Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 08, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Gratitude Health, Inc. | |
Entity Central Index Key | 0001489588 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Current Reporting Status | No | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 17,082,065 | |
Entity File Number | 333-185083 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation State Country Code | NV |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
CURRENT ASSETS: | ||
Cash | $ 16,120 | $ 60,274 |
Accounts receivable | 9,001 | 9,432 |
Inventory | 60,116 | |
Prepaid expenses and other current assets | 9,205 | 8,939 |
Total Current Assets | 34,326 | 138,761 |
OTHER ASSETS: | ||
Property and equipment, net | 37,487 | |
Operating lease right-of-use assets, net | 46,713 | |
Deposit | 6,828 | 6,828 |
Total Other Assets | 53,541 | 44,315 |
TOTAL ASSETS | 87,867 | 183,076 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued expenses | 115,400 | 69,867 |
Accrued salaries and related payroll liabilities | 8,870 | 21,745 |
Convertible notes payable, net of debt discount | 603,787 | |
Operating lease liabilities, current portion | 24,982 | |
Total Current Liabilities | 753,039 | 91,612 |
Long-term liabilities: | ||
Operating lease liabilities, less current portion | 21,731 | |
Total Liabilities | 774,770 | 91,612 |
COMMITMENTS AND CONTINGENCIES (see Note 9) | ||
STOCKHOLDERS' EQUITY (DEFICIT): | ||
Common stock $0.001 par value: 600,000,000 shares authorized; 17,082,065 and 16,832,065 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively. | 17,082 | 16,832 |
Common stock to be issued (2,600,000 and none shares as of September 30, 2019 and December 31, 2018, respectively) | 2,600 | 2,600 |
Additional paid-in capital | 2,506,335 | 1,186,034 |
Accumulated deficit | (3,213,941) | (1,115,024) |
Total Stockholders' Equity (Deficit) | (686,903) | 91,464 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | 87,867 | 183,076 |
Convertible Series A Preferred stock | ||
STOCKHOLDERS' EQUITY (DEFICIT): | ||
Preferred stock, value | 519 | 520 |
Total Stockholders' Equity (Deficit) | 519 | 520 |
Convertible Series B Preferred stock | ||
STOCKHOLDERS' EQUITY (DEFICIT): | ||
Preferred stock, value | 500 | 500 |
Total Stockholders' Equity (Deficit) | 500 | 500 |
Convertible Series C Preferred stock | ||
STOCKHOLDERS' EQUITY (DEFICIT): | ||
Preferred stock, value | 2 | 2 |
Total Stockholders' Equity (Deficit) | $ 2 | $ 2 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 600,000,000 | 600,000,000 |
Common stock, shares issued | 17,082,065 | 16,832,065 |
Common stock, shares outstanding | 17,082,065 | 16,832,065 |
Common stock to be issued | 2,600,000 | |
Convertible Series A Preferred stock | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 520,000 | 520,000 |
Preferred stock, shares issued | 519,000 | 520,000 |
Preferred stock, shares outstanding | 519,000 | 520,000 |
Convertible Series B Preferred stock | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | 500,000 | 500,000 |
Preferred stock, shares outstanding | 500,000 | 500,000 |
Convertible Series C Preferred stock | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 2,500 | 2,500 |
Preferred stock, shares issued | 2,250 | 2,250 |
Preferred stock, shares outstanding | 2,250 | 2,250 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Net revenues | $ 9,355 | $ 9,855 | ||
Cost of sales | 64,075 | 69,035 | ||
Gross loss | (54,720) | (59,180) | ||
OPERATING EXPENSES: | ||||
Compensation and related cost | 91,204 | 100,085 | 312,178 | 221,103 |
Professional and consulting expenses | 57,107 | 37,010 | 163,793 | 395,095 |
Research and development expenses | 10,879 | 2,780 | 43,424 | 2,780 |
Selling and marketing expenses | 7,154 | 3,094 | 31,647 | 5,179 |
General and administrative | 78,295 | 68,956 | 174,408 | 134,184 |
Total Operating Expenses | 244,639 | 211,925 | 725,450 | 758,341 |
LOSS FROM OPERATIONS | (299,359) | (211,925) | (784,630) | (758,341) |
OTHER INCOME (EXPENSE): | ||||
Interest income | 9 | |||
Interest expense | (36,659) | (62,487) | (33,527) | |
Other income (expense) | (36,659) | (62,487) | (33,518) | |
LOSS BEFORE PROVISION FOR INCOME TAXES | (336,018) | (211,925) | (847,117) | (791,859) |
Provision for income taxes | ||||
NET LOSS | (336,018) | (211,925) | (847,117) | (791,859) |
Deemed dividend | (1,196,800) | (1,251,800) | ||
NET LOSS AVAILABLE TO COMMON STOCKHOLDERS | $ (1,532,818) | $ (211,925) | $ (2,098,917) | $ (791,859) |
NET LOSS PER COMMON SHARE | ||||
Basic and diluted | $ (0.08) | $ (0.01) | $ (0.11) | $ (0.03) |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||
Basic and diluted | 19,682,051 | 19,432,051 | 19,521,795 | 31,367,808 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity (Deficit) - USD ($) | SERIES A Preferred Stock | SERIES B Preferred Stock | SERIES C Preferred Stock | Common Stock | Common Stock - Unissued | Additional Paid-in Capital | Subscription Receivable | Accumulated Deficit | Total |
Balance at Dec. 31, 2017 | $ 500 | $ 24,492 | $ (96,424) | $ (71,432) | |||||
Balance, shares at Dec. 31, 2017 | 500,000 | ||||||||
Issuance of preferred stock for cash and conversion of notes payable and accrued interest | $ 500 | 507,979 | $ (260,000) | 248,479 | |||||
Issuance of preferred stock for cash and conversion of notes payable and accrued interest, shares | 500,000 | ||||||||
Recapitalization of the Company | $ 53,142 | (76,117) | (22,975) | ||||||
Recapitalization of the Company, shares | 53,141,833 | ||||||||
Issuance of preferred stock for cash | $ 20 | 1,980 | 2,000 | ||||||
Issuance of preferred stock for cash, shares | 20,000 | ||||||||
Debt discount in connection with the issuance of stock warrants | 9,992 | 9,992 | |||||||
Net Loss for the period | (159,513) | (159,513) | |||||||
Balance at Mar. 31, 2018 | $ 520 | $ 500 | $ 53,142 | 468,326 | (260,000) | (255,937) | 6,551 | ||
Balance, shares at Mar. 31, 2018 | 520,000 | 500,000 | 53,141,833 | ||||||
Cancellation of shares | $ (36,310) | 36,310 | |||||||
Cancellation of shares,shares | (36,309,768) | ||||||||
Collection of subscription receivable | 260,000 | 260,000 | |||||||
Unissued common stock for services | $ 2,600 | 231,400 | 234,000 | ||||||
Unissued common stock for services, Shares | 2,600,000 | ||||||||
Net Loss for the period | (420,421) | (420,421) | |||||||
Balance at Jun. 30, 2018 | $ 520 | $ 500 | $ 16,832 | $ 2,600 | 736,036 | (676,358) | 80,130 | ||
Balance, shares at Jun. 30, 2018 | 520,000 | 500,000 | 16,832,065 | 2,600,000 | |||||
Issuance of preferred stock for cash | $ 1 | 149,999 | 150,000 | ||||||
Issuance of preferred stock for cash, shares | 750 | ||||||||
Net Loss for the period | (211,925) | (211,925) | |||||||
Balance at Sep. 30, 2018 | $ 520 | $ 500 | $ 1 | $ 16,832 | $ 2,600 | 886,035 | (888,283) | 18,205 | |
Balance, shares at Sep. 30, 2018 | 520,000 | 500,000 | 750 | 16,832,065 | 2,600,000 | ||||
Balance at Dec. 31, 2018 | $ 520 | $ 500 | $ 2 | $ 16,832 | $ 2,600 | 1,186,034 | (1,115,024) | 91,464 | |
Balance, shares at Dec. 31, 2018 | 520,000 | 500,000 | 2,250 | 16,832,065 | 2,600,000 | ||||
Beneficial conversion feature in connection with the issuance of convertible note payable | 13,750 | 13,750 | |||||||
Net Loss for the period | (227,335) | (227,335) | |||||||
Balance at Mar. 31, 2019 | $ 520 | $ 500 | $ 2 | $ 16,832 | $ 2,600 | 1,199,784 | (1,342,359) | (122,121) | |
Balance, shares at Mar. 31, 2019 | 520,000 | 500,000 | 2,250 | 16,832,065 | 2,600,000 | ||||
Issuance of common stock in connection with conversion of preferred stock | $ 1 | $ 250 | (249) | ||||||
Issuance of common stock in connection with conversion of preferred stock, Shares | (1,000) | 250,000 | |||||||
Beneficial conversion feature in connection with the issuance of convertible note payable | 55,000 | 55,000 | |||||||
Deemed dividend | 55,000 | (55,000) | |||||||
Net Loss for the period | (283,764) | (283,764) | |||||||
Balance at Jun. 30, 2019 | $ 519 | $ 500 | $ 2 | $ 17,082 | $ 2,600 | 1,309,535 | (1,681,123) | (350,885) | |
Balance, shares at Jun. 30, 2019 | 519,000 | 500,000 | 2,250 | 17,082,065 | 2,600,000 | ||||
Deemed dividend | 1,196,800 | (1,196,800) | |||||||
Net Loss for the period | (336,018) | (336,018) | |||||||
Balance at Sep. 30, 2019 | $ 519 | $ 500 | $ 2 | $ 17,082 | $ 2,600 | $ 2,506,335 | $ (3,213,941) | $ (686,903) | |
Balance, shares at Sep. 30, 2019 | 519,000 | 500,000 | 2,250 | 17,082,065 | 2,600,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (847,117) | $ (791,859) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 12,588 | 7,887 |
Amortization of ROU asset | 16,853 | |
Amortization of debt discount | 62,487 | 29,703 |
Impairment loss | 24,899 | |
Inventory write-off | 14,309 | |
Stock-based compensation | 234,000 | |
Change in operating assets and liabilities: | ||
Accounts receivable | 431 | |
Inventory | 45,807 | (83,081) |
Prepaid expenses and other current assets | (266) | (7,674) |
Advance to supplier | 11,200 | |
Deposit | (6,828) | |
Accounts payable and accrued expenses | 42,533 | 90,515 |
Accrued salaries and related payroll liabilities | (9,875) | |
Operating lease liabilities | (16,853) | |
NET CASH USED IN OPERATING ACTIVITIES | (654,204) | (516,137) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of equipment | (36,348) | |
NET CASH USED IN INVESTING ACTIVITIES | (36,348) | |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net proceeds received from issuance of convertible notes payable, net of issuance cost | 610,050 | 120,000 |
Net proceeds received from issuance of preferred stock | 415,000 | |
Repayments on advances from related parties | (345) | |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 610,050 | 534,655 |
NET DECREASE IN CASH | (44,154) | (17,830) |
CASH, beginning of year | 60,274 | 20,826 |
CASH, end of period | 16,120 | 2,996 |
Cash paid during the period for: | ||
Interest | ||
Income taxes | ||
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Beneficial conversion feature in connection with the issuance of convertible notes payable | 68,750 | |
Operating lease right-of-use assets and operating lease liabilities recorded upon adoption of ASC 842 | 63,566 | |
Issuance of preferred stock for conversion of notes payable and accrued interest | 281,789 | |
Assumption of liabilities in connection with the reverse merger | $ 22,975 |
Organization and Operations
Organization and Operations | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Operations | Note 1 - Organization and Operations Gratitude Health, Inc., (the "Company", formerly Vapir Enterprises, Inc.) was incorporated in the State of Nevada on December 17, 2009. Effective March 23, 2018, the Company changed its legal name to Gratitude Health, Inc. from Vapir Enterprises Inc. On March 26, 2018, the Company merged with Gratitude Health Inc. ("Gratitude Subsidiary"), a private company incorporated in Florida on September 14, 2017, in a transaction treated as a reverse acquisition and recapitalization effected by a share exchange. The consolidated financial statements are those of Gratitude Subsidiary (the accounting acquirer) prior to the merger and reflect the consolidated operations of the Company (the legal acquirer) from the date of the merger. The equity of the consolidated entity is the historical equity of Gratitude Subsidiary retroactively restated to reflect the number of shares issued by the Company in the reverse acquisition. The Company's former business was focused on inventing, developing and producing aromatherapy devices and vaporizers before the merger. The Company is now engaged in manufacturing, selling and marketing functional RTD (Ready to Drink) beverages sold under the Company's trademark. On March 26, 2018 ("Closing Date"), Gratitude Subsidiary, a private Florida corporation, entered into a Share Exchange Agreement (the "Exchange Agreement") with the Company, Hamid Emarlou, the principal shareholder of the Company ("Acquiror Principal Shareholder"), and all of the principal shareholders of Gratitude Subsidiary. Upon closing of the transactions contemplated under the Exchange Agreement (the "Merger"), Gratitude Subsidiary became a wholly-owned subsidiary of the Company. On March 26, 2018, the Company closed the Merger with Gratitude Subsidiary. The Merger has constituted a change in control, the majority of the Board of Directors changed with the consummation of the Merger. The Company issued to the stockholders of Gratitude Subsidiary shares of preferred stock which represented approximately 86% of the combined company on a fully converted basis after the closing of the Exchange Agreement and the Spin off Agreement as described below. On the Closing Date, Acquiror Principal Shareholder entered into a Spin Off Agreement with the Company for the sale of the existing wholly owned Vapir, Inc. subsidiary of the Company in exchange for Acquiror Principal Shareholder's 36,309,768 shares of Common Stock. The Spin Off Agreement closed on April 14, 2018. The Company recognized the disposition of the Vapir business on the date of merger. |
Significant and Critical Accoun
Significant and Critical Accounting Policies and Practices | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Significant and Critical Accounting Policies and Practices | Note 2 - Significant and Critical Accounting Policies and Practices Basis of Presentation The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the United States Securities and Exchange Commission for interim financial information, which includes condensed consolidated financial statements and present the consolidated financial statements of the Company and its wholly-owned subsidiary as of September 30, 2019. All intercompany transactions and balances have been eliminated. Accordingly, the condensed consolidated financial statements do not include all the information and notes necessary for a comprehensive presentation of financial position and results of operations and should be read in conjunction with the audited financial statements of the Company for the year ended December 31, 2018 and included in the form 10-K filed with the SEC on March 25, 2019. It is management's opinion that all material adjustments (consisting of normal recurring adjustments) have been made, which are necessary for a fair financial statement presentation. Significant intercompany accounts and transactions have been eliminated in consolidation. The results for the interim period are not necessarily indicative of the results to be expected for the year ending December 31, 2019. Use of Estimates and Assumptions and Critical Accounting Estimates The preparation 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, 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. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet, and revenues and expenses for the period then ended. Actual results may differ significantly from those estimates. Significant estimates made by management include, but are not limited to valuation of deferred tax assets, useful life of property and equipment, inventory reserves, and valuation of debt discounts. Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. The reclassified amounts have no impact on the Company's previously reported financial position or results of operations. Cash and cash equivalents The Company considers all highly liquid debt instruments and other short-term investments with maturities of three months or less, when purchased, to be cash equivalents. The Company held no cash equivalents as of September 30, 2019 and December 31, 2018. The Company maintains cash balances at one financial institution that is insured by the Federal Deposit Insurance Corporation. The Company's account at this institution is insured by the Federal Deposit Insurance Corporation ("FDIC") up to $250,000. As of September 30, 2019 and December 31, 2018, the Company has not reached bank balances exceeding the FDIC insurance limit. To reduce its risk associated with the failure of such financial institution, the Company evaluates at least annually the rating of the financial institution in which it holds deposits. Fair value of financial instruments The estimated fair value of certain financial instruments, including cash, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued expenses and accrued salaries and related payroll liabilities are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. Inventory The Company values inventory, consisting of finished goods and raw materials, at the lower of cost or net realizable value. Cost is determined on the first-in and first-out ("FIFO") method. The Company reduces inventory for the diminution of value, resulting from product obsolescence, damage or other issues affecting marketability, equal to the difference between the cost of the inventory and its estimated net realizable value. Factors utilized in the determination of the estimated net realizable value include (i) estimates of future demand, and (ii) competitive pricing pressures. The Company recorded inventory write-off and spoilage of $14,309 and $0 during the nine months ended September 30, 2019 and 2018, respectively. The Company recorded inventory write-off and spoilage of $11,423 and $0 during the three months ended September 30, 2019 and 2018, respectively. Property and Equipment Property and equipment are carried at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets of 3 years. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired, or disposed of, the cost and accumulated depreciation are removed, and any resulting gains or losses are included in the consolidated statement of operations. Revenue Recognition On January 1, 2018, the Company adopted the Accounting Standard Codification ("ASC") Topic 606 and the related amendments Revenue from Contracts with Customers, which requires revenue to be recognized in a manner that depicts the transfer of goods or services to customers in amounts that reflect the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company recognizes revenue by applying the following steps: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. The Company's performance obligations are satisfied at the point in time when products are shipped or delivered to the customer, which is when the customer has title and the significant risks and rewards of ownership. Therefore, the Company's contracts have a single performance obligation (shipment or delivery of product). The Company primarily receives fixed consideration for sales of product. Cost of Sales The primary components of cost of sales include the cost of the product, production costs, warehouse storage costs and shipping fees. Research and development Research and development costs incurred in the development of the Company's products are expensed as incurred. Shipping and Handling Costs The Company accounts for shipping and handling fees in accordance with ASC 606. While amounts charged to customers for shipping products are included in revenues, the related costs of shipping products to customers are classified in selling and marketing expenses as incurred. Shipping costs included in selling and marketing expenses were $3,090 and $0 for the nine months ended September 30, 2019 and 2018, respectively. Shipping costs included in selling and marketing expenses were $521 and $0 for the three months ended September 30, 2019 and 2018, respectively. Advertising Costs The Company applies ASC 720 "Other Expenses" to account for advertising related costs. Pursuant to ASC 720-35-25-1, the Company expenses the advertising costs when the first time the advertising takes place. Advertising costs were $17,557 and $6,459 for the nine months ended September 30, 2019 and 2018, respectively, and was included in general and administrative expenses. Advertising costs were $6,633 and $2,380 for the three months ended September 30, 2019 and 2018, respectively, and was included in general and administrative expenses. Stock-based compensation Stock-based compensation is accounted for based on the requirements of the Share-Based Payment Topic of ASC 718 which requires recognition in the financial statements of the cost of employee and director services received in exchange for an award of equity instruments over the period the employee or director is required to perform the services in exchange for the award (presumptively, the vesting period). The ASC also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award. Through March 31, 2018, pursuant to ASC 505-50 - Equity-Based Payments to Non-Employees, all share-based payments to non-employees, including grants of stock options, were recognized in the consolidated financial statements as compensation expense over the service period of the consulting arrangement or until performance conditions were expected to be met. Using a Black Scholes valuation model, the Company periodically reassessed the fair value of non-employee options until service conditions were met, which generally aligned with the vesting period of the options, and the Company adjusted the expense recognized in the consolidated financial statements accordingly. In June 2018, the FASB issued ASU No. 2018-07, Improvements to Nonemployee Share-Based Payment Accounting, which simplifies several aspects of the accounting for nonemployee share-based payment transactions by expanding the scope of the stock-based compensation guidance in ASC 718 to include share-based payment transactions for acquiring goods and services from non-employees. ASU No. 2018-07 is effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods. Early adoption is permitted, but entities may not adopt prior to adopting the new revenue recognition guidance in ASC 606. The Company adoption did not have any material impact on its consolidated financial statements. The expense is recognized over the vesting period of the award. Until the measurement date is reached, the total amount of compensation expense remains uncertain. The Company records compensation expense based on the fair value of the award at the reporting date. The awards to consultants and other third-parties are then revalued, or the total compensation is recalculated, based on the then current fair value, at each subsequent reporting date. Leases In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02, Leases On January 1, 2019, the Company adopted ASU No. 2016-02, applying the package of practical expedients to leases that commenced before the effective date whereby the Company elected to not reassess the following: (i) whether any expired or existing contracts contain leases and; (ii) initial direct costs for any existing leases. For contracts entered into on or after the effective date, at the inception of a contract the Company assessed whether the contract is, or contains, a lease. The Company's assessment is based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether we obtain the right to substantially all the economic benefit from the use of the asset throughout the period, and (3) whether it has the right to direct the use of the asset. The Company will allocate the consideration in the contract to each lease component based on its relative stand-alone price to determine the lease payments. Operating lease right of use assets ("ROU") assets represents the right to use the leased asset for the lease term and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most leases do not provide an implicit rate, the Company use an incremental borrowing rate based on the information available at the adoption date in determining the present value of future payments. Lease expense for minimum lease payments is amortized on a straight-line basis over the lease term and is included in general and administrative expenses in the condensed consolidated statements of operations. Income Taxes The Company accounts for income taxes pursuant to the provision of ASC 740-10, "Accounting for Income Taxes" ("ASC 740-10"), which requires, among other things, an asset and liability approach to calculating deferred income taxes. The asset and liability approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. A valuation allowance is provided to offset any net deferred tax assets for which management believes it is more likely than not that the net deferred asset will not be realized. The Company follows the provision of ASC 740-10 related to Accounting for Uncertain Income Tax Positions. When tax returns are filed, there may be uncertainty about the merits of positions taken or the amount of the position that would be ultimately sustained. In accordance with the guidance of ASC 740-10, the benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more likely than not recognition threshold are measured at the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefit associated with tax positions taken that exceed the amount measured as described above should be reflected as a liability for uncertain tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company believes its tax positions are all more likely than not to be upheld upon examination. As such, the Company has not recorded a liability for uncertain tax benefits. The Company has adopted ASC 740-10-25, "Definition of Settlement", which provides guidance on how an entity should determine whether a tax position is effectively settled for the purpose of recognizing previously unrecognized tax benefits and provides that a tax position can be effectively settled upon the completion and examination by a taxing authority without being legally extinguished. For tax positions considered effectively settled, an entity would recognize the full amount of tax benefit, even if the tax position is not considered more likely than not to be sustained based solely on the basis of its technical merits and the statute of limitations remains open. The federal and state income tax returns of the Company are subject to examination by the IRS and state taxing authorities, generally for three years after they are filed. Impairment of long-lived assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset's estimated fair value and its book value. The Company recorded impairment expense of $24,899 and $0 during the three and nine months ended September 30, 2019. There was no impairment expense during the three and nine months ended September 30, 2018. The Company impaired the net book value of $24,899 related to equipment used for the production of the ready to drink tea beverage as the Company has shifted its focus on the product development of the Company's Keto complete meal beverage and was included in general and administrative expenses as reflected in the consolidated statements of operations. Basic and diluted net loss per share Basic net loss per share is computed by dividing the net loss by the weighted average number of common shares during the period. Diluted net loss per share is computed using the weighted average number of common shares and potentially dilutive securities outstanding during the period. The potentially dilutive common stock equivalents for the nine months ended September 30, 2019 and 2018 were excluded from the dilutive loss per share calculation as they would be antidilutive due to the net loss. The following were the computation of diluted shares outstanding and in periods where the Company has a net loss, all dilutive securities are excluded. September 30, September 30, Common stock equivalents: Stock options 1,940,000 1,940,000 Convertible notes payable 17,187,500 - Convertible Preferred Stock 266,000,000 105,000,000 Total 285,127,500 106,940,000 Recent accounting pronouncements In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)". The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases. The new guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those annual periods and is applied retrospectively. The Company elected to apply the transition provisions as of January 1, 2019, the date of adoption, and recorded lease ROU assets and related liabilities on the consolidated balance sheet related to our operating leases. In July 2017, the FASB issued ASU 2017-11 "Earnings Per Share (Topic 260)". The amendments in the update change the classification of certain equity-linked financial instruments (or embedded features) with down round features. The amendments also clarify existing disclosure requirements for equity-classified instruments. For freestanding equity-classified financial instruments, the amendments require entities that present earnings per share ("EPS") in accordance with Topic 260, Earnings Per Share, to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. Convertible instruments with embedded conversion options that have down round features would be subject to the specialized guidance for contingent beneficial conversion features (in Subtopic 470-20, Debt—Debt with Conversion and Other Options), including related EPS guidance (in Topic 260). For public business entities, the amendments in Part I of this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 with early adoption permitted. The Company adopted this pronouncement as of fiscal 2017 and applied it to the convertible notes payable issued in March and May of 2019 that include down round features. During the three and nine months ended September 30, 2019, a down round feature present in a convertible note payable and convertible preferred stock was triggered (see Notes 7 and 8). In June 2018, the FASB issued ASU No. 2018-07 "Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting." These amendments expand the scope of Topic 718, Compensation - Stock Compensation (which currently only includes share-based payments to employees) to include share-based payments issued to nonemployees for goods or services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. The ASU supersedes Subtopic 505-50, Equity - Equity-Based Payments to Non-Employees. The guidance is effective for public companies for fiscal years, and interim fiscal periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, but no earlier than a company's adoption date of Topic 606, Revenue from Contracts with Customers. The adoption of this guidance had no material impact on its accounting and disclosures. In August 2018, the FASB issued ASU 2018-13, "Changes to Disclosure Requirements for Fair Value Measurements", which will improve the effectiveness of disclosure requirements for recurring and nonrecurring fair value measurements. The standard removes, modifies, and adds certain disclosure requirements, and is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company will be evaluating the impact this standard will have on the Company's consolidated financial statements. Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures. |
Going Concern
Going Concern | 9 Months Ended |
Sep. 30, 2019 | |
Going Concern [Abstract] | |
Going Concern | Note 3 - Going Concern The Company's unaudited condensed consolidated financial statements have been prepared assuming that it will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business. As reflected in the unaudited condensed consolidated financial statements, the Company has an accumulated deficit and working capital deficit of approximately $3,213,941and $719,000 at September 30, 2019,respectively, and incurred a net loss of approximately $847,000 and used cash in operating activities of approximately $654,000 for the nine months ended September 30, 2019. These circumstances raise substantial doubt about the Company's ability to continue as a going concern for a period of 12 months from the date of this report. The ability of the Company to continue as a going concern is dependent on the Company's ability to implement its business plan, raise capital, and generate sufficient revenues. Currently, management is seeking capital to implement its business plan and generate sufficient revenues. There is no guarantee that the Company will be able to raise sufficient capital or generate a level of revenues to sustain its operations. The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 4 - Inventory Inventory consisted of the following: September 30, December 31, (Unaudited) Finished goods $ - $ 39,984 Raw materials - 20,132 $ - $ 60,116 At September 30, 2019 and December 31, 2018, inventory held at third party locations amounted to $0 and $60,116, respectively. During the three and nine months ended September 30, 2019, there were $11,423 and $14,309, respectively, inventory write-offs included in cost of sales for both periods. There were no comparable write-offs during the three and nine months ended September 30, 2018. The write-offs are related to spoilage and value of the remaining cost of raw materials for the Company's ready to drink tea beverage as the Company has shifted its focus on the product development of the Company's Keto complete meal beverage. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 5 - Property and Equipment Property and equipment consisted of the following: Estimated life As of As of (Unaudited) Molding Tool equipment 3 years $ 30,592 $ 30,592 Packing equipment 3 years 19,756 19,756 Less: Accumulated depreciation (25,449 ) (12,861 ) Net book value (24,899 ) - Less: Impairment loss (24,899 ) - $ - $ 37,487 Depreciation expense amounted to $12,588 and $7,887 for the nine months ended September 30, 2019 and 2018, respectively. Depreciation expense amounted to $4,196 and $3,782 for the three months ended September 30, 2019 and 2018, respectively. Additionally, the Company recognized an impairment loss of $24,899 related to the net book value of equipment used for the production of the ready to drink tea beverage as the Company has shifted its focus on the product development of the Company's Keto complete meal beverage and therefore recorded an impairment loss of $24,899 which is included in general and administrative expenses in the consolidated statement of operations during the three and nine months ended September 30, 2019. |
Operating Lease Right-of-Use As
Operating Lease Right-of-Use Assets and Operating Lease Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements [Abstract] | |
Operating Lease Right-of-Use Assets and Operating Lease Liabilities | Note 6 – Operating Lease Right-of-Use Assets and Operating Lease Liabilities In April 2018, the Company entered into a lease agreement for its corporate facility in Palm Beach Gardens, Florida. The lease is for a period of 36 months commencing in July 2018 and expiring in July 2021. Pursuant to the lease agreement, the lease requires the Company to pay a monthly base rent of $2,154 plus a pro rata share of operating expenses beginning July 2018 and subject to annual increases beginning the 2nd and 3rd lease year. In addition to the monthly base rent, we are charged separately for common area maintenance which is considered a non-lease component. These non-lease component payments are expensed as incurred and are not included in operating lease assets or liabilities. In March 2019, the Company entered into an equipment lease agreement for a copier on March 27, 2019 expiring March 27, 2022 and requiring monthly payments of $145 with an option to purchase the equipment at fair market value at the end of the lease term. In adopting ASC Topic 842, Leases (Topic 842), the Company has elected the 'package of practical expedients', which permit it not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. In addition, the Company elected not to apply ASC Topic 842 to arrangements with lease terms of 12 month or less. On January 1, 2019, upon adoption of ASC Topic 842, the Company recorded right-of-use assets and lease liabilities of $63,566. Right-of- use assets are summarized below: September 30, 2019 (Unaudited) Office lease (remaining lease term of 21 months) $ 59,069 Equipment lease (remaining lease term of 30 months) 4,497 Subtotal 63,566 Less accumulated amortization (16,853 ) Right-of-use assets, net $ 46,713 Operating Lease liabilities are summarized below: September 30, 2019 (Unaudited) Office lease $ 59,069 Equipment lease 4,497 Reduction of lease liability (16,853 ) Total lease liabilities 46,713 Less: current portion (24,982 ) Long term portion of lease liability $ 21,731 Minimum lease payments under non-cancelable operating lease at September 30, 2019 are as follows: Year ended December 31, 2019 (remainder of year) $ 7,092 Year ended December 31, 2020 28,764 Year ended December 31, 2021 15,450 Year ended December 31, 2022 435 Total $ 51,741 Less: present value discount (5,028 ) Total operating lease liability $ 46,713 |
Note payable and Convertible No
Note payable and Convertible Notes Payable | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Note payable and Convertible Notes Payable | Note 7 – Note payable and Convertible Notes Payable Convertible note payable consisted of the following: September 30, December 31, (Unaudited) Convertible notes payable $ 687,500 $ - Unamortized debt discount (83,713 ) - Total convertible notes payable $ 603,787 $ - On February 13, 2019, the Company issued an unsecured promissory note for principal borrowings of $50,000. The 10% promissory note and all accrued interest were due on February 22, 2019. Any amount of principal or interest on this promissory note which was not paid when due would bear interest at the rate of 20% per annum from the due date. In March 2019, this note was repaid in full using proceeds from the issuance of a convertible note as discussed below. On March 7, 2019 and on May 14, 2019, the Company closed a financing transaction by entering into a Securities Purchase Agreement (the " Securities Purchase Agreement ") with an accredited investor for purchase of a promissory note (the "Note" and with other notes issued under the Securities Purchase Agreement, the "Notes") an aggregate principal amount of $550,000 and gross cash proceeds of $500,000 (out of an aggregate of up to $550,000 principal amount of Notes representing $1.10 of note principal for each $1.00 of proceeds which can be purchased in subsequent closings in minimum amounts of $25,000). The March 7, 2019 and May 14, 2019 promissory notes were convertible into common stock of the Company at an initial conversion price of $0.05 and $0.04, respectively , which is subject to price protection, whereby upon any issuance of securities of the Company at a price below the effective conversion price of the Notes is adjusted to the new lower issuance price ("Down Round Feature"). The Notes have a term of one year from the date of issuance. The Company received gross proceeds of $500,000 of which $50,000 was used to pay the promissory note issued in February 2019 (see above). The Company accounted for the beneficial conversion features based on the intrinsic value on date of issuance. The debt discounts consisted of beneficial conversion features of $68,750, financing costs of $14,950 and debt premium of $50,000 which is being amortized over the term of the notes. During the three and nine months ended September 30, 2019 the Company recorded $36,659 and $62,487, respectively, as amortization of debt discount and is included in interest expense in the unaudited consolidated statements of operations. There were no such promissory notes outstanding as of September 30, 2018. The Down Round Feature was triggered on May 14, 2019 when the conversion price of the March 7, 2019 convertible note payable was reduced from $0.05 to $0.04. In accordance with ASU 2017-11 On August 12, 2019, the Company entered into an Allonge Agreement with a lender whereby the principal amount of a convertible note dated on March 7, 2019 was increased by $137,500 ("Allonge Principal") with original issue discount of 10%, receiving gross cash proceeds of $125,000. The maturity date with respect to the Allonge Principal shall also be on March 7, 2020 and all the terms of the Note dated on March 7, 2019 remain as originally stated except the Allonge Principal is convertible into common stock of the Company at an initial conversion rate of $0.04, subject to price protection. The Company determined that there was no beneficial conversion feature as the effective conversion price is greater than the fair value of common stock shares on date of issuance. |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity (Deficit) | Note 8 - Stockholders' Equity (Deficit) Shares Authorized The authorized capital of the Company consists of 300,000,000 shares of common stock, par value $0.001 per share and 20,000,000 shares of preferred stock, par value $0.001 per share. On August 9, 2019, the Board of Directors of the Company approved to increase the authorized shares of the Company's common stock to 600,000,000 shares from 300,000,000 shares of authorized shares of common stock. Preferred stock On March 19, 2018, the Company designated 520,000 shares of Series A Preferred Stock, par value $0.001 per share (the "Series A Preferred Stock"). Each share of Series A Preferred Stock is convertible into shares of the Company's common stock with a stated value of $10 per share of Series A Preferred Stock and the initial conversion price of $0.10 per share subject to adjustment in the event of stock split, stock dividends, subsequent equity sales with lower effective price, and recapitalization or otherwise and was adjusted down to $0.04 on May 14, 2019 due to a trigger event that occurred (see Note 7) On March 19, 2018, the Company designated 500,000 shares of Series B Preferred Stock, par value $0.001 per share (the "Series B Preferred Stock"). Each share of Series B Preferred Stock is convertible into shares of the Company's common stock with a stated value of $10 per share of Series B Preferred Stock and the initial conversion price of $0.10 per share subject to adjustment in the event of stock split, stock dividends, subsequent equity sales with lower effective price, and recapitalization or otherwise and was adjusted down to $0.04 on May 14, 2019 due to a trigger event that occurred (see Note 7). On August 1, 2018, the Company designated 1,000 shares of Series C Preferred Stock, par value $0.001 per share (the "Series C Preferred Stock"). Each share of Series C Preferred Stock is convertible into shares of the Company's common stock with a stated value of $200 per share of Series C Preferred Stock and the initial conversion price of $0.05 per share subject to adjustment in the event of stock split, stock dividends, subsequent equity sales with lower effective price, and recapitalization or otherwise and was adjusted down to $0.04 on May 14, 2019 due to a trigger event that occurred (see Note 7) The Down Round Feature embedded in all Series of Preferred Stock was triggered on May 14, 2019 when the conversion price of the May 14, 2019 convertible note payable was issued at $0.04 (see Note 7). Common Stock In June 2019, the Company issued 250,000 shares of the Company's common stock in exchange for the conversion of 1,000 shares of the Company's Series A Preferred Stock. Common Stock Options Stock option activity for the nine months ended September 30, 2019 is summarized as follows: Number of Options Weighted Average Exercise Weighted Average Remaining Contractual Life Aggregate Intrinsic Balance at December 31, 2018 1,940,000 0.10 2.04 - Granted - - - - Balance at September 30, 2019 1,940,000 0.10 1.54 - Options exercisable at September 30, 2019 1,940,000 $ 0.10 1.29 $ - As of September 30, 2019, all outstanding options are fully vested and there were $0 unrecognized compensation expense in connection with unvested stock options. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9 - Commitments and Contingencies License Agreement In January 2018, the Company entered into a Standard Exclusive License Agreement (the "License Agreement") whereby the licensor agreed to grant exclusive license to the Company for licensed patent owned or controlled by licensor. The licensed patent is related to tea polyphenols esters and analogs for cancer prevention and treatment. The term of this license shall begin on the effective date of this License Agreement and continue until the later of the date that no licensed patent remains a pending application or an enforceable patent, or the date on which Company's obligation to pay royalties expires pursuant to the License Agreement. If the Company has not pursued a market or territory respecting the licensed patents within one year of the date of execution of this License Agreement and Licensor has received notice that a third party wishes to negotiate a license for such market or territory, Licensor may terminate the license granted in with respect to such market or territory upon sixty (60) days written notice to Licensee. The Company agreed to pay license issue fee of $5,000 within 30 days of the effective date which was paid in March 2018. Additionally, the Company agreed to pay certain royalty payments as follows: (i) three percent (3%) for Net Sales of Licensed Products, and Licensed Processes (all as defined in the License Agreement), for each product or process, on a country-by-country basis, for cumulative Net Sales up to one million dollars ($1,000,000); and (ii) four percent (4%) for Net Sales of Licensed Products and Licensed Processes, for each product or process, on a country-by-country basis, for cumulative Net Sales from one million dollars ($1,000,000) to five million dollars ($5,000,000); and (iii) five percent (5%) for Net Sales of Licensed Products and Licensed Processes, for each product or process, on a country-by-country basis, Net Sales over five million dollars ($5,000,000). Furthermore, the Company agrees to pay Licensor minimum royalty payments, as follows: Payment Year $ 20,000 2018 $ 50,000 2019 $ 100,000 2020 and every year thereafter on the same date, for the life of this License Agreement. The minimum royalty shall be paid in advance on a quarterly basis for each year in which this License Agreement is in effect. The first minimum royalty payment shall be due on March 31 st |
Concentrations of Revenue and S
Concentrations of Revenue and Supplier | 9 Months Ended |
Sep. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Revenue and Supplier | Note 10 – Concentrations of Revenue and Supplier During the nine months ended September 30, 2019, beverage sales to two customers represented approximately 95% of the Company's net sales. There was no revenues generated during the nine months ended September 30, 2018. As of September 30, 2019, accounts receivable from two customers represented approximately 100% of total accounts receivable as compared to one customer represented approximately 98% as of December 31, 2018. During the nine months ended September 30, 2019, the Company purchased raw materials and products from two vendors totaling approximately $3,424 (100% of the purchases). |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 11 – Subsequent events On October 11, 2019, the Company entered into a Second Allonge Agreement with a lender whereby the principal amount of a convertible note dated on March 7, 2019 was increased by another $110,000 ("Second Allonge Principal") with original issue discount of 10%, receiving gross cash proceeds of $100,000. The maturity date with respect to the Second Allonge Principal shall also be on March 7, 2020 and all the terms of the Note dated on March 7, 2019 remain as originally stated (see Note 7). The Company determined that there was no beneficial conversion feature as the effective conversion price is greater than the fair value of convertible instrument related to the Second Allonge Principal. |
Significant and Critical Acco_2
Significant and Critical Accounting Policies and Practices (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the United States Securities and Exchange Commission for interim financial information, which includes condensed consolidated financial statements and present the consolidated financial statements of the Company and its wholly-owned subsidiary as of September 30, 2019. All intercompany transactions and balances have been eliminated. Accordingly, the condensed consolidated financial statements do not include all the information and notes necessary for a comprehensive presentation of financial position and results of operations and should be read in conjunction with the audited financial statements of the Company for the year ended December 31, 2018 and included in the form 10-K filed with the SEC on March 25, 2019. It is management's opinion that all material adjustments (consisting of normal recurring adjustments) have been made, which are necessary for a fair financial statement presentation. Significant intercompany accounts and transactions have been eliminated in consolidation. The results for the interim period are not necessarily indicative of the results to be expected for the year ending December 31, 2019. |
Use of Estimates and Assumptions and Critical Accounting Estimates | Use of Estimates and Assumptions and Critical Accounting Estimates The preparation 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, 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. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet, and revenues and expenses for the period then ended. Actual results may differ significantly from those estimates. Significant estimates made by management include, but are not limited to valuation of deferred tax assets, useful life of property and equipment, inventory reserves, and valuation of debt discounts. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. The reclassified amounts have no impact on the Company's previously reported financial position or results of operations. |
Cash and cash equivalents | Cash and cash equivalents The Company considers all highly liquid debt instruments and other short-term investments with maturities of three months or less, when purchased, to be cash equivalents. The Company held no cash equivalents as of September 30, 2019 and December 31, 2018. The Company maintains cash balances at one financial institution that is insured by the Federal Deposit Insurance Corporation. The Company's account at this institution is insured by the Federal Deposit Insurance Corporation ("FDIC") up to $250,000. As of September 30, 2019 and December 31, 2018, the Company has not reached bank balances exceeding the FDIC insurance limit. To reduce its risk associated with the failure of such financial institution, the Company evaluates at least annually the rating of the financial institution in which it holds deposits. |
Fair value of financial instruments | Fair value of financial instruments The estimated fair value of certain financial instruments, including cash, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued expenses and accrued salaries and related payroll liabilities are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. |
Inventory | Inventory The Company values inventory, consisting of finished goods and raw materials, at the lower of cost or net realizable value. Cost is determined on the first-in and first-out ("FIFO") method. The Company reduces inventory for the diminution of value, resulting from product obsolescence, damage or other issues affecting marketability, equal to the difference between the cost of the inventory and its estimated net realizable value. Factors utilized in the determination of the estimated net realizable value include (i) estimates of future demand, and (ii) competitive pricing pressures. The Company recorded inventory write-off and spoilage of $14,309 and $0 during the nine months ended September 30, 2019 and 2018, respectively. The Company recorded inventory write-off and spoilage of $11,423 and $0 during the three months ended September 30, 2019 and 2018, respectively. |
Property and Equipment | Property and Equipment Property and equipment are carried at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets of 3 years. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired, or disposed of, the cost and accumulated depreciation are removed, and any resulting gains or losses are included in the consolidated statement of operations. |
Revenue Recognition | Revenue Recognition On January 1, 2018, the Company adopted the Accounting Standard Codification ("ASC") Topic 606 and the related amendments Revenue from Contracts with Customers, which requires revenue to be recognized in a manner that depicts the transfer of goods or services to customers in amounts that reflect the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company recognizes revenue by applying the following steps: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. The Company's performance obligations are satisfied at the point in time when products are shipped or delivered to the customer, which is when the customer has title and the significant risks and rewards of ownership. Therefore, the Company's contracts have a single performance obligation (shipment or delivery of product). The Company primarily receives fixed consideration for sales of product. |
Cost of Sales | Cost of Sales The primary components of cost of sales include the cost of the product, production costs, warehouse storage costs and shipping fees. |
Research and development | Research and development Research and development costs incurred in the development of the Company's products are expensed as incurred. |
Shipping and Handling Costs | Shipping and Handling Costs The Company accounts for shipping and handling fees in accordance with ASC 606. While amounts charged to customers for shipping products are included in revenues, the related costs of shipping products to customers are classified in selling and marketing expenses as incurred. Shipping costs included in selling and marketing expenses were $3,090 and $0 for the nine months ended September 30, 2019 and 2018, respectively. Shipping costs included in selling and marketing expenses were $521 and $0 for the three months ended September 30, 2019 and 2018, respectively. |
Advertising Costs | Advertising Costs The Company applies ASC 720 "Other Expenses" to account for advertising related costs. Pursuant to ASC 720-35-25-1, the Company expenses the advertising costs when the first time the advertising takes place. Advertising costs were $17,557 and $6,459 for the nine months ended September 30, 2019 and 2018, respectively, and was included in general and administrative expenses. Advertising costs were $6,633 and $2,380 for the three months ended September 30, 2019 and 2018, respectively, and was included in general and administrative expenses. |
Stock-based compensation | Stock-based compensation Stock-based compensation is accounted for based on the requirements of the Share-Based Payment Topic of ASC 718 which requires recognition in the financial statements of the cost of employee and director services received in exchange for an award of equity instruments over the period the employee or director is required to perform the services in exchange for the award (presumptively, the vesting period). The ASC also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award. Through March 31, 2018, pursuant to ASC 505-50 - Equity-Based Payments to Non-Employees, all share-based payments to non-employees, including grants of stock options, were recognized in the consolidated financial statements as compensation expense over the service period of the consulting arrangement or until performance conditions were expected to be met. Using a Black Scholes valuation model, the Company periodically reassessed the fair value of non-employee options until service conditions were met, which generally aligned with the vesting period of the options, and the Company adjusted the expense recognized in the consolidated financial statements accordingly. In June 2018, the FASB issued ASU No. 2018-07, Improvements to Nonemployee Share-Based Payment Accounting, which simplifies several aspects of the accounting for nonemployee share-based payment transactions by expanding the scope of the stock-based compensation guidance in ASC 718 to include share-based payment transactions for acquiring goods and services from non-employees. ASU No. 2018-07 is effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods. Early adoption is permitted, but entities may not adopt prior to adopting the new revenue recognition guidance in ASC 606. The Company adoption did not have any material impact on its consolidated financial statements. The expense is recognized over the vesting period of the award. Until the measurement date is reached, the total amount of compensation expense remains uncertain. The Company records compensation expense based on the fair value of the award at the reporting date. The awards to consultants and other third-parties are then revalued, or the total compensation is recalculated, based on the then current fair value, at each subsequent reporting date. |
Leases | Leases In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02, Leases On January 1, 2019, the Company adopted ASU No. 2016-02, applying the package of practical expedients to leases that commenced before the effective date whereby the Company elected to not reassess the following: (i) whether any expired or existing contracts contain leases and; (ii) initial direct costs for any existing leases. For contracts entered into on or after the effective date, at the inception of a contract the Company assessed whether the contract is, or contains, a lease. The Company's assessment is based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether we obtain the right to substantially all the economic benefit from the use of the asset throughout the period, and (3) whether it has the right to direct the use of the asset. The Company will allocate the consideration in the contract to each lease component based on its relative stand-alone price to determine the lease payments. Operating lease right of use assets ("ROU") assets represents the right to use the leased asset for the lease term and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most leases do not provide an implicit rate, the Company use an incremental borrowing rate based on the information available at the adoption date in determining the present value of future payments. Lease expense for minimum lease payments is amortized on a straight-line basis over the lease term and is included in general and administrative expenses in the condensed consolidated statements of operations. |
Income Taxes | Income Taxes The Company accounts for income taxes pursuant to the provision of ASC 740-10, "Accounting for Income Taxes" ("ASC 740-10"), which requires, among other things, an asset and liability approach to calculating deferred income taxes. The asset and liability approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. A valuation allowance is provided to offset any net deferred tax assets for which management believes it is more likely than not that the net deferred asset will not be realized. The Company follows the provision of ASC 740-10 related to Accounting for Uncertain Income Tax Positions. When tax returns are filed, there may be uncertainty about the merits of positions taken or the amount of the position that would be ultimately sustained. In accordance with the guidance of ASC 740-10, the benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more likely than not recognition threshold are measured at the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefit associated with tax positions taken that exceed the amount measured as described above should be reflected as a liability for uncertain tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company believes its tax positions are all more likely than not to be upheld upon examination. As such, the Company has not recorded a liability for uncertain tax benefits. The Company has adopted ASC 740-10-25, "Definition of Settlement", which provides guidance on how an entity should determine whether a tax position is effectively settled for the purpose of recognizing previously unrecognized tax benefits and provides that a tax position can be effectively settled upon the completion and examination by a taxing authority without being legally extinguished. For tax positions considered effectively settled, an entity would recognize the full amount of tax benefit, even if the tax position is not considered more likely than not to be sustained based solely on the basis of its technical merits and the statute of limitations remains open. The federal and state income tax returns of the Company are subject to examination by the IRS and state taxing authorities, generally for three years after they are filed. |
Impairment of long-lived assets | Impairment of long-lived assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset's estimated fair value and its book value. The Company recorded impairment expense of $24,899 and $0 during the three and nine months ended September 30, 2019. There was no impairment expense during the three and nine months ended September 30, 2018. The Company impaired the net book value of $24,899 related to equipment used for the production of the ready to drink tea beverage as the Company has shifted its focus on the product development of the Company's Keto complete meal beverage and was included in general and administrative expenses as reflected in the consolidated statements of operations. |
Basic and diluted net loss per share | Basic and diluted net loss per share Basic net loss per share is computed by dividing the net loss by the weighted average number of common shares during the period. Diluted net loss per share is computed using the weighted average number of common shares and potentially dilutive securities outstanding during the period. The potentially dilutive common stock equivalents for the nine months ended September 30, 2019 and 2018 were excluded from the dilutive loss per share calculation as they would be antidilutive due to the net loss. The following were the computation of diluted shares outstanding and in periods where the Company has a net loss, all dilutive securities are excluded. September 30, September 30, Common stock equivalents: Stock options 1,940,000 1,940,000 Convertible notes payable 17,187,500 - Convertible Preferred Stock 266,000,000 105,000,000 Total 285,127,500 106,940,000 |
Recent accounting pronouncements | Recent accounting pronouncements In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)". The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases. The new guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those annual periods and is applied retrospectively. The Company elected to apply the transition provisions as of January 1, 2019, the date of adoption, and recorded lease ROU assets and related liabilities on the consolidated balance sheet related to our operating leases. In July 2017, the FASB issued ASU 2017-11 "Earnings Per Share (Topic 260)". The amendments in the update change the classification of certain equity-linked financial instruments (or embedded features) with down round features. The amendments also clarify existing disclosure requirements for equity-classified instruments. For freestanding equity-classified financial instruments, the amendments require entities that present earnings per share ("EPS") in accordance with Topic 260, Earnings Per Share, to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. Convertible instruments with embedded conversion options that have down round features would be subject to the specialized guidance for contingent beneficial conversion features (in Subtopic 470-20, Debt—Debt with Conversion and Other Options), including related EPS guidance (in Topic 260). For public business entities, the amendments in Part I of this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 with early adoption permitted. The Company adopted this pronouncement as of fiscal 2017 and applied it to the convertible notes payable issued in March and May of 2019 that include down round features. During the three and nine months ended September 30, 2019, a down round feature present in a convertible note payable and convertible preferred stock was triggered (see Notes 7 and 8). In June 2018, the FASB issued ASU No. 2018-07 "Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting." These amendments expand the scope of Topic 718, Compensation - Stock Compensation (which currently only includes share-based payments to employees) to include share-based payments issued to nonemployees for goods or services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. The ASU supersedes Subtopic 505-50, Equity - Equity-Based Payments to Non-Employees. The guidance is effective for public companies for fiscal years, and interim fiscal periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, but no earlier than a company's adoption date of Topic 606, Revenue from Contracts with Customers. The adoption of this guidance had no material impact on its accounting and disclosures. In August 2018, the FASB issued ASU 2018-13, "Changes to Disclosure Requirements for Fair Value Measurements", which will improve the effectiveness of disclosure requirements for recurring and nonrecurring fair value measurements. The standard removes, modifies, and adds certain disclosure requirements, and is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company will be evaluating the impact this standard will have on the Company's consolidated financial statements. Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures. |
Significant and Critical Acco_3
Significant and Critical Accounting Policies and Practices (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of computation of diluted shares outstanding and all dilutive securities are excluded | September 30, September 30, Common stock equivalents: Stock options 1,940,000 1,940,000 Convertible notes payable 17,187,500 - Convertible Preferred Stock 266,000,000 105,000,000 Total 285,127,500 106,940,000 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | September 30, December 31, (Unaudited) Finished goods $ - $ 39,984 Raw materials - 20,132 $ - $ 60,116 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Estimated life As of As of (Unaudited) Molding Tool equipment 3 years $ 30,592 $ 30,592 Packing equipment 3 years 19,756 19,756 Less: Accumulated depreciation (25,449 ) (12,861 ) Net book value (24,899 ) - Less: Impairment loss (24,899 ) - $ - $ 37,487 |
Operating Lease Right-of-Use _2
Operating Lease Right-of-Use Assets and Operating Lease Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements [Abstract] | |
Schedule of operating lease right-of-use assets | September 30, 2019 (Unaudited) Office lease (remaining lease term of 21 months) $ 59,069 Equipment lease (remaining lease term of 30 months) 4,497 Subtotal 63,566 Less accumulated amortization (16,853 ) Right-of-use assets, net $ 46,713 |
Schedule of operating lease liabilities | September 30, 2019 (Unaudited) Office lease $ 59,069 Equipment lease 4,497 Reduction of lease liability (16,853 ) Total lease liabilities 46,713 Less: current portion (24,982 ) Long term portion of lease liability $ 21,731 |
Schedule of minimum lease payments under non-cancelable operating lease | Year ended December 31, 2019 (remainder of year) $ 7,092 Year ended December 31, 2020 28,764 Year ended December 31, 2021 15,450 Year ended December 31, 2022 435 Total $ 51,741 Less: present value discount (5,028 ) Total operating lease liability $ 46,713 |
Note Payable and Convertible _2
Note Payable and Convertible Notes Payable (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of note payable and convertible note payable | September 30, December 31, (Unaudited) Convertible notes payable $ 687,500 $ - Unamortized debt discount (83,713 ) - Total convertible notes payable $ 603,787 $ - |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Schedule of stock option activity | Number of Options Weighted Average Exercise Weighted Average Remaining Contractual Life Aggregate Intrinsic Balance at December 31, 2018 1,940,000 0.10 2.04 - Granted - - - - Balance at September 30, 2019 1,940,000 0.10 1.54 - Options exercisable at September 30, 2019 1,940,000 $ 0.10 1.29 $ - |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of licensor minimum royalty payments | Payment Year $ 20,000 2018 $ 50,000 2019 $ 100,000 2020 and every year thereafter on the same date, for the life of this License Agreement. |
Organization and Operations (De
Organization and Operations (Details) | 1 Months Ended |
Mar. 26, 2018shares | |
Organization and Operations (Textual) | |
Subsidiary shares of preferred stock percentage | 86.00% |
Spin Off Agreement [Member] | |
Organization and Operations (Textual) | |
Common stock issued in exchange | 36,309,768 |
Significant and Critical Acco_4
Significant and Critical Accounting Policies and Practices (Details) - shares | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 285,127,500 | 106,940,000 |
Common stock equivalents [Member] | Convertible Preferred Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 266,000,000 | 105,000,000 |
Common stock equivalents [Member] | Convertible notes payable [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 17,187,500 | |
Common stock equivalents [Member] | Stock options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 1,940,000 | 1,940,000 |
Significant and Critical Acco_5
Significant and Critical Accounting Policies and Practices (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Significant and Critical Accounting Policies and Practices (Textual) | ||||
Amount insured by the FDIC | $ 250,000 | $ 250,000 | ||
Estimated useful lives of the assets | 3 years | |||
Advertising costs | 6,633 | $ 2,380 | $ 17,557 | $ 6,459 |
Shipping costs | 521 | 0 | $ 3,090 | 0 |
Tax benefit percentage, description | The largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. | |||
Inventory write-off and spoilage | 11,423 | $ 14,309 | ||
net book value of impairment expense | 24,899 | |||
Impairment expense | $ 24,899 | $ 0 |
Going Concern (Details)
Going Concern (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Going Concern (Textual) | |||||
Accumulated deficit | $ (3,213,941) | $ (3,213,941) | $ (1,115,024) | ||
Working capital deficit | 719,000 | 719,000 | |||
Net loss | $ (336,018) | $ (211,925) | (847,117) | $ (791,859) | |
Cash used in operating activities | $ (654,204) | $ (516,137) |
Inventory (Details)
Inventory (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 39,984 | |
Raw materials | 20,132 | |
Total inventory | $ 60,116 |
Inventory (Details Textual)
Inventory (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Inventory (Textual) | |||||
Inventory held at third party locations | $ 60,116 | ||||
Write-offs inventory | $ 11,423 | $ 14,309 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Summary of property and equipment | ||
Less: Accumulated depreciation | $ (25,449) | $ (12,861) |
Net book value | (24,899) | |
Less: Impairment loss | (24,899) | |
Property and equipment, net | 37,487 | |
Molding Tool equipment [Member] | ||
Summary of property and equipment | ||
Estimated life | 3 years | |
Property and equipment, gross | $ 30,592 | 30,592 |
Packing equipment [Member] | ||
Summary of property and equipment | ||
Estimated life | 3 years | |
Property and equipment, gross | $ 19,756 | $ 19,756 |
Property and Equipment (Detai_2
Property and Equipment (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Property and Equipment (Textual) | |||||
Depreciation expense | $ 4,196 | $ 3,782 | $ 12,588 | $ 7,887 | |
Impairment loss | $ (24,899) | $ (24,899) |
Operating Lease Right-of-Use _3
Operating Lease Right-of-Use Assets and Operating Lease Liabilities (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Subtotal | $ 63,566 | |
Less accumulated amortization | (16,853) | |
Right-of-use assets, net | $ 46,713 | |
Office lease [Member] | ||
Remaining lease term | 21 months | |
Subtotal | $ 59,069 | |
Equipment lease [Member] | ||
Remaining lease term | 30 months | |
Subtotal | $ 4,497 |
Operating Lease Right-of-Use _4
Operating Lease Right-of-Use Assets and Operating Lease Liabilities (Details 1) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Total lease liabilities | $ 46,713 | |
Less: current portion | (24,982) | |
Long term portion of lease liability | 21,731 | |
Office lease [Member] | ||
Total lease liabilities | 59,069 | |
Equipment lease [Member] | ||
Total lease liabilities | 4,497 | |
Reduction of lease liability [Member] | ||
Total lease liabilities | $ (16,853) |
Operating Lease Right-of-Use _5
Operating Lease Right-of-Use Assets and Operating Lease Liabilities (Details 2) | Sep. 30, 2019USD ($) |
Notes to Financial Statements [Abstract] | |
Year ended December 31, 2019 (remainder of year) | $ 7,092 |
Year ended December 31, 2020 | 28,764 |
Year ended December 31, 2021 | 15,450 |
Year ended December 31, 2022 | 435 |
Total | 51,741 |
Less: present value discount | (5,028) |
Total operating lease liability | $ 46,713 |
Operating Lease Right-of-Use _6
Operating Lease Right-of-Use Assets and Operating Lease Liabilities (Details Textual) - USD ($) | 1 Months Ended | ||
Mar. 31, 2019 | Apr. 30, 2018 | Sep. 30, 2019 | |
Operating Lease Right-of-Use Assets and Operating Lease Liabilities (Textual) | |||
Lease agreement description | The Company entered into a lease agreement for its corporate facility in Palm Beach Gardens, Florida. The lease is for a period of 36 months commencing in July 2018 and expiring in July 2021. Pursuant to the lease agreement, the lease requires the Company to pay a monthly base rent of $2,154 plus a pro rata share of operating expenses beginning July 2018 and subject to annual increases beginning the 2nd and 3rd lease year. In addition to the monthly base rent, we are charged separately for common area maintenance which is considered a non-lease component. These non-lease component payments are expensed as incurred and are not included in operating lease assets or liabilities. | ||
Lease expiring date | Mar. 27, 2022 | ||
Option to purchase the equipment at fair market value | $ 145 | ||
Operating lease right-of-use assets and lease liabilities | $ 63,566 |
Note payable and Convertible _3
Note payable and Convertible Notes Payable (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Convertible notes payable | $ 687,500 | |
Unamortized debt discount | (83,713) | |
Total convertible notes payable | $ 603,787 |
Note payable and Convertible _4
Note payable and Convertible Notes Payable (Details Textual) - USD ($) | Aug. 12, 2019 | May 14, 2019 | May 14, 2019 | Mar. 07, 2019 | Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Feb. 13, 2019 |
Convertible Notes Payable (Textual) | ||||||||
Financing costs | $ 14,950 | |||||||
Amortization of debt discount | $ 36,659 | 62,487 | ||||||
Beneficial conversion feature | $ 68,750 | |||||||
Dividend declared to common stock | $ 55,000 | |||||||
Maximum [Member] | ||||||||
Convertible Notes Payable (Textual) | ||||||||
Notes conversion price | $ 0.04 | $ 0.04 | $ 0.04 | |||||
Minimum [Member] | ||||||||
Convertible Notes Payable (Textual) | ||||||||
Notes conversion price | $ 0.05 | $ 0.05 | $ 0.05 | |||||
Promissory Note [Member] | ||||||||
Convertible Notes Payable (Textual) | ||||||||
Annual interest rate | 20.00% | |||||||
Principal amount | $ 50,000 | |||||||
Description of financing transaction | The Company entered into an Allonge Agreement with a lender whereby the principal amount of a convertible note dated on March 7, 2019 was increased by $137,500 (“Allonge Principal”) with original issue discount of 10%, receiving gross cash proceeds of $125,000. The maturity date with respect to the Allonge Principal shall also be on March 7, 2020 and all the terms of the Note dated on March 7, 2019 remain as originally stated except the Allonge Principal is convertible into common stock of the Company at an initial conversion rate of $0.04, subject to price protection. | |||||||
Description of debt discount consisted | The Company accounted for the beneficial conversion features based on the intrinsic value on date of issuance. The debt discounts consisted of beneficial conversion features of $68,750, financing costs of $14,950 and debt premium of $50,000 which is being amortized over the term of the notes. During the three and nine months ended September 30, 2019 the Company recorded $36,659 and $62,487, respectively, as amortization of debt discount and is included in interest expense in the unaudited consolidated statements of operations. | |||||||
Accrued interest | 10.00% | |||||||
Promissory Note [Member] | Securities Purchase Agreement [Member] | ||||||||
Convertible Notes Payable (Textual) | ||||||||
Description of financing transaction | The Company closed a financing transaction by entering into a Securities Purchase Agreement (the “ Securities Purchase Agreement ”) with an accredited investor for purchase of a promissory note (the “Note” and with other notes issued under the Securities Purchase Agreement, the “Notes”) an aggregate principal amount of $550,000 and gross cash proceeds of $500,000 (out of an aggregate of up to $550,000 principal amount of Notes representing $1.10 of note principal for each $1.00 of proceeds which can be purchased in subsequent closings in minimum amounts of $25,000). The March 7, 2019 and May 14, 2019 promissory notes were convertible into common stock of the Company at an initial conversion price of $0.05 and $0.04, respectively , which is subject to price protection, whereby upon any issuance of securities of the Company at a price below the effective conversion price of the Notes is adjusted to the new lower issuance price (“Down Round Feature”). The Notes have a term of one year from the date of issuance. The Company received gross proceeds of $500,000 of which $50,000 was used to pay the promissory note issued in February 2019 (see above). | The Company closed a financing transaction by entering into a Securities Purchase Agreement (the “ Securities Purchase Agreement ”) with an accredited investor for purchase of a promissory note (the “Note” and with other notes issued under the Securities Purchase Agreement, the “Notes”) an aggregate principal amount of $550,000 and gross cash proceeds of $500,000 (out of an aggregate of up to $550,000 principal amount of Notes representing $1.10 of note principal for each $1.00 of proceeds which can be purchased in subsequent closings in minimum amounts of $25,000). The March 7, 2019 and May 14, 2019 promissory notes were convertible into common stock of the Company at an initial conversion price of $0.05 and $0.04, respectively , which is subject to price protection, whereby upon any issuance of securities of the Company at a price below the effective conversion price of the Notes is adjusted to the new lower issuance price (“Down Round Feature”). The Notes have a term of one year from the date of issuance. The Company received gross proceeds of $500,000 of which $50,000 was used to pay the promissory note issued in February 2019 (see above). |
Stockholders' Equity (Deficit_2
Stockholders' Equity (Deficit) (Details) - Stock option activity [Member] | 9 Months Ended |
Sep. 30, 2019USD ($)$ / sharesshares | |
Summary of option activities | |
Number of Options, Beginning Balance | shares | 1,940,000 |
Number of Options, Granted | shares | |
Number of Options, Ending Balance | shares | 1,940,000 |
Number of Options, Options exercisable | shares | 1,940,000 |
Weighted Average Exercise Price, Beginning Balance | $ / shares | $ 0.10 |
Weighted Average Exercise Price, Granted | $ / shares | |
Weighted Average Exercise Price, Ending Balance | $ / shares | 0.10 |
Weighted Average Exercise Price, Options exercisable | $ / shares | $ 0.10 |
Weighted Average Remaining Contractual Life (Years), Beginning | 2 years 15 days |
Weighted Average Remaining Contractual Life (Years), Ending | 1 year 6 months 14 days |
Weighted Average Remaining Contractual Life (Years), Options exercisable | 1 year 3 months 15 days |
Aggregate Intrinsic Value, Beginning balance | $ | |
Aggregate Intrinsic Value, Granted | $ | |
Aggregate Intrinsic Value, Ending balance | $ | |
Aggregate Intrinsic Value, Options exercisable | $ |
Stockholders' Equity (Deficit_3
Stockholders' Equity (Deficit) (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
Jun. 30, 2019 | May 14, 2019 | Oct. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Aug. 09, 2019 | Dec. 31, 2018 | Aug. 01, 2018 | Mar. 19, 2018 | |
Stockholders' Equity (Deficit) (Textual) | |||||||||||
Common stock, shares authorized | 600,000,000 | 600,000,000 | 600,000,000 | 600,000,000 | |||||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||
Preferred stock, shares authorized | 20,000,000 | 20,000,000 | 20,000,000 | ||||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||
Common stock receive consulting agreement amount | $ 55,000 | ||||||||||
Deemed dividend | $ (1,196,800) | $ (1,251,800) | |||||||||
Outstanding options vested | $ 0 | ||||||||||
Series A Preferred Stock [Member] | |||||||||||
Stockholders' Equity (Deficit) (Textual) | |||||||||||
Common stock, par value | $ 0.001 | ||||||||||
Preferred stock, shares authorized | 520,000 | 520,000 | 520,000 | ||||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||
Preferred stock, shares issued | 519,000 | 519,000 | 520,000 | ||||||||
Share Price | $ 10 | ||||||||||
Common stock conversion price | $ 1,000 | ||||||||||
Preferred stock designated shares | 520,000 | ||||||||||
Preferred stock conversion price | $ 0.10 | ||||||||||
Decreasing conversion price | $ 0.04 | ||||||||||
Series B Preferred Stock [Member] | |||||||||||
Stockholders' Equity (Deficit) (Textual) | |||||||||||
Common stock, par value | 0.001 | ||||||||||
Preferred stock, shares authorized | 500,000 | 500,000 | 500,000 | ||||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||
Preferred stock, shares issued | 500,000 | 500,000 | 500,000 | ||||||||
Share Price | $ 10 | ||||||||||
Preferred stock designated shares | 500,000 | ||||||||||
Preferred stock conversion price | $ 0.10 | ||||||||||
Decreasing conversion price | 0.04 | ||||||||||
Series C Preferred Stock [Member] | |||||||||||
Stockholders' Equity (Deficit) (Textual) | |||||||||||
Common stock, par value | $ 0.001 | ||||||||||
Preferred stock, shares authorized | 2,500 | 2,500 | 2,500 | ||||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||
Preferred stock, shares issued | 2,250 | 2,250 | 2,250 | ||||||||
Share Price | $ 200 | ||||||||||
Preferred stock designated shares | 1,000 | ||||||||||
Preferred stock conversion price | $ 0.05 | ||||||||||
Decreasing conversion price | $ 0.04 | ||||||||||
Series C Preferred Stock [Member] | Board of Directors [Member] | |||||||||||
Stockholders' Equity (Deficit) (Textual) | |||||||||||
Preferred stock, description | The Board of Directors of the Company approved and authorized an amendment to increase the number of designated authorized shares of the Series C preferred stock from 1,000 to 2,500 shares. | ||||||||||
Common Stock [Member] | |||||||||||
Stockholders' Equity (Deficit) (Textual) | |||||||||||
Common stock, shares authorized | 300,000,000 | ||||||||||
Common stock issued in exchange | 250,000 | ||||||||||
Deemed dividend | $ 1,196,800 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) | Sep. 30, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2018 | $ 20,000 |
2019 | 50,000 |
2020 and every year thereafter on the same date, for the life of this License Agreement. | $ 100,000 |
Commitments and Contingencies_3
Commitments and Contingencies (Details Textual) - USD ($) | 1 Months Ended | 9 Months Ended | |
Mar. 31, 2018 | Sep. 30, 2019 | Dec. 31, 2018 | |
Commitments and Contingencies (Textual) | |||
License agreement commitments, description | (i) three percent (3%) for Net Sales of Licensed Products, and Licensed Processes (all as defined in the License Agreement), for each product or process, on a country-by-country basis, for cumulative Net Sales up to one million dollars ($1,000,000); and (ii) four percent (4%) for Net Sales of Licensed Products and Licensed Processes, for each product or process, on a country-by-country basis, for cumulative Net Sales from one million dollars ($1,000,000) to five million dollars ($5,000,000); and (iii) five percent (5%) for Net Sales of Licensed Products and Licensed Processes, for each product or process, on a country-by-country basis, Net Sales over five million dollars ($5,000,000). | ||
Royalty expense | $ 5,000 | ||
Payment of license issue fees | $ 5,000 | ||
Accrued royalty including accounts payable and accrued expenses | $ 47,500 | $ 10,000 |
Concentrations of Revenue and_2
Concentrations of Revenue and Supplier (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019USD ($)CustomersVendors | Dec. 31, 2018Customers | |
Concentration of Credit Risk (Textual) | ||
Concentration risk, percentage | 100.00% | |
Purchased inventories | $ | $ 3,424 | |
Number of vendors | Vendors | 2 | |
Accounts Receivable [Member] | ||
Concentration of Credit Risk (Textual) | ||
Concentration risk, percentage | 100.00% | 98.00% |
Number of customers | 2 | 1 |
Net Sales [Member] | ||
Concentration of Credit Risk (Textual) | ||
Concentration risk, percentage | 95.00% | |
Number of customers | 2 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] | Oct. 11, 2019USD ($) |
Subsequent Events (Textual) | |
Description of convertible note | The Company entered into a Second Allonge Agreement with a lender whereby the principal amount of a convertible note dated on March 7, 2019 was increased by another $110,000 (“Second Allonge Principal”) with original issue discount of 10%, receiving gross cash proceeds of $100,000. The maturity date with respect to the Second Allonge Principal shall also be on March 7, 2020 and all the terms of the Note dated on March 7, 2019 remain as originally stated (see Note 7). |
Percentage of original issue discount | 10.00% |
Gross cash proceeds | $ 100,000 |