| NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1. BASIS
OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The unaudited
interim condensed consolidated financial statements of Bingham Canyon Corporation (the Company) have been prepared
in accordance with United States generally accepted accounting principles for interim financial information and with the instructions
to Form 10-Q and reflect all adjustments which, in the opinion of management, are necessary for a fair presentation of our balance
sheet, statements of operations, and cash flows for the periods presented. All such adjustments are of a normal recurring nature. The
results of operations for the interim period are not necessarily indicative of the results to be expected for a full year. Certain information
and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally
accepted in the United States of America have been condensed or omitted. It is suggested that these condensed consolidated financial
statements be read in conjunction with the financial statements and notes thereto included in the Companys December 31,
2016 audited financial statements as reported in its Form 10-K, filed on April 14, 2017. Nature
of Operations On August
31, 2016, the Company entered into a Securities Exchange Agreement with Paradigm Convergence Technologies Corporation (Paradigm)
to effect the acquisition of Paradigm as a wholly-owned subsidiary. Under the terms of the agreement, Bingham issued 16,790,625
restricted common shares of Bingham stock to the shareholders of Paradigm in exchange for all 22,387,500 outstanding common shares
of Paradigm stock. In addition, Bingham issued options exercisable into 2,040,000 shares of Binghams common stock (with
exercise prices ranging between $0.133 and $0.333) in exchange for 2,720,000 outstanding Paradigm stock options (with exercise
prices ranging between $0.10 and $0.25). These 2,040,000 options have been adjusted at the same exchange rate of 0.75 that the
outstanding common shares were exchanged. As a result of this share exchange agreement, Paradigm, the operating company, is considered
the accounting acquirer. Paradigm is
located in Lenexa, Kansas and was formed June 6, 2012 under the name of EUR-ECA, Ltd. Paradigm also leases office, research and
development and production space in Little River, South Carolina. Paradigm is a technology licensing company specializing in environmentally
safe solutions for global sustainability. Paradigm holds patent, intellectual property and/or distribution rights to innovative
products and technologies. Paradigm provides innovative products and technologies for eliminating biocidal contamination from
water supplies, industrial fluids, hard surfaces, food processing equipment and medical devices. Paradigms overall strategy
is to market new products and technologies through the use of equipment leasing, joint ventures, licensing, distributor agreements
and partnerships. Principles
of Consolidations The accompanying
consolidated financial statements include the accounts of Bingham Canyon Corporation (Parent) and its wholly owned
subsidiary, Paradigm Convergence Technologies Corporation (Paradigm or Subsidiary). All intercompany
accounts have been eliminated upon consolidation. Use
of Estimates The preparation
of the condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and the disclosure of contingencies at the date of the financial statements as well as the reported
amounts of revenues and expenses during the reporting periods. Estimates are based on historical experience and on various other
market-specific and other relevant assumptions that are believed to be reasonable under the circumstances, the results of which
form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other
sources. Actual results could differ materially from those estimates. Cash
and Cash Equivalents Cash and
cash equivalents are considered to be cash and highly liquid securities with original maturities of three months or less. There
was cash of $58,686 and $21,078 as of March 31, 2017 and December 31, 2016, respectively. There were no cash equivalents as of
March 31, 2017 and December 31, 2016, respectively. Accounts
Receivable Accounts
receivable are carried at their estimated collectible amounts. The Company provides allowances for uncollectible accounts receivable
equal to the estimated collection losses that will be incurred in collection of all receivables. Accounts receivable are periodically
evaluated for collectability based on past credit history with customers and their current financial condition. The Companys
management determines which accounts are past due and if deemed uncollectible, the Company provides an allowance for doubtful
receivables in the period the determination is made. Based on managements evaluation, the allowance for doubtful accounts
was $12,000 at March 31, 2017 and December 31, 2016, respectively. Inventory The inventory
consists of raw materials ($66,768) and finished goods ($22,000) in the amount of $88,768 at March 31, 2017. Inventory is valued
using the first-in first-out (FIFO) method, at the lower of cost or market value. The Company recorded a reserve
allowance against inventory of $0 and $0 for the periods ending March 31, 2017 and December 31, 2016, respectively. Fair
Value Measurements The
Company follows ASC 820, Fair Value Measurements and Disclosures,
Level 1: Valuations
for assets and liabilities traded in active markets from readily available pricing sources such as quoted prices in active
markets for identical assets or liabilities.
Level 2: Observable inputs (other
than Level 1 quoted prices) such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets
that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated
by observable market data.
Level 3: Unobservable inputs that are supported by little
or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing
models, discounted cash flow methodologies and similar techniques. The
carrying values of our financial instruments, including, cash and cash equivalents, accounts receivable, inventory, prepaid expenses,
accounts payable and accrued expenses approximate their fair value due to the short maturities of these financial instruments.
We do not have other financial assets or liabilities that are measured at fair value on a recurring basis as of March 31, 2017
and December 31, 2016. Valuation
of Long-lived Assets The carrying
values of the Companys long-lived assets are reviewed for impairment annually and whenever events or changes in circumstances
indicate that they may not be recoverable. When projections indicate that the carrying value of the long-lived asset is not recoverable,
the carrying value is reduced by the estimated excess of the carrying value over the projected undiscounted cash flows. Under
similar analysis no impairment was recorded as of March 31, 2017 and December 31, 2016. Impairment tests are conducted on an annual
basis and, should they indicate a carrying value in excess of fair value, additional impairment changes may be required. Property
and Equipment Property
and equipment are stated at purchased cost and depreciated on a straight-line method over estimated useful lives ranging from
5 to 15 years. Upon disposition of property and equipment, related gains and losses are recorded in the results of operations.
Accumulated depreciation for period ending March 31, 2017 and December 31, 2016 were $34,529 and $30,479, respectively. Expenditures
for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Expenditures for maintenance
and repairs are charged to expenses as incurred. Intangible
Assets Costs
to obtain or develop patents are capitalized and amortized over the remaining life of the patents, and technology rights are amortized
over their estimated useful lives. These assets are stated at cost, net of accumulated amortization. An impairment charge is recognized
if the carrying amount is not recoverable and the carrying amount exceeds the fair value of the intangible assets as determined
by the projected undiscounted net future cash flows. The Company recorded impairment expense of $0 and $0 for the periods ending
March 31, 2017 and December 31, 2016 respectively. Accumulated amortization was $132,923 and $107,582 as of March 31, 2017 and
December 31, 2016, respectively. Research
and Development Research
and development costs are recognized as an expense during the period incurred, which is until the conceptual formulation, design,
and testing of the process is completed and the process has been determined to be commercially viable. Revenue
Recognition Revenue
is recognized when persuasive evidence of an arrangement exists, services have been provided or goods delivered, the price to
the buyer is fixed or determinable and collectability is reasonably assured. Revenue from the sale of products is recorded at
the time of shipment to the customers. Revenue from contracts to license technology to others is immediately recognized since
it is a non-refundable deposit. Basic
and Diluted Loss per Share Basic
loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period.
Diluted loss per share is computed by dividing net loss by the weighted-average number of common shares and dilutive potential
common shares outstanding during the period. The weighted-average number of common shares outstanding for computing basic EPS
was 37,350,628 at March 31, 2017 as compared to 15,628,125 at March 31, 2016. At March 31, 2017 and March 31, 2016 there were
1,466,077 and 1,914,516 common stock equivalents from stock options that were excluded from the diluted EPS calculation as their
effect is anti-dilutive. Recent
Accounting Pronouncements In March,
2016, the FASB issued ASU 2016-09, "Stock Compensation. ASU 2016-09 was issued to simplify the accounting for stock
compensation. It focuses on income tax accounting, award classification, estimating forfeitures, and cash flow presentation. For
public companies, ASU 2016-09 became effective for annual periods beginning after December 15, 2016 and for interim periods within
those annual periods. The Company adopted ASU 2016-09 effective January 1, 2017. ASU 2016-09 has no material effect on the Companys
financial statements. In January,
2017, the FASB issued ASU 2017-04, Intangibles, Goodwill & Other. ASU 2017-04 simplifies how all entities assess
impairment by implementing a one step test. As amended, the impairment test will compare the fair value with its carrying amount.
An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the fair value. A public company
which is a Securities and Exchange Commission (SEC) filer should adopt the amendments in ASU 2017-04 for its annual or any interim
period within its annual period in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or
annual dates after January 1, 2017. The Company adopted ASU 2017-04 effective January 1, 2017. ASU 2017-04 has no material effect
in the Companys financial statements. The Company
has reviewed all other FASB issued ASU accounting pronouncements and interpretations thereof that have effective dates during
the period reported and in future periods. The Company has carefully considered the new pronouncements that alter previous GAAP
and do not believe that any new or modified principles will have a material impact on the Companys reported financial position
or operations in the near term. |
