Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 14, 2023 | |
Document Information Line Items | ||
Entity Registrant Name | FLEXPOINT SENSOR SYSTEMS, INC. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 125,557,174 | |
Amendment Flag | false | |
Entity Central Index Key | 0000925660 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Jun. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 0-24368 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 87-0620425 | |
Entity Address, Address Line One | 5718 W. Dannon Way | |
Entity Address, Address Line Two | Suite B | |
Entity Address, City or Town | West Jordan | |
Entity Address, State or Province | UT | |
Entity Address, Postal Zip Code | 84081 | |
City Area Code | 801 | |
Local Phone Number | 568-5111 | |
Entity Interactive Data Current | Yes |
CONDENSED BALANCE SHEETS
CONDENSED BALANCE SHEETS - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Current Assets | ||
Cash and cash equivalents | ||
Accounts receivable, net of allowance for bad debts of $103,777 and $103,777 | 14,548 | 20,135 |
Deposits and prepaid expenses | 3,650 | 8,948 |
Total Current Assets | 18,198 | 29,083 |
Long-Term Deposits | 13,624 | 13,624 |
Property and Equipment, net of accumulated depreciation of $597,173 and $597,173 | ||
Operating lease – Right-of-use asset | 225,901 | 254,519 |
Goodwill | 4,896,917 | 4,896,917 |
Total Assets | 5,154,640 | 5,194,143 |
Current Liabilities | ||
Bank overdraft | 28,716 | 7,506 |
Accounts payable | 254,602 | 265,267 |
Accounts payable – related party | 57,960 | 44,713 |
Accrued liabilities | 2,589,079 | 2,416,591 |
Notes payable – due on demand | 976,391 | 766,391 |
Convertible notes payable | 180,000 | 180,000 |
Convertible notes payable - related party | 218,513 | 218,513 |
Lease liability – current portion | 57,679 | 57,679 |
Total Current Liabilities | 4,362,940 | 3,956,660 |
Lease liability – long-term | 171,222 | 198,064 |
Total Liabilities | 4,534,162 | 4,154,724 |
Stockholders' Equity | ||
Preferred stock – $0.001 par value; 1,000,000 shares authorized; no shares issued or outstanding | ||
Common stock – $0.001 par value; 200,000,000 shares authorized; 125,557,174 and 125,557,174 shares issued and outstanding, respectively | 125,557 | 125,557 |
Additional paid-in capital | 31,801,069 | 31,801,069 |
Accumulated deficit | (31,306,148) | (30,887,207) |
Total Stockholders' Equity | 620,478 | 1,039,419 |
Total Liabilities and Stockholders' Equity | $ 5,154,640 | $ 5,194,143 |
CONDENSED BALANCE SHEETS (Paren
CONDENSED BALANCE SHEETS (Parentheticals) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for bad debts (in Dollars) | $ 103,777 | $ 103,777 |
Net of accumulated amortization (in Dollars) | $ 597,173 | $ 597,173 |
Preferred stock, par value per share (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value per share (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 125,557,174 | 125,557,174 |
Common stock, shares outstanding | 125,557,174 | 125,557,174 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Design, Contract and Testing Revenue | $ 37,506 | $ 36,015 | $ 49,764 | $ 96,939 |
Operating Costs and Expenses | ||||
Cost of revenue | 9,085 | 12,022 | 14,159 | 24,184 |
Administrative and marketing expense | 150,841 | 145,379 | 299,551 | 323,258 |
Research and development expense | 58,259 | 56,119 | 109,250 | 116,212 |
Total Operating Costs and Expenses | 218,186 | 213,520 | 422,961 | 463,665 |
Net Operating Income (Loss) | (180,680) | (177,505) | (373,197) | (366,715) |
Other Income and Expenses | ||||
Interest expense | (30,017) | (16,922) | (46,944) | (37,596) |
Interest income | ||||
Other income | 600 | 300 | 1,200 | 600 |
Gain (Loss) on conversion/forgiveness of debt | 46,194 | |||
Gain (Loss) on sale of assets | ||||
Total Other Income (Expense) | (29,417) | (16,622) | (45,744) | (83,190) |
Net Income (Loss) | $ (210,097) | $ (194,127) | $ (418,941) | $ (449,905) |
Basic and Diluted Loss per Common Share (in Dollars per share) | $ 0 | $ 0 | $ (0.01) | $ 0 |
Basic and Diluted Weighted-Average Common Shares Outstanding (in Shares) | 125,557,174 | 125,557,174 | 125,557,174 | 120,994,141 |
CONDENSED STATEMENTS OF OPERA_2
CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) (Parentheticals) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Diluted Loss per Common Share | $ 0 | $ 0 | $ (0.01) | $ (0.01) |
Diluted Weighted-Average Common Shares Outstanding (in Shares) | 125,557,174 | 125,557,174 | 125,557,174 | 120,994,141 |
CONDENSED STATEMENTS OF STOCKHO
CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED) - USD ($) | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total |
Balance at Dec. 31, 2021 | $ 114,396 | $ 31,254,183 | $ (30,082,376) | $ 1,286,203 |
Balance (in Shares) at Dec. 31, 2021 | 114,396,242 | |||
Common stock issued for conversion of debt | $ 11,161 | 593,081 | 604,242 | |
Common stock issued for conversion of debt (in Shares) | 11,160,932 | |||
Net loss | (255,778) | (255,778) | ||
Balance at Mar. 31, 2022 | $ 125,557 | 31,847,263 | (30,338,151) | 1,634,669 |
Balance (in Shares) at Mar. 31, 2022 | 125,557,174 | |||
Balance at Dec. 31, 2021 | $ 114,396 | 31,254,183 | (30,082,376) | 1,286,203 |
Balance (in Shares) at Dec. 31, 2021 | 114,396,242 | |||
Net loss | (449,905) | |||
Balance at Jun. 30, 2022 | $ 125,557 | 31,847,264 | (30,532,281) | 1,440,540 |
Balance (in Shares) at Jun. 30, 2022 | 125,557,174 | |||
Balance at Mar. 31, 2022 | $ 125,557 | 31,847,263 | (30,338,151) | 1,634,669 |
Balance (in Shares) at Mar. 31, 2022 | 125,557,174 | |||
Net loss | (194,127) | (194,127) | ||
Balance at Jun. 30, 2022 | $ 125,557 | 31,847,264 | (30,532,281) | 1,440,540 |
Balance (in Shares) at Jun. 30, 2022 | 125,557,174 | |||
Balance at Dec. 31, 2022 | $ 125,557 | 31,801,069 | (30,887,207) | 1,039,419 |
Balance (in Shares) at Dec. 31, 2022 | 125,557,174 | |||
Net loss | (208,844) | (208,844) | ||
Balance at Mar. 31, 2023 | $ 125,557 | 31,801,069 | (31,096,051) | 830,574 |
Balance (in Shares) at Mar. 31, 2023 | 125,557,174 | |||
Balance at Dec. 31, 2022 | $ 125,557 | 31,801,069 | (30,887,207) | 1,039,419 |
Balance (in Shares) at Dec. 31, 2022 | 125,557,174 | |||
Net loss | (418,941) | |||
Balance at Jun. 30, 2023 | $ 125,557 | 31,801,069 | (31,306,148) | 620,478 |
Balance (in Shares) at Jun. 30, 2023 | 125,557,174 | |||
Balance at Mar. 31, 2023 | $ 125,557 | 31,801,069 | (31,096,051) | 830,574 |
Balance (in Shares) at Mar. 31, 2023 | 125,557,174 | |||
Net loss | (210,097) | (210,097) | ||
Balance at Jun. 30, 2023 | $ 125,557 | $ 31,801,069 | $ (31,306,148) | $ 620,478 |
Balance (in Shares) at Jun. 30, 2023 | 125,557,174 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (418,941) | $ (449,905) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | ||
Loss (Gain) on conversion of debt | 46,194 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 5,587 | (200) |
Prepaid expenses and other assets | 5,298 | (2,711) |
Right-of-use asset | 28,618 | |
Accounts payable | (10,665) | 18,206 |
Accounts payable – related parties | 13,247 | 7,980 |
Accrued liabilities | 172,488 | 164,924 |
Lease liability – long-term | (26,842) | |
Net Cash Provided by (Used) in Operating Activities | (231,210) | (222,299) |
Cash Flows from Financing Activities: | ||
Proceeds from borrowings under notes payable | 225,000 | 195,000 |
Proceeds from (payment of) bank overdrafts | 21,210 | 20,897 |
Advances from related party | 6,000 | |
Payment on loans payable | (15,000) | |
Net Cash Provided by Financing Activities | 231,210 | 221,897 |
Net Change in Cash and Cash Equivalents | (402) | |
Cash and Cash Equivalents at Beginning of Period | 402 | |
Cash and Cash Equivalents at End of Period | ||
Supplemental Cash Flow Information: | ||
Cash paid for income taxes | ||
Cash paid for interest | ||
Non-cash Investing and Financing Activity | ||
Common stock issued in conversion of notes payable | $ 604,242 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 – Condensed Interim Financial Statements – Nature of Operations The COVID-19 Pandemic (“the Pandemic”) has had a dramatic effect on our business as well as the business of our customers. The wide-ranging effects on the world-wide business market has led to a general reluctance for businesses to move forward with entering into major commitments until their future markets have been clarified. Because of this, we have experienced a significant slowdown in the size and number of orders received and, while we cannot predict when the influence of the Pandemic will end, we expect that orders will return to their former levels and increase following a return to normal business operations. We recognize that, with the changes brought by the pandemic, demand for our products may fluctuate in the future. We recognize these risks and are taking every effort to prevent or mitigate them as they arise. Use of Estimates – Cash and Cash Equivalents – Fair Value Measurements Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is disclosed and is determined based on the lowest level input that is significant to the fair value measurement. The carrying value of the Company’s cash, accounts payable, short-term borrowings (including convertible notes payable), and other current assets and liabilities approximate fair value because of their short-term maturity. Accounts Receivable – Inventories – Property and Equipment– Valuation of Long-lived Assets Intangible Assets Research and Development Lease Obligations Leases expense in excess of cash payments during the early years of the lease and rent expenses less than cash payments in later years. The difference between rent expense recognized and actual cash payments is typically represented as the spread between the ROU asset and lease liability. Goodwill Revenue Recognition – Revenue from Contracts with Customers A part of our customer base is made up of international customers. The table below allocates revenue between domestic and international customers. The following table presents Flexpoint Sensor Systems revenues disaggregated by region and product type: Three months ended: June 30, June 30, 2023 2022 Consumer Long-term Consumer Long-term Segments Products Contract Total Products Contract Total Domestic $ 538 - 538 $ 3,166 - 3,166 International 36,968 - 36,968 32,848 - 32,848 $ 37,506 - 37,506 $ 36,015 - 36,015 Components $ 538 - 538 $ 35,615 - 35,615 Engineering Services 36,968 - 36,968 400 - 400 $ 37,506 - 37,506 $ 36,015 - 36,015 Six months ended: June 30, June 30, 2023 2022 Consumer Long-term Consumer Long-term Segments Products Contract Total Products Contract Total Domestic` $ 1,175 - 1,175 $ 13,404 - 13,404 International 48,589 - 48,589 83,535 - 83,535 $ 49,764 - 49,764 $ 96,939 - 96,939 Components $ 1,175 - 1,175 $ 83,846 - 83,846 Engineering Services 45,589 - 45,589 13,093 - 13,093 $ 49,764 - 49,764 $ 96,939 - 96,939 Basic and Diluted Loss Per Share – Concentrations and Credit Risk - Income Taxes - Recent Accounting Pronouncements Simplified Convertible Instrument Framework The Company has reviewed all other recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on its consolidated results of operation, financial position and cash flows. Based on that review, the Company believes that none of these pronouncements will have a significant effect on its current or future earnings or operations. |
GOING CONCERN
GOING CONCERN | 6 Months Ended |
Jun. 30, 2023 | |
Going Concern [Abstract] | |
GOING CONCERN | NOTE 2– GOING CONCERN The Company continues to accumulate significant operating losses and has an accumulated deficit of $31,306,148 at June 30, 2023. These factors raise substantial doubt about the Company’s ability to continue as a going concern for a period of one year from the issuance of these financial statements. The financial statements do not include any adjustments that might result from the outcome of these uncertainties. Management is seeking additional funding to provide operating capital for its operations until such time as revenues are sufficient to sustain our level of operations. However, there is no assurance that additional funding will be available on acceptable terms, if at all. |
NOTES PAYABLE
NOTES PAYABLE | 6 Months Ended |
Jun. 30, 2023 | |
Notes Payable [Abstract] | |
NOTES PAYABLE | NOTE 3 – NOTES PAYABLE During the six months ended June 30, 2023, the Company received nine payments of $25,000 each for a total of $225,000, from two of the convertible note holders as working capital loans to enable the Company to meet its obligations for operating expenses. The advances bear interest at the rate of 10%, but there are no other terms established. While the intent is to memorialize these advances through the issuance of a convertible note, as of the date of this filing that has not been done. Therefore these advances are treated as on demand notes and are included in our current liabilities. Until such agreement is reached, the balance of $976,391 as of June 30, 2023 is unsecured and due on demand. At June 30, 2023 there is $62,032 in accrued unpaid interest relating to these notes. In August 2020 the Company received $50,000 from a large shareholder to meet operating expenses. The shareholder indicated that he would want the $50,000 loan repaid when the Company was in a position to do so. The shareholder subsequently provided an additional $5,000, for a total loan of $55,000. The balance is non-interest bearing and due on demand. Periodic payments have been made to reduce the outstanding balance. During the six months ended June 30, 2023 payments totaling $15,000 were made, leaving a remaining balance of $10,000 which is non-interest bearing and due on demand. |
CONVERTIBLE NOTES PAYABLE
CONVERTIBLE NOTES PAYABLE | 6 Months Ended |
Jun. 30, 2023 | |
Convertible Notes Payable [Abstract] | |
CONVERTIBLE NOTES PAYABLE | NOTE 4 – CONVERTIBLE NOTES PAYABLE Convertible Notes Payable At June 30, 2023, there are notes outstanding with principal balances which total $180,000. Of the notes, $140,000 are convertible notes bearing a 10% annual rate of interest (with a 15% default rate). Of these notes, $100,000 is convertible into shares of common stock at the rate of $0.05 per share and $40,000 is convertible at $0.07 per share. The remaining $40,000 is a convertible note entered into on August 8, 2011 with a former Company Director, at a conversion rate of $0.20 per share. That note was due on December 31, 2015 and bears a default interest rate of 10%. The notes are all in default. At June 30, 2023 there is $160,537 in accrued unpaid interest relating to these convertible notes. Convertible Note Payable - Related Party At June 30, 2023, there are notes outstanding with two directors of the Company with balances of $164,257 and $54,257, respectively. The notes bear an 8% annual rate of interest with a 12% default rate and are convertible into shares of restricted common stock. Of the notes, $114,513 is convertible into shares of restricted common stock at $0.07 per share and $104,000 of the notes are convertible at $0.06 per share. All of these notes have a maturity date of June 30, 2023. At June 30, 2023 there is $93,375 in accrued unpaid interest relating to these related party convertible notes. |
STOCK OPTION PLANS
STOCK OPTION PLANS | 6 Months Ended |
Jun. 30, 2023 | |
Stock Option Plans [Abstract] | |
STOCK OPTION PLANS | NOTE 5 – On August 25, 2005, the Board of Directors of the Company approved and adopted the 2005 Stock Incentive Plan (the Plan). The Plan became effective upon its adoption by the Board and continued in effect for ten years, terminating on August 25, 2015. This plan was approved by the stockholders of the Company at their annual meeting of shareholders on November 22, 2005. Under the Plan, the exercise price for all options issued will not be less than the average quoted closing market price of the Company’s trading common stock for the thirty-day period immediately preceding the grant date plus a premium of ten percent. The maximum aggregate number of shares that may be awarded under the plan is 2,500,000 shares. The Company continues to utilize the Black-Scholes option-pricing model for calculating the fair value of the options granted as defined by ASC Topic 718, which is an acceptable valuation approach under ASC 718. This model requires the input of subjective assumptions, including the expected price volatility of the underlying stock. On August 24, 2015, the Board of Directors approved the issuance of options to purchase 2,185,000 shares of the Company’s common stock. Of the total issued, 1,960,000 options were issued to replace options held by directors and employees which were to expire and 225,000 options were issued to new employees. Of the options issued, 640,000 have an option price of $0.14 per share, 500,000 have an option price of $0.15 per share, 995,000 have an option price of $0.20 per share, and 50,000 have an option price of $0.25 per share. Options issued as replacement shall have immediate vesting terms. Options which are not replacements shall vest over a two Projected data related to the expected volatility and expected life of stock options is based upon historical and other information, and notably, the Company's common stock has limited trading history. Changes in these subjective assumptions can materially affect the fair value of the estimate, and therefore, the existing valuation models do not provide a precise measure of the fair value of the Company's employee stock options. Between August 25, 2005 and August 25, 2019, the Company granted options to employees to purchase an aggregate 3,096,000 shares of common stock at exercise prices ranging from $0.15 to $2.07 per share. The options all vested by December 31, 2017 and expire 10 years from the date of grant. On December 30, 2020 the Board of Directors approved the revaluation of all outstanding stock options, reducing the option price to $0.05 per share. The Company recorded a charge of $8,203 as the result of this change. As of the years ended December 31, 2005 through 2020, the Company recognized a total of $2,451,971 of stock-based compensation expense, which includes charges of $8,203 in 2020, leaving $0 in unrecognized expense as of December 31, 2021. There were 1,900,000 employee stock options outstanding at June 30, 2023. A summary of all employee options outstanding and exercisable under the plan as of June 30, 2023 is set forth below: Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at the beginning of period 1,900,000 $ 0.05 2.65 $ -- Granted -- -- -- -- Expired -- -- -- -- Forfeited -- -- -- -- Outstanding at the end of Period 1,900,000 $ 0.05 2.15 $ -- Exercisable at the end of Period 1,900,000 $ 0.05 2.15 $ -- |
CAPITAL STOCK
CAPITAL STOCK | 6 Months Ended |
Jun. 30, 2023 | |
Capital Stock [Abstract] | |
CAPITAL STOCK | NOTE 6 – CAPITAL STOCK Preferred Stock – There are 1,000,000 shares of preferred stock with a par value of $0.001 per share authorized. At June 30, 2023 and December 31, 2022, there were no Common Stock – There are 200,000,000 shares of common stock with a par value of $0.001 per share authorized. At June 30, 2023 and December 31, 2022, there were 125,557,174 and 125,557,174 shares of common stock issued and outstanding, respectively. The Company issued 11,160,932 shares of restricted common stock during the year ended December 31, 2022 for the retirement of $445,000 of notes payable and convertible notes, and $103,047 of accrued interest. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 7– COMMITMENTS AND CONTINGENCIES The Company currently occupies approximately 8,029 square feet of office and manufacturing space leased from D&M Management, Inc. The building is located in a commercial business district in West Jordan, Utah which consists primarily of high-tech manufacturing firms and it is located adjacent to a major intersection, allowing easy access to Utah’s main interstate highway. The original lease was for $6,787 per month and was for a period of twelve months, with a termination date of August 31, 2022. A new lease for a period of twelve months to commence September 1, 2022 at a monthly rate of $6,657 was entered into on June 20, 2022. The lease has an expiration date of August 31, 2023 and contains a 90-day notice clause if our intent is to either terminate the lease or renew the lease for one additional three-year term. We recognize lease expense on a straight-line basis over the term of the lease. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 8 – RELATED PARTY TRANSACTIONS At June 30, 2023, there was $57,960 payable to the Chief Executive Officer. During the six-months ended June 30, 2023 the Chief Executive Officer provided $11,748 to be used for operating expenses. At December 31, 2022, the Company had amounts of $43,713 payable to its Chief Executive Officer for funds provided to meet the operating expense obligations of the Company. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 9 – SUBSEQUENT EVENTS In July, 2023, the Company received $25,000 in additional funding from holders of convertible notes. There has not been a note written on these funds, and no terms have been agreed to. The funding is to bear interest at the rate of 10% per annum. The Company is recording the receipt of the funding as on demand notes until such time as terms are agreed upon by the parties. The Company has evaluated all other subsequent events pursuant to ASC Topic 855 and has determined that there are no events that require disclosure as of the date of issuance. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Condensed Interim Financial Statements | Condensed Interim Financial Statements – |
Nature of Operations | Nature of Operations The COVID-19 Pandemic (“the Pandemic”) has had a dramatic effect on our business as well as the business of our customers. The wide-ranging effects on the world-wide business market has led to a general reluctance for businesses to move forward with entering into major commitments until their future markets have been clarified. Because of this, we have experienced a significant slowdown in the size and number of orders received and, while we cannot predict when the influence of the Pandemic will end, we expect that orders will return to their former levels and increase following a return to normal business operations. We recognize that, with the changes brought by the pandemic, demand for our products may fluctuate in the future. We recognize these risks and are taking every effort to prevent or mitigate them as they arise. |
Use of Estimates | Use of Estimates – |
Cash and Cash Equivalents | Cash and Cash Equivalents – |
Fair Value Measurements | Fair Value Measurements Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is disclosed and is determined based on the lowest level input that is significant to the fair value measurement. The carrying value of the Company’s cash, accounts payable, short-term borrowings (including convertible notes payable), and other current assets and liabilities approximate fair value because of their short-term maturity. |
Accounts Receivable | Accounts Receivable – |
Inventories | Inventories – |
Property and Equipment | Property and Equipment– |
Valuation of Long-lived Assets | Valuation of Long-lived Assets |
Intangible Assets | Intangible Assets |
Research and Development | Research and Development |
Lease Obligations | Lease Obligations Leases expense in excess of cash payments during the early years of the lease and rent expenses less than cash payments in later years. The difference between rent expense recognized and actual cash payments is typically represented as the spread between the ROU asset and lease liability. |
Goodwill | Goodwill |
Revenue Recognition | Revenue Recognition – Revenue from Contracts with Customers A part of our customer base is made up of international customers. The table below allocates revenue between domestic and international customers. The following table presents Flexpoint Sensor Systems revenues disaggregated by region and product type: Three months ended: June 30, June 30, 2023 2022 Consumer Long-term Consumer Long-term Segments Products Contract Total Products Contract Total Domestic $ 538 - 538 $ 3,166 - 3,166 International 36,968 - 36,968 32,848 - 32,848 $ 37,506 - 37,506 $ 36,015 - 36,015 Components $ 538 - 538 $ 35,615 - 35,615 Engineering Services 36,968 - 36,968 400 - 400 $ 37,506 - 37,506 $ 36,015 - 36,015 Six months ended: June 30, June 30, 2023 2022 Consumer Long-term Consumer Long-term Segments Products Contract Total Products Contract Total Domestic` $ 1,175 - 1,175 $ 13,404 - 13,404 International 48,589 - 48,589 83,535 - 83,535 $ 49,764 - 49,764 $ 96,939 - 96,939 Components $ 1,175 - 1,175 $ 83,846 - 83,846 Engineering Services 45,589 - 45,589 13,093 - 13,093 $ 49,764 - 49,764 $ 96,939 - 96,939 |
Basic and Diluted Loss per Share | Basic and Diluted Loss Per Share – |
Concentrations and Credit Risk | Concentrations and Credit Risk - |
Income Taxes | Income Taxes - |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Simplified Convertible Instrument Framework The Company has reviewed all other recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on its consolidated results of operation, financial position and cash flows. Based on that review, the Company believes that none of these pronouncements will have a significant effect on its current or future earnings or operations. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of disaggregated revenues | The following table presents Flexpoint Sensor Systems revenues disaggregated by region and product type: Three months ended: June 30, June 30, 2023 2022 Consumer Long-term Consumer Long-term Segments Products Contract Total Products Contract Total Domestic $ 538 - 538 $ 3,166 - 3,166 International 36,968 - 36,968 32,848 - 32,848 $ 37,506 - 37,506 $ 36,015 - 36,015 Components $ 538 - 538 $ 35,615 - 35,615 Engineering Services 36,968 - 36,968 400 - 400 $ 37,506 - 37,506 $ 36,015 - 36,015 Six months ended: June 30, June 30, 2023 2022 Consumer Long-term Consumer Long-term Segments Products Contract Total Products Contract Total Domestic` $ 1,175 - 1,175 $ 13,404 - 13,404 International 48,589 - 48,589 83,535 - 83,535 $ 49,764 - 49,764 $ 96,939 - 96,939 Components $ 1,175 - 1,175 $ 83,846 - 83,846 Engineering Services 45,589 - 45,589 13,093 - 13,093 $ 49,764 - 49,764 $ 96,939 - 96,939 |
STOCK OPTION PLANS (Tables)
STOCK OPTION PLANS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Stock Option Plans [Abstract] | |
Schedule of stock option activity | A summary of all employee options outstanding and exercisable under the plan as of June 30, 2023 is set forth below: Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at the beginning of period 1,900,000 $ 0.05 2.65 $ -- Granted -- -- -- -- Expired -- -- -- -- Forfeited -- -- -- -- Outstanding at the end of Period 1,900,000 $ 0.05 2.15 $ -- Exercisable at the end of Period 1,900,000 $ 0.05 2.15 $ -- |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Percentage of deposit | 50% | ||
Allowance account | $ 103,777 | $ 103,777 | |
Sale of deposit | 50% | ||
Outstanding common share | 11,762,742 | 11,043,870 | |
Minimum [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Property and equipment, useful lives | 3 years | ||
Intangible assets, useful lives | 5 years | ||
Maximum [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Property and equipment, useful lives | 10 years | ||
Intangible assets, useful lives | 15 years | ||
Customer Three [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Risk percentage | 98% | ||
Sales [Member] | Customer Three [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Risk percentage | 74% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of disaggregated revenues - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue, Major Customer [Line Items] | ||||
Revenue | $ 37,506 | $ 36,015 | $ 49,764 | $ 96,939 |
Domestic [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue | 538 | 3,166 | 1,175 | 13,404 |
International [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue | 36,968 | 32,848 | 48,589 | 83,535 |
Components [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue | 538 | 35,615 | 1,175 | 83,846 |
Engineering Services [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue | 36,968 | 400 | 45,589 | 13,093 |
Consumer Products [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue | 37,506 | 36,015 | 49,764 | 96,939 |
Consumer Products [Member] | Domestic [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue | 538 | 3,166 | 1,175 | 13,404 |
Consumer Products [Member] | International [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue | 36,968 | 32,848 | 48,589 | 83,535 |
Consumer Products [Member] | Components [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue | 538 | 35,615 | 1,175 | 83,846 |
Consumer Products [Member] | Engineering Services [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue | 36,968 | 400 | 45,589 | 13,093 |
Long-term Contract [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue | ||||
Long-term Contract [Member] | Domestic [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue | ||||
Long-term Contract [Member] | International [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue | ||||
Long-term Contract [Member] | Components [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue | ||||
Long-term Contract [Member] | Engineering Services [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue |
GOING CONCERN (Details)
GOING CONCERN (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Going Concern [Abstract] | ||
Accumulated deficit | $ (31,306,148) | $ (30,887,207) |
NOTES PAYABLE (Details)
NOTES PAYABLE (Details) - USD ($) | 1 Months Ended | 6 Months Ended | |
Aug. 31, 2020 | Jun. 30, 2023 | Jun. 30, 2022 | |
NOTES PAYABLE (Details) [Line Items] | |||
Notes payable amount | $ 225,000 | ||
Accrued unpaid interest | 62,032 | ||
Loan from related party | $ 6,000 | ||
Loan repaid | $ 50,000 | ||
Non-interest bearing and due on demand | 10,000 | ||
Working Capital Loan One [Member] | |||
NOTES PAYABLE (Details) [Line Items] | |||
Notes payable amount | $ 25,000 | ||
Note Payable [Member] | |||
NOTES PAYABLE (Details) [Line Items] | |||
Bear interest rate | 10% | ||
Unsecured Debt [Member] | |||
NOTES PAYABLE (Details) [Line Items] | |||
Notes payable amount | $ 976,391 | ||
Shareholders [Member] | |||
NOTES PAYABLE (Details) [Line Items] | |||
Non-interest bearing and due on demand | $ 15,000 | ||
Shareholders [Member] | Operating Expenses Loan One [Member] | |||
NOTES PAYABLE (Details) [Line Items] | |||
Loan from related party | 5,000 | ||
Shareholders [Member] | Operating Expenses Loan [Member] | |||
NOTES PAYABLE (Details) [Line Items] | |||
Loan from related party | 50,000 | ||
Shareholders [Member] | Operating Expenses Loan Total [Member] | |||
NOTES PAYABLE (Details) [Line Items] | |||
Loan from related party | $ 55,000 |
CONVERTIBLE NOTES PAYABLE (Deta
CONVERTIBLE NOTES PAYABLE (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2023 | Aug. 08, 2011 | |
CONVERTIBLE NOTES PAYABLE (Details) [Line Items] | ||
Convertible notes payable, principal amount outstanding | $ 180,000 | |
Convertible Debt [Member] | ||
CONVERTIBLE NOTES PAYABLE (Details) [Line Items] | ||
Convertible notes payable, principal amount outstanding | $ 140,000 | |
Debt instrument, interest rate | 10% | |
Debt instrument, default rate | 15% | |
Convertible Notes Payable to Related Party [Member] | Director [Member] | ||
CONVERTIBLE NOTES PAYABLE (Details) [Line Items] | ||
Debt instrument, interest rate | 8% | |
Debt instrument, default rate | 12% | |
Convertible Notes Payable to Related Party [Member] | One Director [Member] | ||
CONVERTIBLE NOTES PAYABLE (Details) [Line Items] | ||
Convertible notes payable, principal amount outstanding | $ 164,257 | |
Convertible Notes Payable to Related Party [Member] | Two Director [Member] | ||
CONVERTIBLE NOTES PAYABLE (Details) [Line Items] | ||
Convertible notes payable, principal amount outstanding | 54,257 | |
Convertible Common Stock [Member] | ||
CONVERTIBLE NOTES PAYABLE (Details) [Line Items] | ||
Convertible into shares of common stock | $ 100,000 | |
Debt instrument, conversion price (in Dollars per share) | $ 0.05 | |
Convertible Notes Payable [Member] | ||
CONVERTIBLE NOTES PAYABLE (Details) [Line Items] | ||
Convertible into shares of common stock | $ 40,000 | |
Debt instrument, conversion price (in Dollars per share) | $ 0.07 | |
Debt instrument, maturity date | Dec. 31, 2015 | |
Convertible Notes Payable [Member] | Director [Member] | ||
CONVERTIBLE NOTES PAYABLE (Details) [Line Items] | ||
Debt instrument, interest rate | 10% | |
Debt instrument, conversion price (in Dollars per share) | $ 0.2 | |
Convertible notes payable, balance | $ 40,000 | |
Accrued interest | $ 160,537 | |
Restricted Stock [Member] | Convertible Notes Payable to Related Party [Member] | ||
CONVERTIBLE NOTES PAYABLE (Details) [Line Items] | ||
Debt instrument, conversion price (in Dollars per share) | $ 0.07 | |
Convertible notes payable, balance | $ 114,513 | |
Debt instrument, maturity date | Jun. 30, 2023 | |
Accrued interest | $ 93,375 | |
Conversion debt amount | $ 104,000 | |
Convertible notes payable, rest balance conversion price (in Dollars per share) | $ 0.06 |
STOCK OPTION PLANS (Details)
STOCK OPTION PLANS (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Aug. 24, 2015 | Dec. 31, 2005 | Dec. 30, 2020 | Aug. 25, 2019 | Aug. 25, 2015 | Aug. 25, 2005 | Jun. 30, 2023 | Dec. 31, 2020 | Dec. 31, 2021 | |
STOCK OPTION PLANS (Details) [Line Items] | |||||||||
Premium percent | 10% | ||||||||
Issued of options for expire of common shares | 225,000 | ||||||||
Options granted during period | 3,096,000 | ||||||||
Exercise price of stock options granted, minimum (in Dollars per share) | $ 0.15 | ||||||||
Exercise price of stock options granted, maximum (in Dollars per share) | $ 2.07 | ||||||||
Option expiration period | 10 years | ||||||||
Stock-based compensation expense (in Dollars) | $ 2,451,971 | ||||||||
Unrecognized compensation cost related to employee stock options (in Dollars) | $ 0 | ||||||||
Options outstanding | 1,900,000 | ||||||||
2005 Stock Incentive Plan [Member] | |||||||||
STOCK OPTION PLANS (Details) [Line Items] | |||||||||
Effective term | 10 years | ||||||||
Shares authorized | 2,500,000 | ||||||||
Employee Stock Options [Member] | |||||||||
STOCK OPTION PLANS (Details) [Line Items] | |||||||||
Options outstanding | 1,900,000 | ||||||||
Stock Options [Member] | |||||||||
STOCK OPTION PLANS (Details) [Line Items] | |||||||||
Option price reduced (in Dollars per share) | $ 0.05 | ||||||||
Stock-based compensation expense (in Dollars) | $ 8,203 | $ 8,203 | |||||||
Stock Options [Member] | 2005 Stock Incentive Plan [Member] | |||||||||
STOCK OPTION PLANS (Details) [Line Items] | |||||||||
Issuance of options for purchase of common shares | 2,185,000 | ||||||||
Option vesting period | 2 years | ||||||||
Options granted during period | 3,096,000 | ||||||||
Exercise price of stock options granted, minimum (in Dollars per share) | $ 0.15 | ||||||||
Exercise price of stock options granted, maximum (in Dollars per share) | $ 2.07 | ||||||||
Option expiration period | 10 years | ||||||||
Stock Options [Member] | Exercise Price Range One [Member] | 2005 Stock Incentive Plan [Member] | |||||||||
STOCK OPTION PLANS (Details) [Line Items] | |||||||||
Issuance of options for purchase of common shares | 640,000 | ||||||||
Exercise price of stock options granted (in Dollars per share) | $ 0.14 | ||||||||
Stock Options [Member] | Exercise Price Range Two [Member] | 2005 Stock Incentive Plan [Member] | |||||||||
STOCK OPTION PLANS (Details) [Line Items] | |||||||||
Issuance of options for purchase of common shares | 500,000 | ||||||||
Exercise price of stock options granted (in Dollars per share) | $ 0.15 | ||||||||
Stock Options [Member] | Exercise Price Range Three [Member] | 2005 Stock Incentive Plan [Member] | |||||||||
STOCK OPTION PLANS (Details) [Line Items] | |||||||||
Issuance of options for purchase of common shares | 995,000 | ||||||||
Exercise price of stock options granted (in Dollars per share) | $ 0.2 | ||||||||
Stock Options [Member] | Exercise Price Range Four [Member] | 2005 Stock Incentive Plan [Member] | |||||||||
STOCK OPTION PLANS (Details) [Line Items] | |||||||||
Issuance of options for purchase of common shares | 50,000 | ||||||||
Exercise price of stock options granted (in Dollars per share) | $ 0.25 | ||||||||
Stock Options [Member] | Director [Member] | 2005 Stock Incentive Plan [Member] | |||||||||
STOCK OPTION PLANS (Details) [Line Items] | |||||||||
Issuance of options for purchase of common shares | 1,960,000 |
STOCK OPTION PLANS (Details) -
STOCK OPTION PLANS (Details) - Schedule of stock option activity | 6 Months Ended |
Jun. 30, 2023 USD ($) $ / shares shares | |
Schedule of Stock Option Activity [Abstract] | |
Shares Outstanding at the beginning of period | shares | 1,900,000 |
Weighted Average Exercise Price Outstanding at the beginning of period | $ / shares | $ 0.05 |
Weighted Average Remaining Contractual Life (Years) Outstanding at the beginning of period | 2 years 7 months 24 days |
Aggregate Intrinsic Value Outstanding at the beginning of period | $ | |
Shares Granted | shares | |
Weighted Average Exercise Price Granted | $ / shares | |
Weighted Average Remaining Contractual Life (Years) Granted | |
Aggregate Intrinsic Value Granted | $ | |
Shares Expired | shares | |
Weighted Average Exercise Price Expired | $ / shares | |
Weighted Average Remaining Contractual Life (Years) Expired | |
Aggregate Intrinsic Value Expired | $ | |
Shares Forfeited | shares | |
Weighted Average Exercise Price Forfeited | $ / shares | |
Weighted Average Remaining Contractual Life (Years) Forfeited | |
Aggregate Intrinsic Value Forfeited | $ | |
Shares Outstanding at the end of Period | shares | 1,900,000 |
Weighted Average Exercise Price Outstanding at the end of Period | $ / shares | $ 0.05 |
Weighted Average Remaining Contractual Life (Years) Outstanding at the end of Period | 2 years 1 month 24 days |
Aggregate Intrinsic Value Outstanding at the end of Period | $ | |
Shares Exercisable at the end of Period | shares | 1,900,000 |
Weighted Average Exercise Price Exercisable at the end of Period | $ / shares | $ 0.05 |
Weighted Average Remaining Contractual Life (Years) Exercisable at the end of Period | 2 years 1 month 24 days |
Aggregate Intrinsic Value Exercisable at the end of Period | $ |
CAPITAL STOCK (Details)
CAPITAL STOCK (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Jun. 30, 2023 | |
Capital Stock [Abstract] | ||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares outstanding | ||
Preferred stock, shares issued | ||
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares outstanding | 125,557,174 | 125,557,174 |
Common stock, shares issued | 125,557,174 | 125,557,174 |
Restricted common stock, shares issued | 11,160,932 | |
Convertible notes note payable (in Dollars) | $ 445,000 | |
Convertible notes accrued interest (in Dollars) | $ 103,047 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | 6 Months Ended | |
Sep. 01, 2022 USD ($) | Jun. 30, 2023 USD ($) m² | |
Commitments and Contingencies [Abstract] | ||
Area of office and manufacturing space | ft² (in Square Meters) | m² | 8,029 | |
Original lease | $ 6,787 | |
New lease of monthly rate | $ 6,657 | |
Lease expiration date | Aug. 31, 2023 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - Chief Executive Officer [Member] - USD ($) | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||
Payable amount | $ 57,960 | $ 43,713 |
Operating expenses | $ 11,748 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Jul. 31, 2023 | |
SUBSEQUENT EVENTS (Details) [Line Items] | ||
Rate per annum | 10% | |
Forecast [Member] | ||
SUBSEQUENT EVENTS (Details) [Line Items] | ||
Received additional amount | $ 25,000 |