Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Oct. 03, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | MyDx, Inc. | |
Entity Central Index Key | 0001582341 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2019 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Transition Period | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 4,814,093,774 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Incorporation State Country Code | NV | |
Entity File Number | 000-55596 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash | $ 103,537 | $ 102,698 |
Accounts receivable, net | ||
Inventory | 208,687 | 114,031 |
Total current assets | 312,224 | 216,729 |
Tooling in process | 173,854 | 173,854 |
Property and equipment, net | 14,362 | 26,748 |
Other assets | 13,983 | 18,983 |
Total assets | 514,423 | 436,314 |
Current liabilities: | ||
Accounts payable | 1,039,542 | 1,101,853 |
Customer deposits | 215,952 | 69,330 |
Accrued liabilities | 736,164 | 692,071 |
Leases payable | 2,756 | 2,756 |
Due to related party | 1,075 | 1,075 |
Convertible notes payable, net of debt discount | 661,439 | 436,177 |
Derivative liability | 1,352,547 | 1,222,186 |
Preferred shares liability | 2,850,401 | 2,850,401 |
Warrant liability | 2,165,282 | 6,267,426 |
Total current liabilities | 9,025,157 | 12,643,275 |
Total liabilities | 9,025,157 | 12,643,275 |
Redeemable Series B Preferred stock, $0.001 par value; 10,000,000 shares authorized 107,000 and 107,000 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively | 2,033,000 | 2,033,000 |
Commitments and contingencies | ||
Stockholders' deficit: | ||
Series A Preferred stock, $0.001 par value; 51 shares authorized 51 and 51 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively | ||
Common stock, $0.001 par value, 10,000,000,000 shares authorized; 4,435,372,829 and 3,905,200,946 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively | 4,435,372 | 3,905,201 |
Additional paid-in capital | 22,746,911 | 21,820,069 |
Accumulated deficit | (37,726,017) | (39,965,231) |
Total stockholders' deficit | (10,543,734) | (14,239,961) |
Total liabilities and stockholders' deficit | $ 514,423 | $ 436,314 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 10,000,000,000 | 10,000,000,000 |
Common stock, shares issued | 4,435,372,829 | 3,905,200,946 |
Common stock, shares outstanding | 4,435,372,829 | 3,905,200,946 |
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 | 107,000 | 107,000 |
Preferred stock, shares outstanding | 107,000 | 107,000 |
Series A Preferred stock | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 51 | 51 |
Preferred stock, shares issued | 51 | 51 |
Preferred stock, shares outstanding | 51 | 51 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Sales | ||||
Product revenue | $ 84,061 | $ 1,251 | $ 150,905 | |
Product service revenue | 6,122 | 288 | 11,577 | |
Licensing revenue | 867 | 3,641 | 867 | 7,771 |
Total sales | 867 | 93,824 | 2,406 | 170,253 |
Cost of goods sold | ||||
Product costs | 10,630 | 35,762 | 27,513 | 62,100 |
Total cost of sales | 10,630 | 35,762 | 27,513 | 62,100 |
Gross profit | (9,763) | 58,062 | (25,107) | 108,153 |
Operating Expenses | ||||
Research and development | 12,251 | 39,218 | 26,184 | 272,308 |
Sales and marketing | 10,123 | 58,872 | 64,413 | 111,125 |
General and administrative | 105,968 | 312,282 | 532,890 | 557,929 |
Total operating expenses | 128,342 | 410,372 | 623,487 | 941,362 |
Loss from operations | (138,105) | (352,310) | (648,595) | (833,209) |
Other income (expense) | ||||
Interest expense, net | (326,905) | (7,951) | (473,259) | (16,702) |
Change in fair value of derivative liability | (46,442) | (327,117) | 88,802 | 1,191,940 |
Change in fair value of warrant liability | 2,603,135 | 3,419,105 | ||
Derivative expense | (18,092) | (127,513) | (18,092) | (281,515) |
Gain (loss) on settlement of debt | 4,500 | |||
Gain (loss) on extinguishment of debt | (19,536) | 4,581 | (19,535) | 4,581 |
Loss on settlement of vendor liability | (109,212) | (109,212) | ||
Total Other income (expense) | 2,082,948 | (458,000) | 2,887,809 | 902,804 |
Income (Loss) before provision for income taxes | 1,944,843 | (810,310) | 2,239,214 | 69,595 |
Provision for income taxes | ||||
Net income (loss) | 1,944,843 | (810,310) | 2,239,214 | 69,595 |
Dividends | (10,700) | (21,400) | ||
Net income (loss) attributable to common shareholders | $ 1,934,143 | $ (810,310) | $ 2,217,814 | $ 69,595 |
Income (loss) per share | ||||
Basic | $ 0 | $ 0 | $ 0 | $ 0 |
Diluted | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted average common shares outstanding - basic | 4,261,863,744 | 3,007,985,341 | 4,151,099,739 | 2,452,630,014 |
Weighted average common shares outstanding - diluted | 8,711,025,440 | 3,007,985,341 | 8,600,261,434 | 3,999,109,821 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Deficit - USD ($) | Convertible Preferred Stock Series A | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total |
Balance at Dec. 31, 2017 | $ 1,859,397 | $ 19,818,536 | $ (31,632,972) | $ (9,955,039) | |
Balance, Shares at Dec. 31, 2017 | 51 | 1,859,397,541 | |||
Loss on Settlement of vendor liabilities | $ 5,000 | 20,500 | 25,500 | ||
Loss on Settlement of vendor liabilities, shares | 5,000,000 | ||||
Issuance of common stock for services rendered | $ 57,500 | 188,250 | 245,750 | ||
Issuance of common stock for services rendered, Shares | 57,500,000 | ||||
Conversion of Series B to common | $ 1,897,000 | 1,707,300 | 3,604,300 | ||
Conversion of Series B to common, shares | 1,897,000,000 | ||||
Conversion of notes to equity | $ 26,087 | 88,696 | 114,783 | ||
Conversion of notes to equity, shares | 26,086,956 | ||||
Issuance of common stock for prepaid services | $ 4,286 | 9,000 | 13,286 | ||
Issuance of common stock for prepaid services, shares | 4,285,714 | ||||
Stock based compensation | 1,971 | 1,971 | |||
Net income | 69,595 | 69,595 | |||
Balance at Jun. 30, 2018 | $ 3,849,270 | 21,834,253 | (31,563,378) | (5,069,546) | |
Balance, Shares at Jun. 30, 2018 | 51 | 3,849,270,211 | |||
Balance at Mar. 31, 2018 | $ 1,894,397 | 19,961,007 | (30,753,068) | (8,897,664) | |
Balance, Shares at Mar. 31, 2018 | 51 | 1,894,397,541 | |||
Issuance of common stock for services rendered | $ 27,500 | 68,250 | 95,750 | ||
Issuance of common stock for services rendered, Shares | 27,500,000 | ||||
Conversion of Series B to common | $ 1,897,000 | 1,707,300 | 3,604,300 | ||
Conversion of Series B to common, shares | 1,897,000,000 | ||||
Conversion of notes to equity | $ 26,087 | 88,696 | 114,783 | ||
Conversion of notes to equity, shares | 26,086,956 | ||||
Net income | (810,310) | (810,310) | |||
Balance at Jun. 30, 2018 | $ 3,849,270 | 21,834,253 | (31,563,378) | (5,069,546) | |
Balance, Shares at Jun. 30, 2018 | 51 | 3,849,270,211 | |||
Balance at Dec. 31, 2018 | $ 3,905,201 | 21,820,069 | (39,965,231) | (14,239,961) | |
Balance, Shares at Dec. 31, 2018 | 51 | 3,905,200,946 | |||
Issuance of common stock upon cashless exercise of warrants | $ 165,546 | 680,336 | 845,882 | ||
Issuance of common stock upon cashless exercise of warrants, shares | 165,546,562 | ||||
Common stock issued to settle vendor liabilities | $ 150,000 | 120,000 | 270,000 | ||
Common stock issued to settle vendor liabilities, shares | 150,000,000 | ||||
Common stock issued upon conversion of convertible notes | $ 214,625 | 126,506 | 341,131 | ||
Common stock issued upon conversion of convertible notes, shares | 214,625,321 | ||||
Net income | 2,239,214 | 2,239,214 | |||
Balance at Jun. 30, 2019 | $ 4,435,372 | 22,746,911 | 37,726,016 | (10,543,734) | |
Balance, Shares at Jun. 30, 2019 | 51 | 4,435,372,829 | |||
Balance at Mar. 31, 2019 | $ 4,070,747 | 22,500,405 | (39,670,860) | (13,099,708) | |
Balance, Shares at Mar. 31, 2019 | 51 | 4,070,747,508 | |||
Issuance of common stock for services rendered | $ 150,000 | 120,000 | 270,000 | ||
Issuance of common stock for services rendered, Shares | 150,000,000 | ||||
Shares Issued for Conversion of Debt | $ 214,625 | 126,506 | 341,131 | ||
Shares Issued for Conversion of Debt, shares | 214,625,321 | ||||
Net income | 1,944,843 | 1,944,843 | |||
Balance at Jun. 30, 2019 | $ 4,435,372 | $ 22,746,911 | $ 37,726,016 | $ (10,543,734) | |
Balance, Shares at Jun. 30, 2019 | 51 | 4,435,372,829 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 2,239,214 | $ 69,595 |
Adjustments to reconcile net income to net cash (used in) operating activties: | ||
Depreciation and amortization | 12,386 | 33,994 |
Common stock issued for services | 245,750 | |
Change in fair value of derivative liability | (88,802) | (1,191,940) |
Change in fair value of warrant liability | (3,419,105) | |
Principal Increase Upon Default | 38,900 | |
Derivative expense | 18,092 | 281,515 |
(Gain) / Loss on settlement of vendor liabilities | 109,212 | (4,500) |
Stock based compensation | 162,844 | 1,971 |
Loss on extinguishment of debt | 19,535 | (4,581) |
Interest expense related to amortization of debt issuance costs and debt discount | 345,351 | |
Changes in assets and liabilities: | ||
Inventory | (94,656) | 18,178 |
Prepaid expenses and other assets | 5,000 | 33,227 |
Accounts payable and accrued liabilities | 151,247 | 492,284 |
Customer deposits | 146,622 | 2,680 |
Net cash provided by (used in) operating activities | (354,160) | (38,285) |
Cash flows from investing activities: | ||
Tooling in process | (173,854) | |
Net cash used in financing activities | (173,854) | |
Cash flows from financing activities: | ||
Proceeds from due to - related party | 105,000 | |
Proceeds from the issuance of convertible notes payable, net of issuance costs | 355,000 | 30,000 |
Net cash provided by financing activities | 355,000 | 135,000 |
Net change in cash | 839 | (77,139) |
Cash, beginning of period | 102,698 | 119,028 |
Cash, end of period | 103,537 | 41,889 |
Supplemental cash flow information: | ||
Interest paid | ||
Taxes paid | ||
Supplemental disclosure of non-cash investing and financing activities: | ||
Settlement of debt with convertible note | 60,000 | |
Stock issued for settlement of vendor liabilities | 160,788 | 25,500 |
Conversion of convertible debt and derivatives to common stock | 321,596 | 114,783 |
Conversion of convertible preferred stock to common stock | 3,604,300 | |
Reclassification of warrant liability to additional paid-in capital upon Exercise of warrant | $ 845,883 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [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 | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [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 | 6 Months Ended |
Jun. 30, 2019 | |
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 condensed 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 condensed consolidated Financial Statements, the Company had an accumulated deficit at June 30, 2019 and a net cash used in operating activities for the six months ended June 30, 2019. These factors raise substantial doubt about the Company's ability to continue as a going concern for a period of one year from the issuance of these financial statements. 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 six months ended June 30, 2019. 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 $103,537 at June 30, 2019 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 condensed 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 | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 4. Summary of Significant Accounting Policies Basis of Presentation - Unaudited Interim Financial Information The accompanying unaudited interim condensed consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information, and in accordance with the rules and regulations of the United States Securities and Exchange Commission (the "SEC") with respect to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim condensed consolidated financial statements furnished reflect all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company's annual report on Form 10-K for the year ended December 31, 2018. 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 condensed 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 condensed 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 June 30, 2019 and December 31, 2018, 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 June 30, 2019 and December 31, 2018, there was an allowance for doubtful accounts of $27,851 and $27,851 respectively. During the six months ended June 30, 2019 the Company recorded a bad debt expense of $0. 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. Revenue Recognition The Company adopted ASC 606 effective January 1, 2018 using the modified retrospective method which would require a cumulative effect adjustment for initially applying the new revenue standard as an adjustment to the opening balance of retained earnings and the comparative information would not require to be restated and continue to be reported under the accounting standards in effect for those periods. Based on the Company's analysis the Company did not identify a cumulative effect adjustment for initially applying the new revenue standards. The Company principally generates revenue through providing product, services and licensing revenue The adoption of ASC 606 represents a change in accounting principle that will more closely align revenue recognition with the delivery of the Company's services and will provide financial statement readers with enhanced disclosures. In accordance with ASC 606, revenue is recognized when a customer obtains control of promised services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these services. To achieve this core principle, the Company applies the following five steps: 1) Identify the contract with a customer A contract with a customer exists when (i) the Company enters into an enforceable contract with a customer that defines each party's rights regarding the services to be transferred and identifies the payment terms related to these services, (ii) the contract has commercial substance and, (iii) the Company determines that collection of substantially all consideration for services that are transferred is probable based on the customer's intent and ability to pay the promised consideration. The Company applies judgment in determining the customer's ability and intention to pay, which is based on a variety of factors including the customer's historical payment experience or, in the case of a new customer, published credit and financial information pertaining to the customer. 2) Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the services is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised services, the Company must apply judgment to determine whether promised services are capable of being distinct and distinct in the context of the contract. If these criteria are not met the promised services are accounted for as a combined performance obligation. 3) Determine the transaction price The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring services to the customer. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending on the nature of the variable consideration. Variable consideration is included in the transaction price if, in the Company's judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. None of the Company's contracts as of December 31, 2018 contained a significant financing component. Determining the transaction price requires significant judgment, which is discussed by revenue category in further detail below. 4) Allocate the transaction price to performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. However, if a series of distinct services that are substantially the same qualifies as a single performance obligation in a contract with variable consideration, the Company must determine if the variable consideration is attributable to the entire contract or to a specific part of the contract. For example, a bonus or penalty may be associated with one or more, but not all, distinct services promised in a series of distinct services that forms part of a single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price basis unless the transaction price is variable and meets the criteria to be allocated entirely to a performance obligation or to a distinct service that forms part of a single performance obligation. The Company determines standalone selling price based on the price at which the performance obligation is sold separately. If the standalone selling price is not observable through past transactions, the Company estimates the standalone selling price taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations. 5) Recognize revenue when or as the Company satisfies a performance obligation The Company satisfies performance obligations either over time or at a point in time. Revenue is recognized at the time the related performance obligation is satisfied by transferring a promised service to a customer. Three Months ended June 30, 2019 Three Months ended June 30, 2018 United States International Total United States International Total Product Revenue - - - 36,945 47,116 84,061 Product Service Revenue - - - 3,449 2,673 6,122 Licensing Revenue 867 - 867 3,641 - 3,641 867 - 867 44,035 49,789 93,824 Six Months ended June 30, 2019 Six Months ended June 30, 2018 United States International Total United States International Total Product Revenue 494 757 1,251 76,611 74,294 150,905 Product Service Revenue 288 - 288 6,917 4,660 11,577 Licensing Revenue 867 - 867 7,771 - 7,771 1,649 757 2,406 91,299 78,954 170,253 Product revenue 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 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 six months ended June 30, 2019 and 2018 were $ 26,184 and $272,308, 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 $64,413 and $111,125 for the six months ended June 30, 2019 and 2018, respectively. Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC Topic 718, " Compensation – Stock Compensation" 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. Earnings 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. The following table provides a reconciliation of the numerator and denominator used in computing basic and diluted net income (loss) attributable to common stockholders per common share. For the Three Months Ended For the Six Months Ended June 30, June 30, June 30, June 30, 2019 2018 2019 2018 Numerator: Net income/(loss) attributable to common stockholders $ 1,944,843 $ (810,310 ) $ 2,239,213 $ 69,595 Effect of dilutive securities: Convertible note - Interest expense 63,629 - 83,870 - Net Change in warrant liability (2,603,135 ) (3,419,105 ) Net change in derivative liabilities - convertible payables 46,442 - (88,802 ) - Diluted net income (loss) $ (548,221 ) $ (810,310 ) $ (1,184,824 ) $ 69,595 Denominator: Weighted average common shares outstanding - basic 4,261,863,744 3,007,985,341 4,151,099,739 2,452,630,014 Dilutive securities (a): Series A Preferred stock 51 - 51 51 Series B Preferred stock 1,070,000,000 - 1,070,000,000 1,070,000,000 Convertible notes payable 1,628,303,534 - 1,628,303,534 - Convertible accounts payable 660,000,000 - 660,000,000 379,889,803 Options - - - - Warrants 721,723,282 - 721,723,282 96,589,953 Weighted average common shares outstanding and assumed conversion - diluted 8,341,890,611 3,007,985,341 8,231,126,605 3,999,109,821 Basic net income (loss) per common share $ 0.00 $ (0.00 ) $ 0.00 $ 0.00 Diluted net income (loss) per common share $ (0.00 ) $ (0.00 ) $ (0.00 ) $ 0.00 (a) - Anti-dilutive options excluded: 4,449,161,696 1,700,463,104 4,449,161,696 153,983,297 The Company had the following common stock equivalents at June 30, 2019 and 2018: June 30, June 30, Series A Preferred stock 51 51 Series B Preferred stock 1,070,000,000 1,070,000,000 Convertible notes payable 1,628,303,534 144,915,652 Convertible accounts payable 660,000,000 379,889,803 Options - 1,496,250 Warrants 2,621,460,806 104,161,788 Totals 5,979,764,391 1,700,463,053 Recent Accounting Guidance Adopted In February 2016, the FASB issued ASU 2016-02 " Leases" On January 1, 2019, the Company adopted ASC 842 using the modified retrospective approach. Results for the three months ended March 31, 2019 are presented under ASC 842, while prior period amounts were not adjusted and continue to be reported in accordance with the legacy accounting guidance under ASC Topic 840, Leases As part of the adoption we elected the practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to: 1. Continue applying our current policy for accounting for land easements that existed as of, or expired before, January 1, 2019. 2. Not separate non-lease components from lease components and instead to account for each separate lease component and the non-lease components associated with that lease component as a single lease component. 3. Not to apply the recognition requirements in ASC 842 to short-term leases. 4. Not record a right of use asset or right of use liability for leases with an asset or liability balance that would be considered immaterial. |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | 5. Inventory Inventory as of June 30, 2019 and June 30, 2018 is as follows: June 30, December 31, 2019 2018 Finished goods $ - $ 9,781 Raw materials 208,687 104,250 $ 208,687 $ 114,031 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 6. Debt Convertible Notes The following table shows the outstanding balance as of June 30, 2019 and June 30, 2018 respectively. June 30, December 31, 2019 2018 Convertible Note - February 6, 2017 265,750 265,750 Convertible Note - July 23, 2018 25,000 25,000 Convertible Note – October 1, 2018 - 74,800 Convertible Note – October 4, 2018 30,000 73,500 Convertible Note – October 11, 2018 233,500 283,500 Convertible Note – December 19, 2018 82,000 82,000 Convertible Note – March 7, 2019 210,000 - Convertible Note –May 2, 2019 63,945 - Convertible Note – May 7, 2019 100,000 - 1,010,195 804,550 Less: Debt Discount (348,756 ) (368,373 ) Total $ 661,439 $ 436,177 Amendment 2 On December 27, 2017 the Company, Hasfer, Inc. and Legacy, entered into an amendment to the note. The note was modified as follows: ● A portion of the outstanding principal and interest was assigned to Legacy. ● The company received proceeds of $48,500. ● Fees related to the amendment totaled $1,500. The fees were recorded as a loss on extinguishment of debt. All remaining terms of the Revolving note remained the same. In accordance with ASC 470, since the present value of the cash flows under the new debt instrument was at least ten percent different from the present value of the remaining cash flows under the terms of the original debt instrument, the Company accounted for the amendment to SPA as a debt extinguishment. Accordingly, the Company recorded a loss on extinguishment of debt of $155,086. During the year ended December 31, 2017 Hasfer converted $236,250 of the outstanding principal into 99,891,304 share of the company's common stock. As of December 31, 2017 and 2016 the balance of this agreement was $295,750 and $0 respectively. During the year ended December 31, 2018 Hasfer, Inc and Carte Blanche, LLC entered into a note purchase agreement. Hasfer assigned $60,000 to Carte Blanche, LLC. The Company received additional proceeds of $30,000. During the year ended December 31, 2018 the lenders converted $60,000 of the outstanding principal into 26,086,956 shares of the Company's common stock. On July 23, 2018 the Company issued convertible notes to third party lenders totaling $25,000. These notes accrue interest at a rate of 12% per annum and mature with interest and principal due July 23, 2019. The note and accrued interest are convertible at a conversion price equal to a 30% discount of the Company's common stock prior day close price. Due to the fact that these convertible notes have an option to convert at a variable amount, they are subject to derivative liability treatment. The Company has applied ASC 815, due to the potential for settlement in a variable quantity of shares. The conversion feature has been measured at fair value using a Binomial Option Pricing model at the issuance date and the period end. The conversion feature of the convertible note gave rise to a derivative liability of $19,070 which was recorded as a debt discount. The debt discount is charged to other expense ratably over the term of the convertible note Geneva Securities Purchase Agreement Effective October 1, 2018, the Company entered into a securities purchase agreement (the "Geneva Purchase Agreement") with Geneva Roth Remark Holdings, Inc., ("Geneva"), pursuant to which Geneva purchased a 10% unsecured convertible promissory note (the "Geneva Note") from the Company in the aggregate principal amount of $74,800, such principal and the interest thereon convertible into shares of the Company's common stock at the option of Geneva. The purchase price of $74,800 of the Geneva Note was paid in cash by Geneva on October 2, 2018. After payment of transaction-related expenses, net proceeds to the Company from the Geneva Note totaled $65,000. The maturity date of the Geneva Note is October 1, 2019 (the "Geneva Maturity Date"). The Geneva Note shall bear interest at a rate of ten percent (10%) per annum (the "Geneva Interest Rate"), which interest shall be paid by the Company to Geneva in shares of common stock at any time Geneva sends a notice of conversion to the Company. Geneva is entitled to, at its option, convert all or any amount of the principal face amount and any accrued but unpaid interest of the Geneva Note into shares of the Company's common stock, at any time after March 20, 2019, at a conversion price for each share of common stock equal to 71% multiplied by the average of the lowest three (3) trading prices (as defined in the Geneva Purchase Agreement) for the common stock during the fifteen (15) Trading Day period (as defined in the Geneva Purchase Agreement) ending on the latest complete trading day prior to the conversion date. The Geneva Note may be prepaid until 170 days from the issuance date in accordance with its terms. The Company shall reserve 270,905,432 of its authorized and unissued common stock (the "Geneva Reserved Amount"), free from preemptive rights, to provide for the issuance of Common Stock upon the full conversion of the Geneva Note. During the six months ended June 30, 2019 the Company went into default on the convertible note. Interest accrues at a rate of twenty-two percent (22%) per annum during the time that the convertible note is in default. The company recorded an interest expense of $37,400 related to the default provisions in the agreement During the six months ended June 30, 2019 the lender converted $112,200 of the outstanding principal and $3,400 of the outstanding interest into 92,083,917 shares of the Company's common stock. GS Capital Securities Purchase Agreement Effective October 4, 2018 the Company entered into a securities purchase agreement (the "GSC Purchase Agreement") with GS Capital Partners LLC, ("GSC", and together with Geneva, the "Investors"), pursuant to which GSC purchased a 8% unsecured convertible promissory note from the Company in the aggregate principal amount of $75,000 (the "GSC Note"), such principal and the interest thereon convertible into shares of the Company's common stock at the option of GSC. The purchase price of $75,000 of the GSC Note was paid in cash by GSC on October 5, 2018. After payment of transaction-related expenses, net proceeds to the Company from the First GSC Note totaled $68,500. The maturity date of the GSC Note is October 4, 2019 (the "the GSC Maturity Date"). The GSC Note shall bear interest at a rate of eight percent (8%) per annum (the "GSC Interest Rate"), which interest shall be paid by the Company to GSC in shares of common stock at any time GSC sends a notice of conversion to the Company. GSC is entitled to, at its option, convert all or any amount of the principal face amount and any accrued but unpaid interest of the GSC Note into shares of the Company's common stock, at any time, at the conversion price specified in the for each share of common stock equal to 71% of the average of the three lowest closing bid prices of the common stock for the fifteen prior trading days including the day upon which a notice of conversion is received by the Company or its transfer agent. In connection with this note the Company recorded a $58,855 debt discount. The GSC Note may be prepaid until 180 days from the issuance date in accordance with its terms. The Company shall reserve 211,267,000 of its authorized and unissued common stock (the "GSC Reserved Amount"), free from preemptive rights, to provide for the issuance of Common Stock upon the full conversion of the GSC Note. During the six months ended June 30, 2019, the Company went into default on the convertible note. Interest accrues at a rate of twenty-four percent (24%) per annum during the time that the convertible note is in default. The company recorded an interest expense of $1,500. During the six months ended June 30, 2019, the lender converted $45,000 of the outstanding principal and $2,505 of the outstanding interest into 60,451,908 shares of the Company's common stock. Eagle and GSC Securities Purchase Agreements Effective October 11, 2018, the Company entered into a securities purchase agreement (the "Eagle Purchase Agreement") with Eagle Equities, LLC ("Eagle"), pursuant to which Eagle purchased an 8% unsecured convertible promissory note (the "Eagle Note") from the Company in the aggregate principal amount of $181,500, such principal and the interest thereon convertible into shares of the Company's common stock at the option of Eagle. Effective October 11, 2018 the Company entered into a securities purchase agreement (the "GSC Purchase Agreement" and together with the Eagle Purchase Agreement, the "SPAs") with GSC (together with Eagle, the "Investors"), pursuant to which GSC purchased an 8% unsecured convertible promissory note (the "GSC Note" and together with the Eagle Note, the "Notes") from the Company in the aggregate principal amount of $102,000, such principal and the interest thereon convertible into shares of the Company's common stock at the option of GSC. The purchase price of $181,500, and of $102,000, of the Eagle Note and the GSC Note, respectively, was paid in cash by the Investors on October 11, 2018. After payment of transaction-related expenses, net proceeds to the Company from the Eagle Note and the GSC Note totaled $157,000 and $90,000, respectively. The maturity date of the Notes is October 11, 2019 (the "Maturity Date"). The Notes shall bear interest at a rate of eight percent (8%) per annum (the "Interest Rate"), which interest shall be paid by the Company to the Investors in shares of common stock at any time Eagle or GSC sends a notice of conversion to the Company (the "Notice of Conversion"). The Investors are entitled to, at their option, convert all or any amount of the principal face amount and any accrued but unpaid interest of their respective Notes into shares of the Company's common stock, at any time, at a conversion price for each share of common stock equal to 65% of the average of the lowest three closing bid prices of the common stock as reported on the marketplace upon which the Company's shares are traded during the fifteen (15) trading day period ending on the day upon which a Notice of Conversion is received by the Company. In connection with this note, the Company recorded a $149,702 and $84,941 debt discounts. The Notes may be prepaid until 180 days from the issuance date in accordance with its terms. The Company shall reserve 532,000,000, and 299,000,000, of its authorized and unissued common stock free from preemptive rights, to provide for the issuance of Common Stock upon the full conversion of the Eagle Note (the "Eagle Reserved Amount"), and the GSC Note (the "GSC Reserved Amount" and together with the Eagle Reserved Amount, the "Total Reserved Amount"), respectively. During the six months ended June 30, 2019, the Company went into default on the convertible note. Interest accrues at a rate of twenty-four percent (24%) per annum during the time that the convertible note is in default. During the six months ended June 30, 2019, the lender converted $50,000 of the outstanding principal and $2,773 of the outstanding interest into 62,089,496 shares of the Company's common stock. Effective December 19, 2018 the Company entered into a securities purchase agreement (the "GSC Purchase Agreement") with GS Capital Partners LLC, ("GSC", and together with Geneva, the "Investors"), pursuant to which GSC purchased a 8% unsecured convertible promissory note from the Company in the aggregate principal amount of $82,000 (the "GSC Note"), such principal and the interest thereon convertible into shares of the Company's common stock at the option of GSC. The purchase price of $82,000 of the GSC Note was paid in cash by GSC on December 19, 2018. After payment of transaction-related expenses, net proceeds to the Company from the First GSC Note totaled $78,828. The maturity date of the GSC Note is December 19, 2019 (the "the GSC Maturity Date"). The GSC Note shall bear interest at a rate of eight percent (8%) per annum (the "GSC Interest Rate"), which interest shall be paid by the Company to GSC in shares of common stock at any time GSC sends a notice of conversion to the Company. GSC is entitled to, at its option, convert all or any amount of the principal face amount and any accrued but unpaid interest of the GSC Note into shares of the Company's common stock, at any time, at the conversion price specified in the for each share of common stock equal to 67% of the average of the three lowest closing bid prices of the common stock for the fifteen prior trading days including the day upon which a notice of conversion is received by the Company or its transfer agent. In connection with this note, the Company recorded a $76,000 debt discount. The GSC Note may be prepaid until 180 days from the issuance date in accordance with its terms. The Company shall reserve 211,267,000 of its authorized and unissued common stock (the "GSC Reserved Amount"), free from preemptive rights, to provide for the issuance of Common Stock upon the full conversion of the GSC Note. GS Capital Agreement Effective March 7, 2019 the Company entered into a securities purchase agreement with GS Capital Partners, pursuant to which GSC purchased a 8% unsecured convertible promissory note from the Company in aggregate principal amount of $210,000, such principal and interest thereon convertible into shares of the Company's common stock at the option of GSC. The purchase price of $210,000 of the GS Capital note was paid in cash by GS Capital on March 11, 2019. After payment of transaction-related expenses, net proceeds to the Company from the note totaled $200,000. The maturity date of the GS Capital note is March 7, 2020. The GS Capital Note shall bear interest at a rate of eight percent (8%) per annum which interest shall be paid by the Company to GS Capital in shares of common stock at any time GSC sends a notice of conversion to the Company. GSC is entitled to, at its option, convert all or any amount of the principal face amount and any accrued but unpaid interest of the GSC Note into shares of the Company's common stock, at any time, at the conversion price specified in the for each share of common stock equal to 65% of the average of the two lowest closing bid prices of the common stock for the fifteen prior trading days including the day upon which a notice of conversion is received by the Company or its transfer agent. In connection with this note, the Company recorded a $167,296 debt discount. During the six months ended June 30, 2019 the Company went into default on the convertible note. Interest accrues at a rate of twenty-four percent (24%) per annum during the time that the convertible note is in default. LG capital Agreement Effective May 2, 2019 the Company entered into a securities purchase agreement with LG Capital Funding, pursuant to which LG purchased a 8% unsecured convertible promissory note from the Company in aggregate principal amount of $63,945, such principal and interest thereon convertible into shares of the Company's common stock at the option of LG Capital. The purchase price of $63,945 of the LG capital note was paid in cash by LG capital on May 2, 2019. After payment of transaction-related expenses, net proceeds to the Company from the note totaled $60,000. The maturity date of the LG Capital note is May 2, 2020. The LG Capital Note shall bear interest at a rate of eight percent (8%) per annum which interest shall be paid by the Company to LG Capital in shares of common stock at any time LG sends a notice of conversion to the Company. LG is entitled to, at its option, convert all or any amount of the principal face amount and any accrued but unpaid interest of the LG Capital Note into shares of the Company's common stock, at any time, at the conversion price specified in the for each share of common stock equal to 65% of the average of the two lowest closing bid prices of the common stock for the fifteen prior trading days including the day upon which a notice of conversion is received by the Company or its transfer agent. In connection with this note, the Company recorded a $44,999 debt discount. During the six months ended June 30, 2019 the Company went into default on the convertible note. Interest accrues at a rate of twenty-four percent (24%) per annum during the time that the convertible note is in default. Odyssey capital Agreement Effective May 7, 2019 the Company entered into a securities purchase agreement with Odyssey Capital, pursuant to which Odyssey purchased a 12% unsecured convertible promissory note from the Company in aggregate principal amount of $100,000, such principal and interest thereon convertible into shares of the Company's common stock at the option of LG Capital. The purchase price of $100,000 of the Odyssey capital note was paid in cash by Odyssey capital on May 7, 2019. After payment of transaction-related expenses, net proceeds to the Company from the note totaled $95,000. The maturity date of the Odyssey Capital note is May 7, 2020. The Odyssey Capital Note shall bear interest at a rate of twelve percent (12%) per annum which interest shall be paid by the Company to Odyssey Capital in shares of common stock at any time Odyssey sends a notice of conversion to the Company. Odyssey is entitled to, at its option, convert all or any amount of the principal face amount and any accrued but unpaid interest of the Odyssey Capital Note into shares of the Company's common stock, at any time, at the conversion price specified in the for each share of common stock equal to 60% of the lowest closing bid prices of the common stock for the twenty prior trading days including the day upon which a notice of conversion is received by the Company or its transfer agent. In connection with this note, the Company recorded a $95,000 debt discount. During the six months ended June 30, 2019 the Company went into default on the convertible note. Interest accrues at a rate of twenty-four percent (24%) per annum during the time that the convertible note is in default. |
Derivative Liabilities
Derivative Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Liabilities | 7. Derivative Liabilities The Company has identified derivative instruments arising from embedded conversion features in the Company's convertible notes payable and accounts payable at June 30, 2019. The following summarizes the Binomial-lattice model 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 six months ended June 30, 2019. Low High Annual dividend rate 0 % 0 % Expected life in years 0 1.00 Risk-free interest rate 1.93 % 2.59 % Expected volatility 107 % 139 % 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 six months ended June 30, 2019. Six Months Ended June 30, 2019 Level 1 Level 2 Level 3 Derivative Liability as of January 1, 2019 1,222,186 Derivative expense 18,092 Additions 307,295 Conversions (106,224 ) Gain on changes in fair value (88,802 ) Derivative liabilities as of June 30, 2019 1,352,547 The following are the changes in the warrant liabilities during the six months ended June 30, 2019. Six Months Ended June 30, 2019 Level 1 Level 2 Level 3 Balance, January 1, 2019 $ - $ - $ 6,267,426 Change due to exercise of warrants (845,883 ) Gain on changes in fair value - - (3,419,105 ) Accretion of warrant expense 162,844 Warrant liabilities as June 30, 2019 $ - $ - $ 2,165,282 |
Stockholders' Deficit
Stockholders' Deficit | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Deficit | 8. Stockholders' Deficit 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 June 30, 2019, and December 31, 2018, 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, 2016 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. 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. On July 31, 2018, the Company agreed to eventually issue 38,272 shares of Series B Preferred at a value of $1.00 per Series B Preferred share to settle outstanding vendor liability. The shares of Series B Preferred will be issued upon an increase in the authorized shares of Series B Preferred. The Company also agreed to the assignment or issuance of three warrants giving the holder the right to purchase seven and one half percent (7.5%) of the Company's shares of Common Stock issued and outstanding at the time of exercise and having an exercise price of $0.001 per share. This form of warrant is referred to herein as the "7.5% Warrant." The Company agreed to the assignment of one previously issued 7.5% Warrant to an entity related to BCI Advisors. This 7.5% Warrant will expire on July 31, 2020. In addition, the Company also agreed to the assignment of another previously issued 7.5% Warrant to an entity related to BCI Advisors and agreed to extend the expiration date from March 1, 2019 to July 31, 2020. Finally, the Company agreed to issue a new 7.5% Warrant which will expire on July 31, 2020. On July 30, 2018, the Company agreed to eventually issue 45,355 shares of the Company's Series B Preferred at a value of $1.00 per Series B Preferred share to settle outstanding vendor liability. The Company also agreed to issue a 7.5% Warrant with an expiration date of August 1, 2022. During the nine months ended September 30, 2018 investors converted 189,700 Series B Preferred stock in to 1,897,000,000 shares of common stock. 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. On January 15, 2019, the Company issued 165,546,562 shares of common stock for a cashless exercise on warrants. On April 17, 2019, the Company issued 50,000,000 shares of its restricted common stock to settle outstanding vendor liabilities of $64,000. In connection with this transaction the Company also recorded a loss on settlement of vendor liabilities of $56,000. The fair value of the common stock based on the trading price of the stock on April 17, 2019 was $120,000. On May 13, 2019, the Company issued 100,000,000 shares of its restricted common stock to settle outstanding vendor liabilities of $96,788. In connection with this transaction the Company also recorded a loss on settlement of vendor liabilities of $53,212. The fair value of the common stock based on the trading price of the stock on May 13, 2019 was $150,000. During the six months ended June 30, 2019 the lenders converted $207,200 of the outstanding principal and $8,678 of the outstanding interest into 214,625,321 shares of the Company's common stock. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. 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 six months ended June 30, 2019, 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. 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. 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. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 10. Subsequent Events Effective August 1, 2019, Mr. Erai Beckman resigned from his position as a member of the Board of Directors of MyDx, Inc and Mr. Matthew Bucciero resigned from his position as Chief Executive Officer and Chief Financial Officer of the Company. Effective October 2, 2019, Mr. Daniel Yazbeck was appointed as the Company's interim Chief Executive Officer and interim Chief Financial Officer. From September 20, 2019 to September 24, 2019, the Company entered into a series of debt financing transactions to raise capital for the Company. Eagle Note On September 20, 2019, the Company entered into a Securities Purchase Agreement (the "Eagle Securities Purchase Agreement") dated September 18, 2019, with Eagle Equities, LLC ("Eagle") for the sale of an 8% Convertible Redeemable Note in the amount of $27,500 (the "Eagle Note"). Pursuant to the terms of the Eagle Securities Purchase Agreement, the Company issued the Eagle Note with a $2,500 original issue discount and paid Eagle's legal fees of $2,000 out of the proceeds of the Eagle Note. The Eagle Note bears interest at the rate of 8% per annum. All interest and principal must be repaid on September 18, 2020 (the "Eagle Note Maturity Date"). The Eagle Note is convertible into common stock at any time, at Eagle's option, at a price equal to 65% of the lowest closing bid price of the common stock during the fifteen trading days prior to conversion. The Eagle Note may not be prepaid more than 180 days prior to the Eagle Note Maturity Date. In the event the Company prepays the Eagle Note in full during the 180 days prior to the Eagle Note Maturity Date, the Company must pay off all principal, interest and any other amounts owing multiplied by a premium ranging from 5% to 30%. Odyssey Note On September 23, 2019, the Company entered into a Securities Purchase Agreement (the "Odyssey Securities Purchase Agreement") dated September 18, 2019, with Odyssey Capital Funding, LLC ("Odyssey") for the sale of a 12% Convertible Redeemable Note in the amount of $35,000 (the "Odyssey Note"). Pursuant to the terms of the Odyssey Securities Purchase Agreement, the Company paid Odyssey's legal fees of $2,000 out of the proceeds of the Odyssey Note. The Odyssey Note bears interest at the rate of 12% per annum. All interest and principal must be repaid on September 18, 2020 (the "Odyssey Note Maturity Date"). The Odyssey Note is convertible into common stock at any time after the six month anniversary of the Odyssey Note, at Odyssey's option, at a price equal to 60% of the lowest trading price of the common stock during the twenty trading days prior to conversion. The Odyssey Note may not be prepaid more than 180 days prior to the Odyssey Note Maturity Date. In the event the Company prepays the Odyssey Note in full during the 180 days prior to the Odyssey Note Maturity Date, the Company must pay off all principal, interest and any other amounts owing multiplied by a premium ranging from 25% to 45%. GS Capital Note On September 24, 2019, the Company entered into a Securities Purchase Agreement (the "GS Capital Securities Purchase Agreement") dated September 18, 2019, with GS Capital Partners, LLC ("GS Capital") for the sale of an 8% Convertible Redeemable Note in the amount of $69,000 (the "GS Capital Note"). Pursuant to the terms of the GS Capital Securities Purchase Agreement, the Company issued the GS Capital Note with a $6,000 original issue discount and paid GS Capital's legal fees of $3,000 out of the proceeds of the GS Capital Note. The GS Capital Note bears interest at the rate of 8% per annum. All interest and principal must be repaid on September 18, 2020 (the "GS Capital Note Maturity Date"). The GS Capital Note is convertible into common stock at any time after the six month anniversary of the GS Capital Note, at GS Capital's option, at a price equal to 50% of the lowest trading price of the common stock during the twenty trading days prior to conversion. The GS Capital Note may not be prepaid more than 180 days prior to the GS Capital Note Maturity Date. In the event the Company prepays the GS Capital Note in full during the 180 days prior to the GS Capital Note Maturity Date, the Company must pay off all principal, interest and any other amounts owing multiplied by a premium ranging from 20% to 40%. LG Capital Note Additionally, on September 24, 2019, the Company entered into a Securities Purchase Agreement (the "LG Capital Securities Purchase Agreement" and together with the Eagle Securities Purchase Agreement, Odyssey Securities Purchase Agreement and GS Capital Securities Purchase Agreement, the "Securities Purchase Agreements") dated September 18, 2019, with LG Capital Funding, LLC ("LG Capital") for the sale of an 8% Convertible Redeemable Note in the amount of $25,000 (the "LG Capital Note" and together with the Eagle Note, Odyssey Note and GS Capital Note, the "Notes"). Pursuant to the terms of the LG Capital Securities Purchase Agreement, the Company paid LG Capital's legal fees of $2,000 out of the proceeds of the LG Capital Note. The LG Capital Note bears interest at the rate of 8% per annum. All interest and principal must be repaid on September 18, 2020 (the "LG Capital Note Maturity Date"). The LG Capital Note is convertible into common stock at any time after the six month anniversary of the LG Capital Note, at LG Capital's option, at a price equal to 60% of the lowest trading price of the common stock during the twenty trading days prior to conversion. The LG Capital Note may not be prepaid more than 180 days prior to the LG Capital Note Maturity Date. In the event the Company prepays the LG Capital Note in full during the 180 days prior to the LG Capital Note Maturity Date, the Company must pay off all principal, interest and any other amounts owing multiplied by a premium ranging from 25% to 45%. The Notes and the Securities Purchase Agreements contain the customary representations, warranties, covenants, and events of default. Subsequent to June 30, 2019 the Company converted notes into 378,720,945 shares of the Companies common stock. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation - Unaudited Interim Financial Information | Basis of Presentation - Unaudited Interim Financial Information The accompanying unaudited interim condensed consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information, and in accordance with the rules and regulations of the United States Securities and Exchange Commission (the "SEC") with respect to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim condensed consolidated financial statements furnished reflect all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company's annual report on Form 10-K for the year ended December 31, 2018. |
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 condensed 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 condensed 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 June 30, 2019 and December 31, 2018, 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 June 30, 2019 and December 31, 2018, there was an allowance for doubtful accounts of $27,851 and $27,851 respectively. During the six months ended June 30, 2019 the Company recorded a bad debt expense of $0. |
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. |
Revenue Recognition | Revenue Recognition The Company adopted ASC 606 effective January 1, 2018 using the modified retrospective method which would require a cumulative effect adjustment for initially applying the new revenue standard as an adjustment to the opening balance of retained earnings and the comparative information would not require to be restated and continue to be reported under the accounting standards in effect for those periods. Based on the Company's analysis the Company did not identify a cumulative effect adjustment for initially applying the new revenue standards. The Company principally generates revenue through providing product, services and licensing revenue The adoption of ASC 606 represents a change in accounting principle that will more closely align revenue recognition with the delivery of the Company's services and will provide financial statement readers with enhanced disclosures. In accordance with ASC 606, revenue is recognized when a customer obtains control of promised services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these services. To achieve this core principle, the Company applies the following five steps: 1) Identify the contract with a customer A contract with a customer exists when (i) the Company enters into an enforceable contract with a customer that defines each party's rights regarding the services to be transferred and identifies the payment terms related to these services, (ii) the contract has commercial substance and, (iii) the Company determines that collection of substantially all consideration for services that are transferred is probable based on the customer's intent and ability to pay the promised consideration. The Company applies judgment in determining the customer's ability and intention to pay, which is based on a variety of factors including the customer's historical payment experience or, in the case of a new customer, published credit and financial information pertaining to the customer. 2) Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the services is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised services, the Company must apply judgment to determine whether promised services are capable of being distinct and distinct in the context of the contract. If these criteria are not met the promised services are accounted for as a combined performance obligation. 3) Determine the transaction price The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring services to the customer. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending on the nature of the variable consideration. Variable consideration is included in the transaction price if, in the Company's judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. None of the Company's contracts as of December 31, 2018 contained a significant financing component. Determining the transaction price requires significant judgment, which is discussed by revenue category in further detail below. 4) Allocate the transaction price to performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. However, if a series of distinct services that are substantially the same qualifies as a single performance obligation in a contract with variable consideration, the Company must determine if the variable consideration is attributable to the entire contract or to a specific part of the contract. For example, a bonus or penalty may be associated with one or more, but not all, distinct services promised in a series of distinct services that forms part of a single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price basis unless the transaction price is variable and meets the criteria to be allocated entirely to a performance obligation or to a distinct service that forms part of a single performance obligation. The Company determines standalone selling price based on the price at which the performance obligation is sold separately. If the standalone selling price is not observable through past transactions, the Company estimates the standalone selling price taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations. 5) Recognize revenue when or as the Company satisfies a performance obligation The Company satisfies performance obligations either over time or at a point in time. Revenue is recognized at the time the related performance obligation is satisfied by transferring a promised service to a customer. Three Months ended June 30, 2019 Three Months ended June 30, 2018 United States International Total United States International Total Product Revenue - - - 36,945 47,116 84,061 Product Service Revenue - - - 3,449 2,673 6,122 Licensing Revenue 867 - 867 3,641 - 3,641 867 - 867 44,035 49,789 93,824 Six Months ended June 30, 2019 Six Months ended June 30, 2018 United States International Total United States International Total Product Revenue 494 757 1,251 76,611 74,294 150,905 Product Service Revenue 288 - 288 6,917 4,660 11,577 Licensing Revenue 867 - 867 7,771 - 7,771 1,649 757 2,406 91,299 78,954 170,253 Product revenue 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 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 six months ended June 30, 2019 and 2018 were $ 26,184 and $272,308, 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 $64,413 and $111,125 for the six months ended June 30, 2019 and 2018, respectively. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC Topic 718, " Compensation – Stock Compensation" |
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. |
Earnings per Share | Earnings 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. The following table provides a reconciliation of the numerator and denominator used in computing basic and diluted net income (loss) attributable to common stockholders per common share. For the Three Months Ended For the Six Months Ended June 30, June 30, June 30, June 30, 2019 2018 2019 2018 Numerator: Net income/(loss) attributable to common stockholders $ 1,944,843 $ (810,310 ) $ 2,239,213 $ 69,595 Effect of dilutive securities: Convertible note - Interest expense 63,629 - 83,870 - Net Change in warrant liability (2,603,135 ) (3,419,105 ) Net change in derivative liabilities - convertible payables 46,442 - (88,802 ) - Diluted net income (loss) $ (548,221 ) $ (810,310 ) $ (1,184,824 ) $ 69,595 Denominator: Weighted average common shares outstanding - basic 4,261,863,744 3,007,985,341 4,151,099,739 2,452,630,014 Dilutive securities (a): Series A Preferred stock 51 - 51 51 Series B Preferred stock 1,070,000,000 - 1,070,000,000 1,070,000,000 Convertible notes payable 1,628,303,534 - 1,628,303,534 - Convertible accounts payable 660,000,000 - 660,000,000 379,889,803 Options - - - - Warrants 721,723,282 - 721,723,282 96,589,953 Weighted average common shares outstanding and assumed conversion - diluted 8,341,890,611 3,007,985,341 8,231,126,605 3,999,109,821 Basic net income (loss) per common share $ 0.00 $ (0.00 ) $ 0.00 $ 0.00 Diluted net income (loss) per common share $ (0.00 ) $ (0.00 ) $ (0.00 ) $ 0.00 (a) - Anti-dilutive options excluded: 4,449,161,696 1,700,463,104 4,449,161,696 153,983,297 The Company had the following common stock equivalents at June 30, 2019 and 2018: June 30, June 30, Series A Preferred stock 51 51 Series B Preferred stock 1,070,000,000 1,070,000,000 Convertible notes payable 1,628,303,534 144,915,652 Convertible accounts payable 660,000,000 379,889,803 Options - 1,496,250 Warrants 2,621,460,806 104,161,788 Totals 5,979,764,391 1,700,463,053 |
Recent Accounting Guidance Adopted | Recent Accounting Guidance Adopted In February 2016, the FASB issued ASU 2016-02 " Leases" On January 1, 2019, the Company adopted ASC 842 using the modified retrospective approach. Results for the three months ended March 31, 2019 are presented under ASC 842, while prior period amounts were not adjusted and continue to be reported in accordance with the legacy accounting guidance under ASC Topic 840, Leases As part of the adoption we elected the practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to: 1. Continue applying our current policy for accounting for land easements that existed as of, or expired before, January 1, 2019. 2. Not separate non-lease components from lease components and instead to account for each separate lease component and the non-lease components associated with that lease component as a single lease component. 3. Not to apply the recognition requirements in ASC 842 to short-term leases. 4. Not record a right of use asset or right of use liability for leases with an asset or liability balance that would be considered immaterial. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule 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 sales by operating segment disaggregated based on type of product and geographic region | Three Months ended June 30, 2019 Three Months ended June 30, 2018 United States International Total United States International Total Product Revenue - - - 36,945 47,116 84,061 Product Service Revenue - - - 3,449 2,673 6,122 Licensing Revenue 867 - 867 3,641 - 3,641 867 - 867 44,035 49,789 93,824 Six Months ended June 30, 2019 Six Months ended June 30, 2018 United States International Total United States International Total Product Revenue 494 757 1,251 76,611 74,294 150,905 Product Service Revenue 288 - 288 6,917 4,660 11,577 Licensing Revenue 867 - 867 7,771 - 7,771 1,649 757 2,406 91,299 78,954 170,253 |
Schedule of reconciliation of the numerator and denominator used in computing basic and diluted net income (loss) attributable to common stockholders per common share | For the Three Months Ended For the Six Months Ended June 30, June 30, June 30, June 30, 2019 2018 2019 2018 Numerator: Net income/(loss) attributable to common stockholders $ 1,944,843 $ (810,310 ) $ 2,239,213 $ 69,595 Effect of dilutive securities: Convertible note - Interest expense 63,629 - 83,870 - Net Change in warrant liability (2,603,135 ) (3,419,105 ) Net change in derivative liabilities - convertible payables 46,442 - (88,802 ) - Diluted net income (loss) $ (548,221 ) $ (810,310 ) $ (1,184,824 ) $ 69,595 Denominator: Weighted average common shares outstanding - basic 4,261,863,744 3,007,985,341 4,151,099,739 2,452,630,014 Dilutive securities (a): Series A Preferred stock 51 - 51 51 Series B Preferred stock 1,070,000,000 - 1,070,000,000 1,070,000,000 Convertible notes payable 1,628,303,534 - 1,628,303,534 - Convertible accounts payable 660,000,000 - 660,000,000 379,889,803 Options - - - - Warrants 721,723,282 - 721,723,282 96,589,953 Weighted average common shares outstanding and assumed conversion - diluted 8,341,890,611 3,007,985,341 8,231,126,605 3,999,109,821 Basic net income (loss) per common share $ 0.00 $ (0.00 ) $ 0.00 $ 0.00 Diluted net income (loss) per common share $ (0.00 ) $ (0.00 ) $ (0.00 ) $ 0.00 (a) - Anti-dilutive options excluded: 4,449,161,696 1,700,463,104 4,449,161,696 153,983,297 |
Schedule of common stock equivalents | June 30, June 30, Series A Preferred stock 51 51 Series B Preferred stock 1,070,000,000 1,070,000,000 Convertible notes payable 1,628,303,534 144,915,652 Convertible accounts payable 660,000,000 379,889,803 Options - 1,496,250 Warrants 2,621,460,806 104,161,788 Totals 5,979,764,391 1,700,463,053 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | June 30, December 31, 2019 2018 Finished goods $ - $ 9,781 Raw materials 208,687 104,250 $ 208,687 $ 114,031 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of convertible notes | June 30, December 31, 2019 2018 Convertible Note - February 6, 2017 265,750 265,750 Convertible Note - July 23, 2018 25,000 25,000 Convertible Note – October 1, 2018 - 74,800 Convertible Note – October 4, 2018 30,000 73,500 Convertible Note – October 11, 2018 233,500 283,500 Convertible Note – December 19, 2018 82,000 82,000 Convertible Note – March 7, 2019 210,000 - Convertible Note –May 2, 2019 63,945 - Convertible Note – May 7, 2019 100,000 - 1,010,195 804,550 Less: Debt Discount (348,756 ) (368,373 ) Total $ 661,439 $ 436,177 |
Derivative Liabilities (Tables)
Derivative Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Schedule of Binomial-lattice model assumptions used to estimate the fair value of the derivative liability and warrant liability | Low High Annual dividend rate 0 % 0 % Expected life in years 0 1.00 Risk-free interest rate 1.93 % 2.59 % Expected volatility 107 % 139 % |
Schedule of changes in the derivative liabilities and warrant liabilities | Six Months Ended June 30, 2019 Level 1 Level 2 Level 3 Derivative Liability as of January 1, 2019 1,222,186 Derivative expense 18,092 Additions 307,295 Conversions (106,224 ) Gain on changes in fair value (88,802 ) Derivative liabilities as of June 30, 2019 1,352,547 |
Warrant [Member] | |
Schedule of changes in the derivative liabilities and warrant liabilities | Six Months Ended June 30, 2019 Level 1 Level 2 Level 3 Balance, January 1, 2019 $ - $ - $ 6,267,426 Change due to exercise of warrants (845,883 ) Gain on changes in fair value - - (3,419,105 ) Accretion of warrant expense 162,844 Warrant liabilities as June 30, 2019 $ - $ - $ 2,165,282 |
Going Concern (Details)
Going Concern (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Going Concern (Textual) | ||||
Cash | $ 103,537 | $ 102,698 | $ 41,889 | $ 119,028 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) | 6 Months Ended |
Jun. 30, 2019 | |
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 Accoun_5
Summary of Significant Accounting Policies (Details 1) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Total | $ 867 | $ 93,824 | $ 2,406 | $ 170,253 |
United States [Member] | ||||
Total | 867 | 44,035 | 1,649 | 91,299 |
International [Member] | ||||
Total | 49,789 | 757 | 78,954 | |
Product Revenue [Member] | ||||
Total | 84,061 | 1,251 | 150,905 | |
Product Revenue [Member] | United States [Member] | ||||
Total | 36,945 | 494 | 76,611 | |
Product Revenue [Member] | International [Member] | ||||
Total | 47,116 | 757 | 74,294 | |
Product Service Revenue [Member] | ||||
Total | 6,122 | 288 | 11,577 | |
Product Service Revenue [Member] | United States [Member] | ||||
Total | 3,449 | 288 | 6,917 | |
Product Service Revenue [Member] | International [Member] | ||||
Total | 2,673 | 4,660 | ||
Licensing Revenue [Member] | ||||
Total | 867 | 3,641 | 867 | 7,771 |
Licensing Revenue [Member] | United States [Member] | ||||
Total | 867 | 3,641 | 867 | 7,771 |
Licensing Revenue [Member] | International [Member] | ||||
Total |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details 2) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Numerator: | ||||
Net income/(loss) attributable to common stockholders | $ 1,944,843 | $ (810,310) | $ 2,239,214 | $ 69,595 |
Effect of dilutive securities: | ||||
Convertible note - Interest expense | 63,629 | 83,870 | ||
Net Change in warrant liability | (2,603,135) | (3,419,105) | ||
Net change in derivative liabilities - convertible payables | 46,442 | (88,802) | ||
Diluted net income (loss) | $ (548,221) | $ (810,310) | $ (1,184,824) | $ 69,595 |
Denominator: | ||||
Weighted average common shares outstanding - basic | 4,261,863,744 | 3,007,985,341 | 4,151,099,739 | 2,452,630,014 |
Weighted average common shares outstanding and assumed conversion - diluted | 8,711,025,440 | 3,007,985,341 | 8,600,261,434 | 3,999,109,821 |
Basic net income (loss) per common share | $ 0 | $ 0 | $ 0 | $ 0 |
Diluted net income (loss) per common share | $ 0 | $ 0 | $ 0 | $ 0 |
(a) - Anti-dilutive options excluded: | 4,449,161,696 | 1,700,463,104 | 4,449,161,696 | 153,983,297 |
Options [Member] | ||||
Denominator: | ||||
Weighted average common shares outstanding - basic | ||||
Warrants [Member] | ||||
Denominator: | ||||
Weighted average common shares outstanding - basic | 721,723,282 | 721,723,282 | 96,589,953 | |
Convertible notes payable [Member] | ||||
Denominator: | ||||
Weighted average common shares outstanding - basic | 1,628,303,534 | 1,628,303,534 | ||
Convertible accounts payable | ||||
Denominator: | ||||
Weighted average common shares outstanding - basic | 660,000,000 | 660,000,000 | 379,889,803 | |
Series A Preferred stock [Member] | ||||
Denominator: | ||||
Weighted average common shares outstanding - basic | 51 | 51 | 51 | |
Series B Preferred stock [Member] | ||||
Denominator: | ||||
Weighted average common shares outstanding - basic | 1,070,000,000 | 1,070,000,000 | 1,070,000,000 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details 3) - shares | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Summary of Significant Accounting Policies [Line Items] | ||
Totals | 5,979,764,391 | 1,700,463,053 |
Options [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Totals | 1,496,250 | |
Warrants [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Totals | 2,621,460,806 | 104,161,788 |
Convertible notes payable [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Totals | 1,628,303,534 | 144,915,652 |
Convertible accounts payable | ||
Summary of Significant Accounting Policies [Line Items] | ||
Totals | 660,000,000 | 379,889,803 |
Series A Preferred Stock [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Totals | 51 | 51 |
Series B Preferred stock [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Totals | 1,070,000,000 | 1,070,000,000 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Summary of Significant Accounting Policies (Textual) | |||||
Allowance for doubtful accounts | $ 27,851 | $ 27,851 | $ 27,851 | ||
Research and development expenses | $ 12,251 | $ 39,218 | 26,184 | $ 272,308 | |
Bad debt expense | 0 | ||||
General and Administrative Expenses [Member] | |||||
Summary of Significant Accounting Policies (Textual) | |||||
Advertising expense | 64,413 | 111,125 | |||
Sales and Marketing [Member] | |||||
Summary of Significant Accounting Policies (Textual) | |||||
Advertising expense | $ 64,413 | $ 111,125 |
Inventory (Details)
Inventory (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 9,781 | |
Raw materials | 208,687 | 104,250 |
Inventory | $ 208,687 | $ 114,031 |
Debt (Details)
Debt (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Convertible note | $ 1,010,195 | $ 804,550 |
Less: Debt Discount | (348,756) | (368,373) |
Total | 661,439 | 436,177 |
Convertible Note - February 6, 2017 [Member] | ||
Convertible note | 265,750 | 265,750 |
Convertible Note - July 23, 2018 [Member] | ||
Convertible note | 25,000 | 25,000 |
Convertible Note - October 1, 2018 [Member] | ||
Convertible note | 74,800 | |
Convertible Note - October 4, 2018 [Member] | ||
Convertible note | 30,000 | 73,500 |
Convertible Note - October 11, 2018 [Member] | ||
Convertible note | 233,500 | 283,500 |
Convertible Note - December 19, 2018 [Member] | ||
Convertible note | 82,000 | 82,000 |
Convertible Note - March 7, 2019 [Member] | ||
Convertible note | 210,000 | |
Convertible Note - May 2, 2019 [Member] | ||
Convertible note | 63,945 | |
Convertible Note - May 7, 2019 [Member] | ||
Convertible note | $ 100,000 |
Debt (Details Textual)
Debt (Details Textual) - USD ($) | Mar. 07, 2019 | Oct. 11, 2018 | Oct. 05, 2018 | Oct. 01, 2018 | May 07, 2019 | May 02, 2019 | Dec. 19, 2018 | Oct. 11, 2018 | Oct. 11, 2018 | Dec. 27, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 04, 2018 | Oct. 02, 2018 | Dec. 31, 2016 |
Debt (Textual) | |||||||||||||||||||
Loss on extinguishment of debt | $ (19,536) | $ 4,581 | $ (19,535) | $ 4,581 | |||||||||||||||
Converted into common stock shares | 378,720,945 | ||||||||||||||||||
Convertible outstanding interest | $ 38,900 | ||||||||||||||||||
Interest expense | $ 37,400 | ||||||||||||||||||
Convertible Notes Payable [Member] | |||||||||||||||||||
Debt (Textual) | |||||||||||||||||||
Common stock conversion features, description | The Company went into default on the convertible note. Interest accrues at a rate of twenty-four percent (24%) per annum during the time that the convertible note is in default. | ||||||||||||||||||
Interest expense | $ 1,500 | ||||||||||||||||||
Geneva Securities Purchase Agreement [Member] | |||||||||||||||||||
Debt (Textual) | |||||||||||||||||||
Convertible note principal payment | $ 74,800 | ||||||||||||||||||
Purchase price | $ 74,800 | ||||||||||||||||||
Related party net proceeds | $ 65,000 | ||||||||||||||||||
Convertible shares of common stock | 270,905,432 | ||||||||||||||||||
Maturity date term | 170 days | ||||||||||||||||||
Common stock conversion features, description | The maturity date of the Geneva Note is October 1, 2019 (the "Geneva Maturity Date"). The Geneva Note shall bear interest at a rate of ten percent (10%) per annum (the "Geneva Interest Rate"), which interest shall be paid by the Company to Geneva in shares of common stock at any time Geneva sends a notice of conversion to the Company. Geneva is entitled to, at its option, convert all or any amount of the principal face amount and any accrued but unpaid interest of the Geneva Note into shares of the Company's common stock, at any time after March 20, 2019, at a conversion price for each share of common stock equal to 71% multiplied by the average of the lowest three (3) trading prices (as defined in the Geneva Purchase Agreement) for the common stock during the fifteen (15) Trading Day period (as defined in the Geneva Purchase Agreement) ending on the latest complete trading day prior to the conversion date. | ||||||||||||||||||
Interest rate percentage | 10.00% | ||||||||||||||||||
GS Capital Securities Purchase Agreement [Member] | |||||||||||||||||||
Debt (Textual) | |||||||||||||||||||
Convertible note principal amount | $ 102,000 | $ 102,000 | $ 102,000 | ||||||||||||||||
Convertible note principal payment | $ 75,000 | ||||||||||||||||||
Purchase price | $ 75,000 | ||||||||||||||||||
Related party net proceeds | $ 90,000 | $ 68,500 | |||||||||||||||||
Convertible shares of common stock | 299,000,000 | 211,267,000 | |||||||||||||||||
Maturity date term | 180 days | ||||||||||||||||||
Common stock conversion features, description | The maturity date of the GSC Note is October 4, 2019 (the "the GSC Maturity Date"). The GSC Note shall bear interest at a rate of eight percent (8%) per annum (the "GSC Interest Rate"), which interest shall be paid by the Company to GSC in shares of common stock at any time GSC sends a notice of conversion to the Company. GSC is entitled to, at its option, convert all or any amount of the principal face amount and any accrued but unpaid interest of the GSC Note into shares of the Company's common stock, at any time, at the conversion price specified in the for each share of common stock equal to 71% of the average of the three lowest closing bid prices of the common stock for the fifteen prior trading days including the day upon which a notice of conversion is received by the Company or its transfer agent. In connection with this note the Company recorded a $58,855 debt discount. | The lender converted $45,000 of the outstanding principal and $2,505 of the outstanding interest into 60,451,908 shares of the Company’s common stock. | |||||||||||||||||
Interest rate percentage | 8.00% | 8.00% | 8.00% | 8.00% | |||||||||||||||
Eagle and GSC Securities Purchase Agreements [Member] | |||||||||||||||||||
Debt (Textual) | |||||||||||||||||||
Maturity date term | 180 days | ||||||||||||||||||
Common stock conversion features, description | The purchase price of $181,500, and of $102,000, of the Eagle Note and the GSC Note, respectively, was paid in cash by the Investors on October 11, 2018. After payment of transaction-related expenses, net proceeds to the Company from the Eagle Note and the GSC Note totaled $157,000 and $90,000, respectively. The maturity date of the Notes is October 11, 2019 (the "Maturity Date"). The Notes shall bear interest at a rate of eight percent (8%) per annum (the "Interest Rate"), which interest shall be paid by the Company to the Investors in shares of common stock at any time Eagle or GSC sends a notice of conversion to the Company (the "Notice of Conversion"). The Investors are entitled to, at their option, convert all or any amount of the principal face amount and any accrued but unpaid interest of their respective Notes into shares of the Company's common stock, at any time, at a conversion price for each share of common stock equal to 65% multiplied by the lowest closing bid price of the common stock as reported on the marketplace upon which the Company's shares are traded during the fifteen (15) trading day period ending on the day upon which a Notice of Conversion is received by the Company. In connection with this note, the Company recorded a $149,702 and $84,941 debt discounts. | ||||||||||||||||||
Eagle Purchase Agreement [Member] | |||||||||||||||||||
Debt (Textual) | |||||||||||||||||||
Convertible note principal amount | $ 181,500 | $ 181,500 | $ 181,500 | ||||||||||||||||
Related party net proceeds | $ 157,000 | ||||||||||||||||||
Convertible shares of common stock | 532,000,000 | ||||||||||||||||||
Common stock conversion features, description | The maturity date of the Notes is October 11, 2019 (the "Maturity Date"). The Notes shall bear interest at a rate of eight percent (8%) per annum (the "Interest Rate"), which interest shall be paid by the Company to the Investors in shares of common stock at any time Eagle or GSC sends a notice of conversion to the Company (the "Notice of Conversion"). The Investors are entitled to, at their option, convert all or any amount of the principal face amount and any accrued but unpaid interest of their respective Notes into shares of the Company's common stock, at any time, at a conversion price for each share of common stock equal to 65% multiplied by the lowest closing bid price of the common stock as reported on the marketplace upon which the Company's shares are traded during the fifteen (15) trading day period ending on the day upon which a Notice of Conversion is received by the Company. In connection with this note, the Company recorded a $149,702 and $84,941 debt discounts. | ||||||||||||||||||
Interest rate percentage | 8.00% | 8.00% | 8.00% | ||||||||||||||||
Convertible note principal Interest | 24.00% | ||||||||||||||||||
GS Capital Partners [Member] | |||||||||||||||||||
Debt (Textual) | |||||||||||||||||||
Convertible note principal amount | $ 210,000 | ||||||||||||||||||
Purchase price | $ 210,000 | ||||||||||||||||||
Convertible conversion price equal discount | 24.00% | ||||||||||||||||||
Related party net proceeds | $ 200,000 | ||||||||||||||||||
Common stock conversion features, description | The maturity date of the GS Capital note is March 7, 2020. The GS Capital Note shall bear interest at a rate of eight percent (8%) per annum which interest shall be paid by the Company to GS Capital in shares of common stock at any time GSC sends a notice of conversion to the Company. GSC is entitled to, at its option, convert all or any amount of the principal face amount and any accrued but unpaid interest of the GSC Note into shares of the Company's common stock, at any time, at the conversion price specified in the for each share of common stock equal to 65% of the average of the three lowest closing bid prices of the common stock for the fifteen prior trading days including the day upon which a notice of conversion is received by the Company or its transfer agent. In connection with this note, the Company recorded a $167,296 debt discount. | ||||||||||||||||||
Interest rate percentage | 8.00% | ||||||||||||||||||
GSC Purchase Agreement [Member] | |||||||||||||||||||
Debt (Textual) | |||||||||||||||||||
Common stock conversion features, description | Effective December 19, 2018 the Company entered into a securities purchase agreement (the "GSC Purchase Agreement") with GS Capital Partners LLC, ("GSC", and together with Geneva, the "Investors"), pursuant to which GSC purchased a 8% unsecured convertible promissory note from the Company in the aggregate principal amount of $82,000 (the "GSC Note"), such principal and the interest thereon convertible into shares of the Company's common stock at the option of GSC. The purchase price of $82,000 of the GSC Note was paid in cash by GSC on December 19, 2018. After payment of transaction-related expenses, net proceeds to the Company from the First GSC Note totaled $78,828. The maturity date of the GSC Note is December 19, 2019 (the "the GSC Maturity Date"). The GSC Note shall bear interest at a rate of eight percent (8%) per annum (the "GSC Interest Rate"), which interest shall be paid by the Company to GSC in shares of common stock at any time GSC sends a notice of conversion to the Company. GSC is entitled to, at its option, convert all or any amount of the principal face amount and any accrued but unpaid interest of the GSC Note into shares of the Company's common stock, at any time, at the conversion price specified in the for each share of common stock equal to 67% of the average of the three lowest closing bid prices of the common stock for the fifteen prior trading days including the day upon which a notice of conversion is received by the Company or its transfer agent. In connection with this note, the Company recorded a $76,000 debt discount. The GSC Note may be prepaid until 180 days from the issuance date in accordance with its terms. The Company shall reserve 211,267,000 of its authorized and unissued common stock (the "GSC Reserved Amount"), free from preemptive rights, to provide for the issuance of Common Stock upon the full conversion of the GSC Note. | ||||||||||||||||||
LG capital Agreement [Member] | |||||||||||||||||||
Debt (Textual) | |||||||||||||||||||
Convertible note principal amount | $ 63,945 | ||||||||||||||||||
Purchase price | $ 63,945 | ||||||||||||||||||
Convertible conversion price equal discount | 24.00% | ||||||||||||||||||
Related party net proceeds | $ 60,000 | ||||||||||||||||||
Common stock conversion features, description | The maturity date of the LG Capital note is May 2, 2020. The LG Capital Note shall bear interest at a rate of eight percent (8%) per annum which interest shall be paid by the Company to LG Capital in shares of common stock at any time LG sends a notice of conversion to the Company. LG is entitled to, at its option, convert all or any amount of the principal face amount and any accrued but unpaid interest of the LG Capital Note into shares of the Company's common stock, at any time, at the conversion price specified in the for each share of common stock equal to 65% of the average of the two lowest closing bid prices of the common stock for the fifteen prior trading days including the day upon which a notice of conversion is received by the Company or its transfer agent. In connection with this note, the Company recorded a $44,999 debt discount. | ||||||||||||||||||
Interest rate percentage | 8.00% | ||||||||||||||||||
Odyssey capital Agreement [Member] | |||||||||||||||||||
Debt (Textual) | |||||||||||||||||||
Convertible note principal amount | $ 100,000 | ||||||||||||||||||
Purchase price | $ 100,000 | ||||||||||||||||||
Convertible conversion price equal discount | 24.00% | ||||||||||||||||||
Related party net proceeds | $ 95,000 | ||||||||||||||||||
Common stock conversion features, description | The maturity date of the Odyssey Capital note is May 7, 2020. The Odyssey Capital Note shall bear interest at a rate of twenty-four percent (24%) per annum which interest shall be paid by the Company to Odyssey Capital in shares of common stock at any time Odyssey sends a notice of conversion to the Company. Odyssey is entitled to, at its option, convert all or any amount of the principal face amount and any accrued but unpaid interest of the Odyssey Capital Note into shares of the Company's common stock, at any time, at the conversion price specified in the for each share of common stock equal to 60% of the lowest closing bid prices of the common stock for the twenty prior trading days including the day upon which a notice of conversion is received by the Company or its transfer agent. In connection with this note, the Company recorded a $95,000 debt discount. | ||||||||||||||||||
Interest rate percentage | 12.00% | ||||||||||||||||||
Note purchase agreement [Member] | |||||||||||||||||||
Debt (Textual) | |||||||||||||||||||
Received additional proceeds | $ 200,000 | $ 30,000 | |||||||||||||||||
Hasfer assigned amount | 60,000 | ||||||||||||||||||
Lenders [Member] | |||||||||||||||||||
Debt (Textual) | |||||||||||||||||||
Convertible note principal amount | $ 207,200 | $ 207,200 | $ 60,000 | ||||||||||||||||
Common stock conversion features, description | The lender converted $112,200 of the outstanding principal and $3,400 of the outstanding interest into 92,083,917 shares of the Company’s common stock. | ||||||||||||||||||
Interest rate percentage | 22.00% | 22.00% | |||||||||||||||||
Loss on extinguishment of debt | $ 19,536 | ||||||||||||||||||
Converted into common stock shares | 214,625,321 | 26,086,956 | |||||||||||||||||
Convertible outstanding interest | $ 8,678 | ||||||||||||||||||
Lenders [Member] | Eagle Purchase Agreement [Member] | |||||||||||||||||||
Debt (Textual) | |||||||||||||||||||
Common stock conversion features, description | The lender converted $50,000 of the outstanding principal and $2,773 of the outstanding interest into 62,089,496 shares of the Company’s common stock. | ||||||||||||||||||
Hasfer, Inc [Member] | Amendment [Member] | |||||||||||||||||||
Debt (Textual) | |||||||||||||||||||
Convertible note principal amount | $ 236,250 | ||||||||||||||||||
Proceeds from notes payable | $ 48,500 | ||||||||||||||||||
Debt discount and debt issuance costs | 1,500 | ||||||||||||||||||
Loss on extinguishment of debt | $ 155,086 | ||||||||||||||||||
Converted into common stock shares | 99,891,304 | ||||||||||||||||||
Outstanding balance convertible debt | $ 295,750 | $ 0 |
Derivative Liabilities (Details
Derivative Liabilities (Details) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Annual dividend rate | 0.00% |
Fair value of derivative liability and warrant liability [Member] | Low [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Annual dividend rate | 0.00% |
Expected life in years | 0 years |
Risk-free interest rate | 1.93% |
Expected volatility | 107.00% |
Fair value of derivative liability and warrant liability [Member] | High [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Annual dividend rate | 0.00% |
Expected life in years | 1 year |
Risk-free interest rate | 2.59% |
Expected volatility | 139.00% |
Derivative Liabilities (Detai_2
Derivative Liabilities (Details 1) - Derivative Liabilities [Member] | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Level 1 [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Derivative Liability as of January 1, 2019 | |
Conversions | |
Gain on changes in fair value | |
Derivative liabilities as of June 30, 2019 | |
Level 2 [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Derivative Liability as of January 1, 2019 | |
Conversions | |
Gain on changes in fair value | |
Derivative liabilities as of June 30, 2019 | |
Level 3 [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Derivative Liability as of January 1, 2019 | 1,222,186 |
Derivative expense | 18,092 |
Additions | 307,295 |
Conversions | (106,224) |
Gain on changes in fair value | (88,802) |
Derivative liabilities as of June 30, 2019 | $ 1,352,547 |
Derivative Liabilities (Detai_3
Derivative Liabilities (Details 2) - Warrant [Member] | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Level 1 [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Balance, January 1, 2019 | |
Change due to exercise of warrants | |
Gain on changes in fair value | |
Accretion of warrant expense | |
Warrant liabilities as June 30, 2019 | |
Level 2 [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Balance, January 1, 2019 | |
Change due to exercise of warrants | |
Gain on changes in fair value | |
Accretion of warrant expense | |
Warrant liabilities as June 30, 2019 | |
Level 3 [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Balance, January 1, 2019 | 6,267,426 |
Change due to exercise of warrants | (845,883) |
Gain on changes in fair value | (3,419,105) |
Accretion of warrant expense | 162,844 |
Warrant liabilities as June 30, 2019 | $ 2,165,282 |
Derivative Liabilities (Detai_4
Derivative Liabilities (Details Textual) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Liabilities (Textual) | |
Dividend yield | 0.00% |
Stockholders' Deficit (Details)
Stockholders' Deficit (Details) - USD ($) | May 13, 2019 | Apr. 17, 2019 | Jul. 31, 2018 | Jul. 30, 2018 | Jun. 30, 2019 | Dec. 31, 2018 | Jan. 15, 2019 | Sep. 30, 2016 |
Stockholders' Deficit (Textual) | ||||||||
Converted common stock, shares | 378,720,945 | |||||||
Common stock, par value | $ 0.001 | $ 0.001 | ||||||
Common stock, shares authorized | 10,000,000,000 | 10,000,000,000 | ||||||
Common stock issued for cashless exercise on warrants | 4,435,372,829 | 3,905,200,946 | ||||||
Series A Preferred Stock [Member] | ||||||||
Stockholders' Deficit (Textual) | ||||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | ||||||
Preferred stock, description | 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, 2016 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) | ||||||||
Preferred stock, par value | $ 1 | $ 1 | ||||||
Preferred stock, description | 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. | |||||||
Preferred stock, shares issued | 38,272 | 45,355 | ||||||
Description of issuance warrants | The Company also agreed to the assignment or issuance of three warrants giving the holder the right to purchase seven and one half percent (7.5%) of the Company's shares of common stock issued and outstanding at the time of exercise and having an exercise price of $0.001 per share. This form of warrant is referred to herein as the "7.5% Warrant." The Company agreed to the assignment of one previously issued 7.5% Warrant to an entity related to BCI Advisors. This 7.5% Warrant expires on January 15, 2019. In addition, the Company also agreed to the assignment of another previously issued 7.5% Warrant to an entity related to BCI Advisors and agreed to extend the expiration date from March 1, 2019 to March 1, 2022. Finally, the Company agreed to issue a new 7.5% Warrant which will expire on January 15, 2022. | The Company also agreed to issue a 7.5% Warrant with an expiration date of August 1, 2022. | ||||||
Series B Preferred Stock [Member] | TLG [Member] | ||||||||
Stockholders' Deficit (Textual) | ||||||||
Converted common stock, shares | 189,700 | |||||||
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 [Member] | ||||||||
Stockholders' Deficit (Textual) | ||||||||
Common stock, shares authorized | 10,000,000,000 | |||||||
Common stock issued for cashless exercise on warrants | 165,546,562 | |||||||
Issuance of common stock | 100,000,000 | 50,000,000 | ||||||
Outstanding vendor liabilities | $ 96,788 | $ 64,000 | ||||||
Loss on settlement of vendor liabilities | 53,212 | 56,000 | ||||||
Fair value of common stock | $ 150,000 | $ 120,000 | ||||||
Conversion of common stock, description | The lenders converted $207,200 of the outstanding principal and $8,678 of the outstanding interest into 214,625,321 shares of the Company’s common stock. | |||||||
Common Stock [Member] | TLG [Member] | ||||||||
Stockholders' Deficit (Textual) | ||||||||
Converted common stock, shares | 1,897,000,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies (Textual) | |
Royalty, percentage | 7.00% |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Sep. 24, 2019 | Sep. 23, 2019 | Sep. 20, 2019 | Jun. 30, 2019 |
Subsequent Events (Textual) | ||||
Converted into common stock shares | 378,720,945 | |||
Eagle Note [Member] | Subsequent Event [Member] | ||||
Subsequent Events (Textual) | ||||
Agreement, description | The Company entered into a Securities Purchase Agreement (the “Eagle Securities Purchase Agreement”) dated September 18, 2019, with Eagle Equities, LLC (“Eagle”) for the sale of an 8% Convertible Redeemable Note in the amount of $27,500 (the “Eagle Note”). Pursuant to the terms of the Eagle Securities Purchase Agreement, the Company issued the Eagle Note with a $2,500 original issue discount and paid Eagle’s legal fees of $2,000 out of the proceeds of the Eagle Note. | |||
Notes, description | The Eagle Note bears interest at the rate of 8% per annum. All interest and principal must be repaid on September 18, 2020 (the “Eagle Note Maturity Date”). The Eagle Note is convertible into common stock at any time, at Eagle’s option, at a price equal to 65% of the lowest closing bid price of the common stock during the fifteen trading days prior to conversion. The Eagle Note may not be prepaid more than 180 days prior to the Eagle Note Maturity Date. In the event the Company prepays the Eagle Note in full during the 180 days prior to the Eagle Note Maturity Date, the Company must pay off all principal, interest and any other amounts owing multiplied by a premium ranging from 5% to 30%. | |||
Interest rate percentage | 8.00% | |||
Note principal amount | $ 27,500 | |||
Odyssey Note [Member] | Subsequent Event [Member] | ||||
Subsequent Events (Textual) | ||||
Agreement, description | The Company entered into a Securities Purchase Agreement (the “Odyssey Securities Purchase Agreement”) dated September 18, 2019, with Odyssey Capital Funding, LLC (“Odyssey”) for the sale of a 12% Convertible Redeemable Note in the amount of $35,000 (the “Odyssey Note”). Pursuant to the terms of the Odyssey Securities Purchase Agreement, the Company paid Odyssey’s legal fees of $2,000 out of the proceeds of the Odyssey Note. | |||
Notes, description | The Odyssey Note bears interest at the rate of 12% per annum. All interest and principal must be repaid on September 18, 2020 (the “Odyssey Note Maturity Date”). The Odyssey Note is convertible into common stock at any time after the six month anniversary of the Odyssey Note, at Odyssey’s option, at a price equal to 60% of the lowest trading price of the common stock during the twenty trading days prior to conversion. The Odyssey Note may not be prepaid more than 180 days prior to the Odyssey Note Maturity Date. In the event the Company prepays the Odyssey Note in full during the 180 days prior to the Odyssey Note Maturity Date, the Company must pay off all principal, interest and any other amounts owing multiplied by a premium ranging from 25% to 45%. | |||
Interest rate percentage | 12.00% | |||
Note principal amount | $ 35,000 | |||
GS Capital Note [Member] | Subsequent Event [Member] | ||||
Subsequent Events (Textual) | ||||
Agreement, description | The Company entered into a Securities Purchase Agreement (the “GS Capital Securities Purchase Agreement”) dated September 18, 2019, with GS Capital Partners, LLC (“GS Capital”) for the sale of an 8% Convertible Redeemable Note in the amount of $69,000 (the “GS Capital Note”). Pursuant to the terms of the GS Capital Securities Purchase Agreement, the Company issued the GS Capital Note with a $6,000 original issue discount and paid GS Capital’s legal fees of $3,000 out of the proceeds of the GS Capital Note. | |||
Notes, description | The GS Capital Note bears interest at the rate of 8% per annum. All interest and principal must be repaid on September 18, 2020 (the “GS Capital Note Maturity Date”). The GS Capital Note is convertible into common stock at any time after the six month anniversary of the GS Capital Note, at GS Capital’s option, at a price equal to 50% of the lowest trading price of the common stock during the twenty trading days prior to conversion. The GS Capital Note may not be prepaid more than 180 days prior to the GS Capital Note Maturity Date. In the event the Company prepays the GS Capital Note in full during the 180 days prior to the GS Capital Note Maturity Date, the Company must pay off all principal, interest and any other amounts owing multiplied by a premium ranging from 20% to 40%. | |||
Interest rate percentage | 8.00% | |||
Note principal amount | $ 69,000 | |||
LG Capital Note [Member] | Subsequent Event [Member] | ||||
Subsequent Events (Textual) | ||||
Agreement, description | The Company entered into a Securities Purchase Agreement (the “LG Capital Securities Purchase Agreement” and together with the Eagle Securities Purchase Agreement, Odyssey Securities Purchase Agreement and GS Capital Securities Purchase Agreement, the “Securities Purchase Agreements”) dated September 18, 2019, with LG Capital Funding, LLC (“LG Capital”) for the sale of an 8% Convertible Redeemable Note in the amount of $25,000 (the “LG Capital Note” and together with the Eagle Note, Odyssey Note and GS Capital Note, the “Notes”). Pursuant to the terms of the LG Capital Securities Purchase Agreement, the Company paid LG Capital’s legal fees of $2,000 out of the proceeds of the LG Capital Note. | |||
Notes, description | The LG Capital Note bears interest at the rate of 8% per annum. All interest and principal must be repaid on September 18, 2020 (the “LG Capital Note Maturity Date”). The LG Capital Note is convertible into common stock at any time after the six month anniversary of the LG Capital Note, at LG Capital’s option, at a price equal to 60% of the lowest trading price of the common stock during the twenty trading days prior to conversion. The LG Capital Note may not be prepaid more than 180 days prior to the LG Capital Note Maturity Date. In the event the Company prepays the LG Capital Note in full during the 180 days prior to the LG Capital Note Maturity Date, the Company must pay off all principal, interest and any other amounts owing multiplied by a premium ranging from 25% to 45%. | |||
Interest rate percentage | 8.00% | |||
Note principal amount | $ 25,000 |