Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2021 | May 06, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | Ameramex International Inc | |
Entity Central Index Key | 0001776048 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2021 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-56054 | |
Entity Incorporation State Code | NV | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | AMMX | |
Entity Reporting Status Current | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 14,548,851 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 |
UNAUDITED BALANCE SHEETS
UNAUDITED BALANCE SHEETS - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash | $ 337,600 | $ 407,881 |
Accounts Receivable, Net | 1,763,281 | 768,371 |
Inventory | 6,630,817 | 5,873,569 |
Other Current Assets | 232,291 | 198,531 |
Total Current Assets | 8,963,989 | 7,248,352 |
Property and Equipment, Net | 968,972 | 1,035,840 |
Rental Equipment, Net | 3,114,425 | 3,624,376 |
Deferred Tax Assets, Net | 4,249 | 158,124 |
Other Assets | 435,862 | 453,410 |
Total Noncurrent Assets | 4,523,508 | 5,271,750 |
TOTAL ASSETS | 13,487,497 | 12,520,102 |
Current Liabilities: | ||
Accounts Payable | 1,253,413 | 620,200 |
Accrued Expenses | 347,316 | 231,329 |
Joint Venture Liability | 594,747 | 439,500 |
Lines of Credit | 5,165,554 | 5,749,801 |
Notes Payable, Current Portion | 1,026,552 | 911,265 |
Convertible Note | 194,686 | 150,683 |
Total Current Liabilities | 8,582,268 | 8,102,778 |
Long-Term Liabilities | ||
Notes Payable - Related Party | 239,412 | 226,659 |
Notes Payable, Net of Current Portion | 2,707,258 | 2,597,935 |
Total Noncurrent Liabilities | 2,946,670 | 2,824,594 |
TOTAL LIABILITIES | 11,528,938 | 10,927,372 |
Commitments and Contingencies (Note 11) | ||
Stockholders' Equity | ||
Preferred Stock, $0.001 par value, 5,000,000 shares authorized, no shares issued and outstanding | ||
Common Stock, $0.001 par value, 1,000,000,000 shares authorized 14,548,851 shares issued and outstanding at March 31, 2021 and December 31,2020 | 14,549 | 14,549 |
Additional Paid-In Capital | 21,545,614 | 21,545,614 |
Accumulated Deficit | (19,601,604) | (19,967,433) |
Total Stockholders' Equity | 1,958,559 | 1,592,730 |
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ 13,487,497 | $ 12,520,102 |
UNAUDITED BALANCE SHEETS (Paren
UNAUDITED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred Stock, authorized | 5,000,000 | 5,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, authorized | 1,000,000,000 | 1,000,000,000 |
Common Stock, issued | 14,548,851 | 14,548,851 |
Common Stock, outstanding | 14,548,851 | 14,548,851 |
UNAUDITED STATEMENTS OF OPERATI
UNAUDITED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
REVENUES | ||
Total Revenues | $ 4,029,696 | $ 1,438,469 |
COST OF SALES | ||
Total Cost of Revenues | 2,857,988 | 994,258 |
GROSS PROFIT | 1,171,708 | 444,211 |
OPERATING EXPENSES | ||
Selling Expense | 139,189 | 88,833 |
General and Administrative | 244,303 | 268,523 |
Total Operating Expenses | 383,492 | 357,356 |
Profit From Operations | 788,216 | 86,855 |
OTHER INCOME (EXPENSE) | ||
Interest Expense | (267,057) | (261,110) |
Loss from Early Extinguishment of Debt | (12,333) | |
Other Income | 10,078 | |
Total Other Income (Expense) | (269,312) | (261,110) |
INCOME BEFORE PROVISION (BENEFIT) for INCOME TAXES | 518,904 | (174,255) |
PROVISION (BENEFIT) for INCOME TAXES | 153,075 | (46,176) |
NET PROFIT (LOSS) | $ 365,829 | $ (128,079) |
Weighted Average Shares Outstanding: | ||
Basic (in shares) | 14,549,155 | 15,068,318 |
Diluted (in shares) | 14,549,155 | 15,068,318 |
Earnings (loss) per Share | ||
Basic (in dollars per share) | $ 0.03 | $ 0.01 |
Diluted (in dollars per share) | $ 0.03 | $ 0.01 |
Sales of Equipment and Other Revenues [Member] | ||
REVENUES | ||
Total Revenues | $ 3,245,982 | $ 912,315 |
COST OF SALES | ||
Total Cost of Revenues | 2,613,032 | 745,952 |
Rentals and Leases [Member] | ||
REVENUES | ||
Total Revenues | 783,714 | 526,154 |
COST OF SALES | ||
Total Cost of Revenues | $ 244,956 | $ 248,306 |
UNAUDITED STATEMENTS OF STOCKHO
UNAUDITED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Deficit [Member] | Total |
Balance, Beginning at Dec. 31, 2019 | $ 15,068 | $ 21,519,435 | $ (19,384,743) | $ 2,149,760 | |
Balance, Beginning (in shares) at Dec. 31, 2019 | 15,068,318 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income | (128,079) | (128,079) | |||
Balance, End at Mar. 31, 2020 | $ 15,068 | 21,519,435 | (19,512,822) | 2,021,681 | |
Balance, End (in shares) at Mar. 31, 2020 | 15,068,318 | ||||
Balance, Beginning at Dec. 31, 2020 | $ 14,549 | 21,545,614 | (19,967,433) | 1,592,730 | |
Balance, Beginning (in shares) at Dec. 31, 2020 | 14,549,155 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income | 365,829 | 365,829 | |||
Balance, End at Mar. 31, 2021 | $ 14,549 | $ 21,545,614 | $ (19,601,604) | $ 1,958,559 | |
Balance, End (in shares) at Mar. 31, 2021 | 14,549,155 |
UNAUDITED STATEMENTS OF CASH FL
UNAUDITED STATEMENTS OF CASH FLOW - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CASH FROM OPERATING ACTIVITIES | ||
Net Profit (Loss) | $ 365,829 | $ (128,079) |
Adjustments to reconcile Net Income (Loss) to Net Cash Used In Operating Activities: | ||
Depreciation and Amortization | 258,148 | 337,673 |
Provision/Benefit for Deferred Income Taxes | 153,875 | (46,176) |
Loss on Early Extinguishment of Debt | 12,333 | |
Changes in Operating Assets and Liabilities: | ||
Accounts Receivable | (994,910) | 110,486 |
Inventory | (757,248) | (1,943,023) |
Other Current Assets | (16,212) | 25,417 |
Accounts Payable | 633,213 | 107,097 |
Accrued Expenses | 115,987 | (25,232) |
NET CASH USED IN OPERATING ACTIVITIES | (228,985) | (1,561,837) |
INVESTING ACTIVITIES: | ||
Payments for Property & Equipment | (6,501) | (20,416) |
Payments for Rental Equipment | 304,755 | (18,589) |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | 298,254 | (39,005) |
FINANCING ACTIVITIES: | ||
Proceeds from Notes Payable & Convertible Instruments | 529,630 | 2,900,600 |
Payments on Notes Payable & Convertible Instruments | (252,934) | (129,950) |
Advance (Payment) on Note Payable - Related Party | 12,753 | (4,568) |
Joint Venture Liability | 155,247 | (17,500) |
Net Borrowings Under Lines of Credit | (584,246) | (1,075,247) |
NET CASH PROVIDED BY FINANCING ACTIVITIES | (139,550) | 1,673,335 |
NET INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS | (70,281) | 72,493 |
CASH, BEGINNING OF PERIOD | 407,881 | 114,504 |
CASH, END OF PERIOD | 337,600 | 186,997 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Cash Paid for Interest | 201,278 | 259,808 |
Cash Paid for Income Taxes | ||
SUPPLEMENTAL DISCLOSURES OF NON CASH INVESTING AND FINANCING ACTIVITIES: | ||
Transfer of Inventory to Rental Equipment | 508,000 | |
Equipment Financed Under Capital Leases | 197,186 | |
Transfer of Rental Equipment to Inventory | $ 964,600 |
Organization and Basis of Prese
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Note 1 - Organization and Basis of Presentation Organization and Line of Business AmeraMex International, Inc., (the “Company”) was incorporated on May 29, 1990 under the laws of the state of Nevada. The Company sells, leases and rents new and refurbished heavy equipment primarily in the U.S. The Company operates under the name of Hamre Equipment. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting Policies Liquidity Considerations At March 31, 2021, the Company had working capital of approximately $381,721. On February 9, 2021, the Company received a second Paycheck Protection Program (PPP) loan in the amount of $254,147. The Company expects to receive 100% forgiveness of this loan. On April 6, 2021, the Company received notice that the SBA had increased the limit on the Economic Injury Disaster Loan program (EIDL) from $150,000 to $500,000. The Company requested the increase and expects to be funded within the next six to eight weeks. The Company is currently applying to the United States Small Business Administration (SBA) for a separate loan with specific terms as follows: principal loan amount of 45% of its gross earned revenue from 2019 or $10,000,000 whichever is less; interest rate of 2% to 6%; and a 30-year term. The Company has met all qualifications but there can be no assurance that the Company will receive such loan at this time. Moving forward, the Company expects to generate sufficient cash flows from operations to meet its obligations, and expects to continue to obtain financing for equipment purchases in the normal course of business. The Company believes that its expected cash flows from operations, together with its current or a future new credit facility, will be sufficient to operate in the normal course of business for the next 12 months. Risks and Uncertainties In March 2020, the World Health Organization declared a novel strain of coronavirus (“COVID-19”) a pandemic, as a result of which the Company is subject to additional risks and uncertainties. In response to the pandemic, governments and organizations have taken preventative or protective actions, such as temporary closures of non-essential businesses and “shelter-at-home” guidelines for individuals. As a result, the global economy has been negatively affected, and the Company’s business has been negatively affected in a number of ways. The Company has had several large transactions that have been put on hold until the State of California is completely reopened. In addition, the Company has all sales, administrative and account employees working from home. Shop employees are practicing social distancing and only one customer is allowed in the facility at a time. Most directly, a number of states and local governments have taken steps that have prohibited or curtailed the sale of equipment or curtailed construction activities during the pandemic. In some jurisdictions, shelter-at-home orders, or other orders related to the pandemic, have impeded and continue to impede equipment sales. The severity of the impact of COVID-19 on the Company’s business will depend on a number of factors, including, but not limited to, the duration and severity of the pandemic and the extent and severity of the impact on the Company’s customers, all of which are uncertain and cannot be predicted. The Company’s future results of operations and liquidity could be adversely impacted by delays in payments of outstanding receivable amounts beyond normal payment terms. Given the dynamic nature of this situation, the Company cannot predict with absolute certainty, the ultimate impact of COVID-19 on its financial condition, results of operations or cash flows. Basis of Presentation The unaudited interim 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, within the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Certain information and disclosures normally included in the annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The unaudited interim financial statements have been prepared on a basis consistent with the audited financial statements and in the opinion of management, reflect all adjustments, consisting of only normal recurring adjustments, necessary for the fair presentation of the results for the interim periods presented and of the financial condition as of the date of the interim balance sheet. The financial data and the other information disclosed in these notes to the interim financial statements related to the three and nine-month periods are unaudited. Unaudited interim results are not necessarily indicative of the results for the full fiscal year. These unaudited interim financial statements should be read in conjunction with the financial statements of the Company for the year ended December 31, 2020 and notes thereto that are included in the Company’s Annual Report on Form 10-K. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. It is possible that accounting estimates and assumptions may be material to the Company due to the levels of subjectivity and judgment involved. Significant estimates in these unaudited interim financial statements include the allowance for doubtful accounts, inventory allowances, convertible notes policy and estimated useful life of property and equipment. Convertible Debt and Preferred Stock, and Embedded Derivatives Convertible debt is accounted for under the guidelines established by Accounting Standards Codification (“ASC”) 470-20, Debt with Conversion and Other Options Many of the conversion features embedded in the Company’s notes become variable upon the event of default or upon the passage of time in the event the Company does not repay the notes, at a premium, at 180 days from issuance of the note. If the conversion price is adjusted based on a discount to the market price of the Company’s common stock, the number of shares upon conversion is potentially unlimited. In the event we cannot control the net share settlement and cash settlement, we record the embedded conversion feature as a derivate instrument, at fair value. The excess of fair value of the embedded conversion feature, together with the original issue discounts, warrants, and issue costs over the face value of the debt, is recorded as an immediate charge in the accompanying statements of operations and cash flows. Each reporting period, the Company will compute the estimated fair value of derivatives and record changes to operations. The discounts are accreted over the term of the debt, which is generally six months after the notes become convertible, using the effective interest method. ASC 470-50, Extinguishments Line of Credit Issuance Costs The Company capitalizes and amortizes direct issue costs incurred in connection with its line of credit arrangement. On or about March 30, 2019 (see Note 6), the Company incurred $245,000 in costs comprised of origination fees totaling approximately $180,000 and appraisal costs of approximately $65,000. These costs are amortized on a straight-line basis over the term of the debt. Included in Other Assets in the accompanying balance sheet at March 31, 2021 are unamortized loan fees of $75,557. During the three months ended March 31, 2021 and 2020, the Company amortized $20,417 and $20,417 in loan fees, respectively. Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”) which supersedes ASC Topic 840, Leases. ASU 2016-02 requires lessees to recognize a right-of-use asset and a lease liability on their balance sheets for all leases with terms greater than 12 months. Based on certain criteria, leases will be classified as either financing or operating, with classification affecting the pattern of expense recognition in the income statement. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. ASU 2016-02 is effective for fiscal years beginning after December 15, 2020 for smaller reporting companies, and interim periods within those years, with early adoption permitted. The Company will adopt this new standard on January 1, 2021. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. In July 2018, the FASB issued ASU No. 2018-11, “Leases (Topic 842): Targeted Improvements” that allows entities to apply the provisions of the new standard at the effective date, as opposed to the earliest period presented under the modified retrospective transition approach and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The modified retrospective approach includes a number of optional practical expedients primarily focused on leases that commenced before the effective date of Topic 842, including continuing to account for leases that commence before the effective date in accordance with previous guidance, unless the lease is modified. The Company currently expects that most of its operating lease commitments will be subject to the new standard and recognized as operating lease liabilities and right-of-use assets upon its adoption of Topic 842, which will increase the total assets and total liabilities that the Company reports relative to such amounts prior to adoption. |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 3 – Inventory Inventory as of March 31, 2021 and December 31, 2020 consisted of the following: March 31, 2021 December 31, 2020 Parts and supplies $ 307,751 $ 292,616 Heavy equipment 6,323,066 5,580,953 Total $ 6,630,817 $ 5,873,569 All of the inventory is used as collateral for the line of credit and notes payable (see Notes 6 and 8). |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 4 – Property and Equipment Property and equipment includes assets held for internal use; as of March 31, 2021 and December 31, 2020, such consisted of the following: March 31, 2021 December 31, 2020 Furniture and fixtures $ 107,105 $ 107,105 Leasehold improvements 467,188 467,188 Vehicles and Equipment 1,625,691 1,619,191 Total, at cost 2,199,984 2,193,484 Less - Accumulated depreciation (1,231,012 ) (1,157,644 ) Total, Net $ 968,972 $ 1,035,840 Depreciation expense for the three months ended March 31, 2021 and 2020 was $73,369 and $68,950, respectively. All of the property and equipment is used as collateral for the line of credit and notes payable (see Notes 6 and 8). |
Rental Equipment
Rental Equipment | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Rental Equipment | Note 5 – Rental Equipment Rental equipment as of March 31, 2021 and December 31, 2020 consisted of the following: March 31, 2021 December 31, 2020 Rental equipment $ 5,405,293 $ 6,480,478 Less - Accumulated depreciation (2,290,868 ) (2,856,102 ) Total, Net $ 3,114,425 $ 3,624,376 Depreciation expense for the three months ended March 31, 2021 and 2020 was $184,779 and $248,306, respectively. All of the rental equipment is used as collateral for the line of credit and notes payable (see Notes 6 and 8). |
Lines of Credit
Lines of Credit | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Lines of Credit | Note 6 – Lines of Credit On May 22, 2020, the limit on the line of credit with a finance company that provides for borrowing up to $500,000 was increased to $1,050,000. The line of credit is secured by the equipment purchased and is interest free if paid within 180 days from the finance date. After the applicable free interest period, interest calculates as follows: 30 day LIBOR plus 6.75% - rate after Free Period to Day 365, 30 day LIBOR plus 7.00% - Rate Day 366 to 720, 30 Day LIBOR plus 7.25% - Rate Day 721 to 1095, 30 Day LIBOR plus 12.00% Matured Rate Day 1096 and above. Each piece of equipment has its own calculations based on the date of purchase. At March 31, 2021 and December 31, 2020, the amounts outstanding under this line of credit agreement were $110,224 with $939,776 available and $314,400 with $736,000 available, respectively. Interest expense for the three months ended March 31, 2021 and 2020 was $2,344 and $295, respectively. The agreement has no expiration date provided the Company does not default. On or about March 31, 2019, the Company entered into a line of credit with a finance company that provides for borrowing and refinancing up to $6.5 million. The credit facility expires March 22, 2022. Interest is due monthly at a rate of 10%, per annum. Principal only becomes due and payable if the Company reaches the maximum balance under the credit facility, which management does not expect to reach. If the maximum balance is reached, the principal becomes payable at 1.25% of the outstanding principal balance per month. The line of credit is secured by substantially all of the Company’s assets, other than those specifically secured by an existing agreement. At March 31, 2021 and December 31, 2020, the amounts outstanding under this line of credit agreement were $5,055,333 with $1,444,667 available for purchases and $5,300,840 with $1,199,160 available, respectively. Interest expense for the three months ended March 31, 2021 and 2020 was $135,535 and $158,495, respectively. |
Related-Party Transactions
Related-Party Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Note 7 – Related-Party Transactions Related-Party Note Payable The Company has a note payable to the Company’s President. The note is interest bearing at 10% per annum, unsecured and payable upon demand. The balance of the note at March 31, 2021 and December 31, 2020 was $239,412 and $226,659, respectively. During the three months ended March 31, 2021 the note increased by $12,753 and during the same time in 2020, the Company repaid $11,844 on this note payable. The note incurred $9,557 and $7,276 in interest expense for the three months ended March 31, 2021 and 2020, respectively. Lease The Company leases a building and real property in Chico, California under a one year lease agreement from a trust whose trustee is the Company’s President. The lease provides for monthly lease payments of $9,800 per month, and expired on December 1, 2017. The Company was leasing the building and real property at the same rate on a month-to-month lease until March 1, 2020 when a one-year agreement was signed renewable at anniversary for up to ten years. The new lease provides for monthly lease payments of $12,000. Rent expense during the three months ended March 31, 2021 and 2020, was $36,000 and $31,635, respectively. Transactions with Director Two separate customers lost financing for purchases of equipment after already receiving the machines, so the Company sold the machines to the brokerage company of one of the Company’s Directors. The customers are now renting the machines on a rent to own basis and the Company is purchasing the machines from the brokerage. The Company has two notes payable tied to these transactions that, at March 31, 2021 and December 31, 2020, have a combined total due of $153,705 and $168,151 respectively. The brokerage made $42,681 on the transactions. The notes are secured by the equipment. The Company also has two notes payable that were brokered through the same Director’s company. The notes are secured with equipment and as of March 31, 2021 and December 31, 2020 have a combined total due of $675,695 and $744,424, respectively. |
Notes Payable
Notes Payable | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Notes Payable | Note 8 – Notes Payable Notes payable as of March 31, 2021 and December 31, 2020 consisted of the following: March 31, 2021 December 31, 2020 Payable to insurance company; secured by cash surrender value of life insurance policy; no due date $ 158,535 $ 158,535 Note Payable to finance company dated June 17, 2019; interest at 2.90% per annum; monthly payments of $4,749; due 48 months from issuance; secured by equipment 106,544 141,489 Note Payable to finance company dated September 26, 2019; interest at 10.228% per annum; monthly payments of $4,383; due 60 months from issuance; secured by equipment 149,473 156,267 Note Payable to finance company dated September 13, 2019; interest at 2.90% per annum; monthly payments of $3,422; due at 48 months from issuance; secured by equipment 98,921 105,264 Note Payable to finance company dated September 18, 2019; interest at 10.52% per annum; monthly payments of $2,143; due at 35 months from issuance; secured by equipment 33,705 39,151 Note Payable to finance company dated November 1, 2019; interest at 0.0% per annum; monthly payments of $3,000; due 52 months from issuance; final payment of $12,000; secured by equipment 120,000 129,000 Note Payable to finance company dated November 22, 2019; interest at 0.0% per annum; monthly payments of $934; due 24 months from issuance; secured by equipment 10,120 12,030 Note Payable to finance company dated February 19, 2020; interest at 8.0% per annum; monthly payments of $16,500 for the first 6 months then $11,520 for the remaining 36 months; due 42 months from issuance; secured by equipment 302,867 330,995 Note Payable to finance company dated February 13, 2020; interest at 10.35% per annum; monthly payments of $28,903; due 12 months from issuance; unsecured — 48,169 Note Payable to finance company dated March 20, 2020; interest at 5.0% per annum; monthly payments of $6,135.98; due 60 months from issuance; secured by equipment 271,324 286,277 Note Payable to finance company dated March 20, 2020; interest at 5.0% per annum; monthly payments of $6,135.98; due 60 months from issuance; secured by equipment 271,324 286,277 Note Payable to finance company dated March 20, 2020; interest at 5.0% per annum; monthly payments of $6,135.98; due 60 months from issuance; secured by equipment 271,324 286,277 Note Payable to finance company dated March 20, 2020; interest at 5.0% per annum; monthly payments of $6,135.98; due 60 months from issuance; secured by equipment 271,324 286,277 Note Payable to finance company dated May 1, 2020; interest at 4.95% per annum; monthly payments of $5,709.31; due 60 months from issuance; secured by equipment 171,617 181,132 Note Payable to finance company dated May 22, 2020; interest at 10.582% per annum; monthly payments of $1,489.66; due 60 months from issuance; secured by equipment 59,062 61,918 Note Payable to Small Business Administration, 1% interest per annum, due in installments from month seven (7) to April 21, 2022. Requested forgiveness. 3.75% on portion not forgiven; monthly payments of $731.00; twelve (12) months deferred for a thirty year term 413,017 170,000 Note Payable to finance company dated June 22, 2020; interest at 10.582% per annum; monthly payments of $1,037.45; due 36 months from issuance; secured by equipment 24,184 26,413 Note Payable to finance company dated June 18, 2020; interest at 4.99% per annum; monthly payments of $1,207.47; due 60 months from issuance; secured by equipment 55,386 58,293 Note Payable to finance company dated June 22, 2020; interest at 10.582% per annum; monthly payments of $3,377.42; due 60 months from issuance; secured by equipment 138,124 144,475 Note Payable to finance company dated August 21, 2020; interest at 3.99% per annum; monthly payments of $4,456.50; due 60 months from issuance; secured by equipment 37,844 39,863 Note Payable to finance company dated September 16, 2020; interest at 4.85% per annum; monthly payments of $4,778.59; due 36 months from issuance; secured by equipment 139,287 147,670 Note Payable to finance company dated October 9, 2020; interest at 8.90% per annum; monthly payment of $16,500 for 5 months; then $10,158.19; due 48 months from issuance; secured by equipment 372,828 413,428 Note Payable to finance company dated February 19, 2021; interest at 14%; principal and interest due 90 days from issuance; secured by equipment 132,000 — Note Payable to finance company dated March 25, 2021; six monthly payments at $6,000 then one payment of $97,500 125,000 — Total 3,733,810 3,509,200 Less current portion 1,026,552 911,265 Long-term portion $ 2,707,258 $ 2,597,935 Interest expense for all notes payable for the three months ended March 31, 2021 and 2020 was $46,837 and $51,756, respectively. |
Convertible Notes
Convertible Notes | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Convertible Notes | Note 9 – Convertible Notes On or about July 20, 2020 and again on September 16, 2020, the Company and Geneva Roth Remark Holdings, Inc., a New York corporation (“Geneva”) entered into a Securities Purchase Agreement (the “Purchase Agreement”) by which Geneva purchased and the Company issued and sold convertible notes of the Company, in the aggregate principal amount of $120,000 (the “Notes”), convertible into shares of common stock of the Company (the “Common Stock”), with an interest rate of 10% per annum, and maturity dates of July 20, 2021 and September 16, 2021, respectively, net of direct loan costs of approximately $6,000. The July 20, 2020 note was paid in full on January 15, 2021. The September 16, 2020 note was paid in full on March 19, 2021. Payment amounts were $89,244 and $84,972, respectively. All shares which had been reserved for potential conversion of the notes were released upon payment of the notes. On January 21, 2021, the Company entered into a securities purchase agreement with Geneva whereby Geneva purchased 103,500 shares of Series A Preferred Stock for a purchase price of $103,500. After payment of transaction-related expenses, net proceeds to the Company were $100,000. The proceeds were used for working capital. On March 23, 2021, the Company entered into a second securities purchase agreement with Geneva whereby Geneva purchased 78,000 shares of Series A Preferred Stock for a purchase price of $78,000. After payment of transaction-related expenses, net proceeds to the Company were $75,000. The proceeds were used for working capital. The Series A Preferred Stock earns dividends at a rate of 10% per annum, and dividends at a default rate of 22%. The shares of Series A Preferred Stock have a stated value of $1.00 per share and are convertible at 70% of the lowest closing bid price of the Common Stock in the ten days preceding a conversion. At any time during the period indicated below, after the date of the issuance of shares of Series A Preferred Stock (each respectively an “Issuance Date”), the Company will have the right, at the Company’s option, to redeem all of the shares of Series A Preferred Stock by paying an amount equal to (i) the number of shares of Series A Preferred Stock multiplied by then Stated Value (including and accrued dividends); (ii) multiplied by the corresponding percentage as indicated in the chart below: Prepayment Period Prepayment Percentage 1. The period beginning on the Issue Date and ending on the date which is 60 days following the Issue Date. 120% 2. The period beginning on the date which is 61 days following the Issue Date and ending on the date which is 90 days following the Issue Date. 125% 3. The period beginning on the date that is 91 days from the Issue Date and ending 150 days following the Issue Date. 130% 4. The period beginning on the date that is 151 days from the Issue Date and ending 180 days following the Issue Date. 135% After the expiration of 180 days following the Issuance Date, except for the Mandatory Redemption, the Company shall have no right to redeem the Series A Preferred Stock unless otherwise agreed to with the Holder. If the Series A Preferred Stock is not redeemed, at any time on and following the six-month anniversary of the Issuance Date, the Series A Preferred Stock shall be convertible into shares of Common Stock at the option of the Holder. In the event of a conversion of any Series A Preferred Stock, the Company shall issue to the Holder a number of Common Stock equal to: (i) the then Stated Value; multiplied by (ii) the number of shares of Series A Preferred Stock being converted by the Holder as set forth in the Conversion Notice; divided by (iii) the Conversion Price. The Conversion Price shall equal a discount of 30% off of the Trading Price. The Trading Price shall be the lowest closing bid price for the Common Stock during the prior ten trading day period (“Trading Price”). The Holder will be limited to convert no more than 4.99% of the issued and outstanding Common Stock at time of conversion at any one time. An aggregate of 9,896,500 shares of Common Stock have been reserved for issuance for possible conversion of the Series A Preferred Stock. |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Note 10 – Revenues During the three months ended March 31, 2021 and 2020, revenues and costs related to domestic and foreign sales of equipment are as follows: March 31, 2021 March 31, 2020 Equipment Revenues and Other Domestic $ 3,245,982 $ 912,315 Export — — Total Revenues and Other $ 3,245,982 $ 912,315 Cost of Revenues and Other Domestic $ 2,613,032 $ 745,952 Export — — Total Cost of Revenues and Other 2,613,032 745,952 Gross Profit $ 632,950 $ 166,363 During the three months ended March 31, 2021 and 2020, there were no foreign rentals of equipment. |
Joint Venture
Joint Venture | 3 Months Ended |
Mar. 31, 2021 | |
Joint Venture Abstract | |
Joint Venture | Note 11 – Joint Venture In 2019, the Company entered into a joint venture with one of its long-time collaborators whereby costs and profits are shared equally. This arrangement was made in order to purchase 30 machines from a closing terminal in Seattle, Washington for $1,089,000. The machines were titled in the Company’s name, and accordingly, revenues and costs are recorded in the Company’s financial statements. During the three months ended March 31, 2021, the Company had three sales of such equipment and recorded its partner’s share of 50% of the profits totaling $155,257. The amount due to the collaborator as of March 31, 2021 and December 31, 2020 was $594,747 and $439,500, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12 – Commitments and Contingencies From time to time, the Company is involved in routine litigation that arises in the ordinary course of business. At the present time, the Company is not involved in any litigation. See Note 7 for related party operating lease. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity | |
Stockholders' Equity | Note 13 – Stockholders’ Equity The Company has authorized 5,000,000 shares of $0.001 par value preferred stock, of which 1,000,000 shares have been designated as Series A Convertible Preferred Stock of which 181,500 shares are issued and outstanding as of March 31, 2021 and zero as of December 31, 2020. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 14 – Subsequent Events On April 28, 2021, the Company paid out 80,000 fully vested shares of the Company’s Common Stock as final payment per the contract between the Company and M Vest LLC, an SEC registered, FINRA member broker-dealer for services. The shares of Common Stock have unlimited piggyback registration rights and the same rights afforded other holders of the Company’s Common Stock. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Liquidity Considerations | Liquidity Considerations At March 31, 2021, the Company had working capital of approximately $381,721. On February 9, 2021, the Company received a second Paycheck Protection Program (PPP) loan in the amount of $254,147. The Company expects to receive 100% forgiveness of this loan. On April 6, 2021, the Company received notice that the SBA had increased the limit on the Economic Injury Disaster Loan program (EIDL) from $150,000 to $500,000. The Company requested the increase and expects to be funded within the next six to eight weeks. The Company is currently applying to the United States Small Business Administration (SBA) for a separate loan with specific terms as follows: principal loan amount of 45% of its gross earned revenue from 2019 or $10,000,000 whichever is less; interest rate of 2% to 6%; and a 30-year term. The Company has met all qualifications but there can be no assurance that the Company will receive such loan at this time. Moving forward, the Company expects to generate sufficient cash flows from operations to meet its obligations, and expects to continue to obtain financing for equipment purchases in the normal course of business. The Company believes that its expected cash flows from operations, together with its current or a future new credit facility, will be sufficient to operate in the normal course of business for the next 12 months. |
Risks and Uncertainties | Risks and Uncertainties In March 2020, the World Health Organization declared a novel strain of coronavirus (“COVID-19”) a pandemic, as a result of which the Company is subject to additional risks and uncertainties. In response to the pandemic, governments and organizations have taken preventative or protective actions, such as temporary closures of non-essential businesses and “shelter-at-home” guidelines for individuals. As a result, the global economy has been negatively affected, and the Company’s business has been negatively affected in a number of ways. The Company has had several large transactions that have been put on hold until the State of California is completely reopened. In addition, the Company has all sales, administrative and account employees working from home. Shop employees are practicing social distancing and only one customer is allowed in the facility at a time. Most directly, a number of states and local governments have taken steps that have prohibited or curtailed the sale of equipment or curtailed construction activities during the pandemic. In some jurisdictions, shelter-at-home orders, or other orders related to the pandemic, have impeded and continue to impede equipment sales. The severity of the impact of COVID-19 on the Company’s business will depend on a number of factors, including, but not limited to, the duration and severity of the pandemic and the extent and severity of the impact on the Company’s customers, all of which are uncertain and cannot be predicted. The Company’s future results of operations and liquidity could be adversely impacted by delays in payments of outstanding receivable amounts beyond normal payment terms. Given the dynamic nature of this situation, the Company cannot predict with absolute certainty, the ultimate impact of COVID-19 on its financial condition, results of operations or cash flows. |
Basis of Presentation | Basis of Presentation The unaudited interim 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, within the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Certain information and disclosures normally included in the annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The unaudited interim financial statements have been prepared on a basis consistent with the audited financial statements and in the opinion of management, reflect all adjustments, consisting of only normal recurring adjustments, necessary for the fair presentation of the results for the interim periods presented and of the financial condition as of the date of the interim balance sheet. The financial data and the other information disclosed in these notes to the interim financial statements related to the three and nine-month periods are unaudited. Unaudited interim results are not necessarily indicative of the results for the full fiscal year. These unaudited interim financial statements should be read in conjunction with the financial statements of the Company for the year ended December 31, 2020 and notes thereto that are included in the Company’s Annual Report on Form 10-K. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. It is possible that accounting estimates and assumptions may be material to the Company due to the levels of subjectivity and judgment involved. Significant estimates in these unaudited interim financial statements include the allowance for doubtful accounts, inventory allowances, convertible notes policy and estimated useful life of property and equipment. |
Convertible Debt and Preferred Stock, and Embedded Derivatives | Convertible Debt and Preferred Stock, and Embedded Derivatives Convertible debt is accounted for under the guidelines established by Accounting Standards Codification (“ASC”) 470-20, Debt with Conversion and Other Options Many of the conversion features embedded in the Company’s notes become variable upon the event of default or upon the passage of time in the event the Company does not repay the notes, at a premium, at 180 days from issuance of the note. If the conversion price is adjusted based on a discount to the market price of the Company’s common stock, the number of shares upon conversion is potentially unlimited. In the event we cannot control the net share settlement and cash settlement, we record the embedded conversion feature as a derivate instrument, at fair value. The excess of fair value of the embedded conversion feature, together with the original issue discounts, warrants, and issue costs over the face value of the debt, is recorded as an immediate charge in the accompanying statements of operations and cash flows. Each reporting period, the Company will compute the estimated fair value of derivatives and record changes to operations. The discounts are accreted over the term of the debt, which is generally six months after the notes become convertible, using the effective interest method. ASC 470-50, Extinguishments |
Line of Credit Issuance Costs | Line of Credit Issuance Costs The Company capitalizes and amortizes direct issue costs incurred in connection with its line of credit arrangement. On or about March 30, 2019 (see Note 6), the Company incurred $245,000 in costs comprised of origination fees totaling approximately $180,000 and appraisal costs of approximately $65,000. These costs are amortized on a straight-line basis over the term of the debt. Included in Other Assets in the accompanying balance sheet at March 31, 2021 are unamortized loan fees of $75,557. During the three months ended March 31, 2021 and 2020, the Company amortized $20,417 and $20,417 in loan fees, respectively. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”) which supersedes ASC Topic 840, Leases. ASU 2016-02 requires lessees to recognize a right-of-use asset and a lease liability on their balance sheets for all leases with terms greater than 12 months. Based on certain criteria, leases will be classified as either financing or operating, with classification affecting the pattern of expense recognition in the income statement. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. ASU 2016-02 is effective for fiscal years beginning after December 15, 2020 for smaller reporting companies, and interim periods within those years, with early adoption permitted. The Company will adopt this new standard on January 1, 2021. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. In July 2018, the FASB issued ASU No. 2018-11, “Leases (Topic 842): Targeted Improvements” that allows entities to apply the provisions of the new standard at the effective date, as opposed to the earliest period presented under the modified retrospective transition approach and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The modified retrospective approach includes a number of optional practical expedients primarily focused on leases that commenced before the effective date of Topic 842, including continuing to account for leases that commence before the effective date in accordance with previous guidance, unless the lease is modified. The Company currently expects that most of its operating lease commitments will be subject to the new standard and recognized as operating lease liabilities and right-of-use assets upon its adoption of Topic 842, which will increase the total assets and total liabilities that the Company reports relative to such amounts prior to adoption. |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | Inventory as of March 31, 2021 and December 31, 2020 consisted of the following: March 31, 2021 December 31, 2020 Parts and supplies $ 307,751 $ 292,616 Heavy equipment 6,323,066 5,580,953 Total $ 6,630,817 $ 5,873,569 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Property and equipment includes assets held for internal use; as of March 31, 2021 and December 31, 2020, such consisted of the following: March 31, 2021 December 31, 2020 Furniture and fixtures $ 107,105 $ 107,105 Leasehold improvements 467,188 467,188 Vehicles and Equipment 1,625,691 1,619,191 Total, at cost 2,199,984 2,193,484 Less - Accumulated depreciation (1,231,012 ) (1,157,644 ) Total, Net $ 968,972 $ 1,035,840 |
Rental Equipment (Tables)
Rental Equipment (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of rental equipment | Rental equipment as of March 31, 2021 and December 31, 2020 consisted of the following: March 31, 2021 December 31, 2020 Rental equipment $ 5,405,293 $ 6,480,478 Less - Accumulated depreciation (2,290,868 ) (2,856,102 ) Total, Net $ 3,114,425 $ 3,624,376 |
Notes Payable (Tables)
Notes Payable (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of notes payable | Notes payable as of March 31, 2021 and December 31, 2020 consisted of the following: March 31, 2021 December 31, 2020 Payable to insurance company; secured by cash surrender value of life insurance policy; no due date $ 158,535 $ 158,535 Note Payable to finance company dated June 17, 2019; interest at 2.90% per annum; monthly payments of $4,749; due 48 months from issuance; secured by equipment 106,544 141,489 Note Payable to finance company dated September 26, 2019; interest at 10.228% per annum; monthly payments of $4,383; due 60 months from issuance; secured by equipment 149,473 156,267 Note Payable to finance company dated September 13, 2019; interest at 2.90% per annum; monthly payments of $3,422; due at 48 months from issuance; secured by equipment 98,921 105,264 Note Payable to finance company dated September 18, 2019; interest at 10.52% per annum; monthly payments of $2,143; due at 35 months from issuance; secured by equipment 33,705 39,151 Note Payable to finance company dated November 1, 2019; interest at 0.0% per annum; monthly payments of $3,000; due 52 months from issuance; final payment of $12,000; secured by equipment 120,000 129,000 Note Payable to finance company dated November 22, 2019; interest at 0.0% per annum; monthly payments of $934; due 24 months from issuance; secured by equipment 10,120 12,030 Note Payable to finance company dated February 19, 2020; interest at 8.0% per annum; monthly payments of $16,500 for the first 6 months then $11,520 for the remaining 36 months; due 42 months from issuance; secured by equipment 302,867 330,995 Note Payable to finance company dated February 13, 2020; interest at 10.35% per annum; monthly payments of $28,903; due 12 months from issuance; unsecured — 48,169 Note Payable to finance company dated March 20, 2020; interest at 5.0% per annum; monthly payments of $6,135.98; due 60 months from issuance; secured by equipment 271,324 286,277 Note Payable to finance company dated March 20, 2020; interest at 5.0% per annum; monthly payments of $6,135.98; due 60 months from issuance; secured by equipment 271,324 286,277 Note Payable to finance company dated March 20, 2020; interest at 5.0% per annum; monthly payments of $6,135.98; due 60 months from issuance; secured by equipment 271,324 286,277 Note Payable to finance company dated March 20, 2020; interest at 5.0% per annum; monthly payments of $6,135.98; due 60 months from issuance; secured by equipment 271,324 286,277 Note Payable to finance company dated May 1, 2020; interest at 4.95% per annum; monthly payments of $5,709.31; due 60 months from issuance; secured by equipment 171,617 181,132 Note Payable to finance company dated May 22, 2020; interest at 10.582% per annum; monthly payments of $1,489.66; due 60 months from issuance; secured by equipment 59,062 61,918 Note Payable to Small Business Administration, 1% interest per annum, due in installments from month seven (7) to April 21, 2022. Requested forgiveness. 3.75% on portion not forgiven; monthly payments of $731.00; twelve (12) months deferred for a thirty year term 413,017 170,000 Note Payable to finance company dated June 22, 2020; interest at 10.582% per annum; monthly payments of $1,037.45; due 36 months from issuance; secured by equipment 24,184 26,413 Note Payable to finance company dated June 18, 2020; interest at 4.99% per annum; monthly payments of $1,207.47; due 60 months from issuance; secured by equipment 55,386 58,293 Note Payable to finance company dated June 22, 2020; interest at 10.582% per annum; monthly payments of $3,377.42; due 60 months from issuance; secured by equipment 138,124 144,475 Note Payable to finance company dated August 21, 2020; interest at 3.99% per annum; monthly payments of $4,456.50; due 60 months from issuance; secured by equipment 37,844 39,863 Note Payable to finance company dated September 16, 2020; interest at 4.85% per annum; monthly payments of $4,778.59; due 36 months from issuance; secured by equipment 139,287 147,670 Note Payable to finance company dated October 9, 2020; interest at 8.90% per annum; monthly payment of $16,500 for 5 months; then $10,158.19; due 48 months from issuance; secured by equipment 372,828 413,428 Note Payable to finance company dated February 19, 2021; interest at 14%; principal and interest due 90 days from issuance; secured by equipment 132,000 — Note Payable to finance company dated March 25, 2021; six monthly payments at $6,000 then one payment of $97,500 125,000 — Total 3,733,810 3,509,200 Less current portion 1,026,552 911,265 Long-term portion $ 2,707,258 $ 2,597,935 |
Convertible Notes (Tables)
Convertible Notes (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of convertible notes | At any time during the period indicated below, after the date of the issuance of shares of Series A Preferred Stock (each respectively an “Issuance Date”), the Company will have the right, at the Company’s option, to redeem all of the shares of Series A Preferred Stock by paying an amount equal to (i) the number of shares of Series A Preferred Stock multiplied by then Stated Value (including and accrued dividends); (ii) multiplied by the corresponding percentage as indicated in the chart below: Prepayment Period Prepayment Percentage 1. The period beginning on the Issue Date and ending on the date which is 60 days following the Issue Date. 120% 2. The period beginning on the date which is 61 days following the Issue Date and ending on the date which is 90 days following the Issue Date. 125% 3. The period beginning on the date that is 91 days from the Issue Date and ending 150 days following the Issue Date. 130% 4. The period beginning on the date that is 151 days from the Issue Date and ending 180 days following the Issue Date. 135% |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of revenues and costs related to domestic and foreign sales of equipment | During the three months ended March 31, 2021 and 2020, revenues and costs related to domestic and foreign sales of equipment are as follows: March 31, 2021 March 31, 2020 Equipment Revenues and Other Domestic $ 3,245,982 $ 912,315 Export — — Total Revenues and Other $ 3,245,982 $ 912,315 Cost of Revenues and Other Domestic $ 2,613,032 $ 745,952 Export — — Total Cost of Revenues and Other 2,613,032 745,952 Gross Profit $ 632,950 $ 166,363 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Apr. 06, 2021 | Feb. 09, 2021 | |
Working capital | $ 381,721 | |||
Percentage of debt forgiveness | 100.00% | |||
Costs comprised of originations fees | $ 245,000 | |||
Originations fees | 180,000 | |||
Appraisal costs | 65,000 | |||
Unamortized loan fees | 75,557 | |||
Amortized loan fees | $ 20,417 | $ 20,417 | ||
Description of term of the debt | The discounts are accreted over the term of the debt, which is generally six months after the notes become convertible, using the effective interest method. | |||
Minimum [Member] | ||||
Convertible notes premium ranging | 0.00% | |||
Maximum [Member] | ||||
Convertible notes premium ranging | 1.35% | |||
Subsequent Event [Member] | SBA Paycheck Protection Program [Member] | ||||
Description of specific terms of separate loan | Principal loan amount of 45% of its gross earned revenue from 2019 or $10,000,000 whichever is less; interest rate of 2% to 6%; and a 30-year term. | |||
Subsequent Event [Member] | SBA Paycheck Protection Program [Member] | Minimum [Member] | ||||
Increased limit amount | $ 150,000 | |||
Subsequent Event [Member] | SBA Paycheck Protection Program [Member] | Maximum [Member] | ||||
Increased limit amount | $ 500,000 | |||
Paycheck Protection Program Loan [Member] | ||||
Loan | $ 254,147 |
Inventory (Details)
Inventory (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Inventory [Line Items] | ||
Inventory, net | $ 6,630,817 | $ 5,873,569 |
Parts and Supplies [Member] | ||
Inventory [Line Items] | ||
Inventory, net | 307,751 | 292,616 |
Heavy Equipment [Member] | ||
Inventory [Line Items] | ||
Inventory, net | $ 6,323,066 | $ 5,580,953 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Total, at Cost | $ 2,199,984 | $ 2,193,484 |
Less - Accumulated depreciation | (1,231,012) | (1,157,644) |
Total, Net | 968,972 | 1,035,840 |
Furniture and Fixtures [Member] | ||
Total, at Cost | 107,105 | 107,105 |
Leasehold Improvements [Member] | ||
Total, at Cost | 467,188 | 467,188 |
Vehicles and equipment [Member] | ||
Total, at Cost | $ 1,625,691 | $ 1,619,191 |
Property and Equipment (Detai_2
Property and Equipment (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 73,369 | $ 68,950 |
Rental Equipment (Details)
Rental Equipment (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Total, Net | $ 3,114,425 | $ 3,624,376 |
Rental Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Rental equipment | 5,405,293 | 6,480,478 |
Less - Accumulated depreciation | (2,290,868) | (2,856,102) |
Total, Net | $ 3,114,425 | $ 3,624,376 |
Rental Equipment (Details Narra
Rental Equipment (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Depreciation expense | $ 73,369 | $ 68,950 |
Rental Equipment [Member] | ||
Depreciation expense | $ 184,779 | $ 248,306 |
Lines of Credit (Details Narrat
Lines of Credit (Details Narrative) - Finance Company [Member] - USD ($) | 1 Months Ended | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | May 22, 2020 | |
Line of Credit for Borrowing and Refinancing [Member] | |||||
Line of credit maximum borrowing capacity | $ 6,500,000 | ||||
Line of credit, expiration date | Mar. 22, 2022 | ||||
Interest rate | 10.00% | ||||
Description of line of credit interest rate terms | If the maximum balance is reached, the principal becomes payable at 1.25% of the outstanding principal balance per month. | ||||
Collateral | The line of credit is secured by substantially all the Company assets, other than those specifically secured by an existing agreement. | ||||
Line of credit, outstanding amount | $ 5,055,333 | $ 5,300,840 | |||
Available for borrowing | 1,444,667 | 1,199,160 | |||
Interest expense | 135,535 | $ 158,495 | |||
Line of Credit [Member] | |||||
Line of credit maximum borrowing capacity | $ 500,000 | $ 1,050,000 | |||
Description of line of credit interest rate terms | Interest free if paid within 180 days from the finance date. After the applicable free interest period, interest calculates as follows: 30 day LIBOR plus 6.75% - rate after Free Period to Day 365, 30 day LIBOR plus 7.00% - Rate Day 366 to 720, 30 Day LIBOR plus 7.25% - Rate Day 721 to 1095, 30 Day LIBOR plus 12.00% Matured Rate Day 1096 and above. | ||||
Line of credit, outstanding amount | $ 110,224 | 939,776 | |||
Available for borrowing | 314,400 | $ 736,000 | |||
Interest expense | $ 2,344 | $ 295 |
Related-Party Transactions (Det
Related-Party Transactions (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Notes payable | $ 239,412 | $ 226,659 | |
Interest expenses | $ 267,057 | $ 261,110 | |
Lease Agreement [Member] | Building and Real Property [Member] | |||
Lease term | 10 years | ||
Monthly lease payable | $ 12,000 | ||
Rental expense | $ 36,000 | $ 31,635 | |
Mr. Lee Hamre [Member] | Lease Agreement [Member] | Building and Real Property [Member] | |||
Lease term | 1 year | ||
Monthly lease payable | $ 9,800 | ||
Lease expiration date | Mar. 1, 2020 | Dec. 1, 2017 | |
Director [Member] | Two Notes Payable [Member] | |||
Notes payable | $ 153,705 | 168,151 | |
Debt collateral | The notes are secured by the equipment. | ||
Brokerage expenses | $ 42,681 | ||
Director [Member] | Equipment [Member] | Two Notes Payable [Member] | |||
Notes payable | $ 675,695 | 744,424 | |
10% Unsecured Notes Payable [Member] | Mr. Lee Hamre [Member] | |||
Interest rate | 10.00% | ||
Notes payable | $ 239,412 | $ 226,659 | |
Repayment of note payable | 12,753 | $ 11,844 | |
Interest expenses | $ 9,557 | $ 7,276 |
Notes Payable (Details)
Notes Payable (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Percentage of debt forgiveness | 100.00% | |
Total | $ 3,733,810 | $ 3,509,200 |
Less current portion | 1,026,552 | 911,265 |
Long-term portion | $ 2,707,258 | 2,597,935 |
2.90% Note Payable Due on June 17, 2019 [Member] | ||
Issuance Date | Jun. 17, 2019 | |
Description of periodic payment due | due 48 months | |
Monthly principal and interest payments | $ 4,749 | |
Total | $ 106,544 | 141,489 |
10.228% Note Payable Due on September 26, 2019 [Member] | ||
Issuance Date | Sep. 26, 2019 | |
Description of periodic payment due | due 60 months | |
Monthly principal and interest payments | $ 4,383 | |
Total | $ 149,473 | 156,267 |
2.90% Note Payable Due on September 13, 2019 [Member] | ||
Issuance Date | Sep. 13, 2019 | |
Description of periodic payment due | due at 48 months | |
Monthly principal and interest payments | $ 3,422 | |
Total | $ 98,921 | 105,264 |
10.52% Note Payable Due on September 18, 2019 [Member] | ||
Issuance Date | Sep. 18, 2019 | |
Description of periodic payment due | due at 35 months | |
Monthly principal and interest payments | $ 2,143 | |
Total | $ 33,705 | 39,151 |
0.0% Note Payable Due on November 1, 2019 [Member] | ||
Issuance Date | Nov. 1, 2019 | |
Description of periodic payment due | due 52 months | |
Monthly principal and interest payments | $ 3,000 | |
Final payment | 12,000 | |
Total | $ 120,000 | 129,000 |
0.0% Note Payable Due on November 22, 2019 [Member] | ||
Issuance Date | Nov. 22, 2019 | |
Description of periodic payment due | due 24 months | |
Monthly principal and interest payments | $ 934 | |
Total | $ 10,120 | 12,030 |
8.0% Note Payable Due on February 19, 2020 [Member] | ||
Issuance Date | Feb. 19, 2020 | |
Maturity description | first 6 months then $11,520 for the remaining 36 months | |
Description of periodic payment due | due 42 months | |
Monthly principal and interest payments | $ 16,500 | |
Total | $ 302,867 | 330,995 |
10.35% Note Payable Due on February 13, 2020 [Member] | ||
Issuance Date | Feb. 13, 2020 | |
Description of periodic payment due | due 12 months | |
Monthly principal and interest payments | $ 28,903 | |
Total | 48,169 | |
5.0% Note Payable Due on March 20,2020 [Member] | ||
Issuance Date | Mar. 20, 2020 | |
Description of periodic payment due | due 60 months | |
Monthly principal and interest payments | $ 6,136 | |
Total | $ 271,324 | 286,277 |
5.0% Note Payable Due on March 20,2020 [Member] | ||
Issuance Date | Mar. 20, 2020 | |
Description of periodic payment due | due 60 months | |
Monthly principal and interest payments | $ 6,136 | |
Total | $ 271,324 | 286,277 |
5.0% Note Payable Due on March 20,2020 [Member] | ||
Issuance Date | Mar. 20, 2020 | |
Description of periodic payment due | due 60 months | |
Monthly principal and interest payments | $ 6,136 | |
Total | $ 271,324 | 286,277 |
4.95% Note Payable Due on May 1,2020 [Member] | ||
Issuance Date | May 1, 2020 | |
Description of periodic payment due | due 60 months | |
Monthly principal and interest payments | $ 5,709 | |
Total | $ 171,617 | 181,132 |
10.582% Note Payable Due on May 22,2020 [Member] | ||
Issuance Date | May 22, 2020 | |
Description of periodic payment due | due 60 months | |
Monthly principal and interest payments | $ 1,490 | |
Total | $ 59,062 | 61,918 |
1% Note Payable [Member] | ||
Maturity description | twelve (12) months deferred for a thirty year term | |
Description of periodic payment due | due in installments from month seven (7) to April 21, 2022. | |
Percentage of debt forgiveness | 3.75% | |
Monthly principal and interest payments | $ 731 | |
Total | $ 413,017 | 170,000 |
10.582% Note Payable Due on June 22,2020 [Member] | ||
Issuance Date | Jun. 22, 2020 | |
Description of periodic payment due | due 36 months | |
Monthly principal and interest payments | $ 1,037 | |
Total | $ 24,184 | 26,413 |
4.99% Note Payable Due on June 18,2020 [Member] | ||
Issuance Date | Jun. 18, 2020 | |
Description of periodic payment due | due 60 months | |
Monthly principal and interest payments | $ 1,207 | |
Total | $ 55,386 | 58,293 |
10.582% Note Payable Due on June 22,2020 [Member] | ||
Issuance Date | Jun. 22, 2020 | |
Description of periodic payment due | due 60 months | |
Monthly principal and interest payments | $ 3,377 | |
Total | $ 138,124 | 144,475 |
3.99% Note Payable Due on August 21, 2020 [Member] | ||
Issuance Date | Aug. 21, 2020 | |
Description of periodic payment due | due 60 months | |
Monthly principal and interest payments | $ 4,456 | |
Total | $ 37,844 | 39,863 |
4.85% Note Payable Due on September 16, 2020 [Member] | ||
Issuance Date | Sep. 16, 2020 | |
Description of periodic payment due | due 36 months | |
Monthly principal and interest payments | $ 4,778 | |
Total | 139,287 | 147,670 |
Secured Debt [Member] | ||
Total | $ 158,535 | 158,535 |
8.90% Note Payable Due on October 9, 2020 [Member] | ||
Issuance Date | Oct. 9, 2020 | |
Description of periodic payment due | due 48 months | |
Monthly principal and interest payments | $ 16,500 | |
Final payment | 10,158 | |
Total | $ 372,828 | 413,428 |
14% Note Payable Due on February 19, 202 [Member] | ||
Issuance Date | Feb. 19, 2021 | |
Description of periodic payment due | due 90 days | |
Total | $ 132,000 | |
5% Note Payable Due on March 20, 2020 [Member] | ||
Issuance Date | Mar. 20, 2020 | |
Description of periodic payment due | due 60 months | |
Monthly principal and interest payments | $ 6,136 | |
Total | $ 271,324 | 286,277 |
Note Payable Due on March 25, 2021 [Member] | ||
Issuance Date | Mar. 25, 2021 | |
Monthly principal and interest payments | $ 6,000 | |
Final payment | 97,500 | |
Total | $ 125,000 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Debt Disclosure [Abstract] | ||
Interest expense, notes payable | $ 46,837 | $ 51,756 |
Convertible Notes (Details)
Convertible Notes (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Prepayment Period Term 1 [Member] | |
Debt Instrument [Line Items] | |
Prepayment Period | The period beginning on the Issue Date and ending on the date which is 60 days following the Issue Date. |
Prepayment Percentage | 120.00% |
Prepayment Period Term 2 [Member] | |
Debt Instrument [Line Items] | |
Prepayment Period | The period beginning on the date which is 61 days following the Issue Date and ending on the date which is 90 days following the Issue Date. |
Prepayment Percentage | 125.00% |
Prepayment Period Term 3 [Member] | |
Debt Instrument [Line Items] | |
Prepayment Period | The period beginning on the date that is 91 days from the Issue Date and ending 150 days following the Issue Date. |
Prepayment Percentage | 130.00% |
Prepayment Period Term 4 [Member] | |
Debt Instrument [Line Items] | |
Prepayment Period | The period beginning on the date that is 151 days from the Issue Date and ending 180 days following the Issue Date |
Prepayment Percentage | 135.00% |
Convertible Notes (Details Narr
Convertible Notes (Details Narrative) - USD ($) | Mar. 23, 2021 | Jan. 21, 2021 | Sep. 16, 2020 | Jul. 20, 2020 | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||||||
Preferred stock, state value | $ 0.001 | $ 0.001 | ||||
Series A Preferred Stock [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Preferred stock, state value | $ 0.001 | $ 0.001 | ||||
Description of conversion stock | The Conversion Price shall equal a discount of 30% off of the Trading Price. The Trading Price shall be the lowest closing bid price for the Common Stock during the prior ten (10) trading day period (“Trading Price”). | |||||
Securities Purchase Agreement [Member] | Geneva Roth Remark Holdings Inc [Member] | Convertible Note [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 120,000 | $ 120,000 | ||||
Maturity date | Sep. 16, 2021 | Jul. 20, 2021 | ||||
Interest rate | 10.00% | 10.00% | ||||
Net loan costs | $ 6,000 | $ 6,000 | ||||
Payment amounts | $ 89,244 | $ 84,972 | ||||
Second Securities Purchase Agreement [Member] | Geneva [Member] | Series A Preferred Stock [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Number of shares purchase | 78,000 | 103,500 | ||||
Value of shares purchase | $ 78,000 | $ 103,500 | ||||
Net proceeds after payment of transaction related expenses | $ 75,000 | $ 100,000 | ||||
Dividend rate | 10.00% | |||||
Description of conversion stock | The shares of Series A Preferred Stock have a stated value of $1.00 per share and are convertible at 70% of the lowest closing bid price of the Common Stock in the ten days preceding a conversion. | |||||
First Purchase Agreement [Member] | Series A Preferred Stock [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Number of shares purchase | 9,896,500 |
Revenues (Details)
Revenues (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Total Cost of Revenues and Other | $ 2,857,988 | $ 994,258 |
GROSS PROFIT | 1,171,708 | 444,211 |
Sales of Equipment and Other Revenues [Member] | ||
Total Cost of Revenues and Other | 2,613,032 | 745,952 |
Sales of Equipment and Other Revenues [Member] | Domestic [Member] | ||
Total Revenues and Other | 3,245,982 | 912,315 |
Total Cost of Revenues and Other | 2,613,032 | 745,952 |
Sales of Equipment and Other Revenues [Member] | Export [Member] | ||
Total Revenues and Other | ||
Total Cost of Revenues and Other | ||
Sales of Equipment and Other Revenues [Member] | ||
Total Revenues and Other | 3,245,982 | 912,315 |
Total Cost of Revenues and Other | 2,613,032 | 745,952 |
GROSS PROFIT | $ 632,950 | $ 166,363 |
Joint Venture (Details Narrativ
Joint Venture (Details Narrative) - Joint Venture [Member] | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)Number | |
Number of machines purchase | Number | 30 | ||
Closing terminal Seattle Washington | $ 1,089,000 | ||
Amount due to the collaborator | $ 594,747 | $ 439,500 | |
Partners share profit | 50.00% | ||
Profit on sales | $ 155,257 |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Preferred Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred Stock, authorized | 5,000,000 | 5,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Series A Preferred Stock [Member] | ||
Preferred Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred Stock, authorized | 1,000,000 | 1,000,000 |
Preferred stock, issued | 181,500 | 0 |
Preferred stock, outstanding | 181,500 | 0 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) | Apr. 28, 2021shares |
M Vest LLC. [Member] | |
Number of fully vested common shares | 80,000 |