Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 15, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
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 ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Cash | $ 299,754 | $ 995,611 |
Accounts Receivable, Net | 1,270,183 | 1,162,300 |
Inventory, Net | 9,414,871 | 5,185,864 |
Other Current Assets | 220,353 | 312,963 |
Total Current Assets | 11,205,161 | 7,656,738 |
Property and Equipment, Net | 1,457,234 | 1,275,717 |
Rental Equipment, Net | 1,083,194 | 1,461,716 |
Lease Right of Use Asset | 828,725 | |
Other Assets | 358,859 | 391,330 |
Total Other Assets | 3,728,012 | 3,128,763 |
TOTAL ASSETS | 14,933,173 | 10,785,501 |
Current Liabilities: | ||
Accounts Payable | 2,319,355 | 560,076 |
Accrued Expenses | 243,984 | 264,534 |
Customer Deposits | 1,045,078 | 302,000 |
Joint Venture Liability | 262,293 | 142,500 |
Lines of Credit | 3,412,441 | 3,180,968 |
Notes Payable, Current Portion | 626,911 | 777,601 |
Lease Liability | 129,081 | |
Total Current Liabilities | 8,039,143 | 5,227,679 |
Long-Term Liabilities | ||
Deferred Tax Liabilities, Net | 695,060 | 588,792 |
Notes Payable, Net of Current Portion | 1,815,160 | 1,689,353 |
Lease Liability, Net of Current Portion | 699,644 | |
Total Long-Term Liabilities | 3,209,864 | 2,278,145 |
TOTAL LIABILITIES | 11,249,007 | 7,505,824 |
Commitments and Contingencies (Note 11) | ||
Shareholders' 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 14,629,155 shares issued and outstanding at June 30, 2022 and December 31, 2021 | 14,629 | 14,629 |
Additional Paid-In Capital | 21,600,734 | 21,600,734 |
Accumulated Deficit | (17,931,197) | (18,335,686) |
Total Stockholders' Equity | 3,684,166 | 3,279,677 |
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ 14,933,173 | $ 10,785,501 |
UNAUDITED BALANCE SHEETS (Paren
UNAUDITED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 |
Common Stock, Shares, Issued | 14,629,155 | 14,629,155 |
Common Stock, Shares, Outstanding | 14,629,155 | 14,629,155 |
UNAUDITED STATEMENTS OF OPERATI
UNAUDITED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
REVENUES | ||||
Total Sales | $ 2,378,548 | $ 6,299,951 | $ 7,330,154 | $ 10,329,647 |
COST OF SALES | ||||
Total Cost of Sales | 1,957,716 | 5,329,524 | 5,660,253 | 8,187,512 |
GROSS PROFIT | 420,832 | 970,427 | 1,669,901 | 2,142,135 |
OPERATING EXPENSES | ||||
Selling Expense | 230,064 | 284,732 | 553,505 | 423,921 |
General and Administrative | 233,273 | 229,927 | 602,609 | 474,230 |
Total Operating Expenses | 463,337 | 514,659 | 1,156,114 | 898,151 |
Profit (loss) From Operations | (42,505) | 455,768 | 513,787 | 1,243,984 |
OTHER INCOME (EXPENSE) | ||||
Interest Expense, net | (96,374) | (267,975) | (274,131) | (535,032) |
Loss from Early Extinguishment of Debt | (77,845) | (15,345) | (90,178) | |
Other Income | 349,580 | 764 | 350,134 | 10,842 |
Total Other Income (Expense) | 253,206 | (345,056) | 60,658 | (614,368) |
INCOME BEFORE PROVISION for INCOME TAXES | 210,701 | 110,712 | 574,445 | 629,616 |
PROVISION for INCOME TAXES | 64,529 | 32,662 | 169,956 | 185,737 |
NET INCOME | $ 146,172 | $ 78,050 | $ 404,489 | $ 443,879 |
Weighted Average Shares Outstanding: | ||||
Basic | 14,629,155 | 14,629,155 | 14,629,155 | 14,629,155 |
Diluted | 14,629,155 | 14,629,155 | 14,629,155 | 14,629,155 |
Basic | $ 0.01 | $ 0.01 | $ 0.03 | $ 0.03 |
Diluted | $ 0.01 | $ 0.01 | $ 0.03 | $ 0.03 |
Sales Of Equipment And Other Revenues [Member] | ||||
REVENUES | ||||
Total Sales | $ 2,015,247 | $ 5,656,744 | $ 6,600,939 | $ 8,902,726 |
COST OF SALES | ||||
Total Cost of Sales | 1,799,708 | 5,140,234 | 5,352,529 | 7,753,266 |
Rentals And Leases [Member] | ||||
REVENUES | ||||
Total Sales | 363,301 | 643,207 | 729,215 | 1,426,921 |
COST OF SALES | ||||
Total Cost of Sales | $ 158,008 | $ 189,290 | $ 307,724 | $ 434,246 |
UNAUDITED STATEMENTS OF STOCKHO
UNAUDITED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
December 31, 2021 at Dec. 31, 2020 | $ 14,549 | $ 21,545,614 | $ (19,967,433) | $ 1,592,730 |
Shares, Outstanding, Beginning Balance at Dec. 31, 2020 | 14,549,155 | |||
Stock for Services | $ 80 | 55,120 | 55,200 | |
Stock Issued During Period, Shares, Issued for Services | 80,000 | |||
Net Income | 443,879 | 443,879 | ||
June 30, 2022 at Jun. 30, 2021 | $ 14,629 | 21,600,734 | (19,523,554) | 2,091,809 |
Shares, Outstanding, Ending Balance at Jun. 30, 2021 | 14,629,155 | |||
December 31, 2021 at Dec. 31, 2021 | $ 14,629 | 21,600,734 | (18,335,686) | 3,279,677 |
Shares, Outstanding, Beginning Balance at Dec. 31, 2021 | 14,629,155 | |||
Net Income | 404,489 | 404,489 | ||
June 30, 2022 at Jun. 30, 2022 | $ 14,629 | $ 21,600,734 | $ (17,931,197) | $ 3,684,166 |
Shares, Outstanding, Ending Balance at Jun. 30, 2022 | 14,629,155 |
UNAUDITED STATEMENTS OF CASH FL
UNAUDITED STATEMENTS OF CASH FLOW - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
OPERATING ACTIVITIES: | ||
Net Income | $ 404,489 | $ 443,879 |
Adjustments to reconcile Net Loss to Net Cash provided (used) by Operating Activities: | ||
Depreciation and Amortization | 376,013 | 518,025 |
Provision (Benefit) for Deferred Income Taxes | 106,268 | 27,613 |
Marketing Services Paid in Stock | 46,400 | |
Loss on Early Extinguishment of Debt | 15,345 | 90,178 |
Amortization of Right of Use Asset | 19,406 | |
Amortization and Accretion of Interest | 10,246 | 86,135 |
Change in Assets and Liabilities: | ||
Accounts Receivable | (107,883) | (581,244) |
Inventory | (4,229,007) | 1,357,966 |
ROU Asset | (828,725) | |
Other Current Assets | 92,610 | (27,925) |
Accounts Payable | 1,759,279 | 360,258 |
Customer Deposits | 743,078 | |
Accrued Expenses | (20,550) | 249,991 |
Lease Liability | 828,725 | |
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES | (830,706) | 2,571,276 |
INVESTING ACTIVITIES: | ||
Payments for Property & Equipment | (335,596) | (156,502) |
Proceeds (Payments) for Rental Equipment | 142,281 | (416,292) |
NET CASH USED BY INVESTING ACTIVITIES | (193,315) | (572,794) |
FINANCING ACTIVITIES: | ||
Proceeds from Notes Payable | 633,930 | 2,072,205 |
Payments on Notes Payable | (657,033) | (2,622,373) |
Payment on Note Payable - Related Party | (23,908) | |
Joint Venture Liability | 119,793 | (69,500) |
Net Borrowing (Repayments) Under Lines of Credit | 231,474 | (1,311,843) |
NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES | 328,164 | (1,955,419) |
NET INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS | (695,857) | 43,063 |
Cash and Cash Equivalents, BEGINNING OF PERIOD | 995,611 | 407,881 |
Cash and Cash Equivalents, END OF PERIOD | 299,754 | 450,944 |
CASH PAID FOR: | ||
Interest | 273,169 | 422,505 |
Income Taxes | 800 | |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Transfer of Inventory to Rental Equipment | 508,000 | |
Equipment Financed under Capital Leases | 187,732 | |
Transfer of Rental Equipment to Inventory | $ 964,600 |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Jun. 30, 2022 | |
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 | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting Policies Liquidity Considerations At June 30, 2022, the Company had working capital of approximately $ 3.2 The Company is actively working to obtain lines of credit or improve the terms compared to existing lines of credit in order to facilitate normal operations and fulfill growth needs. 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 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 had several large transactions that were put on hold until the State of California completely reopened. In addition, the Company had all sales, administrative and account employees working from home. Shop employees were practicing social distancing and only one customer was allowed in the facility at a time. Most directly, a number of states and local governments had taken steps that 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, had 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. 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 six-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, 2021 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 and estimated useful life of property and equipment. 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 $ 245,000 180,000 65,000 no 14,307 14,307 20,417 40,833 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, 2021 for smaller reporting companies, and interim periods within those years, with early adoption permitted. The Company adopted this new standard on January 1, 2022. 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. On January 1, 2022, the Company adopted Accounting Standards Update No. 2016-02, Lease (topic 842)(ASU 2016-02) which establishes ASC 842 and supersedes the lease accounting guidance under ASC 840. The standard generally requires lessees to recognize operating and finance lease liabilities and corresponding right-of-use (ROU) assets on the balance sheet and provide enhanced disclosers on the amount, timing and uncertainty of cash flows arising from lease arrangements. The Company adopted ASC 842 using the modified retrospective approach. The Company elected the package of practical expedients available for existing contracts, which allowed the Company to carry forward our historical assessments of lease identification, lease classification and initial direct costs. The Company also elected a policy to not apply the recognition requirements of ASC 842 for short-term leases with a term of 12 months or less. As of January 1, 2022, the effective date, the Company identified one operating lease arrangement relating to the Company’s headquarter facility. The adoption of ASC 842 resulted in a recognition of an ROU asset and lease liability on the Company’s balance sheet relating to the leases as of January 1, 2022. The adoption of the standard did not have a material effect on the Company’s statements of operations and statements of cash flows. |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 3 – Inventory Inventory as of June 30, 2022 and December 31, 2021 consisted of the following: Schedule of Inventory June 30, 2022 December 31, 2021 Parts and supplies $ 499,263 $ 351,755 Heavy equipment 8,915,608 4,834,109 Total $ 9,414,871 $ 5,185,864 |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 4 – Property and Equipment Property and equipment includes assets held for internal use; as of June 30, 2022 and December 31, 2021, such property and equipment consisted of the following: Schedule of Property, Plant and Equipment June 30, 2022 December 31, 2021 Furniture and fixtures $ 107,105 $ 107,105 Leasehold improvements 505,171 505,171 Vehicles and Equipment 2,421,880 2,086,285 Total, at cost 3,034,156 2,698,561 Less - Accumulated depreciation (1,576,922 ) (1,422,844 ) Total, Net $ 1,457,234 $ 1,275,717 Depreciation expense for the three and six months ended June 30, 2022 and 2021 was $ 78,005 154,079 69,198 142,568 All 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 | 6 Months Ended |
Jun. 30, 2022 | |
Rental Equipment | |
Rental Equipment | Note 5 – Rental Equipment Rental equipment as of June 30, 2022 and December 31, 2021 consisted of the following: Schedule of Rental Equipment June 30, 2022 December 31, 2021 Rental equipment $ 4,053,622 $ 4,210,209 Less - Accumulated depreciation (2,970,428 ) (2,748,493 ) Total, Net $ 1,083,194 $ 1,461,716 Depreciation expense for the three and six months ended June 30, 2022 and 2021 was $ 109,889 221,934 190,681 375,459 All 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 | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Lines of Credit | Note 6 – Lines of Credit On April 12, 2022 the limit on our equipment flooring plan line of credit with a finance company which previously provided for borrowing up to $ 1,050,000 was decreased to $ 300,000 due to lack of utilization. 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 June 30, 2022 and December 31, 2021, the amounts outstanding under this line of credit agreement were $ 101,405 with $ 198,595 available and $ 23,026 1,026,974 104 1,097 688 3,302 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 was to expire on March 28, 2022; however, a 126-day extension was granted by the finance company while the Company finalizes the new line of credit. 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 June 30, 2022 and December 31, 2021, the amounts outstanding under this line of credit agreement were $ 2,036,469 with $ 4,463,531 available for purchases and 3,157,941 3,342,059 38,639 145,655 125,793 261,328 On January 28, 2022, the Company entered into a line of credit (flooring plan) with a finance company that provides for borrowing up to $ 3,500,000 1,324,568 2,175,432 |
Related-Party Transactions
Related-Party Transactions | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Note 7 – Related-Party Transactions Related-Party Note Payable The Company had a note payable to the Company’s Chief Executive Officer, which was fully repaid in 2021. The note was interest bearing at 10 % per annum, unsecured and payable upon demand. During the three and six months ended June 30, 2021, the note incurred $ 9,890 and $ 19,447 in interest expense, respectively. Lease The Company leases a building and real property in Chico, California under a lease agreement renewing annually every March from a trust whose trustee is the Company’s Chief Executive Officer. The overall term of the lease is ten (10) years. The lease provided for monthly lease payments of $ 12,000 36,000 72,000 36,000 72,000 The operating lease liabilities of $ 828,725 At June 30, 2022, the future undiscounted minimum lease payments under the noncancellable leases are as follows: Minimum lease payment under noncancellable leases For the six-month period ending December 31, 2022 $ 72,000 Year ending December 31, 2023 144,000 Year ending December 31, 2024 144,000 Year ending December 31, 2025 144,000 Year ending December 31, 2026 144,000 Thereafter 456,000 Total undiscounted finance lease payments $ 1,104,000 Less: Imputed interest (275,275 ) Present value of finance lease liabilities 828,725 Transactions with Director Two separate customers lost financing for purchases of equipment after delivery, 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 June 30, 2022 and December 31, 2021, have a combined total due of $ 79,225 and $ 109,482 respectively. 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 June 30, 2022 and December 31, 2021 had a total due of $ 165,161 195,133 |
Notes Payable
Notes Payable | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Notes Payable | Note 8 – Notes Payable Notes payable as of June 30, 2022 and December 31, 2021 consisted of the following: Schedule of Debt June 30, 2022 December 31, 2021 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; Interest rates on June 30, 2022 and December 31, 2021, ranged from 0.00% to 35.132%. As of June 30, 2022 notes maturing from September 2, 2022 to September 24, 2050 have combined monthly payments of $96,312; secured by equipment and stock. 2,283,536 2,308,420 Total 2,442,071 2,466,955 Less Current Portion (626,911 ) (777,602 ) Long Term Portion $ 1,815,160 $ 1,689,353 Interest expense for all notes payable for the three and six months ended June 30, 2022 and 2021 was $ 46,115 103,399 47,872 102,481 |
Joint Venture
Joint Venture | 6 Months Ended |
Jun. 30, 2022 | |
Joint Venture | |
Joint Venture | Note 9 – 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 six months ended June 30, 2022, the Company accrued $ 132,293 262,293 142,500 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10 – 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 operating lease with related party. |
Stockholders_ Equity
Stockholders’ Equity | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Stockholders’ Equity | Note 11 – Stockholders’ Equity The Company has authorized 5,000,000 0.001 1,000,000 The Company has authorized 1,000,000,000 0.001 14,629,155 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Liquidity Considerations | Liquidity Considerations At June 30, 2022, the Company had working capital of approximately $ 3.2 The Company is actively working to obtain lines of credit or improve the terms compared to existing lines of credit in order to facilitate normal operations and fulfill growth needs. 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 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 had several large transactions that were put on hold until the State of California completely reopened. In addition, the Company had all sales, administrative and account employees working from home. Shop employees were practicing social distancing and only one customer was allowed in the facility at a time. Most directly, a number of states and local governments had taken steps that 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, had 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. 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 six-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, 2021 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 and estimated useful life of property and equipment. |
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 $ 245,000 180,000 65,000 no 14,307 14,307 20,417 40,833 |
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, 2021 for smaller reporting companies, and interim periods within those years, with early adoption permitted. The Company adopted this new standard on January 1, 2022. 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. On January 1, 2022, the Company adopted Accounting Standards Update No. 2016-02, Lease (topic 842)(ASU 2016-02) which establishes ASC 842 and supersedes the lease accounting guidance under ASC 840. The standard generally requires lessees to recognize operating and finance lease liabilities and corresponding right-of-use (ROU) assets on the balance sheet and provide enhanced disclosers on the amount, timing and uncertainty of cash flows arising from lease arrangements. The Company adopted ASC 842 using the modified retrospective approach. The Company elected the package of practical expedients available for existing contracts, which allowed the Company to carry forward our historical assessments of lease identification, lease classification and initial direct costs. The Company also elected a policy to not apply the recognition requirements of ASC 842 for short-term leases with a term of 12 months or less. As of January 1, 2022, the effective date, the Company identified one operating lease arrangement relating to the Company’s headquarter facility. The adoption of ASC 842 resulted in a recognition of an ROU asset and lease liability on the Company’s balance sheet relating to the leases as of January 1, 2022. The adoption of the standard did not have a material effect on the Company’s statements of operations and statements of cash flows. |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory as of June 30, 2022 and December 31, 2021 consisted of the following: Schedule of Inventory June 30, 2022 December 31, 2021 Parts and supplies $ 499,263 $ 351,755 Heavy equipment 8,915,608 4,834,109 Total $ 9,414,871 $ 5,185,864 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property and equipment includes assets held for internal use; as of June 30, 2022 and December 31, 2021, such property and equipment consisted of the following: Schedule of Property, Plant and Equipment June 30, 2022 December 31, 2021 Furniture and fixtures $ 107,105 $ 107,105 Leasehold improvements 505,171 505,171 Vehicles and Equipment 2,421,880 2,086,285 Total, at cost 3,034,156 2,698,561 Less - Accumulated depreciation (1,576,922 ) (1,422,844 ) Total, Net $ 1,457,234 $ 1,275,717 |
Rental Equipment (Tables)
Rental Equipment (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Rental Equipment | |
Schedule of Rental Equipment | Rental equipment as of June 30, 2022 and December 31, 2021 consisted of the following: Schedule of Rental Equipment June 30, 2022 December 31, 2021 Rental equipment $ 4,053,622 $ 4,210,209 Less - Accumulated depreciation (2,970,428 ) (2,748,493 ) Total, Net $ 1,083,194 $ 1,461,716 |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Minimum lease payment under noncancellable leases | At June 30, 2022, the future undiscounted minimum lease payments under the noncancellable leases are as follows: Minimum lease payment under noncancellable leases For the six-month period ending December 31, 2022 $ 72,000 Year ending December 31, 2023 144,000 Year ending December 31, 2024 144,000 Year ending December 31, 2025 144,000 Year ending December 31, 2026 144,000 Thereafter 456,000 Total undiscounted finance lease payments $ 1,104,000 Less: Imputed interest (275,275 ) Present value of finance lease liabilities 828,725 |
Notes Payable (Tables)
Notes Payable (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Notes payable as of June 30, 2022 and December 31, 2021 consisted of the following: Schedule of Debt June 30, 2022 December 31, 2021 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; Interest rates on June 30, 2022 and December 31, 2021, ranged from 0.00% to 35.132%. As of June 30, 2022 notes maturing from September 2, 2022 to September 24, 2050 have combined monthly payments of $96,312; secured by equipment and stock. 2,283,536 2,308,420 Total 2,442,071 2,466,955 Less Current Portion (626,911 ) (777,602 ) Long Term Portion $ 1,815,160 $ 1,689,353 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Debt Instrument [Line Items] | ||||
Working Capital | $ 3,200,000 | $ 3,200,000 | ||
Line of credit facility originations fee amount | 245,000 | |||
Originations fees | 180,000 | |||
Appraisal costs | 65,000 | |||
Unamortized loan fees | 0 | 0 | ||
Amortized loan fee | $ 14,307 | $ 14,307 | $ 20,417 | $ 40,833 |
S B A Paycheck Protection Program [Member] | ||||
Debt Instrument [Line Items] | ||||
Description of specific terms of separate loan | The Company is actively working to obtain lines of credit or improve the terms compared to existing lines of credit in order to facilitate normal operations and fulfill growth needs. |
Inventory (Details)
Inventory (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Inventory [Line Items] | ||
Total | $ 9,414,871 | $ 5,185,864 |
Supplies [Member] | ||
Inventory [Line Items] | ||
Total | 499,263 | 351,755 |
Heavy Equipment [Member] | ||
Inventory [Line Items] | ||
Total | $ 8,915,608 | $ 4,834,109 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total, at cost | $ 3,034,156 | $ 2,698,561 |
Less - Accumulated depreciation | (1,576,922) | (1,422,844) |
Total, Net | 1,457,234 | 1,275,717 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 107,105 | 107,105 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 505,171 | 505,171 |
Vehicles And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | $ 2,421,880 | $ 2,086,285 |
Property and Equipment (Detai_2
Property and Equipment (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 78,005 | $ 154,079 | $ 69,198 | $ 142,568 |
Rental Equipment (Details)
Rental Equipment (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total, Net | $ 1,083,194 | $ 1,461,716 |
Rental Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Rental equipment | 4,053,622 | 4,210,209 |
Less - Accumulated depreciation | $ (2,970,428) | $ (2,748,493) |
Rental Equipment (Details Narra
Rental Equipment (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Rental Equipment | ||||
Depreciation rental expense | $ 109,889 | $ 221,934 | $ 190,681 | $ 375,459 |
Lines of Credit (Details Narrat
Lines of Credit (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jan. 28, 2022 | Dec. 31, 2021 | Mar. 31, 2019 | |
Line of Credit [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of Credit Facility, Interest Rate Description | interest free if paid within 180 days from the finance date. | ||||||
Line of Credit Facility, Periodic Payment, Interest | $ 104 | $ 1,097 | $ 688 | $ 3,302 | |||
Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Interest Rate Descrpition | 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 Facility, Average Outstanding Amount | $ 101,405 | ||||||
Line of Credit Facility, Maximum Amount Outstanding During Period | 198,595 | ||||||
Line of Credit Facility, Current Borrowing Capacity | 23,026 | 23,026 | $ 3,157,941 | ||||
Line of Credit Facility, Remaining Borrowing Capacity | 1,026,974 | 1,026,974 | 3,342,059 | ||||
Line of Credit [Member] | Maximum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,050,000 | 1,050,000 | |||||
Line of Credit [Member] | Minimum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 300,000 | 300,000 | |||||
Line Of Credit 1 [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of Credit Facility, Current Borrowing Capacity | $ 3,500,000 | $ 6,500,000 | |||||
Line of Credit Facility, Periodic Payment, Interest | 38,639 | $ 145,655 | $ 125,793 | $ 261,328 | |||
Line of Credit Facility, Interest Rate During Period | 10% | ||||||
Interest rate description | If the maximum balance is reached, the principal becomes payable at 1.25% of the outstanding principal balance per month. | ||||||
Line of Credit Facility, Collateral | The line of credit is secured by specified pieces of equipment | ||||||
Long-Term Line of Credit | 2,036,469 | $ 2,036,469 | $ 4,463,531 | ||||
Line Of Credit 2 [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of Credit Facility, Current Borrowing Capacity | 2,175,432 | 2,175,432 | |||||
Long-Term Line of Credit | $ 1,324,568 | $ 1,324,568 |
Related-Party Transactions (Det
Related-Party Transactions (Details) | Jun. 30, 2022 USD ($) |
Related Party Transactions [Abstract] | |
For the six-month period ending December 31, 2022 | $ 72,000 |
Year ending December 31, 2023 | 144,000 |
Year ending December 31, 2024 | 144,000 |
Year ending December 31, 2025 | 144,000 |
Year ending December 31, 2026 | 144,000 |
Thereafter | 456,000 |
Total undiscounted finance lease payments | 1,104,000 |
Less: Imputed interest | (275,275) |
Present value of finance lease liabilities | $ 828,725 |
Related-Party Transactions (D_2
Related-Party Transactions (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||
Interest Expense, Other | $ 9,890 | $ 19,447 | |||
Operating lease liabilities | $ 828,725 | $ 828,725 | |||
Chief Executive Officer [Member] | Lease Agreement [Member] | Building and Building Improvements [Member] | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||
Monthly Lease Payable | 12,000 | ||||
Rent Expense | 36,000 | $ 72,000 | $ 36,000 | $ 72,000 | |
Chief Executive Officer [Member] | Unsecured Debt [Member] | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||
Line of Credit Facility, Interest Rate During Period | 10% | ||||
Director [Member] | Equipment [Member] | Two Notes Payable [Member] | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||
Amount due to the related party | 79,225 | $ 79,225 | $ 109,482 | ||
Director [Member] | Equipment [Member] | Other Notes Payable [Member] | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||
Amount due to the related party | $ 165,161 | $ 165,161 | $ 195,133 |
Notes Payable (Details)
Notes Payable (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total | $ 2,442,071 | $ 2,466,955 |
Less Current Portion | (626,911) | (777,602) |
Long Term Portion | 1,815,160 | 1,689,353 |
Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total | 158,535 | 158,535 |
Notes Payable Other Payables 3 [Member] | ||
Debt Instrument [Line Items] | ||
Total | $ 2,283,536 | $ 2,308,420 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Debt Disclosure [Abstract] | ||||
Interest expense, borrowings | $ 46,115 | $ 103,399 | $ 47,872 | $ 102,481 |
Joint Venture (Details Narrativ
Joint Venture (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Joint Venture | ||
Payments to acquire joint venture | $ 1,089,000 | |
Accured joint venture profit | 132,293 | |
Amount due to the collaborator | $ 262,293 | $ 142,500 |
Stockholders_ Equity (Details N
Stockholders’ Equity (Details Narrative) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Equity [Abstract] | ||
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Shares of designated | 1,000,000 | |
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares, Issued | 14,629,155 | 14,629,155 |
Common Stock, Shares, Outstanding | 14,629,155 | 14,629,155 |