Nano Magic (NMGX) 10-Q 15 May 23 2023 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2023	May 08, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2023
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
Entity File Number	1-11602
Entity Registrant Name	NANO MAGIC 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 Current Reporting Status	No
Entity Interactive Data Current	No
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		11,046,888

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
NET REVENUES	$ 697,029	$ 519,143
COST OF SALES	622,279	532,564
GROSS PROFIT (LOSS)	74,750	(13,421)
OPERATING EXPENSES:
Selling and marketing expenses	59,424	79,529
Salaries, wages and related benefits	308,720	463,222
Research and development	5,904	7,489
Professional fees	189,459	253,979
General and administrative expenses	189,006	251,798
Total Operating Expense	752,513	1,056,017
LOSS FROM OPERATIONS	(677,763)	(1,069,438)
OTHER INCOME (EXPENSE)
Income from investment in subsidiary	32,156
Interest expense	(14,368)	(8,559)
Other income	6,938
Total Other Income (Expense)	24,726	(8,559)
LOSS FROM CONTINUING OPERATIONS	(653,037)	(1,077,997)
INCOME FROM DISCONTINUED OPERATIONS		14,345
NET LOSS	$ (653,037)	$ (1,063,652)
NET LOSS PER SHARE - BASIC:
Continuing operations	$ (0.06)	$ (0.11)
Discontinued operations
NET LOSS PER SHARE - BASIC:	(0.06)	(0.11)
NET LOSS PER SHARE - DILUTED:
Continuing operations	(0.06)	(0.11)
Discontinued operations
NET LOSS PER SHARE - DILUTED:	$ (0.06)	$ (0.11)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic	10,738,962	9,945,658
Diluted	10,738,962	9,945,658

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
CURRENT ASSETS:
Cash	$ 55,786	$ 259,223
Accounts receivable, net	349,395	348,565
Inventory, net	1,055,780	1,120,073
Prepaid expenses	88,010	132,997
Current portion of note receivable	40,000	40,000
Total Current Assets	1,588,971	1,900,858
Operating lease right-of-use assets	990,775	1,037,749
Property, plant and equipment, net	500,337	525,809
Note receivable, non-current	334,636	375,983
Non-marketable equity investment in subsidiary	282,302	250,146
Total Assets	3,697,021	4,090,545
CURRENT LIABILITIES:
Accrued expenses and other current liabilities	307,749	276,132
Current portion of notes payable	25,000	26,629
Current portion of finance leases	32,702	39,005
Advances from related parties	42,887	42,887
Current portion of operating lease liabilities	146,957	142,173
Total Current Liabilities	1,489,463	1,376,469
Notes Payable, net of current portion	350,000	350,000
Finance leases, net of current portion	18,367	24,194
Operating lease liabilities, net of current portion	683,623	722,420
Total Liabilities	2,541,453	2,473,083
Commitments and Contingencies (See Note 8)
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; 10,850,037 and 10,722,431 issued and outstanding at March 31, 2023 and December 31, 2022, respectively	1,084	1,072
Additional paid-in capital	13,954,274	13,763,143
Accumulated deficit	(12,799,790)	(12,146,753)
Total Stockholders’ Equity	1,155,568	1,617,462
Total Liabilities and Stockholders’ Equity	3,697,021	4,090,545
Nonrelated Party [Member]
CURRENT LIABILITIES:
Accounts payable	757,051	762,524
Related Party [Member]
CURRENT LIABILITIES:
Accounts payable	$ 177,117	$ 87,119

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
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	$ 0.0001
Common Stock, Shares Authorized	30,000,000	30,000,000
Common stock, shares issued	10,850,037	10,722,431
Common stock, shares outstanding	10,850,037	10,722,431

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member] Common Class A [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance at Dec. 31, 2021	$ 970	$ 11,960,011	$ (10,045,164)	$ 1,915,817
Balance, shares at Dec. 31, 2021	9,702,680
Common stock issued for cash, net of issuance costs	$ 38	656,214		656,252
Common stock issued for cash, net of issuance costs, shares	375,001
Stock-based compensation		67,255		67,255
Stock-based compensation, shares
Warrants and options on private placement		18,748		18,748
Net loss			(1,063,652)	(1,063,652)
Balance at Mar. 31, 2022	$ 1,008	12,702,228	(11,108,816)	1,594,420
Balance, shares at Mar. 31, 2022	10,077,681
Balance at Dec. 31, 2022	$ 1,072	13,763,143	(12,146,753)	1,617,462
Balance, shares at Dec. 31, 2022	10,722,431
Common stock issued for cash, net of issuance costs	$ 7	93,500		$ 93,507
Common stock issued for cash, net of issuance costs, shares	74,806			74,806
Stock-based compensation		30,144		$ 30,144
Stock-based compensation, shares
Warrants and options on private placement		1,492		1,492
Net loss			(653,037)	(653,037)
Stock issued for services	$ 5	65,955		66,000
Stock issued for services, shares	52,800
Balance at Mar. 31, 2023	$ 1,084	$ 13,954,274	$ (12,799,790)	$ 1,155,568
Balance, shares at Mar. 31, 2023	10,850,037

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss from continuing operations	$ (653,037)	$ (1,077,997)
Net income from discontinued operations		14,345
Adjustments to reconcile net loss to net cash used in operating activities:
Change in inventory obsolescence reserve	4,717	35,716
Depreciation and amortization expense	28,301	28,093
Bad debt expense	5,645	22,715
Stock-based compensation	96,144	67,255
Income from investment in subsidiary	(32,156)
Change in operating assets and liabilities:
Accounts receivable	(6,475)	16,827
Inventory	59,576	15,709
Prepaid expenses and contract assets	44,987	77,430
Accounts payable	15,870	30,539
Accounts payable - related party	47,998	(4,287)
Operating lease liabilities	12,961	14,788
Accrued expenses	72,445	33,307
Total adjustments	350,013	338,092
Net cash used by continuing operating activities	(303,024)	(739,906)
Net cash used by discontinued operating activities		(12,609)
NET CASH USED BY OPERATING ACTIVITIES	(303,024)	(752,515)
CASH FLOWS FROM CONTINUING INVESTING ACTIVITIES
Proceeds from note receivable	20,000
Purchases of property and equipment	(2,829)	(4,910)
NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES	17,171	(4,910)
CASH FLOWS FROM CONTINUING FINANCING ACTIVITIES
Proceeds from sale of common stock and warrants	95,000	675,000
Proceeds from issuance of convertible debt		200,000
Repayment of bank loans	(1,628)	(11,563)
Repayment of finance leases	(10,956)	(9,047)
Repayment of advances from related parties		(36,065)
NET CASH PROVIDED BY FINANCING ACTIVITIES	82,416	818,325
NET (DECREASE) INCREASE IN CASH	(203,437)	60,900
CASH in continuing operations, beginning of year	259,223	197,932
CASH in discontinued operations, beginning of year		44,542
CASH, end of period	55,786	303,374
Less: CASH in discontinued operations, end of period		11,586
CASH in continuing operations, end of period	55,786	291,788
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the period for interest	1,469	8,911
SUPPLEMENTAL DISCLOSURE OF NON-CASH OPERATING AND INVESTING ACTIVITES
Reduction of note receivable from subsidiary for non-cash services	21,348
Reduction of rent payable through issuance of stock	$ 32,948

ORGANIZATION AND BASIS OF PRESE

ORGANIZATION AND BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND BASIS OF PRESENTATION	NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION Organization Nano Magic 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. On December 31, 2022, our wholly-owned subsidiary Nano Magic LLC was merged into the parent company and we changed our name to Nano Magic Inc. 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. Effective May 31, 2022, we sold a 70 30 Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information. Accordingly, they do not include all the information and disclosures required by US GAAP for annual financial statements. In the opinion of management, such statements include all adjustments (consisting only of normal recurring items) which are considered necessary for a fair presentation of the unaudited condensed consolidated financial statements of the Company as of March 31, 2023 and for the three months ended March 31, 2023 and 2022. The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the operating results for the full year ending December 31, 2023 or any other period. The balance sheet at December 31, 2022 has been derived from the audited financial statement at that date but does not include all the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related disclosures of the Company as of December 31, 2022 and for the year then ended, which were filed with the Securities and Exchange Commission on Form 10-K on April 11, 2023. Going Concern These unaudited 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 unaudited consolidated financial statements, the Company had losses from continuing operations and net cash used by continuing operations of $ 653,037 303,024 1,077,997 739,906

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS	3 Months Ended
	Mar. 31, 2023
Discontinued Operations and Disposal Groups [Abstract]
DISCONTINUED OPERATIONS	NOTE 2 – DISCONTINUED OPERATIONS Effective May 31, 2022, we sold a 70 450,000 7 20,000 25,000 30,000 80,000 1,148,225 In connection with the sale, the capital structure of Applied Nanotech was changed to give us, as the holder of Class B common stock of Applied Nanotech, a 30 The following is the detail of major line items that constitute income from discontinued operations: SCHEDULE OF INCOME (LOSS) FROM DISCONTINUED OPERATIONS 2023 2022 For the Three Months Ended March 31, 2023 2022 Net Revenues $ - $ 167,115 Cost of Sales - 134,082 Gross Profit - 33,033 Salaries, wages and related benefits - 5,889 General and administrative expenses - 12,447 Interest and other expense - 352 Net income from discontinued operations $ - $ 14,345

INVENTORY

INVENTORY	3 Months Ended
	Mar. 31, 2023
Inventory Disclosure [Abstract]
INVENTORY	NOTE 3 – INVENTORY At March 31, 2023 and December 31, 2022, inventory consisted of the following: SCHEDULE OF INVENTORY March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 Raw materials $ 688,043 $ 695,774 Work-in-progress 243,284 256,095 Finished goods 314,048 353,082 Inventory, gross 1,245,375 1,304,951 Less: reserve for obsolescence (189,595 ) (184,878 ) Inventory, net $ 1,055,780 $ 1,120,073

INVESTMENT IN SUBSIDIARY

INVESTMENT IN SUBSIDIARY	3 Months Ended
	Mar. 31, 2023
Investments, All Other Investments [Abstract]
INVESTMENT IN SUBSIDIARY	NOTE 4 – INVESTMENT IN SUBSIDIARY The Company is accounting for its 30 30 282,302 32,156

NOTES PAYABLE AND FINANCE LEASE

NOTES PAYABLE AND FINANCE LEASES	3 Months Ended
	Mar. 31, 2023
Notes Payable And Finance Leases
NOTES PAYABLE AND FINANCE LEASES	NOTE 5 – NOTES PAYABLE AND FINANCE LEASES Notes Payable On January 7, 2022, the Company sold to one investor a $ 100,000 March 31, 2025 50,000 50,000 March 31, 2026 8 1.75 On July 27, 2022, the Company sold two convertible notes, one for $ 50,000 25,000 March 31, 2025 25,000 March 31, 2026 8 1.75 On October 26, 2022, the Company sold to an investor a $ 25,000 October 31, 2023 8 1.75 On December 18, 2022, the Company issued a convertible promissory note for $ 50,000 8 1.75 At March 31, 2023 and at December 31, 2022, we had outstanding convertible notes aggregating $375,000 in principal amount. The convertible promissory notes have not been included in diluted earnings per share as they would be anti-dilutive. On February 10, 2015, Nano Magic entered into a $ 373,000 June 10, 2020 4.35 6.29 4,053 6.29 4,053 Finance Leases On August 11, 2020, the company entered into a finance lease for furniture. We financed $ 60,684 36 1,972 7,720 1,840 On September 24, 2020, the company entered into a finance lease with Raymond Leasing Corporation for a forklift. Nano Magic LLC financed $ 14,250 36 425 2,518 In December 2020, the company entered into a finance lease for production equipment. We financed $ 85,000 48 2,135 40,832 22,464 18,367

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2023
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 6 – RELATED PARTY TRANSACTIONS For the three-month period ended March 31, 2023 and the three-months ended March 31, 2022, we accrued $ 6,000 30,000 30,000 30,000 At March 31, 2022 and at December 31, 2022, aggregate advances from Scott & Jeanne Rickert were $ 42,887 16,000 SCHEDULE OF RELATED PARTY TRANSACTIONS 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, Magic Growth 2 LLC and Magic Growth 3 LLC. These five limited liability companies purchased shares of common stock and derivative securities from us in 2018, 2019, 2020, 2021 and 2022. 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 12.5 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. 24,117

STOCKHOLDERS_ EQUITY

STOCKHOLDERS’ EQUITY	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
STOCKHOLDERS’ EQUITY	NOTE 7 – STOCKHOLDERS’ EQUITY Description of Preferred and Common Stock 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 in the election of directors and other matters submitted to a vote of the stockholders. Issuances of Common Stock Common Stock Issued for Services In February 2023, we reached an agreement with the landlord of our Michigan facility to accept 52,800 1.25 Sales of Common Stock During the quarter ended March 31, 2022, the Company sold 375,001 656,252 374,965 18,748 2.25 For the three months ended March 31, 2023, the Company sold 74,806 shares of common stock for proceeds of $ 93,507 . Additionally, 74,626 warrants were sold for $ 1,492 . The warrants are exercisable at any time during the four years after date of issue at a warrant exercise price of $2.25. Stock Options Stock options to purchase common stock outstanding at March 31, 2023 include the 130,700 15,000 SCHEDULE OF STOCK OPTION PLAN ACTIVITY Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding December 31, 2022 2,760,991 $ 0.69 3.08 - Exercised - - - - Issued - - - - Expired & forfeited (376 ) 0.80 - - Outstanding March 31, 2023 2,760,615 $ 0.72 3.85 $ - Exercisable March 31, 2023 1,279,585 $ 0.69 2.85 $ - SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE March 31, 2023 December 31, 2022 Stock options 2,760,615 2,760,991 Stock warrants 7,515,265 7,440,639 Total 10,275,880 10,201,630 Warrants As of March 31, 2023, there were outstanding and exercisable warrants to purchase 7,515,265 4,052,003 1.72 26.32 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 2,500 200,000 100,000 130,700 0.80 0.60 15,000 0.80 0.60

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 8 – 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. As of March 31, 2023 we were not 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 March 31, 2023, the Company has no

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2023
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 9 – SUBSEQUENT EVENTS On April 12, 2023, the Company granted 47,610 30,000 0.65 On April 14, 2023, the Company sold 196,851 246,064 196,813 3,936 1.75 On April 27, 2023 the Company entered into an agreement to settle claims under which we received a payment of $ 50,000 57,143 100,000 1.75

DISCONTINUED OPERATIONS (Tables

DISCONTINUED OPERATIONS (Tables)	3 Months Ended
	Mar. 31, 2023
Discontinued Operations and Disposal Groups [Abstract]
SCHEDULE OF INCOME (LOSS) FROM DISCONTINUED OPERATIONS	The following is the detail of major line items that constitute income from discontinued operations: SCHEDULE OF INCOME (LOSS) FROM DISCONTINUED OPERATIONS 2023 2022 For the Three Months Ended March 31, 2023 2022 Net Revenues $ - $ 167,115 Cost of Sales - 134,082 Gross Profit - 33,033 Salaries, wages and related benefits - 5,889 General and administrative expenses - 12,447 Interest and other expense - 352 Net income from discontinued operations $ - $ 14,345

INVENTORY (Tables)

INVENTORY (Tables)	3 Months Ended
	Mar. 31, 2023
Inventory Disclosure [Abstract]
SCHEDULE OF INVENTORY	At March 31, 2023 and December 31, 2022, inventory consisted of the following: SCHEDULE OF INVENTORY March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 Raw materials $ 688,043 $ 695,774 Work-in-progress 243,284 256,095 Finished goods 314,048 353,082 Inventory, gross 1,245,375 1,304,951 Less: reserve for obsolescence (189,595 ) (184,878 ) Inventory, net $ 1,055,780 $ 1,120,073

STOCKHOLDERS_ EQUITY (Tables)

STOCKHOLDERS’ EQUITY (Tables)	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
SCHEDULE OF STOCK OPTION PLAN ACTIVITY	SCHEDULE OF STOCK OPTION PLAN ACTIVITY Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding December 31, 2022 2,760,991 $ 0.69 3.08 - Exercised - - - - Issued - - - - Expired & forfeited (376 ) 0.80 - - Outstanding March 31, 2023 2,760,615 $ 0.72 3.85 $ - Exercisable March 31, 2023 1,279,585 $ 0.69 2.85 $ -
SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE	SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE March 31, 2023 December 31, 2022 Stock options 2,760,615 2,760,991 Stock warrants 7,515,265 7,440,639 Total 10,275,880 10,201,630

ORGANIZATION AND BASIS OF PRE_2

ORGANIZATION AND BASIS OF PRESENTATION (Details Narrative) - USD ($)		3 Months Ended
	May 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Related Party Transaction [Line Items]
Losses from operations		$ 653,037	$ 1,077,997
Net cash used by continuing operations		$ 303,024	$ 739,906
Parent [Member]
Related Party Transaction [Line Items]
Ownership percentage	30%
Applied Nano tech Inc [Member]
Related Party Transaction [Line Items]
Sale of interest in subsidiary	70%	30%

SCHEDULE OF INCOME (LOSS) FROM

SCHEDULE OF INCOME (LOSS) FROM DISCONTINUED OPERATIONS (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Discontinued Operations and Disposal Groups [Abstract]
Net Revenues		$ 167,115
Cost of Sales		134,082
Gross Profit		33,033
Salaries, wages and related benefits		5,889
General and administrative expenses		12,447
Interest and other expense		352
Net income from discontinued operations		$ 14,345

DISCONTINUED OPERATIONS (Detail

DISCONTINUED OPERATIONS (Details Narrative) - USD ($)		3 Months Ended
	May 31, 2022	Mar. 31, 2023
Parent [Member]
Related Party Transaction [Line Items]
Ownership percentage	30%
Applied Nano tech Inc [Member]
Related Party Transaction [Line Items]
Sale of interest in subsidiary	70%	30%
Debt instrument face amount	$ 450,000
Debt instrument bear interest	7%
Debt instrument, periodic payment, principal	$ 20,000
Balloon payment	80,000
Gain on sale of discontinued operations	1,148,225
Applied Nano tech Inc [Member] | May 2024 [Member]
Related Party Transaction [Line Items]
Debt instrument, periodic payment, principal	25,000
Applied Nano tech Inc [Member] | May 2026 [Member]
Related Party Transaction [Line Items]
Debt instrument, periodic payment, principal	$ 30,000

SCHEDULE OF INVENTORY (Details)

SCHEDULE OF INVENTORY (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 688,043	$ 695,774
Work-in-progress	243,284	256,095
Finished goods	314,048	353,082
Inventory, gross	1,245,375	1,304,951
Less: reserve for obsolescence	(189,595)	(184,878)
Inventory, net	$ 1,055,780	$ 1,120,073

INVESTMENT IN SUBSIDIARY (Detai

INVESTMENT IN SUBSIDIARY (Details Narrative) - USD ($)		3 Months Ended
	May 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Related Party Transaction [Line Items]
Investment amount		$ 282,302
Income from investment in subsidiary		$ 32,156
Applied Nano tech Inc [Member]
Related Party Transaction [Line Items]
Sale of interest in subsidiary	70%	30%

NOTES PAYABLE AND FINANCE LEA_2

NOTES PAYABLE AND FINANCE LEASES (Details Narrative) - USD ($)

1 Months Ended

3 Months Ended

Oct. 26, 2022

Aug. 22, 2022

Jul. 27, 2022

May 02, 2022

Jan. 31, 2022

Jan. 07, 2022

Sep. 24, 2020

Aug. 11, 2020

Jun. 18, 2019

Feb. 10, 2015

Dec. 18, 2022

Dec. 31, 2020

Mar. 31, 2023

Mar. 31, 2022

Dec. 31, 2022

Jan. 26, 2022

Jan. 23, 2022

Proceeds from convertible debt

$ 200,000

Finance lease, liability

40,832

Finance lease, liability, current

32,702

$ 39,005

Finance lease, liability, noncurrent

18,367

$ 24,194

Production Equipment [Member]

Finance lease, liability

$ 85,000

Lessee, finance lease, term of contract

48 months

Finance lease, principal payments

$ 2,135

Finance lease, liability, current

22,464

Finance lease, liability, noncurrent

18,367

Raymond Leasing Corporation [Member]

Finance lease, liability

$ 14,250

Lessee, finance lease, term of contract

36 months

Finance lease, principal payments

$ 425

Finance lease, liability, current

$ 2,518

Michigan Facility [Member]

Finance lease, liability

$ 60,684

Lessee, finance lease, term of contract

36 months

Finance lease, principal payments

$ 1,972

Finance lease, liability, current

7,720

Accounts payable, current

$ 1,840

Equipment Note [Member]

Debt instrument, interest rate, stated percentage

6.29%

Debt instrument, periodic payment

$ 4,053

Nano Magic LLC [Member] | Equipment Note [Member]

Debt instrument, maturity date

Jun. 10, 2020

Debt instrument, interest rate, stated percentage

6.29%

4.35%

Debt instrument, face amount

$ 373,000

Debt instrument, periodic payment

$ 4,053

Convertible Promissory Notes [Member]

Debt instrument conversion price

$ 1.75

Proceeds from convertible debt

$ 50,000

Debt instrument, interest rate, stated percentage

8%

Two Investors [Member]

Convertible debt

$ 50,000

$ 50,000

Investors [Member]

Debt instrument, maturity date

Oct. 31, 2023

Proceeds from convertible debt

$ 25,000

Convertible Debt [Member]

Convertible debt

$ 25,000

$ 50,000

$ 100,000

Debt instrument, maturity date

Mar. 31, 2026

Mar. 31, 2026

Mar. 31, 2025

Annual payable interest percentage

8%

8%

8%

8%

Debt instrument conversion price

$ 1.75

$ 1.75

Convertible Debt Three [Member]

Debt instrument conversion price

$ 1.75

Convertible Debt One [Member]

Convertible debt

$ 50,000

Debt instrument, maturity date

Mar. 31, 2025

Convertible Debt Two [Member]

Convertible debt

$ 25,000

Debt instrument, maturity date

Mar. 31, 2025

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Related Party Transaction [Line Items]
Salary paid	$ 30,000
Accrued additional salary	$ 30,000
Tom Berman and Ron Berman [Member]
Related Party Transaction [Line Items]
Ownership interest	12.50%
Jeanne Rickert [Member]
Related Party Transaction [Line Items]
Accrued payroll		$ 16,000
Related Party [Member] | Scott And Jeanne Rickert [Member]
Related Party Transaction [Line Items]
Aggregate advance		$ 42,887
Director [Member]
Related Party Transaction [Line Items]
Consulting fees	$ 6,000
Ronald J. Berman [Member]
Related Party Transaction [Line Items]
Consulting fees	$ 30,000
Tom Berman and Ron Berman [Member]
Related Party Transaction [Line Items]
Economic interest percentage	5%
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.
Payments for rent	$ 24,117

SCHEDULE OF STOCK OPTION PLAN A

SCHEDULE OF STOCK OPTION PLAN ACTIVITY (Details) - USD ($)	1 Months Ended	3 Months Ended
	Feb. 28, 2022	Mar. 31, 2023
Equity [Abstract]
Number of Options, Outstanding, Beginning balance		2,760,991
Weighted Average Exercise Price, Outstanding, Beginning balance		$ 0.69
Weighted Average Remaining Contractual Terms (Years), Outstanding		3 years 29 days
Aggregate Intrinsic Value, Beginning balance
Number of Options, Exercised
Weighted Average Exercise Price, Exercised
Aggregate Intrinsic Value, Exercised
Number of Options, Issued	130,700
Weighted Average Exercise Price, Issued	$ 0.80
Aggregate Intrinsic Value, Issued
Number of Options, Issued		(376)
Weighted Average Exercise Price, Expired & forfeited		$ 0.80
Aggregate Intrinsic Value, expired and forfeited
Number of Options, Outstanding, Ending balance		2,760,615
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance		$ 0.72
Weighted Average Remaining Contractual Terms (Years), Outstanding		3 years 10 months 6 days
Aggregate Intrinsic Value, Ending balance
Number of Options, Exercisable, Ending balance		1,279,585
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Weighted Average Exercise Price		$ 0.69
Weighted Average Remaining Contractual Term (Years), Exercisable		2 years 10 months 6 days
Aggregate Intrinsic Value, Exercisable

SCHEDULE OF ANTIDILUTIVE SECURI

SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE (Details) - shares	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	10,275,880	10,201,630
Share-Based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	2,760,615	2,760,991
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	7,515,265	7,440,639

STOCKHOLDERS_ EQUITY (Details N

STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($)			1 Months Ended			3 Months Ended
	Jun. 21, 2021	Apr. 08, 2021	Feb. 28, 2023	Aug. 31, 2022	Feb. 28, 2022	Mar. 31, 2023	Mar. 31, 2022	Mar. 02, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
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 in the election of directors and other matters submitted to a vote of the stockholders.
Common stock issued for services			52,800
Stock price			$ 1.25
Number of shares sold, shares							375,001
Common stock for proceeds							$ 656,252
Warrants to purchase up							374,965
Proceeds from issuance of warrants							$ 18,748
Warrant exercise price per share							$ 2.25
Number of shares issued						74,806
Stock Issued During Period, Value, New Issues						$ 93,507	$ 656,252
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right						74,626
Number of stock options granted					130,700
Weighted average remaining contractual term						3 years 10 months 6 days
Share-based payment award, options exercise price, per share					$ 0.80
Weighted average grant date fair value, per share					$ 0.60
2021 Equity Incentive Plan [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of stock options granted		2,500		15,000		130,700
Number of shares available for issuance		2,500						85,000
Number of shares available for future issuance	200,000
Number of share options, granted and forfeited	100,000
Share-based payment award, options exercise price, per share				$ 0.80
Weighted average grant date fair value, per share				$ 0.60
Warrant [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Warrant exercise price per share						$ 1.72
Number of shares issued						4,052,003
Stock Issued During Period, Value, New Issues						$ 1,492
Class of warrant or right, outstanding						7,515,265
Weighted average remaining contractual term						26 months 9 days

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Narrative)	3 Months Ended
	Mar. 31, 2023 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Litigation settlement	$ 0

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - USD ($)					1 Months Ended	3 Months Ended
	May 08, 2023	Apr. 27, 2023	Apr. 14, 2023	Apr. 12, 2023	Feb. 28, 2022	Mar. 31, 2023	Mar. 31, 2022
Subsequent Event [Line Items]
Share-based payment award, options, grants in period					130,700
Options exercise price, per share					$ 0.80
Number of shares issued						74,806
Proceeds from issuance of common stock						$ 95,000	$ 675,000
Purchase of warrant shares						74,626
Warrant exercise price per share							$ 2.25
Received a payment						$ 0
Warrant [Member]
Subsequent Event [Line Items]
Number of shares issued						4,052,003
Warrant exercise price per share						$ 1.72
Subsequent Event [Member]
Subsequent Event [Line Items]
Options exercise price, per share				$ 0.65
Received a payment		$ 50,000
Subsequent Event [Member] | Warrant [Member]
Subsequent Event [Line Items]
Proceeds from issuance of common stock			$ 3,936
Warrant exercise price per share			$ 1.75
Subsequent Event [Member] | Accredited Investor [Member]
Subsequent Event [Line Items]
Number of shares issued	57,143		196,851
Proceeds from issuance of common stock	$ 100,000		$ 246,064
Sale of stock, price per share	$ 1.75
Subsequent Event [Member] | Accredited Investor [Member] | Maximum [Member] | Warrant [Member]
Subsequent Event [Line Items]
Purchase of warrant shares			196,813
2021 Equity Plan [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Share-based payment award, options, grants in period				47,610
2021 Equity Plan [Member] | Subsequent Event [Member] | Tom J. Berman [Member]
Subsequent Event [Line Items]
Additional options shares				30,000