Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 13, 2023 | |
Document Information Line Items | ||
Entity Registrant Name | APPLIED ENERGETICS, INC. | |
Trading Symbol | AERG | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 211,176,688 | |
Amendment Flag | false | |
Entity Central Index Key | 0000879911 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-14015 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 77-0262908 | |
Entity Address, Address Line One | 9070 S. Rita Road | |
Entity Address, Address Line Two | Suite 1500 | |
Entity Address, City or Town | Tucson | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85747 | |
City Area Code | (520) | |
Local Phone Number | 628-7415 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Security Exchange Name | NONE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 2,418,714 | $ 5,640,308 |
Receivables, net | 404,051 | 353,149 |
Other assets | 193,887 | 92,774 |
Total current assets | 3,016,652 | 6,086,231 |
Long-term assets | ||
Property and equipment - net | 280,275 | 192,935 |
Right of use asset - operating | 1,101,093 | 432,057 |
Security deposit | 17,004 | 17,004 |
Total long-term assets | 1,398,372 | 641,996 |
Total assets | 4,415,024 | 6,728,227 |
Current liabilities | ||
Accounts payable | 232,101 | 116,971 |
Notes payable | 51,847 | 400,000 |
Due to related parties | 50,000 | 50,000 |
Operating lease liability - current | 155,093 | 113,478 |
Deferred revenue | 366,006 | |
Accrued expenses | 49,875 | 28,007 |
Accrued dividends | 48,079 | 48,079 |
Total current liabilities | 953,001 | 756,535 |
Long-term liabilities | ||
Operating lease liability - non-current | 1,041,089 | 393,709 |
Total long-term liabilities | 1,041,089 | 393,709 |
Total liabilities | 1,994,090 | 1,150,244 |
Stockholders’ Equity | ||
Series A convertible preferred stock, $.001 par value, 2,000,000 shares authorized and 13,602 shares issued and outstanding at September 30, 2023 and December 31, 2022 (Liquidation preference $340,050 and $340,050, respectively) | 14 | 14 |
Common stock, $.001 par value, 500,000,000 shares authorized; 211,146,688 and 210,848,671 shares issued and outstanding at September 30, 2023 and at December 31, 2022, respectively | 211,141 | 210,843 |
Additional paid-in capital | 111,241,064 | 108,830,989 |
Accumulated deficit | (109,031,285) | (103,463,863) |
Total stockholders’ equity | 2,420,934 | 5,577,983 |
Total Liabilities and Stockholders’ Equity | $ 4,415,024 | $ 6,728,227 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 211,146,688 | 210,848,671 |
Common stock, shares outstanding | 211,146,688 | 210,848,671 |
Series A convertible preferred stock | ||
Series A convertible preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Series A convertible preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Series A convertible preferred stock, shares issued | 13,602 | 13,602 |
Series A convertible preferred stock, shares outstanding | 13,602 | 13,602 |
Series A convertible preferred stock, liquidation preference (in Dollars) | $ 340,050 | $ 340,050 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenue | $ 712,810 | $ 572,766 | $ 1,759,433 | $ 763,688 |
Cost of revenue | 174,412 | 127,668 | 492,852 | 142,835 |
Gross profit | 538,398 | 445,098 | 1,266,581 | 620,853 |
Operating expenses | ||||
General and administrative | 2,219,641 | 1,249,132 | 6,401,550 | 4,365,823 |
Selling and marketing | 94,092 | 56,416 | 297,447 | 231,528 |
Research and development | 54,222 | 65,364 | 166,958 | 286,365 |
Total operating expenses | 2,367,955 | 1,370,912 | 6,865,955 | 4,883,716 |
Operating loss | (1,829,557) | (925,814) | (5,599,374) | (4,262,863) |
Other income/(expense) | ||||
Other income | 20,287 | 637 | 35,769 | 637 |
Interest expense | (1,908) | (1,227) | (3,817) | (2,910) |
Total other income/(expense) | 18,379 | (590) | 31,952 | (2,273) |
Loss before provision for income taxes | (1,811,178) | (926,404) | (5,567,422) | (4,265,136) |
Provision for income taxes | ||||
Net loss | (1,811,178) | (926,404) | (5,567,422) | (4,265,136) |
Preferred stock dividends | (8,501) | (8,501) | (25,504) | (25,504) |
Net loss attributable to common stockholders | $ (1,819,679) | $ (934,905) | $ (5,592,926) | $ (4,290,640) |
Net loss attributable to common stockholders per common share - basic and diluted (in Dollars per share) | $ (0.01) | $ 0 | $ (0.03) | $ (0.02) |
Weighted average number of common shares outstanding (in Shares) | 211,133,165 | 207,794,526 | 211,046,786 | 207,726,711 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Net loss attributable to common stockholders per common share - diluted | $ (0.01) | $ 0 | $ (0.03) | $ (0.02) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) - USD ($) | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Balance at Dec. 31, 2021 | $ 14 | $ 207,562 | $ 100,452,862 | $ (97,692,217) | $ 2,968,221 |
Balance (in Shares) at Dec. 31, 2021 | 13,602 | 207,562,461 | |||
Stock-based compensation | 554,877 | 554,877 | |||
RSU restricted Stock | $ 130 | (130) | |||
RSU restricted Stock (in Shares) | 130,417 | ||||
Net loss | (1,781,190) | (1,781,190) | |||
Balance at Mar. 31, 2022 | $ 14 | $ 207,692 | 101,007,609 | (99,473,407) | 1,741,908 |
Balance (in Shares) at Mar. 31, 2022 | 13,602 | 207,692,878 | |||
Balance at Dec. 31, 2021 | $ 14 | $ 207,562 | 100,452,862 | (97,692,217) | $ 2,968,221 |
Balance (in Shares) at Dec. 31, 2021 | 13,602 | 207,562,461 | |||
Common stock issued on exercise of option (in Shares) | 100,000 | ||||
Net loss | $ (4,265,136) | ||||
Balance at Sep. 30, 2022 | $ 14 | $ 207,817 | 101,728,483 | (101,957,353) | (21,039) |
Balance (in Shares) at Sep. 30, 2022 | 13,602 | 207,817,878 | |||
Balance at Mar. 31, 2022 | $ 14 | $ 207,692 | 101,007,609 | (99,473,407) | 1,741,908 |
Balance (in Shares) at Mar. 31, 2022 | 13,602 | 207,692,878 | |||
Stock-based compensation | 449,508 | 449,508 | |||
Common stock issued on exercise of option | $ 100 | 12,900 | 13,000 | ||
Common stock issued on exercise of option (in Shares) | 100,000 | ||||
Net loss | (1,557,542) | (1,557,542) | |||
Balance at Jun. 30, 2022 | $ 14 | $ 207,792 | 101,470,017 | (101,030,949) | 646,874 |
Balance (in Shares) at Jun. 30, 2022 | 13,602 | 207,792,878 | |||
Stock-based compensation | 257,241 | 257,241 | |||
Common stock issued on cashless exercise of options and warrant | $ 25 | 1,225 | 1,250 | ||
Common stock issued on cashless exercise of options and warrant (in Shares) | 25,000 | ||||
Net loss | (926,404) | (926,404) | |||
Balance at Sep. 30, 2022 | $ 14 | $ 207,817 | 101,728,483 | (101,957,353) | (21,039) |
Balance (in Shares) at Sep. 30, 2022 | 13,602 | 207,817,878 | |||
Balance at Dec. 31, 2022 | $ 14 | $ 210,843 | 108,830,989 | (103,463,863) | 5,577,983 |
Balance (in Shares) at Dec. 31, 2022 | 13,602 | 210,848,671 | |||
Stock-based compensation | 758,187 | 758,187 | |||
RSU restricted Stock | $ 10 | 21,075 | 21,085 | ||
RSU restricted Stock (in Shares) | 9,584 | ||||
Common stock issued on exercise of option | $ 175 | 16,575 | 16,750 | ||
Common stock issued on exercise of option (in Shares) | 175,000 | ||||
Net loss | (1,938,020) | (1,938,020) | |||
Balance at Mar. 31, 2023 | $ 14 | $ 211,028 | 109,626,826 | (105,401,883) | 4,435,985 |
Balance (in Shares) at Mar. 31, 2023 | 13,602 | 211,033,255 | |||
Balance at Dec. 31, 2022 | $ 14 | $ 210,843 | 108,830,989 | (103,463,863) | $ 5,577,983 |
Balance (in Shares) at Dec. 31, 2022 | 13,602 | 210,848,671 | |||
RSU restricted Stock (in Shares) | 100,000 | ||||
Common stock issued on exercise of option (in Shares) | 75,000 | ||||
Net loss | $ (5,567,422) | ||||
Balance at Sep. 30, 2023 | $ 14 | $ 211,141 | 111,241,064 | (109,031,285) | 2,420,934 |
Balance (in Shares) at Sep. 30, 2023 | 13,602 | 211,146,688 | |||
Balance at Mar. 31, 2023 | $ 14 | $ 211,028 | 109,626,826 | (105,401,883) | 4,435,985 |
Balance (in Shares) at Mar. 31, 2023 | 13,602 | 211,033,255 | |||
Stock-based compensation | 845,678 | 845,678 | |||
Net loss | (1,818,224) | (1,818,224) | |||
Balance at Jun. 30, 2023 | $ 14 | $ 211,028 | 110,472,504 | (107,220,107) | 3,463,439 |
Balance (in Shares) at Jun. 30, 2023 | 13,602 | 211,033,255 | |||
Stock-based compensation | 903,343 | 903,343 | |||
Common stock withheld to cover income tax withholding obligations | $ (57) | (136,614) | (136,671) | ||
Common stock withheld to cover income tax withholding obligations (in Shares) | (56,567) | ||||
RSU restricted Stock | $ 150 | (150) | |||
RSU restricted Stock (in Shares) | 150,000 | ||||
Common stock issued on exercise of option | $ 20 | 1,981 | 2,000 | ||
Common stock issued on exercise of option (in Shares) | 20,000 | ||||
Net loss | (1,811,178) | (1,811,178) | |||
Balance at Sep. 30, 2023 | $ 14 | $ 211,141 | $ 111,241,064 | $ (109,031,285) | $ 2,420,934 |
Balance (in Shares) at Sep. 30, 2023 | 13,602 | 211,146,688 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash Flows from Operating Activities | ||
Net loss | $ (5,567,422) | $ (4,265,136) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Noncash stock-based compensation expense | 2,528,293 | 1,261,626 |
Amortization of ROU assets | 97,245 | 83,965 |
Loss on disposal of asset | 14,540 | |
Depreciation and amortization | 90,564 | 50,499 |
Amortization of future compensation payable | 416,666 | |
Amortization of prepaid assets | 153,366 | 162,760 |
Changes in assets and liabilities: | ||
Accounts receivable | (50,902) | (219,618) |
Prepaid and deposits | (254,479) | (237,097) |
ROU liabilities | (77,286) | (53,959) |
Deferred revenue | 366,006 | |
Accounts payable | 115,130 | 53,863 |
Accrued expenses and compensation | 21,869 | (11,063) |
Net cash used in operating activities | (2,577,616) | (2,742,954) |
Cash Flows from Investing Activities | ||
Purchase of equipment | (177,904) | (78,996) |
Net cash used in investing activities | (177,904) | (78,996) |
Cash Flows from Financing Activities | ||
Repayment on note payable | (503,694) | (460,002) |
Proceeds from note payable | 155,541 | 175,435 |
Tax withholdings related to net share settlement of RSU’s | (136,671) | |
Proceeds from subscription payable | 585,000 | |
Proceeds from the exercise of stock option | 18,750 | 14,250 |
Net cash (used in) provided by financing activities | (466,074) | 314,683 |
Net change in cash and cash equivalents | (3,221,594) | (2,507,267) |
Cash and cash equivalents, beginning of period | 5,640,308 | 3,662,615 |
Cash and cash equivalents, end of period | 2,418,714 | 1,155,348 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | 3,817 | 1,683 |
Cash paid for taxes | ||
Non-cash investing and financing activities | ||
Insurance financing for prepaid insurance | 155,541 | 175,435 |
Implementation of ASC 842 | $ 766,281 |
Organization of Business, Going
Organization of Business, Going Concern and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Organization of Business, Going Concern and Summary of Significant Accounting Policies [Abstrac] | |
ORGANIZATION OF BUSINESS, GOING CONCERN AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 – ORGANIZATION OF BUSINESS, GOING CONCERN AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The unaudited condensed consolidated financial statements include the accounts of Applied Energetics, Inc. and its wholly owned subsidiary North Star Power Engineering, Inc. (“North Star”) (collectively, “company,” “Applied Energetics,” “we,” “our” or “us”). All intercompany balances and transactions have been eliminated. The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information, the instructions for Form 10-Q and the rules and regulations of the SEC. Accordingly, since they are interim statements, the accompanying unaudited condensed consolidated financial statements do not include all of the information and notes required by GAAP for annual financial statements but reflect all adjustments consisting of normal, recurring adjustments, that are necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. Interim results are not necessarily indicative of the results that may be expected for any future periods. The December 31, 2022, balance sheet information was derived from the audited financial statements as of that date. The interim unaudited condensed consolidated financial statements should be read in conjunction with the company’s audited consolidated financial statements contained in our Annual Report on Form 10-K. Going Concern The accompanying unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. For the nine months ended September 30, 2023, the company incurred a net loss of $5,567,422, had negative cash flows from operations of $2,577,616 and may incur additional future losses due to limited contract activity. At September 30, 2023, the company had total current assets of $3,016,652 and total current liabilities of $953,001, resulting in working capital surplus of $2,063,651. At September 30, 2023, the company had cash of $2,418,714. Based on the company’s current business plan, it believes its cash balance as of the date of this filing, together with anticipated revenues from a government grant and contracts, will be sufficient to meet its anticipated cash requirements for the near term. However, the current business plan may prove unachievable. Such conditions raise substantial doubts about the company’s ability to continue as a going concern for one year from the date the financial statements are issued. The company’s existence depends upon management’s ability to develop profitable operations. Management is devoting substantially all of its efforts to developing its business and raising capital which may not result in profitable operations or enable it to overcome future liquidity concerns. The accompanying consolidated financial statements do not include any adjustments relating to the recoverability of assets, the amount or classification of liabilities or otherwise that might be necessary should the company be unable to continue as a going concern. Trade conditions, such as exacerbated supplier shutdowns and delays, contribute to this uncertainty. Additionally, Russia’s military action in Ukraine, war in the Middle East, and related economic sanctions around the globe, could impact the company’s ability to source necessary supplies and equipment which could materially and adversely affect its ability to continue as a going concern. In addition, the company’s ability to continue as a going concern may depend on its ability to raise capital, which may be impacted by these events, including as a result of increased market volatility, or decreased market liquidity. This may result in third-party financing being unavailable on terms acceptable to the company or at all. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. To further improve its liquidity position, the company’s management continues to explore additional equity financing through discussions with investment bankers and private investors. The company may be unsuccessful in its effort to secure additional equity financing. The financial statements do not include any adjustments relating to the recoverability of assets and the amount or classification of liabilities that might be necessary should the company be unable to continue as a going concern. Applied Energetics, Inc. is a corporation organized and existing under the laws of the State of Delaware. Our headquarters are located at 9070 S. Rita Road Suite 1500, Tucson, Arizona, 85747, including office and laboratory space, and our telephone number is (520) 628-7415. Use of Estimates The preparation of unaudited condensed financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates, judgments and assumptions that affect the amounts reported in the financial statements and accompanying notes. Management bases its assumptions on historical experiences and on various other assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. In addition, management considers the basis and methodology used in developing and selecting these estimates, the trends in and amounts of these estimates, specific matters affecting the amount of and changes in these estimates, and any other matters related to these estimates, including significant issues concerning accounting principles and financial statement presentation. Such estimates and assumptions could change in the future as more information becomes known which could impact the amounts reported and disclosed herein. Significant estimates include revenue recognition, carrying amounts of long-lived assets, valuation assumptions for share-based payments, evaluation of debt modification accounting, effective borrowing rate determinations, analysis of fair value transferred upon debt extinguishment, valuation and calculation of measurements of income tax assets and liabilities. Net Loss Attributable to Common Stockholders Basic loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding for the period before giving effect to stock options, stock warrants, restricted stock units and convertible securities outstanding, which are considered to be dilutive common stock equivalents. Diluted net loss per common share is calculated based on the weighted average number of common and potentially dilutive shares outstanding during the period after giving effect to dilutive common stock equivalents. Contingently issuable shares are included in the computation of basic loss per share when issuance of the shares is no longer contingent. The number of shares underlying warrants, options, restricted stock units and our Series A Convertible Preferred Stock, which were not included in the computation of earnings per share because the effect was antidilutive, was 31,623,768 and 24,424,550 as of September 30, 2023 and 2022, respectively. Significant Concentrations and Risks The company maintains cash balances at one or more financial institutions, and, at times, balances exceed FDIC limits. As of September 30, 2023, $1,914,439 was uninsured. |
New Accounting Standards
New Accounting Standards | 9 Months Ended |
Sep. 30, 2023 | |
New Accounting Standards [Abstract] | |
NEW ACCOUNTING STANDARDS | NOTE 2 – NEW ACCOUNTING STANDARDS The company has reviewed all issued accounting pronouncements. The company does not expect the adoption of any pronouncements to have an impact on its results of operations or financial position. |
Notes Payable
Notes Payable | 9 Months Ended |
Sep. 30, 2023 | |
Notes Payable [Abstract] | |
NOTES PAYABLE | NOTE 3 – NOTES PAYABLE On May 24, 2019, the company entered into an Asset Purchase Agreement (the “APA”) with Applied Optical Sciences, LLC (“AOS”) to acquire certain assets. As consideration for the APA, the company entered into a promissory note issued to the shareholders of AOS for $2,500,000. The note was non-interest bearing and payable in equal installments. The company made the first three payments of $500,000 on February 10, 2021, May 24, 2021, and November 19, 2021, respectively. The Promissory Note was amended on May 23, 2022, as modification of debt, to extend the maturity date by one year to May 24, 2023 and restructure the payment to time up to the adjusted maturity date. The remaining balance of $1,000,000 as of June 30, 2022 was to be paid in ten equal installments of $100,000 over a period of ten months with the final installment to be paid on April 24, 2023. In accordance with the amended terms of the promissory note, the company made six payments of $100,000 each, for an aggregate repayment of $600,000. As of September 30, 2023, the company had repaid the note in full. $0 in principle was outstanding on this loan. Premium Financing On March 16, 2023, the company entered into an agreement with Oakwood D&O Insurance to provide financing in the amount of $155,541 for the insurance premium associated with two D&O policies. Both policies commenced March 12, 2023, and provided coverage for the next 12 months, expiring March 12, 2024. The loan bears interest at a fixed rate of 8.75% per annum, required the company to prepay $40,410 and appears on the balance sheet as a current asset. On April 12, 2023, the company commenced monthly principal and interest payments of $17,282, which was the first payment of nine remaining months due of $155,541, the last payment of which is scheduled to be made on December 31, 2023. As of September 30, 2023, the outstanding balance on the note was $51,847 and was recorded as notes payable, a currently liability, in the company’s unaudited condensed consolidated balance sheet. Notes Payable Reconciliation The following reconciles notes payable as of September 30, 2023, and December 31, 2022: September 30, December 31, Beginning balance $ 400,000 $ 1,024,190 Notes payable 155,541 175,435 Accrued interest - (636 ) Payments on notes payable (503,694 ) (798,988 ) Total 51,847 400,000 Less-Notes payable – current 51,847 400,000 Notes payable – non-current $ - $ - Future principal payments for the company’s notes as of September 30, 2023, are as follows: 2023 $ 51,847 Thereafter - Total $ 51,847 The company’s note payable balance of $51,847 is due within the next twelve months, in accordance with the terms of note payable. |
Deferred Compensation
Deferred Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Deferred Compensation [Abstract] | |
DEFERRED COMPENSATION | NOTE 4 – DEFERRED COMPENSATION On May 24, 2019, the company entered into the APA with AOS to acquire certain assets. As consideration for the APA, the company entered into a promissory note issued to the shareholders of AOS for $2,500,000. The company also recorded a debt discount, which is reported on the balance sheet as deferred compensation, in the amount of $2,500,000, in relation to the transaction which is being amortized over the life of the loan as compensation expense. The amortization of deferred compensation for the nine months ended September 30, 2023, and 2022 was $0 and $416,666, respectively. |
Due to Related Parties
Due to Related Parties | 9 Months Ended |
Sep. 30, 2023 | |
Due to Related Parties [Abstract] | |
DUE TO RELATED PARTIES | NOTE 5 – DUE TO RELATED PARTIES On July 31, 2018, the company’s now deceased CEO deposited $50,000 into the company’s account. Although it has been suggested that the funds may have been intended for use toward this CEO’s healthcare, the company does not know for certain what the purpose of the funds were or the nature of any intended investment. Accordingly, the company is investigating the appropriate disposition of the funds which will likely be to the estate of the former CEO. Until such a determination is made, the company does not intend to use these funds for any corporate purpose. For reporting purposes, the company has treated the deposit as a due to related party. |
Stockholders_ Equity
Stockholders’ Equity | 9 Months Ended |
Sep. 30, 2023 | |
Stockholders’ Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | NOTE 6 – STOCKHOLDERS’ EQUITY Authorized Capital Stock During the nine months ended September 30, 2022, the company issued 130,417 shares of common stock for previously vested and expensed shares in relation to a restricted stock agreement. For the nine months ended September 30, 2022, the company recorded $0 in relation to these shares. During the nine months ended September 30, 2022, the company issued 100,000 shares of common stock upon the exercise of 100,000 options at an exercise price of $0.13 a share. As a result, the company received $13,000 in cash proceeds.as part of the transaction. During the nine months ended September 30, 2022, the company issued 25,000 shares of common stock upon the exercise of two warrants of 12,500 shares each, or 25,000 shares of common stock in the aggregate, at an exercise price of $0.05 a share. The company received $1,250 in cash proceeds as part of the transaction. Effective August 1, 2022, the company entered into an Executive Employment Agreement with its Chief Financial and Operating Officer. As part of this agreement, the company granted 1,000,000 options to purchase shares of common stock at an exercise price of $2.36 per share. The options vest over a period of four years and expire ten years from the date of the grant. Under the agreement, this officer also received restricted stock units covering 400,000 shares (see “Share-Based Payments” below). The officer forfeited unvested options to purchase 950,000 shares of common stock which he had previously received for his service on the company’s Board of Advisors. The forfeiture of the unvested options resulted in the reversal of the previously recorded stock-based compensation expense in the amount of approximately $176,000. As of nine months ended, September 30, 2022, the company recognized a subscription payable for $585,000 from the sale of common stock as a current liability on its balance sheet, reflecting the receipt of $585,000 in cash proceeds as part of a pending private equity placement transaction. During the nine months ended September 30, 2023, the company issued the remaining 9,584 shares of common stock with a grant date fair value of $21,085, pursuant to a restricted stock agreement dated May 2021. During the nine months ended September 30, 2023, the company issued 100,000 shares of common stock upon the exercise of 100,000 options at an exercise price of $0.07 a share. As a result, the company received $7,000 in cash proceeds as part of the transaction. During the nine months ended September 30, 2023, the company issued 75,000 shares of common stock upon the exercise of 75,000 options at an exercise price of $0.13 a share. As a result, the company received $9,750 in cash proceeds as part of the transaction. During the nine months ended September 30, 2023, the company issued 10,000 shares of common stock upon the exercise of 10,000 options at an exercise price of $0.13 a share. As a result, the company received $1,300 in cash proceeds as part of the transaction. During the nine months ended September 30, 2023, the company issued 10,000 shares of common stock upon the exercise of 10,000 options at an exercise price of $0.07 a share. As a result, the company received $700 in cash proceeds as part of the transaction. During the nine months ended September 30, 2023, the restricted stock units covering 150,000 shares of the company’s common stock vested. The company withheld 56,567 of these shares of common stock from the holders pursuant to their restricted stock unit agreements to cover its tax withholding obligation of $136,671. Preferred Stock As of September 30, 2023, and December 31, 2022, there were 13,602 shares of Series A Redeemable Convertible Preferred Stock (the “Series A Preferred Stock”) issued and outstanding, respectively. The company has not paid the dividends commencing with the quarterly dividend due August 1, 2013. Dividend arrearages as of September 30, 2023, including previously accrued dividends of $48,079 included in our balance sheet total approximately $348,929. Our Board of Directors suspended the declaration of the dividend, commencing with the dividend payable as of February 1, 2015, since we did not have a surplus (as such term is defined in the Delaware general corporation Law) as of December 31, 2014, until such time as we have a surplus or net profits for a fiscal year. Our Series A Preferred Stock has a liquidation preference of $25.00 per Share. The Series A Preferred Stock bears dividends at the rate of 6.5% of the liquidation preference per share per annum, which accrues from the date of issuance, and is payable quarterly. Dividends may be paid in: (i) cash, (ii) shares of our common stock (valued for such purpose at 95% of the weighted average of the last sales prices of our common stock for each of the trading days in the ten trading day period ending on the third trading day prior to the applicable dividend payment date), provided that the issuance and/or resale of all such shares of our common stock are then covered by an effective registration statement and the company’s common stock is listed on a U.S. national securities exchange or the Nasdaq Stock Market at the time of issuance or (iii) any combination of the foregoing. If the company fails to make a dividend payment within five business days following a dividend payment date, the dividend rate shall immediately and automatically increase by 1% from 6.5% of the liquidation preference per offered share of Series A preferred stock to 7.5% of such liquidation preference. If a payment default shall occur on two consecutive dividend payment dates, the dividend rate shall immediately and automatically increase to 10% of the liquidation preference for as long as such payment default continues and shall immediately and automatically return to the Initial dividend rate at such time as the payment default is no longer continuing. Each share of Series A Preferred Stock is convertible at any time at the option of the holder into a number of shares of common stock equal to the liquidation preference (plus any unpaid dividends for periods prior to the dividend payment date immediately preceding the date of conversion by the holder) divided by the conversion price (initially $12.00 per share, subject to adjustment in the event of a stock dividend or split, reorganization, recapitalization or similar event). If the closing sale price of the common stock is greater than 140% of the conversion price on 20 out of 30 trading days, the company may redeem the Series A Preferred Stock in whole or in part at any time through October 31, 2010, upon at least 30 days’ notice, at a redemption price, payable in cash, equal to 100% of the liquidation preference of the shares to be redeemed, plus unpaid dividends thereon to, but excluding, the redemption date, subject to certain conditions. In addition, beginning November 1, 2010, the company may redeem the Series A Preferred Stock in whole or in part, upon at least 30 days’ notice, at a redemption price, payable in cash, equal to 100% of the liquidation preference of the Series A Preferred Stock to be redeemed, plus unpaid dividends thereon to, but excluding, the redemption date, under certain conditions. If a change of control occurs, each holder of shares of Series A Convertible Preferred Stock that are outstanding immediately prior to the change of control shall have the right to require the corporation to purchase, out of legally available funds, any outstanding shares of Series A Convertible Preferred Stock at the defined purchase price. The purchase price is defined as: per share of Preferred Stock, 101% of the liquidation preference thereof, plus all unpaid and accumulated dividends, if any, to the date of purchase thereof. The purchase price is payable, at the corporation’s option, (x) in cash, (y) in shares of the common stock at a discount of 5% from the fair market value of Common Stock on the Purchase Date (i.e. valued at a 95% discount of the Common Stock on the Purchase Date), or (z) any combination thereof. If the company pays all or a portion of the Purchase Price in Common Stock, no fractional shares of Common Stock will be issued; instead, the company will round the applicable number of shares of Common Stock up to the nearest whole number of shares; provided that the company may pay the Purchase Price (or a portion thereof), whether in cash or in shares of Common Stock, only if the company has funds legally available for such payment and may pay the Purchase Price (or a portion thereof) in shares of its Common Stock only if (i) the Common Stock is listed on a U.S. national securities exchange or the Nasdaq Stock Market at the time of issuance and (ii) a shelf registration statement covering the issuance by the Corporation and/or resales of the Common Stock issuable as payment of the Purchase Price is effective on the Payment Date unless such shares are eligible for immediate resale in the public market by non-affiliates of the company. Share-Based Payments Effective November 12, 2018, the Board of Directors of Applied Energetics, Inc. adopted the 2018 Incentive Stock Plan. The plan provides for the allocation and issuance of stock, restricted stock purchase offers and options (both incentive stock options and non-qualified stock options) to officers, directors, employees and consultants of the company. The board reserved a total of 50,000,000 shares for possible issuance under the plan. We have, from time to time, also granted non-plan options to certain officers, directors, employees and consultants. Total stock-based compensation expense for grants to officers, employees and consultants was $2,528,293 and $1,261,626 for the nine months ended September 30, 2023, and 2022, respectively, which was charged to general and administrative expense. During the nine months ended September 30, 2023, the company issued restricted stock units covering 940,909 shares for services rendered pursuant to an amendment to a master services agreement with a consultant. During the nine months ended September 30, 2023, the company issued incentive stock options to purchase up to 312,500 shares of common stock, at an exercise price of $2.05, to one employee. During the nine months ended September 30, 2023, the company issued incentive stock options to purchase up to 50,000 shares of common stock, at an exercise price of $2.20, to two employees. During the nine months ended September 30, 2023, the company issued incentive stock options to purchase up to 100,000 shares of common stock, at an exercise price of $2.25, to one new employee. In addition, the company issued restricted stock units covering 35,000 shares for services rendered pursuant to an employment agreement. During the nine months ended September 30, 2023, the company issued a non-qualified stock options to purchase up to 100,000 shares of common stock, at an exercise price of $2.51, to one consultant. In addition, the company issued incentive stock options to purchase up to 100,000 shares of common stock, at an exercise price of $2.35, to one new employee. During the nine months ended September 30, 2023, the company issued incentive stock options to purchase up to 150,000 shares of common stock, at an exercise price of $2.41, to one employee. During the nine months ended September 30, 2023, the company issued incentive stock options to purchase up to 2,800,000 shares of common stock, at an exercise price of $2.35, to eleven employees. During the nine months ended September 30, 2023, the company issued restricted stock units covering 100,000 shares for services rendered pursuant to an employment agreement. See Note 6 – Stockholders’ Equity – Authorized Capital Stock for details related to the exercise of an aggregate of 195,000 options during the nine months ended September 30, 2023. The $2,528,293 stock-based compensation for the nine months ended September 30, 2023, was comprised of $1,182,972 option expense, $1,324,236 expense from the vesting of the restricted stock and $21,085 expense related to shares of common stock for services rendered pursuant to a board of advisor’s agreement. The company recognized no related income tax benefit because our deferred tax assets are fully offset by a valuation allowance. As of September 30, 2023, the company has $9,445,984 of unrecognized compensation cost related to unvested stock options granted and outstanding, net of estimated forfeitures. The cost is expected to be recognized on a weighted average basis over a period of approximately six years. The following table summarizes the activity of our stock options for the nine months ended September 30, 2023: Shares Weighted Weighted Intrinsic Outstanding at December 31, 2022 22,848,385 $ 0.37 6.42 $ 203,236,473 Granted 3,662,500 2.32 9.83 27,94,546 Exercised (195,000 ) 0.09 5.11 (1,898,382 ) Forfeited or expired (30,451 ) - - (299,377 ) Outstanding at September 30, 2023 26,285,434 0.64 9.78 241,614,370 Outstanding and exercisable at September 30, 2023 21,004,321 0.24 7.83 201,553,841 We determine the fair value of option grant share-based awards at their grant date, using a Black-Scholes- Merton Option-Pricing Model applying the assumptions in the following table: Nine Months Ended 2023 2022 Assumptions: Risk-free interest rate 1.26 – 4.24 % 1.26 –1.30 % Expected dividend yield 0 % 0 % Expected volatility 109.48 – 130.00 % 126 % Expected life (in years) 6 5 The fair value of restricted stock and restricted stock units was estimated using the closing price of our common stock on the date of award and fully recognized upon vesting. Restricted stock activity for the nine months ended September 30, 2023, was as follows: Restricted Stock Outstanding Shares Weighted Nonvested at December 31, 2022 2,819,545 $ 1.93 Granted – restricted stock units and awards 1,075,909 1.86 Granted – performance-based stock units - - Canceled (50,000 ) - Vested (365,000 ) 0.30 Nonvested at September 30, 2023 3,480,454 $ 2.12 As of September 30, 2023, and December 31, 2022, there was $5,648,651 and $5,071,427, respectively, in unrecognized stock-based compensation related to unvested restricted stock agreements, net of estimated forfeitures. As of September 30, 2023 and December 31, 2022, the company recorded $0 and $223,000, respectively, in unrecognized stock-based compensation related to a lockup agreement on 5,000,000 shares of common stock in the acquisition of assets of AOS valued at $0.4014 per share, representing the closing price on the date of the contract which is amortized over 36 months, of which, $0 and $223,000 was amortized for the nine months ended September 30, 2023 and 2022, respectively. Warrant stock activity for the nine months ended September 30, 2023, was as follows: Warrant Activity Shares Weighted Weighted Outstanding at December 31, 2022 1,750,000 $ 0.0600 6.53 Granted - - - Exercised - - - Forfeited - - - Outstanding and exercisable at September 30, 2023 1,750,000 $ 0.0600 5.78 Warrants Outstanding Warrants Exercisable Range of Exercise Prices Shares Weighted Weighted Shares Weighted $0.05 – $0.07 1,750,000 5.78 $ 0.0600 1,750,000 $ 0.0600 1,750,000 5.78 $ 0.0600 1,750,000 $ 0.0600 |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2023 | |
Revenue Recognition [Abstract] | |
REVENUE RECOGNITION | NOTE 7 – REVENUE RECOGNITION The company derives revenue from technical research detailing the findings of its investigations to its customers under contract for specific projects. Under Topic 606, revenue is recognized when control of promised goods and services is transferred to customers, and the amount of revenue recognized reflects the consideration to which an entity expects to be entitled in exchange for the goods and services transferred. A performance obligation is a contractual promise to transfer a distinct good or service to the customer and is the unit of account under Topic 606. The transaction price of a contract is allocated to distinct performance obligations and recognized as revenue when or as the performance obligations are satisfied. The company’s contracts require significant integrated services and are accounted for as a single performance obligation, and the company recognizes revenue over the contract term at a fixed contract price. September 30, December 31, Accounts receivable $ 162,226 $ 353,149 Unbilled receivable 241,825 - Total $ 404,051 $ 353,149 Concentrations During the three and nine months ended September 30, 2023, the company earned revenue from two contracts with two separate customers. One customer accounted for $1,539,636 or 88% of revenue recognized during the nine-month period. As of September 30, 2023, the company has $404,051 or 100% of accounts receivable recorded as current assets on the balance sheet related to this customer. During the three and nine months ended September 30, 2022, the company earned revenue from two separate customers. One customer accounted for $648,905 or 85% of revenue recognized during the period. As of September 30, 2022, the company has $219,618 of accounts receivable recorded as current assets on the balance sheet related to this customer. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 8 – COMMITMENTS AND CONTINGENCIES Operating Leases In March 2021, the company signed a five-year lease for a 13,000 square foot laboratory/office space in Tucson. The initial base rent was $6.7626 per rentable square foot for year one, and escalated to $9.2009 in year two, $11.4806 in year three, $13.1740 in year four and $14.9306 in year five, plus certain operating expenses and taxes. On June 7, 2023, the company entered into an amendment to extend the term of the original lease from April 26, 2026 to July 31, 2028. Included in the lease amendment is extension space commencing on August 1, 2023. As of August 1, 2023 the Company has secured additional square footage in the amount of 9,805 square feet. The initial base rent for the expansion space was $9.10 per rentable square foot for year one, and escalated to $10.20 in year two, $11.30 in year three, $12.40 in year four and $13.50 in year five, plus certain operating expenses and taxes. The company incurred lease expenses for its operating leases of $121,316 which was included in general and administrative expenses in the statements of operation as of September 30, 2023. During the nine months ended September 30, 2023, the company made cash lease payments in the amount of $119,825. At September 30, 2023, we had approximately $60,677 in future minimum lease payments due in less than a year. The below table presents the future minimum lease payments due reconciled to lease liabilities. Operating For the nine months ended September 30, 2023 2023 $ 60,677 2024 262,296 2025 296,284 2026 324,427 2027 343,545 Thereafter 205,111 Total undiscounted lease payments 1,492,341 Present value discount, less interest 296,161 Lease Liability $ 1,196,180 Guarantees The company agrees to indemnify its officers and directors for certain events or occurrences arising as a result of the officers or directors serving in such capacity. The maximum amount of future payments that the company could be required to make under these indemnification agreements is unlimited. However, the company maintains a director’s and officer’s liability insurance policy that limits its exposure and enables it to recover a portion of any future amounts paid. As a result, it believes the estimated fair value of these indemnification agreements is minimal because of its insurance coverage, and it has not recognized any liabilities for these agreements as of September 30, 2023 and 2022. Litigation On January 15, 2021, the company filed a complaint in the United States District Court, Southern District of New York, against Gusrae, Kaplan & Nusbaum and Ryan Whalen for malpractice and breach of New York Rules of Professional Conduct by both parties as former counsel to the company. On May 28, 2021, Gusrae, Kaplan & Nusbaum and Mr. Whalen filed a motion to dismiss the complaint. On June 25, 2021, the company filed an opposition to the motion. On July 13, 2021, Gusrae Kaplan & Nusbaum and Mr. Whalen filed their reply brief. On March 30, 2022, United States Magistrate Judge Debra Freeman signed an order denying the motion of GKN and Mr. Whalen to dismiss the company’s claim for malpractice and for rescission of the shares-for-fees agreement under which GKN and Whalen received shares of the company’s common stock. The motion was partially granted as to the separate claim for violation of NYRPC 1.7 and 1.8 because the court found that it was duplicative of the malpractice claim. The parties are currently engaged in discovery. No trial date has been set. On July 26, 2023, the company filed a complaint in the Superior Court of the State of Delaware against Gusrae Kaplan Nusbaum PLLC and Ryan Whalen, for malicious prosecution of a federal securities fraud lawsuit which was filed by these defendants against the company and certain of its directors, attorneys and their law firms and an outside consultant, in July 2019 in the United States District Court for the Southern District of New York. The complaint filed by the company alleges that the claims by these defendants against it were frivolous and prosecuted for the improper purpose of hindering the company’s prosecution of a then pending case against George Farley, the company’s former CEO, which was later settled. The complaint further alleges that the defendants prosecuted their claim with malice causing the company damages valued in excess of $40 million. On September 11, 2023, Gusrae, Kaplan & Nusbaum and Mr. Whalen filed a motion to dismiss the complaint. On October 25, 2023, the company filed an opposition to the motion. No hearing date has been set for the motion. As with any litigation, the company cannot predict the outcome with certainty, but the company expects to provide further updates on the status of the litigation as circumstances warrant. We may, from time to time, be involved in legal proceedings arising from the normal course of business. Related Party In January 2023, the company made a $25,000 tax-deductible donation to Silicon Valley Defense Group (SVDG), a 501(c)(3) organization of which Christopher Donaghey, our Chief Financial and Operating Officer, is a founder and member of the Board of Directors. As its objective, SVDG “seeks to align and connect the people, capital, and ideas that will ensure allied democracies retain a durable techno-security advantage.” Employment Agreement Effective May 1, 2023, the board of directors of the company appointed Stephen W. McCahon, age 63, to serve as Chief Science Officer. The company and Dr. McCahon entered into an Executive Employment Agreement, pursuant to which he is to serve for an initial term through December 2025, with automatic renewal for additional one-year periods thereafter unless either party terminates the agreement. The agreement calls for a salary of $300,000 annualized for 2023, $325,000 for 2024 and $350,000 for 2025, plus standard benefits. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 9 – SUBSEQUENT EVENTS The company’s management has evaluated subsequent events occurring after September 30, 2023, the date of our most recent balance sheet, through the date our financial statements were issued. Subsequent to the nine months ended September 30, 2023, the company issued an aggregate of 30,000 shares of common stock upon the exercise of 10,000 options at an exercise price of $0.07 a share and 20,000 options at an exercise price of $0.35 a share. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited condensed consolidated financial statements include the accounts of Applied Energetics, Inc. and its wholly owned subsidiary North Star Power Engineering, Inc. (“North Star”) (collectively, “company,” “Applied Energetics,” “we,” “our” or “us”). All intercompany balances and transactions have been eliminated. The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information, the instructions for Form 10-Q and the rules and regulations of the SEC. Accordingly, since they are interim statements, the accompanying unaudited condensed consolidated financial statements do not include all of the information and notes required by GAAP for annual financial statements but reflect all adjustments consisting of normal, recurring adjustments, that are necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. Interim results are not necessarily indicative of the results that may be expected for any future periods. The December 31, 2022, balance sheet information was derived from the audited financial statements as of that date. The interim unaudited condensed consolidated financial statements should be read in conjunction with the company’s audited consolidated financial statements contained in our Annual Report on Form 10-K. |
Going Concern | Going Concern The accompanying unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. For the nine months ended September 30, 2023, the company incurred a net loss of $5,567,422, had negative cash flows from operations of $2,577,616 and may incur additional future losses due to limited contract activity. At September 30, 2023, the company had total current assets of $3,016,652 and total current liabilities of $953,001, resulting in working capital surplus of $2,063,651. At September 30, 2023, the company had cash of $2,418,714. Based on the company’s current business plan, it believes its cash balance as of the date of this filing, together with anticipated revenues from a government grant and contracts, will be sufficient to meet its anticipated cash requirements for the near term. However, the current business plan may prove unachievable. Such conditions raise substantial doubts about the company’s ability to continue as a going concern for one year from the date the financial statements are issued. The company’s existence depends upon management’s ability to develop profitable operations. Management is devoting substantially all of its efforts to developing its business and raising capital which may not result in profitable operations or enable it to overcome future liquidity concerns. The accompanying consolidated financial statements do not include any adjustments relating to the recoverability of assets, the amount or classification of liabilities or otherwise that might be necessary should the company be unable to continue as a going concern. Trade conditions, such as exacerbated supplier shutdowns and delays, contribute to this uncertainty. Additionally, Russia’s military action in Ukraine, war in the Middle East, and related economic sanctions around the globe, could impact the company’s ability to source necessary supplies and equipment which could materially and adversely affect its ability to continue as a going concern. In addition, the company’s ability to continue as a going concern may depend on its ability to raise capital, which may be impacted by these events, including as a result of increased market volatility, or decreased market liquidity. This may result in third-party financing being unavailable on terms acceptable to the company or at all. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. To further improve its liquidity position, the company’s management continues to explore additional equity financing through discussions with investment bankers and private investors. The company may be unsuccessful in its effort to secure additional equity financing. The financial statements do not include any adjustments relating to the recoverability of assets and the amount or classification of liabilities that might be necessary should the company be unable to continue as a going concern. Applied Energetics, Inc. is a corporation organized and existing under the laws of the State of Delaware. Our headquarters are located at 9070 S. Rita Road Suite 1500, Tucson, Arizona, 85747, including office and laboratory space, and our telephone number is (520) 628-7415. |
Use of Estimates | Use of Estimates The preparation of unaudited condensed financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates, judgments and assumptions that affect the amounts reported in the financial statements and accompanying notes. Management bases its assumptions on historical experiences and on various other assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. In addition, management considers the basis and methodology used in developing and selecting these estimates, the trends in and amounts of these estimates, specific matters affecting the amount of and changes in these estimates, and any other matters related to these estimates, including significant issues concerning accounting principles and financial statement presentation. Such estimates and assumptions could change in the future as more information becomes known which could impact the amounts reported and disclosed herein. Significant estimates include revenue recognition, carrying amounts of long-lived assets, valuation assumptions for share-based payments, evaluation of debt modification accounting, effective borrowing rate determinations, analysis of fair value transferred upon debt extinguishment, valuation and calculation of measurements of income tax assets and liabilities. |
Net Loss Attributable to Common Stockholders | Net Loss Attributable to Common Stockholders Basic loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding for the period before giving effect to stock options, stock warrants, restricted stock units and convertible securities outstanding, which are considered to be dilutive common stock equivalents. Diluted net loss per common share is calculated based on the weighted average number of common and potentially dilutive shares outstanding during the period after giving effect to dilutive common stock equivalents. Contingently issuable shares are included in the computation of basic loss per share when issuance of the shares is no longer contingent. The number of shares underlying warrants, options, restricted stock units and our Series A Convertible Preferred Stock, which were not included in the computation of earnings per share because the effect was antidilutive, was 31,623,768 and 24,424,550 as of September 30, 2023 and 2022, respectively. |
Significant Concentrations and Risks | Significant Concentrations and Risks The company maintains cash balances at one or more financial institutions, and, at times, balances exceed FDIC limits. As of September 30, 2023, $1,914,439 was uninsured. |
Notes Payable (Tables)
Notes Payable (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Payable [Abstract] | |
Schedule of Reconciles Notes Payable | The following reconciles notes payable as of September 30, 2023, and December 31, 2022: September 30, December 31, Beginning balance $ 400,000 $ 1,024,190 Notes payable 155,541 175,435 Accrued interest - (636 ) Payments on notes payable (503,694 ) (798,988 ) Total 51,847 400,000 Less-Notes payable – current 51,847 400,000 Notes payable – non-current $ - $ - |
Schedule of Future Principal Payments for the Company's Notes | Future principal payments for the company’s notes as of September 30, 2023, are as follows: 2023 $ 51,847 Thereafter - Total $ 51,847 |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Stockholders’ Equity [Abstract] | |
Schedule of Stock Option Activity | The following table summarizes the activity of our stock options for the nine months ended September 30, 2023: Shares Weighted Weighted Intrinsic Outstanding at December 31, 2022 22,848,385 $ 0.37 6.42 $ 203,236,473 Granted 3,662,500 2.32 9.83 27,94,546 Exercised (195,000 ) 0.09 5.11 (1,898,382 ) Forfeited or expired (30,451 ) - - (299,377 ) Outstanding at September 30, 2023 26,285,434 0.64 9.78 241,614,370 Outstanding and exercisable at September 30, 2023 21,004,321 0.24 7.83 201,553,841 |
Schedule of Black-Scholes- Merton Option-Pricing Model Applying the Assumptions | We determine the fair value of option grant share-based awards at their grant date, using a Black-Scholes- Merton Option-Pricing Model applying the assumptions in the following table: Nine Months Ended 2023 2022 Assumptions: Risk-free interest rate 1.26 – 4.24 % 1.26 –1.30 % Expected dividend yield 0 % 0 % Expected volatility 109.48 – 130.00 % 126 % Expected life (in years) 6 5 |
Schedule of Fair Value of Restricted Stock and Restricted Stock Units | The fair value of restricted stock and restricted stock units was estimated using the closing price of our common stock on the date of award and fully recognized upon vesting. Restricted stock activity for the nine months ended September 30, 2023, was as follows: Restricted Stock Outstanding Shares Weighted Nonvested at December 31, 2022 2,819,545 $ 1.93 Granted – restricted stock units and awards 1,075,909 1.86 Granted – performance-based stock units - - Canceled (50,000 ) - Vested (365,000 ) 0.30 Nonvested at September 30, 2023 3,480,454 $ 2.12 |
Schedule of Warrant Stock Activity | Warrant stock activity for the nine months ended September 30, 2023, was as follows: Warrant Activity Shares Weighted Weighted Outstanding at December 31, 2022 1,750,000 $ 0.0600 6.53 Granted - - - Exercised - - - Forfeited - - - Outstanding and exercisable at September 30, 2023 1,750,000 $ 0.0600 5.78 |
Schedule of Range Exercise Prices Warrants Outstanding and Exercisable | Warrants Outstanding Warrants Exercisable Range of Exercise Prices Shares Weighted Weighted Shares Weighted $0.05 – $0.07 1,750,000 5.78 $ 0.0600 1,750,000 $ 0.0600 1,750,000 5.78 $ 0.0600 1,750,000 $ 0.0600 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue Recognition [Abstract] | |
Schedule of Receivables, Net | September 30, December 31, Accounts receivable $ 162,226 $ 353,149 Unbilled receivable 241,825 - Total $ 404,051 $ 353,149 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies [Abstract] | |
Schedule of Future Minimum Lease Payments | At September 30, 2023, we had approximately $60,677 in future minimum lease payments due in less than a year. The below table presents the future minimum lease payments due reconciled to lease liabilities. Operating For the nine months ended September 30, 2023 2023 $ 60,677 2024 262,296 2025 296,284 2026 324,427 2027 343,545 Thereafter 205,111 Total undiscounted lease payments 1,492,341 Present value discount, less interest 296,161 Lease Liability $ 1,196,180 |
Organization of Business, Goi_2
Organization of Business, Going Concern and Summary of Significant Accounting Policies (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Organization of Business, Going Concern and Summary of Significant Accounting Policies [Line Items] | |||
Cash flows from operation | $ (2,577,616) | $ (2,742,954) | |
Current assets | 3,016,652 | $ 6,086,231 | |
Current liabilities | $ 953,001 | $ 756,535 | |
Earning per share antidilutive (in Shares) | 31,623,768 | 24,424,550 | |
Cash uninsured | $ 1,914,439 | ||
Going Concern [Member] | |||
Organization of Business, Going Concern and Summary of Significant Accounting Policies [Line Items] | |||
Incurred a net loss | 5,567,422 | ||
Cash flows from operation | 2,577,616 | ||
Current assets | 3,016,652 | ||
Working capital | 2,063,651 | ||
Cash | $ 2,418,714 |
Notes Payable (Details)
Notes Payable (Details) - USD ($) | 9 Months Ended | ||||||||||
Mar. 16, 2023 | Apr. 24, 2022 | May 24, 2019 | Sep. 30, 2023 | Dec. 31, 2023 | Jun. 22, 2023 | Apr. 12, 2023 | Dec. 31, 2022 | Nov. 19, 2021 | May 24, 2021 | Feb. 10, 2021 | |
Debt Instrument [Line Items] | |||||||||||
Payments | $ 100,000 | $ 1,000,000 | $ 500,000 | $ 500,000 | $ 500,000 | ||||||
Paid amount | $ 100,000 | ||||||||||
Aggregate amount | 600,000 | ||||||||||
Outstanding principle amount | $ 0 | ||||||||||
Financial amount | $ 155,541 | ||||||||||
Interest fixed rate | 8.75% | ||||||||||
Interest payments | $ 17,282 | ||||||||||
Outstanding balance | $ 51,847 | $ 400,000 | |||||||||
Note payable balance | 51,847 | ||||||||||
Premium Financing [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Prepay amount | $ 40,410 | ||||||||||
AOS [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maturity date by one year description | The Promissory Note was amended on May 23, 2022, as modification of debt, to extend the maturity date by one year to May 24, 2023 and restructure the payment to time up to the adjusted maturity date. | ||||||||||
Forecast [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest payments | $ 155,541 | ||||||||||
AOS [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Promissory note issued | $ 2,500,000 |
Notes Payable (Details) - Sched
Notes Payable (Details) - Schedule of Reconciles Notes Payable - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Notes Payable [Abstract] | ||
Beginning balance | $ 400,000 | $ 1,024,190 |
Notes payable | 155,541 | 175,435 |
Accrued interest | (636) | |
Payments on notes payable | (503,694) | (798,988) |
Total | 51,847 | 400,000 |
Less-Notes payable – current | 51,847 | 400,000 |
Notes payable – non-current |
Notes Payable (Details) - Sch_2
Notes Payable (Details) - Schedule of Future Principal Payments for the Company's Notes | Sep. 30, 2023 USD ($) |
Notes Payable [Abstract] | |
2023 | $ 51,847 |
Thereafter | |
Total | $ 51,847 |
Deferred Compensation (Details)
Deferred Compensation (Details) - USD ($) | 9 Months Ended | ||
May 24, 2019 | Sep. 30, 2023 | Sep. 30, 2022 | |
Deferred Compensation [Line Items] | |||
Deferred compensation | $ 2,500,000 | ||
Amortization of deferred compensation | $ 0 | $ 416,666 | |
AOS [Member] | |||
Deferred Compensation [Line Items] | |||
Promissory note issued | $ 2,500,000 |
Due to Related Parties (Details
Due to Related Parties (Details) | Jul. 31, 2018 USD ($) |
CEO [Member] | |
Related Party Transaction [Line Items] | |
Deposited | $ 50,000 |
Stockholders_ Equity (Details)
Stockholders’ Equity (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Stockholders' Equity [Line Items] | |||||||
Common stock shares | 211,146,688 | 211,146,688 | 210,848,671 | ||||
Common stock exercise share | 75,000 | 100,000 | |||||
Stock option exercise price per share (in Dollars per share) | $ 0.13 | $ 0.13 | |||||
Cash proceeds (in Dollars) | $ 9,750 | $ 13,000 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ 0.05 | ||||||
Cash proceeds (in Dollars) | $ 1,250 | ||||||
Share granted (in Dollars) | $ 1,000,000 | ||||||
Stock Option, Exercise Price, Increase (in Dollars per share) | $ 2.25 | $ 2.36 | |||||
Vested shares | 4 years | ||||||
Expiration term | 10 years | ||||||
Restricted stock units | 150,000 | 400,000 | |||||
Purchase shares of common stock | 950,000 | ||||||
Share based compensation expenses (in Dollars) | $ 176,000 | ||||||
Subscription payable (in Dollars) | 585,000 | ||||||
Proceeds from Issuance of Private Placement (in Dollars) | $ 585,000 | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested, Weighted Average Grant Date Fair Value (in Dollars per share) | $ 21,085 | ||||||
Common stock shares | 100,000 | ||||||
Restricted stock unit agreements | 56,567 | ||||||
Restricted stock unit agreements (in Dollars) | $ 136,671 | $ 136,671 | |||||
Balance sheet total amount (in Dollars) | $ 348,929 | $ 348,929 | |||||
Series A convertible preferred stock, liquidation preference (in Dollars per share) | $ 25 | $ 25 | |||||
Series A convertible preferred stock, dividend rate | 6.50% | ||||||
Weighted average of the last sales prices | 95% | ||||||
Dividend rate increase | 10% | ||||||
Preferred stock conversion price per share (in Dollars per share) | $ 12 | ||||||
Stockholders equity, description | If the closing sale price of the common stock is greater than 140% of the conversion price on 20 out of 30 trading days, the company may redeem the Series A Preferred Stock in whole or in part at any time through October 31, 2010, upon at least 30 days’ notice, at a redemption price, payable in cash, equal to 100% of the liquidation preference of the shares to be redeemed, plus unpaid dividends thereon to, but excluding, the redemption date, subject to certain conditions. In addition, beginning November 1, 2010, the company may redeem the Series A Preferred Stock in whole or in part, upon at least 30 days’ notice, at a redemption price, payable in cash, equal to 100% of the liquidation preference of the Series A Preferred Stock to be redeemed, plus unpaid dividends thereon to, but excluding, the redemption date, under certain conditions. | ||||||
Common stock discount shares, description | The purchase price is payable, at the corporation’s option, (x) in cash, (y) in shares of the common stock at a discount of 5% from the fair market value of Common Stock on the Purchase Date (i.e. valued at a 95% discount of the Common Stock on the Purchase Date), or (z) any combination thereof. | ||||||
Reserved a total possible issuance under the plan | 50,000,000 | ||||||
Stock options purchase | 50,000 | ||||||
Exercise price (in Dollars per share) | $ 2.2 | ||||||
Incentive stock options to purchase | 100,000 | ||||||
common stock shares | 100,000 | ||||||
Exercise price per share (in Dollars per share) | $ 2.51 | ||||||
Restricted shares | 100,000 | ||||||
Aggregate share | 195,000 | ||||||
Stock-based compensation (in Dollars) | $ 2,528,293 | ||||||
Option expense (in Dollars) | 1,182,972 | ||||||
Expense from the vesting of the restricted stock (in Dollars) | 1,324,236 | ||||||
Expense related to shares of common stock (in Dollars) | 21,085 | ||||||
Unrecognized compensation cost (in Dollars) | $ 9,445,984 | ||||||
Unrecognized compensation (in Dollars) | $ 5,071,427 | ||||||
Preferred stock, shares | 0 | 223,000 | |||||
Price per share (in Dollars per share) | $ 0.4014 | $ 0.4014 | |||||
Amortized cost (in Dollars) | $ 0 | $ 0 | $ 223,000 | ||||
warrants One [Member] | |||||||
Stockholders' Equity [Line Items] | |||||||
Class of warrant or right, outstanding | 12,500 | ||||||
Common Stock [Member] | |||||||
Stockholders' Equity [Line Items] | |||||||
Common stock exercise share | 20,000 | 175,000 | 100,000 | ||||
Common stock shares | 75,000 | ||||||
Restricted shares | 150,000 | 9,584 | 130,417 | ||||
Deferred Compensation, Share-Based Payments [Member] | |||||||
Stockholders' Equity [Line Items] | |||||||
Exercise price (in Dollars per share) | $ 2.41 | ||||||
Restricted Stock Agreement [Member] | |||||||
Stockholders' Equity [Line Items] | |||||||
Stock Option, Exercise Price, Increase (in Dollars per share) | $ 2.35 | ||||||
Stock options purchase | 2,800,000 | ||||||
Warrant Two [Member] | |||||||
Stockholders' Equity [Line Items] | |||||||
Class of warrant or right, outstanding | 12,500 | ||||||
Minimum [Member] | |||||||
Stockholders' Equity [Line Items] | |||||||
Liquidation preference, percentage | 1% | ||||||
Unrecognized compensation (in Dollars) | $ 5,000,000 | $ 5,000,000 | |||||
Maximum [Member] | |||||||
Stockholders' Equity [Line Items] | |||||||
Liquidation preference, percentage | 6.50% | ||||||
Unrecognized compensation (in Dollars) | $ 5,648,651 | $ 5,648,651 | |||||
Warrant Two [Member] | |||||||
Stockholders' Equity [Line Items] | |||||||
Common stock shares | 25,000 | ||||||
Private Placement Two [Member] | |||||||
Stockholders' Equity [Line Items] | |||||||
Accredited investors price per share (in Dollars per share) | $ 9,584 | ||||||
Restricted Stock Agreement [Member] | |||||||
Stockholders' Equity [Line Items] | |||||||
Common stock shares | 130,417 | ||||||
Restricted shares value (in Dollars) | $ 0 | ||||||
Authorized Capital Stock [Member] | |||||||
Stockholders' Equity [Line Items] | |||||||
Common stock shares | 100,000 | ||||||
Common Stock [Member] | |||||||
Stockholders' Equity [Line Items] | |||||||
Common stock shares | 10,000 | 10,000 | |||||
Common stock exercise share | 10,000 | ||||||
Stock option exercise price per share (in Dollars per share) | $ 0.07 | ||||||
Cash proceeds (in Dollars) | $ 700 | ||||||
Series A Convertible Preferred Stock [Member] | |||||||
Stockholders' Equity [Line Items] | |||||||
Series A convertible preferred stock, issued | 13,602 | 13,602 | 13,602 | ||||
Preferred shares outstanding | 13,602 | 13,602 | 13,602 | ||||
Liquidation preference, percentage | 7.50% | ||||||
Preferred Stock [Member] | |||||||
Stockholders' Equity [Line Items] | |||||||
Liquidation preference, percentage | 101% | ||||||
Options [Member] | |||||||
Stockholders' Equity [Line Items] | |||||||
Stock Option, Exercise Price, Increase (in Dollars per share) | $ 2.05 | ||||||
Stock options purchase | 312,500 | ||||||
Executive Employment Agreement [Member] | |||||||
Stockholders' Equity [Line Items] | |||||||
Common stock shares | 10,000 | 10,000 | |||||
Common stock exercise share | 10,000 | ||||||
Stock option exercise price per share (in Dollars per share) | $ 0.13 | ||||||
Cash proceeds (in Dollars) | $ 1,300 | ||||||
Recognized stock based compensation expense (in Dollars) | $ 2,528,293 | $ 2,528,293 | $ 1,261,626 | ||||
Restricted Stock [Member] | |||||||
Stockholders' Equity [Line Items] | |||||||
Common stock exercise share | 100,000 | ||||||
Restricted stock unit agreements | 35,000 | ||||||
Restricted stock shares | 940,909 | ||||||
Restricted Stock [Member] | Executive Employment Agreement [Member] | |||||||
Stockholders' Equity [Line Items] | |||||||
Stock option exercise price per share (in Dollars per share) | $ 0.07 | ||||||
Cash proceeds (in Dollars) | $ 7,000 | ||||||
Deferred Compensation, Share-Based Payments [Member] | |||||||
Stockholders' Equity [Line Items] | |||||||
Stock options purchase | 150,000 |
Stockholders_ Equity (Details)
Stockholders’ Equity (Details) - Schedule of Stock Option Activity | 9 Months Ended |
Sep. 30, 2023 USD ($) $ / shares shares | |
Schedule of Stock Options [Abstract] | |
Shares Outstanding, Beginning Balance | shares | 22,848,385 |
Weighted Average Exercise Price Outstanding, Beginning Balance | $ / shares | $ 0.37 |
Weighted Average Contractual Term Outstanding, Beginning Balance | 6 years 5 months 1 day |
Intrinsic Value Outstanding, Beginning Balance | $ | $ 203,236,473 |
Shares, Granted | shares | 3,662,500 |
Weighted Average Exercise Price, Granted | $ / shares | $ 2.32 |
Weighted Average Contractual Term Outstanding, Granted | 9 years 9 months 29 days |
Intrinsic Value, Granted | $ | $ 2,794,546 |
Shares, Exercised | shares | (195,000) |
Weighted Average Exercise Price, Exercised | $ / shares | $ 0.09 |
Weighted Average Contractual Term Outstanding, Exercised | 5 years 1 month 9 days |
Intrinsic Value, Exercised | $ | $ (1,898,382) |
Shares, Forfeited or expired | shares | (30,451) |
Weighted Average Exercise Price, Forfeited or expired | $ / shares | |
Weighted Average Contractual Term Outstanding, Forfeited or expired | |
Intrinsic Value, Forfeited or expired | $ | $ (299,377) |
Shares Outstanding, Ending Balance | shares | 26,285,434 |
Weighted Average Exercise Price Outstanding, Ending Balance | $ / shares | $ 0.64 |
Weighted Average Contractual Term Outstanding, Ending Balance | 9 years 9 months 10 days |
Intrinsic Value Outstanding, Ending Balance | $ | $ 241,614,370 |
Shares Outstanding and exercisable, Ending Balance | shares | 21,004,321 |
Weighted Average Exercise Price Outstanding and exercisable, Ending Balance | $ / shares | $ 0.24 |
Weighted Average Contractual Term Outstanding and exercisable, Ending Balance | 7 years 9 months 29 days |
Intrinsic Value Outstanding and exercisable, Ending Balance | $ | $ 201,553,841 |
Stockholders_ Equity (Details_2
Stockholders’ Equity (Details) - Schedule of Black-Scholes- Merton Option-Pricing Model Applying the Assumptions - Fair Value of Option [Member] | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Assumptions: | ||
Expected dividend yield | 0% | 0% |
Expected volatility | 126% | |
Expected life (in years) | 6 years | 5 years |
Minimum [Member] | ||
Assumptions: | ||
Risk-free interest rate | 1.26% | 1.26% |
Expected volatility | 109.48% | |
Maximum [Member] | ||
Assumptions: | ||
Risk-free interest rate | 4.24% | 1.30% |
Expected volatility | 130% |
Stockholders_ Equity (Details_3
Stockholders’ Equity (Details) - Schedule of Fair Value of Restricted Stock and Restricted Stock Units - Restricted Stock Outstanding [Member] | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Stockholders’ Equity (Details) - Schedule of Fair Value of Restricted Stock and Restricted Stock Units [Line Items] | |
Shares, Outstanding beginning balance | shares | shares | 2,819,545 |
Weighted Average Fair Value per Share at Grant Date, Outstanding beginning balance | $ / shares | $ 1.93 |
Shares, Granted – restricted stock units and awards | shares | 1,075,909 |
Weighted Average Fair Value per Share at Grant Date, Granted – restricted stock units and awards | $ / shares | $ 1.86 |
Shares, Granted – performance based stock units | shares | |
Weighted Average Fair Value per Share at Grant Date, Granted – performance based stock units | $ / shares | |
Shares, Canceled | shares | (50,000) |
Weighted Average Fair Value per Share at Grant Date, Canceled | $ / shares | |
Shares, Vested and converted to shares | shares | (365,000) |
Weighted Average Fair Value per Share at Grant Date, Vested and converted to shares | $ / shares | $ 0.3 |
Shares, Outstanding ending balance | shares | 3,480,454 |
Weighted Average Fair Value per Share at Grant Date, Outstanding ending balance | $ / shares | $ 2.12 |
Stockholders_ Equity (Details_4
Stockholders’ Equity (Details) - Schedule of Warrant Stock Activity - Warrant Activity [Member] | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Stockholders’ Equity (Details) - Schedule of Warrant Stock Activity [Line Items] | |
Shares Outstanding | shares | 1,750,000 |
Weighted Average Exercise Price Outstanding | $ / shares | $ 0.06 |
Weighted Average remaining Contractual Term Outstanding | 6 years 6 months 10 days |
Shares Granted | shares | |
Weighted Average Exercise Price Granted | $ / shares | |
Weighted Average remaining Contractual Term Granted | |
Shares Exercised | shares | |
Weighted Average Exercise Price Exercised | $ / shares | |
Weighted Average remaining Contractual Term Exercised | |
Shares Forfeited | shares | |
Weighted Average Exercise Price Forfeited | $ / shares | |
Weighted Average remaining Contractual Term Forfeited | |
Shares Outstanding and exercisable | shares | 1,750,000 |
Weighted Average Exercise Price Outstanding and exercisable | $ / shares | $ 0.06 |
Weighted Average remaining Contractual Term Outstanding and exercisable | 5 years 9 months 10 days |
Stockholders_ Equity (Details_5
Stockholders’ Equity (Details) - Schedule of Range Exercise Prices Warrants Outstanding and Exercisable | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Warrants Outstanding, Shares Outstanding | 1,750,000 |
Warrants Outstanding, Weighted Avg. Remaining Contractual Life in Years | 5 years 9 months 10 days |
Warrants Outstanding, Weighted Avg. Exercise Price (in Dollars per share) | $ / shares | $ 0.06 |
Warrants Exercisable, Shares Exercisable | 1,750,000 |
Warrants Exercisable, Weighted Avg. Exercise Price (in Dollars per share) | $ / shares | $ 0.06 |
$0.05 - $0.07 [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Warrants Outstanding, Shares Outstanding | 1,750,000 |
Warrants Outstanding, Weighted Avg. Remaining Contractual Life in Years | 5 years 9 months 10 days |
Warrants Outstanding, Weighted Avg. Exercise Price (in Dollars per share) | $ / shares | $ 0.06 |
Warrants Exercisable, Shares Exercisable | 1,750,000 |
Warrants Exercisable, Weighted Avg. Exercise Price (in Dollars per share) | $ / shares | $ 0.06 |
Minimum [Member] | $0.05 - $0.07 [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Warrants Outstanding, Shares Outstanding | 0.05 |
Maximum [Member] | $0.05 - $0.07 [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Warrants Outstanding, Shares Outstanding | 0.07 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Revenue Recognition [Abstract] | |||
Earned revenue | $ 1,539,636 | $ 648,905 | |
Earned revenue percentage | 88% | 85% | |
Accounts receivable | $ 404,051 | ||
Accounts receivable rate | 100% | ||
Accounts Receivable, after Allowance for Credit Loss | $ 404,051 | $ 219,618 | $ 353,149 |
Revenue Recognition (Details) -
Revenue Recognition (Details) - Schedule of Receivables, Net - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Revenues [Abstract] | |||
Accounts receivable | $ 162,226 | $ 353,149 | |
Unbilled receivable | 241,825 | ||
Total | $ 404,051 | $ 353,149 | $ 219,618 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Aug. 01, 2023 USD ($) | Jul. 26, 2023 USD ($) | May 01, 2023 USD ($) | Jan. 31, 2023 USD ($) | Mar. 31, 2021 USD ($) | Sep. 30, 2023 USD ($) | |
Commitments and Contingencies [Line Items] | ||||||
Lease expense | $ 121,316 | |||||
Proceeds from Lease Payment, Operating Activity | 119,825 | |||||
Future minimum lease payments | $ 60,677 | |||||
Excess of damages value | $ 40,000,000 | |||||
Tax deductible donation amount | $ 25,000 | |||||
Square Foot Laboratory/Office Space [Member] | ||||||
Commitments and Contingencies [Line Items] | ||||||
Lease square foot | 9,805 | 13,000 | ||||
Base rent | $ 9.1 | $ 6.7626 | ||||
Minimum lease payment sale lease back transactions within two year | 10.2 | 9.2009 | ||||
Minimum lease payment sale leaseback transactions within three years | 11.3 | 11.4806 | ||||
Minimum lease payment sale leaseback transactions, within four years | 12.4 | 13.174 | ||||
Minimum lease payment sale leaseback transactions within five years | $ 13.5 | $ 14.9306 | ||||
2023 [Member] | ||||||
Commitments and Contingencies [Line Items] | ||||||
Salary | $ 300,000 | |||||
2024 [Member] | ||||||
Commitments and Contingencies [Line Items] | ||||||
Salary | 325,000 | |||||
2025 [Member] | ||||||
Commitments and Contingencies [Line Items] | ||||||
Salary | $ 350,000 |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - Schedule of Future Minimum Lease Payments | Sep. 30, 2023 USD ($) |
Schedule of Future Minimum Lease Payments [Abstract] | |
2023 | $ 60,677 |
2024 | 262,296 |
2025 | 296,284 |
2026 | 324,427 |
2027 | 343,545 |
Thereafter | 205,111 |
Total undiscounted lease payments | 1,492,341 |
Present value discount, less interest | 296,161 |
Lease Liability | $ 1,196,180 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Subsequent Event [Line Items] | ||
Stock option exercised | 75,000 | 100,000 |
Options exercise price per share (in Dollars per share) | $ 0.07 | |
Exercise price per share (in Dollars per share) | $ 2.25 | $ 2.36 |
Options [Member] | ||
Subsequent Event [Line Items] | ||
Stock option exercised | 20,000 | |
Exercise price per share (in Dollars per share) | $ 0.35 | |
Common Stock [Member] | ||
Subsequent Event [Line Items] | ||
Shares | 30,000 | |
Stock option exercised | 10,000 |