Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 28, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 1-11602 | ||
Entity Registrant Name | Nano Magic Holdings Inc. | ||
Entity Central Index Key | 0000891417 | ||
Entity Tax Identification Number | 47-1598792 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Address, Address Line One | 31601 Research Park Drive | ||
Entity Address, City or Town | Madison Heights | ||
Entity Address, State or Province | MI | ||
Entity Address, Postal Zip Code | 48071 | ||
City Area Code | (844) | ||
Local Phone Number | 273-6462 | ||
Title of 12(b) Security | Common Stock, $0.0001 par value | ||
Trading Symbol | NMGX | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,125,970 | ||
Entity Common Stock, Shares Outstanding | 10,077,681 | ||
Documents Incorporated by Reference [Text Block] | No documents are incorporated by reference into this annual report on Form 10-K | ||
ICFR Auditor Attestation Flag | false | ||
Auditor Firm ID | 1195 | ||
Auditor Name | UHY LLP | ||
Auditor Location | Sterling Heights, Michigan |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
CURRENT ASSETS: | ||
Cash | $ 242,474 | $ 288,134 |
Investments | 10,716 | 10,473 |
Accounts receivable, net | 312,344 | 1,230,154 |
Accounts receivable – related party | 4,915 | |
Inventory | 1,379,005 | 841,694 |
Prepaid expenses and contract assets | 212,127 | 278,461 |
Total Current Assets | 2,156,666 | 2,653,831 |
Operating lease right-of-use assets | 1,309,912 | 1,518,308 |
Property, plant and equipment, net | 634,133 | 613,471 |
Other assets | 5,890 | 5,890 |
Total Assets | 4,106,601 | 4,791,500 |
CURRENT LIABILITIES: | ||
Accounts payable | 670,505 | 1,245,187 |
Accounts payable - related parties | 12,000 | |
Accrued expenses and other current liabilities | 65,811 | 242,644 |
Customer deposits | 3,663 | |
Current portion of debt | 87,567 | 139,641 |
Advances from related parties | 113,952 | 145,387 |
Current portion of lease liabilities | 166,279 | 144,838 |
Contract liabilities | 45,762 | 90,562 |
Total Current Liabilities | 1,153,539 | 2,020,259 |
Notes payable, net of current portion | 115,928 | 286,225 |
Lease liabilities, net of current portion | 921,317 | 1,087,596 |
Total Liabilities | 2,190,784 | 3,394,080 |
Commitments and Contingencies (See Note 13) | ||
STOCKHOLDERS’ EQUITY: | ||
Preferred stock, $0.0001 par value, 100,000 shares authorized; no shares issued and outstanding | ||
Common stock: $0.0001 par value, 30,000,000 shares authorized; 9,702,680 and 8,459,995 issued and outstanding at December 31, 2021 and 2020, respectively | 970 | 846 |
Additional paid-in capital | 11,960,011 | 9,867,174 |
Accumulated deficit | (10,045,164) | (8,470,600) |
Total Stockholders’ Equity | 1,915,817 | 1,397,420 |
Total Liabilities and Stockholders’ Equity | $ 4,106,601 | $ 4,791,500 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 100,000 | 100,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.0001 | |
Common Stock, Shares Authorized | 30,000,000 | 30,000,000 |
Common Stock, Shares, Outstanding | 9,702,680 | 8,459,995 |
Common stock, shares, issued | 9,702,680 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
REVENUES: | ||
Total Revenues | $ 5,039,613 | $ 4,759,240 |
COST OF REVENUES: | ||
Total Cost of Revenues | 3,347,922 | 3,101,036 |
GROSS PROFIT | 1,691,691 | 1,658,204 |
OTHER OPERATING INCOME | 632,069 | 133,500 |
OPERATING EXPENSES: | ||
Selling and marketing expenses | 161,194 | 85,547 |
Salaries, wages and related benefits | 2,330,435 | 1,020,186 |
Research and development | 34,875 | 56,816 |
Professional fees | 724,755 | 803,503 |
General and administrative expenses | 838,446 | 618,298 |
Total Operating Expense | 4,089,705 | 2,584,350 |
LOSS FROM OPERATIONS | (1,765,945) | (792,646) |
OTHER INCOME (EXPENSE): | ||
Loan forgiveness | 210,205 | |
Interest expense | (19,077) | (6,891) |
Other income, net | 253 | 18,482 |
Total Other Income | 191,381 | 11,591 |
NET LOSS | $ (1,574,564) | $ (781,055) |
NET LOSS PER COMMON SHARE: | ||
Basic | $ (0.17) | $ (0.10) |
Diluted | $ (0.17) | $ (0.10) |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||
Basic | 9,475,560 | 7,558,078 |
Diluted | 9,475,560 | 7,558,078 |
Product [Member] | ||
REVENUES: | ||
Total Revenues | $ 4,663,508 | $ 4,075,818 |
COST OF REVENUES: | ||
Total Cost of Revenues | 2,798,698 | 2,514,119 |
Service [Member] | ||
REVENUES: | ||
Total Revenues | 376,105 | 683,422 |
COST OF REVENUES: | ||
Total Cost of Revenues | $ 549,224 | $ 586,917 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Deficit) - USD ($) | Common Class A [Member]Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2019 | $ 622 | $ 7,242,067 | $ (7,689,545) | $ (446,856) |
Balance, Shares at Dec. 31, 2019 | 6,222,881 | |||
Common stock issued for cash, net of issuance costs | $ 222 | 2,028,684 | 2,028,906 | |
Common stock issued for cash, net of issuance costs, shares | 2,216,066 | |||
Common stock issued for services | $ 2 | 11,998 | 12,000 | |
Common stock issued for services, shares | 21,048 | |||
Stock based compensation | 186,612 | 186,612 | ||
Warrants, options, and warrant options on private placement | 86,095 | 86,095 | ||
Warrants issued in connection with new lease | 311,718 | 311,718 | ||
Net loss | (781,055) | (781,055) | ||
Balance at Dec. 31, 2020 | $ 846 | 9,867,174 | (8,470,600) | 1,397,420 |
Balance, Shares at Dec. 31, 2020 | 8,459,995 | |||
Common stock issued for cash, net of issuance costs | $ 115 | 1,442,962 | 1,443,077 | |
Common stock issued for cash, net of issuance costs, shares | 1,154,462 | |||
Common stock issued for services | $ 9 | 74,991 | 75,000 | |
Common stock issued for services, shares | 88,223 | |||
Stock based compensation | 517,161 | 517,161 | ||
Warrants, options, and warrant options on private placement | 57,723 | 57,723 | ||
Net loss | (1,574,564) | (1,574,564) | ||
Balance at Dec. 31, 2021 | $ 970 | $ 11,960,011 | $ (10,045,164) | $ 1,915,817 |
Balance, Shares at Dec. 31, 2021 | 9,702,680 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (1,574,564) | $ (781,055) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Change in inventory obsolescence reserve | (48,924) | (462,406) |
Depreciation and amortization expense | 106,351 | 38,609 |
Gain on sale of property and equipment, net | (450) | |
Gain on forgiveness of loan | (210,205) | |
Bad debt (recovery) expense | (18,247) | 53,790 |
Stock-based compensation | 592,161 | 198,612 |
Change in operating assets and liabilities: | ||
Accounts receivable | 936,057 | (1,137,569) |
Accounts receivable - related party | 4,915 | |
Inventory | (488,387) | 43,334 |
Prepaid expenses and contract assets | 66,334 | (244,300) |
Accounts payable and accrued expenses | (747,853) | 495,281 |
Accounts payable - related party | (12,000) | (6,613) |
Operating lease liabilities | 62,106 | (126,716) |
Contract liabilities | (44,800) | (71,561) |
NET CASH USED BY OPERATING ACTIVITIES | (1,377,056) | (2,001,044) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Net activity on certificate of deposit | (244) | (237) |
Purchases of property and equipment | (127,013) | (143,456) |
NET CASH USED BY INVESTING ACTIVITIES | (127,257) | (143,693) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Repayment of bank loans | (44,493) | (27,524) |
Proceeds from bank loans | 79,306 | 132,593 |
Proceeds from sale of common stock and warrants | 1,500,800 | 2,115,001 |
Repayment of advances from related parties | (31,435) | |
Repayment of finance leases | (41,525) | |
Repayment of debt | (4,000) | (4,000) |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 1,458,653 | 2,216,070 |
NET INCREASE (DECREASE) IN CASH | (45,660) | 71,333 |
CASH, beginning of year | 288,134 | 216,801 |
CASH, end of period | 242,474 | 288,134 |
Cash paid during the period for interest | ||
Equipment acquired on finance leases | 159,934 | |
Warrants issued to lessor | $ 311,718 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION Organization Nano Magic Holdings Inc. (“we”, “us”, “our”, “Nano Magic” or the “Company”), a Delaware corporation, develops and sells a portfolio of nano-layer coatings, nano-based cleaners, and nano-composite products based on its proprietary technology, and performs nanotechnology product research and development generating revenues through performing contract services. On March 3, 2020, we changed our name from PEN Inc. to Nano Magic Inc. and on March 2, 2021 we changed our name to Nano Magic Holdings Inc. Through the Company’s wholly-owned subsidiary, Nano Magic LLC, formerly known as PEN Brands LLC, we develop, manufacture and sell consumer and institutional products using nanotechnology to deliver unique performance attributes at the surfaces of a wide variety of substrates. These products are marketed internationally primarily to customers in the optical industry. On March 31, 2020, PEN Brands LLC changed its name to Nano Magic LLC. Through the Company’s wholly-owned subsidiary, Applied Nanotech, Inc., we primarily perform contract research services for the Company and for governmental and private customers. Basis of Presentation and Principles of Consolidation The Company’s consolidated financial statements include the financial statements of its wholly-owned subsidiaries, Applied Nanotech, Inc. and Nano Magic LLC. All significant intercompany accounts and transactions have been eliminated in consolidation. Going Concern These consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. As reflected in the consolidated financial statements, the Company had losses from operations and net cash used by operations of $ 1,765,945 and $ 1,377,056 , respectively, for the year ended December 31, 2021. As indicated in the accompanying financial statements, the Company had positive working capital of $ 1,003,127 including $ 242,474 of cash at December 31, 2021. These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that these consolidated financial statements are issued. Management cannot provide assurance that the Company will ultimately achieve profitable operations, become cash flow positive or raise additional capital. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. They do not include any adjustments related to the recoverability and/or classification of the recorded asset amounts and/or the classification of the liabilities that might be necessary should the Company be unable to continue as a going concern. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates for the years ended December 31, 2021 and 2020 include estimates for allowance for doubtful accounts on accounts receivable, the estimates for obsolete inventory, the useful life of property and equipment, assumptions used in assessing impairment of long-term assets, estimates of current and deferred income taxes and deferred tax valuation allowances, the fair value of non-cash equity transactions, and the fair value of equity incentives. Cash, Cash Equivalents and Restricted Cash For purposes of the consolidated statements of cash flows, the Company considers all highly liquid instruments with a maturity of three months or less at the purchase date and money market accounts to be cash equivalents. Investments Investments consist of long-term certificates of deposit. The certificate of deposit held at December 31, 2020 was renewed in 2021. It matures in May 2024 2.29 Accounts Receivable The Company recognizes an allowance for losses on accounts receivable in an amount equal to the estimated probable losses net of recoveries. The allowance is based on an analysis of historical bad debt experience, current receivables aging, and expected future write-offs, as well as an assessment of specific identifiable customer accounts considered at risk or uncollectible. The expense associated with the allowance for doubtful accounts is recognized as general and administrative expense. Inventory Inventory is stated at the lower of cost or net realizable value. Cost is determined using the average cost method based on prices paid for inventory items. This valuation requires us to make judgments, based on currently available information, about the likely method of disposition, such as sales to individual customers and expected recoverable values. Property and Equipment Property and equipment are stated at cost and are depreciated using the straight-line method over their estimated useful lives, which range from three to ten years. Leasehold improvements are depreciated over the shorter of the useful life or lease term including scheduled renewal terms. Maintenance and repairs are charged to expense as incurred. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in other income or expense in the year of disposition. The Company examines the possibility of decreases in the value of these assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable. Impairment of Long-Lived Assets In accordance with ASC Topic 360, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. The Company did not record any impairment charge for the year ended December 31, 2021 and 2020. Leases Operating leases are reflected on our balance sheet within operating lease Right-of-use ( ROU) assets and the related current and non-current operating lease liabilities. ROU assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from lease agreement. Operating lease ROU assets and liabilities are recognized at the commencement date, the date on which the lessor began making the underlying asset customizable for our use, based upon the present value of the lease payments over the respective lease term. Lease expense is recognized on a straight-line basis over the lease term, subject to any changes in the lease or expectation regarding the terms. Variable lease costs such as common area maintenance, property taxes and insurance are expensed as incurred. Lease Term The Company calculates the term for each lease agreement to include the noncancelable period specified in the agreement together with (1) the periods covered by options to extend the lease if the Company is reasonably certain to exercise that option, (2) periods covered by an option to terminate if the Company is reasonably certain not to exercise that option and (3) period covered by an option to extend (or not terminate) if controlled by the lessor. The assessment of whether the Company is reasonably certain to exercise an option to extend a lease requires significant judgement surrounding contract-based factors, asset-based factors, entity-based factors and market-based factors. Lease Payments Lease payments consist of fixed payments, less any lease incentives paid or payable to the lessee related to the use of the underlying asset during the lease term. Incremental Borrowing Rate The ROU asset and related lease liabilities recorded based on the present value of the lease payments using (1) the rate implicit in the lease or (2) the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Revenue Recognition We adopted ASC Topic 606, Revenue from Contracts with Customers Identification of the contract, or contracts, with a customer A contract with a customer exists when (i) we enter into an enforceable contract with a customer that defines each party’s rights regarding the goods or services to be transferred and identifies the payment terms related to these goods or services, (ii) the contract has commercial substance and, (iii) we determine that collection of substantially all consideration for goods or services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. We apply judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience or, in the case of a new customer, published credit and financial information pertaining to the customer. Identification of the performance obligations in the contract Performance obligations promised in a contract are identified based on the goods or services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the goods or service either on its own or together with other resources that are readily available from third parties or from us, and are distinct in the context of the contract, whereby the transfer of the goods or services is separately identifiable from other promises in the contract. When a contract includes multiple promised goods or services, we apply judgment to determine whether the promised goods or services are capable of being distinct and are distinct within the context of the contract. If these criteria are not met, the promised goods or services are accounted for as a combined performance obligation. Determination of the transaction price The transaction price is determined based on the consideration to which we will be entitled to receive in exchange for transferring goods or services to our customer. We estimate any variable consideration included in the transaction price using the expected value method that requires the use of significant estimates for discounts, cancellation periods, refunds and returns. Variable consideration is described in detail below. Allocation of the transaction price to the performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative Stand-Alone Selling Price (“SSP,”) basis. We determine SSP based on the price at which the performance obligation would be sold separately. If the SSP is not observable, we estimate the SSP based on available information, including market conditions and any applicable internally approved pricing guidelines. Recognition of revenue when, or as, we satisfy a performance obligation We recognize contract revenue over time and product revenue at a point in time, when the related performance obligation is satisfied by transferring the promised goods or services to our customer. Contract revenue is recognized based on a cost-to-cost input method. Disaggregation of Revenue For the years ended December 31, 2021 and 2020, total sales in the United States represent approximately 78 87 13 10 Principal versus Agent Considerations When another party is involved in providing goods or services to our customer, we apply the principal versus agent guidance in ASC Topic 606 to determine if we are the principal or an agent to the transaction. When we control the specified goods or services before they are transferred to our customer, we report revenue gross, as principal. If we do not control the goods or services before they are transferred to our customer, revenue is reported net of the fees paid to the other party, as agent. Our evaluation to determine if we control the goods or services within ASC Topic 606 includes the following indicators: We are primarily responsible for fulfilling the promise to provide the specified good or service. When we are primarily responsible for providing the goods and services, such as when the other party is acting on our behalf, we have indication that we are the principal to the transaction. We consider if we may terminate our relationship with the other party at any time without penalty or without permission from our customer. We have inventory risk before the specified good or service has been transferred to a customer or after transfer of control to the customer. We may commit to obtaining the services of another party with or without an existing contract with our customer. In these situations, we have risk of loss as principal for any amount due to the other party regardless of the amount(s) we earn as revenue from our customer. The entity has discretion in establishing the price for the specified good or service. We have discretion in establishing the price our customer pays for the specified goods or services. Contract Assets We capitalize costs and estimated earnings in excess of billings as a contract asset in current assets. There were no 88,694 Contract Liabilities Contract liabilities consist of customer advance payments and billings in excess of revenue recognized. We may receive payments from our customers in advance of completing our performance obligations. We record contract liabilities equal to the amount of payments received in excess of revenue recognized, Contract liabilities are recorded under the caption “contract liabilities” and are reported as current liabilities on our consolidated financial statements when the time to fulfill the performance obligations under terms of our contracts is less than one year. At December 31, 2021 and 2020, contract liabilities totaled $ 45,762 90,562 Cost of Sales Cost of sales includes inventory costs, materials and supplies costs, internal labor and related benefits, subcontractor costs, depreciation, overhead and shipping and handling costs incurred. Shipping and Handling Costs Shipping and handling costs incurred relating to the purchase of inventory are included in inventory which is charged to cost of sales as products are sold. Shipping and handling costs incurred for product shipped to customers are included in cost of sales. For the years ended December 31, 2021 and 2020 shipping and handling costs amounted to $ 187,154 132,458 Research and Development Research and development costs incurred in the development of the Company’s products and under other Company sponsored research and development projects are expensed as incurred. Costs such as direct labor, direct costs, and other allocated costs incurred to perform research and development service pursuant to government and private research projects are in included in cost of sales. Research and development costs incurred in the development of the Company’s products for the years ended December 31, 2021 and 2020 were $ 34,875 56,816 Advertising Costs The Company participates in various advertising programs. All costs related to advertising of the Company’s products are expensed in the period incurred. Advertising costs charged to operations for the years ended December 31, 2021 and 2020 were $ 40,459 23,345 Federal and State Income Taxes The Company accounts for income tax using the liability method prescribed by ASC 740, “Income Taxes”. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the year in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date. The Company follows the accounting guidance for uncertainty in income taxes using the provisions of ASC 740 “Income Taxes Stock-Based Compensation Stock-based compensation is accounted for based on the requirements of the Share-Based Payment Topic of ASC 718 which requires recognition in the financial statements of the cost of employee and director services received in exchange for an award of equity instruments over the period the employee or director is required to perform the services in exchange for the award (presumptively, the vesting period). The ASC also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award. The Company adopted ASU No. 2017-09 in 2018; its adoption did not have a material impact on its consolidated financial statements. Pursuant to ASC Topic 505-50, for share-based payments to consultants and other third-parties, compensation expense is determined at the “measurement date.” The expense is recognized over the service period of the award. Until the measurement date is reached, the total amount of compensation expense remains uncertain. The Company initially records compensation expense based on the fair value of the award at the reporting date. Earnings (Loss) Per Share of Common Stock ASC 260 “Earnings Per Share”, requires dual presentation of basic and diluted earnings per share (“EPS”) with a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation. Basic EPS excludes dilution. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. Basic net loss per common share is computed by dividing net loss available to common shareholders by the weighted average number of shares of common shares outstanding during the period. Diluted net loss per common share is computed by dividing net loss by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during each period. Additionally, potentially dilutive common shares consist of common stock options and warrants (using the treasury stock method). These common stock equivalents may be dilutive in the future . SCHEDULE OF ANTI-DILUTIVE PER SHARE INFORMATION December 31, December 31, Stock options 3,123,702 502,892 Stock warrants 6,597,178 5,443,440 Total 9,720,880 5,946,332 Net income (loss) per share for each class of common stock is as follows: SCHEDULE OF RECONCILIATION OF BASIC AND DILUTED NET INCOME LOSS Net income (loss) per common shares outstanding: Year Ended Year Ended Common stock $ (0.17 ) $ (0.10 ) Weighted average shares outstanding: Total weighted average common shares outstanding 9,475,560 7,558,078 Segment Reporting The Company uses “the management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. The Company’s chief operating decision maker is the President of the Company, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. The Company classified the reportable operating segments into (i) the development, manufacture and sale of consumer and institutional products using nanotechnology to deliver unique performance attributes (the “Product segment”) and (ii) nanotechnology design and development services for our future products and for government and private entities (the “Contract services segment”). Recently Adopted Accounting Pronouncements Financial Instruments — Credit Losses (Topic 326) In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Measurement of expected credit losses is to be based on relevant forecasts that affect collectability. The scope of financial assets within the CECL methodology is broad and includes trade receivables from certain revenue transactions and certain off-balance sheet credit exposures. Different components of the guidance require modified retrospective or prospective adoption. ASU 2016-13 is effective for the annual reporting period beginning on or after December 15, 2020. The Company adopted this standard January 1, 2020 and there was no material impact. The Company does not believe there are any other recently issued and effective, or not yet effective pronouncements that would have or are expected to have any significant effect on the Company’s financial position, results of operations or cash flows. There have been no changes to our significant accounting policies described in Note 2 to our Annual Report on Form 10-K for the year ended December 31, 2021, that have had a material impact on our Consolidated Financial Statements and related notes. Reclassifications Certain accounts and financial statement captions in the prior periods have been reclassified to conform to the current period financial statements. None of the reclassifications had any impact on the net loss reported in 2020. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 3 – ACCOUNTS RECEIVABLE At December 31, 2021 and 2020, accounts receivable consisted of the following: SCHEDULE OF ACCOUNTS RECEIVABLE December 31, December 31, Accounts receivable $ 354,670 $ 1,291,742 Less: allowance for doubtful accounts (42,326 ) (61,588 ) Accounts receivable, net $ 312,344 $ 1,230,154 Bad debt expense (recoveries) was ($ 18,251 ) and $ 53,790 for the years ended December 31, 2021 and 2020, respectively. |
INVENTORY
INVENTORY | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORY | NOTE 4 – INVENTORY At December 31, 2021 and 2020, inventory consisted of the following: SCHEDULE OF INVENTORY December 31, December 31, Raw materials $ 673,518 $ 632,055 Work in progress 314,461 176,392 Finished goods 456,768 147,913 Total 1,444,747 956,360 Less: reserve for obsolescence (65,742 ) (114,666 ) Inventory, net $ 1,379,005 $ 841,694 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 5 - PROPERTY AND EQUIPMENT At December 31, 2021 and 2020, property and equipment consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT Useful Life December 31, December 31, Machinery and equipment 5 10 $ 2,770,413 $ 2,718,877 Furniture and office equipment 3 7 534,134 492,400 Leasehold improvements 2 15 140,678 106,935 3,445,225 3,318,212 Less: accumulated depreciation (2,811,092 ) (2,704,741 ) Property and equipment, net $ 634,133 $ 613,471 For the years ended December 31, 2021 and 2020, depreciation and amortization expense amounted to $ 106,351 38,609 During the year ended December 31, 2020 there were sales of equipment totaling $ 450 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2021 | |
Leases | |
LEASES | NOTE 6 – LEASES Operating Leases The Company’s leased assets include offices, production and research and development facilities. Our current lease portfolio has remaining terms from less than three years up to seven years. Many of these leases contain options under which we can extend the term for several years. Renewal options are excluded from our calculation of lease liabilities unless we are reasonably assured to exercise the renewal option. Our lease agreements do not contain residual value guarantees or material restrictive covenants. On September 20, 2017, the Company entered into a three-year lease agreement for 22,172 beginning September 20, 2017 ended September 20, 2020 8,688 On December 10, 2018, we entered into a five-year lease agreement for 3,742 beginning January 2019 and ending February 29, 2024 3,472 3 On June 21, 2019, we leased approximately 1,200 1,529 Effective May 31, 2020, we entered into a lease with a related party for a 29,220 square foot building in Madison Heights, Michigan. The occupancy and rent commencement date was October 1, 2020. The lease has an initial term of seven years with a renewal option at the end of the initial term for an additional 3-year term, and a second renewal option thereafter for an additional 5-year term. The renewal term is not included in the calculation of the operating lease liability. As the sole tenant, we are responsible for all taxes, ordinary maintenance, snow removal and other ordinary operating expenses. Rent is $6.50 per square foot, increasing by $0.25 per year. During the first three years we also have the right to buy up to a 49% interest in Magic Research LLC for a price equal to 49% of the contributions received from other members . See Note 11, Stockholders’ Equity, for a description of warrants issued to the owners of Magic Research LLC in connection with this lease. The fair value of these warrants totaling $ 311,718 were recorded as initial direct costs of obtaining the lease and are included in other assets on the accompanying balance sheet. See Note 10, Related Party Transactions, for information about roles in management and economic participation by our CEO and several other directors in the landlord. For operating leases, we calculated ROU assets and lease liabilities based on the present value of the remaining lease payments as of the date of adoption using the IBR as of that date. Schedule Of Remaining Lease Payments December 31, 2021 December 31, 2020 Operating lease liabilities $ 1,087,596 $ 1,309,912 Right-of-use assets $ 1,309,912 $ 1,518,308 Operating lease cost for the years ended December 31, 2021 and 2020 was $ 260,308 219,305 56,088 54,990 48,890 12,524 Finance Leases On August 11, 2020, we entered into a finance lease for furniture used in the Michigan facility. We financed $ 60,684 over a period of 36 months and are required to make monthly payments of $ 1,972 during that time. As of December 31, 2021 the balance due was $ 34,387 with $ 21,052 in current liabilities and $ 13,335 in long term liabilities. On September 24, 2020, we entered into a finance lease with Raymond Leasing Corporation for a forklift. We financed $ 14,250 . The lease term is 36 months with monthly payments of $ 425 . As of December 31, 2021 the balance due was $ 8,166 4,822 3,344 In December 2020, we entered into a finance lease for production equipment. We financed $ 85,000 over a period of 48 months and are required to make monthly payments of $ 2,135 during that time. As of December 31, 2021 the balance due was $ 64,380 20,016 44,364 For finance leases, we calculate ROU assets and lease liabilities based on the present value of the remaining lease payments as of the date of lease commencement. The ROU assets for finance leases are depreciated in accordance with the Company’s depreciation policies for those asset groupings. Finance lease liabilities recorded in lease liabilities was $ 106,935 at December 31, 2021 and totaled $ 150,738 at December 31, 2020. Finance lease interest expense was $ 12,346 2,844 for the years ended December 31, 2021 and 2020, respectively. Maturities Future minimum lease payments under leases that had initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2021, are as follows: SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS Operating Leases Finance Leases 2022 $ 247,906 $ 54,394 2023 256,688 42,830 2024 220,428 25,620 2025 220,989 - 2026 228,297 - Thereafter - Less: impact of discounting ) (15,911 ) Present value of lease liabilities 1,087,596 106,933 |
BANK LOANS AND LINES OF REVOLVI
BANK LOANS AND LINES OF REVOLVING CREDIT FACILITY | 12 Months Ended |
Dec. 31, 2021 | |
Bank Loans And Lines Of Revolving Credit Facility | |
BANK LOANS AND LINES OF REVOLVING CREDIT FACILITY | NOTE 7 – BANK LOANS AND LINES OF REVOLVING CREDIT FACILITY On May 8, 2020, Nano Magic LLC obtained a loan from Fifth Third Bank for $ 130,900 under the Small Business Administration Paycheck Protection Program. The loan had interest at 1.00 % and was payable in monthly installments of principal and interest in the amount of $ 7,330 . On August 6, 2021 we completed the loan forgiveness application with Fifth Third Bank for the Paycheck Protection Plan loan we received through that bank. On November 9, 2021 we were notified by Fifth Third Bank that the Small Business Administration had reviewed our loan forgiveness application filed earlier and that the entire amount of the loan to Nano Magic LLC was forgiven. The amount forgiven is included in other income on the income statement. On February 1, 2021, our subsidiary Applied Nanotech obtained a loan from Amegy Bank of Texas for $ 79,305 under the Small Business Administration Paycheck Protection Program. On August 11, 2021 we were notified by Amegy Bank that the Small Business Administration had reviewed our loan forgiveness application filed earlier and that the entire amount of the loan to Applied Nanotech Inc. was forgiven. The amount forgiven is included in other income on the income statement. |
ACCOUNTS RECEIVABLE FACTORING
ACCOUNTS RECEIVABLE FACTORING | 12 Months Ended |
Dec. 31, 2021 | |
Accounts Receivable Factoring | |
ACCOUNTS RECEIVABLE FACTORING | NOTE 8 – ACCOUNTS RECEIVABLE FACTORING On September 1, 2020, Nano Magic LLC entered an agreement with NOWaccount ® 11,337 |
NOTES PAYABLE
NOTES PAYABLE | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | NOTE 9 – NOTES PAYABLE On February 10, 2015, Nano Magic LLC entered a $ 373,000 promissory note (the “Equipment Note”) with KeyBank, N.A. (the “Bank”). The unpaid principal balance of this Equipment Note is payable in 60 equal monthly instalments payments of principal and interest through September 10, 2020. The Equipment Note is secured by certain equipment, as defined in the Equipment Note, and bears interest computed at a rate of interest of 4.35 % per annum based on a year of 360 days. On June 18, 2019, Nano Magic LLC entered into an Amendment to the Equipment Note with the Bank. By the amendment, the maturity date of the note was extended until April 10, 2022 , the interest rate was raised to 6.29 % per year, and the monthly payments were reduced to $4,052 per month . At December 31, 2021 and 2020, the principal amount due under the Equipment Note, as amended by the Amendment, amounted to $ 41,677 and $ 86,098 , respectively. As of December 31, 2021, the full principal amount is current. At December 31, 2020, the current and non-current portions were $ 44,493 and $ 41,605 , respectively. In June and November 2015, in connection with a severance package offered to four employees, the Company entered into four promissory note agreements with the four employees in satisfaction of accrued and unpaid deferred salary. The principal amounts due under these notes bear interest at the minimum rate of interest applicable under the internal revenue code (approximately 3.0 37,458 In January 2017, the Company issued a promissory note in the principal amount of $ 17,425 due in January 2027 In October 20, 2020, we agreed to pay deferred salary of $ 6,000 Future payments of notes payable are as follows: SCHEDULE OF FUTURE PAYMENTS OF NOTES PAYABLE Year As of December 31, 2021 2022 $ 41,677 Thereafter 54,883 Total $ 96,560 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 10 – RELATED PARTY TRANSACTIONS Advances from related parties aggregating $ 113,952 92,887 as of December 31, 2021, and $ 145,383 as of December 31, 2020 due to the Rickerts for working capital advances made in 2018 and accrued payroll of $ 16,000 due to them due as of December 31, 2021 and December 31, 2020. We paid legal and consulting fees to director Mr. Ron Berman of $ 167,350 in 2021, and $ 212,700 in 2020. Mr. Ron Berman and Mr. Tom Berman are the managers of the limited liability company that is the manager of PEN Comeback, LLC, PEN Comeback 2, LLC, Magic Growth, LLP and Magic Growth 2 LLC. These four limited liability companies purchased shares of common stock and derivative securities from us in 2018, 2019, 2020, and 2021. See the subsection on Sales of Stock under Issuances of Common Stock in In addition, Mr. Tom Berman and Mr. Ron Berman are two of three individuals who share voting power of the sole manager of the limited liability company that is our landlord in Michigan. Together, Tom and Ron Berman hold, in the aggregate, a 5 The lease for the Michigan facility gives us the right, during the first three years of the lease, to buy up to a 49% interest in the landlord for a price equal to 49% of the contributions received from other members |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | NOTE 11 - STOCKHOLDERS’ EQUITY Description of Preferred and Common Stock On July 2, 2020, we amended and restated our certification of incorporation to eliminate the Company’s Class B common stock and Class Z common stock and rename as “common stock” the Company’s Class A Common Stock. As part of the amendment, we increased the number of authorized shares of common stock from 7,200,000 30,000,000 0.0001 100,000 0.0001 Preferred Stock The preferred stock may be issued in one or more series. The Company’s board of directors are authorized to issue the shares of preferred stock in such series and to fix from time to time before issuance thereof the number of shares to be included in any such series and the designation, powers, preferences and relative, participating, optional or other rights, and the qualifications, limitations or restrictions thereof, of such series. Common Stock The rights of each share of common are the same with respect to dividends, distributions and rights upon liquidation. Holders of common stock each have one vote per share Issuances of Common Stock Common Stock Issued for Services and for Stock Appreciation Rights On February 12, 2020, we issued an aggregate of 21,048 0.57 12,000 Pursuant to the agreement entered into on October 20, 2020, with the holder of substantially all the outstanding stock appreciation rights, on March 2, 2021, we issued 5,000 1.00 On March 2, 2021, we issued an aggregate of 37,890 0.95 36,000 On December 15, 2021, we issued an aggregate of 45,333 0.75 34,000 Sales of Common Stock On January 22, 2020, we sold 198,530 0.65 129,044 198,516 198,516 1.50. four years 5,955 On February 24, 2020, we sold 205,883 0.65 133,824 205,868 198,516 1.50 four years 6,176 On March 24, 2020, in a private placement to PEN Comeback 2, we sold 551,600 242,518 0.65 516,177 794,110 794,110 1.50 four years 23,823 On March 26, 2020, in a private placement to the same investor we committed to issue 36,765 .65 23,897 36,758 36,780 1.50 four years 1,103 On July 13, 2020, Nano Magic Inc. sold to Magic Growth, LLC 388,462 485,578 388,450 19,422 four years 2.00 On August 12, 2020, Nano Magic Inc. sold to Magic Growth, LLC 461,538 576,923 461,525 23,079 four years 2.00 On September 14, 2020, Nano Magic Inc. sold to Magic Growth, LLC 130,770 163,463 130,750 6,537 four years 2.00 On February 16, 2021, the Company sold to Magic Growth 2 LLC, 769,231 shares of common stock for proceeds of $ 961,538 and warrants to purchase up to 769,225 shares of common stock for proceeds of $ 38,463 . The warrants are exercisable at any time during the four years after date of issue at a warrant exercise price of $ 2.00 per share. PEN Comeback Management, LLC, owned by Tom J. Berman and Ronald J. Berman, is the sole voting member of Magic Growth 2 LLC. On March 17, 2021, the Company sold to Magic Growth 2 LLC, 385,231 481,539 385,225 19,260 2.00 All of these sales of stock and warrants were sold in private placements exempt from registration under Section 4(a)(2) of the Securities Act of 1933, as amended. Stock Options Stock options outstanding are to purchase common stock. Stock option activities for the years ended December 31, 2021 and 2020 are summarized as follows: SCHEDULE OF STOCK OPTION PLAN ACTIVITY Number of Options Weighted Weighted Aggregate Balance Outstanding, December 31, 2019 455,502 $ 1.24 $ - Exercised - - Forfeited or expired (52,610 ) 0.61 Granted 100,000 0.65 Balance Outstanding, December 31, 2020 502,892 $ 0.89 3.23 $ 220,000 Exercised - Forfeited or expired (116,690 ) 1.83 Granted 2,737,500 0.80 Balance Outstanding, December 31, 2021 3,123,702 $ 0.77 4.93 $ - Exercisable, December 31, 2021 867,624 $ 0.72 2.96 $ - Options Issued Outside of a Plan On April 3, 2019, we issued to our CEO and President, Tom Berman, options to purchase up to 550,000 0.55 100,000 450,000 On March 2, 2021, in connection with the three-year extension of the contract with our President and Chief Executive Officer, Mr. Tom Berman was granted an option to purchase up to 2,350,000 0.75 SCHEDULE OF STOCK OPTIONS VESTING The right to purchase: Consisting of: Is vested on: Tranche 1 150,000 June 30, 2021 Tranche 2 150,000 December 31, 2021 Tranche 3 150,000 June 30, 2022 Tranche 4 150,000 December 31, 2022 Tranche 5 150,000 June 30, 2023 Tranche 6 150,000 December 31, 2023 Tranche 7 Up to 150,000 If the aggregate sales bonus payable for 2021 exceeds $240,000 Tranche 8 Up to 150,000 If the aggregate sales bonus payable for 2022 exceeds $260,000 Tranche 9 Up to 150,000 If the aggregate sales bonus payable for 2023 exceeds $300,000 Tranche 10 Up to 1 If a profit bonus is payable under the employment contract and the Board determines to pay some or all of it with options, the number vested as determined by the Board On March 2, 2021, we granted an option to Ronald J. Berman as part of his consulting contract entered into on that day. Under the consulting agreement, Mr. Berman oversees sales and marketing for Nano Magic LLC and will work on special projects as requested by the President & CEO. His cash compensation is $ 10,000 100,000 0.75 The fair value of the options awarded outside of any plan was calculated using the Black-Scholes method. The assumptions used in the calculations are shown below. The expected term represents the period of time that the options are expected to be outstanding. SCHEDULE OF FAIR VALUE OF OPTION AWARD VALUATION ASSUMPTIONS 2021 2020 Exercise price per option $ 0.75 $ 0.55 0.65 Fair value per option at grant date $ 0.69 - 0.84 $ 0.49 0.55 Expected term 5 5 Expected volatility 130 335 % 141 161 % Expected dividend yield 0 % 0 % Risk-free interest rate 0.19 1.18 % 1.66 1.31 % Expense in period $ 474,839 $ 186,612 Unearned expense $ 631,785 $ 0 2015 Equity Incentive Plan On November 30, 2015, the Board of Directors authorized the 2015 Equity Incentive Plan. On January 31, 2020 we granted an option to purchase 100,000 shares to a senior member of the sales team with vesting tied directly to 2020 sales goals. On April 8, 2021, the Board terminated the 2015 Equity Incentive Plan. On January 31, 2020 an option grant of 100,000 2021 Equity Incentive Plan On March 2, 2021, our Board adopted the 2021 Nano Magic 2021 Equity Incentive Plan (the “Plan”) to allow equity compensation for those who provide services to the Company and to encourage ownership in the Company by personnel whose service to the Company is important to its continued progress, to encourage recipients to act as owners and thereby in the stockholders’ interest and to enable recipients to share in the Company’s success. Initially, 85,000 2,500 2,500 200,000 100,000 100,000 On August 10, 2021, we issued the option to purchase up to 100,000 The fair value of the options awarded to employees and service providers in March of 2021 under the 2021 Equity Plan were calculated using the Black-Scholes method and were tied to service conditions for purposes of vesting. The assumptions used in the calculations are shown below. The expected term represents the period of time that the options are expected to be outstanding. During the year ended December 31, 202 1, 43,385 42,320 23,301 SCHEDULE OF FAIR VALUE OF OPTION AWARD VALUATION ASSUMPTIONS Exercise price per option $ 0.75 Fair value per option at grant date $ 0.76 0.88 Expected term 5 Expected volatility 129 131 % Expected dividend yield 0 % Risk-free interest rate 0.33 0.93 % Warrants As described above, we issued warrants in connection with sales of our common stock. In addition, in connection with the lease for the facility in Michigan effective May 31, 2020, we issued the landlord warrants to purchase up to 410,000 1.50 311,718 As of December 31, 2021, there were outstanding and exercisable warrants to purchase 6,597,178 1.66 24.9 As of December 31, 2020, there were outstanding and exercisable warrants to purchase 5,443,440 1.59 34.1 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 12 – INCOME TAXES The Company maintains deferred tax assets and liabilities that reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The net deferred tax asset has been fully offset by a valuation allowance because of the uncertainty of the attainment of future taxable income. The items accounting for the difference between income taxes at the effective statutory rate and the provision for income taxes for the years ended December 31, 2021 and 2020 were as follows: SCHEDULE OF EFFECTIVE STATUTORY RATE OF INCOME TAXES 2021 2020 Years Ended December 31, 2021 2020 Income tax provision (benefit) at U.S. statutory rate of 21 $ 331,000 $ (164,000 ) Payroll Protection Program loan forgiveness 44,000 Change in valuation allowance (375,000 ) 164,000 Revaluation of deferred tax asset 441,000 76,000 Revaluation of valuation allowance (441,000 ) (76,000 ) Total provision for income tax $ - $ - The Company’s approximate net deferred tax assets as of December 31, 2021 and 2020 were as follows: SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS AND LIABILITIES December 31, December 31, December 31, December 31, Deferred Tax Assets: Net operating loss carryforward $ 3,355,000 $ 2,569,000 Stock-based compensation 66,000 1,000 Allowance for inventory obsolescence 14,000 24,000 Accrued compensation 1,000 6,000 Other 39,000 79,000 Total deferred tax assets 3,475,000 2,679,000 Valuation allowance (3,475,000 ) (2,679,000 ) Net deferred tax assets $ - The estimated net operating loss carryforward was approximately $ 3,355,000 The potential tax benefit arising from tax loss carryforwards prior to 2017 will expire between 2021 and 2038, while the potential tax benefits arising after 2017 currently have no expiration date. In accordance with Section 382 of the Internal Revenue Code, the usage of the Company’s net operating loss carry forwards are subject to annual limitations due to greater than 50 The Company’s 2018, 2019, 2020 and 2021 Corporate Income Tax Returns are subject to Internal Revenue Service examination. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 13 - COMMITMENTS AND CONTINGENCIES Litigation The Company may be, from time to time, subject to various administrative, regulatory, and other legal proceedings arising in the ordinary course of business. We are not currently a defendant in any proceedings. Our policy is to accrue costs for contingent liabilities, including legal proceedings or unasserted claims that may result in legal proceedings, when a liability is probable and the amount can be reasonably estimated. As of December 31, 2021, the Company has no |
CONCENTRATIONS
CONCENTRATIONS | 12 Months Ended |
Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS | NOTE 14 – CONCENTRATIONS Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of trade accounts receivable and cash deposits and investments in cash equivalent instruments. Customer Concentrations Customer concentrations for the years ended December 31, 2021 and 2020 are as follows: SCHEDULE OF CONCENTRATION RISK, CUSTOMER Product Revenues For the Years Ended 2021 2020 Customer A 16 % * - % Customer B 13 % 11 % Customer C 12 % * - % Customer D 11 % * - % Customer E * - % 10 % Total 52 % 21 % Contract Services Revenues For the Years Ended 2021 2020 Customer F 60 % 26 % Customer G 40 % * - % Customer H * - % 47 % Customer I * - % 19 % Total 100 % 92 % * Less than 10% These customers did not have material accounts receivable balances at December 31, 2021 and 2020. A reduction in sales from or loss of such customers would have a material adverse effect on our results of operations and financial condition. Geographic Concentrations of Sales For the years ended December 31, 2021 and 2020, total sales in the United States represent approximately 78% and 87% of total consolidated revenues, respectively. Germany accounted for 13% and 10% of total sales during the years ended December 31, 2021 and 2020, respectively. Vendor Concentrations Vendor concentrations for inventory purchases for the years ended December 31, 2021 and 2020 are: SCHEDULE OF CONCENTRATION RISK, CUSTOMER For the Years Ended 2021 2020 Vendor A 41 % 48 % Total 41 % 48 % The vendor above is used for chemical purchases for the production of lens care and anti-fog products. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 15 – SEGMENT REPORTING The Company’s principal operating segments coincide with the types of products to be sold. The products from which revenues are derived are consistent with the reporting structure of the Company’s internal organization. The Company’s two reportable segments for the years ended December 31, 2021 and 2020 were the Product segment and the Contract services segment (formerly the research and development segment). The Company’s chief operating decision-maker has been identified as the President, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Segment information is presented based upon the Company’s management organization structure as of December 31, 2021 and the distinctive nature of each segment. Future changes to this internal financial structure may result in changes to the reportable segments disclosed. There are no inter-segment revenue transactions and, therefore, revenues are only to external customers. As the Company primarily generates its revenues from customers in the United States, no geographical segments are presented. Segment operating profit is determined based upon internal performance measures used by the chief operating decision-maker. The Company derives the segment results from its internal management reporting system. The accounting policies the Company uses to derive reportable segment results are the same as those used for external reporting purposes. Management measures the performance of each reportable segment based upon several metrics, including net revenues, gross profit and operating loss. Management uses these results to evaluate the performance of, and to assign resources to, each of the reportable segments. The Company manages certain operating expenses separately at the corporate level and does not allocate such expenses to the segments. Segment income from operations excludes interest income/expense and other income or expenses and income taxes according to how a particular reportable segment’s management is measured. Management does not consider impairment charges, and unallocated costs in measuring the performance of the reportable segments. Segment information available with respect to these reportable business segments for the years ended December 31, 2021 and 2020 was as follows: SCHEDULE OF SEGMENT INFORMATION 2021 2020 For the Years Ended December 31, 2021 2020 Revenues: Product segment $ 4,663,508 $ 4,075,818 Contract services segment 376,105 683,422 Total segment and consolidated revenues $ 5,039,613 $ 4,759,240 Cost of revenues: Products $ 2,798,698 $ 2,514,119 Contract services segment 549,224 586,917 Total segment and consolidated cost of revenues $ 3,347,922 $ 3,101,036 Gross profit (loss): Product segment $ 1,864,810 $ 1,561,699 Contract services segment (173,119 ) 96,505 Total segment and consolidated gross profit $ 1,691,691 $ 1,658,204 Gross margin: Product segment 40.0 % 38.3 % Contract services segment -46.0 % 14.1 % Total gross margin 33.6 % 34.8 % Segment operating expenses (income): Product segment $ 3,922,878 $ 2,428,677 Product segment income (632,069 ) (133,500 ) Contract services segment 166,827 155,673 Total segment operating expenses (income), net $ 3,457,636 $ 2,450,850 Loss from operations: Product segment $ (1,425,999 ) $ (733,478 ) Contract services segment (339,946 ) (59,168 ) Total loss from operations $ (1,765,945 ) $ (792,646 ) Depreciation and amortization: Product segment $ 102,490 $ 36,946 Contract services segment 1,347 1,663 Total consolidated depreciation and amortization $ 103,837 $ 38,609 Capital additions: Product segment $ 127,013 $ 430,065 Contract services segment - - Total consolidated capital additions $ 127,013 $ 430,065 December 31, 2021 December 31, 2020 Segment total assets: Product segment $ 3,822,417 $ 4,458,227 Contract services segment 172,063 299,385 Corporate 112,121 33,888 Total consolidated total assets $ 4,106,601 $ 4,791,500 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 16 - SUBSEQUENT EVENTS On January 7, 2022, and again on February 14, 2022, the Company sold to several investors an aggregate of $ 200,000 March 31, 2025 8 1.75 On January 11, 2022, the Company sold to Magic Growth 3 LLC 222,223 388,890 222,195 11,110 four years 1.75 On February 22, 2020, the Company sold to Magic Growth 3 LLC 152,778 267,362 152,770 7,638 four years 1.75 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates for the years ended December 31, 2021 and 2020 include estimates for allowance for doubtful accounts on accounts receivable, the estimates for obsolete inventory, the useful life of property and equipment, assumptions used in assessing impairment of long-term assets, estimates of current and deferred income taxes and deferred tax valuation allowances, the fair value of non-cash equity transactions, and the fair value of equity incentives. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash For purposes of the consolidated statements of cash flows, the Company considers all highly liquid instruments with a maturity of three months or less at the purchase date and money market accounts to be cash equivalents. |
Investments | Investments Investments consist of long-term certificates of deposit. The certificate of deposit held at December 31, 2020 was renewed in 2021. It matures in May 2024 2.29 |
Accounts Receivable | Accounts Receivable The Company recognizes an allowance for losses on accounts receivable in an amount equal to the estimated probable losses net of recoveries. The allowance is based on an analysis of historical bad debt experience, current receivables aging, and expected future write-offs, as well as an assessment of specific identifiable customer accounts considered at risk or uncollectible. The expense associated with the allowance for doubtful accounts is recognized as general and administrative expense. |
Inventory | Inventory Inventory is stated at the lower of cost or net realizable value. Cost is determined using the average cost method based on prices paid for inventory items. This valuation requires us to make judgments, based on currently available information, about the likely method of disposition, such as sales to individual customers and expected recoverable values. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost and are depreciated using the straight-line method over their estimated useful lives, which range from three to ten years. Leasehold improvements are depreciated over the shorter of the useful life or lease term including scheduled renewal terms. Maintenance and repairs are charged to expense as incurred. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in other income or expense in the year of disposition. The Company examines the possibility of decreases in the value of these assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets In accordance with ASC Topic 360, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. The Company did not record any impairment charge for the year ended December 31, 2021 and 2020. |
Leases | Leases Operating leases are reflected on our balance sheet within operating lease Right-of-use ( ROU) assets and the related current and non-current operating lease liabilities. ROU assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from lease agreement. Operating lease ROU assets and liabilities are recognized at the commencement date, the date on which the lessor began making the underlying asset customizable for our use, based upon the present value of the lease payments over the respective lease term. Lease expense is recognized on a straight-line basis over the lease term, subject to any changes in the lease or expectation regarding the terms. Variable lease costs such as common area maintenance, property taxes and insurance are expensed as incurred. Lease Term The Company calculates the term for each lease agreement to include the noncancelable period specified in the agreement together with (1) the periods covered by options to extend the lease if the Company is reasonably certain to exercise that option, (2) periods covered by an option to terminate if the Company is reasonably certain not to exercise that option and (3) period covered by an option to extend (or not terminate) if controlled by the lessor. The assessment of whether the Company is reasonably certain to exercise an option to extend a lease requires significant judgement surrounding contract-based factors, asset-based factors, entity-based factors and market-based factors. Lease Payments Lease payments consist of fixed payments, less any lease incentives paid or payable to the lessee related to the use of the underlying asset during the lease term. Incremental Borrowing Rate The ROU asset and related lease liabilities recorded based on the present value of the lease payments using (1) the rate implicit in the lease or (2) the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. |
Revenue Recognition | Revenue Recognition We adopted ASC Topic 606, Revenue from Contracts with Customers Identification of the contract, or contracts, with a customer A contract with a customer exists when (i) we enter into an enforceable contract with a customer that defines each party’s rights regarding the goods or services to be transferred and identifies the payment terms related to these goods or services, (ii) the contract has commercial substance and, (iii) we determine that collection of substantially all consideration for goods or services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. We apply judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience or, in the case of a new customer, published credit and financial information pertaining to the customer. Identification of the performance obligations in the contract Performance obligations promised in a contract are identified based on the goods or services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the goods or service either on its own or together with other resources that are readily available from third parties or from us, and are distinct in the context of the contract, whereby the transfer of the goods or services is separately identifiable from other promises in the contract. When a contract includes multiple promised goods or services, we apply judgment to determine whether the promised goods or services are capable of being distinct and are distinct within the context of the contract. If these criteria are not met, the promised goods or services are accounted for as a combined performance obligation. Determination of the transaction price The transaction price is determined based on the consideration to which we will be entitled to receive in exchange for transferring goods or services to our customer. We estimate any variable consideration included in the transaction price using the expected value method that requires the use of significant estimates for discounts, cancellation periods, refunds and returns. Variable consideration is described in detail below. Allocation of the transaction price to the performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative Stand-Alone Selling Price (“SSP,”) basis. We determine SSP based on the price at which the performance obligation would be sold separately. If the SSP is not observable, we estimate the SSP based on available information, including market conditions and any applicable internally approved pricing guidelines. Recognition of revenue when, or as, we satisfy a performance obligation We recognize contract revenue over time and product revenue at a point in time, when the related performance obligation is satisfied by transferring the promised goods or services to our customer. Contract revenue is recognized based on a cost-to-cost input method. Disaggregation of Revenue For the years ended December 31, 2021 and 2020, total sales in the United States represent approximately 78 87 13 10 |
Principal versus Agent Considerations | Principal versus Agent Considerations When another party is involved in providing goods or services to our customer, we apply the principal versus agent guidance in ASC Topic 606 to determine if we are the principal or an agent to the transaction. When we control the specified goods or services before they are transferred to our customer, we report revenue gross, as principal. If we do not control the goods or services before they are transferred to our customer, revenue is reported net of the fees paid to the other party, as agent. Our evaluation to determine if we control the goods or services within ASC Topic 606 includes the following indicators: We are primarily responsible for fulfilling the promise to provide the specified good or service. When we are primarily responsible for providing the goods and services, such as when the other party is acting on our behalf, we have indication that we are the principal to the transaction. We consider if we may terminate our relationship with the other party at any time without penalty or without permission from our customer. We have inventory risk before the specified good or service has been transferred to a customer or after transfer of control to the customer. We may commit to obtaining the services of another party with or without an existing contract with our customer. In these situations, we have risk of loss as principal for any amount due to the other party regardless of the amount(s) we earn as revenue from our customer. The entity has discretion in establishing the price for the specified good or service. We have discretion in establishing the price our customer pays for the specified goods or services. |
Contract Assets | Contract Assets We capitalize costs and estimated earnings in excess of billings as a contract asset in current assets. There were no 88,694 |
Contract Liabilities | Contract Liabilities Contract liabilities consist of customer advance payments and billings in excess of revenue recognized. We may receive payments from our customers in advance of completing our performance obligations. We record contract liabilities equal to the amount of payments received in excess of revenue recognized, Contract liabilities are recorded under the caption “contract liabilities” and are reported as current liabilities on our consolidated financial statements when the time to fulfill the performance obligations under terms of our contracts is less than one year. At December 31, 2021 and 2020, contract liabilities totaled $ 45,762 90,562 |
Cost of Sales | Cost of Sales Cost of sales includes inventory costs, materials and supplies costs, internal labor and related benefits, subcontractor costs, depreciation, overhead and shipping and handling costs incurred. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs incurred relating to the purchase of inventory are included in inventory which is charged to cost of sales as products are sold. Shipping and handling costs incurred for product shipped to customers are included in cost of sales. For the years ended December 31, 2021 and 2020 shipping and handling costs amounted to $ 187,154 132,458 |
Research and Development | Research and Development Research and development costs incurred in the development of the Company’s products and under other Company sponsored research and development projects are expensed as incurred. Costs such as direct labor, direct costs, and other allocated costs incurred to perform research and development service pursuant to government and private research projects are in included in cost of sales. Research and development costs incurred in the development of the Company’s products for the years ended December 31, 2021 and 2020 were $ 34,875 56,816 |
Advertising Costs | Advertising Costs The Company participates in various advertising programs. All costs related to advertising of the Company’s products are expensed in the period incurred. Advertising costs charged to operations for the years ended December 31, 2021 and 2020 were $ 40,459 23,345 |
Federal and State Income Taxes | Federal and State Income Taxes The Company accounts for income tax using the liability method prescribed by ASC 740, “Income Taxes”. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the year in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date. The Company follows the accounting guidance for uncertainty in income taxes using the provisions of ASC 740 “Income Taxes |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation is accounted for based on the requirements of the Share-Based Payment Topic of ASC 718 which requires recognition in the financial statements of the cost of employee and director services received in exchange for an award of equity instruments over the period the employee or director is required to perform the services in exchange for the award (presumptively, the vesting period). The ASC also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award. The Company adopted ASU No. 2017-09 in 2018; its adoption did not have a material impact on its consolidated financial statements. Pursuant to ASC Topic 505-50, for share-based payments to consultants and other third-parties, compensation expense is determined at the “measurement date.” The expense is recognized over the service period of the award. Until the measurement date is reached, the total amount of compensation expense remains uncertain. The Company initially records compensation expense based on the fair value of the award at the reporting date. |
Earnings (Loss) Per Share of Common Stock | Earnings (Loss) Per Share of Common Stock ASC 260 “Earnings Per Share”, requires dual presentation of basic and diluted earnings per share (“EPS”) with a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation. Basic EPS excludes dilution. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. Basic net loss per common share is computed by dividing net loss available to common shareholders by the weighted average number of shares of common shares outstanding during the period. Diluted net loss per common share is computed by dividing net loss by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during each period. Additionally, potentially dilutive common shares consist of common stock options and warrants (using the treasury stock method). These common stock equivalents may be dilutive in the future . SCHEDULE OF ANTI-DILUTIVE PER SHARE INFORMATION December 31, December 31, Stock options 3,123,702 502,892 Stock warrants 6,597,178 5,443,440 Total 9,720,880 5,946,332 Net income (loss) per share for each class of common stock is as follows: SCHEDULE OF RECONCILIATION OF BASIC AND DILUTED NET INCOME LOSS Net income (loss) per common shares outstanding: Year Ended Year Ended Common stock $ (0.17 ) $ (0.10 ) Weighted average shares outstanding: Total weighted average common shares outstanding 9,475,560 7,558,078 |
Segment Reporting | Segment Reporting The Company uses “the management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. The Company’s chief operating decision maker is the President of the Company, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. The Company classified the reportable operating segments into (i) the development, manufacture and sale of consumer and institutional products using nanotechnology to deliver unique performance attributes (the “Product segment”) and (ii) nanotechnology design and development services for our future products and for government and private entities (the “Contract services segment”). |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Financial Instruments — Credit Losses (Topic 326) In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Measurement of expected credit losses is to be based on relevant forecasts that affect collectability. The scope of financial assets within the CECL methodology is broad and includes trade receivables from certain revenue transactions and certain off-balance sheet credit exposures. Different components of the guidance require modified retrospective or prospective adoption. ASU 2016-13 is effective for the annual reporting period beginning on or after December 15, 2020. The Company adopted this standard January 1, 2020 and there was no material impact. The Company does not believe there are any other recently issued and effective, or not yet effective pronouncements that would have or are expected to have any significant effect on the Company’s financial position, results of operations or cash flows. There have been no changes to our significant accounting policies described in Note 2 to our Annual Report on Form 10-K for the year ended December 31, 2021, that have had a material impact on our Consolidated Financial Statements and related notes. |
Reclassifications | Reclassifications Certain accounts and financial statement captions in the prior periods have been reclassified to conform to the current period financial statements. None of the reclassifications had any impact on the net loss reported in 2020. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SCHEDULE OF ANTI-DILUTIVE PER SHARE INFORMATION | These common stock equivalents may be dilutive in the future . SCHEDULE OF ANTI-DILUTIVE PER SHARE INFORMATION December 31, December 31, Stock options 3,123,702 502,892 Stock warrants 6,597,178 5,443,440 Total 9,720,880 5,946,332 |
SCHEDULE OF RECONCILIATION OF BASIC AND DILUTED NET INCOME LOSS | Net income (loss) per share for each class of common stock is as follows: SCHEDULE OF RECONCILIATION OF BASIC AND DILUTED NET INCOME LOSS Net income (loss) per common shares outstanding: Year Ended Year Ended Common stock $ (0.17 ) $ (0.10 ) Weighted average shares outstanding: Total weighted average common shares outstanding 9,475,560 7,558,078 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
SCHEDULE OF ACCOUNTS RECEIVABLE | SCHEDULE OF ACCOUNTS RECEIVABLE December 31, December 31, Accounts receivable $ 354,670 $ 1,291,742 Less: allowance for doubtful accounts (42,326 ) (61,588 ) Accounts receivable, net $ 312,344 $ 1,230,154 |
INVENTORY (Tables)
INVENTORY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORY | SCHEDULE OF INVENTORY December 31, December 31, Raw materials $ 673,518 $ 632,055 Work in progress 314,461 176,392 Finished goods 456,768 147,913 Total 1,444,747 956,360 Less: reserve for obsolescence (65,742 ) (114,666 ) Inventory, net $ 1,379,005 $ 841,694 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY AND EQUIPMENT | At December 31, 2021 and 2020, property and equipment consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT Useful Life December 31, December 31, Machinery and equipment 5 10 $ 2,770,413 $ 2,718,877 Furniture and office equipment 3 7 534,134 492,400 Leasehold improvements 2 15 140,678 106,935 3,445,225 3,318,212 Less: accumulated depreciation (2,811,092 ) (2,704,741 ) Property and equipment, net $ 634,133 $ 613,471 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases | |
Schedule Of Remaining Lease Payments | For operating leases, we calculated ROU assets and lease liabilities based on the present value of the remaining lease payments as of the date of adoption using the IBR as of that date. Schedule Of Remaining Lease Payments December 31, 2021 December 31, 2020 Operating lease liabilities $ 1,087,596 $ 1,309,912 Right-of-use assets $ 1,309,912 $ 1,518,308 |
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS | Future minimum lease payments under leases that had initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2021, are as follows: SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS Operating Leases Finance Leases 2022 $ 247,906 $ 54,394 2023 256,688 42,830 2024 220,428 25,620 2025 220,989 - 2026 228,297 - Thereafter - Less: impact of discounting ) (15,911 ) Present value of lease liabilities 1,087,596 106,933 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF FUTURE PAYMENTS OF NOTES PAYABLE | Future payments of notes payable are as follows: SCHEDULE OF FUTURE PAYMENTS OF NOTES PAYABLE Year As of December 31, 2021 2022 $ 41,677 Thereafter 54,883 Total $ 96,560 |
STOCKHOLDERS_ EQUITY (Tables)
STOCKHOLDERS’ EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
SCHEDULE OF STOCK OPTION PLAN ACTIVITY | Stock options outstanding are to purchase common stock. Stock option activities for the years ended December 31, 2021 and 2020 are summarized as follows: SCHEDULE OF STOCK OPTION PLAN ACTIVITY Number of Options Weighted Weighted Aggregate Balance Outstanding, December 31, 2019 455,502 $ 1.24 $ - Exercised - - Forfeited or expired (52,610 ) 0.61 Granted 100,000 0.65 Balance Outstanding, December 31, 2020 502,892 $ 0.89 3.23 $ 220,000 Exercised - Forfeited or expired (116,690 ) 1.83 Granted 2,737,500 0.80 Balance Outstanding, December 31, 2021 3,123,702 $ 0.77 4.93 $ - Exercisable, December 31, 2021 867,624 $ 0.72 2.96 $ - |
SCHEDULE OF STOCK OPTIONS VESTING | SCHEDULE OF STOCK OPTIONS VESTING The right to purchase: Consisting of: Is vested on: Tranche 1 150,000 June 30, 2021 Tranche 2 150,000 December 31, 2021 Tranche 3 150,000 June 30, 2022 Tranche 4 150,000 December 31, 2022 Tranche 5 150,000 June 30, 2023 Tranche 6 150,000 December 31, 2023 Tranche 7 Up to 150,000 If the aggregate sales bonus payable for 2021 exceeds $240,000 Tranche 8 Up to 150,000 If the aggregate sales bonus payable for 2022 exceeds $260,000 Tranche 9 Up to 150,000 If the aggregate sales bonus payable for 2023 exceeds $300,000 Tranche 10 Up to 1 If a profit bonus is payable under the employment contract and the Board determines to pay some or all of it with options, the number vested as determined by the Board |
SCHEDULE OF FAIR VALUE OF OPTION AWARD VALUATION ASSUMPTIONS | The fair value of the options awarded outside of any plan was calculated using the Black-Scholes method. The assumptions used in the calculations are shown below. The expected term represents the period of time that the options are expected to be outstanding. SCHEDULE OF FAIR VALUE OF OPTION AWARD VALUATION ASSUMPTIONS 2021 2020 Exercise price per option $ 0.75 $ 0.55 0.65 Fair value per option at grant date $ 0.69 - 0.84 $ 0.49 0.55 Expected term 5 5 Expected volatility 130 335 % 141 161 % Expected dividend yield 0 % 0 % Risk-free interest rate 0.19 1.18 % 1.66 1.31 % Expense in period $ 474,839 $ 186,612 Unearned expense $ 631,785 $ 0 |
2021 Equity Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
SCHEDULE OF FAIR VALUE OF OPTION AWARD VALUATION ASSUMPTIONS | SCHEDULE OF FAIR VALUE OF OPTION AWARD VALUATION ASSUMPTIONS Exercise price per option $ 0.75 Fair value per option at grant date $ 0.76 0.88 Expected term 5 Expected volatility 129 131 % Expected dividend yield 0 % Risk-free interest rate 0.33 0.93 % |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF EFFECTIVE STATUTORY RATE OF INCOME TAXES | The items accounting for the difference between income taxes at the effective statutory rate and the provision for income taxes for the years ended December 31, 2021 and 2020 were as follows: SCHEDULE OF EFFECTIVE STATUTORY RATE OF INCOME TAXES 2021 2020 Years Ended December 31, 2021 2020 Income tax provision (benefit) at U.S. statutory rate of 21 $ 331,000 $ (164,000 ) Payroll Protection Program loan forgiveness 44,000 Change in valuation allowance (375,000 ) 164,000 Revaluation of deferred tax asset 441,000 76,000 Revaluation of valuation allowance (441,000 ) (76,000 ) Total provision for income tax $ - $ - |
SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS AND LIABILITIES | The Company’s approximate net deferred tax assets as of December 31, 2021 and 2020 were as follows: SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS AND LIABILITIES December 31, December 31, December 31, December 31, Deferred Tax Assets: Net operating loss carryforward $ 3,355,000 $ 2,569,000 Stock-based compensation 66,000 1,000 Allowance for inventory obsolescence 14,000 24,000 Accrued compensation 1,000 6,000 Other 39,000 79,000 Total deferred tax assets 3,475,000 2,679,000 Valuation allowance (3,475,000 ) (2,679,000 ) Net deferred tax assets $ - |
CONCENTRATIONS (Tables)
CONCENTRATIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Concentration Risk [Line Items] | |
SCHEDULE OF CONCENTRATION RISK, CUSTOMER | Customer concentrations for the years ended December 31, 2021 and 2020 are as follows: SCHEDULE OF CONCENTRATION RISK, CUSTOMER Product Revenues For the Years Ended 2021 2020 Customer A 16 % * - % Customer B 13 % 11 % Customer C 12 % * - % Customer D 11 % * - % Customer E * - % 10 % Total 52 % 21 % Contract Services Revenues For the Years Ended 2021 2020 Customer F 60 % 26 % Customer G 40 % * - % Customer H * - % 47 % Customer I * - % 19 % Total 100 % 92 % * Less than 10% |
Vendor [Member] | |
Concentration Risk [Line Items] | |
SCHEDULE OF CONCENTRATION RISK, CUSTOMER | Vendor concentrations for inventory purchases for the years ended December 31, 2021 and 2020 are: SCHEDULE OF CONCENTRATION RISK, CUSTOMER For the Years Ended 2021 2020 Vendor A 41 % 48 % Total 41 % 48 % |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
SCHEDULE OF SEGMENT INFORMATION | Segment information available with respect to these reportable business segments for the years ended December 31, 2021 and 2020 was as follows: SCHEDULE OF SEGMENT INFORMATION 2021 2020 For the Years Ended December 31, 2021 2020 Revenues: Product segment $ 4,663,508 $ 4,075,818 Contract services segment 376,105 683,422 Total segment and consolidated revenues $ 5,039,613 $ 4,759,240 Cost of revenues: Products $ 2,798,698 $ 2,514,119 Contract services segment 549,224 586,917 Total segment and consolidated cost of revenues $ 3,347,922 $ 3,101,036 Gross profit (loss): Product segment $ 1,864,810 $ 1,561,699 Contract services segment (173,119 ) 96,505 Total segment and consolidated gross profit $ 1,691,691 $ 1,658,204 Gross margin: Product segment 40.0 % 38.3 % Contract services segment -46.0 % 14.1 % Total gross margin 33.6 % 34.8 % Segment operating expenses (income): Product segment $ 3,922,878 $ 2,428,677 Product segment income (632,069 ) (133,500 ) Contract services segment 166,827 155,673 Total segment operating expenses (income), net $ 3,457,636 $ 2,450,850 Loss from operations: Product segment $ (1,425,999 ) $ (733,478 ) Contract services segment (339,946 ) (59,168 ) Total loss from operations $ (1,765,945 ) $ (792,646 ) Depreciation and amortization: Product segment $ 102,490 $ 36,946 Contract services segment 1,347 1,663 Total consolidated depreciation and amortization $ 103,837 $ 38,609 Capital additions: Product segment $ 127,013 $ 430,065 Contract services segment - - Total consolidated capital additions $ 127,013 $ 430,065 December 31, 2021 December 31, 2020 Segment total assets: Product segment $ 3,822,417 $ 4,458,227 Contract services segment 172,063 299,385 Corporate 112,121 33,888 Total consolidated total assets $ 4,106,601 $ 4,791,500 |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Operating Income (Loss) | $ 1,765,945 | $ 792,646 |
Net Cash Provided by (Used in) Operating Activities | 1,377,056 | 2,001,044 |
[custom:WorkingCapital] | 1,003,127 | |
Cash | $ 242,474 | $ 288,134 |
SCHEDULE OF ANTI-DILUTIVE PER S
SCHEDULE OF ANTI-DILUTIVE PER SHARE INFORMATION (Details) - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 9,720,880 | 5,946,332 |
Equity Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 3,123,702 | 502,892 |
Warrant [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 6,597,178 | 5,443,440 |
SCHEDULE OF RECONCILIATION OF B
SCHEDULE OF RECONCILIATION OF BASIC AND DILUTED NET INCOME LOSS (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Total weighted average common shares outstanding | 9,475,560 | 7,558,078 |
Common Stock [Member] | ||
Earnings Per Share, Basic and Diluted | $ (0.17) | $ (0.10) |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Product Information [Line Items] | ||
Investments on deposits maturity date | May 31, 2024 | |
Investment interest rate | 2.29% | |
Contract with Customer, Asset, after Allowance for Credit Loss, Current | $ 0 | $ 88,694 |
Contract liabilities | 45,762 | 90,562 |
Shipping and handling costs | 187,154 | 132,458 |
Research and development expense | 34,875 | 56,816 |
Advertising expense | $ 40,459 | $ 23,345 |
Geographic Concentration Risk [Member] | UNITED STATES | Revenue Benchmark [Member] | ||
Product Information [Line Items] | ||
Percentage of sales | 78.00% | 87.00% |
Geographic Concentration Risk [Member] | GERMANY | Revenue Benchmark [Member] | ||
Product Information [Line Items] | ||
Percentage of sales | 13.00% | 10.00% |
SCHEDULE OF ACCOUNTS RECEIVABLE
SCHEDULE OF ACCOUNTS RECEIVABLE (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||
Accounts receivable | $ 354,670 | $ 1,291,742 |
Less: allowance for doubtful accounts | (42,326) | (61,588) |
Accounts receivable, net | $ 312,344 | $ 1,230,154 |
ACCOUNTS RECEIVABLE (Details Na
ACCOUNTS RECEIVABLE (Details Narrative) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||
Accounts Receivable, Allowance for Credit Loss | $ 18,251 | $ 53,790 |
SCHEDULE OF INVENTORY (Details)
SCHEDULE OF INVENTORY (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 673,518 | $ 632,055 |
Work in progress | 314,461 | 176,392 |
Finished goods | 456,768 | 147,913 |
Total | 1,444,747 | 956,360 |
Less: reserve for obsolescence | (65,742) | (114,666) |
Inventory, net | $ 1,379,005 | $ 841,694 |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 3,445,225 | $ 3,318,212 |
Less: accumulated depreciation | (2,811,092) | (2,704,741) |
Property and equipment, net | 634,133 | 613,471 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,770,413 | 2,718,877 |
Machinery and Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment Useful Life | 5 years | |
Machinery and Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment Useful Life | 10 years | |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 534,134 | 492,400 |
Furniture and Fixtures [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment Useful Life | 3 years | |
Furniture and Fixtures [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment Useful Life | 7 years | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 140,678 | $ 106,935 |
Leasehold Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment Useful Life | 2 years | |
Leasehold Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment Useful Life | 15 years |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization expense | $ 106,351 | $ 38,609 |
Proceeds from Sale of Property, Plant, and Equipment | $ 450 |
Schedule Of Remaining Lease Pay
Schedule Of Remaining Lease Payments (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Leases | ||
Operating lease liabilities | $ 1,087,596 | $ 1,309,912 |
Right-of-use assets | $ 1,309,912 | $ 1,518,308 |
SCHEDULE OF FUTURE MINIMUM LEAS
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Leases | ||
Operating Lease, 2021 | $ 247,906 | |
Finance Lease, 2021 | 54,394 | |
Operating Lease, 2022 | 256,688 | |
Finance Lease, 2022 | 42,830 | |
Operating Lease, 2023 | 220,428 | |
Finance Lease, 2023 | 25,620 | |
Operating Lease, 2024 | 220,989 | |
Finance Lease, 2024 | ||
Lessee, Operating Lease, Liability, to be Paid, Year Five | 228,297 | |
Finance Lease, Liability, to be Paid, Year Five | ||
Operating Lease, Thereafter | 175,334 | |
Finance Lease, Thereafter | ||
Operating, Lease Less: impact of discounting | (262,046) | |
Finance Lease, Less: impact of discounting | (15,911) | |
Operating Lease, Present value of lease liabilities | 1,087,596 | $ 1,309,912 |
Finance Lease, Present value of lease liabilities | $ 106,933 |
LEASES (Details Narrative)
LEASES (Details Narrative) | Sep. 24, 2020USD ($) | Aug. 11, 2020USD ($) | May 31, 2020USD ($)ft² | Jun. 21, 2019USD ($)ft² | Dec. 10, 2018USD ($)ft² | Sep. 20, 2017USD ($)ft² | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Lease office space, area | ft² | 29,220 | 1,200 | ||||||
Operating lease, description | The lease has an initial term of seven years with a renewal option at the end of the initial term for an additional 3-year term, and a second renewal option thereafter for an additional 5-year term. The renewal term is not included in the calculation of the operating lease liability. As the sole tenant, we are responsible for all taxes, ordinary maintenance, snow removal and other ordinary operating expenses. Rent is $6.50 per square foot, increasing by $0.25 per year. During the first three years we also have the right to buy up to a 49% interest in Magic Research LLC for a price equal to 49% of the contributions received from other members | |||||||
Operating lease payments, monthly | $ 1,529 | |||||||
Fair Value Adjustment of Warrants | $ 311,718 | |||||||
Operating lease cost | $ 260,308 | $ 219,305 | ||||||
Sublease income | 56,088 | 54,990 | ||||||
Variable lease cost | 48,890 | 12,524 | ||||||
Short Term and Long Term Debt [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Finance Lease, Liability | 106,935 | 150,738 | ||||||
Finance Lease, Interest Expense | 12,346 | 2,844 | ||||||
Furniture [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Finance Lease, Liability | $ 60,684 | 34,387 | ||||||
Lessee, Finance Lease, Term of Contract | 36 months | |||||||
Finance Lease, Principal Payments | $ 1,972 | |||||||
Finance Lease, Liability, Current | 21,052 | |||||||
Finance Lease, Liability, Noncurrent | 13,335 | |||||||
Forklift [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Finance Lease, Liability | $ 14,250 | 8,166 | ||||||
Lessee, Finance Lease, Term of Contract | 36 months | |||||||
Finance Lease, Principal Payments | $ 425 | |||||||
Finance Lease, Liability, Current | 4,822 | |||||||
Finance Lease, Liability, Noncurrent | 3,344 | |||||||
Production Equipment [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Finance Lease, Liability | 64,380 | $ 85,000 | ||||||
Lessee, Finance Lease, Term of Contract | 48 months | |||||||
Finance Lease, Principal Payments | $ 2,135 | |||||||
Finance Lease, Liability, Current | 20,016 | |||||||
Finance Lease, Liability, Noncurrent | $ 44,364 | |||||||
Three-Year Lease Agreement [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Lease office space, area | ft² | 22,172 | |||||||
Operating lease, description | beginning September 20, 2017 ended September 20, 2020 | |||||||
Operating lease payments, monthly | $ 8,688 | |||||||
Five-Year Lease Agreement [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Lease office space, area | ft² | 3,742 | |||||||
Operating lease, description | beginning January 2019 and ending February 29, 2024 | |||||||
Operating lease payments, monthly | $ 3,472 | |||||||
Increasing percentage in monthly payments | 300.00% |
BANK LOANS AND LINES OF REVOL_2
BANK LOANS AND LINES OF REVOLVING CREDIT FACILITY (Details Narrative) - USD ($) | May 08, 2020 | Feb. 01, 2021 |
Amegy Bank of Texas [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Loans Payable to Bank | $ 79,305 | |
Small Business Administration Paycheck Protection Program [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Debt Instrument, Face Amount | $ 130,900 | |
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | |
Debt Instrument, Periodic Payment | $ 7,330 |
ACCOUNTS RECEIVABLE FACTORING (
ACCOUNTS RECEIVABLE FACTORING (Details Narrative) | Sep. 01, 2020USD ($) |
Accounts Receivable Factoring | |
Receivables, Net, Current | $ 11,337 |
SCHEDULE OF FUTURE PAYMENTS OF
SCHEDULE OF FUTURE PAYMENTS OF NOTES PAYABLE (Details) | Dec. 31, 2021USD ($) |
Debt Disclosure [Abstract] | |
2022 | $ 41,677 |
Thereafter | 54,883 |
Total | $ 96,560 |
NOTES PAYABLE (Details Narrativ
NOTES PAYABLE (Details Narrative) - USD ($) | Jun. 18, 2019 | Feb. 10, 2015 | Jan. 31, 2017 | Dec. 31, 2021 | Dec. 31, 2020 | Oct. 20, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Notes Payable, Current | $ 87,567 | $ 139,641 | ||||
Notes Payable, Noncurrent | 115,928 | 286,225 | ||||
Accrued and unpaid deferred salary | $ 6,000 | |||||
Departing Employee [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Principal amount | $ 17,425 | |||||
Debt maturity year | due in January 2027 | |||||
Nano Magic LLC [Member] | Equipment Note [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Principal amount | $ 373,000 | |||||
Debt Instrument, Frequency of Periodic Payment | monthly payments were reduced to $4,052 per month | Equipment Note is payable in 60 equal monthly instalments payments | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.29% | 4.35% | ||||
Debt Instrument, Maturity Date | Apr. 10, 2022 | |||||
Principal amount due | $ 41,677 | 86,098 | ||||
Notes Payable, Current | 44,493 | |||||
Notes Payable, Noncurrent | $ 41,605 | |||||
Four Employees [Member] | Four Promissory Note Agreements [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Debt instruments interest rate at period | 3.00% | |||||
Four Employees [Member] | Three Promissory Note Agreements [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Principal amount due | $ 37,458 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||
Advances fron related party | $ 113,952 | |
Ron Berman [Member] | ||
Related Party Transaction [Line Items] | ||
Legal and consulting fees | $ 167,350 | $ 212,700 |
Tom Berman and Ron Berman [Member] | ||
Related Party Transaction [Line Items] | ||
Economic interest percentage | 5.00% | |
Contribution description | The lease for the Michigan facility gives us the right, during the first three years of the lease, to buy up to a 49% interest in the landlord for a price equal to 49% of the contributions received from other members | |
MrRicker And MsRickert [Member] | ||
Related Party Transaction [Line Items] | ||
Due to Related Parties, Current | $ 92,887 | 145,383 |
Accrued Payroll Taxes | $ 16,000 | $ 16,000 |
SCHEDULE OF STOCK OPTION PLAN A
SCHEDULE OF STOCK OPTION PLAN ACTIVITY (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | ||
Number of Options, Outstanding, Beginning balance | 502,892 | 455,502 |
Weighted Average Exercise Price, Outstanding, Beginning balance | $ 0.89 | $ 1.24 |
Aggregate Intrinsic Value, Share Outstanding, Ending balance | $ 220,000 | |
Number of Options, Exercised | ||
Number of Options, Exercised | ||
Number of Options, Forfeited or expired | (116,690) | (52,610) |
Number of Options, Forfeited or expired | $ 1.83 | $ 0.61 |
Number of Options, Granted | 2,737,500 | 100,000 |
Weighted Average Exercise Price, Granted | $ 0.80 | $ 0.65 |
Weighted Average Remaining Contractual Terms (Years), Outstanding, Ending | 4 years 11 months 4 days | 3 years 2 months 23 days |
Number of Options, Outstanding, Ending balance | 3,123,702 | 502,892 |
Weighted Average Exercise Price, Outstanding, Ending balance | $ 0.77 | $ 0.89 |
Aggregate Intrinsic Value, Share Outstanding, Ending balance | $ 220,000 | |
Number of Options, Exercisable, Ending balance | 867,624 | |
Weighted Average Exercise Price, Exercisable Ending balance | $ 0.72 | |
Weighted Average Remaining Contractual Term (Years), Exercisable | 2 years 11 months 15 days | |
Aggregate Intrinsic Value, Share Exercisable |
SCHEDULE OF STOCK OPTIONS VESTI
SCHEDULE OF STOCK OPTIONS VESTING (Details) - President and Chief Executive Officer [Member] - shares | Mar. 03, 2021 | Mar. 02, 2021 |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Number of stock options, vested | 2,350,000 | |
Tranche One [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Number of stock options, vested | 150,000 | |
Stock options vesting period, description | June 30, 2021 | |
Tranche Two [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Number of stock options, vested | 150,000 | |
Stock options vesting period, description | December 31, 2021 | |
Tranche Three [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Number of stock options, vested | 150,000 | |
Stock options vesting period, description | June 30, 2022 | |
Tranche Four [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Number of stock options, vested | 150,000 | |
Stock options vesting period, description | December 31, 2022 | |
Tranche Five [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Number of stock options, vested | 150,000 | |
Stock options vesting period, description | June 30, 2023 | |
Tranche Six [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Number of stock options, vested | 150,000 | |
Stock options vesting period, description | December 31, 2023 | |
Tranche Seven [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Stock options vesting period, description | If the aggregate sales bonus payable for 2021 exceeds $240,000 | |
Tranche Seven [Member] | Maximum [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Number of stock options, vested | 150,000 | |
Tranche Eight [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Stock options vesting period, description | If the aggregate sales bonus payable for 2022 exceeds $260,000 | |
Tranche Eight [Member] | Maximum [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Number of stock options, vested | 150,000 | |
Tranche Nine [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Stock options vesting period, description | If the aggregate sales bonus payable for 2023 exceeds $300,000 | |
Tranche Nine [Member] | Maximum [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Number of stock options, vested | 150,000 | |
Tranche Ten [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Stock options vesting period, description | If a profit bonus is payable under the employment contract and the Board determines to pay some or all of it with options, the number vested as determined by the Board | |
Tranche Ten [Member] | Maximum [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Number of stock options, vested | 1,000,000 |
SCHEDULE OF FAIR VALUE OF OPTIO
SCHEDULE OF FAIR VALUE OF OPTION AWARD VALUATION ASSUMPTIONS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair value per option at grant date | $ 0.75 | |
Expected term | 5 years | 5 years |
Expected dividend yield | 130.00% | 141.00% |
Expected volatility, maximum | 335.00% | 161.00% |
Expected dividend yield | 0.00% | 0.00% |
Expense in period | $ 474,839 | $ 186,612 |
Unearned expense | $ 631,785 | 0 |
2021 Equity Incentive Plan [Member] | ||
Fair value per option at grant date | $ 0.75 | |
Expected term | 5 years | |
Expected dividend yield | 0.00% | |
Unearned expense | $ 23,301 | |
Minimum [Member] | ||
Fair value per option at grant date | $ 0.55 | |
Fair value per option at grant date | $ 0.69 | $ 0.49 |
Risk-free interest rate | 0.19% | 1.66% |
Minimum [Member] | 2021 Equity Incentive Plan [Member] | ||
Fair value per option at grant date | $ 0.76 | |
Expected dividend yield | 129.00% | |
Risk-free interest rate | 0.33% | |
Maximum [Member] | ||
Fair value per option at grant date | $ 0.65 | |
Fair value per option at grant date | $ 0.84 | $ 0.55 |
Risk-free interest rate | 1.18% | 1.31% |
Maximum [Member] | 2021 Equity Incentive Plan [Member] | ||
Fair value per option at grant date | $ 0.88 | |
Expected dividend yield | 131.00% | |
Risk-free interest rate | 0.93% |
STOCKHOLDERS_ EQUITY (Details N
STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($) | Dec. 15, 2021 | Jun. 21, 2021 | May 31, 2021 | Apr. 08, 2021 | Mar. 17, 2021 | Mar. 02, 2021 | Feb. 16, 2021 | Sep. 14, 2020 | Aug. 12, 2020 | Jul. 13, 2020 | May 31, 2020 | Mar. 26, 2020 | Mar. 24, 2020 | Feb. 24, 2020 | Feb. 12, 2020 | Jan. 22, 2020 | Apr. 03, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Aug. 10, 2021 | Mar. 03, 2021 | Jul. 02, 2020 | Jan. 31, 2020 |
Class of Stock [Line Items] | |||||||||||||||||||||||
Common stock, shares authorized | 30,000,000 | 30,000,000 | 7,200,000 | ||||||||||||||||||||
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | |||||||||||||||||||||
Preferred stock, shares authorized | 100,000 | 100,000 | 100,000 | ||||||||||||||||||||
Preferred stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||||||||||||||
Common stock, voting rights | The rights of each share of common are the same with respect to dividends, distributions and rights upon liquidation. Holders of common stock each have one vote per share | ||||||||||||||||||||||
Shares issued price per share | $ 1 | ||||||||||||||||||||||
Stock Issued During Period, Value, Issued for Services | $ 75,000 | $ 12,000 | |||||||||||||||||||||
Number of stock issued for services and stock appreciation rights | 5,000 | ||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 36,758 | ||||||||||||||||||||||
Sale of Stock, Price Per Share | $ 0.65 | ||||||||||||||||||||||
Proceeds from private placement | $ 23,897 | ||||||||||||||||||||||
Warrants issued to purchase the additional shares | 36,780 | ||||||||||||||||||||||
Warrant exercise price | $ 1.50 | ||||||||||||||||||||||
Warrants and Rights Outstanding, Term | 4 years | ||||||||||||||||||||||
Proceeds from warrants exercise | $ 1,103 | ||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 36,765 | ||||||||||||||||||||||
Number of stock options granted | 2,737,500 | 100,000 | |||||||||||||||||||||
[custom:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsUnearnedExpense] | $ 631,785 | $ 0 | |||||||||||||||||||||
Fair value of warrants | $ 311,718 | ||||||||||||||||||||||
2021 Equity Incentive Plan [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 43,385 | ||||||||||||||||||||||
Number of option granted | 100,000 | ||||||||||||||||||||||
Number of shares available for issuance | 2,500 | 85,000 | |||||||||||||||||||||
Number of stock options granted | 2,500 | ||||||||||||||||||||||
Number of shares available for future issuance | 200,000 | ||||||||||||||||||||||
Number of share options, granted and forfeited | 100,000 | ||||||||||||||||||||||
Share-based Payment Arrangement, Expense | $ 42,320 | ||||||||||||||||||||||
[custom:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsUnearnedExpense] | $ 23,301 | ||||||||||||||||||||||
2015 Incentive Plan [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Number of option granted | 100,000 | ||||||||||||||||||||||
Consulting Agreement [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Number of option granted | 100,000 | ||||||||||||||||||||||
Consulting Agreement [Member] | 2021 Equity Incentive Plan [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Number of option granted | 100,000 | ||||||||||||||||||||||
Share-based Payment Arrangement, Tranche One [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 100,000 | 450,000 | |||||||||||||||||||||
Magic Growth LLC [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Proceeds from private placement | $ 481,539 | $ 961,538 | |||||||||||||||||||||
Number of shares sold, shares | 385,231 | 769,231 | 130,770 | 461,538 | 388,462 | ||||||||||||||||||
Warrants issued to purchase the additional shares | 385,225 | 769,225 | |||||||||||||||||||||
Warrant exercise price | $ 2 | $ 2 | $ 2 | $ 2 | $ 2 | ||||||||||||||||||
Warrants and Rights Outstanding, Term | 4 years | 4 years | 4 years | ||||||||||||||||||||
Proceeds from warrants exercise | $ 19,260 | $ 38,463 | $ 6,537 | $ 23,079 | $ 19,422 | ||||||||||||||||||
Number of shares sold, value | $ 163,463 | $ 576,923 | $ 485,578 | ||||||||||||||||||||
Purchase of warrant | 130,750 | 461,525 | 388,450 | ||||||||||||||||||||
Common Stock [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 794,110 | ||||||||||||||||||||||
Sale of Stock, Price Per Share | $ 0.65 | ||||||||||||||||||||||
Proceeds from private placement | $ 516,177 | ||||||||||||||||||||||
Number of shares sold, shares | 551,600 | ||||||||||||||||||||||
Warrants issued to purchase the additional shares | 794,110 | ||||||||||||||||||||||
Warrant exercise price | $ 1.50 | ||||||||||||||||||||||
Warrants and Rights Outstanding, Term | 4 years | ||||||||||||||||||||||
Proceeds from warrants exercise | $ 23,823 | ||||||||||||||||||||||
Number of shares issued | 242,518 | ||||||||||||||||||||||
Warrant [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Warrant exercise price | $ 1.66 | $ 1.59 | |||||||||||||||||||||
Warrants outstanding and exercisable warrants | 6,597,178 | 5,443,440 | |||||||||||||||||||||
Warrants, weighted average remaining contractual term | 24 months 27 days | 34 months 3 days | |||||||||||||||||||||
President and Chief Executive Officer [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 2,350,000 | ||||||||||||||||||||||
President and CEO [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Shares issued price per share | $ 0.75 | $ 0.75 | |||||||||||||||||||||
Ron Berman [Member] | Consulting Agreement [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | His cash compensation is $10,000 per month, with bonuses from 1% to 3% on certain sales. He was also granted an option to purchase up to 100,000 shares at an exercise price of $0.75. Vesting for 75,000 shares is based on sales by Nano Magic LLC in 2021; 12,500 if sales in 2021 are $4 million, with additional tranches of 12,500 shares for each additional $1 million in sales. Vesting for the remaining 25,000 shares will occur if the Company realizes $1 million in EBITDA for 2021 | ||||||||||||||||||||||
Salary and wage, excluding cost of good and service sold | $ 10,000 | ||||||||||||||||||||||
Number of option granted | 100,000 | ||||||||||||||||||||||
Landlord [Member] | Warrant [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Warrants issued to purchase the additional shares | 410,000 | ||||||||||||||||||||||
Warrant exercise price | $ 1.50 | ||||||||||||||||||||||
Fair value of warrants | $ 311,718 | ||||||||||||||||||||||
Common Stock [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Stock Issued During Period, Shares, Issued for Services | 21,048 | ||||||||||||||||||||||
Shares issued price per share | $ 0.57 | $ 0.55 | |||||||||||||||||||||
Stock Issued During Period, Value, Issued for Services | $ 12,000 | ||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 205,883 | 198,530 | |||||||||||||||||||||
Sale of Stock, Price Per Share | $ 0.65 | $ 0.65 | |||||||||||||||||||||
Proceeds from private placement | $ 133,824 | $ 129,044 | |||||||||||||||||||||
Number of shares sold, shares | 205,868 | 198,516 | |||||||||||||||||||||
Warrants issued to purchase the additional shares | 198,516 | 198,516 | |||||||||||||||||||||
Warrant exercise price | $ 1.50 | $ 1.50 | |||||||||||||||||||||
Warrants and Rights Outstanding, Term | 4 years | 4 years | |||||||||||||||||||||
Proceeds from warrants exercise | $ 6,176 | $ 5,955 | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 550,000 | ||||||||||||||||||||||
Common Stock [Member] | Director [Member] | |||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||
Stock Issued During Period, Shares, Issued for Services | 45,333 | 37,890 | |||||||||||||||||||||
Shares issued price per share | $ 0.75 | $ 0.95 | |||||||||||||||||||||
Stock Issued During Period, Value, Issued for Services | $ 34,000 | $ 36,000 |
SCHEDULE OF EFFECTIVE STATUTORY
SCHEDULE OF EFFECTIVE STATUTORY RATE OF INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Income tax provision (benefit) at U.S. statutory rate of 21% | $ 331,000 | $ (164,000) |
Payroll Protection Program loan forgiveness | 44,000 | |
Change in valuation allowance | (375,000) | 164,000 |
Revaluation of deferred tax asset | 441,000 | 76,000 |
Revaluation of valuation allowance | 441,000 | 76,000 |
Total provision for income tax |
SCHEDULE OF EFFECTIVE STATUTO_2
SCHEDULE OF EFFECTIVE STATUTORY RATE OF INCOME TAXES (Details) (Parenthetical) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Statutory income tax rate | 21.00% |
SCHEDULE OF COMPONENTS OF DEFER
SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS AND LIABILITIES (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforward | $ 3,355,000 | $ 2,569,000 |
Stock-based compensation | 66,000 | 1,000 |
Allowance for inventory obsolescence | 14,000 | 24,000 |
Accrued compensation | 1,000 | 6,000 |
Other | 39,000 | 79,000 |
Total deferred tax assets | 3,475,000 | 2,679,000 |
Valuation allowance | (3,475,000) | (2,679,000) |
Net deferred tax assets |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Income Tax Disclosure [Abstract] | |
Operating loss carryforwards | $ 3,355,000 |
Tax Credit Carryforward, Description | The potential tax benefit arising from tax loss carryforwards prior to 2017 will expire between 2021 and 2038, while the potential tax benefits arising after 2017 currently have no expiration date. |
Ownership Interests | 50.00% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation settlement | $ 0 |
SCHEDULE OF CONCENTRATION RISK,
SCHEDULE OF CONCENTRATION RISK, CUSTOMER (Details) - Customer Concentration Risk [Member] | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | ||||
Product Revenues [Member] | Customer A [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 16.00% | [1] | |||
Product Revenues [Member] | Customer B [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 13.00% | 11.00% | |||
Product Revenues [Member] | Customer C [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 12.00% | [1] | |||
Product Revenues [Member] | Customer D [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 11.00% | [1] | |||
Product Revenues [Member] | Customer E [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | [1] | ||||
Product Revenues [Member] | Customer [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 52.00% | 21.00% | |||
Contract Services Revenues [Member] | Customer E [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 10.00% | ||||
Contract Services Revenues [Member] | Customer [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 100.00% | 92.00% | |||
Contract Services Revenues [Member] | Customer F [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 60.00% | 26.00% | |||
Contract Services Revenues [Member] | Customer G [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 40.00% | [1] | |||
Contract Services Revenues [Member] | Customer H [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | [1] | 47.00% | |||
Contract Services Revenues [Member] | Customer I [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | [1] | 19.00% | |||
Inventory Purchases [Member] | Vendor A [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 41.00% | 48.00% | |||
Inventory Purchases [Member] | Vendor [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 41.00% | 48.00% | |||
[1] | Less than 10% |
CONCENTRATIONS (Details Narrati
CONCENTRATIONS (Details Narrative) - Customer Concentration Risk [Member] - Revenue Benchmark [Member] - Customer [Member] | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
UNITED STATES | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 78.00% | 87.00% |
GERMANY | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 13.00% | 10.00% |
SCHEDULE OF SEGMENT INFORMATION
SCHEDULE OF SEGMENT INFORMATION (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Total segment and consolidated revenues | $ 5,039,613 | $ 4,759,240 |
Total segment and consolidated cost of revenues | 3,347,922 | 3,101,036 |
Total segment and consolidated gross profit | $ 1,691,691 | $ 1,658,204 |
Total gross margin | 33.60% | 34.80% |
Total segment operating expenses (income), net | $ 3,457,636 | $ 2,450,850 |
Product segment income | (632,069) | (133,500) |
Total loss from operations | (1,765,945) | (792,646) |
Total consolidated depreciation and amortization | 103,837 | 38,609 |
Total consolidated capital additions | 127,013 | 430,065 |
Total consolidated total assets | 4,106,601 | 4,791,500 |
Product Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total segment and consolidated revenues | 4,663,508 | 4,075,818 |
Total segment and consolidated cost of revenues | 2,798,698 | 2,514,119 |
Total segment and consolidated gross profit | $ 1,864,810 | $ 1,561,699 |
Total gross margin | 40.00% | 38.30% |
Total segment operating expenses (income), net | $ 3,922,878 | $ 2,428,677 |
Total loss from operations | (1,425,999) | (733,478) |
Contract services segment | 102,490 | 36,946 |
Contract services segment | 127,013 | 430,065 |
Total consolidated total assets | 3,822,417 | 4,458,227 |
Contract Services Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total segment and consolidated revenues | 376,105 | 683,422 |
Total segment and consolidated cost of revenues | 549,224 | 586,917 |
Total segment and consolidated gross profit | $ (173,119) | $ 96,505 |
Total gross margin | (46.00%) | 14.10% |
Total segment operating expenses (income), net | $ 166,827 | $ 155,673 |
Total loss from operations | (339,946) | (59,168) |
Contract services segment | 1,347 | 1,663 |
Contract services segment | ||
Total consolidated total assets | 172,063 | 299,385 |
Corporate Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total consolidated total assets | $ 112,121 | $ 33,888 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | Feb. 14, 2022 | Jan. 11, 2022 | Jan. 07, 2022 | Mar. 26, 2020 | Feb. 22, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 22, 2022 |
Subsequent Event [Line Items] | ||||||||
Proceed from issuance of common stock | $ 1,500,800 | $ 2,115,001 | ||||||
Proceeds from Issuance of Warrants | $ 1,103 | |||||||
Warrant term | 4 years | |||||||
Warrant exercise price | $ 1.50 | |||||||
Magic Growth 3 LLC [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of sale stock | 152,778 | |||||||
Proceed from issuance of common stock | $ 267,362 | |||||||
Purchase to warrant | 152,770 | |||||||
Proceeds from Issuance of Warrants | $ 7,638 | |||||||
Warrant term | 4 years | |||||||
Warrant exercise price | $ 1.75 | |||||||
Subsequent Event [Member] | Magic Growth 3 LLC [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of sale stock | 222,223 | |||||||
Proceed from issuance of common stock | $ 388,890 | |||||||
Purchase to warrant | 222,195 | |||||||
Proceeds from Issuance of Warrants | $ 11,110 | |||||||
Warrant term | 4 years | |||||||
Warrant exercise price | $ 1.75 | |||||||
Subsequent Event [Member] | Several Investors [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Convertible Notes Payable | $ 200,000 | $ 200,000 | ||||||
Debt Instrument, Maturity Date | Mar. 31, 2025 | Mar. 31, 2025 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 800.00% | 800.00% | ||||||
Conversion Price per share | $ 1.75 | $ 1.75 |