Equator Beverage (MOJO) 10-Q 14 Aug 20 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	6 Months Ended
	Jun. 30, 2020shares
Document And Entity Information
Entity Registrant Name	Mojo Organics, Inc.
Entity Central Index Key	0001414953
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2020
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2020
Entity Shell Company	false
Entity Current Reporting Status	Yes
Entity File Number	000-55269
Entity Interactive Data Current	Yes
Entity Incorporation, State Country Code	DE
Entity Common Stock, Shares Outstanding	29,924,544

Condensed Balance Sheets (Unaud

Condensed Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Current Assets
Cash and cash equivalents	$ 14,878	$ 55,978
Accounts Receivable, net	96,627	75,087
Inventory	213,142	175,719
Supplier deposits	39,000	11,539
Prepaid expenses	18,487	14,767
Security deposit	4,518	4,518
Total Current Assets	386,652	337,608
CURRENT LIABILITIES:
Accounts payable and accrued expenses	125,413	140,854
Accrued Payroll to related parties	14,135	25,394
SBA Loans	35,508	0
Total Current Liabilities	175,056	166,248
STOCKHOLDERS' EQUITY
Common stock, 190,000,000 shares authorized at $0.001 par value, 29,924,544 and 29,351,294 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively	29,924	29,352
Additional paid in capital	23,580,192	23,488,626
Accumulated deficit	(23,398,521)	(23,346,618)
Total Stockholders Equity	211,596	171,360
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 386,652	$ 337,608

Condensed Balance Sheets (Una_2

Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, authorized	190,000,000	190,000,000
Common stock, issued	29,924,544	29,351,294
Common stock, outstanding	29,924,544	29,351,294

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Statement [Abstract]
Revenue	$ 437,878	$ 434,738	$ 877,867	$ 843,235
Cost of Revenue	209,412	229,480	446,462	430,113
Gross Profit	228,465	205,257	431,505	413,122
Operating Expenses
Selling, general and administrative	223,981	302,694	483,633	588,705
Income/(Loss) from Operations	4,485	(97,437)	(52,128)	(175,584)
Other Income	2,219	0	2,219	0
Income/(Loss) Before Provision for Income Taxes	6,704	(97,437)	(49,909)	(175,584)
Provision for Income Taxes	(1,994)	0	(1,994)	0
Net Income/(Loss)	$ 4,710	$ (97,437)	$ (51,903)	$ (175,584)
Net income/(loss) per common share, basic and diluted	$ 0	$ 0	$ 0	$ (0.01)
Weighted average number of common shares outstanding, basic and diluted	29,889,203	28,699,846	29,690,570	28,565,224

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities
Net Loss	$ (51,903)	$ (175,584)
Adjustments to reconcile net loss to net cash provided by/(used in) operating activities:
Stock and warrants issued to directors and employees	97,389	154,390
Change in assets and liabilites:
Increase in accounts receivable	(21,540)	(16,876)
Increase in inventory	(37,424)	(34,280)
Increase in supplier deposits	(27,461)	(20,000)
Increase in prepaid expenses	(3,720)	(5,898)
(Decrease)/Increase in accounts payable and accrued expenses	(17,435)	80,257
(Decrease)/Increase in accrued payroll to related parties	(11,259)	7,674
Net cash used in operating activities	(71,359)	(10,317)
Net cash from financing activities:
Proceeds from SBA Loan	35,508	0
Shares repurchased for cancellation	(5,250)	(750)
Net cash provided by/(used in) financing activities	30,258	(750)
Net decrease in cash and cash equivalents	(41,101)	(11,067)
Cash and cash equivalents at beginning of periods	55,978	24,031
Cash and cash equivalents at end of periods	14,878	12,963
Summary of non-cash investing and financing activity:
Implied value, restricted and Non-Trading shares	$ 97,389	$ 154,390

Condensed Statements of Changes

Condensed Statements of Changes in Stockholders' Equity (Unaudited) - 6 months ended Jun. 30, 2020 - USD ($)	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Beginning balance, Shares at Dec. 31, 2019	29,351,294
Beginning balance, Amount at Dec. 31, 2019	$ 29,352	$ 23,488,626	$ (23,346,618)	$ 171,360
Stock and warrants issued to directors and employees, Shares	598,250
Stock and warrants issued to directors and employees, Amount	$ 598	96,791		97,389
Stock repurchased and cancelled, shares	(25,000)
Stock repurchased and cancelled, Amount	$ (25)	(5,225)		(5,250)
Net loss			(51,903)	(51,903)
Ending balance, Shares at Jun. 30, 2020	29,924,544
Ending balance, Amount at Jun. 30, 2020	$ 29,924	$ 23,580,192	$ (23,398,521)	$ 211,596

Business

Business	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Business	NOTE 1 – BUSINESS Overview MOJO Organics, Inc. (“MOJO” or the “Company”) is a Delaware corporation headquartered in Jersey City, NJ. The Company engages in new product development, production, marketing, distribution and sales of beverage brands that are natural, Non-GMO Project verified, and USDA Organic. The Company’s flagship product is MOJO Pure Coconut Water. In addition to Pure Coconut Water, the Company produces Sparkling Coconut Water, Coconut Water + Mango Juice and Coconut Water + Pineapple Juice. We seek to grow the market share of our products by expanding our hybrid distribution network through the relationships and efforts of our management and third party partners and improved broker network, and new products and packaging in 2020, including pH7 water (pH is a scale of acidity) and energy beverages which are both major sectors of the beverage industry. The company predominantly packages its beverages in 100% recyclable, Eco-Friendly packaging that can be recycled infinite times and is not made from carbon oil based packaging. The packaging has a very low impact on the environment, and does not contribute to landfills and the pollution of our bodies of water. Interim Financial Statements The accompanying unaudited interim condensed financial statements have been prepared pursuant to the rules and regulations for reporting on Form 10-Q and article 10 of Regulation S-X and the related rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures included in these financial statements are adequate to make the information presented not misleading. The unaudited interim condensed financial statements included in this document have been prepared on the same basis as the annual audited financial statements, and in the Company’s opinion, reflect all adjustments necessary for a fair presentation in accordance with GAAP and SEC regulations for interim financial statements. The results for the three months ended March 31, 2020 are not necessarily indicative of the results that the Company will have for any subsequent period. These unaudited condensed financial statements should be read in conjunction with the audited financial statements and the notes to those statements for the year ended December 31, 2019 included in the Company’s Annual Report on Form 10-K.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The financial statements are prepared in conformity with GAAP. Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents Cash equivalents include investment instruments and time deposits purchased with a maturity of three months or less. On June 30, 2020 and December 31, 2019, the Company did not have any cash equivalents. Accounts Receivable Accounts receivable are stated at the amount management expects to collect from outstanding balances. The Company provides for probable uncollectible amounts based upon its assessment of the current status of the individual receivables and after using reasonable collection efforts. The allowance for doubtful accounts as of June 30, 2020 and December 31, 2019 was zero. Inventories Inventories, consisting solely of finished goods, are stated at the lower of cost (first-in, first-out method) or net realizable value (“NRV”). If necessary, the Company provides allowances to adjust the carrying value of its inventories to NRV when NRV is below cost. Revenue Recognition Revenue from sales of products is recognized when the related performance obligation is satisfied. The Company’s performance obligation is satisfied upon the shipment or delivery of products to customers. The Company’s products are sold on cash and credit terms which are established in accordance with standardized industry practices and typically require payment within 30 days of delivery. Costs incurred for sales incentives and discounts are accounted for as reductions in revenue. Deductions from Revenue Costs incurred for sales incentives and discounts are accounted for as reductions in revenue. These costs include payments to customers for performing merchandising activities on our behalf, including in store displays, promotions for new items and obtaining optimum shelf space. Shipping and Handling Costs Shipping and handling costs incurred to move finished goods from our sales distribution centers to customer locations are included in the line Selling, General and Administrative Expenses in our Statements of Operations. Net Income/(Loss) Per Common Share The Company computes per share amounts in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 260, “Earnings per Share”. The following potentially dilutive securities have been excluded from the computation of weighted average shares outstanding as they would have had an anti-dilutive impact on the Company’s net income/(loss) per common share: As of June 30, Issued To Expiration Date No. of Days to Expiration Exercise Price 2020 2019 Shares underlying options outstanding GLENN SIMPSON Apr 6, 2022 645 $ 0.16 505,608 901,796 Shares underlying warrants outstanding WYATTS TORCH Aug 19, 2020 50 $ 0.40 1,500,000 1,500,000 Total 2,005,608 2,401,796 Income Taxes The Company provides for income taxes using the asset and liability approach in accounting for income taxes. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax bases of assets and liabilities and the tax rates in effect when these differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company recognizes interest and penalties related to income tax matters in income tax expense. As of June 30, 2020 and December 31, 2019, the Company had no accrued interest or penalties. The Company has had no Federal or State tax examinations in the past nor does it have any at the current time. As of June 30, 2020 and December 31, 2019, the Company had Net Operating Loss Carryforwards of approximately $4,660,000 and $4,700,000, respectively, and Deferred Tax Assets amounting to approximately $1,330,000 and $1,320,000, respectively, which have been fully reserved by valuation allowances. The Company does not expect any significant reversals in the valuation allowance within the next twelve months. Stock-Based Compensation The Company accounts for equity based transactions under the provisions of ASC Topic 718, “ Accounting for Stock-Based Compensation”. Share based payment awards are measured at the month-end volume weighted average price (VWAP) of the equity instrument that an entity is obligated to issue when the service has been rendered and any other conditions necessary to earn the right to benefit from the instruments have been satisfied. Fair value of financial instruments The carrying amounts of financial instruments, which include cash, accounts receivable, accounts payable and accrued expense, approximate their fair values due to their short-term nature. Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 3 – COMMITMENTS AND CONTINGENCIES The global coronavirus (COVID-19) pandemic has caused disruptions in supply chains, affecting production and sales across a range of industries. While this disruption is currently expected to be temporary, there is considerable uncertainty around the duration. The extent of the impact of COVID-19 on our operational and financial performance will depend on the effect on our customers and vendors – all of which are uncertain and cannot be predicted. The related financial impact cannot be reasonably estimated at this time. Employment Agreements On April 6, 2017, the Company entered into an Amended and Restated Employment Agreement with Mr. Glenn Simpson (the “Simpson Agreement”), the Company’s Chairman and Chief Executive Officer (the “CEO”). The Simpson Agreement was effective April 1, 2017 and has an eight year term. Pursuant to the Simpson Agreement dated April 6, 2017, Mr. Simpson will be paid a salary of $5,000 per month in cash and the right to receive 67,000 shares of restricted Common Stock per month. Pursuant to his employment agreement, Mr. Simpson is entitled to a salary of not less than $18,500 per month. Additionally, Mr. Simpson is entitled to an annual bonus comprised of cash and Common Stock based on the achievement of performance goals established by the Board of Directors of the Company and set forth in the Simpson Agreement. The cash bonus is established at $44,400 per year. The stock bonus is set at 200,000 shares of Common Stock per year through May 31, 2025 based upon achieving revenue performance goals. The revenue goals range from $900,000 to $19,200,000 per year. The bonus awards are accelerated when revenues exceed the annual target amounts. During the six months ended June 30, 2020, the CEO was issued 402,000 Restricted and Non-Trading shares of Common Stock under the terms of the Simpson Agreement for the stock portion of his first and second quarter compensation. During the first quarter of 2020 and for the first and second quarters of 2019, Mr. Simpson did not receive cash payments. Mr. Simpson received cash payments for the second quarter of 2020. He was owed $5,000 and $10,000 as of June 30, 2020 and December 31, 2019, respectively, for the cash portion of his salary. The “Simpson Agreement” is the only executive employment agreement in effect as of June 30, 2020. The Company has no other plans in place and has never maintained any plans that provide for the payment of retirement benefits or benefits that will be paid primarily following retirement including, but not limited to, tax qualified deferred benefit plans, supplemental executive retirement plans, tax-qualified deferred contribution plans and nonqualified deferred contribution plans. Lease Commitment The Company maintains office space in Jersey City, NJ. The initial lease agreement was for the period March 1, 2019 to February 29, 2020 and was renewed for one year under the same terms. In April 2020, the Company was given a 50% discount on the rent for April and May 2020 as well as an optional lease extension for an additional three months under the same terms. The base rent under this agreement is $2,343 per month, and expires May 31, 2021. Lease expense amounted to $4,686 and $6,912 for the six months ended June 30, 2020 and 2019 respectively. The security deposit for the lease agreement is $4,518 and the lease expires on May 31, 2021.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2020
Stockholders' Equity Note [Abstract]
Stockholders' Equity	NOTE 4 – STOCKHOLDERS’ EQUITY The Company has authorized 190,000,000 shares of Common Stock having a par value of $0.001. On February 4, 2019, the Company by a vote of its majority shareholders cancelled the authorization for the issuance of up to 10,000,000 shares of preferred stock. There were no shares of preferred stock issued or outstanding prior to this change. Common Stock outstanding at June 30, 2020 and December 31, 2019 includes a total of 367,204 restricted shares issued in certificate form to a former consultant which were ordered cancelled during 2014. Such shares cannot be cancelled until the physical shares are surrendered to the Company or the Company’s designee and are not otherwise transferable by the holder. Restricted Stock Issuances During the six months ended June 30, 2020, 598,250 shares of Restricted and Non-Trading Common Stock were issued to Directors and Officers of the Company. These shares have full voting rights but are restricted for sale or transfer. The CEO exercised options to purchase 156,250 shares at $0.16 per share for a total exercise price of $25,000 which reduced the accrued salary payable to the CEO by the same amount. The CEO was also issued 402,000 shares of Restricted and Non-Trading Common Stock for the stock portion of his salary for the first and second quarter. A Director was issued 40,000 shares of Common stock as an award for continuing to serve as a Director of the Company. The value of these shares was recorded as a component of compensation expense. Stock Warrants In connection with private placement offerings in March 2014 (the “2014 Offerings”), warrants to purchase 2,030,223 shares of Common Stock were issued at a price of $0.91 per share. These warrants expired on March 12, 2019. In connection with a private placement offering in August 2015 (the “2015 Offerings), warrants to purchase 1,500,000 shares of Common Stock were issued at a price of $0.40 per share. These warrants will expire on August 19, 2020. The following table summarizes warrant activity during the period: Issued To Expiration Date No. of Days to Expiration Exercise Price Options Issued August 19, 2015 WYATTS TORCH Aug 19, 2020 1,828 $ 0.40 1,500,000 Outstanding, June 30, 2020 WYATTS TORCH Aug 19, 2020 50 $ 0.40 1,500,000 Exercisable, June 30, 2020 WYATTS TORCH Aug 19, 2020 50 $ 0.40 1,500,000 Stock Purchased for Cancellation On January 23, 2020 the Company purchased 25,000 shares of its restricted common stock from one shareholder for cancellation. The Company paid $5,250 or $0.21 per share which was the average market price for its traded shares during the period. The shares were cancelled and are available for reissuance.

Stock Options

Stock Options	6 Months Ended
	Jun. 30, 2020
Share-based Payment Arrangement [Abstract]
Stock Options	NOTE 5 – STOCK OPTIONS On April 6, 2017, the Company granted stock options to purchase 356,559 shares and 1,500,000 shares of Common Stock pursuant to the 2012 Incentive Plan and the 2015 Incentive Plan, respectively. The options were priced at the fair market value of the Common Stock and are immediately exercisable. 2012 Incentive Plan On February 18, 2019, the Company’s Board of Directors signed an unanimous consent to terminate the 2012 Incentive Plan, and it was resolved further that 70,000 options to purchase shares of Common Stock be converted into 70,000 shares of Common Stock. It also consented the CEO of the Company to exercise options to purchase 222,000 Restricted and Non-Trading shares of Common Stock at $0.255 per share. The total exercise price was $56,610 and this reduced the loan payable to the CEO by the same amount. The 2012 Incentive Plan was approved by our shareholders in March 2013. The 2012 Incentive Plan provided the Company with the ability to issue stock options, stock appreciation rights, restricted stock and/or other stock-based awards for up to an aggregate of 2,050,000 shares of common stock. In 2016, the Company issued 620,000 stock options to purchase shares of common stock that expire in August 2019, and issued 1,073,441, restricted common stock to its Directors and employees. In 2017, the Company granted stock options to purchase 356,559 shares that expire in April 2022. The options were priced at the fair market value of the Common Stock and are exercisable. In 2018, there were no issuances under the 2012 plan. As of December 31, 2018, issued stock options total 976,559. During 2018, 495,403 stock options had been cancelled due to termination of employment and were available for reissuance at that time. There are no options outstanding from this plan as of June 30, 2020 and December 31, 2019. 2015 Incentive Plan The 2015 Incentive Plan was terminated by the Board of Directors on January 24, 2019. The 2015 Incentive Plan provided the Company with the ability to issue stock options, stock awards and/or restricted stock purchase offers for up to an aggregate of 1,500,000 shares of Common Stock. The Company approved the 2015 Incentive Plan in October 2015. The 2015 Incentive Plan provided the Company with the ability to issue stock options, stock awards and/or restricted stock purchase offers for up to an aggregate of 1,500,000 shares of Common Stock. In April, 2017, the Company granted stock options to purchase 1,500,000 shares of Common Stock pursuant to the 2015 Plan. The options were priced at the fair market value of the Common Stock and were exercisable from the date of issuance. In 2018, there were no issuances under the 2015 plan. As of December 31, 2018, issued stock options total 1,500,000. During 2018, 693,610 stock options had been cancelled due to termination of employment and were available for reissuance at that time. There are 505,609 options outstanding from this plan as of June 30, 2020, and 661,858 options outstanding as of December 31, 2019. Stock Option Activity During February 2019, two of the Company’s Directors surrendered 70,000 stock options and were issued 70,000 shares of Common Stock in exchange. The CEO of the Company was also issued 222,000 Restricted and Non-Trading shares of Common Stock. On August 13, 2019, the Company’s Board of Directors consented the CEO to exercise options to purchase 93,750 Restricted and Non-Trading shares at $0.16 per share. The total exercise value of $15,000 was reduced the loan payable to the CEO to $0. On November 1, 2019, the Company’s Board of Directors consented the CEO to exercise options to purchase 239,938 Restricted and Non-Trading shares at $0.16 per share. The total exercise value of $38,390 was reduced the accrued salary payable to the CEO by the same amount. As of December 31, 2019, there are 661,858 options outstanding that were issued to Glenn Simpson. The exercise price is $0.16. On January 14, 2020 the Company’s Board of Directors consented the CEO to exercise options to purchase 93,750 Restricted and Non-trading shares at $0.16 per share. The total exercise value of $15,000 was reduced the accrued salary payable to the CEO by the same amount. On March 6, 2020 the Company’s Board of Directors consented the CEO to exercise options to purchase 62,500 Restricted and Non-Trading shares at $0.16 per share. The total exercise value was $10,000 and this reduced the accrued salary payable to the CEO to $0. The following table summarizes stock option activity under the Plans: Issued To Expiration Date No. of Days to Expiration Exercise Price Options Outstanding, December 31, 2019 GLENN SIMPSON 4/6/2022 827 $ 0.16 661,858 Exercised GLENN SIMPSON 4/6/2022 736 $ 0.16 (156,250 ) Outstanding, June 30, 2020 GLENN SIMPSON 4/6/2022 645 $ 0.16 505,608 Exercisable, June 30, 2020 GLENN SIMPSON 4/6/2022 645 $ 0.16 505,608 During the six months ended June 30, 2020 and 2019, compensation expense related to stock options was $0. As of June 30, 2020, there was no unrecognized compensation cost related to non-vested stock options.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2020
Related Party Transactions [Abstract]
Related Party Transactions	NOTE 6 – RELATED PARTY TRANSACTIONS On January 14, 2020 the CEO of the Company exercised 93,750 stock options at an exercise price of $0.16. The Company issued 93,750 Restricted and Non-Trading shares of Common Stock, and the accrued payroll owed to him was reduced by $15,000. On March 12, 2020 the $10,000 accrued salary balance was used to pay for an option exercise made by the CEO of the Company. As a result of the transaction, the Company issued 62,500 Restricted and Non-Trading shares of Common Stock to the CEO and the accrued payroll then owed to the CEO was reduced to $0. As of June 30, 2020, accrued payroll of $14,135 was owed to the CEO and the Controller of the Company.

Sba Loans Cares Act

Sba Loans Cares Act	6 Months Ended
	Jun. 30, 2020
Sba Loans Cares Act
Sba Loans Cares Act	NOTE 7 – SBA LOANS “CARES ACT” On May 5, 2020, the Company received loan proceeds in the amount of $35,508 under the Paycheck Protection Program (“PPP”). The PPP, established as part of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), provides for loans to qualifying businesses for amounts up to 2.5 times of the average monthly payroll expenses of the qualifying business. The loans and accrued interest are forgivable after eight weeks as long as the borrower uses the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels. The amount of loan forgiveness will be reduced if the borrower terminates employees or reduces salaries during the eight-week period. If there were an unforgiven portion of the PPP loan, it would be payable over a period of up to two years at an interest rate of 1%, with a deferral of payments for the first six months. The Company’s use of the proceeds is consistent with the PPP. The Company believes that its use of the loan proceeds has met the criteria for forgiveness of the loan. The Company believes that the loan will be forgiven on November 1, 2020 or sooner in accordance with the guidance from the PPP. On May 27, 2020, the Company received grant proceeds in the amount of $2,000 under the Economic Injury Disaster Loan (“EIDL”) Program. The EIDL program was created to assist businesses, renters and homeowners located in regions affected by declared disasters. The Company applied for the EIDL Emergency Advance which provides $1,000 per employee up to a maximum of $10,000. The EIDL Advances are 100% forgivable as long as it is used for providing sick leave benefits to employees, maintaining payroll to retain employees, payments on mortgage, rent and utilities, increased costs to obtain materials from the applicants original source due to interrupted supply chains, and repaying obligations that cannot be met due to revenue losses. The Company’s use of the advance has met the criteria for forgiveness of the advance.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The financial statements are prepared in conformity with GAAP. Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash equivalents include investment instruments and time deposits purchased with a maturity of three months or less. On June 30, 2020 and December 31, 2019, the Company did not have any cash equivalents.
Accounts Receivable	Accounts Receivable Accounts receivable are stated at the amount management expects to collect from outstanding balances. The Company provides for probable uncollectible amounts based upon its assessment of the current status of the individual receivables and after using reasonable collection efforts. The allowance for doubtful accounts as of June 30, 2020 and December 31, 2019 was zero.
Inventories	Inventories Inventories, consisting solely of finished goods, are stated at the lower of cost (first-in, first-out method) or net realizable value (“NRV”). If necessary, the Company provides allowances to adjust the carrying value of its inventories to NRV when NRV is below cost.
Revenue Recognition	Revenue Recognition Revenue from sales of products is recognized when the related performance obligation is satisfied. The Company’s performance obligation is satisfied upon the shipment or delivery of products to customers. The Company’s products are sold on cash and credit terms which are established in accordance with standardized industry practices and typically require payment within 30 days of delivery. Costs incurred for sales incentives and discounts are accounted for as reductions in revenue.
Deductions from Revenue	Deductions from Revenue Costs incurred for sales incentives and discounts are accounted for as reductions in revenue. These costs include payments to customers for performing merchandising activities on our behalf, including in store displays, promotions for new items and obtaining optimum shelf space.
Shipping and Handling Costs	Shipping and Handling Costs Shipping and handling costs incurred to move finished goods from our sales distribution centers to customer locations are included in the line Selling, General and Administrative Expenses in our Statements of Operations.
Net Income/(Loss) Per Common Share	Net Income/(Loss) Per Common Share The Company computes per share amounts in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 260, “Earnings per Share”. The following potentially dilutive securities have been excluded from the computation of weighted average shares outstanding as they would have had an anti-dilutive impact on the Company’s net income/(loss) per common share: As of June 30, Issued To Expiration Date No. of Days to Expiration Exercise Price 2020 2019 Shares underlying options outstanding GLENN SIMPSON Apr 6, 2022 645 $ 0.16 505,608 901,796 Shares underlying warrants outstanding WYATTS TORCH Aug 19, 2020 50 $ 0.40 1,500,000 1,500,000 Total 2,005,608 2,401,796
Income Taxes	Income Taxes The Company provides for income taxes using the asset and liability approach in accounting for income taxes. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax bases of assets and liabilities and the tax rates in effect when these differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company recognizes interest and penalties related to income tax matters in income tax expense. As of June 30, 2020 and December 31, 2019, the Company had no accrued interest or penalties. The Company has had no Federal or State tax examinations in the past nor does it have any at the current time. As of June 30, 2020 and December 31, 2019, the Company had Net Operating Loss Carryforwards of approximately $4,660,000 and $4,700,000, respectively, and Deferred Tax Assets amounting to approximately $1,330,000 and $1,320,000, respectively, which have been fully reserved by valuation allowances. The Company does not expect any significant reversals in the valuation allowance within the next twelve months.
Stock-Based Compensation	Stock-Based Compensation The Company accounts for equity based transactions under the provisions of ASC Topic 718, “ Accounting for Stock-Based Compensation”. Share based payment awards are measured at the month-end volume weighted average price (VWAP) of the equity instrument that an entity is obligated to issue when the service has been rendered and any other conditions necessary to earn the right to benefit from the instruments have been satisfied.
Fair value of financial instruments	Fair value of financial instruments The carrying amounts of financial instruments, which include cash, accounts receivable, accounts payable and accrued expense, approximate their fair values due to their short-term nature.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Schedule Of Antidilutive Securities Excluded From Computation Of Earnings Per Share	The following potentially dilutive securities have been excluded from the computation of weighted average shares outstanding as they would have had an anti-dilutive impact on the Company’s net income/(loss) per common share: As of June 30, Issued To Expiration Date No. of Days to Expiration Exercise Price 2020 2019 Shares underlying options outstanding GLENN SIMPSON Apr 6, 2022 645 $ 0.16 505,608 901,796 Shares underlying warrants outstanding WYATTS TORCH Aug 19, 2020 50 $ 0.40 1,500,000 1,500,000 Total 2,005,608 2,401,796

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2020
Stockholders' Equity Note [Abstract]
Schedule Of Stockholders Equity Note Warrants Or Rights	The following table summarizes warrant activity during the period: Issued To Expiration Date No. of Days to Expiration Exercise Price Options Issued August 19, 2015 WYATTS TORCH Aug 19, 2020 1,828 $ 0.40 1,500,000 Outstanding, June 30, 2020 WYATTS TORCH Aug 19, 2020 50 $ 0.40 1,500,000 Exercisable, June 30, 2020 WYATTS TORCH Aug 19, 2020 50 $ 0.40 1,500,000

Stock Options (Tables)

Stock Options (Tables)	6 Months Ended
	Jun. 30, 2020
Share-based Payment Arrangement [Abstract]
Stock Options Activity	The following table summarizes stock option activity under the Plans: Issued To Expiration Date No. of Days to Expiration Exercise Price Options Outstanding, December 31, 2019 GLENN SIMPSON 4/6/2022 827 $ 0.16 661,858 Exercised GLENN SIMPSON 4/6/2022 736 $ 0.16 (156,250 ) Outstanding, June 30, 2020 GLENN SIMPSON 4/6/2022 645 $ 0.16 505,608 Exercisable, June 30, 2020 GLENN SIMPSON 4/6/2022 645 $ 0.16 505,608

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Antidilutive Securities Excluded From Computation Of Earnings Per Share (Details) - $ / shares	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Number of securities	2,005,608	2,401,796
Stock Options | Glenn Simpson
Expiration Date	Apr. 6, 2022
Number of securities		901,796
Stock Options | Glenin Simpson
No. of Days to Expiration	645 days
Exercise Price	$ 0.16
Number of securities	505,608
Warrants | Wyatts Torch
Expiration Date	Aug. 19, 2020
No. of Days to Expiration	50 days
Exercise Price	$ 0.40
Number of securities	1,500,000	1,500,000

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Cash equivalents	$ 0	$ 0
Allowance for doubtful accounts	0	0
Net Operating Loss Carryforward	4,660,000	4,700,000
Allowance for Deferred Tax Assets	$ 1,330,000	$ 1,320,000

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Mar. 12, 2020	Dec. 31, 2019
Monthly office fee	$ 2,343
Lease expense	4,686	$ 6,912
Security deposit	$ 4,518			$ 4,518
Lease expiration date	May 31, 2021
Discount on rent	50.00%
CEO
Employment Agreement terms	Pursuant to the Simpson Agreement dated April 6, 2017, Mr. Simpson will be paid a salary of $5,000 per month in cash and the right to receive 67,000 shares of restricted Common Stock per month. Pursuant to his employment agreement, Mr. Simpson is entitled to a salary of not less than $18,500 per month. Additionally, Mr. Simpson is entitled to an annual bonus comprised of cash and Common Stock based on the achievement of performance goals established by the Board of Directors of the Company and set forth in the Simpson Agreement. The cash bonus is established at $44,400 per year. The stock bonus is set at 200,000 shares of Common Stock per year through May 31, 2025 based upon achieving revenue performance goals. The revenue goals range from $900,000 to $19,200,000 per year. The bonus awards are accelerated when revenues exceed the annual target amounts.
Common stock issued	402,000
Accrued salary	$ 5,000		$ 10,000	$ 10,000

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule Of Stockholders Equity Note Warrants Or Rights (Details) - Warrants - Wyatts Torch	6 Months Ended
	Jun. 30, 2020$ / sharesshares
Warrnts issued Expiration Date	Aug. 19, 2020
Warrants Outstanding at end Expiration Date	Aug. 19, 2020
Warrants Exercisable Expiration Date	Aug. 19, 2020
Warrnts issued, No. of Days to Expiration	1828 days
Warrants Outstanding, No. of Days to Expiration	50 days
Warrants Exercisable, No. of Days to Expiration	50 days
Warrnts issued, Exercise Price | $ / shares	$ .40
Warrants Outstanding, Exercise Price | $ / shares	0.40
Warrants Exercisable, Exercise Price | $ / shares	$ 0.40
Warrnts issued | shares	1,500,000
Warrants Outstanding at end | shares	1,500,000
Warrants Exercisable | shares	1,500,000

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - USD ($)	Mar. 12, 2020	Jan. 14, 2020	Nov. 01, 2019	Aug. 13, 2019	Jan. 23, 2020	Feb. 18, 2019	Jun. 30, 2020	Dec. 31, 2019
Common Stock, Shares Authorized							190,000,000	190,000,000
Common Stock, Par or Stated Value Per Share (in Dollars per share)							$ 0.001	$ 0.001
Common stock description							Common Stock outstanding at June 30, 2020 and December 31, 2019 includes a total of 367,204 restricted shares issued in certificate form to a former consultant which were ordered cancelled during 2014. Such shares cannot be cancelled until the physical shares are surrendered to the Company or the Company’s designee and are not otherwise transferable by the holder
Stock option exercised, value				$ 15,000
Stock repurchased and cancelled, shares					(25,000)
Value of stock repurchased					$ 5,250
March 2014 Private Placement
Warrants issued							2,030,223
Exercise price, per share							$ 0.91
Warrants expiration date							Mar. 12, 2019
August 2015 Private Placement
Warrants issued							1,500,000
Exercise price, per share							$ 0.40
Warrants expiration date							Aug. 19, 2020
Directors
Common stock issued							598,250
Stock option exercised, value			$ 38,390
CEO
Exercise price, per share	$ 0.16	$ 0.16				$ 0.255	$ 0.16
Common stock issued							402,000
Stock option exercised, shares							156,250
Stock option exercised, value	$ 10,000	$ 15,000				$ 56,610	$ 25,000
Stock issued for compensation							40,000

Stock Options - Stock Option Ac

Stock Options - Stock Option Activity (Details) - Glenn Simpson - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Stock Optiones Exercisable. Weighted Average Exercise Price		$ 0.16
Stock Optiones Exercisable		661,858
Stock Options
Stock Options Outstanding, Expiration Date	Apr. 6, 2022
Stock Options Exercised, Expiration Date	Apr. 6, 2022
Stock Options Exercisable, Expiration Date	Apr. 6, 2022
Stock Options Outstanding, Weighted Average Remaing Contractual Term	645 days	827 days
Stock Optiones Exercised	736 days
Stock Optiones Exercisable, Weighted Average Remaining Contractual Term	645 days
Stock Options Exercised, Weighted Average Exercise Price	$ 0.16
Stock Options Outstanding at end, Weighted Average Exercise Price	0.16
Stock Optiones Exercisable. Weighted Average Exercise Price	$ 0.16
Stock Options Exercised	(156,250)
Stock Options Outstanding at beginning	505,608
Stock Optiones Exercisable	505,608

Stock Options (Details Narrativ

Stock Options (Details Narrative) - USD ($)	Mar. 12, 2020	Jan. 14, 2020	Nov. 01, 2019	Aug. 13, 2019	Feb. 28, 2019	Feb. 18, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2017	Apr. 06, 2017	Dec. 31, 2016	Oct. 31, 2015	Dec. 31, 2013
Compensation expense							$ 0	$ 0
Unrecognized compensation cost										$ 0
Options converted						70,000
Common stock issued upon conversion of options						70,000
Options exercised				93,750
Stock option exercised, value				$ 15,000
Directors
Warrants issued													1,073,441
CEO
Exercise price, per share	$ 0.16	$ 0.16				$ 0.255	$ 0.16
Options exercised	62,500	93,750			222,000
Stock Options Exercisable						222,000
Stock option exercised, value	$ 10,000	$ 15,000				$ 56,610	$ 25,000
Reduction in accrued payroll	$ 0	$ 15,000
Directors
Options converted					70,000
Common stock issued upon conversion of options					70,000
Options exercised			239,938
Stock option exercised, value			$ 38,390
Stock Options Exercisable. Weighted Average Exercise Price			$ 0.1	$ 0.16
Glenn Simpson
Stock Options Exercisable										661,858
Stock Options Exercisable. Weighted Average Exercise Price										$ 0.16
Employee Stock Option | Long Term Incentive Equity Plan 2015
Stock Options granted												1,500,000		1,500,000
Stock options cancelled									693,610
Stock options available to be issued									693,610
Stock Options Outstanding							505,609			661,858
Employee Stock Option | Long Term Incentive Equity Plan 2012
Stock Options granted												356,559			2,050,000
Warrants issued									976,559		356,559		620,000
Stock options cancelled									495,403
Stock options available to be issued									495,403
Stock Options Outstanding							0			0

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	Mar. 12, 2020	Jan. 14, 2020	Aug. 13, 2019	Feb. 28, 2019	Jun. 30, 2020	Dec. 31, 2019
Options exercised			93,750
Accrued Payroll					$ 125,413	$ 140,854
CEO
Options exercised	62,500	93,750		222,000
Options exercised, par value		$ 0.16
Reduction in accrued payroll	$ 0	$ 15,000
Accrued Payroll					14,135
Accrued salary	$ 10,000				$ 5,000	$ 10,000

Sba Loans Cares Act (Details Na

Sba Loans Cares Act (Details Narrative) - USD ($)	May 05, 2020	May 27, 2020	Jun. 30, 2020	Dec. 31, 2019
Sba Loans Cares Act Details Narrative Abstract
SBA Loans under Paycheck Protection Program	$ 35,508		$ 35,508	$ 0
Amount received under EDIL		$ 2,000
Emergency advance description		The Company applied for the EIDL Emergency Advance which provides $1,000 per employee up to a maximum of $10,000.
Interest rate	1.00%
Term	2 years