Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | May 29, 2020 | Jun. 30, 2019 | |
Document And Entity Information | |||
Entity Registrant Name | CIRTRAN CORP | ||
Entity Central Index Key | 0000813716 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filer | No | ||
Entity Reporting Status Current | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business Flag | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 4,500,417 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash | $ 214 | |
Inventory | 18,814 | |
Other current assets | 1,210 | |
Assets from discontinued operations | 122 | |
Total current assets | 20,024 | 336 |
Investment in securities at cost | 300,000 | 300,000 |
Property and equipment, net of accumulated depreciation | 9,772 | 12,065 |
Total assets | 329,796 | 312,401 |
Current liabilities | ||
Bank overdraft | 1,611 | |
Accounts payable | 2,121,401 | 2,115,177 |
Related-party payable | 13,740 | 3,000 |
Short-term advances payable | 163,994 | 169,594 |
Short-term advances payable - related parties | 738,655 | 748,633 |
Accrued liabilities | 1,077,999 | 804,465 |
Accrued payroll and compensation expense | 3,757,636 | 3,713,666 |
Accrued interest, current portion | 2,405,946 | 2,024,728 |
Convertible debenture, current portion, net of discounts | 248,874 | 200,000 |
Note payable, current portion | 90,000 | 90,000 |
Note payable to stockholders and members | 151,833 | 151,833 |
Derivative liability | 894,079 | |
Liabilities from discontinued operations | 26,348,853 | 26,156,359 |
Total current liabilities | 38,014,621 | 36,177,455 |
Accrued interest, net of current portion | 1,371,098 | 1,251,570 |
Note payable, net of current portion | 500,000 | 500,000 |
Convertible debenture, net of current portion, net of discount | 1,678,768 | 2,390,528 |
Total liabilities | 41,564,487 | 40,319,553 |
Commitments and contingencies | ||
Stockholders' deficit | ||
Common stock, par value $0.001; 100,000,000 shares authorized; 4,500,417 and 4,500,417 shares issued and outstanding at December 31, 2019 and 2018, respectively | 4,500 | 4,500 |
Additional paid-in capital | 37,222,615 | 37,222,615 |
Accumulated deficit | (78,461,806) | (77,234,267) |
Total stockholders' deficit | (41,234,691) | (40,007,152) |
Total liabilities and stockholders' deficit | $ 329,796 | $ 312,401 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 4,500,417 | 4,500,417 |
Common stock, shares outstanding | 4,500,417 | 4,500,417 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||
Net sales | ||
Cost of sales | ||
Gross profit | ||
Operating expenses | ||
Selling, general and administrative expenses | 406,558 | 447,389 |
Total operating expenses | 406,558 | 447,389 |
Loss from operations | (406,558) | (447,389) |
Other income (expense) | ||
Interest expense | (592,756) | (498,777) |
Other income | 47 | |
Loss on derivative valuation | (80,640) | |
Gain on settlement of debt | 934 | |
Total other income (expense) | (672,415) | (498,777) |
Loss from continuing operations | (1,078,973) | (946,166) |
Loss from discontinued operations | (148,566) | (165,055) |
Net loss | $ (1,227,539) | $ (1,111,221) |
Loss from continuing operations per common share, basic and diluted | $ (0.24) | $ (0.21) |
Net loss from discontinued operations per common share, basic and diluted | (0.03) | (0.04) |
Loss per common share, basic and diluted | $ (0.27) | $ (0.25) |
Basic and diluted weighted average common shares outstanding | 4,500,417 | 4,500,417 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Deficit - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Total |
Balance at Dec. 31, 2017 | $ 4,397 | $ 37,130,718 | $ (76,123,046) | $ (38,987,931) |
Balance, shares at Dec. 31, 2017 | 4,499,390 | |||
Correction of common shares outstanding | $ 103 | (103) | ||
Correction of common shares outstanding, shares | 1,027 | |||
Forgiveness of related-party loan | 92,000 | 92,000 | ||
Net loss | (1,111,221) | (1,111,221) | ||
Balance at Dec. 31, 2018 | $ 4,500 | 37,222,615 | (77,234,267) | (40,007,152) |
Balance, shares at Dec. 31, 2018 | 4,500,417 | |||
Correction of common shares outstanding | ||||
Forgiveness of related-party loan | ||||
Net loss | (1,227,539) | (1,227,539) | ||
Balance at Dec. 31, 2019 | $ 4,500 | $ 37,222,615 | $ (78,461,806) | $ (41,234,691) |
Balance, shares at Dec. 31, 2019 | 4,500,417 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities | ||
Net loss from continuing operations | $ (1,078,973) | $ (946,166) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation expense | 2,293 | 2,292 |
Gain on fair value measurement of derivative liability | 80,640 | |
Debt discount amortization | 34,215 | |
Interest expense recorded on initial measurement of derivative liability | 56,338 | |
Expenses paid for company by a related party | (77,180) | 241,734 |
Changes in operating assets and liabilities: | ||
Inventory | (18,814) | |
Other current assets | (1,210) | 347 |
Accounts payable | 6,224 | (102,153) |
Related-party payable | 10,740 | (5,548) |
Accrued liabilities | 273,534 | 75,081 |
Accrued payroll and compensation | 43,970 | 36,682 |
Accrued interest | 500,746 | 494,254 |
Deferred revenue | (638) | |
Net cash used in continuing operating activities | (167,477) | (204,115) |
Net cash provided by (used in) discontinued operations | 44,050 | (4,875) |
Net cash used in operating activities | (123,427) | (208,990) |
Cash flows from financing activities | ||
Proceeds from bank overdraft | 1,611 | |
Proceeds from convertible loans payable | 60,000 | |
Proceeds from related-party loans | 84,987 | 203,380 |
Repayments of related-party loans | (17,785) | |
Proceeds from loans payable | 15,400 | |
Repayments of loans payable | (21,000) | |
Net cash provided by continuing financing activities | 123,213 | 203,380 |
Cash used in discontinued financing activities | ||
Net cash provided by financing activities | 123,213 | 203,380 |
Net change in cash | (214) | (5,610) |
Cash, beginning of period | 214 | 5,824 |
Cash, end of period | 214 | |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | ||
Cash paid for income taxes | ||
Supplemental disclosure of non-cash investing activities | ||
Initial measurement of derivative liability | 813,439 | |
Forgiveness of related-party loan | 92,000 | |
Correction of common shares outstanding | $ 1,027 |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Operations | NOTE 1 - ORGANIZATION AND NATURE OF OPERATIONS We offer diversified expertise in manufacturing, marketing, distribution, and technology services in a wide variety of consumer products, including tobacco products, medical devices, and beverages. We have an innovative and consumer-focused approach to brand portfolio management, resting on a strong understanding of consumers domestically, and we have established a footprint in more than 50 key, international markets. We devoted most of 2019 to exploring a number of potential product opportunities. In late 2019, we entered into a new, five-year manufacturing and distribution agreement with an unrelated party to manufacture, distribute, and sell condoms, electronic tobacco products, cigars, energy drinks, water beverages, and related merchandise, all using the HUSTLER® brand name. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements as of and for the year ended December 31, 2019, include the accounts of CirTran Corporation and our wholly owned subsidiaries: CirTran Products Corp., LBC Products, Inc., and CirTran - Asia, Inc. All intercompany balances and transactions have been eliminated. The results of CirTran Beverage Corp., CirTran Online Corp., CirTran Media Corp., and Racore Network have been included through the dates of each dissolution during the three months ended March 31, 2019, and the liabilities have been included in the balance sheet as of March 31, 2020 and December 31, 2019. The consolidated financial statements as of and for the year ended December 31, 2018, include the accounts of CirTran Corporation and our wholly owned subsidiaries: CirTran Products Corp., CirTran Corporation (Utah), CirTran Beverage Corp., CirTran Online Corp., CirTran Media Corp., Racore Network, and CirTran - Asia, Inc. All intercompany balances and transactions have been eliminated. Use of Estimates In preparing the financial statements in accordance with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported periods. Actual results could differ from those estimates. Revenue Recognition We follow Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers Cash and Cash Equivalents We consider all highly liquid, short-term investments with an original maturity of three months or less to be cash equivalents. We did not hold any cash equivalents as of December 31, 2019 or 2018. Investment in Securities Our cost-method investment consists of an investment in a private digital multi-media technology company that totaled $300,000 at December 31, 2019 and 2018. As we owned less than 20% of that company’s stock as of each date, and no significant influence or control exists, the investment is accounted for using the cost method. We evaluated the investment for impairment and determined there was none during the periods presented. Property and Equipment We incur certain costs associated with the design and development of molds and dies for our contract-manufacturing segment. These costs are held as deposits on the balance sheet until the molds or dies are finished and ready for use. At that point, the costs are included as part of production equipment in property and equipment and are amortized over their useful lives. We hold title to all molds and dies used in the manufacture of products. The capitalized cost, net of accumulated depreciation, associated with molds and dies included in property and equipment at December 31, 2019 and 2018, was $9,772 and $12,065, respectively. Depreciation expense is recognized in amounts equal to the cost of depreciable assets over estimated service lives. Leasehold improvements are amortized over the shorter of the life of the lease or the service life of the improvements. The straight-line method of depreciation and amortization is followed for financial reporting purposes. Maintenance, repairs, and renewals that neither materially add to the value of the property nor appreciably prolong its life are charged to expense as incurred. Gains or losses on dispositions of property and equipment are included in operating results. Impairment of Long-Lived Assets We review our long-lived assets, including intangibles, for impairment when events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. At each balance sheet date, we evaluate whether events and circumstances have occurred that indicate possible impairment. We use an estimate of future undiscounted net cash flows from the related asset or group of assets over their remaining life in measuring whether the assets are recoverable. We did not record expenses for the impairment of long-lived assets during the year ended December 31, 2019 or 2018. Financial Instruments with Derivative Features We do not hold or issue derivative instruments for trading purposes. However, we have financial instruments that are considered derivatives or contain embedded features subject to derivative accounting. Embedded derivatives are valued separately from the host instrument and are recognized as derivative liabilities in our balance sheet. We measure these instruments at their estimated fair value and recognize changes in their estimated fair value in results of operations during the period of change. We have estimated the fair value of these embedded derivatives using a Multi-NomialLattis model. The fair values of the derivative instruments are measured each reporting period. During the year ended December 31, 2017, our common stock was suspended from trading. Because of this, the convertible notes no longer met the criteria to bifurcate the instrument under FASB ASC 815, Derivatives and Hedging Inventories Inventories are stated at the lower of average cost or market value. Cost on manufactured inventories includes labor, material, and overhead. Overhead cost is based on indirect costs allocated to cost of sales, work-in-process inventory, and finished goods inventory. Indirect overhead costs have been charged to cost of sales or capitalized as inventory, based on management’s estimate of the benefit of indirect manufacturing costs to the manufacturing process. When there is evidence that the inventory’s value is less than original cost, the inventory is reduced to market value. We determine market value on current resale amounts and whether technological obsolescence exists. We will seek agreements with manufacturing customers that require them to purchase their inventory items in the event they cancel their business with us. Stock-Based Compensation We have outstanding stock options to directors and employees, which are described more fully in Note 14 Stock Options and Warrants Accounting for Stock Issued to Employees Stock-based employee compensation was $800 and $480 for the years ended December 31, 2019 and 2018, respectively. Income Taxes We use the liability method of accounting for income taxes. Under the liability method, deferred tax assets and liabilities are determined based on differences between financial reporting and the tax basis of assets, liabilities, the carryforward of operating losses and tax credits, and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. An allowance against deferred tax assets is recorded when it is more likely than not that such tax benefits will not be realized. Research tax credits are recognized as used. Fair Value of Financial Instruments The carrying amounts reported in the accompanying consolidated financial statements for cash, notes payable, and accounts payable approximate fair value because of the immediate or short-term maturities of these financial instruments. The carrying amounts of our debt obligations approximate fair value. ASC 820-10-15, Fair Value Measurement-Overall-Scope and Scope Exceptions Level 1—Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2—Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3—Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Accounts payable and related-party payables have fair values that approximate the carrying value due to the short-term nature of these instruments. Derivative liabilities have been valued using level 3 inputs. Our financial assets and liabilities carried at fair valued measured on a recurring basis as of December 31, 2019 and 2018, consisted of the following: Total Fair Value Quoted prices in Significant other Significant Derivative liabilities $ 894,079 $ - $ - $ 894,079 Total Fair Value Quoted prices in active markets Significant other observable Significant Derivative liabilities $ - $ - $ - $ - Loss Per Share Basic loss per share (EPS) is calculated by dividing net loss available to common shareholders by the weighted-average number of common shares outstanding during each period. Diluted EPS is similarly calculated, except that the weighted-average number of common shares outstanding would include common shares that may be issued subject to existing rights with dilutive potential when applicable. We had 569,029,796 potentially issuable common shares at December 31, 2019. However, the impacts of the potentially issuable common shares were excluded from the diluted loss per common shares outstanding given the anti-dilutive effect such shares have on net losses per common share. Short-term Advances We have short-term advances with various individuals. These advances are due upon demand, carry no interest, and are not collateralized. These advances are classified as short-term liabilities. Recently Issued Accounting Pronouncements Recently issued accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that require adoption and that do not require adoption until a future date are not expected to have a material impact on our financial statements upon adoption. |
Going Concern and Realization o
Going Concern and Realization of Assets | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern and Realization of Assets | NOTE 3 - GOING CONCERN AND REALIZATION OF ASSETS In October 2016, we lost our ability to continue energy drink distribution, our principal source of revenue, after receiving an unfavorable ruling in our suit against Playboy Enterprises, Inc. The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate our continuation as a going concern. We had a working capital deficiency of $37,994,597 and $36,177,119 as of December 31, 2019 and 2018, respectively, and a net loss from continuing operations of $1,078,973 and $946,166 during the years ended December 31, 2019 and 2018, respectively. As of December 31, 2019 and 2018, we had an accumulated deficit of $78,461,806 and $77,234,267, respectively. These conditions raise substantial doubt about our ability to continue as a going concern. Our ability to continue as a going concern is dependent upon our ability to successfully accomplish our business plan described in the following paragraphs and eventually attain profitable operations. The accompanying financial statements do not include any adjustments that may be necessary if we are unable to continue as a going concern. In the coming year, our foreseeable cash requirements will relate to development of business operations and associated expenses. We may experience a cash shortfall and be required to raise additional capital. Historically, we have mostly relied upon shareholder loans and advances to finance operations and growth. Management may raise additional capital by retaining net earnings, if any, or through future public or private offerings of our stock or loans from private investors, although we cannot assure that we will be able to obtain such financing. Our failure to do so could have a material and adverse effect upon us and our shareholders. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | NOTE 4 - PROPERTY AND EQUIPMENT Property and equipment and estimated service lives consist of the following: December 31, Useful Life 2019 2018 (years) Furniture and office equipment $ 177,900 $ 177,900 5 - 10 Leasehold improvements 997,714 997,714 7 - 10 Production equipment 2,886,267 2,886,267 5 - 10 Vehicles 53,209 53,209 3 - 7 Total 4,115,090 4,115,090 Less: accumulated depreciation (4,105,025 ) (4,103,025 ) Property and equipment, net $ 9,772 $ 12,065 There was $2,293 and $2,292 of depreciation expense recorded during the years ended December 31, 2019 and 2018, respectively. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | NOTE 5 - RELATED-PARTY TRANSACTIONS Transactions involving Officers, Directors, and Stockholders In 2007, we issued a 10% promissory note to a family member of our president in exchange for $300,000. The note was due on demand after May 2008. There were no repayments made during the periods presented. At December 31, 2019 and 2018, the principal amount owing on the note was $151,833 and $151,833, respectively. On March 31, 2008, we issued to this same family member, along with two other company shareholders, promissory notes totaling $315,000 ($105,000 each). Under the terms of these three $105,000 notes, we received total proceeds of $300,000 and agreed to repay the amount received plus a 5% borrowing fee. The notes were due April 30, 2008, after which they were due on demand, with interest accruing at 12% per annum. We made no payments towards the outstanding notes during the periods presented. The principal balance owing on the notes as of December 31, 2019 and 2018, totaled $72,466 and $72,466, respectively, and are presented in liabilities from discontinued operations. During the years ended December 31, 2019 and 2018, we received cash advances from related parties of $84,987 and $203,380, respectively. Additionally, related parties paid expenses on our behalf totaling $(77,180) and $241,734 during the years ended December 31, 2019 and 2018, respectively. The advances are non-interest-bearing, due on demand, and are included in current liabilities. Total advances from related parties were: December 31, 2019 2018 Related party A $ 106,018 $ 13,758 Related party B 632,637 734,875 Total $ 738,655 $ 748,633 We have agreed to issue options to Iehab Hawatmeh, our president, as compensation for services provided as our chief executive officer. The terms of this employment agreement require us to grant options to purchase 6,000 shares of our stock each year, with an exercise price equal to the fair market price of our common stock as of the grant date. During the year ended December 31, 2019, we accrued for 6,000 stock options relating to this employee agreement, resulting in 30,000 stock options as of December 31, 2019 and 2018, respectively. See Note 6 – Other Accrued Liabilities Note 14 – Stock Options and Warrants As of December 31, 2019 and 2018, we owe our president a total of $903,740 and $893,000, respectively, in unsecured advances. Additionally, 30,000 stock options with a fair market value of $3,000 were owed as of December 31, 2019 and 2018. The advances and short-term bridge loans were approved by our board of directors under a 5% borrowing fee. The borrowing fees were waived by our president on these loans. |
Other Accrued Liabilities
Other Accrued Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Other Accrued Liabilities | NOTE 6 - OTHER ACCRUED LIABILITIES Accrued tax liabilities consist of delinquent payroll taxes, interest, and penalties owed by us to the Internal Revenue Service (“IRS”) and other tax entities. Accrued liabilities consist of the following: December 31, 2019 2018 Tax liabilities 806,331 758,827 Other 271,668 45,638 Total $ 1,077,999 $ 804,465 Other accrued liabilities as of December 31, 2019 and 2018, include a non-interest-bearing payable totaling $45,000 that is due on demand. Additionally, customer deposits totaling $226,030 were included in other accrued liabilities as of December 31, 2019. Accrued payroll and compensation liabilities consist of the following: December 31, 2019 December 31, 2018 (Revised) Stock option expenses $ 4,000 $ 4,000 Director fees 135,000 135,000 Bonus expenses 121,858 121,858 Commissions 2,148 2,148 Administrative payroll 3,494,630 3,450,660 Total $ 3,757,636 $ 3,713,666 Stock option expenses consist of accrued employee stock option expenses. Options granted during the years ended December 31, 2018 and 2019, were issued during the year ended December 31, 2019 (see Note 14 – Stock Options and Warrants There were 8,000 stock options accrued during the year ended December 31, 2019. During the year ended December 31, 2019, we accrued for 6,000 stock options relating to the employment agreement with Mr. Hawatmeh. The fair market value of the options was $600, using the following assumptions: estimated five-year term, estimated volatility of 567% and a risk-free rate of 2.31%. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 7 - COMMITMENTS AND CONTINGENCIES Litigation and Claims Various vendors, service providers, and others have asserted legal claims in previous years. These creditors generally are not actively seeking collection of amounts due them, and we have determined that the probability of realizing any loss on these claims is remote and will seek to compromise and settle at a deep discount any of such claims that are asserted for collection. These amounts are included in our current liabilities. We have not accrued any liability for claims or judgments that we have determined to be barred by the applicable statute of limitations, which generally is eight years for judgments in Utah. Playboy Enterprises, Inc. Our affiliate, Play Beverages, LLC, filed suit against Playboy Enterprises, Inc., in Cook County, Illinois, Circuit Court in October 2012 asserting numerous claims, including breach of contract and tortious interference. Playboy responded with a counterclaim of breach of contract and trademark infringement. After proceedings in October 2016, the court awarded a judgment to Playboy of $6.6 million against Play Beverages and CirTran Beverage Corp., our subsidiary. The court denied our motion for a new trial and awarded Playboy treble patent infringement damages and attorney’s fees. We filed a notice of appeal in July 2017 and again in March 2018. Playboy has initiated collection efforts but has recovered no funds. In September 2018, the appellate court affirmed the judgment of the circuit court. We have accrued $17,205,599 as of December 31, 2019 and 2018, related to this judgment, which is included in liabilities in discontinued operations. Delinquent Payroll Taxes, Interest, and Penalties In November 2004, the IRS accepted our amended offer in compromise (the “Offer”) to settle delinquent payroll taxes, interest, and penalties, which requires us to pay $500,000, remain current in our payment of taxes for five years, and forego claiming any net operating losses for the years 2001 through 2015 or until we pay taxes on future profits in an amount equal to the taxes of $1,455,767 waived by the Offer. In June 2013, we entered into a partial installment agreement to pay $768,526 in unpaid 2009 payroll taxes, which requires us to pay the IRS 5% of cash deposits. The monthly payments are to continue until the account balances are paid in full or until the collection statute of limitation expires on October 6, 2020. There was $1,048,756 and $986,861 due as of December 31, 2019 and 2018, respectively. Employment Agreements We engage Iehab Hawatmeh, our president and chief executive officer, through an employment agreement entered in August 2009 and amended in September 2017. In July 2017, Mr. Hawatmeh had resigned all positions with us to pursue other business activities, thereby effectively terminating the agreement. However, the amendment to his employment agreement in September 2017 reinstated Mr. Hawatmeh to his previous positions, with a salary in an amount to be determined. Among other things, the reinstated employment agreement: (a) grants options to purchase a minimum of 6,000 shares of our stock each year, with an exercise price equal to the market price of our common stock as of the grant date, for the maximum term allowed under our stock option plan; (b) provides for health insurance coverage, cell phone, car allowance, life insurance, and director and officer liability insurance, as well as any other bonus approved by our board; and (c) includes additional incentive compensation as follows: (i) a quarterly bonus equal to 5% of our earnings before interest, taxes, depreciation and amortization for the applicable quarter; (ii) bonuses equal to 1% of the net purchase price of any acquisitions we complete that are directly generated and arranged by Mr. Hawatmeh; and (iii) an annual bonus (payable quarterly) equal to 1% of our gross sales of all products, net of returns and allowances. In addition to the employment agreement above, we have verbal contracts with our employees that require payment of noncash compensation in a fixed number of shares. During the years ended December 31, 2019 and 2018, we granted options to purchase 8,000 and 8,000 shares of common stock, respectively, to two employees. We recorded expenses totaling $800 and $480 during the years ended December 31, 2019 and 2018, respectively, for employee options relating to the employment contracts of these employees. |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2019 | |
Notes Payable [Abstract] | |
Notes Payable | NOTE 8 - NOTES PAYABLE Notes payable consisted of the following: December 31, 2019 2018 Note payable to former service provider for past due account payable (current) $ 90,000 $ 90,000 Note payable for settlement of debt (long term) 500,000 500,000 Total $ 590,000 $ 590,000 There was $157,535 and $110,035 of accrued interest due on these note as of December 31, 2019 and 2018, respectively. |
Convertible Debentures
Convertible Debentures | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Convertible Debentures | NOTE 9 - CONVERTIBLE DEBENTURES We have entered into various convertible debentures that encumber all of our assets. Convertible debentures consisted of the following: December 31 2019 2018 Convertible debenture, 5% stated interest rate, secured by all of our assets, due on November 12, 2020 $ 200,000 $ 200,000 Convertible debenture, 5% stated interest rate, secured by all of our assets, due on June 3, 2020 25,000 - Convertible debenture, 5% stated interest rate, secured by all of our assets, due on August 8, 2020 25,000 - Convertible debenture, 5% stated interest rate, secured by all of our assets, due on December 23, 2020 10,000 - Convertible debenture, 5% stated interest rate, secured by all of our assets, due on April 30, 2027 2,390,528 2,390,528 Subtotal $ 2,650,528 $ 2,590,528 Less: discounts (722,886 ) - Total $ 1,927,642 $ 2,590,528 Less: current portion (248,874 ) (200,000 ) Long term portion $ 1,678,768 $ 2,390,528 The convertible debentures and accrued interest are convertible into shares of our common stock at the lower of $100 or the lowest bid price for the 20 trading days prior to conversion. As of December 31, 2019 and 2018, we had accrued interest on the convertible debentures totaling $1,399,295 and $1,268,556, respectively, of which $28,199 and $16,986 was current and $1,371,098 and $1,251,570 was long term, respectively. As of December 31, 2019 and 2018, the debentures were convertible into 568,989,796 and an undeterminable number of shares of our common stock. |
Derivative Liabilities
Derivative Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Liabilities | NOTE 10 – DERIVATIVE LIABILITIES As discussed in Note 9 - Convertible Debentures Volatility 91.9% - 100.9% Rick Free Rates 1.55% - 1.80% Stock price $0.0100 – $0.0101 Remaining life 0.542 - 7.33 years The fair values of the derivative instruments are measured each quarter, which resulted in a loss of $80,640 during the year ended December 31, 2019. As of December 31, 2019, and December 31, 2018, the fair market value of the derivatives aggregated $894,079 and $0, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | NOTE 11 - LEASES We sublease from an unaffiliated party at $5,000 per month on a month to month basis for the use of office space and utilities. Due to the short-term nature of the lease, we have not recorded a right of use asset or related payable. We recorded rent expense of $21,000 and $42,000 for the years ended December 31, 2019 and 2018, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 12 - INCOME TAXES We did not provide any current or deferred U.S. federal income tax provision or benefit for any of the periods presented because we have experienced operating losses since inception. When it is more likely than not that a tax asset cannot be realized through future income, the company must allow for this future tax benefit. We provided a full valuation allowance on the net deferred tax asset, consisting of net operating loss carryforwards, because management has determined that it is more likely than not that we will not earn income sufficient to realize the deferred tax assets during the carryforward period. We have not taken a tax position that, if challenged, would have a material effect on the financial statements for the years ended December 31, 2019 and 2018, applicable under FASB ASC 740, Income Taxes As of December 31, 2019 and 2018, we had net operating loss carryforwards for tax reporting purposes of approximately $19.1 million and $26.7 million, respectively. These net operating loss carryforwards, if unused, begin to expire in 2020. During the year ended December 31, 2019, we dissolved four subsidiaries that had total net operating loss carryforwards of approximately $8.9 million, which were forfeited upon dissolution, reducing our deferred tax asset by approximately $1.9 million. In addition, the realization of tax benefits relating to net operating loss carryforwards is limited due to the settlement related to amounts previously due to the IRS, as discussed in Note 6 – Other Accrued Liabilities The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate to income before provision for income taxes. The sources and tax effects of the differences for the periods presented are as follows: Income tax provision at the federal statutory rate 21 % Effect on operating losses (21 )% - Net deferred tax assets consisted of the following: December 31, 2019 December 31, 2018 Net operating loss carryforward $ 4,005,545 $ 5,630,037 Valuation allowance (4,005,545 ) (5,630,037 ) Net deferred tax asset $ — $ — A reconciliation of income taxes computed at the statutory rate is as follows: December 31, 2019 December 31, 2018 Computed federal income tax benefit (expense) at statutory rate of 21% and 21% $ (245,508 ) $ (222,244 ) Depreciation and amortization 459 458 Change in payroll accruals 8,794 7,336 Stock option expense 160 56 Change in derivative liability - - Change in valuation allowance 236,095 214,394 Income tax expense $ - $ - |
Stockholders' Deficit
Stockholders' Deficit | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Deficit | NOTE 13 - STOCKHOLDERS’ DEFICIT We are authorized to issue up to 100,000,000 shares of $0.001 par value common stock. No shares were issued during the periods presented. We had a total of 4,500,417 common shares issued and outstanding as of December 31, 2019 and 2018. During the year ended December 31, 2019, we effected a 1:1000 reverse stock split. The impacts of the reverse stock split have been retroactively stated. |
Stock Options and Warrants
Stock Options and Warrants | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stock Options and Warrants | NOTE 14 - STOCK OPTIONS AND WARRANTS Stock Incentive Plans During the year ended December 31, 2019, we granted options to purchase 8,000 shares of common stock, less forfeitures of options to purchase 8,000 shares of common stock from a previous year, relating to the employment of our president and one of our employees. The fair market value of the accrued stock options aggregated $800, using the following assumptions: seven-year term, volatility of 567%, a risk-free rate of 2.31%, and exercise price of $0.0001. During the year ended December 31, 2018, we granted options to purchase 8,000 shares of common stock, less forfeitures of options to purchase 8,000 shares of common stock from a previous year, relating to the employment of our president and one of our employees. The fair market value of the accrued stock options aggregated $800, using the following assumptions: seven-year term, volatility of 567%, a risk-free rate of 2.38%, and exercise price of $0.0001. As of December 31, 2019, we had no unrecognized compensation costs related to outstanding options that have not yet vested at year-end that would be recognized in subsequent periods. See Note 6 – Other Accrued Liabilities |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | NOTE 15 - DISCONTINUED OPERATIONS At October 21, 2016, we exited the beverage licensing and distribution business. The assets and liabilities associated with this business are displayed as assets and liabilities from discontinued operations as of December 31, 2019 and 2018, as a result. Additionally, the revenues and costs associated with this business are displayed as losses from discontinued operations for the years ended December 31, 2019 and 2018. Total assets and liabilities included in discontinued operations were as follows: December 31, 2019 2018 Assets from Discontinued Operations: Cash $ - 122 Total assets from discontinued operations $ - $ 122 Liabilities from Discontinued Operations: Accounts payable $ 19,690,378 $ 19,869,559 Accrued liabilities 704,917 704,917 Accrued interest 1,022,342 868,874 Accrued payroll and compensation expense 131,108 117,901 Current maturities of long-term debt 444,085 239,085 Related party payable 1,776,250 1,776,250 Short-term advances payable 2,579,773 2,579,773 Total liabilities from discontinued operations $ 26,348,853 $ 26,156,359 Net losses from discontinued operations were comprised of the following components: Year Ended December 31, 2019 2018 Net sales $ - $ - Cost of sales - - Gross profit - - Operating expenses Selling, general and administrative expenses 13,193 11,590 Total operating expenses 13,193 11,590 Other income (expense) Interest expense (153,465 ) (153,465 ) Other income 18,095 - Total other income (expense) (135,373 ) (153,465 ) Net loss from discontinued operations $ (148,566 ) $ (165,055 ) |
Revision to Prior Year Financia
Revision to Prior Year Financial Statements | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Revision to Prior Year Financial Statements | NOTE 16 - REVISION TO PRIOR YEAR FINANCIAL STATEMENTS During the year ended December 31, 2019, we identified an error in the presentation and accounting for option-based liabilities in prior years, dating to the year ended December 31, 2008. We have performed an analysis and determined it appropriate to correct the error on a cumulative basis as of December 31, 2017, resulting in a decrease in accrued liabilities and retained earnings of $476,253 as of December 31, 2017. The impacts on accrued liabilities and retained earnings were also $476,253 as of and for the year ended December 31, 2018. The balance sheet and statement of stockholders’ deficit for the year then ended has been revised to correct the error. Originally Reported Adjustments Revised Total assets $ 312,401 $ - $ 312,401 Accrued payroll and compensation expense $ 4,189,919 $ (476,253 ) $ 3,713,666 Total current liabilities $ 36,653,708 $ (476,253 ) $ 36,177,455 Total liabilities $ 40,795,806 $ (476,253 ) $ 40,319,553 Accumulated deficit $ (77,710,520 ) $ 476,253 $ (77,234,267 ) Total stockholders’ deficit $ (40,483,405 ) $ 476,253 $ (40,007,152 ) Loss from continuing operations $ (946,166 ) $ - $ (946,166 ) Loss from discontinued operations $ (165,055 ) $ - $ (165,055 ) Net loss $ (1,111,221 ) $ - $ (1,111,221 ) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 17 - SUBSEQUENT EVENTS We have evaluated all events occurring subsequent to the financial statements and determined there are no additional items to disclose. However, on March 11, 2020, the World Health Organization characterized COVID-19 as a global pandemic. We are monitoring the situation closely and our response to the COVID-19 pandemic continues to evolve. We have taken measures to mitigate the impact on our business operations and overall financial performance, which continue to evolve. We are also constantly evaluating and responding to the impact of the pandemic on our supply chain as compared to product demand. In addition, we actively monitor COVID-19-related developments and may take further actions that alter our business operations as may be required by federal, state, or local authorities or that we determine are in the best interests of our employees, customers, vendors, and stockholders. The effects of these operational modifications will be reflected in current and future reporting periods. On March 30, 2020, we filed a Current Report on Form 8-K to indicate our reliance on the Order of the U.S. Securities and Exchange Commission (Release No. 34-88465) in connection with filing our Annual Report on Form 10-K for the year ended December 31, 2019, as a result of the circumstances set forth below. Specifically, our executive team and contract outside accountant that live in Salt Lake City, Utah, were dislocated and delayed as they began working remotely in a “shelter-at-home” environment in response to the COVID-19 pandemic that precluded face-to-face meetings. The difficulty of operating in the COVID-19 “shelter-at-home” environment was then exacerbated by a 5.7 Richter scale earthquake and persistent ongoing aftershocks in the Salt Lake Valley. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements as of and for the year ended December 31, 2019, include the accounts of CirTran Corporation and our wholly owned subsidiaries: CirTran Products Corp., LBC Products, Inc., and CirTran - Asia, Inc. All intercompany balances and transactions have been eliminated. The results of CirTran Beverage Corp., CirTran Online Corp., CirTran Media Corp., and Racore Network have been included through the dates of each dissolution during the three months ended March 31, 2019, and the liabilities have been included in the balance sheet as of March 31, 2020 and December 31, 2019. The consolidated financial statements as of and for the year ended December 31, 2018, include the accounts of CirTran Corporation and our wholly owned subsidiaries: CirTran Products Corp., CirTran Corporation (Utah), CirTran Beverage Corp., CirTran Online Corp., CirTran Media Corp., Racore Network, and CirTran - Asia, Inc. All intercompany balances and transactions have been eliminated. |
Use of Estimates | Use of Estimates In preparing the financial statements in accordance with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported periods. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition We follow Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid, short-term investments with an original maturity of three months or less to be cash equivalents. We did not hold any cash equivalents as of December 31, 2019 or 2018. |
Investment in Securities | Investment in Securities Our cost-method investment consists of an investment in a private digital multi-media technology company that totaled $300,000 at December 31, 2019 and 2018. As we owned less than 20% of that company’s stock as of each date, and no significant influence or control exists, the investment is accounted for using the cost method. We evaluated the investment for impairment and determined there was none during the periods presented. |
Property and Equipment | Property and Equipment We incur certain costs associated with the design and development of molds and dies for our contract-manufacturing segment. These costs are held as deposits on the balance sheet until the molds or dies are finished and ready for use. At that point, the costs are included as part of production equipment in property and equipment and are amortized over their useful lives. We hold title to all molds and dies used in the manufacture of products. The capitalized cost, net of accumulated depreciation, associated with molds and dies included in property and equipment at December 31, 2019 and 2018, was $9,772 and $12,065, respectively. Depreciation expense is recognized in amounts equal to the cost of depreciable assets over estimated service lives. Leasehold improvements are amortized over the shorter of the life of the lease or the service life of the improvements. The straight-line method of depreciation and amortization is followed for financial reporting purposes. Maintenance, repairs, and renewals that neither materially add to the value of the property nor appreciably prolong its life are charged to expense as incurred. Gains or losses on dispositions of property and equipment are included in operating results. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We review our long-lived assets, including intangibles, for impairment when events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. At each balance sheet date, we evaluate whether events and circumstances have occurred that indicate possible impairment. We use an estimate of future undiscounted net cash flows from the related asset or group of assets over their remaining life in measuring whether the assets are recoverable. We did not record expenses for the impairment of long-lived assets during the year ended December 31, 2019 or 2018. |
Financial Instruments with Derivative Features | Financial Instruments with Derivative Features We do not hold or issue derivative instruments for trading purposes. However, we have financial instruments that are considered derivatives or contain embedded features subject to derivative accounting. Embedded derivatives are valued separately from the host instrument and are recognized as derivative liabilities in our balance sheet. We measure these instruments at their estimated fair value and recognize changes in their estimated fair value in results of operations during the period of change. We have estimated the fair value of these embedded derivatives using a Multi-NomialLattis model. The fair values of the derivative instruments are measured each reporting period. During the year ended December 31, 2017, our common stock was suspended from trading. Because of this, the convertible notes no longer met the criteria to bifurcate the instrument under FASB ASC 815, Derivatives and Hedging |
Inventories | Inventories Inventories are stated at the lower of average cost or market value. Cost on manufactured inventories includes labor, material, and overhead. Overhead cost is based on indirect costs allocated to cost of sales, work-in-process inventory, and finished goods inventory. Indirect overhead costs have been charged to cost of sales or capitalized as inventory, based on management’s estimate of the benefit of indirect manufacturing costs to the manufacturing process. When there is evidence that the inventory’s value is less than original cost, the inventory is reduced to market value. We determine market value on current resale amounts and whether technological obsolescence exists. We will seek agreements with manufacturing customers that require them to purchase their inventory items in the event they cancel their business with us. |
Stock-Based Compensation | Stock-Based Compensation We have outstanding stock options to directors and employees, which are described more fully in Note 14 Stock Options and Warrants Accounting for Stock Issued to Employees Stock-based employee compensation was $800 and $480 for the years ended December 31, 2019 and 2018, respectively. |
Income Taxes | Income Taxes We use the liability method of accounting for income taxes. Under the liability method, deferred tax assets and liabilities are determined based on differences between financial reporting and the tax basis of assets, liabilities, the carryforward of operating losses and tax credits, and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. An allowance against deferred tax assets is recorded when it is more likely than not that such tax benefits will not be realized. Research tax credits are recognized as used. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts reported in the accompanying consolidated financial statements for cash, notes payable, and accounts payable approximate fair value because of the immediate or short-term maturities of these financial instruments. The carrying amounts of our debt obligations approximate fair value. ASC 820-10-15, Fair Value Measurement-Overall-Scope and Scope Exceptions Level 1—Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2—Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3—Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Accounts payable and related-party payables have fair values that approximate the carrying value due to the short-term nature of these instruments. Derivative liabilities have been valued using level 3 inputs. Our financial assets and liabilities carried at fair valued measured on a recurring basis as of December 31, 2019 and 2018, consisted of the following: Total Fair Value Quoted prices in Significant other Significant Derivative liabilities $ 894,079 $ - $ - $ 894,079 Total Fair Value Quoted prices in active markets Significant other observable Significant Derivative liabilities $ - $ - $ - $ - |
Loss Per Share | Loss Per Share Basic loss per share (EPS) is calculated by dividing net loss available to common shareholders by the weighted-average number of common shares outstanding during each period. Diluted EPS is similarly calculated, except that the weighted-average number of common shares outstanding would include common shares that may be issued subject to existing rights with dilutive potential when applicable. We had 569,029,796 potentially issuable common shares at December 31, 2019. However, the impacts of the potentially issuable common shares were excluded from the diluted loss per common shares outstanding given the anti-dilutive effect such shares have on net losses per common share. |
Short-Term Advances | Short-term Advances We have short-term advances with various individuals. These advances are due upon demand, carry no interest, and are not collateralized. These advances are classified as short-term liabilities. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Recently issued accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that require adoption and that do not require adoption until a future date are not expected to have a material impact on our financial statements upon adoption. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Financial Assets and Liabilities Carried at Fair Valued Measured on Recurring Basis | Our financial assets and liabilities carried at fair valued measured on a recurring basis as of December 31, 2019 and 2018, consisted of the following: Total Fair Value Quoted prices in Significant other Significant Derivative liabilities $ 894,079 $ - $ - $ 894,079 Total Fair Value Quoted prices in active markets Significant other observable Significant Derivative liabilities $ - $ - $ - $ - |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment and Estimated Service Lives | Property and equipment and estimated service lives consist of the following: December 31, Useful Life 2019 2018 (years) Furniture and office equipment $ 177,900 $ 177,900 5 - 10 Leasehold improvements 997,714 997,714 7 - 10 Production equipment 2,886,267 2,886,267 5 - 10 Vehicles 53,209 53,209 3 - 7 Total 4,115,090 4,115,090 Less: accumulated depreciation (4,105,025 ) (4,103,025 ) Property and equipment, net $ 9,772 $ 12,065 |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Total advances from related parties were: December 31, 2019 2018 Related party A $ 106,018 $ 13,758 Related party B 632,637 734,875 Total $ 738,655 $ 748,633 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following: December 31, 2019 2018 Tax liabilities 806,331 758,827 Other 271,668 45,638 Total $ 1,077,999 $ 804,465 |
Schedule of Accrued Payroll and Compensation Liabilities | Accrued payroll and compensation liabilities consist of the following: December 31, 2019 December 31, 2018 (Revised) Stock option expenses $ 4,000 $ 4,000 Director fees 135,000 135,000 Bonus expenses 121,858 121,858 Commissions 2,148 2,148 Administrative payroll 3,494,630 3,450,660 Total $ 3,757,636 $ 3,713,666 |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable | Notes payable consisted of the following: December 31, 2019 2018 Note payable to former service provider for past due account payable (current) $ 90,000 $ 90,000 Note payable for settlement of debt (long term) 500,000 500,000 Total $ 590,000 $ 590,000 |
Convertible Debentures (Tables)
Convertible Debentures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Debentures | We have entered into various convertible debentures that encumber all of our assets. Convertible debentures consisted of the following: December 31 2019 2018 Convertible debenture, 5% stated interest rate, secured by all of our assets, due on November 12, 2020 $ 200,000 $ 200,000 Convertible debenture, 5% stated interest rate, secured by all of our assets, due on June 3, 2020 25,000 - Convertible debenture, 5% stated interest rate, secured by all of our assets, due on August 8, 2020 25,000 - Convertible debenture, 5% stated interest rate, secured by all of our assets, due on December 23, 2020 10,000 - Convertible debenture, 5% stated interest rate, secured by all of our assets, due on April 30, 2027 2,390,528 2,390,528 Subtotal $ 2,650,528 $ 2,590,528 Less: discounts (722,886 ) - Total $ 1,927,642 $ 2,590,528 Less: current portion (248,874 ) (200,000 ) Long term portion $ 1,678,768 $ 2,390,528 |
Derivative Liabilities (Tables)
Derivative Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Liabilities at Fair Value | We have estimated the fair value of these embedded derivatives for convertible debentures and associated warrants using a Monte Carlo simulation model as of December 31, 2019, using the following assumptions: Volatility 91.9% - 100.9% Rick Free Rates 1.55% - 1.80% Stock price $0.0100 – $0.0101 Remaining life 0.542 - 7.33 years |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Statutory Federal Income Tax Rate to Income Before Provision for Income Taxes | The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate to income before provision for income taxes. The sources and tax effects of the differences for the periods presented are as follows: Income tax provision at the federal statutory rate 21 % Effect on operating losses (21 )% - |
Schedule of Net Deferred Tax Assets | Net deferred tax assets consisted of the following: December 31, 2019 December 31, 2018 Net operating loss carryforward $ 4,005,545 $ 5,630,037 Valuation allowance (4,005,545 ) (5,630,037 ) Net deferred tax asset $ — $ — |
Schedule of Reconciliation of Income Taxes Computed at Statutory Rate | A reconciliation of income taxes computed at the statutory rate is as follows: December 31, 2019 December 31, 2018 Computed federal income tax benefit (expense) at statutory rate of 21% and 21% $ (245,508 ) $ (222,244 ) Depreciation and amortization 459 458 Change in payroll accruals 8,794 7,336 Stock option expense 160 56 Change in derivative liability - - Change in valuation allowance 236,095 214,394 Income tax expense $ - $ - |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | Total assets and liabilities included in discontinued operations were as follows: December 31, 2019 2018 Assets from Discontinued Operations: Cash $ - 122 Total assets from discontinued operations $ - $ 122 Liabilities from Discontinued Operations: Accounts payable $ 19,690,378 $ 19,869,559 Accrued liabilities 704,917 704,917 Accrued interest 1,022,342 868,874 Accrued payroll and compensation expense 131,108 117,901 Current maturities of long-term debt 444,085 239,085 Related party payable 1,776,250 1,776,250 Short-term advances payable 2,579,773 2,579,773 Total liabilities from discontinued operations $ 26,348,853 $ 26,156,359 Net losses from discontinued operations were comprised of the following components: Year Ended December 31, 2019 2018 Net sales $ - $ - Cost of sales - - Gross profit - - Operating expenses Selling, general and administrative expenses 13,193 11,590 Total operating expenses 13,193 11,590 Other income (expense) Interest expense (153,465 ) (153,465 ) Other income 18,095 - Total other income (expense) (135,373 ) (153,465 ) Net loss from discontinued operations $ (148,566 ) $ (165,055 ) |
Revision to Prior Year Financ_2
Revision to Prior Year Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | Originally Reported Adjustments Revised Total assets $ 312,401 $ - $ 312,401 Accrued payroll and compensation expense $ 4,189,919 $ (476,253 ) $ 3,713,666 Total current liabilities $ 36,653,708 $ (476,253 ) $ 36,177,455 Total liabilities $ 40,795,806 $ (476,253 ) $ 40,319,553 Accumulated deficit $ (77,710,520 ) $ 476,253 $ (77,234,267 ) Total stockholders’ deficit $ (40,483,405 ) $ 476,253 $ (40,007,152 ) Loss from continuing operations $ (946,166 ) $ - $ (946,166 ) Loss from discontinued operations $ (165,055 ) $ - $ (165,055 ) Net loss $ (1,111,221 ) $ - $ (1,111,221 ) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash equivalents | ||
Investment in securities at cost | 300,000 | 300,000 |
Property and equipment, net of accumulated depreciation | $ 9,772 | 12,065 |
Depreciation method | The straight-line method of depreciation and amortization is followed for financial reporting purposes. | |
Impairment of long-lived assets | ||
Stock-based employee compensation | $ 800 | $ 480 |
Potentially issuable common shares | 569,029,796 | |
Maximum [Member] | ||
Equity ownership percentage | 20.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Financial Assets and Liabilities Carried at Fair Valued Measured on Recurring Basis (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative liabilities | $ 894,079 | |
Quoted Prices in Active Markets Level 1 [Member] | ||
Derivative liabilities | ||
Significant Other Observable Inputs Level 2 [Member] | ||
Derivative liabilities | ||
Significant Unobservable Inputs Level 3 [Member] | ||
Derivative liabilities | $ 894,079 |
Going Concern and Realization_2
Going Concern and Realization of Assets (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Working capital | $ (37,994,597) | $ (36,177,119) |
Net loss | (1,078,973) | (946,166) |
Accumulated deficit | $ (78,461,806) | $ (77,234,267) |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 2,293 | $ 2,292 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment and Estimated Service Lives (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 4,115,090 | $ 4,115,090 |
Less accumulated depreciation | (4,105,025) | (4,103,025) |
Property and equipment, net | 9,772 | 12,065 |
Furniture and Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 177,900 | 177,900 |
Furniture and Office Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life (years) | 5 years | |
Furniture and Office Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life (years) | 10 years | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 997,714 | 997,714 |
Leasehold Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life (years) | 7 years | |
Leasehold Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life (years) | 10 years | |
Production Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 2,886,267 | 2,886,267 |
Production Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life (years) | 5 years | |
Production Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life (years) | 10 years | |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 53,209 | $ 53,209 |
Vehicles [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life (years) | 3 years | |
Vehicles [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life (years) | 7 years |
Related-Party Transactions (Det
Related-Party Transactions (Details Narrative) - USD ($) | Mar. 31, 2008 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2007 |
Related Party Transaction [Line Items] | ||||
Promissory notes payable | $ 590,000 | $ 590,000 | ||
Cash advance from related parties | 84,987 | 203,380 | ||
Related party, expenses paid | $ (77,180) | $ 241,734 | ||
Number of stock options accrued | 8,000 | |||
Employee Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Number of stock options accrued | 30,000 | 30,000 | ||
Iehab Hawatmeh [Member] | ||||
Related Party Transaction [Line Items] | ||||
Unsecured advances payable to related party | $ 903,740 | $ 893,000 | ||
Fair value of stock options granted | $ 3,000 | |||
Iehab Hawatmeh [Member] | Employee Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Number of shares purchased to grant options | 6,000 | |||
Number of stock options accrued | 6,000 | |||
Promissory Notes Payable [Member] | ||||
Related Party Transaction [Line Items] | ||||
Promissory note percentage | 12.00% | |||
Debt instrument, face amount | $ 72,466 | 72,466 | ||
Promissory notes payable | $ 315,000 | |||
Proceeds from promissory notes | $ 300,000 | |||
Borrowing fee, percentage | 5.00% | |||
Debt instrument, maturity date | Apr. 30, 2008 | |||
Promissory Notes Payable [Member] | Shareholder One [Member] | ||||
Related Party Transaction [Line Items] | ||||
Promissory notes payable | $ 105,000 | |||
Promissory Notes Payable [Member] | Shareholder Two [Member] | ||||
Related Party Transaction [Line Items] | ||||
Promissory notes payable | 105,000 | |||
Promissory Notes Payable [Member] | Shareholders Three [Member] | ||||
Related Party Transaction [Line Items] | ||||
Promissory notes payable | $ 105,000 | |||
President [Member] | ||||
Related Party Transaction [Line Items] | ||||
Promissory note percentage | 10.00% | |||
Debt conversion of amount | $ 300,000 | |||
Debt instrument, due date description | The note was due on demand after May 2008 | |||
Debt instrument, face amount | $ 151,833 | $ 151,833 | ||
Board Of Directors [Member] | ||||
Related Party Transaction [Line Items] | ||||
Borrowing fee, percentage | 5.00% |
Related-Party Transactions - Sc
Related-Party Transactions - Schedule of Related Party Transactions (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Due to related parties | $ 738,655 | $ 748,633 |
Related Party A [Member] | ||
Due to related parties | 106,018 | 13,758 |
Related Party B [Member] | ||
Due to related parties | $ 632,637 | $ 734,875 |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Other accrued liabilities | $ 45,000 | $ 45,000 |
Customer deposits | $ 226,030 | |
Share based compensation accrued for stock options | 8,000 | |
Mr. Hawatmeh [Member] | Employment Agreement [Member] | ||
Share based compensation accrued for stock options | 6,000 | |
Fair value of stock options issued | $ 600 | |
Fair market value assumptions estimated term | 5 years | |
Fair market value assumptions estimated volatility | 567.00% | |
Fair market value assumptions risk-free rate | 2.31% |
Other Accrued Liabilities - Sch
Other Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Tax liabilities | $ 806,331 | $ 758,827 |
Other | 271,668 | 45,638 |
Totals | $ 1,077,999 | $ 804,465 |
Other Accrued Liabilities - S_2
Other Accrued Liabilities - Schedule of Accrued Payroll and Compensation Liabilities (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Stock option expenses | $ 4,000 | $ 4,000 |
Director fees | 135,000 | 135,000 |
Bonus expenses | 121,858 | 121,858 |
Commissions | 2,148 | 2,148 |
Administrative payroll | 3,494,630 | 3,450,660 |
Total | $ 3,757,636 | $ 3,713,666 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) | Jun. 30, 2013 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2017 | Nov. 30, 2004 | Dec. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2013 |
Commitments and Contingencies [Line Items] | ||||||||
Employee related expenses | $ 3,757,636 | $ 3,713,666 | $ 3,757,636 | |||||
President [Member] | ||||||||
Commitments and Contingencies [Line Items] | ||||||||
Employee related expenses | $ 800 | 800 | $ 480 | |||||
Employment Agreement [Member] | President [Member] | ||||||||
Commitments and Contingencies [Line Items] | ||||||||
Options to purchase shares | 8,000 | 8,000 | 6,000 | |||||
Quarterly bonus as stated percentage of earnings before interest, taxes, depreciation and amortization for the applicable quarter | 5.00% | |||||||
Bonus percentage of net purchase price of acquisitions completed | 1.00% | |||||||
Annual bonus percentage of gross sales, net of returns and allowances | 1.00% | |||||||
Delinquent Payroll Taxes Interest and Penalties [Member] | ||||||||
Commitments and Contingencies [Line Items] | ||||||||
Payment for acceptance of delinquent payroll taxes, interest and penalties offer | $ 500,000 | |||||||
Period of required offer to remain current in payment of taxes | 5 years | |||||||
Amount of taxes waived | $ 1,455,767 | |||||||
Unpaid 2009 payroll taxes | $ 768,526 | |||||||
IRS of cash deposits | 5.00% | |||||||
Due to related party | $ 1,048,756 | $ 986,861 | 1,048,756 | |||||
Playboy Enterprises, Inc. [Member] | ||||||||
Commitments and Contingencies [Line Items] | ||||||||
Ligation settlement amount awarded | 6,600,000 | |||||||
Accrued claim amount | $ 17,205,599 | $ 17,205,599 | $ 17,205,599 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Notes Payable [Member] | ||
Short-term Debt [Line Items] | ||
Accrued interest on notes payable | $ 157,535 | $ 110,035 |
Notes Payable - Schedule of Not
Notes Payable - Schedule of Notes Payable (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Note payable to former service provider for past due account payable (current) | $ 90,000 | $ 90,000 |
Note payable for settlement of debt (long term) | 500,000 | 500,000 |
Total | $ 590,000 | $ 590,000 |
Convertible Debentures (Details
Convertible Debentures (Details Narrative) | 12 Months Ended | |
Dec. 31, 2019USD ($)Integer$ / sharesshares | Dec. 31, 2018USD ($)shares | |
Short-term Debt [Line Items] | ||
Lowest bid price | $ / shares | $ 100 | |
Debt convertible, threshold trading days | Integer | 20 | |
Accrued interest on convertible debentures, current | $ 2,405,946 | $ 2,024,728 |
Convertible Debentures [Member] | ||
Short-term Debt [Line Items] | ||
Accrued interest on convertible debentures | 1,399,295 | 1,268,556 |
Accrued interest on convertible debentures, current | 28,199 | 16,986 |
Accrued interest on convertible debentures, noncurrent | $ 1,371,098 | $ 1,251,570 |
Debentures were convertible into common shares | shares | 568,989,796 | 568,989,796 |
Convertible Debentures - Schedu
Convertible Debentures - Schedule of Convertible Debentures (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Short-term Debt [Line Items] | ||
Subtotal | $ 2,650,528 | $ 2,590,528 |
Less: discounts | (722,886) | |
Total | 1,927,642 | 2,590,528 |
Less: current portion | (248,874) | (200,000) |
Long term portion | 1,678,768 | 2,390,528 |
Convertible Debenture One [Member] | ||
Short-term Debt [Line Items] | ||
Subtotal | 200,000 | 200,000 |
Convertible Debenture Two [Member] | ||
Short-term Debt [Line Items] | ||
Subtotal | 25,000 | |
Convertible Debenture Three [Member] | ||
Short-term Debt [Line Items] | ||
Subtotal | 25,000 | |
Convertible Debenture Four [Member] | ||
Short-term Debt [Line Items] | ||
Subtotal | 10,000 | |
Convertible Debenture Five [Member] | ||
Short-term Debt [Line Items] | ||
Subtotal | $ 2,390,528 | $ 2,390,528 |
Convertible Debentures - Sche_2
Convertible Debentures - Schedule of Convertible Debentures (Details) (Parenthetical) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Convertible Debenture One [Member] | ||
Convertible debenture, stated interest rate | 5.00% | 5.00% |
Debt instruments maturity date | Nov. 12, 2020 | Nov. 12, 2020 |
Convertible Debenture Two [Member] | ||
Convertible debenture, stated interest rate | 5.00% | 5.00% |
Debt instruments maturity date | Jun. 3, 2020 | Jun. 3, 2020 |
Convertible Debenture Three [Member] | ||
Convertible debenture, stated interest rate | 5.00% | 5.00% |
Debt instruments maturity date | Aug. 8, 2020 | Aug. 8, 2020 |
Convertible Debenture Four [Member] | ||
Convertible debenture, stated interest rate | 5.00% | 5.00% |
Debt instruments maturity date | Dec. 23, 2020 | Dec. 23, 2020 |
Convertible Debenture Five [Member] | ||
Convertible debenture, stated interest rate | 5.00% | 5.00% |
Debt instruments maturity date | Apr. 30, 2027 | Apr. 30, 2027 |
Derivative Liabilities (Details
Derivative Liabilities (Details Narrative) | 12 Months Ended | |
Dec. 31, 2019USD ($)Integer$ / shares | Dec. 31, 2018USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Convertible debentures | $ 2,650,528 | $ 2,590,528 |
Lowest bid price | $ / shares | $ 100 | |
Debt convertible, threshold trading days | Integer | 20 | |
Loss on derivative valuation | $ 80,640 | |
Derivative liability | $ 894,079 |
Derivative Liabilities - Schedu
Derivative Liabilities - Schedule of Derivative Liabilities at Fair Value (Details) | 12 Months Ended |
Dec. 31, 2019Integer | |
Minimum [Member] | Volatility [Member] | |
Derivative liability, measurement input | 91.9 |
Minimum [Member] | Risk Free Rate [Member] | |
Derivative liability, measurement input | 1.55 |
Minimum [Member] | Stock Price [Member] | |
Derivative liability, measurement input | 0.0100 |
Minimum [Member] | Remaining Life [Member] | |
Derivative liability, remaining life | 65 months 1 day |
Maximum [Member] | Volatility [Member] | |
Derivative liability, measurement input | 100.9 |
Maximum [Member] | Risk Free Rate [Member] | |
Derivative liability, measurement input | 1.80 |
Maximum [Member] | Stock Price [Member] | |
Derivative liability, measurement input | 0.0101 |
Maximum [Member] | Remaining Life [Member] | |
Derivative liability, remaining life | 7 years 3 months 29 days |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Rent expense | $ 21,000 | $ 42,000 |
Unaffiliated Party [Member] | ||
Rent expense | $ 5,000 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 19,100,000 | $ 26,700,000 |
Operating loss carryforwards, expiration description | During the year ended December 31, 2019, we dissolved four subsidiaries that had total net operating loss carryforwards of approximately $8.9 million, which were forfeited upon dissolution, reducing our deferred tax asset by approximately $1.9 million. | |
Forfeited upon dissolution reducing deferred tax asset | $ 1,900,000 | |
Dissolved Four Subsidiaries [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 8,900,000 |
Income Taxes - Schedule of Stat
Income Taxes - Schedule of Statutory Federal Income Tax Rate to Income Before Provision for Income Taxes (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income tax provision at the federal statutory rate | 21.00% | 21.00% |
Effect on operating losses | (21.00%) | |
Income tax rate | 0.00% |
Income Taxes - Schedule of Net
Income Taxes - Schedule of Net Deferred Tax Assets (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforward | $ 4,005,545 | $ 5,630,037 |
Valuation allowance | (4,005,545) | (5,630,037) |
Net deferred tax asset |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Income Taxes Computed at Statutory Rate (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Computed federal income tax benefit (expense) at statutory rate of 21% and 21% | $ (245,508) | $ (222,244) |
Depreciation and amortization | 459 | 458 |
Change in payroll accruals | 8,794 | 7,336 |
Stock option expense | 160 | 56 |
Change in derivative liability | ||
Change in valuation allowance | 236,095 | 214,394 |
Income tax expense |
Income Taxes - Schedule of Re_2
Income Taxes - Schedule of Reconciliation of Income Taxes Computed at Statutory Rate (Details) (Parenthetical) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Federal income tax benefit (expense) at statutory rate | 21.00% | 21.00% |
Stockholders' Deficit (Details
Stockholders' Deficit (Details Narrative) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | ||
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Number of shares issued during period | ||
Common stock, shares issued | 4,500,417 | 4,500,417 |
Common stock, shares outstanding | 4,500,417 | 4,500,417 |
Reverse stock split | 1:1000 reverse stock split |
Stock Options and Warrants (Det
Stock Options and Warrants (Details Narrative) - Stock Incentive Plans [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair market value assumptions estimated term | 7 years | 7 years |
Fair market value assumptions estimated volatility | 567.00% | 567.00% |
Fair market value assumptions risk-free rate | 2.31% | 2.38% |
Exercise price of stock options | $ 0.0001 | $ 0.0001 |
President and One Employees [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of stock options, granted during period | 8,000 | 8,000 |
Number of stock options forfeited | 8,000 | 8,000 |
Fair market value of accrued stock options | $ 800 | $ 800 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Discontinued Operations (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Cash | $ 122 | |
Total assets from discontinued operations | 122 | |
Accounts payable | 19,690,378 | 19,869,559 |
Accrued liabilities | 704,917 | 704,917 |
Accrued interest | 1,022,342 | 868,874 |
Accrued payroll and compensation expense | 131,108 | 117,901 |
Current maturities of long-term debt | 444,085 | 239,085 |
Related party payable | 1,776,250 | 1,776,250 |
Short-term advances payable | 2,579,773 | 2,579,773 |
Total liabilities from discontinued operations | 26,348,853 | 26,156,359 |
Net sales | ||
Cost of sales | ||
Gross profit | ||
Selling, general and administrative expenses | 13,193 | 11,590 |
Total operating expenses | 13,193 | 11,590 |
Interest expense | (153,465) | (153,465) |
Other income | 18,095 | |
Total other income (expense) | (135,373) | (153,465) |
Net loss from discontinued operations | $ (148,566) | $ (165,055) |
Revision to Prior Year Financ_3
Revision to Prior Year Financial Statements (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | ||
Decrease in accrued liabilities and retained earnings | $ 476,253 | $ 476,253 |
Revision to Prior Year Financ_4
Revision to Prior Year Financial Statements - Schedule of Error Corrections and Prior Period Adjustments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Total assets | $ 329,796 | $ 312,401 | |
Accrued payroll and compensation expense | 3,757,636 | 3,713,666 | |
Total current liabilities | 38,014,621 | 36,177,455 | |
Total liabilities | 41,564,487 | 40,319,553 | |
Accumulated deficit | (78,461,806) | (77,234,267) | |
Total stockholders' deficit | (41,234,691) | (40,007,152) | $ (38,987,931) |
Loss from continuing operations | (1,078,973) | (946,166) | |
Loss from discontinued operations | (148,566) | (165,055) | |
Net loss | $ (1,227,539) | (1,111,221) | |
Previously Reported [Member] | |||
Total assets | 312,401 | ||
Accrued payroll and compensation expense | 4,189,919 | ||
Total current liabilities | 36,653,708 | ||
Total liabilities | 40,795,806 | ||
Accumulated deficit | (77,710,520) | ||
Total stockholders' deficit | (40,483,405) | ||
Loss from continuing operations | (946,166) | ||
Loss from discontinued operations | (165,055) | ||
Net loss | (1,111,221) | ||
Adjustments [Member] | |||
Total assets | |||
Accrued payroll and compensation expense | (476,253) | ||
Total current liabilities | (476,253) | ||
Total liabilities | (476,253) | ||
Accumulated deficit | 476,253 | ||
Total stockholders' deficit | 476,253 | ||
Loss from continuing operations | |||
Loss from discontinued operations | |||
Net loss |