes (Details) - Secured Notes Payable [Member] - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Total face value of secured promissory notes | $ 100,000 | $ 100,000 |
Accretion of discount on secured promissory note ($100,000 ) | 1,234 | 933 |
Interest on secured notes payable | 42,859 | 31,341 |
Carrying value of Secured Promissory Notes | 142,093 | 130,274 |
August 10, 2016 [Member] | ||
Total face value of secured promissory notes | 100,000 | 100,000 |
Discount on August 10, 2016 secured promissory note (100,000 warrants) | $ (2,000) | $ (2,000) |
Secured Promissory Notes - Sc_4
Secured Promissory Notes - Schedule of Secured Promissory Notes (Details) (Parenthetical) - Secured Promissory Note [Member] - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Accretion of discount | $ 100,000 | $ 100,000 |
August 10, 2016 [Member] | ||
Number of warrant shares | 100,000 | 100,000 |
Secured Promissory Notes - Sc_5
Secured Promissory Notes - Schedule of Annual Repayments (Details) | Sep. 30, 2019USD ($) |
Debt Disclosure [Abstract] | |
2019 | |
2020 | |
2021 | 142,093 |
Total | $ 142,093 |
Capital Leases - Schedule of Mo
Capital Leases - Schedule of Mortgages Payable and Capital Leases (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 | |
Total | $ 22,868 | $ 22,210 | |
Less: current portion | 22,868 | 22,210 | |
Capital leases | |||
Equipment Capital Lease [Member] | |||
Total | [1] | $ 22,868 | $ 22,210 |
[1] | Includes accrued interest. |
Capital Leases - Schedule of _2
Capital Leases - Schedule of Mortgages Payable and Capital Leases (Details) (Parenthetical) - Equipment Capital Lease [Member] | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Debt instrument interest rate | 3.90% | 3.90% |
Debt maturity date | May 10, 2016 | May 10, 2016 |
Notes maturity date, description | The maturity was extended to May 10, 2016 by the Lessor. | The maturity was extended to May 10, 2016 by the Lessor. |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contracts description | The contract provides a minimum future payment equal to fifty percent of the operating income generated from the operations of two of the most profitable marine vessel processors and 10% from all other marine vessel processors. |
Warrants (Details Narrative)
Warrants (Details Narrative) - Warrant [Member] - shares | 3 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Warrants issued | ||
Warrants expired |
Warrants - Schedule of Warrants
Warrants - Schedule of Warrants Activity (Details) - Warrant [Member] | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Number of Shares, Warrants Outstanding Beginning | shares | 1,600,000 |
Number of Shares, Warrants Outstanding Ending | shares | 1,600,000 |
Weighted Average Exercise Price Outstanding Beginning | $ / shares | $ 0.12 |
Weighted Average Exercise Price Outstanding Ending | $ / shares | $ 0.12 |
Weighted Average Remaining Contractual Life Warrants Outstanding, Beginning | 1 year 1 month 2 days |
Weighted Average Remaining Contractual Life Warrants Outstanding Ending | 1 year 1 month 2 days |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans and Awards (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 17, 2012 | |
Number of options granted | 3,500,000 | 3,500,000 | |||||
Number of stock options outstanding | 3,720,000 | 4,380,000 | 3,720,000 | 4,380,000 | 220,000 | 4,380,000 | |
Number of stock options fully vested | 220,000 | 2,330,000 | 220,000 | 2,330,000 | |||
Number of stock options not vested | 3,500,000 | 37,333 | 3,500,000 | 37,333 | 25,000 | ||
Number of shares available for grant | 6,280,000 | 6,280,000 | |||||
Expected term | 5 years | ||||||
Risk free rate | 2.82% | ||||||
Volatility | 355.41% | ||||||
Dividend yield | 0.00% | ||||||
Number of shares forfeited | |||||||
Weighted-average remaining contractual life outstanding | 9 years 6 months | ||||||
Weighted-average remaining contractual life exercisable | 4 years | ||||||
Unamortized share-based compensation expenses | $ 70,000 | ||||||
Weighted average remaining period non-vested | 2 years | ||||||
Employee Incentive Plan [Member] | |||||||
Common stock shares authorized | 10,000,000 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans and Awards - Summary of Stock Option Activity (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | ||
Share-based Payment Arrangement [Abstract] | ||||
Number of Outstanding Stock Options, Beginning Balance | 220,000 | 4,380,000 | 4,380,000 | |
Number of Outstanding Stock Options, Options Granted | 3,500,000 | |||
Number of Outstanding Stock Options, Ending Balance | 3,720,000 | 4,380,000 | 220,000 | |
Number of Outstanding Stock Options, Exercisable | 220,000 | 2,330,000 | ||
Weighted- Average Exercise Price, Beginning | $ 0.41 | $ 1.12 | $ 1.12 | |
Weighted- Average Exercise Price, Options Granted | 0.02 | |||
Weighted- Average Exercise Price, Ending Balance | 0.04 | 0.42 | $ 0.41 | |
Weighted- Average Exercise Price, Exercisable | $ 0.41 | $ 0.72 | ||
Aggregate Intrinsic Value, Share Outstanding, Beginning | [1] | |||
Aggregate Intrinsic Value, Share Outstanding, Ending Balance | [1] | |||
Aggregate Intrinsic Value, Share Exercisable | [1] | |||
[1] | There was no intrinsic value associated with options outstanding, exercisable and expected to vest as of September 30, 2019, as the stock price was below the lowest option exercise price or was not vested. Aggregate intrinsic value represents total pretax intrinsic value (the difference between PTO's closing stock price on September 30, 2019 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on September 30, 2019. The intrinsic value will change based on the fair market value of PTO's stock. |
Stock-Based Compensation Plan_5
Stock-Based Compensation Plans and Awards - Summary of Stock Option Not Yet Vested (Details) | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Share-based Payment Arrangement [Abstract] | |
Number of Options, Non-vested Outstanding, Beginning balance | shares | 25,000 |
Number of Options, Non-vested Options Granted | shares | 3,500,000 |
Number of Options, Vested | shares | (25,000) |
Number of Options, Non-vested Outstanding, Ending balance | shares | 3,500,000 |
Weighted- Average Grant-Date Fair Value, Non-vested Outstanding, Beginning balance | $ / shares | $ 0.01 |
Weighted- Average Grant-Date Fair Value, Non-vested Options Granted | $ / shares | 0.02 |
Weighted- Average Grant-Date Fair Value, Vested | $ / shares | 0.01 |
Weighted- Average Grant-Date Fair Value, Non-vested Outstanding, Ending balance | $ / shares | $ 0.02 |
Related Party Transactions an_2
Related Party Transactions and Balances (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Accrued officer salary | $ 1,380,000 | $ 1,200,000 |
Contract for minimum future payment, description | The contract provides a minimum future payment equal to fifty percent of the operating income generated from the operations of two of the most profitable marine vessel processors and 10% from all other marine vessel processors. As of September 30, 2019 and December 31, 2018, there were no currently installed marine vessel processors pursuant to the contract. | |
Mr. Richard Heddle [Member] | ||
Accrued officer salary | $ 1,380,000 | 1,200,000 |
Mr. Richard Heddle [Member] | Heddle Marine Services [Member] | ||
Accounts payable and accrued expenses | $ 132,217 | $ 132,217 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Subsequent Event [Member] - CEO and Directors [Member] - Secured Promissory Note [Member] - CAD ($) | Dec. 11, 2019 | Nov. 22, 2019 | Nov. 18, 2019 | Oct. 29, 2019 | Oct. 21, 2019 | Oct. 01, 2019 |
Interest rate | 4.00% | |||||
CAD [Member] | ||||||
Secured promissory notes | $ 30,000 | $ 30,000 | $ 15,000 | $ 15,000 | $ 30,000 |