Quarterly report pursuant to Section 13 or 15(d)

NOTE 3: RESEARCH AND DEVELOPMENT

v3.10.0.1
NOTE 3: RESEARCH AND DEVELOPMENT
9 Months Ended
Sep. 30, 2018
Research and Development [Abstract]  
Research, Development, and Computer Software Disclosure [Text Block]

NOTE 3: RESEARCH AND DEVELOPMENT


Research and development consists of costs incurred related to the construction and testing of a 2-ton/hour test plant in Oklahoma and its move to Wyoming in the first quarter of 2018. In quarter four 2015, the test plant was commissioned and testing of the plant started. Testing was successfully completed in April 2016. Following discussions with the US Government and with both domestic and international clients the company decided to restart the test facility in order to run specific additional tests at clients and US governments request. The test facility was prepared for testing in August 2017 and testing commenced in October 2017. The test facility was restarted for three specific reasons. First, to complete additional detailed tests, second, to upgrade aspects of the process to further increase the British Thermal Unit value of the beneficiated coal and finally to enable Kiewit, our EPC contractors, to use the process of running the test facility to enable them improve their design of a commercial unit.  The Company moved the facility to Wyoming in the first quarter of 2018 and has secured a location at Fort Union Industrial Park where permits have been obtained and site work and preparation completed. Following several months of process flow analysis by the University of Wyoming in collaboration with the EPC contractors a number of changes to the process has been identified. These changes are expected to result in a further increase in the end processed coal and also reduce the capital cost of a commercial unit. Reassembly of the test facility incorporating these changes is expected to start in Q4 2018 and continue to early Q1 2019 During the nine months ended September 30, 2018 and 2017, we incurred $232,743 and $803,431 in research and development expenses, respectively.