Basanite (BASA) 10-Q 21 Nov 22 2022 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2022	Nov. 21, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2022
Document Fiscal Period Focus	Q3
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		257,156,796

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
CURRENT ASSETS
Cash	$ 71,293	$ 109,514
Accounts receivable, net	65,734	7,817
Inventory	283,557	714,655
Prepaid expenses	170,938	127,806
Deposits and other current assets	253,436	265,553
TOTAL CURRENT ASSETS	844,958	1,225,345
Lease right-of-use asset, operating	529,381	749,116
Lease right-of-use asset, financing	450,705
Lease right-of-use asset, financing, related-party	451,725
Fixed assets, net	3,016,631	3,236,825
TOTAL NON CURRENT ASSETS	4,448,442	3,985,941
TOTAL ASSETS	5,293,400	5,211,286
CURRENT LIABILITIES
Accounts payable	1,494,543	1,175,682
Accrued expenses	457,811	407,454
Accrued legal liability	165,000	165,000
Subscription liability	1,300,000
Notes payable	320,122	466,762
Notes payable - related party	605,000	300,000
Notes payable - convertible - related party, net	2,027,695	1,689,745
Lease liability – operating, current portion	371,960	325,339
Lease liability – financing, current portion	3,824
Lease liability – financing, related party, current portion	4,031
TOTAL CURRENT LIABILITIES	6,749,986	4,529,982
Lease liability – operating, net of current portion	214,330	499,546
Lease liability – net of current portion	445,613
Lease liability – financing, related party, net of current portion	444,525
TOTAL LIABILITIES	7,854,454	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, 253,217,402 and 248,840,144 shares issued and outstanding, respectively	253,218	248,842
Additional paid-in capital	47,433,354	46,054,126
Accumulated deficit	(50,427,626)	(46,121,210)
TOTAL STOCKHOLDERS' (DEFICIT) EQUITY	(2,561,054)	181,758
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY	$ 5,293,400	$ 5,211,286

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares	Sep. 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	253,217,402	248,840,144
Common stock, shares outstanding	253,217,402	248,840,144

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenue
Products sales - rebar	$ 235,579	$ 155,477	$ 781,918	$ 175,162
Total cost of goods sold	387,621	176,994	1,584,595	194,687
Gross (loss)	(152,042)	(21,517)	(802,677)	(19,525)
OPERATING EXPENSES
Sales, general, and administrative	595,310	1,632,956	2,678,405	4,145,403
Total operating expenses	595,310	1,632,956	2,678,405	4,145,403
NET LOSS FROM OPERATIONS	(747,352)	(1,654,473)	(3,481,082)	(4,164,928)
OTHER INCOME (EXPENSE)
Gain on settlement of legal contingency		94,127		438,649
Liquidated damages – loan commitment	0	0	(426,759)	0
Miscellaneous income	30	8,131	30	8,131
Loss on extinguishment of debt				(6,743,015)
Gain on loan forgiveness	170,096		170,096	124,143
Interest expense	(84,467)	(120,070)	(388,701)	(325,944)
Total other income (expense)	85,659	(17,812)	(645,334)	(6,498,036)
NET LOSS	$ (661,693)	$ (1,672,285)	$ (4,126,416)	$ (10,662,964)
Net loss per share –
Basic	$ 0	$ (0.01)	$ (0.02)	$ (0.05)
Diluted	$ 0	$ (0.01)	$ (0.02)	$ (0.05)
Weighted average number of shares outstanding –
Basic	253,187,772	238,136,804	251,736,069	233,829,833
Diluted	253,187,772	238,136,804	251,736,069	233,829,833

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
Stock-based compensation	$ 600	288,950		289,550
Stock-based compensation, shares	600,000
Stock issued for cash, net of costs of $50,409	$ 19,399	4,703,487		4,722,886
Stock issued for cash, shares	19,398,144
Warrants issued
Net loss			(1,672,285)	(1,672,285)
Ending balance, value at Sep. 30, 2021	$ 248,522	41,936,255	(40,306,351)	1,878,426
Ending balance, Shares at Sep. 30, 2021	248,520,598
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
Shares issued for exercise of warrants	$ 1,333	98,667		100,000
Shares issued for exercise of warrants , shares	1,333,333
Warrants issued to service provider		157,294		157,294
Net loss			(661,693)	(661,693)
Ending balance, value at Sep. 30, 2022	$ 253,218	$ 47,433,354	$ (50,247,626)	$ (2,561,054)
Ending balance, Shares at Sep. 30, 2022	253,217,402

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 ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (4,126,416)	$ (10,662,964)
Adjustments to reconcile net loss to net cash used in operating activities:
Lease right-of-use lease amortization	220,933	187,464
Lease right-of-use asset amortization, financing lease	(1,725)
Lease right-of-use asset amortization, financing lease, related party	(705)
Depreciation and amortization	100,670	96,355
Gain on settlement of legal contingency		(438,649)
Gains on settlement of payable		(8,131)
Loss on extinguishment of debt		6,743,015
Loan forgiveness	(170,096)	(124,143)
Stock-based compensation	509,013	1,019,075
Changes in operating assets and liabilities:
Prepaid expenses	(43,132)	(36,263)
Inventory	431,098	(207,553)
Accounts receivable	(57,917)	(34,056)
Deposits and other current assets	12,117	(9,004)
Accounts payable and accrued expenses	1,159,268	(167,424)
Subscription liability	1,300,000	(40,000)
Lease liability, operating lease	(238,595)	(197,008)
Lease liability, financing lease	(563)
Lease liability, financing lease – related party	(1,444)
Net cash used in operating activities	(907,494)	(3,879,286)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment	(780,476)	(1,687,696)
Proceeds from sale of equipment	450,000
Deposits on equipment		(181,200)
Net cash used in investing activities	(330,476)	(1,868,896)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of common stock, net of costs	649,591	5,054,662
Proceeds from exercise of warrants	225,000	123,500
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	305,000	1,491,194
Repayments of notes payable and notes payable related party	20,158	(417,193)
Net cash provided by financing activities	1,199,749	6,796,904
NET (DECREASE) INCREASE IN CASH	(38,221)	1,048,722
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	109,514	259,505
CASH AND CASH EQUIVALENTS AT END OF PERIOD	71,293	1,308,227
Supplemental cash flow information:
Cash paid for income taxes
Cash paid for interest
Forgiveness of Paycheck Protection Program loan and accrued interest	167,996	124,143
Supplemental disclosure of non-cash investing and financing activities:
Accounts payable paid by financing lease, related party	(450,000)
ROU Asset from financing leases	450,000
Conversion of notes payable into common stock		1,487,386
Issuance of warrants for services		143,595
Conversion of note payable in exchange for cash		300,000
Extension of convertible note interest rolled in	$ 337,950

ORGANIZATION, NATURE OF BUSINES

ORGANIZATION, NATURE OF BUSINESS AND GOING CONCERN	9 Months Ended
	Sep. 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 September 30, 2022, and December 31, 2021, respectively, the Company reported: · an accumulated deficit of $ 50,247,626 46,121,210 · a working capital deficiency of $ 5,905,028 3,304,637 · cash used in operations of $ 907,494 3,879,286 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. Due to our cash flow and liquidity challenges, we have received demand letters from a number of vendors to our company seeking payment of past due amounts to such vendors. As of the date of this report, such demands have not become formal litigations or other proceedings against our company, but they may become litigations against us in the future. While we have generated relatively little revenue to date, revenue from sales of product began to increase during the nine months of 2022 (including the quarter ended September 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 three quarters 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 in the future, based on our current limited manufacturing capacity, and given that we plan to vacate our current facility in Pompano Beach, Florida due to a recent dispute with our landlord (see note 12), 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. On September 27, 2022, we furloughed the majority of our staff to reduce costs during a period of reduced production. We anticipate re-staffing as soon as we obtain adequate funding and are in a new facility with the new equipment. 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 September 30, 2022, the Company had cash of $ 71,293 109,514

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 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 nine months ended September 30, 2022. There were no such valuations during the nine months ended September 30, 2021: Schedule of Fair Value Assumptions Nine months Nine months ended ended September 30, September 30, 2022 2021 (Unaudited) Expected price volatility 144.21 145.73 N/A Risk-free interest rate 2.55 4.21 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 lower of cost or net realizable value. Cost is determined on a first-in, first-out basis. Raw materials inventory consists of basalt fiber and other necessary elements to produce BasaFlex™ rebar and our other products. On a quarterly basis, the Company analyzes its inventory levels and records allowances for inventory that has become obsolete and inventory that has a cost basis in excess of the expected net realizable value. The Company’s inventory at September 30, 2022 and December 31, 2021 was comprised of: Schedule of Inventories September 30, December 31, 2022 2021 (Unaudited) Finished goods $ 21,061 $ 328,229 Work in process 83,141 35,213 Raw materials 155,696 351,213 Other inventory 23,659 — Total Inventory $ 283,557 $ 714,655 (E) Fixed assets Fixed assets consist of the following: Schedule of Fixed Assets September 30, December 31, 2022 2021 (Unaudited) Computer equipment $ 199,704 $ 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 2,208,404 2,408,986 3,387,867 3,507,391 Accumulated depreciation and amortization (371,236 ) (270,566 ) $ 3,016,631 $ 3,236,825 Depreciation expense for the three and nine months ended September 30, 2022, was $ 33,919 100,670 32,430 96,355 (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. Schedule of Dilutive Shares Not Included in Loss Per Share Computation September 30, December 31, 2022 2021 (Unaudited) Options 1,727,778 4,227,778 Warrants 140,055,757 138,191,666 Convertible securities 8,016,068 6,970,063 Total 149,799,603 149,389,507 (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 three and nine months ended September 30, 2022, and 2021, the Company incurred shipping and handling costs in the amount of $ 40,254 0

OPERATING LEASE

OPERATING LEASE	9 Months Ended
	Sep. 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 September 30, 2022, are as follows: Schedule of Operating Lease Liability 2022 $ 107,656 2023 440,308 2024 110,884 Total minimum lease payments 658,848 Discount (72,558 ) Operating lease liability $ 586,290 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 September 30, 2022, the weighted-average remaining lease term is 2.0 15.0 340,147 321,153

FINANCING LEASE

FINANCING LEASE	9 Months Ended
	Sep. 30, 2022
Financing Lease
FINANCING LEASE	NOTE 4 FINANCING LEASE On July 11, 2022, the Company entered into an equipment financing 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 Company (Lessee) $ 450,000 450,000 21 8,250 450,000 The future minimum lease payments to be made under the financing lease as of September 30, 2022, are as follows: Schedule of future minimum lease payments 2022 $ 24,750 2023 99,000 2024 499,500 Total minimum lease payments 623,250 Present value discount (173,813 ) Financing lease liability $ 449,437

FINANCING LEASE _ RELATED PARTY

FINANCING LEASE – RELATED PARTY	9 Months Ended
	Sep. 30, 2022
Financing Lease Related Party
FINANCING LEASE – RELATED PARTY	NOTE 5 – 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, the Chairman 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 September 30, 2022, are as follows: Schedule of Financing Lease Liability 2022 $ 24,750 2023 99,000 2024 474,750 Total minimum lease payments 598,500 Discount (149,944 ) Financing lease liability $ 448,556

NOTES PAYABLE

NOTES PAYABLE	9 Months Ended
	Sep. 30, 2022
Debt Disclosure [Abstract]
NOTES PAYABLE	NOTE 6 – NOTES PAYABLE Notes payable totaled an aggregate of $ 320,122 466,762 On February 25, 2021, the Company entered a promissory note agreement with a bank for $ 165,747 1.0 On April 2, 2021, the Company issued a promissory note with an investor in exchange for $ 200,000 18 1 2,000,000 0.20 5 On April 9, 2021, the Company issued a promissory note with an investor in exchange for $ 50,000 18 1 500,000 0.20 5 On April 16, 2021, the Company issued a promissory note with an investor in exchange for $ 25,000 18 1 250,000 0.25 5 On April 16, 2021, the Company issued a promissory note with an investor in exchange for $ 20,000 18 1 200,000 0.25 5 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 25,122 6,015 Interest expense for the Company’s promissory notes payable for the three and nine months ended September 30, 2022 was, in the aggregate, $ 16,800 32,866 23,666 53,784 Accrued interest for the Company’s promissory notes payable on September 30, 2022 and December 31, 2021 was, in the aggregate, $ 83,510 42,773

NOTES PAYABLE _ RELATED PARTY

NOTES PAYABLE – RELATED PARTY	9 Months Ended
	Sep. 30, 2022
Notes Payable Related Party
NOTES PAYABLE – RELATED PARTY	NOTE 7 – NOTES PAYABLE – RELATED PARTY Notes payable – Related Party, totaled an aggregate of $ 605,000 300,000 On August 31, 2022 the Company issued a promissory note to a board member in exchange for $ 37,000 10 August 31, 2023 On August 22, 2022 the Company issued a promissory note to a board member in exchange for $ 20,000 10 August 22, 2023 On August 22, 2022 the Company issued a promissory note to a board member in exchange for $ 5,000 10 August 22, 2023 On August 29, 2022 the Company issued a promissory note to a board member in exchange for $ 25,000 10 August 29, 2023 On August 29, 2022 the Company issued a promissory note to a board member in exchange for $ 10,000 10 August 29, 2023 On August 31, 2022 the Company issued a promissory note to a board member in exchange for $ 13,000 10 August 31, 2023 On September 9, 2022 the Company issued a promissory note to a board member in exchange for $ 60,000 10 August 16, 2023 On September 9, 2022 the Company issued a promissory note to a board member in exchange for $ 10,000 10 September 9, 2023 On September 9, 2022 the Company issued a promissory note to a strategic partner in exchange for $ 10,000 10 September 9, 2023 On September 9, 2022 the Company issued a promissory note to a strategic partner in exchange for $ 15,000 10 September 9, 2023 On September 9, 2022 the Company issued a promissory note to an investor and advisor to the board, in exchange for $ 15,000 10 September 9, 2023 On September 22, 2022 the Company issued a promissory note to a board member in exchange for $ 42,500 10 March 22, 2023 On September 22, 2022 the Company issued a promissory note to an investor and advisor to the board in exchange for $ 42,500 10 March 22, 2023 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 As of the date of this report, the note has not been called. 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 As of the date of this report, the note has not been called. Interest expense for the Company’s notes payable – related party for the three and nine months ended September 30, 2022 was $ 9,473 34,562 16,635 27,648 Accrued interest for the Company’s notes payable - related party on September 30, 2022, and December 31, 2021, was an aggregate of $ 92,270 42,614

NOTES PAYABLE _ CONVERTIBLE _ R

NOTES PAYABLE – CONVERTIBLE – RELATED PARTY	9 Months Ended
	Sep. 30, 2022
Notes Payable Convertible Related Party
NOTES PAYABLE – CONVERTIBLE – RELATED PARTY	NOTE 8 – NOTES PAYABLE – CONVERTIBLE – RELATED PARTY Convertible Notes payable – related party totaled an aggregate of $ 2,027,695 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 79,742 5 0.35 1,874,705 On September 15, 2022, the Company extended the debt for a newly issued amended and restated secured convertible promissory note with a new principal balance of $ 2,027,695 20 February 12, 2023 1,689,746 337,949 Interest expense for the Company’s convertible notes payable – related parties for the three and nine months ended September 30, 2022, was an aggregate of $ 45,371 276,228 88,244 239,766 Accrued interest for the Company’s convertible notes payable – related parties on September 30, 2022, and December 31, 2021, was an aggregate of $ 176,724 227,022

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 9 – 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 0 426,759

STOCKHOLDERS_ DEFICIT

STOCKHOLDERS’ DEFICIT	9 Months Ended
	Sep. 30, 2022
Equity [Abstract]
STOCKHOLDERS’ DEFICIT	NOTE 10 – STOCKHOLDERS’ DEFICIT The Company raised $ 1,300,000 During the three months ended September 30, 2022, the company charged the amount of $ 80,058

OPTIONS AND WARRANTS

OPTIONS AND WARRANTS	9 Months Ended
	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
OPTIONS AND WARRANTS	NOTE 11 – 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 $ — Cancelled / Expired — — — Balance at September 30, 2022 1,727,778 $ 0.27 $ — Options exercisable and outstanding at September 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 $ 0.25 0.28 1,727,778 2.9 $0.27 — Stock Warrants: The following table provides the activity in warrants to purchase shares of Common Stock 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 ) 0.00 Balance at June 30, 2022 141,889,090 $ 0.29 $ 204,000 Granted 1,000,000 0.33 — Exercised (1,333,333 ) 0.08 Expired – cancelled (1,500,000 ) 0.00 — Balance at September 30, 2022 140,055,757 $ 0.29 $ 150,667 Warrants exercisable and outstanding at September 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 0.50 138,512,714 3.40 $0.29 $150,667 $ 0.51 1.00 1,543,043 0.75 $0.60 — 140,055,757 $150,667

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2022
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 12 – SUBSEQUENT EVENTS On October 17, 2022, the Company was presented with a written notice from Camton, LLC (the “Landlord”), the landlord of the Company’s headquarters and principal manufacturing facility in Pompano Beach, Florida, demanding the Company pay past due rent or relinquish possession of its facilities. On October 25, 2022, the Landlord filed a complaint in the Broward County Court, Fort Lauderdale, Florida, and on November 1, 2022, the Company received an eviction summons. On November 3, 2022, in accordance with the instructions within the complaint, the Company presented 100% of the past due amount payable to the Broward County Court and commenced negotiations with the Landlord for an early exit of its lease. On October 31, 2022, the Company entered into an Equipment Rental Agreement (the “Agreement”) with LoRicco Enterprises, LLC, a Connecticut limited liability company and an affiliate of the Company (the “Lessor”). Ronald J. LoRicco, the Chairman 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. 21 . Pursuant to this lease of TM , the Company will conditionally defer payments in the amount of $ 8,250 per month for up to 24 months, followed by a final payment in the amount of $ 450,000 . On October 20, 2022, 3,939,390 7,878,780 On November 14, 2022, Simon Kay, the Company’s Chief Executive Officer and President, resigned his positions with the Company. Pursuant to her employment agreement with the Company, Lisa Gainsborg, the Company’s Chief Financial Officer, is entitled to receive options to purchase Common Stock which vest in quarterly increments over time. The initial tranche of options vested on November 17, 2022, but as a courtesy to the Company. Ms. Gainsborg has waived her right to such options.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 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 nine months ended September 30, 2022. There were no such valuations during the nine months ended September 30, 2021: Schedule of Fair Value Assumptions Nine months Nine months ended ended September 30, September 30, 2022 2021 (Unaudited) Expected price volatility 144.21 145.73 N/A Risk-free interest rate 2.55 4.21 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 lower of cost or net realizable value. Cost is determined on a first-in, first-out basis. Raw materials inventory consists of basalt fiber and other necessary elements to produce BasaFlex™ rebar and our other products. On a quarterly basis, the Company analyzes its inventory levels and records allowances for inventory that has become obsolete and inventory that has a cost basis in excess of the expected net realizable value. The Company’s inventory at September 30, 2022 and December 31, 2021 was comprised of: Schedule of Inventories September 30, December 31, 2022 2021 (Unaudited) Finished goods $ 21,061 $ 328,229 Work in process 83,141 35,213 Raw materials 155,696 351,213 Other inventory 23,659 — Total Inventory $ 283,557 $ 714,655
Fixed assets	(E) Fixed assets Fixed assets consist of the following: Schedule of Fixed Assets September 30, December 31, 2022 2021 (Unaudited) Computer equipment $ 199,704 $ 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 2,208,404 2,408,986 3,387,867 3,507,391 Accumulated depreciation and amortization (371,236 ) (270,566 ) $ 3,016,631 $ 3,236,825 Depreciation expense for the three and nine months ended September 30, 2022, was $ 33,919 100,670 32,430 96,355
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. Schedule of Dilutive Shares Not Included in Loss Per Share Computation September 30, December 31, 2022 2021 (Unaudited) Options 1,727,778 4,227,778 Warrants 140,055,757 138,191,666 Convertible securities 8,016,068 6,970,063 Total 149,799,603 149,389,507
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 three and nine months ended September 30, 2022, and 2021, the Company incurred shipping and handling costs in the amount of $ 40,254 0

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Schedule of Fair Value Assumptions	Schedule of Fair Value Assumptions Nine months Nine months ended ended September 30, September 30, 2022 2021 (Unaudited) Expected price volatility 144.21 145.73 N/A Risk-free interest rate 2.55 4.21 N/A Expected life in years 5 N/A Dividend yield — N/A
Schedule of Inventories	Schedule of Inventories September 30, December 31, 2022 2021 (Unaudited) Finished goods $ 21,061 $ 328,229 Work in process 83,141 35,213 Raw materials 155,696 351,213 Other inventory 23,659 — Total Inventory $ 283,557 $ 714,655
Schedule of Fixed Assets	Schedule of Fixed Assets September 30, December 31, 2022 2021 (Unaudited) Computer equipment $ 199,704 $ 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 2,208,404 2,408,986 3,387,867 3,507,391 Accumulated depreciation and amortization (371,236 ) (270,566 ) $ 3,016,631 $ 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 September 30, December 31, 2022 2021 (Unaudited) Options 1,727,778 4,227,778 Warrants 140,055,757 138,191,666 Convertible securities 8,016,068 6,970,063 Total 149,799,603 149,389,507

OPERATING LEASE (Tables)

OPERATING LEASE (Tables)	9 Months Ended
	Sep. 30, 2022
Leases [Abstract]
Schedule of Operating Lease Liability	Schedule of Operating Lease Liability 2022 $ 107,656 2023 440,308 2024 110,884 Total minimum lease payments 658,848 Discount (72,558 ) Operating lease liability $ 586,290

FINANCING LEASE (Tables)

FINANCING LEASE (Tables)	9 Months Ended
	Sep. 30, 2022
Financing Lease
Schedule of future minimum lease payments	Schedule of future minimum lease payments 2022 $ 24,750 2023 99,000 2024 499,500 Total minimum lease payments 623,250 Present value discount (173,813 ) Financing lease liability $ 449,437

FINANCING LEASE _ RELATED PAR_2

FINANCING LEASE – RELATED PARTY (Tables)	9 Months Ended
	Sep. 30, 2022
Financing Lease Related Party
Schedule of Financing Lease Liability	Schedule of Financing Lease Liability 2022 $ 24,750 2023 99,000 2024 474,750 Total minimum lease payments 598,500 Discount (149,944 ) Financing lease liability $ 448,556

OPTIONS AND WARRANTS (Tables)

OPTIONS AND WARRANTS (Tables)	9 Months Ended
	Sep. 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 $ — Cancelled / Expired — — — Balance at September 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 $ 0.25 0.28 1,727,778 2.9 $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 ) 0.00 Balance at June 30, 2022 141,889,090 $ 0.29 $ 204,000 Granted 1,000,000 0.33 — Exercised (1,333,333 ) 0.08 Expired – cancelled (1,500,000 ) 0.00 — Balance at September 30, 2022 140,055,757 $ 0.29 $ 150,667
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 0.50 138,512,714 3.40 $0.29 $150,667 $ 0.51 1.00 1,543,043 0.75 $0.60 — 140,055,757 $150,667

ORGANIZATION, NATURE OF BUSIN_2

ORGANIZATION, NATURE OF BUSINESS AND GOING CONCERN (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated deficit	$ 50,247,626		$ 46,121,210
Working capital deficiency	5,905,028		$ 3,304,637
Cash used in opeartions	$ 907,494	$ 3,879,286
Common Stock par value	$ 0.001		$ 0.001
Cash	$ 71,293		$ 109,514

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Fair Value Assumptions) (Details)	9 Months Ended
	Sep. 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	144.21%
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	4.21%

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Inventory) (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Accounting Policies [Abstract]
Finished goods	$ 21,061	$ 328,229
Work in process	83,141	35,213
Raw materials	155,696	351,213
Other inventory	23,659
Total Inventory	$ 283,557	$ 714,655

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Fixed assets) (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Total fixed assets	$ 3,387,867	$ 3,507,391
Accumulated depreciation	(371,236)	(270,566)
Total fixed assets, net	3,016,631	3,236,825
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Total fixed assets	199,704	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	$ 2,208,404	$ 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	9 Months Ended	12 Months Ended
	Sep. 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	149,799,603	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	140,055,757	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	8,016,068	6,970,063

SUMMARY OF SIGNIFICANT ACCOUN_8

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Accounting Policies [Abstract]
Cash insured amount	$ 250,000		$ 250,000
Depreciation expense	33,919	$ 32,430	100,670	$ 96,355
Shipping and handling costs	$ 40,254	$ 0	$ 40,254	$ 0

OPERATING LEASE (Schedule of Fu

OPERATING LEASE (Schedule of Future Minimum Lease Payments under Operating Lease) (Details)	Sep. 30, 2022 USD ($)
Leases [Abstract]
2022	$ 107,656
2023	440,308
2024	110,884
Total minimum lease payments	658,848
Discount	(72,558)
Operating lease liability	$ 586,290

OPERATING LEASE (Details Narrat

OPERATING LEASE (Details Narrative) - USD ($)	1 Months Ended	9 Months Ended
	Mar. 25, 2019	Sep. 30, 2022	Sep. 30, 2021
Leases [Abstract]
Base rent obligation	$ 33,825
Lease term		2 years
Weighted average discount rate		15%
Operating lease rent expense		$ 340,147	$ 321,153

FINANCING LEASE (Details)

FINANCING LEASE (Details)	Sep. 30, 2022 USD ($)
Financing Lease
2022	$ 24,750
2023	99,000
2024	499,500
Total minimum lease payments	623,250
Present value discount	(173,813)
Financing lease liability	$ 449,437

FINANCING LEASE (Details Narrat

FINANCING LEASE (Details Narrative) - USD ($)		1 Months Ended
	Jul. 11, 2022	Apr. 27, 2022
Offsetting Assets [Line Items]
Lease payment		$ 8,250
Equipment Financing Agreement [Member]
Offsetting Assets [Line Items]
Lessor paid value	$ 450,000
Right of use and lease liability	$ 450,000
Discount rate	21%
Lease payment	$ 8,250
Final payment	$ 450,000

FINANCING LEASE - RELATED PARTY

FINANCING LEASE - RELATED PARTY (Details)	Sep. 30, 2022 USD ($)
2022	$ 24,750
2023	99,000
2024	499,500
Total minimum lease payments	623,250
Discount	(173,813)
Financing lease liability	449,437
Financing Lease Related Party [Member]
2022	24,750
2023	99,000
2024	474,750
Total minimum lease payments	598,500
Discount	(149,944)
Financing lease liability	$ 448,556

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		9 Months Ended
	Apr. 09, 2021	Apr. 02, 2021	Apr. 16, 2021	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Sep. 22, 2022	Sep. 15, 2022	Sep. 09, 2022	Aug. 31, 2022	Aug. 29, 2022	Aug. 22, 2022	Dec. 31, 2021	Feb. 25, 2021	Feb. 12, 2021
Debt Instrument [Line Items]
Notes payable				$ 320,122		$ 320,122								$ 466,762
Debt principal amount									$ 2,027,695							$ 1,610,005
Interest rate									20%
Notes payable				320,122		320,122								466,762
Interest expense				16,800	$ 23,666	32,866	$ 53,784
Accrued interest				$ 83,510		$ 83,510								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				$ 25,122		$ 25,122								$ 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					$ 42,500		$ 60,000	$ 37,000	$ 25,000	$ 20,000
Interest rate	18%	18%	18%					10%		10%	10%	10%	10%
Debt Instrument, Term	5 years	5 years
Common stock warrants issued	500,000	2,000,000	250,000
Warrants exercise price	$ 0.20	$ 0.20	$ 0.25
Warrant expire term			5 years
Promissory Note [Member] | Notes Payable, Other Payables [Member]
Debt Instrument [Line Items]
Debt Instrument, Term	1 year	1 year	1 year
Promissory Note 1 [Member]
Debt Instrument [Line Items]
Debt principal amount			$ 20,000					$ 42,500		$ 10,000	$ 13,000	$ 10,000	$ 5,000
Interest rate			18%					10%		10%	10%	10%	10%
Debt Instrument, Term			5 years
Common stock warrants issued			200,000
Warrants exercise price			$ 0.25
Promissory Note 1 [Member] | Notes Payable, Other Payables [Member]
Debt Instrument [Line Items]
Debt Instrument, Term			1 year

NOTES PAYABLE _ RELATED PARTY (

NOTES PAYABLE – RELATED PARTY (Details Narrative) - USD ($)

1 Months Ended

3 Months Ended

9 Months Ended

Sep. 09, 2022

Sep. 22, 2022

Sep. 15, 2022

Aug. 31, 2022

Aug. 29, 2022

Aug. 22, 2022

Apr. 02, 2021

Sep. 30, 2022

Sep. 30, 2021

Sep. 30, 2022

Sep. 30, 2021

Dec. 31, 2021

Apr. 16, 2021

Apr. 09, 2021

Feb. 12, 2021

Offsetting Assets [Line Items]

Notes payable - related party

$ 605,000

$ 605,000

$ 300,000

Face amount

$ 2,027,695

$ 1,610,005

Interest rate

20%

Maturity date

Feb. 12, 2023

Exercise price

$ 0.20

Interest expense

9,473

$ 16,635

34,562

$ 27,648

Accrued interest

$ 92,270

$ 92,270

$ 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

$ 60,000

$ 42,500

$ 37,000

$ 25,000

$ 20,000

$ 200,000

$ 25,000

$ 50,000

Interest rate

10%

10%

10%

10%

10%

18%

18%

18%

Maturity date

Aug. 16, 2023

Mar. 22, 2023

Aug. 31, 2023

Aug. 29, 2023

Aug. 22, 2023

Promissory Note [Member] | Paul Sallarulo [Member]

Offsetting Assets [Line Items]

Face amount

$ 150,000

Interest rate

18%

Maturity date

Apr. 02, 2022

Promissory Note [Member] | Michael V Barbera [Member]

Offsetting Assets [Line Items]

Face amount

$ 150,000

Interest rate

18%

Maturity date

Apr. 02, 2022

Promissory Note 1 [Member]

Offsetting Assets [Line Items]

Face amount

$ 10,000

$ 42,500

$ 13,000

$ 10,000

$ 5,000

$ 20,000

Interest rate

10%

10%

10%

10%

10%

18%

Maturity date

Sep. 09, 2023

Mar. 22, 2023

Aug. 31, 2023

Aug. 29, 2023

Aug. 22, 2023

Promissory Note 2 [Member]

Offsetting Assets [Line Items]

Face amount

$ 10,000

Interest rate

10%

Maturity date

Sep. 09, 2023

Promissory Note 3 [Member]

Offsetting Assets [Line Items]

Face amount

$ 15,000

Interest rate

10%

Maturity date

Sep. 09, 2023

Promissory Notes [Member]

Offsetting Assets [Line Items]

Face amount

$ 15,000

Interest rate

10%

Maturity date

Sep. 09, 2023

NOTES PAYABLE _ CONVERTIBLE __2

NOTES PAYABLE – CONVERTIBLE – RELATED PARTY (Details Narrative) - USD ($)				1 Months Ended	3 Months Ended		9 Months Ended
	May 12, 2021	Feb. 12, 2021	Aug. 03, 2020	Sep. 15, 2022	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Short-Term Debt [Line Items]
Notes payable - convertible - related party					$ 2,027,695		$ 2,027,695		$ 1,689,746
Interest rate				20%
Debt principal amount		$ 1,610,005		$ 2,027,695
Repayments of Convertible Debt				1,689,746				$ 35,000
Accrued interest paid				$ 337,949
Exercise price of warrants		$ 0.20
Gain (Loss) on Extinguishment of Debt								(6,743,015)
Maturity date				Feb. 12, 2023
Interest expense					16,800	23,666	32,866	53,784
Accrued interest					83,510		83,510		42,773
Convertible Note Payable [Member]
Short-Term Debt [Line Items]
Interest expense					45,371	$ 88,244	276,228	$ 239,766
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%
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
Exercise price of warrants	$ 0.35
Loss on extinguishment		$ 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					$ 176,724		$ 176,724		$ 227,022

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)		3 Months Ended		9 Months Ended
	Jun. 02, 2022	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 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		$ 0	$ 0	$ 426,759	$ 0

STOCKHOLDERS_ DEFICIT (Details

STOCKHOLDERS’ DEFICIT (Details Narrative) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022	Sep. 30, 2021
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Proceeds pursuant to a private placement of Common Stock and warrants	$ 1,300,000	$ 1,300,000
Non cash compensation		$ 509,013	$ 1,019,075
Chief Executive Officer [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Non cash compensation	$ 80,058

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
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
Offsetting Assets [Line Items]
Options Outstanding, beginning	1,727,778	2,727,778	4,227,778	4,542,500
Weighted Average Exercise Price, beginning	$ 0.27	$ 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	1,727,778	2,727,778	4,227,778
Weighted Average Exercise Price, ending	$ 0.27	$ 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]	9 Months Ended
	Sep. 30, 2022 USD ($) $ / shares shares
Price Range One [Member]
Offsetting Assets [Line Items]
Range of Exercise Prices, Lower	$ 0.25
Range of Exercise Prices, Upper	$ 0.28
$0.01 - $0.50 [Member]
Offsetting Assets [Line Items]
Number Outstanding | shares	1,727,778
Weighted Average Remaining Contractual Life (Years)	2 years 10 months 24 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
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options Outstanding, beginning	141,889,090	143,434,090	138,191,666	38,920,378
Weighted Average Exercise Price, beginning	$ 0.29	$ 0.29	$ 0.29	$ 0.27
Aggregate intrinsic value, beginning	$ 204,000	$ 1,147,100	$ 3,824,750	$ 2,973,660
Granted	1,000,000	500,000	5,242,424	100,271,288
Weighted Average Exercise Price, Granted	$ 0.33	$ 0.33	$ 0.33	$ 0.29
Warrant exercised	(1,333,333)			(1,000,000)
Weighted Average Exercise Price, Exercised	$ 0.08			$ 0.12
Cancelled	(1,500,000)	(2,045,000)
Weighted Average Exercise Price, Cancelled	$ 0	$ 0
Options Outstanding, ending	140,055,757	141,889,090	143,434,090	138,191,666
Weighted Average Exercise Price, ending	$ 0.29	$ 0.29	$ 0.29	$ 0.29
Aggregate intrinsic value, ending	$ 150,667	$ 204,000	$ 1,147,100	$ 3,824,750

OPTIONS AND WARRANTS (Warrant E

OPTIONS AND WARRANTS (Warrant Exercisable and Outstanding) (Details) - Warrant [Member]	9 Months Ended
	Sep. 30, 2022 USD ($) $ / shares shares
Number Outstanding | shares	140,055,757
Average Intrinsic Value | $	$ 150,667
$0.01 - $0.50 [Member]
Range of Exercise Prices, Lower	$ 0.01
Range of Exercise Prices, Upper	$ 0.50
Number Outstanding | shares	138,512,714
Weighted Average Remaining Contractual Life (Years)	3 years 4 months 24 days
Weighted Average Exercise Price	$ 0.29
Average Intrinsic Value | $	$ 150,667
$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)	9 months
Weighted Average Exercise Price	$ 0.60
Average Intrinsic Value | $

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member] - USD ($)	1 Months Ended
	Oct. 31, 2022	Oct. 20, 2022
Subsequent Event [Line Items]
Lessee, Operating Lease, Discount Rate	21%
Deferred Rent Credit	$ 8,250
Final payment	$ 450,000
Shares issued		3,939,390
Warrants issued shares		7,878,780