Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Document Information Line Items | |||
Entity Registrant Name | U.S. Lighting Group, Inc. | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 97,848,735 | ||
Entity Public Float | $ 21,523,000 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001536394 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 000-55689 | ||
Entity Incorporation, State or Country Code | FL | ||
Entity Tax Identification Number | 46-3556776 | ||
Entity Address, Address Line One | 1148 East 222d St | ||
Entity Address, City or Town | Euclid | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 44117 | ||
City Area Code | (216) | ||
Local Phone Number | 896-7000 | ||
Title of 12(b) Security | None | ||
Entity Interactive Data Current | Yes | ||
Auditor Name | BF Borgers CPA PC | ||
Auditor Location | Lakewood, CO | ||
Auditor Firm ID | 5041 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash | $ 286,000 | $ 108,000 |
Accounts receivable | 541,000 | |
Accounts receivable, related party | 30,000 | |
Prepaid expenses and other current assets | 157,000 | |
Investment in trading securities | 1,647,000 | |
Assets of discontinued operations | 879,000 | |
Total Current Assets | 2,090,000 | 1,558,000 |
Property and equipment, net | 945,000 | 769,000 |
Total Assets | 3,035,000 | 2,327,000 |
Current Liabilities: | ||
Accounts payable | 34,000 | 47,000 |
Accrued expenses | 17,000 | 10,000 |
Customer advance payments | 10,000 | |
Accrued payroll to a former officer | 536,000 | 442,000 |
Convertible notes payable | 60,000 | 55,000 |
Loan payable– current portion | 82,000 | 86,000 |
Loans payable, related party | 407,000 | 2,619,000 |
Liabilities of discontinued operations | 580,000 | |
Total Current Liabilities | 1,146,000 | 3,839,000 |
Loans payable, net of current portion | 344,000 | 352,000 |
Total Liabilities | 1,490,000 | 4,191,000 |
Commitments and Contingencies | ||
Shareholders’ Equity (Deficit): | ||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized; no shares issued and outstanding | ||
Common stock, $0.0001 par value, 100,000,000 shares authorized; 97,848,735 and 95,970,735 shares issued and outstanding at December 31, 2021, and 2020, respectively | 10,000 | 10,000 |
Additional paid-in-capital | 17,791,000 | 17,435,000 |
Accumulated deficit | (16,256,000) | (19,309,000) |
Total Shareholders’ Equity (Deficit) | 1,545,000 | (1,864,000) |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 3,035,000 | $ 2,327,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 97,848,735 | 95,970,735 |
Common stock, shares outstanding | 97,848,735 | 95,970,735 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | ||
Sales | $ 67,000 | $ 43,000 |
Cost of goods sold | 5,000 | |
Gross profit | 67,000 | 38,000 |
Operating expenses: | ||
Selling, general and administrative expenses | 1,109,000 | 694,000 |
Product development costs | 40,000 | 79,000 |
Total operating expenses | 1,149,000 | 773,000 |
Loss from operations | (1,082,000) | (735,000) |
Other income (expense): | ||
Other income, net | 70,000 | |
Gain on extinguishment of debt | 52,000 | |
Unrealized gain from investments | 251,000 | |
Realized gain from Investments | 121,000 | |
Interest income, net | 15,000 | |
Interest expense | (9,000) | |
Interest expense, related party | (104,000) | (154,000) |
Total other income (expense) | 396,000 | (154,000) |
Net loss from Continuing operations | (686,000) | (889,000) |
Net income from sale of discontinued operations | 3,915,000 | |
Net (loss) income from discontinued operations | (176,000) | 1,374,000 |
Net Income | $ 3,053,000 | $ 485,000 |
Basic loss per share from continuing operations (in Dollars per share) | $ (0.01) | $ (0.01) |
Basic income per share from sale of discontinued operations (in Dollars per share) | 0.04 | |
Basic (loss) income per share from discontinued operations (in Dollars per share) | 0 | 0.01 |
Basic income per share (in Dollars per share) | 0.03 | 0.01 |
Diluted income per share (in Dollars per share) | $ 0.03 | $ 0.01 |
Weighted average common shares outstanding, basic (in Shares) | 97,446,201 | 92,088,797 |
Weighted average common shares outstanding, diluted (in Shares) | 97,446,201 | 92,308,797 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Shareholders’ Deficit - USD ($) | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Balance at Dec. 31, 2019 | $ 9,000 | $ 16,447,000 | $ (19,794,000) | $ (3,338,000) | |
Balance (in Shares) at Dec. 31, 2019 | 90,347,526 | ||||
Proceeds from sale of common stock | $ 1,000 | 682,000 | 683,000 | ||
Proceeds from sale of common stock (in Shares) | 4,275,665 | ||||
Common stock issued for services | 31,000 | 31,000 | |||
Common stock issued for services (in Shares) | 125,000 | ||||
Common stock issued for debt conversion | 275,000 | 275,000 | |||
Common stock issued for debt conversion (in Shares) | 1,222,544 | ||||
Net Income | 485,000 | 485,000 | |||
Balance at Dec. 31, 2020 | $ 10,000 | 17,435,000 | (19,309,000) | (1,864,000) | |
Balance (in Shares) at Dec. 31, 2020 | 95,970,735 | ||||
Proceeds from sale of common stock | 301,000 | 301,000 | |||
Proceeds from sale of common stock (in Shares) | 2,012,000 | ||||
Shares returned | |||||
Shares returned (in Shares) | (500,000) | ||||
Common stock issued as a prior year correction | |||||
Common stock issued as a prior year correction (in Shares) | 16,000 | ||||
Common stock issued for services | 55,000 | 55,000 | |||
Common stock issued for services (in Shares) | 350,000 | ||||
Net Income | 3,053,000 | 3,053,000 | |||
Balance at Dec. 31, 2021 | $ 10,000 | $ 17,791,000 | $ (16,256,000) | $ 1,545,000 | |
Balance (in Shares) at Dec. 31, 2021 | 97,848,735 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows from Operating Activities | ||
Net income | $ 3,053,000 | $ 485,000 |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Income from discontinued operations | (3,739,000) | (1,374,000) |
Depreciation | 51,000 | 27,000 |
Amortization of right of use asset | 25,000 | |
Stock issued for services | 55,000 | 31,000 |
Realized and unrealized Gain from investments | (372,000) | |
Gain on extinguishment of debt | (52,000) | |
Changes in Assets and Liabilities: | ||
Accounts receivable | 40,000 | (39,000) |
Prepaid expenses and other | (57,000) | |
Accounts payable | (13,000) | 35,000 |
Customer advanced payments | 10,000 | |
Accrued expenses | 6,000 | (1,000) |
Accrued interest on loans | 5,000 | 21,000 |
Accrued interest on related party loans | (100,000) | 148,000 |
Accrued payroll to a former officer | 94,000 | 130,000 |
Operating cashflow from discontinued operations | 4,002,000 | 1,043,000 |
Net cash provided by operating activities | 2,983,000 | 531,000 |
Cash Flows from Investing Activities | ||
Purchase of property and equipment | (159,000) | (8,000) |
Investment in trading securities | (3,800,000) | |
Sale of fixed assets | 400,000 | |
Proceeds from trading securities | 2,525,000 | |
Investing cashflow from discontinued operations | (1,295,000) | |
Net cash used in investing activities | (1,034,000) | (1,303,000) |
Cash Flows from Financing Activities | ||
Proceeds from sale of common stock | 301,000 | 683,000 |
Proceeds from secured convertible note payable | 196,000 | |
Proceeds from loans payable | 143,000 | 765,000 |
Payment of loans payable | (103,000) | (23,000) |
Proceeds from line of credit | 60,000 | |
Payment of line of credit | (11,000) | |
Payment of finance lease | (2,000) | |
Proceeds from notes payable related party | 408,000 | |
Payments on notes payable related party | (2,112,000) | (832,000) |
Financing cashflow from discontinued operations | (471,000) | |
Net cash (used in) provided by financing activities | (1,771,000) | 773,000 |
Net change in cash | 178,000 | 1,000 |
Cash beginning of year | 108,000 | 107,000 |
Cash end of year | 286,000 | 108,000 |
Supplemental Cash Flow Information: | ||
Interest paid | 531,000 | 48,000 |
Taxes paid | 2,000 | |
Non-cash Financing Activities: | ||
Conversion of convertible notes and accrued interest into common shares | 275,000 | |
Offset lease receivable, related party with notes payable, related party |
Organization
Organization | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
ORGANIZATION | NOTE 1 – ORGANIZATION US Lighting Group, Inc. (the “Company”) was founded in 2013 in accordance with the laws of Wyoming and is located in Euclid, Ohio. On January 11, 2021, the Company created a new wholly owned subsidiary called Cortes Campers, LLC, domiciled in Wyoming. Cortes Campers, LLC was created to market tow behind travel trailers for the recreational vehicle market . The division was in the early stage of revenue generation as of the date of this report. The revenue recognized in 2021 was generated through exclusive distributor fees, rather than a sale of a physical product. The first camper was delivered on February 19, 2022. The Company created a new wholly owned subsidiary called Fusion X Marine, LLC on April 12, 2021, domiciled in Wyoming, to sell boats and other related products to the recreational marine market. The subsidiary has had no sales as of the date of this report. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The Company’s consolidated Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the estimated useful lives of property and equipment. Actual results could differ from those estimates. Concentrations of Credit Risk We maintain our cash in bank deposit accounts, the balances of which at times may exceed federally insured limits. We continually monitor our banking relationships and consequently have not experienced any losses in our accounts. We believe we are not exposed to any significant credit risk on cash. Cash equivalents The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. There was $205,000 and $0 of cash equivalents for the years ended December 31, 2021, and December 31, 2020, respectively, held in the Company’s investment account. Basis of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries Intellitronix Corp., Cortes Campers, LLC and Fusion X Marine, LLC. All intercompany transactions and balances have been eliminated in consolidation. Basic and Diluted Earnings Per Share Basic earnings per share are computed by dividing net income (loss) available to common shareholders by the weighted-average number of common shares available. Diluted earnings per share is computed by dividing the net income applicable to common shareholders by the weighted average number of common shares outstanding plus the number of additional common shares that would have been outstanding if all dilutive potential common shares had been issued using the treasury stock method. Potential common shares are excluded from the computation when their effect is antidilutive. The dilutive effect of potentially dilutive securities is reflected in diluted net income per share if the exercise prices were lower than the average fair market value of common shares during the reporting period. As of December 31, 2021, there are no shares of common stock issuable under convertible note agreements. As of December 31, 2020, there were warrants to acquire 20,000 shares of common stock, and 200,000 shares of common stock issuable under convertible note agreements. Revenue Recognition The Company recognizes revenue in accordance with Accounting Standard Update (“ASU”) No. 2014-09. This standard provides authoritative guidance clarifying the principles for recognizing revenue and developing a common revenue standard for U.S. generally accepted accounting principles. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in the exchange for those goods or services. Under this guidance, revenue is recognized when control of promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company reviews its sales transactions to identify contractual rights, performance obligations, and transaction prices, including the allocation of prices to separate performance obligations, if applicable. Revenue and costs of sales are recognized once products are delivered to the customer’s control and performance obligations are satisfied. Accounts Receivable The Company evaluates the collectability of its trade accounts receivable based on a number of factors. In circumstances where the Company becomes aware of a specific customer’s inability to meet its financial obligations to the Company, a specific reserve for bad debts is estimated and recorded, which reduces the recognized receivable to the estimated amount the Company believes will ultimately be collected. In addition to specific customer identification of potential bad debts, bad debt charges are recorded based on the Company’s historical losses and an overall assessment of past due trade accounts receivable outstanding. The allowance for doubtful accounts and returns is established through a provision reducing the carrying value of receivables. At December 31, Inventories Inventories are stated at the lower of cost or net realizable value. Cost is computed on a first-in, first-out basis. The Company’s inventory as of December 31, 2020, is included in discontinued operations. The Company provides inventory adjustments based on excess and obsolete inventories determined primarily by future demand forecasts. The write down amount is measured as the difference between the cost of the inventory and market based upon assumptions about future demand and charged to the provision for inventory, which is a component of cost of sales. At the point of the loss recognition, a new, lower cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. Property and Equipment Property and equipment are carried at cost less accumulated depreciation and amortization. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. The Company has determined the estimated useful lives of its property and equipment, as follows: Building 40 years Building and land improvements 7-15 years Vehicles 5 years Production equipment 5 years Office equipment 3 years Furniture and fixtures 7 years Maintenance and repairs are charged to expense as incurred. The cost and accumulated depreciation of assets sold or otherwise disposed of are removed from the related accounts and the resulting gain or loss is reflected in the statements of operations. Management assesses the carrying value of property and equipment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If there is an indication of impairment, management prepares an estimate of future cash flows expected to result from the use of the asset and its eventual disposition. If these cash flows are less than the carrying amount of the asset, an impairment loss is recognized to write down the asset to its estimated fair value. Product Development Costs Product development costs are expensed in the period incurred. The costs primarily consist of prototype and testing costs. Product development costs for the years ended December 2021 and 2020, were $40,000 and $236,000, respectively. Shipping and Handling Costs The Company’s shipping and handling costs relating to inbound and outbound freight are reported as cost of goods sold in the consolidated Statements of Operations. The Company classifies amounts billed to customers for shipping fees as revenues. Income Taxes Income tax expense is based on pretax financial accounting income. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. Valuation allowances are recorded to reduce deferred tax assets to the amount that will more likely than not be realized. The Company has recorded a valuation allowance against its deferred tax assets as of December 31, 2021, and 2020. The Company accounts for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50 percent likely of being realized upon settlement. The Company classifies the liability for unrecognized tax benefits as current to the extent that the Company anticipates payment (or receipt) of cash within one year. Interest and penalties related to uncertain tax positions are recognized in the provision for income taxes. Fair Value Measurements The Company determines the fair value of its assets and liabilities based on the exchange price in U.S. dollars that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses a fair value hierarchy with three levels of inputs, of which the first two are considered observable and the last unobservable, to measure fair value: ● Level 1 — Quoted prices in active markets for identical assets or liabilities. ● Level 2 — Inputs, other than Level 1, that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The carrying amounts of financial instruments such as cash, accounts receivable, inventories, accounts payable and accrued liabilities, accrued payroll liabilities, and advanced customer deposits, approximate the related fair values due to the short-term maturities of these instruments. The carrying values of the line of credit and notes payable approximate their fair values due to the fact that the interest rates on these obligations are based on prevailing market interest rates. Stock-based Compensation In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. ASU 2018-07 allows companies to account for nonemployee awards in the same manner as employee awards. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those annual periods. We adopted this ASU on January 1, 2019. The Company on occasion will compensate vendors by issuing stock in lieu of a cash payment. Recently Accounting Pronouncements In August 2020, the FASB issued ASU 2020-06 , Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40)—Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. Derivatives and Hedging Derivatives and Hedging—Contracts in Entity’s Own Equity The Company has implemented all new applicable accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
Liquidity
Liquidity | 12 Months Ended |
Dec. 31, 2021 | |
Liquidity [Abstract] | |
LIQUIDITY | NOTE 3 - LIQUIDITY The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. During the year ended December 31, 2021, the Company realized net income of $3,053,000 and cash provided by operating activities was $2,724,000, compared to cash used in operating activities of $531,000 in the prior year period. Based on current projections, we believe our available cash on-hand, our current efforts to market and sell our products, and our ability to significantly reduce expenses, will provide sufficient cash resources to satisfy our operational needs, for at least one year from the date these financial statements are issued. During 2021, the Company sold its Intellitronix electronics division and began its transition to selling travel campers. At December 31, 2021, the Company had cash on hand in the amount of $286,000. Management estimates that the current cash funds and liquid investments on hand of $1,647,000 will be sufficient to continue operations through December 31, 2022. No assurance can be given that any future financing will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company can obtain additional financing, it may contain undue restrictions on our operations in the case of debt financing, or cause substantial dilution for our stockholders, in the case or equity financing. |
Sale of Assets _ Discontinued O
Sale of Assets / Discontinued Operations | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment Assets Held-for-sale Disclosure [Abstract] | |
SALE OF ASSETS / DISCONTINUED OPERATIONS | NOTE 4 – SALE OF ASSETS / DISCONTINUED OPERATIONS On May 14, 2021, the Company and Intellitronix Corporation entered into an Asset Purchase Agreement with Ohio INTX Cooperative, a State of Ohio cooperative association, to sell selected assets of Intellitronix Corporation. The Asset Purchase Agreement and related sale was finalized on May 14, 2021, with a sale price of $4,520,000.00. Intellitronix Corporation remains a wholly-owned subsidiary of the Company. The Company provided a parental guarantee for a period up to statutory limitations on the performance of Intellitronix Corporation’s duties and obligations under the Asset Purchase Agreement. After the sale of Intellitronix Corporation’s assets to Ohio INTX Cooperative, the Company redirected its operational activity towards the Recreational Vehicle (RV) market In accordance with the provisions of ASC 205-20, Presentation of Financial Statements December 31, December 31, Current Assets of Discontinued Operations: Prepaid expenses and other current assets $ — $ 17,000 Inventory — 212,000 Property and equipment — 650,000 Total Current Assets of Discontinued Operations: $ — $ 879,000 Current Liabilities of Discontinued Operations: Accounts payable $ — $ 316,000 Accrued expenses — 94,000 Loan payable — 170,000 Total Current Liabilities of Discontinued Operations: $ — $ 580,000 In accordance with the provisions of ASC 205-20, we have not included the results of operations from discontinued operations in the results of continuing operations in the consolidated statements of operations. The results of operations from discontinued operations for the years ended December 31, 2021, and 2020, have been reflected as discontinued operations in the consolidated statements of operations and consist of the following. Years ended December 31, 2021 2020 Sales from discontinued operations $ 1,514,000 $ 3,973,000 Cost of goods sold of discontinued operations 585,000 1,314,000 Gross profit of discontinued operations 929,000 2,659,000 Operating expenses of discontinued operations: Selling, general and administrative expenses 956,000 1,272,000 Product development costs 82,000 157,000 Total operating expenses of discontinued operations 1,038,000 1,429,000 Operating loss from discontinued operations (109,000 ) 1,230,000 Other income (expense) of discontinued operations: Gain on sale of assets 3,915,000 — Gain on extinguishment of debt — 195,000 Loss on disposal of fixed asset (63,000 ) — Other income 64,000 30,000 Interest expense (68,000 ) (81,000 ) Total other income 3,848,000 144,000 Net Income from discontinued operations $ 3,739,000 $ 1,374,000 |
Investment in Trading Securitie
Investment in Trading Securities | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT IN TRADING SECURITIES | NOTE 5 – INVESTMENT IN TRADING SECURITIES On May 17, 2020, the Company purchased $3,800,000 of various mutual fund assets from Ameriprise Investments. This investment meets the criteria of level one inputs for which quoted market prices are available in active markets for identical assets or liabilities as of the reporting date. As of December 31, 2021, the shares of Ameriprise have a reported market value of $1,852,000. The Company has adjusted the reported amounts for these investments to market value resulting in an realized and unrealized gain of $121,000 and $251,000, respectively. The source of the $3,800,000 that the Company used to purchase various mutual fund assets from Ameriprise Investments was from the sale of certain assets of Intellitronix Corporation that was consummated on May 14, 2021. The Company purchased the shares of Ameriprise Investments in order to provide shareholders of the Company with a reasonable rate of return while deciding how to deploy these funds towards its planned business operations. However, as a result of this purchase by the Company of The Company does not intend to be an investment company and does not intend to be engaged in the business of investing, reinvesting, owning, holding or trading in securities. As such, the Company intends to rely on Rule 3a-2 under the Investment Company Act, which provides an exclusion from the definition of “investment company” for issuers meeting certain criteria. The Company will endeavor to ensure that it is compliant with the conditions for relying on this rule, within the time period permitted by Rule 3a-2. In an effort to comply with this exclusion, the Company intends to liquidate securities in Ameriprise Investments soon as is reasonably possible until the Company no longer owns securities having a value exceeding 40% of the value of such the Company’s total assets on an unconsolidated basis. Such course of action has been approved and authorized by the Company’s Board of Directors by unanimous written consent on August 17, 2021. The Company holds an investment account with Ameriprise Financial. As of December 31, 2021, the account had $205,000 of cash and $1,647,000 of securities. As of December 31, 2021, the Company owned securities that comprised 54% of the value of the Company’s total assets on a consolidated basis. The Company has not been consistent in achieving its goal of maintaining investments at under 40% of total assets in 2021. In the second quarter of 2021 the Company was over 40%, in the third quarter of 2021 the Company was under 40% and in the fourth quarter of 2021 the Company was again over 40%. The Company is working on remedying this issue and will comply with registering under The Investment Company Act of 1940, if required. As of December 31, 2021, the Company qualified for a one-year registration exclusion under rule 3a-2 of the Investment Company Act of 1940. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 6 – PROPERTY AND EQUIPMENT Property and equipment for continuing operations consist of the following at December 31, 2021, and 2020: December 31, December 31, Building and improvements $ 664,000 $ 645,000 Land 96,000 96,000 Vehicles 319,000 113,000 Office equipment 24,000 5,000 Furniture and fixtures 5,000 22,000 Total property and equipment cost 1,108,000 881,000 Less: accumulated depreciation and amortization (163,000 ) (112,000 ) Property and equipment, net $ 945,000 $ 769,000 Depreciation expense for the years ended December 31, 2021, and 2020 was $51,000 and $27,000, respectively. |
Accrued Payroll to Officer
Accrued Payroll to Officer | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
ACCRUED PAYROLL TO OFFICER | NOTE 7 – ACCRUED PAYROLL TO OFFICER Beginning in January 2018, the Company’s (former) President and CEO (Paul Spivak) voluntarily elected to defer payment of his employment compensation. The balance of the compensation owed to the Company’s (former) President and CEO was $536,000 and $442,000 as of December 31, 2021, and 2020, respectively. Deferral of wages was halted on August 9, 2021, when the Company’s President and CEO resigned. Please see Note 14 for a more complete discussion. As of the date of this report, Paul Spivak is no longer an executive officer or director of the Company. |
Line of Credit
Line of Credit | 12 Months Ended |
Dec. 31, 2021 | |
Line of Credit Facility [Abstract] | |
LINE OF CREDIT | NOTE 8 – LINE OF CREDIT On April 28, 2020, the Company obtained a $50,000 unsecured line of credit from KeyBank. The line of credit currently carries an interest rate equal to the prime rate plus 3.86%, currently 7.11% per annum. The balance outstanding on the line of credit was $0 and $49,000 at December 31, 2021, and 2020, respectively. The line of credit at KeyBank was closed in December 2021 and is part of discontinued operations. |
Loans Payable to Related Partie
Loans Payable to Related Parties | 12 Months Ended |
Dec. 31, 2021 | |
Loans Payable To Related Parties [Abstract] | |
LOANS PAYABLE TO RELATED PARTIES | NOTE 9 – LOANS PAYABLE TO RELATED PARTIES Loans payable to related parties consists of the following at December 31, 2021 and 2020: December 31, December 31, Loan payable to officers/shareholders (a) $ 407,000 $ 2,130,000 Loan payable to related party (b) — 125,000 Loan payable to related party – past due (c) — 34,000 Loan payable to related party – (d) — 330,000 Total loans payable to related parties 407,000 2,619,000 Loans payable to related parties, current portion (407,000 ) (2,619,000 ) Loans payable to related parties, net of current portion $ — $ — a. On December 1, 2016, the Company acquired Intellitronix Corporation from the Company’s former President and majority shareholder. The Company agreed to pay $4,000,000 in exchange for all the shares of Intellitronix Corporation. The sixty-month loan matures in December 2021, requires monthly payments of $74,000, carries an interest rate of 6.25%, and is secured by the assets of Intellitronix Corporation. The loan balance on December 31, 2020, including accrued interest, was $2,130,000. During the year ended December 31, 2021, the Company accrued interest of $89,000 and made principal and interest payments of $1,812,000, leaving a balance outstanding of accrued interest only of $407,000 at December 31, 2021. This accrued interest at December 31, 2021 was not paid at the request of the loan holder who considers it now a demand loan with no maturity date. This loan was accounted for at the holding company level and at the Intellitronix subsidiary level. Appropriate eliminations were made as part of consolidation. b. During the year ended December 31, 2017, the Company’s (former) President and majority shareholder, contributed $125,000 of working capital to the Company. The contributed working capital balance was converted into a loan with no interest rate, and due on demand. The loan balance was $0 and $125,000 as of December 31, 2021, and 2020, respectively. c. In July 2016, the Company assumed an obligation of Solei Systems, Inc, an entity owned by the Company’s (former) President and shareholder. The Company agreed to enter into a note agreement with Huntington National Bank for $60,000. The loan has an interest rate of 6.00% and requires a monthly payment of $1,000. The loan balance on December 31, 2020, was $34,000. During the year ended December 31, 2021, the Company and Huntington National Bank agreed to settle the past due loan and interest balance for a total of $25,000, and the Company recorded a gain on extinguishment of debt for $9,000, leaving no balance remaining at December 31, 2021. d. On April 24, 2020, the Company entered into a loan agreement (the “Loan Agreement”) with the Company’s (former) President and majority shareholder (the “Lender”), pursuant to which the Company borrowed $408,000 from the Lender. The Loan has a term of twelve months and carries an interest rate of 6.00%. The loan balance on December 31, 2020 was $330,000. During the year ended December 31, 2021, the Company accrued interest of $16,000. The note and all accrued interest were paid in full as of December 31, 2021. Loan payments to related parties were made through a combination of direct payments to the note holder and instructions from the note holder to pay obligations to others on their behalf. The payments made on behalf of the note holder were for personal expenses. The vast majority of these personal expenses were for legal fees. Other personal expenses included one car payment and small cash withdrawals. |
Loans Payable
Loans Payable | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
LOANS PAYABLE | NOTE 10 – LOANS PAYABLE Loan payable for continuing operations consisted of the following as of December 31, 2021, and 2020: December 31, December 31, PayPal Working Capital Loan, net of discount (a) $ 18,000 $ 38,000 PayPal Working Capital Loan, net of discount (b) 7,000 14,000 Secured promissory note (c) 263,000 265,000 Vehicle loans (d) 127,000 105,000 Equipment loan (e) 11,000 16,000 Total loans payable 426,000 438,000 Loans payable, current portion (344,000 ) (86,000 ) Loans payable, net of current portion $ 82,000 $ 352,000 a. On August 12, 2019, the Company entered into a PayPal Working Capital loan. The principal amount of the loan was for $216,000. The Company received net proceeds of $200,000, net of loan fees of $16,000. The loan matures in November 2022 and requires a $1,600 monthly payment. The loan balance on December 31, 2020, was $38,000. During the year ended December 31, 2021, the Company made principal payments of $20,000, leaving a total of $18,000 owed at December 31, 2021. b. On November 25, 2019, the Company entered into a PayPal Working Capital loan. The principal amount of the loan was for $66,000. The Company received net proceeds of $50,000, net of loan fees of $16,000. The loan matures in December 2022 and requires a $600 monthly payment. The loan balance on December 31, 2020, was $14,000. During the year ended December 31, 2021, the Company made principal payments of $7,000, leaving a total of $7,000 owed at December 31, 2021. c. On August 26, 2020, the Company entered into a loan agreement with Apex Commercial Capital Corp. in the principal amount of $266,000 with interest at 9.49% per annum and due on September 10, 2030. The loan requires one hundred nineteen (119) monthly payments of $2,322, with a final balloon payment on the one hundred twentieth (120) month, or September 10, 2030, of $224,835. The loan is guaranteed by the Company and the Company’s former Chief Executive Officer and secured by the Company’s real estate. The loan balance on December 31, 2020, was $265,000. During the year ended December 31, 2021, the Company made principal payments of $2,000, leaving a total of $263,000 owed at December 31, 2021. d. The Company purchases vehicles for employees and research and development activities. Generally, vehicles are sold or traded in at the end of the vehicle loan period. The aggregate vehicle loan balance on three vehicles was $105,000 at December 31, 2020, with an original loan period of 72 to 144 months, and interest rates of zero percent to 10.99%. During the year ended December 31, 2021, the Company purchased a vehicle for $40,000, with a 72 month loan term, and an interest rate of 4.15%, and made total principal payments of $18,000 on its vehicle loans, leaving an aggregate loan balance on three vehicles of $127,000 at December 31, 2021. e. On August 3, 2020, the Company entered into a $18,000 term loan with Leaf Capital related to the purchase of production equipment. The loan requires monthly payments over the term of 36 months, has an interest rate of 8.48% per annum, and is secured by the production equipment. The loan balance on December 31, 2020, was $16,000. During the year ended December 31, 2021, the Company made principal payments of $5,000, leaving a total of $11,000 owed at December 31, 2021. On April 27, 2021, the Company was granted a loan (the “PPP loan”) from Huntington Bank in the aggregate amount of $52,000 pursuant to the Paycheck Protection Program (the “PPP”) under the CARES Act. The PPP loan agreement is dated April 27, 2021, matures on April 27, 2022, bears interest at a rate of 1% per annum, is unsecured and guaranteed by the U.S. Small Business Administration (SBA). Under the terms of the PPP, certain amounts of the loan may be forgiven if they are used for qualifying expenses. The following sets forth the loan payments, including interest, for the years ended December 31: 2022 $ 82,000 2023 $ 54,000 2024 $ 50,000 2025 $ 50,000 2026 $ 46,000 Thereafter $ 144,000 Total $ 426,000 |
Convertible Secured Note Payabl
Convertible Secured Note Payable | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE SECURED NOTE PAYABLE | NOTE 11 – CONVERTIBLE SECURED NOTE PAYABLE The Company issued |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS’ EQUITY | NOTE 12 – SHAREHOLDERS’ EQUITY Common shares issued for cash During the year ended December 31, 2021, and 2020, the Company received proceeds of $301,000 and $50,000 on the private placement of 2,012,000 and 200,000 shares of common stock, at an average price of $0.15 and $0.25 per share, respectively. During the year ended December 31, 2021, the Company issued 350,000 shares of common stock for services for total non-cash expense of $55,000. During the year ended December 31, 2021, 500,000 shares of common stock were returned to the treasury. During the year ended December 31, 2021, 16,000 shares of common stock were issued to correct for an issuance of shares in 2020. Summary of Warrants A summary of warrants for the period ended December 31, 2021, is as follows: Number Weighted Warrants Price Balance outstanding, December 31, 2020 20,000 0.25 Warrants granted - - Warrants exercised - - Warrants expired or forfeited (20,000 ) - Balance outstanding, December 31, 2021 - $ - Balance exercisable, December 31, 2021 - $ - |
Incometaxes
Incometaxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOMETAXES | NOTE 13 – INCOMETAXES At December 31, 2021, the Company had available Federal and state net operating loss carryforwards to reduce future taxable income. The amounts available were approximately $1,500,000 for Federal and state purposes. The carryforwards expire in various amounts through 2041. Given the Company’s history of net operating losses, management has determined that it is more likely than not that the Company will not be able to realize the tax benefit of the carryforwards. Accordingly, the Company has not recognized a deferred tax asset for this benefit. Section 382 generally limits the use of NOLs and credits following an ownership change, which occurs when one or more 5 percent shareholders increase their ownership, in aggregate, by more than 50 percentage points over the lowest percentage of stock owned by such shareholders at any time during the “testing period” (generally three years). Effective January 1, 2007, the Company adopted FASB guidelines that address the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under this guidance, we may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. This guidance also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. At the date of adoption, and as of December 31, 2021, and 2020, the Company did not have a liability for unrecognized tax benefits, and no adjustment was required at adoption. The Company’s policy is to record interest and penalties on uncertain tax provisions as income tax expense. As of December 31, 2021, and 2020, the Company has not accrued interest or penalties related to uncertain tax positions. Additionally, tax years 2018 through 2021 remain open to examination by the major taxing jurisdictions to which the Company is subject. Upon the attainment of taxable income by the Company, management will assess the likelihood of realizing the tax benefit associated with the use of the carryforwards and will recognize the appropriate deferred tax asset at that time. The Company’s effective income tax rate differs from the amount computed by applying the federal statutory income tax rate to loss before income taxes as follows: December 31, December 31, Income tax benefit at federal statutory rate (21.0 )% (21.0 )% State income tax benefit, net of federal benefit (6.0 )% (6.0 )% Change in valuation allowance 27.00 % 27.00 % Income taxes at effective tax rate - % - % December 31, December 31, The components of deferred taxes consist of the following: Net operating loss carryforwards $ 1,500,000 $ 4,800,000 Deferred Tax Asset 405,000 1,296,000 Less: Valuation allowance (405,000 ) (1,296,000 ) Net deferred tax assets $ - $ - |
Legal Proceedings
Legal Proceedings | 12 Months Ended |
Dec. 31, 2021 | |
Legal Proceedings [Abstract] | |
LEGAL PROCEEDINGS | NOTE 14 – LEGAL PROCEEDINGS On June 8, 2021, Paul Spivak, former Chief Executive Officer of the Company was arrested for conspiracy to commit securities fraud. Upon his arrest, the Company learned that on June 7, 2021, a Criminal Complaint was filed against Mr. Spivak in the United States District Court for the Northern District of Ohio. On October 8, 2021, a superseding indictment was unsealed that included additional securities fraud related charges against Mr. Spivak and Olga Smirnova (Secretary and Director, wife of Mr. Spivak), amongst others, The Company has been advised that Mr. Spivak and Ms. Smirnova pleaded not guilty to the charges. Both have advised that they intend to deny the charges and intend to vehemently defend themselves against these charges. The Company has not been named in the superseding indictment and is unable to know the eventual outcome, timing and course of actions of this matter. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 15 – SUBSEQUENT EVENTS On February 2, 2022, the Board of Directors increased the size of the Board of Directors of the Company by one member, and named Patricia Salaciak as the third director, to serve until the next election of directors at a meeting of the shareholders of the Company or until such director’s successor is elected and qualified, or until the director’s earlier death, resignation or removal. The Company has no written compensation agreement with Mrs. Salaciak. On January 12, 2022, the Company created Futuro Houses, LLC, a new wholly owned subsidiary to manufacture and sell fiberglass houses. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The Company’s consolidated |
Use of Estimates | Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the estimated useful lives of property and equipment. Actual results could differ from those estimates. |
Concentrations of Credit Risk | Concentrations of Credit Risk We maintain our cash in bank deposit accounts, the balances of which at times may exceed federally insured limits. We continually monitor our banking relationships and consequently have not experienced any losses in our accounts. We believe we are not exposed to any significant credit risk on cash. |
Cash Equivalents | Cash equivalents The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. There was $205,000 and $0 of cash equivalents for the years ended December 31, 2021, and December 31, 2020, respectively, held in the Company’s investment account. |
Basis of Consolidation | Basis of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries Intellitronix Corp., Cortes Campers, LLC and Fusion X Marine, LLC. All intercompany transactions and balances have been eliminated in consolidation. |
Basic and Diluted Earnings Per Share | Basic and Diluted Earnings Per Share Basic earnings per share are computed by dividing net income (loss) available to common shareholders by the weighted-average number of common shares available. Diluted earnings per share is computed by dividing the net income applicable to common shareholders by the weighted average number of common shares outstanding plus the number of additional common shares that would have been outstanding if all dilutive potential common shares had been issued using the treasury stock method. Potential common shares are excluded from the computation when their effect is antidilutive. The dilutive effect of potentially dilutive securities is reflected in diluted net income per share if the exercise prices were lower than the average fair market value of common shares during the reporting period. As of December 31, 2021, there are no shares of common stock issuable under convertible note agreements. As of December 31, 2020, there were warrants to acquire 20,000 shares of common stock, and 200,000 shares of common stock issuable under convertible note agreements. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue in accordance with Accounting Standard Update (“ASU”) No. 2014-09. This standard provides authoritative guidance clarifying the principles for recognizing revenue and developing a common revenue standard for U.S. generally accepted accounting principles. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in the exchange for those goods or services. Under this guidance, revenue is recognized when control of promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company reviews its sales transactions to identify contractual rights, performance obligations, and transaction prices, including the allocation of prices to separate performance obligations, if applicable. Revenue and costs of sales are recognized once products are delivered to the customer’s control and performance obligations are satisfied. |
Accounts Receivable | Accounts Receivable The Company evaluates the collectability of its trade accounts receivable based on a number of factors. In circumstances where the Company becomes aware of a specific customer’s inability to meet its financial obligations to the Company, a specific reserve for bad debts is estimated and recorded, which reduces the recognized receivable to the estimated amount the Company believes will ultimately be collected. In addition to specific customer identification of potential bad debts, bad debt charges are recorded based on the Company’s historical losses and an overall assessment of past due trade accounts receivable outstanding. The allowance for doubtful accounts and returns is established through a provision reducing the carrying value of receivables. At December 31, |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Cost is computed on a first-in, first-out basis. The Company’s inventory as of December 31, 2020, is included in discontinued operations. The Company provides inventory adjustments based on excess and obsolete inventories determined primarily by future demand forecasts. The write down amount is measured as the difference between the cost of the inventory and market based upon assumptions about future demand and charged to the provision for inventory, which is a component of cost of sales. At the point of the loss recognition, a new, lower cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. |
Property and Equipment | Property and Equipment Property and equipment are carried at cost less accumulated depreciation and amortization. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. The Company has determined the estimated useful lives of its property and equipment, as follows: Building 40 years Building and land improvements 7-15 years Vehicles 5 years Production equipment 5 years Office equipment 3 years Furniture and fixtures 7 years Maintenance and repairs are charged to expense as incurred. The cost and accumulated depreciation of assets sold or otherwise disposed of are removed from the related accounts and the resulting gain or loss is reflected in the statements of operations. Management assesses the carrying value of property and equipment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If there is an indication of impairment, management prepares an estimate of future cash flows expected to result from the use of the asset and its eventual disposition. If these cash flows are less than the carrying amount of the asset, an impairment loss is recognized to write down the asset to its estimated fair value. |
Product Development Costs | Product Development Costs Product development costs are expensed in the period incurred. The costs primarily consist of prototype and testing costs. Product development costs for the years ended December 2021 and 2020, were $40,000 and $236,000, respectively. |
Shipping and Handling Costs | Shipping and Handling Costs The Company’s shipping and handling costs relating to inbound and outbound freight are reported as cost of goods sold in the consolidated Statements of Operations. The Company classifies amounts billed to customers for shipping fees as revenues. |
Income Taxes | Income Taxes Income tax expense is based on pretax financial accounting income. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. Valuation allowances are recorded to reduce deferred tax assets to the amount that will more likely than not be realized. The Company has recorded a valuation allowance against its deferred tax assets as of December 31, 2021, and 2020. The Company accounts for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50 percent likely of being realized upon settlement. The Company classifies the liability for unrecognized tax benefits as current to the extent that the Company anticipates payment (or receipt) of cash within one year. Interest and penalties related to uncertain tax positions are recognized in the provision for income taxes. |
Fair Value Measurements | Fair Value Measurements The Company determines the fair value of its assets and liabilities based on the exchange price in U.S. dollars that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses a fair value hierarchy with three levels of inputs, of which the first two are considered observable and the last unobservable, to measure fair value: ● Level 1 — Quoted prices in active markets for identical assets or liabilities. ● Level 2 — Inputs, other than Level 1, that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The carrying amounts of financial instruments such as cash, accounts receivable, inventories, accounts payable and accrued liabilities, accrued payroll liabilities, and advanced customer deposits, approximate the related fair values due to the short-term maturities of these instruments. The carrying values of the line of credit and notes payable approximate their fair values due to the fact that the interest rates on these obligations are based on prevailing market interest rates. |
Stock-based Compensation | Stock-based Compensation In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. ASU 2018-07 allows companies to account for nonemployee awards in the same manner as employee awards. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those annual periods. We adopted this ASU on January 1, 2019. The Company on occasion will compensate vendors by issuing stock in lieu of a cash payment. |
Recently Accounting Pronouncements | Recently Accounting Pronouncements In August 2020, the FASB issued ASU 2020-06 , Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40)—Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. Derivatives and Hedging Derivatives and Hedging—Contracts in Entity’s Own Equity The Company has implemented all new applicable accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of property and equipment estimated useful lives | Building 40 years Building and land improvements 7-15 years Vehicles 5 years Production equipment 5 years Office equipment 3 years Furniture and fixtures 7 years |
Sale of Assets _ Discontinued_2
Sale of Assets / Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment Assets Held-for-sale Disclosure [Abstract] | |
Schedule of discontinued operations in the consolidated balance sheets | December 31, December 31, Current Assets of Discontinued Operations: Prepaid expenses and other current assets $ — $ 17,000 Inventory — 212,000 Property and equipment — 650,000 Total Current Assets of Discontinued Operations: $ — $ 879,000 Current Liabilities of Discontinued Operations: Accounts payable $ — $ 316,000 Accrued expenses — 94,000 Loan payable — 170,000 Total Current Liabilities of Discontinued Operations: $ — $ 580,000 |
Schedule of operations from discontinued operations | Years ended December 31, 2021 2020 Sales from discontinued operations $ 1,514,000 $ 3,973,000 Cost of goods sold of discontinued operations 585,000 1,314,000 Gross profit of discontinued operations 929,000 2,659,000 Operating expenses of discontinued operations: Selling, general and administrative expenses 956,000 1,272,000 Product development costs 82,000 157,000 Total operating expenses of discontinued operations 1,038,000 1,429,000 Operating loss from discontinued operations (109,000 ) 1,230,000 Other income (expense) of discontinued operations: Gain on sale of assets 3,915,000 — Gain on extinguishment of debt — 195,000 Loss on disposal of fixed asset (63,000 ) — Other income 64,000 30,000 Interest expense (68,000 ) (81,000 ) Total other income 3,848,000 144,000 Net Income from discontinued operations $ 3,739,000 $ 1,374,000 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | December 31, December 31, Building and improvements $ 664,000 $ 645,000 Land 96,000 96,000 Vehicles 319,000 113,000 Office equipment 24,000 5,000 Furniture and fixtures 5,000 22,000 Total property and equipment cost 1,108,000 881,000 Less: accumulated depreciation and amortization (163,000 ) (112,000 ) Property and equipment, net $ 945,000 $ 769,000 |
Loans Payable to Related Part_2
Loans Payable to Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Loans Payable To Related Parties [Abstract] | |
Schedule of loans payable to related parties | December 31, December 31, Loan payable to officers/shareholders (a) $ 407,000 $ 2,130,000 Loan payable to related party (b) — 125,000 Loan payable to related party – past due (c) — 34,000 Loan payable to related party – (d) — 330,000 Total loans payable to related parties 407,000 2,619,000 Loans payable to related parties, current portion (407,000 ) (2,619,000 ) Loans payable to related parties, net of current portion $ — $ — a. On December 1, 2016, the Company acquired Intellitronix Corporation from the Company’s former President and majority shareholder. The Company agreed to pay $4,000,000 in exchange for all the shares of Intellitronix Corporation. The sixty-month loan matures in December 2021, requires monthly payments of $74,000, carries an interest rate of 6.25%, and is secured by the assets of Intellitronix Corporation. The loan balance on December 31, 2020, including accrued interest, was $2,130,000. During the year ended December 31, 2021, the Company accrued interest of $89,000 and made principal and interest payments of $1,812,000, leaving a balance outstanding of accrued interest only of $407,000 at December 31, 2021. This accrued interest at December 31, 2021 was not paid at the request of the loan holder who considers it now a demand loan with no maturity date. This loan was accounted for at the holding company level and at the Intellitronix subsidiary level. Appropriate eliminations were made as part of consolidation. b. During the year ended December 31, 2017, the Company’s (former) President and majority shareholder, contributed $125,000 of working capital to the Company. The contributed working capital balance was converted into a loan with no interest rate, and due on demand. The loan balance was $0 and $125,000 as of December 31, 2021, and 2020, respectively. c. In July 2016, the Company assumed an obligation of Solei Systems, Inc, an entity owned by the Company’s (former) President and shareholder. The Company agreed to enter into a note agreement with Huntington National Bank for $60,000. The loan has an interest rate of 6.00% and requires a monthly payment of $1,000. The loan balance on December 31, 2020, was $34,000. During the year ended December 31, 2021, the Company and Huntington National Bank agreed to settle the past due loan and interest balance for a total of $25,000, and the Company recorded a gain on extinguishment of debt for $9,000, leaving no balance remaining at December 31, 2021. d. On April 24, 2020, the Company entered into a loan agreement (the “Loan Agreement”) with the Company’s (former) President and majority shareholder (the “Lender”), pursuant to which the Company borrowed $408,000 from the Lender. The Loan has a term of twelve months and carries an interest rate of 6.00%. The loan balance on December 31, 2020 was $330,000. During the year ended December 31, 2021, the Company accrued interest of $16,000. The note and all accrued interest were paid in full as of December 31, 2021. Loan payments to related parties were made through a combination of direct payments to the note holder and instructions from the note holder to pay obligations to others on their behalf. The payments made on behalf of the note holder were for personal expenses. The vast majority of these personal expenses were for legal fees. Other personal expenses included one car payment and small cash withdrawals. |
Loans Payable (Tables)
Loans Payable (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of loan payable for continuing operations | December 31, December 31, PayPal Working Capital Loan, net of discount (a) $ 18,000 $ 38,000 PayPal Working Capital Loan, net of discount (b) 7,000 14,000 Secured promissory note (c) 263,000 265,000 Vehicle loans (d) 127,000 105,000 Equipment loan (e) 11,000 16,000 Total loans payable 426,000 438,000 Loans payable, current portion (344,000 ) (86,000 ) Loans payable, net of current portion $ 82,000 $ 352,000 a. On August 12, 2019, the Company entered into a PayPal Working Capital loan. The principal amount of the loan was for $216,000. The Company received net proceeds of $200,000, net of loan fees of $16,000. The loan matures in November 2022 and requires a $1,600 monthly payment. The loan balance on December 31, 2020, was $38,000. During the year ended December 31, 2021, the Company made principal payments of $20,000, leaving a total of $18,000 owed at December 31, 2021. b. On November 25, 2019, the Company entered into a PayPal Working Capital loan. The principal amount of the loan was for $66,000. The Company received net proceeds of $50,000, net of loan fees of $16,000. The loan matures in December 2022 and requires a $600 monthly payment. The loan balance on December 31, 2020, was $14,000. During the year ended December 31, 2021, the Company made principal payments of $7,000, leaving a total of $7,000 owed at December 31, 2021. c. On August 26, 2020, the Company entered into a loan agreement with Apex Commercial Capital Corp. in the principal amount of $266,000 with interest at 9.49% per annum and due on September 10, 2030. The loan requires one hundred nineteen (119) monthly payments of $2,322, with a final balloon payment on the one hundred twentieth (120) month, or September 10, 2030, of $224,835. The loan is guaranteed by the Company and the Company’s former Chief Executive Officer and secured by the Company’s real estate. The loan balance on December 31, 2020, was $265,000. During the year ended December 31, 2021, the Company made principal payments of $2,000, leaving a total of $263,000 owed at December 31, 2021. d. The Company purchases vehicles for employees and research and development activities. Generally, vehicles are sold or traded in at the end of the vehicle loan period. The aggregate vehicle loan balance on three vehicles was $105,000 at December 31, 2020, with an original loan period of 72 to 144 months, and interest rates of zero percent to 10.99%. During the year ended December 31, 2021, the Company purchased a vehicle for $40,000, with a 72 month loan term, and an interest rate of 4.15%, and made total principal payments of $18,000 on its vehicle loans, leaving an aggregate loan balance on three vehicles of $127,000 at December 31, 2021. e. On August 3, 2020, the Company entered into a $18,000 term loan with Leaf Capital related to the purchase of production equipment. The loan requires monthly payments over the term of 36 months, has an interest rate of 8.48% per annum, and is secured by the production equipment. The loan balance on December 31, 2020, was $16,000. During the year ended December 31, 2021, the Company made principal payments of $5,000, leaving a total of $11,000 owed at December 31, 2021. On April 27, 2021, the Company was granted a loan (the “PPP loan”) from Huntington Bank in the aggregate amount of $52,000 pursuant to the Paycheck Protection Program (the “PPP”) under the CARES Act. The PPP loan agreement is dated April 27, 2021, matures on April 27, 2022, bears interest at a rate of 1% per annum, is unsecured and guaranteed by the U.S. Small Business Administration (SBA). Under the terms of the PPP, certain amounts of the loan may be forgiven if they are used for qualifying expenses. |
Schedule of sets forth the loan payments | 2022 $ 82,000 2023 $ 54,000 2024 $ 50,000 2025 $ 50,000 2026 $ 46,000 Thereafter $ 144,000 Total $ 426,000 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of warrants | Number Weighted Warrants Price Balance outstanding, December 31, 2020 20,000 0.25 Warrants granted - - Warrants exercised - - Warrants expired or forfeited (20,000 ) - Balance outstanding, December 31, 2021 - $ - Balance exercisable, December 31, 2021 - $ - |
Incometaxes (Tables)
Incometaxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of federal statutory income tax rate | December 31, December 31, Income tax benefit at federal statutory rate (21.0 )% (21.0 )% State income tax benefit, net of federal benefit (6.0 )% (6.0 )% Change in valuation allowance 27.00 % 27.00 % Income taxes at effective tax rate - % - % |
Schedule of components of deferred taxes | December 31, December 31, The components of deferred taxes consist of the following: Net operating loss carryforwards $ 1,500,000 $ 4,800,000 Deferred Tax Asset 405,000 1,296,000 Less: Valuation allowance (405,000 ) (1,296,000 ) Net deferred tax assets $ - $ - |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Summary of Significant Accounting Policies (Details) [Line Items] | ||
Common stock, shares issued (in Shares) | 97,848,735 | 95,970,735 |
Product development costs | $ 40,000 | $ 236,000 |
Warrant [Member] | ||
Summary of Significant Accounting Policies (Details) [Line Items] | ||
Common stock excluded (in Shares) | 20,000 | |
Common Stock [Member] | ||
Summary of Significant Accounting Policies (Details) [Line Items] | ||
Common stock, shares issued (in Shares) | 200,000 | |
Cash Equivalents [Member] | ||
Summary of Significant Accounting Policies (Details) [Line Items] | ||
Cash equivalents | $ 205,000 | $ 0 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of property and equipment estimated useful lives | 12 Months Ended |
Dec. 31, 2021 | |
Building [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of property and equipment estimated useful lives [Line Items] | |
Property and equipment estimated useful lives | 40 years |
Building improvements [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of property and equipment estimated useful lives [Line Items] | |
Property and equipment estimated useful lives | 7 years |
Building improvements [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of property and equipment estimated useful lives [Line Items] | |
Property and equipment estimated useful lives | 15 years |
Vehicles [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of property and equipment estimated useful lives [Line Items] | |
Property and equipment estimated useful lives | 5 years |
Production equipment [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of property and equipment estimated useful lives [Line Items] | |
Property and equipment estimated useful lives | 5 years |
Office equipment [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of property and equipment estimated useful lives [Line Items] | |
Property and equipment estimated useful lives | 3 years |
Furniture and fixtures [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of property and equipment estimated useful lives [Line Items] | |
Property and equipment estimated useful lives | 7 years |
Liquidity (Details)
Liquidity (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Liquidity [Abstract] | ||
Net income | $ 3,053,000 | $ 485,000 |
Cash provided by operating activities | 2,724,000 | |
Cash used in operating activities | 531,000 | |
Cash | 286,000 | |
Liquid investments on hand | $ 1,647,000 |
Sale of Assets _ Discontinued_3
Sale of Assets / Discontinued Operations (Details) | May 14, 2021 USD ($) |
Property, Plant and Equipment Assets Held-for-sale Disclosure [Abstract] | |
Asset purchase agreement | $ 4,520,000 |
Sale of Assets _ Discontinued_4
Sale of Assets / Discontinued Operations (Details) - Schedule of discontinued operations in the consolidated balance sheets - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Current Assets of Discontinued Operations: | ||
Prepaid expenses and other current assets | $ 17,000 | |
Inventory | 212,000 | |
Property and equipment | 650,000 | |
Total Current Assets of Discontinued Operations: | 879,000 | |
Current Liabilities of Discontinued Operations: | ||
Accounts payable | 316,000 | |
Accrued expenses | 94,000 | |
Loan payable | 170,000 | |
Total Current Liabilities of Discontinued Operations: | $ 580,000 |
Sale of Assets _ Discontinued_5
Sale of Assets / Discontinued Operations (Details) - Schedule of operations from discontinued operations - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of operations from discontinued operations [Abstract] | ||
Sales from discontinued operations | $ 1,514,000 | $ 3,973,000 |
Cost of goods sold of discontinued operations | 585,000 | 1,314,000 |
Gross profit of discontinued operations | 929,000 | 2,659,000 |
Operating expenses of discontinued operations: | ||
Selling, general and administrative expenses | 956,000 | 1,272,000 |
Product development costs | 82,000 | 157,000 |
Total operating expenses of discontinued operations | 1,038,000 | 1,429,000 |
Operating loss from discontinued operations | (109,000) | 1,230,000 |
Other income (expense) of discontinued operations: | ||
Gain on sale of assets | 3,915,000 | |
Gain on extinguishment of debt | 195,000 | |
Loss on disposal of fixed asset | (63,000) | |
Other income | 64,000 | 30,000 |
Interest expense | (68,000) | (81,000) |
Total other income | 3,848,000 | 144,000 |
Net Income from discontinued operations | $ 3,739,000 | $ 1,374,000 |
Investment in Trading Securit_2
Investment in Trading Securities (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
May 14, 2021 | May 17, 2020 | Dec. 31, 2021 | |
Investment in Trading Securities (Details) [Line Items] | |||
Securities exceeding, percentage | 40% | ||
Investments percentage | 40% | ||
Ameriprise Investments [Member] | |||
Investment in Trading Securities (Details) [Line Items] | |||
Purchase of mutual fund assets | $ 3,800,000 | $ 3,800,000 | |
Market value | $ 1,852,000 | ||
Realized gain | 121,000 | ||
Unrealized gain | 251,000 | ||
Ameriprise Financial [Member] | |||
Investment in Trading Securities (Details) [Line Items] | |||
Cash | 205,000 | ||
Securities | $ 1,647,000 | ||
Securities owned, percentage | 54% | ||
Second quarter [Member] | |||
Investment in Trading Securities (Details) [Line Items] | |||
Investments percentage | 40% | ||
Third quarter [Member] | |||
Investment in Trading Securities (Details) [Line Items] | |||
Investments percentage | 40% | ||
Fourth quarter [Member] | |||
Investment in Trading Securities (Details) [Line Items] | |||
Investments percentage | 40% |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 51,000 | $ 27,000 |
Property and Equipment (Detai_2
Property and Equipment (Details) - Schedule of property and equipment - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,108,000 | $ 881,000 |
Less: accumulated depreciation and amortization | (163,000) | (112,000) |
Property and equipment, net | 945,000 | 769,000 |
Building and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 664,000 | 645,000 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 96,000 | 96,000 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 319,000 | 113,000 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 24,000 | 5,000 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 5,000 | $ 22,000 |
Accrued Payroll to Officer (Det
Accrued Payroll to Officer (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Payables and Accruals [Abstract] | ||
Accrued payroll to officer | $ 536,000 | $ 442,000 |
Line of Credit (Details)
Line of Credit (Details) - USD ($) | 12 Months Ended | ||
Apr. 28, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Line of Credit Facility [Abstract] | |||
Unsecured line of credit | $ 50,000 | ||
Line of credit interest rate | 3.86% | 7.11% | |
Line of credit outstanding amount | $ 0 | $ 49,000 |
Loans Payable to Related Part_3
Loans Payable to Related Parties (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Dec. 01, 2016 | Jul. 31, 2016 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2017 | Apr. 28, 2020 | Apr. 24, 2020 | |
Loans Payable to Related Parties (Details) [Line Items] | |||||||
Accrued interest | $ 89,000 | ||||||
Interest rate | 7.11% | 3.86% | |||||
Gain on extinguishment of debt | $ 195,000 | ||||||
Loan payable to officers/shareholders [Member] | |||||||
Loans Payable to Related Parties (Details) [Line Items] | |||||||
Periodic payment | $ 4,000,000 | ||||||
Maturity date description | The sixty-month loan matures in December 2021, requires monthly payments of $74,000, carries an interest rate of 6.25%, and is secured by the assets of Intellitronix Corporation. | ||||||
Accrued interest | 2,130,000 | ||||||
Made principal and interest payments | 1,812,000 | ||||||
Loan balance | 407,000 | ||||||
Loan payable to related party [Member] | |||||||
Loans Payable to Related Parties (Details) [Line Items] | |||||||
Loan balance | 0 | 125,000 | |||||
Working capital | $ 125,000 | ||||||
Loan payable to related party – past due [Member] | |||||||
Loans Payable to Related Parties (Details) [Line Items] | |||||||
Periodic payment | $ 1,000 | ||||||
Loan balance | $ 60,000 | 34,000 | |||||
Interest rate | 6% | ||||||
Interest | 25,000 | ||||||
Gain on extinguishment of debt | 9,000 | ||||||
Loan Agreement [Member] | |||||||
Loans Payable to Related Parties (Details) [Line Items] | |||||||
Made principal and interest payments | $ 16,000 | ||||||
Loan balance | $ 330,000 | ||||||
Interest rate | 6% | ||||||
Borrowed from the lender | $ 408,000 |
Loans Payable to Related Part_4
Loans Payable to Related Parties (Details) - Schedule of loans payable to related parties - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Total loans payable to related parties | $ 407,000 | $ 2,619,000 | |
Loans payable to related parties, current portion | (407,000) | (2,619,000) | |
Loans payable to related parties, net of current portion | |||
Loan payable to officers/shareholders [Member] | |||
Debt Instrument [Line Items] | |||
Total loans payable to related parties | 407,000 | [1] | 2,130,000 |
Loan payable to related party [Member] | |||
Debt Instrument [Line Items] | |||
Total loans payable to related parties | [2] | 125,000 | |
Loan payable to related party – past due [Member] | |||
Debt Instrument [Line Items] | |||
Total loans payable to related parties | [3] | 34,000 | |
Loan payable to related party One [Member] | |||
Debt Instrument [Line Items] | |||
Total loans payable to related parties | [4] | $ 330,000 | |
[1] On December 1, 2016, the Company acquired Intellitronix Corporation from the Company’s former President and majority shareholder. The Company agreed to pay $4,000,000 in exchange for all the shares of Intellitronix Corporation. The sixty-month loan matures in December 2021, requires monthly payments of $74,000, carries an interest rate of 6.25%, and is secured by the assets of Intellitronix Corporation. The loan balance on December 31, 2020, including accrued interest, was $2,130,000. During the year ended December 31, 2021, the Company accrued interest of $89,000 and made principal and interest payments of $1,812,000, leaving a balance outstanding of accrued interest only of $407,000 at December 31, 2021. This accrued interest at December 31, 2021 was not paid at the request of the loan holder who considers it now a demand loan with no maturity date. This loan was accounted for at the holding company level and at the Intellitronix subsidiary level. Appropriate eliminations were made as part of consolidation. During the year ended December 31, 2017, the Company’s (former) President and majority shareholder, contributed $125,000 of working capital to the Company. The contributed working capital balance was converted into a loan with no interest rate, and due on demand. The loan balance was $0 and $125,000 as of December 31, 2021, and 2020, respectively. |
Loans Payable (Details)
Loans Payable (Details) - USD ($) | 12 Months Ended | ||||||||
Sep. 24, 2021 | Apr. 27, 2021 | Aug. 26, 2020 | Aug. 03, 2020 | Nov. 25, 2019 | Aug. 12, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Apr. 28, 2020 | |
Loans Payable (Details) [Line Items] | |||||||||
Principal amount of loan | $ 66,000 | $ 216,000 | |||||||
Net proceeds | 50,000 | 200,000 | |||||||
Net of loan fees | 16,000 | 16,000 | |||||||
Loan matures monthly payment | $ 600 | ||||||||
Interest rate | 7.11% | 3.86% | |||||||
PPP Loan [Member] | |||||||||
Loans Payable (Details) [Line Items] | |||||||||
Aggregate amount | $ 52,000 | ||||||||
Interest rate | 1% | ||||||||
Gain amount | $ 52,000 | ||||||||
PayPal Working Capital loan [Member] | |||||||||
Loans Payable (Details) [Line Items] | |||||||||
Loan matures monthly payment | $ 1,600 | ||||||||
Loan balance | $ 38,000 | ||||||||
Principal payments | $ 20,000 | ||||||||
Leaving a total amount owed | 18,000 | ||||||||
PayPal Working Capital loan one [Member] | |||||||||
Loans Payable (Details) [Line Items] | |||||||||
Loan balance | 14,000 | ||||||||
Principal payments | 7,000 | ||||||||
Leaving a total amount owed | 7,000 | ||||||||
Apex Commercial Capital Corp. [Member] | |||||||||
Loans Payable (Details) [Line Items] | |||||||||
Leaving a total amount owed | 2,000 | ||||||||
Loan term amount | $ 266,000 | ||||||||
Interest rate | 9.49% | ||||||||
Loans payable, description | The loan requires one hundred nineteen (119) monthly payments of $2,322, with a final balloon payment on the one hundred twentieth (120) month, or September 10, 2030, of $224,835. | ||||||||
Loan balance | 265,000 | ||||||||
Balance owed | $ 263,000 | ||||||||
Vehicle loans [Member] | |||||||||
Loans Payable (Details) [Line Items] | |||||||||
Loans payable, description | The aggregate vehicle loan balance on three vehicles was $105,000 at December 31, 2020, with an original loan period of 72 to 144 months, and interest rates of zero percent to 10.99%. During the year ended December 31, 2021, the Company purchased a vehicle for $40,000, with a 72 month loan term, and an interest rate of 4.15%, and made total principal payments of $18,000 on its vehicle loans, leaving an aggregate loan balance on three vehicles of $127,000 at December 31, 2021. | ||||||||
Equipment Loan Three [Member] | |||||||||
Loans Payable (Details) [Line Items] | |||||||||
Loan balance | $ 16,000 | ||||||||
Principal payments | $ 5,000 | ||||||||
Leaving a total amount owed | $ 11,000 | ||||||||
Loan term amount | $ 18,000 | ||||||||
Loan term | 36 months | ||||||||
Interest rate | 8.48% |
Loans Payable (Details) - Sched
Loans Payable (Details) - Schedule of loan payable for continuing operations - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | |
Loans Payable (Details) - Schedule of loan payable for continuing operations [Line Items] | |||
Total loans payable | $ 426,000 | $ 438,000 | |
Loans payable, current portion | (344,000) | (86,000) | |
Loans payable, net of current portion | 82,000 | 352,000 | |
PayPal Working Capital Loan, net of discount [Member] | |||
Loans Payable (Details) - Schedule of loan payable for continuing operations [Line Items] | |||
Total loans payable | [1] | 18,000 | 38,000 |
PayPal Working Capital Loan, net of discount one [Member] | |||
Loans Payable (Details) - Schedule of loan payable for continuing operations [Line Items] | |||
Total loans payable | [2] | 7,000 | 14,000 |
Secured promissory note [Member] | |||
Loans Payable (Details) - Schedule of loan payable for continuing operations [Line Items] | |||
Total loans payable | [3] | 263,000 | 265,000 |
Vehicle loans [Member] | |||
Loans Payable (Details) - Schedule of loan payable for continuing operations [Line Items] | |||
Total loans payable | [4] | 127,000 | 105,000 |
Equipment loan [Member] | |||
Loans Payable (Details) - Schedule of loan payable for continuing operations [Line Items] | |||
Total loans payable | [5] | $ 11,000 | $ 16,000 |
[1] On August 12, 2019, the Company entered into a PayPal Working Capital loan. The principal amount of the loan was for $216,000. The Company received net proceeds of $200,000, net of loan fees of $16,000. The loan matures in November 2022 and requires a $1,600 monthly payment. The loan balance on December 31, 2020, was $38,000. During the year ended December 31, 2021, the Company made principal payments of $20,000, leaving a total of $18,000 owed at December 31, 2021. On November 25, 2019, the Company entered into a PayPal Working Capital loan. The principal amount of the loan was for $66,000. The Company received net proceeds of $50,000, net of loan fees of $16,000. The loan matures in December 2022 and requires a $600 monthly payment. The loan balance on December 31, 2020, was $14,000. During the year ended December 31, 2021, the Company made principal payments of $7,000, leaving a total of $7,000 owed at December 31, 2021. On August 26, 2020, the Company entered into a loan agreement with Apex Commercial Capital Corp. in the principal amount of $266,000 with interest at 9.49% per annum and due on September 10, 2030. The loan requires one hundred nineteen (119) monthly payments of $2,322, with a final balloon payment on the one hundred twentieth (120) month, or September 10, 2030, of $224,835. The loan is guaranteed by the Company and the Company’s former Chief Executive Officer and secured by the Company’s real estate. The loan balance on December 31, 2020, was $265,000. During the year ended December 31, 2021, the Company made principal payments of $2,000, leaving a total of $263,000 owed at December 31, 2021. The Company purchases vehicles for employees and research and development activities. Generally, vehicles are sold or traded in at the end of the vehicle loan period. The aggregate vehicle loan balance on three vehicles was $105,000 at December 31, 2020, with an original loan period of 72 to 144 months, and interest rates of zero percent to 10.99%. During the year ended December 31, 2021, the Company purchased a vehicle for $40,000, with a 72 month loan term, and an interest rate of 4.15%, and made total principal payments of $18,000 on its vehicle loans, leaving an aggregate loan balance on three vehicles of $127,000 at December 31, 2021. On August 3, 2020, the Company entered into a $18,000 term loan with Leaf Capital related to the purchase of production equipment. The loan requires monthly payments over the term of 36 months, has an interest rate of 8.48% per annum, and is secured by the production equipment. The loan balance on December 31, 2020, was $16,000. During the year ended December 31, 2021, the Company made principal payments of $5,000, leaving a total of $11,000 owed at December 31, 2021. |
Loans Payable (Details) - Sch_2
Loans Payable (Details) - Schedule of sets forth the loan payments | Dec. 31, 2021 USD ($) |
Schedule of sets forth the loan payments [Abstract] | |
2022 | $ 82,000 |
2023 | 54,000 |
2024 | 50,000 |
2025 | 50,000 |
2026 | 46,000 |
Thereafter | 144,000 |
Total | $ 426,000 |
Convertible Secured Note Paya_2
Convertible Secured Note Payable (Details) | 12 Months Ended |
Dec. 31, 2021 USD ($) $ / shares | |
Convertible Secured Note Payable (Details) [Line Items] | |
Conversion price (in Dollars per share) | $ / shares | $ 0.25 |
Proceeds from issuance of convertible notes | $ 5,000 |
Balance of convertible notes | 55,000 |
Additional interest | $ 5,000 |
Expired date | Jun. 04, 2021 |
Maturity date | Jun. 05, 2021 |
Convertible Notes [Member] | |
Convertible Secured Note Payable (Details) [Line Items] | |
Interest per annum | 10% |
Accrued interest | $ 60,000 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Common Stock [Member] | ||
Shareholders' Equity (Details) [Line Items] | ||
Received proceeds (in Dollars) | $ 301,000 | $ 50,000 |
Shares of common stock | 16,000 | |
Common stock issued for services | 350,000 | |
Total non-cash expenses (in Dollars) | $ 55,000 | |
Common stock shares issued for treasury | 500,000 | |
Private Placement [Member] | ||
Shareholders' Equity (Details) [Line Items] | ||
Shares of common stock | 2,012,000 | 200,000 |
Average price per share (in Dollars per share) | $ 0.15 | $ 0.25 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - Schedule of warrants | 12 Months Ended |
Dec. 31, 2021 $ / shares shares | |
Schedule of warrants [Abstract] | |
Number of warrants outstanding, beginning balance | shares | 20,000 |
Weighted average exercise price outstanding, beginning balance | $ / shares | $ 0.25 |
Number of warrants, granted | shares | |
Weighted average exercise price, warrants granted | $ / shares | |
Number of warrants, exercised | shares | |
Weighted average exercise price, warrants exercised | $ / shares | |
Number of warrants, expired or forfeited | shares | (20,000) |
Weighted average exercise price, warrants expired or forfeited | $ / shares | |
Number of warrants outstanding, ending balance | shares | |
Weighted average exercise price outstanding, ending balance | $ / shares | |
Number of warrants, exercisable | shares | |
Weighted average exercise price, exercisable | $ / shares |
Incometaxes (Details)
Incometaxes (Details) | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Incometaxes (Details) [Line Items] | |
Federal and state purposes amount (in Dollars) | $ 1,500,000 |
Testing period | 3 years |
Tax benefits settlement percentage | 50% |
Minimum [Member] | |
Incometaxes (Details) [Line Items] | |
Shareholders ownership percentage | 5% |
Maximum [Member] | |
Incometaxes (Details) [Line Items] | |
Shareholders ownership percentage | 50% |
Incometaxes (Details) - Schedul
Incometaxes (Details) - Schedule of federal statutory income tax rate | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of federal statutory income tax rate [Abstract] | ||
Income tax benefit at federal statutory rate | (21.00%) | (21.00%) |
State income tax benefit, net of federal benefit | (6.00%) | (6.00%) |
Change in valuation allowance | 27% | 27% |
Income taxes at effective tax rate |
Incometaxes (Details) - Sched_2
Incometaxes (Details) - Schedule of components of deferred taxes - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of components of deferred taxes [Abstract] | ||
Net operating loss carryforwards | $ 1,500,000 | $ 4,800,000 |
Deferred Tax Asset | 405,000 | 1,296,000 |
Less: Valuation allowance | (405,000) | (1,296,000) |
Net deferred tax assets |