Trycera Financial 10-Q 19 Aug 15 2015 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 19, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	Trycera Financial, Inc.
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		15,855,007
Amendment Flag	false
Entity Central Index Key	1,117,045
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2

Balance Sheets

Balance Sheets - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Current Assets
Cash	$ 71,313	$ 0
Prepaid expenses and other current assets	0	9,025
Total Current Assets	71,313	9,025
Property & Equipment, net	3,696	4,759
Total Fixed Assets	3,696	4,759
Total Assets	75,009	13,784
Current Liabilities
Checks drawn in excess of bank balance	0	348
Accounts payable	789,046	749,666
Accounts payable - related parties	137,145	179,565
Portfolio reserves	34,774	34,774
Accrued expenses	1,882,947	2,180,765
Debt settlement liability, net	147,500	141,355
Derivative liability	16,185	100,000
Unsecured notes, current maturities	161,178	94,448
Convertible notes payable, net of discounts, current maturities	638,042	713,042
Total Current Liabilities	3,806,817	4,193,963
Long-term Liabilities
Unsecured notes, less current maturities	71,300	138,030
Total Long-term Liabilities	71,300	138,030
Total Liabilities	3,878,117	4,331,993
Stockholders’ Deficit
Preferred stock, 20,000,000 shares authorized, $.001 par value; none issued and outstanding	0	0
Common stock, 500,000,000 shares authorized at $.001 par value; 15,855,007 and 667,673 shares issued and outstanding, respectively	15,855	668
Additional paid-in capital	22,427,927	11,086,696
Prepaid stock - employees	(22,613)	(181,624)
Accumulated deficit	(26,224,277)	(15,223,949)
Total Stockholders’ Deficit	(3,803,108)	(4,318,209)
Total Liabilities & Stockholders’ Deficit	$ 75,009	$ 13,784

Balance Sheets (Parentheticals)

Balance Sheets (Parentheticals) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
Preferred stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	15,855,007	667,673
Common stock, shares outstanding	15,855,007	667,673

Statement of Operations (Unaudi

Statement of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenues	$ 3,037	$ 5,436	$ 9,915	$ 11,576
	3,037	5,436	9,915	11,576
Cost of Sales	130	380	241	679
Gross Profit (loss)	2,907	5,056	9,674	10,897
Expenses
Salaries and wages	9,592,087	127,754	9,745,397	271,157
Professional fees	103,221	9,000	112,229	18,000
Other selling, general and administrative	180,583	10,114	196,317	89,486
Total Expenses	9,875,891	146,868	10,053,943	378,643
Loss from Operations	(9,872,984)	(141,812)	(10,044,269)	(367,746)
Other Income (Expense)
Derivative liability gain	58,815	0	83,815	0
Loss on extinguishment of debt	(987,772)	0	(987,772)	0
Interest expense	(24,854)	(25,712)	(52,102)	(50,447)
Total Other Income (Expense)	(953,811)	(25,712)	(956,059)	(50,447)
Loss before tax	(10,826,795)	(167,524)	(11,000,328)	(418,193)
Income tax	0	0	0	0
Net Loss	$ (10,826,795)	$ (167,524)	$ (11,000,328)	$ (418,193)
Basic loss Per Share:
Loss per share (in Dollars per share)	$ (0.72)	$ (0.26)	$ (1.40)	$ (0.65)
Net Loss Per Share (in Dollars per share)	$ (0.72)	$ (0.26)	$ (1.40)	$ (0.65)
Weighted Average Shares (in Shares)	14,965,940	649,370	7,856,316	642,957

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash Flows from Operating Activities
Net Loss	$ (11,000,328)	$ (418,193)
Adjustments to reconcile net loss to net cash used by operations;
Depreciation and amortization	1,063	1,065
Amortization of prepaid stock - consultants	9,025	62,921
Amortization of prepaid stock - employees	159,011	183,360
Amortization of discount on note payable	6,145	6,264
Loss on extinguishment of debt	987,772	0
Derivative liability gain	(83,815)	0
Stock issued for services	9,590,840	87,281
Changes in operating assets and liabilities;
Increase in accounts payable	39,380	153,336
Decrease in accounts payable - related party	(42,420)	0
Increase (decrease) in accrued expenses	29,988	(156,930)
Net Cash Used by Operating Activities	(303,339)	(80,896)
Cash Flows from Financing Activities
Proceeds from notes payable - unsecured	10,000	76,730
Repayments of notes payable - unsecured	(10,000)	0
Proceeds from sale of common stock	375,000	0
Proceeds from notes payable - related party	7,000	0
Repayments of notes payable - related party	(7,000)	0
(Increase) decrease in checks drawn in excess of bank balance	(348)	135
Net Cash Provided by Financing Activities	374,652	76,865
Net Increase (Decrease) in Cash and Cash Equivalents	71,313	(4,031)
Cash and Cash Equivalents at Beginning of Period	0	4,031
Cash and Cash Equivalents at End of Period	71,313	0
Cash Paid For:
Interest	0	0
Income Taxes	0	0
Non-Cash Financing Activities:	$ 0	$ 0

NOTE 1 - GENERAL

NOTE 1 - GENERAL	6 Months Ended
	Jun. 30, 2015
Disclosure Text Block [Abstract]
Nature of Operations [Text Block]	NOTE 1 – GENERAL The accompanying condensed financial statements of the Company have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations. These condensed financial statements reflect all adjustments (consisting only of normal recurring adjustments) that, in the opinion of management, are necessary to present fairly the results of operations of the Company for the periods presented. These condensed financial statements should be read in conjunction with the financial statements and the notes thereto included in the Company’s Form 10-K for the year ended December 31, 2014. The results of operations for the six months ended June 30, 2015, are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2015.

NOTE 2 - GOING CONCERN

NOTE 2 - GOING CONCERN	6 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Substantial Doubt about Going Concern [Text Block]	NOTE 2 – GOING CONCERN The Company has had recurring operating losses since inception and is dependent upon financing to continue operations. These factors indicate that the Company may be unable to continue in existence should immediate and short term financing options not be available. These financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event the Company cannot continue its existence. These financial statements do not include any adjustments that might result from the outcome of this uncertainty. Currently the Company has minimal cash on hand and few material assets outside key intellectual property. In addition, the Company has not established or maintained a recurring source of revenues to sufficiently cover or offset any current, anticipated or planned operating costs to allow it to continue as a going concern. It is the intent of the Company to find additional capital funding, grow revenues organically through new program launches and marketing campaigns, and/or a profitable business venture to acquire or merge.

NOTE 3 - SIGNIFICANT TRANSACTIO

NOTE 3 - SIGNIFICANT TRANSACTIONS	6 Months Ended
	Jun. 30, 2015
Significant Transactions Disclosure [Abstract]
Significant Transactions Disclosure [Text Block]	NOTE 3 – SIGNIFICANT TRANSACTIONS On April 6, 2015, the Company replaced the existing Employment Agreement for its President/CEO, Ray A. Smith with a new Employment Agreement. The terms of the new agreement are for a period Five (5) years, renewable in two (2) year increments, and includes a Stock Incentive Compensation package consisting of Thirteen Million Five Hundred Thousand (13,500,000) post-split shares of Restricted Common Stock, which were issued upon execution of the agreement, and a salary of Twenty Thousand Dollars ($20,000) per month beginning on January 1, 2016. The stock was valued at $9,542,840, which was expensed as Salaries and Wages upon issuance. On April 14, 2015, the Company received notice of conversion and agreed to convert $37,500 of the MJ Rich Note from March 2012 into Seven Hundred Fifty Thousand (750,000) post-split shares of Common Stock at a conversion price of Five Cents ($0.05). The transaction was accounted for as an extinguishment of debt rather than a conversion, as the conversion terms were different than those set forth in the original convertible promissory notes. The difference between the carrying value of the note and the fair market value of shares of $532,500 has been recorded as a loss on extinguishment of debt of $495,000. On April 14, 2015, the Company received notice of conversion and agreed to convert $37,500 of the Banner- Note 1 from March 2010 into Seven Hundred Fifty Thousand (750,000) post-split shares of Common Stock at a conversion price of Five Cents ($0.05). The transaction was accounted for as an extinguishment of debt rather than a conversion, as the conversion terms were different than those set forth in the original convertible promissory notes. The difference between the carrying value of the note and the fair market value of the shares of $532,500 has been recorded as a loss on extinguishment of debt of $495,000. On April 28, 2015, the Company issued to its legal counsel Fifty Thousand (50,000) shares of Restricted Common Stock for legal services previously rendered totaling $11,500. On May 7, 2015, the Company issued to a private party One Hundred Twenty Five Thousand (125,000) shares of Restricted Common Stock at Three Dollars ($3.00) per share for Three Hundred Seventy Five Thousand Dollars ($375,000). On June 30, 2015, the Company entered into a Settlement Agreement/Mutual Release Agreement with its former employee, Kevin Goldstein, against whom the Company filed a Complaint on or about October 15, 2013. The exact terms of the agreement are confidential; however, Mr. Goldstein has notified the Labor Commissioner the wage dispute of approximately $121,266 has been resolved completely and the Company agreed to dismiss Mr. Goldstein with prejudice from the Complaint filed in Orange County Superior Court, case number 30-2013-00681235-CU-BC-CJC.

NOTE 4 - CONTINGENCIES

NOTE 4 - CONTINGENCIES	6 Months Ended
	Jun. 30, 2015
Loss Contingency [Abstract]
Contingencies Disclosure [Text Block]	NOTE 4 – CONTINGENCIES The Company has not accrued various employee base salaries approximating $800,000 In January 2012, the Company received Notices of Claim from two former employees seeking back-wages of approximately $240,000 pursuant to the Company’s alleged breach of their employment agreements. In October 2013, the Company filed counter claims against the employees claiming, among other violations, breach of contract and fraud. The Company is seeking damages in excess of the back-wages, and cannot determine at this time, the amount or likelihood of any gains or losses that may result from these claims.

NOTE 5 - SUBSEQUENT EVENTS

NOTE 5 - SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2015
Subsequent Events [Abstract]
Subsequent Events [Text Block]	NOTE 5 – SUBSEQUENT EVENTS Pursuant to FASB ASC 855-10-50-1, the Company has evaluated subsequent events through the date these financial statements to be issued. Accordingly the following material events occurred subsequent to the quarter ended June 30, 2015: None.

NOTE 3 - SIGNIFICANT TRANSACT11

NOTE 3 - SIGNIFICANT TRANSACTIONS (Details) - USD ($)	Jun. 30, 2015	May. 07, 2015	Apr. 28, 2015	Apr. 14, 2015	Apr. 06, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
NOTE 3 - SIGNIFICANT TRANSACTIONS (Details) [Line Items]
Salaries, Wages and Officers' Compensation						$ 9,592,087	$ 127,754	$ 9,745,397	$ 271,157
Gains (Losses) on Extinguishment of Debt						$ (987,772)	$ 0	$ (987,772)	$ 0
Stock Issued During Period, Shares, Issued for Services (in Shares)			50,000
Stock Issued During Period, Value, Issued for Services			$ 11,500
Stock Issued During Period, Shares, New Issues (in Shares)		125,000
Sale of Stock, Price Per Share (in Dollars per share)		$ 3
Stock Issued During Period, Value, New Issues		$ 375,000
Loss Contingency, Damages Sought, Value	$ 121,266
Convertible Debt, MJ Rich [Member]
NOTE 3 - SIGNIFICANT TRANSACTIONS (Details) [Line Items]
Debt Conversion, Original Debt, Amount				$ 37,500
Debt Conversion, Converted Instrument, Shares Issued (in Shares)				750,000
Debt Instrument, Convertible, Conversion Price (in Dollars per share)				$ 0.05
Stock Issued During Period, Value, Conversion of Convertible Securities				$ 532,500
Gains (Losses) on Extinguishment of Debt				(495,000)
Convertible Debt, Banner [Member]
NOTE 3 - SIGNIFICANT TRANSACTIONS (Details) [Line Items]
Debt Conversion, Original Debt, Amount				$ 37,500
Debt Conversion, Converted Instrument, Shares Issued (in Shares)				750,000
Debt Instrument, Convertible, Conversion Price (in Dollars per share)				$ 0.05
Stock Issued During Period, Value, Conversion of Convertible Securities				$ 532,500
Gains (Losses) on Extinguishment of Debt				$ (495,000)
Chief Executive Officer [Member]
NOTE 3 - SIGNIFICANT TRANSACTIONS (Details) [Line Items]
Employment Agreement, Term					5 years
Employment Agreement, Renewal Term					2 years
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares)					13,500,000
Salaries, Wages and Officers' Compensation					$ 20,000
Stock Issued During Period, Value, Restricted Stock Award, Gross					$ 9,542,840

NOTE 4 - CONTINGENCIES (Details

NOTE 4 - CONTINGENCIES (Details) - USD ($)	1 Months Ended	6 Months Ended	12 Months Ended
	Jan. 31, 2012	Jun. 30, 2015	Dec. 31, 2014
Accrued Base Salaries [Member]
NOTE 4 - CONTINGENCIES (Details) [Line Items]
Loss Contingency, Not Accrued		$ 800,000	$ 300,000
Loss Contingency, Not Accrued, Description		employees have not worked forty hours per week (as required by the employment agreements) because the work has not been available due to the Company’s inability to sustain consistent, profitable operations
Back Wages [Member]
NOTE 4 - CONTINGENCIES (Details) [Line Items]
Loss Contingency, Damages Sought	$ 240,000