Novo Integrated Sciences (NVOS) 10-Q 1 May 15 2015 Q1 Quarterly report Financial data

Document_And_Entity_Informatio

Document And Entity Information	3 Months Ended
	Mar. 31, 2015	Apr. 27, 2015
Document And Entity Information
Entity Registrant Name	TURBINE TRUCK ENGINES INC
Entity Central Index Key	1138978
Document Type	10-Q
Document Period End Date	31-Mar-15
Amendment Flag	FALSE
Current Fiscal Year End Date	-19
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		416,538,330
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2015

Balance_Sheets

Balance Sheets (USD $)	Mar. 31, 2015	Dec. 31, 2014
CURRENT ASSETS:
Cash	$8,720	$1,831
Deposit, net of reserve of $237,414 (2015) and $237,414 (2014)
Total Current Assets	8,720	1,831
Furniture and equipment, net of accumulated depreciation of $9,875 (2015) and $29,521 (2014)	6,242	7,011
Intangible asset	13,750	13,750
TOTAL ASSETS	28,712	22,592
CURRENT LIABILITIES:
Accounts payable	101,252	82,550
Accrued payroll taxes		68
Accrued interest		42,595
Notes payable		215,451
Total Current Liabilities	101,252	340,664
LONG-TERM LIABILITIES:
Note payable		307,598
Total Long-Term Liabilities		307,598
STOCKHOLDERS' DEFICIT
Convertible Preferred Stock; $0.001 par value; 1,000,000 shares authorized; 0 (2015) and 0 (2014) shares issued and outstanding
Common stock; $0.001 par value; 499,000,000 shares authorized; 416,538,330 (2015) and 367,274,979 (2014) shares issued and outstanding	416,537	367,274
Additional paid in capital	21,523,313	20,988,916
Receivable for common stock	-200,000	-200,000
Deferred non-cash debt offering costs		-2,379,075
Accumulated other comprehensive income		49,827
Accumulated deficit	-21,812,390	-19,452,612
Total Stockholders' Deficit	-72,540	-625,670
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$28,712	$22,592

Balance_Sheets_Parenthetical

Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
CURRENT ASSETS:
Deposit, net of reserve	$237,414	$237,414
Furniture and equipment, accumulated depreciation (in dollars)	$9,875	$29,521
STOCKHOLDERS' DEFICIT
Convertible Preferred stock, par value (in dollars per share)	$0.00	$0.00
Convertible Preferred stock, shares authorized	1,000,000	1,000,000
Convertible Preferred stock, shares issued	0	0
Convertible Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, shares authorized	499,000,000	499,000,000
Common stock, shares issued	416,538,330	367,274,979
Common stock, shares outstanding	416,538,330	367,274,979

Statements_of_Comprehensive_Lo

Statements of Comprehensive Loss (unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Statements Of Comprehensive Loss
Operating costs	$45,428	$48,050
Total operating costs and expenses	45,428	48,050
OTHER EXPENSE
Change in fair value of derivative liability		5,129
Interest and other expenses, net	2,314,350	92,713
TOTAL OTHER EXPENSE	2,314,350	97,842
NET LOSS	-2,359,778	-145,892
Unrealized gain on foreign currency translation adjustment		-25,014
COMPREHENSIVE LOSS	($2,359,778)	($120,878)
NET LOSS PER COMMON SHARE, BASIC AND DILUTED	($0.01)	$0
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING, BASIC AND DILUTED	374,349,130	272,373,029

Statements_of_Cash_Flows_unaud

Statements of Cash Flows (unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	($2,359,778)	($145,892)
Adjustments to reconcile net loss to net cash used in operating activities:
Common stock issued for services and amortization of common stock issued for services		5,112
Unrealized loss on derivative liability		5,129
Amortization of deferred offering costs	2,379,075	65,272
Depreciation	769	1,206
Amortization of discount on notes payable		21,763
Gain on foreign currency transaction adjustment	-88,791
(Decrease) Increase in:
Accounts payable	18,702	-12,446
Accrued expenses		4,379
Accrued payroll	-68	1,513
Accrued royalty fees		6,250
Accrued interest	24,056	5,677
Net cash used by operating activities	-26,035	-42,037
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock	15,000	50,849
Proceeds from issuance of notes payable	17,924
Net cash provided by financing activities	32,924	50,849
Net increase in cash	6,889	8,812
Cash, beginning of period	1,831	3,423
Cash, end of period	8,720	12,235
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest		322
NON-CASH FINANCING AND INVESTING ACTIVITIES:
Conversion of convertible debt to equity (65,562,422 shares)		10,356
Settlement of notes payable with refund of deposits	0	48,385
Foreign currency translation adjustment	38,964	25,014
Deferred loan costs paid with common stock payable		11,832
Common stock issued for conversion of debt and accrued interest to equity (47,388,351 shares) includes $69,075 of accrued interest	$568,660

Statements_of_Cash_Flows_unaud1

Statements of Cash Flows (unaudited) (Parenthetical)	3 Months Ended
	Mar. 31, 2015
Statements Of Cash Flows Parenthetical
Conversion of convertible debt to equity (in shares)	65,562,422
Common stock issued for conversion of debt and accrued interest	47,388,351

Background_Information

Background Information	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
1. Background Information	Turbine Truck Engines, Inc. (“TTE” or “the Company”) was incorporated in Delaware on November 27, 2000. On February 20, 2008, the Company was re-domiciled to the State of Nevada. To date, the Company’s activities have been limited to raising capital, organizational matters, and the structuring of its business plan. The corporate headquarters are located in Daytona Beach, Florida. The company has not yet generated any revenues since inception.
	To date, the Company’s principal operations are the development and ultimately the commercialization of the (a) Detonation Cycle Gas Turbine Engine (“DCGT”); (b) Hydrogen Production Burner System (“HPBS”); and (c) the Gas to Liquid Technology (“GTL”). In addition, the Company is aggressively pursuing to either purchase or merge an intellectual property asset and/or an existing operational company asset. To date, TTE has not entered into a contractual commitment to complete an asset purchase or merger.
	The Company will need to raise capital to support its activities. The Company’s activities are subject to significant risks and uncertainties, including failing to secure additional funding to commercialize the Company’s current technology before another company develops similar technology.
	On March 20, 2015, the Company received notification from OTC Markets Group, that it had successfully completed the verification process and was approved for its securities to remain on the OTC Markets Group’s OTCQB marketplace, an electronic quote and trade execution venture marketplace for entrepreneurial and development stage companies.  On March 26, 2014, OTC Markets Group introduced stringent standards and eligibility requirements designed to improve marketplace integrity and enhance transparency for investors of company securities trading on both the OTCQB and the OTCQX marketplace.  Companies verified and approved for the OTCQB are current in their reporting and will continue to undergo an annual verification and management certification process.
	On April 6, 2015, the Company’s Board of Directors approved a 1 for 20 reverse stock split of the Company's issued and outstanding common stock (the "Reverse Stock Split").  The Reverse Stock Split shall have a record and effective date 10 days following the providing of notice to FINRA thereof or such other date as shall be determined by FINRA.  As of the date of this filing, the Company has not yet received approval from FINRA to effect the reverse stock split and therefore, no shares of common stock have been adjusted for the reverse stock split.

Financial_Statements

Financial Statements	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
2. Financial Statements	In the opinion of management, all adjustments consisting only of normal recurring adjustments necessary for a fair statement of (a) the results of operations for the three month periods ended March 31, 2015 and 2014, (b) the financial position at March 31, 2015 and December 31, 2014, and (c) cash flows for the three month periods ended March 31, 2015 and 2014, have been made.
	The unaudited financial statements and notes are presented as permitted by Form 10-Q. Accordingly, certain information and note disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP) have been omitted. The accompanying financial statements and notes should be read in conjunction with the audited financial statements and notes of the Company for the fiscal year ended December 31, 2014. The results of operations for the three month periods ended March 31, 2015 are not necessarily indicative of those to be expected for the entire year.

Going_Concern

Going Concern	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
3. Going Concern	The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. For the three months ended March 31, 2015, the Company had a net loss of $2,359,778. As of March 31, 2015, the Company has a working capital deficit of $92,532. In view of these matters, the Company’s ability to continue as a going concern is dependent upon the Company’s ability to begin operations and to achieve a level of profitability. The Company intends on financing its future development activities and its working capital needs largely from the sale of public equity securities with some additional funding from other traditional financing sources, including term notes and proceeds from sub-licensing agreements until such time that funds provided by operations are sufficient to fund working capital requirements. The financial statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

Significant_Accounting_Policie

Significant Accounting Policies	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
4. Significant Accounting Policies	The significant accounting policies followed are:
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
	Cash is maintained at financial institutions and, at times, balances may exceed federally insured limits. We have never experienced any losses related to these balances. All of our non-interest bearing cash balances were fully insured at March 31, 2015 and December 31, 2014. Insurance coverage was $250,000 per depositor at each financial institution. At March 31, 2015 and December 31, 2014, there were no amounts held in excess of federally insured limits.
	The Company’s financial instruments include cash and accounts payable. The carrying amounts of cash and accounts payable approximate their fair value, due to the short-term nature of these items.
	Furniture and equipment are recorded at cost and depreciated on a declining balance and straight-line basis over their estimated useful lives, principally two to seven years. Accelerated methods are used for tax depreciation. Maintenance and repairs are charged to operations when incurred. Betterments and renewals are capitalized. When furniture and equipment are sold or otherwise disposed of, the asset account and related accumulated depreciation account are relieved, and any gain or loss is included in operations.
	The Company evaluates the recoverability of its long-lived assets or asset groups whenever adverse events or changes in business climate indicate that the expected undiscounted future cash flows from the related assets may be less than previously anticipated. If the net book value of the related assets exceed the undiscounted future cash flows of the assets, the carrying amount would be reduced to the present value of their expected future cash flows and an impairment loss would be recognized. There have been no impairment losses in any of the periods presented.
	Research and development costs are charged to operations when incurred and are included in operating expenses. There were no amounts charged to research and development for each of the three month periods ended March 31, 2015 and 2014.
	Deferred income tax assets and liabilities arise from temporary differences associated with differences between the financial statements and tax basis of assets and liabilities, as measured by the enacted tax rates, which are expected to be in effect when these differences reverse. Deferred tax assets and liabilities are classified as current or non-current, depending on the classification of the assets or liabilities to which they relate. Deferred tax assets and liabilities not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse.
	The Company follows the provisions of FASB ASC 740-10 “Uncertainty in Income Taxes” (ASC 740-10), January 1, 2007. The Company has not recognized a liability as a result of the implementation of ASC 740-10. A reconciliation of the beginning and ending amount of unrecognized tax benefits has not been provided since there are no unrecognized benefits at March 31, 2015 and December 31, 2014. The Company has not recognized interest expense or penalties as a result of the implementation of ASC 740-10. If there were an unrecognized tax benefit, the Company would recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses.
	The Company entered into various loan agreements with a Canadian company. In accordance with the loan agreements, the Company issued shares of common stock to the Canadian company as additional costs in obtaining the financing. These shares have been accounted for as contra-equity deferred non-cash offering issuance costs and they have been amortized as interest expense over the life of the notes which is five years. Foreign currency transaction gains and losses, when material, have been recorded as other income or loss.  For the three months ended March 31, 2015 the Company recorded a foreign currency transaction gain of $88,791.  As of March 31, 2015, the Canadian company has converted all outstanding notes payable and related accrued interest into common stock, therefore, the remaining balance of the deferred non-cash offering issuance costs has been recorded as interest expense for the three months ended March 31, 2015. (see Note 6)
	Basic loss per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted losses per common share are computed by dividing net loss by the weighted average number of shares of common stock outstanding and dilutive options outstanding during the year. Common stock equivalents for the three month periods ended March 31, 2015 and 2014 were anti-dilutive due to the net losses sustained by the Company during these periods. For the three months ended March 31, 2015 and 2014 potentially dilutive common stock options and warrants of 2,308,000 and 6,655,413 have been excluded from dilutive losses per share due to the Company’s losses in all periods presented.
	The Company recognizes all share-based payments to employees, including grants of employee stock options, as compensation expense in the financial statements based on their fair values. That expense will be recognized over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period).
	The Company issues common stock and common stock options and warrants to consultants for various services. For these transactions, the Company follows the guidance in FASB ASC Topic 505. Costs for these transactions are measured at the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measureable. The value of the common stock is measured at the earlier of (i) the date at which a firm commitment for performance by the counterparty to earn the equity instrument is reached or (ii) the date at which the counterparty’s performance is complete.
	Recent accounting pronouncements
	Recent accounting pronouncements issued by the FASB, the AICPA and the SEC did not or are not believed by management to have a material effect on the Company’s financial statements.

Commitments_and_Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
5. Commitments and Contingencies	The Company leased its corporate headquarters on a month-to-month basis. For each of the three months ended March 31, 2015 and 2014, rent expense was approximately $1,300 and $6,250, respectively.

Notes_Payable

Notes Payable	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
6. Notes Payable	On March 16, 2015, the Company’s Board of Directors accepted an offer, dated March 11, 2015, from 2367416 Ontario, Inc. to irrevocably convert eight separate Loan Agreements dated from June 19, 2013 through October 1, 2014, payable by the Company to 2367416 Ontario, Inc., with a cumulative principal balance of $499,585 and a cumulative accrued interest balance of $69,075 for a total amount of debt owed of $568,660 into 47,388,351 shares of the Company’s common stock. The conversion price in this transaction was $0.012 per share.  At the March 16, 2015 commitment date the conversion was not beneficial to 2367416 Ontario, Inc. accordingly, no beneficial conversion feature was recorded for this conversion. This conversion of debt into shares of common stock is full and final payment for the debt as evidenced by all eight Loan Agreements.  The shares were issued on March 18, 2015.  As part of the conversion of debt to common stock, the Company also expensed the deferred non-cash offering costs of $2,379,075.

Convertible_Notes_and_Derivati

Convertible Notes and Derivative liability	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
7. Convertible Notes and Derivative liability	On April 24, 2012 (the “Closing date”), the Company issued a convertible promissory note for $278,000. The lender funded $75,000 to the Company, and the lender at their discretion may fund additional amounts to the Company. The note matures one year from the closing date. If the Company pays the note within 90 days of the closing date, the interest rate is 0%. If the note is not paid within 90 days of the closing date, a one-time interest charge of 5% will be applied to the unpaid principal amount. The conversion option price associated with the note is the lesser of $0.10 or 70% of the lowest trade price in the 25 trading days previous to any conversion. The note is convertible at any time. As a result of the variable feature associated with the conversion option, pursuant to ASC Topic 815, the Company bifurcated the conversion option, and utilized the black Scholes model to determine the fair value of the conversion option. At the issuance date, the Company recorded a debt discount and derivative liability of $75,000 and $100,415, respectively. The debt discount was fully amortized since the Company fully converted the remaining principle of $10,356 into 1,479,000 shares of common stock during the three months ended March 31, 2014. The derivative liability has been adjusted to fair value each reporting period with unrealized gain (loss) reflected in other income and expense and extinguished due to it being fully converted.
	For the three months ended March 31, 2014, the unrealized loss on the above derivatives was $5,129.

Subsequent_Events

Subsequent Events	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
8. Subsequent Events	During April 2015, the Company entered into a common stock subscription agreement with 2367416 Ontario, Inc., a Canadian company, for a total of $45,000 and agreed to issue 5,625,000 shares of common stock at $0.008 per share.  As of the date of this filing, these shares have not been issued.
	On April 6, 2015, the Company’s Board of Directors approved a 1 for 20 reverse stock split of the Company's issued and outstanding common stock (the "Reverse Stock Split").  The Reverse Stock Split shall have a record and effective date 10 days following the providing of notice to FINRA thereof or such other date as shall be determined by FINRA.  As of the date of this filing, the Company has not yet received approval from FINRA to effect the reverse stock split and therefore, no shares of common stock have been adjusted for the reverse stock split.

Significant_Accounting_Policie1

Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2015
Significant Accounting Policies Policies
Cash	Cash is maintained at financial institutions and, at times, balances may exceed federally insured limits. We have never experienced any losses related to these balances. All of our non-interest bearing cash balances were fully insured at March 31, 2015 and December 31, 2014. Insurance coverage was $250,000 per depositor at each financial institution. At March 31, 2015 and December 31, 2014, there were no amounts held in excess of federally insured limits.
	The Company’s financial instruments include cash and accounts payable. The carrying amounts of cash and accounts payable approximate their fair value, due to the short-term nature of these items.
Furniture and equipment	Furniture and equipment are recorded at cost and depreciated on a declining balance and straight-line basis over their estimated useful lives, principally two to seven years. Accelerated methods are used for tax depreciation. Maintenance and repairs are charged to operations when incurred. Betterments and renewals are capitalized. When furniture and equipment are sold or otherwise disposed of, the asset account and related accumulated depreciation account are relieved, and any gain or loss is included in operations.
	The Company evaluates the recoverability of its long-lived assets or asset groups whenever adverse events or changes in business climate indicate that the expected undiscounted future cash flows from the related assets may be less than previously anticipated. If the net book value of the related assets exceed the undiscounted future cash flows of the assets, the carrying amount would be reduced to the present value of their expected future cash flows and an impairment loss would be recognized. There have been no impairment losses in any of the periods presented.
Research and Development	Research and development costs are charged to operations when incurred and are included in operating expenses. There were no amounts charged to research and development for each of the three month periods ended March 31, 2015 and 2014.
Income Tax	Deferred income tax assets and liabilities arise from temporary differences associated with differences between the financial statements and tax basis of assets and liabilities, as measured by the enacted tax rates, which are expected to be in effect when these differences reverse. Deferred tax assets and liabilities are classified as current or non-current, depending on the classification of the assets or liabilities to which they relate. Deferred tax assets and liabilities not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse.
	The Company follows the provisions of FASB ASC 740-10 “Uncertainty in Income Taxes” (ASC 740-10), January 1, 2007. The Company has not recognized a liability as a result of the implementation of ASC 740-10. A reconciliation of the beginning and ending amount of unrecognized tax benefits has not been provided since there are no unrecognized benefits at March 31, 2015 and December 31, 2014. The Company has not recognized interest expense or penalties as a result of the implementation of ASC 740-10. If there were an unrecognized tax benefit, the Company would recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses.
Earnings Per Share	The Company entered into various loan agreements with a Canadian company. In accordance with the loan agreements, the Company issued shares of common stock to the Canadian company as additional costs in obtaining the financing. These shares have been accounted for as contra-equity deferred non-cash offering issuance costs and they have been amortized as interest expense over the life of the notes which is five years. Foreign currency transaction gains and losses, when material, have been recorded as other income or loss.  For the three months ended March 31, 2015 the Company recorded a foreign currency transaction gain of $88,791.  As of March 31, 2015, the Canadian company has converted all outstanding notes payable and related accrued interest into common stock, therefore, the remaining balance of the deferred non-cash offering issuance costs has been recorded as interest expense for the three months ended March 31, 2015. (see Note 6)
	Basic loss per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted losses per common share are computed by dividing net loss by the weighted average number of shares of common stock outstanding and dilutive options outstanding during the year. Common stock equivalents for the three month periods ended March 31, 2015 and 2014 were anti-dilutive due to the net losses sustained by the Company during these periods. For the three months ended March 31, 2015 and 2014 potentially dilutive common stock options and warrants of 2,308,000 and 6,655,413 have been excluded from dilutive losses per share due to the Company’s losses in all periods presented.
Share based compensation	The Company recognizes all share-based payments to employees, including grants of employee stock options, as compensation expense in the financial statements based on their fair values. That expense will be recognized over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period).
Equity policy	The Company issues common stock and common stock options and warrants to consultants for various services. For these transactions, the Company follows the guidance in FASB ASC Topic 505. Costs for these transactions are measured at the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measureable. The value of the common stock is measured at the earlier of (i) the date at which a firm commitment for performance by the counterparty to earn the equity instrument is reached or (ii) the date at which the counterparty’s performance is complete.
Recent accounting pronouncements	Recent accounting pronouncements issued by the FASB, the AICPA and the SEC did not or are not believed by management to have a material effect on the Company’s financial statements.

Going_Concern_Detail_Narrative

Going Concern (Detail Narrative) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Going Concern Detail Narrative
Net loss	($2,359,778)	($145,892)
Working capital deficit	$92,532

Significant_Accounting_Policie2

Significant Accounting Policies (Detail Narrative) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Significant Accounting Policies Detail Narrative
Research and development costs
Gain on foreign currency transaction adjustment	($88,791)
Potentially dilutive common stock options and warrants	2,308,000	6,655,413

Commitments_and_Contingencies_

Commitments and Contingencies (Details Narrative) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Commitments And Contingencies Details Narrative
Rent expense	$1,300	$6,250

Convertible_Notes_and_Derivati1

Convertible Notes and Derivative liability (Details Narrative) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Convertible Notes And Derivative Liability Details Narrative
Convertible note converted into common stock, shares		1,479,000
Convertible note converted into common stock, value		$10,356
Unrealized loss on derivative		$5,129