Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Apr. 16, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | MyDx, Inc. | ||
Entity Central Index Key | 1,582,341 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Type | 10-K | ||
Trading Symbol | MYDX | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 8,514,779 | ||
Entity Common Stock, Shares Outstanding | 1,894,397,541 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash | $ 119,028 | $ 38,203 |
Accounts receivable, net | 27,851 | |
Inventory | 180,503 | 155,233 |
Prepaid expenses and other current assets | 821 | 79,965 |
Total current assets | 300,352 | 301,252 |
Property and equipment, net | 66,832 | 138,883 |
Other assets | 32,580 | 49,845 |
Total assets | 399,764 | 489,980 |
Current liabilities: | ||
Asset based loans | 120,460 | |
Accounts payable | 1,293,443 | 1,082,384 |
Customer deposits | 20,107 | 16,767 |
Accrued liabilities | 454,413 | 131,563 |
Current portion of leases payable | 2,756 | 3,480 |
Due to related party | 46,075 | 1,075 |
Convertible notes payable, current, net of debt discount | 295,750 | 233,147 |
Derivative liability | 2,596,005 | 1,812,441 |
Warrant liability | 247,203 | |
Total current liabilities | 4,708,549 | 3,648,520 |
Convertible note payable - related party | 200,000 | |
Customer deposits | 8,954 | |
Total liabilities | 4,717,503 | 3,848,520 |
Redeemable Series B Preferred stock, $0.001 par value; 10,000,000 shares authorized 296,700 and 300,000 shares issued and outstanding as of December 31, 2017 and 2016, respectively | 5,637,300 | 5,700,000 |
Commitments and contingencies | ||
Stockholders' deficit: | ||
Series A Preferred stock, $0.001 par value; 51 and 51 shares issued and outstanding as of December 31, 2017 and 2016, respectively | ||
Common stock, $0.001 par value, 10,000,000,000 shares authorized; 1,858,272,792 and 645,060,704 shares issued and outstanding as of December 31, 2017 and 2016, respectively | 1,859,397 | 645,061 |
Additional paid-in capital | 19,818,536 | 16,695,852 |
Accumulated deficit | (31,632,972) | (26,399,453) |
Total stockholders' deficit | (9,955,039) | (9,058,840) |
Total liabilities and stockholders' deficit | $ 399,764 | $ 489,980 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 10,000,000,000 | 10,000,000,000 |
Common stock, shares issued | 1,859,397,541 | 645,060,704 |
Common stock, shares outstanding | 1,859,397,541 | 645,060,704 |
Series A Preferred stock | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares issued | 51 | 51 |
Preferred stock, shares outstanding | 51 | 51 |
Redeemable Series B Preferred stock | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 296,700 | 300,000 |
Preferred stock, shares outstanding | 296,700 | 300,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Sales | ||
Product revenue | $ 398,401 | $ 651,418 |
Product service revenue | 13,384 | 18,758 |
Licensing revenue | 8,829 | 138,000 |
Total sales | 420,614 | 808,176 |
Cost of goods sold | ||
Product costs | 114,616 | 481,349 |
Total cost of sales | 114,616 | 481,349 |
Gross profit | 305,998 | 326,827 |
Operating Expenses | ||
Research and development | 170,385 | 686,095 |
Sales and marketing | 968,687 | 1,967,786 |
General and administrative | 1,589,485 | 1,888,155 |
Total operating expenses | 2,728,557 | 4,542,036 |
Loss from operations | (2,422,559) | (4,215,209) |
Other income (expense) | ||
Interest expense, net | (341,068) | (2,723,187) |
Change in fair value of derivative liability | (196,545) | (1,013,901) |
Derivative expense | (1,987,888) | (2,464,439) |
Gain (loss) on settlement of debt | 179,276 | (6,084,353) |
Gain on forfeiture of technology transfer deposit | 135,000 | |
Loss on extinguishment of debt | (599,735) | |
Income (loss) before provision for income taxes | (5,233,519) | (16,501,089) |
Provision for income taxes | 800 | |
Net income (loss) | (5,233,519) | (16,501,889) |
Dividends | (119,670) | |
Net loss attributable to common shareholders | $ (5,353,189) | $ (16,501,889) |
Income (loss) per share | ||
Basic and diluted | $ 0 | $ (0.19) |
Weighted average common shares outstanding - basic and diluted | 1,539,192,898 | 85,506,211 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Deficit - USD ($) | Total | Convertible Preferred Stock Series A | Common Stock | Additional Paid-in Capital | Accumulated Deficit |
Beginning Balance at Dec. 31, 2015 | $ (347,411) | $ 22,081 | $ 9,528,072 | $ (9,897,564) | |
Beginning Balance, Shares at Dec. 31, 2015 | 22,081,928 | ||||
Common stock issued upon conversion of convertible notes | 1,836,127 | $ 535,117 | 1,301,010 | ||
Common stock issued upon conversion of convertible notes, Shares | 535,116,594 | ||||
Derivative cease to exist upon conversion of notes | 4,321,381 | 4,321,381 | |||
Issuance of common stock for services rendered | 366,150 | $ 10,459 | 355,691 | ||
Issuance of common stock for services rendered, Shares | 10,459,000 | ||||
Common stock issued to settle vendor liabilities | 925,741 | $ 46,497 | 879,244 | ||
Common stock issued to settle vendor liabilities, Shares | 46,497,244 | ||||
Common and preferred stock issued to settle payroll liabilities | 108,790 | $ 30,907 | 77,883 | ||
Common and preferred stock issued to settle payroll liabilities, Shares | 51 | 30,905,938 | |||
Stock based compensation | 232,271 | 232,271 | |||
Net loss | (16,501,889) | (16,501,889) | |||
Ending Balance at Dec. 31, 2016 | (9,058,840) | $ 645,061 | 16,695,552 | (26,399,453) | |
Ending Balance, Shares at Dec. 31, 2016 | 51 | 645,060,704 | |||
Proceeds from the issuance of common stock | 245,500 | $ 50,000 | 195,500 | ||
Proceeds from the issuance of common stock, Shares | 50,000,000 | ||||
Conversion of series B preferred stock into common stock | 62,700 | $ 33,000 | 29,700 | ||
Conversion of series B preferred stock into common stock, Shares | 33,000,000 | ||||
Common stock issued upon conversion of convertible notes | 957,023 | $ 976,896 | (19,873) | ||
Common stock issued upon conversion of convertible notes, Shares | 976,896,487 | ||||
Derivative cease to exist upon conversion of notes | 1,845,677 | 1,845,677 | |||
Issuance of common stock for services rendered | 668,695 | $ 143,977 | 524,718 | ||
Issuance of common stock for services rendered, Shares | 143,977,273 | ||||
Common stock issued to settle vendor liabilities | 67,550 | $ 3,500 | 64,050 | ||
Common stock issued to settle vendor liabilities, Shares | 3,500,000 | ||||
Common issued to settle payroll liabilities | 16,105 | $ 6,963 | 9,142 | ||
Common issued to settle payroll liabilities, Shares | 6,963,077 | ||||
Stock based compensation | 473,770 | 473,770 | |||
Net loss | (5,233,519) | (5,233,519) | |||
Ending Balance at Dec. 31, 2017 | $ (9,955,039) | $ 1,859,397 | $ 19,818,536 | $ (31,632,972) | |
Ending Balance, Shares at Dec. 31, 2017 | 51 | 1,859,397,541 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (5,233,519) | $ (16,501,889) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 72,051 | 81,055 |
Impairment of assets | 13,126 | |
Common stock issued in exchange for services | 668,695 | 366,150 |
Change in fair value of derivative liability | 196,545 | 1,013,901 |
Derivative expense | 1,987,888 | 2,464,439 |
Loss on settlement of accrued payroll | 5,691,993 | |
Loss on settlement of debt | (179,276) | |
(Gain)/loss on settlement of vendor liabilities | 473,770 | 392,360 |
Stock based compensation | 599,735 | 232,271 |
Loss on extinguishment of debt | 599,735 | |
Bad debt expense | ||
Interest expense related to amortization of debt issuance costs and debt discount | 280,841 | 1,602,635 |
Changes in assets and liabilities: | ||
Accounts receivable | (17,149) | |
Inventory | (25,270) | 296,740 |
Prepaid expenses and other assets | 96,409 | 26,533 |
Accounts payable and accrued liabilities | 621,496 | 3,513,462 |
Customer deposits | 7,300 | |
Long term obligations | 12,294 | |
Current portion leases payable | (724) | (2,014) |
Net cash used in operating activities | (401,214) | (819,087) |
Cash flows from financing activities | ||
Proceeds from the issuance of common stock | 245,500 | |
Proceeds from note payable - related party loans | 165,000 | 160,000 |
Repayment of related party loans | (120,000) | (135,000) |
Proceeds from note payable, net of debt discount and issuance costs | 263,500 | |
Proceeds from the issuance of convertible notes payable, net of issuance costs | 48,500 | 521,622 |
Proceeds from issuance of asset based loans, net of issuance costs | 300,000 | |
Repayments on asset based loans | (120,461) | (133,012) |
Net cash provided by financing activities | 482,039 | 713,610 |
Net increase | 80,825 | (105,477) |
Cash, beginning of period | 38,203 | 143,680 |
Cash, end of period | 119,028 | 38,203 |
Supplemental cash flow information: | ||
Interest paid | 13,755 | 44,200 |
Taxes paid | ||
Supplemental disclosure of non-cash investing and financing activities: | ||
Conversion of debt | 908,828 | 1,836,127 |
Derivative cease to exist upon conversion of notes | 1,845,677 | 4,321,381 |
Convertible notes issues through extinguishment of debt | 465,295 | |
Debt discount recorded on convertible debt | $ 2,207,842 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2017 | |
Organization/Nature of Business [Abstract] | |
Organization | 1. Organization MyDx, Inc. (the “Company”, “we”, “us” or “our”) (formally known as Brista Corp.) was incorporated under the laws of the State of Nevada on December 20, 2012. The Company’s wholly owned subsidiary, CDx, Inc., was incorporated under the laws of the State of Delaware on September 16, 2013. |
Nature of Business
Nature of Business | 12 Months Ended |
Dec. 31, 2017 | |
Organization/Nature of Business [Abstract] | |
Nature of Business | 2. Nature of Business MyDx is a science and technology company that develops and deploys products and services in the following focus areas: 1) Consumer Products 2) Data Analytics 3) Biopharmaceuticals TM TM 4) Software as a Service (SaaS) We are committed to addressing areas of critical national need to promote public safety, transparency and regulation in the various markets we serve. The Company’s first product, MyDx ® ® |
Going Concern
Going Concern | 12 Months Ended |
Dec. 31, 2017 | |
Going Concern [Abstract] | |
Going Concern | 3. Going Concern The Company has adopted ASU No. 2014-15, “Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”) The Company’s consolidated financial statements have been prepared assuming it will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business. As reflected in the consolidated Financial Statements, the Company had an accumulated deficit at December 31, 2017, and a net loss for the year ended December 31, 2017. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The Company is attempting to further implement its business plan and generate sufficient revenues; however, its cash position may not be sufficient to support its daily operations. The Company has a limited operating history and its prospects are subject to risks, expenses and uncertainties frequently encountered by early-stage companies. These risks include, but are not limited to, the uncertainty of availability of financing and the uncertainty of achieving future profitability. Management anticipates that the Company will be dependent, for the near future, on investment capital to fund operating expenses. The Company intends to position itself so that it may be able to raise funds through the capital markets. There can be no assurance that such financing will be available at terms acceptable to the Company, if at all. Failure to generate sufficient cash flows from operations, raise capital or reduce certain discretionary spending could have a material adverse effect on the Company’s ability to achieve its intended business objectives. We reported negative cash flow from operations for the year ended December 31, 2017 and 2016. It is anticipated that we will continue to report negative operating cash flow in future periods, likely until one or more of our products generates sufficient revenue to cover our operating expenses. If any of the warrants are exercised, all net proceeds of the warrant exercise will be used for working capital to fund negative operating cash flow. Our cash balance of $119,028 at December 31, 2017 will not be sufficient to fund our operations for the next 12 months. Additionally, if we are unable to generate sufficient revenues to pay our expenses, we will need to raise additional funds to continue our operations. We have historically financed our operations through private equity and debt financings. We do not have any commitments for financing at this time, and financing may not be available to us on favorable terms, if at all. If we are unable to obtain debt or equity financing in amounts sufficient to fund our operations, if necessary, we will be forced to suspend or curtail our operations. In that event, current stockholders would likely experience a loss of most or all of their investment. Additional funding that we do obtain may be dilutive to the interests of existing stockholders. The consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 4. Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and include the accounts of the Company and its wholly owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of the consolidated finance statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Such management estimates include allowance for doubtful accounts, estimates of product returns, warranty expense, inventory valuation, valuation allowances of deferred taxes, stock-based compensation expenses and fair value of warrants and derivatives. The Company bases its estimates on historical experience and on assumptions that it believes are reasonable. The Company assesses these estimates on a regular basis; however, actual results could materially differ from those estimates. Concentration of Risk Related to Third-party Suppliers We depend on a limited number of third-party suppliers for the materials and components required to manufacture our products. A delay or interruption by our suppliers may harm our business, results of operations, and financial condition, and could also adversely affect our future profit margins. In addition, the lead time needed to establish a relationship with a new supplier can be lengthy, and we may experience delays in meeting demand in the event we must change or add new suppliers. Our dependence on our suppliers exposes us to numerous risks, including but not limited to the following: our suppliers may cease or reduce production or deliveries, raise prices, or renegotiate terms; we may be unable to locate a suitable replacement supplier on acceptable terms or on a timely basis, or at all; and delays caused by supply issues may harm our reputation, frustrate our customers, and cause them to turn to our competitors for future needs. Fair Value of Financial Instruments The Company recognizes and discloses the fair value of its assets and liabilities using a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). Each level of input has different levels of subjectivity and difficulty involved in determining fair value. Level 1 Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurable date. Level 2 Inputs, other than quoted prices included in Level 1, that are observable for the asset or liability through corroboration with market data at the measurement date. Level 3 Unobservable inputs that reflect management’s best estimate of what participants would use in pricing the asset or liability at the measurement date. The carrying amounts of the Company’s financial assets and liabilities, including cash, accounts receivable, accounts payable, and accrued liabilities approximate fair value because of the short maturity of these instruments. The carrying value of the Company’s loan payable and convertible notes payable approximates fair value based upon borrowing rates currently available to the Company for loans with similar terms. Business Segments ASC 280 defines operating segments as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performances. Currently, ASC 280 has no effect on the Company’s consolidated financial statements as substantially all of the Company’s operations are conducted in one industry segment. Cash The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. As of December 31, 2017 and 2016, the Company held no cash equivalents. The Company’s policy is to place its cash with high credit quality financial instruments and institutions and limit the amounts invested with any one financial institution or in any type of instrument. Deposits held with banks may exceed the amount of insurance provided on such deposits. The Company has not experienced any losses on its deposits of cash. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at the invoiced amount and are not interest bearing. The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The Company makes ongoing assumptions relating to the collectability of its accounts receivable in its calculation of the allowance for doubtful accounts. In determining the amount of the allowance, the Company makes judgments about the creditworthiness of customers based on ongoing credit evaluations and assesses current economic trends affecting its customers that might impact the level of credit losses in the future and result in different rates of bad debts than previously seen. The Company also considers its historical level of credit losses. As of December 31, 2017 and 2016, there was an allowance for doubtful accounts of $27,851 and $0 respectively. During the year ended December 31, 2017 the company recorded a bad debt expense of $27,851. Inventory Inventory is stated at the lower of cost or market value. Inventory is determined to be salable based on demand forecast within a specific time horizon, generally eighteen months or less. Inventory in excess of salable amounts and inventory which is considered obsolete based upon changes in existing technology is written off. At the point of recognition, a new lower cost basis for that inventory is established and subsequent changes in facts and circumstances do not result in the restoration or increase in that new cost basis. Property and Equipment Property and equipment are recorded at cost, less accumulated depreciation and amortization. Depreciation and amortization are provided using the straight-line method over the useful life as follows: Internal-use software 3 years Equipment 3 to 5 years Computer equipment 3 to 7 years Furniture and fixtures 5 to 7 years Leasehold improvements Shorter of life of asset or lease Accounting for Website Development Costs The Company capitalizes certain external and internal costs, including internal payroll costs, incurred in connection with the development of its website. These costs are capitalized beginning when the Company has entered the application development stage and cease when the project is substantially complete and is ready for its intended use. The website development costs are amortized using the straight-line method over the estimated useful life of three years. Impairment of Long-Lived Assets Long-lived assets, such as property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the balance sheets and reported at the lower of the carrying amount or fair value less costs to sell, and no longer depreciated. The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheets. Debt Discount and Debt Issuance Costs Debt discounts and debt issuance costs incurred in connection with the issuance of debt are capitalized and amortized to interest expense based on the related debt agreements using the straight-line method. Unamortized discounts are netted against long-term debt. Derivative Liability In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Paragraph 815-15-25-1 the conversion feature and certain other features are considered embedded derivative instruments, such as a conversion reset provision, a penalty provision and redemption option, which are to be recorded at their fair value as its fair value can be separated from the convertible note and its conversion is independent of the underlying note value. The Company records the resulting discount on debt related to the conversion features at initial transaction and amortizes the discount using the effective interest rate method over the life of the debt instruments. The conversion liability is then marked to market each reporting period with the resulting gains or losses shown in the statements of operations. In circumstances where the embedded conversion option in a convertible instrument is required to be bifurcated and there are also other embedded derivative instruments in the convertible instrument that are required to be bifurcated, the bifurcated derivative instruments are accounted for as a single, compound derivative instrument. The Company follows ASC Section 815-40-15 (“Section 815-40-15”) to determine whether an instrument (or an embedded feature) is indexed to the Company’s own stock. Section 815-40-15 provides that an entity should use a two-step approach to evaluate whether an equity-linked financial instrument (or embedded feature) is indexed to its own stock, including evaluating the instrument’s contingent exercise and settlement provisions. The adoption of Section 815-40-15 has affected the accounting for (i) certain freestanding warrants that contain exercise price adjustment features and (ii) convertible bonds issued by foreign subsidiaries with a strike price denominated in a foreign currency. The Company evaluates its convertible debt, options, warrants or other contracts, if any, to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for in accordance with paragraph 810-10-05-4 and Section 815-40-25 of the FASB Accounting Standards Codification. The result of this accounting treatment is that the fair value of the embedded derivative is marked-to-market each balance sheet date and recorded as either an asset or a liability. In the event that the fair value is recorded as a liability, the change in fair value is recorded in the consolidated statement of operations as other income or expense. Upon conversion, exercise or cancellation of a derivative instrument, the instrument is marked to fair value at the date of conversion, exercise or cancellation and then that the related fair value is reclassified to equity. The Company utilizes the binomial option pricing model to compute the fair value of the derivative and to mark to market the fair value of the derivative at each balance sheet date. The binomial option pricing model includes subjective input assumptions that can materially affect the fair value estimates. The expected volatility is estimated based on the most recent historical period of time equal to the remaining contractual term of the instrument granted. Income Taxes Income taxes are provided in accordance with ASC No. 740, “ Accounting for Income Taxes Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company is no longer subject to tax examinations by tax authorities for years prior to 2013. Product revenue The Company recognizes revenue when four revenue recognition criteria have been met: persuasive evidence of an arrangement exists; delivery has occurred, or services have been rendered; the seller’s price to the buyer is fixed or determinable; and collectability is reasonably assured. In accordance with ASC 605-20 revenue from multiple-element arrangements is allocated among separate elements based on their estimated sales prices, provided the elements have value on a stand-alone basis. Licensing revenue Revenue is generally recognized when: ● Evidence of an arrangement exists; ● Delivery has occurred; ● Fees are fixed or determinable; and ● Collection is considered probable. Some of the Company’s revenues are generated from software-as-a-service (“SaaS”) subscription offerings and related product support and maintenance. SaaS revenues stem mainly from annual subscriptions and are recorded evenly over the term of the subscription. Any customer payments received in advance are deferred until they are earned. Consulting and training revenues are recognized as work is performed. Product Returns For any product in its original, undamaged and unmarked condition, with its included accessories and packaging along with the original receipt (or gift receipt) within 30 days of the date the customer receives the product, the Company will exchange it or offer a refund based upon the original payment method. Customer Deposits The Company accounts for funds received from crowdfunding campaigns and pre-sales as a liability on the consolidated balance sheets as the investments made entitle the investor to apply these funds towards future shipments once the product has been developed and available for commercial use. Research and Development Costs Research and development costs are charged to expense as incurred. These costs consist primarily of salaries and direct payroll-related costs. It also includes purchased materials and services provided by independent contractors, software developed by other companies and incorporated into or used in the development of our final products. Research and development expenses for the year ended December 31, 2017 and 2016 were $170,385 and $686,095, respectively. Advertising Costs Advertising costs are charged to sales and marketing expenses and general and administrative expenses as incurred. Advertising expenses, which are recorded in sales and marketing and general and administrative expenses, totaled $968,687 and $98,219 for the year ended December 31, 2017 and 2016, respectively. Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC Topic 718, “ Compensation – Stock Compensation” The Company accounts for share-based payments to non-employees in accordance with ASC 505-50 “ Equity Based Payments to Non-Employees Warranty The Company provides a limited warranty for its analyzers and sensors for a period of 1 year from the date of shipment that such goods will be free from material defects in material and workmanship. The Company has assessed the historical claims and, to date, warranty claims have not been significant. The Company will continue to assess the need to record a warranty accrual at the time of sale going forward. Collaborative Arrangements The Company and its collaborative partners are active participants in the collaborative arrangements and both parties are exposed to significant risks and rewards depending on the commercial success of the activity. The Company records all expenses related to collaborative arrangements as research and development expense in the consolidated statements of operations as incurred. Net Loss per Share Basic net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net loss per common share is determined using the weighted-average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents. In periods when losses are reported, which is the case for the year ended December 31, 2017 and 2016 presented in these consolidated financial statements, the weighted-average number of common shares outstanding excludes common stock equivalents because their inclusion would be anti-dilutive. The Company had the following common stock equivalents at December 31, 2017 and 2016: December 31, 2017 December 31, 2016 Series A Preferred stock 51 51 Series B Preferred stock 2,967,000,000 3,000,000,000 Convertible notes payable 66,584,538 357,384,725 Convertible accounts payable 312,821,828 284,210,526 Options 1,496,250 1,490,026 Warrants 261,837,676 7,571,395 Totals 3,609,740,343 3,650,656,723 Subsequent events The Company has evaluated events that occurred subsequent to December 31, 2017 and through the date the financial statements were issued. Revised Prior Period Amounts Certain prior year amounts in the consolidated financial statements and the notes thereto have been reclassified where necessary to conform to the current year presentation. The Company identified and recorded an out-of-period adjustment related to redeemable series B preferred stock that should have been recorded in temporary equity during year ended December 31, 2016. The adjustment was reflected as a $5,699,700 increase in redeemable series B preferred stock and corresponding decrease in Additional paid-in capital. See Note 10. Recently Adopted Accounting Guidance In May 2014, the FASB issued a comprehensive new revenue recognition standard that will supersede nearly all existing revenue recognition guidance under U.S. GAAP. The standard’s core principle (issued as ASU 2014-09 by the FASB), is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The new guidance must be adopted using either a full retrospective approach for all periods presented in the period of adoption or a modified retrospective approach. In August 2015, the FASB issued ASU No. 2015-14, which defers the effective date of ASU 2014-09 by one year, and would allow entities the option to early adopt the new revenue standard as of the original effective date. This ASU is effective for public reporting companies for interim and annual periods beginning after December 15, 2016. The standard permits the use of either the retrospective or cumulative effect transition method. The adoption of ASU 2014-15 will not materially impact our consolidated financial position, results of operations or cash flows. In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” ASU 2014-15 provides guidance on management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued. The amendments in ASU 2014-15 are effective for annual reporting periods ending after December 15, 2016, and for annual and interim periods thereafter. Early adoption is permitted. The Company has elected to adopt the methodologies prescribed by ASU 2014-15. The adoption of ASU 2014-15 had no material effect on its financial position or results of operations. In March 2015, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. The amendments are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption of the amendments is permitted for financial statements that have not been previously issued. The amendments should be applied on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. Upon transition, an entity is required to comply with the applicable disclosures for a change in an accounting principle. These disclosures include the nature of and reason for the change in accounting principle, the transition method, a description of the prior-period information that has been retrospectively adjusted, and the effect of the change on the financial statement line items (i.e., debt issuance cost asset and the debt liability). The Company adopted ASU 2015-03 during the year ended December 31, 2016. The adoption of ASU 2015-03 had no material effect on its financial position or results of operations or cash flows. In July 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory”, which modifies existing requirements regarding measuring inventory at the lower of cost or market. Under current inventory standards, the market value requires consideration of replacement cost, net realizable value and net realizable value less an approximately normal profit margin. The new guidance replaces market with net realizable value defined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This eliminates the need to determine and consider replacement cost or net realizable value less an approximately normal profit margin when measuring inventory. The standard is required to be adopted for annual periods beginning after December 15, 2016, including interim periods within that annual period, which is our fiscal year 2018. The amendment is to be applied prospectively with early adoption permitted. The adoption of ASU 2015-11 will not have a material effect on its financial position or results of operations or cash flows. In April 2016, the FASB issued ASU No. 2016-09, “Compensation – Stock Compensation” (topic 718). The FASB issued this update to improve the accounting for employee share-based payments and affect all organizations that issue share-based payment awards to their employees. Several aspects of the accounting for share-based payment award transactions are simplified, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. The updated guidance is effective for annual periods beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption of the update is permitted. The adoption of ASU 2016-09 will not have a material effect on its financial position or results of operations or cash flows. In April 2016, the FASB issued ASU No. 2016-10, “ Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross verses Net)” In May 2016, the FASB issued ASU No. 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients”, which narrowly amended the revenue recognition guidance regarding collectability, noncash consideration, presentation of sales tax and transition and is effective during the same period as ASU 2014-09. The adoption of ASU 2016-12 won’t have a material effect on its financial position or results of operations or cash flows. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” Recent Accounting Guidance Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory”, In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230)” In May 2017, the FASB issued ASU 2017-09, “ Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting In July 2017, the FASB issued ASU 2017-11, “ Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480) and Derivatives and Hedging (Topic 815): I. Accounting for Certain Financial Instruments with Down Round Features; II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception Management does not believe that any recently issued, but not yet effective accounting pronouncements, when adopted, will have a material effect on the accompanying consolidated financial statements. |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2017 | |
Inventory [Abstract] | |
Inventory | 5. Inventory Inventory as of December 31, 2017 and 2016 is as follows: December 31, December 31, 2017 2016 Finished goods $ 49,889 $ 3,033 Raw materials 130,614 152,200 $ 180,503 $ 155,233 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2017 | |
Property and Equipment, Net [Abstract] | |
Property and Equipment, net | 6. Property and Equipment, net December 31, December 31, 2017 2016 Computer and test equipment $ 198,684 $ 198,684 Website development costs 39,870 39,870 Furniture and fixtures 26,948 26,948 Software 10,791 10,791 Leasehold improvements 18,288 18,288 294,581 294,581 Accumulated depreciation and amortization (227,749 ) (155,698 ) $ 66,832 $ 138,883 Depreciation expense was $72,051 and $80,469 for the year ended December 31, 2017 and 2016, respectively. For the year ended December 31, 2016 the Company recorded an impairment of assets totaling $13,127 for assets that the Company no longer uses. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Accrued Liabilities [Abstract] | |
Accrued Liabilities | 7. Accrued Liabilities Accrued liabilities consisted of the following as of December 31, 2017 and 2016. December 31, December 31, 2017 2016 Accrued compensation for employees $ 333,048 $ 71,351 Deferred compensation to non-employee 11,673 45,086 Accrued interest on notes payable 50,853 9,727 Other payables 58,839 5,399 $ 454,410 $ 131,563 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt [Abstract] | |
Debt | 8. Debt Asset Based Loans On September 16, 2016, CDx, Inc. (the Company’s wholly owned subsidiary) entered into a Business Loan Agreement (the “Agreement”) with WebBank providing for the granting of a security interest in properties, assets and rights (the “Collateral”) as defined in the agreement. CDx, Inc. received net proceeds of $150,000. There were no loan origination or administrative fees related to the funding. The agreement has a maturity date that is 432 days after the effective date of the Agreement and requires equal weekly payments of $599 which includes a total finance fee of $34,500 over the life of the Agreement. The Agreement is personally guaranteed by an officer and majority shareholder of the Company. The outstanding balance at December 31, 2017 and 2016 was $0 and $89,304 respectively. On May 31, 2016, CDx, Inc. (the Company’s wholly owned subsidiary) entered into a Promissory Note and Security Agreement (the “Note”) with Windset Capital Corporation, whereby CDx, Inc. gives, grants and assigns a continuing security interest in all of CDx, Inc.’s business equipment, accounts receivable, intellectual property, rights, licenses, claims, assets and properties of any kind whatsoever, whether now owned or hereafter acquired, real, personal, tangible, intangible or of any nature or value, wherever located, together with all proceeds including insurance proceeds as defined in the Note. There was an origination fee of $200 related to the financing. CDx, Inc. received net proceeds of $74,800 from the funding. The Note has a maturity date that is 252 business days from the date of the Note and requires payments of $360 each business day, as defined in the Note, which includes a total finance fee of $15,750 over the life of the Note. The Note is personally guaranteed by an officer and majority shareholder of the Company. The outstanding balance at December 31, 2017 and 2016 was $0 and $0 respectively. On May 31, 2016, CDx, Inc. (the Company’s wholly owned subsidiary) entered into a Future Receivables Sale Agreement (the “Agreement”) with Swift Financial Corporation granting a security interest, as defined in the Agreement, in CDx, Inc.’s present and future accounts, receivables, chattel paper, deposit accounts, personal property, goods, assets and fixtures, general intangibles, instruments, equipment and inventory. There was an origination fee of $1,875 related to the financing. CDx, Inc. received net proceeds of $73,125 from the funding. The Agreement requires 48 equal weekly payments of $1,842 resulting in total repayment of $88,425 which includes a finance fee of $13,425. The total repayment amount can be reduced to $85,425 solely in the event CDx, Inc. pays this amount on or before October 3, 2016. The Agreement is personally guaranteed by an officer and majority shareholder of the Company. The outstanding balance at December 31, 2017 and 2016 was $0 and $31,156 respectively. Convertible Notes December 31, December 31, 2017 2016 Convertible Note -May 24, 2016 $ - $ 21,900 Convertible Note -August 9, 2016 - 35,000 Convertible Note – October 5, 2016 - 363,768 Convertible Note -November 14, 2016 - 35,000 Convertible Note -November 29, 2016 - 63,260 Convertible Note - February 6, 2017 295,750 Less debt discount and debt issuance costs (13,950 ) (285,781 ) Total $ 281,800 $ 233,147 The Company amortized debt discount and debt issuance costs of $280,841 and $1,602,635 for the year ended December 31, 2017 and 2016 respectively. On December 22, 2015, the Company completed a financing pursuant to a Securities Purchase Agreement with Adar Bays, LLC (“Adar Bays”) providing for the issuance of two convertible promissory notes in the aggregate principal amount of $220,000, with the first note being in the amount of $110,000, and the second note being in the amount of $110,000 (the “Note” or “Notes”). The Notes contain a 10% original issue discount such that the purchase price of each Note is $100,000. The first Note was funded on December 22, 2015 and is due and payable on December 21, 2017. The second Note shall initially be paid for by the issuance of an offsetting $100,000 collateralized secured note issued by Adar Bays to the Company due and payable no later than August 21, 2016. The funding of the second Note is subject to certain conditions, and the Company may reject the closing of the second Note in its discretion. The Notes bear interest at the rate of 8% per annum and may be converted by Adar Bays at any time after the date which is nine months of the date of issuance into shares of Company common stock at a conversion price equal to 60% of the market price (as determined in the Notes) calculated at the time of conversion. The Company did not book a beneficial conversion feature in connection with the issuance of the Notes, as terms of the conversion are variable and the ultimate number of shares to be issued upon conversion could not be determined at the date the Notes were issued. As such, upon conversion of the Notes the number of shares will be determined and the Company will evaluate whether or not a beneficial conversion feature exists based on the conversion price compared to the price of the Company’s common stock at the date of issuance of the Notes. The Notes also contain certain representations, warranties, covenants and events of default, and increases in the amount of the principal and interest rates under the Notes in the event of such defaults. The Notes may be prepaid by the Company at any time prior to 180 days after the date of issuance of the Notes subject to the payment of prepayment penalties as described in the Notes. The foregoing is only a brief description of the material terms of the Securities Purchase Agreement and Notes, and does not purport to be a complete description of the rights and obligations of the parties thereunder, and such descriptions are qualified in their entirety by reference to the agreements which are filed as an exhibit to the Company’s Current Report on Form 8-K filed with the SEC on December 24, 2015. The issuance of the Notes was made in reliance on the exemption provided by Section 4(2) of the Securities Act for the offer and sale of securities not involving a public offering, and Regulation D promulgated under the Securities Act. The Company’s reliance upon Section 4(2) of the Securities Act in issuing the securities was based upon the following factors: (a) the issuance of the securities was an isolated private transaction by us which did not involve a public offering; (b) there was only one recipient; (c) there were no subsequent or contemporaneous public offerings of the securities by the Company; (d) the securities were not broken down into smaller denominations; (e) the negotiations for the issuance of the securities took place directly between the individual and the Company; and (f) the recipient of the Notes was an accredited investor. The Company recorded the original issue discount of $10,000 as debt issuance cost on its balance sheet which is netted against the face value of the Note and is being accreted over the term of the Note. For the year ended December 31, 2016, the Company amortized a total of $7,510 and $10,000, respectively, of the debt issuance cost. During the year ended December 31, 2016, the Note holder converted the Note and accrued unpaid interest into 7,142,526 share of the Company’s common stock. On June 22, 2016, MyDx, Inc. (the “Company”) and Adar Bays, LLC (“Adar Bays”) agreed to amend the Company’s 8% Convertible Promissory Note in the principal amount of $110,000 (the “Adar Bays Amendment”), issued pursuant to that certain Securities Purchase Agreement, dated December 21, 2015, entered into by and between the Company and Adar Bays, as previously disclosed in a report on Form 8-K filed with the U.S. Securities and Exchange Commission (the “SEC”) on December 24, 2015. Pursuant to the Adar Bays Amendment, the Company agreed to redeem the note by paying 140% of the principal amount plus accrued but unpaid interests to Adar Bays, for a total redemption amount of $158,424.44, pursuant to the payment schedule set forth in the Adar Bays Amendment. In addition, the Company paid 5% of the original principal amount to Adar Bays as consideration for entering into the amendment. Adar Bays agrees not to convert the note unless the Company defaults on the payment of the redemption amount and such default is not cured within fifteen (15) business days. If the Company defaults on the redemption payment and such default is not cured as mentioned above, then the amendment shall be deemed null and void and of no further force or effect. In such event, the allocated payment made by the Company shall be applied pursuant to the payment schedule set forth in the Adar Bays Amendment. On July 29, 2016, the Company and Adar Bays agreed to terminate the standstill portion of the Adar Bays Amendment pertaining to the standstill conversion rights and Adar Bays shall be free to convert the Note without any limitations, except as required by law. All other terms and conditions of the Note and the Adar Bays Amendment shall remain in full force and effect. On August 16, 2016, the Company executed a second note with Adar Bays in the amount of $27,500 as part of the original Securities Purchase Agreement completed on December 22, 2015. The Note contains a 10% original issue discount and a documentation fee of $1,000 such that the purchase price of the Note $23,750. The note matures on August 9, 2017. The Note bears interest at the rate of 8% per annum and may be converted by Adar Bays at any time after the date which is six months of the issuance date of the original note dated December 22, 2015 into shares of Company common stock at a conversion price equal to 60% of the market price (as determined in the Notes) calculated at the time of conversion. The Company did not book a beneficial conversion feature in connection with the issuance of the Notes, as terms of the conversion are variable and the ultimate number of shares to be issued upon conversion could not be determined at the date the Notes were issued. As such, upon conversion of the Notes the number of shares will be determined and the Company will evaluate whether or not a beneficial conversion feature exists based on the conversion price compared to the price of the Company’s common stock at the date of issuance of the Notes. The Notes also contain certain representations, warranties, covenants and events of default, and increases in the amount of the principal and interest rates under the Notes in the event of such defaults. The Note may not be prepaid by the Company. The foregoing is only a brief description of the material terms of the Securities Purchase Agreement and Notes, and does not purport to be a complete description of the rights and obligations of the parties thereunder, and such descriptions are qualified in their entirety by reference to the agreements which are filed as an exhibit to the Company’s Report on Form 8-K filed with the SEC on December 24, 2015. The issuance of the Note was made in reliance on the exemption provided by Section 4(2) of the Securities Act for the offer and sale of securities not involving a public offering, and Regulation D promulgated under the Securities Act. The Company’s reliance upon Section 4(2) of the Securities Act in issuing the securities was based upon the following factors: (a) the issuance of the securities was an isolated private transaction by us which did not involve a public offering; (b) there was only one recipient; (c) there were no subsequent or contemporaneous public offerings of the securities by the Company; (d) the securities were not broken down into smaller denominations; (e) the negotiations for the issuance of the securities took place directly between the individual and the Company; and (f) the recipient of the Notes was an accredited investor. The Company recorded the original issue discount of $2,750 as debt issuance cost on its balance sheet which is netted against the face value of the Note and is being accreted over the term of the Note. For the year ended December 31, 2016, the Company amortized a total of $2,750, of the debt issuance cost. During the year ended December 31, 2016, the Note holder elected to convert the Note and accrued and unpaid interest into 3,107,345 shares of the Company’s common stock. On September 19, 2016, the Company executed a third note with Adar Bays in the amount of $80,000 as part of the original Securities Purchase Agreement completed on December 22, 2015. The Note contains $5,000 of original issue discount and a documentation fee of $3,750 such that the purchase price of the Note $71,250. The Note matures on September 19, 2017. The Note bears interest at the rate of 8% per annum and may be converted by Adar Bays at any time after the date which is six months of the issuance date of the original note dated December 22, 2015 into shares of Company common stock at a conversion price equal to 60% of the market price (as determined in the Notes) calculated at the time of conversion. The Company did not book a beneficial conversion feature in connection with the issuance of the Notes, as terms of the conversion are variable and the ultimate number of shares to be issued upon conversion could not be determined at the date the Notes were issued. As such, upon conversion of the Notes the number of shares will be determined and the Company will evaluate whether or not a beneficial conversion feature exists based on the conversion price compared to the price of the Company’s common stock at the date of issuance of the Notes. The Notes also contain certain representations, warranties, covenants and events of default, and increases in the amount of the principal and interest rates under the Notes in the event of such defaults. The Notes may not be prepaid by the Company. The foregoing is only a brief description of the material terms of the Securities Purchase Agreement and Notes, and does not purport to be a complete description of the rights and obligations of the parties thereunder, and such descriptions are qualified in their entirety by reference to the agreements which are filed as an exhibit to the Company’s Report on Form 8-K filed with the SEC on December 24, 2015. The issuance of the Note was made in reliance on the exemption provided by Section 4(2) of the Securities Act for the offer and sale of securities not involving a public offering, and Regulation D promulgated under the Securities Act. The Company’s reliance upon Section 4(2) of the Securities Act in issuing the securities was based upon the following factors: (a) the issuance of the securities was an isolated private transaction by us which did not involve a public offering; (b) there was only one recipient; (c) there were no subsequent or contemporaneous public offerings of the securities by the Company; (d) the securities were not broken down into smaller denominations; (e) the negotiations for the issuance of the securities took place directly between the individual and the Company; and (f) the recipient of the Notes was an accredited investor. The Company recorded the original issue discount of $2,750 as debt issuance cost on its balance sheet which is netted against the face value of the Note and is being accreted over the term of the Note. For the year ended December 31, 2016, the Company amortized a total of $3,250, of the debt issuance cost. During the year ended December 31, 2016, the Note holder elected to convert a portion of the Note into 12,045,545 shares of the Company’s common stock. As of December 31, 2016, the Note had an outstanding balance of $0. The Company amortized the entire balance of the debt issuance cost since the Note was converted in the year ended December 31, 2016. On December 22, 2015, the Company completed a financing pursuant to a Securities Purchase Agreement with Union Capital, LLC (“Union Capital”) providing for the purchase of two convertible promissory notes in the aggregate principal amount of $220,000, with the first note being in the amount of $110,000, and the second note being in the amount of $110,000 (the “Note” or “Notes”). The Notes contain a 10% original issue discount such that the purchase price of each Note is $100,000. The first Note was funded on December 22, 2015 and is due and payable on December 21, 2017. The second Note shall initially be paid for by the issuance of an offsetting $100,000 collateralized secured note issued by Union Capital to the Company due and payable no later than August 21, 2016. The funding of the second Note is subject to certain conditions and the Company may reject the closing of the second Note in its discretion. The Notes bear interest at the rate of 8% per annum; are due and payable on December 21, 2017; and may be converted by Union Capital at any time after the date which is nine months of the date of issuance into shares of Company common stock at a conversion price equal to 60% of the market price (as determined in the Notes) calculated at the time of conversion. The Company did not book a beneficial conversion feature in connection with the issuance of the Notes, as terms of the conversion are variable and the ultimate number of shares to be issued upon conversion could not be determined at the date the Notes were issued. As such, upon conversion of the Notes the number of shares will be determined and the Company will evaluate whether or not a beneficial conversion feature exists based on the conversion price compared to the price of the Company’s common stock at the date of issuance of the Notes. The Notes also contain certain representations, warranties, covenants and events of default, and increases in the amount of the principal and interest rates under the Notes in the event of such defaults. The Notes may be prepaid by the Company at any time prior to 180 days after the date of issuance of the Notes subject to the payment of prepayment penalties as described in the Notes. The foregoing is only a brief description of the material terms of the Securities Purchase Agreement and Notes, and does not purport to be a complete description of the rights and obligations of the parties thereunder, and such descriptions are qualified in their entirety by reference to the agreements which are filed as an exhibit to the Company’s Current Report on Form 8-K filed with the SEC on December 24, 2015. The issuance of the Notes was made in reliance on the exemption provided by Section 4(2) of the Securities Act for the offer and sale of securities not involving a public offering, and Regulation D promulgated under the Securities Act. The Company’s reliance upon Section 4(2) of the Securities Act in issuing the securities was based upon the following factors: (a) the issuance of the securities was an isolated private transaction by us which did not involve a public offering; (b) there was only one recipient; (c) there were no subsequent or contemporaneous public offerings of the securities by the Company; (d) the securities were not broken down into smaller denominations; (e) the negotiations for the issuance of the securities took place directly between the individual and the Company; and (f) the recipient of the Notes was an accredited investor. The Company recorded the original issue discount of $10,000 as debt issuance cost on its balance sheet which is netted against the face value of the Note and will be accreted over the term of the Note. For the year ended December 31, 2016, the Company amortized a total of $9,863, of the debt issuance cost. As of December 31, 2016, the Note had outstanding balances of $0, and remaining unamortized debt discount of $0. During the year ended December 31, 2016, the Note holder elected to convert the Note and accrued interest of $104,500 into 7,107,376 share of the Company’s common stock. On June 22, 2016, the Company and Union Capital, LLC (“Union Capital”) agreed to amend the Company’s 8% Convertible Promissory Note in the principal amount of $110,000 (the “Union Capital Amendment”), issued pursuant to that certain Securities Purchase Agreement, dated December 21, 2015, entered into by and between the Company and Union Capital, as previously disclosed in a report on Form 8-K filed with the SEC on December 24, 2015. On July 29, 2016, the Company and Union Capital agreed to terminate the standstill portion of the Union Capital Amendment pertaining to the standstill conversion rights and Union capital shall be free to convert the Note without any limitations, except as required by law. All other terms and conditions of the Note and the Union Capital Amendment shall remain in full force and effect. Pursuant to the Union Capital Amendment, the Company agreed to redeem the note by paying 140% of the principal amount plus accrued but unpaid interests to Union Capital, for a total redemption amount of $158,363.84, pursuant to the payment schedule set forth in the Union Capital Amendment. In addition, the Company paid 5% of the original principal amount to Union Capital as consideration for entering into the amendment. Union Capital agreed not to convert the note unless the Company defaults on the payment of the redemption amount and such default is not cured within fifteen (15) business days. If the Company defaults on the redemption payment and such default is not cured as mentioned above, then the amendment shall be deemed null and void and of no further force or effect. In such event, the allocated payment made by the Company shall be applied pursuant to the payment schedule set forth in the Union Capital Amendment. During the year ended December 31, 2016, the Note holder elected to convert the Note and unpaid interest into 7,670,457 shares of the Company’s common stock. On September 19, 2016, the Company executed a second Note in the amount of $110,000 with Union Capital LLC as part of the financing pursuant to a Securities Purchase Agreement with Union Capital, LLC dated December 15, 2015. The Note contains a 10% original issue discount and a $5,000 documentation fee such that the purchase price of each Note is $95,000. The Note is due and payable not later than September 19, 2017. The Notes bear interest at the rate of 8% per annum; are due and payable on September 19, 2017; and may be converted by Union Capital at any time after the date which is nine months of the issuance date of the original note dated December 22, 2015 into shares of Company common stock at a conversion price equal to 60% of the market price (as determined in the Notes) calculated at the time of conversion. The Company did not book a beneficial conversion feature in connection with the issuance of the Notes, as terms of the conversion are variable and the ultimate number of shares to be issued upon conversion could not be determined at the date the Notes were issued. As such, upon conversion of the Notes the number of shares will be determined and the Company will evaluate whether or not a beneficial conversion feature exists based on the conversion price compared to the price of the Company’s common stock at the date of issuance of the Notes. The Notes also contain certain representations, warranties, covenants and events of default, and increases in the amount of the principal and interest rates under the Notes in the event of such defaults. The Notes may be prepaid by the Company at any time prior to 180 days after the date of issuance of the Notes subject to the payment of prepayment penalties as described in the Notes. The foregoing is only a brief description of the material terms of the Securities Purchase Agreement and Notes, and does not purport to be a complete description of the rights and obligations of the parties thereunder, and such descriptions are qualified in their entirety by reference to the agreements which are filed as an exhibit to the Company’s Report on Form 8-K filed with the SEC on December 24, 2015. The issuance of the Notes was made in reliance on the exemption provided by Section 4(2) of the Securities Act for the offer and sale of securities not involving a public offering, and Regulation D promulgated under the Securities Act. The Company’s reliance upon Section 4(2) of the Securities Act in issuing the securities was based upon the following factors: (a) the issuance of the securities was an isolated private transaction by us which did not involve a public offering; (b) there was only one recipient; (c) there were no subsequent or contemporaneous public offerings of the securities by the Company; (d) the securities were not broken down into smaller denominations; (e) the negotiations for the issuance of the securities took place directly between the individual and the Company; and (f) the recipient of the Notes was an accredited investor. The Company recorded the original issue discount of $10,000 as debt issuance cost on its balance sheet which is netted against the face value of the Note and will be accreted over the term of the Note. For the year ended December 31, 2016, the Company amortized a total of $10,000 of the debt issuance cost. During the year ended December 31, 2016, the Note holder elected to convert $63,500 of the Note into 16,487,510 shares of the Company’s common stock. As of December 31, 2016, the Note had an outstanding balance of $0 and remaining unamortized debt discount of $0. On December 10, 2015, the Company entered into a Securities Purchase Agreement (the “SPA”) and Convertible Promissory Note in the original principal amount of $60,000 (the “Note”) with Kodiak Capital Group, LLC (“Kodiak”) pursuant to which Kodiak funded $50,000 to the Company after the deduction of a $10,000 original issue discount. The Note bears interest at the rate of 12% and must be repaid on or before December 20, 2016. The Note may be prepaid by the Company at any time without penalty prior to the date which is 180 days after the date of issuance of the Note. The Note may be converted by Kodiak at any time after 180 days of the date of issuance into shares of Company common stock at a conversion price equal to 50% of the market price (as determined in the Note). The Company did not book a beneficial conversion feature in connection with the issuance of the Notes, as terms of the conversion are variable and the ultimate number of shares to be issued upon conversion could not be determined at the date the Notes were issued. As such, upon conversion of the Notes the number of shares will be determined and the Company will evaluate whether or not a beneficial conversion feature exists based on the conversion price compared to the price of the Company’s common stock at the date of issuance of the Notes. The SPA and Note also contain certain representations, warranties, covenants and events of default, and increases in the amount of the principal and interest rates under the Note in the event of such defaults. The foregoing is only a brief description of the material terms of the SPA and Note, and does not purport to be a complete description of the rights and obligations of the parties thereunder, and such descriptions are qualified in their entirety by reference to the agreements and their exhibits which are filed as an exhibit to the Company’s Current Report on Form 8-K filed with the SEC on December 16, 2015. The Company recorded the original issue discount of $10,000 as debt issuance cost on its balance sheet which is netted against the face value of the Note and will be accreted over the term of the Note. For the nine months ended December 31, 2016, the Company amortized a total of $9,426 of the debt issuance cost. The Note was redeemed on June 6, 2016. The issuance of the Note was made in reliance on the exemption provided by Section 4(2) of the Securities Act for the offer and sale of securities not involving a public offering, and Regulation D promulgated under the Securities Act. The Company’s reliance upon Section 4(2) of the Securities Act in issuing the securities was based upon the following factors: (a) the issuance of the securities was an isolated private transaction by us which did not involve a public offering; (b) there was only one recipient; (c) there were no subsequent or contemporaneous public offerings of the securities by the Company; (d) the securities were not broken down into smaller denominations; (e) the negotiations for the issuance of the securities took place directly between the individual and the Company; and (f) the recipient of the Note was an accredited investor. The EPA provides that the Company may, in its discretion, sell up to $1,000,000 of shares of Company common stock to Kodiak. The sale of shares of Company common stock is subject to the conditions set forth in the EPA, which include, but are not limited to, the Company filing a Registration Statement on Form S-1 to register the shares to be sold to Kodiak and the Registration Statement becoming effective. The purchase price to be paid for the shares will be 70% of the market price for such shares as determined pursuant to the terms set forth in the EPA. The RRA provides that the Company will file a Registration Statement to register up to 4,000,000 shares to be sold to Kodiak pursuant to the EPA, or issued to Kodiak upon conversion of the Note, and that the Company shall use commercially reasonable efforts to file the Registration Statement before March 31, 2016. Pursuant to the terms of the EPA, the Company agreed to issue Kodiak the Note as a commitment fee. The Note must be repaid on or before February 2, 2017. The Note may be prepaid by the Company at any time without penalty. The Note may be converted by Kodiak at any time after August 2, 2016 into shares of Company common stock at a conversion price equal to 50% of the market price (as determined in the Note). Any financing pursuant to the EPA is subject to the Company’s fulfilling the conditions to sell shares to Kodiak, including the effectiveness of the Registration Statement. The Company cannot provide any assurances that any shares will be sold under the EPA or the prices at which such shares may be sold. The EPA, RRA and Note also contain certain representations, warranties, covenants and events of default, and increases in the amount of the principal under the Note in the event of such defaults. The foregoing is only a brief description of the material terms of the EPA, RRA and Note, and does not purport to be a complete description of the rights and obligations of the parties thereunder, and such descriptions are qualified in their entirety by reference to the agreements and their exhibits which are filed as an exhibit to the Company’s Current Report on Form 8-K filed with the SEC on February 9, 2016. The Company recorded the original issue discount of $10,000 as debt issuance cost on its balance sheet which is netted against the face value of the Note and will be accreted over the term of the Note. For the year months ended December 31, 2016, the Company amortized a total of $10,000, of the debt issuance cost. As of December 31, 2016, the Note had an outstanding balance of $0. As of December 31, 2016, the Note had a remaining unamortized debt discount of $0. The issuance of the Note was made in reliance on the exemption provided by Section 4(2) of the Securities Act for the offer and sale of securities not involving a public offering, and Regulation D promulgated under the Securities Act. The Company’s reliance upon Section 4(2) of the Securities Act in issuing the securities was based upon the following factors: (a) the issuance of the securities was an isolated private transaction by us which did not involve a public offering; (b) there was only one recipient; (c) there were no subsequent or contemporaneous public offerings of the securities by the Company; (d) the securities were not broken down into smaller denominations; (e) the negotiations for the issuance of the securities took place directly between the individual and the Company; and (f) the recipient of the Note was an accredited investor. On February 8, 2016, the Company entered into an Equity Purchase Agreement (the “EPA”), Registration Rights Agreement (“RRA”) and Convertible Promissory Note in the original principal amount of $60,000 (the “Note”) with Kodiak Capital Group, LLC (“Kodiak”) pursuant to which Kodiak funded $50,000 to the Company after the deduction of a $10,000 original issue discount. The Note bears interest at the rate of 12% and must be repaid on or before February 7, 2017. The Note may be prepaid by the Company at any time without penalty prior to the date which is 180 days after the date |
Derivative Liabilities
Derivative Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Liabilities [Abstract] | |
Derivative Liabilities | 9. Derivative Liabilities The Company has identified derivative instruments arising from embedded conversion features in the Company’s convertible notes payable and accounts payable at December 31, 2017. The following summarizes the Black-Scholes assumptions used to estimate the fair value of the derivative liability and warrant liability at the date of issuance and for the convertible notes converted during the year ended December 31, 2017 and 2016. Low High Annual dividend rate 0 % 0 % Expected life 0.74 1.40 Risk-free interest rate 1.20 % 1.76 % Expected volatility 121.60 % 266.00 % Risk-free interest rate: The Company uses the risk-free interest rate of a U.S. Treasury Note with a similar term on the date of the grant. Dividend yield: The Company uses a 0% expected dividend yield as the Company has not paid dividends to date and does not anticipate declaring dividends in the near future. Volatility: The volatility was estimated using the historical volatilities of the Company’s common stock. Remaining term: The Company’s remaining term is based on the remaining contractual maturity of the convertible notes payable and accounts payable. The following are the changes in the derivative liabilities during the year ended December 31, 2017. Year Ended December 31, 2017 Level 1 Level 2 Level 3 Derivative liabilities as January 1, 2017 $ - $ - $ 1,812,441 Addition - - 3,519,922 Conversion - - (1,845,677 ) Settlement of debt - - (1,087,226 ) Loss on changes in fair value - - 196,545 Derivative liabilities as December 31, 2017 $ - $ - $ 2,596,005 The following are the changes in the warrant liability during the year ended December 31, 2017. Year Ended December 31, 2017 Level 1 Level 2 Level 3 Fair value as January 1, 2016 $ - $ - $ 247,203 Warrants issued - - (222,184 ) Gain on changes in fair value - - (25,019 ) Fair value as December 31, 2017 $ - $ - $ - |
Stockholders' Deficit
Stockholders' Deficit | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Deficit [Abstract] | |
Stockholders' Deficit | 10. Stockholders’ Deficit Reverse Capitalization Pursuant to the Merger Agreement, upon consummation of the Merger, each share of CDx’s capital stock issued and outstanding immediately prior to the Merger was converted into the right to receive one (1) share of Company common stock, par value $0.001 per share. Additionally, pursuant to the Merger Agreement, upon consummation of the Merger, the Company assumed all of CDx’s options and warrants issued and outstanding immediately prior to the Merger, 6,069,960 and 7,571,395 shares of common stock, respectively. Prior to and as a condition to the closing of the Merger, each then-current Company stockholder agreed to sell certain shares of common stock held by such holder to the Company and the then-current Company stockholders retained an aggregate of 1,990,637 shares of common stock. Settlement Agreement On December 23, 2016, the Company entered into a settlement and release agreement (the “Yazbeck Settlement”) with Daniel R. Yazbeck, the Chief Executive Officer and Director of the Company (“Yazbeck”), relating to certain bona fide, outstanding, and past-due liabilities of the Company in the aggregate principal amount of approximately $321,000 for certain unpaid base salary and bonus obligations that remained deferred and/or outstanding, due and owing to Yazbeck. Under the terms of the Yazbeck Settlement, Yazbeck agreed to forgo and release any claims against the Company under that certain Employment Agreement, by and between Yazbeck and the Company, dated October 15, 2014 (the “Employment Agreement”) in exchange for (1) the issuance of fifty-one (51) shares of the Company’s Series A Preferred Stock (defined below); (2) the issuance of three hundred thousand (300,000) shares of the Company’s Series B Preferred Stock (defined below); (3) a warrant for fifteen percent (15%) of the common shares of the Company issued and outstanding as of January 3, 2017, at an exercise price of $0.001 per share, with an expiration date of January 3, 2019; and (4) the issuance of thirty million (30,000,000) shares of the Company’s restricted common stock. Preferred Stock On September 30, 2016, the Company filed a Certificate of Amendment to Articles of Incorporation with the Secretary of State of the State of Nevada to authorize for issuance ten million (10,000,000) shares of blank check preferred stock, par value $0.001 (“Blank Check Preferred Stock”) as included on Form 8-K filed with the SEC on October 4, 2016. Series A Preferred Stock As of December 31, 2017, and 2016, the Company has designated 51 shares of Series A Preferred Stock par value $0.001 and 51 shares are issued and outstanding. The Series A Preferred Stock can convert into common stock at a 1:1 ratio. Each one (1) share of the Series A Preferred shall have voting rights equal to (x) 0.019607 multiplied by the total issued and outstanding shares of Common Stock eligible to vote at the time of the respective vote (the “Numerator”), divided by (y) 0.49, minus (z) the Numerator. For purposes of illustration only, if the total issued and outstanding shares of Common Stock eligible to vote at the time of the respective vote is 5,000,000, the voting rights of one share of the Series A Preferred Stock shall be equal to 102,036 (0.019607 x 5,000,000) / 0.49) – (0.019607 x 5,000,000) = 102,036). On December 23, the 51 shares were issued to Mr. Yazbeck, the Company’s sole officer and the sole member of the Board. Mr. Yazbeck, via his ownership of the 51 shares of the Series A Preferred, has control of the majority of the Company’s voting stock. During the year ended December 31, 2017 an investor converted 3,300 Series B Preferred stock in to 33,000,000 shares of common stock. Series B Preferred Stock The Series B Preferred is convertible into shares of Common Stock at a conversion price of $0.0001. Holders of the Series B Preferred are entitled to receive dividends annually equal to $0.10 for each share of Series B Preferred held. In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company, the holders of Series B Preferred then outstanding shall be entitled to be paid out of the assets of the Company available for distribution to its stockholders, before any payment shall be made to the holders of Common Stock. Until such time as there are fewer than 20,000 shares of Series B Preferred outstanding, the Company needs to obtain the majority votes of the holders of Series B Preferred with regard to certain actions. Holders of Series B Preferred shares are entitled to one vote for each share held, are entitled to elect up to two members to the Board, and, absent such election, are provided certain voting and veto rights with regard to any vote by the Board. Common Stock On September 30, 2016, the Company amended articles of incorporation to increase the number of authorized commons shares to 10,000,000,000 as included on Form 8-K filed with the SEC on October 4, 2016. During the year ended December 31, 2017, the Company issued 143,977,273 shares of common stock in exchange for services at a fair value of $668,695. During the year ended December 31, 2016, the Company issued 16,654,214 shares of common stock in exchange for services at a fair value of $378,345. On March 16, 2017, the Company entered into a securities purchase agreement (“SPA”) with TLG, Inc, and TRD, Inc. (“Investors”) pursuant to which the Company agreed to sell 25,000,000 restricted shares of the Company’s common stock, in an above market transaction at a purchase price of $0.004 per share for a total of $100,000. As part of the SPA, the Company granted the Investors the option, within the next 60 days, to purchase an additional 25,000,000 of restricted shares of the Company’s common stock at a purchase price of $0.006 per share for a total of $150,000. The shares of Common Stock issued pursuant to the Subscription Agreement have not been registered under the Securities Act of 1933, as amended (the “Securities Act”) and are “restricted securities” as that term is defined by Rule 144 promulgated under the Securities Act. Pursuant to the securities purchase agreement, the Investors agreed not to sell more than three hundred and seventy-five thousand shares per day (subject to adjustment for forward and reverse stock splits that occur after the date hereof) or more than seven million five hundred thousand shares per month (subject to adjustment for forward and reverse stock splits that occur after the date hereof) of the securities purchased pursuant to the SPA. On May 1, 2017, the Company entered into an amendment to the TLG, Inc SPA. The modification allowed TLG, Inc to purchase a total of 25,000,000 of restricted shares of the Company’s common stock at a purchase price of $0.006 per share for a total of $150,000. TLG exercised all of these options on May 2, 2017. Common Stock Warrants During the year ended December 31, 2017, the Company agreed to issue warrants to purchase 252,773,754 shares of common stock. During the year ended December 31, 2016, the Company did not issue any warrants to purchase shares of common stock. No common stock warrants have been exercised or have expired and warrants to purchase 260,345,149 shares of common stock were outstanding as of December 31, 2017. 2015 Equity Incentive Plan In connection with the Merger on April 30, 2015, the Company adopted the MyDx, Inc. 2015 Equity Incentive Plan (the “2015 Plan”), and to date, has reserved 6,200,000 shares of common stock for issuance under the 2015 Plan. Under the 2015 Plan, employees, directors or consultants may be granted nonstatutory stock options, stock appreciation rights, restricted stock and restricted stock units to purchase shares of MyDx’s common stock. Only employees are eligible to receive incentive stock options (“ISO”) to purchase common stock. Vesting and exercise provisions are determined by the Board of Directors at the time of grant. The options generally expire ten years from the date of grant. ISOs granted to a participant who, at the time the ISO is granted, has more than 10% of the voting power between all classes of stock, will expire five years from the date of grant. Options vest at various rates ranging from immediately to three years. As of December 31, 2017, options to purchase 1,496,250 shares were available under the 2015 Plan for issuance. 2017 Equity Incentive Plan The Company adopted the MyDx, Inc. 2017 Equity Incentive Plan (the “2017 Plan”), and to date, has reserved 150,000,000 shares of common stock for issuance under the 2017 Plan. Under the 2017 Plan, employees, directors or consultants may be granted nonstatutory stock options, stock appreciation rights, restricted stock and restricted stock units to purchase shares of MyDx’s common stock. Employees, non-employee directors and consultants are eligible to receive incentive stock options to purchase common stock. Vesting and exercise provisions are determined by the Board of Directors at the time of grant. A summary of the Company’s stock option plan for the year ended December 31, 2017 was as follows: Shares Weighted- Average Exercise Price Outstanding as of December 31, 2015 4,626,245 $ 0.39 Granted 125,000 $ 0.57 Exercised - - Forfeited or cancelled (3,254,995 ) $ 0.36 Outstanding as of December 31, 2016 1,496,250 $ 0.48 Granted - $ - Exercised - $ - Forfeited or cancelled - $ - Outstanding as of December 31, 2017 1,496,250 $ 0.27 Options exercisable as of December 31, 2017 1,457,500 $ 0.25 The aggregate intrinsic value of options exercised was $0 and $0 for the year ended December 31, 2017 and 2016, respectively. Information regarding options outstanding and exercisable as of December 31, 2017, is as follows: Options Outstanding Options Exercisable Exercise Number Average Weighted- Number Weighted- $ 0.08 900,000 3.86 $ 0.08 900,000 $ 0.08 $ 0.55 515,000 3.41 $ 0.55 482,500 $ 0.55 $ 0.57 81,250 3.99 $ 0.57 75,000 $ 0.57 1,496,250 3.8 $ 0.27 1,457,500 $ 0.27 Total unrecognized compensation expense from employee stock options as of December 31, 2017 was $1,525 and will be recognized over a weighted average recognition period of 0.70 years. Total stock-based compensation expense, both employee and non-employee, recognized by the Company for the year ended December 31, 2017 and 2016 was $11,909 and $378,597 respectively. No tax benefits were recognized in the year ended December 31, 2017 and 2016. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies Distribution and License Agreement and Joint Development Agreements The Company entered into a Distribution and License Agreement with a third-party for the purpose of developing a sensor array to be used in the Company’s product. The Distribution and License Agreement has an initial term of ten years, but can be terminated earlier if the project does not meet the specifications of the Company. The Company will obtain exclusive rights to sell and distribute once a successful sensor prototype is developed. In exchange for a functional prototype, the Company will pay the third-party a 7% royalty on net sales. During the year ended December 31, 2017 and 2016, the Company did not incur any development costs related to the Distribution and License Agreement. On November 1, 2013, the Company entered into a two-year Joint Development Agreement (the “Agreement”) with an unrelated third-party to develop chemical sensors and peripheral sensing equipment and software for the detection and characterization of cannabis and compounds associated with cannabis. The Agreement provides for, among other things, any arising intellectual property rights (as defined) outside of the field (as defined), and any arising intellectual property rights relating to improvements to detection materials shall belong to the Joint Venture Developer. The Agreement also provides that any arising intellectual property rights other than those covered above shall belong to the Company. To the extent that it is necessary to do so to enable the Company to use and exploit its respective arising intellectual property rights, the Joint Developer grants the Company a perpetual, irrevocable, exclusive, and royalty free license (including the right to assign the license and to grant sub-licenses) to use and exploit the Joint Developer’s arising intellectual property rights in the field. Under the terms of the Agreement, either party may cancel the Agreement as the specific tasks provided for in the Agreement have been completed or for causes specifically provided for in the Agreement. During the years ended December 31, 2015 and 2014, the Company paid the Joint Developer $200,000 and $227,500 for development costs, respectively. On May 19, 2015, the Company entered into an Exclusive Patent Sublicense Agreement (the “License Agreement”) with Next Dimension Technologies, Inc. (“NDT”). The License Agreement grants the Company a worldwide right to the patents licensed by NDT from the California Institute of Technology. The License Agreement grants both exclusive and non-exclusive patent rights. The license granted in the License Agreement permits the Company to make, have made, use, sell and offer for sale sublicensed products in the field of use. The License Agreement continues until the expiration, revocation, invalidation or enforceability of the rights licensed. The License Agreement provides for the payment of a license fee and royalty payments by CDx to NDT. The License Agreement also contains minimum royalty payments and milestone payments by CDx to NDT. NDT has a right to terminate the License Agreement in the event of an uncured breach by CDx; the insolvency or bankruptcy of CDx; or if CDx does not meet certain productivity milestones. The License Agreement also contains representations, warranties and indemnity obligations for each of CDx and NDT. In connection with the License Agreement, on May 19, 2015, CDx and NDT also executed an Amended Amendment No. 4 (the “Amended Amendment No. 4”) to the Joint Development Agreement, dated as of November 1, 2013, between CDx and NDT, which extended the date of negotiation for the License Agreement through May 19, 2015. On February 8, 2017, MyDx, Inc. entered into an option agreement (the “Option Agreement’) with the Torque Research & Development, Inc. (“TRD”). The Option Agreement provides MyDx with the exclusive right to license two patent pending inventions (the “TRD Inventions”), and requires MyDx to make annual payments to TRD as well as royalty payments on any products that are commercialized which are based on the TRD Inventions. MyDx’s rights under the Option Agreement require customary measures of performance on the part of MyDx in terms of patent cost maintenance and other payments of costs associated with the TRD Inventions. With respect to the Option Agreement, MyDx rights are broad in terms of the potential access MyDx has to use the TRD Inventions in products, and services and many of the key economic terms of a future license, should MyDx exercise its rights under the Option Agreement, are agreed to in the Option Agreement. In addition to the Option Agreement with the TRD, on February 8, 2017, MyDx has entered into a research and development agreement (the “RD Agreement”) with TRD for the Project titled “Manufacturable, Medical Grade Smart Vape Devices and Related Medical Software Applications for Prescribers, Administrators and Patient Applications.” The RD Agreement allows MyDx to fund research based on the TRD Inventions with a three year budget of $280,371 and a deferred payment of $75,000 within ninety days of the Effective Date. The RD Agreement provides MyDx with an exclusive right to license all technology that is discovered from the monies funded to TRD through the RD Agreement (the “Derivative IP”). To the extent that MyDx exercises its rights under the RD Agreement, MyDx will be required to make customary annual payments to TRD, who shall be the owners of any Derivative IP, as well as royalty payments as any commercialization of such Derivative IP occurs. TRD may elect to accept payment in whole or in part in cash or the companies restricted common stock priced at the Effective Date. MyDx is currently in default on its payment obligations to Torque. License and Distribution Agreement On September 1, 2016, MyDx, Inc. (the “Company” or “Licensor”) entered into a Distribution and License Agreement (the “License Agreement”) with Powerfull Holdings, Ltd, a company operating under the charter of the People’s Republic of China (“Assignor”) and China Science and Technology, a Powerfull Holdings affiliated Company (“Licensee”), (together the “Parties”). The Parties intend there to be two phases of the License Agreement: Phase One and Phase Two. During Phase One, the Licensor shall provide test samples and validation data for market validation. Subject to Phase One producing satisfactory results, and proof of concept, the Parties will commence Phase Two. For Phase One, the Licensee will pay the Licensor a minimum of Forty-Five Thousand Dollars ($45,000.00) as a Licensing and Technology Transfer Fee (the “Transfer Fee”) per application (AquaDx™, OrganaDx™, AeroDx™). These fees shall be credited towards Phase Two’s mandatory minimum payments. The Licensee shall pay the Transfer Fee within 10 business days of being provided with an invoice by the Licensor. However, should the Parties determine that the results of the activities of Phase One were not satisfactory to both parties, this Agreement shall terminate pursuant to Section 7.2(b). In connection with the agreement referenced above, the licensor and licensee are currently still operating under Phase I and the company has not yet received adequate information to enter Phase II. MyDx has not yet received and has requested market feasibility, regulatory and other studies from Licensee as contemplated under the agreement and has requested the results of their Phase I findings to be delivered to Company on or before April 21, 2017. To the extent MyDx management is unable to receive satisfactory results and confirm proof of concept, MyDx has notified Licensee it will be difficult to continue under the current agreement and the parties are permitted to terminate for cause and defectiveness in the event the products do not pass tests for quality, reliability, efficacy, and marketability or if at the completion of Phase I, the results were not satisfactory and the concept was not proven. Effective as of April 21, 2017, the Company terminated its Distribution and License Agreement (the “License Agreement”) with China Science and Technology (“Licensee”) entered into in September 2016. The Company terminated the License Agreement due to the Company not receiving confirmation of proof of concept from the Licensee for deployment of the Company’s products in China. The Company recognized $135,000 as a gain on forfeiture of technology transfer deposit. On June 12, 2017, MyDx, Inc. (the “Company” or “Licensor”) entered into a license and services agreement (the “License Agreement”) with Black Swan, LLC (the “Licensee”). The Licensor agrees to grant to the Licensee the Access License which shall consist of: (a) access to the Database to enable Licensee to engage in formulation queries regarding the effects of having different amounts of terpene or other chemicals in cannabis strains; (b) access to the Database’s chemical profile library and related definitions; (c) access to a list with the contact information and fee schedule of cannabis extractors with state licenses so that Licensee can submit the formulation query results to such licensed cannabis extractors. Such licensed extractor list may change and Licensor shall have no obligation to provide Licensee with an updated list; and (d) access to the CannaDxTM mobile application to track feedback and reviews by up to 20,000 users of Licensee’s products. The Licensor will provide the Product Services which shall consist of: (1) Licensor providing annual MyDx360 SAAS Premium Subscription at a cost of $15,000 per annum (2) Licensor providing 6,000 Cartridges every six months to the Licensee at a cost of $2.49 per Cartridge ($14,940 in total every six months). It shall be a requirement of this Agreement that Licensee order 6,000 Cartridges from Licensor every six months; (3) Licensor providing 1,000 Eco Smart Pens to the Licensee, when available, over the three-year term of this Agreement at a cost of $25 per Eco Smart Pen ($25,000 in total); and (4) Licensor providing 6,000 batteries to the Licensee over the three-year term of this Agreement at a cost of $3.99 per battery ($23,940 in total). The term of this Agreement shall be three (3) years. Licensor shall have the right, in its sole discretion, to terminate this Agreement if Licensee does not order and pay for at least 6,000 Cartridges every six months at a cost of $2.49 per Cartridge ($14,940 in total every six months). Marketing and Advertising Advisory Services Agreement On April 5, 2016, the Company entered into a Marketing and Advertising Advisory Services Agreement (the “Agreement”) with Growth Point Advisors, Ltd. (“Growth Point”) for Growth Point to provide a comprehensive marketing, advertising and branding campaign for the Greater China Region on behalf of the Company’s MyDx AquaDx sensor. The campaign shall include, but not be limited to, the development of both the front and back-end of an e-commerce web site targeting the Chinese audience as well as introductions to potential key personnel to launch and manage the campaign. In consideration for the services described above, the Company shall pay Growth Point a monthly service fee of $30,000. Should the Company fail to pay the monthly service fee, Growth Point shall have the right to convert the monthly service fee into the Company’s common stock at a 50% discount of the lowest closing price of the Company’s common stock for the 15 trading days upon send notice of non-payment to the Company. On May 16, 2017, the Company terminated its Marketing and Advertising Advisory Services Agreement with Growth Point Advisors, Ltd. (“Growth Point”) entered into in April 2016. Growth Point had been expected to provide a comprehensive marketing, advertising and branding campaign for the Greater China Region on behalf of the Company’s MyDx AquaDx sensor. Growth Point failed to satisfy the agreed upon deliverables as stated in the agreement. As of the date of this filing the Company has not received communication from Growth Point. On February 17, 2017 MyDx and Libre Design, LLC (“LDL”) entered into a twelve (12) month Research, Branding, Advertising and Marketing Services Agreement (“Agency Agreement”). The Company agreed to pay deferred cash compensation as follows of three thousand dollars ($3,000) upon execution and one thousand five hundred dollars ($1,500) per month for a subsequent eleven (11) payments thereafter on or before the first (1st) of each month. In addition, Agency is entitled to receive sixty seven million shares of restricted common stock at a closing market price equal to $0.0011. On March 1 and 15th, 2017, MyDx, Inc. received a payment demand for the initial and subsequent payment of $50,000 and $25,000 per month respectively, exclusive of costs and other fees, due and owing under the BCI Advisors, LLC (“BCI”) advisory services agreement (the “Advisory Services Agreement”). The Company elected in lieu of cash to pay in unrestricted common stock, registered in form S-8. The Company made an initial payment of seventy five million shares in partial satisfaction of the amount due and owing that does not exceed the Company’s obligations under the Advisory Services Agreement to restrict BCI’s beneficial ownership to 4.99%. This summary contains only a brief description of the material terms of the Advisory Services Agreement and does not purport to be a complete description of the rights and obligations of the parties thereunder, and such description is qualified in its entirety by reference to the Advisory Services Agreement. A copy of the Advisory Services Agreement was filed in a Current Report on Form 8-K. On November 3, 2017 the Company and Phylos Bioscience, Inc. (“Phylos”) entered into a License, Co-Marketing, and Data Sharing Agreement (the “Phylos Agreement”). Pursuant to the Phylos Agreement, the Company and Phylos each granted a non-exclusive license to the other party to access their data and use their trademarks and logo on marketing materials. Neither party paid cash or issued shares in connection with the Phylos Agreement. The license was the consideration given by each party. The term of the agreement is five (5) years. Resale Licensing Agreement On October 4, 2016, the Company executed a Resale Licensing Agreement with ANP Technologies, Inc. (“ANP”) (the “Agreement”) that outlines the terms and conditions for a One-Time, Non-Exclusive Resale License to MyDx, Inc. for the sale of ANP’s ACE-III-C pesticide and toxic heavy metal Lateral Flow Assay detection test under MyDx, Inc.’s brand. The Agreement provides for the purchase and resale of 10,000 units as part of a Phase I validation of the product’s merchantability. On June 9, 2017, the Company and ANP terminated the Resale Licensing Agreement. Litigation In the normal course of business, the Company may be subject to other legal proceedings, lawsuits and other claims. Although the ultimate aggregate amount of probable monetary liability or financial impact with respect to these matters is subject to many uncertainties and is therefore not predictable with assurance, the Company’s management believes that any monetary liability or financial impact to the Company from these other matters, individually and in the aggregate, would not be material to the Company’s financial condition, results of operations or cash flows. However, there can be no assurance with respect to such result, and monetary liability or financial impact to the Company from these other matters could differ materially from those projected. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | 12. Income Taxes The components of the provision for income taxes are as follows: For the years ended 2017 2016 Current: Federal $ - $ - State 800 800 800 800 Deferred: Federal - - State - - Total provision for (benefit from) income taxes $ 800 $ 800 Deferred tax assets (liabilities) consist of the following: For the years ended 2017 2016 Deferred Tax Assets: Net operating loss carryforwards $ 3,551,327 $ 4,824,505 Research and development credits 144,305 151,303 Accruals, reserves and other 59,006 14,037 Depreciation and amortization - - Stock-based compensation 628,289 460,201 Total deferred tax asset 4,382,538 5,450,046 Valuation allowance (4,376,733 ) (5,445,149 ) Deferred tax liabilities Depreciation and amortization (6,194 ) (4,897 ) Net deferred tax assets $ - $ - Reconciliation of the statutory federal income tax to the Company's effective tax: For the year ended 2017 2016 % % Statutory federal tax rate 21.00 % 34.00 % State taxes, net of federal benefit 6.32 % -0.00 % Valuation allowance -21.99 % -25.11 % Other -5.33 % 8.89 % Provision for income taxes 0.00 % 0.00 % Based on the available objective evidence, management believes it is more likely than not that the net deferred tax assets of the Company will not be fully realizable for the year ended December 31, 2017 and 2016. Accordingly, management had applied a full valuation allowance against net deferred tax assets as of December 31, 2017 and 2016. The valuation allowance increased by approximately $1.1 million and $1.6 million during the years ended December 31, 2017 and 2016. As of December 31, 2017, the Company had approximately $13.0 million of federal and $12.1 million of state net operating loss carryforwards available to reduce future taxable income which will begin to expire in 2033 for both federal and state purposes. As of December 31, 2017, the Company had research & development (“R&D”) credits carryforward of approximately $89,700 and $96,400 for federal and California income tax purposes, respectively. If not utilized, the federal R&D credits carryforward will begin to expire in 2034. The California credits can be carried forward indefinitely. The Company is filing income tax returns with the United States federal government, and the state of California. The Company’s tax years 2014 through 2017 will remain open for examination by the federal and state authorities for three and four years, respectively, from the utilization of any net operating loss credits. On December 22, 2017, the Tax Cuts and Jobs Act pf 2017 (the “Act”) was signed into law making significant changes to the Internal Revenue Code of 1986, as amended (the “Code”). The Act reduces the federal corporate income tax rate from 35% to 21% effective for tax years beginning after December 31, 2017. ASC 470 requires the Company to remeasure the existing net deferred tax asset in the period of enactment. The Act also provides for immediate expensing of 100% or the costs of qualified property that is incurred and placed in service during the period from September 27, 2017 to December 31, 2022. Beginning January 1, 2023, the immediate expensing provision is phased down by 20% per year until it is completely phased out as of January 1, 2027. Additionally, effective January 1, 2018, the Act imposes possible limitations on the deductibility of interest expense. As a result of the provisions of the Act, the Company’s deduction for interest expense could be limited in future years. The effects of other provisions of the Act are not expected to have a material impact on the Company’s financial statements. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to provide guidance on accounting for the tax effects of the Act. SAB 118 provides a measurement period that begins in the reporting period that includes the Act’s enactment date and ends when an entity has obtained, prepared and analyzed the information that was needed in order to complete the accounting requirements under ASC 720. However, in no circumstance should the measurement period extend beyond one year from the enactment date. In accordance with SAB 118, a company must reflect in its financial statements the income tax effects of those aspects of the Act for which the accounting under ASC 740 is complete. SAB 118 provides that to the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. The Company does not reflect a deferred tax asset in its financial statements but includes that calculation and valuation in its footnotes. We are still analyzing the impact of certain provisions of the Act and refining our calculations. The Company will disclose any change in the estimates as it refines the accounting for the impact of the Act. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. Subsequent Events On January 26, 2018 the company entered into a joint venture with Ganja Gold to form “NewCo”. With the formation of NewCo, the intent is for the Parties to manufacture and distribute a new premium line of physiological based Vape formulations. under Ganja Gold Vape Brand (“GGV”). The GGV Brand will be powered by MYDX data and formulations utilizing the Eco Smart Pen Device under an exclusive license of MYDX Power Formulations. MyDx will have the option to acquire 50% of NewCo. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and include the accounts of the Company and its wholly owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the consolidated finance statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Such management estimates include allowance for doubtful accounts, estimates of product returns, warranty expense, inventory valuation, valuation allowances of deferred taxes, stock-based compensation expenses and fair value of warrants and derivatives. The Company bases its estimates on historical experience and on assumptions that it believes are reasonable. The Company assesses these estimates on a regular basis; however, actual results could materially differ from those estimates. |
Concentration of Risk Related to Third-party Suppliers | Concentration of Risk Related to Third-party Suppliers We depend on a limited number of third-party suppliers for the materials and components required to manufacture our products. A delay or interruption by our suppliers may harm our business, results of operations, and financial condition, and could also adversely affect our future profit margins. In addition, the lead time needed to establish a relationship with a new supplier can be lengthy, and we may experience delays in meeting demand in the event we must change or add new suppliers. Our dependence on our suppliers exposes us to numerous risks, including but not limited to the following: our suppliers may cease or reduce production or deliveries, raise prices, or renegotiate terms; we may be unable to locate a suitable replacement supplier on acceptable terms or on a timely basis, or at all; and delays caused by supply issues may harm our reputation, frustrate our customers, and cause them to turn to our competitors for future needs. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company recognizes and discloses the fair value of its assets and liabilities using a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). Each level of input has different levels of subjectivity and difficulty involved in determining fair value. Level 1 Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurable date. Level 2 Inputs, other than quoted prices included in Level 1, that are observable for the asset or liability through corroboration with market data at the measurement date. Level 3 Unobservable inputs that reflect management’s best estimate of what participants would use in pricing the asset or liability at the measurement date. The carrying amounts of the Company’s financial assets and liabilities, including cash, accounts receivable, accounts payable, and accrued liabilities approximate fair value because of the short maturity of these instruments. The carrying value of the Company’s loan payable and convertible notes payable approximates fair value based upon borrowing rates currently available to the Company for loans with similar terms. |
Business Segments | Business Segments ASC 280 defines operating segments as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performances. Currently, ASC 280 has no effect on the Company’s consolidated financial statements as substantially all of the Company’s operations are conducted in one industry segment. |
Cash | Cash The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. As of December 31, 2017 and 2016, the Company held no cash equivalents. The Company’s policy is to place its cash with high credit quality financial instruments and institutions and limit the amounts invested with any one financial institution or in any type of instrument. Deposits held with banks may exceed the amount of insurance provided on such deposits. The Company has not experienced any losses on its deposits of cash. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at the invoiced amount and are not interest bearing. The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The Company makes ongoing assumptions relating to the collectability of its accounts receivable in its calculation of the allowance for doubtful accounts. In determining the amount of the allowance, the Company makes judgments about the creditworthiness of customers based on ongoing credit evaluations and assesses current economic trends affecting its customers that might impact the level of credit losses in the future and result in different rates of bad debts than previously seen. The Company also considers its historical level of credit losses. As of December 31, 2017 and 2016, there was an allowance for doubtful accounts of $27,851 and $0 respectively. During the year ended December 31, 2017 the company recorded a bad debt expense of $27,851. |
Inventory | Inventory Inventory is stated at the lower of cost or market value. Inventory is determined to be salable based on demand forecast within a specific time horizon, generally eighteen months or less. Inventory in excess of salable amounts and inventory which is considered obsolete based upon changes in existing technology is written off. At the point of recognition, a new lower cost basis for that inventory is established and subsequent changes in facts and circumstances do not result in the restoration or increase in that new cost basis. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost, less accumulated depreciation and amortization. Depreciation and amortization are provided using the straight-line method over the useful life as follows: Internal-use software 3 years Equipment 3 to 5 years Computer equipment 3 to 7 years Furniture and fixtures 5 to 7 years Leasehold improvements Shorter of life of asset or lease |
Accounting for Website Development Costs | Accounting for Website Development Costs The Company capitalizes certain external and internal costs, including internal payroll costs, incurred in connection with the development of its website. These costs are capitalized beginning when the Company has entered the application development stage and cease when the project is substantially complete and is ready for its intended use. The website development costs are amortized using the straight-line method over the estimated useful life of three years. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets, such as property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the balance sheets and reported at the lower of the carrying amount or fair value less costs to sell, and no longer depreciated. The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheets. |
Debt Discount and Debt Issuance Costs | Debt Discount and Debt Issuance Costs Debt discounts and debt issuance costs incurred in connection with the issuance of debt are capitalized and amortized to interest expense based on the related debt agreements using the straight-line method. Unamortized discounts are netted against long-term debt. |
Derivative Liability | Derivative Liability In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Paragraph 815-15-25-1 the conversion feature and certain other features are considered embedded derivative instruments, such as a conversion reset provision, a penalty provision and redemption option, which are to be recorded at their fair value as its fair value can be separated from the convertible note and its conversion is independent of the underlying note value. The Company records the resulting discount on debt related to the conversion features at initial transaction and amortizes the discount using the effective interest rate method over the life of the debt instruments. The conversion liability is then marked to market each reporting period with the resulting gains or losses shown in the statements of operations. In circumstances where the embedded conversion option in a convertible instrument is required to be bifurcated and there are also other embedded derivative instruments in the convertible instrument that are required to be bifurcated, the bifurcated derivative instruments are accounted for as a single, compound derivative instrument. The Company follows ASC Section 815-40-15 (“Section 815-40-15”) to determine whether an instrument (or an embedded feature) is indexed to the Company’s own stock. Section 815-40-15 provides that an entity should use a two-step approach to evaluate whether an equity-linked financial instrument (or embedded feature) is indexed to its own stock, including evaluating the instrument’s contingent exercise and settlement provisions. The adoption of Section 815-40-15 has affected the accounting for (i) certain freestanding warrants that contain exercise price adjustment features and (ii) convertible bonds issued by foreign subsidiaries with a strike price denominated in a foreign currency. The Company evaluates its convertible debt, options, warrants or other contracts, if any, to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for in accordance with paragraph 810-10-05-4 and Section 815-40-25 of the FASB Accounting Standards Codification. The result of this accounting treatment is that the fair value of the embedded derivative is marked-to-market each balance sheet date and recorded as either an asset or a liability. In the event that the fair value is recorded as a liability, the change in fair value is recorded in the consolidated statement of operations as other income or expense. Upon conversion, exercise or cancellation of a derivative instrument, the instrument is marked to fair value at the date of conversion, exercise or cancellation and then that the related fair value is reclassified to equity. The Company utilizes the binomial option pricing model to compute the fair value of the derivative and to mark to market the fair value of the derivative at each balance sheet date. The binomial option pricing model includes subjective input assumptions that can materially affect the fair value estimates. The expected volatility is estimated based on the most recent historical period of time equal to the remaining contractual term of the instrument granted. |
Income Taxes | Income Taxes Income taxes are provided in accordance with ASC No. 740, “ Accounting for Income Taxes Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company is no longer subject to tax examinations by tax authorities for years prior to 2013. |
Product revenue | Product revenue The Company recognizes revenue when four revenue recognition criteria have been met: persuasive evidence of an arrangement exists; delivery has occurred, or services have been rendered; the seller’s price to the buyer is fixed or determinable; and collectability is reasonably assured. In accordance with ASC 605-20 revenue from multiple-element arrangements is allocated among separate elements based on their estimated sales prices, provided the elements have value on a stand-alone basis. |
Licensing revenue | Licensing revenue Revenue is generally recognized when: ● Evidence of an arrangement exists; ● Delivery has occurred; ● Fees are fixed or determinable; and ● Collection is considered probable. Some of the Company’s revenues are generated from software-as-a-service (“SaaS”) subscription offerings and related product support and maintenance. SaaS revenues stem mainly from annual subscriptions and are recorded evenly over the term of the subscription. Any customer payments received in advance are deferred until they are earned. Consulting and training revenues are recognized as work is performed. |
Product Returns | Product Returns For any product in its original, undamaged and unmarked condition, with its included accessories and packaging along with the original receipt (or gift receipt) within 30 days of the date the customer receives the product, the Company will exchange it or offer a refund based upon the original payment method. |
Customer Deposits | Customer Deposits The Company accounts for funds received from crowdfunding campaigns and pre-sales as a liability on the consolidated balance sheets as the investments made entitle the investor to apply these funds towards future shipments once the product has been developed and available for commercial use. |
Research and Development Costs | Research and Development Costs Research and development costs are charged to expense as incurred. These costs consist primarily of salaries and direct payroll-related costs. It also includes purchased materials and services provided by independent contractors, software developed by other companies and incorporated into or used in the development of our final products. Research and development expenses for the year ended December 31, 2017 and 2016 were $170,385 and $686,095, respectively. |
Advertising Costs | Advertising Costs Advertising costs are charged to sales and marketing expenses and general and administrative expenses as incurred. Advertising expenses, which are recorded in sales and marketing and general and administrative expenses, totaled $968,687 and $98,219 for the year ended December 31, 2017 and 2016, respectively. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC Topic 718, “ Compensation – Stock Compensation” The Company accounts for share-based payments to non-employees in accordance with ASC 505-50 “ Equity Based Payments to Non-Employees |
Warranty | Warranty The Company provides a limited warranty for its analyzers and sensors for a period of 1 year from the date of shipment that such goods will be free from material defects in material and workmanship. The Company has assessed the historical claims and, to date, warranty claims have not been significant. The Company will continue to assess the need to record a warranty accrual at the time of sale going forward. |
Collaborative Arrangements | Collaborative Arrangements The Company and its collaborative partners are active participants in the collaborative arrangements and both parties are exposed to significant risks and rewards depending on the commercial success of the activity. The Company records all expenses related to collaborative arrangements as research and development expense in the consolidated statements of operations as incurred. |
Net Loss per Share | Net Loss per Share Basic net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net loss per common share is determined using the weighted-average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents. In periods when losses are reported, which is the case for the year ended December 31, 2017 and 2016 presented in these consolidated financial statements, the weighted-average number of common shares outstanding excludes common stock equivalents because their inclusion would be anti-dilutive. The Company had the following common stock equivalents at December 31, 2017 and 2016: December 31, 2017 December 31, 2016 Series A Preferred stock 51 51 Series B Preferred stock 2,967,000,000 3,000,000,000 Convertible notes payable 66,584,538 357,384,725 Convertible accounts payable 312,821,828 284,210,526 Options 1,496,250 1,490,026 Warrants 261,837,676 7,571,395 Totals 3,609,740,343 3,650,656,723 |
Subsequent events | Subsequent events The Company has evaluated events that occurred subsequent to December 31, 2017 and through the date the financial statements were issued. |
Revised Prior Period Amounts | Revised Prior Period Amounts Certain prior year amounts in the consolidated financial statements and the notes thereto have been reclassified where necessary to conform to the current year presentation. The Company identified and recorded an out-of-period adjustment related to redeemable series B preferred stock that should have been recorded in temporary equity during year ended December 31, 2016. The adjustment was reflected as a $5,699,700 increase in redeemable series B preferred stock and corresponding decrease in Additional paid-in capital. See Note 10. |
Recently Adopted Accounting Guidance | Recently Adopted Accounting Guidance In May 2014, the FASB issued a comprehensive new revenue recognition standard that will supersede nearly all existing revenue recognition guidance under U.S. GAAP. The standard’s core principle (issued as ASU 2014-09 by the FASB), is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The new guidance must be adopted using either a full retrospective approach for all periods presented in the period of adoption or a modified retrospective approach. In August 2015, the FASB issued ASU No. 2015-14, which defers the effective date of ASU 2014-09 by one year, and would allow entities the option to early adopt the new revenue standard as of the original effective date. This ASU is effective for public reporting companies for interim and annual periods beginning after December 15, 2016. The standard permits the use of either the retrospective or cumulative effect transition method. The adoption of ASU 2014-15 will not materially impact our consolidated financial position, results of operations or cash flows. In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” ASU 2014-15 provides guidance on management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued. The amendments in ASU 2014-15 are effective for annual reporting periods ending after December 15, 2016, and for annual and interim periods thereafter. Early adoption is permitted. The Company has elected to adopt the methodologies prescribed by ASU 2014-15. The adoption of ASU 2014-15 had no material effect on its financial position or results of operations. In March 2015, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. The amendments are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption of the amendments is permitted for financial statements that have not been previously issued. The amendments should be applied on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. Upon transition, an entity is required to comply with the applicable disclosures for a change in an accounting principle. These disclosures include the nature of and reason for the change in accounting principle, the transition method, a description of the prior-period information that has been retrospectively adjusted, and the effect of the change on the financial statement line items (i.e., debt issuance cost asset and the debt liability). The Company adopted ASU 2015-03 during the year ended December 31, 2016. The adoption of ASU 2015-03 had no material effect on its financial position or results of operations or cash flows. In July 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory”, which modifies existing requirements regarding measuring inventory at the lower of cost or market. Under current inventory standards, the market value requires consideration of replacement cost, net realizable value and net realizable value less an approximately normal profit margin. The new guidance replaces market with net realizable value defined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This eliminates the need to determine and consider replacement cost or net realizable value less an approximately normal profit margin when measuring inventory. The standard is required to be adopted for annual periods beginning after December 15, 2016, including interim periods within that annual period, which is our fiscal year 2018. The amendment is to be applied prospectively with early adoption permitted. The adoption of ASU 2015-11 will not have a material effect on its financial position or results of operations or cash flows. In April 2016, the FASB issued ASU No. 2016-09, “Compensation – Stock Compensation” (topic 718). The FASB issued this update to improve the accounting for employee share-based payments and affect all organizations that issue share-based payment awards to their employees. Several aspects of the accounting for share-based payment award transactions are simplified, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. The updated guidance is effective for annual periods beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption of the update is permitted. The adoption of ASU 2016-09 will not have a material effect on its financial position or results of operations or cash flows. In April 2016, the FASB issued ASU No. 2016-10, “ Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross verses Net)” In May 2016, the FASB issued ASU No. 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients”, which narrowly amended the revenue recognition guidance regarding collectability, noncash consideration, presentation of sales tax and transition and is effective during the same period as ASU 2014-09. The adoption of ASU 2016-12 won’t have a material effect on its financial position or results of operations or cash flows. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” |
Recent Accounting Guidance Not Yet Adopted | Recent Accounting Guidance Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory”, In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230)” In May 2017, the FASB issued ASU 2017-09, “ Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting In July 2017, the FASB issued ASU 2017-11, “ Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480) and Derivatives and Hedging (Topic 815): I. Accounting for Certain Financial Instruments with Down Round Features; II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception Management does not believe that any recently issued, but not yet effective accounting pronouncements, when adopted, will have a material effect on the accompanying consolidated financial statements. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of depreciation and amortization are provided using the straight-line method over the useful life | Internal-use software 3 years Equipment 3 to 5 years Computer equipment 3 to 7 years Furniture and fixtures 5 to 7 years Leasehold improvements Shorter of life of asset or lease |
Schedule of common stock equivalents | December 31, 2017 December 31, 2016 Series A Preferred stock 51 51 Series B Preferred stock 2,967,000,000 3,000,000,000 Convertible notes payable 66,584,538 357,384,725 Convertible accounts payable 312,821,828 284,210,526 Options 1,496,250 1,490,026 Warrants 261,837,676 7,571,395 Totals 3,609,740,343 3,650,656,723 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory [Abstract] | |
Schedule of inventory | December 31, December 31, 2017 2016 Finished goods $ 49,889 $ 3,033 Raw materials 130,614 152,200 $ 180,503 $ 155,233 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property and Equipment, Net [Abstract] | |
Summary of property and equipment, net | December 31, December 31, 2017 2016 Computer and test equipment $ 198,684 $ 198,684 Website development costs 39,870 39,870 Furniture and fixtures 26,948 26,948 Software 10,791 10,791 Leasehold improvements 18,288 18,288 294,581 294,581 Accumulated depreciation and amortization (227,749 ) (155,698 ) $ 66,832 $ 138,883 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accrued Liabilities [Abstract] | |
Schedule of accrued liabilities | December 31, December 31, 2017 2016 Accrued compensation for employees $ 333,048 $ 71,351 Deferred compensation to non-employee 11,673 45,086 Accrued interest on notes payable 50,853 9,727 Other payables 58,839 5,399 $ 454,410 $ 131,563 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt [Abstract] | |
Schedule of convertible notes | December 31, December 31, 2017 2016 Convertible Note -May 24, 2016 $ - $ 21,900 Convertible Note -August 9, 2016 - 35,000 Convertible Note – October 5, 2016 - 363,768 Convertible Note -November 14, 2016 - 35,000 Convertible Note -November 29, 2016 - 63,260 Convertible Note - February 6, 2017 295,750 Less debt discount and debt issuance costs (13,950 ) (285,781 ) Total $ 281,800 $ 233,147 |
Schedule on loan agreement | Outstanding Balances as of December 31, 2017 December 31, November 20, 2015 - 15,000 December 1, 2015 - 25,000 December 2, 2015 - 25,000 April 6, 2016 - 10,000 April 27, 2016 - 25,000 July 20, 2016 - 25,000 August 8, 2016 - 25,000 September 19, 2016 - 25,000 December 1, 2016 - 25,000 February 7, 2017 - - $ - $ 200,000 |
Derivative Liabilities (Tables)
Derivative Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Liabilities [Abstract] | |
Schedule of Black-Scholes assumptions used to estimate the fair value of the derivative liability and warrant liability | Low High Annual dividend rate 0 % 0 % Expected life 0.74 1.40 Risk-free interest rate 1.20 % 1.76 % Expected volatility 121.60 % 266.00 % |
Schedule of changes in the derivative liabilities | Year Ended December 31, 2017 Level 1 Level 2 Level 3 Derivative liabilities as January 1, 2017 $ - $ - $ 1,812,441 Addition - - 3,519,922 Conversion - - (1,845,677 ) Settlement of debt - - (1,087,226 ) Loss on changes in fair value - - 196,545 Derivative liabilities as December 31, 2017 $ - $ - $ 2,596,005 |
Schedule of changes in the warrant liability | Year Ended December 31, 2017 Level 1 Level 2 Level 3 Fair value as January 1, 2016 $ - $ - $ 247,203 Warrants issued - - (222,184 ) Gain on changes in fair value - - (25,019 ) Fair value as December 31, 2017 $ - $ - $ - |
Stockholders' Deficit (Tables)
Stockholders' Deficit (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Deficit [Abstract] | |
Schedule of stock option plan | Shares Weighted- Average Exercise Price Outstanding as of December 31, 2015 4,626,245 $ 0.39 Granted 125,000 $ 0.57 Exercised - - Forfeited or cancelled (3,254,995 ) $ 0.36 Outstanding as of December 31, 2016 1,496,250 $ 0.48 Granted - $ - Exercised - $ - Forfeited or cancelled - $ - Outstanding as of December 31, 2017 1,496,250 $ 0.27 Options exercisable as of December 31, 2017 1,457,500 $ 0.25 |
Schedule of options outstanding and exercisable | Options Outstanding Options Exercisable Exercise Number Average Weighted- Number Weighted- $ 0.08 900,000 3.86 $ 0.08 900,000 $ 0.08 $ 0.55 515,000 3.41 $ 0.55 482,500 $ 0.55 $ 0.57 81,250 3.99 $ 0.57 75,000 $ 0.57 1,496,250 3.8 $ 0.27 1,457,500 $ 0.27 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Schedule of provision for income taxes | For the years ended 2017 2016 Current: Federal $ - $ - State 800 800 800 800 Deferred: Federal - - State - - Total provision for (benefit from) income taxes $ 800 $ 800 |
Schedule of deferred tax assets (liabilities) | For the years ended 2017 2016 Deferred Tax Assets: Net operating loss carryforwards $ 3,551,327 $ 4,824,505 Research and development credits 144,305 151,303 Accruals, reserves and other 59,006 14,037 Depreciation and amortization - - Stock-based compensation 628,289 460,201 Total deferred tax asset 4,382,538 5,450,046 Valuation allowance (4,376,733 ) (5,445,149 ) Deferred tax liabilities Depreciation and amortization (6,194 ) (4,897 ) Net deferred tax assets $ - $ - |
Schedule of statutory federal income tax | For the year ended 2017 2016 % % Statutory federal tax rate 21.00 % 34.00 % State taxes, net of federal benefit 6.32 % -0.00 % Valuation allowance -21.99 % -25.11 % Other -5.33 % 8.89 % Provision for income taxes 0.00 % 0.00 % |
Going Concern (Details)
Going Concern (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Going Concern (Textual) | |||
Cash balance | $ 119,028 | $ 38,203 | $ 143,680 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Internal-use software [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Computer equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Computer equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 7 years |
Furniture and fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Furniture and fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 7 years |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life method, description | Shorter of life of asset or lease |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Details 1) - shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Line Items] | ||
Common stock equivalents | 3,609,740,343 | 3,650,656,723 |
Series A Preferred Stock [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Common stock equivalents | 51 | 51 |
Series B Preferred Stock [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Common stock equivalents | 2,967,000,000 | 3,000,000,000 |
Convertible notes payable [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Common stock equivalents | 66,584,538 | 357,384,725 |
Convertible accounts payable [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Common stock equivalents | 312,821,828 | 284,210,526 |
Options [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Common stock equivalents | 1,496,250 | 1,490,026 |
Warrants [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Common stock equivalents | 261,837,676 | 7,571,395 |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Summary of Significant Accounting Policies (Textual) | ||
Warrant policy period | 1 year | |
Allowance for doubtful accounts | $ 27,851 | $ 0 |
Research and development expenses | 170,385 | 686,095 |
Increase in redeemable series B preferred stock | 5,699,700 | |
Bad debt expense | ||
Accounts Receivable and Allowance for Doubtful Accounts [Member] | ||
Summary of Significant Accounting Policies (Textual) | ||
Bad debt expense | 27,851 | |
Sales and Marketing [Member] | ||
Summary of Significant Accounting Policies (Textual) | ||
Advertising expenses total | 968,687 | 98,219 |
General and Administrative [Member] | ||
Summary of Significant Accounting Policies (Textual) | ||
Advertising expenses total | $ 968,687 | $ 98,219 |
Inventory (Details)
Inventory (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory [Abstract] | ||
Finished goods | $ 49,889 | $ 3,033 |
Raw materials | 130,614 | 152,200 |
Inventory | $ 180,503 | $ 155,233 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | $ 294,581 | $ 294,581 |
Accumulated depreciation and amortization | (227,749) | (155,698) |
Property, plant and equipment, net | 66,832 | 138,883 |
Computer and test equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 198,684 | 198,684 |
Website development costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 39,870 | 39,870 |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 26,948 | 26,948 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 10,791 | 10,791 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | $ 18,288 | $ 18,288 |
Property and Equipment, Net (35
Property and Equipment, Net (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property and Equipment, Net (Textual) | ||
Depreciation expense | $ 72,051 | $ 80,469 |
Impairment of assets | $ 13,126 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Accrued Liabilities [Abstract] | ||
Accrued compensation for employees | $ 333,048 | $ 71,351 |
Deferred compensation to non-employee | 11,673 | 45,086 |
Accrued interest on notes payable | 50,853 | 9,727 |
Other payables | 58,839 | 5,399 |
Accrued liabilities | $ 454,413 | $ 131,563 |
Debt (Details)
Debt (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Short-term Debt [Line Items] | ||
Less debt discount and debt issuance costs | $ (13,950) | $ (285,781) |
Total | 295,750 | 233,147 |
Convertible Note -May 24, 2016 [Member] | ||
Short-term Debt [Line Items] | ||
Convertible notes, gross | 21,900 | |
Convertible Note -August 9, 2016 [Member] | ||
Short-term Debt [Line Items] | ||
Convertible notes, gross | 35,000 | |
Convertible Note - October 5, 2016 [Member] | ||
Short-term Debt [Line Items] | ||
Convertible notes, gross | 363,768 | |
Convertible Note -November 14, 2016 [Member] | ||
Short-term Debt [Line Items] | ||
Convertible notes, gross | 35,000 | |
Convertible Note -November 29, 2016 [Member] | ||
Short-term Debt [Line Items] | ||
Convertible notes, gross | 63,260 | |
Convertible Note - February 6, 2017 [Member] | ||
Short-term Debt [Line Items] | ||
Convertible notes, gross | $ 295,750 |
Debt (Details 1)
Debt (Details 1) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | ||
YCIG advance loan | $ 200,000 | |
November 20, 2015 [Member] | ||
Related Party Transaction [Line Items] | ||
YCIG advance loan | 15,000 | |
December 1, 2015 [Member] | ||
Related Party Transaction [Line Items] | ||
YCIG advance loan | 25,000 | |
December 2, 2015 [Member] | ||
Related Party Transaction [Line Items] | ||
YCIG advance loan | 25,000 | |
April 6, 2016 [Member] | ||
Related Party Transaction [Line Items] | ||
YCIG advance loan | 10,000 | |
April 27, 2016 [Member] | ||
Related Party Transaction [Line Items] | ||
YCIG advance loan | 25,000 | |
July 20, 2016 [Member] | ||
Related Party Transaction [Line Items] | ||
YCIG advance loan | 25,000 | |
August 8, 2016 [Member] | ||
Related Party Transaction [Line Items] | ||
YCIG advance loan | 25,000 | |
September 19, 2016 [Member] | ||
Related Party Transaction [Line Items] | ||
YCIG advance loan | 25,000 | |
December 1, 2016 [Member] | ||
Related Party Transaction [Line Items] | ||
YCIG advance loan | 25,000 | |
February 7, 2017 [Member] | ||
Related Party Transaction [Line Items] | ||
YCIG advance loan |
Debt (Details Textual)
Debt (Details Textual) - USD ($) | Aug. 22, 2017 | Mar. 15, 2017 | Mar. 14, 2017 | Mar. 13, 2017 | Feb. 06, 2017 | Jan. 04, 2017 | Dec. 01, 2016 | Nov. 14, 2016 | Nov. 11, 2016 | Oct. 19, 2016 | Sep. 13, 2016 | Aug. 09, 2016 | May 06, 2016 | Mar. 15, 2016 | Feb. 08, 2016 | Dec. 10, 2015 | Jun. 16, 2017 | Apr. 25, 2017 | Mar. 31, 2017 | Nov. 29, 2016 | Sep. 20, 2016 | Sep. 19, 2016 | Sep. 16, 2016 | Aug. 16, 2016 | Jun. 22, 2016 | May 31, 2016 | May 24, 2016 | Dec. 22, 2015 | Sep. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jul. 20, 2017 | Jul. 17, 2017 | Jun. 19, 2017 | May 08, 2017 | Apr. 20, 2017 | Feb. 07, 2017 |
Debt (Textual) | ||||||||||||||||||||||||||||||||||||||
Common stock, conversion features, description | The Company's common stock as requested by Rockwell Capital, periodically, at a 45% discount from the average lowest closing price for the 15-day trading period preceding the share request. | |||||||||||||||||||||||||||||||||||||
Gain loss on settlement of debt | $ (599,735) | |||||||||||||||||||||||||||||||||||||
Total cost of services | 143,900 | |||||||||||||||||||||||||||||||||||||
Proceeds from the issuance of common stock, Shares | 500,000 | |||||||||||||||||||||||||||||||||||||
Due to related party | 46,075 | 1,075 | ||||||||||||||||||||||||||||||||||||
Repayment by company | 0 | |||||||||||||||||||||||||||||||||||||
Repaid amount | 120,000 | |||||||||||||||||||||||||||||||||||||
Stock issued during period, values | $ 3,950 | 245,500 | ||||||||||||||||||||||||||||||||||||
Outstanding accounts payable balance | 4,870 | |||||||||||||||||||||||||||||||||||||
Gain on settlement of debt | $ 920 | |||||||||||||||||||||||||||||||||||||
Debt discount and debt issuance costs | (13,950) | (285,781) | ||||||||||||||||||||||||||||||||||||
Series B Preferred Stock [Member] | ||||||||||||||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||||||||||||||
Officer selling personal owned shares | 100,000 | |||||||||||||||||||||||||||||||||||||
Related party net proceeds | $ 45,000 | |||||||||||||||||||||||||||||||||||||
Officer [Member] | ||||||||||||||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||||||||||||||
Non interest bearing loans | $ 45,000 | $ 20,000 | $ 10,000 | $ 35,000 | $ 10,000 | $ 20,000 | $ 25,000 | |||||||||||||||||||||||||||||||
Conversion price | $ 0.0023 | |||||||||||||||||||||||||||||||||||||
Securities Purchase Agreement [Member] | ||||||||||||||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||||||||||||||
Outstanding balance convertible debt | $ 0 | |||||||||||||||||||||||||||||||||||||
Convertible note principal amount | $ 35,000 | |||||||||||||||||||||||||||||||||||||
Original issue discount amount | $ 3,500 | |||||||||||||||||||||||||||||||||||||
Common stock, conversion features, description | The Note bears interest at the rate of 8% and must be repaid on or before August 9, 2017. The Note may be prepaid by the Company at any time prior to the date which is 180 days after the date of issuance of the Note at a premium to the amount outstanding at the time of prepayment (as determined in the Note). The Note may be converted by Crown at any time after the six (6) month anniversary of the Note into shares of Company common stock at a conversion price equal to 50% of the market price. | |||||||||||||||||||||||||||||||||||||
Funded amount | $ 35,000 | |||||||||||||||||||||||||||||||||||||
Deduction of diligence and legal fees | $ 1,500 | |||||||||||||||||||||||||||||||||||||
Interest rate percentage | 8.00% | |||||||||||||||||||||||||||||||||||||
Convertible shares of common stock | 21,775,653 | |||||||||||||||||||||||||||||||||||||
Securities Purchase Agreement One [Member] | ||||||||||||||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||||||||||||||
Outstanding balance convertible debt | 0 | $ 35,000 | ||||||||||||||||||||||||||||||||||||
Amortized total debt issuance cost | 21,250 | 13,750 | ||||||||||||||||||||||||||||||||||||
Unamortized debt issuance costs | $ 0 | 21,250 | ||||||||||||||||||||||||||||||||||||
Convertible shares of common stock | 86,654,550 | |||||||||||||||||||||||||||||||||||||
Accrued interest | $ 36,522 | |||||||||||||||||||||||||||||||||||||
Asset Based Loans [Member] | Business Loan Agreement [Member] | ||||||||||||||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||||||||||||||
Net proceeds received | $ 150,000 | |||||||||||||||||||||||||||||||||||||
Maturity date term | 432 days | |||||||||||||||||||||||||||||||||||||
Debt instrument periodic payment | $ 599 | |||||||||||||||||||||||||||||||||||||
Total finance fee | $ 34,500 | |||||||||||||||||||||||||||||||||||||
Outstanding balance convertible debt | 0 | 89,304 | ||||||||||||||||||||||||||||||||||||
Asset Based Loans [Member] | Promissory Note and Security Agreement [Member] | ||||||||||||||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||||||||||||||
Net proceeds received | $ 74,800 | |||||||||||||||||||||||||||||||||||||
Maturity date term | 252 days | |||||||||||||||||||||||||||||||||||||
Debt instrument periodic payment | $ 360 | |||||||||||||||||||||||||||||||||||||
Total finance fee | 15,750 | |||||||||||||||||||||||||||||||||||||
Outstanding balance convertible debt | 0 | 0 | ||||||||||||||||||||||||||||||||||||
Origination and documentation fee | 200 | |||||||||||||||||||||||||||||||||||||
Asset Based Loans [Member] | Future Receivables Sale Agreement [Member] | ||||||||||||||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||||||||||||||
Net proceeds received | 73,125 | |||||||||||||||||||||||||||||||||||||
Debt instrument periodic payment | 1,842 | |||||||||||||||||||||||||||||||||||||
Total finance fee | 13,425 | |||||||||||||||||||||||||||||||||||||
Outstanding balance convertible debt | $ 0 | 31,156 | ||||||||||||||||||||||||||||||||||||
Origination and documentation fee | 1,875 | |||||||||||||||||||||||||||||||||||||
Total repayment of loan | 88,425 | |||||||||||||||||||||||||||||||||||||
Total repayment of loan reduced | $ 85,425 | |||||||||||||||||||||||||||||||||||||
Adar Bays [Member] | ||||||||||||||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||||||||||||||
Maturity date term | 180 days | |||||||||||||||||||||||||||||||||||||
Convertible promissory notes | $ 80,000 | $ 27,500 | $ 110,000 | $ 220,000 | ||||||||||||||||||||||||||||||||||
Original issue discount amount | $ 5,000 | $ 2,750 | $ 10,000 | 2,750 | ||||||||||||||||||||||||||||||||||
Common stock, conversion features, description | The Note bears interest at the rate of 8% per annum and may be converted by Adar Bays at any time after the date which is six months of the issuance date of the original note dated December 22, 2015 into shares of Company common stock at a conversion price equal to 60% of the market price (as determined in the Notes) calculated at the time of conversion. | The Note bears interest at the rate of 8% per annum and may be converted by Adar Bays at any time after the date which is six months of the issuance date of the original note dated December 22, 2015 into shares of Company common stock at a conversion price equal to 60% of the market price (as determined in the Notes) calculated at the time of conversion. | The Notes bear interest at the rate of 8% per annum and may be converted by Adar Bays at any time after the date which is nine months of the date of issuance into shares of Company common stock at a conversion price equal to 60% of the market price (as determined in the Notes) calculated at the time of conversion. | |||||||||||||||||||||||||||||||||||
Amortized total debt issuance cost | $ 7,510 | $ 10,000 | ||||||||||||||||||||||||||||||||||||
Interest rate percentage | 8.00% | 8.00% | 8.00% | |||||||||||||||||||||||||||||||||||
Convertible shares of common stock | 7,142,526 | |||||||||||||||||||||||||||||||||||||
Original issue discount rate | 100.00% | 5.00% | 10.00% | |||||||||||||||||||||||||||||||||||
Principal amount of debt | $ 100,000 | |||||||||||||||||||||||||||||||||||||
Origination and documentation fee | $ 3,750 | $ 1,000 | $ 1,000 | |||||||||||||||||||||||||||||||||||
Maturity date | Sep. 19, 2017 | Aug. 9, 2017 | ||||||||||||||||||||||||||||||||||||
Debt redemption description | The Company defaults on the payment of the redemption amount and such default is not cured within fifteen (15) business days. | |||||||||||||||||||||||||||||||||||||
Union Capital, LLC [Member] | ||||||||||||||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||||||||||||||
Convertible promissory notes | $ 110,000 | 220,000 | ||||||||||||||||||||||||||||||||||||
Outstanding balance convertible debt | $ 0 | |||||||||||||||||||||||||||||||||||||
Convertible note principal amount | $ 110,000 | |||||||||||||||||||||||||||||||||||||
Original issue discount amount | $ 10,000 | $ 10,000 | 10,000 | |||||||||||||||||||||||||||||||||||
Common stock, conversion features, description | The Notes bear interest at the rate of 8% per annum; are due and payable on September 19, 2017; and may be converted by Union Capital at any time after the date which is nine months of the issuance date of the original note dated December 22, 2015 into shares of Company common stock at a conversion price equal to 60% of the market price (as determined in the Notes) calculated at the time of conversion. | The Notes bear interest at the rate of 8% per annum; are due and payable on December 21, 2017; and may be converted by Union Capital at any time after the date which is nine months of the date of issuance into shares of Company common stock at a conversion price equal to 60% of the market price (as determined in the Notes) calculated at the time of conversion. | ||||||||||||||||||||||||||||||||||||
Amortized total debt issuance cost | 9,863 | |||||||||||||||||||||||||||||||||||||
Interest rate percentage | 8.00% | |||||||||||||||||||||||||||||||||||||
Unamortized debt issuance costs | $ 0 | |||||||||||||||||||||||||||||||||||||
Convertible shares of common stock | 7,670,457 | |||||||||||||||||||||||||||||||||||||
Original issue discount rate | 10.00% | 5.00% | 10.00% | |||||||||||||||||||||||||||||||||||
Origination and documentation fee | $ 5,000 | |||||||||||||||||||||||||||||||||||||
Maturity date | Sep. 19, 2017 | |||||||||||||||||||||||||||||||||||||
Debt redemption description | The Company defaults on the payment of the redemption amount and such default is not cured within fifteen (15) business days. | |||||||||||||||||||||||||||||||||||||
Union Capital, LLC [Member] | Securities Purchase Agreement [Member] | ||||||||||||||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||||||||||||||
Convertible note principal amount | $ 104,500 | |||||||||||||||||||||||||||||||||||||
Unamortized debt issuance costs | $ 10,000 | |||||||||||||||||||||||||||||||||||||
Convertible shares of common stock | 7,107,376 | |||||||||||||||||||||||||||||||||||||
Debt discount and debt issuance costs | $ 10,000 | |||||||||||||||||||||||||||||||||||||
Kodiak Capital Group, LLC [Member] | ||||||||||||||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||||||||||||||
Convertible promissory notes | $ 60,000 | |||||||||||||||||||||||||||||||||||||
Outstanding balance convertible debt | 0 | |||||||||||||||||||||||||||||||||||||
Original issue discount amount | $ 10,000 | |||||||||||||||||||||||||||||||||||||
Common stock, conversion features, description | The Note may be converted by Kodiak at any time after 180 days of the date of issuance into shares of Company common stock at a conversion price equal to 50% of the market price. | The purchase price to be paid for the shares will be 70% of the market price for such shares as determined pursuant to the terms set forth in the EPA. The RRA provides that the Company will file a Registration Statement to register up to 4,000,000 shares to be sold to Kodiak pursuant to the EPA, or issued to Kodiak upon conversion of the Note, and that the Company shall use commercially reasonable efforts to file the Registration Statement before March 31, 2016. Pursuant to the terms of the EPA, the Company agreed to issue Kodiak the Note as a commitment fee. | ||||||||||||||||||||||||||||||||||||
Unamortized debt issuance costs | $ 0 | |||||||||||||||||||||||||||||||||||||
Debt instrument, description | The Note must be repaid on or before February 2, 2017. The Note may be prepaid by the Company at any time without penalty. The Note may be converted by Kodiak at any time after August 2, 2016 into shares of Company common stock at a conversion price equal to 50% of the market price. | |||||||||||||||||||||||||||||||||||||
YCIG, Inc. [Member] | ||||||||||||||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||||||||||||||
Interest rate percentage | 12.00% | 12.00% | ||||||||||||||||||||||||||||||||||||
Maturity date | Sep. 28, 2018 | Sep. 29, 2018 | ||||||||||||||||||||||||||||||||||||
Conversion price | $ 0.0023 | $ 0.0023 | ||||||||||||||||||||||||||||||||||||
Lump sum payment due date | Jun. 1, 2017 | |||||||||||||||||||||||||||||||||||||
Monthly interest payments, description | Subsequent to June 1, 2017, all monthly interest payments that accrue shall be payable on the first (1st) day of next month during the remainder life of the Note. | |||||||||||||||||||||||||||||||||||||
Auctus Fund, LLC [Member] | ||||||||||||||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||||||||||||||
Total finance fee | $ 5,750 | $ 5,750 | ||||||||||||||||||||||||||||||||||||
Convertible promissory notes | 55,750 | |||||||||||||||||||||||||||||||||||||
Convertible note principal amount | 55,750 | |||||||||||||||||||||||||||||||||||||
Funded amount | 50,000 | |||||||||||||||||||||||||||||||||||||
Deduction of diligence and legal fees | 5,750 | $ 5,750 | ||||||||||||||||||||||||||||||||||||
Interest rate percentage | 10.00% | |||||||||||||||||||||||||||||||||||||
Convertible shares of common stock | 11,819,360 | |||||||||||||||||||||||||||||||||||||
Principal amount of debt | $ 50,000 | $ 55,750 | ||||||||||||||||||||||||||||||||||||
Debt instrument, description | The Note bears interest at the rate of 10% and must be repaid on or before February 6, 2017. The Note may be prepaid by the Company at any time prior to the date which is 180 days after the date of issuance of the Note in an amount equal to 110% of the amount outstanding. The Note may be converted by Auctus at any time into shares of Company common stock at a conversion price equal to 50% of the market price (as determined in the Note). | The Note bears interest at the rate of 10% and must be repaid on or before December 15, 2016. The Note may be prepaid by the Company at any time prior to the date which is 180 days after the date of issuance of the Note in an amount equal to 110% of the amount outstanding. The Note may be converted by Auctus at any time into shares of Company common stock at a conversion price equal to 50% of the market price (as determined in the Note). | ||||||||||||||||||||||||||||||||||||
Vista Capital Investments, LLC [Member] | ||||||||||||||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||||||||||||||
Debt instrument periodic payment | $ 0 | $ 0 | ||||||||||||||||||||||||||||||||||||
Amortized total debt issuance cost | 9,084 | |||||||||||||||||||||||||||||||||||||
Unamortized debt issuance costs | 0 | 0 | ||||||||||||||||||||||||||||||||||||
Phoenix Fund Management, LLC [Member] | ||||||||||||||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||||||||||||||
Common stock, conversion features, description | To prevent further issuances and conversion notices pursuant to, respectively, a June 2016 $250,000 Section 3(a)(10) settlement and an October 2016 $1,000,000 convertible promissory note. Between February 23, 2017 and March 8, 2017, Phoenix submitted five (5) issuance or conversion requests to the Company's transfer agent for a total of 239,188,023 shares of the Company's common stock. As a result of the settlement described below, none of these shares were issued. | |||||||||||||||||||||||||||||||||||||
Gain loss on settlement of debt | $ 80,315 | |||||||||||||||||||||||||||||||||||||
Convertible promissory notes, shares issued upon conversion | 239,188,023 | |||||||||||||||||||||||||||||||||||||
Adar Bays, LLC One [Member] | ||||||||||||||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||||||||||||||
Outstanding balance convertible debt | 0 | |||||||||||||||||||||||||||||||||||||
Amortized total debt issuance cost | $ 3,250 | |||||||||||||||||||||||||||||||||||||
Convertible shares of common stock | 12,045,545 | |||||||||||||||||||||||||||||||||||||
Debt discount and debt issuance costs | $ 2,750 | |||||||||||||||||||||||||||||||||||||
Rockwell Capital Partners. Inc. [Member] | ||||||||||||||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||||||||||||||
Debt instrument, description | The Company shall issue and deliver to Rockwell shares of its common stock as requested by Rockwell, periodically, at a forty-five percent (45%) discount from the lowest price of the Company's common stock for the seven trading days prior to the date of issuance. | The Company shall issue and deliver to Rockwell shares of its common stock as requested by Rockwell, periodically, at a forty-five percent (45%) discount from the lowest price of the Company's common stock for the seven trading days prior to the date of issuance. | The Company shall issue and deliver to Rockwell shares of its common stock as requested by Rockwell, periodically, at a forty-five percent (45%) discount from the lowest price of the Company's common stock for the seven trading days prior to the date of issuance. | |||||||||||||||||||||||||||||||||||
Stock exchange for retirement | $ 40,895 | |||||||||||||||||||||||||||||||||||||
Stock exchange for retirement, shares | 3,500,000 | |||||||||||||||||||||||||||||||||||||
Gain loss on settlement of debt | 198,261 | |||||||||||||||||||||||||||||||||||||
Crown Bridge Partners, LLC [Member] | ||||||||||||||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||||||||||||||
Convertible note including all penalties and interest | $ 36,749 | |||||||||||||||||||||||||||||||||||||
Converted into common stock shares | 14,699,616 | |||||||||||||||||||||||||||||||||||||
Crown Bridge Partners, LLC [Member] | Securities Purchase Agreement [Member] | ||||||||||||||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||||||||||||||
Deduction of diligence and legal fees | 1,500 | |||||||||||||||||||||||||||||||||||||
BCI Advisors, LLC [Member] | Advisory Services Agreement [Member] | ||||||||||||||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||||||||||||||
Outstanding balance convertible debt | $ 239,182 | 0 | ||||||||||||||||||||||||||||||||||||
Principal amount of debt | $ 137,103 | |||||||||||||||||||||||||||||||||||||
Debt redemption description | In addition, on the 45 and 90th day anniversary of the effectiveness of this Agreement and performance of its services, BCI shall have the right to receive a two (2) year A-1 and A-2 warrant based on a fully diluted basis, each equal to seven-and-one-half percent (7.5%) for a total of (15%) subject to adjustment of the then issued and outstanding Company common shares. The initial fee as well as A-1 and A-2 warrants have been completely earned, free of liens or encumbrances, and non-assessable and can be exercised at any time at an exercise price of $0.001 per share. | |||||||||||||||||||||||||||||||||||||
Restructuring and recapitalization | $ 50,000 | |||||||||||||||||||||||||||||||||||||
Retainer fee | $ 25,000 | |||||||||||||||||||||||||||||||||||||
Converted into common stock shares | 140,000,000 | |||||||||||||||||||||||||||||||||||||
Bright Light Marketing, Inc. [Member] | ||||||||||||||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||||||||||||||
Maturity date | Mar. 1, 2018 | |||||||||||||||||||||||||||||||||||||
Debt settlement agreement terms, description | In 2016, BLM notified the Company that Phoenix was a potential lender. Pursuant to the BLM Settlement, BLM will pay the Company a total of $217,500 over the next twelve (12) months. BLM is due to pay the first $100,000 within thirty (30) business days of the signing of the BLM Settlement. BLM will then pay the Company $10,000 per month on the first day of the next eleven (11) months with the final payment of $7,500 due on March 1, 2018. | |||||||||||||||||||||||||||||||||||||
Meyers Associates, L.P. [Member] | ||||||||||||||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||||||||||||||
Total cost of services | $ 10,000 | |||||||||||||||||||||||||||||||||||||
BPM LLP [Member] | ||||||||||||||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||||||||||||||
Gain loss on settlement of debt | $ 70,781 | |||||||||||||||||||||||||||||||||||||
Debt settlement agreement terms, description | The Company and its previous auditor, BPM LLP ("BPM"), entered into a Settlement Agreement pursuant to which the Company agreed to pay BPM $80,000 by May 31, 2018. The Company and BPM agreed that, following the Company's receipt of each new debt or equity investment (including investments paid in tranches over time) by a party who was not, as of April 25, an officer, director, shareholder, or creditor of the Company, the Company shall pay fifteen percent (15%) of the net proceeds to BPM on the first day of the month following receipt of the investment until the $80,000 has been paid. | |||||||||||||||||||||||||||||||||||||
Hasper Inc [Member] | ||||||||||||||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||||||||||||||
Maturity date | Sep. 28, 2018 | |||||||||||||||||||||||||||||||||||||
Gain loss on settlement of debt | $ 384,903 | |||||||||||||||||||||||||||||||||||||
Notes payable amount | 850,000 | |||||||||||||||||||||||||||||||||||||
Proceeds from notes payable | 263,500 | |||||||||||||||||||||||||||||||||||||
Debt discount and debt issuance costs | $ 18,500 | |||||||||||||||||||||||||||||||||||||
Convertible Notes Payable [Member] | ||||||||||||||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||||||||||||||
Amortized debt discount and debt issuance costs | $ 280,841 | 1,602,635 | ||||||||||||||||||||||||||||||||||||
Original issue discount amount | 10,000 | |||||||||||||||||||||||||||||||||||||
Convertible Notes Payable [Member] | Union Capital, LLC [Member] | ||||||||||||||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||||||||||||||
Outstanding balance convertible debt | 0 | |||||||||||||||||||||||||||||||||||||
Convertible note principal amount | 63,500 | |||||||||||||||||||||||||||||||||||||
Unamortized debt issuance costs | $ 0 | |||||||||||||||||||||||||||||||||||||
Convertible shares of common stock | 16,487,510 | |||||||||||||||||||||||||||||||||||||
Convertible Notes Payable [Member] | Kodiak Capital Group, LLC [Member] | ||||||||||||||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||||||||||||||
Convertible promissory notes | $ 50,000 | |||||||||||||||||||||||||||||||||||||
Outstanding balance convertible debt | 56,319 | |||||||||||||||||||||||||||||||||||||
Original issue discount amount | $ 10,000 | |||||||||||||||||||||||||||||||||||||
Amortized total debt issuance cost | $ 6,319 | |||||||||||||||||||||||||||||||||||||
Unamortized debt issuance costs | $ 6,319 | |||||||||||||||||||||||||||||||||||||
Original issue discount rate | 12.00% | |||||||||||||||||||||||||||||||||||||
Principal amount of debt | $ 60,000 | |||||||||||||||||||||||||||||||||||||
Debt instrument, description | The Note bears interest at the rate of 12% and must be repaid on or before February 7, 2017. The Note may be prepaid by the Company at any time without penalty prior to the date which is 180 days after the date of issuance of the Note. The Note may be converted by Kodiak at any time after 180 days of the date of issuance into shares of Company common stock at a conversion price equal to 50% of the market price (as determined in the Note). | |||||||||||||||||||||||||||||||||||||
Convertible Notes Payable [Member] | Vista Capital Investments, LLC [Member] | ||||||||||||||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||||||||||||||
Maturity date term | 180 days | |||||||||||||||||||||||||||||||||||||
Outstanding balance convertible debt | $ 55,000 | 0 | 21,900 | |||||||||||||||||||||||||||||||||||
Convertible note principal amount | 275,000 | |||||||||||||||||||||||||||||||||||||
Original issue discount amount | $ 5,000 | |||||||||||||||||||||||||||||||||||||
Common stock, conversion features, description | The Note may be prepaid by the Company at any time prior to the date, which is 180 days after issuance of the Note at a premium to the amount outstanding at the time of prepayment (as determined in the Note). The Note may be converted by Vista at any time after the six (6) month anniversary of the Note into shares of Company common stock at a conversion price equal to 50% of the market price (as determined in the Note). | |||||||||||||||||||||||||||||||||||||
Amortized total debt issuance cost | 13,148 | |||||||||||||||||||||||||||||||||||||
Interest rate percentage | 10.00% | |||||||||||||||||||||||||||||||||||||
Unamortized debt issuance costs | 0 | 13,148 | ||||||||||||||||||||||||||||||||||||
Convertible shares of common stock | 68,437,500 | |||||||||||||||||||||||||||||||||||||
Original issue discount rate | 10.00% | |||||||||||||||||||||||||||||||||||||
Proceeds from the issuance of common stock, Shares | 35,000,000 | |||||||||||||||||||||||||||||||||||||
Convertible Notes Payable [Member] | Crown Bridge Partners, LLC [Member] | Securities Purchase Agreement [Member] | ||||||||||||||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||||||||||||||
Outstanding balance convertible debt | 0 | 35,000 | ||||||||||||||||||||||||||||||||||||
Original issue discount amount | 3,500 | |||||||||||||||||||||||||||||||||||||
Amortized total debt issuance cost | 30,577 | |||||||||||||||||||||||||||||||||||||
Funded amount | 31,500 | |||||||||||||||||||||||||||||||||||||
Deduction of diligence and legal fees | $ 1,500 | |||||||||||||||||||||||||||||||||||||
Interest rate percentage | 8.00% | |||||||||||||||||||||||||||||||||||||
Unamortized debt issuance costs | $ 0 | $ 30,577 | ||||||||||||||||||||||||||||||||||||
Principal amount of debt | $ 35,000 | |||||||||||||||||||||||||||||||||||||
Debt instrument, description | The Note may be converted by Crown at any time after the six (6) month anniversary of the Note into shares of Company common stock at a conversion price equal to 50% of the market price (as determined in the Note). | |||||||||||||||||||||||||||||||||||||
Maturity date | Aug. 9, 2017 | |||||||||||||||||||||||||||||||||||||
Promissory notes one [Member] | Adar Bays [Member] | ||||||||||||||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||||||||||||||
Convertible promissory notes | $ 110,000 | |||||||||||||||||||||||||||||||||||||
Promissory notes one [Member] | Union Capital, LLC [Member] | ||||||||||||||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||||||||||||||
Convertible promissory notes | 110,000 | |||||||||||||||||||||||||||||||||||||
Principal amount of debt | 100,000 | |||||||||||||||||||||||||||||||||||||
Promissory notes two [Member] | Adar Bays [Member] | ||||||||||||||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||||||||||||||
Convertible promissory notes | 110,000 | |||||||||||||||||||||||||||||||||||||
Promissory notes two [Member] | Union Capital, LLC [Member] | ||||||||||||||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||||||||||||||
Convertible promissory notes | $ 110,000 |
Debt (Details Textual 1)
Debt (Details Textual 1) - USD ($) | Aug. 09, 2016 | Sep. 20, 2016 | Sep. 19, 2016 | Aug. 16, 2016 | Jun. 22, 2016 | Dec. 22, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 |
Debt (Textual) | |||||||||
Common stock, conversion features, description | The Company's common stock as requested by Rockwell Capital, periodically, at a 45% discount from the average lowest closing price for the 15-day trading period preceding the share request. | ||||||||
Original issue discount amount | $ (285,781) | $ (13,950) | |||||||
Securities Purchase Agreement [Member] | |||||||||
Debt (Textual) | |||||||||
Outstanding balance convertible debt | $ 0 | ||||||||
Original issue discount amount | $ 3,500 | ||||||||
Common stock, conversion features, description | The Note bears interest at the rate of 8% and must be repaid on or before August 9, 2017. The Note may be prepaid by the Company at any time prior to the date which is 180 days after the date of issuance of the Note at a premium to the amount outstanding at the time of prepayment (as determined in the Note). The Note may be converted by Crown at any time after the six (6) month anniversary of the Note into shares of Company common stock at a conversion price equal to 50% of the market price. | ||||||||
Interest rate percentage | 8.00% | ||||||||
Convertible shares of common stock | 21,775,653 | ||||||||
Convertible note principal amount | $ 35,000 | ||||||||
Adar Bays [Member] | |||||||||
Debt (Textual) | |||||||||
Convertible promissory notes | $ 80,000 | $ 27,500 | $ 110,000 | $ 220,000 | |||||
Original issue discount amount | $ 5,000 | $ 2,750 | $ 10,000 | $ 2,750 | |||||
Common stock, conversion features, description | The Note bears interest at the rate of 8% per annum and may be converted by Adar Bays at any time after the date which is six months of the issuance date of the original note dated December 22, 2015 into shares of Company common stock at a conversion price equal to 60% of the market price (as determined in the Notes) calculated at the time of conversion. | The Note bears interest at the rate of 8% per annum and may be converted by Adar Bays at any time after the date which is six months of the issuance date of the original note dated December 22, 2015 into shares of Company common stock at a conversion price equal to 60% of the market price (as determined in the Notes) calculated at the time of conversion. | The Notes bear interest at the rate of 8% per annum and may be converted by Adar Bays at any time after the date which is nine months of the date of issuance into shares of Company common stock at a conversion price equal to 60% of the market price (as determined in the Notes) calculated at the time of conversion. | ||||||
Amortized total debt issuance cost | $ 7,510 | $ 10,000 | |||||||
Interest rate percentage | 8.00% | 8.00% | 8.00% | ||||||
Original issue discount rate | 100.00% | 5.00% | 10.00% | ||||||
Percentage of convertible promissory note | 8.00% | ||||||||
Percentage of redemption price | 140.00% | ||||||||
Debt redemption amount | $ 158,424.44 | ||||||||
Origination fee | $ 3,750 | $ 1,000 | $ 1,000 | ||||||
Purchase price | $ 71,250 | $ 23,750 | |||||||
Maturity date | Sep. 19, 2017 | Aug. 9, 2017 | |||||||
Debt redemption description | The Company defaults on the payment of the redemption amount and such default is not cured within fifteen (15) business days. | ||||||||
Convertible shares of common stock | 7,142,526 | ||||||||
Principal amount of debt | $ 100,000 | ||||||||
Adar Bays, LLC One [Member] | |||||||||
Debt (Textual) | |||||||||
Outstanding balance convertible debt | $ 0 | ||||||||
Amortized total debt issuance cost | 3,250 | ||||||||
Original issue discount amount | $ 2,750 | ||||||||
Convertible shares of common stock | 12,045,545 | ||||||||
Union Capital, LLC [Member] | |||||||||
Debt (Textual) | |||||||||
Convertible promissory notes | $ 110,000 | 220,000 | |||||||
Outstanding balance convertible debt | $ 0 | ||||||||
Original issue discount amount | $ 10,000 | $ 10,000 | 10,000 | ||||||
Common stock, conversion features, description | The Notes bear interest at the rate of 8% per annum; are due and payable on September 19, 2017; and may be converted by Union Capital at any time after the date which is nine months of the issuance date of the original note dated December 22, 2015 into shares of Company common stock at a conversion price equal to 60% of the market price (as determined in the Notes) calculated at the time of conversion. | The Notes bear interest at the rate of 8% per annum; are due and payable on December 21, 2017; and may be converted by Union Capital at any time after the date which is nine months of the date of issuance into shares of Company common stock at a conversion price equal to 60% of the market price (as determined in the Notes) calculated at the time of conversion. | |||||||
Amortized total debt issuance cost | 9,863 | ||||||||
Interest rate percentage | 8.00% | ||||||||
Unamortized debt issuance costs | $ 0 | ||||||||
Original issue discount rate | 10.00% | 5.00% | 10.00% | ||||||
Percentage of convertible promissory note | 8.00% | ||||||||
Percentage of redemption price | 140.00% | ||||||||
Debt redemption amount | $ 158,363.84 | ||||||||
Origination fee | $ 5,000 | ||||||||
Purchase price | $ 95,000 | ||||||||
Maturity date | Sep. 19, 2017 | ||||||||
Debt redemption description | The Company defaults on the payment of the redemption amount and such default is not cured within fifteen (15) business days. | ||||||||
Convertible shares of common stock | 7,670,457 | ||||||||
Convertible note principal amount | $ 110,000 | ||||||||
Union Capital, LLC [Member] | Securities Purchase Agreement [Member] | |||||||||
Debt (Textual) | |||||||||
Unamortized debt issuance costs | $ 10,000 | ||||||||
Original issue discount amount | $ 10,000 | ||||||||
Convertible shares of common stock | 7,107,376 | ||||||||
Convertible note principal amount | $ 104,500 | ||||||||
Convertible Notes Payable [Member] | |||||||||
Debt (Textual) | |||||||||
Original issue discount amount | 10,000 | ||||||||
Convertible Notes Payable [Member] | Union Capital, LLC [Member] | |||||||||
Debt (Textual) | |||||||||
Outstanding balance convertible debt | 0 | ||||||||
Unamortized debt issuance costs | $ 0 | ||||||||
Convertible shares of common stock | 16,487,510 | ||||||||
Convertible note principal amount | $ 63,500 | ||||||||
Promissory notes one [Member] | Adar Bays [Member] | |||||||||
Debt (Textual) | |||||||||
Convertible promissory notes | $ 110,000 | ||||||||
Promissory notes one [Member] | Union Capital, LLC [Member] | |||||||||
Debt (Textual) | |||||||||
Convertible promissory notes | 110,000 | ||||||||
Principal amount of debt | 100,000 | ||||||||
Promissory notes two [Member] | Adar Bays [Member] | |||||||||
Debt (Textual) | |||||||||
Convertible promissory notes | 110,000 | ||||||||
Promissory notes two [Member] | Union Capital, LLC [Member] | |||||||||
Debt (Textual) | |||||||||
Convertible promissory notes | 110,000 | ||||||||
Collateralized secured note issued | $ 100,000 |
Debt (Details Textual 2)
Debt (Details Textual 2) - USD ($) | Aug. 22, 2017 | Mar. 15, 2017 | Mar. 14, 2017 | Mar. 13, 2017 | Feb. 06, 2017 | Jan. 04, 2017 | Dec. 01, 2016 | Nov. 14, 2016 | Nov. 11, 2016 | Oct. 19, 2016 | Sep. 13, 2016 | Aug. 09, 2016 | May 06, 2016 | Mar. 15, 2016 | Feb. 08, 2016 | Dec. 10, 2015 | Dec. 27, 2017 | Jun. 16, 2017 | Apr. 25, 2017 | Mar. 31, 2017 | Nov. 29, 2016 | Sep. 20, 2016 | May 24, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Debt (Textual) | ||||||||||||||||||||||||||
Common stock, conversion features, description | The Company's common stock as requested by Rockwell Capital, periodically, at a 45% discount from the average lowest closing price for the 15-day trading period preceding the share request. | |||||||||||||||||||||||||
Gain loss on settlement of debt | $ (599,735) | |||||||||||||||||||||||||
Total cost of services | 143,900 | |||||||||||||||||||||||||
Proceeds from the issuance of common stock, Shares | 500,000 | |||||||||||||||||||||||||
Due to related party | 46,075 | 1,075 | ||||||||||||||||||||||||
Stock issued during period, values | $ 3,950 | 245,500 | ||||||||||||||||||||||||
Outstanding accounts payable balance | 4,870 | |||||||||||||||||||||||||
Gain on settlement of debt | $ 920 | |||||||||||||||||||||||||
Debt discount and debt issuance costs | (13,950) | (285,781) | ||||||||||||||||||||||||
Repaid amount | 120,000 | |||||||||||||||||||||||||
Securities Purchase Agreement [Member] | ||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||
Outstanding balance convertible debt | $ 0 | |||||||||||||||||||||||||
Convertible note principal amount | $ 35,000 | |||||||||||||||||||||||||
Original issue discount amount | $ 3,500 | |||||||||||||||||||||||||
Common stock, conversion features, description | The Note bears interest at the rate of 8% and must be repaid on or before August 9, 2017. The Note may be prepaid by the Company at any time prior to the date which is 180 days after the date of issuance of the Note at a premium to the amount outstanding at the time of prepayment (as determined in the Note). The Note may be converted by Crown at any time after the six (6) month anniversary of the Note into shares of Company common stock at a conversion price equal to 50% of the market price. | |||||||||||||||||||||||||
Funded amount | $ 35,000 | |||||||||||||||||||||||||
Deduction of diligence and legal fees | $ 1,500 | |||||||||||||||||||||||||
Interest rate percentage | 8.00% | |||||||||||||||||||||||||
Convertible shares of common stock | 21,775,653 | |||||||||||||||||||||||||
Securities Purchase Agreement One [Member] | ||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||
Outstanding balance convertible debt | 0 | $ 35,000 | ||||||||||||||||||||||||
Amortized total debt issuance cost | 21,250 | 13,750 | ||||||||||||||||||||||||
Unamortized debt issuance costs | $ 0 | 21,250 | ||||||||||||||||||||||||
Convertible shares of common stock | 86,654,550 | |||||||||||||||||||||||||
Accrued interest | $ 36,522 | |||||||||||||||||||||||||
Kodiak Capital Group, LLC [Member] | ||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||
Outstanding balance convertible debt | 0 | |||||||||||||||||||||||||
Convertible promissory notes | $ 60,000 | |||||||||||||||||||||||||
Original issue discount amount | $ 10,000 | |||||||||||||||||||||||||
Common stock, conversion features, description | The Note may be converted by Kodiak at any time after 180 days of the date of issuance into shares of Company common stock at a conversion price equal to 50% of the market price. | The purchase price to be paid for the shares will be 70% of the market price for such shares as determined pursuant to the terms set forth in the EPA. The RRA provides that the Company will file a Registration Statement to register up to 4,000,000 shares to be sold to Kodiak pursuant to the EPA, or issued to Kodiak upon conversion of the Note, and that the Company shall use commercially reasonable efforts to file the Registration Statement before March 31, 2016. Pursuant to the terms of the EPA, the Company agreed to issue Kodiak the Note as a commitment fee. | ||||||||||||||||||||||||
Unamortized debt issuance costs | $ 0 | |||||||||||||||||||||||||
Debt instrument, description | The Note must be repaid on or before February 2, 2017. The Note may be prepaid by the Company at any time without penalty. The Note may be converted by Kodiak at any time after August 2, 2016 into shares of Company common stock at a conversion price equal to 50% of the market price. | |||||||||||||||||||||||||
Maximum number of shares to be issued | $ 1,000,000 | |||||||||||||||||||||||||
YCIG, Inc. [Member] | ||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||
Interest rate percentage | 12.00% | 12.00% | ||||||||||||||||||||||||
Maturity date | Sep. 28, 2018 | Sep. 29, 2018 | ||||||||||||||||||||||||
Conversion price | $ 0.0023 | $ 0.0023 | ||||||||||||||||||||||||
Monthly interest payments, description | Subsequent to June 1, 2017, all monthly interest payments that accrue shall be payable on the first (1st) day of next month during the remainder life of the Note. | |||||||||||||||||||||||||
Auctus Fund, LLC [Member] | ||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||
Convertible promissory notes | $ 55,750 | |||||||||||||||||||||||||
Convertible note principal amount | 55,750 | |||||||||||||||||||||||||
Funded amount | $ 50,000 | |||||||||||||||||||||||||
Deduction of diligence and legal fees | 5,750 | $ 5,750 | ||||||||||||||||||||||||
Interest rate percentage | 10.00% | |||||||||||||||||||||||||
Convertible shares of common stock | 11,819,360 | |||||||||||||||||||||||||
Principal amount of debt | $ 50,000 | $ 55,750 | ||||||||||||||||||||||||
Debt instrument, description | The Note bears interest at the rate of 10% and must be repaid on or before February 6, 2017. The Note may be prepaid by the Company at any time prior to the date which is 180 days after the date of issuance of the Note in an amount equal to 110% of the amount outstanding. The Note may be converted by Auctus at any time into shares of Company common stock at a conversion price equal to 50% of the market price (as determined in the Note). | The Note bears interest at the rate of 10% and must be repaid on or before December 15, 2016. The Note may be prepaid by the Company at any time prior to the date which is 180 days after the date of issuance of the Note in an amount equal to 110% of the amount outstanding. The Note may be converted by Auctus at any time into shares of Company common stock at a conversion price equal to 50% of the market price (as determined in the Note). | ||||||||||||||||||||||||
Total finance fee | $ 5,750 | $ 5,750 | ||||||||||||||||||||||||
Vista Capital Investments, LLC [Member] | ||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||
Debt instrument periodic payment | 0 | $ 0 | ||||||||||||||||||||||||
Amortized total debt issuance cost | 9,084 | |||||||||||||||||||||||||
Unamortized debt issuance costs | 0 | 0 | ||||||||||||||||||||||||
Phoenix Fund Management, LLC [Member] | ||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||
Common stock, conversion features, description | To prevent further issuances and conversion notices pursuant to, respectively, a June 2016 $250,000 Section 3(a)(10) settlement and an October 2016 $1,000,000 convertible promissory note. Between February 23, 2017 and March 8, 2017, Phoenix submitted five (5) issuance or conversion requests to the Company's transfer agent for a total of 239,188,023 shares of the Company's common stock. As a result of the settlement described below, none of these shares were issued. | |||||||||||||||||||||||||
Gain loss on settlement of debt | $ 80,315 | |||||||||||||||||||||||||
Convertible promissory notes, shares issued upon conversion | 239,188,023 | |||||||||||||||||||||||||
Rockwell Capital Partners. Inc. [Member] | ||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||
Debt instrument, description | The Company shall issue and deliver to Rockwell shares of its common stock as requested by Rockwell, periodically, at a forty-five percent (45%) discount from the lowest price of the Company's common stock for the seven trading days prior to the date of issuance. | The Company shall issue and deliver to Rockwell shares of its common stock as requested by Rockwell, periodically, at a forty-five percent (45%) discount from the lowest price of the Company's common stock for the seven trading days prior to the date of issuance. | The Company shall issue and deliver to Rockwell shares of its common stock as requested by Rockwell, periodically, at a forty-five percent (45%) discount from the lowest price of the Company's common stock for the seven trading days prior to the date of issuance. | |||||||||||||||||||||||
Gain loss on settlement of debt | 198,261 | |||||||||||||||||||||||||
Crown Bridge Partners, LLC [Member] | ||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||
Convertible note including all penalties and interest | $ 36,749 | |||||||||||||||||||||||||
Converted into common stock shares | 14,699,616 | |||||||||||||||||||||||||
Crown Bridge Partners, LLC [Member] | Securities Purchase Agreement [Member] | ||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||
Deduction of diligence and legal fees | 1,500 | |||||||||||||||||||||||||
BCI Advisors, LLC [Member] | Advisory Services Agreement [Member] | ||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||
Outstanding balance convertible debt | $ 239,182 | 0 | ||||||||||||||||||||||||
Principal amount of debt | $ 137,103 | |||||||||||||||||||||||||
Restructuring and recapitalization | $ 50,000 | |||||||||||||||||||||||||
Retainer fee | $ 25,000 | |||||||||||||||||||||||||
Converted into common stock shares | 140,000,000 | |||||||||||||||||||||||||
Bright Light Marketing, Inc. [Member] | ||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||
Maturity date | Mar. 1, 2018 | |||||||||||||||||||||||||
Debt settlement agreement terms, description | In 2016, BLM notified the Company that Phoenix was a potential lender. Pursuant to the BLM Settlement, BLM will pay the Company a total of $217,500 over the next twelve (12) months. BLM is due to pay the first $100,000 within thirty (30) business days of the signing of the BLM Settlement. BLM will then pay the Company $10,000 per month on the first day of the next eleven (11) months with the final payment of $7,500 due on March 1, 2018. | |||||||||||||||||||||||||
Meyers Associates, L.P. [Member] | ||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||
Total cost of services | $ 10,000 | |||||||||||||||||||||||||
BPM LLP [Member] | ||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||
Gain loss on settlement of debt | $ 70,781 | |||||||||||||||||||||||||
Debt settlement agreement terms, description | The Company and its previous auditor, BPM LLP ("BPM"), entered into a Settlement Agreement pursuant to which the Company agreed to pay BPM $80,000 by May 31, 2018. The Company and BPM agreed that, following the Company's receipt of each new debt or equity investment (including investments paid in tranches over time) by a party who was not, as of April 25, an officer, director, shareholder, or creditor of the Company, the Company shall pay fifteen percent (15%) of the net proceeds to BPM on the first day of the month following receipt of the investment until the $80,000 has been paid. | |||||||||||||||||||||||||
Hasper Inc [Member] | ||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||
Maturity date | Sep. 28, 2018 | |||||||||||||||||||||||||
Gain loss on settlement of debt | $ 384,903 | |||||||||||||||||||||||||
Notes payable amount | 850,000 | |||||||||||||||||||||||||
Proceeds from notes payable | 263,500 | |||||||||||||||||||||||||
Debt discount and debt issuance costs | $ 18,500 | |||||||||||||||||||||||||
Hasper Inc [Member] | Amendment [Member] | ||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||
Outstanding balance convertible debt | $ 295,750 | |||||||||||||||||||||||||
Convertible note principal amount | 236,250 | |||||||||||||||||||||||||
Amortized total debt issuance cost | 6,050 | |||||||||||||||||||||||||
Unamortized debt issuance costs | $ 13,950 | |||||||||||||||||||||||||
Gain loss on settlement of debt | $ 155,086 | |||||||||||||||||||||||||
Converted into common stock shares | 99,891,304 | |||||||||||||||||||||||||
Proceeds from notes payable | 48,500 | |||||||||||||||||||||||||
Debt discount and debt issuance costs | $ 1,500 | |||||||||||||||||||||||||
Convertible Notes Payable [Member] | ||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||
Original issue discount amount | 10,000 | |||||||||||||||||||||||||
Convertible Notes Payable [Member] | Kodiak Capital Group, LLC [Member] | ||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||
Outstanding balance convertible debt | $ 56,319 | |||||||||||||||||||||||||
Convertible promissory notes | $ 50,000 | |||||||||||||||||||||||||
Original issue discount amount | $ 10,000 | |||||||||||||||||||||||||
Amortized total debt issuance cost | 6,319 | |||||||||||||||||||||||||
Unamortized debt issuance costs | $ 6,319 | |||||||||||||||||||||||||
Original issue discount rate | 12.00% | |||||||||||||||||||||||||
Principal amount of debt | $ 60,000 | |||||||||||||||||||||||||
Debt instrument, description | The Note bears interest at the rate of 12% and must be repaid on or before February 7, 2017. The Note may be prepaid by the Company at any time without penalty prior to the date which is 180 days after the date of issuance of the Note. The Note may be converted by Kodiak at any time after 180 days of the date of issuance into shares of Company common stock at a conversion price equal to 50% of the market price (as determined in the Note). | |||||||||||||||||||||||||
Issuance of debt discount | $ 10,000 | |||||||||||||||||||||||||
Percentage of conversion price, discount | 50.00% | |||||||||||||||||||||||||
Convertible Notes Payable [Member] | Vista Capital Investments, LLC [Member] | ||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||
Maturity date term | 180 days | |||||||||||||||||||||||||
Outstanding balance convertible debt | $ 55,000 | $ 0 | 21,900 | |||||||||||||||||||||||
Convertible note principal amount | 275,000 | |||||||||||||||||||||||||
Original issue discount amount | $ 5,000 | |||||||||||||||||||||||||
Common stock, conversion features, description | The Note may be prepaid by the Company at any time prior to the date, which is 180 days after issuance of the Note at a premium to the amount outstanding at the time of prepayment (as determined in the Note). The Note may be converted by Vista at any time after the six (6) month anniversary of the Note into shares of Company common stock at a conversion price equal to 50% of the market price (as determined in the Note). | |||||||||||||||||||||||||
Amortized total debt issuance cost | 13,148 | |||||||||||||||||||||||||
Interest rate percentage | 10.00% | |||||||||||||||||||||||||
Unamortized debt issuance costs | 0 | 13,148 | ||||||||||||||||||||||||
Convertible shares of common stock | 68,437,500 | |||||||||||||||||||||||||
Original issue discount rate | 10.00% | |||||||||||||||||||||||||
Proceeds from the issuance of common stock, Shares | 35,000,000 | |||||||||||||||||||||||||
Convertible Notes Payable [Member] | Crown Bridge Partners, LLC [Member] | Securities Purchase Agreement [Member] | ||||||||||||||||||||||||||
Debt (Textual) | ||||||||||||||||||||||||||
Outstanding balance convertible debt | 0 | 35,000 | ||||||||||||||||||||||||
Original issue discount amount | 3,500 | |||||||||||||||||||||||||
Amortized total debt issuance cost | 30,577 | |||||||||||||||||||||||||
Funded amount | 31,500 | |||||||||||||||||||||||||
Deduction of diligence and legal fees | $ 1,500 | |||||||||||||||||||||||||
Interest rate percentage | 8.00% | |||||||||||||||||||||||||
Unamortized debt issuance costs | $ 0 | $ 30,577 | ||||||||||||||||||||||||
Principal amount of debt | $ 35,000 | |||||||||||||||||||||||||
Debt instrument, description | The Note may be converted by Crown at any time after the six (6) month anniversary of the Note into shares of Company common stock at a conversion price equal to 50% of the market price (as determined in the Note). | |||||||||||||||||||||||||
Maturity date | Aug. 9, 2017 |
Derivative Liabilities (Details
Derivative Liabilities (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Annual dividend rate | 0.00% |
Fair value of derivative liability and warrant liability [Member] | Low Level [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Annual dividend rate | 0.00% |
Expected life | 8 months 12 days |
Risk-free interest rate | 1.20% |
Expected volatility | 121.60% |
Fair value of derivative liability and warrant liability [Member] | High Level [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Annual dividend rate | 0.00% |
Expected life | 1 year 4 months 24 days |
Risk-free interest rate | 1.76% |
Expected volatility | 266.00% |
Derivative Liabilities (Detai43
Derivative Liabilities (Details 1) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Level 1 [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Derivative liabilities as January 1, 2016 | |
Addition | |
Conversion | |
Settlement of debt | |
Loss on changes in fair value | |
Derivative liabilities as December 31, 2017 | |
Level 2 [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Derivative liabilities as January 1, 2016 | |
Addition | |
Conversion | |
Settlement of debt | |
Loss on changes in fair value | |
Derivative liabilities as December 31, 2017 | |
Level 3 [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Derivative liabilities as January 1, 2016 | 1,812,441 |
Addition | 3,519,922 |
Conversion | (1,845,677) |
Settlement of debt | (1,087,226) |
Loss on changes in fair value | 196,545 |
Derivative liabilities as December 31, 2017 | $ 2,596,005 |
Derivative Liabilities (Detai44
Derivative Liabilities (Details 2) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Level 1 [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Fair value as January 1, 2017 | |
Warrants issued | |
Gain on changes in fair value | |
Fair value as December 31, 2017 | |
Level 2 [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Fair value as January 1, 2017 | |
Warrants issued | |
Gain on changes in fair value | |
Fair value as December 31, 2017 | |
Level 3 [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Fair value as January 1, 2017 | 247,203 |
Warrants issued | (222,184) |
Gain on changes in fair value | (25,019) |
Fair value as December 31, 2017 |
Derivative Liabilities (Detai45
Derivative Liabilities (Details Textual) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Liabilities (Textual) | |
Dividend yield | 0.00% |
Stockholders' Deficit (Details)
Stockholders' Deficit (Details) - Stock option [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Shares | ||
Outstanding | 1,496,250 | 4,626,245 |
Granted | 125,000 | |
Exercised | ||
Forfeited or cancelled | (3,254,995) | |
Outstanding | 1,496,250 | 1,496,250 |
Options exercisable | 1,457,500 | |
Weighted- Average Exercise Price | ||
Outstanding | $ 0.48 | $ 0.39 |
Granted | 0.57 | |
Exercised | ||
Forfeited or cancelled | 0.36 | |
Outstanding | 0.27 | $ 0.48 |
Options exercisable | $ 0.25 |
Stockholders' Deficit (Details
Stockholders' Deficit (Details 1) - Stock option [Member] | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding | shares | 1,490,000 |
Options Outstanding, Average Remaining Contractual Life (Years) | 3 years 9 months 18 days |
Options Outstanding, Weighted-Average Exercise Price | $ / shares | $ 0.27 |
Options Exercisable, Number Outstanding | shares | 1,457,500 |
Options Exercisable, Weighted-Average Exercise Price | $ / shares | $ 0.27 |
0.08 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding | shares | 900,000 |
Options Outstanding, Average Remaining Contractual Life (Years) | 3 years 10 months 10 days |
Options Outstanding, Weighted-Average Exercise Price | $ / shares | $ 0.08 |
Options Exercisable, Number Outstanding | shares | 900,000 |
Options Exercisable, Weighted-Average Exercise Price | $ / shares | $ 0.08 |
0.55 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding | shares | 515,000 |
Options Outstanding, Average Remaining Contractual Life (Years) | 3 years 4 months 28 days |
Options Outstanding, Weighted-Average Exercise Price | $ / shares | $ 0.55 |
Options Exercisable, Number Outstanding | shares | 482,500 |
Options Exercisable, Weighted-Average Exercise Price | $ / shares | $ 0.55 |
0.57 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding | shares | 81,250 |
Options Outstanding, Average Remaining Contractual Life (Years) | 3 years 11 months 26 days |
Options Outstanding, Weighted-Average Exercise Price | $ / shares | $ 0.57 |
Options Exercisable, Number Outstanding | shares | 75,000 |
Options Exercisable, Weighted-Average Exercise Price | $ / shares | $ 0.57 |
Stockholders' Deficit (Detail48
Stockholders' Deficit (Details Textual) - USD ($) | May 01, 2017 | Mar. 16, 2017 | Dec. 23, 2016 | Apr. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Stockholders' Deficit (Textual) | |||||||
Common stock, par value | $ 0.001 | $ 0.001 | |||||
Common stock, shares authorized | 10,000,000,000 | 10,000,000,000 | |||||
Warrants to purchase shares of common stock | 252,773,754 | ||||||
Investors [Member] | |||||||
Stockholders' Deficit (Textual) | |||||||
Sale of restricted shares | 25,000,000 | ||||||
Purchase price | $ 0.006 | ||||||
Sale of stock amount | $ 150,000 | ||||||
Series A Preferred Stock [Member] | |||||||
Stockholders' Deficit (Textual) | |||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | |||||
Stock description of transaction | The Series A Preferred Stock can convert into common stock at a 1:1 ratio. Each one (1) share of the Series A Preferred shall have voting rights equal to (x) 0.019607 multiplied by the total issued and outstanding shares of Common Stock eligible to vote at the time of the respective vote (the "Numerator"), divided by (y) 0.49, minus (z) the Numerator. For purposes of illustration only, if the total issued and outstanding shares of Common Stock eligible to vote at the time of the respective vote is 5,000,000, the voting rights of one share of the Series A Preferred Stock shall be equal to 102,036 (0.019607 x 5,000,000) / 0.49) - (0.019607 x 5,000,000) = 102,036). On December 23, the 51 shares were issued to Mr. Yazbeck, the Company's sole officer and the sole member of the Board. Mr. Yazbeck, via his ownership of the 51 shares of the Series A Preferred, has control of the majority of the Company's voting stock. | ||||||
Preferred stock, shares issued | 51 | 51 | |||||
Preferred stock, shares outstanding | 51 | 51 | |||||
Preferred stock designated | 51 | 51 | |||||
Series B Preferred Stock [Member] | |||||||
Stockholders' Deficit (Textual) | |||||||
Stock description of transaction | The Series B Preferred is convertible into shares of Common Stock at a conversion price of $0.0001. Holders of the Series B Preferred are entitled to receive dividends annually equal to $0.10 for each share of Series B Preferred held. In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company, the holders of Series B Preferred then outstanding shall be entitled to be paid out of the assets of the Company available for distribution to its stockholders, before any payment shall be made to the holders of Common Stock. Until such time as there are fewer than 20,000 shares of Series B Preferred outstanding, the Company needs to obtain the majority votes of the holders of Series B Preferred with regard to certain actions. Holders of Series B Preferred shares are entitled to one vote for each share held, are entitled to elect up to two members to the Board, and, absent such election, are provided certain voting and veto rights with regard to any vote by the Board. | ||||||
Series B Preferred Stock [Member] | Investors [Member] | |||||||
Stockholders' Deficit (Textual) | |||||||
Converted common stock, shares | 3,300 | ||||||
Securities Purchase Agreement [Member] | |||||||
Stockholders' Deficit (Textual) | |||||||
Sale of restricted shares | 25,000,000 | ||||||
Purchase price | $ 0.004 | ||||||
Sale of stock amount | $ 100,000 | ||||||
Securities Purchase Agreement [Member] | Investors [Member] | |||||||
Stockholders' Deficit (Textual) | |||||||
Sale of restricted shares | 25,000,000 | ||||||
Purchase price | $ 0.006 | ||||||
Sale of stock amount | $ 150,000 | ||||||
2015 Equity Incentive Plan [Member] | |||||||
Stockholders' Deficit (Textual) | |||||||
Reserved shares of common stock | 6,200,000 | ||||||
Percentage of voting interests acquired | 10.00% | ||||||
Options expiration, description | The options generally expire ten years from the date of grant. ISOs granted to a participant who, at the time the ISO is granted, has more than 10% of the voting power between all classes of stock, will expire five years from the date of grant. | ||||||
Unrecognized compensation expense | $ 1,525 | ||||||
Weighted average recognition period | 8 months 12 days | ||||||
Option purchase of common shares | 1,496,250 | ||||||
Employee and non-employee stock-based compensation expense | $ 11,909 | $ 378,597 | |||||
Aggregate intrinsic value of options exercised value | $ 0 | $ 0 | |||||
2017 Equity Incentive Plan [Member] | |||||||
Stockholders' Deficit (Textual) | |||||||
Option purchase of common shares | 150,000,000 | ||||||
Common stock [Member] | |||||||
Stockholders' Deficit (Textual) | |||||||
Common stock, shares authorized | 10,000,000,000 | ||||||
Shares of common stock in exchange for services | 143,977,273 | 16,654,214 | |||||
Shares of common stock in exchange for services fair value | $ 668,695 | $ 378,345 | |||||
Common stock [Member] | Investors [Member] | |||||||
Stockholders' Deficit (Textual) | |||||||
Converted common stock, shares | 33,000,000 | ||||||
Blank Check Preferred Stock [Member] | |||||||
Stockholders' Deficit (Textual) | |||||||
Preferred stock, par value | $ 0.001 | ||||||
Authorize for issuance of shares of blank check preferred stock | 10,000,000 | ||||||
Common stock warrants [Member] | |||||||
Stockholders' Deficit (Textual) | |||||||
Warrants to purchase shares of common stock | 260,345,149 | ||||||
Settlement Agreement [Member] | |||||||
Stockholders' Deficit (Textual) | |||||||
Stock description of transaction | Under the terms of the Yazbeck Settlement, Yazbeck agreed to forgo and release any claims against the Company under that certain Employment Agreement, by and between Yazbeck and the Company, dated October 15, 2014 (the "Employment Agreement") in exchange for (1) the issuance of fifty-one (51) shares of the Company's Series A Preferred Stock (defined below); (2) the issuance of three hundred thousand (300,000) shares of the Company's Series B Preferred Stock (defined below); (3) a warrant for fifteen percent (15%) of the common shares of the Company issued and outstanding as of January 3, 2017, at an exercise price of $0.001 per share, with an expiration date of January 3, 2019; and (4) the issuance of thirty million (30,000,000) shares of the Company's restricted common stock. | ||||||
Aggregate principal amount | $ 321,000 | ||||||
CDx's [Member] | |||||||
Stockholders' Deficit (Textual) | |||||||
Warrants converted into the right to receive share of company common stock | 1 | ||||||
Common stock, par value | $ 0.001 | ||||||
Warrants issued shares of common stock | 6,069,960 | ||||||
Warrants outstanding shares of common stock | 7,571,395 | ||||||
Retained shares of common stock | 1,990,637 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | Nov. 03, 2017 | Mar. 15, 2017 | Mar. 01, 2017 | Feb. 08, 2017 | Oct. 04, 2016 | Apr. 05, 2016 | Jun. 16, 2017 | Feb. 17, 2017 | Sep. 01, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Commitments and Contingencies (Textual) | |||||||||||||
Distribution and license agreement term | 10 years | ||||||||||||
Royalty percentage | 7.00% | ||||||||||||
Gain on extinguishment of debt | $ (599,735) | ||||||||||||
Initial payment of shares issued | 500,000 | ||||||||||||
Gain on forfeiture of technology transfer deposit | $ 135,000 | ||||||||||||
License Agreement [Member] | |||||||||||||
Commitments and Contingencies (Textual) | |||||||||||||
Distribution and license agreement term | 3 years | ||||||||||||
License agreement, description | On June 12, 2017, MyDx, Inc. (the “Company” or “Licensor”) entered into a license and services agreement (the “License Agreement”) with Black Swan, LLC (the “Licensee”). The Licensor agrees to grant to the Licensee the Access License which shall consist of: (a) access to the Database to enable Licensee to engage in formulation queries regarding the effects of having different amounts of terpene or other chemicals in cannabis strains; (b) access to the Database’s chemical profile library and related definitions; (c) access to a list with the contact information and fee schedule of cannabis extractors with state licenses so that Licensee can submit the formulation query results to such licensed cannabis extractors. Such licensed extractor list may change and Licensor shall have no obligation to provide Licensee with an updated list; and (d) access to the CannaDxTM mobile application to track feedback and reviews by up to 20,000 users of Licensee’s products. | ||||||||||||
Product Services, description | The Licensor will provide the Product Services which shall consist of: (1) Licensor providing annual MyDx360 SAAS Premium Subscription at a cost of $15,000 per annum (2) Licensor providing 6,000 Cartridges every six months to the Licensee at a cost of $2.49 per Cartridge ($14,940 in total every six months). It shall be a requirement of this Agreement that Licensee order 6,000 Cartridges from Licensor every six months; (3) Licensor providing 1,000 Eco Smart Pens to the Licensee, when available, over the three-year term of this Agreement at a cost of $25 per Eco Smart Pen ($25,000 in total); and (4) Licensor providing 6,000 batteries to the Licensee over the three-year term of this Agreement at a cost of $3.99 per battery ($23,940 in total). The term of this Agreement shall be three (3) years. Licensor shall have the right, in its sole discretion, to terminate this Agreement if Licensee does not order and pay for at least 6,000 Cartridges every six months at a cost of $2.49 per Cartridge ($14,940 in total every six months). | ||||||||||||
Resale Licensing Agreement [Member] | |||||||||||||
Commitments and Contingencies (Textual) | |||||||||||||
Purchase and resale of units | 10,000 | ||||||||||||
Phylos Bioscience, Inc [Member] | |||||||||||||
Commitments and Contingencies (Textual) | |||||||||||||
Term of lease | 5 years | ||||||||||||
TRD [Member] | |||||||||||||
Commitments and Contingencies (Textual) | |||||||||||||
Three year budget amount | $ 280,371 | ||||||||||||
TRD Invention term | 3 years | ||||||||||||
Debt instrument, description | The RD Agreement allows MyDx to fund research based on the TRD Inventions with a three year budget of $280,371 and a deferred payment of $75,000 within ninety days of the Effective Date. | ||||||||||||
Debt instrument periodic payment | $ 75,000 | ||||||||||||
Mydx, Inc. [Member] | |||||||||||||
Commitments and Contingencies (Textual) | |||||||||||||
Debt instrument periodic payment | $ 25,000 | $ 50,000 | |||||||||||
Percentage of beneficial ownership | 4.99% | 4.99% | |||||||||||
Initial payment of shares issued | 75,000,000 | 75,000,000 | |||||||||||
License and Distribution Agreement [Member] | Phase One [Member] | |||||||||||||
Commitments and Contingencies (Textual) | |||||||||||||
Licensing and technology transfer fee | $ 45,000 | ||||||||||||
Joint Developer [Member] | |||||||||||||
Commitments and Contingencies (Textual) | |||||||||||||
Development costs | $ 200,000 | $ 227,500 | |||||||||||
Marketing and Advertising Advisory Services Agreement [Member] | |||||||||||||
Commitments and Contingencies (Textual) | |||||||||||||
Monthly service fee | $ 30,000 | ||||||||||||
Percentage of conversion units of discount | 50.00% | ||||||||||||
Common stock trading days | 15 days | ||||||||||||
Libre Design, LLC [Member] | Mydx, Inc. [Member] | |||||||||||||
Commitments and Contingencies (Textual) | |||||||||||||
Deferred compensation arrangements overall description | The Company agreed to pay deferred cash compensation as follows of three thousand dollars ($3,000) upon execution and one thousand five hundred dollars ($1,500) per month for a subsequent eleven (11) payments thereafter on or before the first (1st) of each month. In addition, Agency is entitled to receive sixty seven million shares of restricted common stock at a closing market price equal to $0.0011. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | ||
Federal | ||
State | 800 | 800 |
Current federal and state, tax expense (benefit) | 800 | 800 |
Deferred: | ||
Federal | ||
State | ||
Deferred federal and state, tax expense (benefit) | ||
Total provision for (benefit from) income taxes | $ 800 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred Tax Assets: | ||
Net operating loss carryforwards | $ 3,551,327 | $ 4,824,505 |
Research and development credits | 144,305 | 151,303 |
Accruals, reserves and other | 59,006 | 14,037 |
Depreciation and amortization | ||
Stock-based compensation | 628,289 | 460,201 |
Total deferred tax asset | 4,382,538 | 5,450,046 |
Valuation allowance | (4,376,733) | (5,445,149) |
Deferred tax liabilities | ||
Depreciation and amortization | (6,194) | (4,897) |
Net deferred tax assets |
Income Taxes (Details 2)
Income Taxes (Details 2) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||
Statutory federal tax rate | 21.00% | 34.00% |
State taxes, net of federal benefit | 6.32% | 0.00% |
Valuation allowance | (21.99%) | (25.11%) |
Other | 5.33% | 8.89% |
Provision for income taxes | 0.00% | 0.00% |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |
Dec. 22, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Abstract] | |||
Valuation allowance increased | $ 1,100,000 | $ 1,600,000 | |
Federal net operating loss carryforwards | 13,000,000 | ||
State net operating loss carryforwards | 12,100,000 | ||
Research & development (R&D) credits carryforward, Federal | 89,700 | ||
Research & development (R&D) credits carryforward, California | $ 96,400 | ||
Description on effective income tax rate | The Tax Cuts and Jobs Act pf 2017 (the "Act") was signed into law making significant changes to the Internal Revenue Code of 1986, as amended (the "Code"). The Act reduces the federal corporate income tax rate from 35% to 21% effective for tax years beginning after December 31, 2017. | State net operating loss carryforwards available to reduce future taxable income which will begin to expire in 2033 for both federal and state purposes. | |
Description on tax carryforward | The Act also provides for immediate expensing of 100% or the costs of qualified property that is incurred and placed in service during the period from September 27, 2017 to December 31, 2022. Beginning January 1, 2023, the immediate expensing provision is phased down by 20% per year until it is completely phased out as of January 1, 2027. | The federal R&D credits carryforward will begin to expire in 2034. |
Subsequent Events (Details)
Subsequent Events (Details) | 1 Months Ended |
Jan. 26, 2018 | |
Subsequent Events [Member] | |
Subsequent Events (Textual) | |
Option to acquire for formulations percentage | 50.00% |