Validian (VLDI) 10-K 17 Apr 18 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2017	Apr. 02, 2018	Jun. 30, 2017
Document and Entity Information:
Entity Registrant Name	Validian Corporation
Document Type	10-K
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Entity Central Index Key	1,100,644
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		634,577,895
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	FY
Entity Incorporation, State Country Name	Nevada
Entity Incorporation, Date of Incorporation	Apr. 12, 1989
Entity Public Float			$ 18,579,465
Trading Symbol	vldi

VALIDIAN CORPORATION Consolidat

VALIDIAN CORPORATION Consolidated Balance Sheets - USD ($)		Dec. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents			$ 191,764
Value added taxes recoverable		$ 5,995	34,020
Prepaid expenses		25,974	57,544
Total current assets		31,969	283,328
Total assets		31,969	283,328
Current liabilities:
Bank indebtedness		103
Accounts payable		697,438	443,910
Accrued liabilities		2,387,412	2,119,910
Accrued interest on 10% notes payable to related parties	[1]	4,187	4,001
Deferred revenue		320,000	320,000
Promissory notes payable	[2]	61,250	112,784
10% Senior convertible notes	[3]	1,168,974	962,739
Promissory notes payable to a related party	[4]	4,500
Convertible promissory notes	[5]	29,166	32,777
Total current liabilities		4,673,030	3,996,121
Total liabilities		4,673,030	3,996,121
Stockholders' deficiency:
Preferred stock ($0.001 par value. Authorized 50,000,000 shares; issued and outstanding Nil shares in 2017 and 2016)			0
Series A Convertible Preferred stock ($0.001 par value, $1,000 stated value. Authorized 10,000 shares in 2017 and 2016; issued and outstanding 2,230 shares in 2017 and 2,230 shares in 2016)		2	2
Series B Convertible Preferred stock ($0.001 par value, $1,000 stated value. Authorized 5,000 shares in 2017 and 2016; issued and outstanding 3,900 shares in 2017 and 3,900 shares in 2016)		4	4
Series C Convertible Preferred stock ($0.001 par value, $1,000 stated value. Authorized 5,000 shares in 2017 and 2016; issued and outstanding 3,409 shares in 2017 and 3,151 shares in 2016)		3	3
Common stock ($0.001 par value. Authorized 700,000,000 shares in 2017 and in 2016; Issued and outstanding 600,520,343 shares in 2017 and 442,341,498 shares in 2016	[6]	600,520	442,342
Additional paid-in capital		49,567,976	48,555,010
Deficit		(54,759,828)	(52,660,416)
Treasury stock (7,000 shares in 2017 and 2016 at cost)		(49,738)	(49,738)
Net stockholders' deficiency		(4,641,061)	(3,712,793)
Total liabilities and stockholders' deficiency	[1],[7]	$ 31,969	$ 283,328
[1]	Note 11
[2]	Note 4
[3]	Note 5
[4]	Note 4 and 11
[5]	Note 6
[6]	Note 7a
[7]	Future operations (note 2(a)), Guarantees and commitments (note 12), Subsequent events (note 17)

Statement of Financial Position

Statement of Financial Position - Parenthetical - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Statement of financial position
Preferred Stock, Par Value	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	50,000,000	50,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Preferred Stock, Series A, Par Value	$ 0.001	$ 0.001
Preferred Stock, Series A,Shares Authorized	10,000	10,000
Preferred Stock, Series A,Shares Issued	2,230	2,230
Preferred Stock, Series A,Shares Outstanding	2,230	2,230
Preferred Stock, Series B, Par Value	$ 0.001	$ 0.001
Preferred Stock, Series B, Shares Authorized	5,000	5,000
Preferred Stock, Series B, Shares Issued	3,900	3,900
Preferred Stock, Series B, Shares Outstanding	3,900	3,900
Preferred Stock, Series C, Par Value	$ 0.001	$ 0.001
Preferred Stock, Series C, Shares Authorized	5,000	5,000
Preferred Stock, Series C, Shares Issued	3,409	3,151
Preferred Stock, Series C, Shares Outstanding	3,409	3,151
Common Stock, Par Value	$ 0.001	$ 0.001
Common Stock, Shares Authorized	700,000,000	700,000,000
Common Stock, Shares Issued	600,520,343	442,341,498
Common Stock, Shares Outstanding	600,520,343	442,341,498
Treasury Stock, Shares	7,000	7,000
Treasury stock	$ 49,738	$ 49,738

VALIDIAN CORPORATION Consolida4

VALIDIAN CORPORATION Consolidated Statements of Operations - USD ($)		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016
Income:
Software licensing fees			$ 475,000
Total Income			475,000
Expenses:
Selling, general and administrative		$ 499,323	897,497
Research and development		497,924	930,019
Total Expenses		997,247	1,827,516
Loss before the undernoted		(997,247)	(1,352,516)
Other expenses:
Loss on extinguishment of debt and accrued liabilities	[1]		(1,645,294)
Interest and financing costs	[2]	(968,866)	(1,209,927)
Other		(133,299)	(53,271)
Total other expenses		(1,102,165)	(2,908,492)
Net loss		$ (2,099,412)	$ (4,261,008)
Loss per common share - basic and diluted	[3]	$ 0	$ (0.01)
Weighted average number of common shares outstanding		501,784,788	415,187,703
[1]	Note 9
[2]	Notes 9 and 11
[3]	Note 10

VALIDIAN CORPORATION Consolida5

VALIDIAN CORPORATION Consolidated Statements of Changes in Stockholders' Equity (Deficiency) - USD ($)		Common stock number	Common stock amount	Preferred stock, Series A number	Preferred stock, Series A amount	Preferred stock, Series B number	Preferred stock, Series B amount	Preferred stock, Series C number	Preferred stock, Series C amount		Additional paid-in capital		Deficit	Treasury stock	Total
Stockholders' Equity at Dec. 31, 2015			$ 387,538								$ 37,024,381		$ (48,228,458)	$ (49,738)	$ (10,866,277)
Shares issued at Dec. 31, 2015		387,538,066
Ser. A Conv. Preferred shares issued for cash, value					$ 1						1,224,999	[1]			1,225,000	[1]
Ser. A Conv. Preferred shares issued for cash, stock	[1]			1,225
Shares issued pursuant to the terms of the 10% senior convertible notes at issuance, value	[2]		210								5,996				6,206
Shares issued pursuant to the terms of the 10% senior convertible notes at issuance, stock	[2]	210,000
Intrinsic value of the beneficial conversion feature of the 10% senior convertible notes at date of issuance	[2]										11,873				11,873
Shares issued as partial consideration for consulting services rendered and to be rendered, value	[3]		9,100								274,230				283,330
Shares issued as partial consideration for consulting services rendered and to be rendered, stock	[3]	9,100,000
Common shares issued in connection with the conversion of the 10% senior convertible notes and accrued interest thereon, value	[3]		6,281								182,141				188,422
Common shares issued in connection with the conversion of the 10% senior convertible notes and accrued interest thereon, stock	[3]	6,280,729
Ser. A Conv. Preferred shares issued in connection with the conversion of the 10% senior convertible notes and accrued interest thereon, value	[1]				1						1,004,999				1,005,000
Ser. A Conv. Preferred shares issued in connection with the conversion of the 10% senior convertible notes and accrued interest thereon, stock	[1]			1,005
Ser. B Conv. Preferred shares issued in connection with the conversion of the 10% senior convertible notes and accrued interest thereon, value	[1]						$ 4				3,899,996				3,900,000
Ser. B Conv. Preferred shares issued in connection with the conversion of the 10% senior convertible notes and accrued interest thereon, stock	[1]					3,900
Ser. C Conv. Preferred shares issued in connection with the conversion of the 10% senior convertible notes and accrued interest thereon, value	[1]								$ 4		3,579,996				3,580,000
Ser. C Conv. Preferred shares issued in connection with the conversion of the 10% senior convertible notes and accrued interest thereon, stock	[1]							3,580
Effective discount on the beneficial conversion feature of the Ser. C Conv Preferred shares	[4]										170,950		(170,950)
Conversion of Ser. C Conv referred shares in exchange for Common shares, value	[5]		14,300					$ (429)	(1)		(14,299)
Conversion of Ser. C Conv referred shares in exchange for Common shares, stock	[5]	14,300,000
Shares issued in connection with the conversion of convertible promissory notes and accrued interest thereon, value	[3]		23,963								304,680				328,643
Shares issued in connection with the conversion of convertible promissory notes and accrued interest thereon, stock	[3]	23,962,703
Shares issued in settlement of Accounts payable, value			200								5,540				5,740
Shares issued in settlement of Accounts payable, stock		200,000
Intrinsic value of the beneficial conversion feature of the Convertible promissory notes at date of issuance											858,278				858,278
Shares issued pursuant to the terms of the promissory notes at issuance, value	[1]		750								21,250				22,000
Shares issued pursuant to the terms of the promissory notes at issuance, stock	[1]	750,000
Net loss													(4,261,008)		(4,261,008)
Stockholders' Equity at Dec. 31, 2016			442,342		2		4		3		48,555,010		(52,660,416)	(49,738)	(3,712,793)
Shares issued at Dec. 31, 2016		442,341,498		2,230		3,900		3,151
Ser. C Conv. Preferred shares issued in settlement of accounts payable, accrued liabilities and consulting fees rendered, value									0	[1]	118,200				118,200
Ser. C Conv. Preferred shares issued in settlement of accounts payable, accrued liabilities and consulting fees rendered, stock	[1]							258
Shares issued pursuant to the terms of the 10% senior convertible notes at issuance, value	[2]		10,500								57,235				67,735
Shares issued pursuant to the terms of the 10% senior convertible notes at issuance, stock	[2]	10,499,001
Shares issued in connection with the conversion of convertible promissory notes and accrued interest thereon, value	[3]		147,603								540,829				688,432
Shares issued in connection with the conversion of convertible promissory notes and accrued interest thereon, stock	[3]	147,604,844
Intrinsic value of the beneficial conversion feature of the Convertible promissory notes at date of issuance	[6]										295,196				295,196
Shares issued pursuant to the terms of the promissory notes at issuance, value			75								1,506				1,581
Shares issued pursuant to the terms of the promissory notes at issuance, stock		75,000
Net loss													(2,099,412)		(2,099,412)
Stockholders' Equity at Dec. 31, 2017			$ 600,520		$ 2		$ 4		$ 3		$ 49,567,976		$ (54,759,828)	$ (49,738)	$ (4,641,061)
Shares issued at Dec. 31, 2017		600,502,343		2,230		3,900		3,409
[1]	Note 7b
[2]	Note 5
[3]	Note 7a
[4]	Note 7d
[5]	Notes 7a and 7b
[6]	Note 6

VALIDIAN CORPORATION Consolida6

VALIDIAN CORPORATION Consolidated Statements of Cash Flows - USD ($)		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities:
Net loss		$ (2,099,412)	$ (4,261,008)
Items not involving cash:
Stock-based compensation expense	[1]	71,771	466,554
Non-cash interest expense		921,475	669,502
Non-cash sale transaction	[2]		(400,000)
Loss on extinguishment of debt and accrued liabilities	[3]		1,645,294
Change in non-cash operating working capital	[4]	579,064	135,119
Net cash used in operating activities		(527,102)	(1,744,539)
Cash flows from investing activities:
Additions to property and equipment		0	0
Net cash used in investing activities		0	0
Cash flows from financing activities:
Bank indebtedness		103
Issuance of Ser.A conv. Preferred shares			1,225,000
Issuance of 10% senior convertible notes		151,235	70,000
Issuance of convertible promissory notes		351,000	973,611
Issuance of promissory notes		31,000	82,500
Debt issuance costs		(16,000)	(29,750)
Original issue discount		(18,000)	(57,611)
Repayment of promissory notes		(88,000)
Repayment of 10% senior convertible notes		(5,000)	(49,794)
Repayment of convertible promissory notes		(71,000)	(316,111)
Net cash provided by financing activities		335,338	1,897,845
Net increase (decrease) in cash and cash equivalents		(191,764)	153,306
Cash and cash equivalents, beginning of period		$ 191,764	38,458
Cash and cash equivalents, end of period			$ 191,764
[1]	Note 7 d
[2]	Note 5
[3]	Note 9
[4]	Note 15

1. General

1. General	12 Months Ended
	Dec. 31, 2017
Notes
1. General:	1. General: Validian Corporation (the “Corporation”) was incorporated in the State of Nevada on April 12, 1989 as CCC Funding Corp. The Corporation underwent several name changes before being renamed to Validian Corporation on January 28, 2003. Since August 3, 1999, the efforts of the Corporation have been devoted to the development of a high speed, highly secure method of transacting business using the internet, and to the sale and marketing of the Corporation’s products.

2. Summary of Significant Accou

2. Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2017
Notes
2. Summary of Significant Accounting Policies:	2. Summary of significant accounting policies: (a) Future operations: The consolidated financial statements have been prepared assuming that the Corporation will continue as a going concern. The Corporation has had limited revenues to date, has negative working capital of $4,641,061, has accumulated a deficit of $54,759,828 as at December 31, 2017, and has incurred a loss of $2,099,412 and negative cash flow from operations of $527,102 for the year then ended. Furthermore, the Corporation failed to settle certain of its promissory notes and 10% senior convertible notes when they matured on various dates during the years 2007 through 2017, resulting in a condition of default for all of the 10% senior convertible notes and the promissory notes; a significant portion of these notes remain in default as at December 31, 2017. In addition, the Corporation expects to continue to incur operating losses for the foreseeable future and has no lines of credit or other financing facilities in place. If the Corporation obtains further financing and generates revenue, it expects to incur operating expenditures of approximately $1,472,000 for the year ending December 31, 2018. In the event the Corporation cannot raise the funds necessary to finance its research and development and sales and marketing activities, it may have to cease operations. All of the factors above raise substantial doubt about the Corporation’s ability to continue as a going concern. Management’s plans to address these issues include raising capital through the private placement of equity, the exercise of previously-issued equity instruments and through the issuance of additional promissory notes and convertible notes. The Corporation’s ability to continue as a going concern is subject to management’s ability to successfully implement these plans. Failure to do so could have a material adverse effect on the Corporation’s position and or results of operations and could also result in the Corporation’s ceasing operations. The consolidated financial statements do not include adjustments that would be required if the assets are not realized and the liabilities settled in the normal course of operations. Even if successful in obtaining financing in the near term, the Corporation cannot be certain that cash generated from its future operations will be sufficient to satisfy its liquidity requirements in the longer term, and it may need to continue to raise capital by issuing additional equity or by obtaining credit facilities. The Corporation’s future capital requirements will depend on many factors, including, but not limited to, the market acceptance of its products and the level of its promotional activities and advertising required to generate product sales. No assurance can be given that any such additional funding will be available or that, if available, it can be obtained on terms favorable to the Corporation. (b) Principles of consolidation: These consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America and include the accounts of Validian Corporation and its wholly-owned subsidiaries, Sochrys Technologies Inc. and Evolusys S.A. All intercompany balances and transactions have been eliminated. (c) Cash and cash equivalents: Cash and cash equivalents include liquid investments with original maturity dates of three months or less. (d) Property and equipment: Property and equipment is stated at cost less accumulated depreciation and includes computer hardware and software. These assets are being depreciated on a straight-line basis over their estimated useful lives, as follows: computer hardware: 2 years; computer software: 1 year. (e) Leases: Leases are classified as either capital or operating in nature. Capital leases are those which substantially transfer the benefits and risk of ownership to the Corporation. Assets acquired under capital leases are depreciated as described in note 1(d). Obligations recorded under capital leases are reduced by the principal portion of lease payments. The imputed interest portion of lease payments is charged to expense. (f) Prepaid expenses: Prepaid consulting fees related to services to be rendered within twelve months from the balance sheet date are included in prepaid expenses. These costs are charged to expenses as the services are rendered. If for any reason circumstances arise which would indicate that the services will not be performed in the future, any remaining balance included in prepaid expenses will be charged to expense immediately. (g) Income taxes: Deferred income taxes are determined using the asset and liability method, whereby deferred income tax is recognized based on temporary differences using enacted tax rates that are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Temporary differences between the carrying values of assets or liabilities used for tax purposes and those used for financial reporting purposes arise in one period and reverse in one or more subsequent periods. In assessing the realizability of deferred tax assets, management considers known and anticipated factors impacting whether some portion or all of the deferred tax assets will not be realized. To the extent that the realization of deferred tax assets is not considered to be more likely than not, a valuation allowance is provided. (h) Revenue recognition: Revenue from sale of product licenses is recognized when all of the following criteria are met: persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable and collectability is probable. Revenue from product support contracts is recognized ratably over the life of the contract. Revenue from services is recognized at the time such services are rendered. For contracts with multiple elements such as product licenses, product support and services, the Corporation follows the residual method. Under this method, the total fair value of the undelivered elements of the contract, as indicated by vendor specific objective evidence, is deferred and subsequently recognized when all criteria for recognizing revenue have been met. The difference between the total contract fee and the amount deferred for the undelivered elements is recognized as revenue related to the delivered elements. Vendor specific objective evidence for support and consulting services is obtained from contracts where these elements have been sold separately. Where the Corporation cannot determine the fair value of all of the undelivered elements, revenue is deferred until such time as it can be determined, or until all of the elements are delivered. Revenues that have been prepaid but for which all elements have not been delivered, are reflected as deferred revenue on the consolidated balance sheet. (i) Research and development: Costs related to research, design and development of software products are charged to research and development expenses as incurred unless they meet the generally accepted criteria for deferral and amortization. Software development costs incurred prior to the establishment of technological feasibility do not meet these criteria and are expensed as incurred. To date the Corporation has not capitalized any software development costs. (j) Advertising expense: Advertising costs are expensed upon the start of the scheduled advertising. (k) Foreign currency translation: The functional currency for the financial statements of the Corporation is the United States dollar. Exchange gains or losses are realized due to differences in the exchange rate at the transaction date versus the rate in effect at the settlement or balance sheet date. Exchange gains and losses are recorded in the statement of operations. (l) Stock-based compensation: The Corporation accounts for stock-based compensation in accordance with the provisions of ASC Topic 718 “Compensation – stock compensation” (ASC Topic 718). ASC Topic 718 requires all share-based payments, including stock options granted by the Corporation to its employees, to be recognized as expenses, based on the fair value of the share-based payments at the date of grant. For purposes of estimating the grant date fair value of stock-based compensation, the Corporation uses the Black Scholes option-pricing model and has elected to treat awards with graded vesting as a single award. The fair value of awards granted is recognized as compensation expense on a straight-line basis over the requisite service period, which in the Corporation’s circumstances is the stated vesting period of the award. In adopting ASC Topic 718, the Corporation applied the modified-prospective transition method. Under this method, the Corporation has recognized compensation costs for all share-based payments granted, modified, or settled after January 1, 2006, as well as for any awards that were granted prior to January 1, 2006 for which the requisite service had not been provided as of that date (unvested awards). (m) Impairment or disposal of long-lived assets: The Corporation accounts for long-lived assets in accordance with ASC Topic 360-10 “Impairment or disposal of long-lived assets”. This Statement requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. (n) Use of estimates: The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results may differ from those estimates. Significant management estimates include assumptions used in estimating the fair value of convertible notes issued with common stock. (o) Accounting for uncertainty in income taxes: The Corporation does not recognize adjustments in the liability for unrecognized income tax benefits. As of December 31, 2017, the Corporation had approximately $11,950,000 of unrecognized tax benefits, all of which would affect the Corporation’s effective tax rate if recognized.

3. Property and Equipment

3. Property and Equipment	12 Months Ended
	Dec. 31, 2017
Notes
3. Property and Equipment:	3. Property and equipment: 2017 Accumulated Net book Cost depreciation value Computer hardware and software $ 34,590 $ 34,590 $ -- $ 34,590 $ 34,590 $ -- 2016 Accumulated Net book Cost depreciation value Computer hardware and software $ 34,590 $ 34,590 $ -- $ 34,590 $ 34,590 $ --

4. Promissory Notes Payable

4. Promissory Notes Payable	12 Months Ended
	Dec. 31, 2017
Notes
4. Promissory Notes Payable:	4. Promissory notes payable: The following table sets forth the financial statement presentation of the promissory note proceeds on issuance, and the changes in the financial statement presentation of the balance allocated to the notes as at and for the years ended December 31, 2017 and 2016: 2017 2016 Balance at beginning of year $ 112,784 $ 36,250 Note proceeds on issuance 35,000 82,500 Allocated to common stock and additional paid-in capital for the relative fair value of stock issued to holders of the notes: Allocated to common stock par value (75) (750) Allocated to additional paid-in capital (1,506) (21,250) (1,581) (22,000) Proceeds allocated to promissory notes on issuance 33,419 60,500 Accretion recorded as a charge to interest and financing costs 7,547 19,902 Principal repaid (88,000) -- Balance end of period 65,750 116,652 Payable to a related party (note 11) (4,500) -- Deferred finance charges -- (3,868) Balance at end of year $ 61,250 $ 112,784 During the year ended December 31, 2017, the Company issued $35,000 of its promissory notes. The notes are payable on demand, and bear interest at the rate of 12% per annum. The Company issued 75,000 shares of its common stock to the investors at issuance; $1,581, representing the relative fair value of the shares, was charged to common stock and additional paid in capital. During the year ended December 31, 2017, the Company also repaid $88,000 of the promissory notes, and $3,526 in accrued interest charges thereon. The notes outstanding at December 31, 2017 bear interest at the rate of 12% per annum. During the year ended December 31, 2016, the Corporation issued $82,500 of its promissory notes, for cash, and repaid $6,000 in accrued interest on the notes. Under the terms of the notes issued during the year ended December 31, 2016, the Corporation had the option of pre-paying all or any portion of the balance outstanding on the notes at any time, without penalty or bonus, until maturity on January 13, 2017; interest on these notes accrued at the rate of 10% and was due at maturity. These notes, and accrued interest thereon, were repaid in full on January 12, 2017. Holders of the notes issued during the year ended December 31, 2016 were granted 750,000 common shares of the Corporation upon issuance of the notes; $22,000, representing the relative fair value of the common shares at the issuance date, was allocated to the common shares par value and additional paid in capital. The notes are being accreted to their face value, using the interest rate method, over the term of the notes. The Corporation also incurred $7,500 in finance charges relating to the issuance of these notes. The finance charges were deferred and are being recognized as expense over the term of the notes. Promissory notes outstanding at December 31, 2016 included $36,250 which are due on demand and bear interest at 12%; and $82,500 which matured on January 13, 2017 and bore interest at the rate of 10% per annum The promissory notes are unsecured. Included in interest and financing costs for the year ended December 31, 2017 is $6,827 (2016: $7,594) of interest paid and payable to the holders of the promissory notes; $3,679 (2016: $19,902), of accretion charges; and $3,868 (2016: $3,632) of finance fees. Interest on the promissory notes paid in cash during the year ended December 31, 2017 was $3,526 (2016: $6,000).

5. 10% Senior Convertible Notes

5. 10% Senior Convertible Notes	12 Months Ended
	Dec. 31, 2017
Notes
5. 10% Senior Convertible Notes:	5. 10% Senior convertible notes: The following table sets forth the financial statement presentation of the 10% senior convertible note proceeds on issuance, and the changes in the financial statement presentation of the balance allocated to the notes as at and for the years ended December 31, 2017 and 2016: 2017 2016 Balance at beginning of year $ 962,739 $ 6,721,291 Note principal on issuance and subsequent modification 211,235 70,000 Allocated to common stock and additional paid-in capital for market value of stock issued to holders of the notes: Allocated to common stock (10,499) (210) Allocated to additional paid-in capital (57,236) (5,996) (67,735) (6,206) Allocated to additional paid-in capital for the intrinsic value of the beneficial conversion feature -- (11,873) Proceeds allocated to 10% senior convertible notes on issuance 143,500 51,921 Accretion recorded as a charge to interest and financing costs 67,735 18,079 Principal repayments in cash (5,000) (49,794) Principal converted pursuant to the terms of the notes -- (151,500) Principal settled through the issuance of Ser. B conv. preferred stock -- (2,835,025) Principal settled through the issuance of Ser. C conv. Preferred stock -- (2,792,233) Balance at end of year 1,168,974 962,739 Payable to related parties (note 13) -- -- $1,168,974 $ 962,739 During the year ended December 31, 2017, the Company issued $211,235 of its senior convertible notes, and repaid $5,000 in principal. $151,235 of the notes were issued for cash; $60,000 of the notes were issued in settlement of accounts payable and accrued liabilities. Under the terms of the notes issued during the year ended December 31, 2017, the holders are permitted, at any time, to convert all or a portion of the outstanding principal plus accrued interest thereon into common stock of the company, at a rate of one common share for each $0.03 of debt converted. The Corporation has the option of pre-paying all or any portion of the balance outstanding on the notes at any time, without penalty or bonus, with the permission of the holders. Interest on the notes is accrued until the notes are either repaid by the Corporation or converted by the holders. At the Corporation’s option, interest may be paid either in cash or in common shares of the Corporation. If interest is paid in common shares, the number of shares required for settlement will be calculated at the rate of conversion in effect for the conversion of the note principal. The notes matured on December 31, 2017. Holders of the notes issued during the year were granted 10,499,001 common shares of the Company upon issuance and subsequent modification of the notes; $67,735, representing the relative fair value of the common shares at the issuance date, was allocated to the common shares par value and additional paid in capital. Notwithstanding the stated maturity dates, all of the notes issued during the year ended December 31, 2017 are payable on demand, pursuant to the default provisions of the notes, as described below. During the year ended December 31, 2016, the Corporation issued an aggregate of $70,000 of its 10% senior convertible notes and settled an aggregate of $49,794 of these notes. Also during the year ended December 31, 2016, holders of the notes exercised the conversion feature and converted $151,500 in principal, plus $36,922 in accrued interest thereon, into 6,280,729 common shares of the Corporation’s common stock. The Corporation also settled $2,835,025 in principal and $248,850 in accrued interest through the issuance of 3,900 shares of its Series B convertible preferred stock, valued at $3,900,000; $2,792,233 in principal and $170,983 in accrued interest through the issuance of 3,580 shares of its Series C convertible preferred stock, valued at $3,579,966; $792,355 in accrued interest through the issuance of 1,005 shares of its Series A convertible preferred stock, valued at $1,005,000; and $400,000 in accrued interest through an exchange of $400,000 in accounts receivable. An aggregate net loss of $1,645,554 was realized in connection with the settlement of principal and accrued interest. Under the terms of the notes issued during the year ended December 31, 2016, the holders are permitted, at any time, to convert all or a portion of the outstanding principal plus accrued interest thereon into common stock of the company, at a rate of one common share for each $0.03 of debt converted. The Corporation has the option of pre-paying all or any portion of the balance outstanding on the notes at any time, without penalty or bonus, with the permission of the holders. Interest on the notes is accrued until the notes are either repaid by the Corporation or converted by the holders. At the Corporation’s option, interest may be paid either in cash or in common shares of the Corporation. If interest is paid in common shares, the number of shares required for settlement will be calculated at the rate of conversion in effect for the conversion of the note principal. $50,000 of the notes issued during 2016 are payable on demand; $20,000 of the notes matured on December 31, 2016. Notwithstanding the stated maturity dates, all of the notes issued during the year ended December 31, 2016 are payable on demand, pursuant to the default provisions of the notes, as described below. Holders of the notes issued during the year ended December 31, 2016 were granted 210,000 common shares of the Corporation upon issuance of the notes; $6,206, representing the relative fair value of the common shares at the issuance date, was allocated to the common shares par value and additional paid in capital. At the date of issuance, the conversion feature of the notes issued during the year ended December 31, 2016 was in-the-money. $11,873, representing the relative fair value of the beneficial conversion feature, was allocated to additional paid in capital. The Corporation failed to settle certain of its 10% senior convertible notes plus accrued interest thereon when they matured on various dates between October 1, 2008 and December 31, 2017. At December 31, 2017, a significant portion of these notes remained in default for non-payment. As a result of these non-payment defaults, all of the 10% senior convertible notes are in default at December 31, 2017, in accordance with the default provisions of the notes, and consequently are payable on demand. Interest is accrued at the coupon rate on all notes outstanding past the maturity date. The following table summarizes information regarding the 10% senior convertible notes outstanding at December 31, 2017: Note Conversion Principal Rate $ 662,467 $ 0.030 6,506 0.038 500,000 0.100 $ 1,168,974 The maximum number of shares issuable on conversion of all 10% senior convertible notes outstanding at December 31, 2017 was 27,253,434. Interest is payable in stock or in cash, at the discretion of the Corporation, therefore the potential conversion of the interest portion has not been included in our calculated issuance requirement (note 9(a)). All of the 10% senior convertible notes outstanding at December 31, 2017 were unsecured. Included in interest and financing costs for the year ended December 31, 2017 is $105,655 (2016: $368,784) in coupon rate interest accrued on the 10% senior convertible notes; and $67,735 (2016: $18,079) in accretion related to the relative fair value of the equity components of the 10% senior convertible notes at issuance. At December 31, 2017, the fair value of the stock issuable to fully convert the 10% senior convertible note principal, was $245,281, which is $923,693 lower than the principal amount of the notes.

6. Convertible Promissory Notes

6. Convertible Promissory Notes	12 Months Ended
	Dec. 31, 2017
Notes
6. Convertible Promissory Notes:	6. Convertible promissory notes: During the year ended December 31, 2017, the Corporation issued $351,000 of its convertible promissory notes for cash. $30,000 of the notes issued during the year ended December 31, 2017 bear interest at the rate of 8%, mature on October 31, 2018, and may be prepaid during the period from issuance to April 29, 2018, in full, at various rates ranging from 120% to 145% of the principal balance plus accrued interest to the date of prepayment. The holder has the option to convert any balance of principal and interest which is unpaid at April 29, 2018, or thereafter, into common stock of the Company. The rate of conversion for these notes is calculated as the average of the three lowest trading prices during the twenty trading days immediately preceding such conversion, discounted by 45%. $60,000 of the notes issued during the year ended December 31, 2017 bear interest at the rate of 8%, mature on July 17, 2018, and may be prepaid during the period from issuance to January 13, 2018, in full, at various rates ranging from 120% to 145% of the principal balance plus accrued interest to the date of prepayment. The holder has the option to convert any balance of principal and interest which is unpaid at January 13, 2018, or thereafter, into common stock of the Company. The rate of conversion for these notes is calculated as the average of the three lowest trading prices during the twenty trading days immediately preceding such conversion, discounted by 45%. $105,000 of the notes issued during the year ended December 31, 2017 bear interest at the rate of 8%, mature on June 12, 2018, and may be prepaid during the period from issuance to December 8, 2017, in full, at various rates ranging from 125% to 145% of the principal balance plus accrued interest to the date of prepayment. The holder has the option to convert any balance of principal and interest which is unpaid at December 8, 2017, or thereafter, into common stock of the Company. The rate of conversion for these notes is calculated as the lowest trading price during the ten trading days immediately preceding such conversion, including the date of conversion, discounted by 45%. $78,000 of the notes issued during the year ended December 31, 2017 bear interest at the rate of 8%, mature on November 10 2017, and could be prepaid during the period from issuance to August 2, 2017, in full, at various rates ranging from 125% to 145% of the principal balance plus accrued interest to the date of prepayment. The holder had the option to convert any balance of principal and interest which was unpaid at August 2, 2017, or thereafter, into common stock of the Company. The rate of conversion for these notes was calculated as the average of the lowest three trading prices during the ten trading days immediately preceding such conversion, discounted by 42%. $35,000 of the notes issued during the year ended December 31, 2017 bear interest at the rate of 8%, mature on February 12, 2018, and can be prepaid during the period from issuance to August 11, 2017, in full, at various rates ranging from 120% to 145% of the principal balance plus accrued interest to the date of prepayment. The holder has the option to convert any balance of principal and interest which is unpaid at August 11, 2017, or thereafter, into common stock of the Company. The rate of conversion for these notes is calculated as the average of the lowest three trading prices during the twenty trading days immediately preceding such conversion, discounted by 45%. $43,000 of the notes issued during the year ended December 31, 2017 bear interest at the rate of 12%, mature on November 30, 2017, and could be prepaid during the period from issuance to August 16, 2017, in full, at various rates ranging from 125% to 145% of the principal balance plus accrued interest to the date of prepayment. The holder had the option to convert any balance of principal and interest which was unpaid at August 16, 2017, or thereafter, into common stock of the Company. The rate of conversion for these notes was calculated as the average of the lowest three trading prices during the ten trading days immediately preceding such conversion, discounted by 42%. $295,196, representing the relative fair value of the beneficial conversion feature of the notes at date of issuance, was allocated to additional paid in capital; the notes are being accreted to their face value over the term of the notes, through periodic charges to interest expense using the effective interest rate method. $16,000 in finance fees were incurred in relation to the convertible promissory notes issued during 2017 and are being charged to interest and financing costs over the term of the notes, using the effective interest rate method. $18,000 in original issue discounts were incurred in relation to the convertible promissory notes issued during 2017 and are being charged to interest and financing costs over the term of the notes, using the effective interest rate method. During the year ended December 31, 2017, holders of the convertible promissory notes exercised the conversion feature of the notes, and converted $659,687 of note principal, and $28,744 of accrued interest on the notes, into 147,654,844 common shares of the Corporation. Also, during the year ended December 31, 2017, the Corporation exercised the prepayment option and issued aggregate cash payments of $114,864 in settlement of $71,000 in principal amount, plus accrued interest and prepayment bonus thereon of $43,864. During the year ended December 31, 2016, the Corporation issued $973,611 of its convertible promissory notes for cash. The notes bear interest at the rate of 8% until they mature, or until there is an event of default; thereafter, any portion of the principal or interest which has not been settled will be subject to interest at the rate of 22% per annum. $55,000 of the notes issued during the year ended December 31, 2016 had a maturity date of on January 5, 2017 and could be prepaid during the period from issuance to July 3, 2016, in full, at various rates ranging from 125% to 145% of the principal balance plus accrued interest to the date of prepayment. The holder had the option to convert any balance of principal and interest which is unpaid at July 3, 2016, or thereafter, into common stock of the Company. The rate of conversion for these notes was calculated as the average of the lowest three trading prices during the twenty trading days immediately preceding such conversion, discounted by 40%. $50,000 of the notes issued during the year ended December 31, 2016 had a maturity date of November 8, 2016 and could be prepaid during the period from issuance to July 29, 2016, in full, at various rates ranging from 125% to 145% of the principal balance plus accrued interest to the date of prepayment. The holder had the option to convert any balance of principal and interest which was unpaid at July 29, 2016 or thereafter, into common stock of the Company. The rate of conversion for these notes was calculated as the average of the lowest three trading prices during the ten trading days immediately preceding such conversion, discounted by 49%. $40,000 of the notes issued during the year ended December 31, 2016 had a maturity date of February 22, 2017 and could be prepaid during the period from issuance to August 20, 2016, in part or in full, at various rates ranging from 120% to 145% of the principal balance plus accrued interest to the date of prepayment. The holder had the option to convert any balance of principal and interest which is unpaid at any time, into common stock of the Company. The rate of conversion for these notes was calculated as the average of the lowest three trading prices during the twenty trading days immediately preceding such conversion, discounted by 45%. $111,111 of the notes issued during the year ended December 31, 2016 had a maturity date of March 2, 2018. The holder had the option to convert any balance of principal and interest which was unpaid at August 29, 2016 or thereafter, into common stock of the Company. The rate of conversion for these notes was calculated as the average of the lowest two trading prices during the twenty-five trading days immediately preceding such conversion, discounted by 40%. $100,000 of the notes issued during the year ended December 31, 2016 had a maturity date of December 15, 2016 and could be prepaid during the period from issuance to September 11, 2016, in full, at various rates ranging from 135% to 150% of the principal balance plus accrued interest to the date of prepayment. The holder had the option to convert any balance of principal and interest which was unpaid at September 11, 2016 or thereafter, into common stock of the Company. The rate of conversion for these notes was calculated as the average of the lowest three trading prices during the twenty trading days immediately preceding such conversion, discounted by 45%. $30,000 of the notes issued during the year ended December 31, 2016 had a maturity date of May 9, 2017 and could be prepaid during the period from issuance to November 5, 2016, in full, at various rates ranging from 125% to 145% of the principal balance plus accrued interest to the date of prepayment. The holder had the option to convert any balance of principal and interest which is unpaid at November 5, 2016, or thereafter, into common stock of the Company. The rate of conversion for these notes was calculated as the average of the lowest three trading prices during the twenty trading days immediately preceding such conversion, discounted by 45%. $262,500 of the notes issued during the year ended December 31, 2016 matured on August 24, 2017 and could be prepaid during the period from issuance to February 24, 2017, in full, at various rates ranging from 125% to 145% of the principal balance plus accrued interest to the date of prepayment. The holder has the option to convert any balance of principal and interest which is unpaid at February 24, 2017, or thereafter, into common stock of the Company. The rate of conversion for these notes is calculated as 55% of the lowest closing bid price of the common stock during the ten prior trading days including the day upon which the conversion request is executed. $100,000 of the notes issued during the year ended December 31, 2016 matured on May 31, 2017 and could be prepaid during the period from issuance to February 27, 2017, in full, at various rates ranging from 140% to 150% of the principal balance plus accrued interest to the date of prepayment. The holder had the option to convert any balance of principal and interest which was unpaid at February 27, 2017, or thereafter, into common stock of the Company. The rate of conversion for these notes was calculated as the average of the lowest three trading prices during the twenty trading days immediately preceding such conversion, discounted by 45%. $60,000 of the notes issued during the year ended December 31, 2016 matured on November 30, 2017 and could be prepaid during the period from issuance to May 28, 2017, in part or in full, at various rates ranging from 120% to 150% of the principal balance plus accrued interest to the date of prepayment. The holder had the option to convert any balance of principal and interest which was unpaid at May 28, 2017, or thereafter, into common stock of the Company. The rate of conversion for these notes was calculated as the average of the lowest three trading prices during the twenty trading days immediately preceding such conversion, discounted by 45%. $165,000 of the notes issued during the year ended December 31, 2016 matured on December 29, 2017 and could be prepaid during the period from issuance to May 26, 2017, in full, at various rates ranging from 120% to 150% of the principal balance plus accrued interest to the date of prepayment. The holder has the option to convert any balance of principal and interest which was unpaid at May 26, 2017, or thereafter, into common stock of the Company. The rate of conversion for these notes is calculated as the average of the lowest three trading prices during the twenty trading days immediately preceding such conversion, discounted by 40%. $858,278, representing the relative fair value of the beneficial conversion feature of the notes at date of issuance, was allocated to additional paid in capital; the notes are being accreted to their face value over the term of the notes, through periodic charges to interest expense using the effective interest rate method. $22,250 in finance fees were incurred in relation to the convertible promissory notes issued during 2016 and are being charged to interest and financing costs over the term of the notes, using the effective interest rate method. $57,611 in original issue discounts were incurred in relation to the convertible promissory notes issued during 2016 and are being charged to interest and financing costs over the term of the notes, using the effective interest rate method. During the year ended December 31, 2016, holders of the convertible promissory notes exercised the conversion feature of the notes, and converted $315,500 of note principal, and $13,142 of accrued interest on the notes, into 23,962,703 common shares of the Corporation. Also, during the year ended December 31, 2016, the Corporation exercised the prepayment option and issued aggregate cash payments of $477,335 in settlement of $316,111 in principal amount, plus accrued interest and prepayment bonus thereon of $161,224. The discount to market conversion feature of the convertible promissory notes causes a theoretical possibility that the Corporation may be required to settle the notes by issuing more shares than are authorized. Management has calculated that the maximum number of shares required to convert the principal plus accrued interest on the convertible notes at December 31, 2017 was 77,411,942, which represents approximately 77.8% of the authorized, unissued shares at that date, and has also estimated that the fair value of the notes at December 31, 2017 approximates face value, therefore no adjustment for fair value restatement has been made. At December 31, 2017, the fair value of the stock issuable to fully convert the convertible promissory note principal was $656,155, which exceeds the principal amount by $448,343.

7. Stockholders' Deficiency

7. Stockholders' Deficiency	12 Months Ended
	Dec. 31, 2017
Notes
7. Stockholders' Deficiency:	7. Stockholders’ deficiency: (a) Common stock transactions: In connection with the issuance of the Company’s 10% senior convertible notes during year ended December 31, 2017, the Company issued 10,499,001 shares of its common stock, with a relative fair value of $67,735, to the holders of the notes. (note 5). During the year ended December 31, 2017, holders of the convertible promissory notes exercised the conversion feature of the notes and converted an aggregate of $659,687 of note principal, plus $28,744 of accrued interest thereon, into 147,654,844 shares of the Company’s common stock. (note 6). In connection with the issuance of the Company’s promissory notes during the year ended December 31, 2017, the Company issued 75,000 shares of its common stock, with a relative fair value of $1,581, to the holders of the notes. (note 4). In connection with the issuance of the Corporation’s 10% senior convertible notes during the year ended December 31, 2016, the Corporation issued an aggregate of 210,000 shares of its common stock, with a relative fair value of $6,206, to the holders of the notes (note 5). During the year ended December 31, 2016, the Corporation issued an aggregate of 9,100,000 shares of its common stock to consultants as partial consideration for services rendered and to be rendered. $283,330, representing the fair value of the stock at issuance, was allocated to shares and to additional paid in capital. $54,480, representing the value of services not yet rendered as at December 31, 2016, was charged to prepaid expense; $228,850 was charged to expense. On various dates during the year ended December 31, 2016, holders of the 10% senior convertible notes exercised the conversion feature of the notes and converted an aggregate of $151,500 in principal and $36,922 in accrued interest, in exchange for 6,280,729 common shares of the Corporation (note 5). During the year ended December 31, 2016, holders of the convertible promissory notes exercised the conversion feature of the notes and converted an aggregate of $315,500 in principal and $13,142 in accrued interest, in exchange for 23,962,703 shares of the Corporation’s common stock. (note 6). On various dates during the year ended December 31, 2016, the Corporation issued an aggregate of 200,000 shares of its common stock, valued at $5,740, in settlement of $6,000 in accounts payable. A net gain of $260 has been recognized in connection with this transaction. In connection with the issuance of the Corporation’s promissory notes on August 10, 2016, the Corporation issued 750,000 shares of its common stock, with a relative fair value of $22,000, to the holders of the notes (note 4). During the year ended December 31, 2016, holders of the Corporation’s Series C convertible preferred shares exercised the conversion feature of the shares and converted an aggregate of 429 Series C convertible preferred shares, in exchange for 14,300,000 shares of the Corporation’s common stock. (b) Preferred stock transactions: Series A Convertible Preferred Stock, par value $0.001 per share, stated value $1,000 per share. Convertible at any time by the shareholder into common stock of the Corporation, at $0.10 per common share. 10,000 shares authorized. Series B Convertible Preferred Stock, par value $0.001 per share, stated value $1,000 per share. Convertible at any time by the shareholder into common stock of the Corporation, at the rate of $0.03 per common share. 5,000 shares authorized. Series C Convertible Preferred Stock, par value $0.001 per share, stated value $1,000 per share. Convertible at any time by the shareholder into common stock of the Corporation, at the rate of $0.03 per common share. 5,000 shares authorized. During the year ended December 31, 2017, the Corporation issued 78 of its Series C Convertible Preferred Stock in settlement of $78,000 of accounts payable and accrued liabilities. During the year ended December 31, 2017, the Corporation issued 180 of its Series C Convertible Preferred Stock in settlement of $40,200 of consulting fees rendered. On June 2, 2016, the Corporation issued 3,900 shares of its Series B Convertible Preferred stock, valued at $3,900,000, to holders of its 10% senior convertible notes in settlement of $2,835,025 in principal and $248,850 of accrued interest; a loss of $816,125 has been recognized in connection with this transaction. On various dates during the year ended December 31, 2016, the Corporation issued an aggregate of 3,580 shares of its Series C Convertible Preferred stock, valued at $3,580,000, to holders of its 10% senior convertible notes in settlement of $2,792,233 in principal and 170,983 of accrued interest; an aggregate net loss of $616,784 has been recognized in connection with these transactions. During the year ended December 31, 2016, holders of the Corporation’s Series C convertible preferred shares exercised the conversion feature of the shares and converted an aggregate of 429 Series C convertible preferred shares, in exchange for 14,300,000 shares of the Corporation’s common stock. During the year ended December 31, 2016, $170,950, representing the effective discount implicit on issuance of 1,255 of the Series C convertible preferred shares, was recognized in relation to the fair value of the beneficial conversion feature of the shares at the date of issuance. On May 31, 2016, the Corporation’s board of directors created three new classes of preferred stock: On June 2, 2016, the Corporation issued 1,225 shares of its Series A Convertible Preferred stock for cash proceeds of $1,225,000. Also, on June 2, 2016, the Corporation issued 1,005 shares of its Series A Convertible Preferred stock, valued at $1,005,000, to holders of its 10% senior convertible notes in settlement of $792,355 of accrued interest; a loss of $212,645 has been recognized in connection with this transaction. (c) Transactions involving stock options: The Corporation has two incentive equity plans, under which a maximum of 10,000,000 options to purchase 10,000,000 common shares may be granted to officers, employees and consultants of the Corporation. The granting of options, and the terms associated with them, occurs at the discretion of the board of directors, who administers the plan. The fair value of unvested options is determined at the date of grant and are included in expense over the vesting period. As of December 31, 2017, a total of 7,500,000 options were granted under these plans, all with an exercise price of $0.04. The options expire on dates between May 12, 2020 and November 20, 2020 and are fully vested. 2,500,000 options remained available for grant under these plans as of December 31, 2017. There were no transactions involving stock options during the years ended December 31, 2016 and December 31, 2017. (d) Summary of stock-based compensation: The following table presents the total of stock-based compensation included in the expenses of the Corporation for the years ended December 31, 2017 and 2016: 2017 2016 Selling, general and administrative $ 71,771 $ 466,554 Research and development -- -- Total stock-based compensation included in expenses $ 71,771 $ 466,554

8. Interest and Financing Costs

8. Interest and Financing Costs	12 Months Ended
	Dec. 31, 2017
Notes
8. Interest and Financing Costs:	8. Interest and financing costs: Interest and financing costs include accrued interest, accretion and amortization of deferred financing costs and original issue discount relating to the convertible promissory notes; accrued interest, accretion and amortization of deferred financing costs on the promissory notes; and accrued interest and accretion on the 10% senior convertible notes.

9. Loss On Extinguishment of De

9. Loss On Extinguishment of Debt and Accrued Liabilities	12 Months Ended
	Dec. 31, 2017
Notes
9. Loss On Extinguishment of Debt and Accrued Liabilities:	9. Loss on extinguishment of debt and accrued liabilities: During the year ended December 31, 2017, the Corporation did not incur a loss on extinguishment of debt and accrued liabilities. On various dates during the year ended December 31, 2016, the Corporation issued an aggregate of 200,000 shares of its common stock, valued at $5,740, in settlement of $6,000 in accounts payable. A net gain of $260 has been recognized in connection with this transaction. On June 2, 2016, the Corporation issued 1,005 shares of its Series A Convertible Preferred stock, valued at $1,005,000, to holders of its 10% senior convertible notes in settlement of $792,355 of accrued interest; a loss of $212,645 has been recognized in connection with this transaction. Also, on June 2, 2016, the Corporation issued 3,900 shares of its Series B Convertible Preferred stock, valued at $3,900,000, to holders of its 10% senior convertible notes in settlement of $2,835,025 in principal and $248,850 of accrued interest; a loss of $816,125 has been recognized in connection with this transaction. On various dates during the year ended December 31, 2016, the Corporation issued an aggregate of 3,580 shares of its Series C Convertible Preferred stock, valued at $3,580,000, to holders of its 10% senior convertible notes in settlement of $2,792,233 in principal and $170,983 of accrued interest; an aggregate net loss of $616,784 has been recognized in connection with these transactions.

10. Loss Per Share

10. Loss Per Share	12 Months Ended
	Dec. 31, 2017
Notes
10. Loss Per Share:	10. Loss per share: As the Corporation incurred a net loss during the years ended December 31, 2017 and 2016, the loss and diluted loss per common share are based on the weighted-average common shares outstanding during the year. The following outstanding instruments could have a dilutive effect in the future: 2017 2016 Stock issuable on conversion of the 10% senior convertible notes 27,253,434 20,343,846 Stock issuable on conversion of the convertible promissory notes and accrued interest thereon 77,411,942 34,618,076 Common shares issuable on conversion of the Series A convertible preferred stock 22,300,000 22,300,000 Common shares issuable on conversion of the Series B convertible preferred stock 130,000,000 130,000,000 Common shares issuable on conversion of the Series C convertible preferred stock 113,633,333 105,033,333 Stock issuable on exercise of the stock options 7,500,000 7,500,000 378,098,709 319,795,255

11. Related Party Transactions

11. Related Party Transactions	12 Months Ended
	Dec. 31, 2017
Notes
11. Related Party Transactions:	11. Related party transactions: $4,052 of accounts payable related to credit card expenses paid on behalf of the corporate shareholder. $4,187 (2016: $4,001) in accrued interest charges relating to the 10% senior convertible notes and 12% promissory notes previously issued to a director and a company controlled by a director is included in accrued liabilities at December 31, 2017. $nil (2016: $24,007) in coupon-rate interest on these notes is included in interest and finance costs. $nil (2016: $8,452) and $nil (2016: $65,767) was paid to a director in settlement of note principal, and accrued interest, respectively. An officer and director of a company who holds $4,500 (December 31, 2016: $nil) of the promissory notes is also an officer and director of the Company.

12. Guarantees and Commitments

12. Guarantees and Commitments	12 Months Ended
	Dec. 31, 2017
Notes
12. Guarantees and Commitments:	12. Guarantees and Commitments: a) Guarantees The Corporation has entered into agreements which contain features which meet the definition of a guarantee under ASC Topic 460 “Guarantees” (Topic 460). Topic 460 defines a guarantee to be a contract that contingently requires the Corporation to make payments (either in cash, financial instruments, other assets, common stock of the Corporation or through the provision of services) to a third party based on changes in an underlying economic characteristic (such as interest rates or market value) that is related to an asset, liability or an equity security of the other party. The Corporation has the following guarantees which are subject to the disclosure and measurement requirements of Topic 460: The Corporation includes standard intellectual property indemnification clauses in its software license and service agreements. Pursuant to these clauses, the Corporation holds harmless and agrees to defend the indemnified party, generally the Corporation’s business partners and customers, in connection with certain patent, copyright or trade secret infringement claims by third parties with respect to the Corporation’s products. The term of the indemnification clauses is generally perpetual from the date of execution of the software license and service agreement. In the event an infringement claim against the Corporation or an indemnified party is successful, the Corporation, at its sole option, agrees that it will do one of the following: (i) procure for the indemnified party the right to continue use of the software; (ii) provide a modification to the software so that its use becomes non-infringing; (iii) replace the software with software which is substantially similar in functionality and performance; or (iv) refund the residual value of the software license fees paid by the indemnified party for the infringing software. The Corporation believes the estimated fair value of these intellectual property indemnification clauses is minimal. Historically, the Corporation has not made any significant payments related to the above-noted indemnities and accordingly, no liability related to the contingent features of these guarantees has been accrued in the financial statements.

13. Fair Value Measurements

13. Fair Value Measurements	12 Months Ended
	Dec. 31, 2017
Notes
13. Fair Value Measurements:	13. Fair value measurements: The carrying value of cash and cash equivalents, value added taxes recoverable, accounts payable and accrued liabilities approximates fair value due to the short term to maturity of these instruments. The carrying value of the promissory notes, 10% senior convertible notes and convertible promissory notes, approximates fair value due to the issuance subsequent to December 31, 2017 of new debt instruments having similar terms and conditions.

14. Income Taxes

14. Income Taxes	12 Months Ended
	Dec. 31, 2017
Notes
14. Income Taxes:	14. Income taxes: Deferred income taxes reflect the impact of temporary differences between amounts of assets and liabilities as reported for financial reporting purposes and such amounts as measured by tax laws. The tax effects of temporary differences that gave rise to significant portions of the deferred tax asset and deferred tax liability are as follows: 2017 2016 Deferred tax asset: Net operating loss carryforwards $ 10,900,000 $ 10,490,000 Capital loss carryforwards 1,050,000 1,050,000 Total gross deferred tax asset 11,950,000 11,540,000 Valuation allowance (11,950,000) (11,540,000) Net deferred taxes $ -- $ -- Income tax expense attributable to loss before income taxes was $nil (2016 - $nil) and differed from the amounts computed by applying the U.S. federal income tax rate of 34% (2016 - 34%) to the net loss as a result of the following: 2017 2016 Expected tax rate 34% 34% Expected tax recovery applied to net loss before income taxes $ (714,000) $ (1,449,000) Increase (decrease) in taxes resulting from: Change in valuation allowance 403,000 510,000 Compensation expense 24,000 159,000 Interest and financing costs 243,000 204,000 Other 44,000 (576,000) $ 0 $ 0 The Corporation has net operating losses of $32,200,000 which are available to reduce U.S. taxable income and which expire as follows: 2019 $ 391,000 2020 675,000 2021 521,000 2022 897,000 2023 1,671,000 2024 4,205,000 2025 3,381,000 2026 3,088,000 2027 2,623,000 2028 2,401,000 2029 1,299,000 2030 1,258,000 2031 1,298,000 2032 1,229,000 2033 1,475,000 2034 1,404,000 2035 1,704,000 2036 1,496,000 2037 1,184,000 $ 32,200,000 The losses noted above are estimates, as the related tax returns have not been filed by the Corporation.

16. Supplementary Cash Flow Inf

16. Supplementary Cash Flow Information	12 Months Ended
	Dec. 31, 2017
Notes
16. Supplementary Cash Flow Information:	16. Supplementary cash flow information: The Corporation paid no income taxes during the year ended December 31, 2017, nor during the year ended December 31, 2016. Interest paid in cash during the years ended December 31, 2017 and December 31, 2016 were $47,390 and $540,425, respectively. Non-cash financing activities are excluded from the consolidated statement of cash flows. The following is a summary of such activities: 2017 2016 Issuance of the Corporation’s common stock as partial consideration for services rendered $ -- $ 283,330 Issuance of the Corporation’s common stock in settlement of 10% senior convertible notes and accrued interest, on the holders’ exercise of the conversion feature -- 188,422 Issuance of the Corporation’s common stock in settlement of convertible promissory notes, and accrued interest thereon 688,431 328,642 Issuance of the Corporation’s common stock in settlement of accounts payable and accrued liabilities -- 6,000 Issuance of the Corporation’s Series A convertible preferred shares in settlement of accrued interest on the 10% senior convertible notes -- 792,355 Issuance of the Corporation’s Series B convertible preferred shares in settlement of principal and accrued interest on the 10% senior convertible notes -- 3,083,875 Issuance of the Corporation’s Series C convertible preferred shares in settlement of principal and accrued interest on the 10% senior convertible notes -- 2,963,216 Issuance of the Corporation’s Series C convertible preferred shares in settlement of accounts payable, accrued liabilities and consulting fees 118,200 Accounts receivable settled with offset of accrued interest on the 10% senior convertible notes -- 400,000 Issuance of the Corporation’s 10% senior convertible notes in settlement of accounts payable and accrued liabilities 60,000 -- Issuance of the Corporation’s promissory notes in settlement of accounts payable and accrued liabilities 4,000 -- Total $ 870,631 $ 8,045,840

17. Subsequent Events

17. Subsequent Events	12 Months Ended
	Dec. 31, 2017
Notes
17. Subsequent Events:	17. Subsequent events: On January 25, 2018, a holder of the convertible promissory notes exercised the conversion feature of the notes and converted $10,200 of note principal into 4,500,000 shares of the Company’s common stock. On February 8, 2018, a holder of the convertible promissory notes exercised the conversion feature of the notes, and converted $23,650 of note principal, plus $4,321.68 of accrued interest thereon, into 7,824,245 shares of the Company’s common stock. On February 12, 2018, a holder of the convertible promissory notes exercised the conversion feature of the notes, and converted $15,040 of note principal into 6,400,000 shares of the Company’s common stock. On February 15, 2018, the Company issued $6,000 of its promissory notes for cash. The notes are payable on demand, and bear interest at the rate of 12% per annum. On March 5, 2018, the Company issued $15,000 of its promissory notes for cash. The notes are payable on demand, and bear interest at the rate of 12% per annum. On March 9, 2018, a holder of the convertible promissory notes exercised the conversion feature of the notes, and converted $15,007.50 of note principal into 6,210,000 shares of the Company’s common stock. On March 13, 2018, the Company issued $12,500 of its promissory notes for cash. The notes are payable on demand, and bear interest at the rate of 12% per annum. On March 27, 2018, a holder of the convertible promissory notes exercised the conversion feature of the notes, and converted $25,000 of note principal, plus $1,594.44 of accrued interest thereon, into 9,123,307 shares of the Company’s common stock. During Q1 2018, the Company entered into legal proceedings with a provider of services regarding the amount of the balance owed by the Company for services rendered by the provider of services to the Company during 2017. Except for the foregoing, we have evaluated subsequent events through the date the financial statements were issued. All material events have been disclosed.

2. Summary of Significant Acc23

2. Summary of Significant Accounting Policies: (a) Future operations (Policies)	12 Months Ended
	Dec. 31, 2017
Policies
(a) Future operations:	(a) Future operations: The consolidated financial statements have been prepared assuming that the Corporation will continue as a going concern. The Corporation has had limited revenues to date, has negative working capital of $4,641,061, has accumulated a deficit of $54,759,828 as at December 31, 2017, and has incurred a loss of $2,099,412 and negative cash flow from operations of $527,102 for the year then ended. Furthermore, the Corporation failed to settle certain of its promissory notes and 10% senior convertible notes when they matured on various dates during the years 2007 through 2017, resulting in a condition of default for all of the 10% senior convertible notes and the promissory notes; a significant portion of these notes remain in default as at December 31, 2017. In addition, the Corporation expects to continue to incur operating losses for the foreseeable future and has no lines of credit or other financing facilities in place. If the Corporation obtains further financing and generates revenue, it expects to incur operating expenditures of approximately $1,472,000 for the year ending December 31, 2018. In the event the Corporation cannot raise the funds necessary to finance its research and development and sales and marketing activities, it may have to cease operations. All of the factors above raise substantial doubt about the Corporation’s ability to continue as a going concern. Management’s plans to address these issues include raising capital through the private placement of equity, the exercise of previously-issued equity instruments and through the issuance of additional promissory notes and convertible notes. The Corporation’s ability to continue as a going concern is subject to management’s ability to successfully implement these plans. Failure to do so could have a material adverse effect on the Corporation’s position and or results of operations and could also result in the Corporation’s ceasing operations. The consolidated financial statements do not include adjustments that would be required if the assets are not realized and the liabilities settled in the normal course of operations. Even if successful in obtaining financing in the near term, the Corporation cannot be certain that cash generated from its future operations will be sufficient to satisfy its liquidity requirements in the longer term, and it may need to continue to raise capital by issuing additional equity or by obtaining credit facilities. The Corporation’s future capital requirements will depend on many factors, including, but not limited to, the market acceptance of its products and the level of its promotional activities and advertising required to generate product sales. No assurance can be given that any such additional funding will be available or that, if available, it can be obtained on terms favorable to the Corporation.

2. Summary of Significant Acc24

2. Summary of Significant Accounting Policies: (b) Principles of Consolidation (Policies)	12 Months Ended
	Dec. 31, 2017
Policies
(b) Principles of Consolidation:	(b) Principles of consolidation: These consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America and include the accounts of Validian Corporation and its wholly-owned subsidiaries, Sochrys Technologies Inc. and Evolusys S.A. All intercompany balances and transactions have been eliminated.

2. Summary of Significant Acc25

2. Summary of Significant Accounting Policies: (c) Cash and Cash Equivalents (Policies)	12 Months Ended
	Dec. 31, 2017
Policies
(c) Cash and Cash Equivalents:	(c) Cash and cash equivalents: Cash and cash equivalents include liquid investments with original maturity dates of three months or less.

2. Summary of Significant Acc26

2. Summary of Significant Accounting Policies: (d) Property and Equipment (Policies)	12 Months Ended
	Dec. 31, 2017
Policies
(d) Property and Equipment:	(d) Property and equipment: Property and equipment is stated at cost less accumulated depreciation and includes computer hardware and software. These assets are being depreciated on a straight-line basis over their estimated useful lives, as follows: computer hardware: 2 years; computer software: 1 year.

2. Summary of Significant Acc27

2. Summary of Significant Accounting Policies: (e) Leases (Policies)	12 Months Ended
	Dec. 31, 2017
Policies
(e) Leases:	(e) Leases: Leases are classified as either capital or operating in nature. Capital leases are those which substantially transfer the benefits and risk of ownership to the Corporation. Assets acquired under capital leases are depreciated as described in note 1(d). Obligations recorded under capital leases are reduced by the principal portion of lease payments. The imputed interest portion of lease payments is charged to expense.

2. Summary of Significant Acc28

2. Summary of Significant Accounting Policies: (f) Prepaid Expenses (Policies)	12 Months Ended
	Dec. 31, 2017
Policies
(f) Prepaid Expenses:	(f) Prepaid expenses: Prepaid consulting fees related to services to be rendered within twelve months from the balance sheet date are included in prepaid expenses. These costs are charged to expenses as the services are rendered. If for any reason circumstances arise which would indicate that the services will not be performed in the future, any remaining balance included in prepaid expenses will be charged to expense immediately.

2. Summary of Significant Acc29

2. Summary of Significant Accounting Policies: (g) Income Taxes (Policies)	12 Months Ended
	Dec. 31, 2017
Policies
(g) Income Taxes:	(g) Income taxes: Deferred income taxes are determined using the asset and liability method, whereby deferred income tax is recognized based on temporary differences using enacted tax rates that are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Temporary differences between the carrying values of assets or liabilities used for tax purposes and those used for financial reporting purposes arise in one period and reverse in one or more subsequent periods. In assessing the realizability of deferred tax assets, management considers known and anticipated factors impacting whether some portion or all of the deferred tax assets will not be realized. To the extent that the realization of deferred tax assets is not considered to be more likely than not, a valuation allowance is provided.

2. Summary of Significant Acc30

2. Summary of Significant Accounting Policies: (h) Revenue Recognition (Policies)	12 Months Ended
	Dec. 31, 2017
Policies
(h) Revenue Recognition:	(h) Revenue recognition: Revenue from sale of product licenses is recognized when all of the following criteria are met: persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable and collectability is probable. Revenue from product support contracts is recognized ratably over the life of the contract. Revenue from services is recognized at the time such services are rendered. For contracts with multiple elements such as product licenses, product support and services, the Corporation follows the residual method. Under this method, the total fair value of the undelivered elements of the contract, as indicated by vendor specific objective evidence, is deferred and subsequently recognized when all criteria for recognizing revenue have been met. The difference between the total contract fee and the amount deferred for the undelivered elements is recognized as revenue related to the delivered elements. Vendor specific objective evidence for support and consulting services is obtained from contracts where these elements have been sold separately. Where the Corporation cannot determine the fair value of all of the undelivered elements, revenue is deferred until such time as it can be determined, or until all of the elements are delivered. Revenues that have been prepaid but for which all elements have not been delivered, are reflected as deferred revenue on the consolidated balance sheet.

2. Summary of Significant Acc31

2. Summary of Significant Accounting Policies: (i) Research and Development (Policies)	12 Months Ended
	Dec. 31, 2017
Policies
(i) Research and Development:	(i) Research and development: Costs related to research, design and development of software products are charged to research and development expenses as incurred unless they meet the generally accepted criteria for deferral and amortization. Software development costs incurred prior to the establishment of technological feasibility do not meet these criteria and are expensed as incurred. To date the Corporation has not capitalized any software development costs.

2. Summary of Significant Acc32

2. Summary of Significant Accounting Policies: (j) Advertising Expense (Policies)	12 Months Ended
	Dec. 31, 2017
Policies
(j) Advertising Expense:	(j) Advertising expense: Advertising costs are expensed upon the start of the scheduled advertising.

2. Summary of Significant Acc33

2. Summary of Significant Accounting Policies: (k) Foreign Currency Translation (Policies)	12 Months Ended
	Dec. 31, 2017
Policies
(k) Foreign Currency Translation:	(k) Foreign currency translation: The functional currency for the financial statements of the Corporation is the United States dollar. Exchange gains or losses are realized due to differences in the exchange rate at the transaction date versus the rate in effect at the settlement or balance sheet date. Exchange gains and losses are recorded in the statement of operations.

2. Summary of Significant Acc34

2. Summary of Significant Accounting Policies: (l) Stock-based Compensation (Policies)	12 Months Ended
	Dec. 31, 2017
Policies
(l) Stock-based Compensation:	(l) Stock-based compensation: The Corporation accounts for stock-based compensation in accordance with the provisions of ASC Topic 718 “Compensation – stock compensation” (ASC Topic 718). ASC Topic 718 requires all share-based payments, including stock options granted by the Corporation to its employees, to be recognized as expenses, based on the fair value of the share-based payments at the date of grant. For purposes of estimating the grant date fair value of stock-based compensation, the Corporation uses the Black Scholes option-pricing model and has elected to treat awards with graded vesting as a single award. The fair value of awards granted is recognized as compensation expense on a straight-line basis over the requisite service period, which in the Corporation’s circumstances is the stated vesting period of the award. In adopting ASC Topic 718, the Corporation applied the modified-prospective transition method. Under this method, the Corporation has recognized compensation costs for all share-based payments granted, modified, or settled after January 1, 2006, as well as for any awards that were granted prior to January 1, 2006 for which the requisite service had not been provided as of that date (unvested awards).

2. Summary of Significant Acc35

2. Summary of Significant Accounting Policies: (m) Impairment Or Disposal of Long-lived Assets (Policies)	12 Months Ended
	Dec. 31, 2017
Policies
(m) Impairment Or Disposal of Long-lived Assets:	(m) Impairment or disposal of long-lived assets: The Corporation accounts for long-lived assets in accordance with ASC Topic 360-10 “Impairment or disposal of long-lived assets”. This Statement requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell.

2. Summary of Significant Acc36

2. Summary of Significant Accounting Policies: (n) Use of Estimates (Policies)	12 Months Ended
	Dec. 31, 2017
Policies
(n) Use of Estimates:	(n) Use of estimates: The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results may differ from those estimates. Significant management estimates include assumptions used in estimating the fair value of convertible notes issued with common stock.

2. Summary of Significant Acc37

2. Summary of Significant Accounting Policies: (o) Accounting For Uncertainty in Income Taxes (Policies)	12 Months Ended
	Dec. 31, 2017
Policies
(o) Accounting For Uncertainty in Income Taxes:	(o) Accounting for uncertainty in income taxes: The Corporation does not recognize adjustments in the liability for unrecognized income tax benefits. As of December 31, 2017, the Corporation had approximately $11,950,000 of unrecognized tax benefits, all of which would affect the Corporation’s effective tax rate if recognized.

3. Property and Equipment_ Prop

3. Property and Equipment: Property, Plant and Equipment (Tables)	12 Months Ended
	Dec. 31, 2017
Tables/Schedules
Property, Plant and Equipment	2017 Accumulated Net book Cost depreciation value Computer hardware and software $ 34,590 $ 34,590 $ -- $ 34,590 $ 34,590 $ -- 2016 Accumulated Net book Cost depreciation value Computer hardware and software $ 34,590 $ 34,590 $ -- $ 34,590 $ 34,590 $ --

4. Promissory Notes Payable_ Sc

4. Promissory Notes Payable: Schedule of promissory notes and changes in financial statement presentation (Tables)	12 Months Ended
	Dec. 31, 2017
Tables/Schedules
Schedule of promissory notes and changes in financial statement presentation	2017 2016 Balance at beginning of year $ 112,784 $ 36,250 Note proceeds on issuance 35,000 82,500 Allocated to common stock and additional paid-in capital for the relative fair value of stock issued to holders of the notes: Allocated to common stock par value (75) (750) Allocated to additional paid-in capital (1,506) (21,250) (1,581) (22,000) Proceeds allocated to promissory notes on issuance 33,419 60,500 Accretion recorded as a charge to interest and financing costs 7,547 19,902 Principal repaid (88,000) -- Balance end of period 65,750 116,652 Payable to a related party (note 11) (4,500) -- Deferred finance charges -- (3,868) Balance at end of year $ 61,250 $ 112,784

5. 10% Senior Convertible Not40

5. 10% Senior Convertible Notes: Schedule of senior convertible notes and changes in financial statement presentation (Tables)	12 Months Ended
	Dec. 31, 2017
Tables/Schedules
Schedule of senior convertible notes and changes in financial statement presentation	2017 2016 Balance at beginning of year $ 962,739 $ 6,721,291 Note principal on issuance and subsequent modification 211,235 70,000 Allocated to common stock and additional paid-in capital for market value of stock issued to holders of the notes: Allocated to common stock (10,499) (210) Allocated to additional paid-in capital (57,236) (5,996) (67,735) (6,206) Allocated to additional paid-in capital for the intrinsic value of the beneficial conversion feature -- (11,873) Proceeds allocated to 10% senior convertible notes on issuance 143,500 51,921 Accretion recorded as a charge to interest and financing costs 67,735 18,079 Principal repayments in cash (5,000) (49,794) Principal converted pursuant to the terms of the notes -- (151,500) Principal settled through the issuance of Ser. B conv. preferred stock -- (2,835,025) Principal settled through the issuance of Ser. C conv. Preferred stock -- (2,792,233) Balance at end of year 1,168,974 962,739 Payable to related parties (note 13) -- -- $1,168,974 $ 962,739

5. 10% Senior Convertible Not41

5. 10% Senior Convertible Notes: Summary of ten percent senior convertible notes (Tables)	12 Months Ended
	Dec. 31, 2017
Tables/Schedules
Summary of ten percent senior convertible notes	Note Conversion Principal Rate $ 662,467 $ 0.030 6,506 0.038 500,000 0.100 $ 1,168,974

7. Stockholders' Deficiency_ Sc

7. Stockholders' Deficiency: Schedule of Share-based Compensation, Stock Options, Activity (Tables)	12 Months Ended
	Dec. 31, 2017
Tables/Schedules
Schedule of Share-based Compensation, Stock Options, Activity	2017 2016 Selling, general and administrative $ 71,771 $ 466,554 Research and development -- -- Total stock-based compensation included in expenses $ 71,771 $ 466,554

10. Loss Per Share_ Schedule of

10. Loss Per Share: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Tables)	12 Months Ended
	Dec. 31, 2017
Tables/Schedules
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	2017 2016 Stock issuable on conversion of the 10% senior convertible notes 27,253,434 20,343,846 Stock issuable on conversion of the convertible promissory notes and accrued interest thereon 77,411,942 34,618,076 Common shares issuable on conversion of the Series A convertible preferred stock 22,300,000 22,300,000 Common shares issuable on conversion of the Series B convertible preferred stock 130,000,000 130,000,000 Common shares issuable on conversion of the Series C convertible preferred stock 113,633,333 105,033,333 Stock issuable on exercise of the stock options 7,500,000 7,500,000 378,098,709 319,795,255

14. Income Taxes_ Schedule of D

14. Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables)	12 Months Ended
	Dec. 31, 2017
Tables/Schedules
Schedule of Deferred Tax Assets and Liabilities	2017 2016 Deferred tax asset: Net operating loss carryforwards $ 10,900,000 $ 10,490,000 Capital loss carryforwards 1,050,000 1,050,000 Total gross deferred tax asset 11,950,000 11,540,000 Valuation allowance (11,950,000) (11,540,000) Net deferred taxes $ -- $ --

14. Income Taxes_ Schedule of E

14. Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables)	12 Months Ended
	Dec. 31, 2017
Tables/Schedules
Schedule of Effective Income Tax Rate Reconciliation	2017 2016 Expected tax rate 34% 34% Expected tax recovery applied to net loss before income taxes $ (714,000) $ (1,449,000) Increase (decrease) in taxes resulting from: Change in valuation allowance 403,000 510,000 Compensation expense 24,000 159,000 Interest and financing costs 243,000 204,000 Other 44,000 (576,000) $ 0 $ 0

14. Income Taxes_ Schedule of U

14. Income Taxes: Schedule of Unrecognized Tax Benefits Roll Forward (Tables)	12 Months Ended
	Dec. 31, 2017
Tables/Schedules
Schedule of Unrecognized Tax Benefits Roll Forward	2019 $ 391,000 2020 675,000 2021 521,000 2022 897,000 2023 1,671,000 2024 4,205,000 2025 3,381,000 2026 3,088,000 2027 2,623,000 2028 2,401,000 2029 1,299,000 2030 1,258,000 2031 1,298,000 2032 1,229,000 2033 1,475,000 2034 1,404,000 2035 1,704,000 2036 1,496,000 2037 1,184,000 $ 32,200,000

Schedule of changes in non-cash

Schedule of changes in non-cash operating working capital (Tables)	12 Months Ended
	Dec. 31, 2017
Tables/Schedules
Schedule of changes in non-cash operating working capital	2017 2016 Value added taxes recoverable $ 28,025 $ (10,388) Prepaid expenses -- (3,064) Accounts payable 395,529 51,273 Accrued liabilities 155,510 97,298 $ 579,064 $ 135,119

1. General (Details)

1. General (Details)	12 Months Ended
	Dec. 31, 2017
Details
Entity Incorporation, State Country Name	Nevada
Entity Incorporation, Date of Incorporation	Apr. 12, 1989

2. Summary of Significant Acc49

2. Summary of Significant Accounting Policies: (a) Future operations (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Details
Working capital		$ 4,641,061
Deficit		54,759,828	$ 52,660,416
Net loss		2,099,412	4,261,008
Net cash used in operating activities		$ 527,102	$ 1,744,539
Expected operating expenditures	$ 1,472,000

2. Summary of Significant Acc50

2. Summary of Significant Accounting Policies: (o) Accounting For Uncertainty in Income Taxes (Details)	Dec. 31, 2017USD ($)
Details
Unrecognized Tax Benefits	$ 11,950,000

3. Property and Equipment_ Pr51

3. Property and Equipment: Property, Plant and Equipment (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Details
Property, Plant and Equipment, Gross	$ 34,590	$ 34,590
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	$ 34,590	$ 34,590

4. Promissory Notes Payable_ 52

4. Promissory Notes Payable: Schedule of promissory notes and changes in financial statement presentation (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Proceeds from promissory note payable beginning	$ 112,784	$ 36,250
Proceeds on issuance	35,000	82,500
Allocated to common stock par value	(75)	(750)
Allocated to additional paid-in capital	(1,506)	(21,250)
Proceeds allocated to promissory notes on issuance	33,419	60,500
Accretion recorded as a charge to interest and financing costs	7,547	19,902
Principal payment	(88,000)
Proceeds from notes before other charges	65,750	116,652
Debt Issuance Costs, Net		(3,868)
Proceeds from promissory note payable ending	61,250	112,784
Promissory notes
Related Party Transaction, Amounts of Transaction	$ 4,500	$ 0

4. Promissory Notes Payable (De

4. Promissory Notes Payable (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Details
Proceeds on issuance	$ 35,000	$ 82,500
Stock issued to investors	75,000
Proceeds from promissory notes payable	$ 1,581
Payments on promissory notes	88,000
Accrued interest repaid	3,526	6,000
Issuance of promissory notes	31,000	$ 82,500
Stock issued with promissory notes		750,000
Stock issued with promissory notes, value		22,000
Finance charges incurred		$ 7,500
Promissory notes due on demand		36,250
Interest paid and payable to the holders of the promissory notes	6,827	7,594
Accretion charges related to the promissory notes	3,679	19,902
Finance fees related to the promissory notes	3,868	3,632
Interest paid related to the promissory notes	$ 3,526	$ 6,000

5. 10% Senior Convertible Not54

5. 10% Senior Convertible Notes: Schedule of senior convertible notes and changes in financial statement presentation (Details) - USD ($)		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016
Details
Convertible notes payable Excluding related parties		$ 962,739	$ 6,721,291
Note principal on issuance		211,235	70,000
Allocated to common stock and additional paid-in capital for market value of stock issued to holders of the notes: Allocated to common stock		(10,499)	(210)
Allocated to common stock and additional paid-in capital for market value of stock issued to holders of the notes: Allocated to additional paid-in capital		(57,236)	(5,996)
Allocated to additional paid-in capital for the intrinsic value of the beneficial conversion feature		143,500	51,921
Accretion recorded as a charge to interest and financing costs		67,735	18,079
Repayments of Convertible Debt		(5,000)	(49,794)
Principal converted pursuant to the terms of the notes			(151,500)
Principal settled through the issuance of Ser. B conv. preferred stock			(2,835,025)
Principal settled through the issuance of Ser. C conv. Preferred stock			(2,792,233)
Convertible notes payable Excluding related parties ending		1,168,974	962,739
10% Senior convertible notes	[1]	$ 1,168,974	$ 962,739
[1]	Note 5

5. 10% Senior Convertible Not55

5. 10% Senior Convertible Notes (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Details
Proceeds from senior convertible notes	$ 211,235
Stock issued to holders of senior convertible notes	67,735	6,280,729
Senior convertible notes issued for cash	$ 151,235
Senior convertible notes issued for accounts payable	60,000
Issuance of 10% senior convertible notes	151,235	$ 70,000
Payments on senior convertible notes		36,922
Senior convertible notes converted, principal	151,500
Series B Convertible Stock Issued for Principal		$ 2,835,025
Series B Convertible Stock Issued for interest	248,850
Series B Convertible Stock Issued to senior note holders		3,900
Series B Convertible Stock Issued to senior note holders value	3,900,000
Series C Convertible Stock Issued for Principal		$ 2,792,233
Series C Convertible Stock Issued for interest		$ 170,983
Series C Convertible Stock Issued to senior note holders		3,580
Series C Convertible Stock Issued to senior note holders value	3,579,966
Series A Convertible Stock Issued for interest	792,355
Series A Convertible Stock Issued to senior note holders		1,005
Series C Convertible Stock Issued to senior note holders value	$ 1,005,000
Accrued interest exchanged for accounts receivable		$ 400,000
Accounts receivable exchanged for accrued interest		400,000
Aggregate net loss realized in settlement of principal and interest		$ 1,645,554
Stock issued to senior note holders		6,206
Senior convertible notes beneficial conversion		$ 11,873
Shares issuable on conversion of senior convertible notes	27,253,434
Coupon rate interest accrued	$ 105,655	368,784
Accretion Expense	67,735	$ 18,079
Fair Value shares issuable on conversion of senior convertible notes	245,281
Difference from principal amount of senior convertible notes	$ 923,693

5. 10% Senior Convertible Not56

5. 10% Senior Convertible Notes: Summary of ten percent senior convertible notes (Details) - USD ($)		Dec. 31, 2017	Dec. 31, 2016
Details
10% Senior convertible notes	[1]	$ 1,168,974	$ 962,739
[1]	Note 5

6. Convertible Promissory Not57

6. Convertible Promissory Notes (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Details
Convertible promissory notes issued for cash	$ 351,000	$ 973,611
Relative fair value of the beneficial conversion feature of the notes at date of issuance	295,196	858,278
Finance fees were incurred in relation to the convertible promissory notes	16,000	22,250
Original issue discounts incurred in relation to the convertible promissory notes	18,000	57,611
Convertible promissory notes converted, principal	659,687	315,500
Convertible promissory notes converted, accrued interest	$ 28,744	$ 13,142
Shares issued for conversion of convertible promissory notes	147,654,844	23,962,703
Prepayment of convertible promissory notes	$ 114,864	$ 477,335
Prepayment of convertible promissory notes, principal	71,000	316,111
Prepayment of convertible promissory notes, interest	43,864	$ 161,224
Fair Value shares issuable on conversion of convertible promissory notes	656,155
Difference from principal amount of convertible promissory notes	$ 448,343

7. Stockholders' Deficiency (De

7. Stockholders' Deficiency (Details)	12 Months Ended
	Dec. 31, 2017$ / sharesshares
Details
Series C Convertible Preferred Stock issued, accounts payable	78
Series C Convertible Preferred Stock issued, accounts payable, value	78,000
Series C Convertible Preferred Stock issued, consulting fees	180
Series C Convertible Preferred Stock issued, consulting fees, value	40,200
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	7,500,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares	$ 0.04
Options available for grant under incentive equity plan	2,500,000

7. Stockholders' Deficiency_ 59

7. Stockholders' Deficiency: Schedule of Share-based Compensation, Stock Options, Activity (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Details
Selling, general and administrative	71,771	466,554
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures	$ 71,771	$ 466,554

9. Loss On Extinguishment of 60

9. Loss On Extinguishment of Debt and Accrued Liabilities (Details) - USD ($)		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016
Accounts payable		$ 697,438	$ 443,910
Loss on extinguishment of debt and accrued liabilities	[1]		(1,645,294)
Interest Paid		47,390	$ 540,425
Principal payment		$ (88,000)
Gain Loss accounts payable
Stock Issued During Period, Shares, New Issues			200,000
Stock Issued During Period, Value, New Issues			$ 5,740
Accounts payable			6,000
Loss on extinguishment of debt and accrued liabilities			260
Settlement of principle and interest 10% senior convertible notes
Loss on extinguishment of debt and accrued liabilities			212,645
Series A Convertible Preferred Stock Issued, Stock		1,005
Series A Convertible Preferred Stock Issued, Value		$ 1,005,000
Interest Paid			792,355
Settlement of principle and interest 10% senior convertible notes, Series B
Loss on extinguishment of debt and accrued liabilities			816,125
Interest Paid			248,850
Series B Convertible Preferred Stock Issued, Stock		3,900
Series B Convertible Preferred Stock Issued, Value		$ 3,900,000
Principal payment			2,835,025
Settlement of principle and interest 10% senior convertible notes, Series C
Loss on extinguishment of debt and accrued liabilities			616,784
Interest Paid			170,983
Principal payment			$ 2,792,233
Series C Convertible Preferred Stock Issued, Stock		3,580
Series C Convertible Preferred Stock Issued, Value		$ 3,580,000
[1]	Note 9

10. Loss Per Share_ Schedule 61

10. Loss Per Share: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Details
Incremental Common Shares Attributable to Dilutive Effect of Contingently Issuable Shares	27,253,434	20,343,846
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Debt Securities	77,411,942	34,618,076
Incremental common shares attributable to conversion of Series A convertible preferred stock	22,300,000	22,300,000
Incremental common shares attributable to conversion of Series B convertible preferred stock	130,000,000	130,000,000
Incremental common shares attributable to conversion of Series C convertible preferred stock	113,633,333	105,033,333
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants	7,500,000	7,500,000

11. Related Party Transactions

11. Related Party Transactions (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Accounts payable
Related Party Transaction, Amounts of Transaction	$ 4,052
Accrued interest
Related Party Transaction, Amounts of Transaction	4,187	$ 4,001
Coupon rate interest
Related Party Transaction, Amounts of Transaction	0	24,007
Settlement of note principal
Related Party Transaction, Amounts of Transaction	0	84,520
Settlement of note interest
Related Party Transaction, Amounts of Transaction	0	65,767
Promissory notes
Related Party Transaction, Amounts of Transaction	$ 4,500	$ 0

14. Income Taxes_ Schedule of63

14. Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Details
Deferred Tax Assets, Operating Loss Carryforwards	$ 10,900,000	$ 10,490,000
Deferred Tax Assets, Capital Loss Carryforwards	1,050,000	1,050,000
Deferred Tax Assets, Gross	11,950,000	11,540,000
Deferred Tax Assets, Valuation Allowance	$ (11,950,000)	$ (11,540,000)

14. Income Taxes (Details)

14. Income Taxes (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Details
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	34.00%	34.00%
Income tax reconciliation net operating loss available to reduce taxable income	$ 32,200,000

14. Income Taxes_ Schedule of65

14. Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Details
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	34.00%	34.00%
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount	$ (714,000)	$ (1,449,000)
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount	403,000	510,000
Effective Income Tax Rate Reconciliation, Deduction, Amount	24,000	159,000
Effective Income Tax Rate Reconciliation, Deduction, Other, Amount	243,000	204,000
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount	44,000	(576,000)
Current Federal Tax Expense (Benefit)	$ 0	$ 0

14. Income Taxes_ Schedule of66

14. Income Taxes: Schedule of Unrecognized Tax Benefits Roll Forward (Details) - USD ($)	12 Months Ended
	Dec. 31, 2037	Dec. 31, 2036	Dec. 31, 2035	Dec. 31, 2034	Dec. 31, 2033	Dec. 31, 2032	Dec. 31, 2031	Dec. 31, 2030	Dec. 31, 2029	Dec. 31, 2028	Dec. 31, 2027	Dec. 31, 2026	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2017
Details
Income tax reconciliation net operating loss available to reduce taxable income, expiration	$ 1,184,000	$ 1,496,000	$ 1,704,000	$ 1,404,000	$ 1,475,000	$ 1,229,000	$ 1,298,000	$ 1,258,000	$ 1,299,000	$ 2,401,000	$ 2,623,000	$ 3,088,000	$ 3,381,000	$ 4,205,000	$ 1,671,000	$ 897,000	$ 521,000	$ 675,000	$ 391,000
Income tax reconciliation net operating loss available to reduce taxable income																				$ 32,200,000

Schedule of changes in non-ca67

Schedule of changes in non-cash operating working capital (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Details
Value added taxes recoverable	$ 28,025	$ (10,388)
Accounts payable		(3,064)
Accounts payable	395,529	51,273
Accrued liabilities	155,510	97,298
Noncash capital increase decrease	$ 579,064	$ 135,119

16. Supplementary Cash Flow I68

16. Supplementary Cash Flow Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Details
Interest Paid	$ 47,390	$ 540,425
Issuance of the Corporation's common stock as partial consideration for services rendered		283,330
ssuance of the Corporation's common stock in settlement of 10% senior convertible notes and accrued interest, on the holders' exercise of the conversion feature		188,422
Issuance of the Corporation's common stock in settlement of convertible promissory notes, and accrued interest thereon	688,431	328,642
Issuance of the Corporation's common stock in settlement of accounts payable and accrued liabilities		6,000
Issuance of the Corporation's Series A convertible preferred shares in settlement of accrued interest on the 10% senior convertible notes		792,355
Issuance of the Corporation's Series B convertible preferred shares in settlement of principal and accrued interest on the 10% senior convertible notes		3,083,875
Issuance of the Corporation's Series C convertible preferred shares in settlement of principal and accrued interest on the 10% senior convertible notes		2,963,216
Issuance of the Corporation's Series C convertible preferred shares in settlement of accounts payable, accrued liabilities and consulting fees	118,200
Accounts receivable settled with offset of accrued interest on the 10% senior convertible notes		$ 400,000
Issuance of the Corporation's 10% senior convertible notes in settlement of accounts payable and accrued liabilities	60,000
Issuance of the Corporation's promissory notes in settlement of accounts payable and accrued liabilities	$ 4,000

17. Subsequent Events (Details)

17. Subsequent Events (Details)	Mar. 27, 2018	Mar. 13, 2018	Mar. 09, 2018	Mar. 05, 2018	Feb. 15, 2018	Feb. 12, 2018	Feb. 08, 2018	Jan. 25, 2018	Mar. 31, 2018
Details
Subsequent Event, Description	On March 27, 2018, a holder of the convertible promissory notes exercised the conversion feature of the notes, and converted $25,000 of note principal, plus $1,594.44 of accrued interest thereon, into 9,123,307 shares of the Company’s common stock.	On March 13, 2018, the Company issued $12,500 of its promissory notes for cash. The notes are payable on demand, and bear interest at the rate of 12% per annum.	On March 9, 2018, a holder of the convertible promissory notes exercised the conversion feature of the notes, and converted $15,007.50 of note principal into 6,210,000 shares of the Company’s common stock.	On March 5, 2018, the Company issued $15,000 of its promissory notes for cash. The notes are payable on demand, and bear interest at the rate of 12% per annum.	On February 15, 2018, the Company issued $6,000 of its promissory notes for cash. The notes are payable on demand, and bear interest at the rate of 12% per annum.	On February 12, 2018, a holder of the convertible promissory notes exercised the conversion feature of the notes, and converted $15,040 of note principal into 6,400,000 shares of the Company’s common stock.	On February 8, 2018, a holder of the convertible promissory notes exercised the conversion feature of the notes, and converted $23,650 of note principal, plus $4,321.68 of accrued interest thereon, into 7,824,245 shares of the Company’s common stock.	On January 25, 2018, a holder of the convertible promissory notes exercised the conversion feature of the notes and converted $10,200 of note principal into 4,500,000 shares of the Company’s common stock.	During Q1 2018, the Company entered into legal proceedings with a provider of services regarding the amount of the balance owed by the Company for services rendered by the provider of services to the Company during 2017.