Nano Magic (NMGX) 10-Q 19 Nov 24 2024 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2024	Nov. 19, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2024
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2024
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	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 Common Stock, Shares Outstanding		14,408,674

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Statement [Abstract]
NET REVENUES	$ 640,271	$ 658,159	$ 1,837,005	$ 2,064,481
COST OF SALES	616,120	575,680	1,790,072	1,705,114
GROSS PROFIT	24,151	82,479	46,933	359,367
OTHER OPERATING INCOME				11,420
OPERATING EXPENSES:
Selling and marketing expenses	83,946	69,242	215,748	182,684
Salaries, wages and related benefits (includes noncash compensation of $387,678, $392,631, $30,375 and $162,601 in the three-and-nine months ended September 30, 2024 and September 30, 2023, respectively)	630,623	264,076	1,069,041	864,864
Research and development	23,649	24,375	65,567	36,650
Professional fees (includes noncash compensation of $383,817, $395,199, $89,624 and $247,791 in the three-and-nine months ended September 30, 2024 and September 30, 2023, respectively)	531,075	167,704	936,907	628,092
General and administrative expenses	206,497	220,230	734,216	667,744
Total Operating Expense	1,475,790	745,627	3,021,479	2,380,034
LOSS FROM OPERATIONS	(1,451,639)	(663,148)	(2,974,546)	(2,009,247)
OTHER INCOME (EXPENSE)
(Loss) income from investment in subsidiary	(2,155)	(21,267)	7,969	19,671
Gain from sale of investment in subsidiary	56,067		56,067
Loss from sale of note receivable			(40,164)
Interest expense	(12,211)	(12,068)	(37,676)	(34,011)
Interest and other income (expense)	845	(3,192)	8,385	20,010
Total Other Income (Expense)	42,546	(36,527)	(5,419)	5,670
NET LOSS	$ (1,409,093)	$ (699,675)	$ (2,979,965)	$ (2,003,577)
NET LOSS PER COMMON SHARE
Basic	$ (0.10)	$ (0.06)	$ (0.20)	$ (0.18)
Diluted	$ (0.10)	$ (0.06)	$ (0.20)	$ (0.18)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic	14,028,240	11,293,388	13,679,848	11,105,186
Diluted	14,028,240	11,293,388	13,679,848	11,105,186

Condensed Statements of Opera_2

Condensed Statements of Operations (Parenthetical) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Noncash compensation			$ 770,758	$ 405,682
Salaries Wages And Related Benefits [Member]
Noncash compensation	$ 387,678	$ 392,631	30,375	162,601
Professional Fees
Noncash compensation	$ 383,817	$ 395,199	$ 89,624	$ 247,791

Condensed Balance Sheets (Unaud

Condensed Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
CURRENT ASSETS:
Cash	$ 38,688	$ 527,462
Accounts receivable, net of allowance for credit losses of $214,444 and $150,300 at September 30, 2024 and December 31, 2023, respectively	248,810	209,057
Inventory, net	719,949	849,764
Prepaid expenses	33,398	63,538
Current portion of note receivable		50,000
Total Current Assets	1,040,845	1,699,821
Operating lease right-of-use assets	675,988	845,563
Property, plant and equipment, net	360,202	424,103
Note receivable, non-current		291,782
Non-marketable equity investment in subsidiary	217,871	253,835
Total Assets	2,294,906	3,515,104
CURRENT LIABILITIES:
Accrued expenses and other current liabilities	437,494	245,398
Current portion of finance leases	6,275	24,194
Advances from related parties	42,887	42,887
Current portion of operating lease liabilities	179,624	161,905
Total Current Liabilities	1,930,811	1,244,852
Operating lease liabilities, net of current portion	409,720	560,514
Total Liabilities	2,439,803	2,205,366
Commitments and Contingencies (See Note 9)
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; 14,408,674 and 13,425,342 issued and outstanding at September 30, 2024 and December 31, 2023, respectively	1,441	1,342
Additional paid-in capital	17,836,099	16,310,868
Accumulated deficit	(17,982,437)	(15,002,472)
Total Stockholders’ (Deficit) Equity	(144,897)	1,309,738
Total Liabilities and Stockholders’ Equity	2,294,906	3,515,104
Nonrelated Party [Member]
CURRENT LIABILITIES:
Accounts payable	642,129	593,338
Current portion of notes payable	440,000	121,610
Notes Payable - related parties	99,272	375,000
Related Party [Member]
CURRENT LIABILITIES:
Accounts payable	157,402	55,520
Current portion of notes payable	25,000
Notes Payable - related parties		$ 25,000

Condensed Balance Sheets (Una_2

Condensed Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Net of allowance for credit losses	$ 214,444	$ 150,300
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 value	$ 0.0001	$ 0.0001
Common stock, shares authorized	30,000,000	30,000,000
Common stock, shares issued	14,408,674	13,425,342
Common stock, shares outstanding	14,408,674	13,425,342

Condensed Statements of Changes

Condensed Statements of Changes in Stockholders' (Deficit) Equity (Unaudited) - USD ($)	Common Stock [Member] Common Class A [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance, value 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	$ 99	843,408		843,507
Common stock issued for cash, net of issuance costs, shares	998,613
Restricted stock issued for services	$ 20	67,096		67,116
Stock-based compensation		343,276		343,276
Net loss			(2,003,577)	(2,003,577)
Stock issued for services	$ 5	65,995		66,000
Stock issued for services, shares	52,800
Warrants and options on private placement		6,825		6,825
Restricted stock issued for services, shares	192,302
Ending balance, value at Sep. 30, 2023	$ 1,196	15,089,743	(14,150,330)	940,609
Balance, shares at Sep. 30, 2023	11,966,146
Beginning balance, value at Jun. 30, 2023	$ 1,117	14,569,823	(13,450,655)	1,120,285
Balance, shares at Jun. 30, 2023	11,180,953
Common stock issued for cash, net of issuance costs	$ 67	403,869		403,936
Common stock issued for cash, net of issuance costs, shares	669,813
Stock-based compensation		57,601		57,601
Net loss			(699,675)	(699,675)
Stock issued for services	$ 12	62,386		62,398
Stock issued for services, shares	115,380
Warrants and options on private placement		(3,936)		(3,936)
Ending balance, value at Sep. 30, 2023	$ 1,196	15,089,743	(14,150,330)	940,609
Balance, shares at Sep. 30, 2023	11,966,146
Beginning balance, value at Dec. 31, 2023	$ 1,342	16,310,868	(15,002,472)	1,309,738
Balance, shares at Dec. 31, 2023	13,425,342
Common stock issued for cash, net of issuance costs	$ 99	737,401		737,500
Common stock issued for cash, net of issuance costs, shares	983,333
Restricted stock issued for services		17,072		17,072
Stock-based compensation		770,758		770,758
Net loss			(2,979,965)	$ (2,979,965)
Stock issued for services, shares				0
Ending balance, value at Sep. 30, 2024	$ 1,441	17,836,099	(17,982,437)	$ (144,897)
Balance, shares at Sep. 30, 2024	14,408,675
Beginning balance, value at Jun. 30, 2024	$ 1,371	16,539,674	(16,573,344)	(32,299)
Balance, shares at Jun. 30, 2024	13,708,676
Common stock issued for cash, net of issuance costs	$ 70	524,930		525,000
Common stock issued for cash, net of issuance costs, shares	699,999
Restricted stock issued for services		5,691		5,691
Stock-based compensation		765,804		765,804
Net loss			(1,409,093)	(1,409,093)
Ending balance, value at Sep. 30, 2024	$ 1,441	$ 17,836,099	$ (17,982,437)	$ (144,897)
Balance, shares at Sep. 30, 2024	14,408,675

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (2,979,965)	$ (2,003,577)
Adjustments to reconcile net loss to net cash provided by operating activities:
Change in inventory obsolescence reserve	92,424	75,841
Depreciation and amortization expense	80,865	84,132
Bad debt expense	98,619	80,896
Strock issued for services	17,072	70,710
Stock-based compensation	770,758	405,682
Income from investment in subsidiary	(7,969)	(19,671)
Gain from sale of subsidiary	(56,067)
Change in operating assets and liabilities:
Accounts receivable	(138,371)	(53,911)
Inventory	37,391	51,515
Prepaid expenses and contract assets	30,140	43,350
Accounts payable	90,571	3,887
Accounts payable - related party	101,882	5,839
Operating lease liabilities	36,501	42,590
Accrued expenses	192,096	154,923
Total adjustments	1,345,912	945,783
NET CASH USED BY OPERATING ACTIVITIES	(1,634,053)	(1,057,794)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from note receivable	300,000	20,000
Proceeds from sale of subsidiary	100,000
Purchases of property and equipment	(16,964)	(9,352)
NET CASH PROVIDED BY INVESTING ACTIVITIES	383,036	10,648
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from sale of common stock and warrants	737,500	850,332
Proceeds from issuance of convertible debt and warrants	50,000	94,467
Repayment of note payable	(10,000)
Repayment of bank loans		(1,630)
Repayment of finance leases	(15,257)	(32,073)
NET CASH PROVIDED BY FINANCING ACTIVITIES	762,243	911,096
NET DECREASE IN CASH	(488,774)	(136,050)
CASH, beginning of period	527,462	259,223
CASH, end of period	38,688	123,173
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the period for interest	$ 2,112	$ 23,973

ORGANIZATION AND BASIS OF PRESE

ORGANIZATION AND BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2024
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 Basis of Presentation The accompanying unaudited condensed 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 financial statements of the Company as of September 30, 2024 and for the three and nine months ended September 30, 2024 and 2023. The results of operations for the three and nine months ended September 30, 2024 are not necessarily indicative of the operating results for the full year ending December 31, 2024 or any other period. The balance sheet at December 31, 2023 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 financial statements should be read in conjunction with the audited condensed financial statements and related disclosures of the Company as of December 31, 2023 and for the year then ended, which were filed with the Securities and Exchange Commission on Form 10-K on April 3, 2024. Going Concern These unaudited condensed 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 condensed financial statements, the Company had losses from operations and net cash used by operations of $ 2,974,546 1,634,053 2,009,247 1,057,794 (889,966) 454,969 Reclassifications Certain accounts and financial statement captions in the prior periods have been reclassified to conform to the current period. These reclassifications had no effect on the previously reported net loss.

INVENTORY

INVENTORY	9 Months Ended
	Sep. 30, 2024
Inventory Disclosure [Abstract]
INVENTORY	NOTE 2 – INVENTORY At September 30, 2024 and December 31, 2023, inventory consisted of the following: SCHEDULE OF INVENTORY September 30, 2024 December 31, 2023 Raw materials $ 712,072 $ 648,537 Work-in-progress 218,815 235,811 Finished goods 212,991 296,921 Inventory, gross 1,143,878 1,181,269 Less: reserve for obsolescence (423,929 ) (331,505 ) Inventory, net $ 719,949 $ 849,764

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE	9 Months Ended
	Sep. 30, 2024
Receivables [Abstract]
ACCOUNTS RECEIVABLE	NOTE 3 – ACCOUNTS RECEIVABLE At September 30, 2024 and December 31, 2023, accounts receivable consisted of the following: SCHEDULE OF ACCOUNTS RECEIVABLE September 30, 2024 December 31, 2023 Accounts receivable 463,254 $ 359,357 Less: allowance for doubtful accounts (214,444 ) (150,300 ) Accounts receivable, net 248,810 $ 209,057 Bad debt expense was $ 80,865 84,132

INVESTMENT IN SUBSIDIARY

INVESTMENT IN SUBSIDIARY	9 Months Ended
	Sep. 30, 2024
Investments, All Other Investments [Abstract]
INVESTMENT IN SUBSIDIARY	NOTE 4 – INVESTMENT IN SUBSIDIARY For the three- and nine-month periods ended September 30, 2024, we sold portions of the note receivable from ANI to various parties for total cash proceeds of $ 0 300,000 41,782 0 341,782 0 50,000 The Company is accounting for its ownership interest in ANI by the equity method of accounting under which the Company’s share of the net income (loss) of ANI is recognized as income (loss) in the Company’s statement of operations. Any dividends received from ANI as well as periodic losses for the Company’s share will be treated as a reduction of the investment account. Periodic income will be treated as an increase in the investment account. For the three- and nine-month periods ended September 30, 2024, the Company recorded a loss from the investment in the subsidiary of $ 2,155 and income of $ 7,969 , respectively. For the three and nine-month periods ended September 30, 2023, the Company recorded a loss from the investment in subsidiary of $ 21,267 and income of $ 19,671 , respectively. During the three-month period ended September 30, 2024, The Company sold a portion of its stake in ANI for $ 100,000 30% 25% 56,067 217,871 253,835

NOTES PAYABLE AND FINANCE LEASE

NOTES PAYABLE AND FINANCE LEASE	9 Months Ended
	Sep. 30, 2024
Notes Payable And Finance Lease
NOTES PAYABLE AND FINANCE LEASE	NOTE 5 – NOTES PAYABLE AND FINANCE LEASE 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 October 31, 2024 On December 18, 2022, the Company issued a convertible promissory note for $ 50,000 8 eighteen months 1.75 On June 14, 2023, the Company issued a convertible, secured note and warrants to purchase 10,000 50,000 5,333 728 3,390 On July 24, 2023, the Company issued at face value a convertible note in the original principal amount of $ 50,000 8 1.25 On November 2, 2023, the Company issued at face value a convertible note in the original principal amount of $ 50,000 8 1.25 On June 10, 2024, the Company issued a $ 50,000 1 40,000 At September 30, 2024 and at December 31, 2023, we had outstanding convertible notes aggregating $ 565,000 525,000 in principal amount. The secured, convertible note that was due on June 18, 2024 remains unpaid. The convertible promissory notes have not been included in diluted earnings per share as they would be anti-dilutive. Finance Lease In December 2020, the company entered into a finance lease for production equipment. The Company financed $ 85,000 48 2,135 6,275 24,194

OPERATING LEASE

OPERATING LEASE	9 Months Ended
	Sep. 30, 2024
Operating Lease
OPERATING LEASE	NOTE 6 – OPERATING LEASE Effective May 31, 2020, we entered into a lease with a related party for a 29,220 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 had 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. 311,718 In February 2023, we reached an agreement with the landlord of our Michigan facility to accept $ 66,000 1.25 8,056 10,983 0.75 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. The ROU Asset was $ 845,563 589,344 722,419

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2024
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 7 – RELATED PARTY TRANSACTIONS At September 30, 2024 and at December 31, 2023, accounts payable – related parties totaled $ 157,402 and $ 55,520 , respectively, and is presented separately in current liabilities. These balances consist of amounts owed to directors and officers as well as to the landlord in which three of our directors are investors. Specifically, Mr. Ron Berman is paid $ 8,000 8,000 0 18,750 0 4,379 128,402 30,141 At September 30, 2024 and at December 31, 2023, aggregate advances from Scott & Jeanne Rickert were $ 42,887 16,000 In July 2024, we granted options to purchase 60,000 shares to both our CFO and to director Ronald Berman, and the option to purchase up to 30,000 shares to both our General Counsel, Jeanne Rickert, and our Chaiman, Scott Rickert. These grants were half vested on the date of grant and the balance vests monthly over the rest of 2024. In July 2024, we also granted an option to purchase up to 500,000 shares to our President and CEO, half vested on the date of grant and the rest will vest on December 31, 2024 . All the options granted in July 2024 were at an exercise price of $ 0.31 and have a five -year term. The stock option awards to directors and officers resulted in an expense of $ 208,280 In 2023, we granted options to our President and CEO Tom Berman in lieu of salary: In April, an option to purchase up to 30,000 69,228 7,692 100,000 60,000 5,000 50,000 45,000 5,000 0.65 four 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. See the subsection on Sales of Stock under Issuances of Common Stock in Note 8. In addition, Mr. Tom Berman and Mr. Ron Berman are two of the three individuals who hold the voting power of the sole manager of the limited liability company that is the Company’s landlord in Michigan. Together, Tom and Ron Berman hold, in the aggregate, a 5 12.5 128,402 30,141

STOCKHOLDERS_ EQUITY

STOCKHOLDERS’ EQUITY	9 Months Ended
	Sep. 30, 2024
Equity [Abstract]
STOCKHOLDERS’ EQUITY	NOTE 8 – 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 Through the nine months ended September 30, 2024, no In February 2023, we reached an agreement with the landlord of our Michigan facility to accept 52,800 1.25 partial payment of rent for the nine-month period from October 2022 through March 2023. Those shares were issued in March, 2023 0.75 On May 30, 2023, the Company issued 76,922 4,273 4,273 4,277 3,205 3,206 In August 2023, the Company issued to each of three individuals who are serving on its advisory committee a total of 38,460 Sales of Common Stock and Derivative Equity Securities During the quarter ended September 30, 2024, the Company sold 699,999 525,000 983,333 737,500 During the quarter ended September 30, 2023, the Company sold 533,331 400,000 250,000 0.75 136,482 196,813 Stock Options Stock options to purchase common stock outstanding at September 30, 2024 include those described below. No options were exercised during the period. No options have been included in diluted earnings per share as they would be anti-dilutive. During the three- and nine-month periods ending September 31, 2024, stock compensation expense totaled $ 771,495 787,830 119,999 410,392 SCHEDULE OF STOCK OPTION PLAN ACTIVITY Number of Weighted Weighted Aggregate Intrinsic Value Outstanding December 31, 2023 2,270,483 $ 0.67 2.72 $ 76,725 Exercised - - - - Issued 1,106,268 0.31 - - Expired & forfeited (55,297 ) 0.65 - - Outstanding September 30, 2024 3,321,454 $ 0.55 3.55 $ 738,666 Exercisable September 30, 2024 2,903,540 $ 0.58 3.37 $ 550,834 SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS SHARE September 30, 2024 December 31, 2023 Stock options 3,321,454 2,270,483 Stock warrants 7,525,265 7,525,265 Convertible debt (on an as converted basis) 368,624 349,824 Total 11,215,343 10,145,572 Warrants As of September 30, 2024 and September 30, 2023, there were outstanding and exercisable warrants to purchase 7,525,265 shares of common stock. The outstanding warrants have a weighted average exercise price of $ 1.72 per share and a weighted average remaining contractual term of 31.72 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. On July 29, 2024, the Company granted 426,268 0.31 Other Options See Note 7 Related Parties for other options granted to officers and directors in 2023 and 2024.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 9 – 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 September 30, 2024 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 September 30, 2024, the Company has not accrued any amount for litigation contingencies.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2024
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 10 – SUBSEQUENT EVENTS In October 2024, we reached agreement with our landlord in Michigan to use stock to pay a portion of our rent during the first half of 2025, continuing the arrangements in place for 2024. On October 21, 2024, the Company authorized the issuance of warrants to a consultant that will vest at the rate of 62,500 250,000 0.75 On October 21, 2024 the Company sold a convertible note in the principal amount of $ 50,000 50,000 10 1.00

INVENTORY (Tables)

INVENTORY (Tables)	9 Months Ended
	Sep. 30, 2024
Inventory Disclosure [Abstract]
SCHEDULE OF INVENTORY	At September 30, 2024 and December 31, 2023, inventory consisted of the following: SCHEDULE OF INVENTORY September 30, 2024 December 31, 2023 Raw materials $ 712,072 $ 648,537 Work-in-progress 218,815 235,811 Finished goods 212,991 296,921 Inventory, gross 1,143,878 1,181,269 Less: reserve for obsolescence (423,929 ) (331,505 ) Inventory, net $ 719,949 $ 849,764

ACCOUNTS RECEIVABLE (Tables)

ACCOUNTS RECEIVABLE (Tables)	9 Months Ended
	Sep. 30, 2024
Receivables [Abstract]
SCHEDULE OF ACCOUNTS RECEIVABLE	At September 30, 2024 and December 31, 2023, accounts receivable consisted of the following: SCHEDULE OF ACCOUNTS RECEIVABLE September 30, 2024 December 31, 2023 Accounts receivable 463,254 $ 359,357 Less: allowance for doubtful accounts (214,444 ) (150,300 ) Accounts receivable, net 248,810 $ 209,057

STOCKHOLDERS_ EQUITY (Tables)

STOCKHOLDERS’ EQUITY (Tables)	9 Months Ended
	Sep. 30, 2024
Equity [Abstract]
SCHEDULE OF STOCK OPTION PLAN ACTIVITY	SCHEDULE OF STOCK OPTION PLAN ACTIVITY Number of Weighted Weighted Aggregate Intrinsic Value Outstanding December 31, 2023 2,270,483 $ 0.67 2.72 $ 76,725 Exercised - - - - Issued 1,106,268 0.31 - - Expired & forfeited (55,297 ) 0.65 - - Outstanding September 30, 2024 3,321,454 $ 0.55 3.55 $ 738,666 Exercisable September 30, 2024 2,903,540 $ 0.58 3.37 $ 550,834
SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS SHARE	SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS SHARE September 30, 2024 December 31, 2023 Stock options 3,321,454 2,270,483 Stock warrants 7,525,265 7,525,265 Convertible debt (on an as converted basis) 368,624 349,824 Total 11,215,343 10,145,572

ORGANIZATION AND BASIS OF PRE_2

ORGANIZATION AND BASIS OF PRESENTATION (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Loss from continuing operations	$ 2,974,546	$ 2,009,247
Net cash used by continuing operations	1,634,053	$ 1,057,794
Working capital surplus (deficit)	$ (889,966)		$ 454,969

SCHEDULE OF INVENTORY (Details)

SCHEDULE OF INVENTORY (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw materials	$ 712,072	$ 648,537
Work-in-progress	218,815	235,811
Finished goods	212,991	296,921
Inventory, gross	1,143,878	1,181,269
Less: reserve for obsolescence	(423,929)	(331,505)
Inventory, net	$ 719,949	$ 849,764

SCHEDULE OF ACCOUNTS RECEIVABLE

SCHEDULE OF ACCOUNTS RECEIVABLE (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Receivables [Abstract]
Accounts receivable	$ 463,254	$ 359,357
Less: allowance for doubtful accounts	(214,444)	(150,300)
Accounts receivable, net	$ 248,810	$ 209,057

ACCOUNTS RECEIVABLE (Details Na

ACCOUNTS RECEIVABLE (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Bad debts expense	$ 98,619	$ 80,896
General and Administrative Expense [Member]
Bad debts expense	$ 80,865	$ 84,132

INVESTMENT IN SUBSIDIARY (Detai

INVESTMENT IN SUBSIDIARY (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Sep. 29, 2024	Dec. 31, 2023
Proceeds from note receivable	$ 0		$ 300,000	$ 20,000
Loss from sale of note receivable			41,782
Notes receivable	0		0			$ 341,782
Current portion of note receivable	0		0			50,000
(Loss) income from investment in subsidiary	(2,155)	$ (21,267)	7,969	19,671
Proceeds from sale of subsidiary	100,000		100,000
Gain from sale of subsidiary	56,067		56,067
Non marketable investment	$ 217,871		$ 217,871			$ 253,835
ANI [Member]
Ownership percentage	25%		25%		30%

NOTES PAYABLE AND FINANCE LEA_2

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

1 Months Ended

9 Months Ended

Jun. 10, 2024

Nov. 02, 2023

Jul. 24, 2023

Jun. 14, 2023

Oct. 26, 2022

Aug. 22, 2022

Jul. 27, 2022

Jan. 31, 2022

Jan. 26, 2022

Jan. 07, 2022

Dec. 18, 2022

Dec. 31, 2020

Sep. 30, 2024

Sep. 30, 2023

Dec. 31, 2023

Short-Term Debt [Line Items]

Proceeds from convertible debt

$ 50,000

$ 94,467

Proceeds from issuance of common stock

737,500

$ 850,332

Debt discount

728

$ 3,390

Unpaid promissory note

40,000

Current portion of finance leases

6,275

24,194

Production Equipment [Member]

Short-Term Debt [Line Items]

Finance lease, liability

$ 85,000

Lessee, finance lease, term of contract

48 months

Finance lease, principal payments

$ 2,135

Convertible Promissory Notes [Member]

Short-Term Debt [Line Items]

Debt instrument conversion price

$ 1.25

$ 1.25

$ 1.75

Proceeds from convertible debt

$ 50,000

$ 50,000

$ 50,000

$ 50,000

Debt instrument, interest rate

1%

8%

8%

8%

Maturity date

eighteen months

Number of warrants to purchase of common stock

10,000

Proceeds from issuance of common stock

$ 50,000

Proceeds from issuance of debt discount

$ 5,333

Convertible Notes Payable

$ 565,000

$ 525,000

Convertible Debt [Member]

Short-Term Debt [Line Items]

Convertible debt

$ 25,000

$ 50,000

$ 50,000

$ 50,000

$ 100,000

Maturity date

Oct. 31, 2023

Mar. 31, 2026

Mar. 31, 2025

Oct. 31, 2024

Annual payable interest percentage

8%

8%

Debt instrument conversion price

$ 1.75

$ 1.75

Proceeds from convertible debt

$ 25,000

Convertible Debt Two [Member]

Short-Term Debt [Line Items]

Maturity date

Mar. 31, 2026

Annual payable interest percentage

8%

Convertible Debt One [Member]

Short-Term Debt [Line Items]

Convertible debt

$ 25,000

Maturity date

Mar. 31, 2025

Mar. 31, 2026

Annual payable interest percentage

8%

Convertible Debt Three [Member]

Short-Term Debt [Line Items]

Annual payable interest percentage

8%

Debt instrument conversion price

$ 1.75

$ 1.75

OPERATING LEASE (Details Narrat

OPERATING LEASE (Details Narrative)		1 Months Ended
	May 31, 2020 USD ($) ft²	Feb. 28, 2023 USD ($) $ / shares	Sep. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)	May 31, 2023 $ / shares
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Lease with related party | ft²	29,220
Lessee 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 had 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.
Fair value of warrants	$ 311,718
Cash			$ 38,688	$ 527,462
Right-of-use assets			675,988	845,563
Operating lease liabilities			$ 589,344	$ 722,419
Land Lord Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Stock issued for services, values		$ 66,000
Shares issued, price per share | $ / shares		$ 1.25			$ 0.75
Cash		$ 8,056
Payments for rent		$ 10,983
Share price | $ / shares		$ 0.75

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	1 Months Ended				3 Months Ended	9 Months Ended	12 Months Ended
	Jul. 31, 2024	May 31, 2023	Apr. 30, 2023	Jan. 31, 2023	Sep. 30, 2024	Sep. 30, 2024	Dec. 31, 2023
Related Party Transaction [Line Items]
Exercise price					$ 0.55	$ 0.55	$ 0.67
Accrued rent					$ 128,402	$ 128,402	$ 30,141
Tom Berman and Ron Berman [Member]
Related Party Transaction [Line Items]
Economic interest percentage						5%
Miles Gatland [Member]
Related Party Transaction [Line Items]
Economic interest percentage						12.50%
Tom Berman [Member]
Related Party Transaction [Line Items]
Number of shares vested		7,692
Tom Berman [Member] | Maximum [Member]
Related Party Transaction [Line Items]
Number of option granted		69,228	30,000
Ronald Berman [Member]
Related Party Transaction [Line Items]
Number of option granted	60,000	45,000
Exercise price	$ 0.31	$ 0.65
Expiration period	5 years	4 years
Number of shares vested			5,000
Ronald Berman [Member] | Maximum [Member]
Related Party Transaction [Line Items]
Number of option granted		50,000
Scott Rickert [Member] | Maximum [Member]
Related Party Transaction [Line Items]
Number of option granted	30,000
President and CEO [Member]
Related Party Transaction [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Date	Dec. 31, 2024
President and CEO [Member] | Maximum [Member]
Related Party Transaction [Line Items]
Number of option granted	500,000
Directors and Officers [Member]
Related Party Transaction [Line Items]
Stock option awards					208,280	$ 208,280
Chief Financial Officer [Member] | Maximum [Member]
Related Party Transaction [Line Items]
Number of option granted		100,000
Chief Financial Officer and General Counsel [Member]
Related Party Transaction [Line Items]
Number of shares vested				5,000
Chief Financial Officer and General Counsel [Member] | Maximum [Member]
Related Party Transaction [Line Items]
Number of option granted		60,000
Related Party [Member]
Related Party Transaction [Line Items]
Accounts payable related parties					157,402	157,402	55,520
Landlord owed						128,402	30,141
Related Party [Member] | Ron Berman [Member]
Related Party Transaction [Line Items]
Accounts payable related parties					8,000	8,000	0
Accounts payable					8,000	8,000
Related Party [Member] | Tom Berman [Member]
Related Party Transaction [Line Items]
Accounts payable related parties					0	0	4,379
Salary						18,750
Scott & Jeanne Rickert [Member]
Related Party Transaction [Line Items]
Aggregate advance					42,887	42,887	42,887
Jeanne Rickert [Member]
Related Party Transaction [Line Items]
Accrued payroll					$ 16,000	$ 16,000	$ 16,000

SCHEDULE OF STOCK OPTION PLAN A

SCHEDULE OF STOCK OPTION PLAN ACTIVITY (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Equity [Abstract]
Number of Options, Outstanding	2,270,483
Weighted Average Exercise Price, Outstanding	$ 0.67
Weighted Average Remaining Contractual Terms (Years), Outstanding	3 years 6 months 18 days	2 years 8 months 19 days
Aggregate Intrinsic Value, Outstanding	$ 76,725
Number of Options, Exercised
Weighted Average Exercise Price, Exercised
Number of Options, Issued	1,106,268
Weighted Average Exercise Price, Issued	$ 0.31
Number of Options, Expired & forfeited	(55,297)
Weighted Average Exercise Price, Expired & forfeited	$ 0.65
Number of Options, Outstanding	3,321,454	2,270,483
Weighted Average Exercise Price, Outstanding	$ 0.55	$ 0.67
Aggregate Intrinsic Value, Outstanding	$ 738,666	$ 76,725
Number of Options, Exercisable	2,903,540
Weighted Average Exercise Price, Exercisable	$ 0.58
Weighted Average Remaining Contractual Terms (Years), Exercisable	3 years 4 months 13 days
Aggregate Intrinsic Value, Exercisable	$ 550,834

SCHEDULE OF ANTIDILUTIVE SECURI

SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS SHARE (Details) - shares	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	11,215,343	10,145,572
Share-Based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	3,321,454	2,270,483
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	7,525,265	7,525,265
Convertible Debt Securities [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	368,624	349,824

STOCKHOLDERS_ EQUITY (Details N

STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($)			1 Months Ended		3 Months Ended		9 Months Ended
	Jul. 29, 2024	May 30, 2023	Aug. 31, 2023	Feb. 28, 2023	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023	May 31, 2023
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.
Stock issued for services, shares							0
Number of shares sold					699,999		983,333
Number of shares sold, value					$ 525,000		$ 737,500
Common stock, shares outstanding					14,408,674		14,408,674		13,425,342
Weighted average remaining contractual term							31 months 21 days
Number of stock options granted							1,106,268
Weighted average exercise price issued							$ 0.31
2021 Equity Incentive Plan [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of stock options granted	426,268
Weighted average exercise price issued	$ 0.31
Equity Option [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock compensation expense					$ 771,495	$ 119,999	$ 787,830	$ 410,392
Common Stock and Derivative Equity Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of shares sold						533,331
Number of shares sold, value						$ 400,000
Investment						$ 250,000		$ 250,000
Stock price, per share						$ 0.75		$ 0.75
Common stock, shares outstanding						136,482		136,482
Warrant [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Sale of stock number of shares canceled						196,813
Class of Warrant or Right, Outstanding						7,525,265		7,525,265
Class of Warrant or Right, Exercise Price of Warrants or Rights						$ 1.72		$ 1.72
Three Individuals [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Shares of restricted stock			38,460
Restricted Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock issued for services, shares		76,922
Restricted Stock [Member] | Vested In May [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock vested, shares		4,273
Restricted Stock [Member] | Vest At End Of May [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock vested, shares		4,273
Restricted Stock [Member] | Vesting At End Of December 31, 2023 [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock vested, shares		4,277
Restricted Stock [Member] | Vest At End Of Each Month In December 31, 2024 [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock vested, shares		3,205
Restricted Stock [Member] | Vesting At End Of Each Month In December 31, 2024 [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock vested, shares		3,206
Land Lord Agreement [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock issued for services, shares				52,800
Shares issued, price per share				$ 1.25						$ 0.75
Partial payment, description				partial payment of rent for the nine-month period from October 2022 through March 2023. Those shares were issued in March, 2023

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - USD ($)		9 Months Ended
	Oct. 21, 2024	Sep. 30, 2024	Oct. 24, 2024
Subsequent Event [Line Items]
Number of shares granted		1,106,268
Exercise price per share
Subsequent Event [Member]
Subsequent Event [Line Items]
Annaul rate	10%
Conversion price	$ 1
Subsequent Event [Member] | Convertible Debt [Member]
Subsequent Event [Line Items]
Principal amount	$ 50,000		$ 50,000
Warrant [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Number of shares vested	62,500
Exercise price per share	$ 0.75
Warrant [Member] | Subsequent Event [Member] | Maximum [Member]
Subsequent Event [Line Items]
Number of shares granted	250,000