NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER
30, 2021
(unaudited)
NOTE
1 – ORGANIZATION AND BASIS OF PRESENTATION
Organization
Nano
Magic Holdings Inc. (“we”, “us”, “our”, “Nano Magic” or the “Company”), a
Delaware corporation, develops and sells a portfolio of nano-layer coatings, nano-based cleaners, and nano-composite products based on
its proprietary technology, and performs nanotechnology product research and development generating revenues through performing contract
services. On March 3, 2020, we changed our name from PEN Inc. to Nano Magic Inc. and on March 2, 2021 we changed our name to Nano Magic
Holdings Inc.
Through
the Company’s wholly-owned subsidiary, Nano Magic LLC, formerly known as PEN Brands LLC, we develop, manufacture and sell consumer
and institutional products using nanotechnology to deliver unique performance attributes at the surfaces of a wide variety of substrates.
These products are marketed internationally directly to consumers and also to retailers and other institutional customers. On March 31,
2020, PEN Brands LLC changed its name to Nano Magic LLC.
Through
the Company’s wholly-owned subsidiary, Applied Nanotech, Inc., we primarily perform contract research services for the Company
and for governmental and private customers.
Basis
of Presentation
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 September 30, 2021 and for the three and nine months ended September
30, 2021 and 2020. The results of operations for the three and nine months ended September 30, 2021 are not necessarily indicative of
the operating results for the full year ending December 31, 2021 or any other period. The balance sheet at December 31, 2020 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, 2020 and for the year then ended, which were filed with the Securities and Exchange Commission on Form 10-K on May 28,
2021.
Going
Concern Matters and Management’s Plan
As
indicated in the accompanying condensed consolidated financial statements, the company has positive working capital on September 30,
2021 and at December 31, 2020, including $1,014,971 and $288,134 of cash at September 30, 2021 and December 31, 2020, respectively. The
company had cash used by operations of $641,196 for the nine-months ended September 30, 2021, and a net loss of $860,769 for the period
and a net loss of $781,055 and negative cash flows from operations of $2,001,044 for the year ended December 31, 2020. The consolidated
statement of operations also reflects an increase in Product sales of $1,800,552 or 84% for the nine months ended September 30, 2021
as compared to the nine months ended September 30, 2020. Management has considered whether there is substantial doubt about its ability
to continue as a going concern in light of the operating losses and historical negative cash flows from operations. Considering the increased
sales generating increased revenue, the cash flow for the first three quarters of 2021 and the positive working capital at September
30, 2021 and December 31, 2020, the Company believes that its capital resources and anticipated financing are sufficient to maintain
its business operations for the next twelve months. Moreover, the Company is implementing a marketing plan under which management projects
sales to increase in 2021 and 2022 as compared to 2020 that are expected to contribute additional funds to maintain operations.
The
accompanying condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern,
which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. They do not include any
adjustments related to the recoverability and/or classification of the recorded asset amounts and/or the classification of the liabilities
that might be necessary should the Company be unable to continue as a going concern.
NOTE
2 – INVENTORY
At
September 30, 2021 and December 31, 2020, inventory consisted of the following:
SCHEDULE
OF INVENTORY
|
|
|
September
30,
2021
|
|
|
December
31,
2020
|
|
|
Raw materials
|
|
$
|
1,051,140
|
|
|
$
|
632,055
|
|
|
Work-in-progress
|
|
|
81,431
|
|
|
|
176,392
|
|
|
Finished goods
|
|
|
336,229
|
|
|
|
147,913
|
|
|
Inventory, gross
|
|
|
1,468,800
|
|
|
|
956,360
|
|
|
Less: reserve for obsolescence
|
|
|
(189,666
|
)
|
|
|
(114,666
|
)
|
|
Inventory, net
|
|
$
|
1,279,134
|
|
|
$
|
841,694
|
|
NOTE
3 – FACTORING
Since
September 1, 2020, The Company has participated in a factoring program with NOWaccount ® Network Corporation (“NOW”).
At the time of a sale, NOW buys the receivables at a discount, based on the due date and other terms. Costs associated with this program
were $1,451 and $10,511 for the three-month and nine-month periods ended September 30, 2021, respectively.
NOTE
4 – DEBT
On
February 10, 2015, Nano Magic entered into a $373,000 promissory note (the “Equipment Note”) with KeyBank, N.A. (the “Bank”).
The unpaid principal balance of this Equipment Note is payable in 60 equal monthly instalments payments of principal and interest through
June 10, 2020. The Equipment Note is secured by certain equipment, as defined in the Equipment Note, and bears interest computed at a
rate of interest of 4.35% per annum based on a year of 360 days. On June 18, 2019, Nano Magic entered into an Amendment to the Equipment
Note with the Bank. By the amendment, the maturity date of the note was extended until April 10, 2022, the interest rate was raised to
6.29% per year, and the monthly payments were reduced to $4,053 per month, including interest. At September 30, 2021, the principal amount
due under the Equipment Note amounted to $52,991 and is current.
On
May 8, 2020, Nano Magic LLC obtained a loan from Fifth Third Bank for $130,900
under the Small Business Administration Paycheck
Protection Program. The loan bears interest at 1.00%
and is payable in monthly instalments of principal
and interest in the amount of $7,330.
On August 6, 2021 we completed the loan forgiveness application with Fifth Third Bank for the Paycheck Protection Plan loan we received
through that bank. As of September 30, 2021, the balance on the loan was the full principal amount and is current. On November 9,
2021 we were notified by Fifth Third Bank that the Small Business Administration had reviewed our loan forgiveness application filed
earlier and that the entire amount of the loan to Nano Magic LLC was forgiven.
On
August 11, 2020, the company entered into a finance lease for furniture. We financed $60,684 over a period of 36 months with monthly
payments of $1,972 during that time. As of September 30, 2021, the balance on the lease was $39,316; the current and non-current portions
were $20,509 and $18,807 respectively.
On
September 24, 2020, the company entered into a finance lease with Raymond Leasing Corporation for a forklift. Nano Magic LLC financed
$14,250. The lease term is 36 months with monthly payments of $425. As of September 30, 2021, the balance on the lease was $8,948; the
current and non-current portions were $3,971 and $4,977, respectively.
In
December 2020, the company entered into a finance lease for production equipment. We financed $85,000 over a period of 48 months with
monthly payments of $2,135 during that time. As of September 30, 2021, the balance on the lease was $69,083; the current and non-current
portions were $17,825 and $51,258, respectively.
On
February 1, 2021, our subsidiary Applied Nanotech obtained a loan from Amegy Bank of Texas for $79,305 under the Small Business Administration
Paycheck Protection Program. On August 11, 2021 we were notified by Amegy Bank that the Small Business Administration had reviewed our
loan forgiveness application filed earlier and that the entire amount of the loan to Applied Nanotech Inc. was forgiven.
Other
Applied Nanotech long term debt was $54,883 as of September 30, 2021.
NOTE
5 – RELATED PARTY TRANSACTIONS
During the nine-month period ended
September 30, 2021, we accrued $12,000
in fees for each of the directors for second and third quarter board meetings. We did not have a board meeting in the first
quarter of 2021. In August, pursuant to authorization granted by the Board in May, we entered into indemnification agreements with our
directors.
Other
compensation paid to directors as salary, bonus, and/or consulting fees was:
SCHEDULE
OF OTHER COMPENSATION
|
|
|
Three months ended
September 30,
|
|
|
Nine months ended
September 30,
|
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
|
Ronald J. Berman
|
|
$
|
30,000
|
|
|
$
|
39,000
|
|
|
$
|
137,693
|
|
|
$
|
176,700
|
|
|
Tom J. Berman
|
|
$
|
35,207
|
|
|
$
|
75,764
|
|
|
$
|
304,704
|
|
|
$
|
165,764
|
|
|
Jeanne M Rickert
|
|
$
|
-
|
|
|
$
|
3,000
|
|
|
$
|
-
|
|
|
$
|
7,000
|
|
|
Scott E. Rickert
|
|
$
|
-
|
|
|
$
|
3,000
|
|
|
$
|
-
|
|
|
$
|
7,000
|
|
Mr.
Ron Berman and Mr. Tom Berman are the managers of the limited liability company that is the manager of PEN Comeback, LLC, PEN Comeback
2, LLC, Magic Growth, LLP and Magic Growth 2 LLC. These four limited liability companies purchased shares of common stock and derivative
securities from us in 2018, 2019, 2020, and 2021. See the subsection on Sales of Stock under Issuances of Common Stock in Note 6.
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% economic interest in the landlord
entity. 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.
NOTE
6 - STOCKHOLDERS’ EQUITY
Description
of Preferred and Common Stock
On
July 2, 2020, we amended and restated our certification of incorporation to eliminate the Company’s Class B common stock and Class
Z common stock and rename as “common stock” the Company’s Class A Common Stock. As part of the amendment, we increased
the number of authorized shares of common stock from 7,200,000 to 30,000,000. The par value of the common stock remained the same at
$0.0001 per common share. The Company is also authorized to issue 100,000 shares of Preferred Stock, par value $0.0001 per share.
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 and Stock Appreciation Rights
Pursuant
to the agreement entered into on October 20, 2020, with the holder of substantially all the outstanding stock appreciation rights, on
March 2, 2021, we issued 5,000 shares of common stock at value of $1.00 in partial settlement of that holder’s stock appreciation
rights.
On
March 2, 2021, we issued an aggregate of 37,890 shares of common stock to our directors as compensation to them for service on our Board.
These shares were valued on that date at $0.95 per share based on the quoted price of the stock for a total value of $36,000.
Sales
of Common Stock and Derivative Equity Securities
On
March 2, 2021, the Company sold to Magic Growth 2 LLC, 769,231 shares of common stock for proceeds of $961,539 and warrants to purchase
up to 769,225 shares of common stock for proceeds of $38,461. The warrants are exercisable at any time during the four years after date
of issue at a warrant exercise price of $2.00 per share. PEN Comeback Management, LLC, owned by Tom J. Berman and Ronald J. Berman, is
the sole voting member of Magic Growth 2 LLC.
On
March 17, 2021, the Company sold to Magic Growth 2 LLC, 385,231 shares of common stock for proceeds of $481,539 and warrants to purchase
up to 385,225 shares of common stock for proceeds of $19,260. The warrants are exercisable at any time during the four years after date
of issue at a warrant exercise price of $2.00 per share.
In
total for the nine months ended September 30, 2021, 1,154,462 shares of common stock were sold and issued for $1,443,077. Additionally,
1,154,450 warrants were sold for $57,723.
Stock
Options
In
connection with the three-year extension of the contract with our President and Chief Executive Officer, he was granted an option on
March 3, 2021 to purchase up to 2,350,000 shares of common stock at an exercise price of $0.75. Vesting is as follows:
SCHEDULE
OF STOCK OPTIONS VESTING
|
The
right to purchase:
|
|
Consisting
of:
|
|
Is
vested on:
|
|
Tranche
1
|
|
150,000
Option Shares
|
|
June
30, 2021
|
|
Tranche
2
|
|
150,000
Option Shares
|
|
December
31, 2021
|
|
Tranche
3
|
|
150,000
Option Shares
|
|
June
30, 2022
|
|
Tranche
4
|
|
150,000
Option Shares
|
|
December
31, 2022
|
|
Tranche
5
|
|
150,000
Option Shares
|
|
June
30, 2023
|
|
Tranche
6
|
|
150,000
Option Shares
|
|
December
31, 2023
|
|
Tranche
7
|
|
Up
to 150,000 Option Shares
|
|
If
the aggregate sales bonus payable for 2021 exceeds $240,000
|
|
Tranche
8
|
|
Up
to 150,000 Option Shares
|
|
If
the aggregate sales bonus payable for 2022 exceeds $260,000
|
|
Tranche
9
|
|
Up
to 150,000 Option Shares
|
|
If
the aggregate sales bonus payable for 2023 exceeds $300,000
|
|
Tranche
10
|
|
Up
to 1 million Option Shares
|
|
If
a profit bonus is payable under the employment contract and the Board determines to pay some or all of it with options, the number
vested as determined by the Board
|
On
March 2, 2021, we granted an option to Ronald J. Berman as part of his consulting contract entered into on that day. Under the consulting
agreement, Mr. Berman oversees sales and marketing for Nano Magic LLC and will work on special projects as requested by the President
& CEO. His cash compensation is $10,000 per month, with bonuses from 1% to 3% on certain sales. He was also granted an option to
purchase up to 100,000 shares at an exercise price of $0.75. Vesting for 75,000 shares is based on sales by Nano Magic LLC in 2021; 12,500
if sales in 2021 are $4 million, with additional tranches of 12,500 shares for each additional $1 million in sales. Vesting for the remaining
25,000 shares will occur if the Company realizes $1 million in EBITDA for 2021. Mr. Berman is a director and is the father of our President,
Tom J. Berman.
On
March 2, 2021, our Board adopted the Nano Magic 2021 Equity Incentive Plan described below.
On
August 10, 2021 we issued the option to purchase up to 100,000 shares that had been approved by the Board in May, 2021 in connection
with a consulting agreement. No options have
been included in diluted earnings per share as they would be anti-dilutive.
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, 2020
|
|
|
502,892
|
|
|
$
|
0.89
|
|
|
|
3.25
|
|
|
|
220,000
|
|
|
Exercised
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
-
|
|
|
Issued
|
|
|
2,737,500
|
|
|
|
0.80
|
|
|
|
|
|
|
|
-
|
|
|
Forfeited
(unvested)
|
|
|
(101,697
|
)
|
|
|
0.75
|
|
|
|
|
|
|
|
-
|
|
|
Expired
(vested)
|
|
|
(1,550
|
)
|
|
|
77.41
|
|
|
|
|
|
|
|
-
|
|
|
Outstanding
September 30, 2021
|
|
|
3,137,145
|
|
|
$
|
0.77
|
|
|
|
5.18
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercisable
September 30, 2021
|
|
|
711,958
|
|
|
$
|
0.72
|
|
|
|
2.96
|
|
|
$
|
-
|
|
SCHEDULE
OF STOCK OPTIONS AND WARRANTS
|
|
|
September
30,
2021
|
|
|
December
31,
2020
|
|
|
Stock options
|
|
|
3,137,145
|
|
|
|
502,892
|
|
|
Stock warrants
|
|
|
6,597,178
|
|
|
|
5,443,440
|
|
|
Total
|
|
|
9,734,323
|
|
|
|
5,946,332
|
|
Warrants
As
of September 30, 2021, there were outstanding and exercisable warrants to purchase 6,597,178 shares of common stock with a weighted average
exercise price of $1.66 per share and a weighted average remaining contractual term of 28 months. As of September 30, 2021, there was
no intrinsic value for the warrants. No warrants have been included in diluted earnings per share as they would be anti-dilutive.
2015
Equity Incentive Plan
On
November 30, 2015, the Board of Directors authorized the 2015 Equity Incentive Plan. On December 31, 2019, we issued an aggregate of
102,500 shares to employees in settlement of accrued salaries totaling $66,615. On January 31, 2020 we granted an option to purchase
100,000 shares to a senior member of the sales team with vesting tied directly to 2020 sales goals. On April 8, 2021, the Board terminated
the 2015 Equity Incentive Plan.
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 shares were available for issuance under the Plan and that
number of options were also granted to employees on March 2, 2021. On April 8, 2021 the number of shares under the Plan was increased
by 2,500, and an additional 2,500 options were granted. On June 21, 2021 an additional 200,000 shares were made available for issuance
under the Plan and options for 100,000 shares were granted, but subsequently forfeited. On August 10, 2021 we issued the option to purchase
up to 100,000 shares that had been approved by the Board in May, 2021 in connection with a consulting agreement.
NOTE
7 - 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. On May 28, 2021, we entered into a settlement and release with a former consultant under which we will pay $15,000
in three monthly installments commencing on June 1, 2021.
As
of September 30, 2021 we were not a defendant in any proceedings. On August 3, 2021, we were notified of a collection suit for approximately
$23,000 plus financing charges. We agreed to a negotiated settlement of the matter in August and the case was dismissed with prejudice
on September 1, 2021. 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, 2021, the Company has not accrued any amount for litigation contingencies.
NOTE
8 – SEGMENT REPORTING
The
Company’s principal operating segments coincide with the types of products to be sold. The products from which revenues are derived
are consistent with the reporting structure of the Company’s internal organization. The Company’s two reportable segments
for the three months ended September 30, 2021 and 2020 were the Product segment and the Contract services segment. The Company’s
chief operating decision-maker has been identified as the Chairman and CEO, who reviews operating results to make decisions about allocating
resources and assessing performance for the entire Company. Segment information is presented based upon the Company’s management
organization structure as of September 30, 2021 and the distinctive nature of each segment. Future changes to this internal financial
structure may result in changes to the reportable segments disclosed. There are no inter-segment revenue transactions and, therefore,
revenues are only to external customers. As the Company primarily generates its revenues from customers in the United States, no geographical
segments are presented.
Segment
operating profit is determined based upon internal performance measures used by the chief operating decision-maker. The Company derives
the segment results from its internal management reporting system. The accounting policies the Company uses to derive reportable segment
results are the same as those used for external reporting purposes. Management measures the performance of each reportable segment based
upon several metrics, including net revenues, gross profit and operating loss. Management uses these results to evaluate the performance
of, and to assign resources to, each of the reportable segments. The Company manages certain operating expenses separately at the corporate
level and does not allocate such expenses to the segments. Segment income from operations excludes interest income/expense and other
income or expenses and income taxes according to how a particular reportable segment’s management is measured. Management does
not consider impairment charges, and unallocated costs in measuring the performance of the reportable segments.
Segment
information available with respect to these reportable business segments for the three and nine months ended September 30, 2021 and 2020
was as follows:
SCHEDULE
OF SEGMENT INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
September 30,
|
|
|
Nine
Months Ended
September 30,
|
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product segment
|
|
$
|
621,116
|
|
|
$
|
983,628
|
|
|
$
|
3,933,959
|
|
|
$
|
2,133,407
|
|
|
Contract
services segment
|
|
|
70,601
|
|
|
|
117,219
|
|
|
|
437,501
|
|
|
|
568,098
|
|
|
Total segment and consolidated
revenues
|
|
$
|
691,717
|
|
|
$
|
1,100,847
|
|
|
$
|
4,371,460
|
|
|
$
|
2,701,505
|
|
|
Cost of revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
$
|
579,066
|
|
|
$
|
541,272
|
|
|
$
|
2,210,007
|
|
|
$
|
1,364,870
|
|
|
Contract
services segment
|
|
|
84,377
|
|
|
|
132,663
|
|
|
|
417,057
|
|
|
|
454,566
|
|
|
Total segment and consolidated
cost of revenues
|
|
$
|
663,443
|
|
|
$
|
673,935
|
|
|
$
|
2,627,064
|
|
|
$
|
1,819,436
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product segment
|
|
$
|
42,050
|
|
|
$
|
442,356
|
|
|
$
|
1,723,952
|
|
|
$
|
768,537
|
|
|
Contract
services segment
|
|
|
(13,776
|
)
|
|
|
(15,444
|
)
|
|
|
20,444
|
|
|
|
113,532
|
|
|
Total segment and consolidated
gross profit
|
|
$
|
28,274
|
|
|
$
|
426,912
|
|
|
$
|
1,744,396
|
|
|
$
|
882,069
|
|
|
Gross margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product segment
|
|
|
6.8
|
%
|
|
|
45.0
|
%
|
|
|
43.8
|
%
|
|
|
36.0
|
%
|
|
Contract
services segment
|
|
|
-19.5
|
%
|
|
|
-13.2
|
%
|
|
|
4.7
|
%
|
|
|
20.0
|
%
|
|
Total gross margin
|
|
|
4.1
|
%
|
|
|
38.8
|
%
|
|
|
39.9
|
%
|
|
|
32.7
|
%
|
|
Segment operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product segment, net
|
|
$
|
818,674
|
|
|
$
|
497,311
|
|
|
$
|
2,543,421
|
|
|
$
|
1,532,067
|
|
|
Contract
services segment
|
|
|
42,440
|
|
|
|
39,981
|
|
|
|
126,364
|
|
|
|
118,085
|
|
|
Total segment operating expenses, net
|
|
$
|
861,114
|
|
|
$
|
537,292
|
|
|
$
|
2,669,785
|
|
|
$
|
1,650,152
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product segment
|
|
$
|
(776,623
|
)
|
|
$
|
(54,955
|
)
|
|
$
|
(819,469
|
)
|
|
$
|
(763,529
|
)
|
|
Contract
services segment
|
|
|
(56,216
|
)
|
|
|
(55,425
|
)
|
|
|
(105,920
|
)
|
|
|
(4,554
|
)
|
|
Total segment loss
|
|
|
(832,839
|
)
|
|
|
(110,380
|
)
|
|
|
(925,389
|
)
|
|
|
(768,083
|
)
|
|
Total consolidated loss
from operations
|
|
$
|
(832,839
|
)
|
|
$
|
(110,380
|
)
|
|
$
|
(925,389
|
)
|
|
$
|
(768,083
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product segment
|
|
$
|
26,785
|
|
|
$
|
33,922
|
|
|
$
|
77,245
|
|
|
$
|
41,150
|
|
|
Contract
services segment
|
|
|
290
|
|
|
|
(834
|
)
|
|
|
1,120
|
|
|
|
-
|
|
|
Total segment depreciation and amortization
|
|
$
|
27,075
|
|
|
$
|
33,088
|
|
|
$
|
78,365
|
|
|
$
|
41,150
|
|
|
Total consolidated depreciation
and amortization
|
|
$
|
27,075
|
|
|
$
|
33,088
|
|
|
$
|
78,365
|
|
|
$
|
41,150
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital additions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product segment
|
|
$
|
41,944
|
|
|
$
|
41,919
|
|
|
$
|
104,584
|
|
|
$
|
46,514
|
|
|
Contract
services segment
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Total segment capital additions
|
|
$
|
41,944
|
|
|
$
|
41,919
|
|
|
$
|
104,584
|
|
|
$
|
46,514
|
|
|
Total consolidated capital
additions
|
|
$
|
41,944
|
|
|
$
|
41,919
|
|
|
$
|
104,584
|
|
|
$
|
46,514
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
2021
|
|
|
September
30,
2020
|
|
|
Segment total assets:
|
|
|
|
|
|
|
|
|
|
Product segment
|
|
$
|
3,733,955
|
|
|
$
|
4,021,587
|
|
|
Contract
services segment
|
|
|
1,288,157
|
|
|
|
244,101
|
|
|
Total consolidated total
assets
|
|
$
|
5,022,112
|
|
|
$
|
4,265,688
|
|