Document and Entity Information
Document and Entity Information - $ / shares | Jun. 30, 2016 | Jun. 30, 2017 | Aug. 03, 2017 |
Details | |||
Registrant Name | GEOSPATIAL CORP | ||
Registrant CIK | 1,011,395 | ||
SEC Form | 10-Q | ||
Period End date | Jun. 30, 2017 | ||
Fiscal Year End | --12-31 | ||
Trading Symbol | gsph | ||
Tax Identification Number (TIN) | 870,554,463 | ||
Number of common stock shares outstanding | 270,747,118 | ||
Filer Category | Smaller Reporting Company | ||
Current with reporting | Yes | ||
Voluntary filer | No | ||
Well-known Seasoned Issuer | No | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | Q2 | ||
Entity Incorporation, State Country Name | NEVADA | ||
Entity Address, Address Line One | 229 Howes Run Road, | ||
Entity Address, City or Town | Sarver | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 16,055 | ||
City Area Code | (724) | ||
Local Phone Number | 353-3400 | ||
Entity Listing, Par Value Per Share | $ 0.001 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 2,468 | $ 66,992 |
Accounts receivable | 148,800 | 65,800 |
Prepaid expenses and other current assets | 124,948 | 140,105 |
Total current assets | 276,216 | 272,897 |
Property and equipment: | ||
Field equipment | 357,070 | 357,070 |
Field vehicles | 43,285 | 43,285 |
Total property and equipment | 400,355 | 400,355 |
Less: accumulated depreciation | (382,162) | (355,616) |
Net property and equipment | 18,193 | 44,739 |
Total assets | 294,409 | 317,636 |
Current liabilities: | ||
Accounts payable | 240,305 | 274,319 |
Accrued expenses | 984,529 | 813,197 |
Current portion of capital lease liability to related party | 1,501 | 3,278 |
Notes payable | 1,502,172 | 1,365,738 |
Accrued registration payment arrangement | 76,337 | 522,115 |
Total current liabilities | 2,804,844 | 2,978,647 |
Non-current liabilities: | ||
Notes payable | 6,667 | 0 |
Total non-current liabilities | 6,667 | 0 |
Total liabilities | 2,811,511 | 2,978,647 |
Stockholders' deficit: | ||
Common Stock, Value, Issued | 269,080 | 226,212 |
Additional paid-in capital | 39,560,824 | 38,905,332 |
Additional paid-in capital, warrants | 0 | 20,626 |
Accumulated deficit | (42,350,651) | (41,817,725) |
Total stockholders' deficit | (2,517,102) | (2,661,011) |
Total liabilities and stockholders' deficit | 294,409 | 317,636 |
Undesignated | ||
Stockholders' deficit: | ||
Preferred Stock, Value, Issued | 0 | 0 |
Series B Convertible | ||
Stockholders' deficit: | ||
Preferred Stock, Value, Issued | 0 | 0 |
Series C Convertible | ||
Stockholders' deficit: | ||
Preferred Stock, Value, Issued | $ 3,645 | $ 4,544 |
Consolidated Balance Sheets - P
Consolidated Balance Sheets - Parenthetical - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 750,000,000 | 750,000,000 |
Common Stock, Shares, Issued | 269,080,451 | 226,211,740 |
Common Stock, Shares, Outstanding | 269,080,451 | 226,211,740 |
Undesignated | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Series B Convertible | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Series C Convertible | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 3,644,578 | 4,543,654 |
Preferred Stock, Shares Outstanding | 3,644,578 | 4,543,654 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Details | ||||
Sales | $ 192,935 | $ 258,800 | $ 291,135 | $ 440,000 |
Cost of sales | 44,032 | 72,603 | 86,086 | 130,536 |
Gross profit | 148,903 | 186,197 | 205,049 | 309,464 |
Selling, general and administrative expenses | 555,304 | 396,901 | 1,037,947 | 776,724 |
Net loss from operations | (406,401) | (210,704) | (832,898) | (467,260) |
Interest expense | (73,830) | (69,553) | (146,299) | (132,772) |
Gain on extinguishment of debt | 0 | 58,603 | 13,693 | 133,521 |
Registration payment arrangements | 178,120 | 0 | 432,578 | 492,583 |
Total other income (expense) | 104,290 | (10,950) | 299,972 | 493,332 |
Net Income (Loss) before income taxes | (302,111) | (221,654) | (532,926) | 26,072 |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net Income (Loss) | $ (302,111) | $ (221,654) | $ (532,926) | $ 26,072 |
Basic and fully diluted net income (loss) per share of common stock | $ 0 | $ 0 | $ 0 | $ 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Deficit (Unaudited) - 6 months ended Jun. 30, 2017 - USD ($) | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Additional Paid-in Capital, Warrants | Retained Earnings |
Shareholders' Equity, Starting Balance at Dec. 31, 2016 | $ (2,661,011) | $ 4,544 | $ 226,212 | $ 38,905,332 | $ 20,626 | $ (41,817,725) |
Shares Outstanding, Starting Balance at Dec. 31, 2016 | 4,543,654 | 226,211,740 | ||||
Sale of common stock, net of issuance costs, Value | 400,000 | $ 0 | $ 13,333 | 386,667 | 0 | 0 |
Sale of common stock, net of issuance costs, Shares | 0 | 13,333,334 | ||||
Conversion of Series C Convertible Preferred Stock to common stock, Value | 0 | $ (899) | $ 17,981 | (17,082) | 0 | 0 |
Conversion of Series C Convertible Preferred Stock to common stock, Shares | (899,076) | 17,981,520 | ||||
Issuance of common stock for registration penalty, Value | 13,200 | $ 0 | $ 132 | 13,068 | 0 | 0 |
Issuance of common stock for registration penalty, Shares | 0 | 132,000 | ||||
Exercise of warrants to purchase common stock, Value | 38,000 | $ 0 | $ 4,422 | 54,204 | (20,626) | 0 |
Exercise of warrants to purchase common stock, Shares | 0 | 4,421,857 | ||||
Issuance of common stock for services, Value | $ 200,000 | $ 0 | $ 7,000 | 193,000 | 0 | 0 |
Issuance of common stock for services, Shares | (7,000,000) | 0 | 7,000,000 | |||
Issuance of convertible securities with beneficial conversion features, Value | $ 25,635 | $ 0 | $ 0 | 25,635 | 0 | 0 |
Issuance of convertible securities with beneficial conversion features, Shares | 0 | 0 | ||||
Net Income (Loss) | (532,926) | $ 0 | $ 0 | 0 | 0 | (532,926) |
Shareholders' Equity Balance at Jun. 30, 2017 | $ (2,517,102) | $ 3,645 | $ 269,080 | $ 39,560,824 | $ 0 | $ (42,350,651) |
Shares Outstanding, Ending Balance at Jun. 30, 2017 | 3,644,578 | 269,080,451 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net Income (Loss) | $ (532,926) | $ 26,072 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation | 26,546 | 54,972 |
Amortization of discount on notes payable | 41,452 | 52,194 |
Gain on extinguishment of debt | (13,693) | (133,521) |
Accrued registration payment arrangement | (432,578) | (492,583) |
Accrued interest payable | 102,604 | 65,058 |
Issuance of common stock for services, Value | 200,000 | 0 |
Changes in operating assets and liablities: | ||
Accounts receivable | (83,000) | (157,300) |
Prepaid expenses and other current assets | 15,157 | 22,750 |
Accounts payable | (10,762) | (43,635) |
Accrued expenses | 213,106 | 16,791 |
Due to related parties | 0 | (504) |
Net cash used in operating activities | (474,094) | (589,706) |
Cash flows from investing activities: | ||
Purchase of property and equipment | 0 | (15,202) |
Net cash used in investing activities | 0 | (15,202) |
Cash flows from financing activities: | ||
Proceeds from issuance of notes payable | 0 | 250,000 |
Principal payments on notes payable | (26,653) | (107,281) |
Principal payments on capital lease liabilities | (1,777) | (1,727) |
Proceeds from sale of common stock, net of offering costs | 400,000 | 0 |
Proceeds from exercise of warrants to purchase common stock | 38,000 | 0 |
Proceeds from sale of Series C Convertible Preferred Stock, net of offering costs | 0 | 543,373 |
Net cash provided by financing activities | 409,570 | 684,365 |
Net change in cash and cash equivalents | (64,524) | 79,457 |
Cash and cash equivalents at beginning of period | 66,992 | 16,962 |
Cash and cash equivalents at end of period | 2,468 | 96,419 |
Supplemental disclosures: | ||
Cash paid during period for interest | 2,243 | 15,520 |
Cash paid during period for income taxes | 0 | 0 |
Non-cash transactions: | ||
Issuance of common stock for registration penalty, Value | 13,200 | 0 |
Liabilities settled by issuance of notes payable | 51,227 | 0 |
Issuance of convertible securities with beneficial conversion features, Value | 25,635 | 0 |
Issuance of common stock in settlement of liabilities | 0 | 1,112,799 |
Issuance of Series C Convertible Preferred Stock in settlement of liabilities | 0 | 358,731 |
Issuance of warrants to purchase common stock in settlement of liabilities | 0 | 54,278 |
Issuance of common stock for services, Value | $ 200,000 | $ 0 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
Notes | |
Note 1 - Basis of Presentation | Note 1 – Basis of Presentation The Unaudited Consolidated Financial Statements included herein have been prepared by Geospatial Corporation (the “Company”) in accordance with accounting principles generally accepted in the United States of America for interim financial information and regulations issued pursuant to the Securities Exchange Act of 1934, as amended. Accordingly, the accompanying Unaudited Consolidated Financial Statements do not include all the information and notes required by accounting principles generally accepted in the United States of America for complete financial statements. The accompanying Unaudited Consolidated Financial Statements as of and for the three months ended June 30, 2017 should be read in conjunction with the Company’s Financial Statements as of and for the year ended December 31, 2016. In the opinion of the Company’s management, all adjustments considered necessary for a fair statement of the accompanying Unaudited Consolidated Financial Statements have been included, and all adjustments, unless otherwise discussed in the Notes to the Unaudited Consolidated Financial Statements, are of a normal and recurring nature. Operating results for the three and six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017, or any other interim periods, or any future year or period. The use of accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Consolidated Financial Statements include the accounts of the Company and its subsidiaries, Geospatial Mapping Systems, Inc. and Utility Services and Consulting Corporation, which ceased operations in 2011. All intercompany accounts and transactions have been eliminated. |
Note 2 - Accrued Expenses
Note 2 - Accrued Expenses | 6 Months Ended |
Jun. 30, 2017 | |
Notes | |
Note 2 - Accrued Expenses | Note 2 – Accrued Expenses Accrued expenses consisted of the following: June 30, December 31, 2017 2016 Payroll and taxes $ 780,569 $ 632,678 Accounting 81,376 62,792 Contractors and subcontractors 10,227 10,227 Interest 2,043 2,150 Insurance 5,521 - Other 104,793 105,350 Accrued expenses $ 984,529 $ 813,197 |
Note 3 - Related Party Transact
Note 3 - Related Party Transactions | 6 Months Ended |
Jun. 30, 2017 | |
Notes | |
Note 3 - Related Party Transactions | On November 9, 2012, the Company and Mr. Smith entered into a Lease Agreement, pursuant to which the Company leases a field vehicle from Mr. Smith. The lease is for 60 months, and is for substantially the same terms for which Mr. Smith leases the vehicle from the manufacturer. Interest on the lease amounted to $15 and $41 for the three months ended June 30, 2017 and 2016, respectively, and $37 and $88 for the six months ended June 30, 2017 and 2016, respectively. The lease is recorded as a capital lease. At June 30, 2017, gross assets recorded under the lease and associated accumulated depreciation were $16,870 and $15,605, respectively. Future minimum payments under the capital lease are as follows as of June 30, 2017: Balance of 2017 $ 1,512 Thereafter -- Total minimum payments 1,512 Less: minimum interest payments (11) Minimum principal payments $ 1,501 |
Note 4 - Notes Payable
Note 4 - Notes Payable | 6 Months Ended |
Jun. 30, 2017 | |
Notes | |
Note 4 - Notes Payable | Note 4 – Notes Payable Current notes payable consisted of the following: June 30, 2017 December 31, 2016 Secured Promissory Note, payable to an individual, bearing interest at 10% per annum, due January 31, 2017, net of discount. After January 31, 2017, the note bears interest at 20%. The note is convertible to common stock at 75% of the weighted average trading price, and is secured by substantially all the assets of the Company $ 1,451,277 $ 1,332,920 Note payable under settlement agreement with vendor, payable monthly over 10 months, with interest 5,560 - Notes payable under settlement agreements with former employees, payable monthly with terms of up to twelve months, with interest rates ranging from 0% to 20% 15,335 32,818 Current portion of long-term notes payable $ 30,000 $ - Current notes payable $ 1,502,172 $ 1,365,738 Long-term notes payable consisted of the following: June 30, 2017 June 30, 2016 Note payable under settlement agreements with former employee, payable monthly with term of 16 months, with interest $ 36,667 $ - Total long-term notes payable 36,667 - Less: current portion (30,000) - Long-term notes payable, less current portion $ 6,667 $ - Future maturities of long-term debt are as follows as of June 30, 2017: Balance of 2017 $ 15,000 Year ending December 31, 2018 21,667 Thereafter - -- $ 36,667 |
Note 5 - Income Taxes
Note 5 - Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Notes | |
Note 5 - Income Taxes | Note 5 – Income Taxes The Company’s provision for (benefit from) income taxes is summarized below: Three Months Ended June 30, 2017 Three Months Ended June 30, 2016 Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 Current: Federal $ - $ - $ - $ - State - - - - - - - - Deferred: Federal (94,634) (68,553) (166,242) (145,323) State (30,043) (21,763) (52,775) (46,134) (124,677) (90,316) (219,017) (191,457) Total income taxes (124,677) (90,316) (219,017) (191,457) Less: valuation allowance 124,677 90,316 219,017 191,457 Net income taxes $ - $ - $ - $ - The reconciliation of the federal statutory income tax rate to the effective income tax rate is as follows: Three Months Ended June 30, 2017 Three Months Ended June 30, 2016 Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 Federal statutory rate 35.0 % 35.0 % 35.0 % 35.0 % State income taxes (net of federal benefit) 6.5 6.5 6.5 6.5 Valuation allowance (41.5) (41.5) (41.5) (41.5) Effective rate 0.0 % 0.0 % 0.0 % 0.0 % Significant components of the Company’s deferred tax assets and liabilities are summarized below. A valuation allowance has been established as realization of such assets has not met the more-likely-than-not threshold requirement under FASB ASC 740. June 30, 2017 December 31, 2016 Start-up costs $ 22,741 $ 35,033 Depreciation (37,326) (37,423) Accrued expenses 353,355 745,103 Net operating loss carryforward 16,731,262 15,714,795 Deferred income taxes 17,070,032 16,457,508 Less: valuation allowance (17,070,032) (16,457,508) Net deferred income taxes $ - $ - At June 30, 2017, the Company had federal and state net operating loss carryforwards of approximately $40,316,000. The federal and state net operating loss carryforwards will expire beginning in 2021 and 2026, respectively. The amount of the state net operating loss carryforward that can be utilized each year to offset taxable income is limited by state law. |
Note 6 - Net Income (Loss) Per
Note 6 - Net Income (Loss) Per Share of Common Stock | 6 Months Ended |
Jun. 30, 2017 | |
Notes | |
Note 6 - Net Income (Loss) Per Share of Common Stock | Basic net income (loss) per share of common stock are computed by dividing earnings available to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per share reflects per share amounts that would have resulted if dilutive potential common stock had been converted to common stock. Dilutive potential common shares are calculated in accordance with the treasury stock method, which assumes that proceeds from the exercise of all warrants and options are used to repurchase common stock at market value. The number of shares remaining after the proceeds are exhausted represents the potentially dilutive effect of the securities. The following reconciles amounts reported in the financial statements: Three Months Ended June 30, 2017 Three Months Ended June 30, 2016 Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 Net Income (Loss) $ (302,111) $ (221,654) $ (532,926) $ 26,072 Weighted average number of shares of common stock outstanding 260,511,076 157,615,632 249,148,356 150,475,853 Dilutive potential shares of common stock 260,511,076 157,615,632 249,148,356 150,475,853 Net income (loss) per share of common stock: Basic $ (0.00) $ (0.00) $ (0.00) $ (0.00) Diluted $ (0.00) $ (0.00) $ (0.00) $ (0.00) The following securities were not included in the computation of diluted net loss per share, as their effect would have been anti-dilutive: Three Months Ended June 30, 2017 Three Months Ended June 30, 2016 Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 Series B Convertible Preferred Stock - - - 1,766,830 Series C Convertible Preferred Stock 72,891,560 63,986,319 76,865,377 34,190,962 Options and warrants to purchase common stock 5,953,003 52,778,589 12,374,734 50,034,974 Secured Promissory Note 42,139,511 6,165,741 33,939,564 6,261,574 Senior Convertible Redeemable Notes - 1,952,032 - 769,724 Total 120,984,074 15,236,414 123,179,675 16,165,125 |
Note 7 - Stock-Based Payments
Note 7 - Stock-Based Payments | 6 Months Ended |
Jun. 30, 2017 | |
Notes | |
Note 7 - Stock-Based Payments | Note 7 – Stock-Based Payments During the six months ended June 30, 2017, the Company granted warrants to purchase 833,334 shares of the Company’s common stock to investors in connection with investments in the Company’s common stock. The Company also issued 7,000,000 shares of common stock to vendors in consideration for services. The Company recorded expense of $200,000, the fair value of the services received. |
Note 8 - Gains on Extinguishmen
Note 8 - Gains on Extinguishment of Debt | 6 Months Ended |
Jun. 30, 2017 | |
Notes | |
Note 8 - Gains on Extinguishment of Debt | Note 8 – Gains on Extinguishment of Debt Due to significant cash flow problems, the Company has negotiated concessions on the amounts of certain liabilities and extensions of payment terms. The Company accounts for such concessions in accordance with Financial Accounting Standards Board Accounting Standards Codification (“ASC”) 470-60, Troubled Debt Restructurings by Debtors Extinguishment of Liabilities |
Note 8 - Gains on Extinguishment of Debt | Note 9 – Registration Payment Arrangements The Company is contractually obligated to issue shares of its common stock to certain investors for failure to register shares of its common stock under the Securities Act of 1933, as amended (the “Securities Act”). The Company has recorded a liability for the estimated number of shares to be issued at the fair value of the stock to be issued. The Company measures fair value by the price of its common stock at its most recent sale. The Company reviews its estimate of the number of shares to be issued and the fair value of the stock to be issued quarterly. The liability is included on the Consolidated Balance Sheet under the heading “accrued registration payment arrangement,” and amounted to $76,337 and $522,115 at June 30, 2017 and December 31, 2016, respectively. Gains or losses resulting from changes in the carrying amount of the liability are included in the Consolidated Statement of Operations in other income and expense under the heading “registration payment arrangements”. The Company had gains from registration payment arrangements of $178,120 and $0 during the three months ended June 30, 2017 and 2016, respectively, and gains of $432,578 and $492,583 during the six months ended June 30, 2017 and 2016, respectively. |
Note 2 - Accrued Expenses_ Sche
Note 2 - Accrued Expenses: Schedule of Accounts Payable and Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Tables/Schedules | |
Schedule of Accounts Payable and Accrued Liabilities | June 30, December 31, 2017 2016 Payroll and taxes $ 780,569 $ 632,678 Accounting 81,376 62,792 Contractors and subcontractors 10,227 10,227 Interest 2,043 2,150 Insurance 5,521 - Other 104,793 105,350 Accrued expenses $ 984,529 $ 813,197 |
Note 3 - Related Party Transa16
Note 3 - Related Party Transactions: Schedule of Future Minimum Lease Payments for Capital Leases (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Tables/Schedules | |
Schedule of Future Minimum Lease Payments for Capital Leases | Balance of 2017 $ 1,512 Thereafter -- Total minimum payments 1,512 Less: minimum interest payments (11) Minimum principal payments $ 1,501 |
Note 4 - Notes Payable_ Schedul
Note 4 - Notes Payable: Schedule of Current Notes Payable (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Tables/Schedules | |
Schedule of Current Notes Payable | June 30, 2017 December 31, 2016 Secured Promissory Note, payable to an individual, bearing interest at 10% per annum, due January 31, 2017, net of discount. After January 31, 2017, the note bears interest at 20%. The note is convertible to common stock at 75% of the weighted average trading price, and is secured by substantially all the assets of the Company $ 1,451,277 $ 1,332,920 Note payable under settlement agreement with vendor, payable monthly over 10 months, with interest 5,560 - Notes payable under settlement agreements with former employees, payable monthly with terms of up to twelve months, with interest rates ranging from 0% to 20% 15,335 32,818 Current portion of long-term notes payable $ 30,000 $ - Current notes payable $ 1,502,172 $ 1,365,738 |
Note 4 - Notes Payable_ Sched18
Note 4 - Notes Payable: Schedule of Long-term Notes Payable (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Tables/Schedules | |
Schedule of Long-term Notes Payable | June 30, 2017 June 30, 2016 Note payable under settlement agreements with former employee, payable monthly with term of 16 months, with interest $ 36,667 $ - Total long-term notes payable 36,667 - Less: current portion (30,000) - Long-term notes payable, less current portion $ 6,667 $ - |
Note 4 - Notes Payable_ Sched19
Note 4 - Notes Payable: Schedule of Future maturities of long-term debt (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Tables/Schedules | |
Schedule of Future maturities of long-term debt | Balance of 2017 $ 15,000 Year ending December 31, 2018 21,667 Thereafter - -- $ 36,667 |
Note 5 - Income Taxes_ Schedule
Note 5 - Income Taxes: Schedule of Components of Income Tax Expense (Benefit) (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Tables/Schedules | |
Schedule of Components of Income Tax Expense (Benefit) | Three Months Ended June 30, 2017 Three Months Ended June 30, 2016 Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 Current: Federal $ - $ - $ - $ - State - - - - - - - - Deferred: Federal (94,634) (68,553) (166,242) (145,323) State (30,043) (21,763) (52,775) (46,134) (124,677) (90,316) (219,017) (191,457) Total income taxes (124,677) (90,316) (219,017) (191,457) Less: valuation allowance 124,677 90,316 219,017 191,457 Net income taxes $ - $ - $ - $ - |
Note 5 - Income Taxes_ Schedu21
Note 5 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Tables/Schedules | |
Schedule of Effective Income Tax Rate Reconciliation | Three Months Ended June 30, 2017 Three Months Ended June 30, 2016 Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 Federal statutory rate 35.0 % 35.0 % 35.0 % 35.0 % State income taxes (net of federal benefit) 6.5 6.5 6.5 6.5 Valuation allowance (41.5) (41.5) (41.5) (41.5) Effective rate 0.0 % 0.0 % 0.0 % 0.0 % |
Note 5 - Income Taxes_ Schedu22
Note 5 - Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Tables/Schedules | |
Schedule of Deferred Tax Assets and Liabilities | June 30, 2017 December 31, 2016 Start-up costs $ 22,741 $ 35,033 Depreciation (37,326) (37,423) Accrued expenses 353,355 745,103 Net operating loss carryforward 16,731,262 15,714,795 Deferred income taxes 17,070,032 16,457,508 Less: valuation allowance (17,070,032) (16,457,508) Net deferred income taxes $ - $ - |
Note 6 - Net Income (Loss) Pe23
Note 6 - Net Income (Loss) Per Share of Common Stock: Schedule of Earnings Per Share, Basic and Diluted (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Tables/Schedules | |
Schedule of Earnings Per Share, Basic and Diluted | Three Months Ended June 30, 2017 Three Months Ended June 30, 2016 Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 Net Income (Loss) $ (302,111) $ (221,654) $ (532,926) $ 26,072 Weighted average number of shares of common stock outstanding 260,511,076 157,615,632 249,148,356 150,475,853 Dilutive potential shares of common stock 260,511,076 157,615,632 249,148,356 150,475,853 Net income (loss) per share of common stock: Basic $ (0.00) $ (0.00) $ (0.00) $ (0.00) Diluted $ (0.00) $ (0.00) $ (0.00) $ (0.00) |
Note 6 - Net Income (Loss) Pe24
Note 6 - Net Income (Loss) Per Share of Common Stock: Schedule of Excluded Securities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Tables/Schedules | |
Schedule of Excluded Securities | Three Months Ended June 30, 2017 Three Months Ended June 30, 2016 Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 Series B Convertible Preferred Stock - - - 1,766,830 Series C Convertible Preferred Stock 72,891,560 63,986,319 76,865,377 34,190,962 Options and warrants to purchase common stock 5,953,003 52,778,589 12,374,734 50,034,974 Secured Promissory Note 42,139,511 6,165,741 33,939,564 6,261,574 Senior Convertible Redeemable Notes - 1,952,032 - 769,724 Total 120,984,074 15,236,414 123,179,675 16,165,125 |
Note 2 - Accrued Expenses_ Sc25
Note 2 - Accrued Expenses: Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Details | ||
Payroll and taxes | $ 780,569 | $ 632,678 |
Accounting | 81,376 | 62,792 |
Contractors and subcontractors | 10,227 | 10,227 |
Interest | 2,043 | 2,150 |
Insurance | 5,521 | 0 |
Other | 104,793 | 105,350 |
Accrued expenses | $ 984,529 | $ 813,197 |
Note 3 - Related Party Transa26
Note 3 - Related Party Transactions (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Details | ||
Gross assets recorded under the lease and associated accumulated depreciation | $ 16,870 | $ 15,605 |
Note 3 - Related Party Transa27
Note 3 - Related Party Transactions: Schedule of Future Minimum Lease Payments for Capital Leases (Details) | Jun. 30, 2017USD ($) |
Details | |
Capital Leases, Future Minimum Payments Due, Next Twelve Months | $ 1,512 |
Capital Leases, Future Minimum Payments Due Thereafter | 0 |
Capital Leases, Future Minimum Payments Due | 1,512 |
Capital Leases, Future Minimum Payments, Executory Costs | (11) |
Capital Leases, Future Minimum Payments, Net Minimum Payments | $ 1,501 |
Note 4 - Notes Payable_ Sched28
Note 4 - Notes Payable: Schedule of Current Notes Payable (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Notes Payable, Current | $ 1,502,172 | $ 1,365,738 |
Secured Promissory Note | ||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | |
Debt Instrument, Convertible, Terms of Conversion Feature | convertible to common stock at 75% of the weighted average trading price | |
Debt Instrument, Collateral | secured by substantially all the assets of the Company | |
Notes Payable, Current | $ 1,451,277 | 1,332,920 |
Note payable under settlement agreement with vendor | ||
Debt Instrument, Interest Rate, Stated Percentage | 0.00% | |
Notes Payable, Current | $ 5,560 | 0 |
Notes payable under settlement agreements with former employees | ||
Debt Instrument, Interest Rate, Stated Percentage | 0.00% | |
Notes Payable, Current | $ 15,335 | $ 32,818 |
Notes payable under settlement agreements with former employees | Minimum | ||
Debt Instrument, Interest Rate, Stated Percentage | 0.00% | |
Notes payable under settlement agreements with former employees | Maximum | ||
Debt Instrument, Interest Rate, Stated Percentage | 20.00% |
Note 4 - Notes Payable_ Sched29
Note 4 - Notes Payable: Schedule of Long-term Notes Payable (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Notes Payable, Noncurrent | $ 36,667 | $ 0 |
Notes, Current Portion | (30,000) | 0 |
Notes payable | $ 6,667 | 0 |
Notes payable under settlement agreements with former employees | ||
Debt Instrument, Payment Terms | payable monthly with term of 16 months | |
Debt Instrument, Interest Rate, Stated Percentage | 0.00% | |
Notes Payable, Noncurrent | $ 36,667 | $ 0 |
Note 4 - Notes Payable_ Sched30
Note 4 - Notes Payable: Schedule of Future maturities of long-term debt (Details) | Jun. 30, 2017USD ($) |
Details | |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 15,000 |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 21,667 |
Long-term Debt | $ 36,667 |
Note 5 - Income Taxes_ Schedu31
Note 5 - Income Taxes: Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Current: | ||||
Federal | $ 0 | $ 0 | $ 0 | $ 0 |
State | 0 | 0 | 0 | 0 |
Deferred: | ||||
Federal | (94,634) | (68,553) | (166,242) | (145,323) |
State | (30,043) | (21,763) | (52,775) | (46,134) |
Total income taxes | (124,677) | (90,316) | (219,017) | (191,457) |
Less: valuation allowance | 124,677 | 90,316 | 219,017 | 191,457 |
Net Income Taxes | $ 0 | $ 0 | $ 0 | $ 0 |
Note 5 - Income Taxes_ Schedu32
Note 5 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Details | ||||
Federal statutory rate | 35.00% | 35.00% | 35.00% | 35.00% |
State income taxes (net of federal benefit) | 6.50% | 6.50% | 6.50% | 6.50% |
Valuation allowance | (41.50%) | (41.50%) | (41.50%) | (41.50%) |
Effective rate | 0.00% | 0.00% | 0.00% | 0.00% |
Note 5 - Income Taxes_ Schedu33
Note 5 - Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Details | ||
Deferred Tax Assets and Liabilities, Start-up Costs | $ 22,741 | $ 35,033 |
Deferred Tax Assets and Liabilities, Depreciation | (37,326) | (37,423) |
Deferred Tax Assets and Liabilities, Accrued Expenses | 353,355 | 745,103 |
Net operating loss carryforward | 16,731,262 | 15,714,795 |
Deferred income taxes | 17,070,032 | 16,457,508 |
Less: valuation allowance | (17,070,032) | (16,457,508) |
Net deferred income taxes | $ 0 | $ 0 |
Note 6 - Net Income (Loss) Pe34
Note 6 - Net Income (Loss) Per Share of Common Stock: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Details | ||||
Net Income (Loss) | $ (302,111) | $ (221,654) | $ (532,926) | $ 26,072 |
Weighted average number of shares of common stock outstanding | 260,511,076 | 157,615,632 | 249,148,356 | 150,475,853 |
Dilutive potential shares of common stock | 260,511,076 | 157,615,632 | 249,148,356 | 150,475,853 |
Net income (loss) per share of common stock: | ||||
Basic | $ 0 | $ 0 | $ 0 | $ 0 |
Diluted | $ 0 | $ 0 | $ 0 | $ 0 |
Note 6 - Net Income (Loss) Pe35
Note 6 - Net Income (Loss) Per Share of Common Stock: Schedule of Excluded Securities (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Details | ||||
Series B Convertible Preferred Stock | $ 0 | $ 0 | $ 0 | $ 1,766,830 |
Series C Convertible Preferred Stock | 72,891,560 | 63,986,319 | 76,865,377 | 34,190,962 |
Options and warrants to purchase common stock | 5,953,003 | 52,778,589 | 12,374,734 | 50,034,974 |
Secured Promissory Note | 42,139,511 | 6,165,741 | 33,939,564 | 6,261,574 |
Senior Convertible Redeemable Notes | 0 | 1,952,032 | 0 | 769,724 |
Total | $ 120,984,074 | $ 15,236,414 | $ 123,179,675 | $ 16,165,125 |
Note 7 - Stock-Based Payments (
Note 7 - Stock-Based Payments (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Details | ||
Stock Issued During Period, Shares, Issued for Services | 7,000,000 | |
Issuance of common stock for services, Value | $ 200,000 | $ 0 |
Note 8 - Gains on Extinguishm37
Note 8 - Gains on Extinguishment of Debt (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Details | |||||
Gain on extinguishment of debt | $ 0 | $ 58,603 | $ 13,693 | $ 133,521 | |
Accrued registration payment arrangement | 76,337 | 76,337 | $ 522,115 | ||
Registration payment arrangements | $ 178,120 | $ 0 | $ 432,578 | $ 492,583 |