Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 07, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 000-54942 | ||
Entity Registrant Name | BLUE BIOFUELS, INC. | ||
Entity Central Index Key | 0001549145 | ||
Entity Tax Identification Number | 45-4944960 | ||
Entity Incorporation, State or Country Code | NV | ||
Entity Address, Address Line One | 3710 Buckeye Street | ||
Entity Address, Address Line Two | Suite 120 | ||
Entity Address, City or Town | Palm Beach Gardens | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 33410 | ||
City Area Code | (888) | ||
Local Phone Number | 607-3555 | ||
Title of 12(b) Security | Common Stock par value $0.001 | ||
Trading Symbol | BIOF | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 42,673,856 | ||
Entity Common Stock, Shares Outstanding | 274,153,883 | ||
Auditor Name | Prager Metis CPA’s LLC | ||
Auditor Firm ID | 273 | ||
Auditor Location | Hackensack, New Jersey |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 1,164,664 | $ 286,579 |
Prepaid expenses | 45,051 | 45,324 |
TOTAL CURRENT ASSETS | 1,209,715 | 331,903 |
Other assets | ||
Property and equipment, net of accumulated depreciation and amortization of $273,852 and $231,739 at December 31, 2021 and December 31,2020, respectively | 377,645 | 247,431 |
Security deposits | 30,276 | 30,276 |
Right of Use Assets, net of accumulated amortization | 65,853 | 144,876 |
Patents | 154,758 | 138,016 |
TOTAL OTHER ASSETS | 628,532 | 560,599 |
TOTAL ASSETS | 1,838,247 | 892,502 |
Current liabilities | ||
Accounts payable | 11,059 | 90,965 |
Accounts payable - Related Party | 72,670 | 76,670 |
Deferred wages and director’s fees - Related party | 240,795 | 676,477 |
Lease Liability - Current | 72,346 | 80,078 |
Chapter 11 Settlement | 50,000 | |
Convertible Debentures — Related Party | 75,000 | |
Interest Payable - Related Party | 49,291 | 99,268 |
TOTAL CURRENT LIABILITIES | 496,161 | 1,098,458 |
Long term liabilities | ||
Right of Use Lease Liability, net of current portion | 72,346 | |
Paycheck Protection Program SBA loan | 66,330 | |
Chapter 11 Settlement | 50,000 | |
Notes Payable — Related Party | 2,521,562 | 2,521,562 |
Notes Payable — Other | 216,570 | 216,570 |
Convertible debenture, payable from future profits — Related Party | 204,000 | |
TOTAL LONG TERM LIABILITIES | 2,738,132 | 3,130,808 |
TOTAL LIABILITIES | 3,234,293 | 4,229,266 |
STOCKHOLDERS’ EQUITY (DEFICIT) | ||
Preferred stock; $0.001 par value; 10,000,000 shares authorized; zero shares issued and outstanding | ||
Common stock; $0.001 par value; 1,000,000,000 shares authorized; 274,003,883 issued and outstanding at December 30, 2021, and 241,721,947 shares issued and outstanding at December 31, 2020. | 274,004 | 241,722 |
Additional paid-in capital | 47,151,353 | 43,103,607 |
Accumulated deficit | (48,821,403) | (46,682,093) |
Total stockholders’ equity (deficit) | (1,396,046) | (3,336,764) |
TOTAL EQUITY (DEFICIT) | (1,396,046) | (3,336,764) |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | $ 1,838,247 | $ 892,502 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation and amortization on property and equipment | $ 273,852 | $ 231,739 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 274,003,883 | 241,721,947 |
Common stock, shares outstanding | 274,003,883 | 241,721,947 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | ||
Revenues | ||
Operating expense: | ||
General and administrative | 1,034,948 | 1,227,776 |
Research & Development | 1,103,436 | 763,159 |
Loss on disposal of assets | 33,484 | |
Total operating expenses | 2,171,868 | 1,990,935 |
Loss from operations: | (2,171,868) | (1,990,935) |
Other (income) expense: | ||
Loan Forgiveness | (66,330) | |
Interest expense - related party | 27,084 | 177,875 |
Interest expense - other | 6,688 | 12,317 |
Total other (income) expense | (32,558) | 190,192 |
Income (Loss) before provisions for income taxes | (2,139,310) | (2,181,127) |
Provisions for income taxes | ||
Net Income / (Loss): | $ (2,139,310) | $ (2,181,127) |
Net income (loss) per share | $ (0.008) | $ (0.009) |
Weighted average common shares outstanding | ||
Basic | 269,643,759 | 229,878,617 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Common Stock [Member] | Preferred Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2019 | $ 219,513 | $ 40,949,645 | $ (44,500,966) | $ (3,331,808) | |
Beginning balance, shares at Dec. 31, 2019 | 219,513,233 | ||||
Issuance of common stock for services | $ 733 | 36,767 | $ 37,500 | ||
Issuance of common stock for services, shares | 733,130 | 733,130 | |||
Warrants exercised | $ 6,639 | 343,361 | $ 350,000 | ||
Warrants exercised, shares | 6,639,344 | ||||
Issuance of common stock and warrants for cash through PPM | $ 13,558 | 873,822 | 887,380 | ||
Issuance of common stock and warrants for cash through PPM, shares | 13,558,462 | ||||
Issuance of common stock in exchange for debt | $ 1,000 | 24,000 | 25,000 | ||
Issuance of common stock in exchange for debt, shares | 1,000,000 | ||||
Issuance of 11,000,000 vested options under the employee, director plan | 876,291 | 876,291 | |||
Cashless exercise of stock options | $ 278 | (278) | |||
Cashless exercise of stock options, shares | 277,778 | ||||
Net Income (Loss) | (2,181,127) | (2,181,127) | |||
Ending balance, value at Dec. 31, 2020 | $ 241,722 | 43,103,607 | (46,682,093) | (3,336,764) | |
Ending balance, shares at Dec. 31, 2020 | 241,721,947 | ||||
Issuance of common stock for services | $ 516 | 119,636 | 120,152 | ||
Issuance of common stock for services, shares | 515,700 | ||||
Issuance of 1,166,667 warrants for services | 72,090 | 72,090 | |||
Warrants exercised | $ 13,455 | 1,289,362 | 1,302,817 | ||
Warrants exercised, shares | 13,455,008 | ||||
Issuance of common stock and warrants for cash through PPM | $ 10,543 | 2,250,207 | 2,260,750 | ||
Issuance of common stock and warrants for cash through PPM, shares | 10,543,332 | ||||
Issuance of common stock in exchange for debt | $ 7,080 | 271,920 | 279,000 | ||
Issuance of common stock in exchange for debt, shares | 7,080,000 | ||||
Issuance of 11,000,000 vested options under the employee, director plan | 32,319 | 32,319 | |||
Employee stock options exercised | $ 350 | 12,550 | 12,900 | ||
Employee stock options exercised, shares | 350,000 | ||||
Cashless exercise of stock options | $ 338 | (338) | |||
Cashless exercise of stock options, shares | 337,896 | 350,000 | |||
Net Income (Loss) | (2,139,310) | $ (2,139,310) | |||
Ending balance, value at Dec. 31, 2021 | $ 274,004 | $ 47,151,353 | $ (48,821,403) | $ (1,396,046) | |
Ending balance, shares at Dec. 31, 2021 | 274,003,883 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) | 12 Months Ended |
Dec. 31, 2021shares | |
Statement of Stockholders' Equity [Abstract] | |
Warrants issued for services | 1,166,667 |
Vested options issued under employee director plan | 460,000 |
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 (Loss) | $ (2,139,310) | $ (2,181,127) |
Reconciliation of net loss to net cash used in operating activities | ||
Depreciation and amortization | 131,715 | 40,124 |
Stock based compensation for services | 120,152 | 37,500 |
Net Issuance of options and warrants for services | 104,409 | 876,291 |
Loss on Disposal of assets | 33,484 | |
Changes in operating assets and liabilities | ||
Prepaid expenses | 273 | 57,041 |
Accrued interest - related party | (49,977) | 99,268 |
Accounts payable and accrued liabilities | (519,588) | 142,835 |
Forgiveness of PPP Loan | (66,330) | |
Right of use lease | (80,078) | 6,622 |
Net cash used in operating activities | (2,465,250) | (921,446) |
Cash flows from investing activities | ||
Purchase of property and equipment | (216,390) | (147,189) |
Security deposits | ||
Patent Costs | (16,742) | (59,126) |
Net cash from (used in) investing activities | (233,132) | (206,315) |
Cash flows from financing activities | ||
Proceeds from PPP Loan | 66,330 | |
Proceeds from exercise of warrants and options | 1,315,717 | 350,000 |
Net proceeds from issuance of common stock | 2,260,750 | 887,380 |
Net cash provided by financing activities | 3,576,467 | 1,303,710 |
Net increase (decrease) in cash and cash equivalents | 878,085 | 175,949 |
Cash and cash equivalent at beginning of the period | 286,579 | 110,630 |
Cash and cash equivalent at end of the period | 1,164,664 | 286,579 |
Cash paid during the period for | ||
Interest | ||
Taxes | ||
Supplemental schedule of non-cash activities | ||
Conversion of convertible debenture to common stock | $ 279,000 | $ 25,000 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | NOTE 1 – ORGANIZATION Blue Biofuels, Inc (the “Company”) is a technology company focused on emerging technologies in the renewable energy, biofuels, and bioplastics technologies sectors. In early 2018, the Company’s CEO invented a new technology system it calls Cellulose-to-Sugar 2.0 or CTS 2.0, and a patent application was filed and later obtained (U.S. Patent No. 10,994,255). In addition to this patent, the Company has filed provisional patent applications for six additional patents that are currently pending. The CTS 2.0 is a mechanical/chemical dry process for converting cellulose material into sugar for use in the biofuels industry. CTS 2.0 can convert any cellulosic material – like grasses, wood, paper, farm waste, yard waste, forestry products, energy crops like hemp or King Grass, and the cellulosic portion of municipal solid waste – into sugars and lignin, and subsequently into biofuels and bioplastics. The CTS 2.0 system produces sugar and chemically unmodified lignin among other by-products. The sugar can then be further converted into biofuels and the lignin into bioplastics. The Company’s focus is to commercialize its CTS 2.0 technology. The Company has recently finalized its 4 th th Plan of Operation The Company is now doing the engineering work to commercialize its CTS 2.0 technology. The Company intends to raise additional capital and continue engineering work and scaling up towards a full-scale commercial size CTS 2.0 modular unit. At that point, and to minimize dilution to shareholders, the Company will seek project-based financing to build (or acquire and retrofit) or joint venture with existing ethanol producers to produce cellulosic ethanol and lignin/bioplastics from its patented CTS 2.0 system. Once the first plant is profitable, the Company intends to grow with additional plants both in the United States and internationally. The Company has a strategy that includes the following: 1) Selling sugar or ethanol either direct or in combination with joint ventures, mergers, and/or acquisitions of existing businesses in the renewable energy space; 2) Selling low-cost high purity lignin, or using that lignin to produce ion exchange resins, specialty chemicals, or biodegradable plastics, or making biodegradable bioplastics products and selling them under our own brand. |
GOING CONCERN
GOING CONCERN | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GOING CONCERN | NOTE 2 – GOING CONCERN The accompanying consolidated financial statements have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company as a going concern, which assumes the Company will realize its assets and discharge its liabilities in the normal course of business. The Company has not generated any significant revenue since inception and has incurred losses since inception. As of December 31, 2021, the Company has incurred accumulated losses of $ 48,821,403 Management believes that the Company’s future success is dependent upon its ability to achieve profitable operations, generate cash from operating activities and obtain additional financing. There is no assurance that the Company will be able to generate sufficient cash from operations, or sell additional shares of stock or borrow additional funds. The Company’s inability to obtain additional cash could have a material adverse effect on its financial position, results of operations, and its ability to continue in existence. These financial statements do not include any adjustments that might result from the outcome of this uncertainty The COVID-19 pandemic has negatively affected the U.S. and global economies, disrupted global supply chains, resulted in significant travel and transport restrictions, including mandated closures and orders to “shelter-in-place,” and created significant disruption of the financial markets. We are closely monitoring the impact of the COVID-19 pandemic on all aspects of our business, including how it will impact our supply chain, employees, and potential future customers. Our office and lab have remained open during the pandemic. Nevertheless, the pandemic slowed our ability to commercialize our process in two ways: by adversely affecting our ability to raise capital, and by adversely affecting the supply chain of laboratory equipment and various parts of upgrades to our CTS 2.0 system, which slowed the development of our prototypes. The extent to which our operations may be further impacted by the COVID-19 pandemic will depend largely on future developments, which are highly uncertain and cannot be accurately predicted. We may experience additional operating costs due to increased challenges with our workforce (including as a result of illness, absenteeism or government orders), access to supplies, capital, and fundamental support services (such as shipping and transportation). Even after the COVID-19 pandemic has subsided, we may experience materially adverse impacts to our business due to any resulting economic recession or depression. Furthermore, the effects of a potential worsening of global economic conditions and the continued disruptions to and volatility in the financial markets remain unknown. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements of the Company were prepared in accordance with generally accepted accounting principles in the U.S. (“U.S. GAAP”). Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries, after elimination of intercompany accounts and transactions. Investments in business entities in which the Company lacks control but has the ability to exercise significant influence over operating and financial policies are accounted for using the equity method. All material intercompany transactions and balances were eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the dates presented and reported amounts of revenues and expenses during the reporting periods presented. Significant estimates inherent in the preparation of the accompanying Consolidated Financial Statements include estimates of impairment assessment of intangible assets and valuation allowance for deferred tax assets. Estimates are based on past experience and other considerations reasonable under the circumstances. Actual results may differ from these estimates. Cash and Cash Equivalents All highly liquid investments with maturities of three months or less at the date of purchase are considered to be cash equivalents. Stock Compensation The Company recognizes the cost of all share-based payments under the relevant authoritative accounting guidance. Share-based payments include any remuneration paid by the Company in shares of the Company’s common stock or financial instruments that grant the recipient the right to acquire shares of the Company’s common stock. For share-based payments to employees, which consist only of awards made under the stock option plan described below, the Company accounts for the payments in accordance with the provisions of ASC Topic 718, “Stock Compensation”. Share-based payments to consultants, service providers and other non-employees are accounted for in accordance with ASC Topic 718, ASC Topic 505, “Equity Payments to Non-Employees” or other applicable authoritative guidance. Stock-based Compensation Valuation Methodology Stock-based compensation resulting from the issuance of common stock is calculated by reference to the valuation of the stock on the date of issuance, the expense being recognized as the compensation is earned. Stock-based compensation expenses related to employee options and warrants granted to non-employees are recognized as the stock options and warrants are earned. The fair value of the stock options or warrants granted is estimated at the grant date, using the Black-Scholes option-pricing model, and the expense is recognized on a straight-line basis over the shorter of the period over which services are to be received or the life of the option or warrant. The grant date fair value of employee share options and similar instruments is estimated using the Black-Scholes option-pricing model on the basis of the fair value of the underlying common stock on the measurement date, adjusted for the unique characteristics of those equity instruments, using the assumptions noted in the table below. The fair value of the common stock is determined by the then-prevailing closing market price. Expected volatility was based on the historical volatility of the Company’s closing day market price per share. The expected term of options and warrants was based upon the life of the option, and the risk-free rate used was based on the U.S. Treasury Daily Yield Curve Rate. The stock compensation issued for services during the years ended December 31, 2021, and December 31, 2020, were valued on the date of issuance. The following assumptions were used in calculations of the Black-Scholes option pricing models for warrant-based stock compensation issued in the years ended December 31, 2021, and December 31, 2020: SCHEDULE OF BLACK-SCHOLES OPTION PRICING MODELS FOR WARRANT-BASED STOCK COMPENSATION 1/9/20 2/18/20 5/8/20 11/6/20 11/12/20 Risk-free interest rate 1.65 % 1.39 % 0.69 % 0.36 % 0.40 % Expected life 5 5 10 5 5 Expected dividends 0 % 0 % 0 % 0 % 0 % Expected volatility 229.32 % 228.60 % 226.42 % 212.00 % 213.22 % ALLM common stock fair value $ 0.058 $ 0.065 $ 0.083 $ 0.071 $ 0.080 1/5/21 5/18/21 9/13/21 9/30/21 12/13/21 Risk-free interest rate 0.96 % 1.64 % 1.33 % 0.98 % 1.42 % Expected life 10 5 10 5 10 Expected dividends 0 % 0 % 0 % 0 % 0 % Expected volatility 209.98 % 176.37 % 148.35 % 150.25 % 138.97 % ALLM common stock fair value $ 0.124 $ 0.300 $ 0.160 $ 0.255 $ 0.228 Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is provided for on a straight-line basis over the useful lives of the assets, generally 5 10 Patent Capitalization If a product is currently under research and development and is not currently approved for market, costs incurred in connection with patent applications should generally be expensed in the income statement because there is uncertainty as to the future economic benefit of the asset. Conversely, if a product is approved for market (as is the case of the end product ethanol), or if future economic benefit is probable, or if an alternative future use is available to the Company, then such patent costs can be capitalized and amortized over the expected life of the patent(s). Since the Company’s primary end product is sugar converting to ethanol, which are in wide use, the Company has determined that it is reasonable to capitalize the patent costs associated with its CTS process. Research and Development The Company expenses all research and development costs as incurred. For the years ended December 31, 2021, and December 31, 2020, the amounts charged to research and development expenses were $ 1,103,436 763,159 Revenue Recognition Effective January 1, 2018, the Company adopted ASC 606 — Revenue from Contracts with Customers. Under ASC 606, the Company recognizes revenue from the commercial sales of products by: (1) identify the contract (if any) with a customer; (2) identify the performance obligations in the contract (if any); (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract (if any); and (5) recognize revenue when each performance obligation is satisfied. Under ASC 606, revenue is recognized when the following criteria are met: 1. persuasive evidence of an arrangement exists; 2. product has been delivered or the services have been rendered to the customer; 3. the sales price is fixed or determinable; and, 4. collectability of the fee or sales price is reasonably assured. The Company currently has no customers. The Company’s revenues are expected to be derived principally from products sold through joint ventures and corporate owned plants. However, no sales have occurred through those revenue streams to date. The company will recognize revenue when title, ownership, and risk of loss pass to the customer, all of which occurs upon shipment or delivery of the product and is based on the applicable shipping terms. Convertible Instruments The Company evaluates and accounts for conversion options embedded in convertible instruments in accordance with ASC 815 “Derivatives and Hedging Activities”. Applicable GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free-standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under other GAAP with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. The Company accounts for convertible instruments (when we have determined that the embedded conversion options should not be bifurcated from their host instruments) as follows: The Company records when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption. As of December 31, 2021, the Company has no convertible instruments. Accounting for Derivative Instruments The Company issues debentures where the number of shares into which a debenture can be converted is not fixed. For example, when a debenture converts at a discount to market based on the stock price on the date of conversion. In such instances, the embedded conversion option of the convertible debentures is bifurcated from the host contract and recorded at their fair value. In accounting for derivatives, the Company records a liability representing the estimated present value of the conversion feature considering the historic volatility of the Company’s stock, and a discount representing the imputed interest associated with the beneficial conversion feature. The discount is then amortized over the life of the debenture and the derivative liability is adjusted periodically according to stock price fluctuations. At the time of conversion, any remaining derivative liability is charged to additional paid-in capital. For purposes of determining derivative liability, the Company uses Black-Scholes modeling for computing historic volatility. As of December 31, 2021, the Company has no derivative instruments. Common Stock Purchase Warrants and Other Derivative Financial Instruments The Company classifies as equity any contracts that require physical settlement or net-share settlement or provide it with a choice of net-cash settlement or settlement in the Company’s own shares (physical settlement or net-share settlement) provided that such contracts are indexed to its own stock as defined in ASC 815-40 (“Contracts in Entity’s Own Equity”). The Company classifies as assets or liabilities any contracts that require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside the Company’s control) or give the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). The Company assesses the classification of its common stock purchase warrants and other free-standing derivatives at each reporting date to determine whether a change in classification between assets and liabilities is required. Investments in non-consolidated affiliates Investments in non-consolidated affiliates are accounted for using the equity method or cost basis depending upon the level of ownership and/or the Company’s ability to exercise significant influence over the operating and financial policies of the investee. When the equity method is used, investments are recorded at original cost and adjusted periodically to recognize the Company’s proportionate share of the investees’ net income or losses after the date of investment. When net losses from an investment are accounted for under the equity method exceed its carrying amount, the investment balance is reduced to zero and additional losses are not provided for. The Company resumes accounting for the investment under the equity method if the entity subsequently reports net income and the Company’s share of that net income exceeds the share of net losses not recognized during the period the equity method was suspended. Investments are written down only when there is clear evidence that a decline in value that is other than temporary has occurred. The Company monitors its investment for impairment at least annually and makes appropriate reductions in the carrying value if it determines that an impairment charge is required based on qualitative and quantitative information. As of December 31, 2021, the Company has no investments in non-consolidated affiliates. Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. If events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable, the Company compares the carrying amount of the asset group to future undiscounted net cash flows, excluding interest costs, expected to be generated by the asset group and their ultimate disposition. If the sum of the undiscounted cash flows is less than the carrying value, the impairment to be recognized is measured by the amount by which the carrying amount of the asset group exceeds the fair value of the asset group. Assets to be disposed of are reported at the lower of the carrying amount or fair value, less costs to sell. Income Taxes The Company uses the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized. ASC Topic 740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The Company has no material uncertain tax positions for any of the reporting periods presented. Profit (Loss) per Common Share Basic profit (loss) per share amounts have been calculated using the weighted-average number of common shares outstanding during each reporting period. Diluted loss per share has been calculated using the weighted-average number of common shares plus the potentially dilutive effect of securities such as outstanding options and warrants. The computation of potential common shares has been performed using the treasury stock method. The warrants and options are antidilutive for all periods presented. When net loss is reported, diluted and basic net loss per share amounts are the same as the impact of potential common shares is antidilutive. Fair Value Measurements The Company adopted the provisions of ASC Topic 820, “Fair Value Measurements and Disclosures”, which defines fair value as used in numerous accounting pronouncements, establishes a framework for measuring fair value and expands disclosure of fair value measurements. The estimated fair value of certain financial instruments, payables to related parties, and accounts payable and accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. ASC 820 defines fair value as the exchange price 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. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1 — quoted prices in active markets for identical assets or liabilities Level 2 — quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 — inputs that are unobservable (for example cash flow modeling inputs based on assumptions) At December 31, 2021, the Company did not identify any assets or liabilities that are required to be presented on the balance sheet at fair value in accordance with ASC 825-10. Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board or other standard setting bodies that may have an impact on the Company’s accounting and reporting. The Company believes that such recently issued accounting pronouncements and other authoritative guidance for which the effective date is in the future either will not have an impact on its accounting or reporting or that such impact will not be material to its financial position, results of operations, and cash flows when implemented. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 4 – PROPERTY AND EQUIPMENT SCHEDULE OF PROPERTY AND EQUIPMENT PROPERTY AND EQUIPMENT Life December 31, 2021 December 31, 2020 Building and Improvements 15 $ 9,370 $ 9,370 Machinery and Equipment 10 $ 617,578 $ 441,560 Furniture and Fixtures 5 $ 13,649 $ 15,184 Computer Equipment 3 $ 10,901 $ 13,056 Property and Equipment, Gross $ 651,497 $ 479,170 Less Accumulated Depreciation $ (273,852 ) $ (231,739 ) Property and Equipment $ 377,645 $ 247,431 Total depreciation expense was $ 52,692 40,124 |
PATENTS
PATENTS | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
PATENTS | NOTE 5 – PATENTS The Company has obtained one patent and has applied for six more patents on its technology, and has also applied for international patents. The Company has capitalized the legal and filing fees in the amount of $ 154,758 |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | NOTE 6 – DEBT Details of each debt, including those that have been paid off or renegotiated during 2021, are indicated below. Convertible Debentures Related Party On March 12, 2019, the Company entered into a convertible promissory note with Edmund J Burke for a total of $25,000. The note was due on March 12, 2021, and carried no interest. To the extent unpaid five years after September 18, 2019, it is discharged. At the option of the noteholder, the note is convertible into common stock at $0.025/share. On January 22, 2021, Edmund Burke elected to convert this Note into common stock. On March 12, 2019, the Company entered into a convertible promissory note with Chris Jemapete for a total of $25,000. The note had a maturity date of March 12, 2021, and carried no interest. To the extent unpaid five years after September 18, 2019, it would be discharged. At the option of the noteholder, the note was convertible into common stock at $0.025 per share. On August 5, 2020, Chris Jemapete elected to convert the note into common stock. Mr. Jemapete is a greater than 5% stockholder of the Company. On March 12, 2019, the Company entered into a convertible promissory note with AES Capital Partners, LP, for a total of $50,000. The note was due on March 12, 2021, and bore 15% interest. To the extent unpaid five years after September 18, 2019, it is discharged. At the option of the noteholder, the note is convertible into common stock at $0.025/share. Upon conversion, all interest shall be forgiven. On January 22, 2021, AES Capital Partners, LP, elected to convert this Note into common stock. Paycheck Protection Program SBA Loan In May 2020, the Company received a loan in the amount of $66,330 under the Payroll Protection Program (“PPP Loan”). The loan accrues interest at a rate of 1% and has an original maturity date of two years which can be extended to five years by mutual agreement of the Company and SBA. The PPP loan contains customary events of default relating to, among other things, payment defaults and breaches of representations and warranties. Under the terms of the loan, a portion or all of the loan is forgivable to the extent the loan proceeds are used to fund qualifying payroll, rent and utilities during a designated twenty-four week period. Payments are deferred until the SBA determines the amount to be forgiven. The Company has utilized the proceeds of the PPP loan in a manner which enabled qualification as a forgivable loan. On April 21, 2021, the Company received notice that the entire amount is forgiven. Notes Payable — Chapter 11 Settlement On July 18, 2018, the Company’s former Controller Dennis Lenaburg sued the Company for $2,694,577 dollars plus stock warrants in the Circuit Court of the 15 th Notes Payable – Related Parties In July 2016, the Company issued six (6) short-term notes payable to related parties in conjunction with the Company’s acquisition of the remaining 49 % of AMG Energy Group. These notes had a value of $2,002,126 and accrued interest at a rate of six percent (6 %) per annum. As of December 31, 2018, and December 31, 2017, the total interest accrued on the notes was $278,795 and $176,460 respectively. All of the notes were due on August 4, 2017 and then were in default. However, the notes were held by related parties with the understanding that the notes were not to be paid until the Company begins generating profit. The Company renegotiated some of these notes during its Chapter 11 proceedings, whereas others failed to submit a claim and were discharged upon the Court’s Confirmation Order approving the Company’s Chapter 11 Plan on September 18, 2019. The renegotiated amounts, as per the Plan Confirmation are all to be paid from 50% of the future net profits and discharged to the extent unpaid five years after the Plan effective date of September 18, 2019. On February 28, 2018, the Company entered into a short-term loan with Steven Sadaka, with a principal balance of $100,000 due and payable on May 1, 2018. The note does not accrue interest, however the Company provided 2,000,000 inducement shares to secure the note. These inducement shares were valued at $84,000 and are being amortized over the life of the note. The note’s maturity date was extended to 7/1/2018. If the note is not repaid at maturity, then an additional 5,000,000 shares of common stock will be due. The note was renegotiated during the Company’s Chapter 11 proceedings, and as per the Plan Confirmation, it is agreed that $100,000 is to be paid out of future gross revenues to satisfy this note in full, with no additional shares to be issued. On May 15, 2018, the Company entered into a short term loan with Christopher Jemapete, with a principal balance of $50,000 due and payable on May 16, 2019. The note carried an interest rate of 5% plus the company issued 1,250,000 inducement shares to secure the note as well as 1,000,000 warrants with a $0.10 strike price and with a 5-year expiration. These inducement shares were valued at $36,250 and are being amortized over the life of the note; the warrants had a value of $24,449. On August 25, 2018, this note was restructured to remove the warrants. As of June 30, 2018 accrued interest on this note is $315. The note was renegotiated during the Company’s Chapter 11 proceedings, and as per the Plan Confirmation, it is agreed that $50,315 is to be paid out of future gross revenues. On May 15, 2018, the Company entered into a short term loan with Pamela Jemapete, with a principal balance of $50,000 due and payable on May 16, 2019. The note carried an interest rate of 5% plus the company issued 1,250,000 inducement shares to secure the note as well as 1,000,000 warrants with a $0.10 strike price and with a 5-year expiration. These inducement shares were valued at $36,250 and are being amortized over the life of the note; the warrants had a value of $24,449. On August 25, 2018, this note was restructured to remove the warrants. As of June 30, 2018 accrued interest on this note is $315. The note was renegotiated during the Company’s Chapter 11 proceedings, and as per the Plan Confirmation, it is agreed that $50,315 is to be paid out of future gross revenues. Notes Payable – Other In July 2016, the Company issued a short-term note payable to a third party in conjunction with the Company’s acquisition of the remaining 49% of AMG Energy Group. The note had a principal balance of $96,570 and accrued interest at a rate of six percent (6%) per annum. As of December 31, 2018, and December 31, 2017, the total interest accrued on the note was $14,382 and $8,588 respectively. The note was due on August 4, 2017 and was then in default. The Company renegotiated this note during its Chapter 11 proceedings, and as per the Plan Confirmation, now the $96,570 is to be paid with no interest out of the same 50% of the future net profits of the Company as the notes mentioned above, if any, or discharged to the extent unpaid five years after September 18, 2019. In November 2017, the Company entered into a convertible debenture with Lucas Hoppel, with a principal balance of $143,000 due and payable on May 30, 2018. The note carries an 8% one-time interest charge, a $43,000 original issue discount and a 35% conversion discount to the lowest trade price in the prior twenty-five trading days, after 180 days, in whole or in part at the option of the holder. In addition, the Company provided 500,000 inducement shares to secure the note, and may have to provide additional shares on the note’s 6-month anniversary if the Company’s share price declines. These inducement shares were valued at $39,500 and were amortized over the life of the note. The note can be repaid, without prepayment penalties, within the first 90 days. Thereafter, the note will incur a 120% prepayment penalty of the then outstanding principal and interest due. In May 2018, the company made two principal payments totaling $40,000. The note went into default on June 1, 2018 and incurred a 40% penalty of the outstanding balance immediately prior to the default event. On August 30, 2018, Hoppel sued the Company in Superior Court of the State of California County of San Diego Central District. That case was staid on October 22, 2018 when the Company filed for Chapter 11 protection in the US Bankruptcy Court in the Southern District of Florida. Negotiations took place and a settlement was reached on this note and a subsequent note, and confirmed as part of the Plan Confirmation Order, that Hoppel would be paid a total of $100,000 out of 5% of the future gross revenue of the Company. In February 2018, the Company entered into a convertible debenture with Lucas Hoppel, with a principal balance of $165,000 due and payable on September 21, 2018. The note carries an 8% one-time interest charge, a $15,000 original issue discount and a 40% conversion discount to the lowest trade price in the prior twenty-five trading days, after 180 days, in whole or in part at the option of the holder. In addition, the Company provided 500,000 inducement shares to secure the note. These inducement shares were valued at $14,500, and were amortized over the life of the note. The note can be repaid, without prepayment penalties, within the first 90 days. Thereafter, the note will incur a 120% prepayment penalty of the then outstanding principal and interest due. The Note went into default on June 1, 2018, through a cross default provision with another Note to Hoppel, and incurred a 40% penalty of the outstanding balance immediately prior to the default event. On August 30, 2018, Hoppel sued the Company in Superior Court of the State of California County of San Diego Central District. That case was staid on October 22, 2018 when the Company filed for Chapter 11 protection in the US Bankruptcy Court in the Southern District of Florida. Negotiations took place and a settlement was reached on this note and a prior note, and confirmed as part of the Plan Confirmation Order, that Hoppel would be paid a total of $100,000 out of 5% of the future gross revenue of the Company to settle both notes. On March 27, 2019, the Company entered into an agreement with another creditor, such that its debt will be reduced from $32,000 to $20,000 payable out of future gross revenues, upon the bankruptcy court’s acceptance of the Company’s plan of reorganization. The Plan was confirmed by the Court on September 18, 2019. Convertible Debentures – Related Parties On November 8, 2018, the Company entered into a convertible promissory note with Edmund J Burke for a total of $175,000. There is no interest, and it is payable out of 20% of the net profits of Company. The note is convertible into common stock at $0.05/share. Upon conversion, Burke shall receive an additional 4,450,148 warrants at a strike price of $0.005/share that expire on November 8, 2023. In addition, 4,450,148 shares of Burke’s common stock were cancelled. On January 22, 2021, Edmund Burke elected to convert this Note into common stock. On November 8, 2018, the Company entered into a convertible promissory note with Steven Sadaka for a total of $24,000. There is no interest, and it is payable out of 2.5% of the net profits of Company. The note is convertible into common stock at $0.05/share. Upon conversion, Sadaka shall receive an additional 1,000,000 warrants at a strike price of $0.005/share that expire on November 8, 2023. In addition, 1,000,000 shares of Sadaka’s common stock were cancelled. On January 15, 2021, Steven Sadaka elected to convert this Note into common stock. On November 8, 2018, the Company entered into a convertible promissory note with Annie Bindler for a total of $2,500. There is no interest, and it is payable out of 0.5% of the net profits of Company. The note is convertible into common stock at $0.05/share. Upon conversion, Annie Bindler shall receive an additional 100,000 warrants at a strike price of $0.005/share that expire on November 8, 2023. In addition, 100,000 shares of Annie Bindler’s common stock were cancelled. On January 13, 2021, Annie Bindler elected to convert this Note into common stock. On November 8, 2018, the Company entered into a convertible promissory note with Zac Bindler for a total of $2,500. There is no interest, and it is payable out of 0.5% of the net profits of Company. The note is convertible into common stock at $0.05/share. Upon conversion, Zac Bindler shall receive an additional 100,000 warrants at a strike price of $0.005/share that expire on November 8, 2023. In addition, 100,000 shares of Zac Bindler’s common stock were cancelled. On January 13, 2021, Zac Bindler elected to convert this Note into common stock. A summary of all debts that remain of those indicated in the Notes above is as follows: SCHEDULE OF NOTES PAYABLE Notes Payable December 31, 2021 December 31, 2020 Short Term Chapter 11 Settlement $ 50,000 $ - Short Term Convertible Debentures Related Party $ - $ 75,000 Long Term Chapter 11 Settlement $ - $ 50,000 Long Term Paycheck Protection Program SBA loan $ - $ 66,330 Long Term Notes Payable from future revenue — Related Party $ 1,700,630 $ 1,700,630 Long Term Notes Payable from future revenue — Other $ 120,000 $ 120,000 Long Term Note Payable from future profits — Related Party $ 820,932 $ 820,932 Long Term Note Payable from future profits — Other $ 96,570 $ 96,570 Long Term Convertible Debentures — Related Party $ - $ 204,000 TOTAL NOTES $ 2,788,132 $ 3,133,462 Of the $2,788,132 due as of September 30, 2021, $2,738,132 is due out of future revenue or future profits. $2,417,502 of the $2,788,132 will be discharged if not paid by September 18, 2024, which is 5 years after the Company exited Chapter 11. The remaining debt that would not be discharged is $370,630, consisting of $200,630 due to related parties, $120,000 due to other, and a $50,000 Chapter 11 settlement. |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | NOTE 7 – STOCKHOLDERS’ EQUITY The total number of shares of capital stock, which the Company has authority to issue, is 1,010 0.001 10 0.001 274,003,883 no In the year ended December 31, 2021, the company issued an aggregate of 515,700 120,152 In the year ended December 31, 2021, the Company issued an aggregate of 1,166,667 72,090 In the year ended December 31, 2021, 13,455,008 9.7 1,302,817 In the year ended December 31, 2021, 350,000 12,900 In the year ended December 31, 2021, 400,000 337,896 In the year ended December 31, 2021, the Company issued 10,543,332 2,260,750 In the year ended December 31, 2021, $ 279,000 7,080,000 In the year ended December 31, 2021, the Company issued options under its Employee & Directors Stock Option Plan to purchase an aggregate of 27,030,000 five ten years 0.15 0.30 3,670,193 10,000 450,000 32,319 In the year ended December 31, 2020, the company issued an aggregate of 733,130 37,500 In the year ended December 31, 2020, 6,639,344 5.3 350,000 In the year ended December 31, 2020, 500,000 277,778 In the year ended December 31, 2020, the Company issued 13,558,462 887,380 In the year ended December 31, 2020, $ 25,000 1,000,000 In the year ended December 31, 2020, the Company issued options under its Employee & Directors Stock Option Plan to purchase an aggregate of 11,000,000 five ten years 0.042 0.10 876,291 10,550,000 Share-Based Awards Stock option activity under the 2021 ESOP for the year ending December 31, 2021, is as follows: SCHEDULE OF STOCK OPTION ACTIVITY Option Shares Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value ($0’s) Outstanding as of December 31, 2020 23,957,099 $ 0.09 8.64 $ 2,271,565 Awarded 27,030,000 $ 0.16 8.86 $ 4,341,500 Exercised 750,000 # $ 0.05 # - # $ 40,900 Expired 202,633 # $ 0.38 # - # $ 76,185 Outstanding as of December 31, 2021 50,034,466 $ 0.13 8.53 $ 6,495,981 Vested as of December 31, 2021 12,314,466 $ 0.09 7.35 $ 1,132,981 Outstanding as of December 31, 2019 5,807,099 $ 0.08 6.43 $ 445,815 Awarded 21,550,000 $ 0.10 9.17 $ 2,108,000 Exercised 500,000 $ 0.05 - $ 25,000 Expired 2,900,000 $ 0.09 - $ 257,250 Outstanding as of December 31, 2020 23,957,099 $ 0.09 8.64 $ 2,271,565 Vested as of December 31, 2020 12,707,099 $ 0.09 8.22 $ 1,186,565 Warrant activity for the year ending December 31, 2021, is as follows: Schedule of Warrant Activity Warrants Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value ($0’s) Outstanding as of December 31, 2020 48,640,723 $ 0.23 2.09 $ 11,178,470 Awarded or received from note conversions 8,960,146 $ 0.06 1.45 $ 524,750 Exercised 13,605,008 $ 0.10 - $ 1,390,317 Expired 15,423,900 $ 0.45 - $ 6,960,755 Outstanding as of December 31, 2021 28,571,961 $ 0.12 2.17 $ 3,352,149 Vested as of December 31, 2021 28,571,961 $ 0.12 2.17 $ 3,352,149 Outstanding as of December 31, 2019 42,002,390 $ 0.28 3.16 $ 11,693,720 Issued 19,533,333 $ 0.11 0.53 $ 2,180,000 Exercised 6,639,344 $ 0.05 - $ 350,000 Expired 6,255,656 $ 0.09 - $ 554,920 Outstanding as of December 31, 2020 48,640,723 $ 0.23 2.09 $ 11,178,470 Vested as of December 31, 2020 48,640,723 $ 0.23 2.09 $ 11,178,470 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 8 – INCOME TAXES The reconciliation of income tax benefit at the U.S. statutory rate of 21 Schedule of Reconciliation Between Statutory Tax Rate and Effective Tax Rate December 31, 2021 December 31, 2020 Statutory federal income tax rate -21 % -21 % State income tax, net of federal benefits -4.46 % -4.46 % Valuation Allowance 25.46 % 25.46 % Income tax provision (benefit) 0 % 0 % The provisional (benefit) for income tax is summarized as follows: Schedule of Income Tax Provision December 31, 2021 December 31, 2020 Federal Current - - Deferred $ (449,255 ) $ (458,037 ) State Current - Deferred $ (95,413 ) $ (97,278 ) Change in valuation allowance 544,668 555,315 Income tax provision (benefit) - - The tax effects of temporary differences that give rise to the Company’s net deferred tax liability as of December 31, 2021 and 2020 are as follows: Schedule of Tax Effects of Principal Temporary Differences That Give Rise to Deferred Tax Assets December 31, 2021 December 31, 2020 Years Ended December 31, 2021 December 31, 2020 Deferred tax asset Net operating loss carryovers $ 11,176,912 $ 10,632,244 Total deferred tax assets 11,176,912 10,632,244 Valuation Allowance (11,176,912 ) (10,632,244 ) Deferred tax asset, net of allowance $ - $ - As of December 31, 2021, and 2020, the Company had approximately $ 43,899,890 41,760,580 2033 Utilization of the NOLs may be subject to limitation under the Internal Revenue Code Section 382 should there be a greater than 50% ownership change as determined under regulations In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the assessment, management has established a full valuation allowance against the entire deferred tax asset relating to NOLs for every period because it is more likely than not that all of the deferred tax asset will not be realized. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a federal corporate tax rate decrease from 35 21 The Company files U.S. Federal and Florida tax returns that are subject to audit by tax authorities beginning with the year ended December 31, 2015. The Company’s policy is to classify assessments, if any, for tax and related interest and penalties as tax expense. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 9 - COMMITMENTS AND CONTINGENCIES Litigation The Company is subject, from time to time, to litigation, claims and suits arising in the ordinary course of business. On June 21, 2018, Power Up Lending Group Ltd., sued both the Company and four of its managers, ex-managers, and directors of the Company in the United States District Court for the Eastern District of New York. The case was dropped against the Company and the claim discharged by the bankruptcy court upon Plan Confirmation on September 18, 2019. Power Up has continued a tort case against the individuals. Our director and officer insurance has agreed to cover our chief executive officer Benjamin Slager, chief financial officer Anthony Santelli, as well as ex-controller Dennis Lenaburg, in this case. Management believes the Complaint is frivolous. The defendants have filed amended answers and counterclaims as of the date of this filing, and the case has gone into the discovery phase. Leases The Company consolidated its premises into one location on November 1, 2019, and currently leases office and laboratory space in Palm Beach Gardens, FL, that is classified as operating lease right-of-use (“ROU”) assets and operating lease liabilities in the Company’s consolidated balance sheet. ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date for leases exceeding 12 months. The lease period is for twenty-four (24) months from November 1, 2019, to October 31, 2021 This had been extended for one year until October 31, 2022 84,100 3 3,084 ASC 842 was effective for us beginning January 1, 2019. The adoption had a material impact on our consolidated balance sheets, but did not have a material impact on our consolidated income statements. The most significant impact was the recognition of ROU assets and lease liabilities for operating leases. Amortized lease expense for the years ending December 31, 2021, and 2020, were $ 71,915 78,825 The Company recognized the following related to leases in its Consolidated Balance Sheet: Schedule of Lease Consolidated Balance Sheet YEAR ENDED December 31, 2020 December 31, 2020 Right of Use Lease Liabilities Current portion 72,346 80,078 Long-term portion - 72,346 TOTAL 72,346 152,424 As of December 31, 2021, the total future minimum lease payments in respect of leased premises are as follows: Schedule of Future Minimum Lease Payments YEAR ENDED MINIMUM DUE 2022 72,346 2023 0 2024 0 TOTAL $ 72,346 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 10 – RELATED PARTY TRANSACTIONS Related Transactions The Company follows FASB ASC subtopic 850-10, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions. Pursuant to ASC 850-10-20, related parties include: a) affiliates of the Company; b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. 1) Short-term notes payable, convertible notes, and contingent liabilities issued to related parties are described in NOTE 5. 2) A board resolution was passed on February 13, 2020, that pledged the pending patents to secure the back pay claims of Ben Slager, CEO, Anthony Santelli, CFO, and Charles Sills, Director. This was done to ensure the continued involvement of management to build the Company while they continue to be owed back pay. The officers and directors for the Company are involved in other business activities and may, in the future, become involved in other business opportunities. If a specific business opportunity becomes available, such persons may face a conflict in selecting between the Company and their other business interest. The Company has not formulated a policy for the resolution of such conflicts. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 11 – SUBSEQUENT EVENTS The Company has evaluated subsequent events through the date the financial statements were available to be issued. Based on this evaluation, the Company has identified the following subsequent events: Subsequent to December 31, 2021, 250,000 Subsequent to December 31, 2021, 150,000 7,500 Subsequent to December 31, 2021, 2,500,000 Subsequent to December 31, 2021, 10,560,000 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements of the Company were prepared in accordance with generally accepted accounting principles in the U.S. (“U.S. GAAP”). |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries, after elimination of intercompany accounts and transactions. Investments in business entities in which the Company lacks control but has the ability to exercise significant influence over operating and financial policies are accounted for using the equity method. All material intercompany transactions and balances were eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the dates presented and reported amounts of revenues and expenses during the reporting periods presented. Significant estimates inherent in the preparation of the accompanying Consolidated Financial Statements include estimates of impairment assessment of intangible assets and valuation allowance for deferred tax assets. Estimates are based on past experience and other considerations reasonable under the circumstances. Actual results may differ from these estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents All highly liquid investments with maturities of three months or less at the date of purchase are considered to be cash equivalents. |
Stock Compensation | Stock Compensation The Company recognizes the cost of all share-based payments under the relevant authoritative accounting guidance. Share-based payments include any remuneration paid by the Company in shares of the Company’s common stock or financial instruments that grant the recipient the right to acquire shares of the Company’s common stock. For share-based payments to employees, which consist only of awards made under the stock option plan described below, the Company accounts for the payments in accordance with the provisions of ASC Topic 718, “Stock Compensation”. Share-based payments to consultants, service providers and other non-employees are accounted for in accordance with ASC Topic 718, ASC Topic 505, “Equity Payments to Non-Employees” or other applicable authoritative guidance. |
Stock-based Compensation Valuation Methodology | Stock-based Compensation Valuation Methodology Stock-based compensation resulting from the issuance of common stock is calculated by reference to the valuation of the stock on the date of issuance, the expense being recognized as the compensation is earned. Stock-based compensation expenses related to employee options and warrants granted to non-employees are recognized as the stock options and warrants are earned. The fair value of the stock options or warrants granted is estimated at the grant date, using the Black-Scholes option-pricing model, and the expense is recognized on a straight-line basis over the shorter of the period over which services are to be received or the life of the option or warrant. The grant date fair value of employee share options and similar instruments is estimated using the Black-Scholes option-pricing model on the basis of the fair value of the underlying common stock on the measurement date, adjusted for the unique characteristics of those equity instruments, using the assumptions noted in the table below. The fair value of the common stock is determined by the then-prevailing closing market price. Expected volatility was based on the historical volatility of the Company’s closing day market price per share. The expected term of options and warrants was based upon the life of the option, and the risk-free rate used was based on the U.S. Treasury Daily Yield Curve Rate. The stock compensation issued for services during the years ended December 31, 2021, and December 31, 2020, were valued on the date of issuance. The following assumptions were used in calculations of the Black-Scholes option pricing models for warrant-based stock compensation issued in the years ended December 31, 2021, and December 31, 2020: SCHEDULE OF BLACK-SCHOLES OPTION PRICING MODELS FOR WARRANT-BASED STOCK COMPENSATION 1/9/20 2/18/20 5/8/20 11/6/20 11/12/20 Risk-free interest rate 1.65 % 1.39 % 0.69 % 0.36 % 0.40 % Expected life 5 5 10 5 5 Expected dividends 0 % 0 % 0 % 0 % 0 % Expected volatility 229.32 % 228.60 % 226.42 % 212.00 % 213.22 % ALLM common stock fair value $ 0.058 $ 0.065 $ 0.083 $ 0.071 $ 0.080 1/5/21 5/18/21 9/13/21 9/30/21 12/13/21 Risk-free interest rate 0.96 % 1.64 % 1.33 % 0.98 % 1.42 % Expected life 10 5 10 5 10 Expected dividends 0 % 0 % 0 % 0 % 0 % Expected volatility 209.98 % 176.37 % 148.35 % 150.25 % 138.97 % ALLM common stock fair value $ 0.124 $ 0.300 $ 0.160 $ 0.255 $ 0.228 |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is provided for on a straight-line basis over the useful lives of the assets, generally 5 10 |
Patent Capitalization | Patent Capitalization If a product is currently under research and development and is not currently approved for market, costs incurred in connection with patent applications should generally be expensed in the income statement because there is uncertainty as to the future economic benefit of the asset. Conversely, if a product is approved for market (as is the case of the end product ethanol), or if future economic benefit is probable, or if an alternative future use is available to the Company, then such patent costs can be capitalized and amortized over the expected life of the patent(s). Since the Company’s primary end product is sugar converting to ethanol, which are in wide use, the Company has determined that it is reasonable to capitalize the patent costs associated with its CTS process. |
Research and Development | Research and Development The Company expenses all research and development costs as incurred. For the years ended December 31, 2021, and December 31, 2020, the amounts charged to research and development expenses were $ 1,103,436 763,159 |
Revenue Recognition | Revenue Recognition Effective January 1, 2018, the Company adopted ASC 606 — Revenue from Contracts with Customers. Under ASC 606, the Company recognizes revenue from the commercial sales of products by: (1) identify the contract (if any) with a customer; (2) identify the performance obligations in the contract (if any); (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract (if any); and (5) recognize revenue when each performance obligation is satisfied. Under ASC 606, revenue is recognized when the following criteria are met: 1. persuasive evidence of an arrangement exists; 2. product has been delivered or the services have been rendered to the customer; 3. the sales price is fixed or determinable; and, 4. collectability of the fee or sales price is reasonably assured. The Company currently has no customers. The Company’s revenues are expected to be derived principally from products sold through joint ventures and corporate owned plants. However, no sales have occurred through those revenue streams to date. The company will recognize revenue when title, ownership, and risk of loss pass to the customer, all of which occurs upon shipment or delivery of the product and is based on the applicable shipping terms. |
Convertible Instruments | Convertible Instruments The Company evaluates and accounts for conversion options embedded in convertible instruments in accordance with ASC 815 “Derivatives and Hedging Activities”. Applicable GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free-standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under other GAAP with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. The Company accounts for convertible instruments (when we have determined that the embedded conversion options should not be bifurcated from their host instruments) as follows: The Company records when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption. As of December 31, 2021, the Company has no convertible instruments. |
Accounting for Derivative Instruments | Accounting for Derivative Instruments The Company issues debentures where the number of shares into which a debenture can be converted is not fixed. For example, when a debenture converts at a discount to market based on the stock price on the date of conversion. In such instances, the embedded conversion option of the convertible debentures is bifurcated from the host contract and recorded at their fair value. In accounting for derivatives, the Company records a liability representing the estimated present value of the conversion feature considering the historic volatility of the Company’s stock, and a discount representing the imputed interest associated with the beneficial conversion feature. The discount is then amortized over the life of the debenture and the derivative liability is adjusted periodically according to stock price fluctuations. At the time of conversion, any remaining derivative liability is charged to additional paid-in capital. For purposes of determining derivative liability, the Company uses Black-Scholes modeling for computing historic volatility. As of December 31, 2021, the Company has no derivative instruments. |
Common Stock Purchase Warrants and Other Derivative Financial Instruments | Common Stock Purchase Warrants and Other Derivative Financial Instruments The Company classifies as equity any contracts that require physical settlement or net-share settlement or provide it with a choice of net-cash settlement or settlement in the Company’s own shares (physical settlement or net-share settlement) provided that such contracts are indexed to its own stock as defined in ASC 815-40 (“Contracts in Entity’s Own Equity”). The Company classifies as assets or liabilities any contracts that require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside the Company’s control) or give the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). The Company assesses the classification of its common stock purchase warrants and other free-standing derivatives at each reporting date to determine whether a change in classification between assets and liabilities is required. |
Investments in non-consolidated affiliates | Investments in non-consolidated affiliates Investments in non-consolidated affiliates are accounted for using the equity method or cost basis depending upon the level of ownership and/or the Company’s ability to exercise significant influence over the operating and financial policies of the investee. When the equity method is used, investments are recorded at original cost and adjusted periodically to recognize the Company’s proportionate share of the investees’ net income or losses after the date of investment. When net losses from an investment are accounted for under the equity method exceed its carrying amount, the investment balance is reduced to zero and additional losses are not provided for. The Company resumes accounting for the investment under the equity method if the entity subsequently reports net income and the Company’s share of that net income exceeds the share of net losses not recognized during the period the equity method was suspended. Investments are written down only when there is clear evidence that a decline in value that is other than temporary has occurred. The Company monitors its investment for impairment at least annually and makes appropriate reductions in the carrying value if it determines that an impairment charge is required based on qualitative and quantitative information. As of December 31, 2021, the Company has no investments in non-consolidated affiliates. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. If events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable, the Company compares the carrying amount of the asset group to future undiscounted net cash flows, excluding interest costs, expected to be generated by the asset group and their ultimate disposition. If the sum of the undiscounted cash flows is less than the carrying value, the impairment to be recognized is measured by the amount by which the carrying amount of the asset group exceeds the fair value of the asset group. Assets to be disposed of are reported at the lower of the carrying amount or fair value, less costs to sell. |
Income Taxes | Income Taxes The Company uses the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized. ASC Topic 740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The Company has no material uncertain tax positions for any of the reporting periods presented. |
Profit (Loss) per Common Share | Profit (Loss) per Common Share Basic profit (loss) per share amounts have been calculated using the weighted-average number of common shares outstanding during each reporting period. Diluted loss per share has been calculated using the weighted-average number of common shares plus the potentially dilutive effect of securities such as outstanding options and warrants. The computation of potential common shares has been performed using the treasury stock method. The warrants and options are antidilutive for all periods presented. When net loss is reported, diluted and basic net loss per share amounts are the same as the impact of potential common shares is antidilutive. |
Fair Value Measurements | Fair Value Measurements The Company adopted the provisions of ASC Topic 820, “Fair Value Measurements and Disclosures”, which defines fair value as used in numerous accounting pronouncements, establishes a framework for measuring fair value and expands disclosure of fair value measurements. The estimated fair value of certain financial instruments, payables to related parties, and accounts payable and accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. ASC 820 defines fair value as the exchange price 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. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1 — quoted prices in active markets for identical assets or liabilities Level 2 — quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 — inputs that are unobservable (for example cash flow modeling inputs based on assumptions) At December 31, 2021, the Company did not identify any assets or liabilities that are required to be presented on the balance sheet at fair value in accordance with ASC 825-10. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board or other standard setting bodies that may have an impact on the Company’s accounting and reporting. The Company believes that such recently issued accounting pronouncements and other authoritative guidance for which the effective date is in the future either will not have an impact on its accounting or reporting or that such impact will not be material to its financial position, results of operations, and cash flows when implemented. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SCHEDULE OF BLACK-SCHOLES OPTION PRICING MODELS FOR WARRANT-BASED STOCK COMPENSATION | The stock compensation issued for services during the years ended December 31, 2021, and December 31, 2020, were valued on the date of issuance. The following assumptions were used in calculations of the Black-Scholes option pricing models for warrant-based stock compensation issued in the years ended December 31, 2021, and December 31, 2020: SCHEDULE OF BLACK-SCHOLES OPTION PRICING MODELS FOR WARRANT-BASED STOCK COMPENSATION 1/9/20 2/18/20 5/8/20 11/6/20 11/12/20 Risk-free interest rate 1.65 % 1.39 % 0.69 % 0.36 % 0.40 % Expected life 5 5 10 5 5 Expected dividends 0 % 0 % 0 % 0 % 0 % Expected volatility 229.32 % 228.60 % 226.42 % 212.00 % 213.22 % ALLM common stock fair value $ 0.058 $ 0.065 $ 0.083 $ 0.071 $ 0.080 1/5/21 5/18/21 9/13/21 9/30/21 12/13/21 Risk-free interest rate 0.96 % 1.64 % 1.33 % 0.98 % 1.42 % Expected life 10 5 10 5 10 Expected dividends 0 % 0 % 0 % 0 % 0 % Expected volatility 209.98 % 176.37 % 148.35 % 150.25 % 138.97 % ALLM common stock fair value $ 0.124 $ 0.300 $ 0.160 $ 0.255 $ 0.228 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY AND EQUIPMENT | SCHEDULE OF PROPERTY AND EQUIPMENT PROPERTY AND EQUIPMENT Life December 31, 2021 December 31, 2020 Building and Improvements 15 $ 9,370 $ 9,370 Machinery and Equipment 10 $ 617,578 $ 441,560 Furniture and Fixtures 5 $ 13,649 $ 15,184 Computer Equipment 3 $ 10,901 $ 13,056 Property and Equipment, Gross $ 651,497 $ 479,170 Less Accumulated Depreciation $ (273,852 ) $ (231,739 ) Property and Equipment $ 377,645 $ 247,431 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF NOTES PAYABLE | A summary of all debts that remain of those indicated in the Notes above is as follows: SCHEDULE OF NOTES PAYABLE Notes Payable December 31, 2021 December 31, 2020 Short Term Chapter 11 Settlement $ 50,000 $ - Short Term Convertible Debentures Related Party $ - $ 75,000 Long Term Chapter 11 Settlement $ - $ 50,000 Long Term Paycheck Protection Program SBA loan $ - $ 66,330 Long Term Notes Payable from future revenue — Related Party $ 1,700,630 $ 1,700,630 Long Term Notes Payable from future revenue — Other $ 120,000 $ 120,000 Long Term Note Payable from future profits — Related Party $ 820,932 $ 820,932 Long Term Note Payable from future profits — Other $ 96,570 $ 96,570 Long Term Convertible Debentures — Related Party $ - $ 204,000 TOTAL NOTES $ 2,788,132 $ 3,133,462 |
STOCKHOLDERS_ EQUITY (Tables)
STOCKHOLDERS’ EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
SCHEDULE OF STOCK OPTION ACTIVITY | Stock option activity under the 2021 ESOP for the year ending December 31, 2021, is as follows: SCHEDULE OF STOCK OPTION ACTIVITY Option Shares Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value ($0’s) Outstanding as of December 31, 2020 23,957,099 $ 0.09 8.64 $ 2,271,565 Awarded 27,030,000 $ 0.16 8.86 $ 4,341,500 Exercised 750,000 # $ 0.05 # - # $ 40,900 Expired 202,633 # $ 0.38 # - # $ 76,185 Outstanding as of December 31, 2021 50,034,466 $ 0.13 8.53 $ 6,495,981 Vested as of December 31, 2021 12,314,466 $ 0.09 7.35 $ 1,132,981 Outstanding as of December 31, 2019 5,807,099 $ 0.08 6.43 $ 445,815 Awarded 21,550,000 $ 0.10 9.17 $ 2,108,000 Exercised 500,000 $ 0.05 - $ 25,000 Expired 2,900,000 $ 0.09 - $ 257,250 Outstanding as of December 31, 2020 23,957,099 $ 0.09 8.64 $ 2,271,565 Vested as of December 31, 2020 12,707,099 $ 0.09 8.22 $ 1,186,565 |
Schedule of Warrant Activity | Warrant activity for the year ending December 31, 2021, is as follows: Schedule of Warrant Activity Warrants Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value ($0’s) Outstanding as of December 31, 2020 48,640,723 $ 0.23 2.09 $ 11,178,470 Awarded or received from note conversions 8,960,146 $ 0.06 1.45 $ 524,750 Exercised 13,605,008 $ 0.10 - $ 1,390,317 Expired 15,423,900 $ 0.45 - $ 6,960,755 Outstanding as of December 31, 2021 28,571,961 $ 0.12 2.17 $ 3,352,149 Vested as of December 31, 2021 28,571,961 $ 0.12 2.17 $ 3,352,149 Outstanding as of December 31, 2019 42,002,390 $ 0.28 3.16 $ 11,693,720 Issued 19,533,333 $ 0.11 0.53 $ 2,180,000 Exercised 6,639,344 $ 0.05 - $ 350,000 Expired 6,255,656 $ 0.09 - $ 554,920 Outstanding as of December 31, 2020 48,640,723 $ 0.23 2.09 $ 11,178,470 Vested as of December 31, 2020 48,640,723 $ 0.23 2.09 $ 11,178,470 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Reconciliation Between Statutory Tax Rate and Effective Tax Rate | Schedule of Reconciliation Between Statutory Tax Rate and Effective Tax Rate December 31, 2021 December 31, 2020 Statutory federal income tax rate -21 % -21 % State income tax, net of federal benefits -4.46 % -4.46 % Valuation Allowance 25.46 % 25.46 % Income tax provision (benefit) 0 % 0 % |
Schedule of Income Tax Provision | The provisional (benefit) for income tax is summarized as follows: Schedule of Income Tax Provision December 31, 2021 December 31, 2020 Federal Current - - Deferred $ (449,255 ) $ (458,037 ) State Current - Deferred $ (95,413 ) $ (97,278 ) Change in valuation allowance 544,668 555,315 Income tax provision (benefit) - - |
Schedule of Tax Effects of Principal Temporary Differences That Give Rise to Deferred Tax Assets | The tax effects of temporary differences that give rise to the Company’s net deferred tax liability as of December 31, 2021 and 2020 are as follows: Schedule of Tax Effects of Principal Temporary Differences That Give Rise to Deferred Tax Assets December 31, 2021 December 31, 2020 Years Ended December 31, 2021 December 31, 2020 Deferred tax asset Net operating loss carryovers $ 11,176,912 $ 10,632,244 Total deferred tax assets 11,176,912 10,632,244 Valuation Allowance (11,176,912 ) (10,632,244 ) Deferred tax asset, net of allowance $ - $ - |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Lease Consolidated Balance Sheet | The Company recognized the following related to leases in its Consolidated Balance Sheet: Schedule of Lease Consolidated Balance Sheet YEAR ENDED December 31, 2020 December 31, 2020 Right of Use Lease Liabilities Current portion 72,346 80,078 Long-term portion - 72,346 TOTAL 72,346 152,424 |
Schedule of Future Minimum Lease Payments | As of December 31, 2021, the total future minimum lease payments in respect of leased premises are as follows: Schedule of Future Minimum Lease Payments YEAR ENDED MINIMUM DUE 2022 72,346 2023 0 2024 0 TOTAL $ 72,346 |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accumulated losses | $ 48,821,403 | $ 46,682,093 |
SCHEDULE OF BLACK-SCHOLES OPTIO
SCHEDULE OF BLACK-SCHOLES OPTION PRICING MODELS FOR WARRANT-BASED STOCK COMPENSATION (Details) - Warrant [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
01/09/2020 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 1.65% | |
Expected life | 5 years | |
Expected dividends | 0.00% | |
Expected volatility | 229.32% | |
ALLM common stock fair value | $ 0.058 | |
02/18/2020 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 1.39% | |
Expected life | 5 years | |
Expected dividends | 0.00% | |
Expected volatility | 228.60% | |
ALLM common stock fair value | $ 0.065 | |
05/08/2020 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 0.69% | |
Expected life | 10 years | |
Expected dividends | 0.00% | |
Expected volatility | 226.42% | |
ALLM common stock fair value | $ 0.083 | |
11/06/2020 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 0.36% | |
Expected life | 5 years | |
Expected dividends | 0.00% | |
Expected volatility | 212.00% | |
ALLM common stock fair value | $ 0.071 | |
11/12/2020 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 0.40% | |
Expected life | 5 years | |
Expected dividends | 0.00% | |
Expected volatility | 213.22% | |
ALLM common stock fair value | $ 0.080 | |
01/05/2021 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 0.96% | |
Expected life | 10 years | |
Expected dividends | 0.00% | |
Expected volatility | 209.98% | |
ALLM common stock fair value | $ 0.124 | |
05/18/2021 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 1.64% | |
Expected life | 5 years | |
Expected dividends | 0.00% | |
Expected volatility | 176.37% | |
ALLM common stock fair value | $ 0.300 | |
09/13/2021 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 1.33% | |
Expected life | 10 years | |
Expected dividends | 0.00% | |
Expected volatility | 148.35% | |
ALLM common stock fair value | $ 0.160 | |
09/30/2021 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 0.98% | |
Expected life | 5 years | |
Expected dividends | 0.00% | |
Expected volatility | 150.25% | |
ALLM common stock fair value | $ 0.255 | |
12/13/21 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 1.42% | |
Expected life | 10 years | |
Expected dividends | 0.00% | |
Expected volatility | 138.97% | |
ALLM common stock fair value | $ 0.228 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Research and development expenses | $ 1,103,436 | $ 763,159 |
Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life | 5 years | |
Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life | 10 years |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 651,497 | $ 479,170 |
Less Accumulated Depreciation | (273,852) | (231,739) |
Property and Equipment | 377,645 | 247,431 |
Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 9,370 | 9,370 |
Estimated Useful Lives | 15 years | |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 617,578 | 441,560 |
Estimated Useful Lives | 10 years | |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 13,649 | 15,184 |
Estimated Useful Lives | 5 years | |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 10,901 | $ 13,056 |
Estimated Useful Lives | 3 years |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 52,692 | $ 40,124 |
PATENTS (Details Narrative)
PATENTS (Details Narrative) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Finite-Lived Patents, Gross | $ 154,758 | $ 138,016 |
SCHEDULE OF NOTES PAYABLE (Deta
SCHEDULE OF NOTES PAYABLE (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Short Term Chapter 11 Settlement | $ 50,000 | |
Short Term Convertible Debentures Related Party | 75,000 | |
Long Term Chapter 11 Settlement | 50,000 | |
Long Term Paycheck Protection Program SBA loan | 66,330 | |
Long Term Notes Payable from future revenue — Related Party | 1,700,630 | 1,700,630 |
Long Term Notes Payable from future revenue — Other | 120,000 | 120,000 |
Long Term Note Payable from future profits — Related Party | 820,932 | 820,932 |
Long Term Note Payable from future profits — Other | 96,570 | 96,570 |
Long Term Convertible Debentures — Related Party | 204,000 | |
TOTAL NOTES | $ 2,788,132 | $ 3,133,462 |
SCHEDULE OF STOCK OPTION ACTIVI
SCHEDULE OF STOCK OPTION ACTIVITY (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option Shares Outstanding, Exercised | 350,000 | |
Option Shares Outstanding, Vested | 460,000 | 11,000,000 |
Equity Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option Shares Outstanding, Beginning balance | 23,957,099 | 5,807,099 |
Weighted Average Exercise Price, Beginning balance | $ 0.09 | $ 0.08 |
Weighted Average Remaining Contractual Term (years), Beginning balance | 8 years 7 months 20 days | 6 years 5 months 4 days |
Aggregate Intrinsic Value, Beginning balance | $ 2,271,565 | $ 445,815 |
Option Shares Outstanding, Awarded | 27,030,000 | 21,550,000 |
Weighted Average Exercise Price, Awarded | $ 0.16 | $ 0.10 |
Weighted Average Remaining Contractual Term (years), Awarded | 8 years 10 months 9 days | 9 years 2 months 1 day |
Aggregate Intrinsic Value, Awarded | $ 4,341,500 | $ 2,108,000 |
Option Shares Outstanding, Exercised | 750,000 | 500,000 |
Weighted Average Exercise Price, Exercised | $ 0.05 | $ 0.05 |
Aggregate Intrinsic Value, Exercised | $ 40,900 | $ 25,000 |
Option Shares Outstanding, Expired | 202,633 | 2,900,000 |
Weighted Average Exercise Price, Expired | $ 0.38 | $ 0.09 |
Aggregate Intrinsic Value, Expired | $ 76,185 | $ 257,250 |
Option Shares Outstanding, Ending balance | 50,034,466 | 23,957,099 |
Weighted Average Exercise Price, Ending balance | $ 0.13 | $ 0.09 |
Weighted Average Remaining Contractual Term (years), Vested | 8 years 6 months 10 days | 8 years 7 months 20 days |
Aggregate Intrinsic Value, Ending balance | $ 6,495,981 | $ 2,271,565 |
Option Shares Outstanding, Vested | 12,314,466 | 12,707,099 |
Weighted Average Exercise Price, Vested | $ 0.09 | $ 0.09 |
Weighted Average Remaining Contractual Term (years), Expired | 7 years 4 months 6 days | 8 years 2 months 19 days |
Aggregate Intrinsic Value, Vested | $ 1,132,981 | $ 1,186,565 |
Schedule of Warrant Activity (D
Schedule of Warrant Activity (Details) - Warrant [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Warrants Outstanding, Beginning balance | 48,640,723 | 42,002,390 |
Weighted Average Exercise Price, Beginning balance | $ 0.23 | $ 0.28 |
Weighted Average Remaining Contractual Term (years), Beginning balance | 2 years 1 month 2 days | 3 years 1 month 28 days |
Aggregate Intrinsic Value, Beginning balance | $ 11,178,470 | $ 11,693,720 |
Warrants Outstanding, Issued | 8,960,146 | 19,533,333 |
Weighted Average Exercise Price, Issued | $ 0.06 | $ 0.11 |
Weighted Average Remaining Contractual Term (years), Issued | 1 year 5 months 12 days | 6 months 10 days |
Aggregate Intrinsic Value, Issued | $ 524,750 | $ 2,180,000 |
Warrants Outstanding, Exercised | 13,605,008 | 6,639,344 |
Weighted Average Exercise Price, Exercised | $ 0.10 | $ 0.05 |
Aggregate Intrinsic Value, Exercised | $ 1,390,317 | $ 350,000 |
Warrants Outstanding, Expired | 15,423,900 | 6,255,656 |
Weighted Average Exercise Price, Expired | $ 0.45 | $ 0.09 |
Aggregate Intrinsic Value, Expired | $ 6,960,755 | $ 554,920 |
Warrants Outstanding, Ending balance | 28,571,961 | 48,640,723 |
Weighted Average Exercise Price, Ending balance | $ 0.12 | $ 0.23 |
Weighted Average Remaining Contractual Term (years), Ending balance | 2 years 2 months 1 day | 2 years 1 month 2 days |
Aggregate Intrinsic Value, Ending balance | $ 3,352,149 | $ 11,178,470 |
Warrants Outstanding, Vested | 28,571,961 | 48,640,723 |
Weighted Average Exercise Price, Vested | $ 0.12 | $ 0.23 |
Weighted Average Remaining Contractual Term (years), Vested | 2 years 2 months 1 day | 2 years 1 month 2 days |
Aggregate Intrinsic Value, Vested | $ 3,352,149 | $ 11,178,470 |
STOCKHOLDERS_ EQUITY (Details N
STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Capital units, authorized | 1,010,000,000 | ||
Common stock, par value | $ 0.001 | $ 0.001 | |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | |
Preferred stock, par value | $ 0.001 | $ 0.001 | |
Common stock, shares outstanding | 274,003,883 | 241,721,947 | |
Preferred Stock, Shares Issued | 0 | 0 | |
Preferred Stock, Shares Outstanding | 0 | 0 | |
Stock Issued During Period, Shares, Issued for Services, shares | 733,130 | ||
Stock Issued During Period, Value, Issued for Services | $ 120,152 | $ 37,500 | |
Warrants excerise price per share | $ 9.7 | $ 5.3 | |
Warrants exercised | $ 1,302,817 | $ 350,000 | |
Stock options were exercised using the cashless exercise, shares | 350,000 | ||
Stock options exercised | $ 12,900 | ||
stock options were exercised using the cashless exercise | |||
Stock Issued During Period, Shares, New Issues | 13,558,462 | ||
Stock Issued During Period, Value, New Issues | $ 887,380 | ||
Issuance of common stock in exchange for debt | $ 279,000 | $ 25,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 460,000 | 11,000,000 | |
Employee and directors stock option plan [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
share based payment award options | 27,030,000 | 11,000,000 | |
Value of share based payment award options | $ 3,670,193 | $ 876,291 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 10,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 450,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 32,319 | ||
Share based payment award options | 10,550,000 | ||
Employee and directors stock option plan [Member] | Minimum [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Vesting period | 5 years | 5 years | |
Exercised period | $ 0.15 | $ 0.042 | |
Employee and directors stock option plan [Member] | Maximum [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Vesting period | 10 years | 10 years | |
Exercised period | $ 0.30 | $ 0.10 | |
Common Stock [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Stock Issued During Period, Shares, Issued for Services, shares | 515,700 | 733,130 | |
Stock Issued During Period, Value, Issued for Services | $ 516 | $ 733 | |
Warrants exercised share, shares | 13,455,008 | 6,639,344 | |
Warrants exercised | $ 13,455 | $ 6,639 | |
Stock options were exercised using the cashless exercise, shares | 337,896 | 277,778 | |
Stock options exercised | $ 350 | ||
stock options were exercised using the cashless exercise | 338 | $ 278 | |
Issuance of common stock in exchange for debt | $ 7,080 | $ 1,000 | |
Issuance of common stock in exchange for debt, shares | 7,080,000 | 1,000,000 | |
Warrant [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Stock Issued During Period, Value, Issued for Services | $ 72,090 | ||
Stock issued during period shares warrants for services, shares | 1,166,667 | ||
Share based payment award options | 28,571,961 | 48,640,723 | 42,002,390 |
Cashless exercise [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Stock options were exercised using the cashless exercise, shares | 400,000 | 500,000 | |
stock options were exercised using the cashless exercise | $ 337,896 | ||
Stock options were exercised using the cashless exercise | 277,778 | ||
Private placements [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Stock Issued During Period, Shares, New Issues | 10,543,332 | ||
Stock Issued During Period, Value, New Issues | $ 2,260,750 |
Schedule of Reconciliation Betw
Schedule of Reconciliation Between Statutory Tax Rate and Effective Tax Rate (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Statutory federal income tax rate | (21.00%) | (21.00%) |
State income tax, net of federal benefits | (4.46%) | (4.46%) |
Valuation Allowance | 25.46% | 25.46% |
Income tax provision (benefit) | 0.00% | 0.00% |
Schedule of Income Tax Provisio
Schedule of Income Tax Provision (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Current | ||
Deferred | (449,255) | (458,037) |
Current | ||
Deferred | (95,413) | (97,278) |
Change in valuation allowance | (544,668) | (555,315) |
Income tax provision (benefit) |
Schedule of Tax Effects of Prin
Schedule of Tax Effects of Principal Temporary Differences That Give Rise to Deferred Tax Assets (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax asset | ||
Net operating loss carryovers | $ 11,176,912 | $ 10,632,244 |
Total deferred tax assets | 11,176,912 | 10,632,244 |
Valuation Allowance | (11,176,912) | (10,632,244) |
Deferred tax asset, net of allowance |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | Dec. 22, 2017 | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Loss Carryforwards [Line Items] | |||
Reconciliation of income tax benefit U.S.statutory rate | 21.00% | 21.00% | |
Operating loss carryovers, expiration date | 2033 | ||
Operating loss carryovers, limitations on use | Utilization of the NOLs may be subject to limitation under the Internal Revenue Code Section 382 should there be a greater than 50% ownership change as determined under regulations | ||
Maximum [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Reconciliation of income tax benefit U.S.statutory rate | 35.00% | ||
Minimum [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Reconciliation of income tax benefit U.S.statutory rate | 21.00% | ||
Domestic Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryovers | $ 43,899,890 | $ 41,760,580 |
Schedule of Lease Consolidated
Schedule of Lease Consolidated Balance Sheet (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Current portion | $ 72,346 | $ 80,078 |
Long-term portion | 72,346 | |
TOTAL | $ 72,346 | $ 152,424 |
Schedule of Future Minimum Leas
Schedule of Future Minimum Lease Payments (Details) | Dec. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2022 | $ 72,346 |
2023 | 0 |
2024 | 0 |
TOTAL | $ 72,346 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Lease description | The lease period is for twenty-four (24) months from November 1, 2019, to October 31, 2021 | |
Operating costs | $ 3,084 | |
Amortization Expense | $ 71,915 | $ 78,825 |
Office and Laboratory Space [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Lease extension period | This had been extended for one year until October 31, 2022 | |
Annual rent | $ 84,100 | |
Percentage of increase in rent per year | 3.00% |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | 2 Months Ended | 12 Months Ended | |
Feb. 15, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Subsequent Event [Line Items] | |||
Cashless exercise of stock options, shares | 350,000 | ||
Employee stock option value | |||
Vested options issued under employee director plan | 460,000 | 11,000,000 | |
Equity Option [Member] | |||
Subsequent Event [Line Items] | |||
Cashless exercise of stock options, shares | 750,000 | 500,000 | |
Vested options issued under employee director plan | 12,314,466 | 12,707,099 | |
Subsequent Event [Member] | Equity Option [Member] | |||
Subsequent Event [Line Items] | |||
Cashless exercise of stock options, shares | 150,000 | ||
Employee stock option value | $ 7,500 | ||
Stock options expired | 2,500,000 | ||
Vested options issued under employee director plan | 10,560,000 | ||
Subsequent Event [Member] | Warrant [Member] | |||
Subsequent Event [Line Items] | |||
Number of warrants expired | 250,000 |