Nano Magic (NMGX) 10-Q19 Aug 242024 Q2 Quarterly reportFinancial data

Company Profile

Cover

Cover - shares	6 Months Ended
Cover - shares	Jun. 30, 2024	Aug. 19, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2024
Document Fiscal Period Focus	Q2
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		14,008,675

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
Condensed Statements of Operations (Unaudited) - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
NET REVENUES	$ 616,623	$ 709,293	$ 1,196,735	$ 1,406,322
COST OF SALES	662,583	507,155	1,173,952	1,129,434
GROSS PROFIT	(45,960)	202,138	22,783	276,888
OTHER OPERATING INCOME		11,420		11,420
OPERATING EXPENSES:
Selling and marketing expenses	49,076	54,018	131,802	113,442
Salaries, wages and related benefits	230,916	189,986	433,465	468,562
Stock compensation expense	7,835	260,249	16,335	290,393
Research and development	21,623	6,371	41,918	12,275
Professional fees	176,331	112,762	394,450	302,221
General and administrative expenses	256,291	258,508	527,719	447,514
Total Operating Expense	742,072	881,894	1,545,689	1,634,407
LOSS FROM OPERATIONS	(788,032)	(668,336)	(1,522,906)	(1,346,099)
OTHER (EXPENSE) INCOME
Income from investment in subsidiary		8,782	10,123	40,938
Loss from sale of note receivable	(26,782)		(41,782)
Interest expense	(13,028)	(7,575)	(25,465)	(21,943)
Interest and other income	3,177	16,264	9,158	23,202
Total Other (Expense) Income	(36,633)	17,471	(47,966)	42,197
NET LOSS	$ (824,665)	$ (650,865)	$ (1,570,872)	$ (1,303,902)
NET LOSS PER COMMON SHARE
Basic	$ (0.06)	$ (0.06)	$ (0.12)	$ (0.12)
Diluted	$ (0.06)	$ (0.06)	$ (0.12)	$ (0.12)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic	13,565,122	10,963,268	13,502,764	10,907,579
Diluted	13,565,122	10,963,268	13,502,764	10,907,579

Condensed Balance Sheets (Unaud

Condensed Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
CURRENT ASSETS:
Cash	$ 71,869	$ 527,462
Accounts receivable, net of allowance for credit losses of $248,919 and $150,300 at June 30, 2024 and December 31, 2023, respectively	100,425	209,057
Inventory, net	751,158	849,764
Prepaid expenses	17,957	63,538
Current portion of note receivable		50,000
Total Current Assets	941,409	1,699,821
Operating lease right-of-use assets	727,814	845,563
Property, plant and equipment, net	385,844	424,103
Note receivable, non-current		291,782
Non-marketable equity investment in subsidiary	263,959	253,835
Total Assets	2,319,026	3,515,104
CURRENT LIABILITIES:
Accrued expenses and other current liabilities	339,728	245,398
Current portion of finance leases	12,396	24,194
Advances from related parties	42,887	42,887
Current portion of operating lease liabilities	174,181	161,905
Total Current Liabilities	1,746,482	1,244,852
Operating lease liabilities, net of current portion	456,465	560,514
Total Liabilities	2,351,325	2,205,366
Commitments and Contingencies (See Note 8)
STOCKHOLDERS’ (DEFICIT) 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; 13,708,676 and 13,425,342 issued and outstanding at June 30, 2024 and December 31, 2023, respectively	1,371	1,342
Additional paid-in capital	16,539,674	16,310,868
Accumulated deficit	(16,573,344)	(15,002,472)
Total Stockholders’ (Deficit) Equity	(32,299)	1,309,738
Total Liabilities and Stockholders’ Equity	2,319,026	3,515,104
Nonrelated Party [Member]
CURRENT LIABILITIES:
Accounts payable	634,663	593,338
Current portion of notes payable	400,000	121,610
Notes Payable - net of current portion	148,378	375,000
Related Party [Member]
CURRENT LIABILITIES:
Accounts payable	117,627	55,520
Current portion of notes payable	25,000
Notes Payable - net of current portion		$ 25,000

Condensed Balance Sheets (Una_2

Condensed Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Net of allowance for credit losses	$ 248,919	$ 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	13,708,676	13,425,342
Common stock, shares outstanding	13,708,676	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
Balance at Dec. 31, 2022	$ 1,072	$ 13,763,143	$ (12,146,753)	$ 1,617,462
Balance, shares at Dec. 31, 2022	10,722,431
Common stock issued for cash, net of issuance costs	$ 32	439,539		439,571
Common stock issued for cash, net of issuance costs, shares	328,800
Restricted stock issued for services	$ 8	4,702		4,710
Stock-based compensation		285,683		285,683
Net loss			(1,303,902)	(1,303,902)
Stock issued for services	$ 5	65,995		66,000
Stock issued for services, shares	52,800
Warrants and options on private placement		10,761		10,761
Restricted stock issued for services, shares	76,922
Balance at Jun. 30, 2023	$ 1,117	14,569,823	(13,450,655)	1,120,285
Balance, shares at Jun. 30, 2023	11,180,953
Balance at Mar. 31, 2023	$ 1,084	13,954,274	(12,799,790)	1,155,568
Balance, shares at Mar. 31, 2023	10,850,037
Common stock issued for cash, net of issuance costs	$ 25	346,039		346,064
Common stock issued for cash, net of issuance costs, shares	253,994
Stock-based compensation		255,539		255,539
Net loss			(650,865)	(650,865)
Stock issued for services	$ 8	4,702		4,710
Stock issued for services, shares	76,922
Warrants and options on private placement		9,269		9,269
Balance at Jun. 30, 2023	$ 1,117	14,569,823	(13,450,655)	1,120,285
Balance, shares at Jun. 30, 2023	11,180,953
Balance 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	$ 29	212,471		212,500
Common stock issued for cash, net of issuance costs, shares	283,334
Restricted stock issued for services		11,382		11,382
Stock-based compensation		4,953		4,953
Net loss			(1,570,872)	(1,570,872)
Balance at Jun. 30, 2024	$ 1,371	16,539,674	(16,573,344)	(32,299)
Balance, shares at Jun. 30, 2024	13,708,676
Balance at Mar. 31, 2024	$ 1,349	16,374,361	(15,748,679)	627,031
Balance, shares at Mar. 31, 2024	13,498,676
Common stock issued for cash, net of issuance costs	$ 22	157,478		157,500
Common stock issued for cash, net of issuance costs, shares	210,000
Restricted stock issued for services		5,691		5,691
Stock-based compensation		2,144		2,144
Net loss			(824,665)	(824,665)
Balance at Jun. 30, 2024	$ 1,371	$ 16,539,674	$ (16,573,344)	$ (32,299)
Balance, shares at Jun. 30, 2024	13,708,676

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
Condensed Statements of Cash Flows (Unaudited) - USD ($)	Jun. 30, 2024	Jun. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (1,570,872)	$ (1,303,902)
Adjustments to reconcile net loss to net cash provided by operating activities:
Change in inventory obsolescence reserve	80,279	(3,680)
Depreciation and amortization expense	53,817	56,265
Bad debt expense	98,619	47,997
Stock issued for services	11,382	70,710
Stock-based compensation	4,953	285,683
Income from investment in subsidiary	(10,123)	(40,938)
Change in operating assets and liabilities:
Accounts receivable	10,014	(53,181)
Inventory	18,327	74,190
Prepaid expenses and contract assets	45,581	109,794
Accounts payable	83,104	(47,650)
Accounts payable - related party	62,107	13,498
Operating lease liabilities	25,977	14,190
Accrued expenses	94,330	51,629
Total adjustments	578,367	578,507
NET CASH USED BY OPERATING ACTIVITIES	(992,505)	(725,395)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from note receivable	300,000	20,000
Purchases of property and equipment	(15,558)	(2,829)
NET CASH PROVIDED BY INVESTING ACTIVITIES	284,442	17,171
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from sale of common stock and warrants	212,500	445,000
Proceeds from issuance of convertible debt and warrants	50,000	50,000
Repayment of bank loans		(1,630)
Repayment of finance leases	(10,030)	(24,556)
NET CASH PROVIDED BY FINANCING ACTIVITIES	252,470	468,814
NET DECREASE IN CASH	(455,593)	(239,410)
CASH, beginning of period	527,462	259,223
CASH, end of period	71,869	19,813
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the period for interest	$ 1,012	$ 21,943

ORGANIZATION AND BASIS OF PRESE

ORGANIZATION AND BASIS OF PRESENTATION	6 Months Ended
ORGANIZATION AND BASIS OF PRESENTATION	Jun. 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 June 30, 2024 and for the three and six months ended June 30, 2024 and 2023. The results of operations for the three and six months ended June 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 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 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 financial statements, the Company had losses from operations and net cash used by operations of $ 1,522,906 992,505 1,346,099 725,395 (805,072) 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	6 Months Ended
INVENTORY	Jun. 30, 2024
Inventory Disclosure [Abstract]
INVENTORY	NOTE 2 – INVENTORY At June 30, 2024 and December 31, 2023, inventory consisted of the following: SCHEDULE OF INVENTORY June 30, 2024 December 31, 2023 Raw materials $ 677,239 $ 648,537 Work-in-progress 219,856 235,811 Finished goods 265,847 296,921 Inventory, gross 1,162,942 1,181,269 Less: reserve for obsolescence (411,784 ) (331,505 ) Inventory, net $ 751,158 $ 849,764

INVESTMENT IN SUBSIDIARY

INVESTMENT IN SUBSIDIARY	6 Months Ended
INVESTMENT IN SUBSIDIARY	Jun. 30, 2024
Investments, All Other Investments [Abstract]
INVESTMENT IN SUBSIDIARY	NOTE 3 – INVESTMENT IN SUBSIDIARY For the three- and six-month periods ended June 30, 2024, we sold portions of the note receivable from ANI to various parties for total cash proceeds of $ 100,000 300,000 15,000 41,782 0 as compared to $ 341,782 at December 31, 2023; $ 0 was included in current assets at June 30, 2024 with $ 50,000 included in current assets at December 31, 2023. The Company is accounting for its 30 30 263,959 253,835 0 10,123 8,782 40,938

NOTES PAYABLE AND FINANCE LEASE

NOTES PAYABLE AND FINANCE LEASE	6 Months Ended
NOTES PAYABLE AND FINANCE LEASE	Jun. 30, 2024
Notes Payable And Finance Lease
NOTES PAYABLE AND FINANCE LEASE	NOTE 4 – 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, 2025 March 31, 2026 8 1.75 On July 27, 2022, the Company sold two convertible notes, one for $ 50,000 25,000 25,000 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 June 18, 2024 1.75 On June 14, 2023, the Company issued a convertible, secured note and warrants to purchase 10,000 50,000 5,333 1,622 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% At June 30, 2024 and at December 31, 2023, we had outstanding convertible notes aggregating $ 575,000 and $ 525,000 in principal amount. 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. We financed $ 85,000 48 2,135 12,396 24,194

OPERATING LEASE

OPERATING LEASE	6 Months Ended
OPERATING LEASE	Jun. 30, 2024
Operating Lease
OPERATING LEASE	NOTE 5 – 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 $ 727,814 845,563 630,646 722,419

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
RELATED PARTY TRANSACTIONS	Jun. 30, 2024
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 6 – RELATED PARTY TRANSACTIONS At June 30, 2024 and at December 31, 2023, accounts payable – related parties totaled $ 117,627 55,520 42,887 See Note 9, Subsequent Events, regarding options granted to, among others, officers and certain directors. Mr. Ron Berman and Mr. Tom Berman are the managers of the limited liability company that is the manager of PEN Comeback, LLC, PEN Comeback 2, LLC, Magic Growth, LLP, Magic Growth 2 LLC and Magic Growth 3 LLC. These five limited liability companies purchased shares of common stock and derivative securities from us in 2018, 2019, 2020, 2021 and 2022. In addition, Mr. Tom Berman and Mr. Ron Berman are two of three individuals who share voting power of the sole manager of the limited liability company that is our landlord in Michigan. Together, Tom and Ron Berman hold, in the aggregate, a 5 % economic interest in the landlord entity. Another director, Miles Gatland, owns a 12.5 % interest in the Michigan landlord and he is a co-guarantor on the debt of that limited liability company. 93,627 30,141

STOCKHOLDERS_ EQUITY

STOCKHOLDERS’ EQUITY	6 Months Ended
STOCKHOLDERS’ EQUITY	Jun. 30, 2024
Equity [Abstract]
STOCKHOLDERS’ EQUITY	NOTE 7 – STOCKHOLDERS’ EQUITY Description of Preferred and Common Stock Preferred Stock The preferred stock may be issued in one or more series. The Company’s board of directors are authorized to issue the shares of preferred stock in such series and to fix from time to time before issuance thereof the number of shares to be included in any such series and the designation, powers, preferences and relative, participating, optional or other rights, and the qualifications, limitations or restrictions thereof, of such series. Common Stock The rights of each share of common are the same with respect to dividends, distributions and rights upon liquidation. Holders of common stock each have one vote per share in the election of directors and other matters submitted to a vote of the stockholders Issuances of Common Stock Common Stock Issued for Services In February 2023, we reached an agreement with the landlord of our Michigan facility to accept 52,800 1.25 partial payment of rent for the six-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 Sales of Common Stock and Derivative Equity Securities During the quarter ended June 30, 2024, the Company sold 210,000 shares of common stock for proceeds of $ 157,500 . 283,334 212,500 During the quarter ended June 30, 2023, the Company sold 253,994 346,064 196,813 4,136 1.75 328,800 439,571 271,439 5,428 1.75 10,000 50,000 Stock Options Stock options to purchase common stock outstanding at June 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. 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 - - - - Expired & forfeited (55,297 ) $ 0.65 - - Outstanding June 30, 2024 2,215,186 $ 0.67 3.41 $ 348,088 Exercisable June 30, 2024 2,201,545 $ 0.67 3.41 $ 346,276 SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS SHARE June 30, 2024 December 31, 2023 Stock options 2,215,186 2,270,483 Stock warrants 7,525,265 7,525,265 Convertible debt (on an as-converted basis) 362,738 349,824 Total 10,103,189 10,145,572 Warrants As of June 30, 2024, there were outstanding and exercisable warrants to purchase 7,525,265 1.72 34.7 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 April 12, 2023, the Company granted 47,610 175,071 0.65 See Note 9, Subsequent Events, regarding additional options granted under the 2021 Equity Plan. Other Options On April 12, 2023, the Company issued an additional 30,000 384,228 See Note 9, Subsequent Events, regarding options granted to officers and certain directors.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
COMMITMENTS AND CONTINGENCIES	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 8 – COMMITMENTS AND CONTINGENCIES Litigation The Company may be, from time to time, subject to various administrative, regulatory, and other legal proceedings arising in the ordinary course of business. As of June 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 June 30, 2024 and December 31, 2023, the Company has not accrued any amount for litigation contingencies.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
SUBSEQUENT EVENTS	Jun. 30, 2024
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 9 – SUBSEQUENT EVENTS On July 18, 2024, the Company sold an aggregate of 166,666 125,000 On July 29,2024, the Board authorized the sale of a portion of the Company’s interest in Applied Nanotech, Inc. The sale was consummated on the same day; the Company received $ 100,000 30 25 On July 29, 2024, The Company granted 411,268 options to employees, contractors and consultants under the 2021 Equity Plan and increased amounts available for grant by that number. All options entitle the holder to purchase shares at a strike price of $ 0.31 and expire five years from date of grant. On July 29, 2024, the Company also granted options to our President & CEO, Tom Berman: 250,000 250,000 1,000,000 60,000 60,000 30,000 30,000 50 0.31 five years On August 5, 2024, the Company sold 133,333 100,000

INVENTORY (Tables)

INVENTORY (Tables)	6 Months Ended
INVENTORY (Tables)	Jun. 30, 2024
Inventory Disclosure [Abstract]
SCHEDULE OF INVENTORY	At June 30, 2024 and December 31, 2023, inventory consisted of the following: SCHEDULE OF INVENTORY June 30, 2024 December 31, 2023 Raw materials $ 677,239 $ 648,537 Work-in-progress 219,856 235,811 Finished goods 265,847 296,921 Inventory, gross 1,162,942 1,181,269 Less: reserve for obsolescence (411,784 ) (331,505 ) Inventory, net $ 751,158 $ 849,764

STOCKHOLDERS_ EQUITY (Tables)

STOCKHOLDERS’ EQUITY (Tables)	6 Months Ended
STOCKHOLDERS’ EQUITY (Tables)	Jun. 30, 2024
Equity [Abstract]
SCHEDULE OF STOCK OPTION PLAN ACTIVITY	Stock options to purchase common stock outstanding at June 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. 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 - - - - Expired & forfeited (55,297 ) $ 0.65 - - Outstanding June 30, 2024 2,215,186 $ 0.67 3.41 $ 348,088 Exercisable June 30, 2024 2,201,545 $ 0.67 3.41 $ 346,276
SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS SHARE	SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS SHARE June 30, 2024 December 31, 2023 Stock options 2,215,186 2,270,483 Stock warrants 7,525,265 7,525,265 Convertible debt (on an as-converted basis) 362,738 349,824 Total 10,103,189 10,145,572

ORGANIZATION AND BASIS OF PRE_2

ORGANIZATION AND BASIS OF PRESENTATION (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Loss from operations	$ 788,032	$ 668,336	$ 1,522,906	$ 1,346,099
Net cash used in operating activities			992,505	$ 725,395
Working capital surplus (deficit)	$ (805,072)		$ (805,072)		$ 454,969

SCHEDULE OF INVENTORY (Details)

SCHEDULE OF INVENTORY (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw materials	$ 677,239	$ 648,537
Work-in-progress	219,856	235,811
Finished goods	265,847	296,921
Inventory, gross	1,162,942	1,181,269
Less: reserve for obsolescence	(411,784)	(331,505)
Inventory, net	$ 751,158	$ 849,764

INVESTMENT IN SUBSIDIARY (Detai

INVESTMENT IN SUBSIDIARY (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
INVESTMENT IN SUBSIDIARY (Details Narrative) - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Related Party Transaction [Line Items]
Proceeds from note receivable	$ 100,000		$ 300,000	$ 20,000
Loss on sale of note	15,000		41,782
Note receivable outstanding	0		0		$ 341,782
Current portion of note receivable					50,000
Non-marketable equity investment	263,959		263,959		$ 253,835
Income (loss) from investment in subsidiary		$ 8,782	$ 10,123	$ 40,938
Applied Nanotech, Inc. [Member]
Related Party Transaction [Line Items]
Sale of interest in subsidiary			30%

NOTES PAYABLE AND FINANCE LEA_2

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

1 Months Ended

6 Months Ended

Jun. 10, 2024

Nov. 02, 2023

Oct. 18, 2023

Jul. 24, 2023

Jun. 14, 2023

Oct. 26, 2022

Aug. 22, 2022

Jan. 31, 2022

Jan. 26, 2022

Jan. 07, 2022

Dec. 18, 2022

Dec. 31, 2020

Jun. 30, 2024

Jun. 30, 2023

Dec. 31, 2023

Jul. 27, 2022

Feb. 14, 2022

Short-Term Debt [Line Items]

Proceeds from convertible debt

$ 50,000

Proceeds from issuance of common stock

212,500

$ 445,000

Debt discount

1,622

$ 3,390

Current portion of finance leases

12,396

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 maturity date

Jun. 18, 2024

Debt instrument conversion price

$ 1.25

$ 1.75

Proceeds from convertible debt

$ 50,000

Debt instrument, interest rate

Proceeds from secured debt

$ 10,000

Proceeds from issuance of common stock

50,000

Proceeds from issuance of debt discount

$ 5,333

Convertible Notes Payable

$ 575,000

$ 525,000

Convertible Debt [Member]

Short-Term Debt [Line Items]

Convertible debt

$ 25,000

$ 50,000

$ 100,000

$ 50,000

Debt maturity date

Oct. 31, 2024

Oct. 31, 2023

Mar. 31, 2026

Mar. 31, 2025

Annual payable interest percentage

Debt instrument conversion price

$ 1.75

Proceeds from convertible debt

$ 25,000

Convertible Debt One [Member]

Short-Term Debt [Line Items]

Convertible debt

25,000

Debt maturity date

Mar. 31, 2025

Annual payable interest percentage

Debt instrument conversion price

$ 1.75

Convertible Debt One [Member] | Related Party [Member]

Short-Term Debt [Line Items]

Convertible debt

$ 25,000

Convertible Debt Two [Member]

Short-Term Debt [Line Items]

Debt maturity date

Mar. 31, 2026

Annual payable interest percentage

Debt instrument conversion price

$ 1.75

Convertible Debt Three [Member]

Short-Term Debt [Line Items]

Annual payable interest percentage

Debt instrument conversion price

$ 1.75

OPERATING LEASE (Details Narrat

OPERATING LEASE (Details Narrative)		1 Months Ended
OPERATING LEASE (Details Narrative)	May 31, 2020 USD ($) ft²	Feb. 28, 2023 USD ($) $ / shares shares	Jun. 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			$ 71,869	$ 527,462
Right-of-use assets			727,814	845,563
Operating lease liabilities			$ 630,646	$ 722,419
Land Lord Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Stock issued for services, shares \| shares		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 ($)	6 Months Ended
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Related Party Transaction [Line Items]
Advances from related parties	$ 42,887	$ 42,887
Accrued Rent	$ 93,627	30,141
Tom Berman and Ron Berman [Member]
Related Party Transaction [Line Items]
[custom:EconomicInterestPercentage]	5%
Miles Gatland [Member]
Related Party Transaction [Line Items]
[custom:EconomicInterestPercentage]	12.50%
Related Party [Member]
Related Party Transaction [Line Items]
Accounts payable - related parties	$ 117,627	$ 55,520

SCHEDULE OF STOCK OPTION PLAN A

SCHEDULE OF STOCK OPTION PLAN ACTIVITY (Details) - USD ($)	6 Months Ended	12 Months Ended
SCHEDULE OF STOCK OPTION PLAN ACTIVITY (Details) - USD ($)	Jun. 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 4 months 28 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
Weighted Average Exercise Price, Issued
Number of Options, Forfeited and expired	(55,297)
Weighted Average Exercise Price, Forfeited and expired	$ 0.65
Number of Options, Outstanding	2,215,186	2,270,483
Weighted Average Exercise Price, Outstanding	$ 0.67	$ 0.67
Aggregate Intrinsic Value, Outstanding	$ 348,088	$ 76,725
Number of Options, Exercisable	2,201,545
Weighted Average Exercise Price, Exercisable	$ 0.67
Weighted Average Remaining Contractual Terms (Years), Exercisable	3 years 4 months 28 days
Aggregate Intrinsic Value, Exercisable	$ 346,276

SCHEDULE OF ANTIDILUTIVE SECURI

SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS SHARE (Details) - shares	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	10,103,189	10,145,572
Share-Based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	2,215,186	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	362,738	349,824

STOCKHOLDERS_ EQUITY (Details N

STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($)			1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($)	May 30, 2023	Apr. 12, 2023	Feb. 28, 2023	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 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
Number of shares sold				210,000		283,334
Number of shares sold, value				$ 157,500		$ 212,500
Number of warrants issued					10,000		10,000
Convertible note payable						$ 50,000	$ 50,000
Weighted average remaining contractual term						3 years 4 months 28 days		2 years 8 months 19 days
Options issued
Weighted average exercise price issued
Tom J Berman [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Options issued		30,000
Officers [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Options issued	384,228
2021 Equity Incentive Plan [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Options issued	175,071	47,610
Weighted average exercise price issued	$ 0.65
Common Stock and Derivative Equity Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of shares sold					253,994		328,800
Number of shares sold, value					$ 346,064		$ 439,571
Number of warrants purchase					196,813
Proceeds from issuance of warrants					$ 4,136		$ 5,428
Warrant exercise price per share					$ 1.75		$ 1.75
Number of warrants issued					271,439		271,439
Warrant [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Warrant exercise price per share				$ 1.72		$ 1.72
Class of warrant or right, outstanding				7,525,265		7,525,265
Weighted average remaining contractual term						34 months 21 days
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 six-month period from October 2022 through March 2023. Those shares were issued in March, 2023

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - USD ($)				3 Months Ended	6 Months Ended
SUBSEQUENT EVENTS (Details Narrative) - USD ($)	Aug. 05, 2024	Jul. 29, 2024	Jul. 18, 2024	Jun. 30, 2024	Jun. 30, 2024	Jul. 28, 2024	Dec. 31, 2023
Subsequent Event [Line Items]
Number of shares sold				210,000	283,334
Number of shares sold, value				$ 157,500	$ 212,500
Cash				$ 71,869	$ 71,869		$ 527,462
Number of stock options, granted
Subsequent Event [Member]
Subsequent Event [Line Items]
Number of shares sold	133,333		166,666
Number of shares sold, value	$ 100,000		$ 125,000
Cash		$ 100,000
Option strike price		$ 0.31
Share based compensation vesting percentage		50%
Subsequent Event [Member] \| Tom Berman [Member]
Subsequent Event [Line Items]
Number of stock options, granted		250,000
Number of stock options, expected to vest		1,000,000
Subsequent Event [Member] \| Tom Berman [Member] \| December 31, 2024 [Member]
Subsequent Event [Line Items]
Number of stock options, vested		250,000
Subsequent Event [Member] \| Leandro Vera [Member]
Subsequent Event [Line Items]
Number of stock options, granted		60,000
Subsequent Event [Member] \| Ronald Berman [Member]
Subsequent Event [Line Items]
Number of stock options, granted		60,000
Subsequent Event [Member] \| Scott Rickert [Member]
Subsequent Event [Line Items]
Number of stock options, granted		30,000
Subsequent Event [Member] \| Jeanne Rickert [Member]
Subsequent Event [Line Items]
Number of stock options, granted		30,000
Subsequent Event [Member] \| 2021 Equity Plan [Member]
Subsequent Event [Line Items]
Number of stock options, granted		411,268
Option strike price		$ 0.31
Expiration period		5 years
Subsequent Event [Member] \| Applied Nanotech, Inc. [Member]
Subsequent Event [Line Items]
Ownership percentage		25%				30%