Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 15, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-56054 | |
Entity Registrant Name | AMERAMEX INTERNATIONAL, INC. | |
Entity Central Index Key | 0001776048 | |
Entity Tax Identification Number | 88-0501944 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 3930 Esplanade | |
Entity Address, City or Town | Chico | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95973 | |
City Area Code | (530) | |
Local Phone Number | 895-8955 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | AMMX | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 14,629,155 |
UNAUDITED BALANCE SHEETS
UNAUDITED BALANCE SHEETS - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash | $ 924,162 | $ 407,881 |
Accounts Receivable, Net | 1,403,658 | 768,371 |
Inventory, Net | 6,007,450 | 5,873,569 |
Other Current Assets | 227,624 | 198,531 |
Total Current Assets | 8,562,894 | 7,248,352 |
Property and Equipment, Net | 986,922 | 1,035,840 |
Rental Equipment, Net | 1,868,863 | 3,624,376 |
Deferred Tax Assets, Net | 158,124 | |
Other Assets | 400,797 | 453,410 |
Total Other Assets | 3,256,582 | 5,271,750 |
TOTAL ASSETS | 11,819,476 | 12,520,102 |
Current Liabilities: | ||
Accounts Payable | 1,995,644 | 620,200 |
Accrued Expenses | 254,918 | 231,329 |
Joint Venture Liability | 210,000 | 439,500 |
Lines of Credit | 4,268,938 | 5,749,801 |
Notes Payable, Current Portion | 781,190 | 911,265 |
Convertible Notes | 150,683 | |
Total Current Liabilities | 7,510,690 | 8,102,778 |
Long-Term Liabilities | ||
Deferred Tax Liabilities, Net | 62,214 | |
Notes Payable - Related Party | 652 | 226,659 |
Notes Payable, Net of Current Portion | 2,071,420 | 2,597,935 |
Total Long-Term Liabilities | 2,134,286 | 2,824,594 |
TOTAL LIABILITIES | 9,644,976 | 10,927,372 |
Commitments and Contingencies (Note 11) | ||
Shareholders' Equity | ||
Preferred Stock, $0.001 par value, 5,000,000 shares authorized, no | ||
Common Stock, $0.001 par value, 1,000,000,000 shares authorized | 14,629 | 14,549 |
Additional Paid-In Capital | 21,600,734 | 21,545,614 |
Accumulated Deficit | (19,440,863) | (19,967,433) |
Total Stockholders' Equity | 2,174,500 | 1,592,730 |
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ 11,819,476 | $ 12,520,102 |
UNAUDITED BALANCE SHEETS (Paren
UNAUDITED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | |
Preferred Stock, Shares Authorized | 5,000,000 | |
Common Stock, Par or Stated Value Per Share | $ 0.001 | |
Common Stock, Shares Authorized | 1,000,000,000 | |
Common Stock, Shares, Outstanding | 14,629,155 | 14,548,851 |
Common Stock, Shares, Issued | 14,629,155 | 14,548,851 |
UNAUDITED STATEMENTSOF OPERATIO
UNAUDITED STATEMENTSOF OPERATIONS - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
REVENUES | ||||
Total Sales | $ 8,180,273 | $ 5,880,412 | $ 18,509,920 | $ 9,101,566 |
COST OF SALES | ||||
Total Cost of Sales | 7,365,012 | 5,071,886 | 15,552,524 | 7,418,541 |
GROSS PROFIT | 815,261 | 808,526 | 2,957,396 | 1,683,025 |
OPERATING EXPENSES | ||||
Selling Expense | 203,100 | 136,591 | 627,021 | 284,591 |
Legal Settlement | 428,700 | 428,700 | ||
General and Administrative | 269,029 | 223,980 | 743,259 | 772,365 |
Total Operating Expenses | 472,129 | 789,271 | 1,370,280 | 1,485,656 |
Profit From Operations | 343,132 | 19,255 | 1,587,116 | 197,369 |
OTHER INCOME (EXPENSE) | ||||
Interest Expense, net | (208,967) | (260,989) | (743,999) | (887,522) |
Loss from Early Extinguishment of Debt | (20,373) | (110,551) | ||
Other Income (Expense) | 3,500 | 14,342 | (1,648) | |
Total Other Expense | (225,840) | (260,989) | (840,208) | (889,170) |
INCOME BEFORE PROVISION for INCOME TAXES | 117,292 | (241,734) | 746,908 | (691,801) |
PROVISION (BENEFIT) for INCOME TAXES | 34,601 | (158,590) | 220,338 | (183,332) |
NET INCOME (LOSS) | $ 82,691 | $ (83,144) | $ 526,570 | $ (508,469) |
Weighted Average Shares Outstanding: | ||||
Basic | 14,629,155 | 15,068,318 | 14,629,155 | 15,068,318 |
Diluted | 14,629,155 | 15,068,318 | 14,629,155 | 15,068,318 |
Earnings (loss) per Share | ||||
Basic | $ 0.01 | $ (0.01) | $ 0.04 | $ (0.03) |
Diluted | $ 0.01 | $ (0.01) | $ 0.04 | $ (0.03) |
Sales Of Equipment And Other Revenues [Member] | ||||
REVENUES | ||||
Total Sales | $ 7,591,527 | $ 5,168,949 | $ 16,494,253 | $ 7,106,628 |
COST OF SALES | ||||
Total Cost of Sales | 7,169,018 | 4,824,488 | 14,922,284 | 6,673,745 |
Rentals And Leases [Member] | ||||
REVENUES | ||||
Total Sales | 588,746 | 711,463 | 2,015,667 | 1,994,938 |
COST OF SALES | ||||
Total Cost of Sales | $ 195,994 | $ 247,398 | $ 630,240 | $ 744,796 |
UNAUDITED STATEMENTS OF STOCKHO
UNAUDITED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Total |
December 31, 2020 at Dec. 31, 2019 | $ 15,068 | $ 21,519,435 | $ 0 | $ (19,384,743) | $ 2,149,760 |
Balance, Beginning (in shares) at Dec. 31, 2019 | 15,068,318 | ||||
Net Income | (508,469) | (508,469) | |||
September 30, 2021 at Sep. 30, 2020 | $ 15,068 | 21,519,435 | 0 | (19,893,212) | 1,641,291 |
Balance, Endiing (in shares) at Sep. 30, 2020 | 15,068,318 | ||||
December 31, 2020 at Dec. 31, 2020 | $ 14,549 | 21,545,614 | 0 | (19,967,433) | 1,592,730 |
Balance, Beginning (in shares) at Dec. 31, 2020 | 14,549,155 | ||||
Stock for Services | $ 80 | 55,120 | 55,200 | ||
Net Income | 0 | 0 | 0 | 526,570 | 526,570 |
September 30, 2021 at Sep. 30, 2021 | $ 14,629 | $ 21,600,734 | $ 0 | $ (19,440,863) | $ 2,174,500 |
Balance, Endiing (in shares) at Sep. 30, 2021 | 14,629,155 | ||||
Stock for Services (in shares) | 80,000 |
UNAUDITED STATEMENTS OF CASH FL
UNAUDITED STATEMENTS OF CASH FLOW - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
OPERATING ACTIVITIES: | ||
Net Income (Loss) | $ 526,570 | $ (508,469) |
Net Cash provided (used) by Operations Activities: | ||
Depreciation and Amortization | 725,711 | 676,983 |
Provision (Benefit) for Deferred Income Taxes | 62,214 | (204,761) |
Marketing Services Paid in Stock | 46,400 | |
Loss on Early Extinguishment of Debt | 110,551 | |
Amortization and Accretion of Interest | 106,552 | |
Change in Assets and Liabilities: | ||
Accounts Receivable | (635,287) | (385,333) |
Inventory | 1,476,799 | (2,612,882) |
Other Current Assets | (29,093) | (27,531) |
Accounts Payable | 1,375,444 | 201,626 |
Accrued Expenses | 23,589 | 492,674 |
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES | 3,789,450 | (2,367,693) |
INVESTING ACTIVITIES: | ||
Payments for Property & Equipment | (156,501) | (135,025) |
Proceeds (Payments) for Rental Equipment | (436,709) | 167,490 |
NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES | (593,210) | 32,465 |
FINANCING ACTIVITIES: | ||
Proceeds from Notes Payable | 2,081,198 | 3,840,481 |
Payments on Notes Payable | (2,824,788) | (391,300) |
Payment on Note Payable - Related Party | (226,007) | (19,672) |
Joint Venture Liability | (229,500) | (17,500) |
Net Borrowing Under Lines of Credit | (1,480,862) | (980,546) |
NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES | (2,679,959) | 2,431,463 |
NET INCREASE IN CASH & CASH EQUIVALENTS | 516,281 | 96,235 |
Cash and Cash Equivalents, BEGINNING OF PERIOD | 407,881 | 114,504 |
Cash and Cash Equivalents, END OF PERIOD | 924,162 | 210,739 |
CASH PAID FOR: | ||
Interest | 599,030 | 887,522 |
Income Taxes | ||
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING | ||
Transfer of Inventory to Rental Equipment | 508,000 | |
Equipment Financed under Capital Leases | 178,027 | 239,709 |
Transfer of Rental Equipment to Inventory | $ 964,600 | $ 227,279 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 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 | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting Policies Liquidity Considerations At September 30, 2021, the Company had working capital of approximately $ 1,052,000 . On February 9, 2021, the Company received a second Paycheck Protection Program (PPP) loan in the amount of $ 254,147 . On October 22, 2021, the Company requested forgiveness for this loan and expects to receive 100 % forgiveness. 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 is still awaiting funding. The Company is currently working with several funding agencies to obtain a $10,000,000 line of credit that would be secured with real estate and inventory. 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 worst of which was felt in 2020. 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. With the reopening of the State of California. the Company has experienced a resurgence in sales and rentals of both new and used equipment. The nationwide shortages in truck drivers and the increase in fuel prices has led to higher costs to transport equipment and delays in deliveries to customers. Our customers have been very understanding during this difficult period and we have not lost any deals because of these difficulties. 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. AMERAMEX INTERNATIONAL, INC. NOTES TO FINANCIAL STATEMENTS - UNAUDITED September 30, 2021 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 0 % to 135 %] [2] Many of the conversion features embedded in the Company’s notes become exercisable 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. AMERAMEX INTERNATIONAL, INC. NOTES TO FINANCIAL STATEMENTS - UNAUDITED September 30, 2021 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 September 30, 2021 are unamortized loan fees of $ 34,724 . During the three and nine months ended September 30, 2021 and 2020, the Company amortized $ 20,417 , $ 61,250 and $ 20,417 , $ 61,250 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 adopted this new standard on January 1, 2021.] [3] |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 3 – Inventory Inventory as of September 30, 2021 and December 31, 2020 consisted of the following: September 30, 2021 December 31, 2020 Parts and supplies $ 348,941 $ 292,616 Heavy equipment 5,658,509 5,580,953 Total $ 6,007,450 $ 5,873,569 All of the inventory is used as collateral for the lines of credit and notes payable (see Notes 6 and 8). |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 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 September 30, 2021 and December 31, 2020, such property and equipment consisted of the following: September 30, 2021 December 31, 2020 Furniture and fixtures $ 107,105 $ 107,105 Leasehold improvements 467,188 467,188 Vehicles and Equipment 1,775,691 1,619,191 Total, at cost 2,349,984 2,193,484 Less - Accumulated depreciation (1,363,062 ) (1,157,644 ) Total, Net $ 986,922 $ 1,035,840 Depreciation expense for the three and nine months ended September 30, 2021 and 2020 was $ 62,853 , $ 205,419 and $ 72,681 , $211,433 , respectively. All of the property and equipment is used as collateral for the lines of credit and notes payable (see Notes 6 and 8). |
Rental Equipment
Rental Equipment | 9 Months Ended |
Sep. 30, 2021 | |
Rental Equipment | |
Rental Equipment | Note 5 – Rental Equipment Rental equipment as of September 30, 2021 and December 31, 2020 consisted of the following: September 30, 2021 December 31, 2020 Rental equipment $ 4,495,245 $ 6,480,478 Less - Accumulated depreciation (2,626,382 ) (2,856,102 ) Total, Net $ 1,868,863 $ 3,624,376 Depreciation expense for the three and nine months ended September 30, 2021 and 2020 was $ 144,833 , $ 520,292 and $ 246,845 , $744,243 , respectively. All of the rental equipment is used as collateral for the lines of credit and notes payable (see Notes 6 and 8). |
Lines of Credit
Lines of Credit | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Lines of Credit | Note 6 – Lines of Credit On May 22, 2020, the limit on [our equipment flooring plan] line of credit with a finance [which previously provided] 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 September 30, 2021 and December 31, 2020, the amounts outstanding under this line of credit agreement were $ 177,745 with $ 872,255 available and $ 314,400 with $ 736,000 available, respectively. Interest expense for the three and nine months ended September 30, 2021 and 2020 was $ 3,312 , $ 6,344 and $ 851 , $ 2,132 , respectively. The agreement has no expiration date provided the Company does not default and as of September 30, 2021 the Company is in compliance with the debt covenants. AMERAMEX INTERNATIONAL, INC. NOTES TO FINANCIAL STATEMENTS - UNAUDITED September 30, 2021 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 specified pieces of equipment . At September 30, 2021 and December 31, 2020, the amounts outstanding under this line of credit agreement were $4,091,193 with $ 2,408,807 available for purchases and $ 5,435,404 with $ 1,064,596 available, respectively. Interest expense for the three and nine months ended September 30, 2021 and 2020 was $ 107,757 , $ 369,085 and $ 135,000 , $ 437,531 , respectively. |
Related-Party Transactions
Related-Party Transactions | 9 Months Ended |
Sep. 30, 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 September 30, 2021 and December 31, 2020 was $ 652 and $ 226,659 , respectively. During the nine months ended September 30, 2021 and 2020, the Company repaid $ 202,099 and $ 11,844 on this note payable, respectively. The note incurred $ 7,803 , $ 27,250 and $ 9,955 , $ 27,031 in interest expense for the three and nine months ended September 30, 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, Lee Hamre. The lease provided 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 and nine months ended September 30, 2021 and 2020, was $ 36,000 , $ 108,000 and $ 36,000 , $ 99,135 , 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 September 30, 2021 and December 31, 2020, have a combined total due of $ 124,374 and $ 168,151 respectively. The brokerage made $ 42,681 on the transactions. The notes are secured by the equipment . The Company also has another note payable that was brokered through the same Director’s company. The note is secured with equipment and as of September 30, 2021 and December 31, 2020 had a total due of $ 96,391 and $ 0 , respectively. |
Notes Payable
Notes Payable | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Notes Payable | Note 8 – Notes Payable Notes payable as of September 30, 2021 and December 31, 2020 consisted of the following: September 30, 2021 December 31, 2020 Payable to insurance company; secured by cash surrender value of life insurance policy; no due date $ 158,535 $ 158,535 Notes Payable to various finance companies with varying start dates and interest rates; combined monthly payments of $ 71,231 ; secured by equipment 2,694,075 3,350,665 Total 2,852,610 3,509,200 Less Current Portion 781,190 911,265 Long Term Portion $ 2,071,420 $ 2,597,935 Interest expense for all notes payable for the three and nine months ended September 30, 2021 and 2020 was $ 60,123 , $ 162,604 and $ 165,562 , $ 298,359 , respectively. |
Convertible Notes
Convertible Notes | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure Convertible Notes Abstract | |
Convertible Notes | Note 9 – Convertible Notes On January 21, 2021, the Company entered into a securities purchase agreement with Geneva Roth Remark Holdings, Inc. (“Holder”), whereby Holder 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 July 26, 2021, the Company paid $ 146,616 to pay off the securities purchase agreement with Holder in full and the 103,500 shares of Series A Preferred Stock were returned to [and cancelled by] the Company. On March 23, 2021, the Company entered into a second securities purchase agreement with Holder whereby Holder 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. On September 21, 2021, the Company paid $ 110,493 to pay off the securities purchase agreement with Holder in full and the 78,000 shares of Series A Preferred Stock were returned to [and cancelled by] the Company. |
Joint Venture
Joint Venture | 9 Months Ended |
Sep. 30, 2021 | |
Joint Venture | |
Joint Venture | Note 10 – 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 nine months ended September 30, 2021, the Company had seven sales of such equipment and recorded its partner’s share of 50% of the profits totaling $ 341,090 . The amount due to the collaborator as of September 30, 2021 and December 31, 2020 was $ 210,000 and $ 439,500 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11 – 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 | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Stockholders’ Equity | Note 12 – 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 zero shares are issued and outstanding as of September 30, 2021 and zero as of December 31, 2020. 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 and the same rights afforded other holders of the Company’s Common Stock. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 13 – Subsequent Events On October 19, 2021, the Company and Sixth Street Lending LLC (“Sixth Street”) entered into a Securities Purchase Agreement (the "SPA"). Pursuant to the SPA, The Company sold to Sixth Street a Promissory Note for the principal amount of $ 222,500 (the "Sixth Street Promissory Note "). Under the Sixth Street Promissory Note the Company received net proceeds of $ 200,000 , which included deductions for a 10% original issue discount, $ 2,000 for legal fees and $500 as a due diligence fee. The Sixth Street Promissory Note matures in one (1) year, requires ten (10) monthly payments of $ 24,475 beginning November 25, 2021, and is unsecured. Upon an event of default, the balance under the Sixth Street Promissory Note will increase to 150% of the sum of the then outstanding principal, become immediately due, and become convertible into shares of common stock at an exercise price of 75% multiplied by the lowest trading price of the Company’s common stock during the five (5) trading day period prior to conversion. Sixth Street has agreed to restrict its ability to convert the Sixth Street Promissory Note and receive shares of common stock such that the number of shares of common stock held by them in the aggregate and their affiliates after such conversion or exercise does not exceed 4.99% of the then issued and outstanding shares of common stock. Proceeds were used for capital expansion. The Company does not believe a default will occur. On November 3, 2021, the Company received confirmation that the SBA had forgiven 100% of the 2 nd |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Liquidity Considerations | Liquidity Considerations At September 30, 2021, the Company had working capital of approximately $ 1,052,000 . On February 9, 2021, the Company received a second Paycheck Protection Program (PPP) loan in the amount of $ 254,147 . On October 22, 2021, the Company requested forgiveness for this loan and expects to receive 100 % forgiveness. 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 is still awaiting funding. The Company is currently working with several funding agencies to obtain a $10,000,000 line of credit that would be secured with real estate and inventory. 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 worst of which was felt in 2020. 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. With the reopening of the State of California. the Company has experienced a resurgence in sales and rentals of both new and used equipment. The nationwide shortages in truck drivers and the increase in fuel prices has led to higher costs to transport equipment and delays in deliveries to customers. Our customers have been very understanding during this difficult period and we have not lost any deals because of these difficulties. 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 0 % to 135 %] [2] Many of the conversion features embedded in the Company’s notes become exercisable 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. AMERAMEX INTERNATIONAL, INC. NOTES TO FINANCIAL STATEMENTS - UNAUDITED September 30, 2021 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 September 30, 2021 are unamortized loan fees of $ 34,724 . During the three and nine months ended September 30, 2021 and 2020, the Company amortized $ 20,417 , $ 61,250 and $ 20,417 , $ 61,250 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 adopted this new standard on January 1, 2021.] [3] |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory as of September 30, 2021 and December 31, 2020 consisted of the following: | Inventory as of September 30, 2021 and December 31, 2020 consisted of the following: September 30, 2021 December 31, 2020 Parts and supplies $ 348,941 $ 292,616 Heavy equipment 5,658,509 5,580,953 Total $ 6,007,450 $ 5,873,569 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment includes assets held for internal use; as of September 30, 2021 and December 31, 2020, such property and equipment consisted of the following: | Property and equipment includes assets held for internal use; as of September 30, 2021 and December 31, 2020, such property and equipment consisted of the following: September 30, 2021 December 31, 2020 Furniture and fixtures $ 107,105 $ 107,105 Leasehold improvements 467,188 467,188 Vehicles and Equipment 1,775,691 1,619,191 Total, at cost 2,349,984 2,193,484 Less - Accumulated depreciation (1,363,062 ) (1,157,644 ) Total, Net $ 986,922 $ 1,035,840 |
Rental Equipment (Tables)
Rental Equipment (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Rental Equipment | |
Rental equipment as of September 30, 2021 and December 31, 2020 consisted of the following: | Rental equipment as of September 30, 2021 and December 31, 2020 consisted of the following: September 30, 2021 December 31, 2020 Rental equipment $ 4,495,245 $ 6,480,478 Less - Accumulated depreciation (2,626,382 ) (2,856,102 ) Total, Net $ 1,868,863 $ 3,624,376 |
Notes Payable (Tables)
Notes Payable (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Notes payable as of September 30, 2021 and December 31, 2020 consisted of the following: | Notes payable as of September 30, 2021 and December 31, 2020 consisted of the following: September 30, 2021 December 31, 2020 Payable to insurance company; secured by cash surrender value of life insurance policy; no due date $ 158,535 $ 158,535 Notes Payable to various finance companies with varying start dates and interest rates; combined monthly payments of $ 71,231 ; secured by equipment 2,694,075 3,350,665 Total 2,852,610 3,509,200 Less Current Portion 781,190 911,265 Long Term Portion $ 2,071,420 $ 2,597,935 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | Apr. 06, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Feb. 09, 2021 |
Property, Plant and Equipment [Line Items] | ||||||
[custom:WorkingCapital-0] | $ 1,052,000 | $ 1,052,000 | ||||
[custom:DebtInstrumentForgivenessPercentage] | 100.00% | |||||
Short-term Debt, Description | 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. | |||||
[custom:LineOfCreditFacilityOriginationsFeeAmount] | $ 245,000 | |||||
[custom:OriginationsFees] | 180,000 | |||||
[custom:AppraisalCosts] | 65,000 | |||||
[custom:UnamortizedLoanFees] | 34,724 | |||||
[custom:AmortizedLoanFees] | $ 20,417 | $ 61,250 | $ 20,417 | $ 61,250 | ||
Minimum [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
[custom:ConvertibleNotesAtPremiumRanging] | 0.00% | |||||
Maximum [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
[custom:ConvertibleNotesAtPremiumRanging] | 135.00% | |||||
S B A Paycheck Protection Program [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
[custom:DescriptionOfSpecificTermsOfSeparateLoan] | The Company is currently working with several funding agencies to obtain a $10,000,000 line of credit that would be secured with real estate and inventory. The Company has met all qualifications but there can be no assurance that the Company will receive such loan at this time. | |||||
S B A Paycheck Protection Program [Member] | Minimum [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
[custom:IncreasedLimitAmount] | $ 150,000 | |||||
S B A Paycheck Protection Program [Member] | Maximum [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
[custom:IncreasedLimitAmount] | $ 500,000 | |||||
Paycheck Protection Program Loan [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Financing Receivable, after Allowance for Credit Loss | $ 254,147 |
Inventory as of September 30, 2
Inventory as of September 30, 2021 and December 31, 2020 consisted of the following: (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Inventory [Line Items] | ||
Inventory, Net | $ 6,007,450 | $ 5,873,569 |
Supplies [Member] | ||
Inventory [Line Items] | ||
Inventory, Net | 348,941 | 292,616 |
Heavy Equipment [Member] | ||
Inventory [Line Items] | ||
Inventory, Net | $ 5,658,509 | $ 5,580,953 |
Property and equipment includes
Property and equipment includes assets held for internal use; as of September 30, 2021 and December 31, 2020, such property and equipment consisted of the following: (Details) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 2,349,984 | $ 2,193,484 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (1,363,062) | (1,157,644) | |
Property, Plant and Equipment, Net | $ 986,922 | 1,035,840 | |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 107,105 | 107,105 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 467,188 | 467,188 | |
Vehicles And Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 1,775,691 | $ 1,619,191 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation | $ 62,853 | $ 72,681 | $ 205,419 | $ 211,433 |
Rental equipment as of Septembe
Rental equipment as of September 30, 2021 and December 31, 2020 consisted of the following: (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Rental Equipment, Net | $ 1,868,863 | $ 3,624,376 |
Rental Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Rental equipment | 4,495,245 | 6,480,478 |
AccumulatedDepreciationDepletionAndAmortizationRentalEquipment | (2,626,382) | (2,856,102) |
Rental Equipment, Net | $ 1,868,863 | $ 3,624,376 |
Rental Equipment (Details Narra
Rental Equipment (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation | $ 62,853 | $ 72,681 | $ 205,419 | $ 211,433 |
Rental Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation | $ 144,833 | $ 246,845 | $ 520,292 | $ 744,243 |
Lines of Credit (Details Narrat
Lines of Credit (Details Narrative) - Finance Company [Member] - USD ($) | Mar. 29, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Line of Credit [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 500,000 | $ 500,000 | ||||
Long-term Line of Credit | 177,745 | 177,745 | $ 872,255 | |||
Line of Credit Facility, Current Borrowing Capacity | 314,400 | 314,400 | 736,000 | |||
Line of Credit Facility, Periodic Payment, Interest | 3,312 | $ 851 | $ 6,344 | $ 2,132 | ||
Line of Credit for Borrowing and Refinancing [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 6,500,000 | |||||
Line of Credit Facility, Interest Rate Description | If the maximum balance is reached, the principal becomes payable at 1.25% of the outstanding principal balance per month | interest free if paid within 180 days from the finance date | ||||
Long-term Line of Credit | 5,435,404 | |||||
Line of Credit Facility, Current Borrowing Capacity | 2,408,807 | $ 2,408,807 | $ 1,064,596 | |||
Line of Credit Facility, Periodic Payment, Interest | $ 107,757 | $ 135,000 | $ 369,085 | $ 437,531 | ||
Line of Credit Facility, Expiration Date | Mar. 22, 2022 | |||||
Line of Credit Facility, Interest Rate During Period | 10.00% | |||||
Line of Credit Facility, Collateral | The line of credit is secured by specified pieces of equipment |
Related-Party Transactions (Det
Related-Party Transactions (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||||||
Notes Payable, Related Parties, Noncurrent | $ 652 | $ 652 | $ 226,659 | |||
Director [Member] | Working capital | ||||||
Related Party Transaction [Line Items] | ||||||
Notes Payable, Related Parties, Noncurrent | 124,374 | 124,374 | 168,151 | |||
Sales of Equipment and Other Revenues [Member] | $ 42,681 | |||||
Debt Instrument, Collateral | The notes are secured by the equipment | |||||
Equipment [Member] | Director [Member] | Other Notes Payable [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Notes Payable, Related Parties, Noncurrent | 96,391 | $ 96,391 | 0 | |||
Lease Agreement [Member] | Building and Real Property [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Monthly lease payable | 12,000 | 12,000 | ||||
Lessee, Operating Lease, Term of Contract | 10 years | |||||
Operating Leases, Rent Expense | 36,000 | $ 36,000 | 108,000 | $ 99,135 | ||
Lease Agreement [Member] | Building and Real Property [Member] | President [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Monthly lease payable | $ 9,800 | $ 9,800 | ||||
Chief Executive Officer [Member] | Lease Agreement [Member] | Building and Real Property [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Lease Expiration Date | Mar. 1, 2020 | |||||
Lessee, Operating Lease, Term of Contract | 1 year | 1 year | ||||
Unsecured Debt [Member] | President [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Line of Credit Facility, Interest Rate During Period | 10.00% | |||||
Notes Payable, Related Parties, Noncurrent | $ 652 | $ 652 | $ 226,659 | |||
Repayments of Unsecured Debt | 202,099 | 11,844 | ||||
Interest Expense | $ 7,803 | $ 9,955 | $ 27,250 | $ 27,031 |
Notes payable as of September 3
Notes payable as of September 30, 2021 and December 31, 2020 consisted of the following: (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Total | $ 2,852,610 | $ 3,509,200 |
Less Current Portion | 781,190 | 911,265 |
Long Term Portion | 2,071,420 | 2,597,935 |
Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total | 158,535 | 158,535 |
Convertible Notes Payable [Member] | ||
Debt Instrument [Line Items] | ||
Total | 2,694,075 | $ 3,350,665 |
Debt Instrument, Periodic Payment | $ 71,231 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) - USD ($) | 3 Months Ended | 4 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Debt Disclosure [Abstract] | ||||
Interest Expense, Borrowings | $ 60,123 | $ 165,562 | $ 162,604 | $ 298,359 |
Convertible Notes (Details Narr
Convertible Notes (Details Narrative) - USD ($) | Jul. 26, 2021 | Mar. 23, 2021 | Mar. 23, 2021 | Jan. 21, 2021 | Sep. 30, 2021 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Stock Issued During Period, Value, Issued for Services | $ 55,200 | ||||
Second Securities Purchase Agreement [Member] | Geneva [Member] | Series A Preferred Stock [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Closing terminal Seattle WA | 78,000 | 103,500 | |||
Stock Issued During Period, Value, Issued for Services | $ 78,000 | $ 103,500 | |||
7.8% Note Payable Due on March 31, 2019 [Member] | $ 75,000 | $ 100,000 | |||
Stock Repurchased During Period, Value | $ 146,616 | $ 110,493 | |||
Stock Repurchased During Period, Shares | 103,500 | 78,000 |
Joint Venture (Details Narrativ
Joint Venture (Details Narrative) - Corporate Joint Venture [Member] | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)Number | |
Defined Benefit Plan Disclosure [Line Items] | |||
Number of machines purchase | Number | 30,000 | ||
Closing terminal Seattle Washington | $ 1,089,000 | ||
Partners share profit | 50.00% | ||
Profit on sales | $ 341,090 | ||
Amount due to the collaborator | $ 210,000 | $ 439,500 |
Stockholders_ Equity (Details N
Stockholders’ Equity (Details Narrative) - $ / shares | Apr. 28, 2021 | Dec. 31, 2020 |
Class of Stock [Line Items] | ||
Preferred Stock, Shares Authorized | 5,000,000 | |
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | |
M Vest LLC. [Member] | ||
Class of Stock [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 80,000 | |
Series A Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred Stock, Shares Authorized | 1,000,000 | |
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | |
Preferred Stock, Shares Outstanding | 0 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) | Oct. 19, 2021 | Sep. 30, 2021 | Sep. 30, 2020 |
Subsequent Event [Line Items] | |||
Proceeds from Notes Payable | $ 2,081,198 | $ 3,840,481 | |
Sixth Street Promissory Note [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Notes Payable | $ 222,500 | ||
Proceeds from Notes Payable | $ 200,000 | ||
Debt Instrument, Fee | which included deductions for a 10% original issue discount, $ | ||
Debt Instrument, Fee Amount | $ 2,000 | ||
Debt Instrument, Maturity Date, Description | The Sixth Street Promissory Note matures in one (1) year, requires ten (10) monthly payments of $ | ||
Debt Instrument, Periodic Payment | $ 24,475 | ||
Debt Instrument, Debt Default, Description of Violation or Event of Default | Upon an event of default, the balance under the Sixth Street Promissory Note will increase to 150% of the sum of the then outstanding principal, become immediately due, and become convertible into shares of common stock at an exercise price of 75% multiplied by the lowest trading price of the Company’s common stock during the five (5) trading day period prior to conversion. Sixth Street has agreed to restrict its ability to convert the Sixth Street Promissory Note and receive shares of common stock such that the number of shares of common stock held by them in the aggregate and their affiliates after such conversion or exercise does not exceed 4.99% of the then issued and outstanding shares of common stock. Proceeds were used for capital expansion. |