| Note 2. Significant Accounting Policies | Going
Concern The
accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company has
incurred recurring net losses and the Company does not currently have sufficient revenue producing operations to cover its operating
expenses and meet its current obligations. In view of these matters, there is substantial doubt about the Company's ability to
continue as a going concern. The Company intends on financing its future development activities and its working capital needs
largely from the sale of public equity securities with some additional funding from other traditional financing sources, including
term notes until such time that funds provided by operations are sufficient to fund working capital requirements. The financial
statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets,
or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going
concern. The
Chief Executive Officer has agreed to advance funds or make payments of the Company's obligations at his discretion. There is
no written agreement to continue this support. Use
of Estimates The
preparation of financial statements in conformity with generally accepted accounting principles requires the Company's management
to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements
and the reported amounts of income and expenses during the reported period. Changes in the economic environment, financial markets,
as well as in the healthcare industry, and any other parameters used in determining these estimates, could cause actual results
to differ. Trade Accounts Receivable and Concentration
Risk There
was $100,000 and $0 of provision for doubtful accounts recorded at September 30, 2018 and December 31, 2017, respectively. The
Company recorded $100,000 and $20,226 in bad debt expenses for the nine months ended September 30, 2018 and for the year ended
December 31, 2017, respectively. For
the nine months ended September 30, 2018, one customer made up approximately 99% of the Company’s outstanding accounts receivable
balance. For the nine months ended September 30, 2018, three customers accounted for 48%, 29% and 12% of the Company’s net
revenue, respectively. For
the year ended December 31, 2017, one customer made up 99% of the Company’s outstanding accounts receivable balance. For
the year ended December 31, 2017 one customer accounted for 93% of the Company’s net revenue. Inventory Inventory
is valued at the lower of cost or market using the first-in, first-out (FIFO) method. Inventory on the balance sheet consists
of raw materials purchased by the Company and finished goods.
September 30,
2018 December
31, 2017
Raw
materials $ 34,270 $ 34,270
Finished
goods 126,563 129,264
$ 160,833 $ 163,534 Stock
Based Compensation The
Company issues restricted stock to consultants and employees for various services. Cost for these transactions are measured at
the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable.
The value of the common stock for non-employees is measured at the date at which a firm commitment for performance by the counterparty
to earn the equity instruments is reached and expense is recognized during the term at which the counterparty's performance is
earned or at the date the shares are considered non-forfeitable. The Company recognized consulting expenses and a corresponding
increase to additional paid-in-capital related to stock issued for services. Compensation for employee stock grants are recognized
at the fair market value of the shares at the date of grant and recognized at the grant date, as it is considered that the shares
issued are considered non-forfeitable at the date of grant. Stock compensation for the periods presented were issued for past
services provided, accordingly, all shares issued are fully vested, and there is no unrecognized compensation associated with
these transactions. In
January 2018, the Company issued 14,150,000 shares of common stock and placed them in escrow during the period. The shares are
to be issued to various individuals upon change of control of the Company. The Company is unable to estimate when a change of
control may occur and has not recorded any expenses related to these shares. The shares were valued at their fair market value
of $1.09 per share and have a total value of $15,423,500. Per
Share Information Basic
earnings per share are calculated using the weighted average number of common shares outstanding for the period presented. Diluted
earnings per share is computed using the weighted-average number of common shares and, if dilutive, potential common shares outstanding
during the period. Potential common shares consist of the shares of common stock held in escrow. The dilutive effect of potential
common shares is not reflected in diluted earnings per share because the Company incurred a net loss for the three and nine month
periods ended September 30, 2018 and 2017 and the effect of including these potential common shares in the net loss per share
calculations would be anti-dilutive. The Company did not have any potential common shares as of September 30, 2018 and 2017. The
total potential common shares as of September 30, 2018 and December 31, 2017 include 14,150,000 and 0, respectively, of common
stock held in escrow until a change of control in the Company occurs. New
Accounting Pronouncements, Recently Adopted Accounting Pronouncements Revenue
Recognition Effective
January 1, 2018, the Company adopted ASC 606 — Revenue from Contracts with Customers. Under ASC 606, the Company recognizes
revenue from the sale of its HemoStyp product by applying the following steps: (1) identify the contract with a customer; (2)
identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price
to each performance obligation in the contract; and (5) recognize revenue when each performance obligation is satisfied. The
Company evaluated the impact on the financial statements and there would have been no impact on the financial statements as a
result of adopting ASC 606 for the three and nine months ending September 30, 2017. Leases In
February 2016, the FASB issued Accounting Standards Update (ASU) No. ASU 2016-02, Leases, The
Company considers all new pronouncements and management has determined that there have been no other recently adopted or issued
accounting standards that had or will have a material impact on its Financial Statements. Reclassification
of Prior Year Presentation Certain prior year amounts have
been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported
results of operations. |
