Validian (VLDI) 10-Q 14 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 07, 2018
Document and Entity Information:
Entity Registrant Name	Validian Corp
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Amendment Flag	false
Entity Central Index Key	1,100,644
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		688,287,060
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	Yes
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Trading Symbol	vldi

VALIDIAN CORPORATION AND SUBSID

VALIDIAN CORPORATION AND SUBSIDIARIES Unaudited Interim Consolidated, Condensed Balance Sheets - USD ($)		Sep. 30, 2018		Dec. 31, 2017
Current assets:
Cash and cash equivalents		$ 59
Value added taxes recoverable		4,755		$ 5,995
Prepaid expenses				25,974
Total Current assets		4,814		31,969
Total assets		4,814		31,969
Current liabilities:
Bank indebtedness				103
Accounts payable and accrued liabilities	[1]	3,132,429		3,084,850
Accrued interest on 10% senior convertible notes payable to related parties	[1],[2]	4,001		4,187
Promissory notes payable to a related party	[3]			4,500
Deferred revenue		320,000		320,000
Promissory notes payable	[3]	249,750		61,250
10% Senior convertible notes	[2]	1,148,974	[4]	1,168,974	[3]
Convertible promissory notes	[2]			29,166
Total current liabilities		4,855,154		4,673,030
Total liabilities		4,855,154		4,673,030
Stockholders' deficiency
Preferred stock ($0.001 par value. Authorized 50,000,000 shares; issued and outstanding Nil shares at September 30, 2018 and at December 31, 2017)	[5]
Series A Convertible Preferred stock ($0.001 par value, $1,000 stated value. Authorized 10,000 shares; issued and outstanding 2,230 shares at September 30, 2018 and December 31, 2017)	[5]	2		2
Series B Convertible Preferred stock ($0.001 par value, $1,000 stated value. Authorized 5,000 shares; issued and outstanding 3,900 shares at September 30, 2018 and December 31, 2017)	[5]	4		4
Series C Convertible Preferred stock ($0.001 par value, $1,000 stated value. Authorized 5,000 shares; issued and outstanding 3,409 shares at September 30, 2018 and December 31, 2017)	[5]	3		3
Common stock, ($0.001 par value. Authorized 700,000,000 shares; issued and outstanding 688,287,060 and 600,520,343 shares at September 30, 2018 and December 31, 2017, respectively.)		688,287		600,520
Additional paid in capital		49,729,993		49,567,976
Deficit		(55,218,891)		(54,759,828)
Treasury stock (7,000 shares at September 30, 2018 and December 31, 2017, at cost)		(49,738)		(49,738)
Total stockholders' deficiency		(4,850,340)		(4,641,061)
Total liabilities and stockholders' deficiency	[6]	$ 4,814		$ 31,969
[1]	Note 8
[2]	Note 4
[3]	Notes 2, 8
[4]	Notes 3, 8
[5]	Note 5
[6]	Basis of presentation (note 1), Subsequent events (note 12)

Statement of Financial Position

Statement of Financial Position - Parenthetical - USD ($)	Sep. 30, 2018	Dec. 31, 2017
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	3,409
Preferred Stock, Series C, Shares Outstanding	3,409	3,409
Common Stock, Par Value	$ 0.001	$ 0.001
Common Stock, Shares Authorized	700,000,000	700,000,000
Common Stock, Shares Issued	688,287,060	600,520,343
Common Stock, Shares Outstanding	688,287,060	600,520,343
Treasury Stock, Shares	7,000	7,000
Treasury stock	$ 49,738	$ 49,738

VALIDIAN CORPORATION AND SUBS_2

VALIDIAN CORPORATION AND SUBSIDIARIES Unaudited Interim Consolidated, Condensed Statements of Operations For the three and nine months ended September 30, 2018 and 2017 - USD ($)		3 Months Ended		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Expenses:
Selling, general and administrative		$ 43,484	$ 140,542	$ 184,464	$ 382,978
Research and development		15,994	30,107	38,083	497,923
Total expenses		59,478	170,649	222,547	880,901
Loss before the undernoted		(59,478)	(170,649)	(222,547)	(880,901)
Other income (expenses):
Interest and financing costs	[1]	(35,926)	(336,800)	(308,093)	(891,641)
Foreign exchange gain (loss)		(30,769)	(73,081)	71,577	(135,200)
Total other income (expenses)		(66,695)	(409,881)	(236,516)	(1,026,841)
Net loss		$ (126,173)	$ (580,530)	$ (459,063)	$ (1,907,742)
Loss per common share - basic and diluted	[2]	$ 0	$ 0	$ 0	$ 0
Weighted average number of common shares outstanding during period		686,787,060	520,345,061	655,184,164	473,967,374
[1]	Notes 6 and 8
[2]	Note 7

VALIDIAN CORPORATION AND SUBS_3

VALIDIAN CORPORATION AND SUBSIDIARIES Unaudited Interim Consolidated, Condensed Statements of Cash Flow For the nine months ended September 30, 2018 and 2017 - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net loss	$ (459,063)	$ (1,907,742)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	22,910	53,976
Non-cash interest and financing expense	305,899	844,251
Increase (decrease) in cash resulting from changes in:
Value added taxes recoverable	1,240	28,927
Prepaid expenses	3,064
Accounts payable and accrued liabilities	(37,888)	473,749
Net cash used in operating activities	(163,838)	(506,839)
Cash flows from financing activities:
Bank indebtedness	(103)
Issuance of 10% senior convertible notes		151,235
Issuance of convertible promissory notes		321,000
Issuance of promissory notes	188,500	31,000
Debt issuance costs		(14,500)
Original issue discount		(15,000)
Repayment of 10% senior convertible notes	(20,000)	(5,000)
Repayment of convertible promissory notes		(71,000)
Repayment of promissory notes	(4,500)	(82,500)
Net cash provided by financing activities	163,897	315,235
Net increase (decrease) in cash and cash equivalents	59	(191,604)
Cash and cash equivalents: Beginning of period		191,764
Cash and cash equivalents: End of period	$ 59	$ 160

1. Basis of Presentation

1. Basis of Presentation	9 Months Ended
	Sep. 30, 2018
Notes
1. Basis of Presentation	1. Basis of presentation The accompanying consolidated financial statements include the accounts of Validian Corporation and its wholly owned subsidiaries (collectively, the "Company") after elimination of all significant intercompany balances and transactions. The financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America which require management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. While management has based its assumptions and estimates on the facts and circumstances currently known, final amounts may differ from such estimates. The interim financial statements are unaudited but, in the opinion of management, include all adjustments (consisting only of normal recurring entries) necessary for a fair presentation of the financial position and results of operations of the Company for the periods presented. The results of operations for the nine months ended September 30, 2018 are not necessarily indicative of the operating results for the full fiscal year ending December 31, 2018. These unaudited interim financial statements have been prepared following accounting principles consistent with those used in the annual audited financial statements and should be read in conjunction with the annual audited financial statements for the year ended December 31, 2017. Going concern The consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company has no revenues, has negative working capital of $4,850,340, and stockholders’ deficiency of $4,850,340 as at September 30, 2018, and has incurred a loss of $459,063 and negative cash flow from operations of $163,838 for the nine months then ended. Furthermore, the Company failed to settle certain 10% senior convertible notes and promissory notes plus accrued interest when they matured on various dates between October 2008 and September 2018. As a result of these non-payment defaults, all of the 10% senior convertible notes, as well as the promissory notes were in default at September 30, 2018, in accordance with the default provisions of the respective notes, and consequently are due and payable on demand. In addition, the Company expects to continue to incur operating losses for the foreseeable future, and has no lines of credit or other financing facilities in place. The Company expects to incur operating expenses of approximately $1,472,000 for the year ending December 31, 2018, subject to the availability of adequate funding. In the event the Company cannot raise the additional 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 Company’s ability to continue as a going concern. Management’s plan to address these issues includes raising capital through the private placement of equity, the exercise of previously-issued equity instruments and through the issuance of additional promissory notes. The Company’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 Company’s position and or results of operations and could also result in the Company 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 Company 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 Company’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 Company.

2. Promissory Notes Payable

2. Promissory Notes Payable	9 Months Ended
	Sep. 30, 2018
Notes
2. Promissory Notes Payable	2. 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 periods ended September 30, 2018 and December 31, 2017: Nine months Year ended ended September 30, 2018 December 31, 2017 (unaudited) Balance beginning of period $ 65,750 $ 112,784 Note proceeds on issuance 188,500 35,000 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) Allocated to additional paid-in capital -- (1,506) -- (1,581) Proceeds allocated to promissory notes on issuance 188,500 33,419 Accretion recorded as a charge to interest and financing costs -- 7,547 Principal repaid (4,500) (88,000) Balance end of period 249,750 65,750 Payable to a related party -- (4,500) Balance end of period, net of related party $ 249,750 $ 61,250 During the nine months ended September 30, 2018, the Company issued $188,500 of its promissory notes. The notes are payable on demand, and bear interest at the rate of 12% per annum. During the nine months ended September 30, 2018, the Company repaid $4,500 of the promissory notes, and $141 in accrued interest charges thereon. The notes outstanding at September 30, 2018 bear interest at the rate of 12% per annum. Included in interest and financing costs for the three and nine months ended September 30, 2018 is $6,858 (2017: $1,768) and $14,163 (2017: $4,885), respectively, of interest on the promissory notes. Interest on the promissory notes paid in cash during the three and nine months ended September 30, 2018 is $ (182) (2017: $nil) and $141 (2017: $3,526), respectively.

3. 10% Senior Convertible Notes

3. 10% Senior Convertible Notes	9 Months Ended
	Sep. 30, 2018
Notes
3. 10% Senior Convertible Notes	3. 10% Senior convertible notes The following table sets forth the financial statement presentation of the note proceeds on issuance, and the changes in financial statement presentation of the balance allocated to the 10% senior convertible notes for the periods ended September 30, 2018 and December 31, 2017: Nine months Year Ended Ended September 30, 2018 December 31, 2017 (unaudited) Balance beginning of period $ 1,168,974 $ 962,739 Note proceeds on issuance -- 211,235 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 -- (10,499) Allocated to additional paid-in capital -- (57,236) -- (67,735) Proceeds allocated to 10% senior convertible notes on issuance -- 143,500 Accretion recorded as a charge to interest and financing costs -- 67,735 Principal repaid in cash (20,000) (5,000) Balance end of period $ 1,148,974 $ 1,168,974 During the nine months ended September 30, 2018, the Company repaid $20,000 in principal. Holders are permitted, at any time, to convert all or a portion of the outstanding principal plus accrued interest into common stock of the company, at a rates ranging from one common share for each $0.03 of debt converted, to one common share for each $0.10 of debt converted. The Company 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 Company or converted by the holder. At the Company’s option, interest may be paid either in cash or in common shares of the Company. 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. Notwithstanding the stated maturity dates, all of the senior convertible notes are payable on demand, pursuant to the default provisions of the notes, as described below. The Company 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 September 30, 2018, 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 September 30, 2018, 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 notes are unsecured, and are convertible as follows: Note Conversion Principal Rate $ 642,468 $0.03 6,506 0.038 500,000 0.10 $ 1,148,974 Included in interest and financing costs for the three and nine months ended September 30, 2018 is $29,271 (2017: $27,732) and $87,239 (2017: $76,190), respectively, in coupon rate interest accrued on the 10% senior convertible notes, and $nil (2017: $47,190) and $nil (2017: $63,577), respectively, in accretion related to the relative fair value of the equity components of the 10% senior convertible notes at issuance. At September 30, 2018, the fair value of the stock issuable to fully convert the 10% senior convertible note principal, was $199,401, which is $949,573 less than the principal outstanding on that date.

4. Convertible promissory notes

4. Convertible promissory notes	9 Months Ended
	Sep. 30, 2018
Notes
4. Convertible promissory notes	4. Convertible promissory notes During the nine months ended September 30, 2018, holders of the convertible promissory notes exercised the conversion feature of the notes, and converted $219,563 of note principal and $29,222 of accrued interest thereon plus $1,000 in fees, into 87,766,717 shares of the Company’s common stock. The convertible promissory notes contain penalty provisions relating to events of default, pursuant to which the Company could be required not only to pay interest at the rate of 22% following such an event, but also to pay immediately 150% of the principal outstanding plus accrued interest and penalty interest; alternatively, the Company could be required, at the discretion of the holder, to issue stock in satisfaction of the value determined under such penalty provisions, at the rate of conversion in effect at such time as the holder so elects. In addition to non-payment of the note principal and interest at maturity or failure to transfer stock on receipt of a notice of conversion from the holder, events of default include making an assignment or appointment of a receiver or trustee, ceasing operations, liquidating assets or entering into bankruptcy proceedings; certain money judgments filed against the Company; breach of covenants, representations or warranties under the note; delisting of the Company’s stock or failure to comply with the exchange act; failure to maintain property or rights which are necessary to the Company’s business; certain restatements of the Company’s financial statements as filed with the SEC during the preceding two years; effectuating a reverse stock split without first providing the holder with 20 days’ notice of such occurrence; replacing the Company’s transfer agent without first providing to the successor transfer agent, the necessary instructions to effect a transfer of stock to the holder pursuant to the terms of the note. The convertible promissory notes are being accreted to their face value over the term of the notes through periodic charges to interest expense. During the three and nine months ended September 30, 2018, accretion of $nil (2017: $175,437) and $170,982 (2017: $613,874), respectively was included in interest and financing costs. Also included in interest and financing costs for the three and nine months ended September 30, 2018 is $nil (2017: $45,921) and $15,495 (2017: $71,328), respectively, relating to accrued coupon-rate and bonus interest on the convertible promissory notes; and $nil (2017: $38,752) and $20,416 (2017: $54,240), respectively, relating to the amortization of deferred finance fees and original issue discount incurred in connection with the placement of the convertible promissory notes.

5. Stockholders' Deficiency

5. Stockholders' Deficiency	9 Months Ended
	Sep. 30, 2018
Notes
5. Stockholders' Deficiency	5. Stockholders’ deficiency (a) Common stock transactions During the nine months ended September 30, 2018, holders of the convertible promissory notes exercised the conversion feature of the notes and converted an aggregate of $219,563 of note principal and $29,222 in accrued interest thereon plus $1,000 in fees, into 87,766,717 shares of the Company’s common stock. (b) Stock-based compensation The following table presents the total of stock-based compensation included in the expenses of the Company for the three and nine months ended September 30, 2018 and 2017: Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 Selling, general and administrative $ -- $ 504 $ 22,910 $ 53,976 Research and development -- -- -- -- Total stock-based compensation included in expenses $ -- $ 504 $ 22,910 $ 53,976

6. Interest and financing costs

6. Interest and financing costs	9 Months Ended
	Sep. 30, 2018
Notes
6. Interest and financing costs	6. Interest and financing costs Interest and financing costs include accrued and paid coupon rate interest and accretion and financing costs relating to the 10% senior convertible notes, promissory notes and convertible promissory notes.

7. Loss Per Share

7. Loss Per Share	9 Months Ended
	Sep. 30, 2018
Notes
7. Loss Per Share	7. Loss per share As the Company incurred a net loss during the nine months ended September 30, 2018, and during the three months ended September 30, 2018, the loss and diluted loss per common share are based on the weighted-average common shares outstanding during the period. The following outstanding instruments could have a dilutive effect in the future: September 30, 2018 September 30, 2017 (unaudited) (unaudited) Shares issuable on conversion of 10% senior convertible notes 26,586,767 27,253,434 Shares issuable on conversion of convertible promissory notes and accrued interest thereon -- 81,264,137 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 113,633,333 107,633,333 Stock options 7,500,000 7,500,000 Total 300,020,100 375,950,904

8. Related Party Transactions

8. Related Party Transactions	9 Months Ended
	Sep. 30, 2018
Notes
8. Related Party Transactions:	8. Related party transactions $4,001 (December 31, 2017: $4,187) 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 September 30, 2018. An officer and director of a company who holds $nil (December 31, 2017: $4,500) of the promissory notes is also an officer and director of the Company.

9. Supplementary Cash Flow Info

9. Supplementary Cash Flow Information	9 Months Ended
	Sep. 30, 2018
Notes
9. Supplementary Cash Flow Information	9. Supplementary cash flow information The Company paid no income taxes during the nine months ended September 30, 2018, nor during the nine months ended September 30, 2017. Interest paid in cash during the nine months ended September 30, 2018 was $141 (2017: $47,390). Non-cash financing activities are excluded from the consolidated statements of cash flows. The following is a summary of such activities for the nine months ended September 30, 2018 and 2017: 2018 2017 Issuance of the Company’s common stock on conversion of convertible promissory notes plus accrued interest thereon $ 248,784 $ 592,659 Issuance of the Company’s Series C convertible preferred stock in settlement of accounts payable and accrued liabilities - 78,000 Issuance of the Company’s 10% senior convertible notes in settlement of accounts payable and accrued liabilities - 60,000 Total $ 248,784 $ 730,659

10. Fair Value Measurements

10. Fair Value Measurements	9 Months Ended
	Sep. 30, 2018
Notes
10. Fair Value Measurements	10. Fair value measurements The carrying value of cash and cash equivalents, amounts receivable, accounts payable and accrued liabilities approximates fair value due to the short term to maturity of these instruments. The carrying value of the 10% senior convertible notes, the convertible promissory notes, and the promissory notes approximate fair value, due to the issuance of certain of these debt instruments during the nine months prior and/or subsequent to the period ended September 30, 2018, under conditions substantially identical to those existing at September 30, 2018.

11. Recent Accounting Pronounce

11. Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2018
Notes
11. Recent Accounting Pronouncements	11. Recent accounting pronouncements Management does not believe that any recently issued but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying financial statements.

12. Subsequent Events

12. Subsequent Events	9 Months Ended
	Sep. 30, 2018
Notes
12. Subsequent Events:	12. Subsequent events We have evaluated subsequent events through the date the financial statements were issued. All material events have been disclosed.

2. Promissory Notes Payable_ Sc

2. Promissory Notes Payable: Schedule of Promissory Notes and Changes in Financial Statement Presentation (Tables)	9 Months Ended
	Sep. 30, 2018
Tables/Schedules
Schedule of Promissory Notes and Changes in Financial Statement Presentation	Nine months Year ended ended September 30, 2018 December 31, 2017 (unaudited) Balance beginning of period $ 65,750 $ 112,784 Note proceeds on issuance 188,500 35,000 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) Allocated to additional paid-in capital -- (1,506) -- (1,581) Proceeds allocated to promissory notes on issuance 188,500 33,419 Accretion recorded as a charge to interest and financing costs -- 7,547 Principal repaid (4,500) (88,000) Balance end of period 249,750 65,750 Payable to a related party -- (4,500) Balance end of period, net of related party $ 249,750 $ 61,250

3. 10% Senior Convertible Not_2

3. 10% Senior Convertible Notes: Schedule of ten percent senior convertible notes (Tables)	9 Months Ended
	Sep. 30, 2018
Tables/Schedules
Schedule of ten percent senior convertible notes	Nine months Year Ended Ended September 30, 2018 December 31, 2017 (unaudited) Balance beginning of period $ 1,168,974 $ 962,739 Note proceeds on issuance -- 211,235 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 -- (10,499) Allocated to additional paid-in capital -- (57,236) -- (67,735) Proceeds allocated to 10% senior convertible notes on issuance -- 143,500 Accretion recorded as a charge to interest and financing costs -- 67,735 Principal repaid in cash (20,000) (5,000) Balance end of period $ 1,148,974 $ 1,168,974

3. 10% Senior Convertible Not_3

3. 10% Senior Convertible Notes: Summary of ten percent senior convertible notes (Tables)	9 Months Ended
	Sep. 30, 2018
Tables/Schedules
Summary of ten percent senior convertible notes	Note Conversion Principal Rate $ 642,468 $0.03 6,506 0.038 500,000 0.10 $ 1,148,974

5. Stockholders' Deficiency_ Sh

5. Stockholders' Deficiency: Share-based Compensation, Stock Options, Activity (Tables)	9 Months Ended
	Sep. 30, 2018
Tables/Schedules
Share-based Compensation, Stock Options, Activity	Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 Selling, general and administrative $ -- $ 504 $ 22,910 $ 53,976 Research and development -- -- -- -- Total stock-based compensation included in expenses $ -- $ 504 $ 22,910 $ 53,976

7. Loss Per Share_ Schedule of

7. Loss Per Share: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2018
Tables/Schedules
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	September 30, 2018 September 30, 2017 (unaudited) (unaudited) Shares issuable on conversion of 10% senior convertible notes 26,586,767 27,253,434 Shares issuable on conversion of convertible promissory notes and accrued interest thereon -- 81,264,137 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 113,633,333 107,633,333 Stock options 7,500,000 7,500,000 Total 300,020,100 375,950,904

9. Supplementary Cash Flow In_2

9. Supplementary Cash Flow Information: Schedule of Cash Flow, Supplemental Disclosures (Tables)	9 Months Ended
	Sep. 30, 2018
Tables/Schedules
Schedule of Cash Flow, Supplemental Disclosures	2018 2017 Issuance of the Company’s common stock on conversion of convertible promissory notes plus accrued interest thereon $ 248,784 $ 592,659 Issuance of the Company’s Series C convertible preferred stock in settlement of accounts payable and accrued liabilities - 78,000 Issuance of the Company’s 10% senior convertible notes in settlement of accounts payable and accrued liabilities - 60,000 Total $ 248,784 $ 730,659

Items (Details)

Items (Details)	9 Months Ended
	Sep. 30, 2018
Details
Nature of Operations	Validian Corporation (the “Company”) was incorporated in the State of Nevada on April 12, 1989 as CCC Funding Corp. The Company underwent several name changes before being renamed to Validian Corporation on January 28, 2003. Since August 3, 1999, the efforts of the Company have been devoted primarily to the development of a high speed, highly secure method of transacting business using the Internet, and to the sale and marketing of the Company’s products.

1. Basis of Presentation (Detai

1. Basis of Presentation (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Details
Working capital	$ 4,850,340		$ 4,850,340
Total stockholders' deficiency	4,850,340		4,850,340		$ 4,641,061
Net Income (Loss) Attributable to Parent	126,173	$ 580,530	459,063	$ 1,907,742
Net cash used in operating activities	$ 163,838		$ 163,838	$ 506,839
Substantial Doubt about Going Concern			The Company expects to incur operating expenses of approximately $1,472,000 for the year ending December 31, 2018, subject to the availability of adequate funding.  In the event the Company cannot raise the additional funds necessary to finance its research and development and sales and marketing activities, it may have to cease operations.
Substantial Doubt about Going Concern, Management's Evaluation			Management’s plan to address these issues includes raising capital through the private placement of equity, the exercise of previously-issued equity instruments and through the issuance of additional promissory notes.

2. Promissory Notes Payable_ _2

2. Promissory Notes Payable: Schedule of Promissory Notes and Changes in Financial Statement Presentation (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Details
Proceeds from promissory note payable beginning	$ 65,750	$ 112,784
Allocated to common stock par value		(75)
Allocated to additional paid-in capital		(1,506)
Proceeds allocated to promissory notes on issuance	188,500	33,419
Accretion recorded as a charge to interest and financing costs		7,547
Principal payment	(4,500)	(88,000)
Proceeds from notes before other charges	249,750	65,750
Related Party Transaction, Amounts of Transaction	0	(4,500)
Proceeds from promissory note payable ending	$ 249,750	$ 61,250

2. Promissory Notes Payable (De

2. Promissory Notes Payable (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Details
Proceeds on issuance			$ 188,500
Payments on promissory notes			4,500
Accrued interest repaid			141
Interest paid and payable to the holders of the promissory notes	$ 6,858	$ 1,768	14,163	$ 4,885
Interest paid related to the promissory notes	$ 0		$ 141	$ 3,526

3. 10% Senior Convertible Not_4

3. 10% Senior Convertible Notes: Schedule of ten percent senior convertible notes (Details) - USD ($)		9 Months Ended		12 Months Ended
		Sep. 30, 2018		Dec. 31, 2017
Details
Convertible notes payable Excluding related parties		$ 1,168,974		$ 962,739
Note principal on issuance				211,235
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)
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)
Allocated to additional paid-in capital for the intrinsic value of the beneficial conversion feature				143,500
Accretion recorded as a charge to interest and financing costs				67,735
Repayments of Convertible Debt				(5,000)
10% Senior convertible notes	[1]	$ 1,148,974	[2]	$ 1,168,974	[3]
[1]	Note 4
[2]	Notes 3, 8
[3]	Notes 2, 8

3. 10% Senior Convertible Not_5

3. 10% Senior Convertible Notes (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Details
Principal payments on senior convertible notes			$ 20,000
Coupon rate interest accrued on senior convertible notes	$ 29,271	$ 27,732	87,239	$ 76,190
Accretion related to the relative fair value of the equity components	$ 0	$ 47,190		$ 63,577
Difference from principal amount of senior convertible notes			949,573
Fair Value shares issuable on conversion of senior convertible notes			$ 199,401

3. 10% Senior Convertible Not_6

3. 10% Senior Convertible Notes: Summary of ten percent senior convertible notes (Details) - USD ($)		Sep. 30, 2018		Dec. 31, 2017
Details
10% Senior convertible notes	[1]	$ 1,148,974	[2]	$ 1,168,974	[3]
[1]	Note 4
[2]	Notes 3, 8
[3]	Notes 2, 8

4. Convertible promissory not_2

4. Convertible promissory notes (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Details
Stock Issued During Period, Value, Conversion of Convertible Securities			$ 219,563
Stock Issued During Period Accrued Interest			29,222
Stock issued during reporting period for fees			$ 1,000
Stock Issued During Period, Shares, New Issues			87,766,717
Accretion Expense	$ 0	$ 1,754,370	$ 170,982	$ 613,874
Amount of interest accrued for coupon-rate and bonus interest during the reporting period.	0	45,921	15,495	71,328
Amortization of Debt Discount (Premium)	$ 0	$ 38,752	$ 20,416	$ 54,240

5. Stockholders' Deficiency (De

5. Stockholders' Deficiency (Details)	9 Months Ended
	Sep. 30, 2018USD ($)shares
Details
Stock Issued During Period, Value, Conversion of Convertible Securities	$ 219,563
Stock Issued During Period Accrued Interest	29,222
Stock issued during reporting period for fees	$ 1,000
Stock Issued During Period, Shares, New Issues | shares	87,766,717

5. Stockholders' Deficiency_ _2

5. Stockholders' Deficiency: Share-based Compensation, Stock Options, Activity (Details) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Details
Selling, general and administrative	$ 504	$ 22,910	$ 53,976
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures	$ 504	$ 22,910	$ 53,976

7. Loss Per Share_ Schedule o_2

7. Loss Per Share: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Details
Incremental Common Shares Attributable to Dilutive Effect of Contingently Issuable Shares	26,586,767	27,253,434
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Debt Securities		81,264,137
Incremental Common Shares Attributable to Converson of Series A Convertible Preferred Stock	22,300,000	22,300,000
Incremental Common Shares Attributable to Converson of Series B Convertible Preferred Stock	130,000,000	130,000,000
Incremental Common Shares Attributable to Converson of Series C Convertible Preferred Stock	113,633,333	107,633,333
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants	7,500,000	7,500,000
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	300,020,100	375,950,904

8. Related Party Transactions (

8. Related Party Transactions (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Details
Due to Related Parties, Noncurrent	$ 4,001	$ 4,187
Related Party Transaction, Amounts of Transaction	$ 0	$ 4,500

9. Supplementary Cash Flow In_3

9. Supplementary Cash Flow Information: Schedule of Cash Flow, Supplemental Disclosures (Details) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Details
stock issued for conversion of convertible promissory notes including accrued interest, value	$ 248,784	$ 592,659
Issuance of the Company's Series C convertible preferred stock in settlement of accounts payable and accrued liabilities	$ 78,000