Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 15, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-53574 | |
Entity Registrant Name | Basanite, Inc. | |
Entity Central Index Key | 0001448705 | |
Entity Tax Identification Number | 20-4959207 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 2041 NW 15th Avenue | |
Entity Address, City or Town | Pompano Beach | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33069 | |
City Area Code | (954) | |
Local Phone Number | 532-4653 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 253,217,402 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
CURRENT ASSETS | ||
Cash | $ 58,893 | $ 109,514 |
Accounts receivable, net | 24,256 | 7,817 |
Inventory | 317,972 | 714,655 |
Prepaid expenses | 104,805 | 127,806 |
Deposits and other current assets | 253,436 | 265,553 |
TOTAL CURRENT ASSETS | 759,362 | 1,225,345 |
Lease right-of-use asset, operating | 605,621 | 749,116 |
Lease right-of-use asset, financing, related-party | 451,050 | |
Fixed assets, net | 3,462,492 | 3,236,825 |
TOTAL NON CURRENT ASSETS | 4,519,163 | 3,985,941 |
TOTAL ASSETS | 5,278,525 | 5,211,286 |
CURRENT LIABILITIES | ||
Accounts payable | 1,469,978 | 1,175,682 |
Accrued expenses | 890,932 | 407,454 |
Accrued legal liability | 165,000 | 165,000 |
Subscription liability | 1,300,000 | |
Notes payable | 500,515 | 466,762 |
Notes payable - related party | 300,000 | 300,000 |
Notes payable - convertible - related party, net | 1,689,745 | 1,689,745 |
Lease liability – operating, current portion | 357,080 | 325,339 |
Lease liability – financing, related party, current portion | 3,892 | |
TOTAL CURRENT LIABILITIES | 6,677,142 | 4,529,982 |
Lease liability – operating, net of current portion | 312,781 | 499,546 |
Lease liability – financing, related party, net of current portion | 445,257 | |
TOTAL LIABILITIES | 7,435,180 | 5,029,528 |
STOCKHOLDERS’ (DEFICIT) EQUITY | ||
Preferred stock, $0.001 par value, 5,000,000 shares authorized, none issued and outstanding | ||
Common stock, $0.001 par value, 1,000,000,000 shares authorized, 251,884,069 and 248,840,144 shares issued and outstanding, respectively | 251,885 | 248,842 |
Additional paid-in capital | 47,177,393 | 46,054,126 |
Accumulated deficit | (49,585,933) | (46,121,210) |
TOTAL STOCKHOLDERS' (DEFICIT) EQUITY | (2,156,655) | 181,758 |
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | $ 5,278,525 | $ 5,211,286 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 251,884,069 | 248,840,144 |
Common stock, shares outstanding | 251,884,069 | 248,840,144 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue | ||||
Products sales - rebar | $ 288,050 | $ 15,549 | $ 546,339 | $ 19,685 |
Total cost of goods sold | 611,163 | 19,493 | 1,196,974 | 20,809 |
Gross (loss) | (323,113) | (3,944) | (650,635) | (1,124) |
OPERATING EXPENSES | ||||
Sales, general, and administrative | 1,035,717 | 1,447,580 | 2,083,095 | 2,512,447 |
Total operating expenses | 1,035,717 | 1,447,580 | 2,083,095 | 2,512,447 |
NET LOSS FROM OPERATIONS | (1,358,830) | (1,451,524) | (2,733,730) | (2,513,571) |
OTHER INCOME (EXPENSE) | ||||
Gain on settlement of legal contingency | 320,037 | 344,522 | ||
Liquidated damages – loan commitment | (403,643) | (426,759) | ||
Miscellaneous income | 3,116 | 3,116 | ||
Loss on extinguishment of debt | (3,056,892) | (6,743,015) | ||
Gain on loan forgiveness | 124,143 | |||
Interest expense | (181,589) | (133,211) | (304,234) | (205,874) |
Total other income (expense) | (585,232) | (2,866,950) | (730,993) | (6,477,108) |
NET LOSS | $ (1,944,062) | $ (4,318,474) | $ (3,464,723) | $ (8,990,679) |
Net loss per share – basic | $ (0.01) | $ (0.02) | $ (0.01) | $ (0.04) |
Net loss per share – diluted | $ (0.01) | $ (0.02) | $ (0.01) | $ (0.04) |
Weighted average number of shares outstanding – basic | 251,800,462 | 227,837,337 | 250,996,454 | 227,115,792 |
Weighted average number of shares outstanding – diluted | 251,800,462 | 227,837,337 | 250,996,454 | 227,115,792 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (UNAUDITED) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2020 | $ 224,838 | $ 28,714,488 | $ (29,643,387) | $ (704,061) |
Beginning balance, Shares at Dec. 31, 2020 | 224,836,785 | |||
Warrants exercised for cash | $ 1,000 | 122,500 | 123,500 | |
Warrants exercised for cash, Shares | 1,000,000 | |||
Stock-based compensation | $ 600 | 173,400 | 174,000 | |
Stock-based compensation, shares | 600,000 | |||
Stock issued for cash, net of costs of $50,409 | $ 450 | 89,550 | 90,000 | |
Stock issued for cash, shares | 450,000 | |||
Warrants issued | 3,686,123 | 3,686,123 | ||
Net loss | (4,672,205) | (4,672,205) | ||
Ending balance, value at Mar. 31, 2021 | $ 226,888 | 32,786,061 | (34,315,592) | (1,302,643) |
Ending balance, Shares at Mar. 31, 2021 | 226,886,785 | |||
Stock-based compensation | $ 900 | 554,625 | 555,525 | |
Stock-based compensation, shares | 900,000 | |||
Stock issued for cash, net of costs of $50,409 | $ 735 | 241,041 | 241,776 | |
Stock issued for cash, shares | 735,669 | |||
Warrants issued | 3,362,091 | 3,362,091 | ||
Net loss | (4,318,474) | (4,318,474) | ||
Ending balance, value at Jun. 30, 2021 | $ 228,523 | 36,943,818 | (38,634,066) | (1,461,725) |
Ending balance, Shares at Jun. 30, 2021 | 228,522,454 | |||
Beginning balance, value at Dec. 31, 2021 | $ 248,842 | 46,054,126 | (46,121,210) | 181,758 |
Beginning balance, Shares at Dec. 31, 2021 | 248,840,144 | |||
Stock issued for cash, net of costs of $50,409 | $ 2,121 | 647,470 | 649,591 | |
Stock issued for cash, shares | 2,121,212 | |||
Stock issued for exercise of warrants | $ 500 | 124,500 | 125,000 | |
Stock issued for exercise of warrants, shares | 500,000 | |||
Stock issued to service provider | $ 300 | 57,600 | 57,900 | |
Stock issued to service provider, shares | 300,000 | |||
Warrants issued to management | 169,565 | 169,565 | ||
Net loss | (1,520,661) | (1,520,661) | ||
Ending balance, value at Mar. 31, 2022 | $ 251,763 | 47,053,261 | (47,641,871) | (336,847) |
Ending balance, Shares at Mar. 31, 2022 | 251,761,356 | |||
Shares issued to related party for services | $ 122 | 18,162 | 18,284 | |
Shares issued to related party for services, shares | 122,713 | |||
Vesting of warrants issued to management | 41,706 | 41,706 | ||
Warrants issued to Related Party for services provided | 64,264 | 64,264 | ||
Net loss | (1,944,062) | (1,944,062) | ||
Ending balance, value at Jun. 30, 2022 | $ 251,885 | $ 47,177,393 | $ (49,585,933) | $ (2,156,655) |
Ending balance, Shares at Jun. 30, 2022 | 251,884,069 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (UNAUDITED) (Parenthetical) | 3 Months Ended |
Mar. 31, 2022 USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Net of cost | $ 50,409 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (3,464,723) | $ (8,990,679) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Lease right-of-use asset amortization | 143,495 | 122,501 |
Lease right-of-use asset amortization, financing lease, related party | (1,050) | |
Depreciation and amortization | 67,165 | 63,925 |
Gain on settlement of legal contingency | (344,522) | |
Loss on extinguishment of debt | 6,743,015 | |
Loan forgiveness | (124,143) | |
Stock-based compensation | 426,856 | 729,525 |
Changes in operating assets and liabilities: | ||
Prepaid expenses | (18,383) | (89,632) |
Inventory | 396,683 | (231,584) |
Accounts receivable | (16,439) | (208,930) |
Deposits and other current assets | 12,117 | |
Accounts payable and accrued expenses | 1,227,774 | 203,873 |
Subscription liability | 1,300,000 | (40,000) |
Lease liability, operating leases | (155,024) | (127,850) |
Net cash used in operating activities | (81,529) | (2,294,501) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of equipment | (742,832) | (270,330) |
Net cash used in investing activities | (742,832) | (270,330) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Lease liability, financing lease – related party | (851) | |
Proceeds from sale of common stock, net of costs | 649,591 | 331,776 |
Proceeds from exercise of warrants | 123,500 | |
Proceeds from exercise of stock options | 125,000 | |
Proceeds of convertible notes payable and convertible notes payable related party | 579,741 | |
Repayments of convertible notes payable and convertible notes payable related party | (35,000) | |
Proceeds from notes payable and notes payable related party | 1,391,194 | |
Repayments of notes payable and notes payable related party | (8,485) | |
Net cash provided by financing activities | 773,740 | 2,382,726 |
NET INCREASE (DECREASE) IN CASH | (50,621) | (182,105) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 109,514 | 259,505 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 58,893 | 77,400 |
Supplemental cash flow information: | ||
Cash paid for income taxes | ||
Cash paid for interest | 4,016 | |
Forgiveness of Paycheck Protection Program loan and accrued interest | 124,143 | |
Supplemental disclosure of non cash investing and financing activities: | ||
Common stock issued for services | 57,900 | |
Issuance of warrants for services | 64,264 | 64,045 |
Conversion of note payable in exchange for warrants | 305,199 | |
Accounts payable paid by financing lease, related party | $ 450,000 |
ORGANIZATION, NATURE OF BUSINES
ORGANIZATION, NATURE OF BUSINESS AND GOING CONCERN | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION, NATURE OF BUSINESS AND GOING CONCERN | NOTE 1 – ORGANIZATION, NATURE OF BUSINESS AND GOING CONCERN (A) Description of Business Basanite, Inc., a Nevada corporation (the “Company”, “Basanite”, “we”, “us”, “our” or similar terminology), through our wholly owned subsidiary, Basanite Industries, LLC, a Delaware limited liability company (“BI”), manufactures a range of “green” (environmentally friendly), sustainable, non-corrosive, lightweight, composite products used in concrete reinforcement by the construction industry. Our core product is BasaFlex™, a basalt fiber reinforced polymer reinforcing bar (“rebar”) which we believe is a stronger, lighter, sustainable, non-conductive and corrosion-proof alternative to traditional steel. Our two other main product lines are BasaMix™, which are fine denier basalt fibers available in various sizes, and BasaMesh™, a line of Basalt Geogrid Mesh Rolls, intended to replace welded wire mesh (made of steel) and other fiber reinforced polymer (“FRB”) grids and mesh. BasaMix™ is designed to help absorb the stresses associated with early-aged plastic shrinkage and settlement cracking in concrete, as well as providing an increased toughness for enhanced reinforcement in Slab-on-Grade (“SOG”) and precast elements. BasaMix™ also serves in a “system approach” for optimum performance of a concrete element when used in conjunction with our BasaFlex™ rebar. BasaMesh™ is designed for secondary and temperature shrinkage reinforcement. BasaMesh™ can also work in conjunction with the BasaFlex™ rebar or BasaMix™ for a total reinforcement program. Each of our products is specifically designed to extend the lifecycle of concrete products by eliminating “concrete spalling.” Spalling results from the steel reinforcing materials embedded within the concrete member rusting (contrary to popular belief, concrete is porous and water can permeate into concrete). Rusting leads to the steel expanding and eventually causing the surrounding concrete to delaminate, crack, or even break off, resulting in potential structural failure. We believe that each Basanite product addresses this important need along with other key requirements in today’s construction market. (B) Liquidity and Management Plans Since inception, the Company has incurred net operating losses and used cash in operations. As of June 30, 2022, and December 31, 2021, respectively, the Company reported: · an accumulated deficit of $ 49,585,933 46,121,210 · a working capital deficiency of $ 5,917,780 3,304,637 · cash used in operations of $ 81,529 2,294,501 Losses have principally occurred as a result of the substantial resources required for product research and development, establishment and upgrading of our manufacturing facility and equipment, and for certification, government approval and marketing of the Company’s products; including the general and administrative expenses associated with the organization. While we have generated relatively little revenue to date, revenue from sales of product began to increase during the first half of 2022 (including the quarter ended June 30, 2022), and we continue to receive inquiries and solicit orders from a range of customers for our products, indicating what we believe is a significant level of market interest for BasaFlex™ and BasaMix ™ products. We also spent time and resources during the first half of 2022 in introducing our products to, and receiving approvals and certifications from, various county and local government agencies to have our products used in such agencies’ construction projects, While the Company plans to expand its manufacturing capacity during 2022, based on our current limited manufacturing capacity there is no guarantee that orders secured from marketing and governmental approval activities will actually be received or that orders, if received, can be properly fulfilled. We have historically satisfied our working capital requirements through the sale of restricted Common Stock of the Company, $ 0.001 These conditions raise substantial doubt about the Company’s ability to continue as a going concern. These condensed consolidated financial statements do not include any adjustments to reflect the possible future effect on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the outcome of these uncertainties. At June 30, 2022, the Company had cash of $ 58,893 109,514 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (A) Use of Estimates in Financial Statements The presentation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Stock-based compensation and stock awards related to convertible debt instruments are recognized based on the fair value of the awards granted. The fair value of each award or conversion feature is typically estimated on the grant date using the Black-Scholes pricing model. The Black-Scholes pricing model requires the input of highly subjective assumptions, including the fair value of the underlying Common Stock, the expected term of the option, the expected volatility of the price of our Common Stock, risk-free interest rates and the expected dividend yield of our Common Stock. The assumptions used to determine the fair value of the stock awards represent management’s best estimates. These estimates involve inherent uncertainties and the application of management’s judgment. The Company used the Black Scholes valuation model to determine the fair value of the warrants and options issued, using the following key assumptions for the six months ended June 30, 2022. There were no such valuations during the six months ended June 30, 2021: Schedule of Fair Value Assumptions Six months Six months ended ended June 30, June 30, 2022 2021 (Unaudited) Expected price volatility 144.76 145.73 % N/A Risk-free interest rate 2.55 2.88 N/A Expected life in years 5 N/A Dividend yield — N/A (B) Principles of Consolidation The condensed consolidated financial statements include the accounts of Basanite, Inc. and its wholly owned subsidiaries, Basanite Industries, LLC and Basalt America, LLC. All intercompany balances have been eliminated in consolidation. The Company’s operations are conducted primarily through Basanite Industries, LLC. Basalt America, LLC is currently inactive. (C) Cash The Company considers all highly liquid temporary cash instruments with an original maturity of three months or less to be cash equivalents. The Company places its cash, cash equivalents and restricted cash on deposit with financial institutions in the United States, which are insured by the Federal Deposit Insurance Company “(“FDIC”) up to $ 250,000 (D) Inventories The Company’s inventories consist of raw materials, work in process and finished goods, both purchased and manufactured. Inventories are stated at The Company’s inventory at June 30, 2022 and December 31, 2021 was comprised of: Schedule of Inventories June 30, December 31, 2022 2021 (Unaudited) Finished goods $ 61,339 $ 328,229 Work in process 73,019 35,213 Raw materials 183,614 351,213 Total inventory $ 317,972 $ 714,655 (E) Fixed assets Fixed assets consist of the following: Schedule of Fixed Assets June 30, December 31, 2022 2021 (Unaudited) Computer equipment $ 166,679 $ 133,654 Machinery 728,245 717,437 Leasehold improvements 170,452 166,252 Office furniture and equipment 71,292 71,292 Land improvements 7,270 7,270 Website development 2,500 2,500 Construction in process 2,653,784 2,408,986 3,800,222 3,507,391 Accumulated depreciation (337,730 ) (270,566 ) $ 3,462,492 $ 3,236,825 Depreciation expense for the three and six months ended June 30, 2022, was $ 33,493 66,751 32,216 63,925 (F) Deposits and other current assets The Company’s deposits and other current assets consist of the deposits made on equipment, security deposits, utility deposits and other receivables. The deposits are reclassified as part of the fixed asset cost when received and placed into service. (G) Loss Per Share The basic loss per share is calculated by dividing the Company’s net loss available to common shareholders by the weighted average number of common shares during the period. The diluted loss per share is calculated by dividing the Company’s net loss by the diluted weighted average number of shares outstanding during the period. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. The following are potentially dilutive shares not included in the loss per share computation: Schedule of Dilutive Shares Not Included in Loss Per Share Computation June 30, December 31, 2022 2021 (Unaudited) Options 1,727,778 4,227,778 Warrants 141,889,090 138,191,666 Convertible securities 7,696,765 6,970,063 Total 151,313,633 149,389,507 (H) Stock-Based Compensation The Company recognizes compensation costs to employees under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 718, Compensation – Stock Compensation. Under FASB ASC Topic 718, companies are required to measure the compensation costs of share-based compensation arrangements based on the grant-date fair value and recognize the costs in the financial statements over the period during which employees are required to provide services. Share based compensation arrangements include stock options, restricted share plans, performance-based awards, share appreciation rights and employee share purchase plans. As such, compensation cost is measured on the date of grant at their fair value. Such compensation amounts, if any, are amortized over the respective vesting periods of the grant. (I) Revenue Recognition We recognize revenue when control of the promised goods or services is transferred to the Company’s customers in an amount that reflects the consideration we expected to be entitled to in exchange for those goods or services. The timing of revenue recognition largely is dependent on shipping terms. Revenue is recorded at the time of shipment for terms designated free on board (“FOB”) shipping point. For sales transactions designated FOB destination, revenue is recorded when the product is delivered to the customer’s delivery site. All revenues recognized are net of trade allowances, cash discounts, and sales returns. Trade allowances are based on the estimated obligations. Adjustments to earnings resulting from revisions to estimates on discounts and returns have been immaterial for each of the reported periods. Shipping and handling amounts billed to a customer as part of a sales transaction are included in revenues, and the related costs are included in cost of goods sold. Shipping and handling are treated as fulfillment activities, rather than promised services, and therefore are not considered separate performance obligations. During the six three and six months ended June 30, 2022, and 2021, the Company incurred shipping and handling costs in the amount of $ 16,537 0 |
OPERATING LEASE
OPERATING LEASE | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
OPERATING LEASE | NOTE 3 – OPERATING LEASE On January 18, 2019, the Company entered into an agreement to lease approximately 25,470 square feet of office and manufacturing space in Pompano Beach, Florida through March 2024. On March 25, 2019, the Company entered into an amendment to the agreement to increase the square footage of leased premises to 36,900 square feet, increasing the Company’s base rent obligation to be approximately $ 33,825 The right-of-use asset is composed of the sum of all remaining lease payments plus any initial direct costs and is amortized over the life of the expected lease term. For the expected term of the lease, the Company used the initial term of the five-year lease. If the Company does elect to exercise its option to extend the lease for another five years, for which the election will be treated as a lease modification, the lease will be reviewed for remeasurement. The future minimum lease payments to be made under the operating lease as of June 30, 2022, are as follows: Schedule of Operating Lease Liability 2022 $ 215,310 2023 440,308 2024 110,884 Total minimum lease payments 766,502 Discount (96,641 ) Operating lease liability $ 669,861 Operating lease liabilities are based on the net present value of the remaining lease payments over the remaining lease term. In determining the present value of lease payments, the Company used the incremental borrowing rate based on the information available at the lease commencement date. As of June 30, 2022, the weighted-average remaining lease term is 2.0 15.0 220,863 214,036 |
FINANCING LEASE _ RELATED PARTY
FINANCING LEASE – RELATED PARTY | 6 Months Ended |
Jun. 30, 2022 | |
Financing Lease Related Party | |
FINANCING LEASE – RELATED PARTY | NOTE 4 FINANCING LEASE – RELATED PARTY On April 27, 2022, the Company entered into an Equipment Rental Agreement (the “Agreement”) with First New Haven Mortgage Company, LLC, a Connecticut limited liability company and an affiliate of the Company (the “Lessor”). Ronald J. LoRicco, a member of the Company’s Board of Directors, is the co-managing member of the Lessor and has an indirect pecuniary interest in the Lessor. In accordance with Nevada corporate law, the Agreement was independently reviewed and approved by the unanimous vote of the disinterested directors of the Company, with Mr. LoRicco recusing himself from voting. Pursuant to the Agreement, the Lessor paid approximately $ 450,000 8,250 The future minimum lease payments to be made under the financing lease as of June 30, 2022, are as follows: Schedule of Financing Lease Liability 2022 $ 41,250 2023 99,000 2024 474,750 Total minimum lease payments 615,000 Discount (165,851 ) Financing lease liability $ 449,149 |
NOTES PAYABLE
NOTES PAYABLE | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | NOTE 5 – NOTES PAYABLE Notes payable totaled $ 500,515 466,762 On February 25, 2021, the Company entered a promissory note agreement with its bank for $ 165,747 1.0 The Company applied for forgiveness of this loan on January 17, 2022; the Company received notice of forgiveness on August The Company enters into financing arrangements for its liability insurance premiums. The financings have a term of one year and an interest rate of 9.40 39,768 6,015 On April 2, 2021, the Company issued a promissory note with an investor in exchange for $ 200,000 18 2,000,000 0.20 5 October 2, 2022 On April 9, 2021, the Company issued a promissory note with an investor in exchange for $ 50,000 18 500,000 0.20 5 October 9, 2022 On April 16, 2021, the Company issued a promissory note with an investor in exchange for $ 25,000 18 250,000 0.25 5 October 16, 2022 On April 16, 2021, the Company issued a promissory note with an investor in exchange for $ 20,000 18 200,000 0.25 5 October 16, 2022 Interest expense for the Company’s notes payable for the three and six months ended June 30, 2022 was $ 16,493 32,300 29,802 30,177 Accrued interest for the Company’s notes payable on June 30, 2022 and December 31, 2021 was $ 69,655 42,773 |
NOTES PAYABLE _ RELATED PARTY
NOTES PAYABLE – RELATED PARTY | 6 Months Ended |
Jun. 30, 2022 | |
Notes Payable Related Party | |
NOTES PAYABLE – RELATED PARTY | NOTE 6 – NOTES PAYABLE – RELATED PARTY Notes payable – Related Party, totaled $ 300,000 On April 2, 2021, the Company issued a promissory note to Paul Sallarulo, a member of our Board of Directors, in exchange for $ 150,000 18 April 2, 2022 1,500,000 0.20 5 On April 2, 2021, the Company issued a promissory note to Michael V. Barbera, our Chairman of the Board, in exchange for $ 150,000 18 April 2, 2022 1,500,000 0.20 5 Interest expense for the Company’s notes payable – related party for the three and six months ended June 30, 2022 was $ 16,365 32,015 0 13,335 Accrued interest for the Company’s notes payable - related party on June 30, 2022, and December 31, 2021, was $ 74,629 42,614 |
NOTES PAYABLE _ CONVERTIBLE _ R
NOTES PAYABLE – CONVERTIBLE – RELATED PARTY | 6 Months Ended |
Jun. 30, 2022 | |
Notes Payable Convertible Related Party | |
NOTES PAYABLE – CONVERTIBLE – RELATED PARTY | NOTE 7 – NOTES PAYABLE – CONVERTIBLE – RELATED PARTY Convertible Notes payable – related party totaled $ 1,689,746 On August 3, 2020, the Company issued a secured convertible promissory note to certain investors in exchange for $ 1,000,000 20 750,000 On February 12, 2021, the Company exchanged the original debt for a newly issued amended and restated secured convertible promissory note with a new principal balance of $ 1,610,005 20 1,000,000 110,005 15,000,000 0.20 3,686,123 On May 12, 2021, the Company extended the debt for a newly issued amended and restated secured convertible promissory note with a new principal balance of $1,689,746 bearing an interest rate of 20 1,610,005 and accrued interest of $ 79,742 calculated as of the date of amendment and restatement determined the principal amount of the new note. In consideration of the additional advance and the extension of the maturity date of the original note, the Company issued to the noteholders 5 shares of Common Stock with an exercise price of $ 0.35 per share. The issuance of the warrants for the extension generated a loss on extinguishment of $ 1,874,705 for the fair value of the warrants issued. The note was not paid by its due date of February 12, 2022. As of the date of this filing, the noteholder has not issued a formal demand for payment and the Company is in negotiations with the noteholder to remedy the past-due status. Interest expense for the Company’s convertible notes payable – related parties for the three and six months ended June 30, 2022, was $ 102,398 199,843 84,605 151,521 Accrued interest for the Company’s convertible notes payable – related parties on June 30, 2022, and December 31, 2021, was $ 426,865 227,022 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 8 – COMMITMENTS AND CONTINGENCIES The Company is the obligor under certain promissory notes that are currently past due (although formal events of default have not been declared). The Company is presently in default of its obligations under the terms of the Company’s private placement which closed in August 2021 to file a registration statement for an underwritten public offering and concurrently an application for listing on a national stock exchange. As a result, the Company is required to pay liquidated damages in the amount of 53,345 106,690 480,104 403,643 426,759 |
STOCKHOLDERS_ DEFICIT
STOCKHOLDERS’ DEFICIT | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
STOCKHOLDERS’ DEFICIT | NOTE 9 – STOCKHOLDERS’ DEFICIT On May 23, 2022, the Company issued 2,000,000 257,059 500,000 64,264 The Company raised $ 1,300,000 Effective May 27, 2022, the Company issued 122,713 0.149 18,284 During the three months ended June 30, 2022, the company charged the amount of $ 41,706 |
OPTIONS AND WARRANTS
OPTIONS AND WARRANTS | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
OPTIONS AND WARRANTS | NOTE 10 – OPTIONS AND WARRANTS Stock Options: The following table provides the activity in options for the respective periods: Schedule of Option Activity Total Options Weighted Average Aggregate Intrinsic Outstanding Exercise Price Value Balance at January 1, 2021 4,542,500 $ 0.41 $ — Issued 1,277,778 0.27 — Cancelled / Expired (1,592,500 ) 0.53 — Balance at December 31, 2021 4,227,778 $ 0.33 $ 19,500 Exercised (500,000 ) 0.25 — Cancelled / Expired (1,000,000 ) 0.55 — Balance at March 31, 2022 2,727,778 $ 0.26 $ — Cancelled / Expired (1,000,000 ) 0.25 — Balance at June 30, 2022 1,727,778 $ 0.27 $ — Options exercisable and outstanding at June 30, 2022 are as follows: Schedule of Options Exercisable and Outstanding Weighted Average Remaining Range of Number Contractual Weighted Average Aggregate Exercise Prices Outstanding Life (Years) Exercise Price Intrinsic Value $ 0.01 0.50 1,727,778 3.107 $0.27 — Stock Warrants: The following table provides the activity in warrants for the respective periods: Schedule of Warrants Activity Weighted Average Aggregate Total Warrants Exercise Price Intrinsic Value Balance at January 1, 2021 38,920,378 $ 0.27 $ 2,973,660 Granted 100,271,288 0.29 — Exercised (1,000,000 ) 0.12 — Balance at December 31, 2021 138,191,666 $ 0.29 $ 3,824,750 Granted 5,242,424 0.33 — Balance at March 31, 2022 143,434,090 $ 0.29 $ 1,147,100 Granted 500,000 0.33 — Expired - cancelled (2,045,000 ) 0.49 — Balance at June 30, 2022 141,889,090 0.29 $ 204,000 Warrants exercisable and outstanding at June 30, 2022 are as follows: Schedule of Warrants Exercisable and Outstanding Weighted Average Remaining Range of Number Contractual Weighted Average Aggregate Exercise Prices Outstanding Life (Years) Exercise Price Intrinsic Value $ 0.01 0.50 140,346,047 3.57 $0.28 $204,000 $ 0.51 1.00 1,543,043 1.00 $0.60 — 141,889,090 $204,000 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 11 – SUBSEQUENT EVENTS On July 11, 2022, the Company entered into a Sale/Leaseback Agreement (the “Agreement”) with Quayco, LLC, a Pennsylvania limited liability company (the “Lessor”). The Company had previously ordered certain specialized BasaMax™ Pultrusion Machines (the “Machines”) from Upstate Custom Products LLC, a South Carolina limited liability company (the “Manufacturer”). The Machines are to be used to manufacture the Company’s basalt fiber reinforced polymer (BFRP) rebar products. Pursuant to the Agreement, the Lessor will pay the Lessee $ 450,000 TM 450,000 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Use of Estimates in Financial Statements | (A) Use of Estimates in Financial Statements The presentation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Stock-based compensation and stock awards related to convertible debt instruments are recognized based on the fair value of the awards granted. The fair value of each award or conversion feature is typically estimated on the grant date using the Black-Scholes pricing model. The Black-Scholes pricing model requires the input of highly subjective assumptions, including the fair value of the underlying Common Stock, the expected term of the option, the expected volatility of the price of our Common Stock, risk-free interest rates and the expected dividend yield of our Common Stock. The assumptions used to determine the fair value of the stock awards represent management’s best estimates. These estimates involve inherent uncertainties and the application of management’s judgment. The Company used the Black Scholes valuation model to determine the fair value of the warrants and options issued, using the following key assumptions for the six months ended June 30, 2022. There were no such valuations during the six months ended June 30, 2021: Schedule of Fair Value Assumptions Six months Six months ended ended June 30, June 30, 2022 2021 (Unaudited) Expected price volatility 144.76 145.73 % N/A Risk-free interest rate 2.55 2.88 N/A Expected life in years 5 N/A Dividend yield — N/A |
Principles of Consolidation | (B) Principles of Consolidation The condensed consolidated financial statements include the accounts of Basanite, Inc. and its wholly owned subsidiaries, Basanite Industries, LLC and Basalt America, LLC. All intercompany balances have been eliminated in consolidation. The Company’s operations are conducted primarily through Basanite Industries, LLC. Basalt America, LLC is currently inactive. |
Cash | (C) Cash The Company considers all highly liquid temporary cash instruments with an original maturity of three months or less to be cash equivalents. The Company places its cash, cash equivalents and restricted cash on deposit with financial institutions in the United States, which are insured by the Federal Deposit Insurance Company “(“FDIC”) up to $ 250,000 |
Inventories | (D) Inventories The Company’s inventories consist of raw materials, work in process and finished goods, both purchased and manufactured. Inventories are stated at The Company’s inventory at June 30, 2022 and December 31, 2021 was comprised of: Schedule of Inventories June 30, December 31, 2022 2021 (Unaudited) Finished goods $ 61,339 $ 328,229 Work in process 73,019 35,213 Raw materials 183,614 351,213 Total inventory $ 317,972 $ 714,655 |
Fixed assets | (E) Fixed assets Fixed assets consist of the following: Schedule of Fixed Assets June 30, December 31, 2022 2021 (Unaudited) Computer equipment $ 166,679 $ 133,654 Machinery 728,245 717,437 Leasehold improvements 170,452 166,252 Office furniture and equipment 71,292 71,292 Land improvements 7,270 7,270 Website development 2,500 2,500 Construction in process 2,653,784 2,408,986 3,800,222 3,507,391 Accumulated depreciation (337,730 ) (270,566 ) $ 3,462,492 $ 3,236,825 Depreciation expense for the three and six months ended June 30, 2022, was $ 33,493 66,751 32,216 63,925 |
Deposits and other current assets | (F) Deposits and other current assets The Company’s deposits and other current assets consist of the deposits made on equipment, security deposits, utility deposits and other receivables. The deposits are reclassified as part of the fixed asset cost when received and placed into service. |
Loss Per Share | (G) Loss Per Share The basic loss per share is calculated by dividing the Company’s net loss available to common shareholders by the weighted average number of common shares during the period. The diluted loss per share is calculated by dividing the Company’s net loss by the diluted weighted average number of shares outstanding during the period. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. The following are potentially dilutive shares not included in the loss per share computation: Schedule of Dilutive Shares Not Included in Loss Per Share Computation June 30, December 31, 2022 2021 (Unaudited) Options 1,727,778 4,227,778 Warrants 141,889,090 138,191,666 Convertible securities 7,696,765 6,970,063 Total 151,313,633 149,389,507 |
Stock-Based Compensation | (H) Stock-Based Compensation The Company recognizes compensation costs to employees under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 718, Compensation – Stock Compensation. Under FASB ASC Topic 718, companies are required to measure the compensation costs of share-based compensation arrangements based on the grant-date fair value and recognize the costs in the financial statements over the period during which employees are required to provide services. Share based compensation arrangements include stock options, restricted share plans, performance-based awards, share appreciation rights and employee share purchase plans. As such, compensation cost is measured on the date of grant at their fair value. Such compensation amounts, if any, are amortized over the respective vesting periods of the grant. |
Revenue Recognition | (I) Revenue Recognition We recognize revenue when control of the promised goods or services is transferred to the Company’s customers in an amount that reflects the consideration we expected to be entitled to in exchange for those goods or services. The timing of revenue recognition largely is dependent on shipping terms. Revenue is recorded at the time of shipment for terms designated free on board (“FOB”) shipping point. For sales transactions designated FOB destination, revenue is recorded when the product is delivered to the customer’s delivery site. All revenues recognized are net of trade allowances, cash discounts, and sales returns. Trade allowances are based on the estimated obligations. Adjustments to earnings resulting from revisions to estimates on discounts and returns have been immaterial for each of the reported periods. Shipping and handling amounts billed to a customer as part of a sales transaction are included in revenues, and the related costs are included in cost of goods sold. Shipping and handling are treated as fulfillment activities, rather than promised services, and therefore are not considered separate performance obligations. During the six three and six months ended June 30, 2022, and 2021, the Company incurred shipping and handling costs in the amount of $ 16,537 0 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Fair Value Assumptions | Schedule of Fair Value Assumptions Six months Six months ended ended June 30, June 30, 2022 2021 (Unaudited) Expected price volatility 144.76 145.73 % N/A Risk-free interest rate 2.55 2.88 N/A Expected life in years 5 N/A Dividend yield — N/A |
Schedule of Inventories | Schedule of Inventories June 30, December 31, 2022 2021 (Unaudited) Finished goods $ 61,339 $ 328,229 Work in process 73,019 35,213 Raw materials 183,614 351,213 Total inventory $ 317,972 $ 714,655 |
Schedule of Fixed Assets | Schedule of Fixed Assets June 30, December 31, 2022 2021 (Unaudited) Computer equipment $ 166,679 $ 133,654 Machinery 728,245 717,437 Leasehold improvements 170,452 166,252 Office furniture and equipment 71,292 71,292 Land improvements 7,270 7,270 Website development 2,500 2,500 Construction in process 2,653,784 2,408,986 3,800,222 3,507,391 Accumulated depreciation (337,730 ) (270,566 ) $ 3,462,492 $ 3,236,825 |
Schedule of Dilutive Shares Not Included in Loss Per Share Computation | Schedule of Dilutive Shares Not Included in Loss Per Share Computation June 30, December 31, 2022 2021 (Unaudited) Options 1,727,778 4,227,778 Warrants 141,889,090 138,191,666 Convertible securities 7,696,765 6,970,063 Total 151,313,633 149,389,507 |
OPERATING LEASE (Tables)
OPERATING LEASE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Schedule of Operating Lease Liability | Schedule of Operating Lease Liability 2022 $ 215,310 2023 440,308 2024 110,884 Total minimum lease payments 766,502 Discount (96,641 ) Operating lease liability $ 669,861 |
FINANCING LEASE _ RELATED PAR_2
FINANCING LEASE – RELATED PARTY (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Financing Lease Related Party | |
Schedule of Financing Lease Liability | Schedule of Financing Lease Liability 2022 $ 41,250 2023 99,000 2024 474,750 Total minimum lease payments 615,000 Discount (165,851 ) Financing lease liability $ 449,149 |
OPTIONS AND WARRANTS (Tables)
OPTIONS AND WARRANTS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Option Activity | Schedule of Option Activity Total Options Weighted Average Aggregate Intrinsic Outstanding Exercise Price Value Balance at January 1, 2021 4,542,500 $ 0.41 $ — Issued 1,277,778 0.27 — Cancelled / Expired (1,592,500 ) 0.53 — Balance at December 31, 2021 4,227,778 $ 0.33 $ 19,500 Exercised (500,000 ) 0.25 — Cancelled / Expired (1,000,000 ) 0.55 — Balance at March 31, 2022 2,727,778 $ 0.26 $ — Cancelled / Expired (1,000,000 ) 0.25 — Balance at June 30, 2022 1,727,778 $ 0.27 $ — |
Schedule of Options Exercisable and Outstanding | Schedule of Options Exercisable and Outstanding Weighted Average Remaining Range of Number Contractual Weighted Average Aggregate Exercise Prices Outstanding Life (Years) Exercise Price Intrinsic Value $ 0.01 0.50 1,727,778 3.107 $0.27 — |
Schedule of Warrants Activity | Schedule of Warrants Activity Weighted Average Aggregate Total Warrants Exercise Price Intrinsic Value Balance at January 1, 2021 38,920,378 $ 0.27 $ 2,973,660 Granted 100,271,288 0.29 — Exercised (1,000,000 ) 0.12 — Balance at December 31, 2021 138,191,666 $ 0.29 $ 3,824,750 Granted 5,242,424 0.33 — Balance at March 31, 2022 143,434,090 $ 0.29 $ 1,147,100 Granted 500,000 0.33 — Expired - cancelled (2,045,000 ) 0.49 — Balance at June 30, 2022 141,889,090 0.29 $ 204,000 |
Schedule of Warrants Exercisable and Outstanding | Schedule of Warrants Exercisable and Outstanding Weighted Average Remaining Range of Number Contractual Weighted Average Aggregate Exercise Prices Outstanding Life (Years) Exercise Price Intrinsic Value $ 0.01 0.50 140,346,047 3.57 $0.28 $204,000 $ 0.51 1.00 1,543,043 1.00 $0.60 — 141,889,090 $204,000 |
ORGANIZATION, NATURE OF BUSIN_2
ORGANIZATION, NATURE OF BUSINESS AND GOING CONCERN (Details Narrative) - USD ($) | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Accumulated deficit | $ 49,585,933 | $ 46,121,210 | |
Working capital deficiency | 5,917,780 | $ 3,304,637 | |
Cash used in opeartions | $ 81,529 | $ 2,294,501 | |
Common Stock par value | $ 0.001 | $ 0.001 | |
Cash | $ 58,893 | $ 109,514 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Fair Value Assumptions) (Details) | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Line Items] | |
Expected life in years | 5 years |
Dividend yield | |
Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Expected price volatility, maximum | 144.76% |
Risk-free interest rate, maximum | 2.55% |
Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Expected price volatility, maximum | 145.73% |
Risk-free interest rate, maximum | 2.88% |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Inventory) (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||
Finished goods | $ 61,339 | $ 328,229 |
Work in process | 73,019 | 35,213 |
Raw materials | 183,614 | 351,213 |
Total inventory | $ 317,972 | $ 714,655 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Fixed assets) (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | $ 3,800,222 | $ 3,507,391 |
Accumulated depreciation | (337,730) | (270,566) |
Total fixed assets, net | 3,462,492 | 3,236,825 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | 166,679 | 133,654 |
Machinery [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | 728,245 | 717,437 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | 170,452 | 166,252 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | 71,292 | 71,292 |
Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | 7,270 | 7,270 |
Website Development [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | 2,500 | 2,500 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | $ 2,653,784 | $ 2,408,986 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Dilutive Shares Not Included in Loss Per Share Computation) (Details) - shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Dilutive shares not included in loss per share computation | 151,313,633 | 149,389,507 |
Equity Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Dilutive shares not included in loss per share computation | 1,727,778 | 4,227,778 |
Warrant [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Dilutive shares not included in loss per share computation | 141,889,090 | 138,191,666 |
Convertible Debt Securities [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Dilutive shares not included in loss per share computation | 7,696,765 | 6,970,063 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Accounting Policies [Abstract] | ||||
Cash insured amount | $ 250,000 | $ 250,000 | ||
Depreciation expense | 33,493 | $ 32,216 | 66,751 | $ 63,925 |
Shipping and handling costs | $ 16,537 | $ 0 | $ 16,537 | $ 0 |
OPERATING LEASE (Schedule of Fu
OPERATING LEASE (Schedule of Future Minimum Lease Payments under Operating Lease) (Details) | Jun. 30, 2022 USD ($) |
Leases [Abstract] | |
2022 | $ 215,310 |
2023 | 440,308 |
2024 | 110,884 |
Total minimum lease payments | 766,502 |
Discount | (96,641) |
Operating lease liability | $ 669,861 |
OPERATING LEASE (Details Narrat
OPERATING LEASE (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | |
Mar. 25, 2019 | Jun. 30, 2022 | Jun. 30, 2021 | |
Leases [Abstract] | |||
Base rent obligation | $ 33,825 | ||
Lease term | 2 years | ||
Weighted average discount rate | 15% | ||
Operating lease rent expense | $ 220,863 | $ 214,036 |
FINANCING LEASE RELATED PARTY (
FINANCING LEASE RELATED PARTY (Details) | Jun. 30, 2022 USD ($) |
Financing Lease Related Party | |
2022 | $ 41,250 |
2023 | 99,000 |
2024 | 474,750 |
Total minimum lease payments | 615,000 |
Discount | (165,851) |
Financing lease liability | $ 449,149 |
FINANCING LEASE _ RELATED PAR_3
FINANCING LEASE – RELATED PARTY (Details Narrative) | 1 Months Ended |
Apr. 27, 2022 USD ($) | |
Offsetting Assets [Line Items] | |
Lease payment | $ 8,250 |
Equipment Rental Agreement [Member] | |
Offsetting Assets [Line Items] | |
Leassor paid | $ 450,000 |
NOTES PAYABLE (Details Narrativ
NOTES PAYABLE (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
Apr. 09, 2021 | Apr. 02, 2021 | Apr. 16, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Feb. 25, 2021 | Feb. 12, 2021 | |
Debt Instrument [Line Items] | ||||||||||
Notes payable | $ 500,515 | $ 500,515 | $ 466,762 | |||||||
Debt principal amount | $ 1,610,005 | |||||||||
Notes payable | 500,515 | 500,515 | 466,762 | |||||||
Due date | Oct. 09, 2022 | Oct. 02, 2022 | ||||||||
Interest expense | 16,493 | $ 29,802 | 32,300 | $ 30,177 | ||||||
Accrued interest | 69,655 | 69,655 | 42,773 | |||||||
Promissory Note Agreement With Its Bank [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 9.40% | 9.40% | ||||||||
Financing Arrangements [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notes payable | $ 39,768 | $ 39,768 | $ 6,015 | |||||||
Promissory Note Agreement 1 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt principal amount | $ 165,747 | |||||||||
Interest rate | 1% | |||||||||
Promissory Note [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt principal amount | $ 50,000 | $ 200,000 | $ 25,000 | |||||||
Interest rate | 18% | 18% | 18% | |||||||
Common stock warrants issued | 500,000 | 2,000,000 | 250,000 | |||||||
Warrants exercise price | $ 0.20 | $ 0.20 | $ 0.25 | |||||||
Debt Instrument, Term | 5 years | 5 years | ||||||||
Due date | Oct. 16, 2022 | |||||||||
Warrant expire term | 5 years | |||||||||
Promissory Note 1 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt principal amount | $ 20,000 | |||||||||
Interest rate | 18% | |||||||||
Common stock warrants issued | 200,000 | |||||||||
Warrants exercise price | $ 0.25 | |||||||||
Debt Instrument, Term | 5 years | |||||||||
Due date | Oct. 16, 2022 |
NOTES PAYABLE _ RELATED PARTY (
NOTES PAYABLE – RELATED PARTY (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
Apr. 09, 2021 | Apr. 02, 2021 | Apr. 16, 2021 | Apr. 02, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Feb. 12, 2021 | |
Offsetting Assets [Line Items] | ||||||||||
Notes payable - related party | $ 300,000 | $ 300,000 | $ 300,000 | |||||||
Face amount | $ 1,610,005 | |||||||||
Maturity date | Oct. 09, 2022 | Oct. 02, 2022 | ||||||||
Exercise price | $ 0.20 | |||||||||
Interest expense | 16,365 | $ 0 | 32,015 | $ 13,335 | ||||||
Accrued interest | $ 74,629 | $ 74,629 | $ 42,614 | |||||||
Paul Sallarulo [Member] | ||||||||||
Offsetting Assets [Line Items] | ||||||||||
Issuance of shares | 1,500,000 | 1,500,000 | ||||||||
Exercise price | $ 0.20 | $ 0.20 | ||||||||
Maturity term | 5 years | 5 years | ||||||||
Michael V Barbera [Member] | ||||||||||
Offsetting Assets [Line Items] | ||||||||||
Issuance of shares | 1,500,000 | 1,500,000 | ||||||||
Exercise price | $ 0.20 | $ 0.20 | ||||||||
Maturity term | 5 years | 5 years | ||||||||
Promissory Note [Member] | ||||||||||
Offsetting Assets [Line Items] | ||||||||||
Face amount | $ 50,000 | $ 200,000 | $ 25,000 | $ 200,000 | ||||||
Interest rate | 18% | 18% | 18% | 18% | ||||||
Maturity date | Oct. 16, 2022 | |||||||||
Promissory Note [Member] | Paul Sallarulo [Member] | ||||||||||
Offsetting Assets [Line Items] | ||||||||||
Face amount | $ 150,000 | $ 150,000 | ||||||||
Interest rate | 18% | 18% | ||||||||
Maturity date | Apr. 02, 2022 | |||||||||
Promissory Note [Member] | Michael V Barbera [Member] | ||||||||||
Offsetting Assets [Line Items] | ||||||||||
Face amount | $ 150,000 | $ 150,000 | ||||||||
Interest rate | 18% | 18% | ||||||||
Maturity date | Apr. 02, 2022 |
NOTES PAYABLE _ CONVERTIBLE __2
NOTES PAYABLE – CONVERTIBLE – RELATED PARTY (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
May 12, 2021 | Feb. 12, 2021 | Aug. 03, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Short-Term Debt [Line Items] | ||||||||
Notes payable - convertible - related party | $ 1,689,746 | $ 1,689,746 | $ 1,689,746 | |||||
Debt principal amount | $ 1,610,005 | |||||||
Exercise price of warrants | $ 0.20 | |||||||
Repayments of Convertible Debt | $ 35,000 | |||||||
Gain (Loss) on Extinguishment of Debt | $ (3,056,892) | (6,743,015) | ||||||
Interest expense | 16,493 | 29,802 | 32,300 | 30,177 | ||||
Accrued interest | 69,655 | 69,655 | 42,773 | |||||
Convertible Note Payable [Member] | ||||||||
Short-Term Debt [Line Items] | ||||||||
Interest expense | 102,398 | $ 84,605 | 199,843 | $ 151,521 | ||||
Secured Convertible Promissory Note Agreements With Related Party [Member] | ||||||||
Short-Term Debt [Line Items] | ||||||||
Amount of debt conversion | $ 1,000,000 | |||||||
Interest rate | 20% | |||||||
Secured Convertible Promissory Note Agreements With Related Party [Member] | Louis Demaio As Trustee [Member] | ||||||||
Short-Term Debt [Line Items] | ||||||||
Debt principal amount | $ 750,000 | |||||||
Convertible Promissory Note Investors [Member] | ||||||||
Short-Term Debt [Line Items] | ||||||||
Interest rate | 20% | 20% | ||||||
Exercise price of warrants | $ 0.35 | |||||||
Repayments of Convertible Debt | $ 1,610,005 | $ 1,000,000 | ||||||
Accrued interest paid | $ 79,742 | $ 110,005 | ||||||
Number of shares converted | 5 | 15,000,000 | ||||||
Gain (Loss) on Extinguishment of Debt | $ 3,686,123 | |||||||
Gain (Loss) on Extinguishment of Debt | $ 1,874,705 | |||||||
Convertible Notes Payable Related Party [Member] | ||||||||
Short-Term Debt [Line Items] | ||||||||
Accrued interest | $ 426,865 | $ 426,865 | $ 227,022 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 02, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Aug. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||||||
Liquidated damages | $ 480,104 | $ 480,104 | $ 53,345 | |||
Periodic payment | $ 106,690 | |||||
Liquidated damages loan commitment | $ 403,643 | $ 426,759 |
STOCKHOLDERS_ DEFICIT (Details
STOCKHOLDERS’ DEFICIT (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
May 27, 2022 | May 23, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Stock Issued During Period, Value, New Issues | $ 649,591 | $ 241,776 | $ 90,000 | |||||
Proceeds pursuant to a private placement of Common Stock and warrants | $ 1,300,000 | $ 1,300,000 | ||||||
Shares issued | 122,713 | |||||||
Stock at a price | $ 0.149 | |||||||
Non cash compensation | $ 18,284 | $ 426,856 | $ 729,525 | |||||
Chief Executive Officer [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Non cash compensation | $ 41,706 | |||||||
Warrant [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Number of shares issued | 2,000,000 | 500,000 | ||||||
Stock Issued During Period, Value, New Issues | $ 257,059 | |||||||
Warrants were vested | $ 64,264 |
OPTIONS AND WARRANTS (Schedule
OPTIONS AND WARRANTS (Schedule of Activity in Options and Warrants) (Details) - Equity Option [Member] - USD ($) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Offsetting Assets [Line Items] | |||
Options Outstanding, beginning | 2,727,778 | 4,227,778 | 4,542,500 |
Weighted Average Exercise Price, beginning | $ 0.26 | $ 0.33 | $ 0.41 |
Aggregate intrinsic value, beginning | $ 19,500 | ||
Issued | 1,277,778 | ||
Weighted Average Exercise Price, issued | $ 0.27 | ||
Cancelled | (1,000,000) | (1,000,000) | (1,592,500) |
Weighted Average Exercise Price, Cancelled | $ 0.25 | $ 0.55 | $ 0.53 |
Exercised | (500,000) | ||
Weighted Average Exercise Price, Exercised | $ 0.25 | ||
Options Outstanding, ending | 1,727,778 | 2,727,778 | 4,227,778 |
Weighted Average Exercise Price, ending | $ 0.27 | $ 0.26 | $ 0.33 |
Aggregate intrinsic value, ending | $ 19,500 |
OPTIONS AND WARRANTS (Schedul_2
OPTIONS AND WARRANTS (Schedule of Options and Warrant Exercisable and Outstanding) (Details) - Equity Option [Member] | 6 Months Ended |
Jun. 30, 2022 USD ($) $ / shares shares | |
Price Range One [Member] | |
Offsetting Assets [Line Items] | |
Range of Exercise Prices, Lower | $ 0.01 |
Range of Exercise Prices, Upper | $ 0.50 |
$0.01 - $0.50 [Member] | |
Offsetting Assets [Line Items] | |
Number Outstanding | shares | 1,727,778 |
Weighted Average Remaining Contractual Life (Years) | 3 years 1 month 8 days |
Weighted Average Exercise Price | $ 0.27 |
Average Intrinsic Value | $ |
OPTIONS AND WARRANTS (Schedul_3
OPTIONS AND WARRANTS (Schedule of Options and Warrants Exercisable and Outstanding) (Details) - Warrant [Member] - USD ($) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Options Outstanding, beginning | 143,434,090 | 138,191,666 | 38,920,378 |
Weighted Average Exercise Price, beginning | $ 0.29 | $ 0.29 | $ 0.27 |
Aggregate intrinsic value, beginning | $ 1,147,100 | $ 3,824,750 | $ 2,973,660 |
Granted | 500,000 | 5,242,424 | 100,271,288 |
Weighted Average Exercise Price, Granted | $ 0.33 | $ 0.33 | $ 0.29 |
Warrant exercised | (1,000,000) | ||
Weighted Average Exercise Price, Exercised | $ 0.12 | ||
Cancelled | (2,045,000) | ||
Weighted Average Exercise Price, Cancelled | $ 0.49 | ||
Options Outstanding, ending | 141,889,090 | 143,434,090 | 138,191,666 |
Weighted Average Exercise Price, ending | $ 0.29 | $ 0.29 | $ 0.29 |
Aggregate intrinsic value, ending | $ 204,000 | $ 1,147,100 | $ 3,824,750 |
OPTIONS AND WARRANTS (Warrant E
OPTIONS AND WARRANTS (Warrant Exercisable and Outstanding) (Details) - Warrant [Member] | 6 Months Ended |
Jun. 30, 2022 USD ($) $ / shares shares | |
Number Outstanding | shares | 141,889,090 |
Average Intrinsic Value | $ | $ 204,000 |
$0.01 - $0.50 [Member] | |
Range of Exercise Prices, Lower | $ 0.01 |
Range of Exercise Prices, Upper | $ 0.50 |
Number Outstanding | shares | 140,346,047 |
Weighted Average Remaining Contractual Life (Years) | 3 years 6 months 25 days |
Weighted Average Exercise Price | $ 0.28 |
Average Intrinsic Value | $ | $ 204,000 |
$0.51 - $1.00 [Member] | |
Range of Exercise Prices, Lower | $ 0.51 |
Range of Exercise Prices, Upper | $ 1 |
Number Outstanding | shares | 1,543,043 |
Weighted Average Remaining Contractual Life (Years) | 1 year |
Weighted Average Exercise Price | $ 0.60 |
Average Intrinsic Value | $ |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member] | Jul. 11, 2022 USD ($) |
Subsequent Event [Line Items] | |
Lessor paid value | $ 450,000 |
Right of Use Lease Liability | $ 450,000 |